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BANKERS PLUS
Volume VI, Issue 2 z
MAY 2025

Fiscal Health Index - 2025

Bankers Plus-Monthly e magazine by Ramya Education Enterprise
 BANKERS PLUS- MAY 2025

1 COVER PAGE ARTICLE Volume IV, Issue

VOLUME VI,12, Feb 2024
ISSUE 2

US Debt Ceiling Crisis CONTENTS

6 REGULATORY UPDATES 36 KNOWLEDGE HUB

…Page 1-4

27 INDUSTRY UPDATES 45 QUIZ TIME

….Page 5-20 ….Page 21-31

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 Bankers Plus
Editor’s
Editor’s Desk
Desk
BANKERS
BANKERS PLUS – PLUS
BANKERS PLUS
MAY
June 2025
2021

Welcome to May 2025 edition of ‘Bankers Plus’. Hope

all of you have settled down by this time to face new
challenges in the FY 2025-26. Rember regular
knowledge updation will keep you in right path while
addressing challenges.
Government of India has recently published the highlights on the
performance of Mudra Loan scheme over the past 10 years. The
SBI report also highlights a significant rise in credit flow to MSMEs,
driven by Mudra’s impact. Mudra is not like any other subsidy linked
scheme, but unsecured with credit guarantee support in it.
The data on Mudra loan suggests there are more than 6.68 crore
active loan accounts with an outstanding amount of Rs. 5.32 lakh
crore under the scheme as on 31.03.2024. The average ticket size
of the loan got increased to ₹1.02 lakh in FY25 compared to ₹38,000
in FY16. The Gross NPA under the portfolio is only 2.21% and
showing declining trend.
These numbers show, the scheme is progressing as per the set vision
of creating Microenterprises and employment generation at gross
root levels. If each loan account directly or indirectly supported 3
informal sector work force, more than 20 crore employment
opportunities would have been created across the country. This may
be the reason, despite of global challenges and allegations of political
parties, unemployment and it’s ill effects are not visible in India.
Micro entrepreneurs are silently focusing on their activities. If these
units are nurtured over a period of time through proper hand holding
support, no doubt they can be the future back bone of the country.
Hats off to the vision of the government and bankers who made
the implementation of the scheme possible through them.
Click here to subscribe Bankers Plus

Click here to subscribe Bankers Plus Shivaprasad K

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 Bankers Plus-March 2022 BANKERS PLUS – MAY 2025
Cover page Article Volume VI, Issue 2

Fiscal Health Index -

2025
Mapping State level
Economic Resilience
The Fiscal Health Index (FHI) initiative by NITI Aayog aimed to
evolve an understanding of the fiscal health of states in India. The
FHI analysis covers eighteen major states that drive the Indian
economy in terms of their contribution to India’s GDP, demography,
total public expenditure, revenues, and overall fiscal stability.
States are responsible for approximately two-thirds of public
spending and one-third of total revenue, Their fiscal performance is
important for the country’s overall economic stability. The FHI offers a
systematic approach to assess the state’s fiscal health, identify areas
for improvement, and promote best practices across states.
NITI Aayog has recently released Fiscal Health Index report 2025
which objectively evaluates each state’s fiscal health through a
composite index, facilitating comparisons and benchmarking against
best practices.
Objectives of the Fiscal Health Index:
The key objectives behind the release of FHI by NITI Aayog are,
(a) To provide a comparative analysis of fiscal health across Indian
states through standardized metrics.
(b) To identify areas of strength and concern in states' fiscal
management practices.
(c) To promote transparency, accountability, and prudent fiscal
management through empirical assessment.
(d) To assist policymakers in making informed decisions aimed at
enhancing fiscal sustainability and resilience.

1
 Bankers Plus-March 2022 BANKERS PLUS – MAY 2025
Cover page Article Volume VI, Issue 2
Key Indicators Evaluated:
Fiscal Health Index 2025 is based on analysis of comprehensive set
of indicators that are grouped into five broad categories.

Indicator Parameters
Revenue Generation (a) Tax Buoyancy: Tax buoyancy is a ratio
and Mobilization of change in tax revenue in relation to
change in gross state domestic product
or GSDP of a state. It measures how
responsive a taxation policy is to growth in
economic activities.
(b) Debt-to-GSDP Ratio: The debt-to-
Gross State Domestic Product (GSDP)
ratio is a metric that compares a state’s
total public debt to its GSDP, indicating its
ability to repay its debts, and is often
expressed as a percentage.
Expenditure Evaluation of efficiency in expenditure
Management allocation, prioritization of capital
& Prioritization expenditure, and adherence to fiscal
discipline.
Debt Management Analysis of states’ debt-to-GSDP ratios,
interest payment burdens, and overall
sustainability of debt portfolios.
Fiscal Deficit Measurement of states’ fiscal deficit as a
Management percentage of GSDP and adherence to
statutory limits.
Overall Fiscal Composite analysis of revenue,
Sustainability expenditure, deficit, and debt indicators to
gauge long-term fiscal health.

2
 Bankers Plus-March 2022 BANKERS PLUS – MAY 2025
Cover page Article Volume VI, Issue 2
The data used to calculate the Fiscal Health Index-2025 (major
variables & sub-components under each variable) is sourced from
the Comptroller and Auditor General (CAG) covering
the Financial Year 2022-23. Five Major Sub-Indices are aggregated
to form the Fiscal Health Index.
MAJOR SUB-INDICES MINOR SUB-INDICES
Quality of Expenditure Total Developmental
Expenditure/Total Expenditure
Total Capital Outlay/ GSDP
Revenue Mobilization State Own Revenue/ GSDP
State Own Revenue/ Total
Expenditure
Fiscal Prudence Gross Fiscal Deficit/ GSDP
Revenue Deficit/ GSDP
Debt Index Interest Payments/Revenue Receipts
Outstanding Liabilities/ GSDP
Debt Sustainability Growth Rate of GSDP – Growth Rate
of Interest Payments
Key Findings:
Odisha leads the fiscal health index with a top score of 67.8,
excelling in the Debt Index (99.0) and Debt Sustainability (64.0). It
maintains low fiscal deficits, a strong debt profile, and a high Capital
Outlay/GSDP ratio. Chhattisgarh (55.2) and Goa (53.6) follow,
excelling in Debt Index and Revenue Mobilization, respectively.
Odisha, Jharkhand, Goa, and Chhattisgarh excel in non-tax
revenue mobilization, averaging 21% of Total Revenue. with
Odisha benefiting from mining premiums and Chhattisgarh from coal
block auctions.
3
 Bankers Plus-March 2022 BANKERS PLUS – MAY 2025
Cover page Article Volume VI, Issue 2

