A. Certificates of Authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 for Setting up and Operating Payment System in India

The Payment and Settlement Systems Act, 2007 along with the Board for Regulation and Supervision of Payment and Settlement Systems Regulations, 2008 and the Payment and Settlement Systems Regulations, 2008 have come into effect from 12th August 2008.

The list of 'Payment System Operators’ authorised by the Reserve Bank of India to set up and operate in India under the Payment and Settlement Systems Act, 2007 is as under:

B. Certificates of Authorisation Revoked by the Reserve Bank of India in exercise of the powers conferred under the Payment and Settlement Systems Act, 2007

C. Authorised entities whose Payment System operations have ceased.

D. Entities whose Certificate of Authorisation to operate a Payment System have been cancelled on account of voluntary surrender by the entity.

E. Entities whose Certificate of Authorisation to operate a Payment System have been cancelled as per regulatory requirement.

F. Entities whose Certificate of Authorisation to operate a Payment System is under process of cancellation as per regulatory requirement/Voluntary Surrender

Today, the Reserve Bank of India released the balance of payments (BoP) data for the first quarter (Q1), i.e., April-June of 2026 on its website (www.rbi.org.in). On the basis of these data, the sources of variation in foreign exchange reserves during April-June 2026 are detailed below in Table 1.

On a balance of payments basis (i.e., excluding valuation effects), foreign exchange reserves decreased by US$ 8.1 billion during April-June 2026 as against an accretion of US$ 4.5 billion during April-June 2025. Foreign exchange reserves in nominal terms (i.e., including valuation effects) decreased by US$ 22.5 billion during April-June 2026 as against an accretion of US$ 29.8 billion in April-June 2025 (Table 2).

The valuation loss, primarily reflecting lower price of gold and appreciation of US dollar against major currencies, amounted to US$ 14.4 billion during April-June 2026 as against a valuation gain of US$ 25.3 billion during April-June 2025.

(Brij Raj)           
Chief General Manager

Press Release: 2026-2027/1016

	Volume XXII | Issue 5 | August 2026 MONETARY & CREDIT INFORMATION REVIEW

I. Monetary Policy

Governor's Monetary Policy Statement on August 5, 2026

Governor Shri Sanjay Malhotra announced the Monetary Policy Committee's decision on August 5, 2026, after it met for its third bi-monthly meeting of the financial year 2026-27 on 3rd, 4th, and 5th of August to deliberate and decide on the policy repo rate. After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, the MPC decided unanimously to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.25 per cent; consequently, the standing deposit facility (SDF) rate shall remain unchanged at 5.00 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 5.50 per cent. The MPC also decided to continue with the neutral stance. The MPC noted that headline CPI inflation edged up above the target, as expected. The realised inflation for Q1, however, remained marginally lower than projections reflecting limited pass-through of cost pressures. The higher inflation is mostly on account of fuel and food with little signs of generalisation of price pressures so far. Core inflation excluding precious metals continues to be benign. As projected earlier, headline inflation is expected to rise further in the near term and peak in Q3:2026-27, primarily due to food and fuel, before moderating thereafter. The underlying inflation, reflected by core inflation excluding precious metals, which has been benign for some time, is set to align with core inflation towards the end of the financial year. Growth continues to be supported by resilient domestic demand, sustained expansion in manufacturing and services activity, and robust exports, reaffirming India's position as the world's fastest-growing major economy.

To sum up, even though headline inflation is projected to increase, it is primarily on account of supply side pressures caused by food and fuel; it is not getting broad-based; core inflation remains moderate and is expected to decline after peaking in Q3. Growth, albeit resilient, is expected to be lower in 2026-27. The outlook, however, is hazy because of the uncertainties regarding south-west monsoon, El Niño, geopolitics and global trade policy. There is a need for greater clarity to emerge, especially regarding inflation, its path and composition before taking any policy action. Any such action would also have to consider the need for recalibration of policy rates in line with the evolving growth-inflation dynamics, especially the normalisation of the underlying inflation from its benign levels seen hitherto. Considering all these factors, the MPC voted to keep the policy rate unchanged. The MPC also decided to retain the neutral stance to respond appropriately to macroeconomic developments. The MPC underscored that it will maintain a close vigil and remain resolute in its commitment to align inflation with the target. To read the full statement, please click here.

