Source: TH Context: India’s retail inflation (CPI) rose to a three-month high of 1.33% in December 2025, remaining below the lower tolerance level of 2% set by the Reserve Bank of India. What is Retail Inflation? Retail inflation measures the rate at which prices of goods and services bought by households rise over time. In India, it is tracked using the Consumer Price Index (CPI).

Source: Mint Context: The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing a major overhaul of trading regulations by simplifying legacy rules and delegating greater supervisory powers to stock exchanges. What is Being Proposed? Key Proposed Changes Shift in Regulatory Approach

Context: The Reserve Bank of India (RBI) has signalled stricter supervisory scrutiny over banks’ digital operations, compliance practices, third-party outsourcing and use of artificial intelligence, as financial systems become faster, more interconnected and technology-driven. Three Key Regulatory Expectations 1. Continuous Compliance (Not Episodic) 2. Stronger Oversight of Third-Party Arrangements 3. Heightened Scrutiny of AI and Analytics

Source: BL Context: The Reserve Bank of India (RBI) is expected to release an updated list of ‘Upper Layer’ Non-Banking Financial Companies (NBFCs) by mid-2026, with a strong possibility of including large NBFCs promoted by banks or backed by strong corporate promoters. RBI’s Scale-Based Regulatory (SBR) Framework The Scale-Based Regulatory (SBR) Framework is a risk-based regulatory architecture introduced by the Reserve Bank of India for Non-Banking Financial Companies (NBFCs).It links the intensity of regulation to the size, complexity, and systemic risk posed by NBFCs. Objectives Four-Tier Classification under SBR 1. Base Layer (NBFC-BL) 2. Middle Layer (NBFC-ML) 3. Upper Layer (NBFC-UL) 4. Top Layer (NBFC-TL) Key Regulatory Features

Source: BL Context: The Insurance Regulatory and Development Authority of India (IRDAI) has sought explanations from 23 insurance companies—8 life insurers and 15 non-life insurers—for overshooting prescribed limits on expenses of management, mainly commissions. Background IRDAI (Expenses of Management, including Commission, of Insurers) Regulations, 2024 These regulations, notified by the Insurance Regulatory and Development Authority of India, lay down a new, flexible framework to regulate Expenses of Management (EoM) of insurers, including commission and distribution expenses. They replace the rigid product-wise expense caps with an overall EoM-based approach. Objectives Key Provisions 1. Expenses of Management (EoM) Concept EoM includes: Regulated through an overall EoM ratio, not individual product caps. 2. EoM Limits (Overall Ceiling) 3. Flexibility in Commission 4. Board & Governance Requirements 5. Disclosure & Oversight

Context: Axis Finance, a non-banking financial company (NBFC), has launched Vyapar Business Loan, a collateral-free credit product aimed at supporting micro and small businesses (MSMEs), especially in semi-urban and rural markets. Key Features of Vyapar Business Loan