Economy
Financial Sector
The Financial Sector stands as the very bedrock of any modern economy, serving as the critical conduit that mobilizes savings and channels them into productive investments. It encompasses a vast
55 articles in this topic
Articles on Financial Sector
Fiscal Health Index: Evaluating India's Public Finance and Macroeconomic Stability for UPSC
India's fiscal health, encompassing public finance sustainability and macroeconomic stability, is assessed through indicators like fiscal deficit, debt-to-GDP, and revenue buoyancy. Despite frameworks like the FRBMA and Finance Commission recommendations, challenges persist due to structural revenue constraints, expenditure pressures, and federal fiscal stress, necessitating continuous reforms and transparent governance for long-term economic resilience.
Fiscal Crossroads: The 28-February-2026 Mandate and India's Evolving Federal Finances
The date 28-February-2026 signifies a critical juncture in India's fiscal federalism, marking the effective conclusion of the 15th Finance Commission's award period and the imminent operationalization of the 16th Finance Commission's recommendations for fiscal year 2026-27 onwards. This transition demands a comprehensive review of inter-governmental financial transfers, revenue devolution strategies, and the evolving dynamics between Union and State fiscal responsibilities.
Fiscal Health Index: A Comprehensive Analysis for UPSC Civil Services Examination
India's fiscal health, evaluated through a composite of indicators like fiscal deficit, debt-to-GDP ratio, and revenue balance, is critical for macroeconomic stability and developmental financing. This conceptual index, championed by institutions like the Finance Commission and NITI Aayog, provides a nuanced perspective on governmental financial prudence, balancing constitutional mandates with contemporary economic challenges such as off-budget borrowings and populist pressures within India's complex federal structure.
Economic Survey Chapter -2 : India's Monetary and Financial Sector Developments
Explore Economic Survey Chapter 2 on India's monetary and financial sector developments, crucial for UPSC. Understand RBI's policy, banking health, and financial inclusion.
Scaling Trade Receivables Discounting System (TReDS) For Fostering MSME-led Growth
Published on: 10 March, 2026 The Union Budget 2026–27 proposed major reforms to expand the Trade Receivables Discounting System (TReDS), including mandatory use by CPSEs, credit guarantees through CGTMSE, and integration with GeM to improve MSME liquidity.
Securities and Exchange Board of India (SEBI) on Market Manipulators
Context The Securities and Exchange Board of India (SEBI) will enhance surveillance and enforcement on market manipulators and cyber fraudsters through technology and use Artificial Intelligence (AI). Securities and Exchange Board of India (SEBI) It is the regulatory authority for the securities and capital markets in India. It was established in 1988 and given statutory powers through the SEBI Act of 1992.
Will leverage tech to crack down on market manipulators, says SEBI chief
Source: The Hindu(Page3) | Syllabus: GS3(Economy/Science and Tech)
RBI and Cooperative Banks: A Regulatory Dilemma
Published on: 09 February, 2026 Recently, the Reserve Bank of India (RBI) released a discussion paper seeking public comments on issuing new licences for cooperative banks.
RBI and Cooperative Banks: A Regulatory Dilemma
Published on: 09 February, 2026 Recently, the Reserve Bank of India (RBI) released a discussion paper seeking public comments on issuing new licences for cooperative banks.
16th Finance Commission: Key Recommendations and Implications
Published on: 03 February, 2026 Recently, the Report of the 16th Finance Commission, Chaired by Dr Arvind Panagariya, was tabled in Parliament for the five-year period between 2026-27 and 2030-31.
India & Global Stock Market Surge
Context India’s Nifty50 and Sensex indices have slipped about 1%, underperforming nearly every major global benchmark, while markets in South Korea, Japan, China, and the US have surged in recent months, rising between 2% and 21%. About the India’s Stock Market It operates under a robust and transparent regulatory framework overseen by the Securities and Exchange Board of India (SEBI). It comprises two major exchanges: Bombay Stock Exchange (BSE): Established in 1875, the BSE is Asia’s oldest st
RBI Proposes Reopening Licensing Window for Urban Co-operative Banks
Context Recently, the Reserve Bank of India (RBI) has proposed reopening the licensing window for Urban Co-operative Banks (UCBs) after two decades of halt. About the Urban Co-operative Banks (UCBs) They are co-operative societies that engage in banking activities, including accepting deposits and lending money, mainly to members of the co-operative and the general public within urban and semi-urban areas. UCBs are member-owned, operating on the principle of ‘one member, one vote’, regardless of
CAG Flags States' Fiscal Stress
Context According to the Comptroller and Auditor General of India (CAG), India’s states began FY24 with robust revenue inflows but closed the year facing increasing fiscal strain. Major Findings Total revenue receipts of states were at ₹37.93 lakh crore in FY24. States’ own tax revenue formed the largest component at about 50%, followed by the share in Union taxes at nearly 30%, grants-in-aid at around 12% and non-tax revenue at just over 8%.
RBI Financial Stability Report
Context The Reserve Bank of India’s December 2025 Financial Stability Report (FSR) assesses systemic risks to India’s financial sector and evaluates the resilience of banks amid domestic strength and global uncertainties. Key highlights of the report Growth outlook remains positive: The RBI noted that real GDP growth surprised on the upside in the first two quarters of FY 2025-26, registering 7.8% in Q1 and 8.2% in Q2. Growth was supported by strong private consumption and public investment.
Banking Fraud Amount Jumps 30% in April–September 2025
Context The RBI’s Trend and Progress of Banking in India 2024–25 shows that even as the incidence of banking frauds has declined, the value of losses has increased significantly, pointing to deep-seated structural and supervisory weaknesses in the banking system. Key Findings from the RBI Report Nature of Frauds: During 2024-25, Card and internet frauds accounted for 66.8% of total cases, highlighting persistent vulnerabilities in digital banking. In terms of amount, the share of advances-relate
RBI Board Approves Risk-Based Deposit Insurance Framework for Banks
Context The Central Board of Directors of the Reserve Bank of India (RBI) approved a risk-based deposit insurance framework for banks at its 620th meeting, held in Hyderabad. What is the Deposit Insurance Framework? Deposit insurance is a mechanism to protect bank depositors against the risk of bank failure.
Introduction of Securities Markets Code Bill 2025 in Lok Sabha
Context The Union Finance Minister introduced the Securities Markets Code Bill 2025 in the Lok Sabha. About The Bill proposes to consolidate the; Securities Contracts (Regulation) Act, 1956, Securities and Exchange Board of India (SEBI) Act, 1992, and Read More
Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill
Published on: 19th December, 2025 The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 allows 100% Foreign Direct Investment (FDI) in the insurance sector, marking a major liberalisation reform.
Push for Public Sector Bank Reforms
Context The Union Budget 2026–27 is expected to unveil a policy direction on the next phase of public sector bank (PSB) reforms based on two parallel tracks—Consolidation 2.0 and calibrated dilution of government ownership. What are the Reforms? Consolidation 2.0: The government is considering merging the five smallest PSBs with mid-sized banks with objectives to; To create banks with sufficient scale, balance sheet strength, and market presence.
Amendment of Insurance Laws Bill, 2025
Context The Union Cabinet approved the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025. About The Bill seeks to revamp India’s insurance framework, proposing changes to the: Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the IRDAI Act, 1999. Aim: Modernisation, wider coverage and stronger regulatory oversight.