Banking & Economy Current Affairs August 2026

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 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.

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.

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).

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.

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.

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 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).

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 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.

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.

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.

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.

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 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.

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.

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 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 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.

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 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 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 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 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 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 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 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.

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 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.

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.

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.

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.

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.

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.