All 22 Banking & Economy updates published in May 2026, grouped into 8 subtopics. Each one carries the exam-relevant facts and its GK Bytes; open an update for the complete note with static GK.
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.
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.
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.
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.
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%.
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.
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.
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.
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 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.
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%.