Source: TH Context: The National Stock Exchange (NSE) has received approval from the Securities and Exchange Board of India (SEBI) to launch Indian Natural Gas futures. This marks a step toward market-based price discovery for natural gas in India. Key Features of the Futures Contracts What Are Futures Contracts Common in commodities like oil, metals, and agricultural products.
Capital Market Stocks Fall After RBI Tightens Collateral Rules
Source: BS Context: Shares of brokerage firms and capital market intermediaries fell after the Reserve Bank of India (RBI) introduced stricter collateral and lending norms for loans to capital market participants. The move is aimed at reducing leverage and strengthening financial stability, but it raises funding costs for brokers. Key Regulatory Changes by RBI 1. Full Collateral Requirement 2. Higher Haircut on Equity Collateral 3. Margin Trading Funding (MTF) Norms Who Are Capital Market Intermediaries (CMIs)? Entities involved in securities market operations, such as:
SEBI’s New ETF Proposals
Source: Mint Context: The Securities and Exchange Board of India (SEBI) has proposed reforms for Exchange Traded Funds (ETFs) to improve pricing accuracy and better manage market volatility. A consultation paper is open for public comments until 6 March. What Are ETFs? NAV = Total asset value – expenses ÷ number of units. Key Proposed Changes 1. Change in Base Price Calculation (Major Reform) Current system: Proposed system: Possible reference values: ➡ Reduces pricing lag. 2. Review of Price Bands Current price movement limits: SEBI may: 3. Commodity ETF Reforms (Gold & Silver) Reason:
AI in Indian Agriculture & Dairy
Source: Mint Context: Farmers in Maharashtra and dairy producers in Gujarat are increasingly using AI-based digital advisory tools to replace or supplement traditional knowledge networks (“village universities”) and limited access to agricultural experts. Two major examples: Structural Problem AI Is Trying to Solve Decline of Traditional Knowledge Networks Earlier: Now: ➡ Farmers rely on quickest advice source. Model 1 — MahaVISTAAR (Crop Advisory AI) A state-backed digital platform integrating: Key Innovation Source-verified knowledge pipeline ➡ Emphasis on credibility and scientific authority. Benefits Observed Model 2 — Amul’s “Sarlaben” AI (Dairy Advisory) AI-powered voice assistant for livestock management. Functions: Problem It Addresses ➡ Provides immediate first-level guidance
RBI Eases Cost and Maturity Rules in New ECB Regime (2026)
Source: BS Context: The Reserve Bank of India (RBI) has amended the External Commercial Borrowing (ECB) framework through the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026. Objective → rationalise and liberalise the ECB regime to improve access to foreign capital. What is External Commercial Borrowing (ECB)? Key Objectives of the Revised Framework Major Changes Introduced 1. Expansion of Eligible Participants 2. Removal of Borrowing Cost Restrictions ➡ More flexibility in negotiating loan terms. 3. Rationalisation of Maturity and Borrowing Limits 4. End-Use Clarifications ECB funds may now be used for: However: 5. On-Lending by RBI-Regulated Entities 6. Changes Related to Authorised Dealer (AD) Banks 7. Simplified Reporting Requirements 8. Clarifications on Financial Instruments
CBDC-Based Public Distribution System (PDS)
Source: PIB Context: On 15 February 2026, the Union Home Minister Amit Shah launched India’s first Central Bank Digital Currency (CBDC)-based Public Distribution System (PDS) in Gandhinagar, Gujarat. It aims to make ration distribution transparent, modern, and leakage-free using the Digital Rupee. What is CBDC-Based PDS? A digitised ration distribution system where beneficiaries receive programmable digital coupons (e₹) issued by the Reserve Bank of India and redeem them at Fair Price Shops (FPS) to obtain subsidised food grains. Institutional Collaboration How the System Works Purpose Key Features ✔ Programmable Digital Rupee (e₹) for welfare delivery✔ Direct digital coupon transfer✔ Redeemable at Fair Price Shops✔ Reduced dependency on biometric authentication✔ Improved tracking and monitoring✔ Transparent subsidy delivery