State-wise FHI Rank Comparison:

4
 Bankers Plus-March 2022 BANKERS PLUS – MAY 2025
Cover page Article Volume VI, Issue 2
State wise Quality of Expenditure Score Heatmap:

The Fiscal Health Index 2025 offers a valuable tool for assessing
the fiscal performance of Indian states. It highlights the need for
continuous monitoring, prudent fiscal management, and proactive
measures to enhance states' financial health. The Index underscores
the importance of revenue generation, efficient expenditure
management, debt control, and adherence to fiscal deficit targets for
overall fiscal sustainability of the country.
5
 BANKERS PLUS
Regulatory Updates
REGULATORY UPDATES Volume
JUNE
MAY 2025- VOLUME VI,Volume
ISSUE VI,
2023,
IV,2 Issue
12,1,Feb
Volume
Issue Apr2024
25
IV, Issue 3

Regulatory Updates

BANKERS PLUS DEC2023, VOL IV, ISSUE 10

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 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Migration to
RTGS
'.[Link]' domain

In the Statement on Developmental and Regulatory Policies

dated February 7, 2025, on "Enhancing Trust in the
Financial Sector through '[Link]' and '[Link]' domains"
wherein the introduction of exclusive Internet Domain,
‘.[Link]’ for banks to combat the increased instances of
fraud in digital payments was announced. This initiative is
aimed at strengthening the cybersecurity framework and
enhancing public Pconfidence in digital banking
which is a subsidiary on. and payment
systems.
In this background, RBI has recently decided to operationalise
the ‘.[Link]’ domain for banks through the Institute for
Development and Research in Banking Technology
(IDRBT), which has been authorised by National Internet
Exchange of India (NIXI), under the aegis of the Ministry of
Electronics and Information Technology (MeitY), to serve as
the exclusive registrar for this domain.
IDRBT shall guide the banks on various aspects related to
application process and migration to new domain. All banks
are advised by RBI to commence the migration of their
existing domains to the ‘.[Link]’ domain and complete the
process at the earliest and in any case, not later than October
31, 2025.

7
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Opening of and
operation in depositRTGS
accounts of minors

RBI has recently issued the guidelines on Opening of and

operation in deposit accounts of minors. The key
highlights of the guidelines are,
(a) Minors of any age may be allowed to open and operate
savings and term deposit accounts through his/ her natural
or legal guardian. They may also be allowed to open such
accounts with mother as guardian.
(b) Minors above such an age
P which is a limit not less
subsidiary [Link] 10 years and
up to such amount and such terms as may be fixed by the
banks keeping in view their risk management policy, may be
allowed to open and operate savings/ term deposit accounts
independently, if they so desire, and such terms shall be duly
conveyed to the account holder.
(c) On attaining the age of majority, fresh operating
instructions and specimen signature of the account holder
shall be obtained and kept on record. Moreover, if the account
is operated by the guardian, the balance shall be got
confirmed. The banks shall take advance action, including
communicating these requirements to minor account holders
attaining the age of majority, to ensure fulfilment of these
requirements.
(d) The banks are free to offer additional banking facilities like
internet banking, ATM/ debit cards, cheque book facility, etc., -
8
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2
- to the minor account holders basis their risk management
policy, product suitability and customer appropriateness.
(e) The banks shall ensure thatRTGSaccounts of minors, whether
operated independently or through a guardian, are not allowed
to be overdrawn and that these always remain in credit
balance.
(f) The banks shall perform customer due diligence for
opening of deposit accounts of minors and undertake ongoing
due diligence, as per the provisions of KYC AML guidelines.

BANKERS PLUS – MAY 2025

Regulatory Updates Volume VI, Issue 2

Modification
P which is a subsidiary on. in
Checker ID creation
– CGTMSE scheme
CGTMSE has issued user IDs for the officials of member
lending institutions (MLIs) to enter (maker) and approve
(checker) the details on upgradation of accounts which are
marked as Non Performing Assets (NPA) in CGTMSE
portal without specially informing trust. As per the guidelines
issued by CGTMSE, the approving authority shall not be the
rank below Assistant General Manager (AGM) or equivalent
grade.
In a recent review CGTMSE trust has decided to permit the
officials in the rank of Chief Managers (Scale IV) or
equivalent designations to be designated as checkers.
9
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Exports through
warehouses in RTGS
‘Bharat Mart’ in UAE
– relaxations
In order to boost exports from India, RBI has recently
provided relaxations to Indian exporters who exports through
warehouses in ‘Bharat Mart’ in UAE. Bharath Mart is a
multimodal logistics network based marketplace in United
Arab Emirates (UAE) that will provide Indian traders,
exporters, and manufacturers access to the markets in UAE
as well as worldwide. In addition to this, it will help the Indian
P which
exports to showcase is aproducts
their subsidiaryunder
on. one roof. The
relaxations provided include,
(a) AD banks may allow exporters to realise and repatriate full
export value of goods exported to ‘Bharat Mart’ within 9
(nine) months from the date of sale of the goods from the
warehouse.
(b) AD banks may allow the following without any pre-
conditions, after verifying the reasonableness of the same:
(i) Opening/hiring of a warehouse in ‘Bharat Mart’ by an
Indian exporter with a valid Importer Exporter Code.
(ii) Remittances by the Indian exporter for initial as well as
recurring expenses for setup and continuing business
operations of its offices.

