Annual Report

During the year, the Reserve Bank implemented its Communication Policy 3.0, retaining its focus on agility, accuracy, and accessibility of information. The Reserve Bank continued to strengthen its economic and financial relations with international organisations and multilateral bodies. Efforts were also made towards bringing more efficiency in the government’s cash management system, besides emphasis on sound management of foreign exchange reserves. Economic policy analysis and research, and information management systems were further refined to strengthen policy inputs.

X.1 In 2025-26, the Reserve Bank enhanced public awareness through targeted financial literacy and customer protection campaigns. India assumed the BRICS Chair in 2026, guided by the theme ‘Building for Resilience, Innovation, Cooperation and Sustainability’. The Reserve Bank is steering the activities under the central bank work streams of the Finance Track. The Reserve Bank continued to enhance the efficiency of government payment system through continuous cheque clearing under the aegis of ‘Payments Vision 2025’. Prudent measures were taken to manage foreign exchange reserves amidst heightened global uncertainty. Research studies were undertaken on a wide range of contemporary issues to provide analytical inputs for policy formulation. The Reserve Bank’s information management system strived to streamline the Central Information Management System (CIMS) and modernise the Central Information System for Banking Infrastructure (CISBI).

X.2 Against this backdrop, the rest of the chapter is divided into eight sections. Section 2 presents major initiatives of the Reserve Bank with regards to its communication policy and processes. Section 3 discusses the Reserve Bank’s international relations, including interactions with international organisations and multilateral bodies. Section 4 deals with the activities of the Reserve Bank as a banker to governments and banks. Section 5 analyses the conduct of foreign exchange reserves management. Section 6 focuses on activities of the Department of Economic and Policy Research (DEPR) on economic research, statutory reports, and frontline research publications. Section 7 outlines the activities of the Department of Statistics and Information Management (DSIM), whereas Section 8 presents the activities of the Legal Department. Concluding observations are provided in the last section.

2. COMMUNICATION PROCESSES

X.3 During 2025-26, the Reserve Bank through its Department of Communication (DoC) followed a multi-pronged approach to facilitate clear and timely communication towards further strengthening the efficacy of its various policy measures. The Department implemented ‘Communication Policy 3.0’, retaining its focus on agility, accuracy, and accessibility of information, besides expanding its existing multi-channel strategy.

Agenda for 2025-26

X.4 The Department had set out the following goals for 2025-26:

• Commencement of RBI Sunta Hai - Social Media Listening Project (Paragraph X.5);

• Media room with facility of podcast (Paragraph X.6);

• Impact assessment of public awareness campaigns (PACs) [Paragraph X.7]; and

• Greater collaboration with regulated entities (REs) for awareness campaigns (Paragraph X.8).

Implementation Status

X.5 Using advanced technological tools, the Reserve Bank has enhanced its social media listening capabilities, thorough monitoring of social media and messaging applications for supervisory cues, and early detection of misinformation requiring to be fact checked in public interest.

X.6 A media room has been designed for enabling various in-house recording and production of podcasts. In furtherance of its communication strategy, the Reserve Bank has launched its official podcast series ‘RBI Talks: From Paisa to Policy’ on January 1, 2026, aimed at simplifying complex financial concepts and enhancing public understanding of monetary and regulatory policies. The series debuted with the episode titled ‘Demystifying Know Your Customer (KYC)’ and is accessible via the Reserve Bank’s official YouTube channel and website.

X.7 To assess the effectiveness of 360-degree public awareness efforts, impact assessment of public awareness campaigns is being carried out. These assessments help in fine-tuning the media mix, strengthening creatives and regional language relevance, and measuring behavioural outcomes among the target audience.

X.8 The Department engaged with several REs to better understand the diverse communication strategies and tools being adopted by them, particularly in enhancing financial literacy, building public awareness on safety and security of financial and banking transactions, cyber security, and digital frauds.

Major Developments

X.9 Under the overarching theme of ‘RBI Kehta Hai… Jaankaar Baniye, Satark Rahiye’, the Reserve Bank undertakes comprehensive, multi-lingual PACs to familiarise the public with key regulatory messages and build financial awareness. As financial services become more digital, these campaigns play a crucial role in cautioning the public against impersonation scams, fraudulent digital links, QR-code traps, and other emerging risks.

X.10 During 2025-26, the Department disseminated customised communication using various media in 11 major regional languages apart from Hindi and English (Table X.1).

