Banking Daily Current Affairs – 21 August 2026

01

Appointments

Somanath Sreedhara Panicker appointed to RBI Central Board

The Central Government appointed Somanath Sreedhara Panicker as a part-time, non-official RBI director.

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Exam takeaways

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4 points

• 1Appointee: Somanath Sreedhara Panicker
• 2Body: RBI Central Board
• 3Tenure: four years
• 4Effective: 20 August 2026

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His appointment to the Central Board of the Reserve Bank of India is for four years from 20 August 2026 or until further orders, whichever is earlier.

02

Appointments

Anand Gopal Mahindra reappointed to RBI Central Board

The government reappointed Anand Gopal Mahindra as a part-time, non-official director on the RBI Central Board.

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Exam takeaways

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3 points

• 1Appointee: Anand Gopal Mahindra
• 2Body: RBI Central Board
• 3Role: part-time non-official director

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The RBI announced his reappointment on 20 August 2026. The Central Board is the apex governing body of the Reserve Bank of India.

03

Monetary Policy

RBI schedules 3-day VRRR auction under LAF

RBI announced a three-day Variable Rate Reverse Repo auction for 21 August 2026.

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Exam takeaways

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5 points

• 1Instrument: VRRR
• 2Tenor: 3 days
• 3Date: 21 August 2026
• 4Framework: LAF
• 5Purpose: absorb liquidity

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A VRRR auction absorbs surplus liquidity from the banking system. It is conducted under the Liquidity Adjustment Facility and uses a market-determined interest rate.

04

Government Securities

₹28,000 crore government securities underwriting auction

RBI announced an underwriting auction for government securities worth ₹28,000 crore.

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Exam takeaways

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4 points

• 1Auction size: ₹28,000 crore
• 2Date: 21 August 2026
• 3Instrument: Government Securities
• 4Participants: Primary Dealers

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The underwriting auction is scheduled for 21 August 2026. Primary Dealers underwrite government-security issues and support successful completion of the borrowing programme.

05

Monetary Policy

RBI publishes August 2026 MPC minutes

RBI released minutes of the Monetary Policy Committee meeting held from 3–5 August 2026.

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Exam takeaways

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3 points

• 1Meeting: 3–5 August 2026
• 2Minutes released: 19 August 2026
• 3Body: Monetary Policy Committee

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MPC minutes record the policy discussion and individual members’ voting positions. RBI published the August meeting minutes on 19 August 2026.

06

Banking Awareness

RBI policy and reserve rates as of 20 August 2026

The policy repo rate stood at 5.25%, while CRR was 3.00% and SLR was 18.00%.

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Exam takeaways

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5 points

• 1Repo: 5.25%
• 2SDF: 5.00%
• 3MSF and Bank Rate: 5.50%
• 4CRR: 3.00%
• 5SLR: 18.00%

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RBI’s published current rates showed the Standing Deposit Facility at 5.00%, Marginal Standing Facility and Bank Rate at 5.50%, and the fixed reverse repo rate at 3.35%.

07

Government Securities

Latest Treasury Bill cut-off yields published

The latest cut-off yields were 5.2603% for 91-day, 5.5678% for 182-day and 5.7373% for 364-day T-bills.

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Exam takeaways

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4 points

• 191-day: 5.2603%
• 2182-day: 5.5678%
• 3364-day: 5.7373%
• 4Issuer: Government of India

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Treasury Bills are short-term Government of India debt instruments issued at a discount. RBI displayed the latest auction cut-off yields on 20 August 2026.

08

Foreign Exchange

RBI Deputy Governor addresses India’s forex-market roadmap

Deputy Governor Rohit Jain delivered an address titled “India’s Foreign Exchange Markets: Getting ready for the next Decade.”

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Exam takeaways

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4 points

• 1Speaker: Rohit Jain
• 2Organisation: RBI
• 3Forum: FEDAI Annual Day
• 4Theme: India’s foreign-exchange markets

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The address was delivered for the Annual Day of the Foreign Exchange Dealers’ Association of India and was published by RBI on 20 August 2026.

09

Banking Sector

DFS holds workshop for public financial institutions

DFS organised a two-day workshop in Bengaluru on reservation-policy implementation across public financial institutions.

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Exam takeaways

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4 points

• 1Dates: 20–21 August 2026
• 2Venue: Bengaluru
• 3All 12 PSBs represented
• 4Organiser: DFS with Union Bank of India

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The 20–21 August workshop at Union Bank of India Staff College included over 100 officials from all 12 PSBs, seven public-sector insurers, seven PFIs and regulators. Day two covered financial-service accessibility for Divyangjans.

10

Banking Sector

Public-sector banks post record ₹1.98 lakh crore profit

PSBs achieved their highest-ever aggregate net profit of ₹1.98 lakh crore in FY 2025–26.

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Exam takeaways

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4 points

• 1Net profit: ₹1.98 lakh crore
• 2Aggregate business: ₹283 lakh crore
• 3Gross NPA: 1.93%
• 4Period: FY 2025–26

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The Department of Financial Services review reported aggregate PSB business of ₹283 lakh crore and a historic-low gross NPA ratio of 1.93%.