10
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Liquidity Coverage
RTGS Ratio – Review of
haircuts on HQLA’s

As per Basel norms, the Liquidity Coverage Ratio (LCR)

aims to ensure that a bank maintains an adequate level of
unencumbered, high-quality liquid assets (HQLAs) that can
be converted into cash to meet its liquidity needs for a 30
calendar day time horizon under a significantly severe liquidity
stress scenario specified by supervisors.
At a minimum, the stock of liquid assets should enable the
P which
bank to survive until is aofsubsidiary
day 30 [Link], by which
the stress
time it is assumed that appropriate corrective actions can be
taken. RBI in it’s latest instructions has issued following
guidelines on calculation of net liabilities to maintain High
quality liquid assets (HQLAs) and haircuts associated with
HQLAs.
(a) Banks shall assign an additional 2.5 per cent run-off factor
for retail deposits which are enabled with internet and
mobile banking facilities (IMB) i.e., stable retail deposits
enabled with IMB shall have 7.5 per cent run-off factor and
less stable deposits enabled with IMB shall have 12.5 per cent
run-off factor (as against 5 and 10 per cent respectively,
prescribed currently). Unsecured wholesale funding provided
by non-financial small business customers (SBCs) shall be
treated in accordance with the treatment of retail deposits as
above.
11
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

(b) Level 1 HQLA in the form of Government securities shall

be valued at an amount not greater than their current market
value, adjusted for applicableRTGS
haircuts in line with the margin
requirements under the Liquidity Adjustment Facility (LAF)
and Marginal Standing Facility (MSF) as described by
Reserve Bank of India.
(c) In case a deposit, hitherto excluded from LCR computation
(for instance, a non-callable fixed deposit), is contractually
pledged as collateral to secure a credit facility or loan, such
deposit shall be treated as callable for Liquidity Coverage
Ratio (LCR) purposes.
(d) As per the current guidelines, deposits from entities such
as HUFs, partnerships, Association of Persons (AoPs), trusts
P which is a subsidiary on.
etc., shall be treated as deposit from ‘other legal entities
(OLEs)’ under unsecured wholesale funding category and
shall attract run-off rate of 100 per cent, provided they are not
treated as SBC for LCR purpose. Based on a review, RBI has
decided that OLE category shall consist of all deposits and
other funding from banks/insurance companies & financial
institutions and entities in the ‘business of financial
services’ . Thus, funding from non-financial entities such as
shall be categorised as funding from ‘non-financial corporates’
and attract a run-off rate of 40 per cent (as against 100 per
cent currently prescribed), unless the above entities are
treated as SBCs under LCR framework.
These amendments shall come into force with effect
from April 01, 2026.

12
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Change in
RTGS
Key Policy Rates-
Resolution by MPC
Monetary Policy Committee (MPC) in it’s recent meeting has
decided to reduce the policy repo rate by 25 basis points to
6.00 per cent. Consequently, the standing deposit facility
(SDF) rate under the liquidity adjustment facility (LAF) shall
stand adjusted to 5.75 per cent and the marginal standing
facility (MSF) rate and the Bank Rate to 6.25 per cent.
This decision is in consonance with the objective of achieving
the medium-term target for consumer price index (CPI)
inflation of 4 per Pcent
which is a subsidiary
within a band of on.
+/- 2 per cent, while
supporting growth.
Considering the ongoing tariff war and expected global
economic disruptions, RBI predicts real GDP growth for 2025-
26 at 6.5%, with Q1 at 6.5%; Q2 at 6.7%; Q3 at 6.6 %; and Q4
at 6.3%. RBI also projected CPI inflation for the financial year
2025-26 is projected at 4.0%, with Q1 at 3.6%; Q2 at 3.9%; Q3
at 3.8 %; and Q4 at 4.4 %.

Important Notice
The copy of this e magazine is intended for the use to Subscribers only.
Please stop Unauthorized sharing. If anyone receive the same from
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9819952288/9916049194 or email ramyaedu2@[Link], please
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13
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

DFS notifies
amalgamation of 26
RTGS
th
RRBs in 4 phase of
amalgamation
Department of Financial Services (DFS) has recently
notified amalgamation of 26 Regional Rural banks (RRBs)
on the principles of “One State One RRB”. This is fourth
phase of amalgamation of RRBs.
Considering the improvement in efficiency of the RRBs due to
amalgamations in the past, Ministry of Finance had rolled out
an amalgamation plan in November-2024 for consultation with
stakeholders. Based P which is afeedback
on the subsidiary on.
received from various
stakeholders, amalgamation of 26 RRBs in 10 States and 1
UT have been carried out with primary focus on improvement
in scale efficiency and cost rationalization.
At present, 43 RRBs are functioning in 26 States and 2 UTs.
Post amalgamation, there will be 28 RRBs in 26 states and 2
UTs with more than 22000 branches covering 700 districts.
RRBs predominant area of operation is in rural areas with
approx. 92% of branches in rural/semi urban areas. This is
fourth phase of amalgamation. In previous 3 phases viz.
Phase-I (FY 2006 to FY 2010) number of RRBs were reduced
from 196 to 82, Phase-2 (FY 2013 – FY 2015) number of
RRBs were reduced from 82 to 56 and Phase-3 (FY 2019 to
FY 2021) number of RRBs were reduced from 56 to 43.

14
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Change in cut-off
timings to determine
RTGS
NAV of Mutual
Funds schemes
SEBI has recently announced a change in cut-off timings to
determine the net asset value (NAV) with respect to
repurchase or redemptions of units in overnight schemes of
mutual funds.
The changes will allow time for stock brokers (SBs), or
clearing members (CMs) to un-pledge units of Mutual Fund
Overnight Schemes (MFOS) and place redemption requests
with mutual funds,Pafter
whichtheisclose
a subsidiary [Link].
of market
Where the application is received up to 3.00 pm – the
closing NAV of day immediately preceding the next
business day; and Where the application is received after
3.00 pm –the closing NAV of the next business day is
applicable.
However in case application is received through online mode,
the cut-off timing of 7 PM shall be applicable for overnight
fund schemes. “Business Day” does not include a day on
which the Money Markets are closed or otherwise not
accessible. The new guidelines are applicable from June 01,
2025. The revised cut off timings for redeeming units in
overnight mutual fund (MF) schemes has been issued based
on recommendations of AMFI & Mutual funds advisory
committee.

