Pareto Academy
Week of 8–14 October 2026

Current Affairs: 8–14 October 2026

RBI raises the daily CRR minimum to 99% and curbs forex derivatives, September CPI at 5.54% and WPI at 11.39%, CCEA clears IDBI Bank sale to Fairfax, and the 2026 Nobel prizes.

Pareto Academy · 29 news items · quiz at the end

The week after the 7 October rate hike was busy for the RBI. It tightened liquidity through the CRR and an OMO sale, and it introduced the strictest forex-market measures in years to defend the rupee. September data then showed inflation rising sharply: retail inflation reached 5.54% and wholesale inflation 11.39%. On 14 October the government approved the long-awaited sale of IDBI Bank to Fairfax.

Banking & Finance

RBI raises daily minimum CRR maintenance from 90% to 99%

On 9 October 2026 the RBI issued a notification (RBI/2026-27/290) under Section 42(1) of the RBI Act, 1934. It raised the minimum CRR balance that scheduled banks must hold on every day of a reporting fortnight from 90% to 99% of the requirement, with effect from the fortnight beginning 16 October 2026. The CRR rate itself is unchanged at 3% of NDTL. The RBI cited a review of current liquidity conditions, and the move leaves banks almost no room to dip below the requirement on individual days.

Exam angle: CRR is kept as cash with the RBI under Section 42 of the RBI Act and earns no interest. SLR is kept under Section 24 of the Banking Regulation Act, 1949 and now stands at 18%. See CRR and SLR explained.

RBI curbs forex derivatives: no rebooking, and the "no-proof" limit cut from USD 100 million to USD 5 million

On 10 October 2026 the RBI issued A.P. (DIR Series) Circulars No. 25 and 26, "to ensure orderly functioning of the foreign exchange market". Under them, users may no longer rebook any cancelled INR forex derivative contract, whether deliverable or non-deliverable, though rollovers on maturity are still allowed. The amount up to which users can hedge without proving an underlying exposure falls from USD 100 million to USD 5 million. The same cut applies to exchange-traded currency derivatives across all recognised exchanges taken together. Users must also give an undertaking that the same exposure has not been hedged with another bank.

Exam angle: The RBI regulates the forex market under FEMA, 1999. A.P. (DIR Series) circulars are addressed to Authorised Dealer banks. See Exchange rate management.

New Foreign Exchange Risk Reserve (FERR): 20% cash with the RBI on large dollar-buying hedges

The 10 October package also created the Foreign Exchange Risk Reserve (FERR). For every INR forex derivative contract with a notional value above USD 2 million, Authorised Dealer banks must keep 20% of the rupee equivalent of the notional amount with the RBI in cash. The reserve applies to contracts that hedge current-account exposures in which the user buys foreign currency against the rupee. The RBI followed up with FAQs on the FERR on 15 October.

Exam angle: The FERR makes it costlier to buy dollars through derivatives at a time when the rupee is under pressure. It is a reserve in the style of the CRR, but it is imposed on forex contracts rather than on deposits.

RBI opens a special dollar window for IOC, HPCL and BPCL

On 10 October 2026 the RBI announced a special window to meet the entire daily dollar requirement of three public sector oil marketing companies: Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation. The RBI sells the dollars to them through designated banks. The facility started on 12 October 2026 and runs until further notice. Taking the oil importers' large dollar demand out of the market reduces pressure on the rupee.

Exam angle: India imports most of its crude oil, so oil companies' dollar purchases are a big source of demand for dollars in the spot market. A similar dollar-swap window for oil companies was used in August 2013.

RBI sells ₹25,000 crore of government bonds in an OMO to drain liquidity

On 9 October the RBI announced an open market operation (OMO) sale of Government of India securities for ₹25,000 crore. The auction was held on 13 October and the full amount was sold. The largest amounts were ₹9,415 crore of the 7.18% GS 2033 and ₹8,430 crore of the 6.10% GS 2031. Cut-off yields ranged from 7.14% to 7.39%. Earlier, on 8 October, a 29-day variable rate reverse repo (VRRR) auction absorbed ₹79,655 crore at 5.49%, against a notified amount of ₹2 lakh crore.

Exam angle: An OMO sale takes rupees out of the banking system, while an OMO purchase adds them, and VRRR auctions also absorb surplus liquidity. See OMOs and liquidity.

