RBI Resumes UCB Licensing on 'On Tap' Basis After 20+ Years, Reviews RCB Norms

RBI Resumes UCB Licensing After 2 Decades: ₹300 Cr Capital, 12% CAR Mandated

RBI has ended its two-decade-long moratorium on issuing new licenses to Urban Cooperative Banks (UCBs) with a stringent on-tap framework. The new policy mandates a minimum capital of ₹300 crore, a capital adequacy ratio of 12%, and a net NPA of less than 3% to ensure only strong, well-governed entities enter the sector, aiming to deepen financial inclusion for MSMEs.

RBI Net Sells $14.9 Bn (Jan-May 2026) for Rupee Stability; FCNR(B) Swap, ECB Boost Inflows

RBI's net sale of $14.9 billion in the first five months of 2026 underscores its interventionist approach to curb excessive rupee volatility, a key topic for economy-focused exams. The accompanying measures like the FCNR(B) swap facility and ECB liberalisation are crucial for understanding forex management and capital inflows.

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.

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.

RBI Inflation Targeting at 10 Years: Flat Phillips Curve, Persistent Household Expectation Gap

India's decade-long inflation targeting framework shows limited effectiveness: a flat Phillips curve means rate hikes suppress output and employment without commensurate inflation reduction, while household expectations remain stubbornly above RBI's 4% target. This challenges the core assumption of the monetary policy framework.

RBI Directs Tata Sons to List via IPO Under NBFC-Upper Layer Norms

The RBI has rejected Tata Sons' application to remain an unregistered Core Investment Company, mandating it to go public as an NBFC-Upper Layer. This forces a listing on stock exchanges, unlocking value for minority shareholders including the Shapoorji Pallonji group holding 18.3% stake.

RBI Issues Comprehensive Loan Recovery Rules: Phone Lock Allowed After 60 Days, Compensation ₹250/hr for Delayed Restoration

RBI has issued a consolidated framework for loan recovery by commercial banks, effective January 1, 2027. For the first time, it regulates technology-based restrictions on financed devices (smartphones/laptops) — allowing phone locking after 60 days of default, but with strict safeguards including ₹250/hour compensation for delayed restoration. This is a high-impact regulatory reform for Banking exams and UPSC GS3.

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.