CURRENT AFFAIRS

The Finance Commission of India (16th Finance Commission) has recommended a significant increase in financial transfers to rural local bodies for the period 2026–31.

The Pradhan Mantri Mudra Yojana (PMMY) has completed 11 years since its launch on April 8, 2015, marking a decade-long effort to empower micro and small entrepreneurs.

The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25% in its latest Monetary Policy Committee (MPC) meeting.

The Reserve Bank of India (RBI) has directed banks to avoid participation in Non-Deliverable Derivative (NDD) contracts involving the rupee, reflecting concerns over currency volatility and speculative pressures.

The Reserve Bank of India (RBI) has restricted banks from participating in Non-Deliverable Derivative (NDD) contracts to curb speculative activity in offshore currency markets.

The Union government has recently granted customs duty exemption on around 40 critical petrochemical products till June 30, 2026, as a temporary relief measure to address supply disruptions.

The Ministry of Textiles has extended the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme for exports of apparel/garments and made-ups till 30th September 2026.

Rising geopolitical instability in West Asia, particularly involving Iran, is impacting India’s economy through : 

• Surge in crude oil prices
• Depreciation of the rupee
• Pressure on fiscal and external balances

The Reserve Bank of India (RBI) has extended : 

• The export realisation and repatriation timeline to 15 months
• The export credit period to 450 days (till June 30, 2026)

The ongoing geopolitical tensions in West Asia involving Iran have raised concerns about food inflation in India, particularly through disruptions in fertiliser and agrochemical supply chains.