CCEA approves sale of 60.72% of IDBI Bank to Fairfax for ₹52,878 crore

On 14 October 2026 the Cabinet Committee on Economic Affairs (CCEA) approved 10955230 Canada Inc., a subsidiary of Fairfax Financial Holdings, as the strategic buyer of a 60.72% stake in IDBI Bank. Of that stake, 30.48% comes from the Government and 30.24% from LIC. The price is ₹81 a share, or ₹52,878.08 crore in total. The Government keeps 15% and LIC keeps 19%. The Finance Ministry calls the deal a "strategic restructuring" of the bank, and it still needs RBI approval before it closes.

Exam angle: IDBI Bank was placed under the RBI's Prompt Corrective Action framework on 5 May 2017, which the RBI lifted in March 2021. In 2019 LIC became its majority owner and the bank was reclassified as a private sector bank. See Public vs private banks.

RBI cancels registration of 23 NBFCs

On 9 October 2026 the RBI said it had cancelled the Certificates of Registration (CoR) of 13 NBFCs. It also said 10 other NBFCs had surrendered their CoRs, so their registrations were cancelled too. These 10 included Vivriti Capital and HCL Corporation, which surrendered because they exited NBFC business, became unregistered Core Investment Companies or Type I NBFCs, or merged. All the cancellations were made under Section 45-IA(6) of the RBI Act, 1934.

Exam angle: Section 45-IA of the RBI Act requires NBFCs to register with the RBI. Without a valid CoR a company cannot carry on the business of a non-banking financial institution. See RBI regulation of banks and NBFCs.

Economy

Retail inflation climbs to 5.54% in September 2026

On 12 October the National Statistics Office (MoSPI) released the September 2026 data. CPI inflation, on the new base year 2024=100, was 5.54%, up from 4.83% in August. Food inflation (CFPI) rose to 7.74% from 5.97%. Rural inflation was 6.08% and urban 4.88%. The reading is well above the RBI's 4% target and close to the upper tolerance limit of 6%.

Exam angle: Under the flexible inflation targeting framework, the RBI must keep CPI inflation at 4% within a band of 2% to 6%. See Inflation targeting in India.

Wholesale inflation jumps to 11.39% in September

The Ministry of Commerce and Industry released provisional WPI data on 14 October 2026. WPI inflation, on base 2022-23, was 11.39% in September, up from 9.92% in August. By group, fuel and power was 25.85%, manufactured products 9.76%, primary articles 8.67% and the WPI food index 8.66%. The main drivers were mineral oils, crude petroleum and natural gas, food articles and basic metals.

Exam angle: WPI is compiled by the Office of the Economic Adviser in DPIIT, while CPI is compiled by the NSO under MoSPI. See CPI vs WPI.

Forex reserves fall USD 12.95 billion to USD 734.6 billion

According to the RBI's Weekly Statistical Supplement of 9 October 2026, India's foreign exchange reserves were US$734.6 billion on 2 October 2026, down US$12.95 billion in a week. Foreign currency assets were US$604.7 billion, gold US$106.4 billion and SDRs US$18.7 billion. The reserves are well below the record of US$785.7 billion set on 4 September 2026, as the RBI has been selling dollars to support the rupee.

Exam angle: The reserves have four parts: foreign currency assets, gold, SDRs and the Reserve Tranche Position in the IMF. The RBI manages them under the RBI Act, 1934. See India's forex reserves.

IMF raises India's growth forecast to 7% in the October 2026 World Economic Outlook

The IMF released its October 2026 World Economic Outlook on 13 October. It projected India's growth at 7.0% for both FY2026-27 and FY2027-28. The FY27 forecast is 0.6 percentage points higher than in the July update. On a calendar-year basis it projected 7.4% growth in 2026. It expects India's consumer price inflation to rise to 5.0% in 2026, and global growth to be 3.1% in 2026.

Exam angle: The IMF is headquartered in Washington, D.C. It publishes the World Economic Outlook every April and October, with updates in January and July.