X.11 Campaigns on Re-KYC and unclaimed deposits were taken up with extended and focused efforts to improve public understanding of the requirements, facilitating customers’ access, and claim to their funds. The Reserve Bank also released awareness messages in high impact events / programmes.

X.12 As part of the Department’s new initiatives, the Reserve Bank’s PACs were also released through WhatsApp. Further, simplified public awareness messages with the tagline ‘RBI Kehta Hai. Smart Bano, Cool Raho’ continued for creating public awareness.

Other Initiatives

Social Media Monitoring

X.13 The Reserve Bank uses multiple social media channels for information and public awareness. Its X (erstwhile Twitter) accounts (‘RBI’ and ‘RBI Says’) share official announcements and awareness content, while YouTube hosts speeches, events, and interviews. The Reserve Bank also has presence on LinkedIn and Facebook (RBI Says) and uses Public App to reach wider audiences in regional languages.

X.14 Social media has become central to transparent and real-time communication. The Reserve Bank monitors online activity through a vendor platform and coordinates with the Press Information Bureau’s (PIB) Fact Check Unit to counter misinformation.

Post Monetary Policy Press Conferences

X.15 Six press conferences were conducted during 2025-26 on the dates of bi-monthly monetary policy announcements where the Governor and Deputy Governors interacted with the media persons.

Media Interaction and Workshops

X.16 The Reserve Bank conducted six media interactions in an informal, Chatham House set up in Mumbai and Delhi during 2025-26. Given the important role played by regional media, workshops were also conducted on a periodic basis to provide inputs to regional media with respect to certain aspects of central banking functions. Four such workshops were conducted during 2025-26 at Vijayawada, Bhubaneswar, Nagpur and Jaipur.

Agenda for 2026-27

X.17 During 2026-27, the Reserve Bank’s communication channels would be further strengthened, and efforts will be made to:

• Enhance social media engagement; and

• Enhance regional media outreach.

3. INTERNATIONAL RELATIONS

X.18 During 2025-26, the Reserve Bank through its International Department (ID) continued to strengthen its engagement with international financial community and deepened cooperation with International Organisations and central banks across the globe. The Department provided inputs on the Reserve Bank’s perspectives and made contributions to deliberations across major global fora, including the International Monetary Fund (IMF), Organisation for Economic Cooperation and Development (OECD), the G20, Bank for International Settlements (BIS), Financial Stability Board (FSB), BRICS and SAARCFINANCE¹.

X.19 The Reserve Bank has been engaged in finalising the central bank priorities and deliverables during India Chair of BRICS in 2026.

Agenda for 2025-26

X.20 The Department had set out the following goals for 2025-26:

• Intensifying engagements with BRICS central banks by finalising amendments to BRICS Contingent Reserve Arrangement (CRA) treaty and facilitating discussions on onboarding of new BRICS members to the CRA (Paragraph X.21);

• Continuing operational readiness for swap support under the framework on currency swap arrangement for SAARC countries 2024-27 (Paragraph X.22);

• Strengthening cooperation with SAARCFINANCE and other central banks through capacity building, technical assistance, and research activities (Paragraph X.23); and

• Finalising the Memorandum of Understanding (MoUs) under negotiation with other central banks, especially with the Banque de France and the European Central Bank (Paragraph X.24).

Implementation Status

X.21 The amendments to the BRICS CRA Treaty are being finalised by the Working Group and will be concluded, subject to approval by national authorities. The Reserve Bank initiated discussions on the process of onboarding new BRICS members into the CRA.

X.22 The Reserve Bank extended support to Maldives and Bhutan during 2025-26 under the framework on currency swap arrangement for SAARC countries 2024-27.

X.23 The Reserve Bank supported capacity building for central banks through SAARCFINANCE scholarships, field visits and technical assistance in areas of banking regulation, supervision, green financing, financial inclusion, data warehousing, monetary policy, and treasury operations.

X.24 MoUs with Banque de France and the European Central Bank (ECB) were signed on March 09, 2026 and May 10, 2026 respectively. The terms of engagement with Bank of Japan were renewed for one year.

Other Initiatives

BIS Activities

X.25 The Department provided analytical support for various meetings of the BIS, including the Governors’ bi-monthly meetings, the Committee on the Global Financial System (CGFS), and the BIS Annual General Meeting.

