Ministry Of Finance
Official policy releases, schemes, circulars, and Prelims practice questions from Ministry Of Finance distilled for UPSC Civil Services Examination.
🎯 Ministry Of Finance UPSC Practice Questions
🎯 UPSC Prelims Practice Drill
During the 21st awards ceremony of the Security Printing and Minting Corporation of India Limited (SPML), which of the following was NOT highlighted by the Finance Minister as a key contribution of the corporation?
- [A] Production of safe currency
- [B] Production of coins
- [C] Production of passports
- [D] Production of nuclear weapons
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [D] Production of nuclear weapons
The Finance Minister’s address praised SPML’s role in producing safe currency, coins, passports and other sovereign products; nuclear weapons were not mentioned, making option 4 the correct answer. Options 1–3 were explicitly cited in the minister’s remarks.
Tark High-Yield Question Bank
⚡ Practice Full Test in Testing Arena ↗
🎯 UPSC Prelims Practice Drill
The monetary penalty of ₹8.10 lakh imposed by the Reserve Bank of India on Shri Ram Finance Corporation Private Limited was exercised under which provision(s) of the RBI Act, 1934?
- [A] Section 58G(1)(b) read with section 58B(5)(aa)
- [B] Section 45A(2)(c) read with section 22(1)
- [C] Section 35(3) read with section 12(4)
- [D] Section 21(1) read with section 30(2)
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [A] Section 58G(1)(b) read with section 58B(5)(aa)
The order states that the penalty was imposed in exercise of powers conferred on RBI under section 58G(1)(b) read with section 58B(5)(aa) of the RBI Act, 1934. The other sections mentioned are not cited in the provided text.
Tark High-Yield Question Bank
⚡ Practice Full Test in Testing Arena ↗
Official Policy Notifications & Dossiers
30 Briefs-
PIB
Union Finance Minister Nirmala Sitharaman Chairs 30th FSDC Meeting in New Delhi to Review Financial Stability and Fintech Innovation
- The council discussed measures to promote innovation in the fintech sector, explore tokenization of financial and real assets, and review the cyber security strategy for the financial sector.
- The Finance Minister urged regulatory bodies and stakeholders to expedite the process of returning unclaimed financial assets to their rightful owners.
-
PRS
Ban on cryptocurrencies: Understanding the proposed legislation
- A Ministry of Finance committee recommended banning all private cryptocurrencies in India and proposed a draft legislative framework due to macroeconomic, security, and consumer protection risks.
- Cryptocurrencies are decentralized virtual currencies utilizing Distributed Ledger Technology that lack legal tender status, distinguishing them from government-backed fiat currency.
-
BUSINESS STANDARD
HSBC leads international banks in fundraising for Indian companies
- HSBC led international banks in fundraising for Indian companies during January-September 2026, topping G3 bonds, syndicated loans, and ranking high in equity fundraising like IPOs and QIPs.
- The bank mobilized $14.5 billion under the Foreign Currency Non-Resident (Bank) [FCNR(B)] scheme, leveraging its global NRI franchise, while India's G3 bond issuance surged to $21.8 billion.
-
PRS
Recommendations of the 15th Finance Commission for 2020-21
- The 15th Finance Commission recommended a total tax devolution of Rs 8,55,176 crore to states for the financial year 2020-21, constituting 41% of the divisible pool of taxes.
- The Commission recommended grants-in-aid including revenue deficit grants worth Rs 74,341 crore for 14 states, special grants worth Rs 6,674 crore, and Rs 90,000 crore for local bodies.
-
BUSINESS STANDARD
Can a daughter-in-law be evicted? HC clarifies senior citizens' rights
- The judgment establishes that senior citizens do not need to file a separate claim for monetary maintenance before initiating eviction proceedings under Rule 22, as these operate independently.
-
BUSINESS STANDARD
EPS pension: EPFO explains who must join under Rs 25,000 wage ceiling
- The government raised the statutory EPF wage ceiling from Rs 15,000 to Rs 25,000 per month effective from September 17, 2026, expanding mandatory social-security coverage.
- Employees earning Rs 25,000 or less must join the Employees' Pension Scheme (EPS), while existing members earning above Rs 25,000 can continue their pension membership.
-
RBI
Sectoral Deployment of Credit by NBFC – August 2026
- NBFC credit registered a year-on-year growth of 15.8 per cent in August 2026 compared to 10.0 per cent a year ago.
- Credit to agriculture and allied activities grew by 17.4 per cent in August 2026, up from 5.1 per cent a year ago, while retail loans accelerated to 22.0 per cent.
-
RBI
Lending and Deposit Rates of Scheduled Commercial Banks – September 2026
- The 1-Year median Marginal Cost of Funds based Lending Rate (MCLR) of SCBs declined to 8.61 per cent in September 2026 from 8.70 per cent in August 2026.
