Finance Current Affairs for RBI Grade B | RBI Grade B Classes | RBI Preparation 2025 | Madhav Sir

About this Video

• Video Title: Finance Current Affairs for RBI Grade B | RBI Grade B Classes | RBI Preparation 2025 | Madhav Sir
• Channel: Supercoaching Regulatory Bodies by Testbook
• Speakers: Madhav Sir
• Duration: 01:26:10

Introduction

This video covers finance current affairs for the RBI Grade B exam in 2025. Madhav Sir reviews previous sessions' material, solves related questions, and then delves into important financial news from May 20th and 21st, 2025, focusing on RBI directives and other high-probability exam topics. He emphasizes the relevance of the discussed topics for both Phase 1 and Phase 2 of the exam.

Key Takeaways

• RBI's Digital Lending Guidelines (November 1st, 2025): These guidelines mandate transparency in loan offers (matching and unmatching borrower requests), consistent lending approaches for similar borrowers, and clear disclosure of loan terms (amount, tenure, interest rate, repayment obligations, penalties). Lending Service Providers (LSPs) must be unbiased.
• Regulated Entities and LSPs: Regulated entities must conduct due diligence on LSPs but remain liable for LSP actions after a formal contract is signed. Periodic reviews of LSP conduct are mandatory. LSPs cannot have complete control over borrower funds.
• Digital Loan Disbursement and Payment: LSPs are prohibited from collecting repayments directly into their accounts. Repayments must go to the regulated entity or the borrower's bank account.
• Grievance Redressal Guidelines: Regulated entities and LSPs must appoint nodal officers. Borrowers must be informed of recovery agent identities. Complaints must be resolved within 7 days, and digital complaint logging is mandatory.
• Borrower Consent: Explicit borrower consent is required for accessing contact lists for marketing, using cameras for KYC, using telephony logs for analytics, and sharing data with third parties.
• Digital Lending Guarantee Coverage: The maximum cap on digital lending guarantee coverage a regulated entity can accept is 5% of the disbursed loan portfolio.
• Digital Lending Application Reporting: All digital lending applications must be reported to the RBI through the CMS portal by June 15th, 2025. Reporting implies informing the RBI; it does not constitute RBI endorsement.
• SEBI's Mandate on Electronic Book Provider Platform (EBP): All private placements of debt securities (including non-convertible redeemable preference shares and municipal bonds) valued at ₹20 crore or more in a financial year must use the EBP platform. Previously, the threshold was ₹50 crore. The use of EBP is voluntary for securitized debt instruments.
• Green Shoe Option: This allows underwriters to sell more shares than initially planned to stabilize share prices during periods of high demand. In the context of EBP, the green shoe option can be up to five times the base issue size.
• Anchor Investors: Institutional investors who commit to purchasing a significant portion of shares in an IPO before it opens to the public, boosting credibility and stabilizing prices. The new SEBI regulations mandate electronic confirmation of participation one day prior to the issue.