Government Schemes & Policy

57th GST Council removes arrest powers and raises the prosecution threshold to ₹5 crore

The 57th GST Council meeting was held on 8 October 2026 at Bharat Mandapam, New Delhi, chaired by Finance Minister Nirmala Sitharaman. It recommended removing arrest powers under GST by omitting Section 69 of the CGST Act, 2017, and raising the threshold for prosecution from ₹1 crore to ₹5 crore. It also recommended a minimum tax amount of ₹10,000 before a show cause notice can be issued, and the removal of several input tax credit restrictions under Section 17(5). In principle, it approved an optional simplified scheme for small consumer-facing businesses with turnover of up to ₹5 crore.

Exam angle: The GST Council is a constitutional body under Article 279A, added by the 101st Amendment Act of 2016. The Union Finance Minister is its chairperson.

Cabinet extends NSAP to 2030-31 and renames it Pradhan Mantri Samajik Sahayata Yojana

On 14 October 2026 the Union Cabinet approved continuing the National Social Assistance Programme (NSAP) for five years, from 2026-27 to 2030-31, with an outlay of ₹53,428 crore. The scheme will be renamed Pradhan Mantri Samajik Sahayata Yojana, and the old-age pension will become Pradhan Mantri Vridhavastha Pension Yojana. For the disability pension, the disability threshold drops from 80% to 40% and the minimum age requirement is removed. The scheme is expected to cover about 3.20 crore beneficiaries in all 36 States and UTs.

Exam angle: NSAP was launched on 15 August 1995 and is run by the Ministry of Rural Development. It gives effect to Article 41 of the Directive Principles of State Policy, which covers public assistance in old age, sickness and disablement.

78-day productivity-linked bonus for 11.4 lakh railway employees

On 14 October 2026 the Cabinet also approved a Productivity Linked Bonus (PLB) equal to 78 days' wages for 11,40,770 non-gazetted railway employees, at a cost of ₹2,009.61 crore. The maximum payable to each employee is ₹17,951. The Railways cited record freight loading of 1,670 million tonnes in 2025-26.

Exam angle: The PLB is paid every year before Durga Puja and Dussehra. Staff such as track maintainers, loco pilots, guards and station masters are eligible.

Lakshadweep declared fully literate under ULLAS

On 11 October 2026 Administrator Praful Patel declared Lakshadweep a fully literate Union Territory at a function in Kavaratti. All 1,113 non-literate adults identified in the initial survey passed the Foundational Literacy and Numeracy Assessment Test (FLNAT).

Exam angle: ULLAS (Nav Bharat Saaksharta Karyakram) is a centrally sponsored adult education scheme of the Ministry of Education for people aged 15 and above. It runs from 2022-23 to 2026-27 and is aligned with NEP 2020.

Appointments

Prakash Rajpurohit appointed Deputy Election Commissioner

On 10 October 2026 the Centre appointed Prakash Rajpurohit, a 2010-batch IAS officer of the Rajasthan cadre, as Deputy Election Commissioner until 8 April 2030. He was previously Joint Secretary in the Department of Defence Production. He replaces Sanjay Kumar, who was repatriated to his parent cadre in August 2026.

Exam angle: The Election Commission of India is set up under Article 324 of the Constitution. Deputy Election Commissioners are officers of the Commission's secretariat, not members of the Commission.

Awards & Honours

Nobel Prize in Literature 2026: Anne Carson

On 8 October 2026 the Swedish Academy awarded the Nobel Prize in Literature to the Canadian author Anne Carson, "for her bold and inventive oeuvre that, in playful dialogue with the classical tradition, has created new forms for contemporary literature".

Exam angle: The Swedish Academy in Stockholm awards the literature prize. The Nobel Prizes were first awarded in 1901.

Nobel Peace Prize 2026: Navi Pillay

On 9 October 2026 the Norwegian Nobel Committee awarded the Peace Prize to Navanethem "Navi" Pillay of South Africa, "for her efforts to promote peace and international law". She was born in Durban into a family of Indian Tamil origin. She has served as a judge of the International Criminal Tribunal for Rwanda and the International Criminal Court, and as UN High Commissioner for Human Rights.

Exam angle: The Peace Prize is the only Nobel awarded in Oslo, Norway, by a committee chosen by the Norwegian Parliament. All the other prizes are awarded in Stockholm.

