8 October 2026
The Reserve Bank of India issued its Statement on Developmental and Regulatory Policies along with the monetary policy on October 7, 2026.
Interoperability will be introduced among NBFC Account Aggregators, so that a customer can access and share financial information from different Financial Information Providers through any NBFC-AA of choice.
Depositories regulated by SEBI will also be allowed to include bank deposit account information in their Consolidated Account Statement through NBFC-AAs.
Demat account holders will thus see their demat holdings and bank deposits in one place, and customers without a demat account can still get a consolidated view through an NBFC-AA.
The target date set for this measure is December 31, 2026.
The Reserve Bank will also set up a Technical Consultative Committee for Financial Markets as a forum for structured engagement with market participants and stakeholders.
Its scope covers the money market, the government securities market and the foreign exchange market, along with their derivative markets and infrastructure.
The composition and terms of reference of the committee will be notified separately.
Statement date:
October 7, 2026
Target date for AA interoperability:
December 31, 2026
New committee:
Technical Consultative Committee for Financial Markets
Why it matters for exams: The Account Aggregator framework and RBI's Statement on Developmental and Regulatory Policies are standing favourites in banking and civil service papers.
Kerala PSCUPSCBank
In plain words
NBFC-AA Non-Banking Financial Company - Account Aggregator — An RBI-registered entity that collects a customer's financial information from providers and shares it with consent.
Consolidated Account Statement Consolidated Account Statement — A single statement that shows a holder's securities holdings across depositories.
8 October 2026
On October 7, 2026 the Reserve Bank of India released the Reserve Bank of India (Commercial Banks - Credit Valuation Adjustment Framework) Directions, 2026.
The Directions set out instructions on the capital charge for Credit Valuation Adjustment risk for commercial banks.
Draft CVA Directions had been issued on August 7, 2026 and feedback was invited till August 28, 2026; the draft SA-CCR amendment directions had been issued on June 10, 2026 with feedback invited till July 1, 2026.
On the same day the Reserve Bank issued the Reserve Bank of India (Commercial Banks - Forthcoming Instructions) Amendment Directions, 2026 on the Standardised Approach for Counterparty Credit Risk.
The amendments clarify the scope of counterparty credit risk for banking book and trading book exposures and deal with multiple margin agreements and multiple netting sets.
They give guidance for transactions where a bank acts as a clearing member of SEBI-recognised stock exchanges in equity and commodity derivatives.
They also cover deferment of option premium, computation of effective notional for options, and disclosure templates for SA-CCR.
Both sets of instructions come into effect from April 1, 2027.
Directions released:
October 7, 2026
Effective from:
April 1, 2027
CVA draft Directions issued:
August 7, 2026
Entities covered:
Commercial banks
Why it matters for exams: Bank capital norms and the vocabulary of counterparty credit risk appear in banking recruitment and economy sections.
Kerala PSCUPSCBank
In plain words
CVA Credit Valuation Adjustment — An adjustment to the value of a derivative for the risk that the counterparty may default.
SA-CCR Standardised Approach for Counterparty Credit Risk — A standard method banks use to measure exposure from derivative transactions.
8 October 2026
The Reserve Bank of India has placed on its website the report of the Advisory Committee on Ways and Means Advances to State Governments.
The committee was chaired by Shri I S N Prasad, former Additional Chief Secretary, Government of Karnataka.
Its terms of reference included a review of state-wise Ways and Means Advances limits and of the other financial accommodation facilities available to States.
The report was released on the Reserve Bank's website on September 29, 2026.
The Reserve Bank has said the committee has made various recommendations, which shall be examined by it.
Ways and Means Advances are temporary advances the Reserve Bank gives a State to bridge mismatches between its receipts and payments.
Chairman:
Shri I S N Prasad
Chairman's former post:
Additional Chief Secretary, Government of Karnataka
Report placed on website:
September 29, 2026
Why it matters for exams: Ways and Means Advances and the RBI's role as banker to the States are recurring questions in economy and polity papers.
Kerala PSCUPSCBank
In plain words
WMA Ways and Means Advances — Temporary advances from the Reserve Bank to the Centre or a State to tide over short-term mismatches in cash flow.
8 October 2026
A Supreme Court bench of Justice Vikram Nath and Justice Sandeep Mehta directed the Union of India to constitute a committee on pharmaceutical marketing practices.
The committee is to consider suggestions and representations received and then make its recommendations to the Union.
The case is Federation of Medical and Sales Representatives Associations of India and others versus Union of India and others, W.P.(C) No. 323 of 2021.
Senior Advocate Sanjay Parikh appeared for the petitioners and Solicitor General Tushar Mehta for the respondents. The Court had reserved orders on September 8, 2026.
The petition seeks statutory force for the Uniform Code for Pharmaceutical Marketing Practices, issued by the Department of Pharmaceuticals, which at present is a voluntary code.