15
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Incentives for
Currency Distribution
RTGS
& Exchange Scheme
for bank branches
RBI has recently issued master direction on incentives for
Currency Distribution & Exchange Scheme for bank
branches including currency chests. The directions facilitate
all the bank branches to provide better customer service to
the members of public keeping in view the objectives of Clean
Note Policy.
As per the scheme, banks are eligible for the following
financial incentivesP for
which is a subsidiary
setting [Link] and
up requisite
facilitating exchange distribution of notes and coins:
Nature of Service Particulars of Incentives /
Service Charges
Opening and operating (a) Capital Cost: Up to 100%
Currency Chests in North of capital expenditure is
Eastern region, hilly areas eligible for reimbursement
and J & K. subject to the ceiling of ₹50
lakh (inclusive of all taxes).
(b) Revenue cost: 50% of
revenue expenditure is eligible
for reimbursement for the first 5
years of CC operations
(inclusive of all taxes).
16
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2
Nature of Service Particulars of Incentives/ Service
Charges
Exchange of soiled notes Exchange of soiled notes – ₹2/-
(a)RTGS
or adjudication of mutilated per packet for exchange of soiled notes
notes over the counter at in the denominations of ₹50/- and
bank branches. below.
(b) Adjudication of mutilated
notes ₹2/- per piece.
The incentive for distribution of coins
shall be paid on the basis of net
withdrawal from the currency chest.
For incentive calculation, 5000 pieces
of 50 paise coins; 2500 pieces of ₹1,
₹2 or ₹5 coins; 2000 pieces of ₹10 or
P which is
₹20a subsidiary on. be deemed to
coins would
constitute one bag.
Distribution of coins (a) ₹65/- per bag for distribution of
coins.
(b) An additional incentive of ₹10/- per
bag shall be paid for coin distribution in
rural and semi-urban areas on the
submission of a Concurrent Auditor
(CA) certificate to this effect.
Cash deposit by non-chest Service charge to be levied by the CC
branches under Linkage on the non-chest branches.
scheme with CCs (a) Large modern CCs – ₹8/- per 100
pieces.

(b) Other CCs – ₹5/- per 100 pieces.

17
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Note Sorting
RTGS
Machines:
Implementation of
BIS standards
RBI in October 2024 instructed the banks to deploy only such
Note Sorting Machines models that conform standards of –
‘IS 18663: 2024’ published by Bureau of Indian Standards
(BIS) before May 01, 2025.
In view of representations received from various banks citing
implementation challenges, RBI has decided to extend the
timeline for implementation of the instructions by six months
P which
i.e., up to November is a subsidiary on.
01, 2025.

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 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Reduction in
response time for RTGS
UPI transactions
With an objective of streamlining the performance of UPI,
NPCI has recently revised the response time for UPI APIs
with effect from 16th June 2025 which is as follows,
UPI API Entities Existing Revised
response response
time time
1 Request Pay, Remitter Bank 30 15 seconds
Response Pay Beneficiary Bank seconds
(Debit & Credit)
P which is a subsidiary on.
2 Check Remitter Bank 30 10 seconds
transaction Beneficiary Bank seconds
status
3 Transaction Remitter Bank 30 10 seconds
Reversal (Debit Beneficiary Bank seconds
& Credit)
4 Validate Payer PSP 15 10 seconds
Address (Pay, Payee PSP seconds
Collect) Beneficiary Bank
(Account+IFSC
based transactions)
In addition to these guidelines, as an additional security
measure NPCI has instructed UPI application providers to
display ‘ultimate beneficiary name’ only to the users while
initiating the transactions without providing any option to
modify the same.
19
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Processing of
RTGS
Regulatory
Approvals through
PRAVAAH portal
Reserve Bank of India had launched PRAVAAH (Platform
for Regulatory Application, Validation And AutHorisation)
portal in May 2024 to streamline online applications for
regulatory authorisations, licenses, and approvals ensuring
seamless, secure and faster delivery of services in a
transparent manner. PRAVAAH has a facility through which
the applicant can submit additional information, or
P which
clarifications sought is aRBI.
by the subsidiary on. communicate its
RBI will
decision through PRAVAAH in a time bound manner.
With effect from May 01, 2025, all applicants, including
Regulated Entities (Banks & financial institutions regulated by
RBI) are advised to use PRAVAAH for submitting applications
for regulatory authorisations, licenses, and approvals to
RBI using the application forms already available in the portal.
Applications for which a specific form is not available can be
submitted using the general-purpose form.
In exceptional cases, If the applicants are unable to submit
their applications through PRAVAAH system, they may submit
it directly to the Reserve Bank as hitherto. However, such
applications also will be processed through the PRAVAAH
system by the Reserve Bank and the applicants will be duly
notified of the same.

20
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Review of
Requirement of
RTGS
Counter-Cyclical
Capital Buffer
As per Basel norms, banks to build up Countercyclical
Capital Buffer (CCBy) in good times which may be used to
maintain flow of credit to the real sector in difficult times.
The CCCB may be maintained in the form of Common Equity
Tier 1 (CET 1) capital only, and the amount of the CCCB may
vary from 0-2.5% of risk weighted assets (RWA) of the banks.
The framework envisages credit-to-GDP gap as the main
indicator, which P
maywhichbeis used in conjunction
a subsidiary on. with other
supplementary indicators. Based on review and empirical
analysis of CCyB indicators, RBI has recently decided not to
activate CCyB requirement for banks at this point in time.

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 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Dispensation of
RTGS
₹100 & ₹200
banknotes
through ATMs
As part of an endeavour towards enhancing public access to
frequently used denominations of banknotes, RBI has
recently instructed all banks and White Label ATM
Operators (WLAOs) to ensure that their ATMs dispense ₹100
and ₹200 denomination banknotes on a regular basis as per
following milestones:
(a) By September 30, 2025: 75% of all ATMs shall dispense
either ₹100 or ₹200
P which is a subsidiary
denomination on. from at least one
banknotes
cassette.
(b) By March 31, 2026: 90% of all ATMs shall dispense either
₹100 or ₹200 denomination banknotes from at least one
cassette.

