RBI Doubles Collateral-Free MSME Loan Limit to ₹2 Million, Permits Bank Lending to REITs

UPI@10 Years: 86% of Digital Transactions, Government Allows Merchant Fees Under PSS Act Amendment

UPI completes 10 years with 86% of India's digital transactions, but the zero-MDR model is ending. The government has amended the PSS Act to allow merchant fees, aiming to fund the next growth phase in rural areas and cross-border payments. Key challenge: balancing inclusion with sustainability.

New UPI MDR: Flat Rs 5 Charge on Railway Bookings Above Rs 2,000 from Oct 15, 2026

From October 15, 2026, UPI payments above Rs 2,000 for railway tickets will attract a flat Rs 5 Merchant Discount Rate (MDR) instead of the general 0.4% fee. Crucially, this charge is on the merchant side and will not be passed to passengers. This special category concession makes railway ticketing cheaper to process than regular merchant payments.

IIP Growth Hits 7.3% in June 2026, Highest in 23 Months; Consumer Demand Weak

India's IIP grew 7.3% YoY in June 2026, the highest in 23 months. However, the growth is driven by capital and infrastructure goods due to government spending, while consumer goods (especially non-durables) show weakness, highlighting a demand-side slowdown amid high prices.

SEBI Recognises Blue Bonds as Sustainable Finance; First ₹1,000 Cr Issuance Under Sagarmala

India's first blue bond issuance of ₹1,000 crore under the Sagarmala programme marks a shift towards capital markets for maritime infrastructure financing. SEBI has recognised blue bonds as sustainable finance instruments, opening a new asset class for exam focus on blue economy, sustainable finance, and government's PM GatiShakti initiative.

RBI Relaxes FCNR(B) and NRE Deposit Rates, Doubles PROI Equity Limits to Attract $60-70 Billion Inflows

RBI has announced a set of measures to strengthen the rupee by attracting foreign capital, including temporarily relaxing interest rate restrictions on FCNR(B) and NRE deposits, doubling investment limits for PROIs, and exempting FIIs from income tax on G-Secs. These reforms could attract $60-70 billion in foreign inflows, boosting rupee stability and deepening India's bond market.

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.