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2025-2026
2025-2026Contents
Page No.
INTRODUCTION vii
CHAPTER I
Department of Economic Aff airs
1. Economic Division 1
2. Budget Division 1
3. Financial Markets Division 5
4. Financial Stability and Cyber Security Division 24
5. Financial Sector Reforms and Legislation Division 30
6. Infrastructure Finance Secretariat 30
7. Investment Division 35
8. FB & ADB Division 39
9. International Economic Relations Division 42
10. Aid Accounts & Audit Division 49
11. Administration Division 50
12. Bilateral Cooperation Division 53
13. Integrated Finance Division 58
14. Coin & Currency Division 62
15. Other Multilateral Institutions Division 68
Annexures 70
Organisation Chart 76
iCHAPTER II
Department of Expenditure
1. Personnel Division 77
2. Public Finance-States Division 78
3. Public Finance Central Division 81
4. Procurement Policy Division 82
5. Offi cial Language 82
6. Integrated Finance Unit (IFU) 84
7. Controller General of Accounts 84
8. Chief Adviser Cost 89
9. Arun Jaitley National Institute of Financial Management (AJNIFM) 91
10. Chief Controller of Accounts (Finance) 92
11. Central Pension Accounting Offi ce 94
Annexures I to III 97
Organisation Chart 102
CHAPTER III
Department of Revenue
1. Organization and Functions 103
2. Central Board of Direct Taxes 104
3. Central Board of Indirect Taxes and Customs 118
4. Revenue Headquarters Administration 135
5. Integrated Financial Unit (IFU) 178
Annexure - I - Representation of SCs/STs/OBCs 180
Annexure - II - Representation of the PWD 191
Annexure - III - Summary of Audit Reports / Paras 198
Annexure - IV - Organization Chart 201
iiCHAPTER IV
Department of Investment and
Public Asset Management
I. Functions 203
II. Vision 203
III. Mission 203
IV. Organisational Structure 203
V. Current Policy on Disinvestment in CPSEs 203
VI. Value Creation in CPSEs 204
VII. Disinvestment Performance 205
VIII. Other Initiatives 208
IX. Capital Management & Dividend Receipts 208
X. Initiatives Undertaken for Persons with Disabilities,
Schedule Castes, Scheduled Tribes and Other Backward Classes 209
XI. Initiatives Relating to Gender Budgeting and Empowerment of Women 209
XII. Offi cial Language Policy 209
XIII. E-Governance 209
XIV. Redressal of Public Grievances 209
XV. Vigilance Machinery 210
XVI. Right to Information Act, 2005 210
XVII. Initiatives for Good Governance 210
XVIII. Audit Paras/Objections 210
XIX. Integrated Finance Unit 210
XX. Special Campaign 5.0 211
XXI. Monitoring of Court Cases 211
Appendix I 212
Appendix II- Organisation Chart 214
Annexure I & II 215
Annexure III 216
iiiCHAPTER V
Department of Financial Services
1. Organisations/Institutions/Regulators Under DFS 217
2. Organisational Chart 219
3. Work Allocation among Sections 220
4. Developments in Banking Sector 228
5. Digital Payments 243
6. Financial Inclusion 246
7. Agriculture Credit 259
8. Priority Sector Lending (PSL) 262
9. Insurance Sector 265
10. Pension Sector 269
11. Financial Institutions 278
12. Special Court and Offi ce of Custodian 285
13. Disposal of Public Grievances 286
14. Right to Information (RTI) Act, 2005 288
15. Vigilance 289
16. Debt Recovery Tribunals (DRTs)/
Debt Recovery Appellate Tribunals (DRATs) 289
17. Cyber Security and Fintech 290
18. Coordination 292
19. Representation from SCs, STs, OBCs and
PWDs in Financial Sector Institutions 294
20. Offi cial Language 294
21. Audit Paras 295
Annexures 296
ivCHAPTER VI
Department of Public Enterprises
1. Public Enterprises Survey 305
2. Organisation and Autonomy of CPSEs 305
3. Wage Policy and Manpower Rationalization 306
4. Categorisation of CPSEs 307
5. Monitoring and Evaluation 308
6. Corporate Social Responsibility (CSR) 309
7. Scheme for Research, Development, Consultancies and
Re-orientation for Central Public Sector Enterprises (RDCR) 309
8. Implementation of New Public Sector Enterprises(PSE) Policy 311
9. Voluntary Retirement Scheme (VRS) 311
10. Executive Development Programmes 312
11. Reservation for Scheduled Castes (SCs), Scheduled Tribes (STs),
Other Backward Classes (OBCs) and Others, in the CPSEs 312
12. Offi cial Language Policy 313
13. Procurement by CPSEs from MSEs and through GeM 314
14. Signifi cant Initiatives 314
15. Cyber Security Compliance Report 315
Annexure 1 - Organisation Chart 316
Annexures 2-8 317
vIntroduction
The Ministry comprises of six Departments emerging both within and across economies, which could
namely:— weigh on growth prospects over the medium to long term.
1. Department of Economic Affairs
As per the first advance estimates released by
2. Department of Expenditure the National Statistical Office, Ministry of Statistics &
Programme Implementation, the real GDP growth for
3. Department of Revenue
2025-26 in India is estimated at 7.4 per cent. The real
4. Department of Investment and
GVA growth is estimated to be 7.3 per cent. Nominal
Public Asset Management
GDP is estimated to grow at 8.0 per cent in FY 2025-26.
5. Department of Financial Services
Buoyant Growth in the Services Sector has been
6. Department of Public Enterprises
found to be a major driver for GVA growth, with around 7.5
1. Department of Economic Affairs per cent to 9.9 per cent growth in major sub-segments.
Manufacturing and Construction in the Secondary Sector
Economic Growth
is estimated to grow at 7.0 per cent. Agriculture & Allied
The global economy has faced multiple shocks
Sector (3.1 per cent) and Electricity, Gas, Water Supply
over the past year, the most significant being the United & Other Utility Services Sector (2.1 per cent) have seen
States’ imposition of tariffs on merchandise imports moderate growth. From the perspective of aggregate
demand, private final consumption expenditure (PFCE)
from its trading partners. While these measures initially
at constant prices is estimated to grow by 7.0 per cent,
heightened uncertainty and prompted downward revisions
driven by steady rural demand and improving urban
to global growth forecasts, economic activity has
demand. PFCE as a share of GDP (at current prices)
remained resilient in the near term. This is reflected in the
is estimated to increase from 61.4 per cent in 2024-25
IMF’s projections of global growth at 3.2 per cent in 2025
to 61.5 per cent in 2025-26. This share is the highest
and 3.1 per cent in 2026, broadly in line with estimates
since 2002-03. Gross fixed capital formation (GFCF) (at
made in January 2025. Inflation is also expected to constant prices) is estimated to grow by 7.8 per cent in
remain contained. Nevertheless, underlying fragilities are 2025-26.
Demand side drivers of growth and contribution to GDP
Real growth rates (%) % Share of Nominal GDP
Expenditure Components
FY25 FY26 FY25 FY26
(PE) (FAE) (PE) (FAE)
Private Final Consumption Expenditure 7.2 7.0 61.4 61.5
Government Final Consumption Expenditure 2.3 5.2 10.0 9.9
Gross Fixed Capital Formation 7.1 7.8 29.9 30.0
Exports 6.3 6.4 21.2 21.5
GDP 6.5 7.4
viiAnnual Report 2025-2026
Supply side drivers of growth and Contribution to GVA
Real Growth rates (%) % Share of Nominal GVA
Sectors
FY25 FY26 FY25 FY26
(PE) (FAE) (PE) (FAE)
Agriculture, Livestock, Forestry & Fishing 4.6 3.1 17.8 17.9
Industry 5.9 6.2 27.8 27.1
Mining & Quarrying 2.7 -0.7 1.9 1.8
Manufacturing 4.5 7.0 14.3 13.9
Electricity, Gas, Water Supply & Other Utility Services 5.9 2.1 2.8 2.7
Construction 9.4 7.0 8.8 8.8
Services 7.2 9.1 54.4 54.9
Trade, Hotels, Transport, Communication & Services
6.1 7.5 17.6 17.5
related to Broadcasting
Financial, Real Estate & Professional Services 7.2 9.9 22.8 22.9
Public Administration, Defence & Other Services 8.9 9.9 14.0 14.5
GVA at Basic Prices 6.4 7.3
Performance of the Agriculture sector the previous year’s wheat production of 1132.92 LMT.
Production of Maize and Shree Anna is estimated at
As per Final Estimates of production of Major
434.09 LMT and 185.92 LMT, respectively, compared
Agricultural Crops for the year 2024-25, the total
with 376.65 LMT and 175.72 LMT in the previous year.
Foodgrain production in the country during 2024-25 is
estimated at a record 3577.32 LMT, which is higher by The total oilseeds production in the country
254.34 LMT than the production of food grains of 3322.98 during 2024-25 is estimated at a record 429.89 LMT,
LMT achieved during 2023-24. Food grain production which is 33.20 LMT higher than the 396.69 LMT
witnessed a record increase due to good production of produced in 2023-24. Oilseeds production witnessed
Rice, Wheat, Maize and Shree Anna (Millets).
a record increase, driven by record production of
Groundnut and Soybean, estimated at 119.42 LMT
Total Rice production during 2024-25 is estimated
at a record 1501.84 LMT. It is higher by 123.59 LMT than and 152.68 LMT, higher by 17.62 LMT and 22.06 LMT,
the previous year’s Rice production of 1378.25 LMT. respectively, compared to 101.80 LMT and 130.62 LMT
The Wheat production during 2024-25 is estimated at during the previous year. The Rapeseed & Mustard
a record 1179.45 LMT, which is 46.53 LMT higher than production is estimated at 126.67 LMT.
Agricultural Production (Lakh Tonnes)
Crops 2020-21 2021-22 2022-23 2023-24 2024-25
Rice 1243.68 1294.71 1357.55 1378.25 1501.84
Wheat 1095.86 1077.42 1105.54 1132.92 1179.45
Nutri/Coarse Cereals 513.24 511.01 573.19 569.26 639.21
Total Pulses 254.63 273.02 260.58 242.46 256.83
Total Nine Oilseeds 359.46 379.63 413.55 396.69 429.89
Cotton # 352.48 311.18 336.60 325.22 297.24
Source: D/o A&FW
Note: Final Estimates (as on 20 November 2025)
#In Lakh bales, 1 Bale = 170 kgs.
viiiIntroduction
The Sugarcane production is estimated at poultry farms and consistent improvements in backyard
4546.11 Lakh Tonnes. The production of Cotton is poultry productivity. Wool production in India has shown
estimated at 297.24 lakh bales (each bale of 170 Kg.), a fluctuating yet structurally revealing trend over the last
and the production of Jute & Mesta is estimated at 88.02 decade, with total output of 34.57 million kg in 2024-25.
lakh bales (each bale of 180 Kg.)
Climate Change Finance Unit
The Indian livestock sector has rapidly become
The Climate Change Finance Unit (CCFU)
a dominant pillar of the Indian economy, demonstrating
is the nodal division in the Ministry of Finance for all
sustained, robust growth over the past decade. Gross
matters related to climate change finance. It represents
Value Added (GVA) of the livestock sector increased by
the Ministry in domestic and international forums on
nearly 195 per cent from 2014-15 to 2023-24, having a
climate finance issues and also represents the country
CAGR of 12.77 per cent at current prices.
in international negotiations on climate finance under
At current prices, total GVA from livestock the United Nations Framework Convention on Climate
rose to ₹15.06 lakh crore in 2023-24 from ₹5.10 lakh Change (UNFCCC). The Unit provides inputs on climate
crore in 2014-15. The milk group has remained the finance to BRICS and G20 working groups, including
dominant contributor over these years, with the value the Energy Transition Working Group (ETWG), the
of its output growing to ₹12.21 lakh crore in 2023-2024 Sustainable Finance Working Group (SFWG), and the
from ₹4.96 lakh crore in 2014-15, driven by rising milk Framework Working Group (FWG). It prepares briefs
output amid improved value chains. Among other major and position papeis outlining the Government of India’s
livestock products, meat and eggs witnessed persistently position on climate change finance and the use of
increasing GVA in the last decade, with the value of meat international financial instruments for climate action.
output increasing to ₹4.72 lakh crore in 2023-24 from
The CCFU evaluates submissions on climate
₹1.54 lakh crore in 2014-15 and the value of egg output
finance by national governments that are Parties to
reaching ₹0.66 lakh crore from ₹0.24 lakh crore during
the UNFCCC and participates in negotiations under
the same period.
the UNFCCC, COP, CMA, and in discussions on the
The livestock sector’s share of total Agricultural & financial mechanism under the Global Plastics Treaty.
Allied GVA also showed an upward trend over the last 10 The Unit undertakes policy advocacy and prepares
years, contributing 31 per cent to the sector’s total GVA internal briefs on key areas, including the Economic
in 2023-24, up from 24 per cent in 2014-15. This shift is Survey, NITI Aayog’s Transition Pathways, India’s
an important indication of the growing role of livestock in Carbon Market (CCTS), cooperative approaches under
agricultural income. Articles 6.2 and 6.4 of the Paris Agreement, financial
disclosures, and the Sovereign Green Bonds framework.
In terms of physical production, milk production
It also provides inputs in formulating India’s position for
reached 247.87 million tonnes in 2024–25, from 146.31
various national and international committees including
million tonnes in 2014–15, an increase of nearly 70 the National Designated Authority for Implementation of
per cent. This growth was mainly powered by cow milk the Paris Agreement (NDAIAPA), the Apex Committee
production, which nearly doubled to 132.69 million tonnes for Implementation of the Paris Agreement (AIPA), the
in 2024–25 from 66.42 million tonnes in 2014–15. Buffalo National Adaptation Plan, the Nationally Determined
milk production also grew steadily, reaching 106.95 million Contribution (NDC) 2035, the Inter-Ministerial Task Force
tonnes in 2024–25, a 43 per cent rise from 74.71 million on the Carbon Border Adjustment Mechanism (CBAM),
tonnes in 2014–15. the International Maritime Organization (IMO), and the
National Steering Committee for the Indian Carbon Market
Meat production in India has shown sustained
(NSC-ICM).
and notable growth over the past decade. The total
output rose to 10.50 million tonnes in 2024–25, up 57 The Unit is responsible for analytical work on
per cent from 6.69 million tonnes recorded in 2014–15. climate change, sustainable development, renewable
Poultry meat has emerged as a major contributor, now energy, carbon markets, and other emerging climate-
comprising almost half of the overall meat production. related issues. It drafts the Climate and Environment
Egg production in India almost doubled between 2014- chapter for the Economic Survey and examines proposals
15 and 2024-25, reaching 149.11 billion eggs-a 90 per submitted to the Green Climate Fund (GCF), the Global
cent increase driven largely by the growth of commercial Environment Facility (GEF), and multilateral development
ixAnnual Report 2025-2026
banks (MDBs) for climate-related projects. It also reviews for sustainable finance. The objective is to scale up the
domestic proposals related to climate change finance and mobilization of private capital towards environmentally
provides inputs on national policies such as the National sustainable investments.
Action Plan on Climate Change (NAPCC).
India UK Sustainable Finance Forum
New Initiatives At the 10th India-UK Economic and Financial
Resource mobilisation for climate actions, Dialogue in 2020, India and UK agreed to establish a
bilateral Sustainable Finance Forum to drive forward
being the overarching objective of the Unit, spearheads
deeper cooperation between the UK and India on
various initiatives of the Department of Economic
sustainable finance. Accordingly, the Forum was setup
Affairs. A draft of India’s Climate Finance taxonomy
with members from finance ministries/treasury and other
was prepared and circulated for stakeholder comments.
important stakeholders from both sides. Representatives
These are being examined. The Unit has been assigned from India include officers from MNRE, MOEFCC, M/o
the implementation of the Union Budget 2024-25, Para Power, RBI, SEBI and Co-Chair (from India) in the UK-
no. 104, regarding the development of the ‘Taxonomy India Sustainable Finance Working Group.
for Climate Finance’. The Unit is also the nodal for the
Climate Finance Leadership Initiative (CFLI) India
ADB-assisted study of DEA regarding the estimation of
financial resources required for climate actions in India. The Climate Finance Leadership Initiative (CFLI)
India partnership was launched at the 11th India-UK
The Unit has been using e-file platform for all the
Economic and Financial Dialogue held on 2nd September
required official works since 2018. The old physical files
2021. CFLI is a group of leading financial institutions led
of the Unit have been converted into electronic files and
by UN Special Envoy for Climate Ambition and Solutions,
the irrelevant old files have been weeded out.
Mr Michael Bloomberg. CFLI India aims to work with
Sustainable Finance Division
financial institutions, corporates, and existing sustainable
Global Environment Facility (GEF) finance initiatives to accelerate efforts to mobilise capital
into India for sustainable infrastructure projects in specific
India is a founder member of the Global
low-carbon sectors. N. Chandrasekaran, Chairman, Tata
Environment Facility (GEF). India is both a donor to and a
Sons and Shemara Wikramanayake, Managing Director
recipient of GEF funds. Under the Eighth Replenishment
of Resources (GEF-8), which runs from 2022 to 2026, and Chief Executive Officer, Macquarie Group are
India has pledged USD 18.75 million. Negotiations for co-chairs of CFLI India.
the Ninth Replenishment cycle (GEF-9) are currently
Significant developments/policy decisions
underway, which will determine the level of resources for
taken during the year for the development of a
the period 2026 to 2030.
particular sector, including initiatives for improving
International Platform on Sustainable Finance (IPSF) delivery of public services and for ensuring “inclusive
International Platform on Sustainable Finance growth”
(IPSF) was launched by the European Commission on
DEA-UNDP SFF project: DEA has recently
18th October 2019 at the IMF Headquarters, Washington
approved the Sustainable Finance Facility (SFF) which
DC. India is one of the founding members along with
was developed in consultation with UNDP to implement the
Argentina, Chile, China, Canada, Kenya, Morocco and the
recommendations of G20 Sustainable Finance Working
European Union. Since its launch Australia, Hong Kong
Group (SFWG) under India’s G20 Presidency. The SFF
SAR, Indonesia, Japan, Malaysia, New Zealand, Norway,
specifically focuses on implementing recommendations
Senegal, Singapore, Sri Lanka, Switzerland and UK have
on two priorities of SFWG viz. (a) Scaling up social impact
joined the IPSF. The work of IPSF is informed by twelve
observers which include IMF, World Bank Group, OECD, instruments and (b) G20 Sustainable Finance Technical
UNEP, UNDP, EBRD, EIB among others. IPSF offers Assistance Action Plan (TAAP) by providing technical
a multilateral forum for dialogue between policymakers assistance for designing of innovative social impact
that are in charge of developing sustainable finance instruments. The project aims to design a minimum of 8
regulatory measures for exchange and dissemination financing instruments over 4 years (2024-28) primarily
of information, promoting best practices, compare for States/UTs, thereby catalysing public and private
different initiative and identify barriers and opportunities investment.
xIntroduction
Performance of industries Among the three broad sectors, manufacturing
remained the primary driver of industrial growth
According to MoSPI, the overall IIP-based
during FY26 (April–November). In terms of use-based
industrial growth during FY26 (April–November) stood
classification, growth was mainly led by infrastructure/
at 3.3 per cent (provisional), compared to 4.1 per cent
construction goods, capital goods, and intermediate
recorded during FY25 (April–November).1
goods during FY26 (April–November).
Growth of index of industrial production (IIP) ( per cent) (Base 2011-12=100)
Industry group Weight 2024-25 2024-25 (April-Nov) 2025-26 (April-Nov)*
Mining 14.37 3.0 3.3 -0.9
Manufacturing 77.63 4.1 4.1 4.4
Electricity 7.99 5.2 5.3 -0.2
Primary Goods 34.05 3.9 4.0 0.3
Capital Goods 8.22 5.6 4.4 7.2
Intermediate Goods 17.22 4.3 4.3 5.3
Infrastructure/Construction Goods 12.34 6.7 6.1 9.0
Consumer Durable Goods 12.84 7.9 8.8 4.6
Consumer Non-Durable Goods 15.33 -1.5 –0.5 –1.0
General Index 4.0 4.1 3.3
*Provisional
Source: Ministry of Statistics and Programme Implementation (MoSPI).
The index for eight core industries comprising cent (provisional) in FY26 (April-Nov) compared to 4.4 per
coal, crude oil, natural gas, refinery products, fertilizers, cent in FY25 (April-Nov). The production of cement, steel,
steel, cement and electricity with a combined weight of fertilisers and coal recorded positive growth in November
nearly 40 per cent in the IIP, registered growth of 2.4 per 2025.
Growth in eight core industries ( per cent)
Industry group Weight 2024-25 2024-25 (April-Nov) 2025-26*(April-Nov)
Coal 10.33 5.1 6.4 -1.4
Crude oil 8.98 -2.2 -2.3 -1.3
Natural gas 6.88 -1.2 1.1 -3.0
Petroleum refinery products 28.04 2.8 2.8 0.2
Fertilizers 2.63 2.9 1.6 1.3
Steel 17.92 6.8 6.7 9.7
Cement 5.37 6.3 3.1 8.2
Electricity 19.85 5.2 5.3 -0.3
Overall growth rate 4.5 4.4 2.4
*Provisional
Source: O/o Economic Adviser, Department for Promotion of Industry and Internal Trade Press Release available at https://eaindustry.nic.in/eight_core_
infra/eight_infra.pdf.
Performance of the service sector communication and related services’ grew by 7.5 per cent.
The services sector is estimated to have grown by Services account for around 30 per cent of
9.1 per cent during 2025-26, according to the first advance the total employment. PLFS data for the first two
estimates. The two sub-sectors – ‘Financial, Real Estate quarters of FY26 show that the share of services in
& Professional Services’ and ‘Public Administration, urban employment rose to 61.9 per cent (on average),
Defence & Other Services’ grew by 9.9 per cent, while marginally higher than the FY21-FY22 average of
the heavily Covid-impacted ‘trade, hospitality, transport, 61.7 per cent, a period marked by relatively strong
1 MoSPI Press Release on Quick Estimate of IIP and Use-based Index for the month of November 2025 available at https://www.pib.
gov.in/PressReleasePage.aspx?PRID=2209434®=3&lang=1.
xiAnnual Report 2025-2026
services-sector hiring during the pandemic. Consistent Monetary developments
with this, EPFO data for April-July FY26 indicate sustained
During FY25 (April-December 2024), the RBI’s
formal job creation, with services accounting for 51.7 per
Monetary Policy Committee (MPC) cumulatively reduced
cent of net employment additions, led by expert services, the repo rate by 100 basis points during its meetings
trading and commercial establishments, and cleaning from April to December 2025. As of December 2025,
services. Together, these trends underscore the central the repo rate stands at 5.25 per cent. In consideration of
the prevailing and expected inflation-growth dynamics,
role of services in strengthening labour market resilience
the MPC’s stance was changed from ‘accommodative’
amid global uncertainty.
to ‘neutral’ in June 2025. This neutral stance has been
India’s services exports have been consistently consistently maintained since then. The RBI announced
rising. Services exports stood at USD 199.0 billion in a 100-bps reduction in the cash reserve ratio to 3.0 per
cent of net demand and time liabilities, implemented in a
the first half of 2025-26, recording a 9.3 per cent growth
staggered manner during September-November 2025.
over the corresponding period of 2024-25. Software and
This decision is expected to release approximately ₹2.5
business services together constituted around 78 per cent
lakh crore in primary liquidity into the banking system by
of India’s total services exports in H1 of 2025-26.
December 20252.
Trends in retail and wholesale price inflation
Liquidity conditions and its management
Retail inflation measured by Consumer Price
Examining the trend in various measures of
Index-Combined declined from 4.6 per cent in FY25 to money supply in the economy, viz., different aggregates
1.7 per cent in FY26 (April-Dec). While core inflation that reflect varying degrees of liquidity, it is seen that the
(non-food, non-fuel) picked up in FY26 (April-Dec), food monetary base, viz. the most liquid form of money, M ,
0
recorded a year-on-year (YoY) growth of 2.9 per cent
inflation decreased due to higher agricultural output,
as of December 31, 2025, compared to 4.9 per cent as
increased sowing, and lower prices of horticulture items.
of December 27, 2024. The growth in M , excluding the
Inflation measured in terms of the Wholesale Price Index 3
impact of the merger of a non-bank with a bank (with
(WPI) was 0.04 per cent in FY26 (April-Dec). WPI food
effect from 1 July 2023), was 12.1 per cent (YoY) as of
inflation averaged (-)0.79 per cent in FY26 (April-Dec) December 31, 2025, compared to 9 per cent a year ago.
Component-wise3, aggregate deposits were the most
Trend in retail and wholesale price inflation ( per cent)
significant component and contributed the most to the
Inflation based
expansion of M . Amongst sources4, bank credit to the
on Consumer Inflation based on Whole- 3
Year Price In- sale Price Index commercial sector was a major contributor to the increase
dex-General in M . As of December 31, 2025, the money multiplier
3
2019-20 4.8 1.7 (MM)5, i.e., the ratio of M to M , stood at 6.21 against 5.70
3 0
2020-21 6.2 1.3 a year ago. Adjusted for the reverse repo/standing deposit
2021-22 5.5 13 facility, which is analytically akin to banks’ deposits with
2022-23 6.7 9.4 the central bank, the adjusted MM was lower at 6.0 as of
2023-24 5.4 -0.7 December 31, 2025.
2024-25 4.6 2.3
Performance of the Banking sector
2025-26
1.7 0.04
(April-Dec) The GNPA (Gross non-performing assets) ratio
of Scheduled Commercial Banks (SCBs) has declined
Source: M/o SPI and D/o PIIT
2 RBI’s press release dated 6 June 2025, ‘Governor’s Statement’, https://tinyurl.com/ymx7rsdy.
3 Components of Broad Money=Currency with the Public + Aggregate Deposits (Demand Deposits with Banks + Time Deposits with
banks + ‘Other’ deposits with Reserve Bank).
4 Sources of Broad Money=Net Bank Credit to Government + Bank Credit to Commercial Sector + Net Foreign Exchange Assets of
Banking Sector + Government’s Currency Liabilities to the Public- Banking Sector’s Net Non-Monetary Liabilities).
5 The money multiplier measures the maximum amount of money that a banking system generates with each unit of central bank money.
xiiIntroduction
consistently from its peak in FY18 to a multidecadal credit disbursal amounted to 24.6 per cent YoY compared
low of 2.2 per cent at the end of September 2025. By to 10.2 per cent a year ago. Across sectors, beverage,
September 2025, the write-offs-to-GNPA ratio for SCBs tobacco, and engineering witnessed growth in credit
stood at 33.5 per cent. The half-yearly slippage ratio has
disbursal amounting to 22.6 per cent YoY. Other sectors,
remained stable at 0.7 per cent. Lower GNPAs and higher
such as petroleum, coal products and nuclear fuels, gems
provisions accumulated in recent years also contributed
and jewellery, and mining and quarrying, witnessed high
to a decline in net NPAs, which stands at 0.5 per cent at
growth in credit disbursal.
the end of September 2025. Improvements in asset quality
parameters were observed across all broad economic Credit growth in services and personal loans
sectors and all major bank groups.
segments remained in double digits, although with
The CRAR (capital-to-risk-weighted assets ratio) of some moderation to 11.7 per cent and 12.8 per cent,
SCBs has increased in the post-asset quality review period, respectively, in November 2025 compared to 12.8 per
which was conducted from August to November 2015. At cent and 13.4 per cent a year ago. The growth in credit
the end of September 2025, the CRAR of SCBs stood at to NBFCs increased to 9.5 per cent in November 2025
17.2 per cent, and the Common Equity Tier-1 (CET-1) from 7.5 per cent a year ago. In the personal loans
capital ratio stood at 14.8 per cent. The CRAR and CET-1
segment, vehicle loan growth increased to 12.4 per cent
capital ratios remained strong across all bank groups.
in November 2025 compared to 10.3 per cent a year ago.
The growth in profit of SCBs slowed in September The growth in credit to housing moderated to 9.9 per cent
2025, with profit after tax of SCBs increasing by 3.8 per in November 2025 from 12.2 per cent in November 2024.
cent (YoY) by September 2025. The return on equity for
Developments in capital markets
SCBs was 12.5 per cent in September 2025 compared
to 13.6 per cent in March 2025. The return on assets of Capital markets are central to India’s growth
SCBs was 1.3 per cent in September 2025 compared
story, catalysing capital formation for the real economy,
to 1.4 per cent in March 2025. The net interest margin
enhancing the financialisation of domestic savings, and
recorded a 20-basis-point decline in September 2025
enabling wealth creation. The imposition of US tariff
compared to March 2025, primarily due to a relatively
sanctions, weaker-than-expected corporate earnings in
higher decline in the yield on assets than in the cost of
Q1 FY26 and foreign capital outflows collectively weighed
funds. The provisioning coverage ratio of SCBs stands at
on market sentiment. However, a personal income tax
76.0 per cent compared to 76.3 per cent in March 2025.
cut, GST overhaul, easing of monetary policy, receding
Credit Growth
inflation and improved corporate performance in Q2 FY26
As of December 2025, the growth in outstanding supported the market during the period.
credit by SCBs increased to 14.5 per cent compared to
During April-December 2025, Nifty 50 and BSE
11.2 per cent in December 2024.
Sensex registered gains of approximately 11.1 per
As of November 28, 2025, bank credit to the cent and 10.1 per cent, marking a period of correction
agriculture sector grew YoY by 8.7 per cent, moderating and consolidation following the robust rally observed in
from 15.3 per cent a year ago. Industrial credit registered the preceding fiscal year. The primary market in FY26
a YoY growth of 9.6 per cent, compared to 8.3 per cent (up to December 2025) remained resilient and vibrant,
growth a year ago. The growth in credit disbursal to large- leading the world in initial public offer issuances. This
scale industries and medium industries has moderated. strong performance was due to sound macroeconomic
For large industries, the growth in credit disbursal fundamentals, robust investor participation and the
amounted to 4.6 per cent YoY from 6.4 per cent a year continued fine-tuning of regulatory frameworks by SEBI,
ago. At the same time, for medium industries, it amounted despite global headwinds. India’s primary markets
to 15.7 per cent, compared to 20.0 per cent a year ago. attracted both domestic and international investors,
In contrast, it has increased for micro and small-scale reinforcing the country’s position as a key driver of global
industries. For micro and small industries, the growth in capital formation.
xiiiAnnual Report 2025-2026
The total resource mobilisation from primary mark for unique investors in September 2025, with nearly a
markets, encompassing both debt and equity, stands at fourth of them being women. The mutual fund industry also
₹10.7 lakh crore during FY26 (till December 2025). Over
expanded, with 5.9 crore unique investors as at the end of
the past five years, from FY22 to FY26 (till December
December 2025, of which 3.5 crore (as on November 2025)
2025), India’s primary markets have been instrumental
were from non-tier-I and tier-II cities.
in channelising savings into productive investments,
mobilising a total of ₹53 lakh crore through equity and
Global trade trends
debt issuances. Of this, ₹14 lakh crore was raised through
equity issuances. According to the WTO, global merchandise
IPO volumes in FY26 (up to December 2025) were trade expanded faster than expected in the first
20 per cent higher than FY25, and the amount mobilised half of 2025. This positive trend can be attributed to
was 10 per cent higher than the corresponding period of several factors, including the strategic frontloading of
FY25. Listings on the main board rose from 69 to 94, with the
purchases in anticipation of impending tariff increases,
amount raised increasing from ₹1,46,534 crore to ₹1,60,273
an uptick in investment in AI-related products, and a
crore. The offer-for-sale component was a notable feature
of IPO activity in FY26 (up to December 2025), accounting supportive macroeconomic environment characterised by
for 58 per cent of total proceeds. disinflation, favourable fiscal policies, and robust growth
in emerging markets. The volume of merchandise trade
The activity in the SME segment also continued to
grew by 4.9 per cent (YoY) in the first half of calendar
exhibit a buoyant trend during FY26, reflecting sustained
year (CY) 2025 compared to the same period in CY 2024.
investor interest and growing confidence in emerging
The volume of world merchandise trade is forecasted
enterprises. The number of SME listings in FY 26 (up to
to grow at 2.4 per cent in CY 2025 and by 0.5 per cent
December 2025) increased to 217 from 190 in FY25 (up
in CY 2026. The services trade is not directly affected
to December 2024). The amount mobilised increased
by tariffs; however, the repercussions are certainly felt
from ₹7,453 crore to ₹9,635 crore. Since its inception,
indirectly due to their impact on merchandise trade and
more than 1,380 companies have been listed on the
overall economic performance. Consequently, the volume
SME platforms of BSE and NSE, cumulatively raising
of global commercial services trade is anticipated to
over ₹35,000 crore, highlighting the expanding footprint
decelerate to 6.8 per cent in CY 2025, down from 6.8 per
of India’s entrepreneurial base within the formal capital
cent in CY 2024. It is projected to experience growth of
market framework. Of these, around 350 companies have
4.4 per cent in CY 20266.
migrated to the mainboard platform.
India’s merchandise trade developments for
During FY26 (till December 2025), 235 lakh demat
FY24, FY25, and FY26 (April-November) are presented
accounts were added, pushing the total count beyond 21.6 in Table below. The country’s trade performance reflects
crore. A key milestone was the crossing of the 12-crore resilience amidst a dynamic global trade environment.
Trends in India’s Merchandise Trade
FY24 FY25 Change in FY25 FY25 FY26 FY26 (Apr-Nov) over
over FY24 (Apr-Nov) (Apr-Nov) (P) FY25 (Apr-Nov) P
Total Exports 437.1 437.7 0.1 284.6 291.8 2.5
Total Imports 678.2 721.2 6.3 487.9 515.1 5.6
POL Imports 178.7 185.8 3.9 127.8 121.0 -5.3
Non-POL Imports 499.5 535.4 7.2 360.1 394.1 9.4
Trade Balance -241.1 -283.5 17.6 -203.3 -223.3 9.8
Source: FTPA, Department of Commerce, Ministry of Commerce and Industry: https://tinyurl.com/yu3b3txy.
Note: P: Provisional
⁶ WTO’s Global Trade Outlook and Statistics, October 2025: https://tinyurl.com/bdz3mr7p.
xivIntroduction
The merchandise trade deficit increased from Developments in Balance of Payments during FY26
USD 241.1 billion in FY24 to USD 283.5 billion in FY25.
(April-September)
During FY26 (Apr-Nov), the trade deficit widened to USD
According to the Reserve Bank of India’s press
223.3 billion from USD 203.3 billion in the corresponding
period of the previous year. This was largely due to release, the developments in India’s Balance of Payments
merchandise exports growing at 2.5 per cent (YoY) and for FY25 (April-September) and FY26 (April-September)
merchandise imports growing at 5.6 per cent (YoY) in the
are presented in the Table below.
first eight months of FY26.
Major Items of India’s Balance of Payments (USD billion)
FY25 (Apr-Sep) PR FY26 (Apr-Sep) P
Credit Debit Net Credit Debit Net
A. Current Account 491.8 517.1 -25.3 523.1 538.1 -15.0
1. Goods 215.8 364.1 -148.3 222.1 378.4 -156.3
of which:
POL 36.6 93.1 -56.4 30.4 92.1 -61.7
2. Services 182.0 97.7 84.3 199.0 100.2 98.8
3. Primary Income 29.2 49.2 -20.0 28.9 53.8 -25.0
4. Secondary Income 64.8 6.0 58.8 73.1 5.6 67.5
B. Capital Account and
Financial Account 580.2 555.2 25.0 673.5 658.6 14.9
of which:
1. Direct Investment 45.1 41.7 3.4 53.2 45.4 7.7
2. Portfolio Investment 342.0 321.2 20.8 281.9 286.1 -4.1
3. Other Investments 180.4 146.7 33.7 315.8 301.6 14.2
of which:
NRI Deposits 52.3 42.2 10.2 47.1 41.0 6.1
ECBs to India 20.9 14.3 6.6 17.7 12.4 5.3
4. Reserve Assets [Increase (-)/ Decrease (+)] 0 23.8 -23.8 10.9 4.5 6.4
C. Errors & Omissions (-) (A+B) 0.3 0.0 0.3 0.1 0.0 0.1
Source: RBI, https://tinyurl.com/368hue97.
Note 1: PR stands for Partially Revised, and P for Provisional
Note 2: Total of sub-components may not tally with the aggregate due to rounding off.
India’s current account deficit declined to 6.4 billion in the foreign exchange reserves (on a BoP
USD 15.0 billion (0.8 per cent of GDP) in FY26 (April- basis), compared to an accretion of USD 23.8 billion in
September) from USD 25.3 billion (1.3 per cent of GDP) the corresponding period a year ago.
in FY25 (April-September). Net invisibles receipts at
India’s foreign exchange reserves experienced
USD 141.3 billion were higher in FY26 (April-September)
a moderate increase during FY26. The foreign exchange
than those of USD 123.0 billion a year ago, primarily
reserves stood at USD 686.8 billion as of January 2,
on account of net services receipts and net personal
transfers. 2026, compared to USD 668.3 billion at the end of March
2025. Further, between April 2025 and December 2025,
In the Capital Account and Financial Account,
the Indian rupee depreciated by approximately 5.7 per
net FDI inflows increased to USD 7.7 billion in FY26
cent against the US dollar. Furthermore, the INR also
(April-September) from USD 3.4 billion in FY25 (April-
depreciated against the Pound Sterling and the Euro by
September). FPI recorded net outflows of USD 4.1 billion
in FY26 (April-September), compared to net inflows 6.3 per cent and 9.1 per cent, respectively. The Indian
of USD 20.8 billion in the same period a year ago. In rupee appreciated against the Japanese Yen by 3.7 per
FY26 (April-September), there was a depletion of USD cent during the same period7.
7 Table:Exchange Rate of the Indian Rupee vis-à-vis he SDR, US Dollar, Pound Sterling (Monthly Average and End-Month Rates), DBIE, RBI, https://
tinyurl.com/53eebmb8.
xvAnnual Report 2025-2026
Labour market indicators
Monthly Employment Indicators for age 15 years and above
As reported in the 2023-24 annual Periodic Worker Population
Quarters LFPR UR
Ratio
Labour Force Survey (PLFS)8 report by the NSO, the
April 55.6 52.8 5.1
all-India annual unemployment rate (UR)9 for individuals
May 54.8 51.7 5.6
aged 15 years and above (usual status)10 has declined
June 54.2 51.2 5.6
from 5.8 per cent in 2018-19 to 3.2 per cent in 2023-24.
July 54.9 52.0 5.2
This recovery in UR has been accompanied by a higher August 55.0 52.2 5.1
labour force participation rate (LFPR)11 and the worker- September 55.3 52.4 5.2
October 55.4 52.5 5.2
population ratio (WPR)12. The LFPR increased from 50.2
November 55.8 53.2 4.7
per cent in 2018-19 to 60.1 per cent in 2023-24. At the
December 56.1 53.4 4.8
same time, the WPR rose from 47.3 per cent to 58.2
Source: Monthly PLFS reports.
per cent during the same period. Notably, the LFPR for
Employees’ Provident Fund Organisation (EPFO)
women has increased significantly from 24.5 per cent in
data indicates the formalisation of the economy. Net
2018-19 to 41.7 per cent in 2023-24.
additions to EPFO subscriptions have more than doubled,
The quarterly and monthly PLFS data13 show rising from 61 lakh in FY19 to 129.8 lakh in FY25. In
FY 26, cumulative net additions to EPFO reached 69.0
a steady labour market with seasonal variations. It
lakh from April to July 2025, marking a 54 per cent YoY
indicates that the period from April to September 2025
increase compared to the 44.7 lakh recorded during the
(H1 FY26) saw a declining unemployment rate with a
same period in FY25.
stabilising labour force participation rate (LFPR), and
overeign Credit Rating
substantial employment levels, signalling an improvement
India received three credit rating upgrades in
in employment conditions14. A total of 57.4 crore people
FY26 from S&P, Morningstar, DBRS, and R&I Information
(aged 15 years and above) were employed in Q3 FY26.
Inc., improving its rating from “BBB-” to “BBB.” These
Quarterly Employment Indicators for age 15 years and above
agencies based their common assessment on sustained
strong domestic growth, a credible fiscal consolidation
Quarters LFPR Worker Population UR
Ratio strategy supported by improved revenue buoyancy,
subsidy rationalisation, continued deficit reduction and a
Apr-Jun 2025 55.0 52.0 5.4
clear shift in public spending toward growth-enhancing
Jul-Sept 2025 55.1 52.2 5.2
capital investment. Rating agencies further highlighted
that external resilience provides additional comfort
Oct-Dec 2025 55.8 53.1 4.8
through manageable current account dynamics, low
Source: Quarterly PLFS reports.
external leverage and adequate foreign exchange buffers.
8 PLFS survey year corresponds to July – June. For example, data for 2023-24 refers to the period July 2023 to June 2024.
9 UR is defined as the percentage of persons unemployed among the persons in the labour force.
10 For a person to be categorised as employed as per usual status (ps+ss), the individual must have pursued an economic activity for at least 30 days during
the 365 days preceding the date of the survey.
11 LFPR is defined as the percentage of persons in labour force (i.e working or seeking or available for work) in the population.
12 WPR is defined as the percentage of employed persons in the popu https://tinyurl.com/ap6twwkw lation.
13 The Ministry of Statistics and Programme Implementation (MoSPI) published the first monthly bulletin of the revised PLFS in April 2025. The bulletin
presents key labour market indicators, for both rural and urban areas, based on the Current Weekly Status (CWS) of individuals. Along with the monthly
PLFS, MoSPI has revamped the quarterly survey to include all-India and rural estimates, as well as urban estimates. https://tinyurl.com/ap6twwkw
14 PLFS September 2025 bulletin: https://tinyurl.com/3s77aa9s
xviIntroduction
Finally, they note that India’s well-regulated financial to shocks, reinforcing overall macro-financial stability.
system, credible inflation-targeting regime, and flexible The latest sovereign ratings issued by these agencies
exchange rate also enhance the economy’s resilience are as follows:
Rating Agency Credit Outlook Last Assessed on Next assessment
Rating due date
Fitch BBB- Stable August 2025 March 2026
Moody’s Baa3 Stable September 2025 2026
S&P BBB Stable August 2025 2026
Morning Star DBRS BBB Stable May 2025 2026
Care Edge BBB+ Stable October 2025 2026
R&I Information Inc BBB Stable September 2025 2026
2. Department of Expenditure 3. Department of Revenue
The Department of Expenditure is the nodal The Department of Revenue exercises control in
Department for overseeing the public financial respect of revenue matters relating to Direct and Indirect
management system in the Central Government and Union taxes. The Department is also entrusted with the
matters connected with state finances. It is responsible administration and enforcement of regulatory measures
provided in the enactments concerning Goods and
for the implementation of the recommendations of the
Services Tax (GST), Central Sales tax, Stamp duties
Finance Commission and Central Pay Commission,
and other relevant fiscal statutes. Control over production
monitoring of audit comments/observations, preparation
and disposal of opium and its products is vested in this
of Central Government Accounts. It further assists Central
Department. Apart from this, Directorate of Enforcement,
Ministries/Departments in controlling the costs and prices
FIU-IND, GSTN, CBN, CCF, CEIB, NIPFP are under the
of public services, reviewing system and procedure to
administrative control of Department of Revenue.
optimize outputs and outcomes of public expenditure. The
principal activities of the Department include overseeing 4. Department of Investment and Public
Asset Management
the expenditure management in the Central Ministries/
Departments through the interface with the Financial
The Department of Disinvestment was set up
Advisors and the administration of the Financial Rules/
as a separate Department on 10th December, 1999 and
Regulations/Orders, pre-sanction appraisal of major was later renamed as Ministry of Disinvestment from 6th
schemes/projects, handling bulk of the central budgetary September, 2001. From 27th May 2004, the Department
resources transferred to State. of Disinvestment is one of the Departments under the
Ministry of Finance.
The business allocated to the Department
of Expenditure is carried out through its Personnel & The Department of Disinvestment was re-
Establishment Division, Public Finance-State and Public named as Department of Investment and Public Asset
Finance Central Divisions, Office of Chief Advisor Cost, Management (DIPAM) with effect from 14th April, 2016.
Office of Controller General of Accounts and Central
5. Department of Financial Services
Pension Accounting Office. The Department has under
As per Allocation of Business Rules (AOBR), the
its administrative control the Arun Jaitley National Institute
of Financial Management (AJNIFM), Faridabad, which is functions of the Department of Financial Services (DFS)
an autonomous body. include legislative and administrative matters pertaining
xviiAnnual Report 2025-2026
to financial services sectors of Banking, Insurance, and 6. Department of Public Enterprises
Pension reforms. These include the administration of
1. Introduction:
various acts related to financial services sector and
In their 52nd Report of the Estimates Committee
monitoring the performance of public sector banks,
of 3rd Lok Sabha (1962-67) highlighted the necessity
insurance companies and other development financial of establishing a centralized coordinating unit to
institutions like NABARD, SIDBI etc. continually assess the performance of public enterprises.
Consequently, the Indian government established the
All matters pertaining to three financial sector
Bureau of Public Enterprises (BPE) in 1965, placing it
regulators, viz., Reserve Bank of India (RBI), Insurance
under the Ministry of Finance. Following a reorganization
Regulatory and Development Authority of India (IRDAI)
of the Union Government’s Ministries and Departments
and Pension Fund Regulatory and Development Authority in September 1985, BPE became a part of the Ministry
(PFRDA) are processed through this Department. It also of Industry. Further reforms took place in May 1990,
functions as administrative department for Debt Recovery elevating BPE to a full-fledged Department known as
the Department of Public Enterprises (DPE). Department
Tribunals (DRT) / Debt Recovery Appellate Tribunals
of Public Enterprises was made part of the Ministry of
(DRAT).
Heavy Industries & Public Enterprises. DPE was brought
This Department is responsible for appointment
under the Ministry of Finance vide Cabinet Secretariat
of key functionaries of the financial services sector such Notification dated 6th July, 2021. The Department of
as Governor / Deputy Governor of Reserve Bank of India, Public Enterprises (DPE) remains under the Ministry of
Chairman / Members of IRDAI and PFRDA, Chairman / Finance continues to play a pivotal role in formulating
policies and the functioning and performance of public
Managing Director and Chief Executive Officers (MD &
sector enterprises in India.
CEOs)/Executive Directors (EDs)/ Non-official Directors to
the Board of Public Sector banks/ insurance companies/ 2. Functions:
other development financial institutions. The following subjects are being dealt by DPE:
2.1 Coordination of matters of general policy
The Department of Financial Services (DFS)
affecting all Public Sector Enterprises.
oversees several key programs / initiatives of the
2.2 Composition of Boards of CPSEs.
Government concerning the Banking Sector, the
2.3 Categorization of Central Public Sector
Insurance Sector and the Pension reforms Sector in India.
Enterprises including conferring ‘Ratna’
The key flagship schemes being currently managed by
status.
the Department include the Financial Inclusion scheme
2.4 Matters relating to Administrative
of Pradhan Mantri Jan Dhan Yojana (PMJDY), the social
Mechanism for Resolution of CPSEs
security schemes viz. Pradhan Mantri Jeevan Jyoti Bima
Disputes (AMRCD).
Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana
2.5 Wage policy & manpower rationalization
(PMSBY), Pradhan Mantri Vaya Vandana Yojana & of CPSEs.
Atal Pension Yojana (APY) and the credit schemes viz.
2.6 Evaluation and monitoring the performance
Pradhan Mantri Mudra Yojana (PMMY) & Stand Up India of Public Sector Enterprises, including the
(SUI). Memorandum of Understanding mechanism.
xviiiIntroduction
2.7 Review of capital projects and expenditure 3.2 General Management and Capacity Building
in Central Public Sector Enterprises.
General Management and Capacity Building
2.8 Survey of Public Enterprises.
Division deals with issues related to employment and
2.9 Counselling, Retraining and Rehabilitation
reservations in CPSEs; formulation or modification of the
of employees in Central Public Sector
Research, Development, Consultancy and Reorientation
Undertakings under Voluntary Retirement
(RDCR) Scheme and the conduct and coordination of
Scheme.
training under this scheme; maintenance of the databank
2.10 Rendering advice relating to revival,
of Non-Official Directors (Independent Directors) and
restructuring or closure of Public Sector
processing of proposals for the selection and appointment
Enterprises including the mechanisms
therefor. of Independent Directors on the Boards of Directors of
2.11 Matters relating to Standing Conference CPSEs; training and orientation of Boards of Directors;
of Public Enterprises. training of DPE employees, including matters related to
2.12 Matters relating to International Center the Capacity Building Commission and Karmayogi Bharat;
for Public Enterprises. engagement of interns; and engagement of programmers
2.13 Identification of CPSEs under non- under the RDCR Scheme for OTNS-related work.
strategic sector for closure/ privatization
As far as Wage Policy and Manpower
and driving the closure process.
Rationalization is concerned DPE functions as the nodal
2.14 Monetization of non-core assets of CPSEs
department for policy relating to pay revision of CPSE
and other Government organizations.
executives at Board as well as below Board level and
3. Organizational Structure: -
non-unionized supervisors. DPE also issues guidelines
Department of Public Enterprises is headed by for wage settlement negotiations for workmen in CPSEs.
Secretary to the Government of India who is assisted by The Department renders advice to the Administrative
an establishment with an overall sanctioned strength of Ministries/Departments and CPSEs in matters relating
118 officers/personnel. The organizational structure of to revisions of pay scales of executives and also to the
DPE is at Annexure-1. The Department has the following wage policy negotiations of workmen.
constituent Divisions:
The CPSEs largely follow the Industrial Dearness
3.1 Policy & MoU Division Allowance (IDA) pattern of scales of pay. However, in
some CPSEs, the Central Dearness Allowance (CDA
Policy Division oversees matters related to the
pattern of scales of pay is also followed. DPE issues
Ratna Scheme of CPSEs, including delegation of powers,
quarterly DA orders in respect of IDA employees, while
classification, creation of board-level posts, creation of
the DA orders for CDA employees of CPSEs are issued
posts below board level and exemption from immediate
for a six-monthly period.
absorption.
Administrative Mechanism for Resolution of
MoU: responsible for formulating guidelines
CPSEs Disputes deals with all Commercial Disputes
and implementing the Memorandum of Understanding
between CPSEs inter se and also between CPSEs and
(MoU) framework for CPSE’s performance evaluation
Government Departments/Organizations (excluding
for performance evaluation. The division compiles
disputes relating to Railways, Income Tax, Customs &
compliance status of Corporate Governance guidelines
Excise Departments), as per Revised AMRCD Guidelines
for the CPSEs. The division compiles data on capital
Dated 14.12.2022.
expenditure (CAPEX) incurred by select CPSEs.
xixAnnual Report 2025-2026
3.3 Survey Division 3.5 Administration, Establishment, Parliament &
Coordination Division
Survey Division collates information on important
The Division handles all administrative and
physical and financial attributes of all CPSEs into a
coordination matters of DPE relating to personnel
comprehensive annual report “Public Enterprises Survey”
management, maintenance of personnel records including
and places the same in both the Houses of Parliament
leave, salary, service book and Parliamentary matters.
every year.
Information Technology cell looks after the
The Survey Division also facilitates the laying
portals of the department and online platforms. IT
of the Reports of the Comptroller and Auditor General
Cell deals with all matters related to Maintenance
(C&AG) of India (Commercial) in the Parliament. It also
and Upgradation of Dashboard, Development and
follows up with the administrative Ministries / Departments Maintenance online platforms, Supervision of IT Cell and
for submission of Action Taken Notes (ATN) on Audit Social Media Management.
Paras as and when requested by C&AG. 4. National Land Monetization Corporation
Additionally, the Division compiles data on capital (NLMC)
expenditure (CAPEX) incurred by select CPSEs. NLMC has been incorporated to support other
Government entities and CPSEs in monetizing their
3.4 Disinvestment, Closure & Asset Monetization
non-core assets in an efficient and professional manner,
Disinvestment Division is responsible for the
maximizing their value realization. It deals with all matters
implementation of new PSE Policy in Non-Strategic Sector
related to Secretarial assistance for meetings of IMG/
for identification of CPSEs for closure or privatisation in AM, Coordination with CPSEs and Govt. agencies for
Non-Strategic Sector driving the closure process. monetization of assets.
xxChapter - I
Department of Economic Aff airs
1. Economic Division analytical notes and background papers on important
policy issues and provides briefs for meetings of the
1.1 The Economic Division provides expert advice
various committees and working groups set up by the
to the Government on key economic policy issues. The
Government, as well as for the visits of international
Division examines domestic and international economic
dignitaries. The Division works in close cooperation with
trends and undertakes research studies having a bearing
the RBI, NITI Aayog, MoSPI and various other Ministries.
on economic policies and management of the economy,
1.6 The work of the Economic Division is organized
and renders policy advice.
under the following 11 units as per the various segments
1.2 The work of the Division culminates each year in
of the economy:
the annual publication of the Economic Survey, which is
1. Agriculture and Food Management Unit
presented to Parliament as a curtain raiser to the Annual
Union Budget, providing a comprehensive overview of 2. Climate Change and Sustainable Finance Unit
the Indian economy’s annual performance. Additionally,
3. External Sector Unit
the division contributes key inputs to the Budget Division,
4. Industry & Infrastructure Unit
including the macro-economic framework statement,
macroeconomic overviews for the half-yearly review 5. Macro unit
statement, GDP projections, and more. The division also
6. Financial Sector Unit
coordinates the pre-budget consultations between the
Hon’ble Finance Minister and various stakeholders. 7. Prices Unit
1.3 The division also publishes the Monthly Economic 8. Public Finance Unit
Review (MER), which provides a review of recent
9. Services Unit
macroeconomic trends and the latest high-frequency data
on key sectors of the economy. It is also engaged in the 10. Social Sector Unit
publication of an Annual Status Report on India’s External
11. Co-ordination Unit
Debt, and Quarterly Report on India’s External Debt for
the two quarters ending September and December (the
remaining two quarters’ reports are published by RBI). 2. BUDGET DIVISION
1.4 The division coordinates the country’s participation 2.1 RESPONSIBILITIES
in the IMF’s Special Data Dissemination Standard
2.1.1 Budget Division is responsible for the preparation
(SDDS) and updates the National Summary Data Page
of and submission to the Parliament, the Annual Budget
on the Ministry of Finance website. The sovereign credit
as well as Supplementary Demands for Grants, Excess
rating exercise is coordinated by the Economic Division.
Demands for Grants of the Central Government, and of
Furthermore, the Climate Change Finance Unit within
States/UTs under President’s Rule, etc.
the Economic Division serves as the nodal point for all
climate change finance-related matters within the Finance 2.1.2 Budget Division is also responsible for
Ministry. administration of “Fiscal Responsibility and Budget
Management Act, 2003”. Statements of Fiscal Policy,
1.5 The division prepares, from time to time, briefs
Half-yearly Reviews including Mid-term Review and
on macroeconomic trends, price situation, performance
disclosure statements are presented in the Parliament
of agriculture and industrial production, trends in tax
in accordance with the requirements of the FRBM Act.
collection, balance of payments, trade and monetary
situation. In addition, the division undertakes short- 2.1.3 The Division also deals with issues relating to
term forecasting of key economic variables. As part of Public Debt, Market Loans of the Central Government
its advisory functions, the Economic Division prepares and guarantees given by the Government of India
1Annual Report 2025-2026
and the administration of the Contingency Fund of National Savings Recurring Deposits
India. Processing of proposals from other Ministries/
National Savings Monthly Income Scheme
Departments for re-appropriation of savings in a Grant
where prior approval of the Ministry of Finance is Senior Citizens Savings Scheme
required is also handled by Budget Division. The Division
National Savings Certificate (VIII-Issue)
also handles the issues pertaining to National Savings
Institute (NSI), Small Savings Schemes and National
Public Provident Fund
Defence Fund. The work relating to Treasurer, Charitable
Endowment is also assigned to the Budget Division. Kisan Vikas Patra
2.1.4 Budget Division also coordinates the Pre-Budget Sukanya Samriddhi Account
Meetings for finalization of Revised Estimates for the
2.2.4.2 Small Savings Collections:
ongoing financial year and Budget Estimates for the
ensuing financial year.
The provisional estimates for gross deposits
2.2 MAJOR ACHIEVEMENTS DURING 2025-26 under various small savings schemes during FY 2025-
st 26 are ₹15,66,952.19 crore as against the deposit of ₹
2.2.1 Union Budget 2025-26 was delivered on 01 Feb,
15,10,694.20 crore during FY2024-25. An amount of
2025 in paperless form. During the Financial year 2025-
₹10,060.62 crore (provisional estimate) shall be invested,
26, the First Batch of Supplementary Demands for Grants
2025-26 was presented and passed in the Parliament in as share of net small savings collections and amount
December 2025. The Second Batch of Supplementary received on redemption of securities to Kerala, Madhya
Demands for Grants 2025-26 has been laid in Parliament Pradesh & Union Territory of Delhi during FY 2025-26,
in March 2026. as against the sum of ₹13,325.96 crore invested to these
States and Union Territories (with Legislature) during FY
2.2.2 Release of States’ share of Central Taxes
and Duties to State Governments as per approved 2024-25.
recommendations of the Finance Commission is
2.2.4.3 National Small Savings Fund:
also handled by Budget Division. In this respect,
total of ₹12,86,885.44 crore was devolved to all State
In order to account for all the monetary
Governments during the financial year 2024-25, as
transactions under small savings schemes of the Central
against ₹12,47,211.28 crore projected in BE 2024-25.
Government under one umbrella, the “National Small
Further, ₹12,66,369 crore has been devolved
Savings Fund” (NSSF) was set up in the Public Account
to all State Governments till 10th February, 2026 during
of India w.e.f. 1st April, 1999. The net accretions under
the Financial Year 2025-26 as against ₹13,92,971 crore
the small savings schemes were being invested in the
projected in RE 2025-26.
Special Securities of State Governments and Union
2.2.3 From 1st April, 2025 to 31st December, 2025,
Territories (with legislature). However, based on the
32 Reports of the Comptroller & Auditor General of India
recommendation of the Fourteenth Finance Commission,
(C&AG) were laid before the Parliament and 28 proposals
it has been decided to advance NSSF loans only to the
of entrustments / re-entrustmentof audit of various bodies
to the C&AG of India were dealt by this Division during willing States w.e.f. 01.04.2016. Accordingly, (Lately, MP
the said period. itself has opted out of NSSF loan during this year) only
two States, namely, Kerala and Madhya Pradesh and one
2.2.4 NATIONAL SAVINGS SECTION:
Union Territory with legislature namely, Delhi have opted
2.2.4.1 Small Savings Schemes:
for the NSSF loan as of now.
Following Small Savings Schemes are currently
2.2.4.4 Interest Rates on Small Savings Instruments
administered by Budget Division in Department of
Economic Affairs:
Interest rates on Small Savings Schemes are
Post Office Savings Account
decided / notified by Government every quarter of the
National Savings Time Deposits (1,2,3 & 5 years) Financial Year. The rate of interest on Small Savings
2Department of Economic Aff airs I
Schemes is decided in view of the recommendations Savings Schemes with the G-Sec rates of similar maturity.
of Shyamala Gopinath Committee. The committee has
The rate of interest on various small savings
recommended to align the rate of interest on Small schemes for the FY 2025-26 is given below:
Rate of Interest in FY 2025-26 (in %)
Instrument Quarter I Quarter II Quarter III Quarter IV
Savings Deposit 4.0 4.0 4.0 4.0
1 Year Time Deposit 6.9 6.9 6.9 6.9
2 Year Time Deposit 7.0 7.0 7.0 7.0
3 Year Time Deposit 7.1 7.1 7.1 7.1
5 Year Time Deposit 7.5 7.5 7.5 7.5
5 Year Recurring Deposit 6.7 6.7 6.7 6.7
5 Year SCSS 8.2 8.2 8.2 8.2
5 Year MIS 7.4 7.4 7.4 7.4
5 Year NSC 7.7 7.7 7.7 7.7
PPF 7.1 7.1 7.1 7.1
Sukanya Samriddhi Account 8.2 8.2 8.2 8.2
7.5 (will mature in 7.5 (will mature in 7.5 (will mature in 115 7.5 (will mature in
Kisan Vikas Patra
115 months) 115 months) months) 115 months)
2.2.5 Public Debt Management: PDMC also publishes quarterly report on Public Debt and
is also responsible for uploading the public debt related
2.2.5.1 Budget Division is responsible for implementation
data on National Summary Data Page following Special
of the Government Market borrowing (including T-Bills)
Data Dissemination Standard (SDDS) of International
programme in coordination / consultation with the Reserve
Monetary Fund (IMF).
Bank of India.
2.2.5.2 Public Debt Management Cell (PDMC), under 2.2.5.4 The Government of India, as part of its overall
Budget Division, plays an important role in public debt market borrowings, issued Sovereign Green Bonds
management through planning the borrowing of the (SGrBs) for an aggregate amount of ₹21,697 crore in
Government of India (GoI), formulating debt management the year 2024-25, for mobilising resources for green
strategy, cash monitoring and management, increased infrastructure. The proceeds are deployed in budget
interaction with market participants, etc. financed schemes / projects which help in reducing the
carbon intensity of the economy. During the FY 2025-
2.2.5.3 Towards ensuring the enhanced transparency
26, ₹15,000 crore has been raised through issuance of
in public debt management operations, a Status Paper
SGrBs.
on Government Debt for the year 2023- 24 was released
on August 29, 2025. This report covers various facets of 2.2.5.5 Budget Division administers the two Appropriations
public debt including overall debt position of the country, namely, Interest Payments and Repayment of Debt.
assessment on aspects of debt sustainability, debt Gross borrowing of the Central Government during FY
management strategy covering various risks, etc. The 2025-26 was budgeted at ₹14.61 lakh crore (RE).
3Annual Report 2025-2026
2.2.5.6 The Government Debt is held pre-dominantly d) Guarantees given by the Government
(approx. 95%) in Indian currency. Outstanding external
e) Liability on Annuity Projects
debt is financed by multilateral and bilateral agencies
at concessional rates. Internal debt consists largely C) Half yearly Statements on Review of the
of marketable and non-marketable securities. The trends in receipts and expenditure in relation
maturity profile of outstanding dated securities indicates to the budget at the end of-
a relatively low roll-over risk in the debt portfolio. Active
a) Second Half of the Financial Year 2024-25
debt management operations in the form of switches /
buyback also help to elongate the maturity profile and b) First Half of the Financial Year 2025-26
reduce the roll-over risk. Detailed analysis of existing
2.2.6.3 Fiscal indicators targets for RE 2024-25 and
debt and liabilities of the Government is brought out in
BE 2025-26 are as below:
the quarterly and annual Publications (available on https://
dea.gov.in/reports-public-debt-management). (as % of GDP)
2.2.6 Fiscal Responsibility and Budget Management:
2024-25 2025-26
Fiscal Indicators/ Year
(RE) (BE)
2.2.6.1 Administration of the Fiscal Responsibility
and Budget Management Act (FRBM), 2003 and the Fiscal Defi cit 4.8 4.4
Rules framed there under is the prime function of the
Central Government Debt* 57.1 56.1
FRBM Section. The FRBM Act, 2003 provide for the
responsibility of the Central Government to ensure inter-
Note:
generational equity in fiscal management and long- term
i. GDP for the FY 2024-25 is ₹324.11 Lakh crore
macro-economic stability by removing fiscal impediments
published by M/o Statistics & Programme Implementation
in the effective conduct of monetary policy and prudential
on 07.01.2025.
debt management consistent with fiscal sustainability
through limits on the Central Government borrowings,
ii. The GDP for BE 2025-26 has been projected
debt and deficits, greater transparency in fiscal operations
at ₹356.98 lakh crore assuming 10.1% growth over the
of the Central Government and conducting fiscal policy
estimated GDP of ₹324.11 Lakh crore for 2024-25 (First
in a medium-term framework and for matters connected
Advance Estimates).
therewith or incidental thereto.
iii. GDP is the Gross Domestic Product at current
2.2.6.2 During the period from April 1, 2025 to December
market price.
29, 2025 in compliance with the relevant provisions of the
FRBM Act and Rules framed thereunder the following *Central Govt. debt include external public debt valued
documents were prepared and laid before both Houses
at current exchange rates, total outstanding liabilities on
of Parliament:
Public Account including investment in Special Securities
A) Statements of fiscal policy presented with Budget of States under NSSF and EBR liabilities etc.
2025-26
2.2.7 Budget Press
a) Medium-Term Fiscal Policy cum Fiscal Policy
2.2.7.1 Budget Press is responsible for printing of all
Strategy Statement
Budget Documents relating to the Union Budget including
b) Macro-Economic Framework Statement Detailed Demands for Grants, Supplementary Demands
for Grants and Annual Report (English/Hindi) of the
B) Disclosure statements presented with Budget
Ministry of Finance.
2025-26
2.2.7.2 Apart from the above, the Budget Press inter
a) Tax Revenues raised but not realised
(Principal Taxes) alia printed the Income Tax Bill, 2025, First and Second
Batch of Supplementary Demands for Grants for the
b) Arrears of Non-Tax Revenue
year 2025-26, the Action Taken Report, Cabinet Notes
c) Asset Register (Hindi & English) and several Discussion Papers.
4Department of Economic Aff airs I
3. Financial Markets Division (IFSCA) and Securities Appellate Tribunal (SAT). The
Division also participates in financial regulatory dialogues
3.1 Introduction
with USA, UK, Japan and EU.
Financial Markets (FM) Division is primarily
responsible for policy issues related to the development of FM Division is also responsible for the
the securities markets and matters incidental thereto. The administration of SEBI Act 1992, Foreign Exchange
Division is also responsible for policy matters relating to Management Act (FEMA) 1999, International Financial
foreign exchange management. Since 2013, the Division Services Centres Authority Act, 2019, Securities
is entrusted with the development of commodity derivative Contracts Regulation (SCRA) Act 1956, Depositories Act,
markets. The Division looks after the administrative 1996 and Section 20 of the Indian Trust Act, 1882 and
matters of the Securities and Exchange Board of India related rules, regulations and notifications thereunder.
(SEBI), International Financial Services Centres Authority The organogram of FM Division is given below:
3.2 Sections of FM Division Mutual funds,
The various Sections and their work allocations Collective investment schemes,
are given below (each of the section handles the
Alternative investment funds,
parliament questions, grievances, RTIs, court cases
Domestic credit rating agencies,
miscellaneous references etc. belonging to their work
areas): Merchant Banks etc.
I. Primary Markets (PM) Section 2. Matters related to Corporate Governance and
Minimum Public Shareholding.
1. Policy formulation on issues relating to initial and
further issue of capital and related intermediaries 3. Matters related to Listing Rules and Minimum
engaged in the same such as: Public Shareholding norms
5Annual Report 2025-2026
4. Policy issues related to mergers, takeovers and 12. Matters related to Investor Education and
acquisitions Protection
5. Development of corporate bond market 13. Policy on Frozen Demat Accounts
6. Financial literacy 14. Ratification of UNIDROIT / Geneva Securities
Convention
7. Corporate governance of companies
15. Securities Contracts (Regulations) Act, 1956
8. Policy articulation on agenda items of SEBI’s
and related Rules and Regulations
Board meetings (primary responsibility)
16. Depositories Act, 1996 and related Rules and
9. SEBI Act, related rules and regulations
Regulations
10. Investment Guidelines for Non Government
III. Commodity Derivatives Markets Section
Provident Funds, Superannuation Funds and
Gratuity Funds 1. Policy matters related to development of
commodity derivatives market and other
11. Coordinating DEA-AJNIFM Research
derivative products on goods/commodities.
Programme and other Research Programme
2. Issues related to Notifying commodities for
II. Secondary Market Section
trading in stock exchanges: Resumption/
1. Policy issues of Secondary Market and suspension of futures trading in various notified
commodities/ Options Contract etc.
related Market Infrastructure Institutions
(MIIs), Intermediaries and Participants
3. Representing DEA in commodity derivatives
(Stock Exchanges, Clearing Corporations, market related matters in the inter-ministerial
Depositories their participants, Trading committees on Essential Commodities price
Members, and Investment Advisors etc.), their rise etc
ownership and governance issues etc.
4. Commodity derivatives trading related matters:
2. Social Stock Exchange/SME Exchange/New cases of manipulation /speculation etc
Segments/ platforms for trading in securities /
5. Handling Policy matters of commodities markets
crowd funding platforms
like delivery arrangements, matters related to
3. Taxes and Stamp Duties in Securities Market WDRA accredited by stock exchanges and
Ministry of Consumer Affairs.
4. Skilling in securities market /capacity building
initiatives 6. Evaluation of relevant items in SEBI board
Agenda.
5. Delisting of companies and associated policy
concerns 7. Policy Matters related to Electronic Gold
Receipt (EGR) and Gold Spot Exchange.
6. Creating a Single Demat Account for all
8. Commodity segment of exchanges of NSE,
financial assets
BSE and matters related to NCDEX and MCX.
7. Database relating to Securities Markets
9. Skilling, capacity building and awareness
8. Monitoring of Stock Market Movements initiatives related to commodity derivatives
market
9. Self-Regulatory Organizations
10. Monitoring the action taken by investigating
10. Cyber security related matters in context of
and enforcement agencies and regulatory
Securities Market
authorities in the payment crisis at NSEL,
11. Regulation of distributors /distribution of sending reports on NSEL matter to PMO, giving
financial products in context of Sumit Bose inputs to Vigilance Division on NSEL related
Committee recommendation Vigilance matters.
6Department of Economic Aff airs I
IV. External Markets (EM) Section 8. References concerning Local Currency
Settlement Mechanisms
1. Administration of Foreign Exchange Management
Act, 1999 9. Policy Issues concerning Currency Derivatives
markets in India (OTC and Exchange Traded)
2. Processing all references, cases and proposals
and Interest Rate Futures.
concerning Rules and Regulations framed under
the Foreign Exchange Management Act, 1999
10. Issues relating to Sukuk Bonds
3. Matters relating to establishment of Liaison office
11. Issues concerning Bilateral/Multilateral Currency
/ Branch office/ Project Office in India by foreign
Swap Agreements
entities
12. Organizing road-shows and investor meets with
4. Matters relating to opening Non-Resident
foreign investors in India and abroad
Ordinary (NRO) and Non-Resident Rupee (NRE)
Accounts by foreigners/ non residents 13. BRICS and G-20 matters relating to Financial
Markets
5. Matters relating to trade payments settlement
mechanism with Iran VI. International Financial Services Centres
Authority (IFSCA)
6. Matters relating to foreign travel of Chief Ministers/
Ministers/MLAs/Administrators/Officers of States 1. Administration of the IFSCA Act, 2019 and
and Union Territories
framing of Subordinate Legislation under the Act
7. Approval for purchase of immovable property in
2. Policy formulation on issues related to IFSCA
India by foreigners/ Non-Resident Indians
Act, 2019 and related rules and regulations
8. Facilitating Annual Commonwealth Parliamentary
3. Policy articulation on agenda items of IFSC
Association Conference related visits of Speakers
Authority meetings
and Members of Legislative Assemblies
4. Facilitating overall development of core and
V. External Commercial Borrowings (ECB)
niche segment in the financial ecosystem of IFSC
Section
through inter departmental coordination on areas
1. Policy issues related to External Commercial including –
Borrowings, Foreign Currency Bonds and Trade
5. Aircraft Leasing and Financing
Credits
2. Framework for issuance of Rupee denominated 6. Bullion Trading
Bonds in off-shore market [masala bonds].
7. Fin Tech
3. Policy Matters relating to Securities and
8. Insurance/Re-Insurance
Exchange Board of India (Foreign Portfolio
Investors) Regulations, 2014 9. Banking
4. Framework for Investment by Foreign Portfolio 10. Fund Management
Investors in Government Securities and corporate
11. Global-In-House Centres
bonds
12. Others
5. Matters relating to Depository Receipts Scheme
(ADR/GDR) 13. Preparation of Cabinet Notes for signing of
bilateral and multilateral MoUs by IFSCA for
6. Matters relating to Bharat Depository Receipts/
strengthening mutual co-operation with overseas
Indian Depository Receipts (BhDR/IDR)
financial regulators/authorities
7. Matters relating to International Settlement of
Indian Debt Securities (through Euroclear and 14. Facilitating international outreach by IFSCA and
Clear stream) GIFT City
7Annual Report 2025-2026
15. Enhancing inter regulatory coordination VIII. International Cooperation (IC) Section
between SEBI, RBI, IRDAI, PFRDA to enable
1. Indo-US Financial Regulatory Dialogue
comprehensive regulations and new financial
products/services in IFSC 2. India-UK Financial Market Dialogue
16. Budgetary assistance for IFSCA and transfer of 3. India-UK Financial Partnership
grants from central government for expenditure
4. Regulatory aspects of India-Japan Financial
on salaries, allowances and other establishment
expenses of the Authority Dialogue
17. Supervising projects and schemes sanctioned 5. Negotiations under Financial Services Track
to IFSCA including the IFSCA HQ Project, Sup- for Free Trade Agreements (FTAs) especially
Tech Project and Fintech Incentive Scheme pertaining to capital markets and International
Financial Services Centre.
18. Examination and furnishing of comments on all
Draft Cabinet Notes 6. Input facilitation for various bilateral
Macroeconomic Dialogues and international
19. Firming up of agenda items related to development
of IFSC under various economic and financial agreements
dialogues
7. Other international matters
VII. Regulatory Establishment (RE) Section
IX. Joint Parliamentary Committee (JPC) and
1. Carrying out Board level appointments of Investor Grievances (IG) Section
Securities and Exchange Board of India (SEBI),
appointment of Presiding Officer, Members 1. Matters related to Section 20 of Indian Trust Act
and Registrar of Securities Appellate Tribunal 1882
(SAT) and administration of related Rules and
2. Preparation of Progress Report on Action taken
Regulations
on recommendations of Joint Parliamentary
2. Constitution of the Financial Sector Regulatory
Committee (JPC) on Stock Market Scams and
Appointments Search Committee (FSRASC)
matters related thereto.
3. Establishment matters of SEBI like audit,
3. Matters related to Nizam Trust
appointment of CVO etc.
4. Handling of Investors’ Grievances (Electronic &
4. Establishments matter of SAT like residential
Physical) related to FM Division/ transferring of
accommodation, grant of budget to SAT and
other representations to respective authority
related matters, Grant of vehicle to the officers
in SAT etc.
5. Study/ Survey on reforms required in Investors’
5. Strengthening of SAT - Creation of additional Grievance Redressal Mechanisms in context of
benches / creation of posts / creation of additional Securities Markets
office space for SAT / Implementation of e-Court
6. Internal Charge of 5 states (Bihar, U.P.,
in SAT etc.
Uttarakhand, Himachal Pradesh & Jharkhand)
6. Administration of the Securities Appellate
Tribunal (Salaries, Allowances and Other Terms X. Coordination Section
and Conditions of Presiding Officer and Other 1. Internal Coordination within FM Division for
Members) Rules, 2003
providing periodical inputs /reports to various
Departments /Ministries, submission of material
7. Bilateral and multi-lateral MoUs between SEBI
and securities market regulators of foreign for annual reports, economic survey etc.
countries.
2. Meeting on Senior Management Group (SMG)
8. Remittances from SEBI to the Consolidated Fund taken by Secretary (EA) to evaluate pending VIP
of India
reference, PMO reference and Parliamentary
9. Foreign visits of the Chairman of SEBI; Hosting on Monday of every week. Management of
of meetings of foreign delegations – obtaining e-Samiksha and portals in respect of FM Division
the necessary clearances related complaints, VIP/PMO references, cabinet
8Department of Economic Aff airs I
notes, court cases, Senior Management Group activity in FY26(Apr-Nov) was marked by the growing
Meetings etc. prominence of the Offer for Sale (OFS) component, which
accounted for 59 per cent of the total funds raised through
3. Matter related to Parliamentary Standing
mainboard IPOs and 23 per cent in SME IPOs.