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22
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Limits for investment

in debt and sale of
RTGS
Credit Default Swaps
by FPIs
Under the provision of FEMA 1999, RBI fixes the limit for
Foreign Portfolio Investors (FPIs) investment in
Government Securities (G-Secs), State Government
Securities (SGSs) and corporate bonds every financial year.
RBI has recently fixed the limits for FY 2025-26.
The limits for FPI investment in G-Secs, SGSs and corporate
bonds for FY 2025-26 is fixed at 6 per cent, 2 per cent and
P which is aofsubsidiary
15 per cent respectively, on.
the outstanding stocks of
securities for 2025-26. All investments by eligible investors in
the ‘specified securities’ shall be reckoned under the Fully
Accessible Route (FAR- Special route created for investment
made by NRIs).
The allocation of incremental changes in the G-Sec limit (in
absolute terms) over the two sub-categories – ‘General’ and
‘Long-term’ – shall be retained at 50:50 for 2025-26. The
entire increase in limits for SGSs (in absolute terms) has been
added to the ‘General’ sub-category of SGSs.
As per the provisions of FEMA, the aggregate limit of the
notional amount of Credit Default Swaps sold by FPIs shall
be 5 per cent of the outstanding stock of corporate bonds.
Accordingly, an additional limit of ₹2,93,612 crore is set
out for 2025-26.
23
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

The revised limits (in absolute terms) for the different

categories, are,
Investment limits
RTGSfor FY 2025-26
all figures in ₹ Crore
G-Sec SGS
G-Sec SGS Corporate Total
Long Long
General General Bonds Debt
Term Term
Current FPI
2,68,984 1,37,984 1,17,752 7,100 7,63,503 12,95,323
limits
Revised limit for
the HY Apr 2025- 2,79,236 1,48,236 1,26,248 7,100 8,22,169 13,82,989
Sept 2025
Revised limit for
the HY Oct 2025- 2,89,488 1,58,488 1,34,744 7,100 8,80,835 14,70,654
Mar 2026
P which is a subsidiary on. PLUS – MAY 2025
BANKERS
Regulatory Updates Volume VI, Issue 2

IBA Framework on
Menace of Money
Mule Accounts
To protect the end users from the growing menace of money
mules (Money Mule is a term used to describe innocent
victims who are duped by fraudsters into laundering stolen/
illegal money via their bank accounts), IBA has recently
issued framework which provides detailed operational
instructions for banks to protect the Interest of End Users from
the Menace of Money Mule Accounts.
Click here for detailed framework

Click here for

detailed framework

24
 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Extension of timeline
for implementation
RTGS
optional T+0
settlement cycle
SEBI in December 2024, has enhanced the scope of optional
T+0 rolling settlement cycle in addition to the existing T+1
settlement cycle in Equity Cash Markets.
SEBI has also advised stock brokers who are designated as
Qualified Stock Brokers (QSBs) and meet the parameter of
minimum number of active clients for qualification as QSBs as
on December 31, 2024 shall put in place necessary systems
and processes for P which isseamless
enabling a subsidiary on.
participation of investors
in optional T+0 settlement cycle with effect from May 01,
2025.
Based on the feed back received from industry participants,
SEBI has decided to extend the timeline for QSBs for putting
in place the necessary systems and processes for enabling
seamless participation of investors in optional T+0 settlement
cycle, to November 01, 2025.

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 BANKERS PLUS – MAY 2025
BankersRegulatory
Plus Updates REGULATORY
Volume UPDATES
VI, Issue 2

Key policy rates

RTGS
as on 30.04.2025

Key Rate-As on 31.03.2025 30.04.2025

Policy Repo Rate 6.25% 6.00%
Fixed Reverse Repo Rate 3.35% 3.35%
Standing Deposit Facility Rate 6.00% 5.75%
MSF Rate 6.50% 6.25%
Bank Rate 6.50% 6.25%
CRR 4.00% 4.00%
SLR 18.00% 18.00%
Base Rate P which is a subsidiary on.
9.10%-10.40% 9.10%-10.40%
MCLR (Overnight) 8.15%-8.45% 8.15%-8.45%
Savings Deposit Rate 2.70%-3.00% 2.70%-3.00%
Term Deposit Rate > 1 Year 6.00% - 7.25% 6.00% - 7.25%

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INDUSTRYINDUSTRY
BANKERS
UPDATES
INDUSTRY UPDATES
UPDATES
PLUS Volume II, Issue 11
Volume VI, Issue
Volume II-1, Apr2024
Issue 258
MAY 2025- VOLUME VI, JUNE
Volume
ISSUE 2023,
IV, Issue
2 Volume
12, FebIV, Issue 3
Volume II, Issue 6
RTGS
Industry Updates INDUSTRY UPDATES

REGULATORY UPDATES

SBICAP which is a subsidiary of the State Bank of India has

set up a SPV (SLS Trust) to manage this operation.

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 BANKERSCover
PLUS –page
MAY 2025
Article
Industry Updates Volume VI, Issue 2

RBI Launches
Verified WhatsApp
Channel for Public
Awareness
Reserve Bank of India has been conducting public
awareness campaigns across various mediums such as text
messages, television and digital advertisements, under the
‘RBI Kehta Hai’ (RBI Says) initiative. The RBI is now further
expanding its outreach by adding WhatsApp as an additional
means to deliver public awareness messages.
RBI has recently initiated a verified 'Reserve Bank of India'
EASE Reforms
account soemail
far and Subscribe
on WhatsApp, with an aim to atmake important
online
financial information more accessible to everyone, regardless
of their geographical location. This initiative will ensure that
vital information reaches people in a simple, direct, and
effective manner, strengthening trust and resilience in
digital financial ecosystem.

28
 BANKERSCover
PLUS –page
MAY 2025
Article
Industry Updates Volume VI, Issue 2

‘On Tap’ application

facility under ‘theme
neutral’ Regulatory
Sandbox
The Reserve Bank has been operating the Regulatory
Sandbox (RS) framework since 2019, and four specific
thematic cohorts have been announced and completed till
date. An ‘On Tap’ application facility for themes of closed
cohorts was announced in October 2021.
A fifth ‘Theme Neutral’ cohort with a specified time window
for receiving applications was announced in October 2023,
EASE Reforms
which soemail
will close farin and
MaySubscribe online this
2025. Under at cohort, any
innovative product or solution within the regulatory ambit of
RBI could be tested if found eligible. Based on the experience
gained and feedback received from stakeholders, RBI has
now proposed to make the Regulatory Sandbox ‘Theme
Neutral’ and ‘On Tap’.
This initiative is expected to foster continuous innovation and
keep pace with the rapidly evolving FinTech / regulatory
landscape. Under this theme, application containing any
technology/theme pertaining to Digital financial literacy,
Digital lending and alternate credit scoring, e-KYC and identity
verification, Artificial Intelligence (AI), Blockchain, Machine
Learning (ML), Financial inclusion, Mule account identification
and tracking, Open finance, RegTech & SupTech can be
tested by the eligible participants.