BRICS

X.26 The discussions under the BRICS Finance Track in 2025, inter alia, focused on impact of evolving global outlook on BRICS, amendments to the BRICS CRA, climate risk frameworks and stress testing methodologies and cross-border payment connectivity. Experiences with artificial intelligence tools and frameworks, along with cyber-risk assessments for critical technology suppliers, were also explored. India has taken over as the BRICS Chair with effect from January 1, 2026. The Reserve Bank co-chaired the first BRICS Finance and Central Bank Deputies meeting held virtually on February 26, 2026. The first round of Working Group meetings under central bank work streams were also concluded in March 2026.

SAARCFINANCE

X.27 The Reserve Bank continued to promote regional cooperation, capacity building and strengthening institutional capabilities in the SAARC region during the year through technical assistance and knowledge sharing programmes on central banking functions, encompassing banking regulation and supervision, data warehousing and treasury operations.

FSB Initiatives on Global Financial Regulation

X.28 The Department actively engaged in discussions across various FSB standing committees, sharing the Reserve Bank’s perspectives on key issues including international collaboration for financial stability, the resilience of non-bank financial institutions (NBFIs), cryptoassets and emerging financial technologies, cross-border payment, resolution framework enhancements, and climate-related financial risks. The Department also contributed inputs to key FSB reports and various surveys conducted by the FSB. Further, the Department was actively involved in providing inputs for the ‘13^th India-UK Economic and Financial Dialogue (EFD)’, the ‘India-US Bilateral Trade Agreement (BTA)’, and ‘India-UK Vision 2035’.

SEACEN

X.29 The South-East Asian Central Banks (SEACEN) Research and Training Centre, comprising 19 central banks/monetary authorities, remains Asia’s premier capacity building hub. The Department actively engaged with SEACEN, participating in the 24^th Meeting of the SEACEN Executive Committee (EXCO) held on September 26, 2025, in Seoul, Korea, the 45^th SEACEN Board of Governors (BOG) meeting held on October 29, 2025, in Bali, Indonesia, and the Special EXCO Meeting held on February 06, 2026, in Kuala Lumpur, Malaysia to deliberate various policy matters and activities of the SEACEN Centre for the year 2026.

X.30 The Department facilitated exposure/ study visits for various foreign central banks, financial institutions/ministerial delegation and also provided comprehensive inputs for the Government of India’s bilateral engagements.

G20

X.31 South Africa assumed the G20 Presidency in December 2024, with the overarching theme of ‘Solidarity, Equality, and Sustainability’. Its key priorities, inter alia, included, enhancing macroeconomic cooperation; strengthening the global financial safety net; managing risks from volatile capital flows; and mitigating financial system vulnerabilities, with a focus on NBFIs, crypto assets, artificial intelligence, and crossborder payments.

X.32 The Reserve Bank worked in coordination with the Ministry of Finance (MoF), Government of India (GoI), on the above priorities pertaining to the financial sector, macroeconomic policy framework, international financial architecture, financial inclusion and sustainable finance. The South African Presidency culminated with the Leaders’ Summit held during November 22-23, 2025, following which the United States assumed the G20 Presidency from December 1, 2025.

IMF, World Bank and OECD

X.33 The Department provided support for the Reserve Bank’s participation in the bi-annual Fund-Bank meetings of the International Monetary and Finance Committee (IMFC) held in April and October 2025 and provided inputs on various IMF’s policy issues to the MoF, GoI. The Department also facilitated the IMF’s 2025 Article IV consultations held during September 2025. The IMF favourably assessed India’s macroeconomic developments in 2025. The joint IMF-World Bank Financial Sector Assessment Programme (FSAP) concluded on October 30, 2025, with the publication of the World Bank’s Financial Sector Assessment (FSA) of India. Earlier, the IMF’s Financial System Stability Assessment (FSSA) of India was published on February 28, 2025. The Department also contributed to the OECD Advisory Task Force on the Codes (ATFC) meetings, wherein India is an observer country.

Other Engagements

X.34 The Department hosted the 7^th Senior Level Dialogue between the Reserve Bank and Bank of Japan in Mumbai, strengthening exchange of information and cooperation in the field of central banking. The Reserve Bank also took part in the 9^th meeting of the Joint Technical Coordination Committee with Nepal Rastra Bank in November 2025 with a view to fostering collaboration and advancing bilateral initiatives.

Agenda for 2026-27

X.35 Going forward, the Department proposes the following agenda for the Reserve Bank’s international engagements:

• Steer the activities under the central bank work streams of the BRICS Finance Track during India’s Chair of BRICS in 2026; and

• Initiate work relating to framework on currency swap arrangement for SAARC countries for 2027-2030.