The code bars gifts, travel, hospitality and cash or monetary grants to physicians and their family members.
The Union told the Court it is considering the recommendation of the Parliamentary Standing Committee on Health and Family Welfare, in its 45th Report, to give the code statutory backing.
The matter is listed again on 29 January to consider the Union's compliance affidavit.
Bench:
Justice Vikram Nath and Justice Sandeep Mehta
Case:
W.P.(C) No. 323/2021
Code involved:
Uniform Code for Pharmaceutical Marketing Practices
Standing Committee report cited:
45th Report
Why it matters for exams: The Uniform Code for Pharmaceutical Marketing Practices and the right to health under Article 21 link health policy with constitutional law.
Kerala PSCUPSC
In plain words
UCPMP Uniform Code for Pharmaceutical Marketing Practices — A code issued by the Department of Pharmaceuticals on how drug companies and their representatives may market medicines.
NMC National Medical Commission — The statutory regulator of medical education and practice in India.
8 October 2026
On October 7, 2026 a bench of Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V Mohana was told of an application to recall a split verdict of September 23, 2026.
Senior Advocate Gopal Sankaranarayanan mentioned the application before the bench, and the Chief Justice said the Court would examine it and take a call.
The September 23 verdict was on whether challenges to the law governing appointment of the Chief Election Commissioner and Election Commissioners should go to a larger bench.
That bench comprised Justice Dipankar Datta and Justice Satish Chandra Sharma. Justice Datta rejected the Centre's request for a larger bench reference while Justice Sharma supported it, and they left it to the Chief Justice to consider constituting a Constitution Bench.
The petitions challenge Sections 7 and 8 of the Chief Election Commissioner and Other Election Commissioners (Appointment, Conditions of Service and Term of Office) Act, 2023.
Those provisions set up a selection committee of the Prime Minister, the Leader of the Opposition in the Lok Sabha and a Union Cabinet Minister.
The petitions also question the appointments of Chief Election Commissioner Gyanesh Kumar and Election Commissioner Sukhbir Singh Sandhu.
Split verdict date:
September 23, 2026
Provisions challenged:
Sections 7 and 8 of the 2023 Act
Selection committee:
Prime Minister, Leader of the Opposition in the Lok Sabha, a Union Cabinet Minister
Bench hearing the mention:
CJI Surya Kant, Justice Joymalya Bagchi, Justice V Mohana
Why it matters for exams: The 2023 Act on appointing Election Commissioners and the composition of its selection committee are core polity questions.
Kerala PSCUPSC
In plain words
CEC Chief Election Commissioner — The head of the Election Commission of India, a body established under Article 324.
Constitution Bench Constitution Bench — A bench of at least five Supreme Court judges that hears substantial questions of constitutional law.
8 October 2026
A Supreme Court bench of Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V Mohana heard the Shiv Sena symbol dispute on October 7, 2026.
The case is Sunil Prabhu versus Eknath Shinde, SLP(C) Nos. 1644-1662 of 2024, arising from a decision of the Election Commission of India under Paragraph 15 of the Election Symbols Order.
The Commission had recognised the Eknath Shinde faction as the Shiv Sena and allowed it the bow and arrow symbol; Uddhav Thackeray challenged that decision.
Justice Bagchi noted that of four available courses, the Commission considered three, namely the party constitution, an organisational majority test and a legislative majority test.
It did not consider the fourth course of declining to recognise either faction, which would have meant withholding the symbol from both.
Justice Bagchi described that fourth course as an exceptional, rarest of rare one, but said the Commission had not explained why it was ruled out.
He noted that the Constitution Bench in Subhash Desai versus Principal Secretary, Governor of Maharashtra had described the legislative test as weak and debatable.
He stressed that the Court was examining the manner in which the Commission exercised its discretion, not substituting its own view on the merits.
Case:
Sunil Prabhu v. Eknath Shinde, SLP(C) Nos. 1644-1662/2024
Provision involved:
Paragraph 15 of the Election Symbols Order
Options before the Commission:
Four, of which three were considered
Precedent cited:
Subhash Desai v. Principal Secretary, Governor of Maharashtra
Why it matters for exams: Paragraph 15 of the Election Symbols Order and the tests for recognising a faction of a split party are standard polity questions.
Kerala PSCUPSC
In plain words
Paragraph 15 Paragraph 15 of the Symbols Order — The provision under which the Election Commission decides disputes between rival factions of a recognised party.
SLP Special Leave Petition — A petition under Article 136 seeking the Supreme Court's leave to appeal.
8 October 2026
In Santosh B. Naik versus State of Goa and others, 2026 INSC 1089, the Supreme Court allowed an appeal on eligibility for a government post.
The bench comprised Justice Aravind Kumar and Justice Vipul M. Pancholi.