NPCI Extends “UPI One World” to AI Summit Foreign Visitors
Source: TH Context: The National Payments Corporation of India (NPCI) has extended UPI One World wallet services to international visitors attending the India AI Impact Summit 2026 (Feb 16–20, New Delhi). This is a pilot initiative to facilitate seamless digital payments for foreign travellers. What is UPI One World? Key Features of the Initiative Purpose of the Pilot
Unemployment in India Rises to 5% in January: Periodic Labour Force Survey (PLFS)
Source: TH Context: According to the Periodic Labour Force Survey (PLFS), India’s unemployment rate (UR) among persons aged 15 years and above rose slightly to 5% in January 2026, up from 4.8% in December 2025. Key Findings of the Survey 1. Marginal Rise in Unemployment 2. Decline in Labour Market Indicators The survey reported a fall in: ➡ Decline in both rural and urban regions. About Periodic Labour Force Survey (PLFS) Important Labour Market Indicators
Daily Current Affairs (DCA) 15&16 February, 2026
Daily Current Affairs Quiz15 & 16 February, 2026 National Affairs 1. New Urban Challenge Fund (UCF) Source: PIB Why in News? The Union Cabinet has approved the Urban Challenge Fund (UCF), a new Centrally Sponsored Scheme aimed at financing large-scale urban infrastructure through market-linked funding and competitive project selection. Key Features of Urban Challenge Fund Funding Structure Expected total investment mobilised: About ₹4 lakh crore in the urban sector over five years. Coverage and Eligibility Eligible Cities Special Support Mechanism Objectives of the Fund 2. Seva Teerth & Kartavya Bhavan 1 & 2 Source: News on Air Why in News? The inauguration of Seva Teerth and Kartavya Bhavan 1 & 2 marks a major step in restructuring India’s administrative infrastructure to enable modern, efficient and citizen-centric governance. What Are These Complexes? They are new central government administrative complexes designed to: They form part of the broader transformation of India’s governance architecture. Seva Teerth — Key Features Houses major decision-making institutions: These were earlier located separately. Purpose → Improve strategic coordination and executive functioning. Kartavya Bhavan 1 & 2 — Key Features Accommodates major Union ministries, including: Purpose → Administrative integration and operational efficiency. 3. The Sangtam Community (Nagaland) Source: TH Why in News? The apex body of Nagaland’s Sangtam community has passed a resolution to protect pangolins within its jurisdiction, highlighting the role of indigenous communities in wildlife conservation. Who are the Sangtam? Origin and Historical Background 3. AI Impact Summit 2026 & India AI Expo Source: PIB Why in News? India is hosting the AI Impact Summit 2026 in New Delhi, with the Prime Minister inaugurating the India AI Impact Expo 2026. The summit brings together global leaders, policymakers, and technology companies to discuss the opportunities and challenges of Artificial Intelligence. Event Overview Significance → First time the summit is hosted in a Global South country. India AI Impact Expo 2026 4. New Army Ant Species Discovered in Eastern Ghats Why in News? Scientists from Karnataka and Odisha have discovered two new army ant species in the Eastern Ghats of Andhra Pradesh, highlighting the region’s rich biodiversity. Newly Discovered Species Location of Discovery What Are Army Ants? Army ants are highly social, nomadic predatory ants known for: They are among the most efficient collective predators in tropical ecosystems. 