Q: What is the UPSC significance of "Reserve Money for the fortnight ended February 15, 2026"?

This current affair on "Reserve Money for the fortnight ended February 15, 2026" is important for UPSC GS3 — economy. Understanding its background, causes, and implications is essential for both UPSC Prelims and Mains preparation.

Q: Which GS Paper does economy fall under for UPSC?

economy topics are covered under GS3 in the UPSC Prelims and Mains syllabus. Current affairs on economy are regularly tested in UPSC examinations and require understanding of both policy dimensions and current developments.

Q: How is this current affair relevant for UPSC Mains answer writing?

For UPSC Mains, "Reserve Money for the fortnight ended February 15, 2026" can be linked to GS3 questions on economy. Focus on the causes, government response, challenges, and way forward. Use data points and connect it with relevant schemes and constitutional provisions for a high-scoring Mains answer.

Reserve Money for the fortnight ended February 15, 2026 — UPSC Current Affairs | February 25, 2026

Must Review

RBI’s fortnightly rise in Reserve Money signals tightening liquidity ahead

Key Facts

Reserve Money (M0) = currency with public + banks’ cash balances.
Fortnight ending 15 Feb 2026: Reserve Money = ₹42.8 lakh crore, up ₹1.2 lakh crore (≈2.9%) from previous fortnight.
Data released by RBI on 20 Feb 2026 as part of its bi‑weekly monetary‑aggregate bulletin.
M0 growth outpaced credit‑growth rate of 1.8% in the same period.
Higher M0 usually puts upward pressure on inflation, prompting RBI to consider policy tightening.
RBI monitors M0 to adjust repo rate, open‑market operations and cash‑reserve‑ratio (CRR).
Since Jan 2026, reserve money has risen for 5 consecutive fortnights, indicating persistent liquidity excess.

Background & Context

Reserve Money is a primary monetary‑aggregate used by the RBI to gauge liquidity in the economy. Its trends feed into the broader macro‑economic framework of inflation targeting, credit expansion and monetary‑policy transmission, core topics of GS‑3.

Mains Answer Angle

In GS‑3, candidates can assess how the recent upward trend in reserve money influences inflation dynamics and credit growth, and evaluate the RBI’s policy options.

Full Article

The Reserve Bank has today released data on for the fortnight ended February 15, 2026. Ajit Prasad Deputy General Manager (Communications) Press Release: 2025-2026/2168

Read Original on rbi

Practice Questions

Prelims

Easy

Prelims MCQ

Monetary aggregates – Reserve Money (M0)

2 marks

5 keywords

GS3

Medium

Mains Short Answer

Monetary policy and liquidity management

10 marks

6 keywords

GS3

Hard

Mains Essay

Liquidity management and macro‑economic stability

250 marks

9 keywords

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