4. GOVERNMENT AND BANK ACCOUNTS

X.36 The Department of Government and Bank Accounts (DGBA) manages the functions of the Reserve Bank as the banker to banks and banker to governments, besides maintaining internal accounts and formulating accounting policies of the Reserve Bank. DGBA, in co-ordination with SEACEN Centre, organised first of its kind International Conference on Central Bank Accounting Practices at Mumbai during November 14-15, 2025. The conference was attended by senior officials from over 20 central banks, and representatives from multilateral institutions, including Bank for International Settlements and International Monetary Fund. In continuation of the efforts to enhance the efficiency of Government Payment Systems during 2025-26: (a) continuous clearing in Cheque Truncation System (CTS) was rolledout (under the aegis of ‘Payments Vision 2025’), and (b) banking transactions of several State Governments and Union Territories (UTs) were integrated with e-Kuber.

Agenda for 2025-26

X.37 The Department had set out the following goal for 2025-26:

• Implementation of Centrally Sponsored Schemes (CSS) payments through Aadhaar, as notified by the Central Government, using National Payments Corporation of India’s (NPCI’s) Aadhaar Payment Bridge System (APBS) platform through integration of e-Kuber with NPCI, Central and State Government systems for the notified States (Paragraph X.38).

Implementation Status

X.38 During the year, 26 States and three UTs have gone live for Aadhaar-based Direct Benefit Transfer (DBT) payments under CSS. Under this arrangement, the State Governments send Aadhaar-based payment files directly to NPCI for processing, while the Reserve Bank effects the gross fund settlement.

Major Developments

Revision in Agency Commission Rates

X.39 The Reserve Bank pays commission to Agency Banks (ABs) for conducting Government banking business. Based on the recommendation of the Committee constituted under the chairpersonship of the Chief Financial Officer (CFO), the agency commission rates have been revised, effective April 1, 2025. Further, it has been decided to (a) review the agency commission rates once in every three years, and (b) agency commission is to be paid on all payment transactions handled by ABs, except those which are either pre-funded or where some compensation is paid by the Government to ABs.

Introduction of Continuous Clearing and Settlement on Realisation in CTS

X.40 Phase 1 of the continuous clearing in CTS was implemented, effective October 4, 2025, which has reduced the settlement period for clearing of Government cheques from ‘T+1’ to ‘same day’.

Implementation of Centralised Inward Clearing (CIC)

X.41 CIC has been implemented, effective March 2, 2026, as a step towards enhancing efficiency in processing of instruments received by the Reserve Bank in inward clearing. It will also reduce operational risk and human resource requirement. Under CIC, Banking Department (BD), Chennai, functions as the service branch for all Regional Offices (ROs) of the Reserve Bank.

Review of Inspection Framework, Systems and Processes for Agency Banks (ABs)

X.42 A Working Group (WG) was constituted with members from Central Office Departments (CODs) and select ROs to review the framework, systems and processes for inspection of ABs. The report of the WG is under examination.

Integration of Financial Systems of State Governments with e-Kuber

X.43 During the year, CSS payments using NEFT/RTGS² payment mode was implemented for State Government of Nagaland, UTs of Puducherry and Jammu, and the Government of the National Capital Territory (NCT) of Delhi. With this, all the 28 State Governments and three UTs are live in CSS. This has enabled just-in-time payments under CSS using tripartite integration among e-Kuber, Public Financial Management System (PFMS), and the respective State Government systems.

X.44 Five State Governments were onboarded for agency bank reporting and one State Government for direct NEFT/RTGS in enhanced version of e-receipts. Further, State Governments of Mizoram, Nagaland, Meghalaya and NCT of New Delhi were onboarded for processing of online Memorandum of Error (MoE) related to Goods and Services Tax (GST) receipts. With this, 26 State Governments and three UTs are now live for online MoE.

Enhancing Efficiency in Government Payment Systems

X.45 The Reserve Bank has implemented several initiatives, including the introduction of a dashboard facility and Indian Financial System Code (IFSC) synchronisation facility, among others. Nine State Governments and two UTs were onboarded for dashboard facility while 12 State Governments were onboarded for IFSC synchronisation facility, respectively.