Committee on Finance – concerning their study
visits on the topics pertaining to Financial Market 1.3. When compared to previous fiscal, funds
Division mobilised through Qualified Institutions’ Placement(s)
(QIPs) witnessed a dip and stood at ₹52,406 crore during
4. Monthly summary in respect of activities, major
FY26(Apr-Nov), while preferential allotments increased
achievement and important policy decisions
marginally, with total amount mobilisation amounting to
taken in DEA are sent to Cabinet Secretariat
₹95,892 crore.
5. Work management /allocation issues within FM
1.4. In the corporate bond market, listed private
Division
placements overwhelmingly remained the preferred
6. Website management in respect of FM Division
route for resource mobilisation, while public issuances
matters
constituted only a small fraction of total issuances.
7. Engagement matter of Young Professional/ Overall, ₹6,09,183 crore raised during FY26(Apr-Nov).
Consultants and Internship Management within
1.5. The fund raised through Hybrid instruments,
FM Division
REITs and InvITs, during FY26(Apr-Nov) was ₹13,893
A. Primary Market crore.
1.1. India’s capital markets maintained strong
1.6. Several municipal corporations have started
momentum, supported by robust activity in primary
tapping into the promise of municipal bond and the
market. Following a record year in 2024-25, the capital
momentum is continuing in the current year as well. In
raised during FY26(Apr-Nov) has already exceeded
FY26 (till November 2025), 9 municipalities collectively
previous highs, underscoring the pivotal role of India’s
raised ₹1,000 crore through many tranches of municipal
capital markets in facilitating economic expansion.
bonds. This also includes green municipal bonds issued
1.2. During the period, a total of ₹1,63,390 crore was to finance sustainable transport, renewable energy, waste
raised through 354 public-equity and rights issues. IPO management projects etc.
Table 1: Capital Raised from the Primary Market through Public and Rights Issues
Total (Public + Category-wise (Equity) Issue-Type
Financial Rights)
Year Public# Rights Preferential Issue QIP
Amount Amount Amount Amount Amount
No. of No. of No. of No. of No. of
issues (INR crore) issues (INR crore) issues (INR crore) issues (INR crore) issues (INR crore)
2023-24 340 83,093 273 67,982 67 15,110 689 45,155 61 68,972
2024-25 464 2,10,190 322 1,90,478 142 19,712 988 84,084 91 1,35,597
2025-26
354 1,63,390 261 1,46,462 93 16,927 853 95,892 28 52,406
(Apr-Nov)
Notes:
i. Equity public issues also includes issues listed on SME platform.
ii. The data is based on the listing date
Source: Exchanges
9Annual Report 2025-2026
Table 2: Funds Mobilized through Issuance of Corporate Bonds in India
Amount Raised Total Amount Raised
No. of Amount Raised
Financial No. of Pvt. through Private through Public Issue
Public through Public Issue
Year Placement Placement and Pvt. Placement (INR
Issues (INR Crore)
(INR Crore) Crore)
2023-24 45 19,167 1,347 8,37,756 8,56,923
2024-25 43 8,149 1,659 9,86,735 5,38,416
2025-26
29 6,503 1,288 6,02,680 6,09,183
(Apr-Nov)
Notes:
i. Public debt issues on the basis of closing date of the issue
Source: Exchanges
Table 3: Resource Mobilisation through Municipal Bonds
Financial Year No. of municipal bond Issues Amount Raised (INR Crore)
2022-23 1 244
2023-24 3 500
2024-25 1 100
2025-26(Apr-Nov) 9 1,000
Table 4: Resource Mobilization through REITs and InvITs
REITs InvITs#@ Total
Financial Year Amount Amount Amount
(INR crore) (INR crore) (INR crore)
2023-24 5,905 33,119 39,024
2024-25 4,728 26,715 31,442
2025-26 (Apr-Nov) 5,800 8,093 13,893
Notes:
i. # InvITs includes both listed and unlisted InvITs
ii. @ includes funds raised through public issue, private placement, preferential issue, institutional placement, rights issue
Source: SEBI
1.7. In the current financial year so far, there were 92 highest inflows were observed in Income/ debt oriented
Substantial Acquisition of Shares and Takeovers involving schemes amounting to ₹3,29,777 crore (42 per cent of
₹22,100 crore compared to 71 such takeovers during total net inflows), followed by inflows of ₹2,27,876 crore
FY25 involving ₹15,457 crore. in growth/ equity oriented schemes, ₹1,31,261 crore in
hybrid schemes and ₹1,02,619 crore in solution oriented
2. MUTUAL FUNDS
and other schemes.
2.1 Mutual funds continued to play a pivotal role
2.2 As of November 2025, the assets under
in mobilising household and institutional savings into management (AUM) of mutual fund industry stood at INR
capital markets during FY26, mobilising ₹7,91,533 crore 80 lakh crore, representing a 22 per cent increase over
upto November 2025. During the period under review, March 31, 2025.
10Department of Economic Aff airs I
Table 5: Steady expansion in Mutual Fund AUM
Gross Resource Net Resource
No. of Folios Redemption AUM
Period Mobilization Mobilization
(Crore) (₹lakh crore)
FY 23 14.57 105.07 104.31 0.76 39.42
FY 24 17.79 114.48 110.94 3.55 53.4
FY 25 23.45 137.03 128.88 8.15 65.74
FY 26* 25.86 99.81 91.9 7.91 80.8
*upto November 30, 2025
Table 6: Scheme Category-wise Net Inflows/Outflows into/from Mutual Funds (₹crore)
Income/Debt Growth/Equity Solution
Hybrid Other
Period Oriented Oriented Oriented Total
Schemes Schemes
Schemes Schemes Schemes
2023-24 -34,588 1,81,362 1,44,954 2,284 60,689 3,54,701
2024-25 1,35,794 4,16,676 1,19,032 3,292 1,40,320 8,15,115
2025-26
3,29,777 2,27,876 1,31,261 2,060 1,00,559 7,91,533
(Apr-Nov)
3. PORTFOLIO MANAGERS Propelled by asset appreciation and an increased client
base, cumulative AUM of the portfolio management
3.1 The Portfolio Management Services (PMS)
services as at the end of November 2025 stood at ₹41
industry continued to expand steadily during FY26
lakh crore, up by 12 per cent over the previous year. The
(Apr-Nov), supported by growing number of High Net growth was driven primarily by discretionary portfolio
worth individuals (HNIs) seeking customized investment mandates, which accounted for nearly 84 per cent of total
strategies beyond traditional mutual fund offerings. assets.
Table 7: Growth in assets managed by PMS
AUM (in ₹ Crore)
Period
Discretionary Non-Discretionary Co-Investment Advisory** Total
Nov-25 34,43,597 3,15,240 6,000 3,43,273 41,08,110
Oct-25 34,19,490 3,15,020 5,533 3,44,255 40,84,298
Nov-24 30,65,854 2,97,892 3,649 2,97,385 36,64,780
Notes:
1. **Value of Assets for which Advisory Services are being given.
2. Of the above AUM, ₹29,04,662/ crore is contributed by funds from EPFO/PFs.
3. The above data is as per submissions made by 480 PMS
Source: SEBI
B. Secondary Market policies, macroeconomic conditions and sustained
domestic investor participation. For Indian equities,
4.1 The year 2025-26, so far, has been eventful
for the economies and markets across the globe, the financial year began on a softer footing, with the
including India. In the midst of continuous shift in trade announcement of the US reciprocal-tariff framework in
policies and exacerbated uncertainties, India’s equity early April triggering risk aversion across export-oriented
markets exhibited a phase of measured yet resilient and globally linked sectors. The Nifty 50 index fell by 3.2
performance, reflecting the interplay of supportive per cent on April 7, 2025, marking the second-largest drop
11Annual Report 2025-2026
since April 2024. Nevertheless, from FY26 Q2 onwards, 4.2 The Indian equity benchmarks, Nifty 50 and
softer inflation readings and domestic factors played a Sensex, registered 11.4 per cent and 10.7 per cent
more supportive role and contributed to improved risk increase during Apr-Nov 2025, in contrast to 8.1 per cent
and 8.4 per cent rise respectively during the same period
appetite through the subsequent months.
of the previous year.
Chart 1: Movement of Indian Benchmark Indices
4.3 However, compared to its global peers such as indices was closely linked to concentrated gains in
South Korea (KOSPI), Japan (Nikkei), U.S. (NASDAQ), semiconductors, capital equipment and AI-related hardware/
Taiwan (TAIEX) etc., India’s equity market performance software supply chains - areas that benefited from strong AI
was subdued. The outperformance of these global investment and robust end-market demand.
Table 8: Performance of World’s Major Equity Indices
FY 2023-24 FY 2024-25 FY 2025-26
Return in FY Return in FY 2025-26
Index (closing as on Closing as on (closing as on
2024-25 (upto Nov 25)
March 31, 2024) March 31, 2025) Nov 30, 2025)
Indian Markets
BSE Sensex 73,651 77,415 85,707 5.1% 10.7%
Nifty 50 22,327 23,519 26,203 5.3% 11.4%
Emerging Markets
JALSH Index, South Africa 74,536 88,637 1,10,959 18.9% 25.2%
TAIEX, Taiwan 20,294 20,696 27,626 2.0% 33.5%
Shanghai Composite, China 3,537 3,887 4,527 9.9% 16.4%
Ibovespa, Brazil 1,28,106 1,30,260 1,59,072 1.7% 22.1%
KOSPI, Korea 2,747 2,481 3,927 -9.7% 58.3%
Developed Markets
Hang Seng, Hong Kong 16,541 23,120 25,859 39.8% 11.8%
Nasdaq, USA 16,379 17,299 23,366 5.6% 35.1%
Dow Jones, USA 5,254 5,612 6,849 6.8% 22.0%
Straits Times, Singapore 3,224 3,972 4,524 23.2% 13.9%
DAX, Germany 18,492 22,163 23,837 19.9% 7.5%
FTSE 100, UK 7,953 8,583 9,721 7.9% 13.3%
Nikkei, Japan 40,369 35,618 50,254 -11.8% 41.1%
CAC, France 8,206 7,791 8,123 -5.1% 4.3%
Source: Bloomberg
12Department of Economic Aff airs I
4.4 The highest returns were delivered by South Korea’s Kospi, followed by Japan’s Nikkei and USA’s Nasdaq.
Chart 2: Return of Major World Indices
Source: Bloomberg
4.5 At the end of November 2025, the trailing twelve the US markets) making them look more expensive as
months P/E ratio of Nifty 50 at 24.3 remained moderately
seen by FPIs equity sell off of worth ₹27,101 crore in
elevated across major global equity indices. Indian
FY26 so far.
equities continued to trade at premium (trailing just behind
Chart 3: Comparison of P/E Ratios of Major Indices with the Long Term Average
Source: Bloomberg, NSE
13Annual Report 2025-2026
4.6 Individual investor’s share in the equity cash (Apr-Nov), a marginal decrease from the corresponding
segment turnover stood at 34.2 per cent in FY25 period last year.
Table 9: Share of Individual Investors in Equity Cash Segment Turnover at NSE
Year Share of Individual Investors (per cent)
2024-25 34.3
2024-25* 34.9
2025-26* 34.2
Notes:
i. Individual investors include individual domestic investors, NRIs, sole proprietorship firms and HUFs
ii. Above percentage share excludes turnover with auction trades.
iii. *Represents during April to November for the respective financial year
Source: NSE
4.7 The incremental addition of demat accounts have 21.28 crore at the end of November 2025, as compared
been continuously on an increasing trend during FY26. to 19.24 crore at the end of March 2025.
The number of demat accounts rose by 10.6 per cent to
Table 10: Trends of Demat Accounts (crore)
Total no of demat accounts added during
Period Total no of demat accounts
the period
2023-24 15.12 3.67
2024-25 19.24 4.12
2025-26* 21.28 2.03
*represents as on November 30, 2025
Source: NSDL, CDSL
Turnover segments. As of end November 2025, turnover across
most segments, except commodity derivatives, declined
4.8 The overall trading landscape in FY26 reflected
compared to FY25. The growth in commodity derivatives
a phase of transition, marked by moderation in equity
market was primarily driven by robust trading in bullion
market activity and renewed momentum in certain market
and increased market participation.
Table 11: Trends of Turnover (Monthly average in ₹lakh crore)
Variation form FY25 to FY26*
Segment FY25 FY26*
(per cent)
Equity Cash segment 25.1 22.6 -10
Equity Derivatives-Notional 8,826.3 8,446.4 -4
Equity Derivatives-Premium 14.8 14.1 -5
Currency Derivatives 1.4 0.7 -51
Commodity Derivatives 48.3 97.3 101
*represents till November end
Source: Exchanges
14Department of Economic Aff airs I
4.9 Commodity derivatives total turnover rose by 34 driven by increase in turnover in bullion segment.
per cent during FY26 (Apr-Nov) when compared to FY25,
Table 12: Commodity derivatives total turnover
FY 26* variation over
FY24 FY25 FY25* FY26*
FY 25* (per cent)
MCX 2,76,55,480 5,65,18,177 3,53,19,615 7,67,74,264 117
NCDEX 2,06,112 1,48,048 1,03,006 99,046 -4
NSE 2,01,699 13,05,456 6,69,396 9,68,739 45
BSE 36 281 281 0 -100
Total 2,80,63,327 5,79,71,961 3,60,92,297 7,78,42,049 116
*represents till November 2025
Source: Exchanges
Domestic Institutional Investors moving beyond their countervailing role
4.10 In the FY26(Apr-Nov), DIIs, comprising of Banks, net investment by DIIs was led by mutual funds (a record
DFIs, Insurance, Mutual Funds and NPS, have remained high net investments of around ₹4.5 lakh crore vs. ₹3.4
net buyers of equities, effectively offsetting FPI outflows. lakh crore in Apr-Nov 24), with a share of around 75 per
DIIs invested ₹6 lakh crore, a sharp increase from ₹3.6 cent in total net investments by DIIs.
lakh crore during the same period in FY25. The surge in
Chart 4: DIIs counterbalancing FPI outflows
Source: NSDL, BSE, NSE
Major Highlights: In a significant step towards promoting ease of
doing business for institutional investors and
4.11 Facilitating Ease of Doing Business/
market participants, common contract note
Investment
with a single volume weighted average price
To enhance participation of institutional investors has been made mandatory. The reform will
in the IPO process, Life Insurance Companies simplify the post-trade reporting process by
registered with IRDAI and Pension Funds consolidating trades executed across multiple
registered with PFRDA have been included in the exchanges into a single, harmonized document,
reserved category of anchor portion, alongside eliminating the need to process multiple contract
domestic Mutual Funds notes.
15Annual Report 2025-2026
To ensure ease of access and inclusiveness Investment Advisers and Research Analysts
of digital KYC to persons with disabilities, were allowed to use liquid mutual funds
intermediaries were mandated to extend their and overnight mutual funds, as an option to
services enabling digital accessibility to client the bank deposit, for compliance with deposit
including persons with disabilities. An FAQ on requirement.
Account opening by person with disabilities has
• Category I and Category II AIFs were permitted
been published in SEBI website for guidance of
to launch a separate co-investment scheme
intermediaries.
(CIV scheme) offering co-investment facility to
With the objective of improving ease of doing accredited investors.
business, enhancing risk reduction and providing
AIF Regulations were amended to facilitate
operational clarity to Angel Funds, a revised
introduction of a separate category of AIF
regulatory framework for Angel Funds has
schemes, exclusively for Accredited Investors
been prescribed.
only (AI-only schemes), with lesser investor
The guidelines for registration of FPIs, KYC protection compliance and operational flexibilities,
requirements and other relevant provisions to which were also extended to Large Value Funds
(LVFs) for accredited investors.
facilitate ease of regulatory compliances for FPIs
investing only in Government Securities were
To facilitate higher investor participation, the
simplified.
minimum investment threshold for Large Value
Schemes under AIFs was reduced from ₹70 crore
As a step towards ease of doing investment and
to ₹25 crore
convenience to NRIs for trading in exchange
traded derivatives contracts, the mandatory
For the purpose of simplification and ease of
requirement of NRIs to notify the names
doing business, the transfer of PMS business
of the Clearing Member/s and subsequent from one portfolio manager to another has
assignment of Custodial Participant (CP) been allowed.
Code to the NRIs by the Exchange, has been
done away with. Investment Advisers have been permitted to
charge Assets Under Advice (AUA) based fee
To boost investor confidence and improve the and provide second opinion to clients on assets
credibility of social enterprises listed on the Social under pre-existing distribution arrangement.
Stock Exchange (SSE), the SSE framework was
To enhance ease of doing business for stock
revised by expanding eligibility criteria for Not
brokers, the penalty framework for levying
for Profit Organization (NPO) registration and
penalties on stock brokers by stock exchanges
strengthening annual disclosures by NPOs.
has been rationalized and standardised.
Based on the ease of Doing Business
In view of the active role of mutual fund distributors
recommendations of the Working Group for
of expanding investor base and creating
review of compliance requirements for REITs and
awareness among masses, the incentive
InvITs, on, disclosure of financial information
structure was revamped by introducing
in offer document / placement memorandum
additional incentives to distributors for
and continuous disclosures and compliances
onboarding new individual investors from
by REITs and InvITs was revised.
B-30 cities and women investors.
With a view to facilitate ease of doing business
To facilitate enhanced participation by mutual
as well as to safeguard the interest of investors,
funds and Specialized Investment Funds (SIFs),
in case of Margin obligations to be given by way
w.e.f January 1, 2026, any investment made
of Pledge/Re-pledge in the Depository System, by mutual funds and SIFs in REITs shall be
it was decided to make the invocation and sale considered as investment in equity related
as a combined automated process. instruments. However, for the same purpose
InvITs shall continue to be classified as hybrid
To ensure ease of doing business and to have
instruments.
a comprehensive view of entity’s operations
across all MIIs along with optimum utilization of • SEBI (Debenture Trustees) Regulations,
resources, it was decided to have a joint annual 1993 were amended to bring clarity on the
inspection instead of separate inspections by ‘Permitted Activities’ activities for a DT. DTs
MIIs. are now permitted to provide financial services
16Department of Economic Aff airs I
that fall under the regulatory purview of other In order to facilitate ease of investing for
financial sector regulator (RBI, IRDAI, PFRDA, investors and to secure the rights of investors in
IFSCA etc.) as specified by the Board and also the securities which were purchased by them,
activities that are currently not regulated by any a special window has been opened for re-
financial sector regulator. Both activities shall lodgement of transfer requests of physical
be carried out in an arms-length basis through shares.
separate business units (SBU) segregated by a
In an effort to enhance investor protection
Chinese wall and shall be ring fenced from the
and curb financial fraud, SEBI has advised its
SEBI regulated activities.
regulated/ registered entities to only use the
‘1600’ phone number series exclusively
4.12 Investor Protection and Empowerment
for service and transactional voice calls
To address this growing issue of impersonation
to their existing customers. This will enhance
and enhance investor confidence, SEBI has
investor security and minimise the risk of fraud
mandated a new UPI address structure for by unscrupulous entities using regular 10 digit
all SEBI registered intermediaries who collect numbers.
funds from investors w.e.f October 01, 2025.
4.13 Strengthening the Bond Market and Expanding
This innovative mechanism is set to significantly
Access
improve the safety and accessibility of financial
transactions within the securities market by • New framework was introduced for
providing a verified and secure payment channel. Environment, Social and Governance
(ESG) Debt Securities (other than green debt
To further empower investors, SEBI has securities), setting out regulatory requirements for
developed a new functionality called “SEBI issuers of social, sustainability and sustainability-
Check” w.e.f October 01, 2025. This tool allows linked bonds (SLBs).
investors to verify the authenticity of SEBI
To increase the efficacy and utility, certain
registered intermediaries UPI IDs either by
provisions related to Electronic Book Provider
scanning a QR code or by entering the UPI ID
(EBP) framework for primary issuance of
manually and also confirm the bank details such
various securities on private placement
as bank account number and IFSC of a registered
basis were revised. This included reduction of
intermediary.
mandatory EBP threshold from ₹50 crore to ₹20
A joint media campaign titled “SEBI vs SCAM” crore, permitting private placement of securitised
was launched by SEBI in collaboration with MIIs debt instruments, REITs, SM REITs and InvITs,
enhanced disclosures etc.
in July 2025. This unified initiative aims to bolster
investor protection and combat financial fraud
As part of SEBI’s initiative to develop Bond
and scams within the securities market. The key
markets, outreach programmes on Municipal
areas of focus for the campaign include raising Bonds and Municipal Finance were organized
awareness about red flags, verification protocols, to provide a common platform for stakeholders
trusted redressal mechanism and good digital to discuss the concerns of the issuers of
practices. Municipal Debt Securities, the requirements of
investors, the extant regulatory framework and to
SEBI, in collaboration with Ministry of
recommend measures to increase awareness of
Panchayati Raj (MoPR), launched a nationwide
and improve traction in the market for Municipal
training initiative for block level Panchayat
Debt Securities.
representatives to promote financial literacy
and investor education at grassroots level, Following a review of the request for quote
empowering representatives with knowledge to (RFQ) platform, the operational process for Cash
educate rural communities across India. Flow Disclosure in Corporate Bond Database
was simplified. It was specified that cash flow
To protect the rights and dignity of persons dates regarding payment of interest/ dividend/
with disabilities and ensure their full and redemption for the non-convertible securities
effective participation in securities market, it has traded on RFQ platform for the purpose for yield
been mandated that all digital platforms of to price computation shall not be adjusted for day
regulated entities or shall be compliant with count convention and shall accordingly be based
the provisions of the RPwD Act, 2016 and on the due date of payment as per the cash flow
corresponding rules. schedule and not as per the date of payment.
17Annual Report 2025-2026
To facilitate ease of doing business and also 4.16 Measures taken to strengthen Equity
improve transparency, dissemination of data to Derivatives Markets
investors and credit rating agencies for issuance
• To curb expiry-day volatility and promote
of Securitised Debt Instruments (SDIs), the
uniformity, exchanges were directed to select
guidelines for issue and listing of SDIs was
either Tuesday or Thursday as the expiry day for
aligned with RBI guidelines on Securitisation
equity derivatives.
of Standard Assets.
Measures were introduced to improve trading
Credit rating agencies were advised to extend the
convenience and bolster risk monitoring in
EL-based rating scale for rating of municipal
the equity derivatives segment. Key revisions
bonds which are issued for financing infrastructure
include a new methodology for calculating
assets, in addition to the standardised rating
open interest (OI) as future equivalent open
scale.
interest (FutEq OI) at a portfolio level using
4.14 Strengthening Regulatory Framework delta adjustments and recalibrating the market
wide position limit (MWPL) for single stocks.
To facilitate SEBI registered stock brokers to
New eligibility criteria for derivatives on non-
undertake securities market related activities
benchmark indices have been defined, and
in Gujarat International Finance Tech-city -
individual entity-level position limits have been
International Financial Services Centre (GIFT-
recalibrated based on the new MWPL definition.
IFSC) under a Separate Business Unit (SBU), the
requirement of obtaining specific approval
In addition to the end of day monitoring
from SEBI has been done away with.
mechanism, stock exchanges were directed
Listed entities were mandated to follow the to monitor the position limits, for equity index
Industry Standards on “Minimum information” derivative contracts, on an intraday basis.
to be provided for review of the audit committee
The eligibility criteria for derivatives on
and shareholders for approval of a related party
existing non-benchmark indices has been
transaction.
introduced to ensure that such indices are
The requirements pertaining to minimum broad-based and well diversified. The circular
contribution from the sponsor(s) and sponsor mandates that each index must comprise
group(s) in the public issue of units for a minimum of 14 constituent stocks, with
conversion of a private listed InvIT into a limits placed on individual and top-three stock
public InvIT were streamlined. weightages to prevent concentration risk.
Registered Intermediaries were permitted to use C. Commodity Derivative Market
‘e-KYC Setu System’ of National Payments 5.1 SEBI conducts investor awareness programs
Corporation of India as an additional alternate
namely under the flagship of Securities Market Trainers
mechanism to perform Aadhaar based e-KYC
(SMARTs) Program and Regional Investor Seminar for
authentication.
Awareness (RISA) on commodity derivative market in
collaboration with commodity exchanges (i.e. MCX and
4.15 Fostering market development
NCDEX). During FY 2025–26 (up to November 2025),
In order to provide investors with independent
around 1,866 programs have been conducted, covering
verification of the risk and return metrics
over 98,000 participants. Further, it is expected to conduct
claims of IAs, RAs and algorithmic trading
approx. 3,350 awareness programs up to March 2026.
providers, a “Past Risk and Return
Verification Agency (PaRRVA)” for risk-return 5.2 Some measures undertaken by SEBI for
performance verification was introduced. The development of commodity derivatives market during the
operationalisation of the same is under process. period from Apr 2025 onwards are as follows:
• Electricity derivatives, starting with monthly a) SEBI had conducted a meeting with various
futures trading at NSE were launched on stakeholders and market participants for
July 18, 2025. SEBI and Central Electricity strengthening of Agricultural Commodity
Regulatory Commission (CERC) followed a Derivatives Market. Based on the same, the
robust, consultative and data-driven approach following two working groups were constituted:
to design the contract specifications and risk
management norms to ensure that electricity Working Group on Review of current regulatory
derivatives remain tools for hedging rather than norms applicable to agri commodity derivatives
undue speculation. segment.
18Department of Economic Aff airs I
Working Group on Review of the current and farmers in commodities derivatives market.
framework of settlement and delivery mechanism Currently, the benefit of premium subsidy has
in agri commodity derivatives segment. been made available on three commodities – viz.
Jeera, Dhaniya and Turmeric. For FY2025-26, an
b) SEBI has also constituted a Working Group on
outlay of approx. Rs.15 crore was earmarked for
Review of current regulatory norms applicable
this initiative.
to non-agri commodity derivatives segment.
The working group is expected to deliberate D. External Market and External Commercial
on various measures to strengthen non-agri Borrowing
commodity derivatives segment.
6.1 In FY26 (Apr-Dec) so far, FPIs have been net
sellers in the equity market, with a total outflow of ₹49712
c) Further, during the said period, the agricultural
crore till end of December, 2025. Conversely, they were
commodity derivatives segment also benefitted
net buyers in the debt segment with a net inflow of ₹9471
from following policy initiatives:
crore till end of December, 2025.
With a view to encourage the participation
by Farmers/Farmer Producer Organizations 6.2 Indian markets witnessed net FPI inflows into
(“FPOs”) in agricultural commodity derivatives debt segments, primarily driven by the inclusion of
markets, SEBI has reduced the regulatory fee Indian sovereign bonds in JP Morgan’s GBI-EM index,
on stock exchanges with respect to turnover in effective June 28, 2024. Effective September 2025,
agricultural commodity derivatives. The objective Indian sovereign bonds were included in the FTSE
was to reduce the cost burden on Farmers/FPOs Emerging Markets Government Bond Index (EMGBI),
from the amount saved by the stock exchanges regional FTSE Asian Government Bond Index (AGBI) and
due to reduction of regulatory fee. Accordingly, FTSE Asian-Pacific Government Bond Index (APGBI),
SEBI has also prescribed the framework and indices that derive their membership from them,
for utilisation of regulatory fee foregone for potentially attracting more foreign investment.
exchanges. The fund may, inter alia, be utilized
6.3 The Foreign Exchange Management (Non-debt
towards the cost of mark to market funding by
Instruments) Amendment Rules, 2025 vide Notification
the clearing corporations on the sell positions of
No. S.O. 3732(E) 11th June, 2025. This was done
the farmers/ FPOs who make early pay-in of the
to incorporate clarification issued vide Press Note 2
commodities in approved warehouses.
(2025 series) by DPIIT in the context of allowing Indian
NCDEX with NABARD has launched a joint initiative companies to issue bonus shares to existing PROI
in Apr 2024 for options premium subsidisation to shareholders, even in sectors where FDI is otherwise
help Farmer Producer Organisations (FPOs) prohibited.
Table 13: FPI Net Investments - Financial Year
₹ Crores
Financial Year
Equity Debt Debt - VRR Debt-FAR Hybrid Total
2014-15 1,11,333 1,66,127 0 0 0 2,77,461
2015-16 -14,172 -4,004 0 0 0 -18,176
2016-17 55,703 -7,292 0 0 0 48,411
2017-18 25,635 1,19,036 0 0 11 1,44,682
2018-19 -88 -42,357 0 0 3,515 -38,930
2019-20 6,153 -48,710 7,331 0 7,698 -27,528
2020-21 2,74,032 -50,443 33,265 0 10,247 2,67,101
2021-22 -1,40,010 1,628 12,642 0 3,498 -1,22,242
2022-23 -37632 -8937 5814 0 -181 -40936
2023-24 208212 121059 -2972 0 12767 339066
-127041 55734 6737 80691 4425 20018
2024-25
2025-26* -49712 8052 -3676 5095 1433 -37754
*Upto 31st December, 2025
Source: NSDL
19Annual Report 2025-2026
Table 14: Monthly FPI Net Investments
Monthly FPI Net Investments (₹ Crores)
Month (Calendar
Year 2025)
Equity Debt Debt-VRR Debt- FAR Hybrid Total
January -78027 -3424 -4197 8192 206 -77211
February -34574 -5508 1531 14494 -318 -24301
March -3973 9711 -966 29044 -15 32981
April 4223 -13314 -5649 -5421 -388 -20190
May 19860 19615 1899 -9359 -689 30950
June 14590 -6121 -6366 -10040 150 -7563
July -17741 -234 4296 7750 -463 -5538
August -34993 6766 -872 6768 151 -20505
September -23885 1085 1213 9956 223 -12539
October 14610 3507 -427 15144 2869 35598
November -3765 -3969 4485 4158 104 2836
December -22611 717 -2255 -13861 -532 -38568
Total -166286 8831 -7308 56825 1298 -104050
Source: NSDL
6.4 Assets under custody (custodial holdings of FPIs by 11 per cent as on November 30, 2025, as compared
reflecting the total market value of the holdings) increased to March 31, 2025.
Table 15: Assets under Custody for FPIs
Equity Debt Debt-VRR Debt-FAR Hybrid Total
Period
(in ₹ Lakh Crore)
FY24 64.2 3.5 1.5 0.0 0.4 69.5
FY25 66.8 1.8 1.6 2.8 0.5 73.7
FY26* 74.5 1.8 1.7 2.9 0.6 81.8
*till November 30, 2025
Source: NSDL
Table 18: External Commercial Borrowing (net inflows) in India
Financial Year 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Amount
29916 97412 5015 77204 215665 82543
(₹ crore)
*Upto October 2025
20Department of Economic Aff airs I
E. G IFT IFSC & International Financial Services has come up with 35+ Regulations to regulate Banking,
Centres Authority (IFSCA) Capital Markets, Insurance, Bullion, Fund Industry, Global
In-House Centers (GICs), Foreign University/ foreign
7.1 The Union Budget announcement (2015-
institutions etc. within GIFT IFSC. IFSCA being a unified
16) paved the way for operationalizing the maiden
Authority for IFSCs in India, has undertaken consolidation
International Financial Services Centre (IFSC) in
of domestic regulations to a large extent pertaining to
GIFT City Multi-Service SEZ, Gujarat. Government of
Insurance, Fund Industry, Capital Markets etc., which is
India implemented a major financial sector reform by
establishing and operationalizing India’s maiden IFSC in unique in the Indian regulatory architecture.
GIFT City, Gujarat.
7.7 GIFT IFSC has more than 1000 entities registered
7.2 The vision of the Government is to develop GIFT as on September 2025 across various business
IFSC as a leading internationally recognized financial segments. The financial services market is rapidly growing
centre with trusted business regulations, competitive tax with healthy participation of International and domestic
structure and ease of doing business. The IFSC has been financial institutions.
designated as a special international financial jurisdiction,
7.8 Major traction in GIFT IFSC has taken place in
which is treated as a non-resident zone under Foreign
the recent past. Notable achievements from the last one
Exchange Management Regulations, thereby facilitating
year are as follows:
transactions in freely convertible foreign currencies.
a) Listing of the First Foreign Corporate Bond
7.3 The Hon’ble Prime Minister of India during his July
Issue at GIFT IFSC –
2022 visit to GIFT IFSC articulated his vision for GIFT City
and stated that “the vision of India’s future is associated Sri Lanka’s DFCC Bank PLC’s LKR1 2.5 billion
with GIFT City, which is an important gateway to connect Green Bonds was listed on the NSE International
India with global opportunities”. He further stated that “if
Exchange (NSE IX) in GIFT IFSC on June 9,
one integrates with GIFT City, one will integrate with whole
2025. This marks the first listing by a foreign
world”.
corporate to be listed on a stock exchange in
7.4 To further promote ease of doing business and GIFT IFSC.
provide for dedicated regulatory intervention, Government
b) Launch of Foreign Currency Settlement
of India through an Act of Parliament in 2019 set up the
System (FCSS) and direct participation of
International Financial Services Centres Authority (IFSCA)
IBUs in international payment systems -
as a unified regulator for development and regulation of
financial markets in the IFSCs in India. From 1st October Hon’ble Union Finance Minister, Smt. Nirmala
2020, IFSCA assumed the powers of four domestic
Sitharaman on October 07, 2025, launched the
sectoral regulators namely Reserve Bank of India (RBI),
Foreign Currency Settlement System (FCSS) at
Securities and Exchange Board of India (SEBI), Insurance
GIFT IFSC. The FCSS enables local settlement
Regulatory and Development Authority of India (IRDAI)
of foreign-currency transactions between
& Pension Fund Regulatory and Development Authority
IFSC Banking Units (IBUs), eliminating the
(PFRDA), in so far as development and regulation
need to route settlements through overseas
of financial products, financial services and financial
correspondent banks. This marks a significant
institutions within the IFSCs is concerned.
milestone in India’s financial market infrastructure
7.5 The maiden IFSC since its inception has by making transactions faster, safer, and more
witnessed substantial growth across the entire spectrum
cost-effective, while laying the foundation for
of financial services including Banking, Capital Markets,
future innovation in cross-border payments.
Insurance, Fund Management, Aircraft Leasing, etc.
IFSCA has introduced internationally aligned regulatory
FCSS appoints local commercial bank as the
regime, which has enabled large number of international
settlement bank, with all other member banks
and domestic financial services firms to set up presence in
GIFT IFSC. With internationally aligned regulatory regime, of the system required to open accounts with
competitive tax structure and ease of doing business, it. Transactions between the member banks
GIFT IFSC is fast emerging as a preferred jurisdiction for are settled directly through these settlement
availing wide array of international financial services.
accounts. CCIL IFSC Limited (CCIL IFSC),
a subsidiary of Clearing Corporation of India
7.6 Over the last five years, IFSCA has endeavoured
to develop a regulatory architecture for IFSCs, which is Limited, has been authorized by IFSCA under
aligned to international best practices and has prioritised the Payment and Settlement Systems (PSS) Act,
ease of understanding for enhanced compliance. IFSCA 2007, to be the operator of the FCSS system.
1 Sri Lankan Rupee
21Annual Report 2025-2026
This system will be able to settle transactions on Central KYC Records Registry (CKYCRR),
on a real-time or near real-time basis, thereby a centralized database for KYC managed by
significantly reducing the settlement time CERSAI, a subsidiary of the Reserve Bank of
compared to the correspondent banking route. India. This enables IFSC Regulated Entities to
CCIL IFSC has assigned the Indian Financial register on CKYCRR portal and comply with
Technology & Allied Services (IFTAS), a wholly the obligations to upload/ update/ download the
owned subsidiary of RBI, the development of client/ customer KYC records on CKYCRR portal
the FCSS system software. Standard Chartered as mandated under Rule 9 (1A) of the Prevention
Bank, through its IBU, has been selected by CCIL of Money-laundering (Maintenance of Records)
IFSC Ltd. as the settlement bank, based on an Rules, 2005. This development significantly
open bidding process. reduces duplication, enhances due diligence
efficiency, and fortifies GIFT IFSC’s AML/CFT
IFSCA also allowed IBUs to directly participate
architecture to align with global standards.
in international payment systems without
prior regulatory approval. This policy enables d) Enabling Fund Management Ecosystem
seamless payments to and from global financial through co-investment and platform play
institutions, while establishing clear boundaries: frameworks
domestic IFSC transactions through international This Pioneering Co-Investment Framework for
systems require explicit PSS Act authorization. Alternative Assets (May 21, 2025) framework
The measure significantly reduces settlement enables Venture Capital Schemes and Restricted
frictions, positioning IBUs as agile gateways Schemes to co-invest alongside other market
between Indian and global financial ecosystems. participants while leveraging at the SPV level. By
streamlining Sections 12 and 13 of the IFSCA Act,
c) Enablement of Video-based Customer
the Authority has dismantled structural barriers,
Identification Process (VCIP) and securing
unleashing a new wave of institutional capital
of regulator status by IFSCA on the CKYCR
Registry into high-growth opportunities and cementing
GIFT IFSC’s role as Asia’s premier alternative
IFSCA has issued a circular dated October 31,
investment destination.
2025, titled “Modifications under the International
Financial Services Centres Authority (Anti Further, to position GIFT IFSC as a global hub
Money Laundering, Counter-Terrorist Financing for fund management activities, IFSCA has
and Know Your Customer) Guidelines, 2022”, introduced a framework for Third-Party Fund
inter alia, enabling Video-based Customer Management Services, also popularly known
Identification Process (V-CIP) for onboarding
as ‘platform play’. The framework is aimed at
of low-risk Non-Resident Indians from
enhancing operational flexibility and promoting
specified jurisdictions. The circular significantly
global connectivity within the fund management
strengthens and expands the V-CIP framework
ecosystem. To operationalise this framework,
by permitting secure, technology-driven and
IFSCA has issued a Circular dated Sep 8, 2025,
paperless onboarding and periodic KYC updation
prescribing the fee structure applicable to FMEs
through authorized officials of the regulated
that intend to offer third-party fund management
entity, its regulated financial group entities or
services in the IFSC.
KRAs. It broadens the range of permissible
identification mechanisms to include offline and e) Notable International MoUs
biometric Aadhaar authentication (including face
IFSCA has signed Memoranda of Understanding
authentication), CKYCR data, Digi Locker-based
(MoUs) with the Australian Securities and
OVDs supported by enhanced cybersecurity,
Investments Commission (ASIC), Australia, and
liveness, anti-fraud and anti–deep fake controls.
the Financial Supervisory Commission (FSC),
Overall, the framework facilitates onboarding of
Taiwan. These inter-regulatory MoUs provide
low-risk NRI customers under a pilot approach,
a structured framework for mutual cooperation,
while enhancing customer convenience and
information exchange, and collaboration in
ease of doing business without diluting regulatory
identified areas of shared interests, with the
safeguards.
objective of strengthening cross-border regulatory
Additionally, in a major compliance infrastructure engagement and enhancing the development of
upgrade, IFSCA has been included as a Regulator financial market.
22Department of Economic Aff airs I
Table 17: Business Development Numbers (GIFT IFSC)
As on September 2025
S. No. Parameter Till Sept. End 2024 Till March End 2025 Till Sept. End 2025
1 Number of IFSCA Registrations1 687 864 1034
Banking Sector
2 Total Number of Banks2 28 29 35
3 Foreign Banks 12 13 18
4 Indian Banks 16 16 17
5 Global Administrative Office (GAO) 2 2 2
6 Total Banking Asset Size $70.92 Bn $88.51 Bn $100.14 Bn
7 Cumulative Banking Transactions $975.80 Bn $1243 Bn $1508 Bn
8 Cumulative OTC Derivative Transactions including NDF3 $982.12 Bn $1194 Bn $1351 Bn
Capital Market Sector
8 Average Monthly turnover on IFSC Exchanges4 $95.81 Bn $91.70 Bn $94.49 Bn
9 Total Debt Listing on Exchanges $64.31 Bn $65.10 Bn $66.6 Bn
10 ESG labelled Debt Listing $13.93 Bn $15.43 Bn $14.3 Bn
Funds Industry
11 Fund Management Entities 128 162 194
12 Total Funds/ Schemes 168 229 310
13 Total Commitments Raised $12.13 Bn $15.74 Bn $26.30 Bn
Insurance Sector
14 Number of Insurance Firms & Brokers 37 45 52
15 Premium Written by IFSC Insurance Offices (IIOs) in IFSC $466.40 Mn $568.37 Mn $821.97 Mn
Premium transacted by IFSC Insurance Intermediary Offices
16 $1137.34 Mn $1363.21 Mn $1578.18 Mn
(IIIOs) in IFSC
Aircraft Leasing
17 Registered Aircraft Lessors 27 30 33
18 Total Aviation Assets Leased 159 242 303
Ship Leasing
19 Registered Ship Lessors 12 17 26
20 Total Ships Leased 12 18 28
Finance Company (Core & Non-Core including ITFS)
21 Finance Company (Core and Non-Core) 09 14 17
22 ITFS5 Platforms 4 4 4
Bullion Ecosystem
23 Qualified Suppliers 28 37 40
24 Qualified Jewellers 143 167 185
25 Quantity of Gold Traded on IIBX (during the relevant quarter) 25429.30 kg 31999 kg 72.60 kg
26 Quantity of Silver traded on IIBX (during the relevant quarter) 42270 kg 0 0
Foreign Universities
27 Number of Foreign Universities6 2 3 5
1 including in-principle and/or provisional registrations
2 Excluding New Development Bank (NDB)
3 NDF refers to Non-Deliverable Forwards
(cid:3430) Average of the last six months
5 International Trade Finance Services (ITFS)
6 Includes in-principle approvals
23Annual Report 2025-2026
F. Regulatory Establishment under Section 15K of the Securities and Exchange Board
of India Act, 1992, to exercise the jurisdiction, powers and
8.1 Securities and Exchange Board of India (SEBI),
authority conferred on the Tribunal by or under the SEBI
a statutory body established under the provisions of the
Act 1992, PFRDA Act 2013, Insurance Act 1938 and any
Securities and Exchange Board of India Act, 1992 (15
other law for the time being in force.
of 1992) functions under the administrative domain of
Regulatory Establishments Section, Financial Markets 8.4 The Securities Appellate Tribunal consists of a
Division, DEA. Presiding Officer, two Technical Members and a Judicial
Member. At present, filling up the vacant post of Judicial
8.2 Regulatory Establishments Section handles
Member in SAT is at advanced stage.
the board-level appointments i.e. the appointment of
Chairman and Members. During the period, Shri Sandip 8.5 SAT is also the designated Tribunal to hear
Pradhan, IRS (IT:1990), Director General of Income Tax appeal cases against the orders passed by International
(Investigation), Pune and Shri N. Venkatram, Country Financial Services Centres Authority (IFSCA) for matters
Chair, CDPQ India, CDPQ Global have been appointed related to securities, insurance, and pension under the
as Whole Time Member, SEBI and Part-Time Member, Acts mentioned above.
SEBI respectively.
8.6 As on 31.12.2025, 1319 appeals are pending
8.3 Securities Appellate Tribunal (SAT) is established before SAT and its duration wise breakup is as follows: -
Table 18: Appeals Pending Before SAT
Opening Disposed
Category Cases filed Total Cases Pending Cases
Balance Cases
SEBI 1055 573 1628 348 1280
IRDA 17 03 20 09 11
PFRDA 00 00 00 00 00
REVIEW 04 30 34 06 28
TOTAL 1076 606 1682 363 1319
G. Investor Grievances (IG) 4.1.2 The FSDC monitors macro-prudential supervision
of the economy and deliberates on contextual issues
9.1 The investors’ grievances related to share
covering financial stability, financial sector development,
market, stocks, mutual funds etc. are handled promptly
inter-regulatory coordination, financial literacy, financial
and effectively. During the period from 01.04.2025 to
inclusion, coordinating India’s international interfaces
30.11.2025, out of 1,527 grievances received on the
with financial sector bodies like the Financial Action Task
CPGRAMS Portal, 1,354 grievances have been disposed Force (FATF), Financial Stability Board (FSB) and other
of. Stan-dard Setting bodies (SSBs). The Financial Stability
Division (erstwhile Financial Stability & Cyber Security), in
4. Financial Stability Division
the Department of Economic Affairs provides secretarial
4.1 Financial Stability and Development Council assistance to the FSDC. The DivisionHead in charge
of Financial Stability Division, Department of Economic
4.1.1 The Financial Stability and Development Council Affairs, Ministry of Finance, is the Member Secretary of
(FSDC) was set up by the Government of India as the the FSDC.
apex level forum in December 2010 with a view to
4.1.3 In FY 2025-26, FSDC held its 29th meeting on
strengthening and institutionalising the mechanism for,
10th June 2025 at Mumbai. In the 29th meeting, the
inter-alia, maintaining financial stability, enhancing inter-
FSDC, inter alia, deliberated on issues related to macro
regulatory coordination and promoting financial sector
financial stability and India’s preparedness to deal with
development. The Chairperson of the FSDC is the Finance them. In light of the analysis of cybersecurity regulations,
Minister of India and its Members include Minister of State sectoral preparedness, and the recommendations
for Finance, the heads of the financial sector regulators of Financial Sector Assessment Programme (FSAP)
and Secretaries of the relevant Ministries/ Departments 2024-25, the FSDC considered strengthening the cyber
of the Government of India. resilience framework of the Indian financial sector through
24Department of Economic Aff airs I
a financial sector-specific cybersecurity strategy. The June, 26th August and 28th October 2025 respectively.
FSDC discussed issues relating to formulating a strategy Under the regular EWG meetings discussion inter-alia
for implementing the past decisions and the budget included agendas on Review of Action Taken Report
announcements, including establishing appropriate (ATR), discussion on Financial System Vulnerabilities
framework by regulators for evaluating and enhancing Monitoring Template, major developments since the last
responsiveness of regulations and subsidiary instructions; meeting, having a bearing on the risk outlook and any
to take necessary steps to reduce the unclaimed assets other discussion point with permission of the Chair.
in the financial sector (banks deposits, dividends, shares,
4.3 Financial Stability Board (FSB)
post office accounts, insurance and pension funds etc.)
and the expeditious and seamless refund of such assets 4.3.1 The FSB is an international body established in
to rightful owners; prescribing common KYC norms, April, 2009 under the aegis of G20 by bringing together
simplification and digitalization of the KYC process the national financial authorities, standard setting bodies
including digital onboarding for Non-Resident Indians and international financial institutions. The FSB is
(NRIs) including PIOs and OCIs, in the Indian securities responsible for undertaking vulnerabilities assessment,
market; analyzing trends in financing flows as part of policy development and coordination, implementation
strategy to increase the investment ratio taking measures monitoring, and acting as a compendium of standards
to improve the reach and scope of factoring services and for financial sector regulation and reforms in members’
effective use of account aggregator networks. jurisdictions.
4.1.4 The FSDC deliberated on the emerging trends from 4.3.2 India, as a member of the FSB, remains committed
domestic and global macro-financial situation and stressed to adoption of the priority and other areas of financial sector
upon the need to be vigilant. The Council recognized reforms and international standards in a phased manner,
the need for proactive efforts to mitigate potential risks calibrated to local conditions wherever necessary. The
to financial stability while adopting adequate safeguards Department of Economic Affairs (DEA) is the nodal point
for financial system’s resilience. The members decided for India to coordinate with the FSB and all India-specific
to strengthen the inter-regulatory coordination for wider information are regularly provided in consultation with the
development of the financial sector. financial sector regulators (namely, RBI, SEBI, IRDAI and
PFRDA) while responding to various FSB questionnaires,
4.2 FSDC Sub-Committee (FSDC-SC)
surveys and reports. India also participates in the peer
4.2.1 The FSDC is supported by a Sub-Committee reviews, meetings and conference calls of the FSB and
(FSDC-SC), chaired by the Governor, RBI. Excluding the presents its views and comments as a member.
Finance Minister (the Chair of the FSDC) and the Minister
4.3.3 The Plenary is the sole decision-making body of
of State for Finance, all members of the FSDC are also the
the FSB, the Steering Committee provides operational
members of the FSDC-SC. Additionally, all four Deputy
guidance between Plenary meetings to carry forward the
Governors (DGs) of RBI, and Secretary (FSDC), are also
directions of the FSB and prepare the Plenary meetings in
the members of the FSDC-SC. Executive Director of RBI,
order to allow the Plenary to efficiently fulfil its mandate.
who is in-charge-of Financial Stability, is the Member
There are four Standing Committees (SCs) with specific
Secretary, and the Financial Stability Unit (FSU) of RBI
but complementary responsibilities in attaining FSB’s
is the Secretariat for the FSDC-SC. The FSDC-SC has
objectives. These Standing Committees are (a) on
met 32 times so far.
Assessment of Vulnerabilities (SCAV)- for identifying and
4.2.2 In FY 2025-26, FSDC-SC held its 32nd meeting assessing risks in the financial system, (b) on Supervisory
on 4th September 2025. The Sub-Committee reviewed and Regulatory Cooperation (SRC) – for supervisory
major global and domestic macroeconomic and financial policy analysis for regulatory response to vulnerability,
developments, issues of inter-regulatory coordination (c) on Standards Implementation (SCSI) – for monitoring
relating to the Indian financial sector activities of various and implementing the agreed FSB policy initiatives and
technical groups under its purview. The minutes of the international standards and (d) on Budget and Resources
meeting had not been finalized as of the date the inputs (SCBR) – for oversight of the FSB’s resources and
were furnished. budget.
4.2.3 Early Warning Group (EWG) is one of the 4.3.4 The Regional Consultative Group on Asia (RCG
Working Groups under the FSDC-SC, which coordinates Asia) is one of the 6 regional groups established by FSB
the response of Government/Regulators in the time of a in 2011 to expand upon and formalise the FSB’s outreach
crisis. Regular meetings of EWG are chaired by various activities beyond the membership of the G20 and to
regulators (RBI, SEBI, IRDAI and PFRDA) with yearly reflect the global nature of the financial system through
rotation. For 2025-26, RBI is chairing the EWG meetings. interaction with the nonmembers. Secretary (DEA)
In 2025-26 (April-November), EWG held 3 meetings, represents India in the FSB Plenary and in the two out
numbering from 45th to 47th, which took place on 18th of the four FSB standing Committees, namely, the SCSI
25Annual Report 2025-2026
and SCBR. Secretary (DEA) also represents India in 4.3.8 Carrying forward from Indian Presidency,
the Regional Consultative Group on Asia (RCG Asia). FSB is also actively pursuing the G20’s Roadmap for
Chairperson, SEBI, and the Deputy Governor (DG), RBI enhancing cross-border payments under the current
are the other two members from India in FSB’s forums. presidency to achieve global targets for faster, cheaper,
The DG (RBI) represents as a Member from India in the more transparent and inclusive cross-border payments
other two Standing Committees of FSB, namely SCAV by 2027. In this respect FSB delivered its consolidated
and SRC. DG, RBI also represents India in the Steering progress report in October 2025 which highlights that
Committee that provides operational guidance between over the past year, several milestones have been achieved,
Plenary meetings to carry forward the directions of marking the end of the major policy development initiatives.
the FSB, promotes coordination across the Standing However, these efforts have not yet been translated into
Committees and coordinates and conducts reviews of the tangible improvements for end-users at the global level.
policy development work of the international standards The Key Performing Indicators (KPIs) for 2025 show only
setting bodies. a slight improvement at the global level since the KPIs
were first calculated in 2023. It is unlikely that satisfactory
4.3.5 During the year 2025-26, meetings of the FSB
improvements at the global level will be achieved in line
Plenary were held on 11th June, 22nd September, and
with the 2027 Roadmap timetable.
18-19 November, 2025. SCSI virtual meetings were held
on 4th June, 4th September and 25th -26th September, 4.3.9 Since the G20’s endorsement of the FSB’s global
2025. Besides, two in person meetings of the RCG regulatory framework for crypto assets in July 2023, the
Asia were held on 22nd-23rd May and 7th-8th October, FSB and IMF have worked closely to promote and support
2025 respectively. All these meetings were attended by its effective implementation. The latest Thematic Review
representatives of DEA at appropriate levels. on FSB Global Regulatory Framework for Crypto-asset
Activities by FSB highlights that significant gaps and
4.3.6 Under G20, South African Presidency continued
inconsistencies around developments in Crypto Markets
working on the financial sector issues priorities taken
and regulations thereby could pose risks to financial
forward from the earlier G20 Presidencies. Noteworthy stability and to the development of a resilient digital asset
progress has taken place under priorities like Crypto ecosystem. Uneven implementation creates opportunities
Assets, Cross Border Payments, etc. continuing from for regulatory arbitrage and complicates oversight of the
Indian Presidency, however much work needs to be done inherently global and evolving crypto-asset market.
on areas like NBFI and Cyber security and their impact on
financial stability. To support the work under South African 4.4 Financial Sector Assessment Programme
Presidency, continuous engagement was maintained (FSAP)
through various virtual meetings / conference calls of 4.4.1 The Financial Sector Assessment Program
Plenary, SCSI, RCG, etc. and inputs on surveys and (FSAP) is a quinquennial exercise jointly conducted by the
reports circulated by FSB were provided in consultation IMF and the World Bank that involves a comprehensive and
with the regulators from time to time. in-depth analysis of a country’s financial sector to assess
financial stability and financial sector development. For
4.3.7 In New Delhi Leader’s Declaration of G20, FSB’s
India, the third and the latest FSAP exercise concluded
recommendations to achieve greater convergence in
in 2025 after a full year of rigorous consultations with
cyber incident reporting, updates to the Cyber Lexicon
Ministries/Departments, Regulators, Private sector
and Concept Note for a Format for Incident Reporting
organisations, Standard setting bodies (SSBs), and
Exchange (FIRE) were welcomed. Subsequently,
other financial sector institutions. As per the practice, as
FSB under the South African Presidency, published
a concluding part of the FSAP, the IMF came out with its
its final version in April 2025. The report highlights that
Financial System Stability Assessment (FSSA) report on
FIRE provides a set of standardized information items
28th February, 2025 and the World Bank published its
and is designed in a way to maximize flexibility and
Financial Sector Assessment (FSA) report 30th October,
interoperability. For jurisdictions without a standardized
2025.
reporting framework, FIRE offers a strong foundation to
build upon. Recognizing the value in harmonizing incident 4.4.2 Both the reports highlighted that India’s financial
reporting across the financial sector, Indian Financial system has become increasingly resilient, diversified,
Sector Regulators are working to standardize incident and inclusive since the last FSAP assessment in 2017.
reporting (IR) and reduce the compliance burden on FSAP notes that overall, India’s financial development is
regulated entities. However, since operational incidents on par with peers. This is testified by India’s total financial
frequently intersect with fraud events, compliance sector assets which stand at nearly 187 percent of GDP,
breaches, and information-risk reporting—and because despite multiple stress episodes and the COVID-19
reporting frameworks have evolved unevenly across the pandemic. The FSAP results found that Banks and
sector—achieving full segregation and standardization NBFCs, in aggregate, possess adequate capital buffers
continues to be a major challenge. enabling them to support moderate credit growth even
26Department of Economic Aff airs I
under severe macro-financial stress scenarios. The and IRDAI have taken major steps towards building
authorities’ efforts in expanding the regulatory perimeter a robust regulatory and supervisory framework for
to cooperative banks, tightening key prudential norms, insurers. This has been backed by robust licensing and
reorganizing supervisory departments, and implementing certification processes, suitability requirements for key
scale-based regulation for NBFCs have been specifically people and beneficial owners, and strong intervention
acknowledged. Nevertheless, the reports note that realising and enforcement powers. The IRDAI has also established
India’s aspiration of becoming a USD 30 trillion economy several information-sharing mechanisms with other
by 2047 will require continued momentum in financial domestic and foreign supervisors.
sector reforms to catalyse private capital mobilisation. The
4.4.6 IMF also analyzed cyber security framework in
IMF has, therefore, recommended adoption of IFRS 9,
banking sector, Financial Market Infrastructure (FMI),
enforcement of Pillar 2 capital add-ons, and strengthened
Critical Information Systems, and other relevant players
credit risk management. It also advises continued
in securities market. It found that Indian authorities have
alignment of regulations for state-owned NBFCs with
advanced cybersecurity risk oversight, especially for
those for private NBFCs, ensuring compliance with liquidity
banks. However, IMF stated that extensive cybersecurity
rules, and introducing additional liquidity requirements
crisis simulations and stress tests for banks could be
based on business models.
expanded for cross-sectoral and market-wide events to
4.4.3 With regard to capital markets, the reports further strengthen cybersecurity resilience.
observe that the overall size of Indian capital markets
(equity, G-Secs, and corporate bonds) has risen from 4.4.7 Overall, the recommendations from the 2024
144 percent of GDP in 2017 to around 175 percent FSAP aim to support continued strengthening of the
of GDP in 2024. This growth has been supported by structure, efficiency, and stability of the financial system.
measures such as improved collateral management Many of the recommendations are consistent with the
systems, enhanced business continuity provisions for ongoing developmental agenda of the Government and
investors, introduction of sustainability-related investment financial sector regulators. India remains committed
frameworks, strengthened liquidity requirements for to adopting global best practices in a calibrated and
mutual funds, and establishment of the Corporate Debt context-appropriate manner, aligned with the country’s
Market Development Fund (CDMDF). The equity market developmental priorities and macro-economic conditions.
continues to dominate, followed by the G-Sec market Cyber Security Division
and a smaller corporate bond market (approximately 130
percent, 60 percent, and 16 percent of GDP respectively, 1. Computer Security Incident Response Team-
including multiple counting effects). To further deepen Finance Sector (CSIRT-Fin)
the market, the reports recommend focusing on credit
1.1 The Computer Security Incident Response Team-
enhancement structures, risk-sharing mechanisms, and
Finance Sector (CSIRT-Fin) has been set up on 15th
securitization platforms.
May 2020 as a unit of the Indian Computer Emergency
4.4.4 India’s world class Digital Public Infrastructure Response Team (CERT-In) within the Ministry of
known as India Stack, and government programs have Electronics and Information Technology (MeitY). CSIRT-
significantly improved access to a wider range of financial Fin is responsible for coordinating and supporting the
services for both men and women through seamless response to cybersecurity events or incidents within the
digital identity verification, fast payments, and data financial sector. CSIRT-Fin is the incident response force
exchange. The FSA report of WB notes that credit flow to which focuses on mitigation processes, providing on-site
the MSME sector has improved, aided by reforms such as awareness, expertise, and recovery oversight. CERT-
implementation of the Insolvency and Bankruptcy Code In provides the requisite leadership for the operations
(IBC), the RBI regulated factoring platform (TReDS), of CSIRT-Fin under its umbrella. The strategic direction
and the Priority Sector Lending (PSL) framework. is provided through a strategic advisory committee co-
However, MSME financing remains constrained due to chaired by Secretary (DEA) and Secretary (MeitY)
high collateral requirements, higher interest costs, and having representation from DEA, Department of Financial
complex application processes. Various assessments Services, National Security Council Secretariat, CERT-
place the credit gap in the range of 11 to 16 percent IN, National Critical Information Infrastructure Protection
of GDP. To address these gaps, the WB recommends Centre and financial sector regulators.
establishing a dedicated MSME Data Observatory
1.2 The snapshot of activities performed by CSIRT-Fin
and publishing granular MSME credit data, including
this year, is as follows: a. Handling of security incidents
demand-side indicators, to strengthen evidence-based
in collaboration with CERT-In which included security
policymaking.
incident s related to vulnerable services, botnets, open
4.4.5 Under Insurance sector, FSAP’s graded services and phishing incidents. Entities have also been
assessment found an overall sound level of observance on boarded to CERT-In’s Cyber Swachhta Kendra(CSK)
of Insurance Core Principles (ICPs). The government for providing automated feeds regarding malware
27Annual Report 2025-2026
infections, botnets and vulnerable services. b. Issuing of cooperation in the sphere of information security in the
vulnerability notes and virus alerts along with CERT-In. banking and finance sector.
c. Tailored threat intelligence alerts for proactive measures
2. Critical Information Infrastructure (CII)
were send to financial sector constituency and Entities
identification in Financial Sector
have been on boarded on CERT-In’s threat intel platform.
d. Capacity building focuses on enhancing the skills and 2.1 The CS Division of DEA collaborates regularly with
knowledge of the users regarding cybersecurity. This the National Critical Information Infrastructure Protection
includes regular training sessions, awareness programs, Centre (NCIIPC), and financial sector regulators and
and the development of specialized teams equipped to Government Departments to identify critical information
handle cyber threats. infrastructure (CII) in the financial sector, the incapacitation
or destruction of which shall have a debilitating impact on
1.3 CSIRT-Fin, CERT-In, National Institute of
national security, economy, public health or safety. The
Securities Markets (NISM), Information Security
CS Division also coordinates the declaration of systemic
Education and Awareness (ISEA) and C-DAC, Hyderabad
important CIIs as “protected systems”. In accordance with
are conducting a certification program on “Cyber Security
NCIIPC recommendations, the protected systems must
Foundation Course” through learning management
apply a higher level of security measures, hence, must
system platform for all interested/working in the financial
comply with Information Technology (Information Security
sector/ Securities Markets.
Practices and Procedures for Protected System) Rules
1.4 The Indian Computer Emergency Response Team 2018 to ensure that the CIIs are effectively secured.
(CERT-In), along with SISA and CSIRT-Fin, released the
2.2 During the year 2024-25, CIIs and its dependent
Digital Threat Report 2024 for the Banking, Financial
computer resources hosted by Bank of Maharashtra,
Services, and Insurance (BFSI) sector. This collaborative
IndusInd Bank, RBL Bank, Federal Bank, Indian Overseas
report analyzes current and emerging cyber threats,
Bank, Central Board of Direct Taxes (CBDT), UCO
providing insights to strengthen cybersecurity in India’s
Bank, City Union Bank, Karur Vysya Bank, Karnataka
financial sector, which is crucial for its growing digital
Bank, and IDFC First Bank have been declared as
economy.
“Protected Systems”. During the year 2025-26, CIIs and
1.5 CSIRT-FIN in collaboration with NABARD and its dependent computer resources hosted by South Indian
RBI, conducted focused cybersecurity awareness and Bank, Jammu & Kashmir Bank, Tamilnad Mercantile
sensitization programmes across the year for the various Bank, Punjab & Sind Bank, Bandhan Bank, and Public
co-operative and rural banks. These sessions addressed Financial Management System (PFMS). In addition,
the current cyber threat landscape and specific types the identification procedure has been expedited, and a
of cyber-incidents observed in these organizations. sizeable number of information technology (IT) systems
Participants were briefed on the recent attack trends, in the BFSI sector have been notified as CIIs. The
effective incident response mechanisms, and best process of CIIs identification in the financial sector and
practices for strengthening organizational cyber hygiene. further assessment for validation of “Protected Systems”
The initiative is aimed at fostering sustained resilience and after every two years is ongoing. Further, continuous
enhancing the overall security posture of these institutions. coordination with relevant agencies and the financial
a. Technical Cybersecurity Audits involve systematic sector regulators was done through virtual meetings
evaluations of an organization’s cybersecurity policies, and onsite visits to strengthen the cyber resilience of the
practices, and infrastructure to identify vulnerabilities financial sector.
and ensure compliance with regulatory standards.
Regular audits help uncover weaknesses before they 3. Financial Sector Cyber Security Strategy
can be exploited by malicious actors. b. Mock drills The Financial Stability and Development Council
were conducted by CERT-In and CSIRT-Fin to simulate (FSDC), in its 29th meeting held on 10 June 2025,
cyberattack scenarios to test the preparedness and emphasised the requirement for a dedicated Cyber
response capabilities of the organization. These drills Security Strategy for the Indian financial sector. The
are crucial for identifying gaps in the incident response objective is to address inter-regulatory gaps, strengthen
plan, training officers, and refining procedures to ensure a supervisory oversight, and harmonise regulatory
swift and effective reaction to real threats. c. International standards in alignment with the forthcoming National
collaboration in cybersecurity is vital due to the borderless Cyber Security Strategy and relevant international
nature of cyber threats, which can originate from any part benchmarks.
of the world and impact multiple countries simultaneously.
Coordinated efforts across nations enhance the ability to Accordingly, the Inter-Ministerial Group (IMG)
detect, respond to, and mitigate cyberattacks by sharing on Financial Sector Cyber Security Strategy was
critical threat intelligence and best practices. CSIRT-Fin constituted with the approval of the Hon’ble Finance
has been actively participating in BRICS Rapid Information Minister. The first meeting was held on 28 November
Security Channel (BRISC) formed as part of BRICS 2025. The IMG will function as a coordinated platform
28Department of Economic Aff airs I
for policy deliberation and structured recommendation. others, included the scaling up usage of UPI-
It has decided to constitute five thematic Sub-Groups Pay. Now interlinkage and UPI acceptance
for focused examination and formulation of actionable in Singaporean merchant establishment for
recommendations. boosting travel, tourism and commerce. The
JWG’s also discussed issues regarding various
4. Chief Information Security Officer (CISO)
emerging fintech trends, regulatory cooperation
The Division is strengthening the cyber security and enhancing SME trade connectivity.
framework within the Department of Economic Affairs
(DEA). Coordination is being undertaken with concerned b. The inaugural meeting of the Joint Working
Divisions and Departments to secure IT applications Group (JWG) between India and the Philippines
through implementation of the Cyber Crisis Management was held in September 2024. The stakeholders
Plan and related measures, as prescribed by CERT-In, engaged in discussions on several agenda items.
Ministry of Electronics and Information Technology, and These included sharing experiences on policies,
Ministry of Home Affairs. regulations, and FinTech initiatives, which aims
to enhance understanding and cooperation in
DEFT Division
financial technology. The meeting also explored
1. The Digital Economy and FinTech – I (DEFT-I) collaboration on digital payments and financial
Section has been actively engaged in the initiatives inclusion, emphasizing the importance of making
aimed at enhancing the digital economy, through the financial services accessible to all. Another critical
promotion of financial technology (FinTech) for inclusive area of discussion was promoting cooperation
and sustainable growth. This Section identifies the gaps between FinTech firms, potentially leading to
and policy interventions required for the Digital Economy innovative partnerships and solutions. The
and FinTech sector for promoting digital payments, meeting addressed cybersecurity and financial
simplification of KYC (Know Your Customer) in financial frauds, highlighting the need for measures to
sector, bringing efficiencies in cross-border payments, protect financial systems.
taking Account Aggregator to population scale, bridging
c. The first roundtable meeting of the India-
the credit gap in MSME through digital lending, Digital
UK Payment Roundtable has taken place in
Public Infrastructure (DPI) in Financial Sector and
October 2024. The meeting successfully brought
DPI internationalisation etc. Extensive international
together key stakeholders to discuss critical
collaborations in Fintech sector are also undertaken to
topics on the payments landscape in both the
grow India’s contribution in the Global Digital Economy.
countries. Participants engaged in meaningful
2. The section is also involved in all government- discussions on UK payments priorities, the
to-government discussions for taking Unified Payment evolving retail payments landscape in India, and
Interface (UPI) global. The discussions are either to share the internationalization of UPI. The meeting also
the UPI stack for building digital payment infrastructure for included valuable insights from Project Nexus,
the countries without a fast payment system or to create fostering an environment of collaboration and
interoperability of UPI with other countries fast payment knowledge sharing.
system for mutual acceptance at merchant establishments
4. Digital Economy and FinTech – II (DEFT-II)
or to create a cross-border remittance corridor. Currently,
: In the Union Budget 2022-23, the Finance Minister
the UPI is accepted at merchant establishments Bhutan,
announced the introduction of the Central Bank Digital
France, Mauritius, Nepal, Singapore, Sri Lanka, Qatar
Currency (CBDC), known as the Digital Rupee or e₹,
and the UAE. UPI-PayNow interlinkage has also been
with the objective of giving a boost to the digital economy
established to facilitate cross-border remittance between
and creating a more efficient and cost-effective currency
India and Singapore. Furthermore, the section is also
coordinating with the RBI for bringing efficiencies in the management system. To enable this, the Reserve Bank
cross-border payments for collaboration in Central Bank of India (RBI) Act, 1934, was amended to expand the
Digital Currencies (CBDC). definition of ‘bank note’ to include currency in digital form.
The Digital Rupee is a legal tender issued by the RBI in
3. This section is the secretariat for three Joint a digital format, fully exchangeable at par with physical
Working Groups (JWGs) with Philippines, Singapore, currency.The RBI launched the e₹-Wholesale (e₹-W)
and the United Kingdom to enhance collaboration in the and e₹-Retail (e₹-R) pilot on November 1, 2022 and
FinTech sector. These Fintech JWG’s aim to engage December 1, 2022 respectively. The key motivations for
relevant stakeholders and promote advancements in exploring the issuance of CBDC in India among others
digital payment connectivity and financial technology. included moving to a less cash economy, reduction in
a. The India- Singapore Joint Working Group production and operational costs involved in physical
(JWG) has been convened sixth time in August cash management, fostering financial inclusion, bringing
2024, focusing on various aspects of FinTech resilience to payments, adding efficiency to the settlement
cooperation. Key topics of discussion, among system, boosting innovation in cross-border payments.
29Annual Report 2025-2026
5. Financial Sector Reforms and 6. Infrastructure Finance Secretariat
Legislation Division
Infrastructure Finance Secretariat (IFS) is headed
by Dr. Alok Tiwari, Joint Secretary. The IFS comprises
5.1 Brief on FSRL Division:
two divisions, namely:
5.1.1 FSRL Division deals with the task of
o Infrastructure Policy & Planning (IPP) Division
examination of the Financial Sector Legislative Reforms
Commission (FSLRC) Report and implementation of its o Infrastructure Support and Development (ISD)
Division
recommendations. The Division initiates the policy and
legislative proposals in tune with the recommendations of 6.1 Infrastructure Policy & Planning (IPP) Division
the FSLRC and other financial standard setting bodies, as
Infrastructure Policy & Planning (IPP) Division
accepted by the Government by engaging the concerned has the following Units:
stakeholders, regulators, Ministries, and public in the
Finance Unit (FU)
consultative process.
Policy & Planning Unit (PPU)
5.2 Appointment of Monetary Policy Committee
Capacity Building Unit (CBU)
Members
Each Unit is headed by Director/Deputy Secretary/
5.2.1 As per the provision of section 45ZB of the RBI
Joint Director and assisted by Deputy Director/Assistant
Act, 1934, out of the six Members of Monetary Policy Director etc.
Committee, three Members will be from the RBI and
6.1.1 Finance Unit (FU)
the other three Members of Monetary Policy Committee
(MPC) will be appointed by the Central Government. Major Functions:
Accordingly, the MPC was re-constituted and notified in 6.1.1(a) Finance Unit deals with financing requirements
of infrastructure including conceiving new initiatives
the Gazette of India Extraordinary dated October 1, 2024,
related to infrastructure financing and promotion of
as follows:
investment in infrastructure sectors. The Unit deals with:
(a) Governor of the Reserve Bank of India — 1. Financial Sector Reforms for long-term availability
Chairperson, ex officio. of financing from Domestic sources & Foreign
capital, Development Finance Institutions and
(b) Deputy Governor of the Reserve Bank of India, in
Financial Markets.
charge of Monetary Policy —Member, ex officio;
2. Infrastructure Financing from Fiscal resources,
(c) One officer of the Reserve Bank of India to be PSE’s IEBR and Private sector.
nominated by the Central Board —Member, ex
3. Matters related to infrastructure financing,
officio. including development of Infrastructure
Instruments and promotion of investments in
(d) Prof. Ram Singh, Director, Delhi School of
infrastructure sectors.
Economics, University of Delhi —Member.
4. Matters relating to Infrastructure Debt Funds
(e) Shri Saugata Bhattacharya, Economist — (IDFs), Real Estate Investment Trusts (REITs)/
Member; and Infrastructure Investment Trust (InvITs), Tax Free
Bonds, Municipal Bonds, Sovereign Green Bonds
(f) Dr. Nagesh Kumar, Director and Chief Executive,
and other instruments meant for infrastructure
Institute for Studies in Industrial Development, financing.
New Delhi — Member.
5. Matters relating to Credit Enhancement of
The external members of the Monetary Policy Infrastructure Projects and New Credit Rating
System for Infrastructure.
Committee referred to in subparagraphs (d) to (f) shall
serve for a period of four years from the date of their 6. All International engagement on infrastructure
appointment or until further orders, whichever is earlier. financing (other than PPPs).
30Department of Economic Aff airs I
7. Matters relating to issues of Municipal Bonds by thereby creating fresh headroom for banks to lend to
Urban Local Bodies (ULBs) for PPP and Non- fresh infrastructure projects. IDFs were expected to
PPP Projects. channelize long term funds from insurance and pension
funds, sovereign wealth funds etc to supplement lending
8. Matters relating to Infrastructure Working Group
for infrastructure projects by commercial banks which
(IWG) of G-20. are increasingly being constrained by their asset-liability
mismatch and exposure limits.
9. Matters relating to meetings of Board of
Directors of IIFCL, AIAHL, HUDCO as JS (IPP) IDFs are set up by sponsoring entities either as
is Government nominee Director NBFCs – which are regulated by the RBI and as Mutual
Funds which are regulated by SEBI. As on date, three
6.1.1(b) Major Policy Initiatives/ Achievements:
IDFs under NBFC route are in operation.
6.1.1(b)(i) G20 Infrastructure Working Group
6.1.1(b)(iv) Sovereign Green Bond Framework
(G20-IWG)
The Government of India has taken a number
Infrastructure Working Group (IWG) is a working
of measures to combat climate change, along with
group under the G20 Finance Track that drives G20’s
growth and development aspirations, to create a climate-
infrastructure agenda. The IWG deliberates on various
resilient and inclusive society. The Union Budget 2022-
aspects of infrastructure related topics. The working group
is co-chaired by Australia and Brazil. 23 announced that the Sovereign Green Bonds will be
issued for mobilizing resources for green infrastructure.
The Finance Unit collaborated with the G20 South
The proceeds from the issue were to be deployed in
African Presidency in the Infrastructure Working Group
public sector projects that help reduce the intensity of the
(IWG) to advance the following flagship priorities:
economy’s emissions.
1. Developing an Investable Infrastructure Pipeline.
In FY 2022-23, FY 2023-24 and FY 2024-25,
2. Scaling up Sustainable Infrastructure through the Government of India raised ₹16,000 crores, ₹20,000
Blended Finance Approaches; and crores and ₹21,697.40 crores respectively, through
the issuance of Sovereign Green Bonds (SGrBs). In
3. Delivering Cross-Border Infrastructure for
FY 2025-26, resources mobilised through SGrBs are
Regional Development.
₹15,000 crores. The proceeds from these bonds are
The IWG arrived at consensus and endorsed the allocated under the eligible green schemes/projects of the
deliverables pertaining to these priorities. various Ministries/Departments, which help in reducing
the economy’s carbon intensity, as per the Framework
6.1.1(b)(ii) Real Estate Investment Trusts (REITs
of Sovereign Green Bonds.
Infrastructure Investment Trust (InvITs)
REITs/ InvITs are trust-based structures that 6.1.2 Policy & Planning Unit (PPU)
maximize returns through efficient tax pass-through and
6.1.2(a) Major Functions:
improved governance structures. Guidelines/Regulations
for InvITs and REITs were notified by SEBI on 26 1. Infrastructure Investment Policy
September 2014. SEBI regulations permit InvITs/REITs
2. Institutional Mechanism on the Harmonized
to have a single tier structure comprising the Trust and
Master List of Infrastructure Sub-sectors
Special Purpose Vehicle (SPV) or a two-tier structure
comprising the Trust, Holdco (Holding Company) and 3. Sectoral charge of Ministries/Departments:
SPV. Presently, there are 29 registered InvIT’s with
M/o Ports, Shipping & Waterways,
SEBI. InvITs have raised cumulative funds of about Rs
1,46,101 crores1 till date either through public issue, M/o Civil Aviation,
private placement, or rights issue. Similarly, total 7 REITs
M/o Railways,
are registered with SEBI. REITs have raised cumulative
funds of about Rs 29,368 crores1 in the commercial real
M/o Housing and Urban Affairs,
estate segment through public issue.
