Banking & Finance Current Affairs - 2026-05-07

Background: The rise of digital lending apps led to concerns regarding data privacy and predatory recovery practices. Current Context: The RBI has issued updated guidelines mandating that all loan disbursements and repayments must be executed directly between the bank accounts of the borrower and the regulated entity. Impact: This move aims to eliminate third-party intermediaries, thereby reducing the risk of data misuse and ensuring greater transparency in the lending ecosystem, ultimately protecting retail borrowers from unethical collection practices.

Background: India launched its first sovereign green bonds in 2023 to fund public sector projects that reduce carbon intensity. Current Context: The Finance Ministry has revised the framework to include new categories of sustainable infrastructure, aiming to attract long-term foreign institutional investors. Impact: By broadening the scope of eligible projects, the government expects to mobilize significant capital for climate-resilient infrastructure. This strategic shift will help India meet its net-zero targets while providing a stable investment avenue for global investors seeking ESG-compliant assets.