Banking & RBI Quick Reference

RBI Key Rates (Verify current values before exam)

Rate	Definition	Current Direction

|------|-----------|------------------|

Repo Rate	RBI lends to banks	Policy rate (basis for all rates)
SDF (Standing Deposit Facility)	Banks park excess cash at RBI (replaced Reverse Repo)	Repo - 25 bps
MSF (Marginal Standing Facility)	Banks borrow from RBI at higher rate	Repo + 25 bps
Bank Rate	Penal rate for SCBs, long-term	= MSF Rate
CRR	Cash with RBI, no interest	Currently 4%
SLR	Liquid assets (G-Secs etc.)	Currently 18%

Act	Year	Purpose

|-----|------|---------|

Banking Regulation Act	1949	License and regulate banks
Reserve Bank of India Act	1934	Establish and govern RBI
FEMA	1999	Foreign exchange management
SARFAESI	2002	Securitisation, recovery of NPAs
PMLA	2002	Prevention of money laundering
IBC	2016	Insolvency and bankruptcy resolution
Payment and Settlement Systems Act	2007	Regulate payment systems

Type	Overdue Period

|------|--------------|

Standard Asset	Fully performing — no overdue
Sub-standard	Overdue 90 days to 12 months
Doubtful	Sub-standard for more than 12 months
Loss Asset	Identified as uncollectable by bank/auditor/RBI

•CAR (Capital Adequacy Ratio): (Tier 1 + Tier 2 Capital) / Risk Weighted Assets — minimum 10.5% in India

•GNPA Ratio: Gross NPA / Gross Advances × 100

•PCR (Provision Coverage Ratio): Provisions held / Gross NPA × 100 — higher is better

•CASA Ratio: (Current + Savings Deposits) / Total Deposits — higher = cheaper funding

•CD Ratio: Credit / Deposits — how much of deposits are lent out

•Net Interest Margin (NIM): (Interest Income - Interest Expense) / Earning Assets

Department	Role

|-----------|------|

Monetary Policy Department (MPD)	Conducts monetary policy, implements repo operations
Department of Regulation (DoR)	Issues regulations for banks, NBFCs
Department of Supervision (DoS)	On-site inspection and off-site monitoring
Financial Markets Operations (FMO)	Open market operations, forex intervention
Department of Payment and Settlement	Oversees NEFT, RTGS, IMPS, UPI
NPCI (National Payments Corp. of India)	Operates UPI, RuPay, NACH, IMPS

Bank	Headquarters

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