The post was that of Vocational Instructor (Practical) in the trade of Plumber under the Directorate of Skills Development and Entrepreneurship, Government of Goa.
The Recruitment Rules required an academic qualification with the words under 10+2 system of education forming part of it, along with a National Trade Certificate or National Apprenticeship Certificate in the relevant trade and practical industry experience.
The Court held that while exercising judicial review, courts generally cannot add to or alter the essential qualifications prescribed by the Recruitment Rules.
Whether a candidate's qualification is equivalent to the prescribed one is generally for the employer or a competent expert body to decide.
The Rules did not treat a National Institute of Open Schooling Secondary School Certificate as meeting the 10+2 academic requirement, so the third respondent was rightly found ineligible.
The Court set aside the High Court's direction to consider the third respondent on the basis of his marks and restored the appellant's temporary appointment.
Case:
Santosh B. Naik v. State of Goa & Ors., 2026 INSC 1089
Bench:
Justice Aravind Kumar and Justice Vipul M. Pancholi
Post:
Vocational Instructor (Practical), Plumber trade
Qualification in dispute:
Academic qualification under 10+2 system of education
Why it matters for exams: Judicial review of eligibility conditions in recruitment rules is directly useful for candidates and a common service law question.
Kerala PSCUPSCSSC
In plain words
NIOS National Institute of Open Schooling — A national board that offers school education through open and distance learning.
Judicial review Judicial review — The power of courts to examine the legality of executive and legislative action.
8 October 2026
On October 7, 2026 a bench of Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V Mohana dealt with a letter petition about an anti-malaria drive in Andhra Pradesh.
Nallapu Manideep had written to the Chief Justice on September 2, 2026 about events at Gollaguppa village in Polavaram District.
About 52 villagers were hospitalised after being given anti-malaria tablets, a seven-year-old girl died, and the letter said 23 other children were shifted to Telangana for treatment.
The State of Andhra Pradesh, represented by Senior Advocate Sidharth Luthra, told the Court that authorities had taken cognisance, a criminal case had been registered and the viscera report was awaited.
The Court took suo motu cognisance of the concerns raised and said the matter warrants judicial oversight until the ongoing investigation is taken to its logical conclusion.
It transferred the proceedings to the Andhra Pradesh High Court as the appropriate forum to monitor the investigation and any consequential proceedings.
The Chief Justice of the Andhra Pradesh High Court was asked to take up the matter on a priority basis, and the writ petition was disposed of.
Village and district:
Gollaguppa, Polavaram District, Andhra Pradesh
Villagers hospitalised:
About 52
Letter to the Chief Justice:
September 2, 2026
Forum for monitoring:
Andhra Pradesh High Court
Why it matters for exams: Letter petitions, suo motu cognisance and transfer of monitoring to a High Court illustrate how public interest litigation works.
Kerala PSCUPSC
In plain words
Suo motu Suo motu cognisance — A court taking up a matter on its own, without a formal petition by a party.
Letter petition Letter petition — A letter addressed to a court that it may treat as a writ petition in the public interest.
8 October 2026
Prime Minister Narendra Modi greeted the personnel of the Indian Air Force on Air Force Day.
In a post shared on X, he said India is proud of our Air Warriors.
He added that on Air Force Day the country salutes their courage and commitment to protect our skies.
The message was issued through the Press Information Bureau, Delhi, by the Prime Minister's Office on October 8, 2026.
Air Force Day is marked in India on 8 October every year.
Occasion:
Air Force Day
Date of the release:
October 8, 2026
Issued by:
Prime Minister's Office, through PIB Delhi
Why it matters for exams: Service days and the dates on which they fall are standard one-mark questions in general knowledge papers.
Kerala PSCUPSCSSC
In plain words
PIB Press Information Bureau — The nodal agency of the Government of India for communicating information to the media.
Background
Bank deposits in India are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), which operates under the DICGC Act, 1961.
As amended through the Deposit Insurance and Credit Guarantee Corporation (DICGC) (Amendment) Act, 2021, the Act enables depositors to get time-bound access to their deposits up to ₹ 5 lakh through interim payments by DICGC within 90 days of imposition of All Inclusive Directions (AID) by the Reserve Bank of India on banks.
Banks placed under AID are required to furnish a list of depositors showing the net outstanding deposits to the credit of each depositor in the same capacity and in same right within 45 days of imposition of AID. DICGC has to settle claims within the statutory timelines of 90 days after imposition of AID.
Payment does not wait for the bank to be wound up. The Ministry of Finance told the Lok Sabha that 12 banks went into liquidation after the deposit insurance amount was paid to the depositors of those banks in terms of Section 18A of the DICGC Act, 1961, during 01.09.2021 to 30.11.2022.
