Banking and RBI
RBI issues draft Interest Rates on Loans and Advances Directions, 2026 for public comments
12 August 2026 | Reserve Bank of India
Following the announcement in the Statement on Developmental and Regulatory Policies of 5 August 2026, the RBI issued the draft Reserve Bank of India (Interest Rates on Loans and Advances) Directions, 2026 for public comments on 12 August 2026.
The RBI said current interest rate instructions on advances apply mainly to commercial banks (including small finance banks and local area banks), with instructions for NBFCs, All India Financial Institutions, RRBs, UCBs and rural co-operative banks being largely separate. The draft covers these entities.
Key facts- Draft issued: 12 August 2026
- Announced in: Statement on Developmental and Regulatory Policies, 5 August 2026
- Objectives: monetary policy transmission, credit risk pricing, fair treatment of borrowers
- Stage: draft, open for public comments
Exam takeaway: A draft is not final; comments are invited before issue.
Quick revision: Draft Interest Rates on Loans and Advances Directions (RBI, 12 August 2026).
Reserve Bank of India original sourceEconomy and Finance
Government announces Rs 30,000 crore conversion/switch of securities, auction on 17 August
12 August 2026 (announcement) | Reserve Bank of India
The Government of India announced a conversion/switch of its securities through auction for an aggregate Rs 30,000 crore (face value). The auction is scheduled for 17 August 2026.
Source securities include 8.26% GS 2027 (Rs 2,000 crore) and 7.88% GS 2030 (Rs 5,000 crore); destination securities include 7.19% GS 2060 and 6.67% GS 2035.
Key facts- Aggregate amount: Rs 30,000 crore (face value)
- Auction date (scheduled): 17 August 2026
- Example source: 8.26% GS 2027
- Example destination: 7.19% GS 2060
Exam takeaway: A switch exchanges short-dated securities for longer ones to smooth the maturity profile.
Quick revision: Rs 30,000 crore G-Sec switch announced (RBI, 12 August 2026).
Reserve Bank of India original sourceGovernment Schemes
Parliament passes National Co-operative Development Corporation (Amendment) Bill, 2026
12 August 2026 | Akashvani News (All India Radio)
Akashvani reported that Parliament passed the NCDC (Amendment) Bill, 2026 with Rajya Sabha approval on 12 August 2026; the Lok Sabha had already passed it. Minister of State for Cooperation Murlidhar Mohol moved the bill.
It amends the National Co-operative Development Corporation Act, 1962, allowing the Corporation to undertake activities in industrial goods, state governments to extend NCDC funding to any entity engaged in co-operative development, and the Corporation to give loans and grants directly to any co-operative society or entity.
Key facts- Bill: NCDC (Amendment) Bill, 2026
- Amends: NCDC Act, 1962
- Moved by: MoS Cooperation Murlidhar Mohol
- Rajya Sabha approval: 12 August 2026
Exam takeaway: NCDC is the statutory body financing the co-operative sector.
Quick revision: NCDC (Amendment) Bill, 2026 passed by Parliament (Akashvani, 12 August 2026).
Akashvani News (All India Radio) original source