Dept. Of Telecommunications,
6.1.1(b)(iii) Infrastructure Debt Funds (IDFs)
Dept. Of Posts,
IDFs were created essentially to act as vehicles
for refinancing existing debt of infrastructure companies, Ministry of Information and Broadcasting, and
M/o Road Transport & Highways,
1. SEBI Website
31Annual Report 2025-2026
4. Analysing non-PPP investment proposals the Government’s Effective Capital Expenditure to
concerning ₹9,59,710 crore, out of the total budgetary estimates of
₹15,48,282 crore, underscoring its strong commitment to
Ports, Shipping, Inland Water Transport,
infrastructure development.
Railways,
This substantial investment in large-scale public
infrastructure projects aims to stimulate economic growth,
Telecommunications,
generate employment, and enhance long-term productivity
Civil Aviation, through its significant multiplier effects. By addressing
critical gaps in infrastructure and creating opportunities
Information and Broadcasting,
for private sector participation, the government’s focused
approach is set to drive comprehensive and sustainable
Posts,
economic progress.
Urban Development sectors,
6.1.2(b)(iii) Infrastructure Investment Proposals
Road Transport & Highways,
A total of 46 CCEA/Cabinet/GoM Notes, 23 PIB/
5. Institutions: EFC Memorandum, 82 SFC/DIB Memorandum and 11
MoUs/Twin agreements/Miscellaneous matters received
National Industrial Corridor Development and
from line Ministries/Departments i.e. MoRTH, MoHUA,
Implementation Trust (NICDIT)
M/o Shipping, M/o Railways, DoT, MoCA, MoI&B,
National Highways Authority of India (NHAI), DoNER and Dept. of Posts have been examined. All
these Investment Proposals were related to a number of
Digital Communications Commission
infrastructural projects, implementation of which would
(erstwhile Telecom Commission), play an important role in improvement in the infrastructure
and would automatically bring socio-economic growth in
National Industrial Corridor Development
the region where the project would be implemented.
Corporation (NICDC) Limited (erstwhile Delhi
Mumbai Industrial Corridor Development 6.1.3 Capacity Building Unit (CBU)
Corporation (DMICDC) Limited),
6.1.3(a) Major Functions:
6.1.2(b) Major Policy Initiatives/ Achievement:
Capacity Building Unit (CBU) is entrusted with
the work related to Capacity Building in Central Ministries/
6.1.2(b)(i) Harmonized Master List of Infrastructure
State Governments and other Agencies through trainings/
Sub-sectors
workshops/seminars for project preparation, design and
On 19th September 2025, under the Category of
structuring, project appraisal, project financing, pre-
“Transport and Logistics” a new infrastructure sub sector
project activities, procurement, implementation planning
was added as “Large Ships” with definition as under:
and management etc.
“Large Ships” means Commercial Vessels having
Considering the need for a larger programmatic
a gross tonnage of ten thousand or more, which are under
approach to improve capacity it is desirable to provide
Indian ownership and flag, OR
training/workshop for officials executing projects and
drafting concessions/contracts etc. in order to have
Commercial vessels having a gross tonnage of
rigorous understanding of the frameworks, principles,
one thousand five hundred or more, which are built in
regulations guiding our Infrastructure ecosystem.
India and are under Indian ownership and flag.”
Such a programmatic training design is required to
6.1.2(b)(ii) Accelerating capital expenditure by not only enhance the appraisal of capacity of the
Infrastructure Ministries officials working at the ground level but also support
in better conceptualization and structuring of projects.
As part of Viksit Bharat 2047, the Centre has This becomes much more important for Public Private
stressed upon the importance of increasing capital Partnership (PPP) projects where expertise is required
expenditure to crowd-in private investments and enable in areas such as PPP Structuring, Project Appraisal and
extraordinary increase in the economic growth. Approval Process, Value for money, cost benefit analysis,
Project Selection approaches, Data analysis and Legal
As per the Budget 2025–26, Capital Expenditure
bidding clauses etc.
is estimated at ₹11,21,090 crore, of which ₹7,82,079
crore has been incurred up to December 2025; in The capacity building programmes are also instrumental
addition, Grants-in-Aid for creation of capital assets are in stirring necessary dialogue between Ministries and
estimated at ₹4,27,192 crore, against which ₹1,77,631 State Governments to learn from pitfalls and success of
crore has been released till December, 2025, taking each other’s project experiences.
32Department of Economic Aff airs I
6.1.3(b) Major Policy Initiatives/ Achievement: 6.2.1 PPP Pipeline Facilitation Unit
This financial year (i.e. 2025-26) as till 31st Major functions of PPP Pipeline Facilitation Unit,
December 2025, 8 offline training programs have been inter alia, include the following:
conducted by CBU, DEA in association with AJNIFM,
1. Implementation of recommendations of Core
Faridabad. A total of 300 officers from central ministries,
Group of Secretaries on Asset Monetization
CPSEs, state governments, and union territories from
(CGAM) and other meetings on NMP;
across the country have participated in these trainings.
2. Monitoring of performance of Ministries/
E-course - Further for broader outreach and
Departments on National Monetisation Pipeline
greater effectiveness of its capacity building initiatives,
(NMP);
CBU has collaborated with the Capacity Building
Commission (CBC) to develop twenty-one (21) sector- 3. General reform Initiatives for creating an
specific and sector-agnostic e-courses pertaining to the enabling eco system for increased private sector
infrastructure sector. Till date Eight (8) e-course viz.
participation in infrastructure development;
Project Finance; Financial and Debt Markets in India;
Municipal Bonds; Project feasibility and bankability; 4. Country Charge of West Asian Countries of Iran,
Structured Finance Instruments and Asset Monetisation; Cyprus, Jordan, Lebanon, Syria and Yemen.;
Infrastructure Financing in Roads and Highways;
5. State charge of Maharashtra and Gujarat
Financial Instruments and Models; and Infrastructure
Financing are onboarded on i-Got Karmayogi Platform. 6. Co-ordination work within the Division, etc;
Further an e-course on “Public Private Partnership (PPP)
6.2.2 Private Investment Unit (PIU)
– Beginner” developed by DEA is also available on the
i-GOT Karmayogi platform. Till date, in total 26677 officers Major Functions of PIU, inter alia, include the following:
from various Ministries/Departments/Organisations
across the country have enrolled for the said 9 e-courses. 1. Matters relating to appraisal and approval of
Central sector PPP projects.
Conducted a knowledge sharing session on
Public-Private Partnerships (PPP) with UAE, Ministry of 2. Matters and proposals relating to clearance by
Finance - On the request of UAE(MoF), Infrastructure Public Private Partnership Appraisal Committee
Finance Secretariat, Department of Economic Affairs (PPPAC).
(DEA) conducted knowledge exchange session on
3. Matters and proposals relating to the Scheme for
Public-Private Partnerships (PPP) for two days i.e. from
Financial support to Public Private Partnerships
29th to 30th, September 2025. We shared our PPP
in Infrastructure (Viability Gap Funding (VGF))
experience with them. As per inputs from the Ministry of
Scheme.
External Affairs (MEA), the UAE has recently established
a dedicated PPP Unit to strengthen collaboration with the 4. Matters and proposals relating to the scheme for
private sector in infrastructure and key sectors. Therefore, India Infrastructure Project Development Fund
the visit aimed to gain insights into the Government of (IIPDF).
India’s PPP frameworks, including project screening,
5. Developing multi-pronged and innovative
feasibility studies, governance, risk allocation, and
interventions and support mechanisms for
capacity building.
facilitating PPPs in the country, including
6.2 Infrastructure Support and Development Technical Assistance and programmes from
Division (ISD Division) bilateral/multilateral agencies on mainstreaming
PPPs and support to State and local governments.
Infrastructure Support and Development Division,
a part of the Infrastructure Finance Secretariat in DEA, 6. Managing training programs, strategies,
deals with initiatives for promotion of investment in exposures for capacity building for PPPs and
infrastructure development in the country, creation of other matters relating to institution building for
an enabling environment for private sector investment mainstreaming PPPs.
in infrastructure through Public Private Partnerships
7. All International interfaces on PPPs & other
(PPPs), etc. The Division has the following Units: Private
matters concerning PPPs including BRICS
Investment Unit, Energy Unit and NIP Facilitation Unit.
Taskforce on PPP and Infrastructure.
Each Unit is headed by a Adviser/Director/Deputy
Secretary/ Joint Director and assisted by an Under 8. Matters relating to management of PPP related
Secretary/ Deputy Director. information, including www.pppinindia.gov.in.
33Annual Report 2025-2026
6.2.2(a) Major Policy Initiatives/ Achievements of PIU created. The PPP project pipeline comprises 852 projects
across Central Infrastructure Ministries and States/Union
1. Financial support to Public Private
Territories with a combined total project cost over Rs. 17
Partnerships in Infrastructure (VGF Scheme)
lakh crore.
(i) Introduced by DEA in 2006, the Financial Support
to Public Private Partnerships in Infrastructure 4. PPP Policy-related measures:
(Viability Gap Funding) Scheme provides
To strengthen the PPP ecosystem in the country,
financial assistance to economically desirable but IFS and ISD in the Department of Economic Affairs
commercially unviable PPP projects. Economic (DEA) has undertaken several initiatives between June
sector projects may receive up to 40% of capital 2024 to December 2025. These efforts are designed to
expenditure (Capex) as a VGF grant, while social address the diverse needs of stakeholders involved in
sector projects are eligible for grant up to 80% PPP transactions and aim to enhance the efficiency,
of Capex and 50% of operational expenditure transparency, and effectiveness of the PPP framework.
(Opex) for five years post-commercial operations. The initiatives focus on building the in-house capacity of
(ii) Social Sector projects get VGF under two officials to manage PPP projects, introducing necessary
schemes: Sub-scheme-1: Supports projects standardization, and fostering a disciplined and structured
in sectors like wastewater treatment, water approach to PPPs. Key initiatives include:
supply, and solid waste management with at
• Model Request for Proposal (RfP) for the single-
least 100% operational cost recovery. Funding
stage bid process has been notified to streamline the
includes up to 30% of Capex by the Government
procurement process and ensure standardisation.
of India (GoI) and an additional 30% by Project
Sponsoring Authority. Sub-scheme-2: Focuses • Reference Guide for Optimal Risk Allocation has been
on pilot projects in health and education sectors published to assist Project Sponsoring Authorities
requiring at least 50% operational cost recovery. (PSAs) and other stakeholders by providing a detailed
GoI provides up to 40% of Capex and 25% of framework for risk allocation, balancing, and potential
risk mitigation strategies in PPP projects.
Opex for the first five years of operations and
the same may also be matched by the Project
• National Infrastructure Enablement Index (NIE-I)
Sponsoring Authority.
has been developed to assess the institutional
(iii) Under the Viability Gap Funding (VGF) Scheme, preparedness of States/UTs and Central Ministries/
a total of 72 projects has been approved, with a Departments.
GoI VGF of ₹ 7,941.838 crore sanctioned (till 4
• Reference Guide for Concession Principles in
December, 2025). Of this, ₹ 6,314.86 crore has
Public Private Partnership Projects has been
been disbursed.
published, to assist Project Sponsoring Authorities
2. Public Private Partnership Appraisal (PSAs) and other stakeholders by providing standard
Committee (PPPAC) concession structures, key risk-allocation principles,
and suggested drafting approaches for common
The Public Private Partnership Appraisal
contractual provisions.
Committee (PPPAC) serves as the apex body for
appraising PPP projects in the central sector. Its 5. Knowledge dissemination and promoting
streamlined appraisal mechanism is designed to Cooperative Federalism
ensure timely evaluation, eliminate delays, incorporate
a. Till December 2025, for Handholding Central
international best practices, and standardize processes.
Ministries and State Governments, officers/
Chaired by the Secretary, Department of Economic
officials dealing with PPP matters in structuring
Affairs (DEA), its members include Secretaries from the
PPP projects, four PPP structuring Toolkit
Department of Expenditure and Department of Legal
workshops were organised. These workshops
Affairs, the sponsoring ministry/department, and the
covered sectors such as Roads and Highways,
CEO of NITI Aayog. From 2014-15 to 2024-25 (till 4
Solid Waste Management, Waste Management,
December,2025), the PPPAC has recommended 129
Water and Sanitation and Ports. These workshops
projects with a total project cost (TPC) of ₹ 5,60,965.71
were conducted in person, imparting training
crore.
to a total of hundred plus officers/officials. In
3. PPP project pipeline: addition, one regional workshop was organised in
In implementation of the Para 52 of the Union collaboration with the British High Commission in
Budget 2025-26, a 3-year PPP project pipeline has been Vijayawada, respectively in which more than 100
34Department of Economic Aff airs I
officers/officials participated. These workshops 7. Investment Division
disseminated knowledge on PPP, provided
Investment Division comprises of following four
focused advisory inputs to build sector-specific
sections:
PPP pipelines while increasing awareness
A. Foreign Direct Investment & Overseas Direct
among state government officials and deepening
Investment Policy (FDI & ODI) Section
their understanding of best practices, financing
strategies, and policy frameworks. B. Domestic Investment (DI) Section
b. Launched in 2023, the Public Private Partnership C. International Investment Treaties and Framework
(PPP) Beginner’s e-course is designed to cater (IITF) Section and
to a diverse audience seeking to understand and
D. Foreign Trade & Services (FT) Section
engage with PPPs. It offers a comprehensive
curriculum covering a wide range of PPP-related The major functions of the Investment Division
are as under:
topics, with a strong emphasis on practical
insights derived from 51 real-world case studies. i. To provide policy support on Foreign/
The course has garnered significant interest, with Domestic Investment policies including new
over 2,500 participants from various sectors, policy initiatives in Foreign Direct Investment/
and has been widely recognized for its in-depth Domestic Investment Policy besides FDI/Dl policy
clarifications & related matters.
content and practical applicability to real-world
scenarios. ii. To negotiate and conclude Bilateral Investment
Treaties (BITs) and Investment Chapter of Free
c. A delegation of senior officers visited Sri Lanka to
Trade Agreements (FTAs)/ Comprehensive
disseminate knowledge on developing a robust Economic Cooperation Agreement (CECA)/
PPP framework. The engagement aimed to share Comprehensive Economic Partnership
India’s experience in implementing PPPs and to Agreement (CEPA) with other countries on the
deepen bilateral collaboration in a structured and basis of the revised Model Bilateral Investment
strategic manner. Treaty (BIT) Text which was approved by the
Cabinet on 16th December, 2015 and to also
6. Financial Support for Project Development
handle the Investor State Dispute Settlement
Expenses of PPP Projects [India Infrastructure (ISDS) notices/cases arising out from BITs/
Project Development Fund (IIPDF) Scheme]: FTAs signed with foreign countries as a nodal
Department in GOI.
The India Infrastructure Project Development
Fund (IIPDF) Scheme, notified on 3 November 2022, aims iii. Matter related to equity investments from
both domestic and international sources for
to support Central and State Government authorities in
infrastructure development in commercially viable
developing quality PPP projects by funding transaction
projects, both greenfield and brownfield, including
advisers to create a pipeline of viable, bankable projects.
stalled projects through National Investment and
With a total outlay of ₹150 crore for FY23-FY25, the
Infrastructure Fund, works relating to SWAMIH
scheme funds up to ₹5 crore per proposal (including
Fund-I.
taxes) for consultant and transaction advisor costs, with
iv. Foreign Exchange aspect related to Gold
additional expenses borne by the sponsoring authority.
including Gold Monetisation Scheme, Indian Gold
Funding is non-recoverable. Under this scheme (till
Coins etc.
December, 25), a total of 31 proposals amounting to
Rs. 64.13 Cr have been approved. The approved portfolio v. To coordinate with Ministry of Steel, Ministry
demonstrates the Scheme’s versatility, encompassing of Textiles, Department of Chemical and Petro
Chemicals, Department of Investment and Public
projects as varied as a medical college in Namsai
Asset Management (DIPAM), Department for
(Arunachal Pradesh); tourist complexes in Punjab; a
Promotion of Industry & Internal Trade (DPIIT),
dedicated PPP cell in Tripura and Andhra Pradesh; a
Department of Public Enterprises (DPE), Ministry
passenger ropeway in Himachal Pradesh; a floating solar-
of Micro, Small & Medium Enterprises (MSME),
photovoltaic plant in Andhra Pradesh; a fintech centre of
Department of Commerce and Ministry of Heavy
excellence with integrated student-and-faculty facilities
Industry on economic issues and also offering
at IIM Mumbai; eco-tourism resorts in the Andaman
them comments/suggestions on various matters
& Nicobar Islands; a hydro-electric power project in
as per need of the Indian economy. This Division
Mizoram; and housing units for the Delhi Police and has the external territorial charge of Central and
projects in Kashmir. South American Nations.
35Annual Report 2025-2026
A. Foreign Direct Investment & Overseas Direct regulatory framework for overseas investment provides
Investment Policy (FDI & ODI) Section for simplification of the existing framework for overseas
investment and has been aligned with the current
The function of this section is to provide policy
business and economic dynamics. Clarity on Overseas
support on foreign investment policies including new Direct Investment and Overseas Portfolio Investment has
policy initiatives in Foreign Direct Investment and been brought in and various overseas investment related
FDI policy clarifications & related matters along with transactions that were earlier under approval route are
processing of FDI proposal(s) received in D/o Economic now under automatic route, significantly enhancing “Ease
Affairs. This section co-ordinates with DPIIT, D/o of Doing Business”.
Revenue, RBI and SEBI on foreign investment issues
B. Domestic Investment (DI) Section
and also offers them comments/suggestions on any
amendment in FDI policy. It also suggests measures for The Domestic Investment (DI) Section plays a
improving investment environment in India with respect crucial role in channeling investments towards sectors
to FDI policy. This section also publishes Overseas Direct of national importance for India, especially infrastructure
Investment outflows data across sectors and countries
and middle-income housing. It manages two funds-
on DEA’s website on monthly basis.
National Investment and Infrastructure Fund (NIIF) and
Special Window for Affordable and Mid-income Housing
DEA is entrusted with the approval/examination
of FDI proposals (as per the FDI Policy, 2020) for: Investment Fund (SWAMIH). The Section processes
requests from fund managers to release funds.
i. “Financial services which are not regulated by
NIIF Funds
any Financial Sector Regulator or where only
part of the financial services activity is regulated National Investment and Infrastructure Fund
or where there is doubt regarding the regulatory Limited (‘NIIF Ltd.’) presently manages 4 Funds
oversight”; and registered as Category II Alternative Investment Funds
under the Securities and Exchange Board of India (AIF)
ii. Applications for foreign investment into a Core
Regulations, 2012.
Investment Company or an Indian company
engaged only in the activity of investing in the (a) National Investment and Infrastructure
capital of other Indian company/companies. Fund (NIIF Master Fund)
To promote Foreign Direct Investment, the This fund invests primarily in assets in core
Government has put in place an investor-friendly infrastructure sectors such as roads, ports, airports,
policy which is transparent, predictable and easily power, etc. The investments are largely in businesses
comprehensible. Except for a small negative list, most often operating in regulated environments or under
sectors have been made open for 100% FDI under the concession or long-term agreements. Investors include
automatic route. FDI under the automatic route does the Government of India, Abu Dhabi Investment Authority,
not require prior approval either by the Government of Ontario Teachers, Australian Super, Canada Pension
India or RBI. Investors are only required to notify and file Plan Investment Board, Temasek, PSP Investments,
documents with the concerned Regional Offices of RBI. United States Development Finance Corporation, and
Under the Government approval route, applications are domestic financial institutions among others.
filed in the Foreign Investment Facilitation Portal (FIFP),
The Portfolio is as follows:
the new online single point interface of the Government of
India for investors to facilitate Foreign Direct Investment (in ₹ Crores)
and approved by the respective subject matter Ministries.
Space sector has been liberalized for foreign direct Amount as on
Particulars
investment in prescribed sub-sectors/activities in 2024. 31.12.2025
Overseas Investment Rules and Regulations Notified: Total capital commitment 15,998
The Government of India, in consultation with the Reserve
Capital drawn down 12,970
Bank, undertook a comprehensive exercise to simplify
these Overseas Investment Rules & Overseas Investment (b) NIIF Fund of Funds-I (NIIF FOF)
Regulations. Final Foreign Exchange Management
This fund invests in third-party managed funds
(Overseas Investment) Rules and Foreign Exchange
with sectors of focus which among others includes
Management (Overseas Investment) Regulations, 2022
had been notified. The copy of the notification was green infrastructure, mid-income/affordable housing,
laid on table of Lok Sabha and Rajya Sabha in Winter infrastructure services, social infrastructure, urban
Session of Parliament in December 2022. The revised infrastructure, industrials and telecommunications.
36Department of Economic Aff airs I
The fund follows a diversified strategy across AIFL and NIIF IFL work complementarily to cover
sectors, products and investment styles. Anchored by the full range of infrastructure debt financing in India. The
the GoI, it has received commitments from multilateral total loan book size (across both NBFCs) is ~Rs.45,000
institutions including Asian Infrastructure Investment crore, and there is no NPA position across the portfolios
of both companies.
Bank (AIIB), Asian Development Bank (ADB) and New
Development Bank (NDB).
Special Window for Affordable and Mid-income
Housing (SWAMIH) Investment Fund-I
The Portfolio is as follows:
The Fund was incorporated in December 2019
(in ₹ Crores)
after the announcement by the Hon’ble Finance Minister
to set up a ‘Special Window’ in the form of Category-
Amount as on
Particulars II Alternative Investment Fund to provide priority debt
31.12.2025
financing for the completion of stalled/stressed housing
Total capital commitment 4,281 projects. The Fund is managed by SBI Ventures
Capital drawn down 3,986 Limited (formerly known as SBICAP Ventures Limited),
a subsidiary of State Bank of India. The investment
(c) India Japan Fund (IJF) objective of the Fund is to complete construction of stalled
/ stressed residential development across geographies -
NIIF launched India-Japan Fund (IJF) of Rs.
pan India.
4,900 crore (~USD 600 millions) backed by GoI and
the Japan Bank of International Cooperation (JBIC) in The Fund invests in RERA-registered housing
August, 2023. The Fund will focus on investments in projects where 90% of Floor Space Index (FSI) is
India’s environmental sector, including renewable energy, dedicated for Affordable/ Mid-Income Housing, RERA
e-mobility businesses, and circular economy sectors such carpet area of the units is less than 200 sqm and houses
are priced below Rs. 2.0 crore in Mumbai Metropolitan
as waste management and waste-water management.
Region, below Rs.1.5 crore in National Capital Region,
The Fund will also invest in opportunities to foster
Chennai, Kolkata, Pune, Hyderabad, Bangalore and
collaboration between Indian and Japanese companies
Ahmedabad and below Rs.1.0 crore in Rest of India. The
across sectors.
projects also have to be net-worth positive and at least
30% of the project costs has to be completed.
The Portfolio is as follows:
(in ₹ Crores) Details of commitments made by each of the
fourteen investors in SWAMIH:
Amount as on
Particulars
31.12.2025 Sl. No. Investor Amount
(in ₹ Cr)
Total capital commitment 4,908
1 Government of India 10,000
Capital drawn down 1,659
2 State Bank of India 1,250
(d) National Investment and Infrastructure
3 Life Insurance Corporation 1,250
Fund-II (Strategic Opportunities Fund, SOF):
4 Union Bank of India 500
This fund focuses on high growth opportunity and
innovative companies. The fund invests in businesses 5 Indian Bank 400
either through a majority stake (incubation deals/ control-
6 Punjab National Bank 400
oriented deals) or an active minority stake.
7 Canara Bank 400
NIIF Infrastructure Finance Limited (NIIF IFL):
8 Bank of Baroda 400
NIIF SOF invested in NIIF IFL, an NBFC registered as
an Infrastructure Debt Fund with the Reserve Bank of 9 Central Bank of India 400
India. NIIF IFL provides long-term refinancing solutions HDFC Bank Limited
10 250
to operational infrastructure projects across the country
(earlier HDFC limited)
that have completed at least one year of satisfactory
11 Bank of India 100
operations.
12 Bank of Maharashtra 100
Aseem Infrastructure Finance Limited (AIFL):
13 Punjab & Sind Bank 75
NIIF SOF also invested in an NBFC-IFC, Aseem
SBICAP Ventures Limited
Infrastructure Finance Limited (AIFL), which invests in
14 6
projects across the infrastructure spectrum with a mix of (Investment Manager)
operating, brownfield and greenfield assets. Total 15,531
37Annual Report 2025-2026
The Portfolio of SWAMIH Fund- I is as follows: India is currently negotiating Bilateral Investment
Treaties with number of other countries.
(in ₹ Crore)
D. Foreign Trade & Services (FT) Section
Amount as
Particulars on 31.01.2026 The main function of Foreign Trade & Services
(FT) section of Investment Division is dealing with the
Total capital commitment 15,531.0
Policy matters related to foreign exchange aspects related
Capital drawn down 10,772.9
to Gold/Silver, policy matters related to Gold viz. Gold
As on 31st January, 2026, the Fund has made Monetisation Scheme (GMS), Indian Gold Coin (IGC) and
161 investments, across India. Upon completion of the Gold Metal Loan (GML), drafting policy for promotion of
project, the Fund has achieved profitable full exits from Gold as a Financial Asset Class.
55 investments. About 61,673 housing units have applied
Gold Monetization Scheme
for/ achieved completion.
The Government of India launched the Gold
C. International Investment Treaties and Monetisation Scheme on November 5, 2015 with an
Framework (IITF) Section objective to mobilize idle gold held by households and
institutions, channel it into productive uses (such as
The main function of IITF Section is to negotiate
supplying gold to the gems and jewellery sector) and
and conclude Bilateral Investment Treaties (BITs) with
gradually reduce India’s reliance on gold imports. The
other countries on the basis of the revised Model Bilateral
scheme comprises of three main components:
Investment Treaty (BIT) Text which was approved by
the Cabinet on 16th December, 2015. This Section also a. Short-Term Bank Deposits (1–3 years)
handles the Investor State Dispute Settlement (ISDS)
b. Medium-Term Government Deposits (5–7 years)
notices/cases arising out from BIT/Investment Protection
Chapter under FTAs/CECA/CEPA signed with foreign c. Long-Term Government Deposits (12–15 years)
countries. Investment related issues in International
Based on the examination of the performance
Forums such as UNCITRAL, UNCTAD, G20, BRICS and
of the Gold Monetisation Scheme (GMS) and evolving
WTO are also dealt in this section. Additionally, capacity
market conditions, it has been decided to discontinue
building initiatives for Central and State governments on
the Medium Term and Long Term Government Deposit
BIT issues are also organized.
(MLTGD) components of the GMS w.e.f. March 26, 2025.
The Short-Term Bank Deposits (STBD) offered by the
Achievements
banks under GMS shall continue at the discretion of the
India has signed BIT with one country in FY 2025- individual banks based on the commercial viability as
26 and 3 BITs with other countries got enforced in FY assessed by them.
2025-26:
Till November 2025, approximately 39,044
kilograms of gold have been mobilised under GMS. The
Sl. Country and Name Date of Signing Date of
details are as under:
No. of Agreement of Agreement Enforcement
Details of Gold Mobilised under GMS (as on 30th
1. Brazil: Investment 25th January, 21st December,
Cooperation & 2020 2025 November, 2025)
Facilitation Treaty
S. Types of Deposits Deposited Gold as on
2. Israel: Bilateral 08th September, Pending No. 30.11.2025 (in Kgs)
Investment 2025 1. Cumulative Quantity of Gold 39,044.40
Agreement (BIA) (in Kgs)
2. Short term Gold Deposit 9311.72
3. Kyrgyz Republic: 14th June, 2019 05th June, 2025
Bilateral Investment 3. Medium Term Gold Deposit 10541.32
Treaty
4. Long Term Gold Deposit 19191.36
5. Number of participating 10
4. Uzbekistan: Bilateral 27th September, 15th May 2025
banks
Investment Treaty 2024
6. Number of depositors 6531
38Department of Economic Aff airs I
8. Fund Bank & ADB Division 8.4 Major activities pertaining to the World Bank
8.1 Introduction 8.4.1 Monitoring of the World Bank Portfolio: Portfolio
performance has improved over the years as a result
8.1.1 The Fund Bank Division is concerned with
of review meetings such as Tripartite Review Meetings
policy matters of Multilateral Institutions like World Bank
for ongoing projects and Pipeline Review Meetings for
Group, International Monetary Fund (IMF) and related
pipeline projects. These meetings are organized jointly
Institutions. Fund Bank Division is also the nodal point
by the Government of India and the World Bank and are
for facilitating and monitoring Externally Aided Projects
attended by officials from the Department of Economic
(Central & State Projects all over India) which are being
Affairs (DEA), the World Bank, and the implementing
implemented through Multilateral Development Banks
agencies of World Bank–assisted projects. Tripartite
and other related Trust Funds / Loans / Grants.
meeting to discuss the World Bank’s ongoing and pipeline
8.2 World Bank Group projects were held in New Delhi from November 18 to
November 20, 2025.
8.2.1 The World Bank is among the world’s leading
development institutions with a mission to fight poverty
8.4.2 India as donor to IDA; since its founding in 1960,
and improve living standards for people in the developing
IDA has had 20 regular replenishments. In 2014 (IDA 17),
world by promoting sustainable development through
India transitioned to being a confident donor. However,
loans, guarantees, risk management products and (non-
it continued to receive transition support during IDA 17
lending) analytic and advisory services. The World Bank
(2014-17). India became a donor only nation during
is one of the United Nations’ specialized agencies. The
IDA18. As a commitment to India’s shared objective of
World Bank concentrates its efforts on reaching the
eliminating extreme poverty, reducing vulnerability and
Millennium Development Goals aimed at sustainable
increasing resilience across countries, India decided to
poverty reduction.
contribute USD 200 Million to IDA 17 replenishment. In
8.2.2 India is member of four institutions of the World furtherance of its commitment towards the IDA countries,
Bank Group viz., International Bank for Reconstruction India announced a pledge of INR 12.25 billion as its
and Development (IBRD); International Development contribution towards IDA 18 replenishment. During
Association (IDA); International Finance Corporation (IFC) the IDA 19, IDA 20 and IDA 21 replenishment, India
and Multilateral Investment Guarantee Agency (MIGA). committed INR 15 bn, INR 17.48 Bn and INR 23.21 Bn
India has been accessing funds from the World Bank respectively.
(mainly through IBRD) for various developmental projects.
8.5 International Finance Corporation (IFC)
Fund Bank Division, DEA is the focal point for India being
represented in the WBG meetings for international level
8.5.1 The International Finance Corporation (IFC), a
deliberations to discuss policy issues pertaining to the
member of the World Bank Group, focuses exclusively
World Bank Group as also to undertake projects with
on investing in the private sector in developing countries.
assistance from the World Bank (IBRD).
Established in 1956, IFC has 186 members. India is the
founding member of IFC. IFC is an important development
8.3 World Bank India Portfolio
partner for India with its operations concentrated on
8.3.1 The World Bank’s India portfolio (State projects)
financing and advising private sector in the country. India
as on 10.12.2025 comprises 53 projects with a net
is IFC’s sixth largest shareholder with 4.18% of the total
commitment of USD 9,726.42 million. Three (03) World
subscription and 3.98% of the total voting power. India’s
Bank–assisted projects: Manipur Infotech Development
Executive Director represents a constituency equal to
Project, Karnataka Water Security and Resilience
4.79% voting power. There are three other countries in
Program and Tamil Nadu Women Employment and
India’s constituency at the IFC, viz. Bangladesh, Bhutan
Safety (TN WESAFE) Operation, were signed during 1
and Sri Lanka. IFC has committed over USD 37 billion
April 2025 to 30 November 2025, amounting to USD 622
(including mobilization) in India since its first investment
million.
in 1958. IFC continued to deliver over USD 5.366 billion
8.3.2 The World Bank’s India Portfolio (Central Sector), through own account and mobilization in FY25 (July 2024-
as on 30.11.2025, comprises of 18 projects with a net June 2025) in India. During July 2024-June 2025, DEA
commitment of USD 6279.09 million (including CTF loan/ approved a total of 38 Article III Notifications. Further,
CTF Grant/ GPG Grant) and no project was signed during DEA granted approval for 2 advisory engagements of
1 April 2025 to 30 November 2025. IFC between July 2024 and June 2025. IFC’s portfolio
as of August 31, 2025 included 278 projects with 210
8.3.3 A Tripartite Meeting to discuss ongoing and
clients, with portfolio exposure of USD 10.354 billion,
pipeline projects was held from 18–20 November 2025
making India IFC’s largest portfolio accounting for 11%
at New Delhi.
39Annual Report 2025-2026
of its global exposure. India is also one of IFC’s largest of USD 25 million was completed in two tranches on May
client, as well as the IFC regional hub for South Asia. IFC’s 29, 2024. The second instalment of USD 25 million was
investments in India are spread across priority sectors fully disbursed on July 10, 2025.
like infrastructure, manufacturing, financial markets,
8.6.6 The IMF Article IV staff visit was held during
MSMEs, affordable housing, renewable energy, gender
September 4-18, 2025, with the Wrap Up meeting,
development and climate change. In line with the Country
chaired by Secretary (EA) and attended by all concerned
Partnership Framework (CPF) of the World Bank Group,
Departments, on September 17, 2025. Discussions were
IFC uses its private sector expertise to support economic
held on the Macroeconomic issues, financial sector issues
growth that is inclusive, productive and sustainable.
and Data Adequacy Assessment. The final report of staff
8.6 International Monetary Fund (IMF) findings has also been published on November 26, 2025.
8.6.1 India is a founder member of the International
8.6.7 The Annual Meetings of the IMF/ World Bank,
Monetary Fund, which was established to promote a
meetings of G-20, Bilateral meetings and Investment
cooperative and stable global monetary framework. At
meetings and other associated meetings at the side-lines
present, 191 nations are members of the IMF. Since
were held in USA from October 13 to October 18, 2025.
the IMF was established, its purposes have remained
Secretary (EA), Chief Economic Adviser, Joint Secretary
unchanged but its operations– which involve surveillance,
(FB), Adviser (CCFU), Director (FB) and Joint Director
financial assistance and technical assistance– have
(IER) represented India in these meetings.
developed to meet the changing needs of its member
countries in an evolving world economy. The Board of 8.7 Global Alliance for Vaccines and
Governors of the IMF consists of one Governor and Immunizations (GAVI Alliance)
one Alternate Governor from each member country. For 8.7.1 The GAVI Alliance (formerly the Global Alliance
India, the Finance Minister is the ex-officio Governor for Vaccines and Immunization) was founded in 2000
on the Board of Governors of the IMF. There are three to reduce the historical gap in access to life saving
other countries in India’s constituency at the IMF, viz. vaccines and reduce child mortalities. GAVI’s mission
Bangladesh, Bhutan and Sri Lanka. Governor, Reserve is to save children’s lives and protect people’s health
Bank of India (RBI) is India’s Alternate Governor. by increasing access to immunization in poor countries.
India is not only a recipient, but also a contributor to GAVI
8.6.2 Meetings of Board of Governors
Alliance. As per the ‘Contribution Agreement’ signed
The Board of Governors usually meets twice a
between Government of India and GAVI on 30th June
year viz. the Spring Meetings and the Annual Meetings
2021, Govt of India contributed USD 15 million (USD 3
of the IMF and World Bank to discuss the work of the
mn annually) towards the GAVI Alliance during the five
respective institutions. At the heart of the gathering
year replenishment cycle through 2021-25. The fifth and
are meetings of the IMF’s International Monetary and
final instalment of USD 3 mn was made on 30th January,
Financial Committee (IMFC). India is represented by
2025.
the Hon’ble Finance Minister in IMFC and the joint
World Bank-IMF Development Committee (DC), which 8.7.2 A proposal of MoHFW was received in May 2025
discusses progress on the work of the IMF and World for enhancement of India’s contribution to the GAVI in the
Bank. next replenishment cycle of five years i.e. 2026-30. It was
decided with the approval of Hon’ble Finance Minister
8.6.3 The Spring Meetings of the IMF/ World Bank, WB-
that the Govt. of India will contribute USD 20 mn towards
IMF Side events, meetings of G-20, Bilateral meetings
GAVI through the period 2026-2030 i.e. a contribution of
and Investment meetings and other associated meetings
USD 4 mn each year.
were held in USA from April 21 to April 30, 2025. The
Hon’ble Finance Minister, Secretary (EA), Chief Economic 8.8 Global Fund to Fight AIDS, Tuberculosis and
Adviser, Additional Secretary (FB, OMI & crypto), Joint Malaria (GFATM)
Secretary (FB), Advisers (IER), Director (Investment) and 8.8.1 The Global Fund to Fight AIDS, Tuberculosis and
Joint Director (IER) represented India in these meetings. Malaria (The Global Fund / GFATM) is an international
financing organization that aims to attract and disburse
8.6.4 India voted in the favour of Dr. Urjit Patel, ED India
additional resources to prevent and treat HIV and
at IMF in the 2025 By-election of Executive Directors at
AIDS, Tuberculosis and Malaria. The organization is
IMF.
public-private partnership with Secretariat at Geneva,
8.6.5 India has contributed USD 50 million for Phase Switzerland. The organization began operations in
II of SARTTAC Operations (January 2024 – April 2029) January 2002. GFATM supported programs have
in two instalments of 25 million each. The first instalment estimated to have saved 65 million lives since 2002.
40Department of Economic Aff airs I
8.8.2 As per the ‘Multi-Year Contribution Agreement’ development partnership that completes 40 years in 2026.
signed between the Government of India and GFATM The Department of Economic Affairs, Ministry of Finance,
on 6th February, 2023, India contributed USD 25 million acts as the nodal authority for coordinating all Government
to GFATM during the Seventh Voluntary Replenishment of India engagements with ADB, including loans, technical
cycle (2023-25) as per following schedule (i) US$ 8 million assistance, grants, and equity investments.
in 2023 and 2024 each and (ii) US$ 9 million in 2025.
8.10.2 India holds 6.32% of the subscribed capital of
India’s third and final instalment of USD 9 mn to the
ADB, corresponding to 672,030 shares, and exercises
GFATM for the year 2025-26 was paid on 18th July 2025.
5.34% voting power, making it the fourth-largest
8.8.3 A proposal was received from MoHFW in June shareholder in the institution. India is also a contributing
2025 regarding a decision on India’s contribution towards donor to the Asian Development Fund (ADF) through
the 8th replenishment cycle of GFATM. With the approval which ADB provides concessional financing to its
developing member countries (DMC) based on agreed
of Hon’ble FM, Govt. of India decided to pledge USD 30
yardsticks. Contributions made by India include US$30
Mn towards the eighth replenishment cycle of GFATM
million for ADF 11 replenishment, US$41.74 million to
(2026-28).
ADF 12, US$51.38 million to ADF 13, and a pledge
8.9 Multilateral Investment Guarantee Agency of US$58.17 million to ADF 14 (2025–2028). These
(MIGA) contributions underscore India’s increasing role as a
responsible stakeholder in multilateral concessional
8.9.1 Multilateral Investment Guarantee Agency
financing.
(MIGA) was founded in 1988 to promote foreign direct
investment (FDI) into developing countries. MIGA 8.10.3 India participates in ADB’s governance structure
currently has 182 members. It provides investment through representation on the Board of Governors,
where the Hon’ble Finance Minister of India serves as
guarantees to private sector investors and lenders,
the Governor. On the Board of Directors of ADB, India
particularly in conflict affected countries. At present, India
is represented through an Executive Director (ED)
has 3.03% capital subscription with a voting power of
appointed by the Government of India, and supported
2.53% in the MIGA Board. As a constituency India has
by officers from the Government of India, including two
3.41% of total voting power. MIGA also provides technical
Advisors and one Executive Assistant. DEA, through the
assistance to developing countries as well as helps them
ED, coordinates India’s position on policy documents,
in their efforts to attract foreign capital, technology, and
lending proposals, technical assistance, and institutional
know-how. MIGA’s mission is to support economic growth,
matters placed before ADB’s Board.
reduce poverty, and improve people’s lives by mobilizing
cross-border private investment into developing countries. 8.10.4 The Annual Meetings of the Board of Governors
MIGA guarantees help borrowers (sub-sovereign and (BoG) of the ADB, held annually in early May, provide
state-owned enterprises) diversify their funding sources a key platform for India’s ministerial-level engagement
with improved financing terms and conditions without with ADB on policy, financial, and operational matters.
needing the Government of India’s counter indemnity. India hosted the 46th Annual Meeting in New Delhi (2–5
MIGA set up its first office in India in November 2022 to May 2013). The Hon’ble Finance Minister participated in
the 58th Annual Meeting in Milan, Italy (4–7 May 2025)
further enhance its engagement in the country and the
and highlighted India’s development vision, economic
broader South Asia region.
progress, and engagement with key international
8.9.2 In April 2024, India approved the Host Country partners. India will participate in the 59th Annual Meeting
Approval (HCA) of MIGA with SBI for refinancing of USD scheduled in Samarkand, Uzbekistan (3–6 May 2026).
200 million of an existing IBRD loan extended to SBI for
8.10.5 ADB is a key multilateral partner supporting
the Grid Connected Solar Rooftop Program. The MIGA
India’s development priorities through sovereign lending
guarantee will support the refinancing of operating rooftop
and technical assistance. Cumulatively, ADB has
solar projects in India. Further, on 5th December 2025,
committed US$63.37 billion across 330 sovereign loans
Govt of India granted Host Country Approval (HCA) for
to India. The ongoing sovereign portfolio consists of 85
a partnership between MIGA and SBI for refinancing of
loans amounting to US$18.52 billion. Recent annual
additional USD 163 million of the IBRD loan extended to
commitments include US$4.6 billion in 2021, including
SBI for the Grid Connected Solar Rooftop Program.
US$1.5 billion under the Asia Pacific Vaccine Access
Facility (APVAX), US$4.25 billion in 2024, and US$4.26
8.10 Asian Development Bank
billion in 2025. ADB-supported projects are aligned with
8.10.1 India is a founding member of the Asian national priorities in sectors such as skills development,
Development Bank, established in 1966. ADB began renewable energy, urban infrastructure, metro rail
its sovereign operations in India in 1986, marking a systems, healthcare, and tourism.
41Annual Report 2025-2026
8.10.6 DEA undertakes continuous monitoring of the 9. International Economic Relations
ADB portfolio in coordination with executing agencies Division
and ADB through Tripartite Portfolio Review Meetings
The International Economic Relations (IER)
(TPRMs). As a result of sustained portfolio oversight,
Division of the Department of Economic Affairs handles
implementation performance has improved over the
matters related to the following forums, including
years. Sovereign loan disbursements reached a record
content and coordination with stakeholder Departments/
US$3.7 billion in 2022, followed by US$2.69 billion in 2023 Ministries:
and US$2.93 billion in 2024. As of mid-December 2025,
G20 Finance Track;
sovereign loan disbursements stood at US$2.42 billion.
BRICS;
8.10.7 ADB assistance to India is aligned with
G-24;
Government priorities and guided by the Country
Partnership Strategy (CPS). The CPS 2023–2027, OECD;
approved in May 2023, focuses on climate-resilient green
G7;
growth, structural transformation and job creation, and
SAARC, SDF;
social and economic inclusiveness, with emphasis on
value addition through knowledge, capacity development, BIMSTEC;
and innovation. The Department of Economic Affairs
ASEAN;
(DEA) oversees CPS formulation, implementation, and
alignment with national objectives. WEF;
Shanghai Cooperation Organisation (SCO);
8.10.8 India plays an active role in the South Asia
Subregional Economic Cooperation (SASEC) program
Voice of Global South Summits;
coordinated by the ADB, with the DEA representing India
in SASEC governance mechanisms, including Working The IER Division also handles matters concerning
the United Nations Development Programme (UNDP) and
Groups and Senior Officials’ Meetings. In December
the United Nations Office for Project Services (UNOPS),
2025, India, through the Department of Economic Affairs,
including programmes or projects being implemented
endorsed the SASEC Strategy 2035 across transport,
in India, as well as the International Conference on
trade facilitation, and energy, and supported updating
Financing for Development (FfD).
the Action Plan of SASEC Initiatives (2025–2027), with
a mandate to prepare the next rolling plan (2026–2028). The Division has external territorial charge of the
India through SOM endorsed a strong push for digital Commonwealth of Independent States (CIS) countries,
transformation across transport, trade facilitation, energy, South Asian countries, Southeast Asian countries, and
and economic corridors (including tourism and food Mexico, and sectoral charge of the Ministry of Defence
ecosystems), while emphasizing renewable energy trade, and the Ministry of Tribal Affairs.
regional power connectivity, manufacturing value chains,
E- Governance:
and green fuels.
IER division has fully operationalized E-file
8.10.9 ADB supports project preparation and institutional System.
strengthening through Project Readiness Financing (PRF)
I. G-20
loans and Knowledge Support Technical Assistance
The G20 was formed in 1999, after the Asian
(KSTA), particularly in the North Eastern Region (NER).
financial crisis, as a forum for Finance Ministers and
PRFs facilitate the preparation of bankable projects with
Central Bank Governors to discuss global economic and
high levels of implementation readiness. Several PRFs
financial issues. The G20 rose into prominence in 2008
across Sikkim, Tripura, Mizoram, Manipur, and Nagaland
when it was elevated to the level of G20 Heads of Nations
are currently under implementation or processing.
in order to effectively respond to the global financial crisis
8.10.10 The Capacity Development Resource Center of 2008.
(CDRC) at ADB’s India Resident Mission, established
The first G20 Summit was held in November 2008
in collaboration with DEA, supports executing agencies
in Washington DC. This was followed by sixteen summits
through structured capacity-building programs. In 2025, held in London (April, 2009), Pittsburgh (September,
CDRC conducted 29 capacity development programs, 2009), Toronto (June, 2010), Seoul (November, 2010),
benefitting 1,835 officials from 95 projects covering Cannes (November, 2011), Los Cabos (June, 2012), St.
ADB’s India portfolio, thereby contributing to improved Petersburg (September, 2013), Brisbane (November,
implementation of externally aided projects. 2014), Antalya (November, 2015), Hangzhou (September,
42Department of Economic Aff airs I
2016), Hamburg (2017), Buenos Aires (2018), Osaka 2. International Financial Architecture (IFA)
(2019), Riyadh (2020), Rome (October, 2021) and Bali Working Group discusses reforms to enhance
(2022). The 18th G20 Summit was held under the Indian the stability and cohesion of the international financial
G20 Presidency in New Delhi, India on 9-10 September, architecture, including issues relating to debt sustainability
2023. The 19th G20 Summit was held under the Brazilian and transparency; strengthening the Global Financial
G20 Presidency in Rio de Janeiro on November 18-19, Safety Net (GFSN), reform of IMF quotas and governance
2024, and the 20th G20 Summit was held under the reforms, Special Drawing Rights (SDRs); capital flow
South African Presidency on 22-23 November 2025 in management measures, development finance and
Johannesburg, South Africa. Central Bank Digital Currencies (CBDCs).
G20 issues are discussed through two parallel Co-chairs: The IFA-WG is co-chaired by France
tracks, viz., Finance Track and Sherpa Track. The Finance and South Korea. The group was set up in 2012.
Track of the G20 discusses global economic and financial
3. Infrastructure Working Group (IWG) discusses
issues. The track is headed by G20 Finance Ministers and
mobilization of finance for infrastructure and developing
Central Bank Governors who are assisted by G20 Finance
infrastructure as an asset class. The Group has been
and Central Bank Deputies. Hon’ble Finance Minister and
deliberating on policies for improving the preparation,
Governor, RBI jointly head the G20 Finance Track work financing, and management of quality infrastructure
in India. They are assisted respectively by Secretary, investments.
Economic Affairs (who is India’s G20 Finance Deputy)
Co-chairs: At present, the IWG is co-chaired by
and Deputy Governor, RBI (who is India’s G20 Central
Australia and Brazil. The group was set up in 2014.
Bank Deputy). The G20 Finance Ministers and Central
Bank Governors usually meet three to four times a year.
4. Sustainable Finance Working Group (SFWG)
They finally report to the G20 Leaders who are the apex is mandated to work towards mobilizing sustainable
decision-makers in the G20. Meetings of Finance and finance as a way of ensuring global growth and stability
Central Bank Deputies (FCBD) are held in the run-up and promoting the transition towards greener, more
to every Finance Ministers and Central Bank Governors resilient, inclusive societies and economies. The Group
(FMCBG) Meeting. Technical-level discussions are held is tasked to identify institutional and market barriers to
through meetings of Working Groups, usually 3-4 times sustainable finance and develop options to overcome
a year. such barriers, and to contribute to a better alignment of
the international financial system to the objectives of the
The Finance Track comprises 8 workstreams.
2030 Agenda and the Paris Agreement.
There are Working Groups for 5 of these workstreams
and a Joint Finance-Health Taskforce, listed as under: Co-chairs: The G20 Sustainable Finance Study
Group was reestablished as SFWG in 2021, with the
1. Framework Working Group (FWG)
United Nations Development Programme (UNDP) serving
2. International Financial Architecture Working
as the Secretariat. Previously, the SFWG was co-chaired
Group (IFA WG) by the United States and China. In mid-2025, Italy joined
3. Infrastructure Working Group (IWG) as a co-chair, replacing the United States.
4. Sustainable Finance Working Group (SFWG) 5. Financial Sector agenda focuses on monitoring
5. Financial Sector Issues the implementation of financial market regulation and
coming up with solutions as and when new challenges
6. Global Partnership for Financial Inclusion (GPFI)
to financial stability arise. The work is anchored in the
7. International Taxation Financial Stability Board (FSB) which is mandated
to assess vulnerabilities affecting the global financial
8. Joint Finance and Health Task Force (JFHTF)
system as well as to identify and review, on a timely and
The mandates of G20 Finance Track workstreams ongoing basis within a macroprudential perspective, the
along with relevant details are as follows: regulatory, supervisory and related actions needed to
address these vulnerabilities and their outcomes. The
1. Framework Working Group (FWG) discusses
work is reported by the FSB directly to the G20 Finance
the global economic outlook, monitoring of global risks and
Ministers and Governors. There is no working group under
uncertainties and recommends possible areas of policy
the G20 Finance Track on this agenda.
coordination aimed at promoting Strong, Sustainable,
Balanced, and Inclusive Growth (SSBIG) across the G20. 6. Global Partnership for Financial Inclusion
(GPFI) is mandated to advancing financial inclusion
Co-chairs: India has been co-chairing this group globally by increasing access to, as well as usage of,
since its inception in 2009. From 2009 to 2019, India co- sustainable formal financial services, thereby expanding
chaired the Group with Canada. UK has been the co-chair opportunities for underserved and excluded households
of the FWG since 2020. and enterprises. The GPFI’s scope of work and overall
43Annual Report 2025-2026
The key outcome of the meeting is the “G20 South
objectives are defined by a G20 Financial Inclusion Action
Africa Summit Leaders’ Declaration” (https://g20.org/wp-
Plan (FIAP) drafted and agreed every three years.
content/uploads/2025/11/2025-G20-Summit-Declaration.
Co-chairs: India and Italy are the Co-Chairs of pdf. The declaration.) The Declaration captures the main
the GPFI. outcomes agreed during South Africa’s G20 Presidency
across both the Sherpa and Finance Tracks in 2025.
7. International Taxation: At the Antalya Summit
The Finance Track elements draw primarily from the July
in 2015, G20 Leaders stressed the need to prevent
2025 Finance Ministers and Central Bank Governors
base erosion and profit shifting and tasked OECD with
(FMCBG) Communiqué (https://g20.org/g20-media/3rd-
developing and implementing a new international taxation
finance-ministers-central-bank-governors-meeting/), the
agenda known as the Inclusive Framework on Base
October 2025 FMCBG Chair’s Summary (https://g20.
Erosion and Profit Shifting (BEPS). The work is focused
org/g20-media/chairs-summary-4th-finance-ministers-
on addressing Base Erosion and Profit Shifting issues in
central-bank-governors-meeting/), and the October 2025
international taxation; taxation of the digital economy; tax
Ministerial Declaration on Debt Sustainability (https://
transparency; tax avoidance; tax certainty and reforms
g20.org/g20-media/ministerial-declaration-on-debt-
of the international tax system. Presently, this work is
sustainability-4th-finance-ministers-central-bank-
anchored in the G20 by OECD Inclusive Framework on
governors-meeting/).
BEPS comprising 141 members. The work is reported
by the OECD directly to the G20 Finance Ministers and US G20 Presidency 2026
Governors. There is no working group under the G20
The United States of America assumed the G20
Finance Track on this agenda.
Presidency from December 1, 2025, for one year.
8. Joint Finance and Health Task Force was
Priorities
established during the G20 Rome Leaders’ Summit, 2021.
The Task Force is aimed at enhancing dialogue and global 1. The US G20 Presidency will refocus the Finance
cooperation on issues relating to pandemic Prevention track on the core global economic and financial stability
Preparedness and Response (PPR), promoting the topics the G20 was initially created to address.
exchange of experiences and best practices, developing
2. There will be three overarching themes across
coordination arrangements between Finance and Health
both the Sherpa and Finance Track:
Ministries, promoting collective action, assessing and
addressing health emergencies with cross-border impact, Economic Growth: Focus on boosting productivity
and encouraging effective stewardship of resources for and innovation to drive robust and enduring
economic growth and expand the frontier of
pandemic prevention, preparedness and response (PPR),
global prosperity.
while adopting a One Health approach.
Deregulation: Streamline and modernize
Co-chairs: The Task Force is co-chaired by Italy
regulatory frameworks to reduce unnecessary
and Indonesia and is assisted by a Secretariat housed at
burdens and foster economic activity and
the World Health Organisation (WHO), with the support
innovation.
of the World Bank.
Energy Abundance: Promote investments and
South Africa G20 Presidency 2025
policies that ensure affordable and reliable
South Africa assumed the Presidency of G20
energy supply to power global growth.
from Brazil on December 1, 2024, for one year. The South
African Presidency is centred on the theme “Solidarity, 3. Under the G20 Finance Track, there will be eight
Equality, and Sustainability” and has four overarching priorities for 2026 listed as under:
priorities: Promoting Global Growth
a. Strengthening disaster resilience and response Global Imbalances
Addressing Challenges to International Sovereign
b. Advancing debt sustainability for low-income
Debt
countries
Promoting a Vibrant Digital Assets Ecosystem
c. Mobilizing finance for a just energy transition
Modernizing Regulation to Promote Financial
d. Harnessing critical minerals for inclusive growth Stability and Growth
The G20 South Africa Summit was held on 22–23 Enhancing Cross-Border Payments and
November 2025 in Johannesburg, South Africa. Secretary Addressing Payments Fraud
(Economic Affairs) attended the meeting as part of the
Promoting Financial Literacy
official delegation of Hon’ble PM’s visit to South Africa for
the Summit. Monetary Policy in the Current Environment
44Department of Economic Aff airs I
The first G20 Finance and Central Bank Deputies 3. Cooperation on Customs and Tax
(FCBD) meeting under the US Presidency was held in 4. Infrastructure and Investments
person in Washington DC on December 15-16, 2025. The
5. BRICS Think Tank Network for Finance
Indian Ministry of Finance delegation was represented by
Additional Secretary, DEA.
Central Bank issues
II. BRICS 1. Contingent Reserve Arrangement (CRA)
BRICS is the acronym for an association of five 2. BRICS Rapid Information Security Channel
major emerging economies: Brazil, Russia, India, (BRISC)
China and South Africa. In 2023, this grouping 3. Transition finance, Sustainable development and
expanded to include Egypt, Ethiopia, Iran and climate transition
the United Arab Emirates. The key objective
4. BRICS Payments Task Force (BPTF)
of the BRICS group is to build South-South
5. Fintech research group (Innovation Hub)
cooperation and evolve a coordinated approach
to address common concerns of the developing 6. Platform for the BRICS central banks’ training
countries, such as international taxation, climate events & seminars
financing, reforms in the governance structure of
Joint Ministry of Finance and Central Bank issue
international financial institutions (IFIs) etc.
The Ministry of External Affairs is the nodal 1. Improvement of the International Monetary and
Ministry on BRICS. IER Division, DEA coordinates Financial System
on the BRICS Financial Cooperation agenda in
A. Global Economic Outlook and Multilateral
consultation with the Reserve Bank of India and
Cooperation
other key stakeholders.
The primary emphasis in this area has been
The rotating Chairship of BRICS was held by
on monitoring global and BRICS economic trends,
Russia in 2024 and Brazil in 2025. India has
identifying key risks to BRICS economies, and exploring
assumed the BRICS Chairship from January
opportunities for macroeconomic policy coordination.
2026.
Under this theme, the BRICS has explored a wide range
of policy issues over the years such as structural reforms,
BRICS Financial Co-operation
policy coordination to tackle global risks, stronger, greener
Financial Cooperation is one of the prominent
and more balanced global development etc.
areas of cooperation in the BRICS forum. Issues and
initiatives under the BRICS financial cooperation are dealt B. Co-operation on taxation matters
with by the Ministries of Finance and Central Banks of
Annual meetings of BRICS Heads of Tax
the BRICS nations and such issues are discussed during
Authorities and of Tax Experts are hosted by the
the meetings of BRICS Finance Ministers and Central
BRICS Chair. The outcome of the Experts’ meeting is
Bank Governors (FMCBG) assisted by their Finance and
presented before the BRICS Head of Tax Authorities who
Central Bank Deputies. Secretary (EA) is India’s BRICS
then finalise the action points to be reflected in a joint
Finance Deputy and Deputy Governor (RBI) is India’s
communiqué that is signed by all member countries. India
BRICS Central Bank Deputy.
is represented by Revenue Secretary in the Heads of Tax
Brazil BRICS Chairship 2025 Authorities meeting. There are several working groups
of tax experts which have 3-4 rounds of meetings during
Brazil took over the Chairship of the
the course of a year. During the year, surveys are also
BRICS from January 01, 2025 and hosted
conducted under these Working Groups by the leaders
the seventeenth annual BRICS summit in Rio de Janeiro,
and co-leaders of these Working Groups. The outcome
Brazil on 6–7 July 2025. The summit was held under the
document of these surveys and the year-round activities
theme “Strengthening Global South Cooperation and
culminated into a report of the Working Group which is
Promoting a More Inclusive and Sustainable Global
tabled during the Tax Heads Meeting. Reports of two such
Governance”, focusing on six major agenda items.
Working Groups were tabled at the BRICS Tax Heads
These included global health, trade, investment and
and Tax Experts Meeting 2025 in Manaus, Brazil.
development financing, climate change response,
governance of artificial intelligence, reform of the global C. Customs Co-operation
security architecture, and the institutional development
Customs cooperation between the BRICS
of the BRICS mechanism.
countries began to develop in 2012. In 2013, the First
Ministry of Finance Issues Meeting of the Heads of Customs Administrations of the
BRICS countries was held in South Africa. An annual
1. BRICS Economic Outlook
meeting of Heads of Customs Administrations is held
2. Improvement of International Monetary and each year along with 3-4 rounds of BRICS custom expert
Financial System meetings. There are several working groups of customs
45Annual Report 2025-2026
experts which have 1-2 rounds of meetings during the BRICS leaders’ summit, held in Rio de Janeiro, Brazil,
course of a year. from July 6–7, 2025. The BRICS Rio De Janeiro Vision
for IMF Quota and Governance Reform may be seen
CBIC engages in BRICS forum on work related at https://brics.br/en/documents/economy-finance-
to BRICS Custom framework which includes representing trade-and-infrastructure
India in the negotiation of draft text of plurilateral
Agreement on Customs Mutual Administrative Assistance F. New Development Bank
(CMAA). Other areas of customs cooperation include law The proposal to establish a BRICS (Brazil,
enforcement cooperation, capacity building, digitalization Russia, India, China and South Africa) Development
& intellectualization, administrative assistance and Bank was first mooted by India during the 4th BRICS
strengthening of cooperation among BRICS customs Summit held in New Delhi in March 2012 and was
training centers and encouraging establishment of BRICS reflected during the Durban Summit in 2012, under
Centers of Excellence. the Leaders’ declaration. The Inter-Governmental
Agreement on the New Development Bank (NDB) and
D. Task Force on Public Private Partnerships
the Articles of Agreement (AoA) were signed by the
(PPP) and Infrastructure
authorized signatories of the Governments of Brazil,
The Task Force on PPP and Infrastructure Russia, India, China and South Africa in the presence
(TFPPPI), established in 2018 under the co-chairship of Leaders during the 6th BRICS Summit in Fortaleza,
of China and South Africa, was mandated to enhance Brazil on July 15, 2014.
knowledge sharing and capacity building on PPPs, foster
The NDB was founded with the objective of
cooperation in training and consultation, and promote
mobilizing resources for infrastructure and sustainable
effective PPP models. Since its inception, the Task Force
development projects in the BRICS as well as other
has actively contributed in PPP matters by preparing
EMDCs of the world. The Bank was operationalized
technical reports on relevant themes and by providing
in 2015, with its Headquarters in Shanghai, China,
valuable inputs to strengthen PPP ecosystem in BRICS
and is currently led by Ms. Dilma Rousseff. India’s
countries. Each BRICS term generally includes a round
Governor in NDB Board of Governors is Hon’ble FM
of three Task Force meetings. India is being represented
and Secretary (Economic Affairs) is the Alternate
in these meetings by Joint Secretary (ISD), DEA.
Governor. India’s Director in NDB Board of Directors
E. Co-operation on IMF and World Bank is Additional Secretary (OMI).
governance and resource enhancement issues
Major outcome: Till March 31, 2025, a total
General Review of Quotas (GRQ) is conducted of 109 projects globally have been approved by
at regular interval of five years normally at the IMF. NDB, with financing of $36.80 billion. India is the
GRQ addresses two issues, namely the size of overall second largest borrower from NDB and accounts for
increase in quotas of IMF, and the distribution of the 25% of the total portfolio amount, with 28 projects
increase amongst members. Any change in quota must and an outlay of $ 9.13 billion. As on March 2025,
be approved by an 85 per cent majority of the total voting 20 Externally Aided Projects with loan amount of
power, and a member’s quota cannot be changed without $5.012 billion funded by NDB are ongoing in India.
its consent. On December 15, 2023, the 16th GRQ was The sectors being covered by such projects include
concluded which proposed a 50 percent increase in the Transportation Infrastructure for Urban Centres,
quotas of all Fund members, conditional on a reduction Integrated Water Conservation, Water Supply
(“rollback”) in the credit arrangements under the New and Flood Area Management, Improvement of
Arrangements to Borrow (NAB). Connectivity in Rural Areas, among others, which
align with India’s development priorities.
BRICS has been consistently raising a unanimous
voice for conclusion of GRQs by the agreed timelines. In G. BRICS Climate Finance
2025, pressing quota and governance reforms featured
Under its 2025 BRICS Presidency, Brazil
as one of the agenda items for discussion at the BRICS
advanced a forward-looking and ambitious agenda on
Finance Ministers and Central Bank Governors meetings.
climate finance, anchored in the Leaders’ Framework
Members reiterated that further quota realignment in
Declaration on Climate Finance. The agenda sought
the IMF should not come at the expense of developing
to strengthen collaboration among BRICS nations to
countries, reflecting countries’ relative positions in the
mobilise resources and align financial systems with
global economy, and increasing the shares of EMDEs.
the goals of sustainable and inclusive growth. Key
They stand ready to engage constructively with other
focus areas included the exchange of information
IMF members to guarantee that meaningful quota share
on national transition programs to facilitate peer
realignment and governance reforms are included in the
learning, mobilisation of finance for adaptation and
17th GRQ.
resilience, and sharing of experiences on developing
Brazil adopted the BRICS Rio De Janeiro Vision taxonomies and verification standards for sustainable
for IMF Quota and Governance Reform during the 17th finance. The discussions also emphasized enhancing
46Department of Economic Aff airs I
coordination among national development banks and the (IMFC) and the Development Committee (DC) as well
New Development Bank (NDB), promoting the use of as in other relevant International fora. Though originally
blended finance mechanisms, exploring carbon market named after the number of founding Member States,
cooperation under Article 6 of the Paris Agreement, and it now has 28 Members plus China, which has been a
addressing the economic implications of unilateral and Special Invitee since 1981.
protectionist measures imposed under environmental
The governing body of the G-24 meets twice
pretexts.
a year, preceding the Spring and Fall meetings of the
Brazil also led technical discussions on International Monetary and Financial Committee and the
interoperability among sustainable and climate Joint Development Committee of the World Bank and the
finance taxonomies across BRICS economies and the International Monetary Fund (IMF). The plenary G-24
establishment of a Carbon Markets Integration Initiative, meetings are addressed by the heads of the IMF and
aiming to enhance transparency, comparability, and the World Bank Group as well as by senior officials of the
collaboration across national systems. Brazil adopted United Nations (UN) System. Issues are first discussed
the Leaders’ Framework Declaration on Climate Finance by the Deputies and culminate at the Ministerial level by
the approval of a document that sets out the consensus
during 17th BRICS leaders’ summit, held in Rio de Janeiro,
view of member countries. The Ministerial document is
Brazil, from July 6–7, 2025. The Leaders’ Framework
released as a public Communiqué at a press conference
Declaration on Climate Finance may be seen at https://
held at the end of the meetings. Decision making within
brics.br/en/documents/economy-finance-trade-and-
the G-24 is by consensus.
infrastructure
The 114th G-24 Ministers and Governors Meeting
Major outcomes under Brazil’s BRICS Chairship
was held in Washington DC on 14 October, 2025 on the
Brazil issued the joint statement during the 1st
margins of the IMF and WBG Annual Meetings. The
BRICS Finance Ministers and Central Bank Governors outcome of the meeting was a communique.
(FMCBG) Meeting held on July 05, 2025, in Rio de Janeiro
and adopted the Leaders’ Declaration during 17th BRICS IV. OECD
leaders’ summit, held in Rio de Janeiro, Brazil, from The Organization for Economic Cooperation and
July 6–7, 2025 under the theme “Strengthening Global Development (OECD), founded in 1961, is a global think
South Cooperation for a More Inclusive and Sustainable tank that works on economic and development issues.
Governance”. The joint statement and leaders’ declaration Its members include several advanced economies and
may be seen at https://brics.br/en/documents/presidency- a few emerging market economies. All OECD members
documents are signatories to the 1960 Convention on the OECD and
are committed to democracy and market economy.
The fourth and last BRICS FCBD Meeting under
Brazilian Presidency was held virtually on 1st December Cooperation between India and the OECD
2025. The agenda of the meeting were to discuss updates covers a diverse range of issues such as taxation and
on the BRICS Think Tank Network for Finance (BTTNF), fiscal affairs, competition policy and financial education
Central Bank Issues including 2025 outcomes, and and literacy. The OECD has also brought out the OECD
updates on Ministry of Finance Issues. This was followed Economic Surveys of India. Till date, 5 Surveys have been
by Finance track handover ceremony to India for its published with the last one being released on December
incoming 2026 BRICS Presidency, where broad priorities 2019. During the year, IER Division coordinated on
on for India’s upcoming Presidency was unveiled. matters related to the OECD Fiscal Network, Economic
Policy Committees, and various other OECD references
India BRICS Chairship 2026
from MEA.
India has assumed the BRICS Chairship from
V. G7
January 1, 2026 under the theme ‘Building for Resilience,
Innovation, Cooperation and Sustainability (BRICS)’. The G7 Finance Ministers’ Meeting on Economic
Resilience was held virtually on December 08, 2025. The
III. G-24 meeting was attended by G7 Finance Ministers; Heads
The Intergovernmental Group of Twenty-Four of the IMF, World Bank, Financial Stability Board, and
on International Monetary Affairs and Development, or OECD; and Minister of Energy and Natural Resources
The Group of 24 (G-24) was established in 1971 as a Canada. The Indian Ministry of Finance was represented
chapter of the Group of 77 in order to help coordinate by Secretary (Economic Affairs).
the positions of developing countries on international
VI. SAARC & SDF
monetary and development finance issues, and to
ensure that their interests are adequately represented Framework on Currency Swap Arrangement for
in negotiations on international monetary matters. In SAARC Member Countries 2024-27
particular, the G-24 focuses on issues on the agendas
The Union Cabinet approved the new ‘Framework
of the International Monetary and Financial Committee
on Currency Swap Arrangement for SAARC Countries
47Annual Report 2025-2026
2024-27’ on June 19, 2024. The new Framework replaced of Finance coordinates issues related to financial
the ‘Framework on Currency Swap Arrangement for cooperation under ASEAN.
SAARC Countries 2019-22.’ The Framework on Currency
IX. United Nations Development Programme
Swap Arrangement for the SAARC countries has been in
(UNDP)
place since 2012 to provide SAARC countries with a line
of funding for short-term foreign exchange requirements. India’s annual contribution to the UNDP is US $ 4.5
million for the year 2025, which is one of the highest among
Under the new Framework, a separate INR
developing countries. The Country Programme Document
SWAP Window of ₹25000 crore is introduced, in addition
(CPD) of the UNDP is guided by UNDP Strategic Plan &
to the existing USD/Euro SWAP Window of USD 2
UN Sustainable Development Cooperation Framework
billion, to encourage drawals in INR and to promote the
(UNSDCF). Three programmatic priority areas under CPD
internationalisation of the Indian Rupee. During FY 2025–
(2023-27) are: (a) Strong, accountable, and evidence-led
26, Bhutan rolled over INR 15 billion from the previous
institutions for accelerated achievement of SDGs; (b)
year and availed another INR 15 billion in May 2025,
Enhanced economic opportunities and social protection
which was subsequently rolled over in November 2025.
to reduce inequality – with a focus on the marginalized;
The Maldives rolled over USD 400 million, initially availed
(c) Climate Smart Solutions, Sustainable Ecosystems
in October 2024, in April 2025 and again in October 2025.
and Resilient Development for reduced vulnerability.
In the financial year 2025-26, 7 projects with UNDP as
SAARC Development Fund
implementing agency, were approved by Local Project
SAARC Development Fund (SDF), headquartered
Appraisal Committee (LPAC) of DEA as of December 2025.
in Thimphu, Bhutan, was established and inaugurated in
2010 by the SAARC Member countries (Afghanistan, X. United Nations Office for Project Services
Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and (UNOPS)
Sri Lanka) to promote the welfare of people of the SAARC
UNOPS is a separate, self- financing entity within
region, to improve their quality of life and to accelerate
the UN development system, which was established in
economic growth, social progress and poverty alleviation
1995. UNOPS is mandated to expand implementation
in the SAARC region. The Fund serves as the umbrella
capacity across peace and security, humanitarian, and
financial institution for SAARC projects and programmes.
development efforts. Through its project services —
It is aimed to contribute to regional cooperation and
including infrastructure, procurement, project management,
integration through project collaboration. The projects that
human resources, and financial management services —
the SDF aims to fund fall under three broad categories/
UNOPS supports the governments, the United Nations,
windows namely, Social, Economic and Infrastructure.
and other partners in achieving member States’ global
In India, IER Division of Department of Economic Affairs,
development goals, and local objectives. UNOPS projects
M/o Finance is the Counterpart Agency for all SDF related
are approved by the Project Approval and Monitoring
matters.
Committee (PAMC) housed in DEA.
VII. BIMSTEC
XI. Financing for Development (FfD)
Bay of Bengal Initiative for Multi-Sectoral
FfD is an important process in global efforts to
Technical and Economic cooperation (BIMSTEC), a
pursue the 2030 Agenda through mobilizing development
regional organization, came into being on 6th June 1997
financing. The 3rd International Conference on Financing
through the Bangkok Declaration. It comprises of seven
for Development (FfD3) was held in Addis Ababa in 2015.
Member States lying in the littoral and adjacent areas of
The Fourth International Conference on Financing for
the Bay of Bengal- Bangladesh, Bhutan, India, Nepal,
Development (FfD4) was held from June 30 to July 03,
Sri Lanka, Myanmar and Thailand. IER Division of DEA,
2025 at Spain. India was represented by DEA in FfD4
Ministry of Finance coordinates issues related to financial
meetings. The Hon’ble Finance Minister participated in
cooperation under the BIMSTEC Forum.
FfD4 and delivered the Plenary statement. The outcome
VIII. ASEAN document viz ‘Compromiso de Sevilla’ was adopted by
member countries at the 4th International Conference on
The Association of Southeast Asian Nations, or
FfD4 and later endorsed by the United Nations General
ASEAN, was established on 8 August 1967 in Bangkok,
Assembly. The Outcome document consists of 7 action
Thailand, with the signing of the ASEAN Declaration
areas namely – (a) Domestic Public Resources; (b)
(Bangkok Declaration) by the Founding Fathers of
Domestic and international private Business & Finance (c)
ASEAN: Indonesia, Malaysia, Philippines, Singapore and
International Development Cooperation and Development
Thailand.
effectiveness (d) International Trade as an engine
ASEAN currently has eleven member states: for Development (e) Debt and Debt sustainability; (f)
Brunei Darussalam, Cambodia, Indonesia, Lao PDR, International Financial Architecture and Systemic Issues;
Malaysia, Myanmar, Philippines, Singapore, Thailand, and (g) Science, Technology, Innovation and Capacity
Timor-Leste, and Vietnam. IER Division of DEA, Ministry building.
48Department of Economic Aff airs I
10. Aid Accounts & Audit Division IS0 9 001-2000 certified account establishments in the
Government of India.
(AAAD): -
10.2 Performance/Achievements during the
10.1.1 Aid Accounts and Audit Division (AA&AD) of the
Financial Year 2025-26 (As on 30th November,
Department of Economic Affairs, Ministry of Finance is
2025)
responsible for disbursement of Loans/Grants received
from Multilateral/Bilateral funding Agencies (MDBs/BAs), 10.2.1 Total of 1443 live/active loans/accounts are being
debt servicing of loans of MDBs/BAs and accounting of handled by Aid Accounts & Audit Division. Out of these,
external assistance. Besides, AAAD is also responsible 456 Loans/Grants accounts are in disbursement mode.
for preparation of the External Assistance Budget (both Rest of the loans are live/active for debt servicing point
for receipts and payments) for Government loans/credit/ of view.
grants.
10.2.2 External receipts of Loans on Government
10.1.2 Further, AAAD is also responsible for maintaining Account during financial year 2025-26 (upto 30th
loan records, publishing External Assistance Brochure November, 2025) are ₹ 56,318 Crore. In addition to loan
on an Annual basis and Web-publication of Sovereign receipts, a sum of ₹ 730 Crore has been received as Cash
external debt portfolio. Additionally, AAAD conducts Grant.
audits of export promotion schemes authorizations run
10.2.3 A comparative position of receipts and repayment/
by the DGFT.
payment in the current year as compared to previous
10.1.3 Aid Accounts & Audit Division is one of the few financial year and upto 30th November, 2025 is as under: -
₹ In Crores
Sl. No Description 2024-25 (as on 31st 2025-26 (as on 30th Projections as per RE (For the
March, 2025) November, 2025) period 12/2025 to 03/2026)
1 Receipts (Loans and 109,454 57,048 55936
Grants)
2 Payments 89,600 62,994 38479
(Principal and Interest)
3. Net Transfer (1-2) 19,854 -5,946 17,457
10.3 Audit of Import Authorization & DGFT’s Export assess the realisation of foreign exchange by advance
Promotion Schemes authorization holders and ensure compliance with export
obligations, in accordance with the terms and conditions
10.3.1 In line with the recommendations of the
of the respective schemes.
Shri V.K.R.V. Rao Committee, a Departmental Audit
Branch was established in DEA in 1963 under the 10.3.3 AA&AD carries out audit of Import authorization
Chief Auditor of Foreign Exchange to conduct audits for promotion of Export of goods issued by Offices
of various import authorization issued under Export of the Director General of Foreign Trade located at
Promotion Schemes on a sample basis. Over the time, 24 cities across the country.
this responsibility was transferred to Aid Accounts &
10.3.4 As a result of settlements, a sum of ₹ 22,17,776/-
Audit Division.
has been recovered from various firms till 30th November,
10.3.2 The primary focus of audits by AA&AD is to 2025.
49Annual Report 2025-2026
11. Administration Division against the disposal of grievances were received and 135
Appeals were disposed of. Adviser (Admin.) is functioning
11.1 Functions
as the Nodal Officer for Public Grievances in Department
11.1.1 Administration Division is responsible for of Economic Affairs.
personnel and office administration, implementation
11.6 Right to Information Act, 2005
of Official Language policy of the Government,
implementation of the Right to information Act, 2005, In order to facilitate dissemination of information
redressal of public grievances, training of officials, Record under the provisions of Right to Information Act, 2005,
Retention Schedule, Complaints Committee on Sexual Department of Economic Affairs has taken the following
Harassment of Women Employees etc. Administration actions:
Division is also responsible for framing of Recruitment
(i) An RTI Section is in operation in DEA to facilitate
Rules for ex-Cadre posts and recruitment in such posts
the applicants with the reply/information to their
in Department of Economic Affairs.
