Banking Awareness of 4, 5, 6 and 7 January 2026

Topic: Reports and Indices

1. India’s services Purchasing Managers’ Index (PMI)declined from 59.8 in November to 58 in December.

• This indicates the slowest pace of expansion in the services sector in almost 11 months.
• Despite the decline, the services PMI was well above the 50 mark. It indicates growth.
• The share of services sector in India’s Gross Domestic Products (GDP) was more than 54%.
• S&P Global compiles PMI based on responses to questionnaires sent to a panel of around 400 service sector companies.
• It covers sectors like consumer (excluding retail), transport, information, communication, finance, insurance, real estate and business services.
• An index above 50 shows expansion. Index below 50 means contraction.
• Panel members reported that new orders and output rose due to firm demand and attractive pricing.
• External demand improved further during December. Service exporters reported demand from Asia, North America, the Middle East and the UK.
• New export orders increased at a faster pace than in November.

Topic: Taxation

2. Karnataka recorded the highest growth rate of State’s tax revenue (excluding share of union taxes) during April to November period of FY26.

• Karnataka was followed by Maharashtra and Uttar Pradesh, as per data from Comptroller & Auditor General of Account (C&AG).
• Gujarat holds first rank in terms of increase in Capital Expenditure (capex). It is followed by Maharashtra and Karnataka.
• In terms of amount spent, Uttar Pradesh is much ahead during the April-November period of FY26.
• When compared to the corresponding period of last fiscal, it recorded de-growth.
• In absolute number, Maharashtra and Uttar Pradesh collected more tax revenue than Karnataka.
• Karnataka’s lower collections were partly due to weaker State Goods & Services Tax receipts.
• SGST collections were affected by GST rate rationalisation of September 2025.
• State excise duty collections showed stronger growth.
• Gujarat, Karnataka and Maharashtra saw an increase in capex. Tamil Nadu and Uttar Pradesh reported a fall in capex.
• Maharashtra’s fiscal deficit reached about 16 percent of its budget estimate in eight months.
• Uttar Pradesh’s fiscal deficit was slightly above 5 percent of its budget estimate.

Topic: Summits/Conferences/Meetings

3. The first meeting of the Payments Regulatory Board held by RBI in Mumbai.

• The meeting was chaired by RBI Governor Sanjay Malhotra.
• The Payments Regulatory Board was established after amendment in the Payment and Settlement Systems Act, 2007.
• The amendment became effective on May 9, 2025.
• The functions of the Department of Payment and Settlement Systems were reviewed by the Board.
• It also reviewed current focus areas in domestic payment systems.
• It also discussed developments in global payment systems.
• RBI officials presented the draft Payments Vision 2028.
• Board members provided strategic guidance on the future of India’s payments ecosystem.
• Major findings of the Survey on Digital Payments were presented. The survey was recently conducted by RBI.

Topic: Agriculture

4. Union Agriculture Minister said that India has become the world's largest rice producer.

• India has become the world’s largest producer of rice, surpassing China in total output.
• On 4 January 2026, this achievement was stated by Union Agriculture Minister Shivraj Singh Chouhan in New Delhi.
• India’s rice production has been reported at 150.18 million tonnes, compared to China’s 145.28 million tonnes.
• India’s increased rice output has enabled the country to supply rice to overseas markets.
• A total of 184 improved varieties of 25 field crops were unveiled by the Agriculture Minister in the national capital.
• These varieties were developed by the Indian Council of Agricultural Research (ICAR).
• The 184 varieties released include 122 cereals, 6 pulses, 13 oilseeds, 11 fodder crops, 6 sugarcane varieties, 24 cotton varieties, and one variety each of jute and tobacco.
• The success has been attributed to the development of high-yielding and climate-resilient seeds.
• Officials were directed to ensure rapid distribution of these improved seed varieties to farmers.
• The achievement was described as the result of collective efforts by ICAR projects, agricultural universities and private seed companies.