29
 BANKERSCover
PLUS –page
MAY 2025
Article
Industry Updates Volume VI, Issue 2

NITI NCAER –
States Economic
Forum Portal
Finance Minister has recently launched the “NITI NCAER
States Economic Forum” portal . The portal has been
developed by NITI Aayog, in collaboration with the National
Council of Applied Economic Research (NCAER), which is
a comprehensive repository of data on social, economic and
fiscal parameters, research reports, papers, and expert
commentary on State Finances for a period of about 30 years
(i.e 1990-91 to 2022-23).The portal will serve the source of
authentic data
EASE Reforms which
soemail
far and will help States
Subscribe online atto make more
meaningful interventions, raising revenues, managing debts
and learning from peer experiences.
BANKERS PLUS – MAY 2025
Industry Updates Volume VI, Issue 2

Appointment of
[Link] Gupta
- Dy Governor of RBI
Government of India has recently appointed Dr. Poonam
Gupta, Director General, National Council of Applied
Economic Research, New Delhi as Deputy Governor of
Reserve Bank of India for a period of 3 years. The other 3
deputy governors of RBI are, Shri M. Rajeshwar Rao, Shri T.
Rabi Sankar & Shri Swaminathan J.
30
 BANKERSCover
PLUS –page
MAY 2025
Article
Industry Updates Volume VI, Issue 2

Validity of COPRA
Act, 2019 provisions
on pecuniary
jurisdiction
The Supreme Court has recently upheld the Constitutional
validity of key provisions of the Consumer Protection Act,
2019 which prescribe the pecuniary jurisdiction of District,
State and National Consumer forums [Case of Rutu Mihir
Panchal & Ors. vs. Union of India & Ors.].
Supreme court has upheld Sections 34, 47 and 58 as per
which the jurisdiction of the Consumer Commissions is to be
EASE Reforms
determined soemail
far onandtheSubscribe
based online at paid for the
actual amount
product or service and not on the basis of the
compensation claimed by the affected party.
The court has opined that the classification of claims based on
the value of goods and services paid as consideration has a
direct nexus to the object of creating a hierarchical structure of
judicial remedies through tribunals. The forums under
COPRA Act 2019, are having the following jurisdictions.
District If the sale consideration paid is upto Rs.50
Commission lakhs.
State If the sale consideration paid above Rs.50
Commission lakhs and upto Rs. 2 crore.
National If the sale consideration paid exceeds Rs. 2
Commission crore.

31
 BANKERSCover
PLUS –page
MAY 2025
Article
Industry Updates Volume VI, Issue 2

MOU between IEPFA

& Kotak Mahindra
Bank to Enhance
Investor Education
In a significant move to enhance investor education and
protection, the Investor Education and Protection Fund
Authority (IEPFA), functions under Ministry of Corporate
Affairs, Government of India, has signed a Memorandum of
Understanding (MoU) with Kotak Mahindra Bank. This
strategic partnership aims to amplify the dissemination of
critical investor awareness messages through Kotak
Mahindra Bank’s
EASE Reforms soemail
farextensive physical
and Subscribe andat digital network
online
across the country.
The collaboration will see IEPFA’s curated investor education
content being prominently featured on Kotak Mahindra Bank’s
ATMs, kiosks, websites, mobile apps and social media
platforms. Digital banners, short films, and educational videos
produced by IEPFA will be showcased to raise awareness on
responsible investing, financial fraud prevention, and the
protection of investor’s rights. This initiative is designed to be
rolled out during the current financial year 2025-2026.
Important Notice
The copy of this e magazine is intended for the use to Subscribers only. Please
stop Unauthorized sharing. If anyone receive the same from unauthorized
sources (Other than from mobile numbers 9819952288/9916049194 or email
ramyaedu2@[Link], please desist from downloading. Any unauthorized
sharing prompts for an appropriate action from the publisher.

32
 BANKERSCover
PLUS –page
MAY 2025
Article
Industry Updates Volume VI, Issue 2

BIMA ASBA-
UPI-Based Payment
System for
Insurance Premiums
IRDAI has recently introduced a new UPI payment
mechanism for insurance premium payments in the name of
BIMA-ASBA (Applications Supported by Blocked Amount)
applicable in case of life and health insurance policies.
The Bima-ASBA facility has been commenced from March
2025 allows policyholders to block funds in their bank
accounts via the Unified Payments Interface (UPI), ensuring
EASE Reforms
a smoother soemail
far and
transaction Subscribe
process withoutonline at
immediate debits. The
account will be debited on issuance of Insurance policy by the
insurers.
Policyholders can authorise insurers to block a specific
amount in their bank accounts before the acceptance of an
insurance proposal. The facility works similar to ASBA facility
which is used in case of IPOs.

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 BANKERSCover
PLUS –page
MAY 2025
Article
Industry Updates Volume VI, Issue 2

Revision in rate of
TCS in Liberalised
Remittance
Scheme (LRS)
As per the announcement made during union Budget 2025-
26, Tax Collection at Source (TCS) applicable for
Liberalised Remittance Scheme (LRS) (permitted from any
individuals upto a limit of USD 2,50,000 per financial year) has
been revised with effect from 01.04.2025. The applicable rate
of TCS on various transactions under LRS are,
Sl. Purpose of remittance Revised TCS with
EASE
No
Reforms so far
email and Subscribe online at
effect from 01.04.2025
1 LRS for education purpose, if NIL
the amount being remitted is
from education loan obtained
from a specified institution.
2 LRS for the purpose of Upto 10 Lakh: NIL
education, other than (1) Above 10 Lakhs: 5%
above (or) for the purpose of
medical treatment.
3 Any other purpose under LRS Upto 10 Lakh: NIL
Above 10 Lakh: 20%
4 Overseas tour packages Upto 10 Lakh: 5%
Above 10 Lakh: 20%

34
 BANKERSCover
PLUS –page
MAY 2025
Article
Industry Updates Volume VI, Issue 2

Enhancing
transaction limits
in UPI
At present, the transaction amount for UPI, covering both
Person to Person (P2P) and Person to Merchant
payments (P2M), is capped at ₹1 lakh except for specific use
cases of P2M payments which have higher limits, some at ₹2
lakh and others at ₹5 lakh.
As announced in latest Monetary policy, to enable the
ecosystem to respond efficiently to new use cases, it is
proposed that NPCI, in consultation with banks and other
EASE Reformsmay
stakeholders, soemail
farannounce and revise
and Subscribe such
online at limits based on
evolving user needs. Appropriate safeguards will be put in
place to mitigate risks associated with higher limits. Banks
shall continue to have the discretion to decide their own
internal limits within the limits announced by NPCI. NPCI will
issue detailed guidelines on this shortly.