RTI applications under the RTI Act, 2005 through
11.2 Staff Strength Central Public Information Officers/ Appellate
Authorities/ Public Authorities concerned and
The staff strength in Department of Economic
to submit the quarterly returns regarding receipt
Affairs and its attached/subordinate offices/ statutory
and disposal of the RTI applications/ appeals to
bodies along with the representation of Scheduled Castes
the Central Information Commission.
(SCs), Scheduled Tribes (STs), Other Backward Classes
(OBCs) and persons with Disabilities therein is given in (ii) In 2025, as per the proactive disclosure of
Annexure I & II respectively. information guidelines under Section 4 of the
RTI Act, 2005, information was uploaded on the
11.3 Complaints Committee on Sexual Harassment
Department’s website (www.dea.gov.in). It also
of Women Employees
contains the details of the Department’s functions
A Complaints Committee in Department of along with its functionaries etc. as required under
Economic Affairs for considering complaints of sexual section 4(1)(b) of the RTI Act, 2005.
harassment of women employees has been re-constituted
(iii) Under Secretaries/ Deputy Directors/ Assistant
vide OM No. A-60011/1/2022-Admn.III dated 19.09.2024,
Directors/ Sr. Accounts Officers/Section officers
which was partially modified consequent upon the transfer
and Economic Officers level officers of the
of one of the members vide OM No. A-60011/1/2022-
Department have been designated as Central
Admn.III dated 18.09.2025.
Public Information Officers (CPIOs) under section
11.4 Training of Staff Members 5(1) of the Act, 2005 in respect of subject(s) being
handled by them.
Department of Economic Affairs deputes its
officials for training to ISTM and other institutes to
(iv) Deputy Secretaries/Joint Director/ Directors level
increase their efficiency and bring out improvement in
officers have been designated as First Appellate
the quality of their work. During the period 01.01.2025
Authorities in terms of Section 19(1) of the Act,
to 31.12.2025 a total of 115 officials were nominated for
2005, to deal with the Appeals preferred by
the trainings of different levels, which were conducted by
applicants who aggrieved/not satisfied by the
ISTM, New Delhi and other government institutes.
information/reply furnished by the Central Public
11.5 Redressal of Public Grievances: Information Officers (CPIOs).
A Centralized Public Grievances Redressal and (v) The list of CPIOs and First Appellate Authorities
Monitoring System (CPGRAM) is operational within the is updated and uploaded from time to time on the
Government which attends to all the Public Grievances website of DEA for the information of General
related to various Ministries/ Departments. During the year Public. The RTI Cell is functioning at 5th Floor,
2025, 3024 fresh public grievance cases were received A-Wing, Kartavya Bhavan-I to receive the RTI
in the Department besides 403 brought forward from applications. The applications received are
the previous year. Out of these 3427 cases, 3024 cases further forwarded to the CPIOs/ Public Authorities
were disposed of during the year. Further, 160 Appeals concerned.
50Department of Economic Aff airs I
(vi) The RTI application can be filed through online Mill, Narmadapuram; Government of India Mint, Kolkata;
portal www.rtionline.gov.in. The RTI applicants Securities and Exchange Board of India, Kolkata; Security
can see the status of their application as well Printing Press, Hyderabad; Government of India Mint,
as the reply/information furnished by the CPIO Hyderabad; Government of India Mint, Mumbai and
through the website. These all processes have Securities and Exchange Board of India, Mumbai have
resulted in significant reduction in processing of been done by Senior officers and staff of the Department
RTI applications. of Economic Affairs during April 2025 to November 2025
and the status of use of Hindi as the Official Language
(vii) During the year 2025 from January 1, 2025
was reviewed.
to December 10, 2025, total 3096 (No.s) RTI
applications and 80 (No.s) first appeals, were (iii) Dispatch of Quarterly Progress Report
received in the Department. An amount of Rs.
Quarterly progress reports were received from
2130/- (Rupees Two Thousand One Hundred
all the Sections/Divisions of the Department. Hindi
Thirty only) was received as RTI fees and
correspondence of the Department of Economic Affairs
Documents fee under the RTI Act.
remained about 55.37%. The consolidated Quarterly
11.7 Use of Hindi in Official work Progress Reports and Annual Assessment Report were
sent to the Department of Official Language, Ministry of
During the year 2025-26 the progress of
Home Affairs in due time.
implementation of the Official Language Policy is being
continuously reviewed. (iv) Meetings of the Official Language
Implementation Committee
All documents have been presented bilingually
in the Parliament. Official Language Act, 1963; Official To review the status of Official Language
Language Rules, 1976 and all other instructions issued implementation in the Department, meetings of the Official
by the Department of Official Language have been duly Language Implementation Committee were organized
followed. During the year under report, several steps
during the year 2025-26. Heads of various Sections and
have been taken in the Department to increase the use
Divisions attended these meetings.
of Hindi in official work.
(v) Circulation of Annual Programme
The activities related to Official Language
undertaken in the Department during the year under The Annual Programme for the year 2025-26
review are as follows: released by the Department of Official Language, Ministry
of Home Affairs was circulated to all the Divisions/
(i) Organization of Hindi Fortnight
Sections of the Ministry including subordinate offices
Like other years, this year also “Hindi Fortnight” and its online link was placed on the dashboard in the
was organized in the Department of Economic Affairs e-Office for information of the officers/employees of the
during September, 2025. While issuing message on the Ministry so that the targets fixed by the Department of
occasion of “Hindi Diwas” on September 14, 2025, the Official Language could be achieved.
Hon’ble Minister of State for Finance appealed to the
(vi) Hindi Workshop
officers and officials of the Ministry of Finance and officers
of offices under its control to do official work in Hindi. In A workshop on “Use of e-tools to promote working
order to create a conducive environment for promoting in Hindi for the official purpose with technology support”
the use of Hindi in the Department, various competitions was organized in the Department on 26.06.2025 in
were conducted in which officers/employees of various which senior officers and employees of the Department
Divisions/ Sections of the Ministry participated with great participated and benefitted.
enthusiasm.
(vii) Translation Work
(ii) Official Language Inspection
In addition to implementation of the Official
Inspection of subordinate offices: In order to Language Policy of the Union, extensive work related
achieve the target set in the annual program of the official to translation was carried out in the Hindi Section of
language department, inspection of eight subordinate the Department of Economic Affairs. This extensive
offices viz. Bank Note Press, Dewas; Security Paper work included many important documents. Translation
51Annual Report 2025-2026
of government documents, specified in the Official to e-journals and back-filed collection through JSTOR is
Language Act, 1963 and the rules made thereunder, also available.
were also successfully completed by the Hindi Section
(ii) Services
during the year 2025-26. These include all budget-
related documents, annual reports, agreements with Finance Library provides different kinds of
foreign governments and international agencies, Cabinet services viz. lending, interlibrary loan, consultation,
Notes, parliamentary questions-answers/assurances, reprographic, circulation of newspapers and magazines,
notifications, Standing Committee related work, action reference service, current awareness service through
taken reports, monthly summary for the Cabinet “WEEKLY BULLETIN” as well as providing services
Secretariat, Government letters and foreign financing through e-mail and also extended the services of
reports. All these tasks include translation, typing and e-governance.
vetting as well as proofreading.
The Finance Library also undertakes the work
(viii) Hindi Advisory Committee of distribution of publications of Ministry of Finance and
Reserve Bank of India to State Governments, Foreign
A meeting of the joint Hindi Advisory
Governments and renowned institutions in India as well as
Committee of the Department of Economic Affairs, the
abroad. A useful links is also provided on intranet by the
Department of Financial Services and the Department
Library which helps the readers in search and download
of Public Enterprises was held on 10.12.2025 under the
full text of national and international reports and data.
Chairmanship of Shri Pankaj Chaudhari, Hon’ble Minister
(iii) Publications
of State (Finance).
Finance Library brings out two (print + online)
11.8 Finance Library & Publication Section
publications i.e. “Weekly Bulletin” and “Current contents.
11.8.1 Finance Library & Publication Section was
(iv) Digital Records
established in 1945. Finance Library functions as the
Central Research and Reference Library in the Ministry Indian Official Documents relating to Economic and
and caters to the needs of Officials of all the Departments Finance Subject (Center and State since independence)
of the Ministry of Finance, Ad-hoc Committees and and Ministry of Finance Gazette Notifications published
Commissions set from time to time and research scholars in the Pt. 2 Sec. 3 Sub-section (i) (ordinary) for the year
from the various Universities in India as well as abroad. 1955 to 1990 has been digitized. So far around 02 TB
Data has been digitized and available in digital format.
11.8.2 This Library also serves as the Publications
Section of the Ministry, coordinating in the procurement (v) Computerisation
and distribution of official documents with the various
The Library uses LIBSYS & KOHA Library
institutions/ individuals on demand in India and abroad.
package for database management, retrieval, Library
11.8.3 A Publication Cell vide O.M. No.F.1 (1) — automation and other in-house jobs. The internet facility
Ly/59 dated the 2nd April, 1959 was created and later is also available in the Library through which information
integrated with the Library forming the Finance Library is provided to the Officers of Ministry of Finance.
and Publication Section.
(vi) OTHER WORKS
Finance Library has been categorized as Grade Ill Library
i. Modernization and infrastructure improvement
on the basis of Department of Expenditure’s O.M. No.
was undertaken by the Library.
19(1)/IC/85 dated 24.07.1990. All the posts in the Library
ii. The work of reimbursement of newspapers and
are ex cadre posts.
magazines of DEA is also undertaken by the
(i) Collection Finance Library.
Finance Library has specialized collection of iii. This Library also serves specifically as the
around two lakh documents on Economic and Financial Publications Section of the Ministry; coordinating
matters and subscribe to more than 800 periodicals/ in the procurement and distribution of official
newspapers annually and databases like Agriwatch, documents with the various institutions/
CMIE, Jus Mundi, Bloomberg, Grammarly and access individuals on demand in India and abroad.
52Department of Economic Aff airs I
12. Bilateral Cooperation Division A. Bilateral Official Development Assistance
Policy:
12.1 Bilateral Cooperation Division deals with the
12.2 India has been accepting external financing
following functions:
from bilateral partners in the form of loans, grants and
technical assistance for development of infrastructure,
a. Bilateral Official Development Assistance
social sector and for enhancement of knowledge/skills of
Policy: Bilateral Development Assistance from
Indian nationals at both Centre and States level. As per
all G-8 countries, namely, USA, UK, Japan,
the guidelines issued by this Department in 2005, bilateral
Germany, France, Italy, Canada and Russian
development assistance can be accepted from the then
Federation as well as the European Union and
G-8 countries, namely USA, UK, Japan, Germany,
Republic of South Korea and the policy relating France, Italy, Canada and the Russian Federation as
to it. well as from the European Commission. European
Union countries outside the G-8 can also provide
b. Concessional Credit extended by Government
bilateral development assistance to India, provided they
of India to partner countries under Indian
commit a minimum annual development assistance of
Development and Economic Assistance USD 25 million. A revised set of guidelines on Official
Scheme (IDEAS) through Lines of Credit and Development Assistance for Development Cooperation
Concessional Finance for strategic overseas with bilateral partners were issued in December, 2015.
infrastructure projects. After issuance of revised guidelines, the Republic of South
Korea has been recognized as bilateral partner country
c. Economic Policy Dialogues and Forums: BC for accepting Official Development Assistance from them.
Division deals with following dialogues/meetings
12.3 Bilateral Development Cooperation with
India-UK Economic and Financial Dialogue Japan
India-US Economic and Financial Partnership 12.3.1 Japan-Official Development Assistance:
12.3.1.1 Japan has been extending Official Development
Indo-French Bilateral Dialogue on Economic and
Assistance (ODA) to India since 1958. Japanese ODA
Financial Issues
in the form of loan assistance, grant aid and technical
India-Korean Finance Minister’s Meeting assistance to India is received through Japan International
Cooperation Agency (JICA). Japan is the largest bilateral
India- Japan Strategic Dialogue on Economic donor to India.
Issues,
12.3.1.2 As on November 30, 2025, 66 ODA loan
India-Japan Finance Dialogue projects are under implementation with Japanese
assistance. The loan amount committed for these
India- Switzerland Financial Dialogue
projects is 3648.96 billion Yen (Rs. 2,21,347.73 crore
India-EU Macro-economic Dialogue approx.). The cumulative commitment of ODA loan to
India has reached JPY 8.4 trillion on commitment basis
India-China Financial Dialogue till November 30, 2025.
India- Australia Economic Policy Dialogue 12.3.1.3 The ODA loan disbursement to India from april
1, 2025 to November 30, 2025 was JPY 274.43 billion
India-New Zealand Economic Policy Dialogue
(Rs. 16175.10 crore approx.).
India-German Finance Ministry Senior Officers
12.3.2 Grant in Aid
Meeting
12.3.2.1 The Government of Japan provides Grant in
India-Korea Working Group Meeting Aid to India under the following sectors and criteria:
d. Foreign Training Courses/Programmes: The i) Criteria:
Division is the focal point for administering all a) Development impacts;
short-term foreign training courses of the duration
b) Utilization of Japanese technology/know-how
up to four weeks offered by various international and likelihood of its dissemination to other
agencies. areas.
53Annual Report 2025-2026
ii) Sectors: 12.3.4.2 During 1st April 2025 to 30th November 2025,
12 proposals were posed to Embassy of Japan and No-
a) Transport sector, including projects using
objection to 03 Volunteers were issued.
information and communication technology
(ICT) and road projects with slope protection 12.3.5 JICA Partnership Programme
measures (potential line ministries could
12.3.5.1 Recognizing the growing importance of NGOs
include Ministry of Road Transport and
in international cooperation, the JICA Partnership
Highways, Ministry of Housing & Urban
Programme (JPP) was introduced in 2002. JPP is a
Affairs, etc.)
technical cooperation program implemented by JICA
b) Power sector, including small-scale hydro to contribute to the social and economic development
power projects and solar power projects of developing countries at the grass-roots level, in
(potential line ministries could include collaboration with partners in Japan, such as NGOs,
Ministry of Power, Ministry of New and universities, local governments and public interest
Renewable Energy, etc.) corporations while applying for JPP, Indian NGOs are
advised to seek a Japanese partner to take part in the
12.3.2.2 There are four (4) ongoing Grant-in-Aid projects
scheme. This has two components:
viz. (a) The Project for Implementation of Advanced
Information and Management System in Core Bengaluru i. Japanese NGO / Institution / Local Government
(b) The Economic and Social Development Programme through JICA will support Indian organization with
(Provision of Medical Equipment) (c) Improvement of Japanese expert personnel, equipment provision
and Financial support through FCRA route;
Power Supply in Andaman and Nicobar Islands and (d)
Human Resource Development Scholarship (JDS).
ii. Japanese NGO / Institution / Local Government
through JICA will provide training of Indian
12.3.3 Technical Cooperation Programme
personnel in Japan.
12.3.3.1 Technical Cooperation aims at transfer of
12.3.6 Grassroots Funding
technology and knowledge in a bid to develop and
improve human resources and thus contribute to the
12.3.6.1 The Government of Japan also provides small
Socio-Economic Development of India. The Technical
assistance to Indian NGOs under its Grassroots Funding
Cooperation covers a broad spectrum of fields ranging Programme through FCRA route on receipt of no objection
from basic human needs to Agriculture and Industrial from DEA.
Development.
12.3.7 Green Aid Plan
12.3.3.2 The main components of Technical Cooperation
12.3.7.1The Government of Japan (Ministry of Economy,
are (i) Technical Cooperation Projects, (ii) Technical
Trade and Industry) provides technical assistance under
Cooperation by Experts, (iii) Technical Cooperation by
Green Aid Plan through agencies like New Energy
Training, (iv) Technical Cooperation by Development
and Industrial Development Organization (NEDO), an
Planning.
organization of METI. The areas of cooperation are
12.3.3.3 There are 19 ongoing projects under Technical prevention of water pollution, air pollution, treatment
Cooperation Programme. of wastes and recycling and energy conservation and
alternative energy source. Model projects are carried
12.3.4. JOCV Programme
out by NEDO on the basis of the MoU signed by NEDO
12.3.4.1 JICA’s volunteer programs, such as Japan with Department of Economic Affairs, the concerned line
Overseas Cooperation Volunteer (JOCV), support a wide ministry and the implementing agency.
range of local activities by Japanese citizens who intend to
12.4 B ilateral Development Cooperation with
cooperate in the economic and social development as well
Germany
as in the reconstruction of emerging countries. Through
these cooperation activities, participating volunteers can, 12.4.1 Germany, through their Ministry for Economic
not only contribute to the development of partner countries Cooperation & Development (BMZ), has been providing
but also gain valuable experience in terms of international both financial and technical assistance to India since 1958.
goodwill, mutual understanding and an expansion in their In 2008, the German Ministry for the Environment, Nature
international perspectives. Conservation and Nuclear Safety (BMUB) also initiated
54Department of Economic Aff airs I
assistance under German Government’s ‘International 12.5 Bilateral Development Cooperation with AFD,
Climate Protection Initiative (IKI)’, which is an additional France
instrument for the assistance of the German Government 12.5.1 The Government of France has been extending
over and above and without undermining the existing development assistance to India since 1968.
sources of Official Development Assistance. Priority areas
12.5.2 In 2006, Government of France proposed to
of Cooperation includes: Energy, Sustainable Urban
provide untied development assistance to India through
Development as well as Environment and Management
the French Agency for Development (AFD). In this regard,
of Natural Resources.
an inter-governmental Agreement was signed between
12.4.2 Germany implements its financial assistance the two Governments on 25.01.2008 during the State
programmes through KfW, the German Government’s visit of French President Mr. Nicholas Sarkozy to India.
Development Bank. The technical assistance programmes
12.5.3 AFD has been entrusted with a strategic mandate
are implemented through GIZ (earlier GTZ) - a fully-owned
tailored to the Indian Government’s priorities. It is
corporation of German Government. Financial Assistance
implemented through three main focuses for cooperation:
is provided as Reduced Interest Loan (EURIBOR-
Promote sustainable and integrated urban development;
based loan) as well as Financing grants. The technical
Encourage energy efficiency and renewable energy
assistance is provided in the form of grant and services
development; Conserve the country’s biodiversity and
by project experts.
natural resources.
12.4.3 In May, 2022, Hon’ble Prime Minister of India
12.5.4 Since 2008, total net cumulated financing by
and German Chancellor Mr Olaf Scholz Pursuant signed
AFD amounts to EUR 3.3 billion. This financing was
the Joint Declaration of Intent on Green and Sustainable
provided through ODA- compliant loans, on a sovereign
Development (GSDP). Under GSDP, Germany has
and non-sovereign basis. On an average AFD makes
committed to make Euro 10 billion of new and additional
annual commitment of Euro 250 million. Major areas of
commitments till 2030 for supporting India’s climate and
ongoing cooperation are in the field of:
sustainable development goals. Accordingly, till date
i. Cooperation in the field of public transport sector;
Germany has committed Euro 4.889 billion, including
1.242 billion committed during Indo-German Annual ii. Smart City Mission;
Negotiation Meeting held in December, 2025. iii. Water, Environment and Biodiversity sector.
12.4.4 Under bilateral development cooperation 12.5.5 At present, there are 21 ongoing loans for Euro
programme two annual meetings i.e. Indo-German Annual 1.6 billion with financial assistance from AFD.
Consultations and Indo-German Annual Negotiations are
12.5.6 French Government also provides technical
held, generally during 2nd quarter and 4th quarter of the
assistance in the form of FASEP facility Scheme. FASEP
year respectively. In the Annual Consultations, apart from
facility is managed by the Treasury and Economic Policy
the policy issues, the discussion on ongoing projects and
General Directorate of the French Ministry of Economy,
new projects and review of ongoing projects are made.
Finance and Industry. Under this facility, grants are
In Annual Negotiations, the Government of Germany provided to finance technical cooperation in the area of
makes commitments of funds for new projects as well as infrastructure projects (water, sanitation, solid waste,
for additional funding for ongoing projects. On an average environment, transport, energy).
Germany makes an annual commitment of Euro 1 billion.
12.6 Development Cooperation between India and
The Indo-German Annual Negotiation meeting 2025 was
European Union
held in New Delhi on 5th December 2025. The volume of
12.6.1 The European Union (EU) provides development
funds committed by the German side for Technical and
assistance to India in the form of Grants. The priority areas
Financial Cooperation projects and programmes in 2025
include environment, public health and education. Since
amounts to EUR 1,242.05 million.
2014, the financial component of development assistance
12.4.5 At present, there are 47 ongoing projects receiving from EU was discontinued, however technical cooperation
external financing/loans from KFW aggregating Euro and exchange of best practices remains active in three
6.47 billion from Germany. The cumulative volume of lines (i) in areas of mutual interest (ii) in areas relevant
commitment made by the Germany for bilateral Technical to the Sustainable Development Goals with civil society
and Financial Cooperation till 2025 amounts to EUR organizations and (iii) at a regional level to address global
26.62 billion. challenges.
55Annual Report 2025-2026
12.6.2 External Financing in India by European 12.7.3 International Development Research Centre
Investment Bank (EIB) (IDRC)
12.7.3.1 The Canadian bilateral development assistance
12.6.2.1 The European Investment bank is the European
to India is received through IDRC - an entity created and
Union’s financing institution which was established in
funded by the Parliament of Canada. IDRC supports
1958 under the treaty of Rome (1957) to provide financing
research activities in developing countries to promote
for capital investment. The members of the EIB are the
growth, reduce poverty, and drive large-scale positive
member States of the European Union, who have all
change. In India, IDRC extends grant assistance to
subscribed to the Bank’s capital. Outside the European
various Govt. and Non-Govt. organizations for research
Union, EIB financing operations are conducted principally
projects in the field of agriculture, health and family
from the Bank’s own resource but also, under mandate,
welfare, etc
from Union or Member States’ budgetary resources.
Under these arrangements, the EIB’s funds are utilized to 12.8 Bilateral Development Cooperation with the
finance investments in countries signatory to Cooperation United Kingdom
Agreement with the EU.
12.8.1 The United Kingdom (UK) has been providing
12.6.2.2 EIB’s activities in India is anchored by the Joint development assistance to India since 1958. Development
Action Plan (JAP) of the Strategic Partnership between the assistance from UK was received mainly for achieving
EU and India. EIB aims to increase its lending activities the Millennium Development Goal (MDG) in the areas
of health, education, administrative reforms, slum
focusing mainly on environmental sustainability and large
development etc.
infrastructure project through FDI, transfer of technology
and know-how. EIB investments in India are governed
12.8.2 The assistance from the UK, through its Foreign,
by the Framework Agreement for Financial Cooperation.
Commonwealth and Development Office (FCDO),
This agreement was signed between India and EIB on erstwhile Department for International Development
25th November 1993 by the Charge d’ Affairs of India at (DFID), flows to mutually agreed government projects
Brussels. The Framework Agreement was initially valid and programmes in the form of investment and technical
for a period of three years and later it was extended sine assistance. FCDO also provides assistance through
die vide amendment dated 24th November 1998. multilateral agencies, namely World Bank, ADB and
UNICEF as well as through civil society programmes.
12.6.2.3 During the year, three Finance Contracts were
Initiative under the Bilateral Development Cooperation
signed between DEA and EIB for the following projects:
with the United Kingdom include launching of Green
a. Uttarakhand Water and Sanitation (USD 191 Growth Equity Fund (GGEF), a joint investment for
million) signed in July 2025 promoting green investments in India, by National
Investment and Infrastructure Fund (NIIF) in collaboration
b. Pune Metro Rail Project E (EUR 49.5 million)
with FCDO, UK in 2018. FCDO, UK is also implementing
signed in August 2025
joint investment programmes in collaboration with SBI to
promote climate friendly investment in India.
c. Pune Metro North and South Extension (EUR
235 million) signed in December 2025
12.9 Bilateral Development cooperation with
Republic of Korea
12.7 Bilateral Development Cooperation with the
USA and Canada: 12.9.1 In the Joint Statement for Special Partnership
signed during the Prime Minister’s visit to Republic of Korea
12.7.2 United States Trade and Development Agency
(RoK) during May 18-19, 2015, it was agreed to upgrade
(USTDA)
the bilateral relationship between the two countries to a
12.7.2.1 USTDA promotes economic growth in emerging ‘Special Strategic Partnership’ and to expand it into a
economies by facilitating the participation of U.S. wide range of areas. Accordingly, RoK was accepted
businesses in the planning and execution of priority as bilateral partner for development cooperation during
development projects in host countries. During the October, 2016. In the 5th India-Korea Finance Minsters’
current FY, USTDA is supporting technical cooperation/ Meeting held on June 14, 2017 in Seoul, an Economic
assistance worth USD 1.25 million (approx.) for a Development Cooperation Fund (EDCF) Agreement was
project for the further development in master planning of signed between the two Governments for US$ 1 billion
Integrated Aviation Hub in Hisar. Official Development Assistance (ODA) to India.
56Department of Economic Aff airs I
12.9.2 During 2024-25, the technical Cooperation for 12.11.2 India-EU Macroeconomic Dialogue
the project proposal titled “Strengthening Vocational
12.11.2.1 The 12th India-EU Macroeconomic dialogue was
Education and Training in Mechatronics in India” was
held on 20.02.2024 virtually through video conferencing.
signed between Government of India and Government
Both sides discussed topics of mutual areas of interest
of Republic of Korea on 20th Jan 2025.
which included macroeconomy, climate change,
B. Concessional Credit extended by Government green and digital transitions and priorities for the G20
of India under Indian Development and Presidency. The deliberations fostered rich exchange of
Economic Assistance Scheme (IDEAS). insights on key fiscal and structured reforms and avenues
for enhancing India-EU macroeconomic Cooperation.
12.10.1 Lines of Credit (LoCs) form an important
component of India’s diplomatic strategy and have 12.11.3 India-Switzerland Financial Dialogue
been very useful in generating goodwill and building
12.11.3.1 The 5th India-Switzerland Financial Dialogue
long term partnerships. GoI extends Lines of Credit to
was held on 20th March 2024 through virtual platform.
Developing African and Non-African Countries through
The Indian delegation was led by Shri Ajay Seth,
Indian Development and Economic Assistance Scheme
Secretary, Department of Economic Affairs and the
(IDEAS). With the approval of the Cabinet, the Indian
Switzerland delegation was led by Ms. Daniella Stoffel,
Development and Economic Assistance Scheme (IDEAS)
State Secretary for International Finance. The dialogue
have been revamped and continued till 31 March, 2026,
facilitated discussions and exchange of views in areas
or till further review, whichever is earlier.
of mutual interest such as investments, infrastructure
financing, Digital Financial Services Collaboration &
12.10.2 LoCs are being operated through Export-Import
Innovation and exploring promising opportunities for the
Bank of India, which raises resources from the market and
Indian and Swiss economies. The dialogue was also
provides LoCs to recipient Government at concessional
participated by representatives from regulators such as
rates. GoI backs the LoCs through a Deed of Guarantee
SEBI, RBI and IFSCA.
in favour of the lending bank to guard against any default
by the borrowing Government in payment of interest 12.11.4 India-UK Dialogue
and principal to the lending bank. GoI also extends
12.11.4.1 India-UK Economic Financial Dialogue
interest Equalization Support (IES) to the lending bank
for enabling it to lend on concessional terms. 12.11.4.1.1 The 13th Ministerial meeting of the India-
UK Economic and Financial Dialogue (13th EFD) was
12.10.3 As on December 31, 2025, 293 LoCs have been
held in London on 9th April 2025. The Indian delegation
extended to 62 countries for an amount of USD 26,119.11
was led by Smt. Nirmala Sitharaman, Union Minister for
million and INR 4,850 crore. .
Finance and Corporate Affairs, and the UK delegation
C. Economic Dialogues and Forums was led by the Chancellor of the Exchequer, The Rt. Hon.
Rachel Reeves. The dialogue was also participated by
12.11 During the year 2025-26, following dialogues/
financial regulators from both sides including RBI, SEBI
meetings were held:
and IFSCA from Indian side and Bank of England and
12.11.1 India-US Economic & Financial Partnership FCA from the UK side.
(EFP)
Both sides reaffirmed their commitment to continue
12.11.1.1 There is a mechanism of EFP ministerial collaboration in financial services sector, FinTech and
meetings between India and U.S.A. in place since 2010 Digital economy and between the respective regulatory
for strengthening economic and financial engagement bodies; collaboration at bilateral and multilateral fora to
between the two countries. So far, 9 ministerial-level address mutual and global economic issues including
EFP meetings have been held between both sides. As mobilising affordable finance and investment for low
a follow-up to the deliberations under 9th EFP meeting, carbon economic growth, taxation matters and illicit
three sub-ministerial level meetings have been held to financial flows. A Joint Statement was adopted for
exchange updates and take forward the deliberations the dialogue by Union Finance Minister of India and
from the 9th India-USA EFP. Chancellor of Exchequer of United Kingdom.
57Annual Report 2025-2026
12.11.4.2 India- U.K. Financial Markets Dialogue 13. Integrated Finance Division
12.11.4.2.1 The third meeting of India-UK Financial
13.1 The Division is responsible for the following
Markets Dialogue was hosted by Department of Economic
functions:
Affairs, Ministry of Finance in GIFT City, Gujarat on 12
i. Tendering financial advice & concurrence to
December 2024 in hybrid mode. Participants from both
proposals involving expenditure in respect of
India and UK touched upon reforms in respective financial
DEA and DFS as well as their attached and
services sectors including capital markets, insurance &
subordinate offices e.g. Security Appellate
reinsurance, pensions, FinTech, sustainable finance and
Tribunal (SAT)/ National Savings Institute/G-20
International Financial Services Centre. Opportunities
Secretariat /Office of Special Court, Mumbai/
for inter-regulatory cooperation and private sector
Office of Custodian/ Debt Recovery Tribunals,
collaboration to increase bilateral trade and investment
Pension Fund Regulatory and Development
in financial services was also discussed. The 4th FMD is
Authority and Office of Court Liquidator, Kolkata
proposed to be held in next spring, 2026.
ii. Exercising expenditure control and management,
12.11.5 India-Australia Economic Policy Dialogue
ensuring rationalization of expenditure and
12.11.5.1 The 10th round of the India–Australia compliance of economy measures in accordance
Economic Policy Dialogue was held on 14 August 2025 with the instructions of the Department of
in virtual mode under the co-chairmanship of Ms. Aparna Expenditure including regular monitoring of
Bhatia, Adviser (Bilateral Cooperation), Department of expenditure through monthly/quarterly reviews
Economic Affairs, Ministry of Finance, Government of and submission of reports to the concerned
India, and Mr. Justin Baguley, Acting First Assistant Secretaries.
Secretary, International Economics and Security Division,
iii. The Division also administers two Detailed
Australian Treasury. The participants exchanged their
Demands for Grants i.e. Grant No.30-Department
views on the global and domestic economic outlook,
of Economic Affairs and Grant No.32-Department
infrastructure, investment flows, energy transition, digital
of Financial Services. This involves finalizing
economy, and fintech cooperation. India highlighted
the Budget Estimates/ the Revised Estimates/
growth momentum, reforms, and opportunities in
estimating final requirements/ surrender of
infrastructure and digital payments, while Australia shared
savings, re-appropriations and vetting of Head
perspectives on resilience, productivity, and its Future
wise Appropriation Accounts.
Made in Australia policy.
iv. Coordination, Compilation, Printing and
d. F oreign Training Courses/Programmes
laying of the ‘Detailed Demand for Grants
12.12 Department of Economic Affairs is the nodal
(DDG)’ and ‘Output Outcome Mownitoring
point for administering short term foreign training courses
Framework(OOMF)’ of the Ministry of Finance in
offered by some bilateral partner countries under bilateral
respect of CS/CSS Schemes with capital outlay
cooperation programme and some multilateral agencies.
of less than ₹500.00 crore in Parliament.
These courses are intended for capacity building
of the officers in various spheres/fields of activities v. Coordination of all matters relating to the
examination of the Demands for Grants of
including sectors such as Education, Health, Water
Ministry of Finance by the Parliamentary
Resources, Disaster Management, Governance, Natural
Standing Committee on Finance.
Resources and Energy, Agriculture, Nature Conservation,
Environmental Management, etc. Nominations are invited
vi. Numerical Monitoring of pending PAC/C&AG
from all Ministries /Departments, State Governments/ Audit Paras/ENs on Demands for Grants of DEA.
Union Territories. The nominations are screened
vii. Coordination, Compilation, Printing and
by a Selection Committee in DEA and thereafter
Presentation of Statements to be made by
recommended to the sponsoring Government/Agency
Hon’ble Finance Minister as required in terms
for acceptance. During the year 2025-26, DEA received
of Rule 73-A, in Lok Sabha/ Rule 266 in Rajya
offers for training for 67 Short Term Foreign Training
Sabha in respect of implementation of Reports of
Programmes (less than four weeks) from Singapore
the Standing Committee on Finance on Demands
Cooperation Programme Training Award (SCPTA), Japan
for Grants.
International Cooperation Agency (JICA) and Malaysian
Technical Cooperation Programme (MTCP) and suitable viii. Budgetary position regarding the Grants
applicants were recommended for the purpose. administered by the Division is given below:
58Department of Economic Aff airs I
13.2 Budgetary allocation of the Grants (on net basis)
(₹ in crore)
Grant BE 2025-26 RE 2025-26 BE 2026-27
Revenue 2400.24 59845.19 4249.65
30- Department of Economic Aff airs Capital 46613.63 70799.68 16309.46
Total 49013.87 130644.87 20599.11
Revenue 1620.01 3641.84 3686.99
32- Department of Financial Services Capital 68.13 54.79 59.96
Total 1688.14 3696.63 3746.95
The best practices followed for effective expenditure (c) Strengthening of internal control mechanism by
control includes: getting internal audits undertaken.
(a) Expenditure progress reviewed quarterly with (d) Monthly monitoring of Major Schemes/
Major Head/Scheme wise details with concerned Programmes of Department included in the
Secretaries. Outcome Budget.
(b) The Major Head wise and Scheme wise (e) Regular and close monitoring resulted in
expenditure progress as compared to BE finalization of substantial number of cases of
figures, posted on the web-site of the Ministry Action Taken Notes (ATNs) in respect of C&AG
of Finance. Audit Para during the year.
PARAS OF AUDIT REPORTS OF C&AG - Details of ATNs Audit paras pending with different Ministries/Departments
and their disposal status – From 01.12.2024 to 31.01.2026
Name of the Ministry/Department : Ministry of Finance
(Department of Economic Affairs)
Sl. Details of the Paras/PA reports on which
No. ATNs are pending.
No & Year No. of paras/PAC
of the Report reports on which ATNs
have been submitted No of ATNs No of ATNs
to PAC Sent but which have been
No of ATN
after vetting by Audit returned with fi nally vetted
not sent by
the observations by audit but
the Ministry
& Audit is have not been
even for the
awaiting their submitted by the
fi rst time
re-submission by Ministry to PAC
C&AG Report
the Ministry.
1. 7 of 2021 16 1 - -
2. 31 of 2022 23 - - -
3. 21 of 2023 6 - - -
4. 01 of 2024 - - Entire Report -
5. 03 of 2025 - 2 - -
6. 04 of 2025 9 - - -
7. 16 of 2025 7 16 - -
8. 19 of 2025 - 2 - -
59Annual Report 2025-2026
Summary of Important Audit Observations:- has been the biggest draw from Consolidated Fund of
India, contributing 60.60 per cent of the total outgo during
Report No. 16 of 2025 (Financial Audit) - Union
FY 2023-24.
Government Accounts of the Union Government for the
year 2023-24 It is observed that the fixed component of revenue
expenditure on salary, pension and interest payments,
Tabled in the Parliament on: 12th August, 2025
as a share of total revenue expenditure has increased
The Report includes matters arising from test from 38.93 per cent in FY 2022-23 to 42.37 per cent in
audit of the Finance Accounts and the Appropriation FY 2023-24. The YoY increase on fixed commitments of
Accounts of the Union Government for the year ended revenue expenditure was majorly contributed by payment
March 2024. of interest, which grew by 15 per cent.
EXECUTIVE SUMMARY Capital expenditure increased by 29 per cent
as compared to last FY along with marginal increase as
Financial year (FY) 2023-24 was a year of
percentage of GDP. Compared to FY 2019-20, capital
sustainable growth. Economy has reflectedpositive
expenditure on transport sector has increased by 269.29
growth in terms of GDP. GDP at constant price (Real
per cent. Overall liabilities of the Union Government
GDP) increased by 9.19 per cent and at current price
increased led by increase in public debt. Internal debt
(Nominal GDP) grew by 12.02 per cent. Revenue receipts
increased by 12.43 per cent in FY 2023-24 w.r.t FY 2022-
of Central Government increased by 13.82 per cent with
23. Fiscal parameters improved during FY 2023-24 led by
respect to last year, led by robust growth of 23.81 per cent
higher rate of growth in revenue receipts as compared to
in non-tax revenue. Gross Tax Receipts has been on a
revenue expenses. Revenue receipt increased by 13.82
rising trend since FY 2019-20 with continuous positive
per cent while revenue expenses increased by 1.86
growth in both direct tax and indirect tax from FY 2020-21.
per cent on YoY basis. Both revenue and fiscal deficits
The share of direct tax rose to 55.46 per cent during FY
were lower than previous year indicating prudent fiscal
2023-24 and contribution of direct tax in term of GDP rose
management. Revenue deficits decreased by 28.45 per
to 6.38 per cent. This reflects a progressive tax system.
cent as compared with FY 2022-23 reflecting control
Among Direct Taxes, revenue from income tax over revenue expenditure and positive growth in revenue
grew by 25 per cent on a year on year (YoY) basis and receipts.
its contribution to GTR and GDP rose to 29.17 per cent
The Union Government Finance Accounts
and 3.36 per cent respectively. However, Corporation Tax
(UGFA) contain 16 statements which present the financial
both as a percentage of GDP (from 3.07 per cent to 3.02
results of the Union for the year. Chapter 3 of Union
per cent) and contribution to GTR (from 27.04 per cent
Government Financial Audit Report (UGFAR) focuses
to 26.29 per cent) in FY 2023-24 has slightly decreased
on quality of accounts and financial reporting practices
compared to FY 2022-23. GST collection has been on
for FY 2023-24.
a rising trend from FY 2021-22 along with an increasing
trend in contributions as a percentage of GDP. Incorrect accounting for discharge of 1.44%
Inflation Index G.S. 2023, resulted in the understatement
Non-Tax Revenue saw a substantial growth of
of Internal Debt of Central Government by ₹372.64 crore
23.81 per cent as compared with FY 2022-23 resulting in
(Para 3.1.1). User charges for compensatory afforestation
upward trend in terms of contributions to gross revenue
was to be collected by the State CAMPA authority and
receipt (16.59 per cent to 17.83 per cent). This growth in
deposited in 90:10 ratio between the State and Central
non-tax revenue led by a 71 per cent increase in dividend
authorities into their relevant Reserve Funds. However,
and profits over the last year.
we observed that the money was transferred to the Public
Although the Government spending increased Account of India for further distribution to the National/
from ₹39,07,647 crore in FY 2020-21 to ₹48,52,572 crore State Compensatory Afforestation Funds. At the end of FY
in FY 2023-24, it has been on a decreasing trend as a 2023-24, ₹15,103 crore was pending for disbursement to
percentage of GDP during the same period from 19.68 per the funds of respective States/UTs. The balance reflected
cent to 16.11 per cent respectively. Capital expenditure in the Public Account was lower than corresponding
as a proportion of GDP has been on an increasing figures in the books of accounts of the National Authority,
trend (1.73 per cent in FY 2020-21 to 2.68 per cent in leading to a potential understatement of Public Account
FY 2023-24), which is a positive sign. Repayment of debt by ₹866.41 crore (Para 3.1.2).
60Department of Economic Aff airs I
Statement 13 of the UGFA shows only the net We also noted instances of misclassification
balances under Suspense Heads, thus understating the in accounting amounting to ₹4,214.07 crore. Of these,
actual balances pending for clearance, the understatement ₹3,283.50 crore related to receipts and remaining
being 68.01 per cent in Suspense Account (Civil) and misclassifications aggregating to ₹930.57 crore related
54.89 per cent in Reserve Bank Suspense Central to expenditure and largely related to misclassification
Accounts Office (Para 3.2.1 c). Similarly, netting of cash of capital expenditure as revenue expenditure and vice
balances resulted in understatement of cash balance versa (₹654.88 crore) (Para 3.5).
pending reconciliation with RBI, the total cash balance
There was non-accounting of equity shares in
to be reconciled being ₹3,793.74 crore (Para 3.4.3).
the UGFA of ₹16,133 crore (M/s Vodafone India Limited),
Under ‘Departmental Cheques’ an increase was difference of ₹2.30 crore between two Statements (8
observed from ₹441.02 crore (Debit) in FY 2022-23 to and 11) of the UGFA regarding ‘Dividends and Profits’
₹3,796.87 crore (Credit) in FY 2023-24 (Para 3.2.1 b). received by the Government in FY 2023-24 and mismatch
There were 53 cases of adverse balances in various funds of information between UGFA and PSUs accounts.
and deposits of which 43 remained unresolved for over (Para 3.4.1).
five years (Para 3.2.2). Persistence of significant balances
Surplus balance of ₹5,573 crore was retained
under Suspense and Miscellaneous Heads awaiting final
outside Government Account under ‘SEBI General Fund’,
classification and clearance; netting of balances and
at the end of March 2024 (Para 3.3.4). Income from
adverse balances under Debt, Deposit and Remittances
investment of Postal Life Insurance Fund (PLIF) and Rural
Heads, together have an adverse impact on accuracy of
Postal Life Insurance Fund (RPLIF) in Dated Securities
the accounts (Para 3.2).
amounting to ₹941.91 crore (PLIF- ₹502.05 crore1 and
Reserve Funds form part of the Public Account RPLIF- ₹439.86 crore2) was booked in excess in the
of India. These funds are created for specific purposes UGFA (Para 3.3.5). DoT misclassified ₹3,443.08 crore
and are generally financed through cess or levy which of regular pension payments as “Incremental Pension
on collection, is credited into the Consolidated Fund of Payment” (Para 3.5.2.1).
India and transferred to the specified Reserve Fund with
Union Government Appropriation Accounts
Parliament’s approval. In FY 2023-24, an amount of
consist of 102 Grants / Appropriations for FY 2023-24. The
₹3,79,598 crore was collected as cess/charges/levies,
Parliament approved appropriations of ₹1,47,56,796.55
which was 10.95 per cent of the Gross Tax Revenue of
crore, against which Government spent ₹1,29,74,923.11
the Union Government. Test check of records revealed
crore leading to overall savings of ₹17,81,873.44 crore
aggregate impact of short transfer of ₹3,69,307 crore till 31
(Para 4.1.1).
March 2024, to the designated reserve funds in the Public
Accounts (Para 3.3.1). Also, continuance of dormant Total charged (not required to be voted by
Reserve Funds and Deposits with an accumulated Parliament) provision from the Consolidated Fund of
net credit balance of ₹834.37 crore implies that they India in FY 2023-24 was ₹1,02,66,792.77 crore (69.57 per
have outlived their purpose and need to be reviewed cent) against which the expenditure was ₹87,53,015.54
(Para 3.3.2). crore (67.46 per cent). The total voted provision was
₹44,90,003.78 crore (30.43 per cent) and actual
More than 50 per cent of the expenditure and
expenditure was ₹42,21,907.57 crore (32.54 per cent)
receipts amounting to ₹6,024.15 crore and ₹2,231.42
with savings of ₹2,68,096.21 crore (15.05 per cent). The
crore was booked in FY 2023-24 under omnibus ‘Minor
charged expenditure after showing a slight decrease in
Head 800-Other Expenditure’ and ‘Minor Head 800-Other
FY 2020-21 was followed by increase in FY 2021-22, FY
Receipts’ respectively under various Major Heads,
2022-23 and FY 2023-24, while the voted expenditure
compromising transparency in accounts (Para 3.3.3).
shows an increase in FY 2020-21, FY 2021-22 and FY
At the end of FY 2023-24, loans and advances of 2022-23 with a slight decrease in FY 2023-24 (Para 4.1.2).
₹9,41,560 crore were outstanding for recovery from State/
In respect of Civil Ministries/Departments,
UT Governments and other entities, out of which arrears
the major charged disbursement consists of two
in recovery (principal and interest) were of ₹86,174 crore
(Para 3.2.3). We observed short recovery of guarantee
[1 PLIF (UGFA-₹1,391.42 crore, Revenue Account- ₹889.37 crore) 2 RPLIF (UGFA-₹768.15
fee of ₹178.81 crore (Para 3.4.2). crore, Revenue Account- ₹328.29 crore)]
61Annual Report 2025-2026
Appropriations viz. Repayment of Debt and Interest 14. Coin and Currency Division
Payments, and major voted demand being Transfers to
14.1 Coin and Currency Division is responsible
States (Para 4.1.2). In respect of ‘Transfers to States
for policy related to all aspects of the currency and
(Capital Charged)’, there was excess expenditure of
coinage of India. The works of the Division is carried
₹31,308.41 crore during FY 2023-24. The excess over the
out in close coordination with Reserve Bank of India
Appropriation is required to be regularised under Article
(RBI), Security Printing and Minting Corporation of India
115(1)(b) of the Constitution (Para 4.2.1.1).
Limited (SPMCIL), Bhartiya Reserve Bank Note Mudran
We noted excess expenditure of ₹25 crore or Private Limited (BRBNMPL) and Bank Note Paper Mill
more in respect of 14 minor/sub-heads under 9 Grants/ India Private Limited (BNPMIPL). The Division has
Appropriations due to inadequate provisioning of three Sections viz. Currency, Coin and SPMC Section.
funds (Para 4.2.1.2). We also noted savings of ₹5,000 Responsibilities among these Sections are divided as
crore or more in 14 Grants/ Appropriations during FY follows:
2023-24 against which six Grants/ Appropriations had
14.1.1 Currency Section deals with all policy matters
persistent savings in FY 2021-22 and FY 2022-23 as well
relating to design, form and material of currency notes/
(Para 4.2.2.1). Further, savings of ₹100 crore or more
banknotes including security features, and operational
occurred in 95 segments of 70 Grants/ Appropriations
issues relating to production, planning of printing of
(Para 4.2.2.2).
bank notes, Currency related legislation, indigenization
Supplementary provisions obtained in respect of bank note materials, expansion, up-gradation and
of 28 minor/sub-heads under 16 Grants during FY 2023- modernization of Presses, Paper Mills, Ink factory, etc.,
24, in anticipation of higher expenditure, were found and administration of SBN (Cessation of Liabilities) Act,
unnecessary as the final expenditure were less than 2017 and Rules made thereunder.
the original provisions under the corresponding minor/
14.1.2 Coin Section deals with policy matters relating
sub-heads (Para 4.3.1). With respect to re-appropriation,
to design, shape and size of circulation coins, fixation of
we noticed that re-appropriations exceeding ₹10
fair selling price of coins, coins related legislations and
crore each were injudiciously made to 20 minor/
issuance of Commemorative Coins, security products
sub-heads across 14 Grants/Appropriations, as the
viz. passport, postal stamps, Non-Judicial Stamp Paper,
sanctioned provision under the minor/sub-heads to which
production planning of coins and determination of indent
augmentation was made by way of re-appropriation
of coins, expansion, diversification and modernization of
were adequate and re-appropriations were not required.
Mints and Security Presses.
Similarly, re-appropriations were injudiciously made
from 12 minor/sub-heads across four Grants, resulting in 14.1.3 SPMC Section deals with matters related to
avoidable excess expenditure in these minor/sub-heads SPMCIL, which is under administrative control of the
(Para 4.4.1). Department. The Section deals with issues of this
company relating to appointment to Board Level posts,
We also noted that an amount of ₹66,507.20 crore
MoU, residual establishment matters of its nine Units,
was incurred under 34 minor/sub-heads, with expenditure
and coordination of meetings of SPMCIL Board, SPMCIL
of more than rupees one crore each, across 18 Grants/
Pension Fund Trust etc.
Appropriations without any budget provision in violation
of Constitutional provisions (Para 4.5.2). 14.2 Major Achievements of the Division
From information furnished by 22 Departments/ 14.2.1 In order to stay ahead of the counterfeiting,
Ministries, we noted that 37,986 UCs aggregating to Government of India, in consultation with RBI, has initiated
₹72,764.09 crore were outstanding as on 31st March the process for introduction of new security features in
2024, out of which 16,596 UCs amounting to ₹62,199.11 Indian banknotes. The Government has approved the
crore pertains to the last three years (FY 2020-21 to FY recommendations of RBl’s Central Board on revised
2022-23) and the earliest period of the grants sanctioned matrix of security features in bank notes in terms of the
for which the UCs were outstanding pertains to the year provisions of section 25 of the RBI Act, 1934. RBI has
1977-78. This violated provisions of rule 238 (1) & (2) of initiated process for introduction of this revised matrix
GFR 2017 (Para 4.7). of security features. This revised matrix of new security
62Department of Economic Aff airs I
features is expected to protect against counterfeiting of Committee are also held regularly to review the indent and
the currency notes. production of banknotes and coins and their uninterrupted
supply to public. The cumulative production of notes by
14.2.2 The production of banknotes by BRBNMPL
currency presses during 2025-26 up to 18.12.2025 is
and SPMCIL is monitored by this Division. The meetings
of Strategic Planning Group and Production Planning given below.
Status of indent of notes by BRBNMPL and SPMCIL during 2025-26 up to 18.12.2025
Total Indent allocated for Cumulative production from Production left for
Press
2025-26 (in mpcs) 01.04.2025 to 18.12.2025 (in mpcs) 2025-26 (in mpcs)
BRBNMPL 16860 11512.82 5347.18
SPMCIL 11240 7138.40 4101.60
Face Value (Cr)
BRBNMPL 401160 311115.57 90044.43
SPMCIL 267440 192752.40 74687.60
14.2.3 The trends in the Note In Circulation (NIC) of 28 Commemorative Coins viz. Golden Jubilee of New
are monitored. The Notes In Circulation (NIC) as on Mangalore Port Authority, Birth Centenary of Bhagwan
November 4, 2016 were ₹ 17,74,187 Cr. which have now Sri Sathya Sai Baba, 50 Glorious Years of Statehood
increased to ₹ 38,73,810 Cr. as on 18.12.2025. – Sikkim, Birth Centenary of Panth Rattan Late Shri
Gurcharan Singh Tohra, Sri Ramanasramam Centenary,
14.2.4 The trends in Coins In Circulation (CnIC) are
300th Birth Anniversary of Ahilya Bai Holkar, Golden
also strictly monitored. As on 18.12.2025, the CnIC were
Year Celebration of Official Language Department, Birth
₹ 39,018.93 crore. CnIC has risen by ₹16,249.22 crore
Centenary of Acharya Shri Vidyanand Ji Maharaj, 75th
as compared to CnIC as on November 04, 2016 (when
Anniversary of the National Sample Survey, 125th Birth
it was 22,769.71 crore).
Anniversary of Dr. Syama Prasad Mookerjee, Birth
14.2.5 As per the Coinage Act, 2011, commemorative Centenary of Prof. M.S. Swaminathan, 10th Anniversary
coin means any coin stamped by the Government or of Make In India, 105th Birth Anniversary of Acharya
any other authority empowered by the Government in
Shri Mahapragya, 1000 years of Naval Expedition of
this behalf to commemorate any specific occasion or
Emperor Rajendra Chola-I, Platinum Jubilee Celebration
event and expressed in Indian currency. Accordingly, the
of Indian Institute of Technology, Kharagpur, 108th Birth
Government issues commemorative coins on eminent
Anniversary of Shri Satyapramoda Teertha Swami Ji,
persons/ personalities/ institutions/ events/ programmes/
Birth Centenary of Dr. Bhupen Hazarika, 150th Birth
history, etc. that have a national or international nature
Anniversary of Acharya Jawahar Lal Ji Maharaj, 150th
and which have made a lasting contribution or impact.
Birth Anniversary of Sardar Vallabhbhai Patel, One
The contribution made by the individual/ organisation/
Hundred years of Rashtriya Swayamsevak Sangh, 200th
programme/ event should have transcended the barriers
Anniversary of Rani Channamma’s victory at Kittur, Two
of partisan politics, region, community, language or
Hundredth birth anniversary of Maharshi Dayanand
religion. However, on an occasion to express sympathy/
Saraswati, One Hundred Fifty Year Celebration of Arya
grief/ exhibit respect for the sacrifice, Commiserative
Samaj, Completion of fifty years of NHPC Limited, 150
Coins would be issued. The Guidelines in this regard has
years of ‘Vande Mataram’, Sri Guru Tegh Bahadur Ji’s
been issued on 29.09.2020.
350th Martyrdom Day, 550th Year Celebration of Shree
14.2.6 During 2025-26 (Upto 18.12.2025), the Samsthan Gokarn Partagali Jeevottam Math, Centenary
Government has issued Gazette Notifications for release Year of India Security Press, Nashik.
63Annual Report 2025-2026
14.3 Security Printing and Minting Corporation of 14.3.4. SPMCIL has produced 12,064.54 million pieces
India Limited (SPMCIL) of banknotes and supplied 12,120 million pieces to the
Reserve Bank of India (RBI). This represents a 24.28%
14.3.1 Security Printing and Minting Corporation of
increase in production over 9,707.34 million pieces
India Ltd. (SPMCIL), a Miniratna Category-I, Schedule-
in FY 2023–24 and a 24.69% increase in supply over
‘A’ Central Public Sector Enterprise (CPSE) was
9,720 million pieces in the previous year. Banknote
incorporated on 13th January 2006 to manage four India
production per employee improved by 29.06%, from 4.99
Government Mints, two Currency Presses, two Security
million pieces in FY 2023–24 to 6.44 million pieces in
Presses and one Security Paper Mill, which were earlier
FY 2024–25.
being managed by the Government of India (Ministry of
Finance) directly. The Company is wholly owned by the 14.3.5. SPMCIL has produced 1,477.55 million circulation
Central Government with Authorized Share Capital of coins and supplied 1,500.00 million coins to RBI, reflecting
Rs.2500 crores and paid-up Share Capital of Rs.987.50 a strong growth trajectory. Production rose by 23.03%
crores. over last year’s 1,200.99 million coins, while supply
surged by 24.42% compared to 1,205.64 million coins
14.3.2. The Reserve Bank of India (RBI) is the customer
in 2023-24. Circulation coins production per employee
for currency notes supplied by two Currency Presses
improved by 38.71%, from 0.93 million pieces in FY
of the Company, i.e. Bank Note Press (BNP), Dewas
2023–24 to 1.29 million pieces in FY 2024-25.
and Currency Note Press (CNP), Nashik. The Ministry
of External Affairs (MEA) and Ministry of Home Affairs 14.3.6. During the year 2024-25, SPM, Narmadapuram
(MHA) are customers for passports and visa stickers, (a unit of SPMCIL) has produced 7661.61 Metric Ton
respectively and the State Governments are customers (MT) of Security Paper and supplied 7815.37 MT of
for Non-Judicial Stamp Papers and allied stamps and the Security Paper to the printing presses during the year
Postal Department is the customer for postal stationery, 2024-25. This represents a 7.70% increase in production
stamps, etc. supplied by the two Security Presses of the compared to the 7113.75 MT produced in the previous
Company, i.e. Security Printing Press (SPP), Hyderabad year, 2023-24, and 5.97% increase in supply compared to
and India Security Press (ISP), Nashik. These Security the 7375.40 MT supplied last year. Production of Security
Presses also produce various security items like cheques, Paper per Employee has increased to 9.60 MT in the year
railway warrants, income tax return order forms, saving 2024-25 as against 8.72 MT achieved during the previous
instruments, commemorative stamps, excise adhesive year 2023-24.
labels, certificates etc. for various customers. The
14.3.7. SPMCIL has produced 601.31 Metric Ton (MT)
Department of Economic Affairs (DEA), Ministry of
of Security Inks at Ink Factory, Dewas and supplied
Finance is the customer for circulation coins supplied by
574.24 Metric Ton Inks to printing presses during the year
the four India Government Mints (IGMs) of the Company
2024-25. This represents a 1.54% increase in production
at Mumbai, Kolkata, Hyderabad and Noida. The Company
compared to the 592.18 MT produced in the previous
has one Security Paper Mill (SPM) at Narmadapuram year, 2023-24, and a 3.55 % decrease in supply compared
which manufactures Security Paper for use by Currency / to the 595.37 MT supplied last year. Furthermore, the
Security Presses. The Company also has an Ink Factory production of security ink per employee has increased to
at Dewas which manufactures Offset Ink, UV Ink and 10.37 MT in 2024-25, compared to 10.21 MT achieved in
Quickset Intaglio Ink for use by the presses of SPMCIL. the previous year, 2023-24.
14.3.3. As a company which is manufacturer of 14.3.8. SPMCIL has produced 15.63 mpcs of travel
instruments of faith, SPMCIL is inspired by its vision documents/passport booklets in the year 2024-25 and
to serve national priorities of producing state-of-the- supplied 15.74 mpcs travel documents/passport booklets
art security products leveraging core competency and to Ministry of External Affairs (MEA) during the year 2024-
building design capabilities. With the commitment to 25. This is 11.40% higher than the production of 14.03
aid the nation by manufacturing world class and highly million pieces of travel documents/ passport booklets
secured banknotes, coins and security documents, during the year 2023-24. SPMCIL has also produced
SPMCIL has almost 100 years of security printing 193.13 million pieces of Non-Judicial Stamp Papers
experience and over two centuries of experience in the (NJSPs) and supplied 197.67 million pieces NJSPs to
field of minting. various State Governments during the year 2024-25.
64Department of Economic Aff airs I
14.3.9. The Revenue from Operations of SPMCIL stood also obtained ISO 45001:2018 for Occupational Health
at Rs. 5481.91 crores in the year 2024-25 as compared and Safety. SPM Narmadapuram, CNP Nashik, BNP
to Rs. 4712.86 crores in the previous year 2023-24. Total Dewas, ISP Nashik and SPP Hyderabad have received
expenditure for the year 2024-25 is Rs. 4396.99 crores ISO 50001:2018 for Energy Management. Further, SPM
as compared to Rs. 3695.50 crores for the year 2023-24. Narmadapuram, SPP Hyderabad, IGM Mumbai, IGM
Profit before Tax (PBT) from continuing operations for Noida, IGM Kolkata and IGM Hyderabad have obtained
the year 2024-25 is Rs.1487.03 crores as compared to ISO/IEC 17025:2017 for laboratory standards, while IGM
Rs. 1383.84 crores for the year 2023-24. The Company Mumbai has achieved ISO 17034:2016 accreditation
has achieved a Total Comprehensive Income (TCI) of for Gold Certified Reference Materials. The Corporate
Rs. 1005.09 crores in the year 2024-25 as compared Office, CNP Nashik and ISP Nashik have also received
to Rs. 1006.55 crores during the year 2023-24. The
the Anti-Bribery Management System certification from
consolidated TCI after taking into account the 50%
BIS, reaffirming our commitment to integrity and global
share of Joint Venture Company, Bank Note Paper Mill
best practices.
India Pvt. Ltd. (BNPMIPL) is Rs.1070.15 crores in the
year 2024-25 as compared to the Consolidated TCI of 14.3.13. The Manpower Strength of SPMCIL is 5395
Rs.1067.79 crores in the year 2023-24. as on 31.03.2025, which includes 399 Executives, 839
Supervisors and 4157 Office staff & Workers working in 9
14.3.10. In accordance with the guidelines on Capital
Units and Corporate Office.
Restructuring of CPSEs issued by the Department of
Investment and Public Asset Management (DIPAM), 14.3.14. SPMCIL has taken-up many CSR projects in
the Company has paid the dividend of Rs. 317.32 crores the areas of education, healthcare, rural development,
being 4% of Net worth of the company as on 31st March etc. in the FY 2024-25. SPMCIL had adopted Barwani
2025, to the Government of India for the financial year District of Madhya Pradesh as the Aspirational District.
2024-25. It has also undertaken CSR initiatives in the Aspirational
Districts of Simdega and Gumla of Jharkhand State.
14.3.11. During the year 2024-25, SPMCIL commissioned
several advanced machines across its production units 14.3.15. Indigenization: The Joint Venture Company,
to enhance operational efficiency, product quality, and Bank Note Paper Mill India Private Limited (BNPMIPL)
technological capabilities. At Currency Note Press has produced 16651 MT of Security Paper during the
(CNP), Nashik, installations included three offset year 2024-25.
banknote printing machines, one intaglio banknote
printing machine, two banknote numbering machines, 14.4 Bharatiya Reserve Bank Note Mudran Private
and two banknote finishing machines. Bank Note Press Limited Corporate Office, Bengaluru
(BNP), Dewas received one offset banknote printing
14.4.1 Bharatiya Reserve Bank Note Mudran (P) Ltd.
machine and one banknote finishing machine. A smart
(BRBNMPL) is a wholly owned subsidiary of the Reserve
card manufacturing machine was installed at Security
Bank of India (RBI), responsible for the printing and
Printing Press (SPP), Hyderabad, and a fully integrated
distribution of Indian banknotes across the country.
passport manufacturing line was commissioned at India
Established by the RBI in 1995, its mission is to ensure
Security Press (ISP), Nashik. These upgrades reaffirm
SPMCIL’s commitment to adopting state-of-the-art an adequate supply of currency through state-of-the-art,
infrastructure in secure printing. world-class production facilities.
14.3.12. All nine units of SPMCIL, including the Mints, 14.4.2 The Company manages two printing Presses,
Currency Presses, Security Presses, and the Paper one at Salboni in West Bengal and the other at Mysuru,
Mill, have achieved important milestones in quality and Karnataka along with its Corporate Office at Bengaluru,
operational excellence. Each unit is certified with ISO Karnataka. Both the Presses have installed the latest
9001:2015 for Quality Management and ISO 14001:2015 technology in banknote printing and there is continuous
for Environmental Management. Units such as SPM upgradation of technology, systems and procedures
Narmadapuram, BNP Dewas, IGM Noida, IGM Mumbai, keeping up with the latest trend in the international
SPP Hyderabad, ISP Nashik and CNP Nashik have markets.
65Annual Report 2025-2026
14.4.3 Both the Presses are also equipped with the Planning systems.
latest Security Surveillance System. Currently, BRBNMPL
14.4.4 BRBNMPL has consistently achieved the
is undergoing extensive automation and technology
upgradation across its production lines at its Presses country’s banknote requirement since its inception. The
including implementation of new Enterprise Resource performance for 2024-25, is detailed below:-
Status of indent of notes by BRBNMPL during FY 2025-26 up to 18.12.2025
Press Total Indent allocated Cumulative production from Production left for
for 2025-26 (in mpcs) 01.04.2025 to 18.12.2025 (in mpcs) 2025-26 (in mpcs)
BRBNMPL 16860.00 11512.82 5347.18
Face Value (Cr)
BRBNMPL 401160.00 311115.57 90044.43
14.4.5 BRBNMPL in a joint venture with SPMCIL has 14.4.10 Under its Corporate Social Responsibility (CSR)
established “Banknote Paper Mill India Pvt., Ltd., in 2016 policy, the company promotes education, sustainable
as a major raw material backward integration, thereby livelihoods, environmental protection, preventive
indigenizing the currency paper which ensured cost healthcare, sanitation, gender equality, women’s
effectiveness in banknote manufacturing. It has also empowerment, and building resilient infrastructure.
enabled India’s vision to achieve self-reliance in this field
14.5 Bank Note Paper Mill India Private Limited
at par with global giants in this industry.
(BNPMIPL)
14.4.6 The in-house establishment of the second major
14.5.1 BNPMIPL was established as a 50:50 Joint
raw material, a security ink manufacturing unit (i.e.,
Venture Company between SPMCIL and BRBNMPL in
Varnika), has successfully reduced import dependency.
the year 2010 at Mysuru to manufacture bank note paper
It is worth noting that both raw materials account for
(CWBN Paper) indigenously. The Company has installed
approximately 70% to 80% of the total banknote cost.
two line of paper mills having an installed capacity of
14.4.7 VARNIKA has an approximate annual
12000 MT per year. The Company went into commercial
manufacturing capacity of 1200 metric tons (MT).
production during the year 2016 and catering the entire
It produces all necessary inks for various stages of
Indian Bank Note Paper requirement.
banknote manufacturing, along with raw materials like
14.5.2 During the year 2024-25, BNPMIPL has produced
varnish and medium. VARNIKA is currently working to
expand its operations to cater to global requirements in 16651 MT of CWBN Paper (138% of the installed
this field. capacity) and supplied 18391 MT of CWBN Paper to all
the four banknote printing presses to meet their entire
14.4.8 As part of its global outreach strategy, BRBNMPL
requirement of paper to print Indian banknotes. The
has made a formal proposition to various countries to
Company has been ISO 9001:2015, ISO 14001:2015
supply world-class banknote manufacturing solutions.
and ISO 45001:2018 certified for quality management,
14.4.9 BRBNMPL has voluntarily adopted green energy environment management and health and Safety
initiatives, demonstrating its commitment to sustainability management systems respectively. The Company has
by installing solar power plants at all its three locations also implemented an ERP system for all accounting,
viz., Bengaluru Corporate Office, the Mysuru Press and inventory management and control on the movement of
the Salboni Press. people.
66Department of Economic Aff airs I
ANNEXURE-I
Representation of SCs, STs, and OBCs
Number of Appointments made during the Financial Year 2024-25
Total Representation of SCs/STs/
OBCs (As on 31.03.2025)
By Direct Recruitment By Promotion By other methods
Groups
Total No. of
SCs STs OBCs EWS Total SCs STs OBCs EWS Total SCs STs Total SCs STs OBCs EWS
Employees
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Group “A” 399 51 19 97 3 22 2 0 4 0 23 2 0 0 0 0 0 0
Group “B” 839 124 81 192 8 8 0 4 1 11 64 12 2 0 0 0 0 0
Group “C” 4157 813 360 874 57 193 30 13 111 16 658 124 53 84 19 15 22 0
Total 5395 988 460 1163 68 223 32 17 116 27 745 138 55 84 19 15 22 0
ANNEXURE-II
Representation of the Persons with Disabilities
Group Total Representation as on 31.03.2025 Direct Recruitment Promotion Deputation
Total
P Q R S T P Q R S T P Q R S T P Q R S T
Employees
Group “A” 399 1 0 5 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0
Group “B” 839 2 0 13 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Group “C” 4157 11 30 44 0 15 0 1 2 0 0 2 6 5 0 0 0 0 0 0 0
Total 5395 14 30 62 0 18 0 1 2 0 0 3 6 6 0 0 0 0 0 0 0
Note:
i. P-Blindness and Low Vision
ii. Q- Deaf and hard of hearing
iii. R-Locomotor Disability including cerebral palsy, leprosy cured, dwarfi sm, acid attack victims and muscular dystrophy
iv. S-Autism, Intellectual disability, specifi c learning disability and mental illness.
v. T-Multiple Disability from amongst P to S above.
67Annual Report 2025-2026
15. Other Multilateral Institutions (OMI) Secretary of the Department of Economic Affairs, Ministry
Division of Finance.
15.1 International Fund for Agricultural 15.3 New Development Bank (NDB)
Development (IFAD)
15.3.1 India is the second largest recipient of New
Development Bank (NDB) financing across power, water,
15.1.1 The IFAD assisted 34 projects in India with a
commitment of USD 1.375 billion (approx.) since 1979. transport, public health, sustainable development, and
Out of these, 30 projects have already been closed, while social sector. Since 2016 (NDB’s operational period), 29
4 projects with total assistance of USD 325.58 million projects (25 Sovereign and 4 Non-sovereign Projects)
are under implementation. Currently, 02 projects of India have been approved by NDB for the financing of USD
worth USD 132.03 million has been built as pipeline for 9.127 billion across various sectors, viz. transport, water,
the approval of IFAD Board in FY 2025-26. urban, public health, tourism, etc. - This includes USD 2
billion in recovery assistance to India towards COVID-19
15.2 European Bank for Reconstruction and
Crisis Recovery support and economic resilience. Out
Development (EBRD)
of these 25 sovereign projects, 18 projects worth USD
15.2.1 The EBRD, headquartered in London, was 5.7 billion are ongoing, 7 projects worth USD 2.8 billion
established in 1991 to help the erstwhile economies of have already been closed. Further, during the FY 2025-
Central and Eastern Europe reconstruct their economies 26, India signed 02 projects worth USD 731 million. In
in the post-Cold War era and evolve into open, market- addition, since its inception, NDB has approved 4 non-
oriented economies committed to the principles of sovereign/private sector projects worth USD 588 million.
multiparty democracy and pluralism. EBRD operates in
15.4 Asian Infrastructure Investment Bank (AIIB)
more than 30 countries from Central Europe to Central
15.4.1 India is the largest client of the Asian Infrastructure
Asia and the Southern and Eastern Mediterranean. The
Investment Bank (AIIB) in terms of approved financing.
area of operation of the EBRD has now expanded to
Since 2016 (AIIB’s operational period), 34 Sovereign
include North African countries as well. The EBRD is
Projects have been approved by AIIB for the financing
the only bank among MDBs that focuses mainly on non-
of USD 10.76 billion across various sectors viz. energy,
sovereign operations. EBRD has an explicitly political
transport, water, urban, public health, and education. Out
mandate: firstly, to support democracy-building activities.
of these 34 projects, 25 projects worth USD 7.8 billion
Second, the EBRD does not have a concessional loan
are ongoing, 8 projects worth USD 3 billion have already
window. To date, the Bank has 77 member countries in
been closed, and two projects worth USD 522 million
five continents, as well as the European Union and the
are approved by the AIIB Board and are being signed. In
European Investment Bank. India joined the EBRD in July
addition, since its inception, AIIB has approved 26 non-
2018 as its 69th shareholder and currently holds 0.033
sovereign/private sector projects worth USD 2.18 billion.
percent shareholding in the Bank. India is a non-borrowing
member and is part of the Portugal Constituency, which
15.5 The African Development Bank (AfDB)
comprises Portugal, Greece, and San Marino. India paid
Euro 1.79 million (₹14.74 Cr) towards its paid-up portion 15.5.1 The AfDB is a regional multilateral development
and has an initial subscription of 986 shares, comprising finance institution established to contribute to the
179 paid-in shares and 807 callable shares. In 2024, as economic development and social progress of African
part of General paid-in Capital increase of EBRD, India countries that are the institution’s Regional Member
has subscribed an additional 132 shares of EBRD. India Countries (RMCs). The AfDB was founded following
is represented in the Board of Governors by the Finance an agreement signed by member states on August 14,
Minister of India, and the Alternate Governor is the 1963, in Khartoum, Sudan, which became effective on
68Department of Economic Aff airs I
September 10, 1964. The AfDB comprises three entities, 15.5.4 India holds a total of 42,001 shares and 0.288
jointly referred to as the African Development Bank percent voting shares in the AfDB. In ADF, India holds
Group, namely the African Development Bank (AfDB), a 0.182 percent voting share. India participates in the
the African Development Fund (ADF), and the Nigeria Board of Governors (BoG) meetings, which are held
Trust Fund (NTF). The AfDB is headquartered in Abidjan, annually, and raises concerns during the Board of
Côte d’Ivoire. Directors (BoD) meetings via its constituency. India is
represented in the Board of Governors by the Finance
15.5.2 The Bank comprises 54 African countries known
Minister of India, and the Secretary of the Department
as regional member countries (RMCs) and 27 non-African
of Economic Affairs serves as the alternate governor.
countries known as non-regional member countries
(NRMCs). When the African Development Bank (AfDB) 15.5.5 Till ADF-15, India had pledged ₹601.9 crore.
was established, only independent African countries were For ADF-16, India pledged ₹152.64 crore as a pure
eligible to be shareholders of the Bank, and later in 1982, grant and ₹3.69 crore as grant compensation. For the
the memberships were opened to Non-African Countries. next cycle, i.e., ADF-17 (2026-28), India has recently
pledged ₹176.29 crore as a pure grant and ₹9.23 crore
15.5.3 India is a long-standing partner of the AfDB,
as grant compensation. Another ₹54.74 crore has been
and relations date back to 1982 when India joined the
contributed towards the Multilateral Debt Relief Initiative
African Development Fund (ADF) and joined the African
(MDRI) till date.
Development Bank (AfDB) in 1983 as its non-regional /
non-borrowing member. All 81 AfDB members (54 RMCs 15.5.6 Overall, these contributions have served
& 27 NRMCs) are grouped into 20 constituencies (13 to finance activities aligned with Africa’s vision for
regional and 7 non-regional). India is part of the NIIC - development within the context of the Bank’s Ten-Year
Nordic India Ireland Constituency, comprising Norway, Strategy (TYS) and High 5 priorities.
Sweden, Finland, Denmark, and Ireland.
69Annual Report 2025-2026
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72
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5202.11.03
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73
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74
I-eruxennA
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,arhsiMChapter - II
Department of Expenditure
1. PERSONNEL DIVISION the level of Section Officers/ Private Secretaries in the
Ministry of Finance, apart from coordinating Parliament
The Personnel Division works under the
work as well as Right to Information Act (RTI) matters for
Additional Secretary (Personnel) and is responsible for
the Ministry of Finance as a whole.
administration of various financial rules and regulations
including those relating to personnel matters of Central 1.7 Pay Research Unit (PRU)
Government Employees such as regulation of pay and
1.7.1 The Pay Research Unit was established in 1968
allowances, policy matters on pension, and staffing of
and deals with collection, compilation and analysis of
Government establishments by creation and upgradation
data on actual expenditure incurred on pay and various
of posts, as also cadre reviews.
types of allowances as well as data pertaining to the
1.2 The Division also deals with proposals seeking to strength of the Central Government Civilian Employees
alter service conditions and other benefits to Government and employees of Union Territories Administration.
employees with significant recurring financial implication. This unit brings out an Annual Publication titled "Annual
Broad instructions on Expenditure Management, including Report on Pay & Allowances of Central Government
economy measures and measures for improving quality of Civilian Employees". The report provides statistical
expenditure such as through Utilisation Certificates (UC) information regarding expenditure incurred by the different
are issued by the Personnel Division. Ministries/Departments of the Central Government on
pay and various types of allowances such as Dearness
1.3 This Division administers the General Financial
Allowances, House Rent Allowance, Overtime Allowance
Rules and the Delegation of Financial Powers Rules
and other Compensatory Allowances in respect of its
including issue of clarifications/ amendments thereto,
regular civilian employees. lt also provides information
and coordinates with Financial Advisors of all Ministries/
on Ministry/Department-wise and Group-wise number of
Departments of the Central Government. All legislative
sanctioned posts and number of persons in position.
proposals with general financial implications are
scrutinized in the Personnel Division. 1.8 RTI Cell
1.4 The Department of Expenditure (DoE), Ministry 1.8.1 The Right to Information Act, 2005 is implemented
of Finance (MoF) receives Capital Acquisition/works in its true spirit and the information required to be
proposals from Ministry of Defence pertaining to Army, disclosed under the Act has been uploaded on the website
Navy, Air Force, DRDO and Coast Guard. These of the Department. The Central Public Information
proposals are received in MoF after tender evaluation Officers (CPIOs) ensure timely supply of information to
and price negotiations are done by MoD. Ministry of applicants and prompt action is taken on appeals by First
Finance is not involved in the appraisal procedure of Appellate Authorities. Third party audit is conducted by
these proposals although the proposals have significant RTI Section as per RTI Act, 2005. RTI Section works in
financial implications. The position of Ministry of Finance close coordination with Central Information Commission
is also unique because a large number of proposals (CIC) and this Section upload the quarterly report of RTI of
needing approval of CCS originating from Ministries like this Department on the CIC portal and also take necessary
MEA and MHA are also examined in Ministry of Finance. action on the CIC hearing notices as per RTI Act, 2005.
