Banking & Economy Current Affairs 2026 for Government Exams

The Securities and Exchange Board of India (SEBI) and the European Securities and Markets Authority (ESMA) signed a Memorandum of Understanding to deepen cooperation and information exchange on Central Counterparties (CCPs) regulated by SEBI. Signed by SEBI Chairman Tuhin Kanta Pandey and ESMA Chair Verena Ross, it replaces their earlier 2017 agreement. The MoU lets SEBI-supervised Indian CCPs re-apply for ESMA recognition under Article 25 of the European Market Infrastructure Regulation (EMIR), and allows ESMA to rely on SEBI's supervision of those clearing houses. A CCP interposes itself between buyer and seller to manage counterparty risk and settle trades, making the pact important for India–EU cross-border clearing.

SEBI granted a Category-I merchant banking licence to Zerodha Corporate Advisors, the investment banking arm of the Bengaluru broker Zerodha, which applied on 27 April 2026 and was registered on 1 September 2026 as India's 249th registered merchant banker. The firm will begin with equity capital markets — IPOs, FPOs and advisory for issuers and investors — extending Zerodha's low-cost, no-hard-selling model into investment banking, with operations expected within months. Category-I merchant bankers may manage main-board public issues and undertake underwriting, and must hold a minimum net worth of Rs 50 crore (raised from Rs 5 crore), capped at 20 times liquid net worth; Category-II bankers need Rs 10 crore.

The Securities and Exchange Board of India (SEBI) introduced an IT Resilience Index (ITRI) framework in August 2026 to score the robustness of critical technology systems at Market Infrastructure Institutions (MIIs) — stock exchanges, depositories and clearing corporations. The index rates MIIs on nine parameters, including availability, security, integrity, governance, business continuity, scalability and incident handling. Availability and security carry the highest weight at 20% each, five parameters get 10% each and scalability 5%. Early Warning Systems and real-time monitoring of service delivery must be operational by 28 February 2027, with the first ITRI computation covering the half-year ending 31 March 2027.

Razorpay, in partnership with IndusInd Bank, launched 'RAY', a conversational Artificial Intelligence account manager on WhatsApp for businesses. RAY lets MSMEs manage payments, analyse transactions, generate payment links, issue refunds and resolve queries through simple chat messages, executing actions directly without a dashboard while tracking payment health and pushing alerts, insights and recommendations. Bajaj Finserv is among the first live users, and the platform has already recorded over 20,000 conversations, signalling a shift towards AI-led, real-time business support in Indian fintech. Razorpay, founded in 2014 by Shashank Kumar and Harshil Mathur, is headquartered in Bengaluru, Karnataka.

Axis Bank and travel fintech Scapia launched the co-branded 'Scapia Axis Bank Credit Card' aimed at digitally native Indian travellers. It is issued on both the Mastercard and RuPay networks and carries zero joining and annual fees, zero forex mark-up on international transactions and a Smart Forex feature for overseas spending. Cardholders get unlimited domestic airport lounge access on spending Rs 20,000 in the preceding month and a 1% fuel surcharge waiver. Rewards run at 10% on the Mastercard variant and 5% on the RuPay variant for eligible spends of Rs 500 or more, and 20% on bookings made through the Scapia app.

The Japan Credit Rating Agency (JCR) upgraded India's Long-Term Foreign Currency and Local Currency Issuer Ratings by one notch from 'BBB+' to 'A-', retaining a Stable Outlook, and also raised India's country ceiling by one notch to 'A'. JCR cited India's solid economic growth, the effectiveness of economic policies in strengthening growth foundations, and improved soundness of the financial system. The upgrade continues a run of positive sovereign actions on India and sits alongside the record foreign exchange reserves of $740.803 billion reported for the week ended 28 August 2026, both pointing to strengthening external buffers and investor confidence.

ICICI Bank Limited acquired an additional 2% stake in ICICI Prudential Life Insurance for Rs 1,470 crore in September 2026 through the stock exchange mechanism, buying 2,90,15,693 equity shares across multiple tranches. The purchase raised the bank's holding from 50.84% to 52.8%. The transaction was necessitated by regulatory requirements: following UK-based Prudential's proposed 75% acquisition of Bharti Life Insurance, Prudential must cut its stake in ICICI Prudential Life to below 10%. ICICI Prudential Life, headquartered in Mumbai, is a joint venture between ICICI Bank and Prudential Corporation Holdings Limited; it began operations in December 2000 and is chaired by Sandeep Batra.

Tata Consultancy Services (TCS) announced in August 2026 the acquisition of MHP Management- und IT-Beratung GmbH, the management and IT consulting subsidiary of Germany's Porsche AG, at an enterprise value of EUR 320 million (about Rs 3,575 crore). TCS will pick up a 100% stake within three to four months, deepening its presence across Germany, Romania, the UK, the USA and Mexico. The deal sits inside a wider five-year strategic partnership worth EUR 1.25 billion covering AI, digital transformation and software-defined mobility, and includes an AI Mobility Centre of Excellence for Porsche AG. Closure requires EU merger-control, EU Foreign Subsidies Regulation, Romanian FDI and German regulatory clearances.

India's foreign exchange reserves rose by $11.475 billion to an all-time high of $740.803 billion for the week ended 28 August 2026, according to RBI data, up from $729.33 billion a week earlier. This was the ninth consecutive weekly increase, adding nearly $75 billion over that stretch. Foreign Currency Assets, the largest component, rose $9.337 billion to $600.67 billion, while gold reserves gained $2.191 billion to $116.409 billion. The surge was driven largely by inflows under RBI's special dollar-deposit mobilisation programmes, which drew more than $136 billion between 5 June and 31 August 2026.

NABARD signed a Memorandum of Understanding with the India Meteorological Department (IMD) to integrate agro-meteorological data into the Data in Climate Resilient Agriculture (DiCRA) platform, an open-source digital platform supported by NABARD and the UNDP. IMD will supply weather forecasts, advisories, in-situ observations and alerts through a dedicated Weather Portal inside DiCRA, delivered via web portals, mobile interfaces and APIs for last-mile access. The MoU was signed by Sanjeev D. Rohilla (NABARD) and Bikram Singh (IMD) in the presence of NABARD Chairman Shaji K.V. and IMD Director General Mrutyunjay Mohapatra. It aims to sharpen climate risk assessment, crop decision-making and rural financing.

PhonePe, a Third Party Application Provider, launched UPI 123Pay, letting feature-phone users make Unified Payments Interface transactions without internet access through an SMS-based architecture that works even on low-bandwidth or 2G networks. Built on the National Payments Corporation of India (NPCI) framework, it supports P2P and P2M payments by mobile number or UPI ID, QR-code scanning on supported devices, and access to bank balance and transaction history. The service comes pre-installed on select Nokia, HMD, Lava International and itel Mobile handsets and is backed by an AI-powered voice helpline in English and 12 Indian languages, targeting financial inclusion beyond the smartphone economy.

The National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) released quarterly GDP estimates for Q1 (April-June) of FY27, placing real GDP growth at 7.8%, up from 6.9% in Q1 FY26. GDP at constant (2022-23) prices stood at Rs 81.36 lakh crore, while GDP at current prices reached Rs 88.27 lakh crore, a nominal growth of 10.3%. It is the first release on the revised National Accounts series with base year 2022-23. Real Gross Value Added grew 8.2%. On the back of the print, SBI Research raised its FY27 growth forecast from 6.6% to 7.3%.

The Ministry of Statistics and Programme Implementation (MoSPI) released National Accounts Statistics 2026 on 31 August 2026, carrying 60 statements built on Final Estimates for FY23 and FY24, First Revised Estimates for FY25 and revised indicators for FY26. Real GDP growth was revised to 7.3% for FY24 (from 7.2%), 7.2% for FY25 (from 7.1%) and 7.8% for FY26 (from 7.7%), while nominal growth for FY25 and FY26 was cut to 9.4% and 8.6%. The publication uses the new 2022-23 base year series introduced on 27 February 2026, replacing 2011-12. MoSPI separately reported 7.8% real and 10.3% nominal GDP growth in Q1 of FY 2026-27.

