RBI Act, 1934
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Current affairsRBI-SEBI Real World Asset (RWA) Tokenisation Pilot: India's First Tokenised Corporate Bond and the Blockchain Finance FrontierRBI Governor Sanjay Malhotra and SEBI Chairperson Tuhin Kanta Pandey jointly launched India's first tokenised corporate bond pilot at Global Fintech Fest 2026. REC Limited raised ₹500 crore via blockchain, settled in RBI's wholesale CBDC (e₹-W). By September 10, three issuers raised ₹1,025 crore under SEBI's Demat 2.0 framework — marking India's entry into blockchain-based capital markets. Current affairsSC in Sandeep Ghandat vs RBI (2026 INSC 955): RBI's Power to Supersede Multi-State Co-operative Bank Boards Not Capped at Six MonthsOn September 3, 2026, the Supreme Court of India held in Sandeep S. Ghandat vs Reserve Bank of India (2026 INSC 955) that the RBI's statutory power under Section 36AAA(1) of the Banking Regulation Act, 1949 to supersede the Board of Directors of a multi-State co-operative bank is not limited to the six-month cap prescribed under Article 243ZL(1) of the Constitution. The court set a five-year aggregate ceiling and ruled that state government consultation is not required for multi-State co-operative banks. Current affairsGlobal Fintech Fest 2026: RBI on Tokenisation, Agentic AI, and India's Financial Inclusion Index at 70The Global Fintech Fest 2026, held in Mumbai, brought together policymakers, regulators, and industry leaders under the theme "Potential to Impact: Agentic AI | Tokenisation | Quantum: Trusted, Connected, Global Systems for Inclusive Finance." RBI highlighted tokenisation of financial assets and responsible Agentic AI as the next frontiers of India's fintech evolution. India's Financial Inclusion Index (FI-Index) rose to 70.0 as of March 2026, up from 67.0 in March 2025. Current affairsCoastal Local Area Bank Achieves Scheduled Bank Status: India's First LAB Included in Second Schedule of RBI ActThe Reserve Bank of India (RBI) has included Coastal Local Area Bank Limited, Vijayawada — India's first-ever Local Area Bank — in the Second Schedule to the RBI Act, 1934, granting it Scheduled Bank status. The RBI subsequently amended the CRR and SLR directions for Local Area Banks to incorporate scheduled bank provisions including Incremental CRR and daily minimum CRR maintenance. Current affairsIndia's GDP Grows 7.8% in Q1 FY2026-27: Manufacturing and Services Drive Expansion, Beats RBI ForecastIndia's real GDP grew 7.8% in Q1 FY2026-27 (April–June 2026), as per MoSPI data released on 31 August 2026, surpassing both the RBI's 7% estimate and a Reuters poll forecast of 7.1%. Nominal GDP rose 10.3% to ₹88.27 lakh crore, driven by strong manufacturing (9.2%), financial services (12.1%), and construction (7.7%) growth. Current affairsThree New Part-Time Directors on RBI Central Board: Annie George Mathew, Janmejaya Kumar Sinha, Syed Akbaruddin — RBI Governance and the Central Board's RoleThe Government of India appointed Annie George Mathew (former Special Secretary, Ministry of Finance), Janmejaya Kumar Sinha (Chairman, BCG India), and Syed Akbaruddin (former Permanent Representative to the UN, now Dean of Kautilya School of Public Policy) as part-time non-official directors on the RBI Central Board for four-year terms effective August 24, 2026. Former ISRO chief S. Somnath and industrialist Anand Mahindra were also appointed/re-appointed to the board in the same round. Current affairsIndia's Forex Reserves Hit Record $729.33 Billion: FCNR(B) Swap Facility, RBI Measures, and the Macroeconomic SignificanceIndia's foreign exchange reserves climbed to an all-time record of $729.33 billion in the week ending 21 August 2026, surpassing the previous record of $728.49 billion set in February 2026, driven by $73 billion in inflows under RBI's concessional FCNR(B) deposit and overseas borrowing hedging facilities launched in June 2026. Current affairsUPI Completes 10 Years: From 21 Banks in 2016 to the World's Largest Real-Time Payments PlatformThe Unified Payments Interface (UPI) completes ten years in August 2026, marking its evolution from a pilot with 21 banks in April 2016 to the world's largest real-time payments platform — processing 2,366 crore transactions worth ₹29+ lakh crore per month, accounting for 85% of India's digital payments