Current affairs
News for UPSC, SSC and defence exams, with the reason it matters.
RBI keeps repo rate unchanged at 5.25%, raises FY27 growth forecast to 6.7%
- The RBI's Monetary Policy Committee kept the repo rate at 5.25% on 5 August 2026.
- The vote was unanimous, and the stance stayed neutral.
- The SDF rate stays at 5.00%, and the MSF and Bank Rate at 5.50%.
Why it matters
[Economy] The repo rate is the rate at which the RBI lends to banks. The six-member MPC sets it. The inflation target is 4%, with a band of 2% to 6%.
Cabinet approves Samudra Manthan, an ₹84,084 crore national offshore oil and gas exploration scheme
- The Union Cabinet approved Samudra Manthan on 31 July 2026.
- It is a Central Sector Scheme with ₹84,084 crore up to 2030-31.
- About ₹43,200 crore goes to drilling 60 deepwater wells.
Why it matters
[Economy] India imports most of the crude oil it uses. Its offshore basins are still largely unexplored. The scheme is run by the Ministry of Petroleum and Natural Gas.
Cabinet extends PM-KISAN till 2030-31 with an outlay of about ₹3.15 lakh crore
- The Cabinet approved PM-KISAN for five more years, from 2026-27 to 2030-31.
- The total outlay is ₹3,15,614 crore.
- Eligible farmer families get ₹6,000 a year in three equal instalments.
Why it matters
[Policy] PM-KISAN began in February 2019. It is a Central Sector Scheme, so the Centre pays the full cost. The money goes straight to bank accounts through Direct Benefit Transfer.
MSME Development (Amendment) Bill, 2026 introduced in Rajya Sabha to tackle delayed payments
- The Bill was introduced in the Rajya Sabha on 28 July 2026.
- It amends the MSME Development Act, 2006.
- Central public sector firms must settle MSME invoices through the TReDS platform.
Why it matters
[Economy] Late payment by big buyers is a major problem for small firms. TReDS lets an MSME sell its unpaid invoices to banks and get cash quickly. The Bill later passed both Houses in August 2026.
Cabinet approves ₹3,030 crore BHAVYA Rasayan scheme to build three chemical parks
- The Union Cabinet approved the scheme on 24 July 2026.
- BHAVYA stands for Bharat Audyogik Vikas Yojana.
- Its outlay is ₹3,030 crore, from 2026-27 to 2030-31.
Why it matters
[Economy] The parks will offer ready shared facilities, like effluent treatment plants and pipelines. Firms can set up quickly without building these themselves. This should cut costs and pollution in the chemical sector.
Cabinet approves ₹62,500 crore Mobile Phone Manufacturing Scheme to succeed PLI
- The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) on 15 July 2026.
- It has an outlay of ₹62,500 crore. It runs for five years, from 2026-27 to 2030-31.
- Firms get 2.25% to 5% incentive on eligible sales. Extra incentives reward local components and Indian brands.
Why it matters
[Economy] PLI mainly helped phone assembly in India. MPMS shifts the focus to making components and doing design and research at home. This raises domestic value addition.
VB-G RAM G Act comes into force, replacing MGNREGA with a 125-day work guarantee
- The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, or VB-G RAM G, came into force on 1 July 2026.
- It replaces MGNREGA, the rural job law of 2005.
- Rural families now have a legal right to 125 days of paid work a year, up from 100.
Why it matters
[Indian Economy] This is the biggest change to India's rural job guarantee since 2005. Exams will test the new name, the 125-day limit and the law it replaced.
EPFO notifies 8.25% interest on EPF deposits for 2025-26
- The Employees' Provident Fund Organisation (EPFO) notified an 8.25% interest rate on EPF deposits for 2025-26.
- The rate was approved by the Ministry of Labour and Employment under the EPF Scheme, 1952.
- EPFO told its regional and zonal offices to credit the interest to members' accounts.
Why it matters
[Indian Economy] The EPF rate is set by EPFO's Central Board of Trustees and needs the Finance Ministry's nod before the Labour Ministry notifies it. The rate is a common banking and SSC question.