Economics Nobel 2026: Robert E. Hall and Michael Woodford

On 12 October 2026 the Royal Swedish Academy of Sciences awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Robert E. Hall of Stanford University and Michael Woodford of Columbia University, "for microeconomic foundations of macroeconomic stabilisation". Their models help explain how central banks and governments can smooth out booms and recessions.

Exam angle: The Sveriges Riksbank, Sweden's central bank, set up the economics prize in 1968, and it was first awarded in 1969. Woodford's work underpins modern inflation targeting. See How monetary policy works in India.

Sunil Bharti Mittal named Knight of France's Legion of Honour

On 12 October 2026 French President Emmanuel Macron named Sunil Bharti Mittal, founder and chairman of Bharti Enterprises, a Chevalier (Knight) of the Legion of Honour. The award recognises his role in India–France economic ties and in telecommunications and digital infrastructure. The insignia is due to be presented at the French Embassy in New Delhi on 28 October 2026.

Exam angle: The Légion d'honneur, France's highest civilian honour, was founded by Napoleon Bonaparte in 1802. Mittal received the Padma Bhushan in 2007.

International

Australia's Milton Dick elected President of the Inter-Parliamentary Union

On 9 October 2026, at the 153rd IPU Assembly in Arusha, Tanzania, Milton Dick, Speaker of Australia's House of Representatives, was elected President of the Inter-Parliamentary Union for 2026–2029. He won 182 votes, against 124 for Azerbaijan's Sahiba Gafarova. He succeeds Tulia Ackson of Tanzania. An Indian parliamentary delegation led by Rajya Sabha Deputy Chairman Harivansh attended the Assembly.

Exam angle: The IPU, the global organisation of national parliaments, was founded in 1889 and is headquartered in Geneva.

Agreements & Summits

16th India–UK JETCO held in New Delhi

The 16th meeting of the India–UK Joint Economic and Trade Committee (JETCO) was held in New Delhi on 12 October 2026. It was co-chaired by Commerce and Industry Minister Piyush Goyal and UK Business and Trade Secretary Jonathan Reynolds. It was the first JETCO since negotiations on the India–UK Comprehensive Economic and Trade Agreement (CETA) began in January 2022. The two sides reviewed early trade under the CETA and agreed to exchange annual data on how businesses use it. The 17th JETCO will be held in the UK in 2027.

Exam angle: JETCO is the main ministerial forum on trade between India and the UK. The CETA is India's free trade agreement with the UK.

Defence

Coast Guard conducts SAREX-2026 off Paradip

On 8 October 2026 the Indian Coast Guard conducted the 12th National Maritime Search and Rescue Exercise (SAREX-2026) off Paradip, Odisha, under the National Maritime Search and Rescue Board. The scenario was a mass rescue after a passenger aircraft carrying 228 people ditched at sea and hit a container vessel. Thirty-two observers from 30 countries watched the exercise.

Exam angle: The Indian Coast Guard comes under the Ministry of Defence and was formally established by the Coast Guard Act, 1978. Coast Guard Day is observed on 1 February.

GRSE launches 'Shreyas', the third Next Generation Offshore Patrol Vessel

On 10 October 2026 Garden Reach Shipbuilders and Engineers (GRSE), Kolkata, launched Yard 3040 'Shreyas', the third of the four Next Generation Offshore Patrol Vessels (NGOPVs) it is building for the Indian Navy. Vice Chief of the Naval Staff Vice Admiral Ajay Kochhar was the chief guest. The 11-ship NGOPV programme was contracted in March 2023, with seven ships at Goa Shipyard and four at GRSE. Each ship is about 113 m long and displaces about 3,000 tonnes.

Exam angle: GRSE is a defence shipyard under the Ministry of Defence, headquartered in Kolkata. Its earlier NGOPVs, Sanghmitra and Shruti, were launched in May and August 2026.

Sports

Verstappen wins the Singapore Grand Prix for the first time

Max Verstappen won the Formula 1 Singapore Grand Prix at the Marina Bay Street Circuit on 11 October 2026. He started from pole and led every lap. Charles Leclerc (Ferrari) finished second and championship leader Kimi Antonelli (Mercedes) third. It was Verstappen's first win in Singapore, and he also won the sprint race that weekend.

Exam angle: The Singapore GP was F1's first night race, in 2008. India hosted the F1 Indian Grand Prix at the Buddh International Circuit from 2011 to 2013.

