Reserve Bank of India (RBI) mandates Unique Transaction Identifier (UTI) for OTC derivatives
[Reserve Bank of India (RBI)]
Key Updates:
- The Reserve Bank of India (RBI) has mandated the use of a Unique Transaction Identifier (UTI) for all Over-the-Counter (OTC) derivative transactions to improve traceability and systemic risk monitoring.
- The new framework for UTI implementation is scheduled to become applicable from 1 January 2027.
- The mandate covers Foreign Exchange (FX) derivatives (forwards and swaps), Rupee interest rate derivatives (overnight index swaps and MIBOR-linked swaps), forward contracts in government securities, and credit derivatives.
- The Clearing Corporation of India (CCIL) is expected to issue detailed operational guidelines for the implementation of the UTI framework in due course.
- Responsibility for generating the UTI will follow a waterfall mechanism, starting with central counterparties or electronic trading platforms, and falling back on the trade repository of the CCIL.
- Routine amendments to derivative contracts will not require a new UTI, but lifecycle events such as novations that create a new reportable trade will trigger fresh identifiers.
- The RBI had previously issued a draft regarding the UTI requirement in October 2025.
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- The Securities and Exchange Board of India (Sebi) has notified revamped Mutual Fund Regulations that will come into effect from April 1, 2026.
- Sebi has introduced a provision allowing mutual fund schemes to charge a base expense ratio (BER) linked to the performance of the scheme.
- The new regulations introduce the concept of a base expense ratio (BER) which represents only the fee charged by an Asset Management Company (AMC) for managing investors’ money.
- Levies such as brokerage, securities transaction tax, stamp duty, and exchange fees must now be disclosed separately rather than being aggregated under the total expense ratio.
- The brokerage ceiling in the cash market has been reduced to 6 basis points (bps) from an effective 8.59 bps.
- The net brokerage cap in the derivatives segment has been lowered to 2 bps from 3.89 bps.
- The framework expands the responsibilities of trustees and key managerial personnel to tighten oversight and reinforce governance standards across AMCs.
- Reserve Bank of India (RBI) released the draft Directions on Foreign Exchange Dealings of Authorised Persons on Tuesday.
- The draft aims to ease reporting obligations and provide greater flexibility to Authorised Persons for hedging exposures, balance sheet management and market-making.
- The format for reporting net open position limits has been updated.
- Comments and feedback on the draft directions are invited by March 10, 2026.
- The Reserve Bank of India (RBI) will purchase government securities worth ₹2 lakh crore through Open Market Operations (OMO) to inject liquidity into the banking system.
- The RBI will conduct a USD 10 billion buy/sell dollar-rupee swap auction for a tenor of three years on January 13, 2026.
- The OMO purchase auctions for an aggregate amount of ₹2,00,000 crore will be held in four tranches of ₹50,000 crore each.
- The four OMO tranches are scheduled for December 29, 2025, January 5, 2026, January 12, 2026, and January 22, 2026.
- Under the swap arrangement, a bank will sell US dollars to the RBI and simultaneously agree to buy the same amount back at the end of the three-year period.
- These measures follow a previous RBI action involving ₹1 lakh crore OMO purchase auctions and a USD 5 billion Buy/Sell Swap auction for a tenor of three years.
- The Reserve Bank of India (RBI) has released the Foreign Exchange Management (Guarantees) Regulations, 2026, replacing the previous framework from 2000.
- The new principle-based regime expands the automatic route for cross-border guarantees, allowing transactions without prior approval if they meet FEMA borrowing and lending rules.
- Mandatory reporting of all guarantees must be submitted to authorized dealer banks on a quarterly basis within 15 days of the quarter end.
- The RBI has introduced a Late Submission Fee (LSF) for delayed reporting, calculated as ₹7,500 + 0.025% × amount involved × number of years of delay.
- A new reporting format, Form GRN, has been introduced to capture granular data including guarantee commissions, invocation details, and timelines for extinguishing liabilities.
- The regulations do not apply to guarantees issued under the Overseas Investment Regulations, 2022, or irrevocable payment commitments issued by custodian banks for Foreign Portfolio Investors (FPIs).
Food Corporation of India (FCI) and World Food Programme (WFP) sign MoU for rice supply to combat global hunger
[Food Corporation of India (FCI), World Food Programme (WFP)]
Key Updates:
- Food Corporation of India (FCI) and World Food Programme (WFP) signed a five-year MoU for supply of rice to support global humanitarian operations.
- FCI will supply 2 lakh tonnes of rice (up to 25% broken) to WFP under the agreement.
- The price is fixed at Rs 2,800 per quintal up to 31 March 2026 and will be mutually agreed annually thereafter.
- The MoU was signed by Rabindra Kumar Agarwal, CMD, FCI and Carl Skau, Deputy Executive Director, WFP in presence of Secretary, Department of Food and Public Distribution.
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- India has been designated as the Country of the Year at BIOFACH 2026, the world’s leading trade fair for organic products, to be held from February 10 to 13 in Nuremberg, Germany.
- The Agricultural and Processed Food Products Export Development Authority (APEDA) is organising India’s participation with a 1,074 square metre India Pavilion featuring 67 co-exhibitors.