The National Commodity & Derivatives Exchange (NCDEX) launched RAINCHNNAI, a cash-settled weather futures contract tied to rainfall in Chennai's Northeast monsoon. Settlement uses official India Meteorological Department data from the Meenambakkam and Nungambakkam stations. Trading initially covers September, October, November and December expiries, uses a Cumulative Deviation Rainfall (CDR) model measuring deviation from the Long Period Average, and carries a tick size of 1 millimetre with a maximum order lot size of 50 lots. Chennai draws nearly 70% of its annual rainfall from the Northeast monsoon, which runs October to December. RAINCHNNAI complements RAINMUMBAI, launched in May 2026, extending weather-risk hedging across India's June-to-December monsoon cycle.

The Reserve Bank of India relaxed access norms for its dollar-rupee swap facility under Foreign Currency Non-Resident (Bank) — FCNR(B) deposits, allowing banks to undertake swaps above USD 100 million on any day instead of only in the designated weekly window. Smaller transactions stay on the weekly schedule. The change eases delays in transferring large foreign-currency inflows, cuts hedging costs and relieves overnight swap-market pressure, supporting rupee stability and forex reserves. The facility has drawn USD 72.85 billion in inflows, of which FCNR(B) deposits contributed USD 65.40 billion, followed by overseas borrowings at USD 4.86 billion and ECBs at USD 2.59 billion.

The RBI invited comments on draft norms barring lenders from disabling a borrower's mobile device, requiring advance notice before in-person visits, and mandating IIBF certification for recovery agents.

The RBI imposed monetary penalties on Union Bank of India, Central Bank of India, Bank of India and fintech firm Pine Labs for lapses in crediting customer accounts, priority-sector lending and KYC norms.

From 1 April 2026, the RBI made two-factor authentication (SMS OTP or biometric verification) compulsory for all digital payment transactions, strengthening payment security.

From 1 April 2026, the RBI removed all foreclosure and prepayment penalties on floating-rate loans to individual borrowers, a major consumer-friendly reform.

The RBI proposed compensating customers for small-value fraudulent electronic transactions - 85% of net loss or Rs 25,000 (whichever lower), once per lifetime - with banks paying within five days and bearing the burden of proof.

The RBI informed regulated entities of Financial Action Task Force (FATF) updates concerning jurisdictions with strategic deficiencies in anti-money-laundering and counter-terror-financing frameworks.

The Pradhan Mantri Jan Dhan Yojana (PMJDY) completed 12 years on 28 August 2026, standing as the world's largest financial inclusion programme. Launched on 28 August 2014 as the National Mission for Financial Inclusion under the slogan 'Mera Khata – Bhagya Vidhata', it is implemented by the Department of Financial Services, Ministry of Finance. As of 19 August 2026, 59.09 crore PMJDY accounts held total deposits of Rs 3.17 lakh crore. Women hold 55.7% of accounts — about 32.92 crore. The milestone falls a day after PM SVANidhi completed one year of its restructured phase, now extended to 31 March 2030.

The Reserve Bank of India (RBI) announced that India's Financial Inclusion (FI) Index rose to 70.0 in March 2026, up from 67.0 in March 2025, reflecting deeper access to formal financial services. The FI-Index captures three weighted parameters — Access (35%), Usage (45%) and Quality (20%) — on a scale of 0 to 100, where 0 is complete exclusion and 100 is full inclusion.

Dilip Asbe, MD & CEO of NPCI, was appointed to the Supervisory Board of SWIFT as the body transitions from a single-tier board to a two-tier governance structure (Supervisory Board + Management Board). The Supervisory Board will have 12 members (expandable to 15) — eight shareholder-affiliated and four independent directors — strengthening India's voice in global financial messaging.

NPCI introduced a UPI safety feature that displays the recipient's verified bank-registered name whenever users scan a QR code or enter a mobile number, replacing custom names and aliases to curb fraud.

Union Home and Cooperation Minister Amit Shah launched Bharat Taxi in Gujarat, India's first cooperative ride-hailing platform, designed to give drivers better earnings and ownership than commercial aggregators.

NPCI data showed UPI transactions reached a record 23.2 billion in volume worth Rs 29.90 lakh crore in May 2026 - up 24% in volume year-on-year - aided by summer travel and IPL spending.

The RBI's draft proposes barring PPIs for cross-border transactions, reducing the monthly cash-loading limit for full-KYC PPIs to Rs 10,000, and capping person-to-person transfers at Rs 25,000/month.

In April 2026, bank lending rates rose modestly on robust credit demand even as the repo rate stayed unchanged, while deposit rates continued to soften.

Effective April 2026, BSBD (zero-balance) accounts offer free cash deposits, free ATM withdrawals and free passbooks/statements, deepening the financial-inclusion push.

UPI processed 22.35 billion transactions in April 2026 (up 25% year-on-year) worth Rs 29.03 lakh crore, reflecting continued expansion of India's digital-payments ecosystem.

Under RBI norms effective April 2026, banks may accept silver ornaments and coins as collateral for loans, expanding beyond the earlier gold-only framework for secured lending.

The RBI's revamped digital-payment security framework was finalised for rollout from 1 April 2026, mandating stronger risk-based authentication and additional verification for high-risk transactions.

The RBI observed Financial Literacy Week 2026 in March with the theme 'KYC - Your first step to safe banking', aimed at strengthening awareness of safe banking and KYC practices.

The government launched a Central Bank Digital Currency (CBDC)-based Public Distribution System in Gujarat to enable secure, transparent and faster food-grain distribution to beneficiaries.

The RBI introduced measures for cooperative banks - higher housing-loan limits, expanded branch openings, improved deposit security and priority-sector lending support via NCDC - under the 'Sahakar Sarthi' push.

Effective 15 December, the RBI approved amalgamating four co-operative banks into two - Amod Nagric into Bhuj Mercantile Co-op Bank, and Amarnath into Kalupur Commercial Co-op Bank.

The RBI announced relief for exporters facing global headwinds, including easing debt-repayment burdens, extending credit periods and lengthening the timeframe for realising and repatriating export proceeds.

The National Bank for Agriculture and Rural Development (NABARD) and the National Bank for Financing Infrastructure and Development (NaBFID) signed a Memorandum of Understanding in Mumbai on 26 August 2026 to jointly finance infrastructure with rural linkages. The pact covers irrigation, water and sanitation, post-harvest storage, cold chains, terminal markets, rural roads, bridges, warehousing and compressed biogas, including public-private partnership projects and agricultural value chains. The two institutions will co-operate on project identification, appraisal, credit structuring, debt syndication, joint monitoring and capacity building - deepening the rural infrastructure financing push seen in recent BharatNet and PMMSY cluster agreements.

Punjab National Bank (PNB), India's second-largest public sector bank, signed an MoU with the Indian Army in New Delhi to issue two co-branded credit cards - the 'PNB LUXURA Metal Credit Card' for Army officers and the 'PNB Parakram Credit Card' for Junior Commissioned Officers (JCOs) and other ranks. Benefits include 3% cashback at Canteen Stores Department (CSD) outlets, complimentary domestic and international airport lounge access and zero forex mark-up. The Parakram card is made from biodegradable material. It was signed by Major General VK Purohit and PNB General Manager (Credit Cards) Deepak Kumar, extending the defence salary-package tie-ups banks are competing for across the services.

The Petroleum and Natural Gas Regulatory Board (PNGRB) on 21 August 2026 authorised 1,800 km of new LPG pipelines entailing about ₹7,000 crore of capital investment, naming GAIL (India) Limited as the authorised entity. The network comprises three lines — Cherlapally-Nagpur (556 km), Jhansi-Sitarganj (611 km) and Shikrapur-Goa/Hubli (633 km) — crossing six states: Telangana, Maharashtra, Uttar Pradesh, Uttarakhand, Karnataka and Goa. India's common-carrier LPG pipeline network will expand from about 7,700 km to roughly 9,500 km, a rise of nearly 23.5%. Moving LPG by pipeline cuts road-tanker dependence, logistics costs, congestion, accident risk and transport emissions.

Wizzmoni Financial Services Ltd (formerly Unimoni), an Indian NBFC, partnered Oman Air to launch the co-branded 'Wizz Voyager' Multi-Currency Card, an AI-powered prepaid forex travel card supporting over 35 currencies. Aimed at students, professionals and tourists, it bundles payments, rewards and travel benefits on a single platform with real-time tracking and smart spending controls through a mobile app. The card is issued by Wizzmoni, an RBI-authorised Authorised Dealer Category-II (AD-II) entity, in association with Visa Inc. AD-II licences permit non-bank entities to handle specified foreign exchange business such as forex cards and remittances, without full banking powers.

