Recent Current Affairs related to RBI

The RBI has issued the final guidelines titled “RBI (Non-Banking Financial Companies (NBFC) – Registration, Exemptions and Framework for Scale Based Regulation) Amendment Directions, 2026”, applicable to NBFCs that do not use public funds and lack a customer interface.

Effective from July 2026, entities with an asset size under ₹1,000 crore will be classified as ‘Unregistered Type I NBFCs’ and will be exempt from registration with the RBI. All other NBFCs that do not meet this criteria will be categorized as ‘Type II NBFCs’.

The RBI has approved the application of One MobiKwik Systems Ltd to operate as a Non-Banking Financial Company (NBFC). This allows the company to establish a subsidiary named MobiKwik Financial Services Private Ltd as its lending arm, contingent upon the issuance of a Certificate of Registration (CoR).

The RBI has issued a Master Direction to transition toward an Expected Credit Loss (ECL) based approach for asset classification, income recognition, and provisioning. The new directions will come into force in April 2027, replacing the current regulatory norms.

Under the proposed ECL framework, the 90-day rule for Non Performing Assets (NPAs) will be maintained, classifying loans as NPAs if repayments remain overdue for more than 90 days. Additionally, a new reporting framework for Over-the-Counter (OTC) FX derivative contracts will be effective from July 2027.

The RBI has withdrawn certain restrictions on foreign exchange dealers regarding positions in the offshore Non-Deliverable Forwards (NDF) market, which were originally implemented to mitigate rupee volatility.

To manage market fluctuations, the RBI has capped the net open positions of banks in the offshore derivatives market at $100 million.

The RBI has approved the re-appointment of B Ramesh Babu as the MD & CEO of Karur Vysya Bank (KVB) for a third consecutive term of 2 years till July 2028.

Pay Point India Network has become the first private-sector fintech company to join the Centralised Payment System (CPS) operated by the RBI.

The RBI has unveiled its medium-term strategy framework named “Utkarsh 2029”, which will be implemented from April 2026 to March 2029. The strategy aims to consolidate the position of the RBI as a world-class, full-service central bank by outlining 49 deliverables across six strategic pillars.

The six pillars of the framework include robust regulations, customer centricity and inclusive finance, competitive markets, effective technology, a future-ready organisation, and global integration. The framework introduces “Project Sa-Mudra” to modernise currency management and envisions the expansion of Central Bank Digital Currency (CBDC) for efficient cross-border payments.

The RBI also intends to scale up the Unified Lending Interface (ULI) to enhance credit access for underserved segments of the economy. Additionally, the strategy includes the development of an indigenous AI tool based on a purpose-built Large Language Model (LLM) for internal operations.

Shriram Overseas Investments Ltd, a wholly owned subsidiary of Shriram Finance Ltd, has received in-principle approval from the Reserve Bank of India (RBI) to start Primary Dealer (PD) business. The authorization is subject to the fulfillment of specific conditions set by the RBI.

Paytm has introduced biometric authentication for UPI and cardless Automated Teller Machine (ATM) withdrawals to enhance security. These features align with the RBI guidelines for two factor authentication (2FA).

Biometric payments are capped at ₹5,000 per transaction as per the National Payments Corporation of India (NPCI) guidelines. The cardless withdrawal feature allows users to withdraw cash from ATMs without a physical card, with a maximum limit of ₹10,000 per transaction.

The RBI has issued the “RBI (Non-Banking Financial Companies (NBFC) - Branch Authorisation) Amendment Directions, 2026” to enhance operational flexibility for NBFCs while ensuring regulatory oversight. The rules have come into force with immediate effect.

All applications must be submitted through the Platform for Regulatory Application, Validation And AutHorisation (PRAVAAH) portal. Under the revised norms, deposit-taking NBFCs with Net Owned Funds (NOF) up to ₹50 crore or lower credit ratings are permitted to open branches only within the state of their registered office.

CSB Bank Ltd, one of the oldest private sector banks in India, has launched its first dedicated retail savings product named “SMART SAVE ACCOUNT”.

The move aims to strengthen the liquidity of the bank and expand the retail banking portfolio of CSB through automated and customer-centric solutions.