Context: RBI has released a discussion paper to review the Flexible Inflation Targeting (FIT) framework as the current 4% CPI target (with a 2–6% band) ends in March 2026. RBI warns that raising the target could weaken policy credibility and undo past gains. Why Retain the 4% Target? Headline vs. Core Inflation RBI’s Stand: Flexible Inflation Targeting (FIT) Benefits of FIT So Far IE

Context: The Reserve Bank of India (RBI) has officially allowed Federal Bank to collect government receipts on behalf of Maharashtra through the Government Receipt Accounting System (GRAS) portal. This authorization broadens the number of banks that can accept both digital and in-person payments for state dues like stamp duty and taxes. About the GRAS Portal What Will Change? Once integrated with GRAS, Federal Bank customers can: About Federal Bank ET

Context: The Reserve Bank of India (RBI) has proposed to widen the scope of capital charge for Counterparty Credit Risk (CCR) to include derivatives in equity, precious metals (excluding gold), and other commodities. Key Highlights: Counterparty Credit Risk (CCR) Counterparty Credit Risk (CCR) is the risk that the other party in a financial transaction (the counterparty) may fail to meet its obligations before the final settlement of the transaction. It is most common in derivatives, securities financing, and trading transactions. Key Features of CCR: Why It Matters? BS

Context: The Advisory Board for Banking and Financial Frauds (ABBFF) has been reconstituted for a two-year term, effective August 21, 2025. Functions as a ‘Safety Valve’ for bankers, providing advice before criminal investigations in major fraud cases. Advisory Board for Banking and Financial Frauds (ABBFF): The Advisory Board for Banking and Financial Frauds (ABBFF) is a high-level panel set up by the Central Vigilance Commission (CVC) to examine the role of senior officials of Public Sector Banks (PSBs), Public Sector Insurance Companies, and Public Sector Financial Institutions in large fraud cases. Key Points: BS

Context: L&T Finance Ltd. (LTF), one of India’s leading non-banking financial companies (NBFCs), has partnered with Google Pay to provide personal loans directly via the digital payments platform. Key Highlights: Mint

Context: At the 30th anniversary of the Association of Mutual Funds in India (AMFI), SEBI Chairperson Tuhin Kanta Pandey highlighted key regulatory concerns for the mutual fund industry, focusing on risk management, investor protection, and transparency. Key Highlights: 1. Micro-Cap Investments (Small Companies) 2. Chhoti SIPs (Small Monthly Investments) 3. Investor Confidence (Trust in Markets) BS