It is the endeavor of Ministry of Finance to ensure that During the year 2025-26, 6 CIC hearing notices were
no duplication of assets are created for meeting similar received and prompt action taken on it. In addition to that
security environment wherein MoD, MHA or any other 5807 RTI applications & 309 RTI appeals received ‘online’
Ministry is a stakeholder. and 704 RTI applications & 20 RTI appeals received in
‘physical form’ were disposed-off in a time-bound manner.
1.5 Service matters pertaining to the Indian Audit and
Accounts Service(IA&AS), Indian Civil Accounts Service 1.9 Legal Cell
(ICAS) and Indian Cost Accounts Service (ICoAS) are
1.9.1 The Legal Section functions as the ‘Nodal
dealt with by this Division. Administrative assistance to the
Section’ of the Department of Expenditure in respect of
Finance Ministers’ Office is also provided by this Division.
all legal matters received from the Central Registry of the
1.6 The Division also handles the overall Hon’ble Supreme Court of India, various High Courts,
administration of the Department of Expenditure and Tribunals, and other Ministries/Departments. It also
also controls the cadre for all Central Secretariat coordinates with the various Divisions/Sections of the
Service(CSS)/ Central Secretariat Stenographer Service Department of Expenditure and with the Ministry of Law
(CSSS)/ Central Secretariat Clerical Service (CSCS) upto & Justice regarding all court cases. During the year 2024-
77Annual Report 2025-2026
2025, a total of 192 court cases, where the Department 1.11.2 Eighth Central Pay Commission
of Expenditure is one of the respondents, were disposed
The Government of India vide Resolution dated
off. Apart from this, the Legal Cell of the Department
03rd November, 2025 have decided to appoint the Eighth
of Expenditure processed 821 receipts (legal notices,
Central Pay Commission comprising the following:-
orders, writ petitions, original applications, etc.) received
from various Courts/Tribunals and forwarded them i. Chairperson -Smt. Justice Ranjana Prakash Desai
to the concerned Sections/Branches/Divisions of this ii. Member (Part-Time) - Prof. Pulak Ghosh
Department, as well as to the concerned Departments/
iii. Member-Secretary - Shri Pankaj Jain
Ministries, as applicable, to facilitate them for proper
handling of such matters in a time-bound manner. The The Resolution also sets out the Terms of
Legal Section also compiles information regarding Reference of the Commission. The 8th CPC will submit
pending court cases on a monthly basis wherein the recommendations within 18 months of the date of
Department of Expenditure is one of the respondents. constitution. A copy of Resolution dated 03.11.2025 is
It monitors all such cases hosted on the LIMBS portal also placed at Annexure-I.
and ensures timely updating of their status. Additionally,
2. PUBLIC FINANCE-STATES DIVISION
Parliament Questions received from the Department of
Legal Affairs on legal matters are examined and replied 2.1 Special Assistance to States for Capital
to by the Legal Section in consultation with the concerned Expenditure/Investment:
Sections under the Department of Expenditure.
2.1.1 Capital expenditure in the economy has a higher
1.10 Staff Inspection unit (SIU)
multiplication factor and crowds-in private investment
1.10.1 The Staff Inspection Unit (SIU) was set up in 1964 and raises supply side capacity for enhancing economic
with the objectives of securing economy in the staffing of growth. Accordingly, the Union Government, in October,
Government organizations consistent with administrative 2020, launched a ‘Scheme for Special Assistance to
efficiency and evolving performance standards and work States for Capital Expenditure’ under which 50-year
norms in Government offices and institutions wholly or
interest free loan is provided to assist the States in
substantially dependent on Government Grants. The
boosting capital expenditure and enhance the productive
Scientific and Technical Organizations are not covered
capacity of the economy. In view of the extremely positive
within the purview of the SIU but a Committee constituted
response of the State Governments to the Schemes and
by the Head of the respective Department, with a
their request for continuing the Scheme, the Scheme
representative from SIU as a Core Member, conducts
was continued in 2021-22, 2022-23, 2023-24, 2024-25
study of such organization.
and 2025-26 with enhanced allocation. The outlay under
1.10.2 The Financial Advisors (FAs) are main links the scheme has increased from ₹ 12,000 crore in the FY
between the SIU in the Department of Expenditure and the
2020-21 to ₹ 1,50,000 crores in 2025-26.
other Ministries / Departments / Offices / Organizations. All
requests for staffing studies by the SIU are routed through 2.1.2 In 2025-26, the scheme comprises of total
the concerned FAs in the Departments. The study reports ten parts, from Part-I to Part-X. Under the Scheme for
are issued after ‘on the spot’ work measurement study 2025-26 three UTs with Legislature viz, Delhi, Jammu &
are conducted by the SIU Study team which includes Kashmir and Puducherry have also been included under
discussion with the senior officials of the organization the Scheme for the first time. An amount of ₹ 68,000 crore
and finalization of the provision as assessment report has been allocated under Part-I (Untied) of the Scheme,
of the SIU. The final report of the SIU is required to be under which States/UTs can propose capital projects of
implemented by the concerned organization within the their choice to be funded under the scheme. An outlay
stipulated period of three months as per the instructions of ₹ 80,000 crore is for reform centric and sector specific
in this regard. areas. Remaining allocation of ₹ 2000 crore under the
Scheme for 2025-26 will be the special allocation for the
1.11 Significant developments/policy decisions
States which have faced loss in revenue collection due
taken during the year
to any special reason/situation during the last two year.
1.11.1 The General Financial Rules are a comprehensive
The reforms envisaged under the scheme are:
set of rules and orders governing public finances in
India. From time to time, various amendments are i. Mining Sector Reforms
made by nodal Departments/Divisions in these Rules in
order to adapt to changing circumstances or to improve ii. Scrapping of Old Vehicles and Electronic
efficiency and transparency. This Department has been Enforcement of Road Safety
entrusted with the responsibility to consolidate all such
amendments bi-annually and the last such compilation iii. Land-related Reforms by State Governments in
(upto 31.07.2025) was issued on 19.09.2025. Rural Areas
78Department of ExpenditureII
iv. Digital Public Infrastructure for Agriculture disbursed to State Governments/UTs (with Legislature)
v. Land-related Reforms by State Governments in under SASCI 2025-26. Further, a total amount of
Urban Areas ₹ 421152.34 crore has been released to the state
Governments/UTs (included under SASCI in 2025-26)
vi. Efficiency in Financial Management
under SASCI since its inception i.e. from 2020-21 to 2025-
vii. Urban Planning Reform
26 (till 17.11.2025). Year-wise releases under SASCI
2.1.3 Till 17.11.2025, ₹54902.34 crore has been scheme are given below:
(₹ in crores)
2025-26
2020-21 2021-22 2022-23 2023-24 2024-25 Total
(till 17.11.2025)
Total amount
released to State
11830 14186 81196 109554 149484 54902.34 421152.34
Governments
The State-wise details of the total amount the normal net borrowing ceiling of 3% of GSDP for the
released as ‘Special Assistance’ (as loan) to States/ year 2025-26. This additional borrowing has been allowed
UTs from 2020-21 to 2025-26 (till 17.11.2025) under with an objective to address the divergence in pension
the ‘Scheme of Special Assistance to States for Capital accounting where States following a 'pay-as-you-go'
Investment 2025-26’ are given in Annexure-II. system have a lower fiscal deficit by not reflecting future
pension liabilities and also to ensure proper common and
2.2 Special Assistance to States:
complete yardstick to all contributing states. For the year
2.2.1 Post implementation of 14th Finance Commission, 2025-26, the States have been allowed extra borrowing
ceiling equivalent to the employer's and employee's
States were empowered through the budget line “Special
share of contribution of its employees amounting to Rs.
Assistance to States” for meeting spillover committed
69,768.95 crore
liabilities for which Budget provision is not made and
other need based Assistance. Accordingly, an amount of 2.3.3 The XV-FC has recommended performance
₹ 10,890 crore in 2015-16, ₹ 10,900 crore in 2016-17, ₹
based additional borrowing space of 0.50 percent of
6,950.50 crore in 2017-18, ₹ 4,680.81 crore in 2018-19,
Gross State Domestic Product (GSDP) to States in the
₹ 1,623.70 crore in 2019-20, ₹ 1,948.66 crore in 2020-
power sector. This additional borrowing of 0.50 percent of
21 and ₹ 3,766.39 crore in 2021-22, ₹ 2271.233 crore in
GSDP is over and above the NBC. The objectives of the
2022-23, ₹ 11695.208 crore in 2023-24 and ₹ 3350 crore
additional borrowing space are to improve the operational
in 2024-25 were released as ‘Special Assistance’.
and economic efficiency of the sector, and promote a
2.3 Borrowings of the States sustained increase in paid electricity consumption. This
special dispensation had been recommended for each
2.3.1 As per the recommendations of the Fifteenth year for a four-year period from 2021-22 to 2024-25. This
Finance Commission (XV-FC) , Net Borrowing Ceiling special dispensation has also been extended for the year
(NBC) of 3 percent of Gross State Domestic Product 2025-26. For the FY 2025-26, the States are eligible for
(GSDP) has been allowed to States for the year 2025-26. additional borrowing of 0.5% of GSDP i.e. Rs. 1,71,612
The NBC of the States for the year 2025-26 has been crore linked to performance in power sector as per the
fixed at Rs. 10,29,659 crore at 3 percent of GSDP of the guidelines issued by this department dated 02.09.2025.
States. The same has been communicated to the State
2.3.4 This additional borrowing is allowed based on the
Governments vide Annual Borrowing Ceiling guidelines
recommendation of Ministry of Power after assessment
dated 04.04.2025. Accordingly, based on the information
of the performance of the State in power sector as per
received from the States, Open Market Borrowing (OMB)
the guidelines issued by the Department of Expenditure,
consent amounting to Rs. 8,89,832 crore and Negotiated
Ministry of Finance.
Loans (NL) of Rs. 98,699.16 crore has been issued to the
States for the Financial Year 2025-26 as on 07.11.2025. 2.4 Additional Central Assistance for Externally
Aided Projects
2.3.2 Further, States have been allowed extra borrowing
ceiling equivalent to the employer's and employee's share 2.4.1 Additional Central Assistance (ACA) for
of contribution of its employees pertaining to financial year
Externally-Aided Projects (EAPs) is passed on to the
2025-26 actually deposited with the designated authority General Category States on back to back basis on the
i.e. 'National Securities Depository limited (NSDL)/ trustee same terms and conditions on which these loans are
bank as per the guidelines of National Pension System received by the Union Government from donor agencies.
(NPS) or Unified Pension Scheme (UPS), over and above, However, in case of North Eastern and Himalayan States,
79Annual Report 2025-2026
special dispensation has been made whereby they
Grant in aid
received the assistance for EAPs in grant: loan ratio of 48573.00 16788.3
4. for Rural Local
90:10. Based on the recommendations of the Office of
Bodies Grants
Controller of Aid, Account and Audit Division, Department
of Economic Affairs, an amount of Rs. 27,879.71 crore Grant in aid for 26158.00 8870.9
has been released against the total Budget Estimates of 5. Urban Local
Rs. 52,730.00 crore under the ‘ACA for EAPs’ to States Bodies Grants
till 7th November, 2025 during the financial year 2025-26 Grant in aid for
6. 15271.66 12968.36
under the Demand No. 42. Health Sector
2.5 Cash Credit Limit Assistance from
12048.00 4177.15
7. National Disaster
2.5.1 States have also been allowed to avail Cash
Response Fund
Credit Limit of Rs. 99,421.11 crore as on 05.11.2025
Assistance from
during the financial year 2025-26 on the terms and 3012.00 923.37
8. National Disaster
conditions as stipulated by the Reserve Bank of India for
Mitigation Fund
the purpose of food grain procurement operations.
Grant for shared
2.6 Finance Commission grants under 90.00 224.99
9. Municipal Ser-
the Demand-42 “Transfer to States”
vices
2.6.1 Finance Commission Division (Department of
Grand Total 145826.66 77797.02
Expenditure) undertakes processing of and follow up
action on the recommendations of the Central Finance
2.6.3 To strengthen the hands of the States in case of
Commissions including release of grants recommended
natural disaster, additional Central assistance is provided
by the successive Finance Commissions.
by the Central Government from National Disaster
2.6.2 Based on the accepted recommendations of Response Fund (NDRF). Based on the recommendations
the Fifteenth Finance Commission (XV-FC) for the from M/o Home Affairs, an amount of ₹ 4177.15 Crore
award period 2021-22 to 2025-26, this Department has
has been released under NDRF during 2025-26.
released Commission recommended grants namely
Post Devolution Revenue Deficit Grant, Grants to 2.7 Expenditure Management Commission (EMC)
Local Bodies grants (Rural and Urban) including Health
2.7.1 Expenditure Management Commission (EMC)
Sector Grant to be channelized through Local Bodies
and Disaster Management Grants. So far, during the was constituted on 04.09.2014 with a mandate to
financial year 2025-26 (upto 31.12.2025), a total amount recommend ways to increase efficiency of public
of Rs. 77797.02 crore has been released to the State expenditure, review major areas of Central Government
Governments out of the total budgeted provision of expenditure and suggest ways of creating fiscal space
Rs. 145826.66 crore. Item-wise details of grants-in-aid required to meet development expenditure needs,
released during the year 2025-26 are as under: without compromising fiscal discipline. The Commission
(Rs. in crore) submitted its Report in four parts by March 2016.
Out of 181 actionable points in the EMC report found
S/ Components Allocation Grants released implementable, now 165 have already been implemented.
for 2025-26 during The remaining recommendations have been taken up for
No.
2025-26 (upto
implementation by the concerned Ministries/Departments
)
31.12.2025
and implementation is going on.
Post Devolution 13705.00 10278.75 2.7.2. As recommended by EMC, a data base of
1. Revenue Deficit Autonomous Bodies (ABs) has been compiled on the
Grant website of Department of Expenditure and 69 Ministries/
Departments have uploaded data relating to ABs under
Grant in aid for 21575.20 18276.4 their administrative control. The information uploaded on
2. State Disaster the portal is being used by various Ministries and NITI
Response Fund Aayog for review and decision making.
2.7.3. Department of Expenditure has also reviewed 231
Grant in aid for 5393.80 5288.8
ABs under 23 Ministries/Department for rationalisation.
3. State Disaster
Mitigation Fund The review reports were sent to the respective Ministries/
Departments for further action to implement the
80Department of ExpenditureII
recommendations and reduce the number of ABs through consultation with the NITI Aayog. This Output-Outcome
merger, closure and disengagement. Framework shall be for all CSSs and CSs dealing within
the identified measurable Outcomes in the relevant
2.7.4. The EMC recommended that in order to minimize
medium-term framework. Physical and Financial outputs
the cost of Government Borrowings and to enhance
are targeted on a year-to-year basis.
efficiency in fund flows to ABs, Government should
gradually bring all ABs under the Treasury Single Account 3.8 During the period from 01.04.2025 to 30.11.2025,
(TSA) System. The Government decided to implement
the Expenditure Finance Committee (EFC) chaired by
this recommendation and accordingly, issued guidelines
Secretary (Expenditure) recommended 40 investment
on 27th July, 2017 which were revised on 24th February,
proposal/ scheme of various Ministries/Department
2022 and further amended on 20.10.2022 to streamline
costing Rs. 7,84,196.447 crore (with Central share of Rs.
the implementation of TSA system.
7,75,452.147 crore).
3. PUBLIC FINANCE CENTRAL DIVISION
3.9 Also, during the period, Public Investment Board
3.1 Public Finance (Central) Division is entrusted
(PIB) chaired by Secretary (Expenditure) considered and
with the appraisal and approval of all public funded
recommended 25 proposals involving an amount of Rs.
Schemes and Projects of the Central Ministries/PSUs.
1,36,226.06 crore (with Central share of Rs. 56,840.18
This Division is divided into three units i.e. Public Finance
crore).
(Central-I), Public Finance (Central-II) & Public Finance
(Central-III). 3.10 In order to speed up the appraisal process, an
online portal has been functional since August, 2017,
3.2 In respect of development Schemes and Projects,
for uploading EFC/PIB/SFC/DIB proposals to relevant
the focus has been on improving the quality of public
Ministries, receiving comments, fixing dates for the
expenditure through better Scheme/Project formulation,
meeting and dispatching minutes after approval.
emphasis on outputs, deliverables, impact assessment
and convergence approach. 3.11 For continuation of public funded schemes
over the 16th FC Cycle (beginning on 1st April, 2026),
3.3 A continuous endeavor is made to rationalize
several initiatives have been taken by the Department
the Centrally Sponsored Schemes (CSSs) and Central
of Expenditure. During May, 2025, Sample ToRs for
Sector Schemes (CSs) for optimal and focused use of
Evaluation of continuing Central Sector Schemes
public resources.
were issued. All proposals for continuation of schemes
3.4 Public Finance (Central) Division is engaged need to be preceded by an appropriate evaluation and
necessary restructuring carried out in them so as to
in working out modalities for financial assistance to
achieve the desired results. A workshop chaired by
CPSEs on receipt of proposal from their parent Ministries/
the Cabinet Secretary on Appraisal and Approval of
Departments in consultation with Budget Division,
Public Funded Schemes was held during May, 2025 to
Department of Economic Affairs.
sensitize the Ministries and Departments on the process,
3.5 Various issues relating to subsidies on Food, timelines and overall expectations from the appraisal and
Fertilizers and Petroleum, including their quantification approval exercise. This was followed by a Conference
and extension of assistance to the stakeholders are also of Financial Advisors held under the Chairmanship of
dealt within the division. This division is actively involved Secretary (Expenditure) during July, 2025. The guidelines
along with the concerned Departments/Ministries, in for appraisal and approval of Schemes ending on 31st
shaping the subsidy policies to ensure effective targeting, March, 2026 and to be continued during the 16th Finance
coupled with the minimum burden on the Government. Commission Cycle were issued during June, 2025. This
was followed by guidelines issued during October 2025
3.6 The PFC division also deals with the various
regarding submission of additional information along
issues of Direct Benefit Transfer (DBT) in coordination
with the EFC Memorandum aligning with the objectives
with the DBT Mission, Aadhaar seeding beneficiary’s data
to ensure quality spending by the Central Government.
base and the use of the Public Financial Management
Additionally, guidelines were issued during October
System (PFMS) in order to have end-to-end digitized
2025 regarding inclusion of Output Outcome Monitoring
information on all central expenditures encompassing
Framework (OOMF) targets/ achievements in the Final
CSSs, CSs, subsidies and other expenditure
EFC Memorandum for Schemes ending on 31st March,
3.7 This division is responsible for the preparation of 2026 and to be continued during the 16th Finance
outcome budgets for all Central Ministries/Departments in Commission Cycle.
81Annual Report 2025-2026
4. PROCUREMENT POLICY DIVISION 4.3.3 Many developments in public procurement
policy form the last revision of manuals such as policy
4.1 A Public Procurement Cell (PPC) was set up in initiatives, clarifications, stakeholders deliberations were
this Department in June, 2011 to take follow up action subsumed in the revised manuals. The revised manuals
on the Report of the Committee on Public Procurement primarily focus on enhancing ease of doing business for
(CoPP) and for related matters such as drafting of rules suppliers and providing greater clarity for procurement
and setting up of a Central Public Procurement Portal. professionals.
The Cell was gradually strengthened and a Division called
4.3.4 A wide range of topics have been rewritten
Procurement Policy Division (PPD) was created.
such as clarifying extent of applicability to various
entities, categorization of procurements, conflict of
4.2 The Division deals with the following items
interest, interest-free advance payments, new forms of
of work:-
performance securities, outsourcing procurement, auto-
i. Public Procurement legislation and rules, extension of bids, capping price variation and liquidated
notifications, orders there under; damages, mitigating cartel formations, reverse auction,
rate contracts, withdrawal by L1 bidders etc.
ii. Policies relating to Public Procurement including
administration of General Financial Rules 4.3.4 In July 2024, revised Manual for Procurement
2017 on procurement of goods and services of Goods, Second Edition, 2024 has been published.
and contract management; policies relating to Manual for Procurement of Consultancy Services and
mandatory or preferential procurement; Manual for Procurement of Non-Consultancy Services
have been issued in August, 2025. These Manuals are
iii. Matters relating to standardization of procurement
available at the Website of Department of Expenditure,
related documents;
Ministry of Finance i.e. doe.gov.in.
iv. All matters related to Central Public Procurement
4.4 Capacity Building
Portal (CPPP) set up for publishing information
relating to Public Procurement; 4.4.1 It is imperative that the executives/ officers
engaged in public procurement process have thorough
v. Matters relating to electronic procurement;
knowledge of all the relevant rules, regulations and
vi. Professional standards to be achieved by officials
procedures of public procurement. For the purpose,
dealing with procurement and suitable training
weekly Training Programmes on Public Procurement are
and certification requirements for the same; conducted in Arun Jaitley National Institute of Financial
vii. Interface with International bodies on matters Management (AJNIFM), Faridabad, Administrative
Staff Collage of India, Hyderabad & Indian Institute of
relating to Public Procurement.
Management, Visakhapattnam with a view to educate
viii. Matters related to operational issues of
and familiarize the concerned executives/ officers with all
Government e-Marketplace (GeM).
the relevant rules, regulations and procedures of public
ix. Handling of proposals relating to Global Tender procurement. Three pilots basis traning programs in FY
Enquiry (GTE) received from all Central Ministries. 2025-26 on public procurement are also approved for
Indian Institute of Corporate Affairs (IICA), Gurugram.
4.3 Revision of Manuals Around 2000 officers per annum are being trained.
4.3.1 Department of Expenditure has published three 5. OFFICIAL LANGUAGE
manuals viz. Manual for Procurement of Goods, 2017,
5.1 Activities related to progressive use of official
Manual for Procurement of Consultancy and Other
language
Services, 2017 and Manual for Procurement of Works,
2019. Subsequently, all three Procurement Manuals
Department of Expenditure is responsible for the
(namely Goods, Services & Works) have been updated
implementation of provisions of Section 3(3) of the Official
(in June 2022) and all procurement related instructions
Languages Act, 1963 and Official Languages Rules,
issued by Central Vigilance Commission (CVC) have been
subsumed into these Manuals. 1976. Hindi section of the Department of Expenditure
is also responsible for coordination and follow-up
4.3.2 This Department is in process of further action on the suggestions and instructions given by the
throughout revision of these Manuals and in this Central Hindi Committee, Parliamentary Committee
process Manual for Procurement of Goods, Manual for
on Official Language, Joint Hindi Advisory Committee,
Procurement of Consultancy Services and Manual for Central Official Language Implementation Committee
Procurement of Non-Consultancy Services (developed and Departmental Official Language Implementation
afresh) have already been issued. Committee from time to time regarding progressive use
82Department of ExpenditureII
of Hindi. Implementing various incentive schemes to received from Members of Parliament and other important
promote the use of Hindi in official work, setting up check persons are promptly replied to and requisite follow-up
points, to get notified Subordinate Offices/Institutions action is ensured.
under Official Language Rule 10(4), issuing individual
5.5 Hindi workshop
orders under Official Language Rule 8(4) for doing their
all the assigned official work in Hindi, nominations for 5.5.1 Hindi workshops are organized on regular basis
Hindi language training and organizing Hindi Divas/Week/ in the department to help the officers and employees to
Fortnight are also its other functions. Besides, the Hindi overcome the practical difficulties faced by them working
Section makes efforts to work in collaboration with the in Hindi. During the year, Hindi workshops were organized
Sections/Divisions/Offices of the Department in achieving on different subjects, in which a total of 94 officers/
the targets which has been set for the implementation of employees of the department have been trained.
Official Language Hindi in the Annual Programme issued
5.6 Hindi Fortnight and Award Distribution
by the Department of Official Language every year.
Ceremony
5.2 Compliance with the Official Language Acts,
Rules and Statutory provisions 5.6.1 On the occasion of Hindi Divas, officials
associated with the official language in the department
5.2.1 In the Department of Expenditure, under Section and its subordinate offices participated in the Hindi Divas
3(3) of the Official Language Act 1963, all documents like Celebrations and in the 5th All India Official Language
notifications, resolutions, general orders, rules etc. and Conference organized by the Department of Official
all the papers which are to be tabled in both the Houses Language in Gandhi Nagar, Gujrat on 14th and 15th
of Parliament are issued bilingually i.e. in Hindi and September, 2025 to promote the use of official language
English. Compliance of Official Language Rules, 1976 is Hindi in the official work and to motivate employees for
being ensured and in particular the Rule 5 of the Official progressive use of Hindi in their day-to-day work, “Hindi
Language Rules, 1976 is being complied by as per its Fortnight” was also organized in the department from
true spirit. 14 to 28 September, 2025. On this occasion, a number
of competitions i.e., Noting and Drafting in Hindi,Hindi
5.3 Monitoring and inspection
Essay, Hindi Translation and Language Knowledge,
5.3.1 To ensure compliance with the Official Language typing in Hindi, General Language Knowledge (For
Policy of the Union, the Department issue letters/circulars MTS), Hindi Poem Racitation and Hindi Prashn Manch
from time to time to increase original correspondence in etc. were organized. Many officers and employees of the
Hindi in the Sections and its subordinate offices. department participated in these competitions/campaign
with great enthusiasm.
5.3.2 During the year, the Hindi Section of the
Department of Expenditure conducted official language 5.7 Incentive Scheme
related inspections of various sections/divisions of the
5.7.1 In order to promote official work in Hindi in the
department and its subordinate/attached and autonomous
department, the ‘Incentive Scheme for doing official work
offices. Suggestions were given to overcome the
(either in physical or electronic form) primarily in Hindi’,
shortcomings found during official language inspections
initiated by the Department of Official Language this
and reviewing the inspection questionnaire. The policy of
year, has also been implemented in the Department of
the Government regarding the promotion and propagation
Expenditure. This year, total 7 employees participated in
of the official language says that the use of Hindi should be
the scheme and were rewarded with the prize.
increased in official work with motivation, encouragement
and goodwill. With such an approach, the Department of 5.8 Departmental Official Language
Expenditure takes utmost care. Implementation Committee
5.4 Translation work 5.8.1 Departmental Official Language Implementation
Committee has been constituted in the Department of
5.4.1 Various Cabinet Notes, Notifications, Guidelines,
Expenditure. Meetings of this committee are being held
General Orders, Tenders, Budget related documents,
regularly in every quarter under the chairmanship of
Demands for Grants, Annual Reports, starred
Additional Secretary (Personnel) and In-charge Official
and unstarred Parliamentary Questions and their
Language. In the meeting, the quarterly progress reports
answers, Parliamentary Assurances, Papers related to
received from the sections/offices of the department
Parliamentary Committees, Press releases and letters
regarding the progressive use of Hindi are reviewed in
received from the Office of the Finance Minister and
detail against the targets set in the annual programme
Minister of State for Finance are translated by the Hindi of department of Official Language. During the review,
Section of the Department of Expenditure. Translation of instructions have been issued to remove the shortcomings
various urgent type of documents received in the section and to increase the use of Hindi in government work and
are also done in regular time bound manner. Letters achieve the given targets.
83Annual Report 2025-2026
5.8.2 Apart from this, in the meeting, solutions to been sent to the Department of Revenue for necessary
the problems faced by the officers/employees of the action.
department in promoting the progressive use of official
6. INTEGRATED FINANCE UNIT (IFU)
language Hindi in government work are discussed.
Appropriate follow-up action is taken to comply with
6.1 The Integrated Finance Unit works under
the directions given by the Chairperson to ensure
Additional Secretary & Financial Adviser (Finance) and
implementation of Official Language Policy in the
deals with the expenditure and Budget related proposals
Department, 100% compliance of Section 3(3) of the
under Grant No.31 - Department of Expenditure which
Official Languages Act, 1963, compliance of various
includes (i) Secretariat General Services covering the
check points issued for this purpose, uploading of only
establishment budget for the Department of Expenditure
bilingual material on the Department's website etc.
(Main Secretariat), O/o Controller General of Accounts,
5.9 Joint Hindi advisory committee O/o Central Pension Accounting Office, O/o Cost
Accounts Branch and O/o Chief Controller of Accounts;
5.9.1 The Finance Ministry has a Joint Hindi Advisory and (ii) Other Administrative Services covering the budget
Committee of the Department of Revenue, Department of for Institute of Government Accounts and Finance,
Expenditure, Department of Investment and Public Asset National Institute for Financial Management, 8th Central
Management (DIPAM) and the Comptroller and Auditor Pay Commission and Contribution to International Body
General of India (CAG). The formation and meetings of (AGAOA).
the Joint Hindi Advisory Committee are organised by the
Department of Revenue. The Department of Expenditure 6.2 This Unit also monitors the Monthly expenditure
is also a member of this committee. The process of under Grant No.31 – Department of Expenditure. The
reconstitution of the committee is done by the Department allocations under Grant No.31-Department of Expenditure
of Revenue. The nominations received in this regard have are as under:
(Rs. in crore)
Grant No. Budget Estimates 2025-26 Revised Estimates 2025-26
31 – Department of Expenditure 603.83 510.87
6.3 The Integrated Finance Unit expeditiously
Article 150 of the Constitution, the Annual Appropriation
examines and disposes the financial and expenditure Accounts (Civil) and Union Government Finance Accounts
proposals pertaining to the Department of Expenditure are compiled and prepared by CGA and submitted by
including the proposals for appointment of consultants, Government to Parliament which is the basis of the
deputation of officers abroad, payments towards Course audit report on the Union accounts, by the Comptroller
Fees to National Institute of Financial Management etc. and Auditor General of India(C&AG). Along with these
duly observing austerity instructions issued by the Govt documents, a macro level, annual overview of financial
information with concise analysis, titled “Accounts at a
from time to time.
Glance”, is prepared and circulated in the Parliament.
6.4 The expenditure trend of Grant No.31-DoE
7.3 CGA also formulates policies relating to general
is monitored consistently and strict control has been
principles, form and procedure of accounting for the
exercised over the expenditure. A feedback report from
central and state governments, in consultation with the
Financial Advisers, which covers the entire range of the
C&AG. It administers the process of payments, receipts
Department’s activities, is regularly submitted to the
and accounting in central civil Ministries/Departments;
Secretary (Expenditure) on monthly basis through DO
and prepares, consolidates and submits the monthly and
letter.
annual accounts of the central government (e.g. a monthly
7. CONTROLLER GENERAL Of ACCOUNTS MIS “Review of Union Government Accounts” and the
“Annual Provisional Accounts”), through a robust financial
7.1 The Controller General of Accounts (CGA), in reporting system aimed at effective implementation of the
the Department of Expenditure, Ministry of Finance, is government fiscal policies.
the Principal Accounting Adviser to Government of India
and is responsible for establishing and maintaining a 7.4 The organization, through its Internal Audit Wings
technically sound Management Accounting System. in respective Ministries, is responsible for assessing
the adequacy and effectiveness of internal controls and
7.2 The Office of CGA prepares monthly and annual
soundness of financial systems in the Ministries and
analysis of expenditure, revenues, borrowings and
various fiscal indicators for Union Government. Under Departments. Internal Audit activity helps the organization
84Department of ExpenditureII
accomplish its objectives by bringing a systematic, vi. The Finance Accounts of the Central Government
disciplined approach to evaluate the effectiveness of risk comprises of the accounts of the Central
management, control, and governance processes. Government as a whole and includes transactions
of Civil Ministries/Departments, Ministries of
7.5 Financial Reporting - Monthly and Annual
Defence and Railways and the Departments
i. The office of the Controller General of Accounts of Posts & Telecommunication. It presents the
responsible for Monthly Consolidation of the accounts of receipts and outflows of the Central
Union Government Accounts of India, a detailed Government for the year, together with the
analysis of the monthly trends of receipts, financial results disclosed by different accounts
payments, deficit and its sources of financing and other data coming under examination. These
are presented to the Union Finance Minister accounts include the Revenue and Capital
every month. The documents, in the form of Account, Public Debt account and other liabilities
‘Review of Union Government Accounts’ has and assets worked out from the balances in the
over a period of time evolved into an extremely accounts.It is supplemented by Appropriation
useful tool for monitoring budgetary compliance Accounts for Grants and charged Appropriation
and a handy MIS reference for decision making. presented separately. The Finance Accounts are
In consonance with the Government’s policy an Auditor's presentation of the general accounts
towards transparency in public functioning, an of the Government to Parliament.
abstract of the Union Government accounts is
vii. The Finance Accounts comprises of two Parts -
also released every month on the Internet. The
Part I and Part II. Part I presents the summarized
monthly and quarterly data can be accessed
statements in respect of Revenue, Capital, Debt,
at the website http://www.cga.nic.in.This data Deposit, Suspense and Remittances transactions
is also compliant with the international data and Contingency Fund, while Part II has detailed
standards of the International Monetary Fund. statements in respect of these transactions,
along with other related statements. Part II of
ii. With the advancement of technology this office
the Finance Accounts is further sub-divided
has started providing weekly and monthly
into two sections ‘A' &‘B'. While section ‘A’
flash figures of receipts, payments and deficit
comprises of detailed accounts and statements
to Ministry of Finance for quick management
relating to Receipts and Expenditure on Revenue
decision. Daily flash figures are also provided in
and Capital accounts, section ‘B’ has detailed
the month of March, in order to closely monitor
accounts and statements relating to Debt,
various financial parameters and targets.
Deposit, Suspense & Remittances transactions
iii. In tune with the development in best practices, and Contingency Fund.
Controller General of Account’s Office also viii. The basic inputs for compilation of Finance
prepares Provisional Accounts of the Government Accounts are as follows: -
of India within two months of completion of the
(a) Statement of Central Transactions;
financial year. The professionalism with which
(b) Journal Entries;
these accounts are prepared is evident from the
(c) Prior Periods Adjustments;
high accuracy level of about 99% in the last few
years as only marginal variations have been (d) Proforma Adjustments; and
observed between the Provisional Accounts and (e) Progressive figures up to the end of the
final audited Annual accounts. previous year.
iv. The Finance Accounts of the Union Government ix. While the first four inputs mentioned above are
is submitted to Parliament under the provision of received from the various accounting authorities,
progressive figures up to the end of previous year
Article 151 of the Constitution of India.
are available in the records of Finance Accounts
v. The Finance Accounts of the Union Government Section.
presents the accounts of Receipts and x. The annual compilation “Accounts at a Glance”
Disbursements for the Union Government provides a macro level overview of the financial
information, like estimates and actual of receipts
together with the financial results disclosed by
and expenditure, assets and liabilities, savings
the Revenue and Capital accounts, the accounts
and reserves, investments, disinvestments,
of the Public debt and the liabilities and assets debt and deficits of the Union Government, in
are worked out from the balances recorded in the reader-friendly format with concise analysis
accounts. and graphical representation, at one place. It
85Annual Report 2025-2026
is prepared on the basis of audited information Under SNA-SPARSH, the Central share of funds
contained in Finance Accounts and Appropriation is released only when States submit corresponding
Accounts. claims, ensuring that releases are strictly need-based.
In earlier systems bulk releases were made to bank
7.6 Public Financial Management System (PFMS) :-
accounts of implementing agencies and there were delays
Public Financial Management System (PFMS), in contribution of State Share by state governments.
designed, developed, and implemented by the Controller SNA SPARSH ensures that State Share is available
General of Accounts (CGA) under the supervision of before payments are made to beneficiaries, which
the Department of Expenditure, represents a landmark allows for timely and uninterrupted disbursements to the
initiative in public finance management with strong beneficiaries. The system further strengthens payment
emphasis on good governance and citizen-centric service processes by enabling Direct Beneficiary Transfer (DBT)
delivery. As a state-of-the-art, web-based platform, PFMS transactions executed directly by the RBI, based on
has enabled full digitalization of payment systems across payment instructions transmitted electronically from State
76 Civil Ministries/Departments, covering all releases IT systems.
made by the Central Government to State Governments,
SNA-SPARSH supports both account-based
Implementing Agencies, Beneficiaries, Vendors, and
DBT—where payments are credited to beneficiaries’ bank
other stakeholders.
accounts using account details—and Aadhaar-based
PFMS provides comprehensive modules for end- DBT, in which funds are transferred to Aadhaar-seeded
to-end digital payments, collection of receipts, accounting, bank accounts. To further facilitate Aadhaar-based
reconciliation, and financial reporting. It also supports DBT payments, the RBI has introduced a Direct Access
effective cash management through the Just-in-Time Model that leverages NPCI’s Aadhaar Payment Bridge
(JIT) release mechanism, ensuring complete traceability System (APBS). This ensures smoother integration, faster
of funds from sanction to credit in the beneficiary’s bank processing, and greater reliability in DBT transactions
account. under SNA-SPARSH.
As a transformative financial reform, PFMS has SNA SPARSH has been adopted in all 28 States
significantly strengthened financial administration in and 3 UTs with Legislature. 15 States have started
Aadhaar-based DBT payments through SPARSH DBT.
the Government of India and contributes directly to the
All Central Sponsored Schemes have been notified for
objectives of the Digital India Initiative.
on boarding on SNA SPARSH w.e.f 1.11.2025
7.6.1 Just-in-Time (JIT) Fund Release
7.6.3 Treasury Single Account (TSA)
The JIT mechanism ensures fund releases only
The TSA system, developed in 2017-18, was
when required, preventing unnecessary accumulation of
introduced to optimize cash management by eliminating
idle funds. The reform is implemented through two major
bulk cash transfers to Autonomous Bodies (ABs).
systems:
Instead, ABs draw funds through assignments via their
• SNA-SPARSH for Centrally Sponsored
RBI accounts on a Just-in-Time basis. The Pilot roll-out
Schemes (CSS)
was done in 2019 with ICMR and IIT Delhi. In 2022 TSA
• Treasury Single Account (TSA) and Hybrid was adopted for Central Sector schemes. TSA Hybrid
TSA for Central Sector (CS) schemes was introduced in 2024 for agencies below second level
and private entities, with payments to bank accounts
These mechanisms enable direct payments to
in scheduled commercial banks. Around 3,500 TSA
vendors/beneficiaries, and support a transition from the
accounts have been opened in RBI, covering ABs, CNAs,
traditional credit-push approach to a more efficient debit-
and sub-agencies. 250 Central Sector/other expenditure
pull model.
schemes onboarded to TSA/TSA Hybrid.
7.6.2 SNA-SPARSH
7.6.4 e-Bill System – End-to-End Digitisation of Bills
and Claims Processing
SNA-SPARSH integrates the Public Financial
Management System (PFMS), State Financial In alignment with the Digital India Initiative of
Management Information Systems (State FMIS), and the Hon’ble Prime Minister, the Government of India
the Reserve Bank of India’s e-Kuber platform to facilitate undertook a major reform to fully digitise the processing
seamless Just-in-Time (JIT) fund flows for Centrally of bills and claims submitted by vendors, suppliers,
Sponsored Schemes (CSS). By linking the flow of funds contractors, and all other categories of payees. To
directly to actual expenditure, the system enhances achieve this objective, an end-to-end e-Bill system was
transparency, accountability, and efficiency in the Centre– developed for implementation across all Civil Ministries
State financial interface. and Departments.
86Department of ExpenditureII
The e-Bill initiative was officially launched on 2 quicker payments after the delivery of goods and
March 2022. A phased rollout strategy has been services. The system enables real-time tracking
adopted to cover all offices of the Government of bill status, which enhances transparency and
of India. It is successfully implemented in 530 minimizes the need for follow-ups by claimants.
Pay & Accounts Offices (PAOs) across all Civil Additionally, the fully digital workflow creates
Ministries and Departments. Digital workflows a comprehensive and tamper-proof audit trail,
are now operational for submission, verification, strengthening accountability in the government
processing, and payment of all categories of bills/ payment system.
claims.
A robust Document Management System
Under the e-Bill framework, vendors/suppliers/ (DMS) forms an integral component of the
claimants can digitally upload their bills and e-Bill platform. The DMS stores all electronic
supporting documents using Digital Signature
documents including bills and invoices, Sanction
Certificates (DSCs) or Aadhaar-based e-sign.
orders, vouchers, pass orders/return orders.
The system enables seamless online processing
These documents are accessible to authorized
by Drawing and Disbursing Officers (DDOs),
users for processing, review, and post-facto
Pay & Accounts Offices (PAOs), and other
scrutiny, including audits. The digital repository
financial authorities. The e-Bill system provides
enhances record-keeping efficiency and reduces
greater convenience to vendors, suppliers, and
contractors by allowing them to submit bills and dependency on physical archives.
claims online from any location, eliminating the
7.7 Details of progress on DBT/Aadhaar linkage
need for physical visits to government offices.
with DBT in respects of Schemes being
Digital submission also reduces the overall bill
implemented by the divisions: -
payment cycle, enabling faster processing and
Financial Year No. of Schemes Total transactions Amount Paid
(registered at (in Cr.) (in lakh Cr.)
PFMS for DBT)
2014-15 56 2.19 0.06
2015-16 90 6.75 0.22
2016-17 162 10.11 0.31
2017-18 296 15.90 0.85
2018-19 414 50.97 1.39
2019-20 507 102.37 2.46
2020-21 603 126.88 2.89
2021-22 891 195.08 3.12
2022-23 1,081 258.34 3.24
2023-24 1,146 266.42 3.48
2024-25 1,169 286.43 3.75
2025-26 (till 31-10-2025) 940 163.43 2.22
7.8 Major DBT Schemes FY 2025-26: -
Data period: 01-04-2025 to 31-10-2025
Sl.No. Name of Scheme No. of Transactions Amount Paid
(in Cr.) (in Cr.)
1. Mahatma Gandhi National Rural Employment Guarantee [MGNREGA] 23.60 40,000.53
2. Pradhan Mantri Kisan Samman Nidhi Yojna [PMKISAN] 10.76 21,523.59
3. Pratyaksh Hanstantrit Labh [PAHAL] 82.83 12,657.34
4. National Social Assistance Program [NSAP] 13.64 17,593.54
5. Pradhan Mantri AwasYojna Rural [PMAY-R] 0.86 33,243.95
6. PM SURYA GHAR MUFT BIJLI YOJANA-[4271] 0.09 6,971.35
87Annual Report 2025-2026
7.9 FY 2025-26 (till October, 2025) Aadhar Linkage parts (i) RPR, 2022 and (ii) Subsidiary Instructions to
with DBT Schemes: - RPR, 2022 (detailed procedures and forms) RPR, 2022
contains rules regulating the custody of the Consolidated
Number of Successful Transactions Fund of India, the payment of money into such funds,
the withdrawal of money therefrom, the custody of public
Aadhar Based Account Based
money other than those credited to such funds received
1,32,09,46,653 31,33,63,554 by or on behalf of the Government of India, their payment
into the Public Account of India and the withdrawal of
Total Transaction:1,63,43,10,207
money from such Account and all other matters connected
80.83% of total transaction is made through Aadhaar therewith or ancillary thereto.
Payment Bridge channel.
7.11 Monitoring Cell
7.10 Technical Advice on Accounting matters
7.11.1 Monitoring Cell, is entrusted with the work of
7.10.1 Article 150 of the Constitution provides that “The co-ordination of timely submission of Action Taken
accounts of the Union and of the States shall be kept in Notes (ATNs) on C&AG paragraphs, Action Taken
such form as the President may, on the advice of the Replies (ATRs) on PAC paragraphs and Explanatory
Comptroller and Auditor-General of India, prescribe.” Notes (ENs) on saving of Rs. 100 crore and above and
Note to Rule 3 of Government Accounting Rules, 1990 excess expenditure, as per direction of Public Accounts
provides that “this function is exercised by the Controller Committee. Submission of Action Taken Notes/Action
General of Accounts, Ministry of Finance (Department of Taken Replies and Explanatory Notes are being done
Expenditure) on behalf of the President of India.” through Audit Paras Monitoring System (APMS) Portal,
which facilitates online submission of ATNs/ATRs/ENs to
7.10.2 Expenditures are classified according to the Lok Sabha Secretariat. Monitoring Cell is administrator of
function, programme, and their economic nature using APMS Portal dealing with its development, maintenance
a fifteen-digit numerical code. Receipts are classified and providing Quarterly training to users of APMS Portal.
according to their nature and source.
7.11.2 The number of ATNs/ATRs on C&AG/PAC
7.10.3 In terms of Rule 26 of GAR, 1990, the Controller paragraphs and Explanatory Notes submitted/settled
General of Accounts office administers the ‘List of through APMS Portal to the Lok Sabha Secretariat (PAC
Major and Minor Heads of Account of Union and States Branch) during 2025-26, are as under: -
(LMMHA)’, which contains the classification of account
heads upto Minor Head level (and some Sub/Detailed Paragraphs/Explanatory
Heads under some of them) in Government Accounts. Notes submitted to PAC
S.No. Subject
Any amendment in LMMHA is carried out on advice of during 01.04.2025 to
the Comptroller and Auditor General of India (C&AG). 12.11.2025
In cases involving policy on Accounting Procedure, the
1. C&AG Paragraphs 689
Budget Division, Department of Economic Affairs, Ministry
of Finance is also consulted. 2. PAC Paragraphs 249
7.10.4 The Object Heads have been prescribed under 3. Explanatory Notes 63
Government of India’s Orders below Rule 8 of Delegation
7.12 Institute of Government Accounts and
of Financial Power Rules,2024. The power to amend or
Finance (INGAF)
modify Standard Object heads and to open new Object
Heads rests with the Department of Expenditure of 7.12.1 The Institute of Government Accounts & Finance
Ministry of Finance on the advice of the Comptroller and
(INGAF) is the training arm of the Controller General of
Auditor General of India. Department of Expenditure in
Accounts (CGA), Department of Expenditure, Ministry of
consultation with Controller General of Accounts Office,
Finance, Government of India. Initially known as the Staff
Comptroller and Auditor General of India (C&AG) Office
Training Institute, it was set up in February, 1992 to train
and Budget Division of Department of Economic Affairs
personnel in specific areas of accounting, administrative
(DEA) have notified the revised Object Heads on 16-12-
matters and financial management. In the years following
2022 and have been implemented with effect from the
its inception, the Institute has evolved to become a
financial year 2023-24.
premier training center in the spheres of Government
Accounting and Public Financial Management. In addition,
7.10.5 Controller General of Accounts administers
the Institute has Regional Training Centers (RTCs) at
Central Government Account (Receipts and Payments
Chennai, Kolkata, Aizawl and Mumbai. The institute has
Rules) and framing or revision of rules and other manuals
been recognized as ”AtiUttam” Central Training Institute
relating thereto. Central Government Account (Receipts by National Accreditation Board for Education and
and Payments) Rules, 2022 have been prescribed in two Training (NABET).
88Department of ExpenditureII
7.12.2 INGAF is a premier institute in the field of /Departments in various committees e.g.
imparting training to participants from countries under Expenditure Finance Committees (EFC), State
ITEC programme in collaboration with Ministry of Finance Committees (SFC), Public Investment
External Affairs. In line with this, in Financial Year Board (PIB), Delegated Investment Board (DIB),
2025-26, INGAF is organizing 4 ITEC Courses namely
Advisory Committee for consideration of Techno-
“Government Accounting and Financial Management”,
economic viability of Major / Medium, Flood
“Budget Formulation and Execution with Special focus
Control and Multipurpose Projects;
on Gender and Child Budgeting”, “Public Expenditure
Management” and “Digital Payment System and ii. Examining time & cost overruns or projects in
Infrastructure in India” in which participants from various Revised Cost Committees (RCC) for identification
ITEC partner countries will be taking part. of reasons relating to time and cost overruns and
providing inputs for cost rationalization;
7.13 Mission Karmyogi and Digital Learning:
iii. Fixing advertisement rates for Print Media, FM
INGAF continuously thrives to raise its training
Radio, Television, Internet and social media for
profile both in terms of magnitude and eminence. To
Central Bureau of Communications (erstwhile
facilitate and build the capacity of the officials, INGAF
DAVP);
in collaboration with Capacity Building Commission has
meticulously curated and digitized the following courses iv. Assisting Central Government Ministries/
which are now live on i-GOT portal:- viz Departments/ Organizations in price/cost
related issues, in fixing fair prices for various
i. Concept of Budget and Constitutional framework
services/products and rendering advice to
ii. Fiscal Responsibility and Budget Management
various Ministries/ Departments in cost matters
Act 2003
and for determination/fixation of fair prices of
iii. Budget formulation in Government of India the products and services supplied/rendered to
iv. Compilation of Monthly, Appropriation and Government;
Finance Accounts v. Undertaking major studies like determination of
cost / fair price of postal products/stamps and
v. Budget execution and Monitoring
coins supplied by SPMCIL to postal department
vi. Budget Documents, Presentation and Passing
& RBI respectively, rails supplied by SAIL and
of Budget traction supplied by BHEL to Ministry of Railways,
vii. Evolution and Overview of Public Financial Contraceptives supplied by HLL Lifecare Limited
to Ministry of Health & Family Welfare and
Management System
Continuously Operating Reference Stations
viii. Accounting Standards -Concept and International
(CORS) Services provided by Survey of India etc;
Best Practices - IPSAS
vi. Examination/verification of claims between
ix. Principles, structure and Classification of Government Departments/ Public Sector
Government Accounting Undertakings and suppliers arising out of
x. Recording, reconciliation, Suspense balance and purchase contracts;
Banking arrangement vii. Review of User Charges
xi. Accounting Procedure of Advanced Accounting viii. Examination of cost estimates, evaluation of the
Processes. financial feasibility and other financial parameters
of the High value Infrastructural Projects like
8. CHIEF ADVISER COST
Rail, Highways, Power, Education Sector etc.
8.1 The Office of Chief Adviser Cost (CAC) is one referred by DoE;
of the attached offices of Department of Expenditure, ix. Valuation of immovable mine infrastructure
Ministry of Finance.
assets relating to coal blocks;
8.2 The Office of CAC is rendering advice to x. Fixing of price of destruction of EVMs and Fair
the Central Government Ministries/ Departments/ Price of Production of EVMs (BV/CV/VVPAT)/
Organizations on Price/Cost related issues and financial M2-M3 VVPAT
matters, covering wide spectrum of sectors/areas. The
xi. Fixation of rate of Nuclear Grade Ammonium-Di-
O/o CAC is engaged in the following major thrust areas
Uranate (NGADU) supplied by IREL to NPCIL;
like:
i. Providing inputs for rationalization of cost xii. Reviewing the rates of milling charges of paddy
of projects / schemes of various Ministries based on value of various by-products;
89Annual Report 2025-2026
xiii. Fixing of fair price of Tear Smoke Units produced following major multidisciplinary Inter-Ministerial/ Expert
by BSF Tekanpur; Committees:
xiv. Revision of Fixed Cost of Urea manufacturing i. General Body of Arun Jaitley National Institute
units; of Financial Management, Faridabad under the
xv. Exploratory drilling costs of coal and lignite under Chairmanship of Union Finance Minister;
Central Sector Scheme. ii. Board of Governors of Arun Jaitley National
Institute of Financial Management, Faridabad
8.3 Cadre Administration:- The Office of CAC
under the Chairmanship of Finance Secretary;
is the cadre controlling office for the Indian Cost
Accounts Service (ICoAS),which broadly encompasses iii. Special Committee for Inter-linking of Rivers
Recruitment, transfer/posting and career progressions of under the Chairmanship of Union Minister for Jal
ICoAS Officers. It also looks after training requirements of Shakti;
the officers for continuous upgradation of their knowledge iv. Advisory Committee for consideration of Techno-
and skills, in addition to rendering professional guidance economic Viability of Major/ Medium, Flood
to the ICoAS officers working in different participating Control and Multipurpose Projects (coordinated
organizations. ICoAS has the sanctioned strength of 230 by Central Water Commission) under the
officers which are recruited at Level-10 by UPSC from Chairmanship of Secretary (Water Resources);
among the professionally qualified Cost Accountants/
v. Expert Committee on Nutrient based Subsidy
Chartered Accountants.Thirty Four officers recommended
Policy of Fertilizers;
by UPSC during 2024-25 joined the service and these
vi. National Pharmaceutical Pricing Authority
were deployed on induction training for two weeks at
(NPPA) under the Chairmanship of Chairman,
ISTM, Delhi.
NPPA;
8.4 Cadre Review:- The Office of Chief Adviser Cost
vii. Governing Body of Tear Smoke Unit, Border
has constituted Cadre Review Committee vide Office
Security Force (BSF), Tekanpur, (Gwalior) under
Order No. A-32013/1/2025-CAC dated 10.07.2025.Given
the Chairmanship of Director General, BSF;
the increasing financial and costing complexities, there
viii. Committee for review of Policy issued by MHA on
is an urgent need for financial experts to assist MDOs in
fixation / recovery of CAPFs Deployment Charges
addressing emerging challenges. The expertise of ICoAS
in the States for various duties;
officers can play a vital role in strengthening the financial
management and decision-making processes of these ix. Committee to determine the base price of Poppy
organizations.Four Meetings of Cadre Review Committee Straw;
have been held till November’25. x. Committee on Comprehensive Multi Hazard Risk
Financing Strategy (CMHRFS) being developed
8.5 Representation in Revised Cost Committees
under National Cyclone Risk Mitigation Project
:- In pursuance of Ministry of Finance, Department of
(NCRMP), NDMA;
Expenditure's Office Memorandum No. 24(35)/PF-II/2012
xi. As members of various Project Appraisal
dated 05th August, 2016, Office of Chief Adviser Cost
& Technical Scrutiny Committees (PATSC)
has represented in 40 Committees for Revision of Cost
constituted by NHAI for appraisal of Road
Estimates in various Ministries/ Departments involving
Construction Projects falling under Bharatmala
a total value of Rs.17,869/- crore during the period
Project.
from April, 2025 to October, 2025. Proactive role of this
xii. Committee constituted by MoPNG to consider the
Office in the Revised Cost Committee has facilitated
recommendations of O/o CAC made in the Report
rationalization of revised cost estimates.
No. 8932 on the project of feed stock subsidy to
8.6 Representation in EFC/SFC/PIB/DIB :- This BCPL/Assam Gas Cracker Project.
Office has represented and offered comments in 23 EFC/ xiii. Committee constituted for determining/verifying
SFC/PIB/DIB meetings of various Ministries/Departments the LVA content and performance multiplier.
during the period from April, 2025 to October, 2025. xiv. Expert Group to recommend energy norms for
Urea units
8.7 Committees Represented :- O/o CAC owing to
their expertise in costing/finance/commercial accounting xv. As member of Rate Structure Committee of CBoC
have also served as Chairman/Members on the (erstwhile DAVP).
90Department of ExpenditureII
9. ARUN JAITLEY NATIONAL INSTITUTE defence officers transitioning to corporate roles.
OF FINANCIAL MANAGEMENT This Executive Business Management program
(AJNIFM) equips participants with essential business and
management skills to support their reintegration
9.1 Introduction
into the corporate sector.
AJNIFM was set up in 1993 as a Society. The vi. Apart from its regular long term programs,
Union Finance Minister is the President of the AJNIFM
• AJNIFM conducts short term training
Society and Secretary (Expenditure) is the Chairman of
programs on various aspects of Finance and
the Board of Governors. It began with the core objective of
Public Financial Management. Participants
imparting training to Officer Trainees (Probationers) of the
include officers from Central Government,
six organized Accounts and Finance services. However,
State Government, UT Government,
over the years, the Institute has expanded its activities
Autonomous Bodies, PSUs, and Banks etc.
with four long term programs and a dynamic repertoire of
MDPs is one of the major training activity
short-term programs. In the process, AJNIFM has been
undertaken by AJNIFM for capacity building
able to carve a unique identity for itself as a premier
of the officers of different organizations.
institute of Ministry of Finance in professionalizing Public
• IGOT-Strengthening Capacity Building
Financial Management and Public Procurement.
through Digital Learning: The Integrated
9.2 Performance and Achievement Government Online Training (iGOT) platform,
a cornerstone of the Government of India’s
Till March, 2025, AJNIFM has conducted 122
Mission Karmayogi, is revolutionizing
Management Development Programs (MDPs) and 3654
the capacity-building ecosystem for civil
officers have participated. While 04 programs were open servants. By enabling institutions and
for nomination of officers of various organizations, 118 department to deliver targeted, scalable,
programmes were Sponsored conducted for individual and high – impact training programs, iGOT is
organization based on their peculiar needs. fostering a future-ready workforce equipped
to tackle emerging governance challenges.
9.3 Significant developments - Training
Under the aegis of the Capacity Building
Programmes
Commission, the ArunJaitley National
9.3.1 AJNIFM conducts five long term programs. These Institute of Financial Management (AJNIFM)
has successfully launched 21 digital learning
are as under:
courses on the iGOT Karmayogi platform this
i. Professional Training Course - for Officer
year, advancing its mission of strengthening
Trainees of various Accounts and Finance
public finance, analytics and governance
Services of twenty six weeks duration.
capabilities across the civil services.
ii. Master of Business Administration in Financial Most recently, four flagship courses were
Management - for middle-level management inaugurated by Shri V. Vualnam, Secretary,
officers of Central and State Governments, Department of Expenditure reaffirming
Autonomous Bodies, Defence Services., PSUs the government’s focus on innovation-led
capacity building.
and Corporate Sector.
iii. Master of Business Administration (Finance): 9.3.2 These newly launched courses are:
This program aims to train professional who
• FinTech in India: Growth Story and Regulatory
can assume responsible positions in regulatory,
Framework
market intermediaries, banks, mutual funds,
• Disposal of Scrap Goods
asset management companies, stock exchanges,
commodity exchanges, and similar organizations • Cash Flow Statement in Financial Analysis
in both the private and government sectors.
• Investment Management using Fixed Income
iv. Post Graduate Diploma in Government Securities
Accounting and Audit (PGDG&A) – It is a one
Together, the launch of these 21 courses
year programme to upgrade the technical skills
underscores AJNIFM’s commitment to expanding digital
of Group-B officers of the Accounts Department.
learning resources and fostering continuous professional
v. The Directorate General Resettlement (DGR) development for government officials through the iGOT
Course: It is a six months course designed for Karmayogi platform.
91Annual Report 2025-2026
9.4 Major schemes/programmes implemented March 10, 2025 in collaboration with the Department of
through the Departments/Division Expenditure in the campus.
i. MoU between ‘Madhusudan Das Regional 9.6 E-governance Activities
Academy of Financial Management (MDRAFM)
Bhubaneswar’ and AJNIFM on 21.05.2024 for 9.6.1 Dissemination of knowledge on new initiatives of
two years. the Government: Whenever there are new initiatives of
the Central Government, AJNIFM has been mandated
ii. MoU with ISTM on 1st October 2024 for Capacity
to launch special training drives to cover all Government
Building , Research projects, Faculty Exchange,
entities. In fulfilment of this mandate, AJNIFM has
Mission Karmyogi and Resource sharing.
run several training programs on Public Procurement
iii. MoU with CGDA on 07th December, 2024 for
including GeM.
imparting MCTP Phase III, IV & V of IDAS
Officers under CGDA 9.6.2 Capacity Building Commission (CBC) identified 5
areas for Department of Expenditure on which e-Learning
iv. MoU with ISB on 07th December, 2024 for
Course were to be prepared, primarily aimed to address
engaging them as a partner institute for imparting
the competency needs of IFD officers. AJNIFM prepared
MCTP Phase III, IV & V of IDAS officer under
5 e-Learning courses and placed on the i-GoT platform.
CGDA
In the 2nd Phase, AJNIFM is in the process of developing
v. MoU with National Statistical Systems Training
e-Learning courses in 5 more areas, viz, Understanding,
Academy (NSSTA) on 31.01.2025 for mutual
Corporate Financial Statements, Role of Government
exchanges and collaboration for all Governance
Directors in PSUs, Audit Procedure, Data Analytics &
and Public Administration related activities which
Visualization and Understanding Life Cycle Management
will include:
of IT Projects.
a) Capacity Building Research Programmes
10. CHIEF CONTROLLER OF ACCOUNTS
and Consultancy Projects Faculty Exchange
(FINANCE)
for mutually agreed Programmes
b) Mission Karmayogi Resource Sharing 10.1 The Chief Controller of Accounts (CCA) is
overall in-charge of the payment and accounting set
vi. A Memorandum of Understanding (MoU) was
up of the Ministry, supported by Controller of Accounts
signed with the Indian Institute of Public Affairs
(CA), Deputy Controllers of Accounts (DCA), Assistant
(IIPA) on 05.03.2025 to establish a health
Controllers of Accounts (ACA), and field formations of
framework for cooperative institutional relations
Pay and Accounts Offices (PAOs) in each Department.
to emerge and promote cooperation in the areas
of training and capacity building for Civil Servants/ 10.2 Function of the CCA Organization
Government officers etc.
a) Making Payments of all types for the six
vii. A Memorandum of Undertaking (MOU) was Departments; viz, D/o Economic Affairs,
signed with Government e-marketplace (GeM) Expenditure, Revenue, Investment and Public
on 24.09.2025 to modernise public procurement Asset Management, Financial Services and
through a unified, paperless and transparent Public Enterprises.
digital platform and AJNIFM’s mandate to
b) Compilation of the monthly accounts,
advance capacity building and policy advisor in
Appropriation Accounts and Finance accounts
public financial management
pertaining to six departments of the Ministry
9.5 Initiatives relating to Gender Budgeting and of Finance and submission to the office of the
Empowerment of Women Controller General of Accounts for consolidation
into the Accounts of Government of India.
Arun Jaitley National Institute of Financial
c) Compilation of the Internal Debt accounts for the
Management, Faridabad has been nominated as the
Government of India through PAO (Internal Debt
Nodal Centre for Gender Responsive Budgeting at the
and Accounting).
central level by Ministry of Women and Child Development
in 2016. The GRB Cell has been awarded a study by d) Making releases of the funds to States and UTs
ISRO in January, 2025. It hosted a one day workshop with Legislature in respect to the Budgetary
allocation in the Demand “Transfer to States” of
on Financial Inclusion and Women Empowerment in
Department of Expenditure.
December, 2024, featuring insights from academia,
government, and financial sector. The GRB Cell e) Financial reporting to the Chief Accounting
organised a seminar on International Women’s Day on Authority (i.e. the Secretaries of the respective
92Department of ExpenditureII
Departments) and to the Controller General of d. Accounting of different Saving Schemes of
Accounts. Government of India.
f) Conducting Internal Audit for all attached/Sub- e. Calculation of Average Rate of Interest chargeable
ordinate offices under the 6 departments of on the Capital Outlay of the Central Government.
Ministry of Finance.
10.3.2 Internal Audit
g) Conducting Internal audit of the performance
of the Banks in handling Government Schemes The Revised Charter of Financial Advisors
such as Public Provident Fund, Special Deposit released by the Ministry of Finance envisages the
Roles and Responsibilities of the O/o Chief Controller of
Schemes and Senior Citizen Savings Scheme.
Accounts. Accordingly, Internal Audit functions under the
h) Pension authorization under the Pension Rules
control and supervision of the CCA and focuses on the
to the officials retiring on superannuation,
Audit of all the DDOs and subordinate offices including
seeking voluntary retirement and to the families
Banks who are handling Government Schemes such
of deceased employees/pensioners.
as Public Provident Fund, Special Deposit Scheme and
i) Accounting of total receipts and payments of the Senior Citizen Deposit Scheme. This involves appraisal,
entire central Government for CGEGIS (Central monitoring and evaluation of individual schemes and
Government Employees Group Insurance assessment of adequacy and effectiveness of internal
Scheme) and calculation & accounting of interest controls in general, and soundness of financial systems
liability of GOI under both the savings fund and and reliability of financial and accounting reports in
particular. During the year 2025-26 (Upto 30 Nov. 2025)
Insurance fund components of this scheme.
audits of 36 units have been conducted by the Internal
j) Management and settlement of Audit paras of C
Audit Wing, DEA, Ministry of Finance New Delhi.
& AG (PAC, Compliance audit, Financial audit
10.3 Achievements during the year
and Explanatory notes)
a) The Electronic Bill (E-bill) system of processing
k) Settlement of the cases relating to combined
of Bills has been implemented in all of the
pension, pro-rata pension, leave encashment,
6 Departments of Ministry of Finance and is
leave salary and pension contributions, revision
operational in all 25 Pay and Accounts Offices
of pension cases etc. of the absorbed employees under the O/o CCA, Ministry of Finance.
of SPMCIL, after the corporatization of Mints and
b) INDRAA (Internal Debt and Recovery Advanced
Presses, in coordination with the Corporate office
Application) software has been developed for
of SPMCIL, field units and the Administrative
accounting of Internal Debt of Government
Division in the Ministry.
of India. Phase I has been implemented
10.3 Highlights of important functions successfully.
c) The implementation of the 2nd factor biometric
10.3.1 Internal Debt Accounting and Reporting
authentication using FIDO devices to access
a. Accounting of all transactions related to issue of PFMS has been accomplished in all Pay and
New Loans/Govt. Securities raised by Central Account Offices under Ministry of Finance.
Government, repayments, buybacks, securities d) Bill pendency in all the Pay Account Offices is
issued to International Financial Institutions, monitored regularly and has been almost reduced
Special Government of India Securities issued to less than 1% of the total bills.
against investment made by National Small
e) Achieved strong operational efficiency in the
Saving Fund (NSSF), and other special securities timely processing and submission of employees’
on the basis of detailed information provided by NPS contributions under the Ministry of Finance
the Reserve Bank of India, and reconciliation of to CRA-Protean.
all Treasury Bills & Cash Management Bills with
f) Pay & Accounts Office, Secretariat, D/o Revenue
Monthly and Quarterly Statement received from
has been conferred with ISO 9001:2015 for
Public Debt Office, Mumbai and IDMD, Central
Quality Management System for the following
Office, Mumbai.
scope: Cleanliness, Record Management,
b. Preparation of Statement (14 and 14A) related to Debt Internal Audit, Infrastructure Management,
liabilities and submitting it to the Finance Account Human Resource Management and System
Section, CGA Office and Accounting of of Government Management ( IT ).
Securities raised by Government of India. g) E-office has been implemented in all offices
c. Monitoring the timely payments of principal and (including outstation Pay & Accounts Offices)
payment of interest in respect of all such loans. under O/o CCA, Ministry of Finance.
93Annual Report 2025-2026
11. CENTRAL PENSION ACCOUNTING 2011. Total 10,958 grievances were resolved
OFFICE effectively by this Cell w.e.f. 01.04.2025 to
31.10.2025.
11.1 The Central Pension Accounting Office (CPAO)
was established on 1st Jan, 1990 for Payment and 11.3 To endeavor and improve the ease of living of
pensioners and to bring about transparency in the pension
Accounting of Central (Civil) Pensioners and Pension to
authorization process, the recent initiatives taken by
Freedom Fighters, Judges of High Court/ Supreme Court,
CPAO are as follows:
Ex MPs etc. CPAO is a subordinate office under the Office
of the Controller General of Accounts, Ministry of Finance, i. Empanelment of Banks
Department of Expenditure. It has been entrusted with the
responsibility of administering the Scheme of Payment Sl. Banks Remarks
No.
of Pension to Central Government (Civil) Pensioners
including UTs, Delhi Administration except Railways, 1 Kotak Mahindra Authorized to function as
P&T and Defense through authorized Banks. Its core Bank CPPC
functions are:
• Issue of Special Seal Authorities(SSAs) 2 Bandhan Bank Authorized to function as
authorizing payment of pension in fresh CPPC
as well as revision of pension cases to 3 Karur Vysya Authorized to function as
the CPPCs (Central Pension Processing Bank Ltd. CPPC
Centers) of pension disbursing Banks; 4 City Union Bank At integration stage
Ltd.
• Preparation of Budget for the Pension Grant
and accounting thereof; 5 IDFC First Bank Authorized to function as
CPPC
• Audit of CPPCs of pension disbursing
6 Karnataka Bank At integration stage
Banks;
Ltd.
• Maintenance of Data Bank of Central Civil
7 RBL Bank At integration stage
Pensioners containing all details indicated in
the PPOs and Revision Authorities; ii. Inception of the ‘Banking Coordination’
Section under which following actions have
• Handle the issues raised by Central Civil
Pensioners. taken place during FY 2025-26:-
• Further, this office has also been entrusted a) Periodical meetings with CPPCs: 03 meetings
with the responsibility of direct disbursement covering 10 CPPCs were held during period
of provisional pension to beneficiaries 01.04.2025 to 31.10.2025 with the Head of
sanctioned under the NPS (AR). Since, CPPCs and Senior Management of Banks
these pensioners/family pensioners are wherein various pension related issues were
now covered under Old Pension Scheme, discussed in details.
The work of migration of these NPS( AR)
b) Performance evaluation of CPPCs:
pensioners/family pensioner from DBT
Performance of the CPPCs is evaluated
System to Banking System is under process.
semi-annually on the basis of 16 key
This work is also being handled by the
performance indicators. Evaluation for the
existing staff by putting extra efforts.
first half of the FY 2025-26 i.e. 01.04.2025 to
11.2 Achievements 31.10.2025 has been done for the 44 CPPCs.
The primary function of CPAO is to issue SSAs iii. Holding of Pension Adalats
to the CPPCs of Banks in fresh and revision of pension
a) CPAO has actively participated in the
cases. In the period 01.04.2025 to 31.10.2025, highlights
Pension Adalat held by Department/Ministries
are as follows: –
especially in those held by Central Armed
• 30,334 and 24,199 authorities were issued
Police Forces.
in fresh and revision of pension cases
b) CPAO has also been holding ‘Pension Adalat’
respectively.
annually since 2018.This year, this Pension
• CPAO has a dedicated Pensioners Facilitation Adalat was held on 20.11.2025 through video
Cell which was established during the year conferencing.
94Department of ExpenditureII
11.4 e-Governance Initiatives of CPAO (WRPS):- This IT initiative of Central Pension
Accounting Office (CPAO) provides various
11.4.1 CPAO is a fully computerized office. A wide
services including Pension & Payment
range of software/packages have been developed/
Information, online Pension Process
implemented in this office for streamlining pension
Tracking & online Grievance Redressal and
disbursement, accounting and grievance redressal which
Tracking for the pensioners. The WRPS
includes:-
is an important Digital India initiative for
a) Pension Authorization Retrieval & Accounting
improving transparency, accountability and
System (PARAS):- All the pension processing responsiveness.
activities from receipt to dispatch are managed
vii. DIRGHAYU Pensioners’ Mobile App:
through PARAS. The web interface of PARAS
DIRGHAYU Mobile App was launched by
provides the related information to pensioners;
Hon’ble Dr. Jitendra Singh, MOS, PMO,
PAOs/Ministries & Banks. Over 16 lakhs central
and M/o PPG&P at Vigyan Bhawan on 27th
civil pension cases have been processed by
Feb, 2023 in order to facilitate pensioners,
CPAO through this software thereby creating
the DIRGHAYU Pensioners’ Mobile App
digital database of these pensioners. Various has been developed for availing various
MIS reports are also generated by this software services. The application is providing
for the monitoring purposes. Further, SMS facility pensioners with the ability to download the
is also provided to the pensioners for checking special seal authorities issued by CPAO,
their pension/family pension case status. as well as know the details of pension
i. e- SSA:-This system has been developed amount (last 24 transactions) received in
for sending online digitally signed fresh as their accounts at the click of a button. It also
well as revision authorities from CPAO to enables them to lodge & track the status of
Centralized Pension Processing Centers the help request lodged by them. The app
of authorized bank (CPPCs) electronically has been equipped with Hindi language and
through SFTP for arranging payment to the M-Pin facility and available in android & iOS
pensioners. version.
ii. e-Scroll software:- This software has been viii. Database Management Software:-Software
for comparison of banks’ database with
developed and introduced for receiving
CPAO’s database of pensioners has been
payment and receipt scrolls from CPPCs
developed and exception reports are
and ‘put through statement’ from Reserve
generated by it to clean up the database and
Bank of India for speedy accounting and
establish a completely matching database.
reconciliation of pension payments made by
banks at CPAO. The information received ix. SMS facility:- The facility of informing
through e-Scrolls is also being used for pensioner through SMS of receipt of fresh
preparation of various MIS. Further, SMS Pension Payment Order/Revision Order
facility is also provided to pensioners for from PAO to CPAO and sending Special
checking their grievance status. Seal Authority (SSA) to banks for arranging
payment has been provided to those
iii. e-PPO: e-PPO is an online application
pensioners who’s mobile numbers are
through Bhavishya to PFMS to CPAO to
available in the database of CPAO.
Centralized Pension Processing Centre of
authorized bank (CPPC). This is an efficient b) Pensioners’ Grievance Redressal
and secured paperless-processing. Mechanism:
iv. Bar-coding software:- Bar–coding module i. Pensioners Facilitation Cell:- The Pensioners
is incorporated in PARAS with the help of Facilitation Cell was established during the
postal Department for speedy transmission year 2011 in CPAO with the approval of
Secretary (Expenditure), Ministry of Finance,
of pension papers to CPPCs and tracking of
so that the grievances of pensioners could
dispatch status of pension cases.
be resolved promptly. Since its inception,
v. CPAO website:-www.cpao.nic.in has
more than 4.25 lakh pensioners have availed
interfaces for PAOs, CCAs, Banks and
the services of ‘Pensioners Facilitation Cell’.
pensioners and provides various MIS reports
This has enabled the achievement of the
and database services to its stakeholders.
Government stated objective of bringing
vi. Web Responsive Pensioners Service ‘Ease of living’ for pensioners.
95Annual Report 2025-2026
ii. Considering the significant number of in the Pension Adalat held by Department
pensioners/family pensioners from the of Pension & Pensioner's Welfare & other
Central Armed Police Forces (CAPF) Department/Ministries especially those held
i.e. Assam Rifles, BSF, CRPF, ITBP, by the various Central Armed Police Forces.
CISF & SSB of Ministry of Home Affairs, c) Authorization of more Banks for payment of
a dedicated sub- cell has been recently pension: To ensure ease of living of pensioners
created in Pensioners Facilitation Cell (PFC)
and family pensioners, and to provide them
exclusively for CAPF pensioners for prompt
sufficient opportunity to choose a bank and
resolution of their grievances.
branch as per their convenience, pension is
iii. Pension Adalat:- CPAO has also been being disbursed through 46 Centralized Pension
holding ‘Pension Adalat’ annually since 2018. Processing Centers (CPPCs) of 21 Authorised
This year, this Pension Adalat was held on Public/Private Banks (12 Public Sector Banks
20.11.2025 through video conferencing. and 9 Private Sector Banks) at their 90,119
Further, CPAO has actively participated branches spread across India.
96Department of ExpenditureII
CG-DL-E-03112025-267353
xxxGIDExxx
EXTRAORDINARY
I 1
PART I Section 1
PUBLISHED BY AUTHORITY
322] 3, 5 12, 7
No. 322] NEW DELHI, MONDAY,NOVEMBER3, 2025/KARTIKA12, 1947
7306GI/2025 (1)
97Annual Report 2025-2026
THEGAZETTEOFINDIA : EXTRAORDINARY [PARTI SEC.1]
MINISTRY OF FINANCE
(Department of Expenditure)
RESOLUTION
NewDelhi,the3rdNovember,2025
F. No. 01-01/2025-E.III(A). The Government of India have decided to appoint the Eighth Central Pay
Commission comprising of the following:-
1. Chairperson -Smt. Justice Ranjana Prakash Desai
2. Member (Part-Time) -Prof. Pulak Ghosh
3. Member-Secretary -Shri Pankaj Jain
2.The terms of reference of the Commission will be as follows:-
a) To examine and recommend changes that are desirable and feasible in the emoluments including pay,
allowances, and other facilities/ benefits, in cash or kind, having regard to rationalization, contemporary
functional requirements and the specialized needs of various Departments, agencies and services in
respect of following categories of employees:
(i) Central Government employees industrial and non-industrial;
(ii) Personnel belonging to the All India Services;
(iii) Personnel belonging to the Defence Forces;
(iv) Personnel of the Union Territories;
(v) Officers and employees of the Indian Audit and Accounts Department;
(vi) Members of the regulatory bodies (excluding the RBI) set up under the Acts of Parliament;
(vii) Officers and employees of the Supreme Court;
(viii) Officers and employees of the High Courts whose expenditure is borne by the Union Territories;
and
(ix) Judicial officers of the subordinate courts in the Union Territories.
