Banking Awareness of 12, 13 and 14 March 2026

Topic: Indian Economy/Financial Market

1. Retail inflation in India rose to 3.21 percent in February, up from 2.75 percent in January.

• These figures were released by the Ministry of Statistics and Programme Implementation.
• Despite the increase, inflation remained within the target range set by the Reserve Bank of India.
• The RBI aims to keep inflation around 4 percent. It allows for a tolerance band of between 2 percent and 6 percent.
• The primary reason for the rise in inflation in February was an increase in the prices of food items. Food inflation was recorded at 3.75 percent during the month.
• Urban inflation was recorded at 3.32 percent, while rural inflation stood at 3.07 percent.
• In January, retail inflation had witnessed a sharp decline, reaching a multi-month low.
• This decline was primarily driven by a reduction in vegetable prices.
• The Reserve Bank of India closely monitors retail inflation and takes these trends into account when formulating monetary policy.

Topic: RBI

2. The Reserve Bank of India has amended the prudential norms related to capital adequacy.

• These revised norms apply to Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs).
• Asset Reconstruction Companies (ARCs) have now also been included under these amended norms.
• These entities are now permitted to include their quarterly profits while calculating their 'Owned Funds'.
• This amendment has come into effect immediately.
• The objective of this move is to provide greater clarity regarding the components that may be reckoned as 'Owned Funds'.
• Quarterly profits may be included only if certain conditions are met.
• The financial statements must undergo a 'limited review' every quarter; alternatively, a 'full audit' may also be conducted.
• This review or audit must be conducted exclusively by statutory auditors.
• Eligible profits shall be calculated after deducting a portion of the average dividends.
• The average dividend shall be based on the payouts made over the preceding three financial years.
• It is mandatory to fully deduct any losses recorded during the current financial year; partial adjustment for such losses is not permitted.

Topic: MoUs/Agreements

3. The State Bank of India has entered into a strategic partnership agreement with Japan's MUFG Bank.

• The objective of this partnership is to strengthen financial cooperation between the two countries.
• It also aims to foster economic ties between India and Japan. This agreement will be instrumental in the development of the India-Japan Economic Corridor.
• The goal of this collaboration is to further facilitate cross-border capital flows. It is also expected to generate new financing opportunities.
• This initiative seeks to promote sustainable economic growth in both economies.
• This alliance will assist Japanese companies planning to expand their operations in India.
• It will also provide support to Indian companies looking to expand their presence internationally.
• Indian companies will receive assistance in gaining entry into the Japanese market. They may also receive support for expanding into other global markets.
• Both banks will collaborate on advisory services related to Mergers and Acquisitions (M&A). Under this agreement, opportunities for retail banking solutions will also be explored.
• The objective of this collaboration is to strengthen business transactions between companies in both countries.

Topic: Agriculture

4. Union Minister Shivraj Singh Chouhan said that India's food grain production has increased by approximately 44 percent in the last ten years.

• India has set a new record in grain production. Total production has reached approximately 357 million tons.
• India has become the world's largest rice producer. The country has surpassed China in rice production.
• Pulse production in India has also increased significantly, from 19 million tons to approximately 26 million tons.
• The government has launched the Pradhan Mantri Dhan Dhanya Yojana.
• This scheme aims to ensure balanced growth in food grain production.
• It is being implemented in 100 districts across the country.
• He said that the West Bengal government has not implemented this scheme.
• Four districts of the state were selected under the program.
• These districts are Purulia, Darjeeling, Alipurduar, and Jhargram.
• The program aims to support farmers in these districts and also aims to increase agricultural production.
• The central government provided fertilizer subsidies last year. The subsidy amount was approximately Rs 1.86 lakh crore.

Topic: Reports and Indices

5. The second edition of Fiscal Health Index 2026 released by NITI Aayog.

• On 11 March, the second annual edition of the Fiscal Health Index (FHI) 2026 has been released by NITI Aayog in New Delhi.
• The report was released by NITI Aayog Vice-Chairman Suman Bery and Chief Executive Officer Nidhi Chhibber in the presence of senior officials.
• The Fiscal Health Index has been developed as a data-driven framework to assess the fiscal performance and financial sustainability of Indian states.
• The Index has been designed to evaluate fiscal soundness, guide policy reforms and promote evidence-based fiscal policymaking across states.
• The report highlights that state governments play a crucial role in India’s fiscal structure, accounting for nearly one-third of the country’s general government debt.
• In its second edition, the Index has been expanded to include the ten North-Eastern and Himalayan states, making the assessment more inclusive and representative.
• Due to structural differences across regions, North-Eastern and Himalayan states have been evaluated and ranked separately from the major states.
• The analysis indicates significant variations in fiscal outcomes among states, with many major states recording moderated Fiscal Health Index scores during 2023–24.
• The report recommends strengthening revenue mobilisation, improving state tax capacity, rationalising committed expenditures and enhancing the quality of capital expenditure.
• The Fiscal Health Index 2026 provides a transparent and comprehensive benchmarking framework that will assist policymakers, researchers and stakeholders in improving fiscal governance and ensuring long-term macroeconomic stability.

Topic: MoUs/Agreements

6. Donald Trump announced a $300 billion partnership between the United States and Reliance Industries Limited.

• The partnership aims to build a major oil refinery in the United States.
• The project is called America First Refining.
• It is expected to be the first major refinery built in the U.S. in nearly 50 years.
• The refinery is being built for the Port of Brownsville in Brownsville, Texas, United States.
• Officials say the project could be the largest investment ever made in the United States.
• Developers claim the facility will be the cleanest refinery in the world.
• This plan supports Trump's America First economic and energy strategy.
• This strategy focuses on reducing taxes and expediting permits for energy projects.

Topic: Summits/Conferences/Meetings

7. The Ministry of Panchayati Raj organised a one-day National Conference of Women Elected Representatives of Panchayats.

• The event was part of the Sashakt Panchayat-Netri Abhiyan. It was held in New Delhi.
• The conference marks one year since the launch of the Sashakt Panchayat-Netri Abhiyan.
• The event aims to celebrate women-led governance at the grassroots level.
• It also seeks to strengthen women’s participation in local governance.
• Outstanding women Panchayat leaders were honoured at the conference.
• These leaders are identified as Beacon Women Leaders by state and union territory governments.
• Rajiv Ranjan Singh, the Panchayati Raj Minister, attended the conference.

Topic: Banking/Financial/Govt Schemes

8. The Union Cabinet has approved extending the Jal Jeevan Mission until December 2028.

• The decision was taken during a Cabinet meeting chaired by Prime Minister Narendra Modi.
• The extension includes restructuring and reorienting the Jal Jeevan Mission’s implementation strategy.
• The programme will now shift its emphasis from building infrastructure to ensuring reliable service delivery of drinking water.
• The total financial outlay for the programme has been increased to about ₹8.69 lakh crore.
• Out of this amount, the central government will provide assistance of around ₹3.59 lakh crore.
• A nationwide digital platform named “Sujalam Bharat” will be introduced as part of the reforms.
• Each village in the country will be given a unique Sujal Gaon or Service Area identification number under this system.
• The Cabinet has also approved granting international airport status to Madurai Airport in Tamil Nadu.
• Upgrading the airport to international status is expected to improve global connectivity.