Statement on Developmental and Regulatory Policies

This Statement sets out various developmental and regulatory policy measures relating to regulations:

1. Draft guidelines for licensing of Urban Co-operative Banks (UCBs)

A discussion paper on Licensing of UCBs was published for stakeholder feedback on January 13, 2026 following a two decade pause on issuance of fresh licenses. On an analysis of the feedback, it has been decided to resume licensing of UCBs on 'on tap' basis. The draft guidelines will be issued shortly for stakeholder consultation.

2. Review of Guidelines on Concentration Risk Management - Rural Co-operative Banks

Prudential norms on Concentration Risk Management of Rural Co-operative Banks (RCBs) are governed by the Credit Monitoring Arrangement (CMA) instructions issued in 2008. As the banking sector in general, and co-operative banking sector in particular, have undergone significant expansion and changes since then, it has been decided to review these instructions, keeping in view the objectives of developing a vibrant co-operative sector while addressing the prudential concerns arising from concentrated lending. Draft Amendment Directions in this regard are being issued for wider stakeholder consultations.

3. Review of Guidelines on Interest Rates on Advances

The Reserve Bank proposes to rationalise the regulatory framework on interest rates for all Regulated Entities (REs) on a principle-based basis. The proposed rationalisation aims to: (i) harmonise the guidelines across REs while maintaining proportionality; (ii) address certain operational aspects of the current framework on MCLR and EBLR; and (iii) standardise certain divergent market practices concerning interest charging, including day count convention and benchmark reset dates. These measures seek to ensure uniformity, enhance transparency in loan pricing, strengthen monetary transmission and bolster consumer protection. Draft directions incorporating these proposals will be issued shortly for public comments.

Minutes of MPC

The 62nd Meeting of the Monetary Policy Committee, constituted under Section 45ZB of the Reserve Bank of India Act, 1934, was held during August 3 to 5, 2026. Accordingly, under Section 45ZL of the Reserve Bank of India Act, 1934, the Reserve Bank published the minutes of the proceedings of the meeting on August 19, 2026, i.e., the fourteenth day after meeting of the MPC. In the light of evolving developments on the global and domestic front, the MPC reviewed in detail the staff's macroeconomic projections that included inputs from survey results and stakeholder consultations. The MPC also reviewed alternative scenarios around various risks to the outlook. To read more, please click here.

II. Regulation

RBI invites public comments on Draft Guidelines for 'on tap' Licensing of Urban Co-operative Banks

The Reserve Bank published draft guidelines for 'on tap' licensing of Urban Co-operative Banks for stakeholder consultation on August 5, 2026. Comments are invited from public / stakeholders till September 05, 2026. Comments may be submitted through the link under the 'Connect 2 Regulate' section available on the Reserve Bank's website.

RBI invites comments on the draft "Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Amendment Directions, 2026

The Reserve Bank released the draft “Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Amendment Directions, 2026” on August 6, 2026. Comments/feedback on the draft Amendment Directions were invited from regulated entities and other interested stakeholders by August 28, 2026. Feedback on the draft Amendment Directions may be submitted through 'Connect 2 Regulate' with subject line "Feedback on draft Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Amendment Directions, 2026".

RBI Issues Amendment Directions on ‘Conduct of Regulated Entities in Recovery of Loans and Engagement of Recovery Agents’

The Reserve Bank issued the revised draft Amendment Directions on 'Conduct of Regulated Entities in Recovery of Loans and Engagement of Recovery Agents' on May 20, 2026 for seeking feedback from stakeholders. Feedback received on the above revised draft Directions has been examined and the consequent modifications have been suitably incorporated in the final Amendment Directions. A statement on the feedback received is provided in the Annex. Accordingly, the Reserve Bank has issued the following Amendment Directions on August 6, 2026, which shall come into effect from January 1, 2027.

i. Reserve Bank of India (Commercial Banks - Responsible Business Conduct) Fourth Amendment Directions, 2026

ii. Reserve Bank of India (Small Finance Banks - Responsible Business Conduct) Fourth Amendment Directions, 2026

iii. Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Fourth Amendment Directions, 2026

iv. Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Fourth Amendment Directions, 2026

v. Reserve Bank of India (Urban Co-operative Banks - Responsible Business Conduct) Fourth Amendment Directions, 2026

vi. Reserve Bank of India (Rural Co-operative Banks - Responsible Business Conduct) Fourth Amendment Directions, 2026

vii. Reserve Bank of India (All India Financial Institutions - Responsible Business Conduct) Third Amendment Directions, 2026

viii. Reserve Bank of India (Non-Banking Financial Companies - Responsible Business Conduct) Third Amendment Directions, 2026

ix. Reserve Bank of India (Housing Finance Companies) Third Amendment Directions, 2026

