RBI Grade B Current Affairs — 25 August 2026

SEBI decided to introduce an IT Resilience Index (ITRI) to assess the information technology functioning and resilience of Market Infrastructure Institutions such as stock exchanges, clearing corporations, and depositories. The index will provide a structured, quantitative measure of how well these entities can withstand and recover from IT disruptions. The move reflects SEBI's growing regulatory focus on systemic cyber risk and operational continuity across India's critical capital market infrastructure.

Market Infrastructure Institutions (MIIs) — stock exchanges like NSE and BSE, clearing corporations like NSCCL, and depositories like NSDL and CDSL — form the backbone of India's securities markets. Any IT failure at these entities can cascade into systemic risk: trade halts, settlement failures, and investor harm at scale.

The IT Resilience Index (ITRI) is SEBI's tool to shift MII oversight from a compliance-checkbox model to a continuous, scored assessment framework. Rather than requiring MIIs to merely report IT incidents, ITRI will generate a composite score measuring parameters such as system uptime, disaster recovery readiness, cybersecurity posture, and incident response time.

This builds on SEBI's earlier circulars on technology governance for MIIs, including mandates for Business Continuity Planning (BCP), Disaster Recovery (DR) sites, and annual technology audits. ITRI adds a comparative, index-based layer — allowing SEBI to rank, monitor, and intervene based on relative resilience scores.

For aspirants, the conceptual anchor is that SEBI regulates not just market conduct but the operational infrastructure that makes markets function. ITRI sits within SEBI's broader mandate under Section 11 of the SEBI Act to protect investor interests and ensure orderly market development. The introduction of a named, quantified index is the kind of regulatory innovation the examiner tests — because it has an acronym, a purpose, and a specific regulatory context.

The Department of Defence Production (DDP) has notified the 6th Positive Indigenisation List (PIL) under the Aatmanirbhar Bharat initiative, covering 405 strategically important defence items. These items — including ammunition, weapons systems, and high-technology components — are now reserved exclusively for domestic procurement, barring import. The cumulative count across all six PILs now stands at over 4,500 items, signalling India's sustained push to reduce defence import dependence and build indigenous manufacturing capacity.

The Positive Indigenisation List (PIL) is a central instrument of India's defence self-reliance strategy under Aatmanirbhar Bharat. Notified by the Department of Defence Production (DDP), which operates under the Ministry of Defence, each PIL designates specific defence items — ranging from simple spares to complex weapons systems — that the Indian Armed Forces must procure exclusively from domestic manufacturers after a stipulated timeline. Import of listed items is prohibited beyond that date.

The mechanism works on a time-bound import embargo: once an item enters the PIL, the private sector and Defence Public Sector Undertakings (DPSUs) are incentivised to develop domestic production capability before the embargo kicks in. This creates a guaranteed demand signal for Indian industry.

The policy problem being solved is structural: India has historically been among the world's largest defence importers, spending billions in foreign exchange on items that could potentially be manufactured domestically. The PILs directly address this by creating a sequenced roadmap for import substitution.

For competitive exams, the key distinctions are: (1) DDP is the notifying authority, not MoD directly; (2) PILs cover both ammunition and high-technology systems — not just basic equipment; (3) each successive list expands scope, testing whether aspirants track the list number and cumulative count; (4) the policy connects to Priority Sector Lending in a RBI context — defence manufacturing MSMEs benefiting from these contracts can access PSL-eligible credit. NABARD aspirants should note rural defence manufacturing clusters as a rural industrial development angle.

IDFC FIRST Bank has partnered with IIM Calcutta Innovation Park to launch a ₹2 crore national incubation programme targeting sustainable and circular economy startups. The initiative aims to accelerate early-stage ventures focused on environmental sustainability, resource efficiency, and green business models. By combining the bank's financial reach with IIM Calcutta's academic and innovation ecosystem, the programme blends corporate CSR priorities with structured startup mentorship and funding support for climate-aligned entrepreneurs across India.

This initiative sits at the intersection of three exam-relevant themes: CSR obligations of private banks, green finance, and the circular economy as a policy concept.

The circular economy model contrasts sharply with the traditional linear 'take-make-dispose' approach. Instead, it emphasises resource reuse, recycling, and regeneration — reducing waste and environmental pressure. India's policy push toward circular economy principles is visible in the Extended Producer Responsibility (EPR) frameworks for plastics and e-waste, the National Resource Efficiency Policy (2019), and India's climate commitments under the Paris Agreement.

For banks like IDFC FIRST, funding such an incubator can qualify as a CSR expenditure under Schedule VII of the Companies Act, 2013, which permits CSR spending on environmental sustainability, technology incubators within academic institutions, and rural development. Partnering with an IIM-affiliated innovation park also satisfies the 'technology incubator' carve-out explicitly listed in Schedule VII.

From RBI's angle, this programme reflects the push for sustainable finance. RBI's Discussion Paper on Climate Risk and Sustainable Finance (2022) and the Business Responsibility and Sustainability Report (BRSR) framework nudge banks toward green lending and ESG-aligned investments. Startup incubation for circular economy ventures is a soft form of green credit channel creation.

For SEBI, ESG disclosure norms and BRSR requirements for listed companies are the connective tissue — IDFC FIRST Bank being a listed entity must report such sustainability initiatives.