Policy
Sugarcane FRP hiked to Rs 365/quintal for 2026-27 season
Farmers will receive a premium of ₹3.56 per quintal for every 0.1% increase in recovery above this level, with a corresponding reduction for lower recovery.
Rare earths, PCBs among 40 sub-sectors on FDI fast track
As per the updated standard operating procedure (SOP) for processing FDI applications, the government has also rolled out reporting guidelines for investments in India from a company having any direct or indirect ownership by a citizen or an entity of a country sharing a land border with India.
RBI releases norms for banks holding non financial assets
The Reserve Bank of India has released new draft rules. Banks can now hold specific non-financial assets only to recover bad loans. These assets must be sold within seven years. Selling them back to borrowers is prohibited. This aims for transparency and better recovery. The rules are open for public comment until May 26.
Inflation target can be cut if growth, stable prices persist: RBI deputy governor
India might lower its inflation target and narrow the tolerance band. This consideration hinges on sustained robust economic growth and stable inflation over the next five years. The Reserve Bank of India's Deputy Governor Poonam Gupta highlighted this possibility. However, persistent global challenges may necessitate retaining the current framework's flexibility. The final decision will depend on evolving economic outcomes.
Government specifies 40 sub-sectors for faster clearance of FDI proposals from land-bordering nations
India is fast-tracking foreign investment proposals from China and neighboring nations. Forty key manufacturing sub-sectors, including rare earth magnets and electronics, will now receive clearances within 60 days. This move aims to boost domestic production. However, Indian citizens must maintain majority ownership and control in these ventures. New reporting guidelines are also in place for investments from these countries.
PM's economic advisory panel flags demand surge for caregivers, seeks policy overhaul for sector
India's Prime Minister's economic advisory panel recommends a major revamp of the care sector. Demand for caregivers is expected to surge past 30 million by 2050. The panel suggests a dedicated fund and building a skilled workforce. Corporate social responsibility funds could be directed towards care projects. This aims to create jobs and support families.
DPIIT issues updated SOP for processing FDI applications
The Department for Promotion of Industry and Internal Trade (DPIIT) has streamlined Foreign Direct Investment (FDI) proposal processing with an updated Standard Operating Procedure (SOP). Decisions will now be made within 12 weeks, excluding applicant response times. The process is entirely paperless, with applications forwarded to the Ministry of External Affairs for border country investments.
India’s state election results are out. Is cash inflow next? Here’s a warning
India’s state elections: New election wins in Indian states bring populist promises that could strain finances. Economists warn of wider fiscal deficits as states commit to cash handouts and welfare benefits. This trend may impact spending on infrastructure and jobs. The fiscal deficit ceiling of 3% is now seen as a floor. This spending race is expected to continue ahead of future polls.
BJP gains in Bengal may accelerate reforms push amid economic headwinds
The dominant National Democratic Alliance constituent at the Centre has registered its maiden victory in West Bengal, retained Assam and Puducherry (with alliance partners) and won a record three seats in Kerala. It won only one seat in Tamil Nadu, against four in 2021.
RBI flags false loan waiver claims by some, warns of legal action
RBI cautioned such campaigns can mislead borrowers into believing their obligations can be written off outside formal processes, which could affect repayment behaviour and weaken credit discipline. “Such campaigns not only mislead the general public but also interfere with the orderly functioning of the credit system of the country,” it said.
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RBI’s Rohit Jain takes charge, assumes key portfolios
Reserve Bank of India has a new deputy governor, Rohit Jain. He took charge on Monday for a three-year term. Jain now oversees many key departments. These were previously managed by T Rabi Sankar. Shirish Chandra Murmu will handle currency management and payment systems. Jain's extensive portfolio includes IT, fintech, and financial markets.
RBI clears 99 pc applications within deadline under Citizen's Charter
The Reserve Bank of India reports significant progress in processing applications. In April 2026, the central bank successfully handled 99.7 percent of applications within the set deadlines. This achievement reflects efficient operations across various functions. A large number of applications were processed, with most meeting the stipulated timelines. The RBI continues to focus on timely service delivery to its stakeholders.
No government financial support planned for fuel retailers' petrol, diesel, ATF losses
The Indian government has declared its stance not to offer financial assistance to its state-run fuel companies, which are currently in the red due to selling fuels like petrol and diesel at a discount. Despite the pressure of escalating crude oil prices, retail costs for these fuels have stayed steady.
RBI cautions against misleading campaigns promising loan waivers
Attention all borrowers! The Reserve Bank of India has flagged a concerning trend involving fraudulent loan waiver initiatives. These duplicitous campaigns claim to erase debts owed to banks and non-banking financial companies (NBFCs) but are merely traps set by dishonest individuals aiming to profit through false promises and upfront fees.
ADB should step up capital expansion measures, adopt 'more transformational approach': MoS Finance
In his address at the ADB Annual Meetings, Pankaj Chaudhary also said that the multilateral funding institution should adopt a "more transformational approach" to support sustainable and resilient regional development amid the current geopolitical challenges.
Supervision must look beyond formal compliance, says RBI Deputy Guv Swaminathan J
RBI Deputy Governor Swaminathan J. warns that weak oversight in banking can lead to hidden risks. He stresses that supervision must go beyond reported numbers to understand actual business operations. This approach is crucial for protecting depositors and the wider economy. Digital banking brings new challenges requiring judgment and a sense of public purpose.