RBI Withdraws ₹2 Lakh Crore via 7-Day VRRR at 5.24% Cut-Off, Absorbs Excess Liquidity

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.

RBI to Launch Polymer Banknotes of ₹10 and ₹20 from FY28, Trial of 100 Crore Pieces Each

The RBI will introduce polymer (plastic) banknotes of ₹10 and ₹20 denominations from the start of FY28 to enhance durability and expand currency capacity. A trial of 100 crore pieces of each denomination (total ₹3,000 crore) will be conducted, with field tests for Indian climate conditions before full-scale circulation.

RBI Proactively Assists UCBs: On-tap Licensing, Gold Loan Limits Raised, Deposits ₹6 Lakh Crore

Union Cooperation Minister Amit Shah endorsed RBI's proactive support for urban cooperative banks, including on-tap licensing and raised gold loan limits. This signals a new era of cooperation between UCBs and the central bank, crucial for the sector's growth and financial inclusion.

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 to Launch Polymer Banknotes of Rs 10 and Rs 20 from FY28: 100 Crore Pieces Each

The RBI plans to introduce polymer banknotes in Rs 10 and Rs 20 denominations from FY28 to enhance durability and expand capacity. This move has significant environmental benefits and security advantages, but raises concerns about import dependency. Students should note the global adoption, cost-benefit analysis, and legal tender definitions.

UPI Completes 10 Years: Transaction Volume Up 13,000-Fold to 24,162 Crore

UPI completes 10 years with explosive growth: transaction volume up 13,000-fold from 1.78 crore (FY17) to 24,162 crore (FY26). Value rose 4,000-fold to ₹314 lakh crore. UPI now accounts for 49% of global real-time payments. This milestone reinforces India's digital public infrastructure and is crucial for exams on digital economy, financial inclusion, and NPCI.

RBI Rejects Tata Sons' CIC Surrender: Mandatory IPO at ₹10 Lakh Crore Valuation

RBI's rejection of Tata Sons' request to surrender its CIC registration mandates a public listing, potentially one of India's largest IPOs. The valuation could exceed ₹10 lakh crore, with key implications for Tata Trusts, SP Group, and minority shareholders. This decision marks a fundamental shift in Tata group's ownership structure and governance.

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.