The GST Appellate Tribunal (GSTAT) received far fewer appeals than anticipated after the 31 July 2026 deadline for filing time-barred cases. GSTAT is a statutory quasi-judicial body set up under the Central Goods and Services Tax (CGST) Act, 2017, and functions as the second appellate authority for disputes between taxpayers and tax authorities; the first appeal lies with a Commissioner (Appeals)-level officer. Its e-filing portal became operational in 2025. After consultations with the Department of Revenue and the Ministry of Finance, GSTAT introduced a token system letting businesses whose cases were getting time-barred on 31 July generate a token and then file within 60 days.

The Central Board of Direct Taxes (CBDT) notified the Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS), 2026 under Chapter IV of the Finance Act, 2026, opening a voluntary online disclosure window from 16 August to 31 December 2026 for small taxpayers — including former study-abroad students, young professionals, ESOP-holding multinational employees, and returned non-residents — to declare previously unreported foreign assets or income via Form 1. Category 1 (undisclosed assets/income up to ₹1 crore) attracts a 30% tax plus 30% penalty (60% effective levy); Category 2 (assets up to ₹5 crore, acquired from taxed income or during non-resident status) can be regularised with a flat fee of ₹1 lakh. Valid declarants get immunity from further tax demand, penalty and prosecution under the Black Money Act, 2015; fair market value is assessed as of 31 March 2026.

Gross GST collection for May 2026 stood at Rs 1,94,184 crore, a 3.2% year-on-year rise, moderating from the record Rs 2,42,702 crore in April 2026.

Gross GST revenue for April 2026 rose 8.7% year-on-year to Rs 2,42,702 crore - the highest-ever monthly collection - with GST on imports up 25.8%.

Net GST revenue in March 2026 stood at about Rs 1.78 lakh crore, up 8.2% year-on-year; cumulative net GST collections for FY26 reached about Rs 19.35 lakh crore.

Securities Transaction Tax rates on Futures & Options were increased, and a tax holiday until 2047 was announced for foreign companies providing global cloud services using Indian data centres.

Personal income-tax slabs stayed unchanged under both regimes; income up to Rs 12 lakh (Rs 12.75 lakh for salaried, with Rs 75,000 standard deduction) remains effectively tax-free in the new regime.

Gross GST collection for December 2025 was Rs 1.75 lakh crore, up 6.1% year-on-year, following the two-tier 'GST 2.0' rate revamp effective 22 September 2025.

IDFC First Bank completed its maiden USD 500 million bond issuance through its IFSC Banking Unit (IBU) at GIFT City, Gandhinagar, marking the private lender's debut in global debt capital markets. The three-year notes, due 2029, carry a fixed coupon of 5.625% and were placed with investors outside the United States in Regulation S format. S&P Global Ratings assigned an investment-grade 'BBB-' rating with a Stable Outlook, and marquee investors including BlackRock, Capital Group and AllianceBernstein participated. Interest will be paid semi-annually on 25 February and 25 August, with the first payment due 25 February 2027.

The Government of India and the Asian Development Bank (ADB) signed a USD 230 million loan agreement for the Chennai Climate-Resilient Water Security and Sewerage Project. It will lay over 170 km of water supply and sewer pipes, upgrade seven water pumping stations and 38 sewer pumping stations, and strengthen utility operations through performance-based contracts. Chennai becomes the first Indian city to adopt a comprehensive ring-main system — a closed-loop network that balances water pressure across service areas. About 4.5 million residents are expected to benefit, alongside improved climate resilience and financial sustainability of the urban water utility.

The Parliamentary Standing Committee on Health and Family Welfare's 176th Report, presented in the Rajya Sabha on 7 August 2026, recommends that the gap between a medicine or device's landing price and its Maximum Retail Price (MRP) should not exceed 20%, citing Tenecteplase (landing cost ~₹18,000 vs MRP ₹50,000) as an example. It recommended quality benchmarks like ISO 13485 and centralised, tender-based hospital procurement, pointing to India's 2017 coronary stent price cap — which cut prices to ~₹25,000-30,000 and saved consumers an estimated ₹13,353 crore annually — as a precedent.

The audited financial statements of the PM CARES Fund for FY 2023–24 and FY 2024–25 were made public, showing the trust's closing balance at ₹8,452.07 crore as of 31 March 2025 — up from ₹7,173.03 crore a year earlier. PM CARES (Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund) is a public charitable trust set up in March 2020 during the COVID-19 pandemic, distinct from the Prime Minister's National Relief Fund. Fixed deposits accounted for about 93% of the balance (₹7,846.65 crore), with ₹605.41 crore in savings accounts; interest income of ₹469.38 crore from FDs was the fund's largest income source in FY 2024-25. Voluntary domestic donations fell 30% to ₹479.05 crore, and foreign contributions dropped 18% to ₹92.83 lakh. Expenditure during the year was just ₹87.85 lakh (0.01% of the balance), almost entirely (₹87.84 lakh) going to the PM CARES for Children Scheme. The accounts were signed off in Delhi on 6 August 2026 and audited by Mumbai-based KKC & Associates LLP on 7 August 2026.

The Unified Payments Interface (UPI) completed 10 years and now accounts for roughly 86% of India''s digital transactions. UPI was launched by the National Payments Corporation of India (NPCI) in 2016 and has become the backbone of India''s real-time retail payments.

The Reserve Bank of India''s Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, unanimously held the repo rate at 5.25% at its 62nd meeting (3-5 August 2026), retaining a neutral stance. The SDF stayed at 5.00%, and the MSF and Bank Rate at 5.50%. The RBI raised its FY27 GDP growth forecast to 6.7% and lowered inflation projection to 5.0%, citing food/fuel-led price pressure rather than demand. The next MPC meeting is scheduled for 5-7 October 2026.

On 15 August 2026, the Department of Atomic Energy (DAE) issued draft rules to operationalise the SHANTI Act — the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act — moving India closer to permitting private and foreign participation in the civil nuclear power sector. The Act received Presidential assent on 20 December 2025, consolidating and repealing earlier nuclear laws into a single framework. SHANTI unlocks private participation across power generation, reactor supply and operation, fuel mining, and R&D, ending decades of exclusive state control. It supports the Independence Day pledge of 100 GW nuclear by 2047, with five new reactors targeted to be operational within 6-7 years.

IndusInd Bank and dining platform EazyDiner jointly launched the 'EazyDiner IndusInd Bank Platinum RuPay Credit Card', a lifetime-free co-branded credit card offering dining discounts, entertainment benefits and UPI payment functionality. Issued on the RuPay network, the card can be linked with UPI applications to make payments via QR codes while earning rewards. It carries no joining or annual fee, and offers annual benefits worth up to Rs 21,495, including dining savings up to Rs 18,000, a monthly BookMyShow buy-one-get-one movie ticket and a 3-month EazyDiner Prime membership. IndusInd Bank was established in 1994 and is headquartered in Mumbai.

The Reserve Bank of India (RBI) released its 101st Survey of Professional Forecasters (SPF), which projected Financial Year 2026-27 (FY27) real GDP growth at 6.6%, up from the 6.5% estimated in the 100th SPF (May 2026). The survey projected that India will grow at 7.0% in FY28. SPF panellists placed GDP growth forecasts in the range of 6.0-7.2% for FY27 and 6.5-7.8% for FY28. Real GDP growth is projected at 6.8% (year-on-year) in Q1 FY27, expected to remain within 6.4%-7.0% over the subsequent four quarters. The SPF captures the views of external professional forecasters and is distinct from the RBI's own Monetary Policy Committee (MPC) projections.

The RBI issued nine circulars on 6 August 2026 creating a unified framework — the Amendment Directions — that standardises loan-recovery practices across all classes of regulated entities (banks, NBFCs, etc.) by amending the Responsible Business Conduct framework. The rules take effect from 1 January 2027 (deferred from 1 October 2026 to allow transition). Key protections: recovery-related phone calls and physical visits are permitted only between 8:00 AM and 7:00 PM; every recovery agent must hold a current training certificate from an RBI-recognised programme before contacting borrowers; and lenders must frame a detailed recovery policy including compensation to borrowers for losses from non-compliant recovery.

