Metric Value Repo Rate 5.50% SDF Repo − 0.25% = 5.25% MSF Repo + 0.25% = 5.75% CRR 4% (reduced by 100 bps)SLR 18% Inflation Target 4% ± 2% (2-6%)Inflation (Sep 2025) 1.54% (8-year low)GDP FY26 7.4% India Rank (Economy) 4th ($4.19T)Credit Growth 9% (3-year low)CD Ratio 82% FPI Outflow ₹23,885 cr
Est. 1988 , Statutory 1992 (SEBI Act)
HQ: Mumbai | Whole-Time Members: 9 (incl. Chairman)
SIF = Specialized Investment Fund (min ₹10 lakh, between MF & PMS)REIT reclassified as equity | InvIT remains hybrid
AIF: Cat I (VC, SME), Cat II (residual), Cat III (Hedge)
SRO for Mutual Funds: AMFI
Concept Key Fact Book Building Price discovery via bidding in price band Greenshoe Underwriter sells up to 15% extra shares Min Public Shareholding 25% (listed), 10% (PSUs)Lock-in Promoters: 18 months , Anchors: 90 days Sweat Equity Shares for non-cash contribution ESOP Right to buy shares at exercise price Fractional Shares SEBI proposal — buy fractions of expensive stocks Grey Market Unofficial pre-listing trading — not regulated by SEBI Dabba Trading Illegal parallel market — punishable under SCRA 1956
Administered → BPLR → Base Rate → MCLR (2016) → External Benchmark (2019)
MCLR External Benchmark Based on Bank's own cost Repo rate / T-Bill Reset Annual (slow) Quarterly (fast)Transmission Poor Good
OMO purchases: ₹1,00,000 crore
USD/INR swap: 5 b n ∗ ∗ ( 3 − y e a r ) + e a r l i e r ∗ ∗ 5 bn** (3-year) + earlier ** 5 bn ∗ ∗ ( 3 − ye a r ) + e a r l i er ∗ ∗
CRR cut: 100 bps
Policy What Who QE Buy long-term G-Secs when rates ≈ 0 US Fed, ECB, BoJ ZIRP Policy rate = 0% US (2008-15) NIRP Rate below 0% — charge banks for deposits Japan (-0.1%), ECB YCC Target specific bond yield BoJ (10-yr JGB ≈ 0%) Forward Guidance Signal future policy intent All major CBs
Japan ended NIRP March 2024 — first hike in 17 years
Cantillon Effect: New money benefits first receivers disproportionately
↑ Yields ↓ Yields Repo rate ↑ RBI buys G-Secs (OMO) Inflation ↑ Flight to safety Fiscal deficit ↑ (more supply) Rate cut expectations US yields ↑ (FPI exit) Surplus liquidity
US-India yield gap at 20-year low → FPIs exit
Board/Body Function Central Board 21 members, advisory (NOT executive) BFS Board for Financial Supervision — supervises banks/NBFCs FSDC Financial Stability & Development Council — under FM, not RBI DICGC Deposit Insurance: ₹5 lakh per depositor per bank RB-IOS 2021 Integrated Ombudsman — max ₹20 lakh compensation
Feature CBDC UPI Crypto Issuer Central Bank Banks via NPCI Private/Decentralised Legal Tender ✅ Yes No (payment mode) ❌ No Types Retail (e₹-R) + Wholesale (e₹-W) — — Tech DLT/Blockchain Centralized Blockchain
Project mBridge — Cross-border CBDC (China, UAE, Thailand, HK; India = observer)Project Agora — BIS tokenised deposit initiative (7 CBs incl. RBI)
Sovereign Green Bonds Green Deposits Issuer Govt of India (via RBI)Banks/NBFCs First Jan 2023 Framework: June 2023 Use Solar, wind, H₂, metro, afforestation Renewable, green transport, waste mgmt Greenium Lower yield than regular G-Sec N/A
Item Key Detail Banking Laws Amendment 2025 Unclaimed deposits → DEAF (after 10 years). CRR fortnight: Sat-Fri (was Fri-Thu). Retail Direct Scheme Retail investors buy G-Secs directly. Portal: e-Kuber. SIP in T-Bills launched. MuleHunter.AI AI tool to detect mule accounts (money laundering) Public Tech Platform Digital data for frictionless credit (land, satellite, GST, AA data)
# Trap Reality 1 RBI is executive authority Central Board is advisory , not executive 2 ₹1 coin issued by RBI ₹1 coin issued by Govt of India 3 SEBI was statutory from 1988 SEBI was non-statutory 1988; statutory 1992 4 SDF needs collateral SDF = Standing Deposit Facility — no collateral 5 CRR earns interest CRR earns zero interest 6 SLR earns no return SLR = G-Secs → earns coupon 7 CBDC = same as UPI UPI moves bank money; CBDC = new form of money 8 Green bonds = higher yield Green bonds have lower yield (greenium) 9 MPC has only RBI members MPC = 3 RBI + 3 External (Govt nominated) 10 MCLR = fast transmission MCLR was slow ; External Benchmark = fast
Last-Minute Recall Strip:
Repo 5.50% | SDF 5.25% | MSF 5.75% | CRR 4% | SLR 18% | FIT 4±2% | Inflation 1.54% | GDP 7.4% | CD Ratio 82% | India 4th (4.19 T ) ∣ D I C G C ∗ ∗ ₹ 5 L ∗ ∗ ∣ O M O ∗ ∗ ₹ 1 L c r ∗ ∗ ∣ S w a p ∗ ∗ 4.19T) | DICGC **₹5L** | OMO **₹1L cr** | Swap ** 4.19 T ) ∣ D I CGC ∗ ∗ ₹5 L ∗ ∗ ∣ OMO ∗ ∗ ₹1 L cr ∗ ∗ ∣ Sw a p ∗ ∗ Dec 2022 | Green Bonds Jan 2023 | Retail Direct Nov 2021 | AT-1 = perpetual | LCR min 100% | NIRP ended Mar 2024 (Japan)