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 Volume II, Issue 7
KNOWLEDGE
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JUNE
MAY 2025- VOLUME VI, ISSUE VI, Issue 1, Apr 25
2023, Volume IV, Issue 3

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ANNUAL SUBSCRIPTION CHARGES-RS. 300/-

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LIST OF ARTICLES
[Link] Name of the Article Author Page no.
1 Building Brilliance- Ms. Preeti 37-40
A focus on Capacity Building in Vasanth
Banking Sector Kethavath
2 A decade of Dr. Deepak 41-44
Pradhan Mantri Mudra Yojana Kumar
Note: Those who are interested can contribute your articles on any latest and
contemporary topics. The article should be having around 1000 words.
Publisher reserves exclusive right to publish the article. Subscription is
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 BANKERS PLUS
Cover –page
MAY 2025
Article
Volume VI,Bankers
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Issue 2 Plus
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Volume II, Issue
Building7 Brilliance-
AVolume
focusII, Issue 6
on Capacity
Building in
Banking Sector Ms. Preeti Vasanth Kethavath
In a constantly changing global environment, capacity building has
become an essential strategy for empowering individuals,
organisations, and communities to succeed. Capacity building
enhances skills, knowledge, and resources, promoting sustainable
development and resilience. It is a vital process that strengthens the
abilities of individuals, organisations, and communities, enabling them
to perform effectively and achieve their goals.
Understanding
ANNUAL the concept of capacity
SUBSCRIPTION building:300/-
CHARGES-RS.
Capacity
Publisheddevelopment
in is the process by which individuals, groups,
and organisations enhance their ability to mobilise and utilise
resources to achieve their goals sustainably. The emphasis is on
human skills development because it involves individuals’ learning. It
also improves human capital and trust while enhancing knowledge,
skills, and attitudes, ultimately fostering a high-performance culture
and growth mindset.

37
 BANKERS PLUS
Cover –page
MAY 2025
Article
Volume VI,Bankers
Bankers Plus-March
Issue 2 Plus
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Volume II, Issue
Learning agility:
7
VolumeitII,as
Defining Issue
the6 essential competency
and the ability to learn from
experience, swiftly unlearn, re-learn,
and apply that learning to perform
effectively in new situations. To remain
relevant, employees today must be
more agile than ever, willing to take on
continuous paradigm shifts and cultural
diversity in the workforce and
demonstrate capabilities to take on
assignments beyond their experience.
Combine the two Power packs: Learning Ability and Agility for
Capacity building
ANNUAL SUBSCRIPTION CHARGES-RS. 300/-
Learning ability and learning agility are two distinct yet interrelated
Published in
concepts that describe how individuals acquire and apply knowledge.
While learning ability provides the essential skills necessary for
effective performance in familiar tasks, learning agility provides
individuals with the ability to adapt and thrive in new situations.
Here’s a detailed elaboration how the two are interlinked:

38
 BANKERS PLUS
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Article
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Role of Capacity
7 Building in Banking:
Volume II, Issue 6 Banking requires continuous capacity
building, as they are a knowledge-
based industry, and skilled employees
with the right mindset are among the
key differentiators. Capacity building
in Banking is crucial for fostering
innovation, efficiency, and resilience
within the industry. Let us check the
focused area:
Capacity building essentials:
Capacity building in the banking sector is essential to enhance the
effectiveness and adaptability of financial institutions. The
ANNUAL from
recommendations SUBSCRIPTION CHARGES-RS.
various committees, including one300/-
chaired by
Published
G. in
Gopalakrishnan, outline measures to enhance human resource
capabilities and overall operational performance. Key essentials are,
(a) Skill enhancement
(b) Mandatory Certifications
(c) Establishment of various training institutions and programs to
upskill banking professionals
(d) System-wide measures
(e) Continuous Professional education
(f) Innovative Training methodologies
(g) Focus on Leadership development
(h) Collaboration with Academia and Industry
(i) Talent Management practices
Key Essentials in capacity building:
(a) Comprehensive analysis of training needs: Constant
interaction with both field and management level officials will help to
identify the key training needs.

39
 BANKERS PLUS
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MAY 2025
Article
Volume VI,Bankers
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Issue 2 Plus
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(b) Regular offline and online training: This should be both
7
organisational and learner-centric to maintain a proper balance. The
Volume II, Issue 6
training strategy ought to be pull-driven rather than push-driven.
(c) External Connoisseurs: Banks collaborate with external experts
and reputable institutions to enhance learning outcomes, fill talent
gaps, and adopt industry best practices from diverse perspectives.
(d) Soft skills training: Banks should prioritize soft skills training
and leadership development programs across all levels of their
organization to cultivate a strong pipeline of staff and leaders for the
future of banking.
Organisational learning is heavily impacted by the behaviour of
leaders. When leaders engage with and listen to their employees, it
fosters an environment that encourages learning. By demonstrating a
willingness to consider different perspectives and alternative
ANNUAL
viewpoints throughSUBSCRIPTION CHARGES-RS.
their actions, leaders 300/-
enable employees to
Published
contribute new in ideas and feel valued.
There is a pressing need to recognise that "learning" is beyond the
realm of HR. When every business unit acknowledges that they are
co-partners in the learning process, the organisation will begin to
experience substantial benefits. This collaborative approach ensures
that learning and development are integrated across all verticals,
fostering a continuous improvement culture. Present banking industry
demands specialized knowledge and skills. Thus, it is essential for
banks to systematically enhance the capabilities of their varied
workforce. This strategic capacity building is crucial for sustaining
their performance and fostering continued growth.

