10 February 2026 Current Affairs

Banking, Monetary Policy & Financial Regulation

Risk-Based Premium (RBP) for Deposit Insurance – DICGC

• DICGC, with RBI approval, introduced a Risk-Based Premium framework for deposit insurance.

• Premiums payable by banks will now reflect their risk profile , incentivising better risk management.

• Exam relevance:

  • Banking supervision reforms

  • Strengthening depositor protection

  • Shift from uniform pricing to risk-sensitive regulation.

RBI Draft Rules on Credit Derivatives & Total Return Swaps (TRS)

• Draft framework covers derivatives on credit indices and TRS linked to corporate bonds .

• Aim: Deepen corporate bond market, enable hedging of credit risk.

• Useful for GS-III: Financial market development, risk management instruments.

NBFC Registration Relaxation Proposal

• RBI proposed exempting NBFCs with assets below ₹1,000 crore from mandatory registration.

• Rationale: Lower systemic risk; focus supervisory resources on larger entities.

• Exam angle: Proportionate regulation and financial stability.

59th Monetary Policy Committee (MPC) Meeting

• Held 4–6 February 2026 , chaired by RBI Governor Sanjay Malhotra .

• Context: Sixth bi-monthly policy of FY 2025-26.

• Key relevance: Monetary policy transmission, inflation targeting framework.

Penalty on Vinayaka Capsec Pvt Ltd

• RBI imposed ₹1 lakh penalty for regulatory non-compliance.

• Demonstrates enforcement of supervisory discipline.

Measures for Urban Co-operative Banks (UCBs)

• RBI announced four steps to improve:

  • Credit expansion

  • Operational efficiency

  • Governance capacity

• Exam linkage: Financial inclusion and cooperative banking reform.

Digitalisation of FPI Onboarding

• Kotak Mahindra Bank became the first custodian to issue FPI licence via end-to-end e-signature onboarding .

• Reflects digitisation of capital market processes.

Insurance Distribution Expansion