and approximately 49% of global real-time transactions, with active acceptance in 9 countries. Current affairsRBI MPC August 2026: Repo Rate Unchanged at 5.25%, Neutral Stance Retained — GDP Forecast Raised to 6.7%The Reserve Bank of India's Monetary Policy Committee (MPC) unanimously voted 6-0 to keep the policy repo rate unchanged at 5.25% in its 62nd meeting (August 3–5, 2026), retaining the 'Neutral' stance. The GDP growth forecast for FY 2026-27 was raised to 6.7%, while the CPI inflation projection was lowered to 5.0% (from 5.1% at the June 2026 meeting). Current affairsIndia's Sovereign Green Bonds and Greenium 2026: ₹15,000 Crore H1 FY27 Target, SEBI Anti-Greenwashing Rules, and the Push for Climate FinanceIndia's sovereign green bond (SGrB) market is gaining renewed traction in 2026, with the government planning ₹15,000 crore in H1 FY2026-27. Investors are recording the highest greenium — the price premium green bonds command over conventional securities — since the programme's inception in FY2022-23, while SEBI's new anti-greenwashing rules strengthen market credibility. Current affairsRBI Monetary Policy August 2026: Repo Rate Held at 5.25% for Fourth Consecutive Time, GDP Growth Forecast Raised to 6.7%The Reserve Bank of India's Monetary Policy Committee (MPC), at its August 3–5, 2026 meeting, unanimously kept the repo rate unchanged at 5.25% for the fourth consecutive time, retained its neutral stance, and raised India's FY27 GDP growth forecast from 6.6% to 6.7% while lowering the CPI inflation projection to 5.0%. Governor Sanjay Malhotra cited the need for greater clarity on the inflation trajectory before any rate action. Current affairsRBI Monetary Policy Committee August 2026: Repo Rate Held at 5.25%, GDP Forecast Raised to 6.7%, Inflation Cut to 5.0%The Reserve Bank of India's Monetary Policy Committee (MPC), at its 62nd meeting (August 3–5, 2026), unanimously voted to keep the policy repo rate unchanged at 5.25% while retaining the 'Neutral' stance. The RBI raised FY27 GDP growth forecast to 6.7% and lowered CPI inflation projection to 5.0%, reflecting domestic resilience and moderating demand-side pressures even as global geopolitical uncertainties persist.
In previous-year questions
- The Monetary Policy Committee (MPC) of the Reserve Bank of India, which sets the policy repo rate, was established under which provision of the RBI Act, 1934?UPSC · Current Affairs
- Which section of the RBI Act, 1934 empowers the Central Government to set the inflation target in consultation with the RBI — a process that established the current 4% (±2%) CPI target for the Monetary Policy Committee?OTHER · Current Affairs
- India plans to raise ₹15,000 crore through Sovereign Green Bonds in H1 FY2026-27 (April–September 2026). Which institution conducts the auction of these bonds on behalf of the Union Government?UPSC · Current Affairs
- The Monetary Policy Committee (MPC) of the Reserve Bank of India consists of how many members, and who holds the casting vote in the event of a tie?UPSC · Current Affairs
- Under the Flexible Inflation Targeting (FIT) framework, which body is legally responsible for setting the inflation target in India?UPSC · Current Affairs
- If the RBI's MPC fails to maintain inflation within the mandated 2%–6% band for three consecutive quarters, what is the prescribed consequence under the RBI Act, 1934?UPSC · Current Affairs
- Under which provision of the Reserve Bank of India Act, 1934 does the Central Government appoint part-time non-official directors on the RBI Central Board?UPSC · Current Affairs
- The Reserve Bank of India was established under the RBI Act, 1934, and commenced operations on which date?UPSC · Current Affairs
- Which of the following statements about the Union List (List I, Seventh Schedule) entries related to the Reserve Bank of India is correct?UPSC · Current Affairs
- India's Digital Rupee (e₹), a Central Bank Digital Currency (CBDC), is issued by which body, and was legally enabled by which legislation?UPSC · Current Affairs
- Which of the following correctly describes the significance of a bank's inclusion in the Second Schedule to the Reserve Bank of India Act, 1934?UPSC · Current Affairs
- Coastal Local Area Bank Limited, which received Scheduled Bank status in 2026, is headquartered in which city?UPSC · Current Affairs