Banking Awareness of 26, 27 and 28 March 2026

Topic: Indian Economy/Financial Market

1. The Ministry of Finance has announced that there will be no change to the existing inflation target band for the next five years, commencing from April 1, 2026.

• The current inflation target band will remain valid until March 31, 2031.
• This marks the third consecutive five-year extension of India's inflation-targeting framework.
• The inflation-targeting system was first introduced in August 2016.
• Under Section 45ZA of the RBI Act, the Central Government is required to determine and notify the Consumer Price Index (CPI) inflation target every five years. This exercise must be undertaken in consultation with the RBI.
• This very 4% target band was also renewed in March 2021.
• This 4% figure serves as the primary anchor for monetary policy.
• The six-member Monetary Policy Committee determines interest rates. Its objective is to keep inflation contained within the prescribed target band.
• If inflation exceeds 6% for three consecutive quarters, taking action becomes necessary.
• Similarly, if inflation falls below 2% for three consecutive quarters, taking action becomes necessary.
• In such instances, the RBI is required to submit a report to the government, explaining the reasons for this deviation (departure from the target).
• It must also outline the corrective measures to be undertaken. It is mandatory for this report to specify a timeline for bringing inflation back within the prescribed band.

Topic: Reports and Indices

2. In 2025, India's unincorporated non-agricultural sector witnessed a growth of approximately 8%.

• The total number of establishments rose to approximately 79.2 million.
• These figures are derived from a survey conducted by the Ministry of Statistics and Programme Implementation.
• The survey covered over 670,000 establishments.
• In 2023–24, there were approximately 73.4 million such enterprises.
• These units comprise small-scale manufacturers, traders, and service providers.
• These entities are not registered under Companies Act. They typically operate from a single location, and the majority of them focus on a single primary economic activity.
• In 2025, total employment within this sector rose to approximately 128.1 million workers.
• Compared to the previous survey, over 7.4 million new jobs were added.
• The 'Other Services' sector recorded the highest growth, expanding by approximately 7.4% and generating around 3.5 million jobs.
• The average earnings per employee increased by approximately 3.9%.
• The trading sector recorded the highest growth in earnings, rising by approximately 8.5%.
• The number of establishments in the 'Other Services' sector increased by over 10%.
• Manufacturing establishments grew by approximately 6.5%, while trading establishments saw an increase of over 6%.
• Growth was observed across several sectors. Specifically, women-owned sole proprietorships saw a slight increase, with their share rising from 26.2% to 27%.
• Gross Value Added (GVA) per employee rose to over ₹156,000, representing an increase of approximately 4.5%.
• GVA per establishment increased to approximately ₹253,000, up from the previous figure of around ₹246,000.

Topic: Banking System

3. Jammu and Kashmir Bank has received a GST demand order amounting to approximately ₹200.20 crore.

• This order was issued by the Additional Commissioner of the Central GST Commissionerate, Jammu.
• The demand order pertains to the period spanning from February 2020 to March 2024.
• It relates to transactions undertaken under the Transfer Pricing Mechanism (TPM).
• The Bank stated that it is a single legal entity, comprising its headquarters and all its branches.
• Its financial statements are prepared at the entity level.
• This is done in accordance with applicable laws. The Bank further noted that the TPM entries are of a notional nature.
• These entries offset each other within the consolidated accounts. This mechanism is utilized by banks across India.
• It adheres to the guidelines issued by the Reserve Bank of India (RBI) in 1999.
• These guidelines pertain to risk management systems, which include the Funds Transfer Mechanism.
• The Bank asserted that this demand lacks any legal basis.
• The Bank expects that the court will quash this order. It stated that this demand will have no impact on its operations.
• Previously, a similar GST demand had also been challenged, and a stay order was issued in that case.

Topic: Indian Economy/Financial Market

4. India’s Economic growth projected to remain resilient at 7.1% in FY27.

• India’s economic growth has been projected to remain resilient at 7.1% in the financial year 2026-27 despite global geopolitical tensions.
• The outlook has been supported by strong domestic demand, stable export performance, and gradual recovery in private investment.
• India has been identified as one of the fastest-growing major economies in the Asia-Pacific region.
• Growth across the Asia-Pacific region, excluding China, is expected to improve to around 4.5% in 2026.
• Domestic economic activity and performance in technology-related sectors have been recognised as key growth drivers.
• Inflation has been projected to moderate to approximately 4.3%, remaining within a manageable range.
• Global volatility in energy prices has been noted, but its impact on inflation is expected to remain controlled.