5. ISRO Launch Vehicle Debris Found in Maldives Source: TH Why in News? Debris bearing the ISRO logo and India’s National Emblem has been found on an uninhabited island in the Maldives. The object is believed to be part of a launch vehicle payload fairing. Key Details Possible Mission Link About Payload Fairing About LVM3 (Launch Vehicle Mark-3) Uses Banking/Finance 1. Commercial Papers (CPs) vs Certificates of Deposit (CDs) Source: BS Why in News? Investors are increasingly shifting from Commercial Papers (CPs) to Certificates of Deposit (CDs) due to higher CD issuances, better yields, and lower perceived credit risk. Key Trend Commercial Papers (CPs) vs Certificates of Deposit (CDs) Basis Commercial Paper (CP) Certificate of Deposit (CD) Definition Short-term unsecured promissory note issued for working capital needs Short-term negotiable time deposit issued to raise funds Issuer Corporates, financial institutions, NBFCs Banks and select financial institutions Nature of Instrument Unsecured debt Bank deposit instrument Purpose Corporate short-term financing Bank short-term liquidity management Credit Risk Higher (depends on corporate creditworthiness) Lower (issued by regulated banks) Return / Yield Generally higher to compensate for higher risk Usually slightly lower but currently rising due to demand Liquidity Tradable but relatively less liquid More liquid and widely traded Investor Base Mutual funds, banks, institutions, corporates Mutual funds, banks, institutions, corporates Regulation Regulated by RBI guidelines for money market instruments Regulated by RBI banking and money market norms Typical Maturity 7 days to 1 year 7 days to 1 year (banks) Collateral Requirement No collateral (unsecured) Backed by bank’s financial strength Risk Perception Sensitive to corporate financial health Considered safer due to bank backing Market Trend (Recent) Issuances declining Issuances rising Main Reason for Current Shift Higher perceived risk, competitive bank lending Higher yields, better liquidity, strong bank demand Economic Indicator Reflects corporate borrowing conditions Reflects banking system liquidity needs Why Investors Are Shifting from CPs to CDs Factor Explanation Impact on Market Higher Yields Rising interest rates on CDs have made them more attractive than CPs. Investors shift funds toward CDs for better returns. Lower Credit Risk CDs are issued by banks, which are perceived safer than corporate issuers of CPs. Preference for risk-adjusted returns increases demand for CDs. Greater Liquidity CDs are more easily tradable in secondary markets. Investors prefer CDs for flexibility and easier exit. Higher Bank Issuances Banks are issuing more CDs to meet funding needs. Increased supply boosts CD market share. Why Banks Are Issuing More Certificates of Deposit (CDs) Driver Explanation Effect Credit–Deposit Gap Loan demand growing faster than deposit growth. Banks raise short-term funds via CDs. Credit Growth Around 13.1% year-on-year growth. Higher funding requirement for lending. Deposit Growth Around 10.6% year-on-year growth. Insufficient deposit mobilisation. Deposit Tightness Weak retail deposit growth and intense competition for deposits. Banks rely more on market borrowing (CDs). Liquidity & Monetary Conditions RBI liquidity measures influence short-term interest rates. CDs become flexible and responsive funding tool. 2. RBI Restores Default Loss Guarantees (DLGs) for NBFCs Source: ET Why in News? The Reserve Bank of India (RBI) has restored the use of Default Loss Guarantees (DLGs) for Non-Banking Financial Companies (NBFCs), reversing earlier restrictions that increased provisioning requirements for loans sourced through fintech partnerships. What Is the Decision? Background — Earlier RBI Rule (2025) Impact: What Are Default Loss Guarantees (DLGs)? A DLG is a risk-sharing arrangement in digital lending: Purpose → Reduce lender risk and enable credit expansion. 3. RBI Initiates Talks to Ease Overseas Investment (OI) Norms Source: ET Why in News? The Reserve Bank of India (RBI) has begun consultations with banks to review and simplify overseas investment rules, following industry concerns over procedural hurdles and regulatory ambiguities. What Is the Development? This has raised expectations of policy changes to facilitate
New Urban Challenge Fund (UCF)
Source: PIB Why in News? The Union Cabinet has approved the Urban Challenge Fund (UCF), a new Centrally Sponsored Scheme aimed at financing large-scale urban infrastructure through market-linked funding and competitive project selection. Key Features of Urban Challenge Fund Funding Structure Expected total investment mobilised: About â‚ą4 lakh crore in the urban sector over five years. Coverage and Eligibility Eligible Cities Special Support Mechanism Objectives of the Fund
