Recent Current Affairs related to RBI

TVS Venu Group has announced plans to acquire up to a 9.9% stake in Jana Small Finance Bank (Jana SFB) through a combination of warrants and secondary share purchases. GWC Family Fund Investments will acquire a 5.64% stake via a primary issue of shares, and TVS Motor Company will purchase a 4.9% stake in the bank.

The RBI has removed the requirement of prior approval for non bank entities to establish tie-up arrangements for outward remittance services through banks in India. This is part of an operating framework issued by the RBI to facilitate such services through Authorised Dealer (AD) Category I banks.

The Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs (MHA) has signed an MoU with the Reserve Bank Innovation Hub (RBIH) to enhance the detection of mule accounts and to mitigate cyber financial frauds using AI based technologies. It is to be noted that the RBIH is a subsidiary of the RBI.

The RBI has cancelled the banking licence of the Mumbai (Maharashtra)-based Sarvodaya Co-operative Bank Ltd, effective from May 12, 2026. It is to be noted that the action was taken under Sections 22(4) and 56 of the Banking Regulation Act, 1949.

The RBI has signed an MoU with the European Central Bank (ECB) to enhance collaboration in the field of central banking. This agreement replaces the previous MoU signed in 2015. The updated MoU establishes a framework for regular policy dialogue and exchange of information between the two institutions.

The RBI has granted approval to Kotak Mahindra Bank Limited (KMBL) to acquire an equity stake of up to 9.99% in the paid-up share capital or voting rights of AU Small Finance Bank and Federal Bank Ltd. It is to be noted that the latter is one of the largest mid-sized private sector lenders in India based on market capitalisation (m-cap).

According to data released by the Ministry of Statistics and Programme Implementation (MoSPI), India’s retail inflation increased marginally to 3.48% in April 2026 from 3.4% in March 2026.

During the month, rural inflation was recorded at 3.74% while urban inflation stood at 3.16%. Food inflation, as measured by the All India Consumer Food Price Index (CFPI), also saw a rise to 4.2% in April 2026 compared to 3.87% in March 2026.

The RBI has imposed a cumulative monetary penalty for regulatory non-compliance. YES Bank was fined ₹31.8 lakh for violating Know Your Customer (KYC) directions, while Hinduja Housing Finance was fined ₹1.8 lakh for failing to comply with other RBI directions.

Jio Payments Bank Ltd (JPBL) has partnered with the Ezeepay to serve as a Business Correspondent (BC). The collaboration aims to strengthen last-mile digital banking in rural and semi-urban India by providing access to basic banking facilities through local merchant outlets.

The Appointments Committee of the Cabinet (ACC) has approved the appointment of Rohit Jain as the Deputy Governor of the RBI for a 3-year term, effective from May 3, 2026. He will succeed T Rabi Sankar.

The RBI has launched a nationwide mission-mode initiative named “Mission SAKSHAM” (Sahkari Bank Kshamta Nirman) for the Urban Co-operative Banking (UCB) sector. The mission focuses on the comprehensive capacity building of the sector to enhance overall performance. The core objectives of the initiative include strengthening managerial and operational efficiency to ensure that the UCB sector aligns with modern banking standards.

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.