ABOUT THE AUTHOR

The author of this article Ms. Preeti Vasanth
Kethavath is working as Chief Manager (Faculty) at
State Bank foundation Institute, Indore.

40
 BANKERS PLUS
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Article
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7
Volume II, Issue 6
A decade of
Pradhan Mantri
Dr. Deepak Kumar
Mudra Yojana
Pradhan Mantri Mudra Yojana (PMMY) was launched on April 8,
2015, stands out as a landmark scheme designed to provide access
to financial support for small businesses and micro and small
entrepreneurs. Over the past decade, PMMY has demonstrated
remarkable success in extending credit to the grassroots level and
building micro enterprises across the length and breadth of the
country.
Categorization of loans under PMMY:
ShishuANNUAL
Loans up SUBSCRIPTION CHARGES-RS.
to ₹50,000. This category 300/-
constitutes the largest
Published share
in in terms of the number of loans, initially around 93%
in FY16, but has gradually declined to about 51.7% in
FY25, suggesting a progression of businesses.
Kishor Loans above ₹50,000 and up to ₹5 lakh. The share of
Kishor loans has significantly increased from 5.9% in
FY16 to 44.7% in FY25, indicating a move towards larger,
growth-oriented enterprises.
Tarun Loans above ₹5 lakh and up to ₹10 lakh.
Tarun Introduced in October 2024, this category provides loans
Plus above ₹10 lakh and up to ₹20 lakh, catering to the needs
of slightly larger micro-enterprises with growth potential.
Highlight of PMMY's success:
(a) Over the past decade, PMMY has demonstrated remarkable
success in extending credit to the grassroots level. As of March 2025,
the scheme has sanctioned over 52 crore loans with a total value
exceeding ₹33.65 lakh crore.
41
 BANKERS PLUS
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(b) In 10 years, cumulatively more than 52 crore accounts of MUDRA
7
have been opened, of which 78% of the accounts are Shishu (40
Volume II, Issue 6
crore), 20% are Kishor (10 crore) and 2% Tarun/Tarun Plus (2
crore).
(c) The growth in the amount of loans disbursed was an average of
33% in the first three years but declined there after due to COVID-19.
Again, disbursal increased by 36% in FY23.
(d) The average ticket size of the loans has nearly tripled to Rs 1.02
lakh in FY25, from Rs 72,000 in FY23 and from Rs 38,000 in FY16.
The increase in the average loan ticket size signifies the maturing
credit demand and the potential for scaling up of businesses.

ANNUAL SUBSCRIPTION CHARGES-RS. 300/-

Published in

Women Empowerment: Women constitute a significant portion of

the beneficiaries, accounting for approximately 68-70% of the total
loan accounts. The per woman PMMY disbursement amount has
seen a CAGR of 13% between FY16 and FY25, reaching ₹62,679.
These women-owned MSMEs’ contribution to the employment
generated by the total Udyam registered units is 18.73%. Women-led
MSMEs not only contribute to output generation but also to gender
inclusivity.
42
 BANKERS PLUS
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7
Volume II, Issue 6

Statewise performance: As of February 28, 2025, since the launch of

the Pradhan Mantri Mudra Yojana in 2015, Tamil Nadu has recorded
the highest disbursal among states at ₹3,23,647.76 crore. Uttar
Pradesh follows with ₹3,14,360.86 crore, while Karnataka ranks third
with ₹3,02,146.41 crore. West Bengal and Bihar have also seen
significant disbursals of ₹2,82,322.94 crore and ₹2,81,943.31 crore
respectively. Maharashtra stands sixth at ₹2,74,402.02 crore,
the scheme’s
reflectingANNUAL broad reach and
SUBSCRIPTION impact across300/-
CHARGES-RS. key states
over the pastindecade.
Published
Among Union Territories,
Jammu and Kashmir leads with
a total disbursal of ₹45,815.92
crore across 21,33,342 loan
accounts. The figures
underscore the role of the
scheme in expanding access to
credit.
International Recognition:
The International Monetary Fund (IMF) has consistently
acknowledged the impact of the Pradhan Mantri Mudra Yojana
(PMMY) in expanding financial access and promoting inclusive
entrepreneurship in India. In its 2024 release, the IMF reaffirmed that
India’s enabling policy environment for entrepreneurship, through
programmes such as PMMY, is actively contributing to increased
self-employment and formalisation through credit access.
43
 BANKERS PLUS
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KNOWLEDGE UPDATES
Volume II, Issue
The Way Forward: To ensure the continued success and enhanced
7 a multi-pronged approach is required.
impact of PMMY,
Volume II, Issue 6
(a) Improving Credit Quality: Focus on strengthening credit
assessment processes, promoting responsible lending, and
enhancing monitoring mechanisms to reduce NPAs.
(b) Deepening Outreach: Implement targeted strategies to improve
access in underserved regions and among marginalized
communities.
(c) Linking with Skilling and Market Access: Integrate PMMY with
skill development programs and initiatives that provide market
linkages to ensure sustainable growth of the supported enterprises.
(d) Enhancing Financial Literacy: Conduct widespread financial
literacy campaigns for potential and existing borrowers to promote
better financial management.
ANNUAL SUBSCRIPTION
(e) Streamlining CHARGES-RS.
Processes: Simplify 300/- and
loan application
disbursement
Published in processes to reduce delays and make the scheme
more accessible.
(f) Leveraging Technology: Utilize digital platforms for application,
monitoring, and support to improve efficiency and transparency.
Moving forward, a renewed focus on improving credit quality,
deepening outreach to underserved areas, and integrating skilling
and market access support is crucial. Streamlining processes and
leveraging technology can further enhance the scheme's efficiency
and transparency. As PMMY embarks on its next phase, addressing
these limitations will be paramount in ensuring its continued success
as a powerful engine for entrepreneurship and inclusive economic
growth across India.
ABOUT THE AUTHOR
The author of this article Dr. Deepak Kumar is working
as Chief Manager (Research) at Union Bank of
India, Lucknow.

44
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