- The pavilion will showcase organic rice, oilseeds, herbs, spices, pulses, cashew, ginger, turmeric, large cardamom, cinnamon, mango puree, and essential oils.
- Exhibitors from 20 states and Union Territories including Assam, Meghalaya, Manipur, Delhi, Gujarat, Haryana, Karnataka, Kerala, West Bengal, Madhya Pradesh, Maharashtra, Rajasthan, Arunachal Pradesh, Tamil Nadu, Telangana, Uttar Pradesh, Jammu and Kashmir, and Uttarakhand are participating.
- Five GI-tagged rice varieties—Indrayani, Navara, Gobindbhog, Red, and Chak Hao (Black rice)—will be served to highlight India’s heritage rice varieties.
- Live sampling of aromatic biryani prepared using premium organic basmati rice and spices will be organised at the India Pavilion.
- India's rice production reached 150.18 million tonnes, exceeding China's 145.28 million tonnes.
- 184 new high-yielding varieties of 25 crops released to boost production and farmers' income.
- Since 1969, a total of 7,205 crop varieties have been notified, including 3,236 approved under the Narendra Modi-led government.
- India transformed from food-deficient to global food provider with abundant foodgrain stocks ensuring food security.
- Newly released varieties include 122 cereals, 6 pulses, 13 oilseeds, 11 fodder crops, 6 sugarcane, 24 cotton, and one each of jute and tobacco.
- Varieties developed by ICAR institutes, state/central agricultural universities, and private seed companies are climate-resilient and pest-disease resistant.
- The World Bank Group (WBG) and India announced a new Country Partnership Framework (CPF) envisaging USD 8-10 billion in annual financing over the next five years.
- The CPF is aligned with India's Viksit Bharat vision to become a developed economy by 2047 and was discussed between Finance Minister Nirmala Sitharaman and WBG President Ajay Banga.
- The partnership prioritises private sector-led job creation to accommodate the approximately 12 million young people entering India's labour market each year.
- The strategy focuses on five key sectors for job creation: infrastructure and energy, agribusiness, health care, tourism, and value-added manufacturing.
- The framework targets four strategic outcomes: boosting rural prosperity, supporting urban transformation, investing in energy security and core infrastructure, and strengthening resilience.
- India is the largest client of the WBG, with International Bank for Reconstruction and Development (IBRD) commitments of USD 20 billion across 79 projects.
- The International Finance Corporation (IFC) holds commitments of USD 16.72 billion across 174 projects in India.
- The Multilateral Investment Guarantee Agency (MIGA) has provided USD 618 million in guarantees for Indian projects.
- India produced 357 million tonnes of foodgrains.
- India's foodgrain production increased by 100 million tonnes compared to 10 years ago.
- Prime Minister Narendra Modi attended the Natural Farming Exhibition in Coimbatore.
- The South India Natural Farming Summit promotes sustainable, eco-friendly, and chemical-free agricultural practices.
- The Summit focuses on regenerative farming as a climate-smart and economically sustainable model.
- The Summit showcases innovations in organic inputs, agro-processing, eco-friendly packaging, and indigenous technologies.
India joins United Nations (UN) statement condemning Israel's West Bank actions
[United Nations (UN), Israel]
Key Updates:
- India joined more than 100 countries and international organisations in endorsing a joint statement at the United Nations (UN) condemning Israel's efforts to consolidate control over the West Bank.
- The joint statement asserts that Israeli actions violate international law and undermine prospects for peace and stability in the region.
- The declaration calls for the immediate reversal of unilateral Israeli measures aimed at expanding presence in the West Bank.
- The statement firmly opposes any form of annexation and rejects measures intended to alter the demographic composition, character, and status of the Palestinian Territory occupied since 1967, including East Jerusalem.
- Prime Minister (PM) Narendra Modi is scheduled to visit Israel next week and is expected to address the Israeli parliament.
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- India paid USD 35.18 million to the UN Regular Budget for 2026 on 3 February 2026.
- The UN Committee on Contributions listed 47 Member States that paid their regular budget assessments in full within the 30-day due period.
- India is now part of the UN 'honour roll' of Member States that have paid their dues on time.
- Israel's Minister of Foreign Affairs Gideon Sa'ar decided that Jerusalem will immediately sever all contact with several United Nations agencies and international bodies.
- The decision was made after a review of organisations named in the United States' announcement and of Israel's own experience with these bodies.
- Israel has already severed ties with the Office of the Special Representative of the Secretary-General for Children in Armed Conflict, UN Women, UN Conference on Trade and Development (UNCTAD), and UN Economic and Social Commission for Western Asia (ESCWA).
- Additional organisations affected include the UN Alliance of Civilisations, UN Energy, and the Global Forum on Migration and Development.
- Senior Indian diplomat DB Venkatesh Varma has been nominated by the UN Secretary General to chair the Advisory Board on Disarmament Matters for the 2026–27 term.
- This marks the first time an Indian will hold the position of chair of the Advisory Board on Disarmament Matters.