-
BUSINESS STANDARD
India's next investor wave will come from smaller cities, youth: EY
- A recent EY report highlights that India's next wave of investors is emerging from Tier-2 and Tier-3 cities, youth under 30, and women, backed by rising digital financial infrastructure.
- While unique registered investors on the NSE crossed 130 million and demat accounts exceeded 230 million, behavioral challenges and an advice gap remain key hurdles to sustained wealth inclusion.
-
BUSINESS STANDARD
No old car to scrap? Buying a scrappage certificate could still save money
- Buyers without an old vehicle can purchase a Certificate of Deposit (CoD) from someone who has scrapped an eligible vehicle to claim benefits on a new car.
- The Ministry of Road Transport and Highways’ annual report notes that CoDs can be traded and used to avail of financial benefits through formal platforms like DigiELV integrated with the VAHAN system.
-
BUSINESS STANDARD
Parents funding NRI child's home abroad? Know LRS limit, TCS, tax rules
- Resident Indian parents can remit up to $250,000 per financial year under the Reserve Bank of India's Liberalised Remittance Scheme (LRS), which can be combined to $500,000 if both eligible parents participate.
- Direct or beneficial interest in overseas property as a co-owner can trigger additional Indian tax and disclosure obligations, including reporting under Schedule FA in income-tax returns.
-
BUSINESS STANDARD
Inherited jewellery: How to prove its origins and avoid tax scrutiny
- The Central Board of Direct Taxes (CBDT) has set search thresholds of 500 grams for a married woman, 250 grams for an unmarried woman, and 100 grams for a male member under Instruction No. 1916.
- Tax authorities treat unverified jewellery as unexplained income under applicable provisions, making historical records like wills, succession documents, and wealth-tax records crucial for establishing inheritance.
-
BUSINESS STANDARD
LIC left with two serving MDs as Dinesh Pant joins Irdai as actuary member
- Dinesh Pant has been appointed as the whole-time director and actuary member at the Insurance Regulatory and Development Authority of India (Irdai), reducing the serving managing directors at Life Insurance Corporation (LIC) to two.
- LIC is India's largest life insurer, reporting a total premium income of ₹5.36 trillion in FY26 and assets under management (AUM) of ₹57.29 trillion.
-
BUSINESS STANDARD
SC asks Centre to explain UPI charges above ₹2,000, refuses to stay levy
- The court issued notices to the Centre, RBI, and NPCI while hearing a petition challenging the Union Finance Ministry's framework imposing Merchant Discount Rate (MDR) on specified commercial UPI payments above ₹2,000.
- Under the framework, person-to-person (P2P) transfers and merchant payments up to ₹2,000 remain free, whereas general person-to-merchant (P2M) UPI transactions above ₹2,000 attract a 0.4 per cent MDR capped at ₹300 for transactions of ₹75,000 or more.
-
LIVEMINT
Sitharaman on India’s 10%+ growth potential: Startups and technology can drive next phase
- Union Finance Minister highlighted that India possesses the economic potential to record growth exceeding 10 percent, driven primarily by technology, startup innovation, and collective societal efforts.
- Technological interventions such as point-of-sale (POS) machines in fertiliser distribution, drones, and geospatial tools are being leveraged to enhance agricultural productivity, prevent input pilferage, and mitigate soil and water contamination.
-
BUSINESS STANDARD
High credit-deposit ratio does not signal funding vulnerability: RBI report
- The report highlights that a high CD ratio does not signal funding vulnerability or indicate insufficient deposit mobilisation, as loans result in deposit creation and the metric must be assessed alongside liquidity, capital, and investment-deposit indicators.
- According to the report, the banking sector remains strong with a gross non-performing asset ratio of 1.8 per cent, a capital adequacy ratio of 17.7 per cent, and a liquidity coverage ratio of 124.2 per cent in 2026.
-
BUSINESS STANDARD
75% traders may not face UPI levy, says NPCI MD & CEO Dilip Asbe
- According to NPCI MD & CEO Dilip Asbe, 75 per cent of the 60 million unique merchants accepting digital payments have not seen a transaction above ₹2,000 and will face no impact from the policy.
- A finance ministry official stated that the GST Council is likely to consider granting relief on the 18 per cent Goods and Services Tax (GST) applicable on MDR charges.
-
BUSINESS STANDARD
Rupee falls 11 paise to 95.84 against US dollar during early trade
- The Indian rupee declined by 11 paise to 95.84 against the US dollar in early trade, driven by escalating geopolitical tensions, surging crude oil prices, and rising US bond yields.
- Elevated Brent crude trading above $100 per barrel alongside persistent foreign equity outflows and a stronger dollar index continue to exert downward pressure on the domestic currency.
-
BUSINESS STANDARD
What borrowers can do if a lender forcibly repossesses a financed vehicle
- The court criticized the Reserve Bank of India (RBI) for failing to ensure effective implementation of its recovery guidelines.
- Recovery agents must produce a default notice, financier authorisation, and proper identification while documenting the vehicle's condition, mileage, and personal belongings in a signed panchnama.
