State Governments Borrow at 7.66% Yield Despite RBI Rate Cuts to 5.25%, Highlighting Debt and Liquidity Pressures

Maharashtra Proposes DELTA Act for Land Tokenisation; Asset Base Estimated at ₹50 Lakh Crore

Maharashtra is set to become India's first 'tokenised State' by proposing the DELTA Act, which creates a legal framework to convert land ownership into blockchain-based digital tokens. This could unlock an estimated ₹50 lakh crore in state land value and set a template for national adoption of Real World Asset (RWA) tokenisation across gold, bonds, and carbon credits.

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.

India's Q1 GDP Growth Surprises at 7.8%, Manufacturing at 9.2% Despite West Asia Crisis

India's economy defied expectations with a robust 7.8% real GDP growth in Q1 FY26, led by manufacturing at 9.2% and strong services. However, the RBI's 125 bps rate cuts and a GST cut helped, but headwinds like high oil prices (>$80/bbl), deficient monsoon, and slowing global services demand pose a serious stamina test. For exams, this is a classic 'resilience vs. vulnerability' case study for GS3.

RBI's Forex Swap Facility Attracts $136.3 Billion, Reserves at Record $729 Billion, Liquidity Surplus Rises

The RBI's measures to boost capital flows have massively exceeded expectations, with $136.3 billion in inflows through the forex swap facility, pushing forex reserves to a record $729 billion. However, this has created a liquidity surplus of Rs 6.7 lakh crore, complicating inflation management and looming rate hike decisions. This is critical for understanding India's external stability and the RBI's monetary policy challenges.

RBI Faces Liquidity Surplus of Rs 9.7 Lakh Cr, May Use CRR/OMO to Drain Excess

RBI is grappling with an unprecedented liquidity glut of Rs 9.7 lakh crore, driven by massive forex swap inflows of $136 billion. This surplus risks pushing money market rates below repo and stoking inflation. The RBI must now deploy tools like VRRR, OMO sales, or even a CRR hike to drain the excess without disturbing the bond market.

CAG Audit: Tamil Nadu's Public Debt Surges 309% in Decade, Repayment Pressure Mounts

A CAG audit reveals Tamil Nadu's outstanding public debt surged 309% over a decade (2015-16 to 2024-25), reaching ₹7.94 lakh crore. With 43% of debt due within 7 years and interest payments exceeding principal repayments, the state faces severe liquidity pressure and risks a debt-servicing cycle, limiting developmental spending.

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.