Daily Current Affairs Digest | 19th May 2026

Daily Current Affairs Digest | 19th May 2026

RBI Removes Investment Fluctuation Reserve Rule

In a significant move for India’s banking sector, the Reserve Bank of India (RBI) discontinued the Investment Fluctuation Reserve (IFR) requirement for banks, effective May 18, 2026. The IFR was a prudential buffer that helped banks absorb losses from fluctuations in the value of their investment portfolios. With its removal, existing IFR balances will now be treated as Tier 1 capital, offering banks greater flexibility in managing their resources while maintaining regulatory oversight.

Key Takeaways:

  • IFR removal does not eliminate investment risk; it is now managed through broader capital adequacy and market-risk frameworks.
  • Banks can reclassify existing IFR balances into reserves such as Statutory Reserve or General Reserve.
  • The move is expected to enhance capital efficiency and support credit growth in sectors like MSMEs, infrastructure, and consumption.

BCCI Not Under RTI: Clarifying Public Authority Status

The Central Information Commission has clarified that the Board of Control for Cricket in India (BCCI) is not a public authority under the RTI Act. Although BCCI performs functions of national importance in cricket administration, it is formally registered as a private body. The ruling highlights the distinction between public functions and statutory obligations under the RTI framework.

Highlights:

  • Private bodies performing public functions do not automatically fall under RTI unless substantially financed or controlled by the government.
  • BCCI remains autonomous, but transparency and ethical governance are encouraged voluntarily.
  • Important implications for sports governance and accountability in India.

Operation Antim Prahar: Gadchiroli Declared Naxalite-Free

Gadchiroli district in Maharashtra has been reported free from active Naxalite presence following arrests, surrenders, and seizures under Operation Antim Prahar. This reflects the government’s twin strategy of security operations coupled with development interventions in Left-Wing Extremism (LWE)-affected areas.

Key Points:

  • Gadchiroli’s strategic location and tribal population made it historically vulnerable to Maoist influence.
  • Security gains are complemented by development initiatives such as road connectivity, schools, healthcare, and livelihood programs.
  • Long-term stability requires continued governance presence, rehabilitation programs, and community participation.

Made-in-India Airbus C-295: Boost to Defence Manufacturing

India’s first domestically assembled Airbus C-295 military transport aircraft is ready for flight testing at the Tata-Airbus facility in Vadodara. The C-295, intended to replace the ageing Avro-748 fleet of the Indian Air Force, marks a milestone in India’s defence indigenisation efforts.

Highlights:

  • 56 aircraft contracted: 16 fly-away and 40 to be manufactured in India.
  • Supports Make in India and Atmanirbhar Bharat through private-sector participation.
  • Strengthens strategic autonomy, regional industrial development, and skill creation in aerospace manufacturing.

Mount Dukono Eruption: Indonesia on Alert

Indonesia’s Dukono volcano in North Maluku erupted, sending ash high into the atmosphere and prompting authorities to issue safety advisories. Indonesia, located along the Pacific Ring of Fire, experiences frequent volcanic activity due to tectonic plate interactions.

Key Information:

  • The eruption can impact aviation, agriculture, local health, and infrastructure.
  • Disaster preparedness measures include monitoring, hazard zoning, evacuation routes, and public advisories.
  • Highlights the importance of geophysical risk management and early warning systems.