RBI Act, 1934
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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. Current affairsRBI Keeps Repo Rate at 5.25%: August 2026 Monetary Policy ExplainedRBI Keeps Repo Rate at 5.25%: August 2026 Monetary Policy Explained
Featured Snippet: In its August 2026 meeting (3–5 August), the Reserve Bank of India's Monetary Policy Committee (MPC) unanimously kept the repo rate unchanged at 5.25% and retained a "neutral" stance....
In previous-year questions
- 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 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
- Under India's flexible inflation targeting framework, the CPI inflation target and its tolerance band are:UPSC · 2026 · Economy