Reports & Indices

WWF Living Planet Report 2026: monitored wildlife down 73% on average since 1970

WWF and the Zoological Society of London released the Living Planet Report 2026 on 8 October. It found that monitored wildlife populations fell by an average of 73% between 1970 and 2022, based on 35,803 population trends covering 5,790 vertebrate species. Freshwater populations fell most (85%), followed by terrestrial (69%) and marine (59%) populations. By region, Latin America and the Caribbean fell 95% and Asia-Pacific 49%.

Exam angle: WWF was founded in 1961 and is headquartered in Gland, Switzerland. The Living Planet Report is published every two years.

Global Hunger Index 2026: India ranked 100th of 122

The Global Hunger Index 2026, reported on 14 October, ranks India 100th of 122 countries with a score of 24.1, in the "serious" category. India ranked 102nd last year. Child stunting in India has fallen from 50.0% in 2000 to 29.3%, but child wasting remains high. South Asia scores 23.5, against a world score of 18.1.

Exam angle: The GHI is a peer-reviewed annual report led by Welthungerhilfe of Germany. It uses four indicators: undernourishment, child stunting, child wasting and child mortality.

Important Days

Indian Air Force Day, 8 October: 94th anniversary

The Indian Air Force celebrated its 94th anniversary on 8 October 2026, with the main parade and flypast at Air Force Station Hindon, Ghaziabad. On 6 October the government had named Air Marshal Ashutosh Dixit the 29th Chief of the Air Staff. He will succeed Air Chief Marshal A.P. Singh on 31 October.

Exam angle: The IAF was raised on 8 October 1932 as an auxiliary force of the Royal Air Force. Its motto, "Nabhah Sparsham Deeptam" ("Touch the sky with glory"), comes from the Bhagavad Gita.

World Mental Health Day, 10 October

World Mental Health Day was observed on 10 October 2026 on the theme "Lived Experiences Heard: Real Voices, Real Change", announced by the World Federation for Mental Health (WFMH). The theme calls for the experiences of people living with mental health conditions to shape policies and services.

Exam angle: The WFMH first observed the day in 1992. India's national tele-mental health helpline, Tele-MANAS, can be reached on 14416.

Quick quiz

From which fortnight does the RBI's 99% daily minimum CRR maintenance requirement apply?

  • (a) Fortnight beginning 1 October 2026
  • (b) Fortnight beginning 9 October 2026
  • (c) Fortnight beginning 16 October 2026
  • (d) Fortnight beginning 1 November 2026
  • (e) Fortnight beginning 16 November 2026
Show answer

Answer: (c) The 9 October notification raised the daily minimum from 90% to 99% from the fortnight beginning 16 October 2026. The CRR rate stays at 3%.

Under the Foreign Exchange Risk Reserve (FERR), what must Authorised Dealers keep with the RBI on qualifying INR derivative contracts above USD 2 million?

  • (a) 5% in government securities
  • (b) 10% in cash
  • (c) 15% in gold
  • (d) 20% in cash
  • (e) 25% in cash
Show answer

Answer: (d) The FERR is a cash reserve equal to 20% of the rupee equivalent of the notional amount of each qualifying contract.

On 10 October 2026 the RBI cut the threshold for hedging without proving an underlying exposure from USD 100 million to:

  • (a) USD 50 million
  • (b) USD 25 million
  • (c) USD 10 million
  • (d) USD 2 million
  • (e) USD 5 million
Show answer

Answer: (e) The threshold was cut to USD 5 million equivalent across all Authorised Dealers, and also across all recognised exchanges taken together.

Which of these is NOT one of the three oil marketing companies covered by the RBI's special dollar window?

  • (a) ONGC
  • (b) Indian Oil Corporation
  • (c) HPCL
  • (d) BPCL
  • (e) All three are covered
Show answer

Answer: (a) The window covers IOC, HPCL and BPCL. ONGC is an exploration and production company, not an oil marketing company.

What was the size of the RBI's OMO sale auction held on 13 October 2026?

  • (a) ₹10,000 crore
  • (b) ₹25,000 crore
  • (c) ₹36,000 crore
  • (d) ₹50,000 crore
  • (e) ₹79,655 crore
Show answer

Answer: (b) The RBI sold ₹25,000 crore of government securities to absorb liquidity.

