RBI Functions and Autonomy — Current Affairs 2026
Current Affairs Connections
RBI launches pilot project for Central Bank Digital Currency (CBDC) in retail segment
December 2022The digital rupee pilot represents RBI's attempt to balance innovation with monetary control, demonstrating how central bank functions evolve with technology. The project involves select banks and merchants in four cities, testing the feasibility of digital currency for retail transactions while maintaining RBI's monopoly over currency issuance.
UPSC Angle: Questions may test understanding of CBDC's implications for monetary policy transmission, financial inclusion, and RBI's currency management functions
RBI imposes restrictions on Paytm Payments Bank over compliance failures
January 2024The action against Paytm Payments Bank demonstrates RBI's supervisory authority over new-age financial institutions. The restrictions on onboarding new customers and conducting certain transactions highlight how RBI's traditional banking supervision powers apply to fintech entities, showing the evolution of regulatory scope.
UPSC Angle: Expected questions on RBI's regulatory approach to fintech, the balance between innovation and consumer protection, and the application of banking regulations to digital payment platforms