Other Initiatives

X.46 Recovery of excess pension paid to the defence pensioners using direct NEFT/RTGS receipt model (through the challan-based mechanism) was enabled during the year with the integration of e-Kuber and System for Pension Administration (Raksha), i.e., ‘SPARSH’ system of Controller General of Defence Accounts (CGDA).

X.47 Steps have been initiated for migration of Inter-Government Adjustment Advice (IGAA) to enhanced version of e-payments in e-Kuber.

X.48 Provision for Government payments through Central Bank Digital Currency (CBDC), with the Reserve Bank as the sponsor bank, is enabled in e-Kuber for Direct Benefit Transfer (DBT) payments under the Treasury Single Account (TSA) framework. Government departments onboarded with NPCI can process CBDC payments through e-Kuber with the Reserve Bank acting as the sponsor bank. Leveraging the existing model of APBS, and using Aadhaar number as the unique identifier, Government payments are released in the form of CBDC/ programmable CBDC tokens.

Agenda for 2026-27

X.49 The Department proposes the following agenda for 2026-27:

• Migration to online reporting of government payments and amendments;

• IGAA to be migrated to enhanced version of e-payments in e-Kuber; and

• Enabling e-Kuber for processing of Government DBT payments through TSAs.

5. MANAGING FOREIGN EXCHANGE RESERVES

X.50 In sync with the broader principles of reserve management, the Department of External Investments and Operations (DEIO) continued with the management of foreign exchange reserves (FER). The FER increased by 3.4 per cent during 2025-26 consistent with the increase of 3.4 per cent in the previous year. The Department sustained its efforts to diversify reserves by exploring new asset classes and jurisdictions for deployment of foreign currency assets (FCA) in line with its policy objectives. Amid heightened global uncertainty, the Department prioritised stability, safety and liquidity in reserve deployment.

Agenda for 2025-26

X.51 The Department had set out the following goals for 2025-26:

• To leverage the Reserve Bank’s leadership role in: (i) promoting collaborative approach towards reserve management through multilateral platforms, and (ii) emerging as a ‘central of excellence’, providing training/handholding to other central banks, if required (Paragraph X.52); and

• To undertake a comprehensive review of credit risk policy and enhance the use of technology in credit risk management (Paragraph X.53).

Implementation Status

X.52 The Department actively engaged with various central banks to share perspectives on evolving reserve management practices. As part of these efforts, the Department organised a focused discussion on Bilateral Swap Lines (BSLs) on October 17, 2025, with central banks of ASEAN region. Continuing the Reserve Bank’s leadership role among peer central banks in promoting collaborative approach towards reserves management, DEIO conducted an International Conference themed ‘Resilient Reserves: Anchoring Stability in an Era of Uncertainty’ during March 5-6, 2026. Set in the backdrop of the escalating conflict in West Asia, the event underlined the importance of greater central bank co-ordination in navigating current uncertainty and ensuring resilience in reserves.

X.53 The credit risk policy has been comprehensively reviewed by following international best practices and with due emphasis on critical risk metrics. In addition, to enhance the use of technology in credit risk management, suitable online dashboards have been developed and deployed. These dashboards provide realtime visibility into the credit profile of the Reserve Bank’s investments, thereby enabling dynamic risk assessment through data-driven analytics.

Agenda for 2026-27

X.54 The Department has set the following goals for 2026-27:

• In the backdrop of increased geopolitical risks and economic policy uncertainty, increased focus on deploying foreign currency assets in a more diversified portfolio with a view of optimising risks and improving returns;

• Improving data dissemination and disclosure mechanisms; and

• Upgrading reserve management systems and processes for better risk management.

6. ECONOMIC AND POLICY RESEARCH

X.55 The Department of Economic and Policy Research (DEPR) serves as the Reserve Bank’s key centre for policy research, providing analytical inputs for policy decisions. In addition, DEPR publishes the statutory reports of the Reserve Bank (the Annual Report and the Report on Trend and Progress of Banking in India) along with a report on State Finances: A Study of Budgets and the Handbook of Statistics on Indian States. Additionally, the Department has been playing a pivotal role in the publication of topical research papers and articles addressing various aspects of the Indian economy. The Department also promotes academic research across the country through various external research schemes and engages in collaborative research with external researchers.

X.56 All primary and secondary statistics covering monetary aggregates, balance of payments (BoP), external debt, effective exchange rates, combined government finances, household financial savings, and flow of funds were disseminated within the prescribed timelines, with due emphasis on data quality.

