Reserve Bank of India Act, 1934
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Current affairsRBI Financial Stability Report June 2026: Banking Sector at Multi-Decadal Low NPA, Rising Household Debt, and AI-Driven Cyber RisksThe Reserve Bank of India's Financial Stability Report (FSR) for June 2026 reports India's banking sector has achieved a multi-decadal low Gross Non-Performing Asset (GNPA) ratio of 1.8%, while flagging rising household debt (45.5% of GDP) and AI-enabled cyberattacks as the top emergent systemic risks — critical reading for UPSC, Banking, and SSC aspirants. 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 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 affairsDelhi Lakshmi Yojana 2026: ₹2,500 Monthly Cash Transfer for Women and the Unconditional Cash Transfer Policy DebateThe Delhi Government approved the Lakshmi Yojana on 28 July 2026, providing ₹2,500 per month to women aged 21–60 from households with annual income up to ₹2.5 lakh. With a budget of ₹5,110 crore in 2026-27, the scheme is expected to benefit over 17 lakh women. It has reignited India's national debate on the fiscal sustainability, design, and empowerment effectiveness of Unconditional Cash Transfer (UCT) schemes for women. 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 affairsUPI Hits Record 23.66 Billion Transactions in July 2026 — ₹29.88 Lakh Crore in ValueIndia's Unified Payments Interface (UPI) processed a record 23.66 billion transactions worth ₹29.88 lakh crore in July 2026, according to data released by the National Payments Corporation of India (NPCI). This surpassed the previous monthly volume record of 23.20 billion set in May 2026. Transaction volume grew 22% year-on-year and 4.1% month-on-month, without any major festival or quarter-end activity to drive the surge. Current affairsSupreme Court Issues Nationwide Directions on Digital Arrest Scams; Directs RBI to Frame Mule Account SOPThe Supreme Court of India, on August 5, 2026, issued a fresh set of nationwide directions to strengthen the response to digital arrest scams and cyber-enabled financial fraud. The bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana directed the Reserve Bank of India (RBI) to frame and circulate a Standard Operating Procedure (SOP) for dealing with mule accounts and money laundering-linked bank accounts within four weeks.
In previous-year questions
- 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
- The Monetary Policy Committee (MPC) of India is constituted under which of the following Acts?UPSC · 2026 · Economy