Banking and RBI
RBI discontinues Investment Fluctuation Reserve for banks following market-risk capital charge
18 May 2026 | Reserve Bank of India
The RBI issued final Amendment Directions on the Investment Fluctuation Reserve (IFR) on 18 May 2026, after examining feedback on its draft. The draft proposed dispensing with the IFR for bank categories that maintain a capital charge for market risk and follow the revised norms on classification, valuation and operation of the investment portfolio, with remaining Regulated Entity categories to comply with IFR as on balance sheet dates instead of continuously.
The Hindu BusinessLine reported that, with effect from 18 May, the commercial bank directions say the IFR requirement 'has been discontinued', and that the IFR balance as of 17 May would be transferred below the line to reserves.
Key facts- Issued: 18 May 2026, final Amendment Directions
- IFR dropped for banks with market-risk capital charge and revised investment norms
- Other REs: comply with IFR as on balance sheet dates
- Basis: draft feedback examined; harmonised across RE categories
Exam takeaway: The IFR is a reserve banks built from investment gains to cushion losses on investments.
Quick revision: RBI (18 May 2026): IFR requirement discontinued for banks under revised investment-portfolio norms; others on balance sheet dates.
Reserve Bank of India original sourceBanking and RBI
RBI keeps countercyclical capital buffer inactive after reviewing indicators
18 May 2026 | Reserve Bank of India
The RBI said on 18 May 2026, after a review and empirical analysis of CCyB indicators, that it is not necessary to activate the Counter-Cyclical Capital Buffer at this point in time.
The framework in the Commercial Banks - Prudential Norms on Capital Adequacy Directions, 2025 provides that the CCyB would be activated as and when circumstances warrant, normally pre-announced, with credit-to-GDP gap as the main indicator.
Key facts- Decision: CCyB need not be activated now
- Date: 18 May 2026
- Main indicator: credit-to-GDP gap
- Framework: Prudential Norms on Capital Adequacy Directions, 2025
Exam takeaway: CCyB is an extra capital cushion banks build in good times to absorb losses in downturns.
Quick revision: RBI 18 May 2026: no need to activate CCyB now; credit-to-GDP gap is main indicator.
Reserve Bank of India original sourceNational and International Affairs
V. D. Satheesan sworn in as Kerala Chief Minister with 20 Ministers
18 May 2026 | The Hindu
The Hindu reported that V. D. Satheesan was sworn in as Kerala's Chief Minister along with 20 Ministers on Monday, 18 May 2026 at the Central Stadium, Thiruvananthapuram. Governor Rajendra Vishwanath Arlekar administered the oath.
The Hindu's live report lists 11 Congress Ministers and five Indian Union Muslim League Ministers among those sworn in.
Key facts- Sworn in: 18 May 2026, Central Stadium, Thiruvananthapuram
- Oath administered by: Governor Rajendra Vishwanath Arlekar
- Council: Chief Minister plus 20 Ministers
- Announced as CM on 14 May
Exam takeaway: A Governor administers the oath to a State's Chief Minister.
Quick revision: Kerala: V D Satheesan sworn in CM with 20 ministers, 18 May 2026 (Hindu).
The Hindu original sourceAppointments, Awards and Important Days
Saurabh Vijay assumes charge as CEO of UIDAI
18 May 2026 | Press Information Bureau
PIB said Saurabh Vijay assumed charge as Chief Executive Officer of the Unique Identification Authority of India on 18 May 2026. He is a 1998-batch IAS officer of the Maharashtra cadre and a civil engineer from IIT-Delhi.
He was earlier Principal Secretary (Expenditure) in Maharashtra's Finance Department and has served as Director at the President's Secretariat and as Advisor to the Executive Director at the World Bank.
Key facts- Post: CEO, UIDAI
- Officer: Saurabh Vijay, IAS 1998, Maharashtra cadre
- Joined from: Principal Secretary (Expenditure), Maharashtra
- Date: 18 May 2026
Exam takeaway: UIDAI issues Aadhaar numbers.
Quick revision: Saurabh Vijay assumes charge as UIDAI CEO, 18 May 2026 (PIB).
Press Information Bureau original source