Agenda for 2025-26

X.57 During 2025-26, the Department had set the following goals:

• Maintaining the target of publishing a minimum of 100 research papers (Paragraph X.58 - X.59);

• Undertaking topical studies covering issues relating to core areas of central banking as well as emerging policy issues, namely inflation dynamics, monetary and regulatory policy, real sector, and digital technology. These studies will include topics, such as ‘Multivariate Core Trend Inflation: Assessing Underlying Inflation’, ‘Wage and Inflation (Wage Phillips Curve) Dynamics: Insights from PLFS³ Data’, ‘Bank Competition and Monetary Transmission’, ‘Drivers of FinTech App User Experience: A Text Mining Approach’, among others (Paragraph X.58 - X.59); and

• Publication of the Report on Currency and Finance based on the theme ‘India’s External Sector: Navigating Global Turbulence’ and the Report on Finances of Panchayati Raj Institutions (Paragraph X.60).

Implementation Status

X.58 In line with the objectives set for 2025-26, the Department undertook 102 extensive research projects during the year. These include research articles in the RBI Bulletin, and papers published in domestic and international peer-reviewed journals. This research covered a wide range of contemporary issues of relevance for policymaking, including analyses of inflation dynamics using multivariate core trend measures, wage-inflation (Phillips curve) relationships based on PLFS data, bank competition and monetary transmission, drivers of FinTech app user experience using text-mining approaches, and broader assessments relating to the external sector, real sector developments, and digital technology.

X.59 The studies titled ‘Monetary Policy Transmission to Macro Variables in India - using Identified High Frequency Monetary Policy’; ‘Drivers of Gold Demand in Foreign Exchange Reserves: Indian Case’; ‘How does Yield Curve respond to Macroeconomic Data Surprises?’; ‘Impact of US Monetary Policy Announcements on Indian Banking Sector Equity Performance’; ‘New Horizons for Indian Agriculture’ and ‘Green Banking Practices in India’ are at various stages in the publication pipeline.

X.60 Report on Currency and Finance, titled ‘India’s External Sector: Navigating Global Turbulence’ and the Report on Finances of Panchayati Raj Institutions are being prepared.

Other Initiatives

Knowledge and Research Dissemination

X.61 During the year, as part of Monthly Seminar Series, the Department organised talks by eminent economists and scholars on a wide range of themes, including environmental priorities for monetary and financial policy, structural transformation, human capital, trade policy, financial stability, labour markets, inequality, and monetary policy frameworks. Several sessions were conducted in hybrid mode to enable wider participation across departments and promote knowledge dissemination within the Reserve Bank. Further, the DEPR Study Circle, an in-house discussion forum, organised 14 online seminars/presentations of research papers on diverse topics to facilitate in-depth discussion and improve the overall quality of research.

X.62 In the Central Library, EBSCO Discovery Service (EDS) has been developed as a search platform to allow users to search all subscribed resources of the library from a single interface. The library has also implemented digital display screen for all new books/journals and has proposed to implement the RFID⁴ technology for providing efficient services. These tools will enhance search capabilities and provide interactive learning experiences for users. It has also subscribed a NotNul Hindi E-Books and magazines package including 5,900 e-books and more than 150 magazines.

Support to Academic/Research Institutions

X.63 In accordance with Section 17(15B) of the RBI Act, 1934, the Reserve Bank extends financial support for external research including through the RBI Professorial Chairs and the Corpus Fund Scheme. Currently, 20 RBI Professorial Chairs are established across research institutes and universities throughout India. During the year, research undertaken by the Professorial Chairs addressed a wide range of themes, including inflation forecasting, climate finance, financial inclusion, and merchandise trade. Several Professorial Chairs also organised workshops for students and young faculty on open economy macroeconomics, with faculty support provided by the Department.

Engagements with Domestic/International Organisations

X.64 The Department remained actively engaged in high-level national and international consultations during the year. The Department participated in IMF Article IV deliberations, discussions with the IMF team under the Financial Sector Assessment Programme (FSAP) 2024, and had interactions with global credit rating agencies, including S&P, Moody’s and Fitch. The Department contributed analytical inputs to the deliberations of the 16^th Finance Commission and participated in national workshops and conferences of rural and urban local bodies organised by institutions such as NITI Aayog. Further, the Department engaged closely with the National Statistics Office (NSO), the Securities and Exchange Board of India (SEBI), and the Advisory Committee on National Accounts Statistics to enhance the quality and coverage of the National Accounts Statistics through methodological contributions.