The Reserve Bank of India (RBI) concluded the 3rd bi-monthly Monetary Policy Committee (MPC) meeting of FY2026-27 (held 3-5 August 2026) and kept the repo rate unchanged at 5.25%, retaining a neutral stance. The decision was unanimous. Governor Sanjay Malhotra said the MPC sought greater clarity on the inflation outlook before acting, noting the recent rise in headline inflation was driven mainly by food and fuel with little sign of generalisation. The MPC raised its FY27 real GDP growth forecast to 6.7% (from 6.6%) and lowered its CPI inflation projection to 5.0% (from 5.1%). The next MPC meeting is scheduled for 5-7 October 2026.

Standard Chartered received in-principle approval from the IFSCA on 6 August 2026 to distribute capital-market and wealth-management products from GIFT City. The approval lets it offer cross-border wealth and capital-market products to international clients, reinforcing India''s push to make GIFT City a global financial hub.

The Reserve Bank of India (RBI) concluded its 62nd meeting — the 3rd bi-monthly Monetary Policy Committee (MPC) meeting of FY2026-27 — held 3-5 August 2026 under Governor Sanjay Malhotra. The MPC voted unanimously (6-0) to keep the repo rate unchanged at 5.25% and retained the neutral stance (fourth consecutive status-quo policy). The SDF rate stays at 5.00% and the MSF rate and Bank Rate at 5.50%. The RBI raised its FY27 real GDP growth forecast to 6.7% (from 6.6%) and cut CPI inflation projection to 5.0% (from 5.1%) on softer crude prices. It also released draft guidelines for on-tap licensing of Urban Co-operative Banks (UCBs).

SEBI launched the GARUDA (Green channel AIF Rollout Upon Document Acknowledgement) mechanism to simplify and speed up the launch of Alternative Investment Fund (AIF) schemes through a streamlined green-channel filing that acts on document acknowledgement. Separately, SEBI extended the compliance deadline for regulated entities to complete the digital accessibility audit of their platforms to 31 October 2026, ensuring equal access for persons with disabilities.

The Government of India opened an Offer for Sale (OFS) in Life Insurance Corporation of India (LIC) for non-retail investors on August 4, 2026 and for retail investors and employees on August 5. It seeks to divest up to 6.5% - a base 2.5% plus a 4% green-shoe (oversubscription) option - at a floor price of Rs 382 per share (about a 10-11% discount to the previous close). A full sale could raise nearly Rs 31,000 crore and cut the government's holding from 96.5% to 90%, moving LIC toward SEBI's 10% minimum public shareholding (MPS) norm ahead of the 16 May 2027 deadline.

The Reserve Bank of India (RBI) Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, concluded its three-day meeting (August 3-5, 2026) and kept the repo rate unchanged at 5.25% for the fourth consecutive policy review, retaining a neutral stance. The SDF stays at 5.00% and the MSF and Bank Rate at 5.50%. The extended pause follows a cumulative 125 basis points of cuts delivered through 2025. The MPC retained FY27 real GDP growth at about 6.6%. Retail CPI inflation rose to 4.38% in June 2026, breaching the 4% medium-term target for the first time in 17 months, mainly on food prices, while core inflation stayed within comfort.

India's gross Goods and Services Tax (GST) collection rose 15.4% year-on-year to Rs 2.11 lakh crore in July 2026, driven by strong import revenue. Domestic GST grew 10.1% to Rs 1.45 lakh crore, while GST from imports surged 28.8% to Rs 66,511 crore. After refunds, net GST revenue rose 15.8% to Rs 1.81 lakh crore. Cumulative gross collection for April-July 2026 reached Rs 8.43 lakh crore (up 10.1%). GST was rolled out on 1 July 2017 via the 101st Constitutional Amendment Act, 2016; the GST Council (a constitutional body under Article 279A) is chaired by the Union Finance Minister, and the main tax slabs are 5%, 12%, 18% and 28%.

The Favara-UPI cross-border payment corridor between the Maldives and India became operational on 30 July 2026, connecting the Maldives Instant Payment System Favara with India's Unified Payments Interface (UPI). Customers of participating Maldivian banks can now transfer funds in real time to UPI-enabled Indian bank accounts, supporting faster remittances and digital financial cooperation. Favara is the Maldives' real-time payment system launched in 2023 by the Maldives Monetary Authority (MMA). The integration makes the Maldives the 10th country where UPI is live, after UAE, Singapore, Bhutan, Nepal, Sri Lanka, Mauritius, France, Cambodia and Seychelles. UPI's global rollout is managed by NPCI International Payments Limited (NIPL).

From 1 August 2026, the upgraded Central KYC (CKYC 2.0) framework takes effect under the One Nation, One KYC vision, jointly developed by RBI, SEBI and IRDAI. It uses real-time APIs and OTP-based customer consent, allowing banks, insurers and mutual funds to verify identity instantly via mobile number or PAN, with Aadhaar-linked authentication and AI-driven fraud prevention. Other changes from 1 August 2026 include revised LPG cylinder prices, new Railway Tatkal ticket booking rules, updated banking/credit-card charges, and the ITR filing deadline for salaried employees.

In July 2026, the Insurance Regulatory and Development Authority of India (IRDAI) approved the acquisition of Magma General Insurance (from Adar Poonawalla-owned Sanoti Properties) by Patanjali Ayurved and the DS Group for Rs 4,500 crore. Under the deal, Patanjali Ayurved acquires a 73.56% stake and DS Group 24.50%. IRDAI also approved a licence for ProTec General Insurance (a JV of the M Pallonji Group and True North's Divya Sehgal). The approval was granted under Section 6A of the Insurance Act, 1938, and is valid for three months.

In July 2026, SBI Cards and Payment Services Ltd, in partnership with Google Pay, launched a co-branded credit card, the Google Pay Flex SBI Card. Available on both RuPay and Visa networks, the RuPay variant supports UPI linkage for payments at UPI-enabled merchants. The card offers annual rewards of up to Rs 18,000 on eligible spends (1 Star = Rs 1; up to 8 Stars per Rs 500 spent), a joining/renewal fee of Rs 499, a renewal-fee waiver on annual spends of Rs 1 lakh, and EMI conversion of dues. SBI Card (launched Oct 1998) is headquartered in Gurugram, Haryana.

In July 2026, the Asian Development Bank (ADB) approved an USD 850 million loan to support the Government of India's Prime Minister Surya Ghar: Muft Bijli Yojana (PMSG-MBY) by accelerating rooftop solar adoption. This is Subprogram 2 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program, building on Subprogram 1 (approved November 2025). The financing will help India achieve its target of 30 GW cumulative rooftop solar capacity by FY27, reduce 28.8 million tonnes of CO2-equivalent emissions, and expand affordable solar access.

The Finance Ministry approved the Reserve Bank of India's (RBI) proposal, under Section 25 of the RBI Act, 1934, to issue 100 crore (1 billion) pieces each of Rs 10 and Rs 20 polymer banknotes - about 2 billion notes in total, worth roughly Rs 3,000 crore - for field trials. The approval was conveyed to Parliament by Minister of State for Finance Pankaj Chaudhary. The government clarified that paper currency is NOT being phased out; polymer notes will circulate alongside existing paper notes. Polymer (plastic) banknotes are more durable, harder to counterfeit and last significantly longer than paper. If trials succeed, the RBI will issue polymer notes in these denominations regularly.

The Government of India (GoI) approved the Reserve Bank of India (RBI) proposal to conduct field trials of one billion polymer banknotes each in the Rs 10 and Rs 20 denominations, a significant step towards evaluating more durable currency notes. Minister of State for Finance Pankaj Chaudhary informed Parliament that the proposal was approved under Section 25 of the RBI Act, 1934, following the recommendation of the RBI's Central Board, and that the trial notes are worth about Rs 3,000 crore. The RBI will conduct the trials under different climatic and usage conditions to evaluate durability, security features and public acceptance; regular issuance will begin only after successful evaluation. Polymer notes are printed on a non-fibrous, non-porous polymer substrate instead of conventional banknote paper. The government clarified that paper currency is not being phased out - polymer notes are being tested as an additional option and would circulate alongside existing paper notes.

The Government of India (GoI) approved the Reserve Bank of India (RBI) proposal to conduct field trials of one billion polymer banknotes each in the Rs 10 and Rs 20 denominations. The proposal, worth about Rs 3,000 crore, was sent by the RBI on the recommendation of its Central Board under Section 25 of the RBI Act, 1934, which deals with the design, form and material of banknotes. Polymer (plastic) banknotes are printed on a non-fibrous, non-porous polymer substrate instead of conventional cotton-based paper, making them more durable, waterproof and harder to counterfeit. The RBI will test the notes under different climatic and usage conditions for durability, security features and public acceptance; regular issuance will begin only after successful evaluation. The government clarified the polymer notes are an additional option and there is no proposal to replace existing paper notes.