Topic: Reports and Indices

5. Pakistan ranked first on Global Terrorism Index amid rising terrorism deaths.

• Pakistan has been ranked first on the Global Terrorism Index following an increase in terrorism-related fatalities.
• A rise of 6% in deaths has been recorded, marking the highest level since 2013.
• A total of 1,139 deaths and 1,045 terrorism incidents have been reported in 2025.
• The country has experienced the sixth consecutive year of increasing terrorism-related fatalities.
• A significant surge in hostage-taking incidents has been observed, with victims rising sharply from 101 to 655.
• The increase in hostage incidents has been largely attributed to the Jaffar Express attack involving 442 hostages.
• Security challenges have been intensified due to strained relations with neighbouring countries, particularly Afghanistan.
• Regions such as Khyber Pakhtunkhwa and Balochistan have accounted for the majority of attacks and fatalities.
• Pakistan has been grouped among five countries contributing to nearly 70% of global terrorism deaths.
• The ranking reflects a continuing deterioration in internal security and stability within the country.

Topic: Banking/Financial/Govt Schemes

6. India has approved a revised climate plan for the 2031–2035 period under global agreements.

• The country aims to reduce the emissions intensity of its GDP by 47% by 2035. This reduction is measured against 2005 levels.
• India has already surpassed the 52% mark for non-fossil fuel electricity capacity as early as the beginning of 2026. This target was achieved ahead of schedule.
• The new target is to increase the share of non-fossil fuel capacity to 60% by 2035.
• The government has extended the revised UDAN scheme for a period of ten years, spanning from 2026–27 to 2035–36.
• The total budget for this scheme is ₹28,840 crore. Its objective is to develop 100 airports by upgrading unserved or underserved airstrips.
• The Immigration, Visa, Foreigners Registration and Tracking (IVFRT) scheme has been extended for a period of five years, from April 2026 to March 2031.
• An outlay of ₹1,800 crore has been allocated for this scheme. IVFRT integrates processes related to immigration and visas.

Topic: Appointments

7. The government has appointed Kompella Venkata Ramana Murthy as a Whole-Time Member of the Securities and Exchange Board of India (SEBI).

• His tenure will last for three years or until further orders are issued.
• With his induction, SEBI now has a full set of four Whole-Time Members.
• The other Whole-Time Members include Amarjeet Singh, Kamlesh Chandra Varshney, and Sandip Pradhan.
• Murthy is a retired officer of the 1991 batch of the Indian Defence Accounts Service.
• Previously, he served as the Additional Controller General of Defence Accounts under the Ministry of Defence.
• SEBI was formed as a non-statutory body on April 12, 1988. It was set up through a resolution of the Government of India.
• It was set up as a statutory body in 1992. Tuhin Kanta Pandey is its current Chairperson.

Topic: Summits/Conferences/Meetings

8. WTO 14th Ministerial Conference convened in Yaoundé to address global trade issues.

• On 26 March, the 14th Ministerial Conference (MC-14) of the World Trade Organization started in Yaoundé, Cameroon, and will continue until 29 March 2026.
• The conference is being attended by ministers from 166 member countries to discuss key global trade issues.
• Major areas such as WTO reform, agriculture, e-commerce, and investment facilitation have been included in the agenda.
• The event has been chaired by Cameroon’s Minister of Trade, Luc Magloire Mbarga Atangana.
• The conference is being held in the context of rising geopolitical tensions and global economic uncertainties.
• Trade tensions, particularly between the United States and China, have been identified as a significant concern.
• Recent tariff measures by the United States have been questioned for being inconsistent with WTO principles.
• Core principles such as Most Favoured Nation treatment and bound tariff commitments have been highlighted during discussions.
• The conference is being viewed as an opportunity to restore confidence in the multilateral trading system.