Context: In February 2026, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹11.50 lakh on Mahindra & Mahindra Financial Services Limited (MMFSL) for regulatory non-compliances observed during its annual inspection. The inspection was conducted with reference to the company’s financial position as on 31 March 2025 (FY25). Legal Provisions Invoked The penalty was levied under: These provisions empower RBI to impose penalties on Non-Banking Financial Companies (NBFCs) for regulatory violations. Reasons for the Penalty 1. Violation of Fair Practices Code 2. Complaint-Handling Deficiencies RBI observed lapses in the company’s grievance redressal mechanism: Regulatory Action Taken

Source: The Hindu Context: India’s industrial output growth moderated in January 2026, indicating a broad-based slowdown across key sectors including manufacturing, mining, and electricity. What is IIP? The Index of Industrial Production measures the performance of industrial sectors such as manufacturing, mining, and electricity. It is a key high-frequency indicator of economic growth and industrial activity in India. Key Highlights of January 2026 IIP Data This moderation signals a cooling of industrial momentum after December’s 26-month high. Sector-wise Performance Manufacturing Sector Manufacturing, which carries the highest weight in IIP, was the primary drag on overall industrial growth. Mining Sector The slowdown reflects moderation in raw material extraction activity. Electricity Sector Despite moderation, electricity output remains stronger compared to last year. Infrastructure Sector: A Bright Spot The infrastructure segment recorded 13.7% growth, the fastest since August 2023. This was the only major sector to show accelerating growth, reflecting continued public capital expenditure and strong core sector activity. What This Means for the Indian Economy

Source: The Hindu Context: Fino Payments Bank clarified that its transition to a Small Finance Bank (SFB) remains on schedule despite recent developments involving its Managing Director and CEO. Background Fino Payments Bank received in-principle approval from the Reserve Bank of India to transition into a Small Finance Bank (SFB). This comes amid the arrest of its Managing Director and CEO, Rishi Gupta, in connection with alleged Goods and Services Tax (GST)-related violations. What is a Small Finance Bank (SFB)? Small Finance Banks are financial institutions licensed by the RBI to: Unlike Payments Banks, SFBs can: Payments Bank vs Small Finance Bank (SFB) Basis of Comparison Payments Bank Small Finance Bank (SFB) Regulator Reserve Bank of India Reserve Bank of India Objective Promote financial inclusion through payments and deposit services Promote financial inclusion through deposits and credit delivery Lending Facility Not allowed to lend Allowed to provide loans Deposit Acceptance Demand deposits only (subject to RBI cap) Demand and time deposits allowed Revenue Model Transaction fees, remittances, third-party product distribution Interest income from loans + fee-based services Priority Sector Lending (PSL) No mandatory 75% PSL norm Minimum 75% of ANBC to priority sector Capital Requirement Minimum ₹100 crore Minimum ₹200 crore Target Customers Migrant workers, low-income households, small businesses MSMEs, small farmers, informal sector, low-income individuals Banking Scope Limited banking functions Full-service banking (within SFB framework) Investment Pattern Major portion invested in government securities Diversified lending and investment portfolio 4. EPFO Retains EPF Interest Rate at 8.25% for FY26

Source: FE Context: The Employees’ Provident Fund Organisation (EPFO) has recommended retaining the Employees’ Provident Fund (EPF) interest rate at 8.25% for FY 2025–26. Key Decision The Employees’ Provident Fund Organisation has recommended: This decision maintains stability in returns for over 6 crore EPF subscribers. Historical Trend of EPF Interest Rates The FY22 rate of 8.1% was the lowest in nearly 40 years, reflecting subdued earnings and broader economic pressures at that time. What is EPF? The Employees’ Provident Fund (EPF) is: It provides:

Source: BS Context: Amid a sharp surge in retail investor participation, the Securities and Exchange Board of India (SEBI) has strengthened its surveillance and technology-driven enforcement framework to tackle rising pre-investment scams. SEBI Chairman Tuhin Kanta Pandey highlighted growing instances where aspiring investors are defrauded even before engaging with SEBI-registered intermediaries. What Are Pre-Investment Scams? Pre-investment scams involve fraudsters: In many cases, funds are siphoned off before investors interact with regulated brokers or investment platforms.

Source: Mint Context: The Securities and Exchange Board of India (SEBI) has tightened norms for thematic and sectoral mutual funds by introducing a 50% portfolio overlap cap within schemes of the same fund house. According to an analysis by Elara Securities, the move is set to trigger portfolio restructuring across multiple schemes. What is the 50% Overlap Rule? Key Findings from Elara Securities Report Why SEBI Introduced the Rule

Source: Mint India’s National Health Authority (NHA) has introduced eSushrut@Clinic, a free digital platform aimed at small and mid-sized clinics, seeking to replicate the transformational impact of BHIM UPI in digital payments within the healthcare sector. The platform has been developed by the Centre for Development of Advanced Computing (CDAC) and is integrated with the Ayushman Bharat Digital Mission (ABDM). What is eSushrut@Clinic? It is a SaaS-based (Software-as-a-Service) lightweight digital system, designed as a simpler alternative to expensive and complex Hospital Information Management Systems (HIMS). It enables clinics to: Clinics can use it via a simple web browser, without investing in heavy IT infrastructure. Key Feature: Smart Assistant (CDSS) The platform includes a Clinical Decision Support System (CDSS) that:

Source: BS India has begun a gradual, long-term process to make the rupee more widely used in global trade and finance. While progress is modest so far, policymakers view it as the beginning of a multi-decade transformation. Current Status The Reserve Bank of India (RBI) now tracks how much of India’s trade is invoiced and settled in rupees. These numbers are small but signal early movement away from exclusive reliance on hard currencies like the US dollar. Why India Wants Rupee Internationalisation Key Policy Steps Taken 1. Local Currency Trade Arrangements India has signed agreements with countries such as the UAE, Indonesia, Maldives, and Mauritius to settle trade in local currencies. 2. Incentives for Rupee Invoicing Exporters receive equal benefits whether they invoice trade in rupees or dollars. 3. Expanding Offshore Rupee Use 4. Integration into Global Financial Markets Indian government bonds are being added to major global emerging-market indices — a key step toward wider rupee acceptance. Risks and Concerns Some fear wider rupee use could cause: