Money & Banking (Indian Economy).
Syllabus: UPSC Pre GS1: Economic & Social Development; Mains GS3
UPI for UPSC: NPCI, how a UPI payment works, zero MDR, UPI Lite, credit on UPI, international links, market share cap, fraud…
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.
Financial inclusion for UPSC: meaning, PMJDY and JAM, payments and small finance banks, UPI, RBI's FI-Index sub-indices, gaps that remain and real…
The Department of Financial Services will run a nationwide campaign from 21 October to 31 December 2026 to saturate financial inclusion schemes in 2.70 lakh gram panchayats and urban local bodies. Bank camps will enrol people in PMJJBY, PMSBY and APY, open Jan Dhan accounts, finish re-KYC and nominations, and spread awareness on digital frauds and unclaimed deposits.
UPSC angle: Prelims: scheme parameters of PMJJBY, PMSBY, APY, PMJDY. · Mains GS-III: inclusive growth and financial inclusion.
20 Oct 2026
On 14 October 2026 the Cabinet Committee on Economic Affairs approved 10955230 Canada Inc., a Fairfax Financial Holdings entity, as strategic buyer of 60.72% of IDBI Bank for about Rs. 52,878 crore. The Government sells 30.48% and LIC 30.24%. The winning bid of Rs. 81 a share beat the Rs. 75.99 benchmark.
UPSC angle: Prelims: stake split, residual holdings, PCA dates, valuation methods. · Mains GS-III: disinvestment, bank privatisation, FDI in financial services.
14 Oct 2026
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 25 September 2026 the MSME Ministry said CGTMSE guarantee cover is now live on TReDS, the RBI-regulated platforms where small firms sell their unpaid invoices. Available on M1xchange, RXIL and DTX (KredX), it covers 75% of the defaulted amount when both buyer and seller are Micro or Small Enterprises.
UPSC angle: Prelims: TReDS platforms; CGTMSE.
25 Sep 2026
The Government clarified on 15 September 2026 that under the new UPI framework all person-to-person payments stay free, and so do merchant payments up to ₹2,000. A merchant discount rate (MDR) of 0.4 per cent applies only to merchant payments above ₹2,000, capped at ₹300. About 96 per cent of merchant transactions will not be affected.
UPSC angle: Prelims: MDR meaning; PSS Act 2007. · Mains: Who should pay for digital public infrastructure?
15 Sep 2026