- The Advisory Board on Disarmament Matters was established in 1978 pursuant to paragraph 124 of the Final Document of the Tenth Special Session of the General Assembly.
- The Board advises the Secretary-General on issues related to arms limitation and disarmament, including studies and research carried out under the auspices of the United Nations or institutions within the UN system.
- The Board also serves as the Board of Trustees of the United Nations Institute for Disarmament Research.
- Members of the Advisory Board are chosen by the Secretary General from all regions of the world based on their knowledge and experience in disarmament and international security.
- India was invited to join the Donald Trump-led Board of Peace, which is described as a new International Organization and Transitional Governing Administration meant to embark on a bold new approach to resolving Global Conflict!
- Donald J. Trump will serve as the inaugural Chairman of the Board of Peace and will remain in this position even when he is no longer the President of the United States.
- The organization offers a tenure of three years for members, but nations can become permanent members if they pay $ 1 billion in cash in the first year of membership.
- The Executive Board's founding members include US Secretary of State Marco Rubio; US Special Envoy to the Middle East Steve Witkoff; Trump’s son-in-law and businessman Jared Kushner; former UK prime minister Tony Blair; American businessman Marc Rowan; World Bank Group president Ajay Banga; and US national security adviser Robert Gabriel.
- The Board's charter allows it to work to secure enduring peace in areas not just affected by, but also threatened by conflict.
- The original mandate for the Board was approved by the UN in November 2025 to operate in Gaza until the end of 2027, though the new charter has expanded its scope significantly.
- Invitations for membership have been sent to several countries including Hungary, Albania, Greece, Canada, Turkey, Cyprus, Egypt, Jordan, Paraguay, and Argentina, with Pakistan also reporting an invitation.
Ministry of Electronics and Information Technology (MeitY) unveils VoicERA at India AI Impact Summit 2026
[Ministry of Electronics and Information Technology (MeitY)]
Key Updates:
- The Ministry of Electronics and Information Technology (MeitY) officially unveiled VoicERA, an open-source, end-to-end Voice Artificial Intelligence (AI) stack, at the India AI Impact Summit 2026 held at Bharat Mandapam, New Delhi.
- VoicERA serves as a national execution layer for the Digital India BHASHINI Division (DIBD), targeting over 700 dialects to bridge the digital divide.
- The infrastructure is designed to be pluggable and interoperable, allowing deployment on-premise or within sovereign cloud environments to ensure citizen data remains within India.
- The stack utilizes advanced models trained on the Bharat Data Sagar, a repository containing phonetic markers, accents, and colloquialisms from across India.
- VoicERA incorporates high-fidelity Automatic Speech Recognition (ASR) and Text-to-Speech (TTS) capabilities to handle code-switching between local languages and English or Hindi.
- Initial applications include voice-based agricultural advisories, transcription of court proceedings in the judicial sector, and voice-first government helplines for welfare schemes.
- The project is a collaborative effort between the DIBD, EkStep Foundation, International Institute of Information Technology Bangalore (IIIT Bengaluru), and AI4Bharat.
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- Google released TranslateGemma, a set of open-source translation models that work across 55 languages.
- The collection comes in three sizes—4B, 12B, and 27B parameters—designed to run on different devices from smartphones to cloud servers.
- The 12B model outperforms Google's 27B baseline on the WMT24++ benchmark while using less than half the computing power.
- The 4B version matches the 12B baseline's performance, making it practical for mobile apps that need offline translation.
- Google built these models by fine-tuning Gemma 3 on a dataset that mixes human translations and synthetic text from Gemini.
- A second training phase used reinforcement learning with metrics like MetricX-QE and AutoMQM to improve how natural the translations sound.
- The models inherited the multimodal capabilities from Gemma 3 and can translate text within images without extra training.
- The Ministry of Electronics and Information Technology will organise the BHASHINI Samudaye workshop, Strengthening India’s Language AI Ecosystem, in New Delhi.
- BHASHINI Samudaye is a BHASHINI-led collaborative initiative that brings together language experts, academic institutions, civil society organisations, and data practitioners to co-create, govern, and scale language AI solutions for India.
- The workshop will feature focused sessions on scaling BHASHINI, including discussions on platform capabilities, strategic priorities, and pathways for collaboration with stakeholders and implementation partners.
- India’s national compute capacity crossed 34,000 GPUs under the IndiaAI Mission.
- BharatGen AI, the first multimodal large language model built to work across 22 Indian languages, was launched on June 2, 2025.
- Over Rs. 10,300 crore was allocated to the IndiaAI Mission over five years for infrastructure, talent, safety, and data access.
- Bhashini, India’s multilingual AI platform, signed an MoU with the Centre for Railway Information Systems (CRIS) to provide services in 22 languages at railway stations.
- The platform, MStarTM Global AI Connect, will form a national digital backbone linking schools with mentors, incubators, research institutions, accelerators and industry.
- It will support virtual Atal Tinkering Labs and virtual incubation centres linked to physical facilities.
- The collaboration will provide workflows for ideation-to-pilot projects, readiness-level tracking and challenge grants.
- Analytics generated by the platform will aid policy decisions at the Centre and State levels.