The Reserve Bank of India (RBI) reported its composite Financial Inclusion Index (FI-Index) rose to 70 in March 2026, up from 67 in March 2025. The RBI also issued final Prudential Norms on Specified Non-Financial Assets (SNFA) acquired by Regulated Entities, effective 1 October 2026, barring Regulated Entities from selling an SNFA back to the defaulting borrower, its promoters or related parties — tightening resolution of distressed loans under the Resolution of Stressed Assets Directions, 2025.

The Reserve Bank of India (RBI) released the composite Financial Inclusion Index (FI-Index) for FY 2025-26, which rose to 70 in March 2026 from 67 in March 2025, indicating continued improvement in the depth and quality of financial inclusion in India. The FI-Index is a comprehensive single-value measure (on a scale of 0 to 100, where 0 denotes complete financial exclusion and 100 full inclusion) capturing access, usage and quality of financial services across banking, investments, insurance, postal and pension sectors. Prudential norms on SNFA: The RBI also issued final 'Prudential Norms on Specified Non-Financial Asset (SNFA) acquired by Regulated Entities' under the Resolution of Stressed Assets Directions, 2025, tightening the framework governing the resolution of distressed loans. The norms take effect from 1 October 2026. Under the revised norms, Regulated Entities (REs) are prohibited from selling or transferring SNFAs back to the defaulting borrower, its promoters, related parties, or entities acting on the borrower's behalf — closing a route by which defaulters could reacquire assets surrendered in resolution.

Canada-based Fairfax Financial Holdings Limited emerged as the preferred bidder to acquire a 60.72% stake in IDBI Bank in July 2026, a significant step in the government's long-pending strategic disinvestment of the lender. The Government of India and Life Insurance Corporation (LIC) together are divesting the 60.72% stake. Fairfax is led by India-born billionaire Prem Watsa.

The India-UK Comprehensive Economic and Trade Agreement (CETA), along with the Agreement on Social Security (Double Contribution Convention), came into force on 15 July 2026 — India's most ambitious bilateral trade pact to date. The UK scraps duties on 96.8% of tariff lines (covering 97.7% of trade value) immediately; tariffs fall to zero on textiles, leather, marine products and engineering goods. India removes duties at once on 64.1% of tariff lines and phases out another ~21%, while shielding sensitive sectors (dairy, cereals, edible oils, apples). It boosts services trade, professional mobility and social-security protection for Indian professionals.

The National Statistics Office (NSO) under MoSPI launched the first trial Index of Services Production (ISP), India's first official monthly indicator of services-sector output, complementing the Index of Industrial Production (IIP). It is India's first high-frequency indicator dedicated to measuring services output, tracking short-term changes in the volume of output of the formal services sector against a base year. The services sector is India's largest GDP contributor, providing over 50% of Gross Value Added (GVA) since 2013-14.

The <b>Ministry of Commerce and Industry (MoC&I)</b> released trade data for <b>Q1 (April-June) of FY2026-27</b>. India's total exports in Q1 FY27 stood at <b>USD 232.73 billion</b> and total imports at <b>USD 270.15 billion</b>. Merchandise exports were <b>USD 129.32 billion</b> (up from USD 111.57 bn in Q1 FY26) and services exports were estimated at <b>USD 103.41 billion</b>. Merchandise imports stood at USD 216.18 billion and service imports at USD 53.97 billion.

The Reserve Bank of India (RBI) approved the appointment of Rajiv Kumar as the part-time chairman of HDFC Bank for a period of three years, effective 15 July 2026. Earlier in July 2026, the RBI appointed Ravi Shankar as an Executive Director (effective 1 July 2026) to head the Department of Statistics and Information Management (DSIM).

On 15 July 2026, the Union Cabinet chaired by PM Narendra Modi cleared seven major decisions with a combined outlay of Rs 2,19,353 crore. Key approvals: Semicon 2.0 (outlay Rs 1,27,500 crore), the second phase of the India Semiconductor Mission; the Mobile Phone Manufacturing Scheme (MPMS) with Rs 62,500 crore over 5 years; and the National Investment Policy for Urea-2026 (NIPU-2026) to boost indigenous urea capacity. Rail projects cleared include doubling of the Paradeep-Haridaspur line (Rs 2,542 crore) and a fourth line between Dangoaposi-Rajkharsawan (Rs 1,365 crore), plus a 6-lane Greenfield elevated corridor linking NH-19 and the Varanasi Ring Road (UP) on Hybrid Annuity Model.

India Post recorded its highest-ever first-quarter revenue of over ₹4,000 crore (Q1 FY 2026-27), registering 22% year-on-year growth, as announced by Union Communications Minister Jyotiraditya M. Scindia. The milestone reflects India Post's push into parcel, logistics and citizen-centric financial services.

Bank of Maharashtra (BoM) launched "FinSpark''26", a national-level cybersecurity hackathon under the theme "Securing the Future of Banking", with the Indian Banks' Association (IBA), the Department of Financial Services (DFS) and COEP Technological University. It offers a prize pool of over ₹10 lakh; the top 20 teams present at the Grand Finale at COEP, Pune, and winners demonstrate at Global FinTech Fest 2026.

The Ministry of Finance, through a notification on 15 August 2026, cut the Special Additional Excise Duty (SAED) — India's windfall gains tax on petroleum exports — on petrol to nil (from ₹3.5/litre), on diesel to ₹24/litre (from ₹25.5), and on ATF to ₹19.5/litre (from ₹22), reversing a sharp hike notified just 12 days earlier on 3 August 2026. SAED is revised fortnightly, tracking global crude and refinery-margin swings; domestic excise duty on petrol/diesel for local sale is unchanged. India first imposed windfall taxes on petroleum exports in July 2022, removed them in 2024, and reintroduced them in March 2026 after oil prices rose amid the West Asia conflict.

Air India and Azerbaijan Airlines (AZAL) signed a codeshare partnership to enhance connectivity between India and Azerbaijan. Air India will place its 'AI' designator code on Azerbaijan Airlines' daily Delhi–Baku and Mumbai–Baku flights, enabling passengers to book through Air India. Air India was founded by J.R.D. Tata in 1932, is owned by Tata Sons since 2022, is headquartered in Gurugram, Haryana, and now has 26 codeshare partnerships.

L&T Energy Hydrocarbon Offshore, part of Larsen and Toubro (L&T), secured an ultra-mega order valued at over Rs 15,000 crore (about US$1.75 billion) from ADNOC Offshore (Abu Dhabi National Oil Company) on August 4, 2026. The scope covers EPCIC - engineering, procurement, construction, installation and commissioning - of offshore facilities plus upgrades to existing infrastructure, with much of the fabrication to be done at L&T's Indian yards.

In July 2026, Edelweiss Mutual Fund launched the Edelweiss Nifty REITs & Realty Index Fund, described as India's first REIT-oriented open-ended passive index fund. It tracks the Nifty REITs & Realty Total Return Index (TRI), which currently allocates about 60% to listed REITs and 40% to listed real estate companies. Under SEBI regulations, Real Estate Investment Trusts (REITs) were reclassified as equity instruments from 1 January 2026 and became eligible for equity indices from 1 July 2026. InvITs (Infrastructure Investment Trusts) remain hybrid instruments and cannot be combined with REITs in a single passive index fund.

Edelweiss Mutual Fund launched the Edelweiss Nifty REITs & Realty Index Fund, India's first REITs-oriented open-ended passive index fund, tracking the Nifty REITs & Realty Total Return Index (TRI). The index currently allocates about 60% to listed REITs and 40% to listed real estate companies. Under SEBI regulations, Real Estate Investment Trusts (REITs) were reclassified as equity instruments from 1 January 2026 and became eligible for equity indices from 1 July 2026. REITs pool investor money to own and operate income-generating real estate, giving small investors exposure to property markets. InvITs (Infrastructure Investment Trusts) remain hybrid instruments and cannot be combined with REITs in a single passive index fund.