-
BUSINESS STANDARD
UPI MDR apprehension unlikely to spur higher cash usage: RBI DG Murmu
- RBI Deputy Governor Shirish Chandra Murmu stated that introducing a Merchant Discount Rate (MDR) will not lead to a surge in cash usage, noting it is merely an initial apprehension.
- Murmu clarified that there is no paradox between rising digital transactions and cash in circulation, as cash functions simultaneously as a transaction medium and a store of value.
-
BUSINESS STANDARD
Long-term insurance policies need tax incentives: ICICI Pru's Anup Bagchi
- ICICI Prudential Life CEO Anup Bagchi suggested tax incentives for insurance policies of 10 years or more to help insurers build stable liability pools for infrastructure investment.
- Shorter policy durations create duration, liquidity, and cash flow mismatches, as insurers need stable long-term funding to match long-duration assets like infrastructure.
-
BUSINESS STANDARD
Consumer durable loans: Avoid hidden costs and risk of overleveraging
- Consumer durable loans accounted for 45.5 per cent of loan originations by volume among new-to-credit borrowers in the first quarter of financial year 2026-27 according to CRIF Highmark's September 2026 report.
- While providing access to formal credit and helping build credit history through minimal documentation and low ticket sizes, these loans carry hidden costs like processing fees, foregone discounts, and risks of overleveraging.
-
BUSINESS STANDARD
Don't let fake discounts and paid rankings distort online shopping deals
- The Centre notified consumer protection rules taking effect on January 1, 2027, to curb fake discounts, manipulated search rankings, and require prominent identification of sponsored product listings on e-commerce platforms.
- Deceptive discount practices include inflating reference prices or maximum retail prices before sales, utilizing unverified list prices, and bundling cashback or bank offers into headline figures.
-
BUSINESS STANDARD
EPFO wage ceiling raised to ₹25,000 for better social security net
- The government raised the Employees' Provident Fund (EPF) wage ceiling from ₹15,000 to ₹25,000 per month, expanding mandatory social security coverage to over 51 lakh additional employees starting September 17, 2026.
- The revised wage threshold increases the financial obligation for employers and raises the compulsory pension contribution for employees, while potentially reducing the take-home pay for newly covered workers.
-
BUSINESS STANDARD
Only 17% merchants willing to bear 0.4% MDR on UPI payments: Survey
- A LocalCircles survey of 32,000 merchants indicates that only 17% are willing to bear the 0.4% MDR, with 41% unwilling to pay any fee for transactions above ₹2,000.
- UPI transactions up to ₹2,000 remain exempt from fees, a protection that also extends to RuPay debit card payments.
-
BUSINESS STANDARD
Where are MF Investors putting money? Small-caps, mid-caps and gold lead
- India's mutual fund net Assets Under Management (AUM) reached ₹87.08 lakh crore in August 2026, driven by a 19% month-on-month rise in equity inflows to ₹29,329 crore.
- Small-cap funds attracted the highest inflows within equity categories at ₹7,973 crore, followed by mid-cap funds at ₹6,989 crore, while ELSS funds experienced net outflows due to reduced tax deduction incentives under the New Tax Regime.
-
RBI
Sectoral Deployment of Credit by NBFC – July 2026
- Non-banking financial companies' (NBFCs) credit registered a year-on-year (y-o-y) growth of 14.9 per cent in July 2026 compared to 10.6 per cent a year ago, with credit to agriculture and allied activities growing robustly by 18.0 per cent.
- Retail loans growth accelerated to 21.4 per cent y-o-y in July 2026 from 13.7 per cent a year ago, driven by housing and loans against gold jewellery segments.
-
RBI
RBI imposes monetary penalty on Hinduja Leyland Finance Limited
- The Reserve Bank of India imposed a monetary penalty of ₹6.20 lakh on Hinduja Leyland Finance Limited for non-compliance with directions on pricing of microfinance loans and securitisation of standard assets.
- The charges sustained against the company included the failure to establish a Board-approved policy on microfinance loan pricing and undertaking activities in the nature of synthetic securitisation.
-
LIVEMINT
Bessent, Warsh host G20 finance ministers: Capital, banks and economic sanctions on Iran in focus
- At the G20 finance leaders' meeting in Asheville, United States Federal Reserve Chairman Kevin Warsh highlighted a shift in the global economy, characterizing the current period as a "global investment surge" that reverses the past "global savings glut".
- US Treasury Secretary Scott Bessent proposed reducing regulations and easing capital requirements for community and small banks to unleash billions for reinvestment into small businesses.
-
PRS
The Tribunals Reforms Bill, 2021, in the context of the recent Supreme Court judgement
- The Bill amends the Finance Act, 2017 to bring qualifications, appointments, term of office, and salaries of tribunal members directly under its statutory purview.
- Although the Supreme Court in July 2021 struck down the four-year tenure and 50-year minimum age requirement for tribunal members, the 2021 Bill retained these provisions.