Agenda for 2026-27

X.65 The Department’s agenda for 2026-27 will focus on achieving the following goals:

• Publication of flagship reports in addition to the monthly ‘State of the Economy’ article and the Report on Municipal Finances; and

• Undertaking topical and policy-oriented studies spanning key domains of central banking and emerging macro-financial issues, including export intensity and intersectoral linkages of manufacturing sector, global monetary policy spillovers, supply management and food inflation dynamics, resilience of debt market mutual funds, trends in renewable energy transition, performance of urban cooperative banks (UCBs) in India, household consumption expenditure survey, and global capability centres (GCCs) and their role in India’s BoP.

7. STATISTICS AND INFORMATION MANAGEMENT

X.66 The Department of Statistics and Information Management (DSIM) continued to focus on improving its core functions of compiling, analysing, and sharing macro-financial statistics. The Department also undertook a critical review of the surveys conducted for informing the monetary policy to make them more contemporary, relevant and focused. The Department also initiated releasing the results of the household surveys covering semi-urban and rural areas.

Agenda for 2025-26

X.67 The Department had set out the following goals for 2025-26:

• Shifting the remaining paper-based/e-mail-based reporting as well as any ad hoc data collection to structured electronic reporting in Centralised Information Management System (CIMS) [Utkarsh 2.0] (Paragraph X.68);

• Shifting of CIMS’s IT infrastructure to a new data centre of the Reserve Bank (Paragraph X.69);

• Modernising Central Information System for Banking Infrastructure (CISBI) system as part of the CIMS (Paragraph X.70);

• Phase-wise roll out of Statistical Data and Metadata eXchange (SDMX)-based data collection for element-based reporting (EBR) [Utkarsh 2.0] (Paragraph X.71);

• Leveraging climate data to improve the performance of forecasting and nowcasting models by utilising advanced artificial intelligence (AI)/machine learning (ML) techniques, while exploring new datasets to enhance predictive capabilities (Paragraph X.72);

• Leveraging advancements in large language models (LLMs) for text analysis, with plans to use them for pre-processing unstructured data and for extracting valuable insights. The pre-processed data generated by LLMs can serve as input for enhancing existing AI/ML models (Paragraph X.73); and

• Expansion of coverage and base revision for (a) Housing Price Index (HPI) and (b) Banking Services Price Index (BkSPI), consistent with the impending revision in compilation of major macroeconomic aggregates (Paragraph X.74).

Implementation Status

X.68 All assigned paper/e-mail-based returns were transitioned into structured reporting under the CIMS.

X.69 The work related to migration of CIMS to the new data centre including IT infrastructure capacity augmentation is under progress.

X.70 Activities on modernising CISBI with further enhancement and functionality has been initiated and is in progress.

X.71 Software application modules were designed, developed, and tested for EBR. After conducting of pilot test with select banks for EBR using the SDMX standard, the testing was extended to major scheduled commercial banks (SCBs). These banks have created standard data architecture and started reporting elements relating to financial inclusions for conduct of parallel run in CIMS. The data elements relating to supervision, regulation, and other areas are being taken up progressively.

X.72 The models used for nowcasting, and forecasting were further upgraded using AI/ML techniques and data on extreme climate events, acknowledging relevance of climate risk factors to the economic outcomes. Specifically, the effects of extreme weather events on vegetable prices were analysed to identify the channels through which acute climatic stressors affect the output and impact prices.

X.73 Advanced LLMs were leveraged to analyse large scale complaint data under the Reserve Bank Integrated Ombudsman Scheme and unstructured feedback from social media for granular and systematically derived bank wise sentiment insights. AI/ML toolbox was also used for extracting the trends in credit flow at sectoral and regional level granular data collected under the Basic Statistical Return.

X.74 The HPI was compiled on quarterly basis based on transaction-level data received from the registration authorities. The base year for the HPI was updated to 2022-23, along with expansion of coverage to 18 major cities and refinement of methodology. The work relating to base year revision of BkSPI as part of services sector price indices in alignment with macroeconomic aggregates was also completed.

Other Initiatives

X.75 Amendments to the Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934, through the Banking Laws (Amendment) Act, 2025 necessitated changes in the software modules for submission of various returns and the impacted reports, as the definition of ‘fortnight’ was changed from ‘reporting Friday’ to ‘fifteenth and last day of calendar month’. The changes were implemented after the relevant provisions of the Act came into effect.