The Amendment Directions include comprehensive instructions to all regulated entities (REs) on conduct related matters in recovery of loans and engagement of recovery agents, which inter alia cover aspects such as fair treatment to borrowers during recovery process, conduct of lender's employees and recovery agents, and due diligence, training, code of conduct for recovery agents, etc. and also conduct of REs while deploying a technology-based mechanism for recovery of loan dues in financed mobile devices of a borrower.

To read more, please click here.

Review of Guidelines on Concentration Risk Management - Rural Co-operative Banks

In pursuance of the announcement made with regard to the captioned subject in the Statement on Developmental and Regulatory Policies dated August 5, 2026, the Reserve Bank of India has today issued the following draft Directions for public comments:

i. Draft Reserve Bank of India (Rural Co-operative Banks – Concentration Risk Management) – Directions, 2026 to replace Reserve Bank of India (Rural Co-operative Banks – Concentration Risk Management) –Directions, 2025

ii. Draft Reserve Bank of India (Rural Co-operative Banks – Credit Facilities) – Amendment Directions, 2026 to amend certain provisions of Reserve Bank of India (Rural Co-operative Banks – Credit Facilities) Directions, 2025

2. The above draft Directions prescribe, inter alia, prudential exposure limits for single/group counterparty, enhanced housing loan limits, and prudential exposure limits on unsecured advances. Additionally, it is proposed to allow flexibility to larger Rural Co-operative Banks (RCBs) with deposits above ₹1,000 crore in deciding the tenor and moratorium requirements for housing loans, while increasing the ceilings for these parameters in cases of other RCBs. Further, the prescribed prudential sectoral exposure limits, except for real estate sector, are proposed to be withdrawn. To read more, please click here.

RBI invites public comments on the draft Directions on 'Credit Valuation Adjustment (CVA) Framework'

Credit Valuation Adjustment (CVA) reflects the adjustment to the default risk-free prices of derivatives to account for potential counterparty default. CVA risk refers to losses resulting from changes in CVA values, driven by shifts in counterparty credit spreads and market risk factors. The CVA capital charge ensures banks hold sufficient capital to cover these risks.

The extant CVA framework was issued by the Reserve Bank in 2011, which was based on the Basel Committee on Banking Supervision (BCBS) standards issued in 2010. The BCBS has, since, issued revised CVA guidelines under the final Basel III framework. Accordingly, it has been decided to issue revised instructions on CVA framework permitting banks in India to adopt the basic approach (BA-CVA). Banks may choose to implement either the full or reduced version of BA-CVA. Alternatively, in line with BCBS guidelines, banks with an insignificant volume of non-centrally cleared derivatives may calculate their CVA capital charge as 100 per cent of their counterparty credit risk (CCR) capital charge.

The revised instructions: (a) allow eligible banks to choose a simpler approach; (b) clarify the eligibility and recognition of CVA hedges; (c) increase the sensitivity of supervisory risk weights for counterparties by sector and credit quality; and (d) separate systematic and idiosyncratic CVA risk components in the full BA-CVA calculation, addressing imperfect alignment of indirect CVA hedges. These revisions enhance risk sensitivity and improve consistency in the CVA framework.

Accordingly, the Reserve Bank has released the Reserve Bank of India (Commercial Banks – Credit Valuation Adjustment Framework) Directions, 2026 on August 7, 2026.

The comments on the draft Directions were invited from Regulated Entities, market participants, and other interested parties till August 28, 2026.

RBI invites comments on the Draft "Reserve Bank of India (Interest Rates on Loans and Advances) Directions, 2026"

In pursuance of the announcement made in the Statement on Developmental and Regulatory Policies dated August 05, 2026, the Reserve Bank of India has issued Draft Reserve Bank of India (Interest Rates on Loans and Advances) Directions, 2026 on August 12, 2026 for public comments.

The Reserve Bank has issued various instructions from time to time on interest rates on loans and advances for regulated entities (REs), with the objectives of ensuring effective monetary policy transmission, appropriate pricing of credit risk, and fair and non-discriminatory treatment of borrowers.