Union Commerce & Industry Minister Piyush Goyal announced the formation of a Task Force to support India's toy sector, targeting a 5% share of the global toy market by 2032. It was announced at the 'Team Up for Toys' stakeholder meet organised by the Department for Promotion of Industry and Internal Trade (DPIIT) in New Delhi. The task force will focus on six areas: integrating with global value chains, strengthening domestic manufacturing, addressing value-chain bottlenecks, skilling and employment, design and innovation, and ease of doing business. A Toy Sector Playbook was launched as a roadmap for manufacturers, startups and MSMEs. India's toy ecosystem includes 21,000+ MSMEs, 770+ DPIIT-recognised startups, 50 toy clusters and 1,800+ BIS licensees.

The Reserve Bank of India (RBI) granted perpetual Authorised Dealer Category-II (AD-II) licences to Niyo Forex (operating via Kanji Forex Pvt Ltd) and GlobalPay (WSFx Global Pay Ltd) under the updated FEMA 2026 regulations. The licences allow the fintechs to scale cross-border payments, family maintenance remittances and non-trade current-account transactions, and to expand their branch networks without additional RBI approval. GlobalPay's expanded licence permits inward/outward trade remittances up to Rs 25 lakh.

In July 2026, the Ministry of Statistics and Programme Implementation (MoSPI) announced plans to use the output Producer Price Index (PPI) as a deflator for quarterly and annual GDP estimates, replacing the Wholesale Price Index (WPI) wherever applicable. The PPI series was released by the Department for Promotion of Industry and Internal Trade (DPIIT) in June 2026. The revised GDP series has updated the base year to 2022-23 (from 2011-12) and adopted double deflation, which separately adjusts output and input prices. MoSPI plans to introduce the new PPI-based methodology with GDP estimates for the April-June quarter of 2026-27, while the CPI continues for specific granular items.

The Ministry of Statistics and Programme Implementation (MoSPI) announced it will use the output Producer Price Index (PPI) as a deflator for quarterly and annual GDP estimates, replacing the Wholesale Price Index (WPI) where applicable. The PPI series was released by the Department for Promotion of Industry and Internal Trade (DPIIT) in June 2026. A GDP deflator converts nominal GDP into real GDP by adjusting for price changes. The revised GDP series also updates the base year to 2022-23 (from 2011-12) and adopts double deflation (separately adjusting output and input prices). In June 2026, WPI inflation was 9.87% and output PPI inflation was 9.57%. The new methodology takes effect with the April–June 2026-27 GDP estimates, while CPI continues for specific granular items.

The International Monetary Fund (IMF), in its July 2026 World Economic Outlook (WEO) Update, lowered India's real GDP growth forecast for FY2026-27 to 6.4%, down from the 6.5% projected in April 2026, citing elevated global energy prices and trade uncertainty. The IMF raised India's FY28 forecast to 6.7% (from 6.5%), describing the dip as transient. India remains the world's fastest-growing major economy, well ahead of China (4.6%) and the United States (2.3%). The IMF retained global growth at 3.0% for 2026 and 3.4% for 2027. India's growth is powered by strong private consumption and a resilient services sector.

REC Limited and Power Finance Corporation approved a merger scheme effective 28 June 2026 with an 88:100 share exchange ratio, creating a power-sector financing giant with a combined loan book over Rs 11 lakh crore (subject to regulatory approvals).

India's Index of Industrial Production expanded 4.9% year-on-year in April 2026 (released in June), above the 3.9% expected, with manufacturing rising a sharper 6.2%.

The Corporate Affairs Ministry amended Schedule VII of the Companies Act to make subscription to Zero Coupon Zero Principal Instruments issued by NPOs on a social stock exchange an eligible CSR activity (up to 10% of annual CSR spend).

Medical device maker Poly Medicure Ltd signed a definitive agreement to fully acquire Italy-based Citieffe Group at an enterprise value of Rs 324 crore (EUR 31 million), expanding its global footprint.

The boards of Axis Max Life Insurance and Max Financial Services granted in-principle approval for their amalgamation, subject to regulatory and shareholder clearances.

Fintech major BillDesk agreed to buy Worldline India's payments arm in a deal pegged at $100-150 million, strengthening its merchant aggregation and omnichannel capabilities.

Japan's Sumitomo Mitsui Banking Corporation (SMBC) agreed to acquire a 20% stake in Yes Bank for about $1.6 billion, a major foreign investment in the private lender.

IIP grew 5.1% in May 2026, a five-month high, led by electricity and gas (+9.9%) and manufacturing (+5.5%), while mining contracted 1.6%.

India hosted the Bharat Steel Summit in New Delhi to chart the domestic steel sector's growth, decarbonisation and self-reliance goals.

India's industrial production grew 4.9% in April 2026, the first data under a revamped IIP series with the base year revised from 2011-12 to 2022-23. Manufacturing rose 6.2% and capital goods 16.0%.

The Index of Industrial Production grew 4.8% year-on-year in January 2026 (released 2 March), with manufacturing also up 4.8% and electricity the fastest-growing sub-index.

Unveiled at BIRAC's 14th Foundation Day, the report said India's bioeconomy reached a record US$195.3 billion in 2025, nearly 5% of GDP, driven by biopharma, bio-industrial and bio-agriculture sectors.

In its March 2026 disclosures, Reliance Industries announced the amalgamation of IndiaCast Media Distribution with JioStar India, part of continued consolidation in its media business.

In the January-March 2026 quarter, India recorded roughly 710 deals worth about US$20 billion - one of the highest activity levels on record - led by mid-market and outbound transactions.

The Ministry of Power proposed mandatory Time-of-Day tariffs for commercial/industrial consumers from 1 April 2027, a net-metering charge (exempt for solar PV up to 5 kW) and automatic review of abnormal bills within 30 days.

The Ministry of Mines released draft rules under the MMDR Act, 1957 providing for registration of electronic Mineral Exchanges (valid 25 years) for minerals other than coal, lignite and atomic minerals, regulated by the Indian Bureau of Mines.

At the AI Impact Summit, Reliance Industries pledged US$110 billion over seven years toward AI-focused infrastructure - the single largest corporate AI commitment announced during the summit.

The RBI released draft directions to permit commercial banks to lend to Real Estate Investment Trusts (previously not allowed), subject to safeguards, and to harmonise InvIT lending norms.

Adani Enterprises completed the acquisition of a 72.8% stake in Flight Simulation Technique Centre Pvt Ltd, strengthening its aviation-training footprint.

India recorded roughly 710 deals worth about US$20 billion in Q1 2026 - one of the highest activity levels on record - with a record 56 outbound deals worth ~US$3.9 billion.

The Index of Industrial Production for November 2025 grew 6.7% (manufacturing 8.0%, mining 5.4%), and IIP for December 2025 later showed 7.8% growth, signalling robust factory momentum.

Year-end reviews reported India's technology-sector M&A reaching a three-year high at an estimated US$26-29 billion, up nearly 30% from about US$20 billion in 2024.

JSW Paints acquired a majority 60.76% stake in Akzo Nobel India for a maximum consideration of Rs 8,986 crore - a major consolidation in the paints sector.

Bajaj Finserv acquired Allianz SE's 26% stake in their insurance joint ventures for Rs 24,180 crore, raising Bajaj's ownership to 100% and ending a 24-year partnership.

UAE-based Emirates NBD's acquisition of a controlling 60% stake in RBL Bank for around Rs 26,850 crore was a defining 2025 deal - the largest cross-border investment in an Indian private bank.

The Index of Industrial Production grew just 0.4% year-on-year in October 2025, down from 4.0% in September, with mining and electricity contracting amid extended rains and festival holidays.

India's foreign exchange reserves crossed $700 billion in June 2026, reaching about $702.78 billion as of 27 June, recovering from a May dip as the RBI defended a weak rupee (around 94/USD in mid-June).

At its June 2026 meeting, the RBI Monetary Policy Committee under Governor Sanjay Malhotra unanimously kept the repo rate unchanged at 5.25% with a neutral stance; the SDF stayed at 5% and MSF/Bank Rate at 5.5%.

India's foreign exchange reserves fell to a one-year low of about $681 billion in the week ended 22 May 2026 as the RBI sold dollars to defend the rupee amid the oil-price shock and FPI outflows.

The RBI Central Board approved a record surplus transfer of Rs 2,86,588 crore (~Rs 2.87 lakh crore) to the Central Government for FY26 as its balance sheet expanded over 20%; the Contingent Risk Buffer allocation more than doubled.