[Note: In respect of judicial officers, the Commission shall adhere to the principle enunciated by the
Supreme Court in its Judgement dated 24th
V/s Union of India and Others, viz. that there shall be no link between service conditions of judges and
administrative executive and that the service conditions of judges have to meet the special needs of the
judiciary].
(b) To work out an emolument structure conducive to attracting talent to Government service, promoting
efficiency, accountability and responsibility in the work culture.
(c) To examine the existing schemes of bonus with a view to improving performance and productivity and
make recommendations on the general principles, financial parameters, productivity and performance-
linked parameters for an appropriate incentive Scheme to reward excellence in productivity and
performance.
(d) To review the existing allowances and conditions of their admissibility and recommend their
rationalization keeping in view the multiplicity of allowances.
(e)
(i) To review the Death-cum-Retirement Gratuity of employees borne on the National Pension
System (including Unified Pension Scheme) and make recommendations thereon.
(ii) To review the Death-cum-Retirement Gratuity and pensions of employees not borne on the
National Pension System (including Unified Pension Scheme) and make recommendations
thereon keeping in view Para f(iii) below.
(f) To make recommendations on the above, keeping in view:
(i) The economic conditions in the country and the need for fiscal prudence;
(ii) The need to ensure that adequate resources are available for developmental expenditure and
welfare measures;
98Department of ExpenditureII
[ I 1]
(iii) The unfunded cost of non-contributory pension schemes;
(iv) The likely impact of the recommendations on the finances of the State Governments which
usually adopt the recommendations with some modifications; and
(v) The prevailing emolument structure, benefits and working conditions available to employees
of Central Public Sector Undertakings and private sector.
3. The Commission will devise its own procedure and may appoint such Advisors, Institutional Consultants and
Experts, as it may consider necessary for any particular purpose. It may call for such information and take such evidence,
as it may consider necessary. Ministries and Departments of Government of India shall furnish such information and
documents and other assistance as may be required by the Commission. The Government of India trusts that State
Governments, Service Associations and others concerned will extend to the Commission their fullest cooperation and
assistance.
4. The Commission will have its headquarters in Delhi.
5. The Commission will make its recommendations within 18 months of the date of its constitution. It may
consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalized.
V.VUALNAM,Secy.
ORDER
ORDERED that the Resolution be published in the Gazette of India.
ORDERED also that a copy of the Resolution be communicated to the Ministries/Departments of the Government of
India, State Governments/ Administrations of Union Territories and all others concerned.
V.VUALNAM,Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
99Annual Report 2025-2026
Annexure - II
Details of amount released under the Scheme for Special Assistance to States for
Capital Expenditure/Investment 2020-21 to 2025-26 (till 17.11.2025)
(₹ in Crore)
2025-26 (till
Sl. States 2020-21 2021-22 2022-23 2023-24 2024-25
17.11.2025)
No.
1. Andhra Pradesh 688.00 501.79 6105.56 4090.81 7901.56 3492.40
2. Arunachal Pradesh 232.97 371.19 1564.10 2363.42 2470.96 651.78
3. Assam 450.00 600.00 4300.14 5804.43 7427.50 4941.94
4. Bihar 843.00 1246.50 8455.85 8814.80 14791.32 3952.39
5. Chhattisgarh 286.00 423.00 2941.97 3365.25 6103.57 1837.91
6. Goa 97.66 111.04 572.75 695.20 1266.54 591.56
7. Gujarat 285.00 432.00 4045.82 4254.32 5958.26 1433.74
8. Haryana 91.00 135.00 1267.00 1702.05 1458.56 542.83
9. Himachal Pradesh 533.00 800.00 650.80 1515.97 2381.37 570.19
10. Jharkhand 277.00 246.00 2964.32 4580.61 2718.32 780.79
11. Karnataka 305.00 451.50 3399.35 3879.24 5296.12 1811.63
12. Kerala 81.50 238.50 1902.74 0.00 2715.67 914.04
13. Madhya Pradesh 1320.00 1512.36 7360.20 12636.21 12424.92 3809.91
14. Maharashtra 514.00 771.73 6744.16 5376.31 8063.08 3077.18
15. Manipur 317.16 212.85 467.22 542.70 1436.82 224.26
16. Meghalaya 200.00 281.20 1049.02 1293.06 2369.63 405.83
17. Mizoram 200.00 299.99 297.50 743.28 1361.09 216.48
18. Nagaland 200.00 300.00 504.16 973.20 1599.73 0.00
19. Odisha 471.50 517.12 75.00 3532.14 6943.55 1967.46
20. Punjab 296.50 223.50 798.22 0.00 2269.31 681.36
21. Rajasthan 1002.00 692.41 5595.64 8513.42 9139.21 4113.12
22. Sikkim 200.00 300.00 551.36 797.85 1742.14 288.97
23. Tamil Nadu 0.00 505.50 4011.27 5326.42 7345.86 2677.61
24. Telangana 358.00 214.14 2500.98 1948.34 2727.24 1160.26
25. Tripura 300.00 118.54 349.79 662.92 1586.68 348.87
26. Uttar Pradesh 976.00 1483.00 7940.50 19215.08 17223.82 8465.03
27. Uttarakhand 675.00 263.92 1124.01 1911.71 2455.84 597.94
28. West Bengal 630.00 933.00 3655.92 5015.58 10305.06 3540.52
Total 11830.29 14185.78 81195.35 109554.30 149483.73 53096.01
1. Delhi 542.03
2. Jammu & Kashmir 1083.41
3. Puducherry 180.89
Total of 3 UTs 1806.33
Grand Total 54902.34
100Department of ExpenditureII
101Annual Report 2025-2026
102CHAPTER III
DEPARTMENT OF REVENUE
1. ORGANISATION AND FUNCTIONS xiii. Indian Stamp Act, 1899 (to the extent falling within
jurisdiction of the Union);
1.1 The Department of Revenue functions under the
xiv. Conservation of Foreign Exchange and Prevention
overall direction and control of the Secretary (Revenue).
of Smuggling Activities Act, 1974;
It exercises control in respect of matters relating to all the
Direct and Indirect Union Taxes through two Statutory xv. Prevention of Money Laundering Act, 2002;
Boards, namely, the Central Board of Direct Taxes
xvi. Foreign Exchange Management Act, 1999.
(CBDT) and the Central Board of Indirect Taxes and
Customs (CBIC). Each Board is headed by a Chairman xvii. Union Territory Goods & Services Tax Act, 2017
who is also ex-officio Special Secretary to the Government
xviii. Goods & Services Tax (compensation to States)
of India. Matters relating to the levy and collection of all
Act, 2017
the Direct taxes are looked after by the CBDT whereas
xix. Central Goods & Services Tax Act, 2017
those relating to levy and collection of Goods and Service
Taxes (GST), Customs and Central Excise duties, Service xx. State Goods & Services Tax Act, 2017; and
Tax and other Indirect taxes fall within the purview of
xxi. Integrated Goods & Services Tax Act, 2017
the CBIC. The two Boards were constituted under the
Central Board of Revenue Act, 1963. Each Board has a 1.3 The Department looks after the matters relating to
sanctioned strength of 6 (six) members. the above-mentioned Acts through the following attached/
subordinate offices:
1.2 The Department of Revenue administers the
following Acts: i. Commissionerates/Directorates under Central
Board of Indirect Taxes and Customs;
i. Income Tax Act, 1961;
ii. Commissionerates/Directorates under Central
ii. Black Money (Undisclosed Foreign Income & Board of Direct Taxes;
Assets) Imposition of Tax Act, 2015
iii. Central Economic Intelligence Bureau;
iii. Benami Transactions (Prohibition) Act, 1988;
iv. Directorate of Enforcement;
iv. Chapter-VII of Finance (No.2) Act, 2004 (Relating
v. Central Bureau of Narcotics;
to Levy of Securities Transactions Tax)
vi. Chief Controller of Factories;
v. Central Excise Act, 1944 and related matters;
vii. Appellate Tribunal under SAFEMA;
vi. Customs Act, 1962 and related matters;
viii. Competent Authorities appointed under
vii. Central Sales Tax Act, 1956; Smugglers and Foreign Exchange Manipulators
(Forfeiture of Property) Act, 1976 & Narcotic
viii. Custom Tariff Act, 1975 Drugs and Psychotropic Substances Act, 1985
ix. Central Excise Tariff Act 1985 ix. Customs, Excise and Service Tax Appellate
Tribunal;
x. Narcotic Drugs and Psychotropic Substances
Act, 1985; x. Authority for Advance Rulings;
xi. Financial Intelligence Unit, India (FIU-IND);
xi. Prevention of Illicit Traffic in Narcotic Drugs and
Psychotropic Substances Act, 1988; xii. Adjudicating Authority under Prevention of Money
Laundering Act.
xii. Smugglers and Foreign Exchange Manipulators
(Forfeiture of Property) Act, 1976; xiii. Revision Application Unit.
103Annual Report 2025-2026
1.4 The details of representation of SCs, STs and functions and deal with tax evasion and unearthing
OBCs are at Annexure-I. unaccounted income. The Director General of Income
Tax (Intelligence and Criminal Investigation) supervises
1.5 The details of representation of persons with
the intelligence gathering and investigation in tax related
disabilities are at Annexure-II.
crimes. The Principal Chief Commissioner of Income
1.6 The details of ATNs in respect of audit observations Tax (Exemptions) supervises the work of exemption
are at Annexure-III. and non-profit organizations/ trusts across the country
1.7 An Organisation Chart of Department of Revenue and the Principal Chief Commissioner of Income Tax
is given at Annexure-IV. (International Taxation) supervises the work in the field
of International Tax and Transfer Pricing.
2. Central Board of Direct Taxes (CBDT)
2.1 ORGANIZATION AND FUNCTIONS The Principal Chief Commissioners of Income Tax
are assisted by Chief Commissioners, Principal
The Central Board of Direct Taxes (CBDT),
Commissioners and Commissioners of Income Tax
created by the Central Boards of Revenue Act 1963,
and Principal Directors General/ Directors General of
is the apex body entrusted with the responsibility of
Income Tax are assisted by Principal Directors/ Additional
administering direct tax laws in India. CBDT is the cadre
Directors General of Income Tax within their jurisdictions.
controlling authority for the officers of the Indian Revenue
Commissioners of Income Tax posted as Commissioners
Service and controlling authority for the officials of the
of Income Tax (Appeals) perform appellate functions.
Income Tax Department (ITD). The CBDT consists of
a Chairman and six members and is assisted by the
2.2 DIRECT TAX COLLECTION
following Directorates:
2.2.1 Direct Tax Collection for the FY 2025-26 up to
1) Directorate of Income Tax (Administration & Tax
30th November, 2025:
Payer Services)
2) Directorate of Income Tax (Systems) The Direct Tax Collection as on 30th November,
2025 continue to register a steady growth. Net Direct
3) Directorate of Income Tax (Training)
Tax Collection stands at Rs. 13,30,797.12 crore which is
4) Directorate of Income Tax (Human Resource 6.71% higher than the net collections for the corresponding
Development) period of last year. This collection is 52.80% of the Budget
5) Directorate of Income Tax (Vigilance) Estimates (BE) for Direct Taxes for the FY 2025-26.
6) Directorate of Income Tax (Legal & Research)
So far as the growth rate of Corporate Income
Income Tax Department is the subordinate Tax (CIT) and Non-Corporate Tax (NCT) in terms of Net
organization of the CBDT having jurisdiction across the revenue collections is concerned the growth rate of CIT
country. It is divided into 18 regions headed by Principal is 7.52% while that for PIT is 6.49%.
Chief Commissioners of Income Tax (Pr. CCIT), who are
entrusted with the supervision and collection of direct The above details of direct tax collection for FY
taxes and taxpayer services. The Directors General of 2025-26 upto the month of November, 2025, are tabulated
Income Tax (Investigation) supervises the investigation as under:
(Amount in Rs. Crores)
Collection for FY 2024-25 (as on 30.11.2024) Collection for FY 2025-26 (as on 30.11.2025)
Growth percentage
Major Heads
on Net Collection
Gross Refund Net Gross Refund Net
Corporation Tax 6,80,039.75 1,68,548.20 5,11,491.55 7,15,861.06 1,65,909.34 5,49,951.72 7.52%
Personal Tax 8,81,550.35 1,48,572.01 7,32,978.34 8,74,610.42 94,071.08 7,80,539.34 6.49%
Others 2,621.30 15.76 2,605.54 314.33 8.27 306.06 -88.25%
Total 15,64,211.40 3,17,135.97 12,47,075.43 15,90,785.81 25,99,88.69 13,30,797.12 6.71%
Source: Pr. CCA (CBDT) 2.2.2.1 Notifications in respect of TDS provisions:
* Provisional figures provided by Pr. CCA, CBDT
(i) Vide notification dated 02.01.2025 , Central
Government notified that no deduction of income-tax
2.2.2 TDS related matters: In order to improve tax
under Chapter XVII of the said Act shall be made on the
administration and reduce hardship of taxpayers, the following
payments received by the National Credit Guarantee
measures taken by this Division are worth highlighting: Trustee Company Limited, being a company established
104Department of Revenue III
and wholly financed by the Central Government for the was allowed under section 87 A of the Act on incomes
purposes of operating credit guarantee funds established chargeable to tax at special rates, Board directed that
and wholly financed by the Central Government as interest payable under section 220(2) of the Act shall be
referred to in sub-clause (i) of clause (46B) of section 10 waived in such cases where the payment of the demands
of the said Act. raised, is made on or before 31.12.2025.
(ii) Vide notification dated 02.01.2025, Central 2.3 SOME RECENT LEGISLATIVE CHANGES IN
Government notified that no deduction of income-tax DIRECT TAX LAWS
under Chapter XVII of the said Act shall be made on the
2.3.1 Enactment of Income tax Act, 2025: The
payments received by a credit guarantee fund established
Government announced a comprehensive review of
and wholly financed by the Central Government and
the Income-tax Act, 1961 (the Act). As a consequence
managed by the National Credit Guarantee Trustee
of the said review, the Income-tax Bill, 2025 (Bill No.
Company Limited as referred to in sub-clause (ii) of clause
24 of 2025) has been introduced in the Lok Sabha on
(46B) of section 10 of the said Act. 13.02.2025 and referred to the Select Committee of Lok
Sabha for examination. Post the submission of the Report
(iii) Vide notification dated 02.01.2025, Central
of the Select Committee, the bill was finally passed by
Government specified that no deduction of tax shall be
the Parliament and received the Presidential assent and
made under the provisions of section 194Q of the said
got notified on 21.8.2025.
Act by a person, being a buyer, in respect of purchase
of goods from a Unit of International Financial Services The purpose behind the introduction of the
Centre, being a seller. Income-tax Bill was to simplify the existing Income-tax
Act, 1961 by making it concise, lucid, easy to read and
(iv) Vide notification dated 06.01.2025, Central
understand. The simplification exercise was guided by
Government under clause (a) of the Explanation to sub-
three core principles: -
section (1H) of section 206C of the Income-tax Act, 1961,
Central Government specified that a Unit of International 1. Textual and structural simplification for improved
Financial Services Centre shall not be considered as clarity and coherence.
buyer for the purposes of the said sub-section in respect
2. No major tax policy changes to ensure continuity
of purchase of goods from a seller.
and certainty.
(v) Vide notification dated 18.07.2025, Central
3. No modifications of tax rates, preserving
Government notified that provisions of Chapter XVII
predictability for taxpayers
of the IT Act, shall not apply to payments received by
International Crops Research Institute for the Semi-Arid For this purpose, a three-pronged approach was
Tropics (ICRISAT). adopted: -
2.2.2.2 Circular issued in respect of TDS provisions 1. Eliminating intricate language to enhance
readability.
(i) Circular No 5 of 2025 dated 28.03.2025- In order
to facilitate the taxpayers who encountered technical 2. Removing redundant and repetitive provisions
glitches while making payments of TDS and TCS to for better navigation.
the credit of Central Government and subsequently
3. Reorganizing sections logically to facilitate ease
received notices for levy of interest under section 201
of reference.
(1A)(ii)/206C(7) of the IT Act, powers were given to CCIT
or DGIT to reduce or waive off such interest.
While undertaking the simplification exercise,
(ii) Circular No 9 of 2025 dated 21.07.2025- In order conscious attempt has been made to minimize the scope
of unintended ambiguity, leading to fresh interpretations
to facilitate the taxpayers who received notices regarding
and litigation. For this purpose, the following measures
short deduction/collection of TDS/TCS while carrying out
have been taken among others:
transactions where PANs of the deductees/collectees
were inoperative, Board specified that there shall be no a. Key words/phrases, especially where courts have
liability on the deductor/collector to deduct/collect the given rulings, have been retained with minimal
tax under section 206AA/206CC of the Act where the modifications, and language has been simplified
amount is paid or credited and the PAN is made operative by use of short sentences.
(as a result of linkage with Aadhaar) before the period
b. Provisions have been made clear to minimize
specified therein.
scope for multiple interpretations. The provisos
iii) Circular No 13 of 2025 dated 19.09.2025- In and explanations have been removed and
order to mitigate the genuine hardship of taxpayers where simplified content has been placed as sub-
the returns had already been processed and rebate sections and clauses.
105Annual Report 2025-2026
c. Formulae and tables have been used to enhance 2.3.3.2 Extension of benefits of tonnage tax scheme to
clarity. inland vessels
d. Provisions involving same issues and definitions, The benefits of tonnage tax scheme have been
which were present in different chapters in the extended to Inland Vessels for promoting inland water
existing Act have been consolidated. transportation in the country.
The Income-tax Act, 2025, thus reflects the 2.3.3.3 Exemption to Sovereign Wealth Funds, Pension
Government’s commitment to enhance ease of doing
Funds and others
business by providing a tax framework that is simple,
clear and unambiguous. In the case of person specified under section
10(23FE) of the Act, the period of investment has been
2.3.2 Providing tax relief
extended from 31st day of March, 2025 to 31st day of
2.3.2.1 Finance Act, 2025 has provided substantial relief March, 2030 for exemption of income in the nature of
under the new tax regime with new slabs and tax rates interest, dividend and capital gains. It is further proposed
as under:- that in the case of such specified person exemption shall
be available to long-term capital gains even if such capital
Total income Rate of tax
gains are deemed as short-term capital gains under
Upto Rs. 4,00,000 Nil section 50AA.
From Rs. 4,00,001 to Rs. 8,00,000 5 per cent 2.3.3.4 Exemption to Public Investment Fund (PIF)
of the Kingdom of Saudi Arabia and its wholly owned
From Rs. 8,00,001 to Rs. 12,00,000 10 per cent
subsidiaries
From Rs. 12,00,001 to Rs. 16,00,000 15 per cent
Vide Taxation Laws (Amendment) Act, 2025
From Rs. 16,00,001 to Rs. 20,00,000 20 per cent (notified on 21.08.2025), has been extended to the Public
Investment Fund (PIF) of the Kingdom of Saudi Arabia
From Rs. 20,00,001 to Rs. 24,00,000 25 per cent
and its wholly owned subsidiaries in respect of exemption
Above Rs. 24,00,000 30 per cent of income in the nature of dividend, interest and certain
other incomes, or long-term capital gains arising from
2.3.2.2 Increase in rebate in new tax regime
investments made in India in the infrastructure sector.
Finance Act, 2025 has increased the rebate for
2.3.3.5 Incentives to IFSC
the resident individual under the new regime so that they
do not pay tax if their total income is up to Rs. 12,00,000. Several incentives in the form of exemptions,
Marginal relief as provided earlier under the new tax deductions, etc. have been given to IFSC units to promote
regime is also applicable for income marginally higher investment.
than Rs. 12,00,000.
2.3.4 Rationalisation
2.3.2.3 Exemption and Deductions allowed to Unified
Pension Scheme Subscribers 2.3.4.1 Rationalisation of certain TDS rates
Vide Taxation Laws (Amendment) Act, 2025 To reduce multiplicity of rates and compliance
(notified on 21.08.2025), an amendment has been made burden, certain TDS and TCS rates have been brought
to extend the tax deductions and exemptions available down while, certain thresholds for requirement to deduct
to the subscribers of NPS (New Pension Scheme) were tax at source or collect tax at source have been increased.
extended at par with the subscribers of Unified Pension Further, TCS on sale of goods vide section 206C(1H) of
Scheme (UPS). the Act has been removed w.e.f. 1.4.2025.
2.3.3 Measures to promote investment and employment
2.3.4.2 Charitable trusts/ Institutions
2.3.3.1 Scheme of presumptive taxation for non-resident
Amendments have been made to provide for
providing services for electronics manufacturing facility
the period of validity of registration of trust or institution
A presumptive taxation regime has been provided from 5 years to 10 years for smaller trusts or institutions.
for non-residents, engaged in the business of providing The definition of specified violation for cancellation of
services or technology to a resident company, relating to registration of trust or institution has been rationalized
electronics manufacturing facility or a connected facility for so as to not to apply the same for minor default as in-
manufacturing or production of electronic goods in India, complete applications. Further, the definition of persons
under a scheme notified by the Ministry of Electronics and making substantial contribution to a trust or institution for
Information Technology. denial of exemption has also been rationalized.
106Department of Revenue III
2.3.4.3 Amendment of definition of ‘capital asset’ by the two sides on August 24, 2022. Besides other
changes in DTAC, the minimum standards under Action
The definition of Capital Asset has been amended
6 and Action 14 of G-20 OECD Base Erosion and Profit
to include any securities held by an investment fund
Shifting (BEPS) Project were met through the Amending
recognized as a Category I or a Category II Alternative
Protocol. The Instrument of Ratification for the Amending
Investment Fund and regulated under the Securities and
Protocol was signed by the Hon’ble President of India on
Exchange Board of India (Alternative Investment Funds)
June 13, 2023, completing the internal procedures of the
Regulations, 2012, or regulated under the International
Indian side necessary for entry into force of the Amending
Financial Services Centres Authority (Fund Management)
Protocol.
Regulations, 2022 which has invested in such securities
in accordance with the regulations made under the The Brazilian National Congress approved,
Securities and Exchange Board of India Act, 1992 or on 11th September 2025, the text of the Protocol
under the IFSCA Act, 2019. Amending the Convention between the Government of
the Federative Republic of Brazil and the Government of
2.3.4.4 Extension of timeline for tax benefits to start-ups
the Republic of India for the Avoidance of Double Taxation
The Act has been amended to extend the and the Prevention of Tax Evasion with Respect to Income
benefit provided under section 80-IAC to startups for an Taxes. Further, the Presidential Decree promulgating the
additional period of five years. Accordingly, the benefit Agreement, a necessary step for its full incorporation in
will be available to eligible start-ups which have been the Brazilian legal system, was published on 13th October
incorporated up to the period of 01.04.2030. 2025 and the Agreement was deemed in force by the
Brazilian side as of 18th October 2025. Now, India is in
2.3.4.5 Rationalisation of transfer pricing provisions for the process of issuing a publication in the Gazette of India.
carrying out multi-year arm’s length price determination
2.4.2 OECD FTA MAP Forum Award:
The Act has been amended to provide that
transfer pricing provisions for arm’s length price The OECD Forum on Tax Administration (FTA),
determination in relation to similar transactions shall now created in 2002, brings together tax commissioners and
be applicable for a period of 3 years. tax administration officials from over 50 OECD and non-
OECD economies. The FTA is a forum through which tax
2.3.5 Tax administration reform through legislative administrators share knowledge, undertake research and
changes develop new ideas to enhance tax administration around
the world.
2.3.5.1 Obligation to furnish information in respect of
crypto-asset India and Japan were jointly recognised and
awarded for the most number of transfer pricing cases
Under section 285BAA, the taxpayer is obliged
fully resolved by a pair of jurisdictions, amongst all the
to furnish information of crypto-asset as per the extent
participating jurisdictions. The FTA has over 50 members,
rules prescribed. Further, the definition of virtual digital
from advanced and emerging economies across the
asset in clause (47A) of section 2 of the Act, has been
globe.
amended to state that virtual digital asset includes any
crypto-asset as per definition given under CARF. 2.4.3 MoU on Assistance in Collection of Taxes
between India and Japan:
2.3.5.2 Extending the time-limit to file the updated return
India and Japan signed a Memorandum of
The time-limit to file the updated return has been
Understanding (MoU) for Assistance in Collection
extended from the existing 24 months to 48 months from
of Taxes, under Article 26A of the Double Taxation
the end of the relevant assessment year.
Avoidance Convention (DTAC). While the DTAC
2.4 FOREIGN TAX AND TAX RESEARCH DIVISION facilitates, tax cooperation between both the countries,
ensures that residents of either country avoid double
2.4.1 India - Brazil Double Taxation Avoidance
taxation on income earned from either country and also
Convention:
addresses arrangements designed for the purpose of
The DTAC between India and Brazil was signed tax evasion, the MoU mandates that both countries
at New Delhi on 26.04.1988. In order to align the DTAC shall lend assistance to each other in the collection of
with India’s recent treaties and in view of the changes revenue claims that are due in the requesting states. The
in international taxation especially with regard to OECD negotiations for the draft MoU started in 2018 and have
Base Erosion and Profit Shifting (BEPS) Action Plan and been finalized after several rounds of discussions. The
subsequent Multilateral Instrument (MLI), negotiations MoU was signed on 8th of July, 2025 with the approval of
were initiated on the Amending Protocol and were Hon’ble Finance Minister. The MoU has now been shared
completed in 2022. The Amending Protocol was signed with MEA for further necessary procedures.
107Annual Report 2025-2026
It is noteworthy that India has Double Taxation Avoidance and Development (OECD) jointly launched a project
Agreement/Convention with 96 countries. Suitable by the name ‘Tax Inspectors Without Borders’ (TIWB)
amendments have been made to the DTAAs to include which is designed to support developing countries to
a specific article related to Assistance in Collection of strengthen their national tax administrations though
Taxes with several countries, such as United Kingdom, building audit capacity and to share this knowledge with
New Zealand, Australia, Indonesia, and Finland etc. other countries. Under the TIWB Programme, tax audit
India is currently negotiating a similar MoU with United experts of partner administrations work alongside local
Kingdom and Australia for Assistance in Collection of officials of developing countries’ tax administrations (host
Taxes, emanating from DTAA with both these countries. administrations) on tax related issues. India has always
However, MoU with Japan is the first signed agreement been supportive of the TIWB Programme which also helps
operationalising the mutual assistance in collection of in promoting South-South cooperation.
taxes, envisaged in DTAC.
2.4.6 Seychelles secondment
2.4.4 India hosted 18th Global Forum Plenary on
In respect of the proposed secondment to
Tax Transparency:
Seychelles, a shortlist of Indian officers has been finalised,
India hosted the 18th Plenary Meeting of the and Seychelles authorities are now in the final stages of
Global Forum on Transparency and Exchange of selecting the officer for deployment.
Information for Tax Purposes in New Delhi from 1–5
2.4.7 Exchange of Information (EOI):
December 2025. The Plenary was inaugurated by
the Hon’ble Finance Minister of India and witnessed In the context of the ongoing fight against black
participation from 11 VVIPs, 76 VIPs including 63
money and undisclosed offshore income and assets by
Commissioner Generals/Director Generals, 3 Heads of
resident Indians, a total of 12 references were sent during
Observer Organisations, 3 from OECD/CTPA, 1 from EU
the period 01.04.2025 to 30.11.2025 by the EOI unit under
and 3 from Non-Member jurisdictions.
this division.
The event was organised under the theme “Tax
2.4.8 India-Sri Lanka DTAA
Transparency: Delivering a Shared Vision Through
International Cooperation” It reflected the growing The Protocol amending the India-Sri Lanka DTAA
recognition that the fight against tax evasion and other was signed in Dec 2024 to update the Preamble and also
illicit financial flows required collective efforts and to insert Principal Purpose Test (PPT) provisions in the
synergies. All arrangements and activities related to the DTAA to meet the minimum standards. Sri Lanka is yet
Plenary were coordinated by the FT&TR-IV Division, the to ratify the protocol. A key measure towards preventing
nodal division for matters concerning the Global Forum. the erosion of India’s tax base.
The Global Forum, comprising 172 member 2.4.9 Protocol amending India-Oman DTAA
jurisdictions including all G20 countries, is the world’s
premier body overseeing the implementation of The amending protocol updating the India-Oman
international standards on tax transparency. Its core DTAA was signed in Jan 2025 and notified in June 2025.
standards include the Exchange of Information on A key measure towards enhancing tax transparency
Request (EOIR) and the Automatic Exchange of Financial and providing tax certainty through alternative dispute
Account Information (AEOI). By promoting effective resolution mechanisms.
information exchange and strengthening transparency
2.4.10 India – Qatar revised DTAA and protocol
frameworks, the Global Forum plays a pivotal role in the
worldwide fight against tax evasion and illicit financial The Revised DTAA implements minimum standards
flows. of the OECD/G20 Base Erosion Profit Shifting (BEPS)
Project and the Protocol was signed in Feb 2025 and
2.4.5 Tax Inspectors Without Borders (TIWB)
notified in Oct 2025. A key measure towards enhancing
programme:
tax transparency through exchange of information.
Under the TIWB initiative, India provided expert
2.5. INVESTIGATION DIVISION
support to Nigeria and Georgia to strengthen their
tax audit and compliance systems. The TIWB aims to
During the Financial Year 2024-25 & 2025-26, the
strengthen tax administrations of developing countries
Government has taken several steps, by way of policy-
by transferring technical know-how and skills to their tax
level initiatives and more effective enforcement actions
officers, and through the sharing of good audit practices
on the ground to tackle the issue of black money. These
and dissemination of knowledge with them.
steps include creation of more advanced systems and
The United Nations Development Programme processes with due focus on capacity building and greater
(UNDP) and the Organization for Economic Co-operation use of information technology.
108Department of Revenue III
2.5.1 Search and seizure and survey actions: transactions and Benami property. It provides for
consequences of entering into a prohibited Benami
During F.Y. 2024-25, search and seizure actions
transactions, which includes attachment of the Benami
were carried out against 1437 groups leading to seizure
property, confiscation and prosecution of both the
of assets worth Rs. 2503.73 crores. Whereas, during
benamidar and the beneficial owner. The Income-tax
F.Y. 2025-26* (upto October, 2025), search and seizure
Department (ITD) has set up 24 Benami Prohibition Units
actions were carried out in 440 groups. The actions in
across India for taking effective action under the Benami
these cases led to seizure of assets worth over Rs. 876.88
Act.
crores.
The Income-tax Department has taken effective
Further, during F.Y. 2024-25, 465 surveys were
actions against Benami transactions/properties since
conducted leading to detection of Undisclosed Income
amended Act came into force.
of Rs. 30444.17 crores. Whereas, during F.Y. 2025-26*
(upto October, 2025), over 285 surveys were conducted Since amended Act came into force, 10124 properties,
leading to detection of Undisclosed Income of Rs.795.36 valued Rs.29900.97 crores have been provisionally
crores. attached till 30.09.2025 and 379 prosecutions have been
launched
(*Figures are provisional)
2.5.5 SAKSHAM - NUDGE (Non-intrusive Usage
2.5.2 Prosecutions & compounding:
of Data to Guide and Enable) – An approach for
Various measures have been taken by the e-governance
Income-tax Department (ITD) in the recent past to
2.5.5.1 In recent years, the Income Tax system in India
strengthen the prosecution mechanism with a view to
has demonstrated significant expansion, both in terms
identify the deserving prosecutable cases at the earliest
of the taxpayer base and revenue mobilisation. The
and pursue the same with due seriousness.
number of income tax return (ITR) filers reached 8.09
During F.Y. 2024-25, 611 prosecution complaints crore in FY 2023–24, while direct tax collections rose
to ₹22.26 lakh crore in FY 2024–25. This progress has
were filed and in 71 cases, conviction orders have been
passed by Court and in 1017 cases, compounding been supported by a substantial enhancement in both the
applications were accepted. Whereas, during F.Y. volume and quality of data received by the Department
2025-26* (upto October, 2025), 283 Cases, prosecution through various channels. The increased availability
complaints have been filed and in 24 cases, conviction of high-quality data has enabled the Central Board of
orders have been passed and in 579 cases, compounding Direct Taxes (CBDT) to strategically leverage these
applications have been accepted. information sources and transform them into meaningful
revenue outcomes. A key initiative in this direction is the
(*Figures are provisional) SAKSHAM NUDGE (Non-Intrusive Usage of Data to
Guide and Enable) strategy—one of the central pillars
2.5.3 Actions under The Black Money (Undisclosed
of CBDT’s direct tax reforms. The NUDGE framework
Foreign Income and Assets) and Imposition of Tax
is grounded in two guiding principles: (1) “Trust First,
Act, 2015 (“the BM Act”)
Scrutinize Later” and (2) “Turning Data into Revenue.”
Recognizing the limitations of the Income-tax
2.5.5.2 NUDGE is an innovative e-governance
Act, 1961, etc. in dealing with black money stashed
framework due to use of digital systems, data analytics,
abroad, the Government enacted a comprehensive
and technology-enabled communication to influence
and a more stringent new law that has come into force
citizen behaviour in a non-intrusive, transparent, and
w.e.f. 01.07.2015. As an outcome of the actions taken
efficient manner. Instead of relying solely on manual
by the Income-tax Department under the BM Act, as on
processes or coercive enforcement, NUDGE leverages
30.09.2025, orders u/s 10(3)/10(4) of the Act have been
e-platforms such as online portals, data warehouses,
passed in about 1147 cases raising tax and penalty
analytics engines, and automated communication tools
demand of more than Rs. 40,695 crores (approx.) and
(SMS, email, dashboards) to identify gaps, personalise
170 prosecutions have been launched.
interventions, and deliver timely guidance to citizens. By
2.5.4 Actions under the Prohibition of Benami integrating behavioural insights with technology, NUDGE
Property Transactions Act, 1988 (“the Benami Act”) enables proactive governance—providing taxpayer an
easy web-based compliance machinery. This ensures
With a view to bridge the gaps and put in place ease of compliance, reduced administrative burden, and
appropriate effective legislation, the existing Act was improved service delivery. Continuous digital monitoring
amended through Benami Transactions (Prohibition) and feedback loops further allow NUDGE intervention to
Amendment Act, 2016, and came into force w.e.f. 1st be refined in real time, making it a scalable, citizen-centric,
November 2016. The amended Act defines Benami and data-driven e-governance initiative that enhances
109Annual Report 2025-2026
transparency, trust, and outcomes without undermining at the right time and in the right context. Its innovation
autonomy. NUDGE is an innovative approach because lies in combining technology with psychology to create
it shifts governance from a rule-centric, enforcement- simplified choices to be delivered through digital platform
driven model to a behaviour-centric, facilitative model to reduce friction and cognitive burden.
that respects citizen choice while improving outcomes.
2.5.5.3 SAKSHAM: IMPLEMENTATION STRATEGY OF
Unlike traditional interventions that rely on inspections,
NUDGE - SAKSHAM NUDGE is comprehensive approach
penalties, or repetitive compliance actions, NUDGE
aimed at strengthening the Government’s capabilities
uses behavioural insights, data analytics, and digital
across the entire behavioural compliance value chain.
communication to identify non-compliance and then
SAKSHAM encapsulates the holistic progression of
guiding such identified targets towards a desired actions
NUDGE through its seven interconnected pillars:
The objective of the framework of SAKSHAM- and income using the data received under Automatic
NUDGE is to establish a structured, consistent Exchange of Information (AEOI) for CRS/FATCA. A total
and transparent framework for conceptualisation, of 19,501 taxpayers were NUDGE-d to review and revise
execution and evaluation of NUDGE campaigns with their returns and simultaneously outreach sessions were
the aim of improving voluntary compliance, enhancing conducted across India. Out of these, 12406 taxpayers
citizen experience, minimising revenue leakage, and (61.77%) complied and revised their tax returns. As
strengthening trust in the tax administration system. This a ripple effect, 13,515 additional taxpayers have also
framework applies to all NUDGE initiatives undertaken reviewed their ITRs and reported their foreign assets
by CBDT and its field formations for targeted behavioural and income. Besides, 5,483 taxpayers who had not
interventions based on data analytics, risk identification filed their original returns initially, also – filed their returns
and taxpayer outreach. Its overarching objective is to and reported foreign assets and income. In total, 30,161
institutionalise a systematic approach for behavioural taxpayers reported their foreign assets of Rs. 29,208 Cr
interventions, thereby ensuring that nudges are not and foreign income of Rs. 1,089.88 during the campaign
implemented in isolation, but are data-driven, outcome- period and revised their ITRs.
oriented and aligned with policy goals of voluntary
compliance. 2.5.5.5 Motivated by the success of the first NUDGE
campaign, CBDT launched another NUDGE campaign to
2.5.5.4 NUDGE represents a technology-enabled, tackle false claims of deductions under Section 80GGC.
transparent, and taxpayer-centric approach to tax The claim of aggregate deductions u/s 80GGC by the
administration aimed at informing, educating, and taxpayers was much higher than the actual receipts
facilitating taxpayers. It serves as an instrument to promote shown by the political parties in their returns. Accordingly,
voluntary compliance by encouraging correct reporting in the NUDGE campaign was executed asking taxpayers
ITRs and payment of due taxes in a non-intrusive and to review their claims of deductions. The campaign
collaborative manner. CBDT launched first NUDGE was entirely data-driven, identifying taxpayers who
to encourage taxpayers for reporting of foreign assets had claimed disproportionately high deductions under
110Department of Revenue III
Section 80GGC. Targeted and personalised nudges SAKSHAM NUDGE is more scientific, scalable
were sent through SMS and email, clearly highlighting the and effective by combining data analytics, targeted
mismatches and urging taxpayers to review their claims. communication, and a non-adversarial approach, which
has been proven to be effective and replicable model for
Under the campaign through SMS and Emails,
driving voluntary compliance and safeguarding revenue.
taxpayers have been requested to file their updated
returns. Out of 6.24 lakhs tax payers nudged under this Undisclosed
campaign for different financial years, 50842 taxpayers No. of surveys income de-
F.Y.
have updated their returns, leading to withdrawal of conducted tected
excess deductions of ₹1,487.27 crore and additional taxes (in Rs. Lakh)
paid of ₹681.55 crore. 2023-24 737 37,62,222.78
More than 57 lakhs counts of updated ITRs
2024-25 465 30,44,417.01
have been filed in FY 2024-25 and FY 2025-26 (till 15th
December, 2025), leading to payment of additional taxes
2025-26 (Till
of Rs.6514.5 crores. It is further noted that about 1.13 lakh 285 79,535.99
Oct 2025)
taxpayers filed updated ITRs with reduced deductions
under Chapter VI-A amounting to Rs. 2508.16 crores and 2.6 AUDIT & JUDICIAL (A&J) DIVISION:
additional taxes paid of Rs. 1272.95 crores.
The following significant developments/policy decisions/
2.5.5.6 Similarly, 28,174 distinct tax payers were initiatives have been taken during the FY 2025-26 for
identified through data analytics who had very high HRA improving delivery of public services:
claim compared to the salary income shown in ITR for
2.6.1 Vivad Se Vishwas Scheme, 2024 : The Vivad Se
AY 2022-23, AY 2023-24 & AY 2024-25. Under the
Vishwas Scheme, 2024 was launched as a one-time
SAKSHAM NUDGE campaign, taxpayers have been
measure to reduce pending income-tax litigation and
requested to file their updated returns u/s 139(8A) through
provide certainty to taxpayers. The scheme has been
SMS and Emails. A total of 4,286 ITRs were updated
availed by 34,463 taxpayers who have settled their
for the AY 2022-23, AY 2023-24 and AY 2024-25 up to
disputes by paying the determined amount, thereby
31St March 2025, resulting into additional tax collection
reducing litigation to that extent.
of Rs. 119.22 Crores and reduction of Rs. 216.88 crores
of bogus claim under HRA.
2.6.2 Withdrawal of Departmental Appeals: The
Government has enhanced monetary limits for filing
2.5.5.7 SAKSHAM NUDGE was also undertaken for
departmental appeals vide CBDT Circular No. 9/2024
non-compliant taxpayer undertaking VDA transactions.
dated 17.09.2024, raising the thresholds to ₹60 lakh
Analytics of the data of TDS deducted u/s 194S and
(ITAT), ₹2 crore (High Courts) and ₹5 crore (Supreme
that of the ITRs filed for AY 2023-24 showed that the
Court). Consequent to this, the Department has withdrawn
number of person whose TDS was deducted u/s 194S
443, 4791 and 744 appeals from ITAT, High Courts and
is 6,45,996 whereas the number of ITRs filed who have
Supreme Court respectively.
declared VDAs in Sch-VDA is 1,39,653. This provided
insight that many tax payers dealing in VDAs have not
2.7 E-GOVERNANCE
declared their VDAs transactions in the Sch-VDA of their
ITRs. Under the SAKSHAM NUDGE campaign, through 2.7.1 Project Name: PAN
SMS and Emails identified taxpayers were requested to
During the F.Y 2025-26 (upto 31.10.2025),
file their updated returns u/s 139(8A) to declare their VDA
a total of 2,89,59,984 PANs have been allotted. The
transactions in the Sch-VDA of the ITRs for AY 2023-24
total Number of PANs allotted upto October 2025 is
& AY 2024-25. This has resulted in improved filing of
82,96,92,487. As on 10.11.2025, 69,57,80,780 PANs of
Schedule VDA in ITRs where amount of Tax u/s 115BBH
individuals have been seeded with the Aadhaar database
for AY 2023-24 has increased from Rs. 269 Cr to Rs.
which is 85.49% of the total number of PANs allotted to
561.98 Cr which is more than 100% increase.
individuals (81,38,15,539).
SAKSHAM NUDGE was also undertaken for
2.7.1.1 PAN 2.0 Project
deductors who have reported lesser deductees in the
TDS statements for FY 2024-25 vis a vis those reported The PAN 2.0 Project has been approved by
for FY 2023-24. Under the campaign, through SMS and Cabinet Committee on Economic Affairs (CCEA) in F.Y.
Emails, identified deductors were requested to file their 2024-25. PAN 2.0 consolidates all PAN-related services
corrected statement updated for FY 2024-25, resulting on a single platform and also brings TAN services into
into 8,565 deductors adding 1.08 crore of additional the same system. It provides a one-stop solution for
deductees and reporting of TDS of Rs. 4,825.02 crores allotment, correction, updation, instant e-PAN, Aadhaar-
for such deductees. PAN linking, grievance handling, and verification. PAN 2.0
111Annual Report 2025-2026
leverages advanced technologies such as AI/ML, cloud 7.4.1 CPC TDS 2.0 will enable online filing of both original
integration, and API-based systems for faster processing, and correction TDS/TCS statements. All TDS/TCS-related
duplicate detection, anomaly identification, and improved services will be made available through the TRACES
risk profiling. portal, establishing it as a single-window platform for
fulfilling all TDS/TCS requirements.
2.7.2 Project Name: Taxnet 2.0
7.4.2 It will also facilitate e-Proceedings for section
The Taxnet 2.0 Project has been envisaged 201/206, defaults, prosecutions, rectifications, recoveries,
to provide primarily an upgraded, efficient, secure and Order Giving Effect, revisions, application disposals and
encrypted end-to-end private network connectivity (Wide scrutiny reports, etc.
Area Network & Local Area Network) for all the Income-
7.4.3 Customizable User Dashboards: The upcoming
tax Department (ITD) locations, dual connectivity links for
TDS portal will feature customizable dashboards
improved reliability & redundancy of accessing Income-
tailored to user roles (deductor, taxpayer, AO). These
tax Department (ITD) applications, increased facility
dashboards will provide real-time updates, pending
management service manpower and Hardware-based VC
actions, compliance alerts and insights—helping users
devices at 125 locations along with an additional 1000
stay informed and compliant with minimal effort.
software-based VC license for connecting users through
Taxnet connected PCs. 7.4.4 Mobile-Responsive and Multi-Device Accessibility:
The redesigned portal is being made fully mobile-
During the year 2025-26, a total of 723 Income-
responsive, enabling users to perform key tasks on
tax Department (ITD) locations have been migrated from
smartphones, tablets, or desktops—anytime, anywhere.
Taxnet 1.0 network to Taxnet 2.0 network.
7.4.5 Single Sign-On (SSO) and Unified Interfaces: The
2.7.3 Project Name: e-Verification department is working toward unified login experiences
across multiple Income Tax platforms, reducing the
The E-verification vertical administers the Annual
friction of accessing different services through separate
Information Statement (AIS) portal on the e-filing website
credentials or portals.
of the Income Tax Department. The amount of data being
processed and analysed has been growing exponentially 7.4.6 The project emphasizes real-time integration with
over the years. 59 categories of information are available other modules of the Income Tax Department and external
on the AIS currently, with new information categories being systems, enabling seamless data exchange and improved
constantly added. Two new categories have been added taxpayer services.
in the year 2025-26 (including transactions pertaining to
7.4.7 CPC (TDS) 2.0 envisages a comprehensive, multi-
Receipt of amount by Partners from Partnership Firm and
channel grievance redressal mechanism which shall
Purchase of Luxury Goods).
consolidate complaints from various sources, auto-assign
them based on type and priority and provide end-to-end
2.7.4 Project Name: CPC-TDS
monitoring through dashboards and reports. Expected
The Centralised Processing Cell–TDS (CPC- positive effects are improved navigation, reduced
TDS), functioning under the Directorate of Income Tax grievance handling time and enhanced deductor/taxpayer
(Systems), has been honoured with the Technology satisfaction due to simplified compliance and quicker
Sabha Excellence Award 2025. CPC-TDS has been response mechanisms.
recognized for its excellence in Customer Experience
2.8 MEDIA CENTRE (MEDIA & TECHNICAL
among Government institutions.
POLICY)
CPC(TDS) 2.0 commenced on 01.10.2024
2.8.1 Dissemination of Information on Direct Taxes
and is the next-generation, enhanced version of the
existing CPC(TDS) system, designed to offer improved The CIT (Media & Technical Policy) supervises the
functionality, user experience and efficiency in TDS/TCS Media Centre, established in August 2006, which serves
compliance. The project aims to re-design, re-architecture as the nodal point for disseminating public information
on matters relating to direct taxes. Through sustained
and re-develop the platform to introduce new features and
engagement with both print and electronic media, the
enhance existing ones. It also includes National Website
Media Centre has played a pivotal role in highlighting
of the Income Tax Department. The existing system, CPC
significant decisions, developments and achievements
(TDS) 1.0, will remain under Operations and Maintenance
of the CBDT and the Income Tax Department.
(O&M) phase until the anticipated Go-live of the 2.0
project, which is tentatively scheduled in year 2026. The From 1st April, 2025 to 30th November, 2025,
CPC(TDS) module is undertaking the following forward- the Media Centre issued 15 press releases, covering key
looking initiatives under the CPC (TDS) 2.0 framework: milestones and public-interest updates.
112Department of Revenue III
2.8.2 Strengthening Stakeholder Engagement 2.8.4 Social Media as a Compliance-Support
through Social Media Mechanism
Recognising the importance of digital outreach, During the peak e-filing cycle in September
CBDT has significantly expanded its communication 2025, the Department made extensive use of X for real-
footprint through social media, particularly on X (formerly
time compliance support. The handle received 68,039
Twitter). Managed by the Media Centre under the
actionable posts, which were promptly taken up for
supervision of the CIT (M&TP), the official handle @
resolution. During the key compliance period from 1st
IncomeTaxIndia facilitates two-way communication
April, 2025 to 16th September, 2025 (the extended due
with taxpayers and other stakeholders. To enhance
date for filing ITRs in non-audit cases), 40,023 tweets
responsiveness, an Online Response and Reputation
Management (ORM) system was introduced in July were responded to, out of which 28,109 users/taxpayers
2019, enabling systematic identification and redressal raised tickets through the ORM system/ dedicated email
of actionable posts and queries. During the period under channel for backend support relating to CPC e-filing and
consideration, this office has parlayed the Income-tax ITR-related issues. Out of the said 28109 tickets, 27,725
Department (ITD)’s presence on social media to further tickets (98.63%) were successfully resolved
enhance the outreach of CBDT’s various information and
awareness campaigns. This high-resolution rate underscores the
effectiveness of social-media-enabled grievance
2.8.3 Performance Metrics: Outreach,
redressal during critical compliance windows.
Responsiveness, and Growth
2.8.5 Amplifying Awareness Through Targeted
The Department’s official X handle (@IncomeTaxIndia)
Campaigns
currently has more than 16.18 lakh followers. Between
1st April, 2025 and 26th November, 2025, the handle Targeted digital campaigns were undertaken to
published 46,743 tweets and responses including
promote key departmental initiatives, such as Special
taxpayer-education posts and replies to public queries.
Campaign 5.0, “E-filing Made Easy,” “Let’s Learn Tax,”
This reflects the growing scale and effectiveness of the
and others.
Department’s digital outreach efforts.
Campaign-wise performance is summarised below:
S. No. Campaign Tweets Retweets Impressions
Bank Validation 4 143 328.6K
1
E-filing 31 14,985 9.09M
2
Advance Tax 4 144 349.1K
3
Let’s Learn Tax 7 665 666.8K
4
E-filing Made Easy 10 454 810.7K
5
11 Years Achievement 17 307 176.6K
6
Tax Assist 5 185 353.3K
7
Income Tax Day 19 520 368K
8
Income Tax Bill, 2025 42 1542 2.1M
9
10 Special Campaign 5.0 (From National Handle) 4 72 161.4K
Special Campaign 5.0 (Posts from Regional Handles) 736 1472 3.7 M
113Annual Report 2025-2026
Including posts on other miscellaneous themes, 2.8.7 Launch of Income Tax India's Official
a total of 157 creatives/posts were published from the WhatsApp Channel
national handle during this period, garnering a cumulative
19.67 million impressions (original posts + reposts). The O/o CIT (M&TP) launched the Income
Tax Department’s official WhatsApp Channel on 19th
2.8.6 Outreach regarding the Income Tax Act, 2025:
August, 2025. This verified channel serves as a one-
The O/o CIT (M&TP) carried out a comprehensive way broadcast platform to deliver tax-related updates
outreach exercise to disseminate key provisions and
directly to citizens’ phones. This channel offers direct,
implications of the Income Tax Act, 2025 across both
simplified access to official information, reducing
print and social media platforms. The objective was to
reliance on unverified sources. Taxpayers can easily see
ensure timely, accurate, and accessible communication
to taxpayers, tax professionals, and the general public. latest updates, important alerts, awareness-campaign
messages, and key initiatives via the channel.
2.8.6.1 Print Media and Social Media Outreach on the
Income Tax Act, 2025 At the time of launch the channel was promoted
through the department’s other social media platforms
In addition to a detailed Press Release, expert
columns by senior officers of the Department were like X, Facebook, and Instagram. This launch was also
published in prominent newspapers and business covered by news portals like Republic World.
publications to provide clarity and facilitate informed
reporting on the simplification exercise and policy intent. Key achievements include:
The Department’s official social media handle (Twitter/X)
• Crossed 100,000 followers within two months
was actively used to circulate bite-sized, easy-to-
(by October 2025), making it one of the fastest-
understand and engaging posts on important provisions
of the Act. A series of infographics, short explainer videos, growing official government WhatsApp channels
and carousels were published to educate the taxpayers in India.
about the Act.
• Promoted across X, Facebook, and Instagram at
The key elements of the structural and textual
launch, and covered by major news platforms.
simplification brought about through the Act were
amplified through targeted campaigns using hashtags • As on 31 October 2025, 106 posts had been
dedicated to the Income Tax Act, 2025. Samvaad
published—averaging more than two posts per
sessions of the Directorate of Income Tax (PR, P&P) were
day.
hosted on X/Twitter to amplify their reach. Reposting and
collaboration with the DIT (PR, P &P) helped enhance the • The channel continues to record average monthly
reach and engagement of the campaigns.
follower growth exceeding 50,000, with steadily
The original posts published from the national X/ rising engagement levels.
Twitter handle received a total of 1.26 million impressions.
Content salience of the channel is corroborated
In addition, the content was reposted by 19 other regional
handles for dissemination at the regional level. The by an average monthly growth of followers by more
combined visibility generated across all these handles than 50,000 every month. The engagement rates of the
led to an estimated total reach of around 2.1 million. channel have also grown substantially since its launch.
The rapid uptake demonstrates strong public trust in the
2.8.6.2 Monitoring of media/social media coverage and
feedback Department’s verified communication channels.
Media coverage across print and digital platforms was 2.8.8 Process Innovation and Real-Time Grievance
monitored closely to assess public understanding and Support
promptly correct any misinformation. Questions and
comments received on social media were acknowledged, The adoption of advanced tools such as Konnect
and clarifications were issued wherever necessary. Insight (KI) has significantly enhanced data collation and
monitoring capabilities. The integration of Google Sheets
Thus, through a coordinated dissemination across print
and social media, the Income Tax Department ensured has helped reduce the Turnaround Time (TAT) for issue
that information relating to the Income Tax Act, 2025 was resolution from 72 hours to 2–3 hours, with many cases
communicated widely, accurately, and in an accessible resolved in real time.
manner. The multi-channel approach contributed
significantly to enhancing taxpayer awareness and During the peak e-filing season, a dedicated war
countering attempts at misinformation. room was set up in coordination with the Directorate of
114Department of Revenue III
Systems to facilitate time-bound resolution of taxpayer 2.9 ITA DIVISION
grievances.
ITA Division of Central Board of Direct Taxes
2.8.9 Strengthening Regional Outreach Through is entrusted with the administration and interpretation
Social Media of specified sections of the Income-tax Act, 1961 (‘the
Act’). The prominent ones being those pertaining to
Nineteen regional Twitter handles, operated definitions, exemption u/s 10 of the Act, salaries, house
under the supervision of respective Principal Chief property deduction under chapter VIA, profits and gains
Commissioners (including NADT), have been actively of business or profession and capital gains under the Act.
contributing to hyper-local outreach and awareness It is also entrusted with the responsibility of assigning
programmes. All regional handles have obtained the jurisdiction to various Income-tax authorities & sharing
grey verification tick, reinforcing credibility and improving of information with other Departments/agencies. In this
stakeholder confidence in the Department’s official context, following data during 2025-26 (01.04.2025 to
communication. 30.11.2025) is highlighted:
S. No. Section Subject Notifications/Orders/
Approvals/ Disposals
1. 119(2)(b)/2(c) Condonation of delay Petitions disposed of 308
2. 2(22AAA) Approval /Rejection order in case of Electoral Trusts 5
3. 2(48) Zero Coupon Bonds 4
4. 10(46) Exemption given in r/o specified income arising to a body of 28
Authority etc. established or constituted under a Central, State
or Provisional Act or constituted by the Central Govt. or State
Govt which are not engaged in commercial activity
5. 10(46A) Exemption given in r/o any income arising to a body or 24
Authority etc. established or constituted under a Central
or State Act for the purpose of housing accommodation,
planning, development or improvement of cities/ towns/
villages or regulating/developing any activity for the benefit
of general public.
6. 11(1)(c) Exemption of income applied outside India for charitable 3
purpose to promote international welfare in which India is
interested.
7. 118 Order dated 11.06.2025 for amendments in the order 1
of Government of India, Ministry of Finance, CBDT
F.No.187/45/2014-ITA-I dated 14.11.2014.
8. 120 Office Orders for the additional charge arrangement in the 2
grade of Principal Commissioner of Income Tax (Pr.CIT)/
Principal Director of Income Tax (Pr. DIT)/ Commissioner of
Income Tax (CIT)/ Director of Income Tax (DIT)
Notification dated 27.10.2025 u/s 120(1)(2)-Jurisdiction of 1
Commissioner of Income Tax (CPC), Bengaluru
9. u/s 119 of the Circular No. 7/2025 dated 25.06.2025 issued on Relaxation 1
Income-tax Act, of time limit for processing of valid returns of income filed
1961 electronically.
Guidelines for compulsory selection of returns for Complete 1
Scrutiny during the F.Y 2025-26 – procedure for compulsory
selection of such cases
Relaxation of time limit for processing of returns of income 1
filed electronically which were incorrectly invalidated by CPC.
10/2025 dated 28.07.2025
115Annual Report 2025-2026
S. No. Section Subject Notifications/
O r d e r s /
Approvals/
Disposals
Circular No. 12/2025 dated 15.09.2025 issued on Extension of due date 1
for filing of ITRs for the AY 2025-26.
Circular No. 14/2025 dated 25.09.2025 issued on Extension of timelines 1
for filing of various reports of audit for FY 2024-25 (relevant to AY 2025-
26) by auditable assesses.
Circular No. 15/2025 dated 29.10.2025 issued on Extension of timelines 1
for filing of various reports of audit and Income Tax Returns (ITRs) for
the AY 2025-26.
10. 35(1)(ii)/(iii) Notifications/disposal orders regarding entities eligible to receive funds 4
Income-tax from others
Act, 1961
11. U / s 1 3 8 Matters regarding sharing of information with other Departments/agencies 2
Income-tax
Act, 1961
2.10 PRINCIPAL DIRECTORATE GENERAL received manually or through e-mail in the offices
OF INCOME TAX (ADMINISTRATION & of PM/FM/MOS/Chairman/Members. These are
TAXPAYER SERVICES) also uploaded on e-Nivaran module according
to PAN jurisdiction. The Directorate monitors the
The Pr. Directorate General of Income Tax (Administration pendency and redressal of e-Nivaran grievances
& Taxpayer Services) is an attached Directorate of all over the country.
Central Board of Direct Taxes (CBDT), Department of
Revenue, Ministry of Finance. The key achievements of ii) Since inception of e-Nivaran module total
the Directorate are enumerated hereunder: e-Nivaran grievances registered on ITBA was
995730 as on 20.11.2025. Out of which 98.82%
2.10.1 DIRECTORATE OF INCOME TAX (TPS-I, TDS i.e. 983942 grievances of taxpayers have been
& BIFR) resolved.
2.10.1.1. Online Grievance Redressal System e-Nivaran 2.10.1.2 Grievance Redressal Drive
i) ‘E-nivaran’ is an electronic grievance redressal i) During FY 2025-26, “Special Campaign 5.0” for
system integrated with the ITBA application, the Swachhata in Government offices and disposal of pending
Department’s internal online working system. The matter from 02.10.2025 to 31.10.2025 was conducted. In
paper grievances received through ASK centres this regard, a daily progress of disposal of the e-nivaran
are also digitized and integrated with e-Nivaran grievances was reported to the DOMS. The cumulative
module. The CBDT also forwards the grievances data shared for the period from 01.10.2025 to 31.10.2025
to this Directorate for digitization, which are with the DOMS is as under:
e-Nivaran data of the Special Campaign for the period from 01.10.2025 to 31.10.2025
Total grievances
Pendency as Received during Disposed till Pendency as
on 01.10.2025 the period 31.10.2025. on 31.10.2025
(A+B)
(A) (B) (C) (D) (E)
16316 12062 28378 16244 12134
ii) Since June 2025, Weekly Webex Meetings are being conducted by this Directorate, for effective monitoring
of e-Nivaran grievances and to accelerate the disposal rate.
116Department of Revenue III
2.10.2 DIRECTORATE OF TAX PAYER SERVICES–II measures focusing on widespread taxpayer education
& RECOVERY and outreach aimed to ensure that the provisions of the
new Income-tax Act, 2025, are clearly understood by a
2.10.2.1 The Centralized Public Grievance Redress
wide cross-section of taxpayers.
and Monitoring System (CPGRAMS) is an online
platform available to the citizens 24x7 to lodge their 2.10.3.2 As part of its awareness efforts, the Directorate
grievances to the public authorities on any subject related organized Taxpayers’ Hubs in Tier-II and Tier-III cities
to service delivery. The portal facilitates forwarding of and set up Taxpayers’ Lounges in India International
public grievances received online from the citizens to Trade Fare and Eastern Himalayan Trade Fare to
both the Central Government Ministries/Departments/ enhance engagement with the taxpayers and provide a
Organizations as well as the State Governments platform for direct interaction with citizens.
concerned. The portal also provides for Feedback and
2.10.3.3 Specific outreach sessions focused on the new
Appeal against resolution of grievances. The Department
Act were conducted in cities such as Siliguri, Ranchi,
of Administrative Reforms and Public Grievances of GOI is
Chandigarh, Vadodara, Varanasi, Prayagraj, and
the governing body which manages the CPGRAM Portal.
Jabalpur where the key features of the new legislation
There are approximately 90 Ministries/Departments
were explained and queries of taxpayers were addressed.
attached with DARPG, CBDT being one of them.
2.10.3.4 Additionally, during the Taxpayers’ Hub held
2.10.2.2 In the Income Tax Department a dedicated
in Vadodara, the Directorate launched a brochure titled
Directorate of Tax Payer Services-II, headed by a
“Salient Features of New Income-tax Act, 2025”, providing
Commissioner level officer at New Delhi, monitors the
a concise overview of the key changes and benefits under
CPGRAM grievance of the Tax Payers and coordinates
the new law.
with DARPG.
2.10.3.5 To further broaden the reach, 11 ‘Samvaad
2.10.2.3 During the current FY 2025-26, (from
Sessions’ were recorded and aired on the Department’s
01.04.2025 to 09.11.2025) 37,690 CPGRAMS have been
official YouTube channel. These sessions featured
received and 41,985 (111%) have been disposed. The
departmental officers discussing the new provisions in a
average disposal time is 57 days. As per the DARPG
conversational format, thereby making the content more
report, CBDT comes in top ten ministries and departments
accessible and easier to comprehend for the general
in terms of grievances resolved and feedback status as
public.
‘satisfied’.
2.10.3.6 Strategy For Physical outreach activities from
2.10.2.4 Regular Webex meetings are held with the
01.12.2025 to 31.03.2026.
verticals to solve the CPGRAM grievances in the shortest
possible time. Complainants are constantly kept in the 2.10.3.7 Government of India, has undertaken a
loop as the action history of the grievances is visible to comprehensive simplification of the existing Income Tax
them on the portal and any reminders/emails sent by them Act which will be replaced by the Income-tax Act, 2025
are promptly attended to. The grievances forwarded by with effect from 1st April, 2026. The existing rules and
the Directorate of Public Grievances and Department forms are also undergoing significant changes to align
of Pension and Pensioners’ Welfare are attended to on with the changes in the Act for better readability and
priority. ease of compliance. Accordingly, Media and Outreach
Campaigns on the New Income-tax Act are proposed
2.10.3 DIRECTORATE OF PUBLIC RELATIONS,
from 01.01.2026 to 31.03.2026.
PUBLICATION AND PUBLICITY
2.10.3.8 The planned physical outreach activities for
2.10.3.1 To ensure the smooth implementation of the
different categories of taxpayers such as individuals,
changes introduced in the new Income-tax Act, 2025,
businesses, MSMEs, Corporate etc. will be organised in
the Department has undertaken a series of pre-emptive
all the 18 Pr.CCIT regions are as under –
Responsible Number of Units in Number of outreach activities per unit
Vertical the Vertical
Pr.CIT (JAO) 84 12 (Preferably 4 each month)
ADG (PR,P&P) 18 02 with each 18 Pr.CCsIT (CCA) (Mega event)
CIT (TDS) 26 18 (Preferably 6 Each Month)
DIT (I&CI) 18 12 (Preferably 4 Each Month)
CIT (Exemption) 14 12 (Preferably 4 Each Month)
Total number of activities – 1,896
117Annual Report 2025-2026
2.11 Directorate of Income Tax (Human resource 3. Central Board of Indirect Taxes and
Development) Customs (CBIC)
The Directorate of Income Tax (Human resource 3.1 Introduction
Development) is responsible for the overall administration,
personnel management, and policy framework for both The Central Board of Indirect Taxes and Customs
IRS (IT) and non-IRS (IT) cadres within the Income Tax or CBIC (erstwhile Central Board of Excise & Customs) is
Department. Its functions include service confirmations, a part of the Department of Revenue under the Ministry
promotions, empanelment’s, deputations, career of Finance, Government of India. It is the apex body
progression of officers, as well as managing eOffice, for indirect tax administration. It is involved in policy
SPARROW & APARs, performance management formulation concerning levy and collection of Customs,
systems, and reward policies. It oversees recruitment Central Excise duties, Central Goods & Services Tax
of Group-B & C employees. HRD is also responsible (CGST) and Inter-state Goods & Services Tax (IGST),
for cadre restructuring of the Income Tax Department. prevention of smuggling and administration of matters
The brief activities carried out by the Directorate are relating to Customs, Central Excise, CGST, IGST and
hereunder: Narcotics to the extent which is under CBIC's purview.
The CBIC also plays an active role in GST Council
2.11.1 During the year, dossiers for promotion of officers
meetings and the associated activities of Law Committee
of various grades, from ACIT to PrCCIT, were prepared
which deliberates on all matters brought before the GST
and presented before the DPC/Screening Committees.
Council. The CBIC constituted under the Central Board
2.11.2 The Directorate of Income Tax (HRD), CBDT of Revenue Act, 1963 consists of a chairman and six
is the nodal authority for SPARROW implementation Members who are Special Secretaries to the Government
in the Income Tax Department. During FY 2019-20, all of India. The CBIC personnel supervise the functioning of
Group-A officers and ITOs were mandated to file their the subordinate formations which includes Directorates
APARs and IPRs on SPARROW. Approximately 11,000 and field formations of Customs, GST Commissionerates
users accounts were created. However, remaining and Narcotics formations such as Opium factories and
Group-B and Group-C employees of the Department were the Central Revenues Control Laboratory.
still filing APARs in paper mode. During FY 2024-25,
The field formations are mainly engaged in
Group-B and Group-C employees were also onboarded
collection of revenue and are spread across the country.
on SAPRROW. As result of this expansion, there are
The taxpayers’ grievances are attended to by these field
more than 44,000 SPARROW users in the Income Tax
units of the CBIC on a day-to-day basis.
Department. Digitization of APARs will result into efficient
and effective cadre management and timely promotions, The Board is assisted by 19 Directorates who
leading to high morale and motivation of the employees. act as adjunct offices and assist the Board in policy
Some data related to expansion of SPARROW has been formulation. Each Directorate has been assigned with
tabulated as below: a specific responsibility. The Directorate General of
Revenue Intelligence (DRI) is the premier intelligence
Statistics on
and investigation agency which collects and collates
SPARROW
intelligence relating to Customs duty frauds and
extension 2023-24 2024-25
smuggling. Similarly, the Directorate General of GST
SPARROW Users 11,000 44,000 Intelligence is tasked with investigation of GST and
Central Excise/ Service Tax matters. Another important
APARs generated 26,185 91,000
directorate is the Directorate of Human Resource
2.11.3 During the year, an online portal namely Development (DGHRD) which handles all HR matters of
“Vishleshan” was developed and launched by hon’ble CBIC.
FM on the occasion of Income Tax Day on 24.07.2025.
After the introduction of GST in 2017, the
This portal helps in monitoring of work done by JAO and
Directorate of Analytics and Risk Management (DGARM)
Appeal units. was created. The DGARM is engaged in data analytics
and data mining. The results of the data analytics have
2.11.4 Updated Civil List of IRS officers was released
helped in detecting large number of fake invoice cases
in May 2025.
and has helped in augmenting GST collection.
2.11.5 During the year, total 4655 dossiers for
The motto of CBIC is “Desh Sevarth Kar
appointment in various grades like Inspector, Tax
Sanchay”.
Assistant, Steno etc were forwarded to different
Regions. Departmental exams were conducted for IRS The activities and the performance of the different
Probationers and for promotion to ITO & Inspector. Sections/wings and the Directorates working under the
CBIC has been summarized.
118Department of Revenue III
Revenue
April-December [P]
% of BE 2025-
Tax head BE 2025-26
2024-25 2025-26[P] % Growth 26 achieved
(y-o-y)
Customs Duty (Cash+Scrip) 2,40,000 1,72,294 2,00,533 16.4% 83.6%
Central Excise Duty 3,17,000 2,25,412 2,47,715 9.9% 78.1%
Service Tax 100 36 -1,186 -3418.1%
Sub-Total (Non-GST) 5,57,100 3,97,742 4,47,061 12.4% 80.2%
CGST 10,10,890 6,73,256 7,10,615 5.5% 70.3%
IGST - -31,590 15,641 149.5%
GST Compensation Cess 1,67,110 1,11,556 89,777 -19.5% 53.7%
Sub-Total (GST) 11,78,000 7,53,222 8,16,034 8.3% 69.3%
Total Net Central Indirect Taxes 17,35,100 11,50,964 12,63,095 9.7% 72.8%
[GST+Non-GST]
Source: PrCCA (CBIC), EMC HRD; [P] = Provisional; Totals may vary on account of rounding off.
3.3 GST the concept of a simplified GST registration
mechanism for small suppliers making supplies
3.3.1 Procedural Reforms
through e-commerce operators (ECOs) across
• Simplified GST Registration Scheme lor multiple States facing challenges in maintaining
Small and Low-Risk Businesses: The GST principal place of business in each State as
Council in its 56th meeting has recommended currently required under the GST framework. The
a simplified GST Registration Scheme for Small detailed modalities for operationalizing the said
and Low-Risk Businesses wherein registration scheme will be placed before GST Council. lt will
shall be granted on an automated basis within ease compliance tor such suppliers and facilitate
three working days from the date of submission their participation in e-commerce across States.
of application in case of low-risk applicants and
applicants who based on their own assessment, • Sanction of risk-based provisional refund to
determine that their output tax liability on sup plies facilitate refund claims on account of zero-
to registered persons will not exceed Rs. 2.5 lakh rated supply of goods or services or both (i.e.
per month (inclusive of CGST, SG ST/UTGST export of goods or services or both or supply
and IGST). This has been operationalized to a Special Economic Zone developer/unit
from 1 November, 2025 and is reported to be for authorised operations.): Amendment has
working smoothly. Further. it is submitted that been made in rule 91(2) of CGST Rules, 2017
easing the process of amending FORIU REG-O1 to provide for sanction of 90% of refund claimed
(Registration document) is under examination as provisional refund by the proper officer on the
and will be placed before the GST Council in due basis of identification and evaluation of risk by
course. the system.
• lntroduction of Simplified Registration • Proposal for Bisk-Based Provisional Sanction
Scheme for small suppliers supplying of refunds arising out of inverted duty structure
through electronic commerce operators: (lDS): The Council has also recommended
The Council has also approved in-principle, amending section 54(6) of the CGST Act, 2017,
119Annual Report 2025-2026
structure, on similar lines as is presently available o 18% (Standard Rate): Now includes small cars
for refund in respect of zero-rated supply. and motorcycles ≤350cc, TVs, ACs, dishwashers,
cement, buses, trucks, ambulances, auto parts,
• Amendment in CGST Act to provide for bidis, and most other goods and services
GST Refunds in respect of low value export
o 40% (Demerit Rate): Limited to select items
consignments: The Council has further
including luxury cars, motorcycles >350cc,
recommended amendment to section 54(14)
yachts, aircraft for personal use, tobacco products
of the CGST Act, 2017 so as to remove the
(except bidis), pan masala, aerated beverages,
threshold limit, or refunds arising out of exports
caffeinated beverages, casino/gambling services,
made with payment of tax'. This will particularly and similar demerit goods
help small exporters making exports through
o This represents a major simplification with most
courier, postal mode etc.
goods now falling under either 5% or 18%, with
• Amendment in place of supply provisions for the 12% slab being largely phased out and the
intermediary services under section 13(8) of the 28% slab restructured to 40% for only the most
demerit items.
IGST Act: The Council recommended omission
of clause (b) of section 13(8) of IGST Act 2017. SERVICES:
Accordingly, after the said law amendment,
(i) Insurance Services
the place of supply for "intermediary services"
will be determined as per the default provision • Full Exemption from GST on all individual life
under section 13(2) of the IGST Act. 2017 i.e. the insurance policies whether term life, ULIP or
location of the recipient of such services. This will endowment policies and reinsurance thereof
help Indian exporters of such services to claim
• Full Exemption from GST on all individual health
export benefits.
insurance policies (including family floater and
senior citizen policies) and reinsurance thereof
3.3.2 Rate Rationalization (56th GST Council)
o This has been done to make insurance services
GOODS:
more affordable for the common man and
The GST Council in its 56th meeting held on 3rd increase the insurance coverage in the country.
September, 2025, has recommended a comprehensive
(ii) Common Man/ Daily Use Services
rate rationalisation and structural simplification of the
• Hotel accommodation services up to ₹7,500 per
4-tiered tax rate structure into a citizen-friendly ‘Simple
Tax’ – a 2-rate structure with a Standard Rate of 18% and day have been rationalised from 12% with ITC
to 5% without ITC to promote budget travel for
a Merit Rate of 5%; a special de-merit rate of 40% for a
the middle class.
select few goods and services. GST rate rationalisation
focused inter-alia on common-man, labour-intensive • Reduction of GST from 12% with ITC to 5%
industries, agriculture and health sectors. The new without ITC on beauty and physical well-being
distribution of items across GST slabs is as under: services used by common man including services
of health clubs, salons, barber, fitness centers,
o NIL rate: Significantly expanded to cover all
yoga, etc.
individual life and health insurance, essential food
items (UHT milk, paneer, all Indian breads like • Reduction of GST from 12% to 5% on cinema
chapati/roti/paratha), exercise books/notebooks, tickets priced at Rs. 100 or below.
erasers, pencil sharpeners, maps, and 36
(iii) Labour Intensive Services
lifesaving drugs.
• Streamlining of GST on job work services by
o 5% rate (Merit Rate): Vastly expanded to include
reducing GST for most job work services such
common man items (hair oil, soap, toothpaste,
as job work services relating to pharmaceuticals,
bicycles), most food items (packaged namkeens, leather and bricks, etc and align them with the
pasta, noodles, chocolates, coffee, butter, rate applicable on associated goods.
ghee), agricultural goods (tractors, farming
(iv) Environmental services
machinery), renewable energy devices, all drugs
and medicines (reduced from 12%), textiles, • Reduction of GST from 12% to 5% with ITC on
handicrafts, footwear up to ₹2,500, and beauty/
services of common effluent treatment plants and
wellness services biomedical waste treatment facilities to promote
120Department of Revenue III
sustainable development and provide support to 3.4 GST- Investigation
MSMEs which cannot have their own treatment
(a) Government has taken several effective measures
plants.
to curb GST evasion including menace of fraudulent Input
(v) Transportation Sector Tax Credit (ITC) availment based on invoices without
actual supply of goods and/or services. Besides denting
• All passenger transport services, except air
GST revenue, it has a bearing on Income Tax collection,
transport, are given the option to pay GST at
bank finance and money laundering. Government from
merit rate of 5% with restricted ITC or standard
time to time has taken several measures to prevent
rate of 18% with full ITC.
GST related offences, which include using robust data
analytics and artificial intelligence to identify and track
• Similarly, entire goods transportation sector is
risky taxpayers and detect tax evasion and sharing of
also given the option of 2 rates:
data with partner law enforcement agencies for more
• A merit rate of 5% without ITC: useful for small targeted interventions.
operators, such as GTA.
Further, a total no. of 20,236 ITC fraud cases
• Standard rate of 18% with full ITC: useful for big detected involving amount of Rs. 37,732.08 Cr. have
operators, container transport operators and multi been booked for GST evasion during 2025-26 (up
modal transporters. to November, 2025) respectively. Amount recovered
during the corresponding period was Rs. 1202.37 Cr.,
• Reduction in GST rate from 12% with ITC to
respectively. Further, 146 number of persons have also
5% with ITC for third party insurance of goods
been arrested during this period respectively.
carriage.