At present, regulatory framework on interest rate on advances are applicable for Commercial Banks (including Small Finance Banks and Local Area Banks), covering, inter alia, instructions on internal and external benchmark-based lending frameworks for floating rate loans and determination of spreads over such benchmarks. Regulatory instructions on interest rates on loans and advances extended by other REs (i.e., Non-Banking Financial Companies, All India Financial Institutions, Regional Rural Banks, Urban Cooperative Banks, and Rural Cooperative Banks) are largely with regard to conduct related aspects. Further, with respect to Commercial Banks, divergent practices have been observed in certain aspects, including determination of MCLR (internal benchmark) and its components. In addition, the extant guidelines contain very limited regulatory instructions regarding fixed rate loans.

Accordingly, it is proposed to issue harmonised Directions for all REs, prescribing a broad, principles-based framework for the determination of interest rates on both fixed rate and floating rate loans, commensurate with the nature, complexity, and scale of the operations of the REs.

For the purpose of public consultation / feedback, a draft Direction applicable to all REs is being issued. Upon examination of the feedback received, final Directions will be issued separately for each category of RE. To read more, please click here.

RBI invites comments on the draft "Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Eleventh Amendment Directions, 2026"

The Reserve Bank of India released the draft Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Eleventh Amendment Directions, 2026, which propose to amend 'Chapter VII: Leverage Ratio framework' of the Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Directions, 2025 on August 7, 2026. The amendment endeavours to implement the latest leverage ratio framework ('Leverage Ratio 2017 Standard') issued by the Basel Committee on Banking Supervision. The comments on the draft Amendment Directions were invited till August 28, 2026. The comments / feedback may be submitted through the link under the 'Connect 2 Regulate' section available on the Reserve Bank's website.

IV. Publications

RBI Bulletin – August 2026

The Reserve Bank released the August 2026 issue of its monthly Bulletin on August 25, 2026. The Bulletin includes bi-monthly monetary policy statement (August 03-05, 2026), six speeches, one article and current statistics.

The article is on the State of the Economy.

State of the Economy

The global economy is confronting a fragile geopolitical environment and continuing trade-related uncertainties. Nevertheless, the domestic economy has demonstrated notable resilience to the ongoing global headwinds, characterised by buoyant domestic demand, and rising manufacturing and services activity. The south-west monsoon picked up in July after recording a deficit in June. While headline CPI inflation rose fractionally, reflecting food inflation; core inflation remained stable. Liquidity conditions eased, supporting credit growth and ongoing investment activity. Foreign capital inflows rebounded, reinforcing the external sector.

V. Data Release & Surveys

Important data and surveys released by the Reserve Bank during the month of August 2026 are as follows:

Edited and published by Brij Raj for Reserve Bank of India, Department of Communication, Central Office, Shahid Bhagat Singh Marg, Mumbai - 400 001. MCIR can be also accessed at https://mcir.rbi.org.in.

Today, the Reserve Bank released the results of 49th round of its quarterly Services and Infrastructure Outlook Survey (SIOS) conducted during Q1:2026-27. This forward-looking survey¹ captures qualitative assessment and expectations of Indian companies engaged in the services and infrastructure sectors on a set of business parameters relating to demand conditions, price situation and other business conditions. In the latest round of the survey², 1,007 companies provided their assessment for Q1:2026-27 and expectations for Q2:2026-27 as well as outlook on key parameters for the subsequent two quarters.

Highlights:

A. Services Sector

Assessment for Q1:2026-27

• Service sector firms remained positive about their overall business situation, turnover and employment in Q1:2026-27, with moderation in sentiments compared to the previous quarter (Chart 1 and Table A).

• Responding firms reported higher cost pressures arising from input costs and salary outgo.

• Services firms assessed broadly stable selling price growth in Q1:2026-27, leading to pressure on profit margins.

Expectations for Q2:2026-27

• Services firms remain optimistic about demand conditions in Q2:2026-27, with some corrections when compared with the previous quarter (Chart 1 and Table A).

• Firms expect higher pressures from input costs in Q2:2026-27, while wage cost pressures are expected to ease.

Expectations for Q3:2026-27 and Q4:2026-27

• Respondents’ outlook remains optimistic for the second half of 2026-27 (Table C).

• Firms expect input cost pressures to persist during H2:2026-27.

• Responding services firms reported that with their existing resources they could have delivered 8.8 per cent additional services during Q4:2025-26 (Table S14).

