All 26 Banking & Economy updates published in February 2026, grouped into 7 subtopics. Each one carries the exam-relevant facts and its GK Bytes; open an update for the complete note with static GK.
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.
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.
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.
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).
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.
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.
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.
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.
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 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 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.
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.