At its first bi-monthly policy of FY 2026-27, the RBI Monetary Policy Committee under Governor Sanjay Malhotra unanimously held the repo rate at 5.25% with a neutral stance; SDF at 5.00%, MSF and Bank Rate at 5.50%.

India's foreign exchange reserves declined by roughly US$30.5 billion during March 2026 amid RBI intervention to curb rupee volatility and a ~4% rupee depreciation; end-March reserves stood near US$688 billion.

In its first policy of 2026, the RBI's Monetary Policy Committee kept the repo rate unchanged at 5.25%, following a 25 bps cut in December 2025 (cumulative 125 bps in the cycle). SDF stayed at 5.00%, MSF and Bank Rate at 5.50%.

The MPC retained a neutral policy stance by a 5:1 majority (one member voted for an accommodative stance), supported by resilient growth and benign inflation.

India's foreign exchange reserves surged past US$700 billion in mid-January and reached about US$709 billion (week ended 23 January), a record high covering more than 11 months of imports.

The RBI conducted a USD/INR Buy/Sell Swap auction of US$10 billion with a three-year tenor to reinforce durable rupee liquidity amid seasonal cash outflows.

The RBI Monetary Policy Committee, under Governor Sanjay Malhotra, unanimously cut the repo rate by 25 bps to 5.25%, ending a two-meeting pause while retaining a neutral stance.

At its 19 June 2026 Board meeting, SEBI approved reforms across buy-backs, AIFs, mutual funds and debt markets, reintroducing open-market buy-backs through stock exchanges from 1 August 2026 and aligning securitisation governance with the RBI framework.

Under the fully implemented 50:50 margin rule effective June 2026, at least 50% of the margin requirement for Futures & Options trading must be maintained in cash or cash-equivalent instruments.

The RBI expanded the FAR to include all new 15-, 30- and 40-year government securities, removed investment and concentration limits for FPIs under the General Route, and raised equity caps for NRIs and OCIs.

SEBI proposed allowing AMCs to accept consolidated payments via salary deduction, allotment of MF units in lieu of cash trail commission, and investor donations to NGOs, with KYC safeguards.

The RBI allowed non-bank entities - NBFCs, corporates, housing finance companies and all-India financial institutions - to participate in the term money market (14 days to one year), to deepen liquidity and improve policy transmission.

SEBI reduced the minimum investment in a social impact fund from Rs 2,00,000 to Rs 1,000 per individual investor and introduced a provision to tag an AIF as an 'inoperative fund'.

Overseas equity investments by Indian companies rose about 27% (reported in April 2026) to roughly Rs 12,100 crore, reflecting strong appetite for global expansion.

French liquor major Pernod Ricard reportedly began exploring an IPO of its India arm with advisers, reflecting continued interest in listing Indian units of multinational firms.

Travel major MakeMyTrip named Axis Capital, Morgan Stanley and JP Morgan as advisers for its planned IPO, signalling a domestic listing push.

Gaming firm PlaySimple filed its draft red herring prospectus for a public issue comprising solely an Offer for Sale of Rs 3,150 crore, positioning it to become India's second listed gaming company after Nazara.

SEBI approved recommendations bringing its Chairman and Whole-Time Members within the definition of 'insiders', requiring freezing of investments on joining and capping new investment via a single intermediary at 25% of the financial portfolio.

AI and analytics firm Fractal Analytics opened its Rs 2,833.9 crore IPO in the same window, reflecting strong investor appetite for AI-driven enterprises.

MSME-focused lender Aye Finance launched its Rs 1,010 crore IPO, open from 9-11 February, amid strong primary-market activity.

W Health Ventures announced an initial close of Rs 550 crore for a healthcare Fund II, and IIT Madras Research Park with Unicorn India Ventures launched a Rs 600 crore deeptech-focused fund.

Moody's projected a stable outlook for India's banking sector, supported by expected FY27 growth and low system-wide NPAs projected at 2-2.5%.

Following the Budget announcement, the RBI released a draft revised master direction enabling Total Return Swaps on corporate bonds and Credit Default Swaps, specifying eligible participants and prudential norms.

SEBI notified a sweeping overhaul of the 30-year-old mutual-fund framework (effective 1 April 2026), introducing a performance-linked base expense ratio, reduced brokerage caps, a 'Life Cycle Funds' category and a slimmer rulebook.

Indian equities hit fresh records in early January - the Sensex closed near 85,762 and the Nifty50 crossed 26,300, with Nifty touching an intraday record of about 26,373 on 5 January.

Foreign Direct Investment inflows into India reached about US$81 billion in 2025, roughly 13% higher year-on-year, reflecting sustained investor confidence.

India's total exports (merchandise plus services) rose 4.22% to about $860.09 billion in FY26, though imports grew faster, widening the overall trade deficit.

India's merchandise trade deficit widened to a record $28.4 billion in April 2026, with exports up 13.8% to $41.6 billion and imports up 10% to $71.9 billion, driven by a surge in oil, fuel and coal prices.

The Finance Ministry notified the FEMA (Non-debt Instruments) Second Amendment Rules, 2026, removing the 74% cap and allowing up to 100% foreign investment in insurance companies under the automatic route (LIC remains capped at 20%).

The RBI extended the enhanced 450-day export credit period for pre- and post-shipment finance until 30 June 2026, a facility introduced in November 2025 to help exporters amid West Asia disruptions.

The RBI approved UAE-based Emirates NBD to acquire up to a 74% stake in RBL Bank for around $3 billion - described as the largest foreign investment in an Indian bank.

India's exports for April 2026 were about $43.7 billion (up ~13.4%) and imports about $71.9 billion (up ~10.8%), leaving a trade deficit near $28.2 billion, with petroleum and telecom instruments leading exports.

The CBIC allowed eligible SEZ manufacturing units to sell goods in the Domestic Tariff Area at concessional customs duty for 2026-27, subject to a minimum 20% value addition and a 30% export-value cap.

DPIIT's Press Note No. 2 of 2026 removed the requirement of a beneficial owner being 'situated in' a land-border country, defining beneficial ownership per the PMLA (over 10% holding of shares, capital or profits).

Per RBI data, India's Current Account Deficit for Q3 FY26 (Oct-Dec 2025) widened to US$13.2 billion, about 1.3% of GDP, reflecting a larger merchandise trade gap.

DPIIT released the draft Bill for feedback; it gives electronic trade documents full legal validity equal to paper and provides for cross-border recognition and trust service providers.

The Government removed the 50% cap on remission rates (introduced in February 2026) under the RoDTEP scheme, restoring earlier rates to support exporters amid West Asia disruption.

India's cumulative total exports (goods + services) during April-January 2025-26 were estimated at US$720.76 billion, up 6.15% over the same period a year earlier.

Merchandise exports in January 2026 were US$36.56 billion and imports US$71.24 billion; combined (goods + services) total exports were US$80.45 billion (+13.17% YoY), with gold imports surging.

India's current account deficit narrowed to about 0.8% of GDP in the first half of 2025-26, aided by strong services exports and remittances.

Total exports (goods + services) for December 2025 were US$74.01 billion and total imports US$80.94 billion; the April-December merchandise trade deficit stood at US$248.32 billion.

India's merchandise trade deficit fell to US$24.53 billion in November 2025; total exports rose 15.52% to US$73.99 billion, led by engineering and electronic goods.

Total exports (merchandise + services) during April-November 2025 were about US$562.13 billion, up 5.43% year-on-year.

The World Bank's Global Economic Prospects projected global growth slowing to 2.5% in 2026, citing the Middle East conflict and energy price spikes, with South Asia moderating to 6.2% before recovering to 6.5% in 2027.

In its Global Economic Prospects report, the World Bank raised India's FY 2026-27 GDP forecast to 6.6%, keeping India the fastest-growing major economy, with growth seen rebounding to 7.2% in FY28.

The UN's World Economic Situation and Prospects mid-2026 update cut global GDP growth to 2.5%, while India remained the fastest-growing major economy, projected around 6.6% for 2026.

The World Bank raised India's FY 2026-27 growth forecast to 6.6%, citing strong domestic demand and keeping India the fastest-growing major economy.

The IMF's April WEO, titled 'Global Economy in the Shadow of War', projected India's real GDP growth at about 6.5%, keeping India the fastest-growing major economy while trimming the global outlook.

The World Bank noted India remained the fastest-growing major economy with FY26 growth around 7.6% and a current account deficit near 1% of GDP, while projecting FY27 growth at 6.6%.

