RBI & Monetary Policy (Money & Banking).
Syllabus: UPSC Pre GS1: Economic & Social Development; Mains GS3
RBI for UPSC: Hilton Young Commission, RBI Act 1934, Central Board, functions, MPC and inflation target, Section 7, surplus transfer and Jalan…
Monetary policy for UPSC: inflation targeting, the six-member MPC, repo, SDF, MSF, CRR, SLR, OMOs, sterilisation, transmission problems and real PYQs.
On 10 October 2026 RBI issued two circulars to curb speculation in the rupee: cancelled INR forex derivatives cannot be rebooked, the no-proof hedging limit falls from USD 100 million to USD 5 million, and banks must keep a 20% cash reserve on large dollar-buying hedges. RBI also opened a dollar window for three public sector oil companies.
UPSC angle: Prelims: FERR, USD 5 mn, OMC window, FEMA. · Mains GS-III: exchange rate management, external sector.
10 Oct 2026
On 25 September 2026 the Government, in consultation with the RBI, said it will borrow ₹7,86,000 crore through dated securities in the second half of 2026-27, using 23 weekly auctions. This includes ₹15,000 crore of Sovereign Green Bonds. Full-year dated borrowing is now put at ₹15,99,506 crore, below the Budget Estimate.
UPSC angle: Prelims: who manages government borrowing; what Sovereign Green Bonds fund. · Mains: Borrowing below BE: what it implies for fiscal deficit and bond yields.
25 Sep 2026
On 14 September 2026 the Government released price data for August 2026. Wholesale (WPI) inflation was 9.92 per cent, with fuel and power up 22.93 per cent. Retail (CPI) inflation, on the new base year 2024, was 4.82 per cent, and food inflation 5.95 per cent. Rural retail inflation (5.23 per cent) was higher than urban (4.31 per cent).
UPSC angle: Prelims: base years and compilers of WPI/CPI. · Mains: Why WPI and CPI diverge.
14 Sep 2026
Retail inflation measured by the Consumer Price Index (base 2024=100) was 4.45 per cent in July 2026, up from 4.38 per cent in June, MoSPI said on 12 August 2026. Rural inflation was 4.84 per cent and urban 3.96 per cent. Food inflation rose to 5.52 per cent. Silver jewellery, ginger and garlic saw the sharpest price rises.
UPSC angle: Prelims: CPI base year; FIT band.
12 Aug 2026
India's retail inflation (CPI, base 2024) rose to 4.38% in June 2026 from 3.93% in May, MoSPI said on 13 July. Food inflation was 5.32%. Rural inflation was 4.74% and urban 3.92%. Housing inflation was 2.10%. The July CPI is due on 12 August 2026.
UPSC angle: Prelims: CPI.
13 Jul 2026
With inflation this low, the pause signals RBI wants to see earlier cuts work through first.
UPSC angle: Prelims: repo, SDF, MSF. · Mains: monetary policy stance.
6 Feb 2026