Who is the strategic buyer of the 60.72% stake in IDBI Bank approved by the CCEA on 14 October 2026?

  • (a) Emirates NBD
  • (b) Kotak Mahindra Bank
  • (c) A subsidiary of Fairfax Financial Holdings
  • (d) SMBC
  • (e) Prem Watsa's personal trust
Show answer

Answer: (c) The buyer is 10955230 Canada Inc., a subsidiary of Fairfax Financial Holdings, paying ₹81 a share (₹52,878 crore).

Under which section of the RBI Act, 1934 did the RBI cancel the registrations of 23 NBFCs?

  • (a) Section 7
  • (b) Section 17
  • (c) Section 42(1)
  • (d) Section 45-IA(6)
  • (e) Section 45-L
Show answer

Answer: (d) Section 45-IA governs NBFC registration, and sub-section (6) lets the RBI cancel a Certificate of Registration.

What was CPI inflation in September 2026 (base 2024=100)?

  • (a) 4.83%
  • (b) 5.54%
  • (c) 6.08%
  • (d) 7.74%
  • (e) 11.39%
Show answer

Answer: (b) Headline CPI inflation was 5.54%, up from 4.83% in August. 7.74% was food inflation and 6.08% was rural inflation.

Which WPI group recorded the highest inflation in September 2026?

  • (a) Primary articles
  • (b) Manufactured products
  • (c) WPI food index
  • (d) Fuel and power
  • (e) Basic metals
Show answer

Answer: (d) Fuel and power inflation was 25.85%, far above manufactured products (9.76%) and primary articles (8.67%).

The IMF's October 2026 World Economic Outlook projected India's growth for FY2026-27 at:

  • (a) 6.4%
  • (b) 6.6%
  • (c) 7.0%
  • (d) 7.4%
  • (e) 7.8%
Show answer

Answer: (c) The IMF projected 7.0% for FY27, up 0.6 percentage points from July. Its calendar-year 2026 figure is 7.4%.

The 57th GST Council recommended raising the monetary threshold for prosecution under GST from ₹1 crore to:

  • (a) ₹2 crore
  • (b) ₹3 crore
  • (c) ₹5 crore
  • (d) ₹10 crore
  • (e) ₹25 crore
Show answer

Answer: (c) The Council recommended a ₹5 crore threshold and the removal of arrest powers by omitting Section 69 of the CGST Act.

What is the new name of the National Social Assistance Programme?

  • (a) Pradhan Mantri Jan Kalyan Yojana
  • (b) Pradhan Mantri Samajik Sahayata Yojana
  • (c) Pradhan Mantri Vridhavastha Pension Yojana
  • (d) Pradhan Mantri Garib Kalyan Yojana
  • (e) Atal Samajik Suraksha Yojana
Show answer

Answer: (b) NSAP becomes the Pradhan Mantri Samajik Sahayata Yojana. Pradhan Mantri Vridhavastha Pension Yojana is the new name of its old-age pension sub-scheme.

Who won the 2026 Nobel Peace Prize?

  • (a) Anne Carson
  • (b) Michael Woodford
  • (c) Navi Pillay
  • (d) Tulia Ackson
  • (e) Francis Halzen
Show answer

Answer: (c) Navanethem "Navi" Pillay of South Africa won "for her efforts to promote peace and international law".

Where was the 153rd Assembly of the Inter-Parliamentary Union held, at which Milton Dick was elected IPU President?

  • (a) Geneva, Switzerland
  • (b) Arusha, Tanzania
  • (c) Nairobi, Kenya
  • (d) New Delhi, India
  • (e) Tashkent, Uzbekistan
Show answer

Answer: (b) The 153rd IPU Assembly was held in Arusha, Tanzania. Dick was elected on 9 October 2026.

Which shipyard launched the NGOPV 'Shreyas' for the Indian Navy on 10 October 2026?

  • (a) Mazagon Dock Shipbuilders
  • (b) Cochin Shipyard
  • (c) Goa Shipyard
  • (d) Hindustan Shipyard
  • (e) Garden Reach Shipbuilders and Engineers
Show answer

Answer: (e) GRSE, Kolkata, launched Shreyas, the third of the four NGOPVs it is building.

Sources

(accessed 24 October 2026)