Over that same period, from 01.09.2021 when the amendment came into effect to 30.11.2022, the Corporation settled deposit insurance claims of 3,06,146 eligible depositors of 35 banks under AID, amounting to ₹4,055.10 crore.
Deposit cover per depositor:
₹ 5 lakh
DICGC must settle claims within:
90 days of imposition of AID
Bank must furnish depositor list within:
45 days of imposition of AID
Provision for payment before winding up:
Section 18A of the DICGC Act, 1961
Why it matters for exams: The insured amount, the 90-day and 45-day timelines and the fact that payment now precedes liquidation are the three things bank and PSC papers test on deposit insurance, and they changed together with the amending Act.
Kerala PSCUPSCSSCBank
In plain words
DICGC Deposit Insurance and Credit Guarantee Corporation — The body that insures bank deposits in India and pays depositors when a bank is barred from normal business.
All Inclusive Directions Directions imposed by the Reserve Bank restricting a bank's business — Once imposed, the bank cannot carry on normal business, and the deposit insurance clock starts.
Background
The Reserve Bank's liquidity adjustment facility, or LAF, is the set of operations through which it injects liquidity into, or absorbs liquidity from, the banking system.
The LAF corridor has the marginal standing facility rate as its upper bound or ceiling and the standing deposit facility rate as its lower bound or floor, with the policy repo rate in the middle of the corridor.
The marginal standing facility rate is placed at 25 basis points above the policy repo rate, and the standing deposit facility rate is placed at 25 basis points below it.
Under the marginal standing facility a bank may borrow overnight from the Reserve Bank by dipping into its statutory liquidity ratio portfolio up to a predefined limit of 2 per cent.
The standing deposit facility, introduced in April 2022, accepts uncollateralised overnight deposits and replaced the fixed reverse repo rate as the floor of the corridor.
The Bank Rate is published under section 49 of the Reserve Bank of India Act, 1934, and changes automatically whenever the marginal standing facility rate changes.
The cash reserve ratio is the average daily balance a bank must maintain with the Reserve Bank as a per cent of its net demand and time liabilities.
The operating target of the framework is the weighted average call rate.
MSF rate above the policy repo rate:
25 basis points
SDF rate below the policy repo rate:
25 basis points
MSF borrowing limit within the SLR portfolio:
2 per cent
Why it matters for exams: The ceiling, the floor and the two 25 basis point spreads of the corridor are among the most frequently asked facts in banking and economy papers.
Kerala PSCUPSCBank
In plain words
LAF Liquidity Adjustment Facility — The Reserve Bank's operations for injecting or absorbing liquidity, including repo, reverse repo, the standing deposit facility and the marginal standing facility.
MSF Marginal Standing Facility — The penal facility under which banks borrow overnight by dipping into their statutory liquidity ratio holdings.
SDF Standing Deposit Facility — The facility under which the Reserve Bank accepts uncollateralised overnight deposits; its rate is the floor of the corridor.
NDTL Net Demand and Time Liabilities — The deposit base on which the cash reserve ratio and the statutory liquidity ratio are computed.
Background
The Reserve Bank of India Act, 1934 requires the Central Government to entrust the Reserve Bank with all its money, remittance, exchange and banking transactions in India and with the management of its public debt.
The Reserve Bank may by agreement also act as banker and debt manager to State Governments, and it acts as banker to all the State Governments in India except Sikkim, for which it has a limited agreement covering the management of public debt.
Ways and Means Advances are short-term interest bearing advances given to governments to meet temporary mismatches in their receipts and payments, and the rate of interest on them is linked to the repo rate.
For State Governments the scheme has a Special Drawing Facility against the collateral of government securities held by the State, and a normal Ways and Means Advance once that limit is exhausted.
A withdrawal beyond the Ways and Means Advances limit is treated as an overdraft.
Surplus balances of State Governments are invested automatically in Government of India 14-day Intermediate Treasury Bills.
Banking business for the governments is carried out by the Public Accounts Departments at Reserve Bank offices, while public debt is managed by the Internal Debt Management Department and the Public Debt Offices.
Final compilation of the Government accounts of the Centre and the States is done at the Nagpur office of the Reserve Bank, which has a Central Accounts Section.
State for which the Reserve Bank is not banker:
Sikkim
Instrument for investing State surplus balances:
Government of India 14-day Intermediate Treasury Bills
Office that compiles Central and State government accounts:
Nagpur
Why it matters for exams: The Sikkim exception, the Ways and Means Advances mechanism and the Nagpur Central Accounts Section are classic one-mark questions on the Reserve Bank's role as banker to governments.
Kerala PSCUPSCBank
In plain words
WMA Ways and Means Advances — A short-term interest bearing advance from the Reserve Bank to a government to bridge a temporary mismatch between receipts and payments.
SDF Special Drawing Facility — In the State Government scheme, the first slab of accommodation, given against the collateral of government securities held by the State.