B. Infrastructure Sector

Assessment for Q1:2026-27

• Infrastructure firms assessed positive demand conditions in Q1:2026-27, (Chart 2 and Table B).

• Enterprises reported higher cost pressures during Q1:2026-27.

Expectations for Q2:2026-27

• Outlook on overall business situation, turnover and employment conditions is positive for Q2:2026-27; a tad lower when compared with the previous survey round (Table B).

• Pressures from input and salary costs are likely to persist during Q2:2026-27.

Expectations for Q3:2026-27 and Q4:2026-27

• Respondents expressed optimism on demand and employment conditions for the second half of 2026-27 (Table D).

• Input cost pressures are likely to persist in near term.

Summary of Net Responses³ on Survey Parameters

Note: Please see the excel file for time series data

Services Sector

Infrastructure Sector

¹ The survey results reflect the respondents’ views, which are not necessarily shared by the Reserve Bank.

² Results of the previous survey round were released on the Bank’s website on April 08, 2026.

³ Net Response (NR) is the difference between the percentage of respondents reporting optimism and those reporting pessimism. It ranges between -100 to 100. Positive value indicates expansion/optimism and negative value indicates contraction/pessimism. In other words, NR = (I – D); where, I is the percentage response of ‘Increase/optimism’, D is the percentage response of ‘Decrease/pessimism’ and E is the percentage response as ‘no change/ equal’ (i.e., I+D+E=100). For example, increase in turnover is optimism whereas decrease in cost of inputs is optimism.

Today, the Reserve Bank released the results of July 2026 round of its bi-monthly Rural Consumer Confidence Survey (RCCS)^{1 2}. The survey collects current perceptions (vis-à-vis a year ago) and one year ahead expectations of households, on general economic situation, employment scenario, overall price situation, own income and spending, besides information on inflation. The survey was conducted during July 11-20, 2026, covering 8,581 responses in the rural and semi-urban areas across all Indian states and three major UTs.

Highlights:

1. Rural consumer confidence for the current period as measured by Current Situation Index (CSI)³, moderated to 91.7 (Chart 1; Table 9).

2. The outlook for the next year continued to remain in optimistic zone though a bit lower than previous survey round with Future Expectations Index (FEI) at 113.6 (Chart 1; Table 9).

3. Rural households’ current inflation⁴ perception and year ahead expectation inched up by 20 basis points each to 6.1 per cent and 7.4 per cent, respectively in the July 2026 survey round (Chart 2; Table 12).

Note: Please see the excel file for time series data⁵

¹ The rural consumer confidence survey covers both rural and semi-urban areas.

² The survey results reflect the respondents’ views, which are not necessarily shared by the Reserve Bank. Results of the previous survey round were released on the Bank’s website on June 05, 2026.

³ CSI and FEI are compiled with the net responses on five survey parameters viz., general economic situation, employment, income, price level and spending, for the current period (as compared with one year ago) and a year ahead, respectively. CSI and FEI = 100 + Average of Net Responses of the above parameters.

⁴ All estimates of inflation perceptions and expectations are given in terms of median, unless stated otherwise.

⁵ Unit-level data for previous rounds of the survey are available on the Bank’s ‘Database on Indian Economy’ (DBIE) portal (weblink: https://data.rbi.org.in/DBIE/#/dbie/home) under the head ‘Unit-level Data’.

⁶ ‘Net response’ is the difference between the percentage of respondents reporting optimism and those reporting pessimisms. It ranges between -100 and 100. Any value greater than zero indicates expansion/ optimism and values less than zero indicate contraction/ pessimism.

Today, the Reserve Bank released the results of July 2026 round of its bi-monthly Inflation Expectations Survey of Households (IESH)^{1 2}. The survey was conducted during July 11-20, 2026, in 19 major cities, with 5,905 responses.

Highlights:

1. The current median inflation perception of households remained unchanged at 7.8 per cent as compared to the previous round [Charts 1a and 1b; Table 3].

2. Households’ median inflation expectations for the next three months eased by 10 basis points (bps) to 9.2 per cent while year ahead expectation inched up by 10 bps to 9.4 per cent [Charts 1a and 1b; Table 3].

3. In the short-term, the proportion of respondents anticipating a rise in general prices and inflation has declined while it has increased for the one year ahead horizon [Tables 1(a) and 1(b)].

Note: Please see the excel file for time series data³