(b) Continuous monitoring of all enforcement related
(vi) Demerit / Luxury Services – Special Rate of 40%
activities to ensure transparency and streamlining
enforcement action.
• Increasing the GST rate on certain luxury services
from 28% to 40%, including:
(c) The Additional/Joint Director (Intelligence) of
DGGI-Hq was notified as the Nodal Officer for issuing
• Services by way of admission to casinos, race
takedown orders under the Information Technology Act
clubs, any place having casinos or race clubs, or
to intermediaries for blocking overseas online Gambling/
sporting events like the IPL (excluding recognized
Casino service providers, which are not complying with
sporting events).
provisions of CGST Act, 2017. Now with new Information
• Services provided by a race club for licensing of Technology (Intermediary Guidelines and Digital Media
bookmakers in such club Ethics Code) Amendment Rules, 2025 coming into
effect, issue for updating the level of officer to issue such
• Specified Actionable Claims (betting, casinos,
takedown orders has been taken up with DOR.
gambling, horse racing, lottery, online gaming)
(d) Amendments were made in GSTAM-2019, to
(vii) OTHER CHANGES RELATING TO SERVICES
deal with taxpayers who are non-responsive to audit
requests. Further, SOP for on-site inspection of “Real
• Restaurant Services – ‘Specified Premises’
Estate Agents” (REA) and “Dealers in Precious metals
Clarification The Council has recommended
and Precious stones” (DPMS) were issued to perform
insertion of Explanations in the definition of
the functions and responsibilities under the Prevention of
“specified premises” (in the context of taxability of
Money Laundering Act, 2002 and for co-ordinated audit
restaurant services), clarifying that a stand-alone
by tax authorities, a detailed framework was issued for
restaurant cannot declare itself as a “specified
coordinated audit of multi-locational units under CGST in
premises” and therefore cannot avail the option
co-ordination with DG Audit.
of paying GST at 18% with ITC.
(e) For facilitating understanding and streamlining
• Local Delivery Services For local delivery
operations of the tax authorities in enforcement action
services (SAC 9968): through ECO (Section 9(5))
undertaken by different indirect tax authorities, a National
• Supply of local delivery services through an Conference of Enforcement chiefs of the state and
Electronic Commerce Operator (ECO) is being central GST formations was organized by Department
brought under Section 9(5) of the CGST Act, of Revenue. The conference apart from strengthening
with the applicable GST rate of 18%, and such collaboration between central and state tax authorities,
local delivery services provided by and through emphasized on leveraging technology to plug loopholes,
ECO are to be excluded from the scope of GTA importance of strong data analytics and balancing
services. enforcement with taxpayer rights.
121Annual Report 2025-2026
(f) In line with Government policies relating to notification in the erstwhile regime of Central Excise
bring transparency, the Reference (RFN) generated taxation.
on communications issued from GST Portal and issue
During the Special campaign-3 drive for
number generated on communications issued for CBIC’s
cleanliness during the period 2nd October to 31st October,
e-Office have been made verifiable electronically.
2025, 5731 appr. files of CX & ST Wing have been
scanned & weeding out process would be initiated soon
3.5 Central Excise and Service Tax (CX-1)
under the guidelines of CSMOP Furthermore electronics
The Budgetary Support Scheme under GST scrap & other waste material has been already weeded
our during the cleanliness drive.
was notified by the Department of Promotion of Industry
and Internal Trade (DPIIT), Ministry of Commerce & The Central Excise & Service tax wing, CBIC
Industry and is being implemented by CX Wing in CBIC. has been consistently reviewing the pendency of legacy
It covers the Himalayan States (J&K, Himanchal Pradesh, adjudication cases of Central Excise and Service Tax
Uttarakhand) and North Eastern States (Arunachal matters. Performance of all zones has been closely
Pradesh, Assam, Manipur, Meghalaya, Mizoram, monitored by this wing and as a result of which, in the last
Nagaland and Tripura) including Sikkim. It provides current financial year (till 31.12.2025), more than 11,000
budgetary support to the eligible units under erstwhile cases of legacy adjudication have been disposed off.
Area-based Exemption Scheme and were availing
During the current financial year, the Notifications/
benefits under the respective central excise exemption
Circulars/Instructions issued by the Wings are as follows:
S. No. Notification No. & Date Subject
Constitution of Interim Board for Settlement
1. 02/2025 - Central Excise (N.T) Dated -8 April 2025
under Sec 31A of Central Excise Act, 1944
S. No. Order No. Subject
Re-assignment of appeals pending in kolkata
1. Order No. 02/2025 Dated: 07th April, 2025
Zone.
Setting up of office for operationalizing Inter-
2. Order No. 03/2025 Dated: 08 April, 2025
im Boards for Settlement
Re-assignment of appeals pending in Kolk-
3. Order No. 04/2025 Dated:28 April, 2025
ata Zone
Re-assignment of appeals pending in Nagpur
4. Order No. 05/2025 Dated:09 September, 2025
Zone
Re-assignment of appeals pending in Benga-
5. Order No. 06/2025 Dated:28 November, 2025
luru Zone
3.6 Customs the Section 93 Finance Act, 2025 providing a
facility of revision of entry(ies) already made in
• Provisional Assessments Regulations 2025 relation to the goods, after customs clearance has
(Notfn 55/2025-Customs (NT) 12.09.2025: The been given. The Customs (Voluntary Revision of
Customs (Finalization of Provisional Assessment) Entries Post Clearance) Regulations, 2025 have
Regulations, 2025 were introduced and came into also been issued vide Notfn 70/2025-Customs
effect on September 12, 2025. These regulations (NT) dated 30.10.2025 in this regard.
superseded the earlier Customs (Finalization
• System based auto approval for IFSC code
of Provisional Assessment) Regulations, 2018.
registration (Circular no. 24/2025) - CBIC has
These regulations aim to bring transparency,
introduced system-based auto-approval for IFSC
predictability, and efficiency to the finalization of
code registration to enhance Ease of Doing
provisional assessments, which historically faced Business. As per the new initiative, the system will
long delays. automatically approve requests for registration of
the same incentive bank account and IFSC code
• Revision of Entries Post Clearance: - The
for a particular Importer Exporter Code (IEC) at
CBIC vide Circular No. 26/2025 Customs
multiple Customs locations, provided the same
dated October 31, 2025 has issued guidelines combination has already been approved at any
regarding Revision of Entries Post Clearance one location. Thus, manual intervention by the
under section 18A of the Customs Act, 1962. Port officer will be eliminated, and the system will
The provisions under Section 18A, inserted vide directly approve such requests.
122Department of Revenue III
• Implementation of Use of ICETABs: - With the scanning and customs officer intervention at the
successful use of ICETAB for imports examination entry gate.
across the country, CBIC has extended the use
• Facilitation by Participating Government Agencies-
of ICETABs in export examination and clearance
Facilitation by Participating Government Agencies
from 19.06.2025 onwards. In this regard, CBIC
has seen notable progress. The Food Safety
has issued Circular no. 17/25 Customs dated
and Standards Authority of India (FSSAI) has
19.06.2025.
formally recognized Authorized Economic
• To strengthen trade facilitation through Operators (AEOs), and work is underway to
institutionalized consultation mechanisms, the identify trusted, compliant food importers for
Board issued Circular No. 21/2025-Customs enhanced facilitation. Similarly, the Central Drugs
dated September 12, 2025. The key objectives Standard Control Organization (CDSCO) has
of the circular are - to enhance trade facilitation; developed new selectivity criteria in the RMS.
ensure enhanced participation of all stakeholders It has demonstrated a significant improvement
handling Customs clearance work through in facilitation levels. Improvement of facilitation
Customs Clearance Facilitation Committee levels have been observed in case of CDSCO
(CCFC) and Permanent Trade Facilitation and FSSAI. This upward trend reflects a strong
Committee (PTFC); and address trade grievances commitment by PGAs to streamline processes
in a time bound and efficient manner. The circular and prioritize trusted stakeholders, thereby
also provides contact details of Turant Suvidha reducing delays and improving overall trade
Kendras (TSKs) and National Assessment efficiency.
Centres (NACs), as a step further towards EoDB.
• SWIFT 2.0 Integration- As part of the
• CBIC on 26-11-2025 re-constituted a Team on implementation of the National Trade Facilitation
"Trade Facilitation and Gender Equality". The Action Plan (NTFAP 3.0) for 2024–2027, the
team comprises officers from CBIC, possessing integration of Participating Government Agencies
expertise in the key area and is tasked to (PGAs) with the upgraded Single Window
ensure implementation of gender mainstreaming Interface for Facilitating Trade (SWIFT 2.0)
initiatives at the operational level. has been identified as a key priority. SWIFT
2.0 is designed to enable end-to-end digital
• To ensure enhanced participation of women
processing of licenses, permits, certificates,
in international trade, CBIC on 26-11-2025
and other authorizations required for clearance
sensitized all its field formations to ensure flexible
of consignments, thereby reducing manual
work hours and safe transportation options for
intervention and improving efficiency. The
women working late hours or in remote locations.
platform has already achieved significant
• To streamline the process and ensure uniform progress, with several PGAs onboarded for pilot
treatment of different Bills of Entry importing the implementation and core functionalities such as
same commodity/ item under the same CTH, Single Sign-On, Unified Dashboard, and Unified
the National Customs Targeting Centre (NCTC) Application for NOC issuance now operational
has been tasked to review the Risk Treatment for select agencies. These advancements
Procedure and revise the same, as necessary. represent a major step toward creating a
seamless, technology-driven ecosystem for trade
• Gate Automation at Jawaharlal Nehru Port
facilitation, enhancing transparency, reducing
Authority- At Jawaharlal Nehru Port Authority
delays, and improving ease of doing business.
(JNPA), gate automation for self-sealed export
Full Scale implementation SWIFT 2.0 is expected
containers has been partially implemented at
to complete by end of year 2026.
the Centralized Parking Plaza (CPP). The key
achievement is the successful deployment of • Ease of compliance by EXIM Trade- Central
Universal E-Seal Readers at CPP entry gates, Board of Indirect Taxes and Customs (CBIC)
integrated with ICEGATE through APIs. This has compiled Non-Tariff Measures (NTMs) and
system reads RFID tags on containers and shared them with PGAs for verification, paving
validates data in real time, eliminating manual the way for issuance of notifications under
123Annual Report 2025-2026
Section 11(3) of the Customs Act, 1962. These • CBIC vide Notification No. 14/2025-Customs
steps collectively aim to simplify compliance, (NT) dated 18.03.2025 amended Customs
reduce delays, and strengthen trade facilitation. (Administration of Rules of Origin under Trade
Agreements) Rules, 2020 and the term "Certificate
• The Central Board of Indirect Taxes and Customs
of Origin" was substituted with "Proof of Origin".
(CBIC), vide Notification No. 21/2025–Customs
Circular No. 14/2025-Customs dated 21.04.2025
(N.T.) dated 03rd April, 2025, has notified the
explaining the said amendments has also been
Export Entry (Post Export Conversion in relation
issued.
to Instrument Based Scheme) Regulations,
2025, by rescinding the earlier Post Export • Memorandum of Understanding (MoU) on the
(Shipping Bill (Post export conversion in relation implementation of the Bilateral Agreement on
to instrument based scheme) Regulations, 2022 Customs Cooperation between the Central
Board of Indirect Taxes and Customs (CBIC),
vide Notification no. 11/2022-Customs (N.T.).
India and the Islamic Republic of Iran Customs
These Regulations provide a framework for
Administration (IRICA) was signed on 08.05.2025
post-export or post-clearance amendment of
by Shri Sanjay Kumar Agarwal, Chairman, CBIC
shipping bills/export entries, thereby enabling
on behalf of the Government of the Republic of
conversion of shipping bills into other eligible
India and H.E. Mr. Foroud Asgari, Deputy Minister
instrument-based schemes for availing export-
and Head of the Islamic Republic of Iran Customs
related benefits. The said measure has been
Administration.
introduced in furtherance of the Government of
India’s initiative towards trade facilitation and • Notification No. 59/2025-Customs (N.T.) dated
ease of doing business, with a view to extending 29.09.2025 was issued to give effect to the Rules
due benefits to exporters. of Origin (Annex 2.A) and its appendices of the
India-EFTA Trade and Economic Partnership
• The Central Board of Indirect Taxes and
Agreement (TEPA). In exercise of the powers
Customs (CBIC), vide Circular No. 11/2025–
conferred by sub-section (i) of Section 5 of the
Customs dated 03rd April, 2025, has circulated
Customs Tariff Act, 1975, the Customs Tariff
guidelines for the implementation of Notification
(determination of Origin of Goods under the
No. 21/2025–Customs (N.T.) dated 03rd April,
Trade and Economic Partnership Agreement
2025, notifying the Export Entry (Post Export
between India and the EFTA States) Rules, 2025
Conversion in relation to Instrument Based
has been made.
Scheme) Regulations, 2025. The said Circular
seeks to clarify the scope and intent of the • Protocol between Central Board of Indirect Taxes
aforesaid Regulations and provides necessary and Customs (CBIC), Republic of India and The
guidance to Customs field formations and the Federal Customs Service (Russian Federation)
trade, thereby facilitating uniform understanding for cooperation in exchange of pre-arrival
information in respect of goods and vehicles
and effective implementation, in furtherance of
moved between the Republic of India and the
the Government’s trade facilitation objectives.
Russian Federation was signed on 04.12.2025
• Postal Imports Regulations 2025 have been by Sh. Vivek Chaturvedi, Chairman, CBIC on
framed/issued in respect of Postal vide Notification behalf of the Government of the Republic of India
No. 18/2025 - Customs (N.T.) dated 28.03.2025 and Ms Tatiana Merkushova, Deputy Head FCS
thereby creating common regulations for all Russia.
postal imports.
• Agreement between the Republic of India and the
• Vide Circular No. 28/2025-Customs dated Federal Democratic Republic of Ethiopia on Co-
15.11.2025, CBIC has operationalised a operation and Mutual Administrative Assistance
dedicated online module on ICEGATE 2.0 to in Customs Matters was signed on 16.12.2025
streamline/simplify submission of applications for by Mr. Sudhakar Dalela, Secretary (Economic
permissions under Section 65 (MOOWR, 2019 Relations), Ministry of External Affairs (MEA) on
and MOOSWR, 2020) for warehouses licensed behalf of the Republic of India and Mr. Hadera
under Sections 58/58A of the Customs Act, 1962 Abera, State Minister of Foreign Affairs, Ethiopia.
124Department of Revenue III
• CBIC’s proposal on behalf of India for amending expressed gratitude to India/CBIC for knowledge
the election procedure in the TIR Executive sharing and capacity enhancement programmes.
Board (TIRExB) to require ‘disclosure of votes’,
• The 6th Joint Group of Customs (JGC) Meeting
was accepted unanimously by all the 64
between India and Bhutan was held on 24th-25th
countries present and voting, during the 85th
April 2025 in Thimphu, Bhutan. The meeting
Session of the TIR Administrative Committee,
discussed a host of bilateral issues for enhancing
scheduled on 5th and 6th February 2025, in
trade and transit between the two countries. The
Geneva, under the framework of UNECE.
automation and digitisation of transit processes,
The disclosure of votes is aimed at increasing
Coordinated Border Management (CBM), pre-
transparency and strengthening trust among
arrival exchange of Customs data, Customs
member states of Customs Convention on the
Mutual Assistance Agreement (CMAA) and
International Transport of Goods under Cover
movement of transit cargo under Electronic
of TIR Carnets (TIR Convention), 1972. The
unanimous acceptance of India’s proposal Cargo Tracking System (ECTS) were discussed,
marks a diplomatic victory and highlights India’s among others. Bhutanese side extended their
influence in international regulatory bodies and sincere thanks to CBIC for their continued
its commitment to transparency in multilateral support, especially recognizing the capacity-
agreements. This move aligns with CBIC’s building workshop titled ‘Advancing India Bhutan
broader push for good governance, transparency, Trade and Economic Partnership’, held from 29th
and efficiency in international institutions, July to 1st August, 2024, which played a vital
reinforcing India's leadership role in global trade role in easing export processes and addressing
and transport facilitation. trade-related concerns.
• The 21st Director-General Level Talks on Customs • ECTS allows electronic sealing of containers
Cooperation was held between India and Nepal and monitoring of cargo movement with live GPS
in Kathmandu, Nepal on 10th – 11th April, 2025. tracking. It also enables real-time monitoring of
Both the sides discussed a host of bilateral issues seal integrity and immediate intervention in case
for enhancing Customs Cooperation between the of any breach. It has the functionality of providing
two countries. Both sides looked forward towards real-time information at pre-determined intervals
cooperation in preventing smuggling across the on the position, speed and seal integrity with a
borders with active engagement and exchange provision to generate alerts based on pre-set
of intelligence and agreed to take necessary risk parameters such as attempted tampering;
measures to control the unauthorised trade diversion from specific routes etc. This not only
and work in tandem. The agenda items of the ensures secure movement but also provides
meeting covered measures to check smuggling;
valuable data on logistics efficiency.
review progress on MoU on Pre-arrival Exchange
• Jaigaon Land Customs Station sets a national
of Customs Data and Electronic Origin Data
benchmark in NTRS (National Time Release
Exchange System (EODES); finalization of
Study), 2025 among land border points. Jaigaon
Customs Mutual Assistance Agreement (CMAA);
LCS achieved an exceptionally low Average
facilitation of movement of transit cargo under
Release Time (ART) for both import and export
Electronic Cargo Tracking System (ECTS);
cargo. This stands in stark contrast to the higher
automation and digitization of transit processes;
dwell time for both import and export of cargo,
upgradation of border infrastructure; knowledge
observed at the Integrated Check Posts. This is
sharing program and support for capacity
attributed to high facilitation rates, automation
development, among others. Issues related to
and adoption of modern procedures by the Indian
trans-border criminal activities and smuggling
Customs at the land customs station.
of gold; narcotics; Fake Currency Notes (FCN),
prohibited/restricted category of goods, such as • Notification No. 73/2025-Customs (N.T.) dated
e-Cigarettes, e-lighters, certain varieties of garlic 04.11.2025 has been issued for notifying the
transhipment of cargo for the ports of Kolkata,
and other cases of commercial frauds, including
Haldia and Vishakhapatnam in India to "Indian
sensitive goods were also deliberated. Nepal
125Annual Report 2025-2026
Customs Yard, Jogbani in India by rail and from along with monthly reconciliation report from the Customs
Indian Customs Yard, Jogbani to Biratnagar Zones has ensured an effective Digital Offense database
in Nepal by road" by amendment in principal for further usage to examine trend analysis.
Notification No. 68/2019-Customs (N.T) dated
Instruction No. 12/2025-Customs: This office
30.09.2019.
issued Instruction no. 12/2025-Customs dated 22.05.2025
concerning the procedure for disposal of Red Sanders
3.7 Commissioner Investigation (Customs), CBIC
by the Directorate of Revenue Intelligence (DRI) and
The office of Commissioner Investigation Customs field formations so as to get expedited the
(Customs), CBIC deals policy matters relating to Search disposal of red sanders.
Seizure, Arrest, Prosecution and compounding offences
Circular No. 13/2025-Customs: This office
under Customs Act,1962 (All legislative matters relating
issued Circular No. 23/2025-Customs dated 23.09.2025
to Chapter XIII, XIV and XVI of the Customs Act, 1962). to deem unique number of the communication dispatched
This office also deals with matters related to Disposal of electronically via e-office as the Document Identification
various seized and confiscated goods including Gold and Number (DIN) so as to smoothen the functioning of the
Narcotics, MLAT requests, Prosecution of officers under department.
Customs Act, Presidential Award, Reward to officers as
Instruction No. 30/2025: This office issued
well as informers, NCORD, Election matters and matters
Instruction no. 30/2025 dated 13.10.2025 regarding
pertaining to FATF Cell in CBIC.
outlining guidelines for issuance of Look Out Circulars
(LOC) on the electronic portal by DRI, DGGI, and
The following instructions/circulars were issued:
Customs and GST field formations by respective nodal
Instruction No. 10/2025-Customs: This office officers.
issued Instruction no.10/2025 Customs dated 13.05.2025
3.8 CX-8A/Legal Cell, CBIC
to prescribe DIGIT entry details (Customs Offence
database) in the revised formats for Arrest Reports and Important items of work accomplished during the
Incident Reports (in cases where no arrest is made). This 2025-26
Proposal received SLP Filed No SLP Withdrawn Transferred
238 128 41 4 0
Special Leave Petition
Appointment of Sr./Jr. Standing Counsels/SPPs/Special Counsels/Special Fee Counsels
Category of Counsels Total Proposals (No. Proposals processed (No. of Appointed
of Counsels) Counsels)
Sr./Jr. Standing Counsels 2 (39) 2 (39) 487
Special Public Prosecutors 9 (94) 9 (93) 77
Special Counsel - - -
Special Fee Counsels 3 (3) 3 (3) 3
Authorization
No. of requests received No. of authorization processed No. of authorization issued
for authorization
3210 3210 3204
3.9 Directorate General of Human Resources part of Human Resource Development in CBIC. During
Development (DGHRD) the F.Y. 2025-26, out of the total allocation of BE of
Rs. 773.25 crore under Capital Heads (4059 & 4216)
3.9.1 DGHRD – Infrastructure Division
an amount of Rs. 308.83 Cr. has been released till
1. Infrastructure development forms an integral 25.11.2025.
126Department of Revenue III
S. Zone / Proposal in brief Total cost
No. Directorate
(Rs. in Cr.)
Mumbai Zone-I Construction of Office complex and residential quarters at Customs
1 975.72
Customs Enclave Plot, Wadala, Mumbai
Construction of new NACIN complex at Hindupur, Palasamundram
(A.P)
2 NACIN 840.86
*Inaugurated by the Hon’ble PM on 16.01.2024.
Tentative date of completion of project is Dec, 2025.
Construction of Office building (GF+28 Storeyed) & residential
Hyderabad quarters at Khajaguda village,
3 644.63
CGST
Serilingampally Mandal, Hyderabad
Construction of office building & residential quarters for CGST
4 Guwahati CGST Shillong, Customs (NER) Shillong, CGST Audit Comm'te and 256.63
NACIN Shillong
Construction of office building for CGST Ghaziabad and Audit-II, at
Ghaziabad
5 Meerut CGST 116.42
Project inaugurated on 24.10.2025 by Hon'ble FM.
Construction of DRI (HQ.) Office building at Vasant Kunj Delhi
6 DRI 99.39
Project inaugurated on 03.06.2025 by Finance Minister.
Construction of office accommodation building for Chennai Customs
Chennai
7 Audit and Import Comm’te and Partner Govt. Agencies at Jaffer 91.64
Customs
Syarang Street, Chennai.
Mumbai–II Construction of additional office building (G+7) at JNCH, Nhava
8 80.60
Customs Sheva, Dist. Raigad, Mumbai
Chennai
9 Construction of 36 residential quarters at Nungambakkam, Chennai 65.42
Customs
Construction of DRI office building at Kolkata
10 DRI 64.50
Project inaugurated on 12.02.2025 by Member (CBIC).
Construction of RTI, NACIN at Attapur, Hyderabad
NACIN
11 46.71
Hyderabad
(NBCC project)
Construction of office building for CGST Commissionerate Kolhapur,
12 Pune CGST 42.44
at Tarabai Park, Kolhapur
Hyderabad Construction of office building for Hyderabad Custom Commis-
13 44.62
CGST sionerate at Mamidipally, Hyderabad.
DRI Construction of office premises for Directorate of Revenue
14 39.86
Ahmedabad Intelligence, Zonal Unit, Ahmedabad
127Annual Report 2025-2026
S. Zone / Proposal in brief Total cost
No. Directorate
(Rs. in Cr.)
Construction of DRI Lucknow Zonal Unit office at Plot No.
15 DRI 36.68
07/13-B-2, Gomti Nagar Extension, Lucknow
Visakhapatnam
16 Construction of office building at Tirupati 36.11
CGST
Construction of office building of DRI Zonal Unit at Trustpu-
17 DRI 31.38
ram Kodambakkam, Chennai
Const. of office building and boundary wall at Lamphel at
18 Guwahati CGST 30.08
Imphal
Construction of office building for DRI Hyderabad Zonal Unit
19 DRI 24.14
at Jubilee Hills at Hyderabad
Customs Ahmed- Construction of Staff quarters at Jamnagar Proposal inau-
20 19.42
abad gurated on 28.03.2025.
21
CGST Lucknow Const. of new office building for CGST Division at Aligarh. 13.08
22 Customs (Prev.), Construction of Office cum Residential building for Custom 12.83
Delhi Staff, Leh, U.T. of Ladakh
2. Major infrastructure proposals sanctioned/ The maximum financial assistance granted
ongoing/completed as on 25.11.2025. after revision of guidelines has been enhanced
from Rs. 7.5 lakhs to Rs. 25.0 Lakhs, including
CUSTOMS & CENTRAL EXCISE WELFARE FUND
a special provision of Rs. 7 Lakhs in cases of
The performance and achievements under the key/ deaths of departmental officials due to COVID-19
flagship programmes being implemented by the contacted while on duty.
Welfare Division during the year:
42 bereaved families of departmental officials
A number of welfare schemes are being
have been granted Rs. 2,07,00,000/- under the
implemented for staff welfare under the aegis of Customs
Scheme, as on 25.11.2025.
& Central Excise Welfare Fund. A thorough revision
of most of the welfare schemes has been completed, Setting up/ refurbishing of Departmental
where-after not only the schemes have been updated
Canteens/ Kitchenettes:
and rationalized with changing times but amounts granted
under the schemes have also substantially enhanced Assistance is granted from the Welfare Fund for
both in cases of the schemes targeted for benefits of
setting up/ refurbishing of Departmental Canteens/
individuals and as well for procuring energy efficient and
Kitchenettes by formations under CBIC.
latest technology gadgets/items for setting up of common
facilities. The major schemes are detailed here-under: Setting up/ refurbishing of Departmental
Medical Assistance: Guest Houses:
Financial assistance is granted for the portion Assistance is granted from the Welfare Fund for
of medical expenses incurred by departmental setting up/ refurbishing of Departmental Guest
officials on self and dependent family, which Houses by formations under CBIC.
could not be reimbursed under CGHS/ CS (MA)
Rules. 4 proposals have been approved granting total
financial assistance of Rs. 54,77,223/- as on
Under the scheme, 179 departmental officials
25.11.2025.
have been granted a total amount of Rs.
1,39,15,900/-, as on 25.11.2025. Promotion of Adventure Sports:
Ex-gratia assistance to the families of Assistance is granted for participation in various
deceased officers: outdoor adventure sports/ activities like trekking,
Ex-gratia financial assistance is granted to the rock climbing, adventure camps/activity/course,
bereaved families of officials in cases of deaths water skiing, paragliding, parasailing, hot air
of departmental officials while in service. ballooning, white water rafting etc.
128Department of Revenue III
Cash Awards for winning Medals/Civilian awards A Scheme for granting financial assistance to the
in sports and assistance for participation in sports formations under CBIC for taking Preventive and
events: Welfare measures for fighting against COVID-19
Annual Medical Examination for Group 'B' and
Cash Awards are granted for winning Medals/
Group 'C' officials:
Civilian awards in sports alongwith financial
assistance for participation in sports events from A scheme for funding of Annual Medical
the Welfare Fund. Examination for Group 'B' and Group 'C' officials
of age 40 years and above from Welfare Fund
After revision of guidelines amounts granted have has been launched.
been enhanced many folds for winning medals
234 Proposals has been approved granting
in the international sports events/ competitions
total financial assistance of Rs. 4,70,008/- as on
and are now at par with the amounts granted by
25.11.2025.
the Ministry of Sports and Youth Affairs.
Financial assistance for the Subsidized transport
Setting up/ refurbishing of Departmental Gyms/ facility for the Staff posted at JNCH, Nhava
Recreation/ Sports centres: Sheva, Raigarh
Assistance is granted from the Welfare Fund for Under the scheme, partial funding of the
setting up/ refurbishing of Departmental Gyms/ subsidized transport facility for the officers/staff
posted at JNCH, Nhava Sheva, Raigarh total
Recreation/ Sports centres by formations under CBIC.
amount of Rs. 6,17,836/- as on 25.11.2025 has
6 proposals have been approved granting total been sanctioned by the Governing Body of the
financial assistance of Rs. 48,16,812/- as on Customs & Central Excise Welfare Fund.
25.11.2025. Assistance to the needy Persons with Disability (PwD)
Setting up/ refurbishing of creche facilities: A Welfare scheme for grant of financial assistance
to the needy Persons with Disability (PwD) of
Assistance is granted from the Welfare Fund
departmental officials or their dependent family
for setting up/ refurbishing of creche facilities by
members has been launched by the CBIC from
formations under CBIC. the Customs & Central Excise Welfare Fund.
4 proposals have been approved granting total Performance of EMC during the FY 2025-26:
financial assistance of Rs. 19,76,619/- as on
• Budget of Rs. 12054.08 crore were allocated to
25.11.2025.
CBIC in B.E. 2025-26, (excluding scrip-based
Preventive and Welfare measures for fighting schemes) and expenditure as on 25.11.2025
is Rs 7758.77 crore which is showing 64.37 %
against COVID-19:
utilization of funds.
(Rs in crore) Descriptions Total Expenditure as % Utilization Projected expen-
Budget on 25.11.2025 diture in remain-
(BE) ing F.Y.
1 2 3 4
Total Budget and Expenditure (In-
cluding scrips-based schemes) 42889.33 22969.72 53.56 % 18526.39
Total Available Budget and expendi-
ture of 68 Budgetary Authority (Ex- 12054.08 7758.77 64.37 % 5034.84
cluding scrips-based schemes)
• Additional funds of Rs. 774.11 crore was released formations and the same was submitted to IFU/
as on 25.11.2025 as per the request of the field Ministry.
formations and various sanction orders of the
• Budget of Rs. 30835.25 crore were allocated
Ministry to enable Field formations to utilize these
in B.E. 2025-26 for scrips-based schemes and
funds for their urgent requirement.
expenditure as on 25.11.2025 is Rs 15210.95
• Proposal for RBE 2025-26 & BE 2026-27 was crore which is showing 49.33 % utilization of
finalized based on the requirements of field funds.
129Annual Report 2025-2026
• 29 sanction orders of Rs. 15210.95 Crore CRB (Cost Recovery basis) / Vehicle
regarding scrips-based schemes have been
Goals and Achievements: 01st April 2025 to 30th
issued.
November 2025 CRB
Projection and estimate for the remaining period till
The following approvals have been obtained from the
March, 2026
Ministry/DoE: -
• Detailed Demand for Grants (DDG) 2026-27 is to
(i) Creation of 253 Temporary Posts in respect of
be prepared, compiled and sent to Ministry/IFU.
08 Customs facilities.
• R B E 2025-26 is to be allocated to the field
(ii) Continuation of 78 Temporary posts in respect
formations as per the ceilings provided by Budget
of 19 Customs facilities.
Division.
(iii) Exemption of Cost Recovery Charges in respect
• Re-appropriation order, if required, is to be
of 07 Customs facilities
prepared in respect of RBE 2025-26.
VEHICLES
• Letters to be issued to all Field formations for
their Final Requirement 2025-26. The sanction / approval of Additional Operational Vehicles
under CBIC has been obtained from the Ministry/IFU.
• Allocation of funds as per Final Requirement
2025-26.
S No. Ministries/Directorates/wings/Field Formations of CBIC Vehicles Sanctioned
1 Audit Circle, Chief Commissioner of CGST & Central Excise Tamilnadu 3
& Puducherry Zone
2 DG Systems, New Delhi 5
3.9.2 Directorate General of Performance Regional Units of DGPM to carry out performance review
Management (DGPM) and submit the report to take up the same with board to
formulize the revised policy, if any, for the respective
(i) DGPM and its regional units are tasked with
Operational System.
inspection of field & to ensure that the field offices are
working as per CBIC’s policy guidelines. As per the (iii) DGPM is also working as a nodal agency of CBIC
current guidelines, the DGPM allocates the inspections to implement official language policy of Government
to The Principal Chief Commissioner/Chief Commissioner of India and coordinating between the Ministry/Board
of Customs/GST and ADGs of Regional Units of DGPM
and all attached/subordinate offices of CBIC. Quarterly
to carry out the inspection of various Commissionerates/
Hindi progress report of DGPM is being prepared and
Directorate and submit the inspection report for issuance
forwarded to Ministry. Further, the following major work
of consolidated annual inspection report by DGPM. This
for Implementations/promotion of the Official Language
is ensured through a periodic review of Commissionerate
were undertaken from 01/04/2025 to 30/11/2025:
records, making an assessment of how the formation is
performing and issuing inspection note, highlighting the
• Hon’ble Committee of Parliament on Official
specific shortcomings with observed trends.
Language conducted official language inspections
DGPM Inspection (Hqrs.) including all Regional of 18 offices under the Central Board of Indirect
Units has been allocated 43 inspection in the current F.Y. Taxes and Customs, in which the Directorate
2025-26 out of which 28 inspections have been completed General of Performance Management played
as on 30.11.2025 and remaining 15 inspections shall be an important role as the nodal office. From
completed by the end of January, 2026. preparing the questionnaire for its subordinate
offices and presenting it to the committee,
(ii) In addition to above task, the DGPM was also
Headquarters extended full help in preparing
entrusted to carry out the theme-based performance
the questionnaire and harmonizing with the
review of Operational systems of the Commissionerates/
Ministry. Representation of the Headquarters was
Directorates under “Operational Systems Performance
ensured during the inspection meeting, and after
Review” (OSPR). The manual of OSPR has been duly
finalized by board. The themes for OSPR for the FY the inspection meeting, a periodic review of the
2023-24, 2024-25 and 2025-26 (till date) have been performance of Official Language implementation
finalized by Board and the same have been allocated to of the referred offices was carried out.
130Department of Revenue III
• The Directorate General of Performance • The publication of the departmental Hindi
Management, on behalf of the Central Board magazine "Indraprastha" was ensured and
of Indirect Taxes and Customs is inspecting it was released by the Hon'ble Chairman on
100 offices under it which is scheduled to 14.10.2025 during the "All India Official Language
be completed by March 2026. Out of these, Conference".
inspection work of more than 50 offices has been
• The guidelines and letters related to the official
completed.
language received from the Ministry of home
• The quarterly Hindi progress report of the Affairs/ Finance were resolved from time to time
headquarters from April to June 2025, July to through circulation and correspondence.
September 2025 were compiled and reviewed,
• Being the nodal office for the official language,
and sent to the ministry for necessary action.
every quarter, the quarterly Hindi progress report
• 03 Hindi workshops (dated 11.07.2025, of the subordinate offices and the status of
21.11.2025 and 24.11.2025) were organized official language implementation were reviewed
in the Directorate General to make the officers/ and necessary guidelines were issued to them
employees aware of the Official Language to achieve the goal in the implementation of the
Policies about the Official Language Hindi, and official language.
were encouraged to do 100 percent work in Hindi.
• Being the nod
• The meetings of the Official Language
• The Hindi Noting and Drafting Incentive Scheme
Implementation Committee (dated 25.06.2025,
of the Department of Official Language, Ministry
26.08.2025 and 11.11.2025) were organized in
of Home Affairs was implemented and 10 officers/
the Directorate General in which the progress of
officials were rewarded during the Hindi fortnight
Official Language Hindi of the Headquarters and
for performing their maximum work in Hindi.
04 other regional units under the Headquarters
as the Chairman was reviewed and various work (iv) DGPM seeks the quarterly reports on “SAADHIT”
were discussed for the progress of the Official from all Commissionerates/Directorates and furnishes a
Language Hindi and necessary guidelines have consolidated quarterly report to Board office. In addition,
been issued. development of Aakalan dashboard and compilation of
monthly Aakalan Report is done by DGPM.
• The meetings of the Official Language
(v) The CPIO & Appellate Authority have been
• Hindi Pakhwada was organized in the Directorate appointed and the replies to RTI Applications are being
of Engineers with great enthusiasm from given in stipulated time frame. 143 RTI Applications were
15.09.2025 to 30.09.2025 in which the talent received from 01.04.2024 to 30.11.2025, which are timely
of the officers/staff was highlighted through 06 disposed off. Similarly, all the appeals are being attended
different competitions and they were motivated and disposed off within the time limit. The required
monthly/quarterly reports are being sent in time.
to do 100% of their work in Hindi.
3.9.3 Directorate General of Taxpayer Services
• On 14.10.2025, "All India Official Language
(DGTS)
Conference" was organized at Sushma Swaraj
Bhavan, Chanakyapuri in which various PUBLICITY
activities were organized. During this period,
Paras below highlights the performance under
the departmental magazines published in the
‘Advertisement and Publicity’ implemented by DGTS till
subordinate offices were evaluated and the
31st December 2025 (F.Y. 2025-26).
concerned Principal Chief Commissioner/Chief
Commissioner were honored at the All-India Publicity Activities undertaken in F.Y. 2025-26
level. The Chief Commissioner was awarded
Publicity & Outreach Campaign w.r.t. Next-Gen GST
the Official Language Shield and Certificate.
Reforms
The Hon'ble Chairman, Central Board of Indirect
Taxes and Customs was the Chief Guest and • A nationwide multimedia publicity campaign was
senior officers and personnel from the Board and planned and executed through Central Bureau of
Headquarters as well as other offices participated Communications (CBC), nodal agency of GoI, to
with great enthusiasm. A cultural programme was disseminate information on the Next-Gen GST
also organized on the occasion. Reforms, as announced by the Hon’ble Prime
131Annual Report 2025-2026
Minister in his Independence Day Speech 2025. • The department’s efforts were recognised with
The campaign was undertaken in accordance with the pavilion being awarded First Rank in the
the directions received from the Ministry and the ‘Public Outreach & Communication’ category
at IITF 2025.
Board. The Central Bureau of Communications,
the nodal agency of Government of India made Media Monitoring & Reporting
an extensive 360-degree publicity campaign
• Prepared and delivered Daily Media Monitoring
through Print, Electronic (TV & Radio), Outdoor,
Reports covering CBIC-related coverage from
Digital & Misc. Media across the country.
print, digital and social media.
• Following the approval of the reforms by the
• Presented concise, actionable insights to senior
GST Council on 03.09.2025, the Directorate officials to support informed decision-making and
ensured extensive public outreach ahead timely communication responses.
of their implementation on 22.09.2025. The
Miscellaneous Work
campaign was further carried forward to enhance
awareness among the general public as well Oversaw the production of key communication materials,
as the business community regarding the key including:
features and benefits of the reforms.
• Television Commercial (TVC) on:
Management of CBIC Social Media Handles o Nil-filing of GST Returns through SMS.
• Oversee and manage CBIC’s official social o GST is an additional tax over and above
media presence across Facebook, YouTube, MRP- Misconception
X (Twitter), WhatsApp and Instagram, ensuring
o GST goes directly into the pockets of
consistent messaging, accuracy and adherence
businesses and if businesses want it can
to departmental communication protocols.
change the GST charged - Misconception
• Plan, curate and publish digital content to o Bill of Supply by Composition Dealers
promote GST and Customs initiatives, public-
o GST on House Purchase
friendly reforms and awareness campaigns,
enhancing citizen outreach and engagement. o 07 TVCs on Atithi App
• Monitor platform analytics, public feedback and • Short educational video on:
trends, coordinating with stakeholders (Board and
o ‘Green Channel and Red Channel’ processes
Field-formations) to ensure timely dissemination
for passengers.
of information and effective grievance-sensitive
o Updated version of DGGI ‘DIGIT Application’
communication.
o ‘ICETAB’ for examination in exports
Event & Pavilion Management
o 02 audio-visuals highlighting the journey of
• Participated in the India International Trade
GST and various outreach events organised
Fair, 2025 at Pragati Maidan, New Delhi and
by CBIC field formations on the occasion of
successfully organised and managed the ‘GST
GST Day, 2025.
& Customs Pavilion’ with the theme “Next-Gen
GST: सरल कर, खुशु हााल राष्ट्र”, effectively showcasing o 08 short videos on various topics of GST &
the latest indirect tax reforms, CBIC’s initiatives, Customs highlighting achievements of CBIC.
and citizen-centric services.
• Multi-lingual tutorial series on following GST
• Led end-to-end planning, including content & Customs topics:
development, display design, visitor engagement
o Various Returns under GST
strategies, and coordination with multiple
departments and partner agencies to ensure o How to opt out of GST
seamless execution of the Pavilion.
o Casual Taxable Persons under GST
• The pavilion received overwhelming footfall
o Atithi App
and enthusiastic participation from visitors
across age groups, professions, and sectors, • Print Advertisements in English, Hindi and
indicating strong public interest and confidence Regional Language Newspapers across the
in the recent GST reforms. Country through CBC on following topics:
132Department of Revenue III
o Quarterly Return Monthly Payment Scheme Quarterly Returns on the CIC website. During the period,
-02 Ads applications received under the RTI Act, 2005 were
efficiently handled. Public Grievances received by the
o Rozgar Mela, 2025 (April, 2025) -
Directorate were processed/forwarded to the appropriate
01 Ad
formations for further action.
o GST Pakhwada - 01 Ad
Total No. of RTI received -732
o Next-Gen GST Reforms -39 Ads
Total No. of RTI disposed -721
o GST Annual Return - 02 Ads
Total Appeals Received -10
o Machine based levy on tobacco and Gutka
Total Appeals disposed -10.
in Pouches - 01 Ad
TAXPAYER SERVICE CENTRES
o Health Security se National Security (HSNS)
Cess Act, 2025 - 01 Ad One of the mandates of DGTS has been to set up
Taxpayer Service Centers in all Commissionerate’s.
o Composition Scheme -02 Ads
Vigorous follow-up has ensured setting up of Taxpayer
Services Centers in the Commissionerate’s of Central
Tariff & Coordination
Tax, Customs & Central Excise.
Tariff and Coordination entrusted with the task of
following- PUBLICATIONS
1) Coordination with the all Zonal units Till 31.12.2025
2) Board Coordination Report The Directorate brought out following publications at the
behest of CBIC and other formations:
3) E-Helpline Taxpayer Reports (Monthly)
1) National Trade Facilitation Action Plan Booklet.
4) Quarterly Saadhit report Compilation
2) DGGI Quarterly Bulletin (04 No.)
5) Webinar Report Compilation
3) Mahakumbh Brochure on 32 topics (Bilingual)
6) Monthly Inspection Report Compilation (Including
changes of Digital Archives, Citizen Corner, Ease 4) Customs Manual- 2025
of doing business)
5) Civil List 2025
7) Organized 55 webinars/Seminars in a span of
6) Brochures for IITF- 2025 on 53 topics (Bilingual)
last 8 months.
7) LCS Booklet
8) CCFC/PTFC/RAC/Open House Meetings.
8) Hindi Manual on 12 topics
CPGRAMS
9) DGTS Hindi Magazine
All public grievances received through CPGRAMS by
this Directorate were processed and forwarded to the Projection till 31.03.2025
concerned field formations for necessary action. During
Sampark 2026; E-Sampark, Duty Drawback Schedule;
the period under review, a total of 11,467 public grievances
Customs Day Publications etc.
were received, of which 99% were disposed of. Further,
1,364 appeals were received, out of which 96% were
3.10 NACIN, Palasamudram
disposed of. Additionally, three Taxpayer Services and
Public Grievances Review Meetings were held under NACIN CAPACITY BUILDING INITIATIVES
the chairmanship of the Hon’ble Revenue Secretary. In
3.10.1 OFFICER TRAINEE TRAINING AND SPECIAL
addition, Monthly Review Meetings on Public Grievances
FOUNDATION COURSE
were regularly conducted through video conferencing
under the chairmanship of the Hon’ble Chairman, CBIC. • During 2025-26, NACIN conducted induction
training for IRS (Customs & Indirect Taxes)
RTI
Officer Trainees of 75th (35 officers), 76th (74
This Directorate is the nodal agency under CBIC to officers) and 77th batches (83 officers) including
monitor the progress of filing of quarterly returns by ten Officer Trainees from the Royal Government
public authorities under CBIC on the website of Central of Bhutan in each batch. The 75th Batch passed
Information Commission (CIC) as required under out in April 2025 after completing the 16 months
Section 25(2) of the RTI Act, 2005. It was ensured that training and their furbisher is being conducted in
all the field formations under CBIC uploaded their RTI Jan 2026 now. The 76th batch has completed
133Annual Report 2025-2026
almost 13 months of training and likely to pass • The ICSTC attracted international participants
out by April 2026. Recently, the 77th batch has from 20 partner countries across Africa, Asia,
started their training Dec 2025 onwards. and Oceania, with over 450 officers trained during
April-December 2025.
• The IRS Officer Trainees received extensive
training on indirect tax frame work and allied • Strategic partnerships include WCO, ADB-
Acts apart from specialized training on SC/ST SASEC, UNODA, U.S. State Department, IMF-
and gender sensitization, Vishaka Guidelines, SARTTAC, Ozone Cell, and Narcotics Control
Right to Information Act, e-governance platforms, Bureau.
digital forensics, etc. Immersive Field Training
3.10.3 IN-SERVICE TRAINING WING ACTIVITIES
imparted through attachments with Customs
Commissionerates and GST Commissionerates • The Mid-Career Training Programme (MCTP) for
and Directorates providing hands-on exposure Joint Commissioner-level officers provided 107
to operational challenges. officers comprehensive training on operational
competencies, leadership, strategic thinking,
• For the first time, NACIN conducted Special
cyber and digital forensics, and behavioural skills
Foundation Course (SFC) as an associate
through one week at NACIN Palasamudram and
institute of LBSNAA for 14-week from September
three weeks at ISB Hyderabad.
8, 2025, to December 5, 2025. Officer trainees
from 11 different All India and Central Civil • Specialized training for GST Appellate Tribunal
Services participated in the programme. The Members (49 Judicial Members and 40 Technical
training imbibed a foundation in discipline, Members) conducted in Nov -Dec 2025; covered
integrity, citizen-centric governance, and service GST law, adjudication, GSTN e-Tribunal
to the nation, featuring interactive sessions with systems, natural justice, and artificial intelligence
experts, field visits, and social service initiatives. in judicial governance.
This initiative is part of NACIN's role as a premier
training academy under the CBIC. • The 4 weeks Orientation training conducted for
160 officers who were promoted Grade-A officers.
• The 2025-26 training year witnessed engagement
with India's finest thought leaders, policymakers, • Master Trainers Programme on GSTN
scientists, and innovators who shared their vision Enforcement (30 DGGI and 36 CGST officers in
and experiences with Officer Trainees. August 2025).
3.10.2 INTERNATIONAL COOPERATION AND • NACIN launched "Friday Insights by NACIN" (FIN),
SPECIALISED TRAINING CENTRE (ICSTC) a weekly webinar series featuring distinguished
INITIATIVES speakers.
• The ICSTC Wing has emerged as India's premier 3.10.4 ZONAL TRAINING INSTITUTES (ZTIs)
centre for international capacity building in
The ZTI network across 18 strategic locations
customs and enforcement. During April 2025
nationwide delivered diverse training programmes: (a)
to March 2026, the ICSTC conducted 14 major
Induction Training for newly recruited cadres across all
national and international training programmes,
ZTI locations; (b) Mandatory Pre-Promotion Training
reinforcing India's leadership in South-South
for officers seeking career progression; (c) Domain
cooperation.
Competency Training on GST enforcement, adjudication,
• Key Programmes: Training of Trainers on audit procedures, Customs regulations, investigation
HCFCs (21 CBIC officers at Jaipur); Revenue techniques, and digital forensics; (d) Functional and
Administration Gap Analysis with IMF-SARTTAC Behavioural Competencies including Indian Knowledge
(45 officers); ITEC Leadership in Public System (IKS) for leadership development, health and
Service (34 participants from 20 countries); wellness, and yoga/meditation programmes; (e) Training
ITEC Countering Illegal Drug Trafficking (42 to Stakeholders for Indian Railways, CAG officers, Indian
international participants with cultural exchanges
Coast Guard, and State Police; (f) Community Service
and study tours to Tipu Sultan's Palace and
including school toilet renovations in tribal areas, drug
Vidhana Soudha); Strengthening ODS/HFC
abuse awareness, and wildlife protection initiatives.
Controls at four locations (160 officers: Mumbai
47, NCTC Mumbai 21, Visakhapatnam 12, Total No. of Trainings conducted across NACIN HQ
Bengaluru 80); SASEC Capacity Building and all ZTIs (April to December, 2025) is 1488 and
on AEO-MRA (19 CBIC officers and SASEC Total No. of Participants (April to December, 2025)
representatives). is 1,09,111.
134Department of Revenue III
4. REVENUE HEADQUARTERS ü Competent Authorities (SAFEMA and NDPS)
ADMINISTRATION ü Director (FIU-IND)
ü Chairperson and Member of Adjudicating
4.1 Administration
Authority set up under PMLA
The Revenue Headquarters looks after matters relating ü Chairman and Members of “Appellate Tribunal”
to all administrative work pertaining to the Department, established under SAFEMA, 1976.
coordination between the two Boards (CBIC and CBDT), ü CVO, CBDT/ CBIC/ ED
the administration of the Indian Stamp Act 1899 (to the
4.2 Directorate of Enforcement
extent falling within the jurisdiction of the Union), the
Central Sales Tax Act 1956, Goods and Services Tax 4.2.1 Introduction
(GST) Act, 2017, the Narcotic Drugs and Psychotropic
4.2.1.1 The Directorate of Enforcement (ED) is the
Substances Act 1985 (NDPS), the Smugglers and Foreign
premier law enforcement agency of the Government of
Exchange Manipulators (Forfeiture of Property) Act 1976 India which has been entrusted with the administration
(SAFEMA), the Foreign Exchange Management Act and enforcement of the Prevention of Money-Laundering
1999 (FEMA), the Conservation of Foreign Exchange Act, 2002 (PMLA), the Foreign Exchange Management
and Prevention of Smuggling Activities Act, 1974 Act, 1999 (FEMA) and the Fugitive Economic Offenders
Act, 2018 (FEOA). ED is the nodal agency for collection
(COFEPOSA), the Prevention of Money Laundering
of intelligence, carrying out research and analysis and
Act, 2002 (PMLA) and matters relating to the following
conducting financial investigation for cases involving
attached/ subordinate offices of the Department:
money-laundering, bank frauds, financial scams, foreign
a. Enforcement Directorate exchange violations etc. Under the provisions of PMLA,
the officers of ED investigate and prosecute the persons
b. Central Economic Intelligence Bureau (CEIB)
involved in money-laundering, attach the proceeds
c. Competent Authorities appointed under SAFEMA of crime and carry out international cooperation with
competent authorities in foreign jurisdictions including
and NDPS
recovery of assets stashed abroad and extradition of
d. Chief Controller of Factories fugitives. ED is also entrusted with the responsibility to
investigate, adjudicate and impose penalty if any person
e. Central Bureau of Narcotics
violates the provisions of FEMA and launch prosecution
f. Customs, Excise and Service Tax Appellate in appropriate cases.
Tribunal (CESTAT)
4.2.1.2 In the recent past, the work of Directorate
g. Goods and Services Tax Appellate Tribunal of Enforcement has increased considerably both
(GSTAT) qualitatively and quantitatively. Investigations have
commenced in several high-profile cases and cases with
h. Appellate Tribunal under SAFEMA
International ramifications with positive results in terms of
i. Financial Intelligence Unit, India (FIU-IND) attachment and confiscation of proceeds of crime related
to bank fraud, corruption, drugs & human trafficking and
j. Adjudicating Authority under Prevention of Money terror financing etc.
Laundering Act
4.2.2 Functioning of the Directorate
k. National Institute of Public Finance and Policy
4.2.2.1 The primary function of the Directorate of
(NIPFP)
Enforcement is administration and enforcement of the
The following items of works are also undertaken Prevention of Money-Laundering Act, 2002 including
investigation into the offence of money-laundering, filing
by the Headquarters:
of prosecution complaint before the Special Court against
Appointment of – the accused, attachment and confiscation of property
involved in money-laundering, carrying out international
ü Chairman and Members of CBIC and CBDT
cooperation with competent authorities in foreign
ü Chairman, Vice Presidents and Members of jurisdictions ensuring that the accused persons do not
CESTAT enjoy the proceeds of crime. For collecting information
and investigating money-laundering (ML) offences,
ü President and Members of Goods and Services
Regional Offices/Zonal office/Sub-zonal of ED has been
Tax Appellate Tribunal (GSTAT) setup across various cities throughout the country. ED
ü Director General of CEIB collect information regarding commission of predicate
offence related to offence of ML from the following
ü Director of Enforcement
sources:
135Annual Report 2025-2026
a) ML-I and ML-II Reports: These are reports the ECIR) following a risk based approach taking into
provided by Law Enforcement Agencies (LEAs) consideration factors such as materiality of the offence,
that provide critical insights into predicate transnational nature of the crime, complexity of the case,
offences related to ML activities and related the larger public interest and the availability of resources.
offenses. Identification and quantification of proceeds of crime and
involvement of person/entities in any process or activity
b) Crime and Criminal Tracking Network &
connected with proceeds of crime are main requirements
Systems (CCTNS): This national database
for proving offence of money-laundering as well as for
enables law enforcement agencies to share and
punishment for money laundering offence.
access information about crimes and criminals,
facilitating better tracking and investigation. 4.2.2.2 The Directorate of Enforcement is also entrusted
with the implementation of the Foreign Exchange
c) Interoperable Criminal Justice System (ICJS):
Management Act, 1999 whose object is to consolidate
Similar to CCTNS, this system allows for the
and amend the law relating to foreign exchange
seamless exchange of information among
for facilitating external trade and payments and for
various criminal justice stakeholders, enhancing
promoting the orderly development and maintenance of
the investigative process.
foreign exchange resources. Information about possible
d) CBI portal: CBI regularly uploads branch-wise FEMA violations is received from human intelligence
copy of FIRs registered by the agency on its resources and various departments viz. (i) the Reserve
public website. Bank of India regarding export outstanding statements
(XOS statement), non-repatriation of foreign exchange,
e) Other Information from LEAs: This may include
pending Bills of entries, contraventions pertaining to
any additional intelligence or data that can aid
FDI, list of Authorized Dealer-I & II (AD-I & AD-II) who
in investigations provided by law enforcement
contravene the provisions of FEMA; (ii) Banks regarding
agencies either suo-moto or on request of the
contravention of FEMA including through mis-utilization
Directorate.
of foreign exchange/advance payments for imports, non-
f) Suspicious Transaction Reports (STRs) and realization of export proceeds and violation of norms
Operational Analysis (OA) Reports: STRs are of NRE/NRO/FCNR accounts; (iii) Custom authorities
reports submitted by financial institutions to FIU and Income Tax Authorities pertaining to over/under
to notify authorities of suspicious transactions voicing of exports/imports, smuggling of foreign currency,
that may indicate ML, while operational analysis illegal gold imports, violation of baggage rules etc.; (iv)
reports are multiple STRs having similar modus SEBI regarding violation of FDI norms pertaining to
operandi clubbed into a single STR after analysis FEMA by foreign investors etc.; (v) State authorities
by FIU and thus, OA provides deeper analysis. regarding purchase of agricultural land by foreigners
etc. & (vi) Income Tax Authorities regarding acquisition
g) Egmont Secure Web (ESW): Information
of undisclosed foreign assets under Black Money Act
gathered from ESW can provide critical leads
or otherwise which invites action under section 37A of
either to initiate an ML investigation or in ongoing
FEMA. Further, the some of the categories of cases being
ML investigations.
investigated by this Directorate under FEMA are as under:
h) Intelligence Inputs or Complaints from Private
a) Misuse of Foreign Portfolio Investment (FPI)/
Individuals: Tips or complaints received from the
Foreign Direct Investment (FDI) Route,
public can be valuable in identifying potential ML
activities. b) Issue of fraudulent Global Depository Receipts
i) Open-Source Information: This includes data (GDR),
available from media reports, online articles,
c) Trade based Money Laundering (TBML),
and other publicly accessible sources that may
provide insights into potential ML activities. d) Use of Crypto currency for receiving and sending
remittances,
j) Information from Any Other Source: This
encompasses any additional data that may be e) Transfer of money to foreign based wallets for
relevant, regardless of its origin. online betting/gaming/crypto,
On receipt of the reference or information from f) Misuse of LRS route,
any of the above sources and after making certain
g) Remittance of money abroad by forging CA
preliminary verification, ED records a case and initiates
investigation (Enforcement Case Information Report or certificate(Form 15CB),
136Department of Revenue III
h) Issue of Employee Stock Options (ESOPs) by said Act can be initiated against economic offenders who
foreign entity to India based employees, have left India so as to avoid criminal prosecution or who,
being abroad, refuse to return to India to face criminal
i) Violation of provisions of External Commercial
prosecution and where the total amount involved in the
Borrowings (ECB),
economic offence is more than Rs. 100 crore.
j) Agriculture land purchase in India by NRIs,
4.2.3 Organizational Structure
k) Misuse of Money Transfer Service Scheme
4.2.3.1 The Directorate of Enforcement is headed by the
(MTSS),
Director, who is not below the rank of Additional Secretary
l) Holding undisclosed foreign properties, to the Government of India. He is assisted in his work
at the Headquarters by officers of all ranks. Sanctioned
m) Write-off of Overseas Direct Investment (ODI),
strength of 03 Special Directors, 11 Additional/Joint
n) Possession of Foreign currency in excess to Directors and a number of other officers/staff is available
prescribed limit and in HQ to assist the Director, ED. The Headquarters office
(HQ) of ED is situated in New Delhi. The functional
o) Misuse of NRE/NRO/EEFC accounts.
establishment of ED is divided into 05 Regions located
Accordingly, ED investigates and issues Show at Chandigarh (Northern Region), Chennai (Southern
Cause Notices (SCN) in cases where the allegations of Region), Delhi (Central Region), Kolkata (Eastern Region)
contravention of provisions under FEMA are observed. and Mumbai (Western Region). Each region is headed by
These SCNs upon adjudication results in imposition a Special Director. Apart from the above Regions, special
of penalty as well as confiscation of currency/property units named as Headquarters Investigation Units (HIUs)
involved. and Special Task Force (STF) headed by the Special
Director are also functioning at the Headquarters office.
4.2.2.3 The Directorate of Enforcement has also
Regions are constituted by Zone(s) headed by Additional
been entrusted with the implementation of the Fugitive
Directors/Joint Directors and Sub-Zone(s) headed by
Economic Offenders Act, 2018. The FEOA provides for
Deputy Directors. Sub-Zones are controlled by respective
the measures to deter the fugitive economic offenders
Zones.
from evading the process of law in India by staying
outside the jurisdiction of Indian Courts and to preserve 4.2.3.2 Details of functions performed in HQ are as
the sanctity of the rule of law in India. Action under the follows:
Sr. No. Section Work Assigned
01. Establishment • This Section deals with recruitment, transfer, posting etc.
Section
• All Human Resource related work including maintaining incumbency position
of officers/staff; filling up vacant posts by issuing vacancy circulars/making
correspondence with UPSC, SSC etc.
• Extension of deputation tenure of officers, holding of DPC, departmental
examination, Selection of Legal Consultants etc.
• Framing and amendment of Recruitment Rules.
• CAT Cases / High Court / Supreme Court matters of Establishment.
02. Admin and • All administration and accounts related work including office budget and
Accounts Section allocation of funds to field formations.
• Management of office expenses viz. Salary, GPF, pension, gratuity, leave
records & encashment, SSF, etc.
• Liaisoning with DoR for pending proposals.
• Procurement/Lease/Contract of vehicles, office equipment etc.
• Processing of professional & legal bills and granting financial approvals.
• Arranging physical infrastructure (office & residence).
• CCTV Camera installation and security of HQ premises etc.
• Other miscellaneous work
137Annual Report 2025-2026
Sr. No. Section Work Assigned
03. Vigilance Section • All vigilance related work including disciplinary proceedings of officers and
officials.
• Immovable Property Returns (IPRs) and APARs of all the officials of the
Directorate.
• Vigilance Clearance, Vigilance Complaints, preparation of Agreed List and ODI
List, etc. are being handled by this section.
• Handling intimations under rule 18 of CCS Conduct Rules.
• Processing applications for foreign visits & higher studies.
04. Coordination • Coordination Section has 03 functioning- Coordination, PMLA Section and RTI.
Section
• Coordinating with various sections of HQ and field formations for collection and
compilation of various reports.
• Coordination with Department of Revenue (Monthly report on Non-Tax Revenue
& Significant Event, Monthly Progress Report (MPR), sending comments on
Draft Cabinet Notes, Draft Bills & FDI proposals etc.) and other Ministries (e.g.
antecedent verification) / Departments for sending various reports.
• Analysis of Monthly DO report received from Regional SDEs/SDE(HIU).
• Processing of GEP applications, verification of entities referred by RBI for Small
Finance Bank and Payment Gateway Bank license etc.
• Monitoring of recording of ECIR in coordination with regions/zones and predicate
agencies; Compilation and dissemination of ML-I and ML-II reports; holding of
RAMC meetings etc.
• Parliament Questions and Assurances.
• Processing of RTI applications and appeals.
• Compilation and preparation of Annual Report of Directorate for submission to
the Ministry of Finance.
• Assigning Action Plan Targets at the beginning of financial year.
• Organizing Quarterly Conference of Zonal Officers (QCZO) and other Review
Meetings.
• Issuance of Technical Circulars/Guidelines.
05. Intelligence • Processing of all the intelligence inputs received or gathered from various
Section organizations such as FIU, CBI, RAW, DRI, IB, CEIB, CVC, NTRO, MAC, etc.
as well as from informal sources such as complaints from private individuals,
open sources etc.
• Processing of all complaints received from various LEAs and private persons
related to PMLA/FEMA etc. and dealing with COFEPOSA matters,
• Dealing with FIU; Processing of the STRs via FINEX 2.0 portal and collecting
intelligence through ESW (EGMONT Secure Web) and disseminate it to the
concerned jurisdictions (Regions/Zones) and obtaining feedback on the same.
• Processing of EGMONT requests and PAN based enquiries received from field
formations and forwarding it to the FIU-IND.
• Obtaining Customer Application Form (CAF) and Call Data Record (CDR),
Legal Interception as per MHA guidelines.
• Maintaining database and follow up on action taken by the field formations in all
ICIJ leaks cases- Panama, Paradise, Pandora, Mauritius, HSBC, etc. along with
cases of GDR, ECB, Terror Funding, LWE and other such issues; NATGRID.
• all matters relating to information technology, electronics, internet/ intranet,
coordination with NIC, installation and management of IT related software/
hardware, running and managing Cyber Lab, etc.
138Department of Revenue III
Sr. No. Section Work Assigned
06. Investigation • Deals with matters relating to ongoing investigations under the provisions of
Section PMLA, 2002 and FEMA, 1999.
• Investigation Section calls for Action Taken Report (ATR), Status Report and
Action Plan for examination and analysis.
• Ensuring compliance of Technical Circular No. 07/2024 dated 19.12.2024 which
requires the field formations to submit time bound reports at various stages of
investigations.
• Receipt and compilation of Monthly and Quarterly Search and Arrest reports.
• Exchange of information with various LEAs such as Income Tax Department,
CBI, SFIO etc.
• Attending to the work related to SIT on Black Money.
07. Adjudication • This Section has been entrusted with the Adjudication of all pending SCNs
Section under FERA for adjudication
• Adjudication of SCNs up to the level of ADE/JD under FEMA has also been
assigned to this Section
• Monitoring of the pendency of adjudication under FEMA, 1999 at the level of
various Adjudicating Authorities.
• Monitoring of the recovery of penalty imposed under FERA and FEMA.
08. Legal Section • The Legal Section, HQ handles all the legal work related to the Directorate.
• Review of judgments/orders of Hon’ble Supreme Court, High Courts and
Subordinate Courts/Tribunal.
• Special Leave Petition / Appeal /Writ Petition matters of Supreme Court; filing
of appeals before Appellate Tribunal for Foreign Exchange (ATFE).
• Nomination of Counsel before Adjudicating Authority (PMLA), ATFE and
AT(PMLA).
• Legal opinion in certain cases including vetting of PAOs, PCs, affidavits, appeals,
LRs, extradition requests etc.
• Dealing with references from Ministries on legal issues/proposed Law relating
to or having impact on FEMA, PMLA and FEOA.
• Tracking of work of Prosecutors/Advocates in Courts, empanelment of
Advocates, appearance before the Adjudicating Authority, Appellate Tribunal
and Courts on behalf of the Directorate.
• Monitoring of Court cases and legal issues at all India level etc.
139Annual Report 2025-2026
Sr. No. Section Work Assigned
09 Overseas • OIU’s work profile includes handling all forms of International meetings/trainings/
Investigation Unit workshops and submission of comments in the matters related to G20-ACWG,
(OIU) Section UNODC, ARIN-AP, World Bank, StAR Initiative, FATF, Asset Recovery etc.
• Drafting of Technical Circulars on issues like PMLA/FEMA LR and MLA Request,
LoC etc.
• Drafting of MoU with foreign agencies for informal cooperation.
• Providing statistics / comments for FATF and other International Organizations
related to money laundering and drug trafficking.
• Attending meetings organized by MEA on important cases involving foreign
disputes / Arbitration like Devas Multimedia and sharing necessary inputs to
other agencies like DEA, MEA, DOS, CBDT, CBIC, DOT, etc.
10. Capacity Building • The Training section of the Directorate which was earlier part of the Systems &
Unit Training Vertical was re-designated as the Capacity Building Unit in the month
of June 2025.
• The primary function of this Unit is to hone the professional skills of the officers/
officials of this Directorate by imparting training to them, thereby enhancing their
output.
• This unit conducts trainings of officers of the Directorate at various levels.
• Nomination of the officers of the Directorate for training in India.
11. Rajbhasha (Hindi) • Coordinates with all field formations for the quarterly progress report of
Section Rajbhasha and compile the same for onward submission to MHA.
• Monitors and sensitizes the field formations to comply with the existing
instructions on all the parameters to promote use of Rajbhasha in official work.
• Carrying out inspection of field formations on annual basis.
• Organizes regular training for improving the skills of officers.
• Organizes competition at various levels for rewarding and encouraging the staff
of ED to work in Rajbhasha.
12. Headquarters • The HIUs were created at Headquarters of the Directorate in the year 2012 for
Investigation investigating sensitive and important cases. There are 03 Functional units in
Units (HIU) each HIU.
13. Special Task • The Special Task Force (STF) was constituted in March, 2019 at HQ specifically
Force (STF) to carry out investigation in cases related to Drug Trafficking, Terrorist Financing
and the Unlawful Activities (Prevention) Act (UAPA), 1967, etc. There are 3
Functional units in STF.
140Department of Revenue III
4.2.3.3 Organizational Structure at Regional, Zonal and Sub-zonal Offices:
The present organizational structure of all the Regional, Zonal and sub-zonal offices of the Directorate is depicted
hereunder:
To meet the organization’s administrative needs of Enforcement. The offices functioning under the 05
for collecting information and investigating money- Regional Offices are given as below:
laundering offences and offences related to the provisions (a) Western Region: The Region is having its office at
Mumbai. The Region comprises of 06 Zones, namely,
of FEMA, five Regional offices have been setup. However,
Mumbai-I, Mumbai-II, Ahmedabad, Bhopal, Panaji
it’s important to note that ED officers have jurisdiction
(Goa) & Raipur and 03 Sub-Zones, namely, Nagpur
across the entire country for gathering information and
under Mumbai-II, Surat under Ahmedabad and Indore
conducting investigations related to offence of ML/ under Bhopal.
FEMA. Additionally, the Headquarters Investigation Units
(b) Northern Region: The Region is having its office
(HIUs) and Special Task Force (STF) can investigate situated at Chandigarh. The Region comprises of 06
any cases assigned to them by the Director, Directorate Zones, namely Chandigarh-I, Chandigarh-II, Gurgaon
141Annual Report 2025-2026
(Gurugram), Jalandhar, Jaipur and Srinagar and 03 4.2.3.6 The offices of the Directorate of Enforcement
Sub-Zones, namely, Shimla under Chandigarh-I, located all over India ensures that the money-laundering
Dehradun under Chandigarh-II and Jammu under offences are investigated in an effective manner and it
Srinagar. also acts as deterrence for the potential offenders.
(c) Southern Region: The Region is having its office at 4.2.3.7 Considering the strategic importance of
Chennai. It comprises of 05 Zones, namely Chennai-I, North-East Region, Directorate of Enforcement has
Chennai-II, Bengaluru, Kochi and Hyderabad and 04 strengthened its presence and intensified anti money-
Sub-Zones, namely, Madurai under Chennai Zone-II, laundering activities including cross border financial
Mangalore under Bengaluru, Kozhikode under Kochi crimes, international hawala, terror financing and drugs
and Vishakhapatnam under Hyderabad. trafficking. The Directorate has set up offices in all the
seven states under North-Eastern Region.
(d) Central Region: The office of the Central Region is
located at Delhi. It comprises of 05 Zones namely
4.2.4 Offence of Money Laundering
Delhi-I, Delhi-II, Lucknow, Patna and Ranchi and 01
Sub-Zone viz. Allahabad (Prayagraj) Sub-Zone falling 4.2.4.1 Section 3 of the PMLA criminalizes the offence
of money-laundering related to a wide range of criminal
under Lucknow Zone.
offences listed in the schedule to the PMLA. These
(e) Eastern Region: The Region is having its Office at
offences include participation in an organized criminal
Kolkata. It comprises of 05 Zones, namely, Kolkata-I,
group and racketeering, terrorism and terrorist financing,
Kolkata-II, Bhubaneshwar, Guwahati-I & Guwahati-II
illicit trafficking in narcotics drugs and psychotropic
and 07 Sub Zones namely Gangtok under Kolkata-II
substances, illegal human trafficking, illicit arms
and other six sub-zones i.e. Agartala, Aizawl, Imphal,
trafficking, illicit trafficking in stolen goods, corruption
Itanagar, Dimapur and Shillong, all under Guwahati- and bribery, fraud, counterfeiting and piracy of products,
II. environmental crimes, kidnapping, robbery, smuggling,
extortion, forgery, piracy and insider trading and market
4.2.3.4 The Regional Special Directors are assigned
manipulation. These offences listed in the schedule are
with the role of supervising and monitoring the overall
called “predicate offences” and section 3 of the PMLA
working and functioning of the Zonal offices of the
states that whoever is directly or indirectly involved or
Directorate located at various cities within the Region
associated with any process or activity connected with
and other administrative/vigilance matters. Similarly,
“proceeds of crime” related to these criminal activity will
the Zonal Additional/Joint Directors are responsible for
be guilty of the offence of money-laundering and is liable
the overall supervision and functioning of the FUs under
for punishment with rigorous imprisonment of three to ten
their jurisdiction including the Sub-zones. The Sub-zonal
years under section 4 of the PMLA.
offices are headed by Deputy Directors and they report
to the Zonal Additional/Joint Directors. 4.2.4.2 It is not necessary that for committing an offence
of money-laundering, the person concerned should project
4.2.3.5 In 2021, the concept of functional unit was
or claim the proceeds of crime as untainted property, it is
introduced to ensure rational distribution of work. Each
such unit is self-contained unit headed by an officer enough if he is directly or indirectly involved in any process
of the rank of Deputy Director with clearly demarcated of activity connected with the proceeds of crime including
resources and responsibilities including investigation, its concealment, possession, acquisition or use. Thus,
administration, intelligence etc. The functional units are the definition of the offence of money-laundering is in full
headed by a Deputy Director assisted on an average compliance with Article 3(1)(b) and 3(1)(c) of the Vienna
by 02 Assistant Directors, 02 Enforcement officers, Convention and Article 6(1) of the Palermo Convention.
03 Assistant Enforcement Officers and 2 sepoys. The
4.2.5 Attachment and Confiscation
constitution of functional unit is represented as under:
4.2.5.1 Section 5 of the PMLA provides that where the
S. Designation No. of
Director, Directorate of Enforcement, or any other officer
No. Officers
not below the rank of Deputy Director authorized by
1. Deputy Director (DD) 1 him, has reason to believe (the reason for such belief
to be recorded in writing), on the basis of material in his
2. Assistant Director (AD) 2
possession, that (a) any person is in possession of any
3. Enforcement Officer (EO) 2 proceeds of crime and (b) such proceeds of crime are
4. Assistant Enforcement 3 likely to be concealed, transferred or dealt with in any
Officer (AEO) manner which may result in frustrating any proceedings
relating to confiscation of such proceeds of crime, he may,
5. Sepoy 2
by order in writing, provisionally attach such property for a
TOTAL 10 period not exceeding 180 days from the date of the order.
142Department of Revenue III
4.2.5.2 Section 17 of the PMLA gives power to Director, 4.2.6 Investigation, Prosecution and Conviction
Directorate of Enforcement, or any other officer authorized
4.2.6.1 Under the PMLA, the officers of the Directorate
by him not below the rank of Deputy Director, to carry out
of Enforcement have wide range of powers to investigate
search and seizure operation and seize any record or
the offence of money-laundering and for attachment/
property found during the search. If it is not practicable
freezing and confiscating the proceeds of crime. These
to seize such record or property, the officer concerned
include powers of summons, survey, search and seizure,
may make an order to freeze the property prohibiting its
search of persons, arrest etc. The officers of various other
transfer. Section 18 of the PMLA gives powers to the departments such as officers of CBIC, CBDT, police,
officers of Directorate of Enforcement to search a person RBI, SEBI, IRDAI etc. are empowered and required to
and seize any property. In the case of seizure/freezing assist the officers of the Directorate of Enforcement in
under sections 17 and 18 of the PMLA, the authorities the enforcement of PMLA.
concerned are required to make an application to the
4.2.6.2 After registering the complaint, at the first
Adjudicating Authority for retention of such record or
instance, the officers of Directorate of Enforcement
property or for continuing the order of freezing.
identify, quantify and trace the “proceeds of crime”. They
4.2.5.3 The Adjudicating Authority is a quasi-judicial body also collect the evidence relating to the commencement of
comprising of a Chairperson and two other members. On the offence, which may comprise of information received
receipt of a complaint under sections 5 or 17 or 18 of the from predicate agency on parallel financial investigation,
PMLA, the Adjudicating Authority decides after hearing all examination of accused, other persons associated with
the offence and third parties, reduction of their statement
parties that the property is involved in money-laundering
in writing, carrying out survey and search etc. They
or not. The attachment/freezing order continue during the
provisionally attach the properties identified as “proceeds
investigation for a period not exceeding 365 days or during
of crime” and file a complaint before the Adjudicating
the pendency of the proceeding related to any offence
Authority. In appropriate cases, joint investigation in
under the PMLA before a Court, including foreign Courts,
collaboration with the predicate agency is also conducted.
when confirmed by the Adjudicating Authority. Thus, after
the order of the adjudicating authority, the attachment/ 4.2.6.3 After carrying out the necessary investigation,
freezing continues during the investigation and will also the Directorate of Enforcement also file a Prosecution
continue after filing of a prosecution complaint till the Complaint before the Special Courts constituted under
matter is finally decided by the Court. section 43 of the PMLA, who takes cognizance of the
offence of money-laundering committed under section 3
4.2.5.4 The order of confiscation is passed by the Special of the PMLA. After trial in the Special Court, the accused
Court under section 8(5) of the PMLA after conclusion of is convicted and is punished in accordance with section
the trial for the offence of money-laundering and all rights 4 of the PMLA.
and title in the property vest absolutely in the Central
4.2.7 International Cooperation
Government free from all encumbrances. However,
after the confirmation of the attachment/freezing by 4.2.7.1 When proceeds of crime related to offence
the Adjudicating Authority, a quasi-judicial body, it is committed in India, is transferred in foreign jurisdictions,
provided in section 8(4) of the PMLA that the officers or when accused person(s) has escaped from India, after
of the Directorate of Enforcement will take possession committing the offence of money-laundering or part of
of the property attached and thus it is ensured that the it or the offence itself has been committed outside the
offenders do not enjoy the “proceeds of crime”. Thus, after country or the witnesses and other material evidence
confirmation of attachment/freezing by the Adjudicating are available in another country, it may be necessary to
Authority, it no longer remains only a “provisional gather information or conduct formal investigation abroad.
measure” as the property is not available to the criminals.