X.76 The CIMS analytical platform has been successfully upgraded to the Cloudera AI and internal testing is under progress. Post successful testing, the access of the platform will be provided to the Reserve Bank users, in phases. Further, Development of Central Fraud Registry (CFR) for Urban Cooperative Banks (UCBs) and Non- Banking Financial Companies (NBFCs) in CIMS has been completed.

X.77 The Department is working on development and operationalisation of analytical dashboard and will provide access to various Central Office Departments in CIMS platform. This will improve the analytical and graphical representation of data to the users of different functional departments.

X.78 A generic framework for crop loss assessment due to extreme weather events has been designed using the remote sensing data and AI/ML tools. Further, geospatial night-time light data has been utilised to nowcast gross state domestic product (GSDP) growth of major Indian states by integrating Google Search volume data, thereby improving the robustness of near-term economic assessments.

Agenda for 2026-27

X.79 The Department will focus on the following goals during 2026-27:

• Reviewing the monetary policy surveys to improve the methodology and coverage;

• Comprehensive review of data dissemination portal of the Reserve Bank;

• Enhancing the efficiency of the system, CIMS will be migrated to new IT infrastructure at the Reserve Bank’s new Data Centre;

• Developing conversational English language-based data query facility in CIMS for common data users;

• Implementation of EBR for supervisory, regulatory, and other areas of data in a phased manner;

• Implementation of statistical Data Quality Index (DQI) and preparation of dashboards for DQI for internal use as well as regulated institutions; and

• Exploring new data sources as high-frequency indicators for service-sector.

8. LEGAL ISSUES

X.80 The Legal Department has been established for examining and advising on legal issues, and for facilitating the management of litigation for and on behalf of the Reserve Bank. The Department extends legal support and advice to the Deposit Insurance and Credit Guarantee Corporation (DICGC), Centre for Advanced Financial Research and Learning (CAFRAL), and other RBI-owned institutions on legal issues, litigation and court matters.

Agenda for 2025-26

X.81 The Department had set out the following goal for 2025-26:

• Preparation of a research paper on ‘Leveraging of AI for Enhancing the Legal Function in the Financial Sector’ (Paragraph X.82).

Implementation Status

X.82 A team of three officers constituted by the Department is working on ‘Leveraging of AI for Enhancing the Legal Function in the Financial Sector’, which is likely to be completed soon.

Major Developments

X.83 The Banking Laws (Amendment) Act, 2025, which, inter alia, seeks to improve governance standards in the banking sector, ensure enhanced protection for depositors and investors, increase the tenure of directors (other than the chairperson and whole-time directors) in cooperative banks and make provision for simultaneous and successive nomination, received the assent of the President on April 15, 2025.

Other Initiatives

X.84 During the year, the Legal Department’s Research Cell organised in-house discussions on evolving areas of law. The Department also commenced monthly presentations exclusively by junior officers on important opinions/ matters handled by them. The Department also provided faculty support for various training establishments of the Reserve Bank as well as external institutions.

X.85 The Department, in collaboration with National Law School of India University (NLSIU), Bengaluru, National Law University, Delhi, National Academy of Legal Studies and Research (NALSAR), Hyderabad and Gujarat National Law University (GNLU), Gandhinagar, organised four training programmes on ‘Regulation Drafting’ for officers in the Combined Seniority Group (CSG) cadre from various Central Office Departments, particularly from supervisory, regulatory and enforcement areas, and regional offices.

Agenda for 2026-27

X.86 In 2026-27, the Department will focus on the following goal:

• Reviewing the Reserve Bank of India Act, 1934 and suggesting required legislative changes.

9. CONCLUSION

X.87 The Reserve Bank deployed multiple means of communication covering a wide range of audience to strengthen public confidence in its policy actions. The international economic and financial relations were deepened through regular engagement with the international organisations and multilateral bodies. An integrated framework was created for transfer of funds for centrally sponsored schemes (CSS) on a real time basis through gradual onboarding of all concerned stakeholders. The foreign exchange reserves were managed prudently. Economic research activities were sharpened by undertaking studies on a gamut of topical issues. The statistics and information management system was further strengthened by upgrading data warehouse with state-of-the-art technologies.

¹ SAARCFINANCE is a Network of Central Bank Governors and Finance Secretaries of SAARC countries.

² National Electronic Fund Transfer/Real-Time Gross Settlement.

³ Periodic Labour Force Survey.

⁴ Radio Frequency Identification.

Index