Business, Economy & Banking Current Affairs MCQs

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China has become India’s largest trading partner in 2025–26, surpassing the United States after four years. India–China bilateral trade reached 151.1 billion, with a record trade deficit of about 112 billion in China’s favour. India’s exports to China rose by 36.66% to 19.47 billion, while imports increased to 131.63 billion, widening the deficit. With the United States, India’s exports grew marginally to 87.3 billion, while imports rose to 52.9 billion, reducing the trade surplus. India recorded negative export growth with partners like Netherlands, UK, Singapore, Bangladesh, and Saudi Arabia. Positive export growth was seen with UAE, Germany, Italy, Brazil, Spain, and Vietnam.

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The Financial Intelligence Unit India signed a Memorandum of Understanding (MoU) with the Pension Fund Regulatory and Development Authority to strengthen coordination against financial crimes. The MoU aims to enhance information sharing, training, and outreach for entities regulated by PFRDA. It focuses on improving Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) capabilities. The Financial Intelligence Unit (FIU), established in 2004 under the Ministry of Finance. FIU-IND acts as the national agency for analysing suspicious financial transactions, while PFRDA regulates India’s pension sector

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Department for Promotion of Industry and Internal Trade data shows that Singapore was the top source of FDI (Foreign Direct Investment) equity inflows into India during April–December FY26, contributing 17.6 billion (37%). The United States (16%) and Mauritius (10%) were the next major contributors, followed by Japan and the UAE. India received a total of 47.87 billion in FDI equity inflows during this period. The top sectors attracting FDI were Computer Software & Hardware (22%) and Services (Financial, Banking, R&D) at 18%. Among states, Maharashtra received the highest inflows, followed by Karnataka.

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In April 2026, Pay Point India Network became the first private fintech company to gain membership in the Centralised Payment System (CPS) of the Reserve Bank of India. Earlier, CPS access was limited to banks and institutions like National Payments Corporation of India and Clearing Corporation of India Limited. This move allows Pay Point direct access to payment systems such as Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT). It reduces dependence on partner banks for transactions and settlements. The company has also been assigned its own Indian Financial System Code (IFSC), enabling it to hold accounts directly with RBI.

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The Securities and Exchange Board of India has operationalised the Past Risk and Return Verification Agency (PaRRVA). PaRRVA aims to enhance transparency and investor protection in financial markets. CARE Ratings Limited has been recognised as the PaRRVA agency. National Stock Exchange of India Limited will act as the PaRRVA Data Centre (PDC). The system allows entities like investment advisers and research analysts to display verified performance data. It helps investors access authentic risk-return information for better decision-making. The pilot phase began in December 2025, and full operations start from May 4, 2026.

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Securities and Exchange Board of India proposed “GARUDA” (Green-Channel: AIF Rollout Upon Document Acknowledgement) to speed up the launch process of Alternative Investment Fund (AIF) schemes. Under the proposal, standard AIF schemes may be launched within 10 working days instead of 30 days if no objections are raised by SEBI. Schemes for accredited investors or angel funds may use direct filing without requiring a merchant banker. The initiative aims to improve ease of doing business and accelerate capital deployment in the AIF sector.

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Assam inaugurated India’s first AI-powered “phygital” banking branch in Guwahati. The branch was launched by Slice Small Finance Bank at GS Road. The AI-enabled branch combines physical and digital banking services through self-service kiosks, paperless cash transactions, and digital onboarding. The initiative aims to strengthen financial inclusion and improve access to banking services for underserved communities and small businesses. The branch will support responsible credit, savings, and digital payment solutions.

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RAINMUMBAI is India’s first SEBI-approved exchange-traded weather derivatives contract launched by National Commodity and Derivatives Exchange. The contract is designed to help businesses hedge losses caused by unpredictable weather and monsoon variability. Unlike traditional insurance, weather derivatives are settled using actual weather data rather than physical damage assessments, enabling faster payouts. The product was developed in collaboration with Indian Institute of Technology Bombay using Mumbai rainfall data. Rainfall data will be provided by the India Meteorological Department from Santacruz and Colaba stations.

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Department of Financial Services launched the Unclaimed Assets Portal. The portal is a common platform for searching unclaimed financial assets across the financial ecosystem. It was developed in collaboration with the Public Sector Bank Alliance. The portal allows citizens to search for unclaimed bank deposits, insurance claims, shares, dividends, and mutual funds. The initiative supports the nationwide campaign Your Money Your Right launched by the Department of Financial Services.

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The Government of India has revised the base year of the Wholesale Price Index (WPI) from 2011–12 to 2022–23. The revised WPI series and new Producer Price Indices (PPIs) will be released by the Office of Economic Adviser under the Department for Promotion of Industry and Internal Trade. New indices include Output Producer Price Index (OPPI), Input Producer Price Index (IPPI), and Service Producer Price Index (Service PPI). The transition from WPI to PPI aligns India’s statistical framework with international standards recommended by the International Monetary Fund. Both WPI and PPI will be released simultaneously for five years before WPI is phased out.