1 April 2026 · Daily Current Affairs

Banking and RBI

RBI bars banks from offering rupee non-deliverable forward contracts

1 April 2026 | Reserve Bank of India notification, as reported by Business Standard

On Wednesday, 1 April 2026, the Reserve Bank of India tightened oversight of the foreign exchange market by prohibiting banks from offering rupee non-deliverable forward (NDF) contracts to resident and non-resident corporate clients. Business Standard reported that the aim was to curb speculative activity and stabilise the currency amid volatility. The RBI notification said Authorised Dealers shall not offer non-deliverable derivative contracts involving INR to resident or non-resident users.

Authorised Dealers may continue to offer deliverable foreign exchange derivative contracts for hedging, provided the user does not undertake offsetting non-deliverable derivative positions, and they may ask for information or documents to check this. Banks must also not let a user rebook any rupee foreign exchange derivative contract, deliverable or not, that is cancelled after the date of the instructions.

The report added that the move followed the RBI's cap on banks' daily net open positions in the onshore deliverable rupee market at USD 100 million, announced on Friday and to be implemented by 10 April. Business Standard said the rupee had breached 95 per dollar intraday on Monday before the RBI intervened to pull it back below 94.

Exam takeaway: An NDF is settled in cash, not by delivering the currency; the RBI's ban targets speculation through this route.

Quick revision: RBI 1 Apr 2026: banks barred from rupee NDFs; no rebooking of cancelled contracts.

Economy and Finance

Income-tax Act, 2025 comes into force

1 April 2026 | Press Information Bureau (Ministry of Finance)

The Income-tax Act, 2025 came into force on 1 April 2026. PIB describes it as a landmark reform of India's direct tax framework, replacing the six-decade-old Income-tax Act, 1961. It aims at simpler language, a streamlined structure and a reader-friendly presentation, without changing the underlying tax policy.

Parliament passed the Bill on 12 August 2025 and the President gave assent on 21 August 2025. The Central Board of Direct Taxes notified the Income-tax Rules, 2026 on 20 March 2026 to operationalise the Act, along with simplified and standardised forms.

Exam takeaway: The new Act changes the law's language and structure, not the tax policy itself.

Quick revision: Income-tax Act, 2025 in force 1 Apr 2026; replaces the 1961 Act.

Economy and Finance

CBIC announces one-time relief for SEZ manufacturing units selling in India

1 April 2026 | Press Information Bureau (Ministry of Finance)

Following the Union Budget 2026-27 announcement, the Central Board of Indirect Taxes and Customs (CBIC) introduced on 1 April 2026 a special one-time relief for eligible manufacturing units in Special Economic Zones (SEZs). It lets them sell to the Domestic Tariff Area (DTA) at concessional rates of customs duty during ongoing global trade disruptions.

The relief runs from 1 April 2026 to 31 March 2027 through an exemption notification under section 25 of the Customs Act, 1962 (Notification No. 11/2026-Customs dated 31 March 2026). Units that were operational on 31 March 2025 are eligible. A minimum 20 per cent value addition is required, DTA sales are capped at 30 per cent of past peak export performance in any of the three preceding financial years, and select sensitive sectors are excluded.

Exam takeaway: SEZ units normally export; this relief lets them sell in the domestic market at concessional duty for one year.

Quick revision: CBIC: one-time SEZ-to-DTA relief, 1 Apr 2026 to 31 Mar 2027.

Appointments, Awards and Important Days

Bureaucratic reshuffle: new I&B secretary, DGCA and DFS secretary

31 March 2026 (order); reported 1 April 2026 | Government of India, as reported by The Times of India

The Times of India reported on 1 April 2026 that the government on Tuesday appointed Chanchal Kumar, an IAS officer of the Bihar cadre, as the new information and broadcasting secretary, swapping places with Sanjay Jaju. Sanjay Lohiya was designated secretary of the Department of Financial Services (DFS) and will take over when M Nagaraju retires on 31 May.

Vir Vikram Yadav was appointed Director General of Civil Aviation (DGCA), replacing Faiz Ahmed Kidwai, who becomes additional secretary in the personnel department. Rohit Kansal, a 1995 batch AGMUT cadre officer, was named rural development secretary. The order covered 12 secretaries and 27 additional secretaries.

Exam takeaway: DFS is the Finance Ministry department that oversees banking and insurance, so its secretary is a frequent banking-exam question.

Quick revision: I&B: Chanchal Kumar; DFS: Sanjay Lohiya; DGCA: Vir Vikram Yadav.

Appointments, Awards and Important Days

Lt Gen Dhiraj Seth takes charge as Vice Chief of the Army Staff

1 April 2026 | The Hindu

Lieutenant General Dhiraj Seth assumed charge as the Vice Chief of the Army Staff on Wednesday, 1 April 2026, after the Indian Army announced a series of top-level appointments across key operational commands, according to The Hindu.

An alumnus of the National Defence Academy, Khadakwasla, he was commissioned into the Armoured Corps in December 1986. He received the Guard of Honour at the South Block Lawns in New Delhi.

Exam takeaway: The Vice Chief of the Army Staff is the second-highest post in the Indian Army.

Quick revision: VCOAS: Lt Gen Dhiraj Seth took charge 1 Apr 2026.