Banking Awareness of 26, 27 and 28 February 2026

Topic: RBI

1. The RBI will conduct a government securities switch auction worth ₹25,000 crore on March 2.

• This is the third switch auction announced by the central bank this month.
• The operation aims to reduce redemption pressure in FY27.
• Government bonds worth ₹5.47 lakh crore are maturing in FY27.
• A switch auction involves replacing short-term maturing bonds with longer-term securities.
• In this case, bonds maturing in FY27 will be replaced with bonds maturing after FY32.
• The government has budgeted gross market borrowing of ₹17.2 lakh crore.
• This switch helps smooth the maturity profile of public debt.
• Earlier this month, two similar auctions were conducted.
• Those operations resulted in the buyback of securities worth ₹84,804 crore.

Topic: Regulatory Bodies/Financial Institutions

2. SEBI has revised investment regulations for India's $384 billion actively managed equity mutual fund industry.

• Equity funds can now invest up to 35% of their total assets in gold instruments.
• They can also allocate funds to silver instruments within this limit.
• Investment in Infrastructure Investment Trust units is also permitted within this 35% cap.
• Previously, the range of non-equity investment options in stock funds was limited.
• The new regulations provide greater diversification flexibility.
• SEBI has also approved a new category of life cycle or target-date mutual funds.
• These funds will have fixed maturity periods ranging from five to 30 years.
• They are designed to support goal-based investing, including retirement planning.
• Asset management companies can launch up to six active life cycle schemes at any given time.
• These products could compete with the government-backed National Pension System.
• The National Pension System currently manages assets worth approximately $177 billion.

Topic: Appointments

3. Financial Services Institutions Bureau (FSIB) has proposed Hitesh R Joshi for appointment as Chairman and Managing Director of General Insurance Corporation of India.

• Joshi currently serves as Executive Director at the state-owned reinsurance company.
• He has been handling the financial and administrative duties of the CMD from October 1, 2025.
• He assumed this role after Ramaswamy Narayanan retired on September 30, 2025.
• Joshi was appointed Executive Director on July 9, 2024.
• GIC Re (General Insurance Corporation of India) is India's largest reinsurance company.
• It is headquartered in Mumbai. It was established in 1972.

Topic: Indian Economy/Financial Market

4. A research report released by the State Bank of India estimates that India's economy grew by approximately 8.1 percent in the third quarter of the current financial year.

• This estimate is for the quarter ending December 31, 2025.
• These results are based on various high-frequency economic indicators, which suggest that overall economic activity remains strong.
• The report states that growth momentum remained strong despite global economic challenges.
• Rural consumption is reported to be strong. This strength has been supported by positive trends in both the agricultural and non-agricultural sectors.
• Urban consumption has also shown improvement.
• Urban demand has been increasing since the last festive season.
• Fiscal stimulus measures have supported this increase in spending.
• This assessment comes before the change in the GDP base year.
• The base year will be changed from 2011-12 to 2022-23.

Topic: Appointments

5. Nidhi Chhibber given additional charge as NITI Aayog CEO.

• The additional charge of Chief Executive Officer of NITI Aayog was given to Nidhi Chhibber following the completion of the tenure of B. V. R. Subrahmanyam.
• The responsibility was assigned to Nidhi Chhibber after Subrahmanyam completed his three-year term on 24 February.
• Chhibber is presently serving as Director General of the Development Monitoring and Evaluation Office under NITI Aayog.
• In her current role, several flagship central government schemes have been monitored and evaluated by her to assess their effectiveness.
• She is a 1994-batch IAS officer of the Chhattisgarh cadre and has held several key administrative positions.
• Earlier, she served as Chairperson of the Central Board of Secondary Education, where major examination and reform processes were overseen.
• NITI Aayog, established on 1 January 2015 to replace the Planning Commission, continues to promote cooperative federalism through a bottom-up development approach.

Topic: MoUs/Agreements

6. The Ministry of Culture signed a Memorandum of Understanding with the Federation of Indian Chambers of Commerce and Industry (FICCI).

• This agreement focuses on developing a comprehensive plan for India's cultural and creative economy.
• The partnership aims to create a structured roadmap to strengthen the cultural sector.
• It aims to unlock the economic potential of creative industries.
• Gajendra Singh Shekhawat described the MoU as an important step.
• He said that this will help make culture a pillar of economic growth.
• He further said that this initiative will support artists and artisans across the country.
• The Minister said that this could provide better opportunities for them in the future.
• He also said that this agreement could enhance the global recognition of India's cultural products and services.

Topic: Corporates/Companies

7. Listed private non-financial companies reported a 10.1% year-on-year increase in sales in the third quarter of 2025-26.

• This marked a return to double-digit growth. The sector had recorded single-digit growth in the previous eleven quarters.
• The Reserve Bank of India stated that this improvement was primarily due to strong manufacturing performance.
• These results are based on the abbreviated quarterly results of 3,188 listed non-government, non-financial firms.
• Sales of 1,794 listed manufacturing companies increased by 11.4% in this quarter.
• This was higher than the 8.5% growth recorded in the previous quarter.
• Automobile, electrical machinery, and non-ferrous metal industries led manufacturing growth.
• Sales growth of information technology companies improved to 8.8%.
• Non-IT service companies recorded stable sales growth of 10.6%.
• Manufacturing companies' operating profit increased by 11.8%. This growth was supported by a modest rise in other operating expenses.
• IT companies' operating profit growth increased to 11.1%.
• In contrast, non-IT service companies' operating profit growth slowed to 4.0% in the same quarter.

Topic: Banking/Financial/Govt Schemes

8. The government launched a pilot project under PMGKAY in Puducherry for CBDC-based Food Subsidy Distribution.

• A Central Bank Digital Currency (CBDC)-based Food Subsidy Distribution Pilot project under the Pradhan Mantri Garib Kalyan Anna Yojana launched in Puducherry on 26 February 2025.
• The pilot project was inaugurated by Union Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi.
• He inaugurated the pilot project in presence of Puducherry Lieutenant Governor K. Kailashnathan, Chief Minister N. Rangasamy and Minister of State for Consumer Affairs, Food and Public Distribution Nimuben Jayantibhai Bambhaniya.
• As part of the initiative, identified beneficiaries will receive food subsidies in their digital wallets in the form of Digital currency tokens issued by RBI.
• The beneficiaries can use these CBDC tokens for purchasing entitled foodgrains at authorised merchants and Fair Price Shops.
• The pilot is being implemented with the Puducherry government, the RBI, the Public Financial Management System, and Canara Bank.
• Its aim is to improve transparency, efficiency and targated delivery of food subsidy.