Daily Current Affairs 28 February 2026: Analytical Coverage for UPSC, SSC & Banking Exams

Introduction

The current developments of 28 February 2026 reflect India’s rapid transition towards Digital Public Infrastructure (DPI), fiscal consolidation at the state level, AI-driven diplomacy, innovation-led growth, and targeted welfare delivery reforms. The launch of a Central Bank Digital Currency (CBDC)-based Digital Food Currency pilot under Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) signals a structural shift in subsidy administration. Simultaneously, the Reserve Bank of India (RBI) approved strategic equity acquisition by SBI Mutual Fund, reinforcing regulatory oversight in banking.

At the global level, India strengthened digital ties with Sweden while international reports highlighted mental health challenges among youth. For aspirants preparing via the Daily Current Affairs section, integrating these developments with static constitutional provisions, financial regulations, and innovation frameworks is essential for exam readiness.

Background and Evolution

Digital Governance & CBDC

The idea of Central Bank Digital Currency (CBDC) emerged globally as central banks explored sovereign digital alternatives to cryptocurrencies. In India, the Reserve Bank of India (RBI) initiated CBDC pilot projects in 2022 for both wholesale and retail segments. The current Retail CBDC (Digital Rupee – e₹) pilot under PMGKAY in Puducherry represents the next phase in integrating CBDC into welfare delivery systems.

This aligns with India’s digital ecosystem built upon:

• Jan Dhan–Aadhaar–Mobile (JAM) Trinity
• Direct Benefit Transfer (DBT) framework
• One Nation One Ration Card (ONORC)
• Public Financial Management System (PFMS)

Together, these mechanisms form the backbone of India’s digital subsidy and financial inclusion model.

Innovation & Federal Support Mechanisms

The launch of India’s first State Innovation Mission (SIM) in Tripura under Atal Innovation Mission (AIM) 2.0, led by NITI Aayog (National Institution for Transforming India), marks a shift toward decentralized innovation ecosystems. Earlier, AIM focused on Atal Tinkering Labs and incubators; SIM institutionalizes innovation at the state governance level.

Similarly, the Rail Tech Policy under Indian Railways’ “52 Reforms in 52 Weeks” initiative represents sectoral innovation integration into public infrastructure.

Key Developments (Current Event Explained)

1. CBDC-Based Digital Food Currency Pilot

The Government of India (GoI) launched a CBDC-based Digital Food Currency pilot in Puducherry. It uses programmable Retail CBDC tokens credited directly to beneficiaries’ wallets for subsidy redemption at Fair Price Shops (FPS).

Key features include:

• Real-Time Tracking (RTT)
• Integration with RBI, PFMS and Canara Bank
• Biometric authentication via e-POS
• Portability under ONORC

This reform enhances transparency and reduces leakage in the Public Distribution System (PDS).

2. RBI Approval to SBI Mutual Fund

The Reserve Bank of India (RBI) approved SBI Mutual Fund (MF) to acquire up to 9.99% stake in RBL Bank and Bandhan Bank, subject to compliance with:

• Banking Regulation Act, 1949
• Foreign Exchange Management Act (FEMA), 1999
• RBI’s 2025 Directions
• SEBI regulations

This reinforces prudential oversight in ownership patterns of private banks.

3. India–Sweden AI Partnership

India AI Mission under Ministry of Electronics and Information Technology (MeitY) signed a Statement of Intent (SoI) with Sweden to create the Sweden-India Technology and Artificial Intelligence Corridor (SITAC). This strengthens India’s AI diplomacy and technological collaboration.

4. Chhattisgarh Budget FY27

The state presented a ₹1.72 lakh crore budget with a fiscal deficit of 2.87% of GSDP, emphasizing social sector allocations (40%) and capital expenditure growth.

Constitutional / Legal / Institutional Angle

Several institutional mechanisms underpin these developments:

• Article 266 – Consolidated Fund (budgetary spending relevance).
• Article 280 – Finance Commission and fiscal federalism context.
• Banking Regulation Act, 1949 – Governs bank shareholding approvals.
• FEMA, 1999 – Foreign exchange compliance.
• RBI Act, 1934 – Monetary authority and CBDC issuance.
• NITI Aayog (2015) – Apex policy think tank driving AIM 2.0.

The CBDC pilot reflects RBI’s constitutional role as monetary authority, while state budgets demonstrate cooperative federalism.

Economic, Social & Geopolitical Impact

The CBDC-based DBT mechanism could significantly reduce subsidy leakages and transaction costs while enhancing fiscal transparency. It also strengthens India’s position as a global leader in Digital Public Infrastructure (DPI).

The India–Sweden AI corridor deepens technological cooperation, aligning with India’s ambition to become a global AI hub. The RBI’s equity oversight preserves financial stability amid evolving ownership structures.

The Global Mind Health Report highlights youth mental health concerns, linking economic stress, social media exposure and digital lifestyles to declining well-being—an emerging governance challenge.

Data & Facts Table

Government Initiatives / Related Schemes

• Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) – Food security initiative.
• Atal Innovation Mission (AIM) – Innovation ecosystem (2016).
• Jan Dhan Yojana (2014) – Financial inclusion.
• Digital India Programme (2015) – Governance digitization.
• National Health Mission (NHM) – Strengthening public healthcare.

For broader revision, aspirants should regularly revise Monthly Current Affairs and practice through Daily Current Affairs Free Quizzes.

Challenges & Way Forward (UPSC Mains Focus)

While CBDC improves transparency, digital literacy gaps and cybersecurity vulnerabilities remain concerns. State-level innovation missions must ensure equitable resource allocation and measurable outcomes. AI diplomacy requires ethical governance frameworks to prevent algorithmic bias.

India must strengthen mental health policy interventions, particularly targeting youth demographics, through awareness and institutional reforms.

Prelims-Oriented Key Facts

• CBDC pilot launched in Puducherry.
• RBI approved 9.99% stake acquisition by SBI MF.
• SIM launched under AIM 2.0 by NITI Aayog.
• Rare Disease Day observed on 28 February.
• Youth MHQ rank of India: 60th.

One-Liner Revision Notes

1. CBDC pilot linked with PMGKAY.
2. Retail CBDC symbol is e₹.
3. RBI approval cap set at 9.99%.
4. Chhattisgarh fiscal deficit at 2.87% GSDP.
5. India signed AI SoI with Sweden.
6. NSIC upgraded to Schedule A CPSE.
7. UIDAI partnered with Google for Aadhaar centres.
8. Rare Disease Day 2026 theme focuses on realities behind rare diseases.
9. Youth MHQ global average stands at 36.
10. WEF interim CEO appointed Alois Zwinggi.

Possible UPSC Mains Questions

1. Discuss the significance of CBDC in improving welfare delivery and fiscal transparency in India.
2. Examine the role of State Innovation Missions in promoting cooperative federalism and decentralized growth.
3. Evaluate the impact of AI diplomacy on India’s technological sovereignty.

For continuous exam readiness, aspirants should regularly follow Daily, Weekly, and Monthly Current Affairs and check Latest Government Jobs Notifications alongside Static GK for Competitive Exams to integrate dynamic updates with foundational knowledge.