Reserve Bank of India Act, 1934
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Current affairsRBI Data Centre & Cybersecurity Training Institute Inaugurated in BhubaneswarPrime Minister Narendra Modi inaugurated the Reserve Bank of India's new ₹169-crore Data Centre and Cybersecurity Training Institute in Bhubaneswar, Odisha on 25 October 2026. The data centre has received the Uptime Institute Tier IV certification — the highest global benchmark for data-centre resilience — and will host critical payment and settlement systems. The accompanying Cybersecurity Training Institute will provide specialised training in enterprise computing, AI, and quantum-computing-based cybersecurity. Current affairsIndia's WPI Inflation Surges to 11.39% in September 2026: Fuel and Food Prices Drive Broad-Based Price PressureIndia's Wholesale Price Index (WPI)-based inflation rose sharply to 11.39% in September 2026 from 9.92% in August 2026, driven primarily by a 25.85% surge in fuel and power prices alongside elevated food and manufactured-goods inflation. The data, released by the Office of Economic Adviser under DPIIT on October 14, 2026, signals broad-based upstream price pressure with implications for monetary policy and cost-of-living trends. Current affairsIMF World Economic Outlook October 2026: India's Growth Upgraded to 7%, Fastest-Growing Major EconomyThe International Monetary Fund (IMF) released its World Economic Outlook (WEO) report titled "Resilience Under Strain, Urgent Choices" on October 14, 2026, upgrading India's FY27 GDP growth forecast to 7% — a 60-basis-point upward revision from the July 2026 WEO. India is projected as the world's fastest-growing major economy, outpacing China (4.5%) by 2.5 percentage points, driven by resilient domestic demand and robust services activity even as global growth faces headwinds from energy price volatility and Middle East conflict spillovers. Current affairsRBI Special Dollar Window for PSU Oil Marketing Companies: Mechanism, Rupee Support, and Exam RelevanceThe Reserve Bank of India (RBI) announced on 10 October 2026 a dedicated special dollar window for India's three public sector oil marketing companies — Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL), and Bharat Petroleum Corporation (BPCL) — effective from 12 October 2026. The measure aims to reduce pressure on the Indian rupee by channelling crude oil-related foreign exchange demand through a dedicated RBI facility rather than the open interbank market. Current affairsRBI MPC October 2026 Decision: Repo Rate Raised to 5.5% — First Hike Since February 2023, Stance Shifts to Calibrated TighteningThe Reserve Bank of India's six-member Monetary Policy Committee (MPC), at its October 7, 2026 meeting chaired by Governor Sanjay Malhotra, unanimously raised the repo rate by 25 basis points to 5.5% — the first increase since February 2023 — and shifted the policy stance to "calibrated tightening" as rising inflation and elevated global oil prices prompt the central bank to reverse its 2025 easing cycle. Current affairsAnup Bagchi Appointed MD & CEO of HDFC Bank: RBI Approval, Leadership Transition and Banking Governance ImplicationsThe Reserve Bank of India (RBI) formally approved Anup Bagchi as the Managing Director and Chief Executive Officer of HDFC Bank for a three-year term effective 27 October 2026, succeeding Sashidhar Jagdishan. Bagchi, a 56-year-old IIM Bangalore and IIT Kanpur alumnus, moves from ICICI Prudential Life Insurance Co and becomes the first external candidate to head India's largest private-sector bank by assets. Current affairsRBI Monetary Policy Committee (MPC) October 2026 Meeting: Key Context, Rate Watch and Monetary Policy FrameworkThe Reserve Bank of India's Monetary Policy Committee (MPC) commenced its three-day bi-monthly meeting on October 5, 2026, with the policy decision scheduled for announcement on October 7. The current repo rate stands at 5.25%, held unchanged across four consecutive meetings since a 125 basis-point cumulative easing cycle in 2025. The 63rd MPC meeting takes place against a backdrop of rising retail inflation (~4.82% in August 2026) and elevated global interest rates. 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 affairsRBI Open Market Operations (OMO) September 2026: ₹1 Lakh Crore Bond Sales to Drain Durable LiquidityThe Reserve Bank of India (RBI) announced open market operations (OMO) bond sales worth ₹1 lakh crore (₹1 trillion) in three tranches scheduled for September 17, 21, and 28, 2026, to absorb excess durable liquidity from the banking system, which had surged to over ₹10.43 trillion — pushing overnight rates below the RBI's policy repo rate floor. 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 affairsIFC USD 1 Billion MSME Credit Facility via SIDBI: Long-Term Finance for India's Small BusinessesIndia's Ministry of Finance secured USD 1 billion from the International Finance Corporation (IFC), the private-sector arm of the World Bank Group, to expand long-term credit availability to Micro, Small and Medium Enterprises (MSMEs) through SIDBI. The facility — USD 500 million from IFC's own account and USD 500 million mobilised through SIDBI's lender syndicate — enables loans with tenures of up to seven years and has been swapped into Indian rupees through the RBI's special currency swap window. 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.
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
- 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
- The Monetary Policy Committee (MPC) of India is constituted under which of the following Acts?UPSC · 2026 · Economy
- The Monetary Policy Committee (MPC) of the RBI is constituted under which provision of law, and how many members does it have?UPSC · 2026 · Current Affairs