IndiaAI Mission ₹10,372 Cr, 38,000 GPUs: National Response Needed for AI Cyber Risks in Banking

MoSPI Considers Diary-Based HCES for High-Income Households to Tackle 9.8% Urban Non-Response Rate

To counter rising non-response from affluent households in gated societies, MoSPI is piloting a 'diary-based' self-reporting method for the next Household Consumption Expenditure Survey (HCES) in 2027-28. This shift is critical because the HCES data directly impacts CPI basket weights, inflation targeting by RBI, and policy making, but raises concerns about data comparability due to differential recall errors between survey methods.

RBI Report Flags Resilient Q1 Growth at 7%, Warns of El Nino and Geopolitical Risks

The Indian economy shows robust growth momentum in Q1, driven by consumption, manufacturing, and public capex, but faces headwinds from geopolitical tensions, supply-chain pressures, volatile energy prices, and a strengthening El Niño. The RBI and Finance Ministry reports reinforce this view, with GDP growth projected at 7% for Q1.

US Treasury Invokes Section 311 on Banque Misr UAE to Choke Iran’s Shadow Banking Network

The US Treasury has targeted Banque Misr's UAE branches under Section 311 for allegedly processing $1.8 billion for Iran-linked front companies. This precision sanction aims to dismantle Iran's shadow-banking networks without penalizing the Egyptian parent bank, signaling a new phase in financial warfare with major implications for West Asian banking hubs.

RBI MPC to Hold Repo Rate as Inflation Nears 4% Target Amid Crude Oil, Monsoon Risks

The RBI's MPC meeting on August 5 is expected to maintain status quo on the repo rate. The article explains the key factors influencing this decision: inflation at the 4% target, rising crude oil prices, geopolitical tensions (US-Iran), monsoon deficit due to El Niño, mixed high-frequency growth indicators, and actions of other central banks. Students must understand the trade-offs in monetary policy for prelims and mains.

RBI to Launch Polymer Currency Notes in FY28: Higher Durability, 3-4x Life of Paper Notes

RBI Governor Sanjay Malhotra announced that polymer currency notes will be in circulation from the beginning of the next financial year (FY28). The move aims to enhance durability (3-4 times longer life than paper) and expand the RBI's capacity to meet growing economic needs. A pilot phase is underway to test performance under Indian conditions.

RBI Dy Governor: CBDC and ULI Adoption Rising, 12 States Digitise Land Records for Faster Loans

RBI Deputy Governor Rohit Jain announced that CBDC (Digital Rupee) and ULI (Unified Lending Interface) are moving beyond pilot stages into real-world usage, with 12 states already digitising land records. This signals a major push for financial inclusion, faster credit delivery, and digital public infrastructure, making it a high-priority topic for banking and economy sections in exams.

Global Agencies Upgrade India GDP Forecast to ~7%, RBI May Hike Repo Rate 25 bps as Inflation Pressures Build

Multiple global agencies (ADB, S&P, OECD, Moody's) have raised India's FY26 growth forecast to around 7%, driven by strong IIP, capex, and exports. However, inflation is expected to average 5.1% and the RBI may raise its policy rate by 25 bps, with farm sector risks from El Niño adding to uncertainty.

RBI's Concessional Forex Swap Facility Mobilises $40.82 Billion by July 31, 2026

The RBI's concessional swap facility has attracted $40.82 billion in forex inflows by July 31, 2026, with FCNR(B) deposits accounting for the bulk ($36.725 billion). This facility was announced on June 5 to strengthen balance of payments and incentivize capital inflows amid global uncertainties.