Context:
Report on Trend and Progress of Banking In India 2023-24 released by Reserve Bank of India (RBI)
Highlights of the Report:
- Scheduled Commercial Banks (SCBs) –
- Credit Growth & Profitability: Improved profitability for the 6th consecutive year.
- Improved Asset Quality: Gross NPAs declined to a 13-year low at 2.5% in September 2024.
- Strong Capital Position: The Capital-to-Risk-Weighted Assets Ratio (CRAR) stood at 16.8% as of September 2024, meeting regulatory requirements.
- RBI Requirements: Mandates a minimum CRAR of 9% against the 8% required under BASEL-III norms.
- CRAR: Ratio comparing a bank’s capital (or net worth) against the value of its assets weighted according to risk.
- Urban Co-operative Banks (UCBs):
- Expanded combined balance sheet.
- Improved asset quality for the 3rd consecutive year.
- Non-Banking Financial Companies (NBFCs):
- Achieved double-digit credit growth.
- GNPA fell to 3.4% by September 2024.
- Technological Advancements: Emerging platforms like the Unified Lending Interface (ULI) and Open Credit Enablement Network (OCEN) aim to enhance credit access for small businesses and individuals.
Source: RBI
Previous Year Question
The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’ sometimes appearing in news, are used in relation to:
[UPSC Civil Service Exam – 2014 Prelims]
(a) Banking operations
(b) Communication networking
(c) Military strategies
(d) Supply and demand of agricultural products
Answer: (a)