Banking Awareness of 1, 2, 3 and 4 April 2026

Topic: Reports and Indices

1. In March, India's Manufacturing PMI fell to a 45-month low level of 53.9.

• S&P Global reported that the Manufacturing Purchasing Managers' Index (PMI) declined from 56.9 in February to 53.9 in March.
• This marks the lowest level since June 2022. New orders and output grew at their slowest pace since mid-2022.
• New orders and output are the two largest sub-components of the PMI.
• The Purchasing Managers' Index (PMI) is based on surveys of approximately 400 purchasing managers.
• A PMI reading above 50 indicates expansion (growth), while a reading below 50 indicates contraction (decline).
• Input costs rose sharply during this month. This increase was the strongest recorded in over three and a half years.
• Prices for aluminum, fuel, chemicals, and textile products increased. Despite rising costs, companies raised their selling prices at a slower pace.
• Output price inflation eased, falling to a two-year low.
• Export demand grew at its fastest pace since last September.

Topic: Banking System

2. The Unified Payments Interface (UPI) recorded 22.64 billion transactions in March 2026.

• This highlights the continuous growth in digital payments. The Department of Financial Services highlighted this achievement.
• Data from the National Payments Corporation of India (NPCI) revealed that UPI transactions rose from 20.39 billion in February to 22.64 billion in March.
• The total value of transactions also increased from ₹26.84 lakh crore in February to ₹29.53 lakh crore in March.
• In March, the average daily transaction volume reached approximately 730 million. This was slightly higher than the 728 million recorded in February.
• The average daily transaction value stood at approximately ₹95,243 crore.
• UPI was developed by the NPCI. It facilitates real-time money transfers and operates through mobile apps and banking platforms.
• It has emerged as a widely used payment system across India.

Topic: RBI

3. The Reserve Bank of India has extended export credit relief measures until June 30, 2026.

• The credit period has been extended to 450 days. This applies to both pre-shipment and post-shipment finance.
• This benefit is available for all disbursements made up to June 30. This decision was taken in light of the crisis in West Asia.
• The crisis has caused logistical disruptions and impacted supply chains.
• Exporters are facing delays in meeting payment deadlines.
• This relief measure was originally introduced in November 2025. It was implemented during a period of global trade tensions.
• Previously, this benefit was available only until March 31, 2026. The RBI has now extended this timeframe.
• Exporters have been granted additional time to receive payments.
• The period for realizing payments has been extended from 9 months to 15 months. This applies to the export of goods, software, and services.
• These new regulations are effective immediately. They apply to various financial institutions.
• These include banks, cooperative banks, NBFCs, and other financial institutions.
• The objective of this move is to alleviate financial pressure on exporters. It also helps in ensuring the continuity of export businesses.

Topic: Taxation

4. GST collection crosses ₹2 lakh crore mark in March with strong growth.

• Gross GST collections have crossed the ₹2 lakh crore mark in March, and a strong year-on-year growth of 8.8 percent has been recorded.
• This milestone has been achieved for the first time after GST rate rationalisation, indicating strong consumption and increased transactions.
• Net GST revenue has grown by 8.2 percent to ₹1.77 lakh crore, even as refunds have increased significantly.
• Refunds have risen by 13.8 percent to ₹22,074 crore, reflecting higher settlement activity.
• For the full financial year, gross GST collections have increased by 8.3 percent to ₹22.27 lakh crore.
• The GST compensation cess has been removed from February 1, and new excise duties and cesses have been implemented.
• Collections have included Central GST, State GST, and Integrated GST, forming the overall revenue structure.
• Strong consumption sentiment has been reflected through higher tax collections during the year-end period.

Topic: RBI

5. RBI conducted an underwriting auction for government securities worth ₹29,000 crore.

• This auction was conducted using the 'Multiple Price-Based' method. It took place through the RBI's 'e-Kuber' platform.
• This issue included a 6.68% government security worth ₹17,000 crore, which will mature in 2040.
• It also included a 7.43% government security worth ₹12,000 crore, which will mature in 2076.
• Primary Dealers were required to underwrite a minimum of ₹405 crore for the 2040 bond.
• They must also underwrite a minimum of ₹286 crore for the 2076 bond.
• These same minimum commitments also applied under the additional competitive underwriting auction.
• The RBI has extended the permissible period for export credit to 450 days.
• This facility applies to both 'pre-shipment' and 'post-shipment' financing. This extension will remain valid until June 30, 2026.
• Exporters will continue to have a period of up to 15 months to realize their export proceeds.
• This extension has been granted in view of the global logistics disruptions arising from the ongoing tensions in West Asia.
• There has been a marginal improvement in the banks' 'Supervisory Data Quality Index'.
• It rose from 90.7 points in the previous quarter to 90.9 points in the quarter ending December 2025.
• This index measures the quality of data in regulatory reporting. It evaluates data accuracy, timeliness, completeness, and consistency.
• A score of over 90 is considered "Good." This reflects the improvement in compliance among banks.

Topic: Banking/Financial/Govt Schemes

6. Ministry of Textiles has extended the Rebate of State and Central Taxes and Levies scheme.

• The extension applies to apparel and made-ups exports.
• It will remain in force until September 30, 2026 or until approval of the Scheme for the 16th Finance Commission cycle, whichever is earlier.
• The extension does not change existing guidelines.
• The RoSCTL scheme was launched in March 2019. It refunds embedded state taxes on exports.
• It also covers certain central levies not refunded elsewhere.
• The scheme follows a zero-rating principle. This ensures exports are free from hidden taxes.
• It helps improve global competitiveness of Indian textile exports.
• MSMEs are major beneficiaries of the scheme. The government has also extended the RoDTEP scheme.
• This extension starts from April 1, 2026. It will continue until September 30, 2026.
• Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme covers textile products outside RoSCTL. Both schemes together support the textile sector.
• They provide coverage across the value chain. They aim to boost export competitiveness.

Topic: RBI

7. The Reserve Bank of India has deferred the implementation date for the revised norms regarding Capital Market Exposure by three months.

• The new effective date has been shifted to July 1, 2026, moving it from the previously set deadline of April 1.
• This delay follows requests from banks, market intermediaries, and industry stakeholders who sought additional time to prepare for the changes.
• This updated framework was originally issued in February 2026.
• The objective of these guidelines is to facilitate the financing of corporate acquisitions by Indian companies.
• They also aim to rationalize the limits on lending against shares and related financial instruments.
• This framework promotes a more principle-based approach to lending to participants in the capital markets.
• The central bank has further refined the definition of acquisition finance to explicitly include mergers and amalgamations.
• Such financing will be permitted only if it results in the acquisition of control over a non-financial entity.
• In cases involving holding or parent companies, banks are required to verify the synergy requirements among the subsidiary entities.
• Companies are now permitted to channel the funding secured for an acquisition down to their subsidiaries.
• This provision applies to subsidiaries operating both within India and abroad.
• This change will enable subsidiaries to utilize such financing to acquire target companies.

Topic: Banking System

8. The Government shared an update on banking access in villages and said 99.92% of villages have banking outlets nearby.

• These outlets are available within a 5-kilometre distance.
• Minister of State for Finance, Pankaj Chaudhary provided the details.
• He said full coverage has been achieved in Dadra and Nagar Haveli.
• All villages there have access to banking outlets. These are within the 5-kilometre range.
• The Government aims to cover all inhabited villages. It wants banking services available within 5 kilometres everywhere.
• There are still challenges in expanding banking infrastructure.
• Poor connectivity is one major issue. Limited infrastructure also creates problems.
• There is also a shortage of suitable premises for outlets.