Banking and RBI
RBI MPC (62nd meeting, 3 to 5 August 2026): policy repo rate and stance
5 August 2026 | Reserve Bank of India
The Monetary Policy Committee held its 62nd meeting from 3 to 5 August 2026 under Governor Sanjay Malhotra. The MPC voted unanimously to keep the policy repo rate under the LAF unchanged at 5.25 per cent. The SDF rate remains 5.00 per cent and the MSF rate and Bank Rate remain 5.50 per cent. The MPC decided to continue with the neutral stance.
Real GDP growth for 2026-27 is projected at 6.7 per cent, with Q1 at 7.0, Q2 at 6.4, Q3 at 6.5 and Q4 at 6.8 per cent. CPI inflation for 2026-27 is projected at 5.0 per cent, with Q2 at 4.7, Q3 at 5.9 and Q4 at 5.5 per cent. CPI inflation rose to 4.4 per cent in June 2026 after 16 months below target.
Key facts- Policy repo rate: 5.25% (unchanged, unanimous)
- SDF: 5.00%; MSF and Bank Rate: 5.50%
- GDP growth projection 2026-27: 6.7%
- CPI inflation projection 2026-27: 5.0%
Exam takeaway: The MPC has six members and the Governor chairs it.
Quick revision: MPC (3 to 5 August 2026): repo rate unchanged; stance neutral (RBI).
Reserve Bank of India original sourceBanking and RBI
RBI to resume on-tap licensing of Urban Co-operative Banks
5 August 2026 | Reserve Bank of India
In its Statement on Developmental and Regulatory Policies of 5 August 2026, the RBI said that, after analysing feedback on the discussion paper on licensing of UCBs published on 13 January 2026 following a two-decade pause, it has decided to resume licensing of UCBs on an on-tap basis. Draft guidelines will be issued shortly for consultation.
The Statement also covers a review of the guidelines on Concentration Risk Management for Rural Co-operative Banks, which are governed by the Credit Monitoring Arrangement instructions of 2008.
Key facts- Discussion paper on UCB licensing: 13 January 2026
- Decision: resume UCB licensing on an on-tap basis
- Draft guidelines: to be issued shortly
- Also: review of concentration risk norms for Rural Co-operative Banks
Exam takeaway: On-tap licensing means applications can be made at any time.
Quick revision: RBI to resume UCB licensing on tap (RBI, 5 August 2026).
Reserve Bank of India original sourceNational and International Affairs
Prime Minister marks seven years since the abrogation of Articles 370 and 35(A)
5 August 2026 | Press Information Bureau
PIB said Prime Minister Narendra Modi marked seven years since the abrogation of Articles 370 and 35(A) on 5 August 2019, saying the people of Jammu and Kashmir and Ladakh have seen wide-ranging transformation, with expanded infrastructure and new opportunities in education, healthcare, entrepreneurship and sports.
He noted that this year's anniversary coincides with the 125th birth anniversary of Dr Syama Prasad Mookerjee.
Key facts- Anniversary: seven years since 5 August 2019
- Articles abrogated: 370 and 35(A)
- Regions: Jammu and Kashmir, and Ladakh
- Also marked: 125th birth anniversary of Dr Syama Prasad Mookerjee
Exam takeaway: Articles 370 and 35(A) were abrogated on 5 August 2019.
Quick revision: PM marks seven years of Article 370 abrogation (PIB, 5 August 2026).
Press Information Bureau original source