The World Bank's January Global Economic Prospects pegged South Asia growth at 6.2% in 2026, while the UN's WESP 2026 projected India moderating to about 6.6% in 2026.

The IMF's January WEO Update projected India's growth at 6.3% for 2026 and 6.5% for 2027, retaining India as the fastest-growing major economy.

The FSR pegged FY26 growth at 7.8% (Q1) and 8.2% (Q2) and reported the gross NPA ratio of scheduled commercial banks at a multi-year low of 2.1%, while flagging risks from unsecured retail lending and stablecoins.

India's GDP grew a provisional 7.8% in Q4 FY26 (Jan-Mar 2026), supported by private consumption and fixed investment; full-year FY26 real GDP expanded about 7.7%, the sharpest growth since FY2022.

The RBI lowered its FY27 GDP growth forecast to 6.6% (from 6.9%) and raised its inflation forecast to 5.1% (from 4.6%), citing the West Asia conflict, higher energy prices and monsoon/El Nino uncertainty.

MoSPI launched a revamped IIP series updating the base year from 2011-12 to 2022-23, adding items such as rare earths, gas supply and aircraft parts to better reflect the modern economy.

In its April policy, the RBI projected India's real GDP growth for FY 2026-27 at 6.9% and CPI inflation at 4.6%, flagging global geopolitical risk from the West Asia conflict.

India's eight core infrastructure industries grew 2.3% in February 2026, slowing from an upwardly revised 4.7% in January; cement (+9.3%), steel (+7.2%) and fertilisers grew while crude oil and natural gas declined.

India's real GDP for Q3 FY26 (Oct-Dec 2025) was estimated at Rs 84.54 lakh crore, growing 7.8% year-on-year, with real GVA also up 7.8%; the full-year FY26 estimate stood at 7.6% under the new 2022-23 base series.

MoSPI released a revised GDP series shifting the base year from 2011-12 to 2022-23; under the new series FY26 GDP growth (second advance estimate) is 7.6% and Q3 (Oct-Dec 2025) grew 7.8%.

A new Consumer Price Index series adopting 2024 as its base year was released; CPI inflation for January 2026 stood at about 2.75% under the new base.

The NSO released the First Advance Estimates projecting India's real GDP growth at 7.4% for FY26 (up from 6.5% in FY25), led by financial and public services.

Alongside the rate cut, the RBI revised its FY26 real GDP growth projection upward to 7.3% (from 6.8%), citing strong momentum and record-low inflation.

India's real GDP grew 8.2% in Q2 (Jul-Sep) FY26, a six-quarter high, with manufacturing up 9.1% and the tertiary sector up 9.2%; H1 FY26 growth was 8.0%.

Retail (CPI) inflation rose to about 3.9% for May 2026 (released in June) from 3.5% in April - the highest in 16 months but below the RBI's 4% midpoint - with food inflation near 4.8% amid the West Asia conflict.

India's CPI inflation for May 2026 was a provisional 3.93%, the fifth straight monthly rise, with food inflation at 4.78%; the uptick was partly driven by four fuel price hikes in May, the first in four years.

Wholesale Price Index inflation hit a provisional 8.3% for April 2026, a multi-month high, driven mainly by higher prices of mineral oils, crude petroleum, natural gas and basic metals.

All-India CPI inflation for April 2026 was a provisional 3.48%, the fastest in a year but below market expectations, with rural inflation at 3.74% and urban at 3.16%.

The annual WPI-based inflation rate for February 2026 was 2.13% (provisional), with the WPI food index at 1.85%, released in mid-March.

The February 2026 CPI data (released in March) showed retail inflation at 3.21% with food inflation at 3.47%, comfortably within the RBI's tolerance band.

Retail (CPI) inflation for December 2025 rose to 1.33% year-on-year (from 0.7% in November) as food deflation narrowed; core inflation climbed to a 28-month high of 4.8%. This was the last release on the 2012=100 base.

Average retail (CPI) inflation fell to about 1.7% for April-December 2025-26 (from 4.6% in 2024-25), reflecting easing food prices and a favourable base.

Wholesale Price Index inflation for December 2025 was 0.83% (provisional) year-on-year, with the WPI food index rising to 0.00% from -2.60% in November.

Wholesale Price Index inflation remained negative (around -1.2% for the October print), reflecting lower prices of food, crude petroleum, natural gas and mineral oils.

CPI inflation for November 2025 was 0.71% (provisional), up from October's record low of ~0.25%, with food inflation still negative at -3.91%.

The Budget proposed reviving 200 legacy industrial clusters, setting up a 'High Level Committee on Banking for Viksit Bharat', and introducing derivatives on corporate bonds.

The Survey noted India's lowest average CPI inflation (1.7%) for Apr-Dec 2025 since the series began, forex reserves of about US$701.4 billion (~11 months of import cover), and India as the top remittance recipient (US$135.4 billion in FY25).

The Budget announced seven new high-speed rail corridors connecting major cities and 20 new national waterways to be made operational over five years.

The Ministry of Railways received Rs 2,77,830 crore in capital allocation for FY27, a 10.25% increase and its highest ever.

The Ministry of Defence received the highest allocation at Rs 7,84,678 crore (about 15% of total central expenditure), with defence capital outlay at Rs 2,19,306 crore, 17.6% higher than the FY26 revised estimate.

Capex for FY27 was increased to Rs 12.2 lakh crore (from Rs 11.2 lakh crore) to sustain infrastructure-led growth; effective capex was projected at 4.4% of GDP.

The FY27 fiscal deficit is targeted at 4.3% of GDP (down from the 4.4% revised estimate for FY26), with the revenue deficit at 1.5% and nominal GDP growth assumed at 10%.

Finance Minister Nirmala Sitharaman presented the Union Budget for FY27, with total expenditure pegged at Rs 53,47,315 crore (up 7.7% over 2025-26 RE) and receipts other than borrowings at Rs 36,51,547 crore.

The Economic Survey was tabled by Finance Minister Nirmala Sitharaman, projecting real GDP growth of 6.8-7.2% for 2026-27 and about 7.4% for 2025-26, with inflation within the 4% (+/-2%) band.

The Economic Survey (tabled 29 January, core to the Budget session) projected real GDP growth of 7.4% and GVA growth of 7.3% for FY26, keeping India the fastest-growing major economy, with FY27 growth projected at 6.8-7.2%.

Adani Defence Systems and Technologies signed an MoU with Brazil's Embraer to develop a regional transport-aircraft ecosystem in India.

Marking ten years of Startup India, the government highlighted that recognised startups had created over 21 lakh direct jobs, underscoring the ecosystem's role in employment and innovation.

India was reaffirmed as the world's third-largest startup ecosystem, with over 2.09 lakh DPIIT-recognised startups by December 2025 - a landmark marked on National Startup Day.

The government's sale of its 60.72% stake in IDBI Bank advanced, with financial bids expected in January and the deal potentially exceeding Rs 1 lakh crore.

The Production Linked Incentive scheme attracted around Rs 2 lakh crore in investment and over Rs 17 lakh crore in production, as cited in the President's address.

The HSBC India Manufacturing PMI stood at 56.8 in January 2026, firmly above 50, with the composite reading around 58.4, indicating strong private-sector activity.

Gross Value Added is estimated to grow 7.3% in FY26, led by services (near 10%), with manufacturing and construction around 7% and agriculture at 3.1%.

The RBI conducted Open Market Operations to purchase government securities worth Rs 2 lakh crore in four tranches of Rs 50,000 crore each (including on 5, 12 and 22 January) to ensure durable banking-system liquidity.

The RBI directed all regulated entities (banks, NBFCs, fintechs, payment aggregators) to prioritise customer data protection in alignment with the Digital Personal Data Protection Act, 2023, with periodic board reviews.

The RBI mandated that all loan disbursals flow directly to the borrower's bank account, required a Key Fact Statement with APR disclosure, and prescribed a cooling-off period of at least three days.

DPIIT floated proposals to extend 'design' to virtual designs (GUIs, icons, typefaces) and to accede to the Riyadh Design Law Treaty and the Hague Agreement.

The government consolidated the year's reforms: 29 labour laws unified into four Labour Codes (~50 crore workers), Next-Gen GST 2.0 (two slabs of 5% and 18%), and the Rs 25,060-crore Export Promotion Mission.