Topic: Indian Economy/Financial Market

5. India’s foreign exchange reserves increased by about $3.3 billion in the week ended December 26.

• They reached nearly $696.6 billion as of December 26. This increase continued with the positive trend seen in recent weeks.
• In the previous week, India's forex reserves had increased by more than $4.3 billion.
• Foreign currency assets form the largest part of the reserves.
• These assets rose slightly by around $184 million to reach roughly $559.6 billion during the week ended December 26.
• Gold reserves increased by close to $3 billion and reached about $113.3 billion.
• The rise was mainly due to higher international gold prices.
• Special Drawing Rights increased to approximately $18.8 billion.
• India’s reserve position with the IMF rose to nearly $4.9 billion.
• Foreign exchange reserves indicate a country’s financial strength and help in managing exchange rate stability.
• Reserves were supported by a $5 billion USD/INR swap operation, conducted by the RBI in mid-December.
• It was conducted to inject liquidity into the banking system.
• Banks sold dollars to the RBI in exchange for rupees. They agreed to repurchase the dollars later.
• The transaction was settled on December 18. This settlement added to the overall reserve position.

Topic: Summits/Conferences/Meetings

6. Regional AI Impact Conference 2026 to be hosted by Rajasthan.

• Rajasthan is set to host the Regional AI Impact Conference 2026 in Jaipur.
• The conference is scheduled to be held on the 6th of January.
• The event is being organised in collaboration with Rajasthan DigiFest and TiE Global Summit 2026.
• The conference forms part of preparatory engagements for the India AI Impact Summit 2026.
• The Ministry of Electronics and Information Technology stated that the conference will focus on governance and innovation.
• Sessions will be held on AI in public service delivery, ethical AI and future employment.
• Rajasthan’s emerging AI startup and innovation ecosystem will be showcased.
• Union Minister Ashwini Vaishnaw and Minister of State Jitin Prasada will attend the conference.
• Guwahati will host a Human Capital Working Group Meeting alongside these engagements.
• The meeting will deliberate on education, skilling and workforce readiness in the age of Artificial Intelligence.

Topic: Indian Economy/Financial Market

7. India's nominal GDP growth is expected to increase to 11% in FY27, according to a report by SBI Mutual Fund.

• India’s nominal GDP growth is projected to rise to about 11% in FY27, while real GDP growth is expected at 7.2%.
• This improvement is likely to be driven by domestic credit-led consumption and continued policy support, according to an SBI Mutual Fund report.
• The growth outlook over the medium term has been described as constructive, driven by structural reforms and premiumisation trends.
• Global economic slowdown and geopolitical tensions have been identified as key risks to the growth outlook.
• In FY26, real GDP growth averaged around 8% year-on-year in the first half, while nominal growth remained at 8.8%.
• Inflation is expected to mean-revert to around 4% in FY27.
• The Reserve Bank of India is likely to maintain a prolonged policy pause unless global growth conditions worsen significantly.
• Recent liquidity measures include a ₹2 trillion Open Market Operations round and a $10 billion buy-sell swap conducted in mid-January.
• The fiscal deficit is projected to decrease from an estimated 4.4% of GDP in FY26 to 4.2% in FY27, although deficits remain elevated at the state level.
• Government bond supply is expected to increase to approximately ₹29 trillion, keeping the demand-supply balance tight.

Topic: Awards and Prizes

8. The winners of Badalta Bharat Mera Anubhav creative challenges have been announced by the Information and Broadcasting Ministry.

• The winners of four creative challenges as part of the Badalta Bharat Mera Anubhav campaign have been announced by the I&B Ministry.
• The four creative challenges under the Badalta Bharat Mera Anubhav campaign were organised in collaboration with the MyGov platform.
• Under the challenges, citizens across the country were invited to share their personal experiences and creative expressions showing India’s transformation during the last 11 years.
• The campaign saw participation from citizens belonging to diverse age groups and backgrounds.
• The impact of transformative governance and rapid development across sectors was highlighted by participants.
• Indrajeet Subodh Mashankar won first prize under Badalta Bharat Mera Anubhav - Instagram Reel Contest category.
• Manthan Rohit is the winner of first prize in Badalta Bharat Mera Anubhav - YouTube Shorts Challenge category.
• Sushovan Manna won first prize in Short AV Challenge - Story of New India category.
• Krishna Gupta achieved 1st prize in the category of Badalta Bharat Mera Anubhav - Blog Writing Contest.