4.2.7.2 Generally, the basis for seeking Mutual Legal
Assistance from a Contracting State is the Mutual Legal
4.2.5.5 Any person aggrieved with the order of
Assistance Treaty in Criminal Matters (MLAT). As of now,
Adjudicating Authority, including the officers of the
India has signed MLAT with 45 countries. Mutual Legal
Directorate of Enforcement, can file an appeal within
Assistance can also be sought on the basis Multilateral
45 days before the Appellate Tribunal, another quasi-
Treaties, such as, United Nation Convention against
judicial authority under section 26 of the PMLA and the
Corruption (UNCAC) or United Nation Convention on
Appellate Tribunal after giving the parties to the appeal
Transnational Organized Crime (UNCTOC). Where
an opportunity of being heard may pass such orders
there is no such treaty the request can be made on the
thereon as it thinks fit, confirming, modifying or setting
basis of mutual assurance of reciprocity. These requests
aside the order appealed against. Any person aggrieved are normally made through the Special Courts under
with the order of Appellate Tribunal may file an appeal to section 57 of the PMLA although under the MLAT or the
the High Court within 60 days on any question of law or multilateral treaties, the requests need not be routed
fact arising out of such order. through the Courts.
143Annual Report 2025-2026
4.2.7.3 If an order of attachment/freezing/confiscation offence of money-laundering by carrying out necessary
has been issued by the officers of the Directorate of inquiries if a request is received from a Court or authority
Enforcement and the said property is suspected to be in the said foreign jurisdiction. It may also attach, seize,
in a foreign jurisdiction, the Special Court may issue a freeze, or confiscate the property in India derived or
letter of request to a court or an authority in the foreign
obtained, directly or indirectly, by any person from the
jurisdiction for execution of such order.
commission of an offence under the corresponding law
4.2.7.4 The Directorate of Enforcement also provides committed in the foreign jurisdiction if a request is received
assistance to foreign jurisdictions and investigates the from a Court or authority in the said foreign jurisdiction.
Case study
ED received a Mutual Legal Assistance request from the Detective Inspector, Manager Assets Recovery/
money Laundering, Financial Crime Group, New Zealand Police National Head Quarters. The communication
has information that the High Court at New Zealand has issued a global restraining order against Mrs. A
(nee B), Mr. C and others. On the basis of this the New Zealand Authorities have requested for appropriate
order for seizure of funds which were transferred by the Accused namely Mrs. A and Mr. C to seven Bank
accounts in India.
The offences committed in New Zealand were under Crime Act, 1961 of New Zealand, Secret commissions
Act, 1910 of New Zealand, and CPRA of New Zealand. The offences committed in New Zealand and the
sections imposed in the case are equivalent to section 120B and 420 of the IPC and section 13 of the
Prevention of Corruption Act, 1988 which are Scheduled Offences under Part A of the scheduled appended
to the Prevention of Money Laundering Act (PMLA), 2002, and proceeds were generated from the crime
committed. Since prima facie there appeared to be an offence of money laundering under section 3 and
punishable under section 4 of PMLA act, 2002.
Acting on the request, search operations under section 17 of PMLA, 2002 were carried out on bank accounts
at three different banks which eventually led to issuance of freezing orders u/s 17(1)(A) in respect of the
accounts. Ld. Adjudicating Authority vide its order dated 23.10.2023 has confirmed the freezing order of the
said accounts. In the meantime, New Zealand authorities found some more proceeds of crime in their country
which they attached and requested for release of equivalent amount in India. Accordingly, the banks were
directed for releasing of the requested bank accounts for normal banking operations. The investigations in
the case are underway in New Zealand and necessary action as per provisions of PMLA i.e. repatriation or
release of proceeds of crime frozen to New Zealand or to persons concerned shall be taken accordingly.
4.2.8 Performance of Directorate of Enforcement
Year No. of ECIRs recorded
in the area of PMLA
2017-18 163
4.2.8.1 During the period from 01.04.2025 to 30.11.2025, 2018-19 152
the Directorate has taken up investigation under the
2019-20 557
provisions of PMLA in 556 cases. As on 30.11.2025, 8327
total number of ECIR has been recorded. The Year-wise 2020-21 996
break-up of the same is as under: 2021-22 1116
2022-23 953
Year No. of ECIRs recorded
01.07.2005 to 31.03.2014 1883 (209 avg. per year) 2023-24 698
2014-15 181 2024-25 775
2015-16 110 2025-26 (up to 30.11.2025) 556
2016-17 187 Total 8327
144Department of Revenue III
4.2.8.2 During the period from 01.04.2025 to 30.11.2025, Year No. of PCs filed
the Directorate has attached proceeds of crime with
01.07.2005 to 31.03.2014 84 (09 avg. per year)
the aggregate value of ₹ 31,275.88 crore (approx.) by
2014-15 64
issuance of 261 Provisional Attachment Orders taking
total attachment of the Proceeds of Crime to ₹1,85,869.86 2015-16 57
crore (approx.) in 3050 Provisional Attachment Orders as 2016-17 99
on 30.11.2025. The Adjudicating Authority has confirmed 2017-18 92
attachment of properties worth ₹16,531.75 crore (approx.)
2018-19 234
during the period from 01.04.2025 to 30.11.2025. Thus,
2019-20 55
as on 30.11.2025, total amount of confirmed attached
2020-21 140
properties is ₹1,23,261.38 crore(approx.).
2021-22 128
4.2.8.3 During the period from 01.04.2025 to 30.11.2025, 2022-23 172
188 Prosecution Complaints have been filed under the
2023-24 281
provisions of the PMLA. Total number of Prosecution
2024-25 333
Complaints filed under PMLA has aggregated to 1927
2025-26 (up to 30.09.2025) 188
as on 30.11.2025. The Year-wise break-up of the same
is as under: Total 1927
145Annual Report 2025-2026
4.2.8.4 During the period from 01.04.2025 to 30.11.2025, 4.2.9.5 In terror financing cases, ED has a very
the Special Court, PMLA has ordered for confiscation important role both in tracing the proceeds of crime and
of properties amounting to ₹ 4.26 crore (approx.) and its laundering by the terrorists. ED not only attaches the
imposed a cumulative fine of ₹1.43 crore (approx.) on Proceeds of Crime and takes possession of the same
the accused. As on date, the total confiscation amount but also files Prosecution Complaints against the terror
under PMLA is ₹ 15,735.74 crore (approx.). accused under the PMLA.
4.2.8.5 During the period from 01.04.2025 to 30.11.2025, 4.2.9.6 ED has taken strict action against terrorist
the Directorate has secured 06 conviction orders in activities by way of registering several cases related
which 16 accused have been convicted by the Special to terror funding against anti-national elements and
Court PMLA. Further, on 06.12.2025 the Directorate has intensified money laundering investigation to trace and
secured one more conviction order. Thus, as on date, this deter the terror funding leading to unearthing of Proceeds
Directorate has secured 54 conviction orders wherein 122 of Crime (PoC) to the tune of more than ₹ 1506.42 Crore
accused have been convicted. (approx.). Out of the identified PoC, assets amounting
to ₹ 1239.07 crore (approx.) have been attached by
4.2.9 Special Focus on Terror Financing
this Directorate. The attached properties include both
4.2.9.1 The Directorate of Enforcement gives special movable and immovable properties of ₹ 1036.07 crore
focus on investigation of terror financing cases. The (approx.) in India and ₹ 203 crore (approx.) in abroad
terrorism cases under UAPA are investigated and (as on 30.11.2025) In one of the case, the accused has
prosecuted by the National Investigation Agency (NIA) been declared as Fugitive Economic Offenders and the
under the NIA Act, 2008. However, the State Police properties worth ₹97.99 Crore have been confiscated
Authorities also investigate the terrorism cases under under the provisions of Fugitive Economic Offenders
UAPA and also under various provisions of the IPC. Act, 2018 (FEOA). A total of 59 prosecution complaints
(Charge-sheets) including 21 Supplementary PCs have
4.2.9.2 The focus of investigation by the Police Authorities
been filed under the Prevention of Money Laundering Act,
are normally on criminal investigation such as from where
2002 and 09 accused have been convicted in 04 cases
the arms have been received, how the conspiracy has
by PMLA Special Court. Further, 14 accused have been
been hatched, who was the mastermind, what was the
declared Proclaimed Offender and 03 accused have
plot, what was the motive, who were involved etc.
been declared Fugitive Economic Offender by the Special
4.2.9.3 The Directorate of Enforcement, after a reference Courts.
is made to it by the police authorities, carries out the
4.2.9.7 Action against insurgent groups in the North-East
financial investigation, including from where the funds
Region: In order to put a curb on the funding of insurgency
have been received, how the funds were layered into the
activities in the North-East Region, the Directorate has
banking channels, and if not through banking channels,
taken up several investigations under the provisions of
whether it was from Hawala or Barter Trade or Trade
PMLA against some of the prominent extremist groups
Based Money Laundering. It also investigates, how and
such as NSCN (IM), NSCN (K), Dima Halam Daogah
to whom the funds were distributed and if the funds have
(Jewel Garolsa Faction).
been invested in some property, whether the property
still exist or is liquidated. Once the property is identified,
4.2.9.8 Action against Naxal funding in Bihar, Jharkhand
the Directorate of Enforcement provisionally attaches the
and Chhattisgarh: Strict actions under PMLA have
property and then takes possession after confirmation by
been taken against LWEs active in Bihar, Jharkhand &
the Adjudicating Authority. If the property is liquidated,
Chhattisgarh leading to attachment of properties and
equivalent amount of property, whether in India or abroad,
filing of Prosecution Complaints in several cases. In
is attached.
these cases, PoC amounting to ₹24.88 crore (approx.)
4.2.9.4 During investigation of cases related to terror has been identified in Naxal/LWE related cases out of
financing by ED, it has been found that the terrorists use which, PoC amounting to ₹ 10.71 crore stands attached
a number of methods for funding including the following: in 16 different PAOs. Further, 16 Prosecution Complaints
including 01 Supp. PC have been filed in Naxal/LWE
• Banking channels by receipt of foreign remittances
related cases as on 30.11.2025.
• Authorized money transfer services such as Western
4.2.10 Proactive Steps taken by ED in other key areas
Union
of money laundering are as follows:
• Hawala Payments
(i) Cyber Fraud: The advent of technology and
• Donations to NPOs/Social Welfare Organizations
growing access of internet has led to innovations and
• Barter Trade
economic growth but at the same time its vulnerability
• Fake Indian Currency Notes has also been explored by criminals to perpetrate crime.
146Department of Revenue III
Thus, in whole world including India there has been sharp and poor people. The Directorate has taken vigilant steps
increase in cyber frauds. The virtual currency has been in tackling the threat of money-laundering through Cyber
widely used by criminals to transfer proceeds of crime Crime and Crypto assets related cases by tracing and
to foreign jurisdictions without coming under the radar attaching/seizing/freezing proceeds of crime. Case study
of government agencies. The cyber fraudsters have not on one such important case taken for investigation by the
only targeted the resourceful people but also the common ED is provided in the box below.
Case Study
M/s. ABC India Pvt. Ltd. orchestrated a complex money laundering scheme through its trading platform,
which was aggressively promoted on social media using referral incentives. The company collected
funds from Indian users via UPI and bank transfers, channeling them through shell companies falsely
registered as e-commerce entities. These entities accessed payment gateways and displayed multiple
Indian bank accounts on the ABC app to simulate legitimate forex trading. The funds were layered
through mule accounts, routed via payment gateways, and partially invested in SEBI-registered AIFs to
lend legitimacy. The entire operation was controlled by Mr. A, who employed Indian nationals abroad to
facilitate investments and used fabricated invoices to remit over $4.2 million overseas. A portion of the
laundered funds was reinvested into M/s. ABC India via Foreign Direct Investment (FDI), further masked
by high-profile brand promotions during IPL and celebrity endorsements.
Search operations were conducted in the matter resulting in seizure of digital evidence and freezing of
assets worth ₹ 84 Crore. Provisional Attachment Orders (PAOs) were issued for attachment of assets
in India to the tune of ₹35.07 Crore in and 19 immovable properties valued at ₹ 41.73 Crore located in
Spain and owned by Mr. A and his entities.
Further in 2025, properties to the tune of ₹ 131.45 Crore belonging to Mr. A and his entities were identified
abroad and attached. Vide another PAO dated 19.09.2025, movable properties in the form of various
cryptocurrencies worth approximately ₹2,385 Crore lying outside India have also been attached.
A prosecution complaint has been filed against M/s. ABC and others on 01.10.2024 and a supplementary
PC was filed on 20.12.2024. The Hon’ble Special Court (PMLA) has taken the cognizance of the case
and issued proceedings against accused persons
(ii) Human Trafficking: Human trafficking and (iii) Corruption: Corruption is one of the most chronic
migrant smuggling is one of the most significant human problems faced by India which endangers India’s socio-
right issue in India. The victims are usually persons economic, political and development aspirations. ED
who are misinformed and misled by illegally operating has been taking several money-laundering cases with
smuggling agents or girls put in forced sex rackets or predicate offences of corruption and intends to mitigate
humans trafficked to foreign countries in lure of greener the same with effective money-laundering investigation by
pastures, etc. ED has been proactive in taking action preventing the money-launderers from enjoying proceeds
against such organized criminal networks operating in of crime. Case study on one such important case taken
India and abroad. for investigation by the ED is provided in the box below.
Case Study
This Directorate initiated investigation in a corruption case wherein it is alleged that Mr. A, the Chief Minister
of a State along with other persons were involved in land grabbing activities. As per the FIR, it is alleged
that CM used his political influence to get compensation for 14 sites in the name of his wife Smt. B in lieu
of 3 acres 16 guntas of land acquired by a XYZ Urban Development Authority (XYZ) and thus caused loss
to XYZ and State Government. During the course of investigation, searches were conducted at various
premises of Mr. A and associates. During the course of search, it was revealed that a large number of
sites, other than the 14 allotted to Smt. B, have been “illegally” allotted by the XYZ as compensation to
real estate businessmen, who in turn have sold these sites at “huge” profit and generated huge amount
of “unaccounted” cash. During the PMLA investigation, assets to the tune of ₹ 140.53 Crore (having
market value of ₹ 450 Crore) were attached by ED. Information on large scale scam in illegal allotment
of sites was shared u/s 66 (2) of PMLA, 2002 with Lokayuktha police on 30.11.2024 and 24.01.2025.
Investigation revealed that huge proceeds of crime derived & obtained in the form of illegally allotted XYZ.
Investigation has also revealed that undue gratification/bribe was obtained by the then officers/officials
of XYZ. Mr. C, the then Commissioner of XYZ had acquired proceeds of crime in the form of immovable
properties & cash/money and bank transfers in lieu of illegal allotment of XYZ sites in the name of his
relatives/associates. Mr. C was arrested on 16.09.2025.
147Annual Report 2025-2026
4.2.11 Performance of Directorate of Enforcement Year-wise break-up of the FEMA investigation initiated
in the area of FEMA are as under:
During the period from 01.04.2025 to 30.11.2025, the
Year No. of FEMA Case
Directorate has initiated investigation in total number of
01.04.2000 to 31.03.2014 8586 (613 avg. per year)
2242 cases under the provisions of Foreign Exchange
2014-15 915
Management Act, 1999. A total number of 119 Show
Cause Notice have been issued and 49 cases have 2015-16 1516
been adjudicated during the period. Further, penalty of ₹ 2016-17 1993
66.84 crore (approx.) has also been imposed and penalty
2017-18 3627
amounting to ₹ 70 lakhs (approx.) has been realized
2018-19 2659
during the period. Further, a dedicated Adjudication
2019-20 3360
Section has been created at headquarters office to
address the backlog of Show Cause Notices pending for 2020-21 2747
Adjudication under FEMA especially at senior level along 2021-22 5313
with residual work of FERA. Adjudication of SCNs up to
2022-23 4173
the level of ADE/JD under FEMA has also been assigned
2023-24 2541
to this Section. Further, monitoring of the pendency of
2024-25 2631
adjudication under FEMA, 1999 at the level of various
Adjudicating Authorities. Monitoring of the recovery of 2025-26 (up to 30.11.2025) 2242
penalty imposed under FERA and FEMA and of The Total 42303
4.2.12 Performance of Directorate of Enforcement of other declared FEOs is underway in the Competent
in the area of FEOA Courts.
During the period from 01.04.2025 to 30.11.2025, Moreover, extradition proceedings in case of high
this Directorate has filed applications under FEOA profile fugitive economic offenders are also being followed
against 05 persons in the Competent Court. Also, one by the Directorate regularly.
person namely Mr. Rashid Naseem has been declared
4.2.13 Performance of Directorate of Enforcement
as FEO by the Competent Court during the said period.
in the area of Extradition and Red Notice
As on 30.11.2025, ED has filed applications under
FEOA against 31 persons, out of which 15 persons have During the period from 01.04.2025 to 30.11.2025, the
been declared as Fugitive Economic Offenders by the Directorate of Enforcement has made requests for
Competent Courts. Hon’ble Special Court has ordered publishing of Red Notice in respect of 12 persons and Blue
for confiscation of properties to the tune of Rs. 930.758 Notice in respect of 10 persons. Also, 03 Red Notices,
crore belonging to FEOs as on 30.11.2025. Further, 03 Blue Notice, 04 Silver Notice & 01 Purple Notice have
on 03.12.2025 in one case, Hon’ble Special Court has been published during this period. Till date, the Directorate
ordered for confiscation of properties worth Rs. 127.98 of Enforcement has made requests for publishing of Red
Crore. Thus, as on date, properties amounting to Rs. Notice in respect of 61 persons, out of which Red Notice
1058.738 Crore have been confiscate to the Government has been published in respect of 41 persons. Further, one
of India. Hearing for confiscation of properties in respect Extradition request has been sent during this period. A
148Department of Revenue III
total of 45 Extradition requests have been sent to various The new website complies with GIGW 3.0, WCAG
countries in respect of 37 individuals. 2.1, and STQC requirements and includes enhanced
security features such as a Web Application Firewall,
ED is working tirelessly to extradite the fugitive
CERT-IN–aligned safeguards, automated backups, and
economic offenders and other accused who have
improved logging. User-oriented upgrades include intuitive
evaded the process of law in India by staying outside the
navigation, streamlined and updated content (Important
jurisdiction of Indian Courts. The efforts of the Directorate
Judgments, ED in News, What’s New), bilingual support,
have resulted in successful representation before
dynamic national-event themes, and a fully responsive
Competent Court abroad in extradition of various fugitive
design. The website is live on ED’s intranet, with public
economic offenders and other accused. In this regard,
rollout planned upon allocation of the required NIC cloud
it is pertinent to mention that UK Court has approved
infrastructure.
extradition of few high profile accused persons to India
following effective representation of the Directorate in (ii) Hiring of Skilled Technical Manpower
coordination with other LEAs and Indian mission abroad.
To augment its capabilities and support ED’s
4.2.14. Restitution of properties to Victims of Money- digital initiatives, ED has advertised for 07 System
laundering/Legitimate Claimants Analysts and 36 Scientific Technical Assistants
positions for all zonal and regional offices on contractual
ED is not only actively pursuing the economic offenders basis. These roles require specialized qualifications in
to unravel the money laundering but at the same time IT, Computer Science, and Electronics, with experience
is also making efforts for the restitution of assets to in software development and database management.
the banks and others who have been defrauded by the The engagement of this technical workforce is critical for
offenders. The ED has successfully restored properties strengthening cybersecurity, maintaining network and
valued at approximately ₹46,061.15 Crore to victims or server infrastructure, supporting in-house applications,
legitimate claimants. The year-wise details of restitution/ managing databases, and ensuring uninterrupted
restoration done by ED are given as below: functioning of email, NIC-VC and other digital services.
Presently, 2 SAs and 14 STAs are posted and the
Value of assets selection of remaining personnel is under process.
FY restituted
(iii) Other Notable Digital Initiatives
(₹ in Crore)
(a) E-Office Implementation - E-Office is fully
01.07.2005 to 31.03.2019 0
operational in ED for administrative work,
2019-20 1,613.30
eliminating physical files and improving document
2020-21 0 accessibility, workflow efficiency, and processing
timelines. This digital shift has also enhanced
2021-22 13,517.18
transparency in file movement and strengthened
2022-23 0
the Directorate’s move towards a paperless and
2023-24 71.16 streamlined administrative environment.
2024-25 15,263.03 (b) e-HRMS 2.0 On-boarding - All ED employees
2025-26 (up to 30.11.2025) 15,596.48 have been onboarded onto DoPT’s e-HRMS 2.0
platform, ensuring centralized and streamlined
Total 46,061.15
digital management of service records. This has
4.2.15. Initiatives for E-Governance enabled employees to conveniently access their
service-related information while supporting the
The key initiatives undertaken by ED in the
Directorate in maintaining accurate, paperless,
domain of e-Governance and digital transformation during
and easily retrievable HR data.
FY 2025-26 are summarised below:
(c) Enforcement Directorate Employee
(i) Development of the New Revamped Official
Website of ED Management System (EDEMS) for AGT
Transfers - The in-house developed EDEMS
The Directorate has undertaken a major initiative
application enables transparent, automated,
to revamp its official website to strengthen ED’s digital
and rule-based processing of Annual General
presence and service delivery. The earlier site, built
Transfers across the Directorate. It has helped
on outdated technology, had limitations in security,
the Establishment Division receive transfer
scalability, accessibility, and user experience. To address
requests digitally rather than through manual
these gaps and meet evolving e-governance standards,
the platform has been completely redesigned using a submissions, ensuring better accuracy, improved
modern architecture with segregated application and record-keeping, and smoother coordination with
database layers. field formations.
149Annual Report 2025-2026
(d) Intelligence Information Management System manual intervention, ensuring a more efficient
(IIMS) - IIMS provides a centralized digital and accountable entry system.
platform for storing, processing, and analysing
(h) SPARROW for APAR Processing - SPARROW
intelligence inputs, with advanced search
is fully functional for online APAR generation
features for faster retrieval and assessment of
and processing, enabling ED cadre employees
complaints. It enables systematic organisation
to access their past APAR records easily and
of information and supports officers in making
securely. For the Directorate, it has facilitated a
timely and informed decisions during intelligence
paperless, transparent, and digitally streamlined
evaluation.
system for maintaining and managing
(e) Enforcement Directorate Offender Tracking performance reports, strengthening record-
System (EDOTS) - EDOTS was initially keeping and institutional efficiency.
developed as a centralized digital repository
(i) Collaboration with NFSU for Cyber Forensics
of persons and entities under investigation
- Through its MoA with NFSU, ED operates its
under PMLA/FEMA. (Annual Report). EDOTS
7 cyber Labs (1 at ED Hqrs, 5 labs at Regional
has been implemented to centralize data of all
offices and 1 in NFSU-Gandhinagar) and
cases under investigations within the Directorate
receives trained technical support for digital
of Enforcement. This centralized system will
evidence handling and forensic operations. This
streamline case tracking, enhance coordination,
Directorate is in the process of procuring new
and ensure that all relevant data is available in real
state-of-the-art advanced forensic tools for its
time for efficient decision making and ensuring
Headquarters and Regional Cyber Labs as part
time bound completion of the investigation
of its ongoing digital upgradation initiatives. Also
process. Monthly Progress Reports (MPRs)
the field Kits (32 in quantity) provided to field
are now generated directly from EDOTS, and
offices across ED are being updated. These
further work is underway to enable automated
enhanced tools will further strengthen ED’s
generation of additional monthly and quarterly
technical capability in cyber forensics, evidence
reports required from field formations.
extraction, and analysis during investigations.
(f) Summons Module (EDOTS Sub-Module)
(j) Implementation of iGoT platform in Directorate
- The digital Summons Module issues QR-
of Enforcement - The Directorate of Enforcement
enabled summons, allowing recipients to
has successfully on-boarded 1311 staff/ officers/
verify authenticity via the ED website, thereby
officials of this Directorate on iGoT platform.
preventing misuse and enhancing transparency.
Further, 908 staff/ officers/ officials were
This initiative has been introduced to curb the
encouraged to complete more than 6 courses
circulation of fake or fraudulent summons and
each out of the 10 courses identified by this
to ensure that individuals can easily distinguish
Directorate on iGoT platform as part of Vigilance
genuine summons issued by the Directorate,
Awareness Week making.
thereby significantly enhancing transparency and
public awareness. ED has recently issued a Press 4.3 Financial Intelligence Unit – India (FIU-IND)
Release conveying guidelines for individuals to
4.3.1 Financial Intelligence Unit, India (FIU-IND) is
verify the authenticity of the summons received the central, national agency responsible for receiving,
by them. The same has also been uploaded on processing, analysing and disseminating information
the official website of this Directorate under the relating to suspicious financial transactions to enforcement
Press Release Section on 08.10.2025. The web agencies and foreign FIUs. FIU- IND is also responsible
link of the same is below: - for coordinating and strengthening efforts of national and
international intelligence, investigation and enforcement
The web link for the said press release-
agencies in pursuing the global efforts against money
https://enforcementdirectorate.gov.in/sites/ laundering and financing of terrorism & proliferation.
default/files/latestnews/Press_release_fake%20
FIU-IND plays a pivotal role in receiving and
summons-08.10.2025%201.pdf
processing intelligence from various Reporting Entities i.e.
(g) Swagatam Portal - The Swagatam Portal the threshold-based reports and suspicious transaction
manages all visitor entries at ED Headquarters reports. Beyond these sources, FIU-IND proactively
through digital verification, strengthening access gathers intelligence related to predicate offences and
control and security. The portal has improved the money laundering from open-source intelligence. This
transparency of visitor management and reduced includes adverse media reports and social media
150Department of Revenue III
platforms, which are often misused to target vulnerable 4.3.3 FINnet 2.0
individuals, drawing them into cybercrime, drug trafficking,
Finnet 2.0 has successfully been implemented in
human trafficking and other illicit activities.
FIU-India. This is one of the pioneer IT system of its kind
4.3.2 Co-operation in Egmont group and enhanced that provides end-to-end solution to all the information
global recognition and Engagement technology needs of FIU-India, including receiving,
analyzing and disseminating information, and provides
4.3.2.1 Best Egmont Case Award (BECA) 2025 a two-way electronic communication system between
the FIU-India and the Reporting Entities (Fingate 2.0) on
FIU-India was honoured with the prestigious Best
one hand, and the FIU-India and the Law Enforcement
Egmont Case Award (BECA) 2025 for an outstanding
Agencies on the other, through a secure network.
case that made a significant contribution to the global
efforts against money laundering and terrorist financing. FINnet 2.0 being a state-of-the-art IT system,
The case was presented by FIU-India during the BECA leverages Artificial Intelligence (AI) and Machine Learning
Workshop held during the Egmont Group Plenary in (ML) technologies. FINnet 2.0 performs the validation
Luxembourg and received wide appreciation from FIUs and enrichment of data submitted by reporting entities,
across the globe. using external data sources to improve accuracy. The
system generates risk scores for individuals, businesses,
4.3.2.2 Leadership Role in Egmont Governance
reports, networks, and cases, aiding in the identification
Ms. M Shanmuga Priya, Joint Director, FIU- and prioritization of high-risk entities or reports for prompt
India was selected as Regional Representative of the dissemination to LEAs. Additionally, FINnet 2.0 applies
Asia-Pacific Regional Group (APRG) which is a key risk analytics to distinguish priority Suspicious Transaction
leadership position having significant role in decisions Reports (STRs) from other low risk STRs.
related to the Regional Group members. This appointment
4.3.4 Strategic Analysis Lab: - With increasingly
secured India’s position in the Egmont Committee, the
complex, ever evolving financial crimes and integration
core governing body of the Egmont Group, significantly
of financial crimes with other organized crimes, it is
enhancing India’s role in global AML/CFT policy-making.
essential to be nimble-footed in comprehending new
Sh Manish Kumar Hairat, Director FIU-India (I/C), serving
money laundering/ terror financing typologies so as to
as Vice-Chair of the Information Exchange Working Group
be able to counter them effectively. It is with this vision
(IEWG), successfully chaired multiple sessions during the
that Strategic Analysis Lab (SAL) was established as part
Plenary. The officer also delivered presentations on IT
of the FINnet2.0 project to continuously research and
Business Strategies – FIU-India Perspectives and Latest analyse data for improvement of intelligence generation.
Technological Enhancements, showcasing FIU-India’s
innovations in intelligence gathering. The setup of Strategic Analysis Lab (SAL) was
completed in the year 2021, and since then, more than
FIU-India’s active participation in working groups 100 studies have been completed. The SAL has its own
such as IEWG, PPWG, TATWG, MSCWG, and APRG specialized human resources having access to latest
was highly appreciated. The unit’s contribution further analytical tools and technologies. It acts as a “Centre of
strengthened its position as a thought leader in the Excellence” and mines data to strengthen intelligence
international financial intelligence community. generation capabilities of FIU-India. Some of the studies
conducted by SAL under key functional areas are as
4.3.2.3 Thematic Workshop Presentations FIU-India
follows:
contributed actively to two key thematic workshops:
• Strategic Analysis of Geographically sensitive
Risk Prioritisation – Demonstrated FIU-India’s country related STRs, CBWTRs and other
tech-driven approach to enhancing AML/CFT risk reports, linked to such PANs found in STRs, was
identification. Operational Public-Private Partnerships conducted. The report has been shared with the
(PPPs) – Presented the FPAC (FIU-IND Partnership for FIU-India officers and is utilized for developing
AML/CFT Collaboration) initiative as a model for strategic Operational Analysis Reports.
cooperation between FIU and Reporting Entities.
• Strategic Analysis of STRs related to Sensitive
region and having Terror financing suspicion. The
4.3.2.4 Signing of Bilateral Memorandum of
set of STRs were shared with various LEAs.
Understanding (MoUs)
• Analysis of CBWTR data for identification of
FIU-India signed Memorandum of Understanding
cases and entities wherein NPOs have received
with FIU-Kuwait and FIU-Timor Leste, aimed at
foreign remittance without FCRA license or prior
strengthening cooperation in the exchange of intelligence
permission. The above study was shared with the
related to money laundering, associated predicate
relevant LEA.
offences, and terrorist financing. These agreements
• Analysis of STRs related to drug trafficking as
mark an important step in enhancing FIU-India’s bilateral
part of National Risk Assessment exercise.
engagement and operational coordination with key
international partners. STR trend analysis of drug trafficking related
151Annual Report 2025-2026
STRs was done on Source of Alert, State, Red monetary penalties on an RE i.e. Union Bank of India, for
Flag Indicators, Year wise and Reporting Entity non-compliance with its obligation as reporting entities,
wise trend and identification of drug trafficking amounting to Rs.37 Lakhs.
subtypes based on related keyword findings.
4.3.6 Impact Assessment: LEA’s Action on the
• Study of gaming/ gambling STRs for payment
basis of intelligence shared by the FIU-India
risk analysis related to suspicious transaction
volume share for different payment modes, LEAs have taken a number of actions and booked
reporting entity variation, major Source of alert
various cases on the basis of actionable intelligence
identification, linked predicate offence and
shared by the FIU-India in the form of Operational
economic profile of people involved in gaming/
Analysis, Tactical Analysis, Strategic Analysis and STRs.
gambling activity. The study also focused on
Three individuals were arrested by Cyber-crime wing
regional share and variation, gender and age
of Andhra Pradesh Police for allegedly producing and
group patterns.
transmitting adult content through banned pornographic
• Analysis of Banking sector risk assessment
websites. Search done by an LEA in Kerala on One Trust
across 4 different themes - payment systems,
& its NRI Chairman in a case involving receipt of Rs. 220
MTSS, Mule Accounts and Cooperative Banks.
The study covered transaction volume and type Crore foreign contribution without FCRA registration and
variation, RE category wise transaction modes investing in agricultural properties in violation of provisions
used, geographical and demographic spread and of FEMA, 1999.
predicate offence linkages.
Action by an LEA in respect of a set of Indian
• Risk prioritization of Individuals from STR
persons and individuals involved in crypto currency/
database – The study aims for risk prioritization
Virtual Digital Asset (VDA) transactions pertaining to an
of individuals based on the number of distinct
STRs it is linked to, number of distinct REs which ongoing investigation with respect to seizure of 108 kg
have filed those STRs, source of alerts, nature of FO gold bars smuggled through Indo-China Border.
predicate offences reported in linked STRs, and
4.3.7 Implementation of the Right to Information
linked CTR, CBWTR, NTR count and volume.
Act, 2005. Implementation of the Right to Information
4.3.5 Compliance Action by FIU-India Act, 2005, Number of RTI applications received,
During the current year, FIU-India took compliance disposed of and denied during the period from
action on many reporting entities including imposition of 01/04/2025 to 30/11/2025
Received Disposed Off Remarks
Transferred Denied
131 04 0 Information provided for 119
RTI request received & 08
applications respectively are
pending for disposal.
Note: FIU-IND has been included in the Second Schedule Laundering Act. In addition, the organizations shown
of Right to Information Act, 2005 vide Department of below are administratively controlled by E.S. Cell:
Personnel & Training notification dated 28.09.2005 and
(i) Adjudicating Authority under the Prevention of
therefore under Section 24(1) of the Right to Information
Act, 2005, is exempt from the operation of this Act, except Money-laundering Act.
for the information pertaining to the allegation of corruption (ii) Financial Intelligence Unit-India.
and human right violation.
4.4.2 Prevention of Money Laundering Act (PMLA) was
4.4 Economic Security (ES)
enacted on 17th January, 2003 and brought into force on
4.4.1 Economic Security Cell deals in coordination 1st July 2005. The object of this Act is to prevent money
work relating to investigation and enforcement agencies, laundering and to provide for confiscation of property
it deals in implementation of recommendations made derived from, or involved in, money - laundering and for
by the Group of Ministers/various Committees etc. matters connected therewith or incidental thereto. Two
relating to economic security matters, matters relating
main objectives of the Act are:
to foreign organizations such as Asia/Pacific Group on
• Criminalize money laundering and provide for
Money Laundering, EGMONT Group etc. It also deals
in administration/amendments of Prevention of Money attachment, seizure and confiscation of property
152Department of Revenue III
involved in money laundering [Implemented by as ED, FIU-IND, RBI, SEBI, IRDAI, MHA, NIA,
Enforcement Directorate]; and MEA, MCA etc.
• Prescribe obligations on banks, financial vi. The Cell receives, circulates and discusses
Institutions and intermediaries relating to various documents/ proposals related to FATF,
KYC, record keeping and furnishing reports APG, EAG with all the concerned stakeholders
[Implemented by Financial Intelligence Unit-India within the country and comments of India are
(FIU-IND)]. sent on these issues, keeping national interests
in view.
4.5 Financial Action Task Force
vii. The FATF cell also handles nominations of
i. Financial Action Task Force (FATF) is an
Indian delegation to the Plenaries and other
independent inter-governmental body having 39
important meetings of FATF, APG and EAG.
members (37 jurisdictions and 2 organizations)
Officers from the key agencies along with officers
established by its member jurisdictions for
from FATF Cell participate in these meetings
effective implementation of legal, regulatory
and the delegation takes part in the multilateral
and operational measures for combating money
discussions on various issues.
laundering, terrorist financing, combating
financing or proliferation of weapons of mass viii. Currently, FATF Cell is providing technical
destruction in countries across the world. India assistance to several countries to support their
became a member of FATF in 2010. India is also preparations for Mutual Evaluations under the
a member of two FATF Style Regional Bodies FATF framework. In this context, technical
(FSRBs) -Asia Pacific Group (APG) and Eurasian assistance was extended to Sri Lanka in relation
Group the combating Money laundering and to its forthcoming FATF Mutual Evaluation.
Financing of Terrorism (EAG). ix. An important part of FATF mutual evaluation is
ii. The core work of FATF is to conduct Mutual to conduct National Risk Assessment where risk
Evaluation of its Members and to guide and of various sectors of the economy like Banking,
assist FSRBs to conduct Mutual evaluation of Insurance, Capital Markets, Designated Non-
their respective member jurisdictions. The last Financial Business and Profession sectors etc.,
round of Mutual Evaluation of India begun in are assessed periodically. FATF Cell, DoR
May 2023 based on the revised standards of functions as the coordinator for conducting
FATF (40 recommendations and 11 Immediate India’s/TF NRA. Currently, the FATF Cell is
outcomes) and the same has been completed in coordinating the work related to National Risk
June, 2024. In its last Mutual Evaluation, India Assessment 2025.
has achieved a high-level of technical compliance x. An Inter- Ministerial Coordination Committee
across the FATF Recommendations and has has been constituted under the Chairpersonship
taken significant steps to implement measures to of Revenue Secretary under Sec.72A of PMLA
tackle illicit finance. The Mutual Evaluation Report with the mandate of macro-level policy decision
of India, which was adopted in the FATF plenary making on AML/CFT matters, operational
held in Singapore between June 26th and June co-operation between the Government, law
28th, 2024, places India in the ‘regular follow-up’ enforcement agencies, the Financial Intelligence
category, a distinction shared by only four other Unit-India and the regulators or supervisors, and
G20 countries. This marks a significant milestone supervision of National Risk Assessment (NRA).
in the nation’s efforts to combat money laundering FATF Cell works as the Secretariat to the IMCC.
(ML) and terrorist financing (TF).
xi. An AML/ CFT Joint Working Group under the
iii. The Mutual Evaluation is very comprehensive and Chairmanship of Additional Secretary (Revenue)
intense exercise and evaluates the anti-money has been created for enhancing operational co-
laundering and combating terror financing (AML/ ordination among all stakeholders.
CFT) abilities of a country’s financial sector.
xii. FATF Cell is also part of the core group constituted
iv. FATF Cell was constituted in DoR in 2017 vide by Department of Personnel and Training to work
GOI Gazette Notification dated 9th Nov, 2017. on G20 Anti-Corruption Working Group (ACWG)
v. Coordination or work related to FATF Secretariat and is working closely with all stakeholders on
is the main function of FATF Cell. As part of this, the Action plan for 2022-24 which covers the
FATF coordinates with other key agencies such year of 2023, India’s presidency of G 20. FATF
153Annual Report 2025-2026
Cell provides regular inputs for the Finance Track scientific purposes while preventing their diversion from
of G 20 coordinated by DEA, BRICS AML/CFT licit sources, and prohibiting illicit traffic and abuse. The
meetings, RIC meetings, CT Dialogues, to UN Narcotic Drugs and Psychotropic Substances Act divide
on Terrorist Financing related Targeted Financial the powers and responsibility of regulation of licit activities.
Sanction and meetings of other multilateral Section 9 of the Act has listed various activities which the
economic bodies. Central Government can, by rules, regulate while Section
10 lists various activities which the State Governments
xiii. During the year 2025, FATF Cell, Department
can, by rules, regulate. Accordingly, Narcotic Drugs and
of Revenue worked closely with financial sector
Psychotropic Substances Rules, 1985 have been framed
supervisors and regulators in order to improve the
by the Central Government, which regulates cultivation of
existing AML/CFT infrastructure, and meetings
opium, manufacture, import/export of narcotic drugs and
were held to improve our compliance with FATF
psychotropic substances. Further to prevent diversion
standards. FATF cell worked was instrumental in
of precursor chemicals, of wide industrial use, for illicit
bringing Virtual Asset Service Providers (VASPs), manufacturing of, narcotic drugs and psychotropic
Company Secretaries, Charted Accountants, substances, administrative supervision & coordination
and Trust & Company Service Providers under for the Narcotic Drugs and Psychotropic Substances
the ambit of AML/CFT supervision, and for their (Regulations of Controlled Substances) Order, 2013 has
notification as reporting entities for FIU-IND. FATF been framed under Section 9A of the NDPS Act. The
Cell coordinated with all relevant organisations aforesaid provisions of NDPS Act, 1985, inter-alia are
to develop and release the National AML/CFT implemented through to subordinate offices namely (i)
Policy. Officers from FATF Cell attend FCORD Central Bureau of Narcotics (CBN) and (ii) Chief Controller
meetings for coordination on Counter Financing of Factories, Government Opium and Alkaolids Factories
of Terrorism (CFT), as well as CT dialogue. (GOAF).
xiv. The Plenary and Working Group meetings of 4.6.2 FUNCTIONS/ WORKING OF THE CENTRAL
FATF, EAG, APG are now being conducted in BUREAU OF NARCOTICS
physical format and Indian delegation has been
The Narcotics Commissioner is administrative
attending the same. The February 2025 FATF
head of the Central Bureau of Narcotics (CBN) with
Plenary was held in Paris, France and was
its headquarters situated at Gwalior. The CBN excises
attended by an eleven (11) member delegation
control and supervision over poppy cultivation, which
from India whereas the June, 2025 Plenary
is presently undertaken in selected notified areas of
was held in Strasbourg and was attended by
the three states of Madhya Pradesh, Uttar Pradesh &
10-member delegation comprising officer from
Rajasthan. Additionally, licenses are issued to research
different ministries/agencies. The October 2025
institutes for carrying out research only in notified areas
FATF plenary was held in Paris and was attended
of State of Uttarakhand. In addition to the work relating to
by 8 (eight) member delegation from India. licensing of opium poppy cultivation, measurement and
xv. The FATF Cell, Department of Revenue hosted test measurement of fields and procurement of opium
Joint Assessor Training, 2025 (7-11 April) in New and poppy straw from which no juice is extracted, the
Delhi and the same was attended by delegates CBN also undertakes preventive checks and exercises
from FATF/EAG/APG member countries. vigil to prevent diversion of opium into illicit channels as
well as enforcement of Narcotic Drugs & Psychotropic
The FATF Cell also hosted 2-day capacity Substances Act, 1985.
building programme for central asian countries (21-22
i. Survey, detection and eradication of illicit
April) in New Delhi.
cultivation of opium poppy throughout the
4.6 Narcotics Control (NC) country.
4.6.1 The Narcotics Control Division administers the ii. Enforcement of provisions of the NDPS Act
Narcotic Drugs and Psychotropic Substances Act,1985 1985 to suppress illicit trafficking of Narcotic
(61 of 1985), which prohibits, except for medical and
Drugs, Psychotropic Substances and Controlled
scientific purposes, the manufacture, production,
Substances including search, seizure, arrest,
possession, sale, purchase, transport, warehouse, use,
detentions, disposal, investigation and
consumption, import inter-State, export inter-State, import
prosecution of drug offenders, tracking and
into India, export from India or transshipment of narcotic
freezing of illegally acquired properties of drug
drugs and psychotropic substances. The policy of the
Governments has thus been to promote use of narcotic traffickers derived from illicit drug trafficking for
Drugs and psychotropic substances for medical and forfeiture and confiscation.
154Department of Revenue III
iii. Issuance of licenses to domestic manufacturers cooperation with INCB and competent authorities
for manufacture of synthetic Narcotics Drugs of concerned countries.
notified under the NDPS Act 1985. vi. Liaison with the International Narcotics Control
iv. Performing the functions of Competent National Board (INCB), United Nations office on Drugs and
Crime (UNODC) as well as with the Competent
Authority (CNA) for international Trade for
National Authorities of other countries on
issuance of Export Authorizations and Import
issues related to international trade in narcotic
Certificate for Export/Import of Narcotic Drugs
drugs, Psychotropic substances and precursor
& Psychotropic Substances and issuance of
chemicals.
‘No Objection Certificate’ for import/export of
vii. Co-ordination with other Drug Law Enforcement
precursor chemicals under the 1961, 1971 and
Agencies such as Directorate of Revenue
1988 UN Conventions, dealing with Narcotic
Intelligence, Customs, Narcotics Control Bureau,
Drugs, Psychotropic substances and chemicals/
State Police, State Excise, State FDAs and
substances used for manufacture of these drugs.
various other drug law enforcement agencies.
v. 1988 Convention requires CNA of the countries
4.6.2.1 Performance and Achievements: - The
to take all possible measures to prevent
performance / achievement with respect to issuance of
diversion from international trade of precursor
NOCs issued by the Central Bureau of Narcotics during
chemicals used in illicit manufacture of Narcotics the year 2025-26 for export/import of precursor Chemicals
Drugs and Psychotropic Substances in close is as under:-
No. of NOC issued From 01.04.2025 to From 01.12.2025 to
30.11.2025 31.03.2026 (projected)
For export of controlled substance 1551 750
For Import of controlled substance 1041 390
Total 2592 1140
No of Pre-export Notification (PEN) sent to CAN 1363 1140
Number of Stop Shipment/suspended (Export) 40 NA
International Narcotics Control Board (INCB) suspicious transactions of Precursor Chemicals
provides online Pre-Export Notification (PEN) system for suspected to be diverted from the licit channels during
exchange of information between the Competent National the year under report.
Authorities which is utilised by CBN. CBN has issued 1363
The performance/ achievement with respect to issuance
PEN (during the period from 01.04.2025 to 31.11.2025)
of Export authorization and Import Certificate issued by
to the competent authority of various importing countries,
Central Bureau of Narcotics during the year 01.04.2025
for verifying the legitimacy of the transactions. On the
initiative taken by Central Bureau of Narcotics, through to 31.10.2025 for export/import of Narcotic drugs /
online PEN system, CBN has identified and stopped Psychotropic substance is as under: -
Psychotropic Narcotics Drugs
Substances
From 01.04.2025 From 01.12.2025 From From 01.12.2025
to 30.11.2025 to 31.03.2026 01.04.2025 to to 31.03.2026
(projected) 30.11.2025 (projected)
No. of Export authorization 4521 2179 325 115
issued
No. of Import Certificate 662 331 124 30
issued
Total 5183 2510 449 145
The performance/achievement with respect to Quota companies by Central Bureau of Narcotics during the
allocation of narcotics drugs to various pharmaceuticals year 01.04.2025 to 30.11.2025 of Natural Narcotics
155Annual Report 2025-2026
Drugs (ND)/ Synthetic Narcotics Drugs (SD) is as under:-
2025 Projections from
(from 01.04.2025 to (01.12.2025 to
Quota Allocation Details
30.11.2025) 31.03.2026)
Quota Allocation of Natural Narcotics Drugs (ND) 266 201
certificates issued
Quota Allocation of Synthetics Narcotics Drugs (ND) 59 37
certificates issued
Total 325 238
4.6.2.2 Enforcement of NDPS Act, 1985- tracing and freezing of illegally acquired property of drug
traffickers, derived from illicit drug trafficking, for forfeiture
The Central Bureau of Narcotics undertakes and confiscation.
action to prevent the illicit trafficking of Narcotic Drugs
Details of Destruction of illicit Opium Poppy Cultivation
and Psychotropic Substances. It also undertakes
and Cannabis during April 2025 to November 2025 are
investigations and prosecution of drug related offences,
as under:-
Year State Area Destroyed (In Hectare)
2025-26 Himachal Pradesh 1763 (cannabis)
2025-26 Uttarakhand 1383 (Opium Poppy)
Total 3146
Seizure effected by CBN during April 2025 to 30 November 2025.
Sr. Narcotics Drugs and Psychotropic Substances/Precursor No. of Cases Quantity
No.
1. Poppy Straw 93 176865.97 kg
2. Heroin 05 0.922 kg
3. Cannabis 12 577.311 kg
4. Charas 01 2.574 kg
5. Tramadol Tab/Cap/Inj. 07 1291558 Cap
6. Opium 44 2304.023 kg
7. Alprazolam tab/Powder 10 2722169 Tab
8. Chlordiazepoxide Tab * 290 Tab
9. Clonazepam Tab 01 1835 Tab
10. Lorazepam * 136800 Tab
11. Nitrazepam Tab 01 268 Tab
12. Ketamine 01 81800 Ampules
13. Buprenorphine 01 16675 Ampules
14. Codeine Phosphate syp/Tab 01 103336 Bottles
15. Pentazocine Inj. * 74398 Inj.
16. MDMA Pills/Crystal 04 2.800 kg
17. Suspected Psychotropic Powder 01 10.078 kg
18. M.D. Powder 04 0.949 kg
156Department of Revenue III
Sr. Narcotics Drugs and Psychotropic Substances/Precursor No. of Cases Quantity
No.
19. Psychotropic medicines * 230720 Tab
20. Zolpidem Tab * 120 Tab
21. Methamphetamine 01 0.200 kg
22. Mephedrone 11 5.098 kg
23. Tapentadol Tab * 12000 Tab
Disposal of Seized drug by CBN during the year 2025 (Upto 30.11.2025):-
Opium 169.974 kg
Heroine 0.712 kg
Poppy husk 44624.86 kg
Mephedrone 3.32kg
Acetic Anhydride 0.800 kgs
Nitrazepam 89 Tab
Poppy Plant 2045
Tramadol 46912 Tab + 400 Inj.
Alprazolam 9.9 kg
Morphine Tablet 0.690 kg
Methamphetamine 1.064 kg
Ganja/Cannabis 1227.69 kg
Charas 2.527 kg
4.6.2.3 Gender Issues/ Empowerment of Women: consistence (provisional figure) was produced from
opium cultivators. The average yield (kg/hectare) at 70
Complaint Committee regarding “Sexual
consistence on the basis of results received from Madhya
Harassment” of women at work place created and working
Pradesh, Rajasthan and Uttar Pradesh units for the crop
at Hqrs. Gwalior and unit offices and submission of
year 2024-25 is 64.70 kg/hectare (provisional).
quarterly report to DGHRD on action taken on complaints
under the Sexual Harassment of women at work place Production of Unlanced Poppy
(Preventive, Prohibition and Redressal Act, 2013). Straw(UPS):- Total 42830 cultivators were issued
license in crop year 2024-25 for production of Unlanced
4.6.2.4 E-Governance Activities.
Poppy Straw cultivation and 41788 cultivators tendered
Take another leap towards transforming India a total quantity of 3838 MT of UPS in crop year 2024-25.
into digital India Unified Web Portal of CBN was launched
4.6.2.7 Other highlights of performance and
with URL (http://www.cbnonline.gov.in) Unified Portal is
achievements during the year 2025-26.
working as one stop solution for all license related work
with Central Bureau of Narcotics. i. GEM Purchase
Purchase of items for the official purpose is
4.6.2.5 Right to information Act, 2005
made through GEM portal. The dead stock items,
The application received under RTI section are
perishable items are purchased through GEM
dealt with the RTI Act and are disposed off in the time limit.
portal. The upcoming purchase/ services of the
Detailed functions and various aspects of the work done
articles will also be made through the GEM portal
by the Department are also available on CBN website
mostly.
http://www.cbn.nic.in
ii. World Drug Day, 26th June, 2025 by Central
4.6.2.6 Total 55472 cultivators were licensed during
Bureau of Narcotics:-
the year 2024-25 for production of Gum opium 54344
cultivators tendered Gum opium during crop year 2024- Every year 26th June is observed as “International
25 and a quantity of 346 Metric Tons of opium at 70 day against drug abuse and trafficking” in order
157Annual Report 2025-2026
to raise awareness for the drug menace in called the “Committee of Management” constituted
the society and seeking people’s participation and notified by the Government of India in 1970. The
to deal with this problem. Central Bureau of Additional Secretary (Revenue), Department of Revenue,
Ministry of Finance is the Chairman of the Committee of
Narcotics organized several activities like placing
Management. An officer of the rank of Commissioner/
Banners on prominent public places, bike rally
Joint Secretary is the Chief Controller of Factories who
for awareness, use of electronic media such as
heads the Organization and each of the two factories
awareness camping through FM radio, easy and
at Neemuch and Ghazipur are managed by a General
slogan writing and Tree plantation in the official
Manager of the rank of Additional Commissioner/Director.
campus.
The office of the Chief Controller of Factories is located
iii. Programme organized by Hindi section of central at New Delhi. Each of the factories at Ghazipur and
Bureau of/ Narcotics: - Neemuch comprises two units – the Opium Factory and
Alkaloid Works. The Opium Factories undertake the
During the year 2025-26, Hindi Fortnight was
work of receipt of opium from the fields, their storage and
organized in the Hindi section from September
processing for exports and domestic consumption. The
14, 2025 to September 30, 2025, and various
Alkaloid Works are engaged in processing raw opium into
competitions were held. The winning participants alkaloids of pharmacopeial grades to meet the domestic
were awarded on June 30, 2025, as an demand of the pharmaceutical industry.
encouragement.
The GOAWs have employed a total work force
4.6.3 FUNCTIONS /WORKING OF GOVERNMENT of about 341 people including the two opium and alkaloid
OPIUM AND ALKAOLIDS WORKS (GOAW) plants viz GOAW, Neemuch and GOAW, Ghazipur.
The work force comprises of officials and staff drawn
The Government Opium & Alkaloid Factories
from the Central Board of Indirect Taxes and Customs,
(GOAF) is engaged in the processing of raw opium for
Central Bureau of Narcotics, Central Revenues Control
export and manufacturing of opiate alkaloids through
Laboratory, apart from personnel selected by the Union
its two Factories viz Govt. Opium & Alkaloid Works
Public Services Commission directly. The security
(GOAW) at Ghazipur (U.P.) and Neemuch (M.P.). The
aspects of these factories are looked after by the Central
Products manufactured at GOAWs are mainly used
Industrial Security Force (CISF), a paramilitary force
by pharmaceutical industry of India for Preparation of
under the Ministry of Home Affairs.
cough syrup, pain relievers, de-addiction drugs and
tablets for terminally ill cancer and HIV patients. The 4.6.3.1 PERFORMANCE OF GOAF FOR THE
GOAWs are administered by a High-Powered Body FINANCIAL YEAR 2025-26
Sl. Particulars Unit Actual Production Estimated Production
No. April 2025 to from December, 2025
November 2025 to March 2026
A PRODUCTION
1 a) Morphine Sulphate KG. 1363.200 1000
b) Codeine Phosphate (IP) KG. 7778.000 17250
c) Pure Thebaine KG. 1193.500 661
d) Noscapine BP KG. 13406.000 9000
e) Papaverine S.R. KG. 3494.200 1660
f) IMO Powder KG. 12100.000 6050
g) IMO Cake KG. 2586.000 1293
Total (1) (a to g) KG. 41920.900 36914
*09 Superintendents promoted to Assistant Commissioner (In – situ basis)
01 Administrative Officer promoted to Chief Accounts Officer (In – situ basis)
158Department of Revenue III
Sl. Particulars Actual Sales April Estimated Sales from
No. 2025 to November December, 2025 to
2025 March 2026
Quantity (in Kgs.) Quantity (in Kgs.)
B Sales
1 a) Morphine Sulphate 685.016 1600
b) Codeine Phosphate (IP) 17588.446 16228
c) Pure Thebaine 1250.030 723
d) Noscapine BP 12882.000 7250
e) Papaverine S.R. 3725.000 3725
f) IMO Powder (Domestic sales + export) 12661.705 12461
g) IMO Cake (Domestic sales + export) 3686.715 3686
h) RIO (Export) 428.000 10120
C. (a) COUNTRY WISE EXPORT OF OPIUM AT 90°C (excluding domestic sales of IMO Powder & Cake) FOR
THE FINANCIAL YEAR 2025-26 (Up to November 2025)
(Quantity in Kgs)
Sr. Unit USA France Switzerland Total
No.
1 GOAF 428.086 4000.000 380.000 4808.086
(b) ESTIMATE COUNTRY WISE EXPORT OF OPIUM AT 90°C (excluding domestic sales of IMO Powder & Cake)
FOR THE FINANCIAL YEAR 2025-26 (From December 2025 to March 2026)
(Quantity in Kgs)
Sr. No. Unit France Total
1 GOAF 4000 4000
D. (a) REVENUE RECEIPTS (ON REALISATION BASIS) FOR THE FINANCIAL YEAR 2025-26 (Up to November
2025)
(Rs. In crore)
Sr. No. Unit Opium Factory Alkaloid Works Total
1 GOAF 0.53 147.22 147.76
(b) ESTIMATE REVENUE RECEIPTS (ON REALISATION BASIS) FOR THE FINANCIAL YEAR 2025-26 (From
December 2025 to March 2026)
(Rs. In crore)
Sr. No. Unit Opium Factory Alkaloid Works Total
1 GOAF 6.94 104.44 111.38
159Annual Report 2025-2026
II. ACHIEVEMENT OF CCF ORGANISATION UP TO THE MONTH OF NOVEMBER 2025 WITH COMPARATIVE
DATA OF PREVIOUS YEAR i.e., 2024 FOR THE SIMILAR PERIOD
Sl. Actual Production
No. April to November
Particulars Unit
2024-25 2025-26
(1) (2) (3) (4) (5)
A. PRODUCTION
1 Manufacture of Drugs:
a) Morphine Sulphate KG. 266.800 1363.200
b) Codeine Phosphate KG. 22393.500 7778.000
c) Pure Thebaine KG. 856.850 1193.500
d) Noscapine BP KG. 633 13406.000
e) Papaverine S.R. KG. 1923.870 3494.200
f) IMO Powder KG. 9800.000 12100.000
g) IMO Cake KG. 0 2586.000
Total (1) (a+g) KG. 35874.020 41920.900
B. Sales
Sl. Particulars 2024-25 2025-26
No. April to November April to November
Quantity Quantity
(kgs) (kgs)
(1) (2) (3) (4)
1 Domestic Sale of Drugs: (on actual basis)
a) Morphine Sulphate 300.010 685.016
b) Codeine Phosphate (indigenous & exported) 18755.751 17588.446
c) Pure Thebaine 770 1250.030
d) Noscapine BP 2878.500 12882.000
e) Papaverine S.R. 1800 3725.000
f) IMO Powder (domestic sale + export) 7503.500 12661.705
g) IMO Cake (domestic sale + export) 3484.721 3686.715
C. COMPARATIVE COUNTRY WISE EXPORT OF OPIUM AT 90°C (Up to November of each Financial Year)
(Qty. in Kgs. at 90ºC)
Unit USA FRANCE SWITZERLAND SRI LANKA TOTAL
2024-25
GOAF 68.17 2000 668 130 2866.17
2025-26
GOAF 428.086 4000 380 0 4808.086
• Digitization in Opium receiving, sampling by this organization to ensure transparency
and testing: -OCTA (Opium Container & efficiency in receiving, sampling & testing
Tracking Application) is QR code based, of opium gum. Using this application this
Blockchain protected application introduced year, report of the samples received from
160Department of Revenue III
53,349 farmers was submitted in less than have already been appointed and they are functioning
20 days. effectively to facilitate timely disposal of RTI application.
• Scheduled maintenance by way of shut down has 4.6.3.8 All rules and policies laid down for benefit of
been completed & opium charging capacity has persons with disabilities are being followed. The CCF
organization does not govern and implement any scheme.
increased and stabilized to 300 MT per year (25
MT per month), doubling the previous capacity 4.7 Central Economic Intelligence Bureau (CEIB)
of 150 MT per year. This expansion significantly
The Central Economic Intelligence Bureau is the
enhances our overall production capabilities.
nodal agency on economic intelligence. It was set up in
• The CPS policy implementation is being done 1985 for coordinating and strengthening the economic
through PPP model with M/s Sunlite Alkaloids intelligence and enforcement activities under the Ministry
of Finance.
Private Limited, Neemuch, Madhya Pradesh.
• M/s Bajaj Healthcare Ltd, Vadodara, Gujarat, The Bureau is headed by a Director General
who is assisted by two Additional Director Generals (JS
shall process at least 500 MT of opium poppy
Equivalent), Joint Secretary (COFEPOSA), Additional
capsule along with straw through Concentrate
/ Joint Directors (DS/Director equivalent), Under
of Poppy Straw (CPS) Method per year.
Secretaries, Deputy Directors (US equivalent) and other
• GOAW, Neemuch has attained WHO-GMP staff. The Bureau has a sanctioned strength of 116
certification with effective from 17.03.2025. officers & staff.
4.7.2 MAIN FUNCTIONS OF CEIB
4.6.3.2 CCF organization does not implement and govern
any scheme for public services. 4.7.2.1 In terms of its existing charter, the CEIB functions
as:
4.6.3.3 Regular monitoring of work is done by
management through weekly meetings with Section a) The Secretariat for the Economic Intelligence
In- charges and regular meetings with Headquarters are Council (EIC)
done to increase efficiency. b) Coordination between various agencies for
coordinating action and repository of economic
4.6.3.4 Activities Undertaken for Disability Sector &
intelligence (ECOINT) and
SCs/STs & Other Weaker Sections of Society: Person
with disabilities are posted in this organization and all c) Administers the COFEPOSA Act 1974 at Central
welfare measures are extended to them. The weaker Government Level.
sections of society including SC/ST are being given the
4.7.2.2 As part of its earlier mandate, the CEIB
opportunities and timely benefits are given as per Govt.
(a) Maintains databases on economic offenders and
norms.
offences
4.6.3.5 Gender Budgeting/Empowerment of Women: (b) Studies and analyses macro level economic
An Internal complaint committee has been formed to activities;
address the complaints of harassment of women at work
(c) Supervises and monitors the functioning of
place and it is functioning smoothly.
Regional Economic Intelligence Councils (REICs)
4.6.3.6 E-Governance Activities: which are coordinating bodies at the field level
and comprise representatives from various
i. Purchases and award of contracts are being done
Central and State enforcement and investigative
through E-tendering and GeM except for items
agencies dealing with economic offences;
of urgency and which are not available on GeM.
(d) Organizes training programmes in premier
ii. OCTA is an e-governance initiative done by
training institutions for officers of the Department
this office in which receiving, sampling & testing
of Revenue/ Member agencies of REICs.
process of opium gum is done by QR code
4.7.2.3 In terms of its existing revised charter dated
and Blockchain based application increasing
12.12.2003 issued by Department of Revenue (HQ), the
transparency and efficiency.
CEIB carries out the following functions:
4.6.3.7 Implementation of the Right to Information (a) The Secretariat for the Economic Intelligence
Act, 2005: CPIO, APIO and 1st appellate Authority Council (EIC);
161Annual Report 2025-2026
(b) Coordination between various agencies for multiple LEAs including CBDT, CBIC, ED, SEBI, SFIO,
coordinated action; NIA, DGFT and others participated, ensuring operational
(c) Repository of economic intelligence (ECOINT); readiness for go-live.
(d) Administers the COFEPOSA Act 1974 at Central 4.7.2.5 IMPLEMENTATION OF THE CONSERVATION
Government Level; OF FOREIGN EXCHANGE AND PREVENTION OF
SMUGGLING ACTIVITIES (COFEPOSA) Act, 1974.
(e) Ensures prompt dissemination of intelligence
having security implications among the NSCS, Conservation of foreign exchange and prevention
IB & R&AW; of smuggling activities is of prime importance for the
economic health and national security of a Nation.
(f) Coordinates the functioning of Regional Economic
Accordingly, the links which facilitate the violations of
Intelligence Councils (REICs);
foreign exchange regulations and smuggling activities are
(g) Coordination with Multi Agency Centre (MAC);
required to immobilizes by detention of persons engaged
(h) Organizes meetings of Working Group under in these operations as the smuggling, foreign exchange
the Chairmanship of Revenue Secretary at racketeering and related activities have a deleterious
prescribed intervals and submits a report to the effect on the national economy and thereby causing a
Chairman of the EIC after every meeting; serious adverse effect on the security of the state.
(i) Acts as a ‘think tank’ for the Department of To deal with this menace, the Conservation of
Revenue, Ministry of Finance on all issues Foreign Exchange and Prevention of Smuggling Activities
relating to economic offences, and undertakes Act, 1974 (COFEPOSA Act, 1974) has been enacted to
analysis of economic activities at the macro level. provide for preventive detention law to detain smugglers
and foreign exchange manipulators from indulging in
4.7.2.4 National Economic Offence Records (NEOR):
these prejudicial activities.
National Economic Offence Records (NEOR)
The COFEPOSA Wing of Department of Revenue
application of the Central Economic Intelligence Bureau
is entrusted with the task of effective implementation of
has been developed as a secure web-based platform to
the COFEPOSA Act, 1974. This wing is functioning under
enable information sharing and multi-agency coordination
the administrative control of Central Economic Intelligence
among Law Enforcement Agencies (LEAs) for prevention
Bureau (CEIB).
and mitigation of economic offences. It is designed to
enable real-time data sharing, antecedent verification, During the year 2025-26, preventive detention
and 360-degree profiling of economic offenders across orders against 29 persons (from 01.04.2025 to 30.11.2025)
Law Enforcement Agencies (LEAs). were passed under the COFEPOSA Act, 1974 which got
executed (including the orders of previous years) before
The application is designed and developed to
30.11.2025. Further, 03 Detention Orders were confirmed
evolve into a comprehensive repository of economic
by the Central Government on the basis of the pinion of
offence data with advanced analytical capabilities by
Advisory Boards constituted under the COFEPOSA Act,
leveraging API-based data extraction from external
1974.
databases, thereby streamlining data retrieval, reducing
manual data entry, and enhancing overall system 4.7.2.6 Administration in CEIB.
efficiency. The process of API integration with LEAs has
Administration Wing is responsible for personnel
been initiated and the same is currently under progress.
and office/general administration, preparation of BE/RE,
The application has been successfully deployed
implementation of the RTI Act 2005, redressal of public
on HCI infrastructure at LNDC, Delhi, and made
grievances etc. The Administration Wing is headed by
accessible on NIC-NET after completion of software
Additional Director General (Admn.) who is assisted by
security audit, DNS registration, and remediation of
one Additional Director and two Under Secretaries. The
identified vulnerabilities.
Additional Director General (Admn.) is responsible for
As a part of onboarding process, a one-day administration of the affairs of the Bureau and exercises
master trainers and administrators training programme his powers under the direction and guidance of the
on the application was conducted at CEIB, covering key Director General, CEIB. The Sanctioned strength &
modules such as case management, advanced search, incumbency position of the officers/staff in the Bureau
analytics, MIS, and user administration. Officers from are depicted below:
162Department of Revenue III
INCUMBENCY POSITION
Central Economic Intelligence Bureau: Staff Strength as on 14.1.2026
Sl. Designation Pay Level Sanctioned Present Vacancy
No. Strength Strength
1 DG Level-15-17 1 1 -
(Group-A)
2 JS(Cofeposa) (Group-A) Level-14 1 - 1
3 Addl. Director Level-14 2 2 -
General(Group-A)
4 Addl. Director/Jt.Dir. (Group-A) Level-13/12 5 5 -
5. Director/D.S.(CSS) (Group-A) Level-13/12 3 3 -
6. US(Group-A) Level-11 4 2 2
7. Deputy Director(Group-A) Level-11 8 1* 7$
8. Sr. Stat. GR.-II (Group-A) Level-09 1 0 1
9. S.O. (Group-B Gazetted) Level-8/10 2 2+2=4 -
10. A.S.O. (Group-B)+UDC Level-7& Level-6 4+4=8 5 1
11. Assistant Director(Group-B) Level-7 20 17 3
12. PSO/Sr. PPS(Group-A) Level-12 1 - 1
13. PPS(Group-A) Level-11 4 2 2
14. PS(Group-B Gazetted) Level-8/10 6 2 4
15. Steno Gr.-C(Group-B) Level-7 4 1 3
16. Steno Gr.-D(Group-C) Level-6 3 0 3
17. Investigator(Group-C) Level-6 2 0 2
18. LDCs(Group-C) Level-2 6 0 6
19. Staff Car Driver(Group-C) Level-4 5 0 5
20. MTS(Group-C) Level-3 30 09 21
Total:- 116 54 62
$6 Posts of DD have been deemed abolished. of the REICs belong to senior officers from various Law
Enforcement Agencies which handles the revenue-based
*One DD has been posted by DoR/CBIC on loan basis.
offences such as DRI, ED, DGGI, EOW, CBI, Income
4.7.3 Achievements of the CEIB during the year Tax, Lokayukta, SEBI, State Development Authorities,
etc. REIC is a unique platform for LEAs to share revenue-
2025-26
based offences having inter agency ramifications.
4.7.3.1 Information Sharing Protocol
Since, April, 2025, 62 REIC meetings have been
Till date 28803 cases have been processed and conducted, wherein officers of CEIB also attended to
entered in NEOR database. Also, 7937 cases having further strengthen the REIC structure and operations.
multi agency ramifications have been shared with Law Also, officers from various departments such as FIU-IND,
Enforcement Agencies under the Information Sharing Telecom Authority, Narcotics Control Bureau were also
included in the REIC meetings.
Protocol.
In June, 2025, an all-India REIC online meeting
4.7.3.2 Regional Economic Intelligence Council
was conducted with more than 200 officers from 30 REICs
(REICs)
participated to discuss the REIC operations and NEOR
CEIB is the coordinating agency for 30 Regional application. In addition, in November, 2025, the hands-on
Economic Intelligence Council (REICs), which are training of the REIC Module in NEOR was conducted at
established across various states. Each REICs conducts CEIB, wherein officers and officials from 30 REICs visited
bi-monthly meetings in a F.Y. The Designated Members CEIB for the presentation and training.
163Annual Report 2025-2026
4.7.3.3 Training and Development as of November 2025 for the current fiscal year is ₹13.64
lakh crore which is a growth of 5.66% over that for the
CEIB in order to increase learning, development
same period last year. Overall, the GST revenue figures
and capacity building, organises various training
demonstrate continued growth momentum and positive
programme and courses for the officer under Dept. of
performance.
Revenue. Total 10 courses are conducted annually.
Further, as per the recommendations of the
These courses are organised in coordination with GST Council in its 56th meeting held on 03rd September
various training institutes such as National Law University, 2025, the cess on items other than tobacco products has
New Delhi; National Academy of Direct Taxes, Nagpur; been discontinued w.e.f. 22nd September, 2025. For the
National Intelligence Academy, New Delhi; Indian Army, specified goods namely, pan masala, gutkha, cigarettes,
Pune; National Institute of Securities Markets, Navi chewing tobacco products like zarda, unmanufactured
Mumbai; State Bank Institute of Consumer Banking, tobacco and beedi, cess will continue to apply and the
new rates will be implemented at a later date to be notified,
Hyderabad; Cabinet Secretariat Training Academy
based on discharging of entire loan and interest liabilities
Gurgaon. CEIB also facilitated on job training programme
on account of compensation cess.
for Assistant Section Officers probationers.
4.9 Tax Policy Research Unit (TPRU)
In addition, a new course on Basic Intensive
Practical Training courses in ‘Digital Investigation and 4.9.1 Introduction
Cyber Forensics’ by “Indian Cyber Crime Coordination
The Tax Administration Reform Commission
Centre” (I4C) at NCFL Dwarka, New Delhi, has been
(TARC), in its First Report, identified tax policy and related
started during the F.Y 2025-26. Total 10 batches are
legislation as areas needing structural reform. It noted
organised.
that tax policy work was being carried out separately by
the two Boards, Central Board of Direct Taxes (CBDT)
In total approx. 200 officers have been nominated
and the Central Board of Indirect Taxes and Customs
in these training programmes.
(CBIC). This work was handled through their respective
4.7.3.4 Book on compilation of study reports Tax Research Unit (TRU) and Tax Policy and Legislation
(TPL) wings. As a result, policy proposals reached
prepared by REICs
the Finance Minister through separate channels. This
The book compiling study reports of REICs for fragmented system reduced consistency, coherence, and
the FY 2024-25 was prepared. the use of multidisciplinary inputs in tax policymaking.
4.7.3.5 Global Entry Programme (GEP) Based on TARC’s recommendations, the Tax
Policy and Research Unit (TPRU) was established. Its
CEIB is designed as nodal agency under the objective was to bring greater coordination, analytical
Ministry of Finance, for giving clearance to the GEP strength, and consistency to tax policy formulation. The unit
applications, a US Customs and Border Protection (CBP) includes tax administrators, economists, and specialists
program facilitating expediated clearance for low-risk such as statisticians, tax law experts, operational research
travellers at US airports. CEIB coordinates with nine law professionals, and social researchers. TPRU functions
enforcement agencies i.e., ED, DRI, NIA, SEBI, DGGSTI, as a research and advisory body supporting the Hon’ble
Finance Minister, the Revenue Secretary, and both
SFIO, CBDT, CBI and NCB for obtaining feedback/input
Boards.
from these participating agencies. CEIB also performs
antecedent checks for each applicant from its own TPRU operates under the Department of
database. During FY 2025-26 (as on30.01.2026), a total Revenue and is currently headed by AS(Revenue).
of 11,381 GEP applications were processed. It undertakes rigorous analytical work and prepares
strategic policy papers. By bringing together officers
4.8 STATE TAXES
from the IRS, IES, and ISS, along with field officers and
GST collection has shown an upward growth year Research Fellows, the unit bridges institutional gaps
on year basis since its implementation. Total gross GST between CBDT and CBIC. It also works closely with
collection during FY 2025-26 (till Nov. 25) is 15.64 lakh State Commercial Tax Departments to align national and
regional tax perspectives.
crore, which is 7.39% higher than the collection for the
same period in FY 2024-25. The average monthly gross
Over the years, TPRU has completed major
collection for FY 2025-26 (till Nov. 25) is ₹1.96 lakh crore, studies that informed key policy and legislative reforms.
exceeding the ₹1.82 lakh crore collected in the previous Its work on TDS simplification proposed a payment-
year’s corresponding period. GST revenue net of refunds based system with three slab rates using microsimulation
164Department of Revenue III
modelling. Its analysis of Transfer Pricing litigation and administration in coordination with NITI Aayog, examines
global practices influenced the 2024–25 reforms, including issues arising from the Select Committee Report on the
expanded safe harbour rules and block assessments. To Income-tax Bill, and pursues collaboration with UNU-
reduce delays in dispute resolution, TPRU also developed WIDER on econometric analysis of Indian tax laws. It
a Litigation Management framework with “Call Book” also supports initiatives on participatory budgeting and
mechanisms and structured appeal categorisation. develops a convergence framework for Transfer Pricing
and Customs Valuation.
4.9.2 Mandate and Objectives
4.9.3.3 Customs and Trade
Objectives
TPRU analyses tariff structures to support
TPRU undertakes in-depth studies and provides
industrial competitiveness, aligns customs and trade
independent analysis on fiscal and tax policy issues
policies, and evaluates Production-Linked Incentive (PLI)
referred by CBDT and CBIC. It prepares and disseminates
schemes from a tax perspective.
policy papers, background notes, and comparative
studies on emerging tax policy challenges. The unit 4.9.3.4 Emerging Areas
supports the Tax Policy Council, chaired by the Union
Emerging areas of work include green taxation
Finance Minister, in informed and forward-looking tax
and carbon pricing, legal analytics, taxation of the digital
policymaking, and facilitates coordination with State
and platform economy including crypto-assets, and
Commercial Tax Departments on issues requiring inter-
technology-enabled tools for tax administration such as
governmental alignment.
AI/ML-based compliance support and risk engines.
Additional Responsibilities
4.9.4 Work Undertaken during 2025–26
TPRU coordinates India’s Business Ready
(B-READY) / Ease of Doing Business (EoDB) initiatives, During 2025–26, the Tax Policy and Research Unit
including engagement with DPIIT, CBDT, CBIC, and (TPRU) played a central role in strengthening evidence-
the World Bank, and supports tax-related EoDB reforms based tax policymaking, enhancing inter-ministerial
through analysis and outreach. It serves as the Secretariat coordination, and supporting national and international
to the IGST Settlement Committee and the Compensation engagements on taxation and regulatory reform. The
Cess Group of Ministers (GoM). The unit also supports year marked a significant expansion of TPRU’s analytical,
India’s FATF Mutual Evaluation process through coordination, and outreach functions, particularly in the
project management, reviewer coordination, and multi- context of global benchmarking exercises, GST reforms,
stakeholder engagement. In addition, TPRU develops and institutional capacity building.
advanced tax revenue forecasting and nowcasting tools,
A major focus area during the year was India’s
including a high-accuracy Dynamic Factor Model for GST.
engagement with the World Bank’s Business Ready
4.9.3 Key Workstreams (B-Ready) Exercise. TPRU assumed a leadership
role in coordinating and advancing India’s position
4.9.3.1 Goods and Services Tax (GST) under the B-Ready framework, particularly on taxation-
related indicators. The unit’s contributions were formally
TPRU undertakes analytical work on GST
acknowledged at the Inter-Ministerial Committee chaired
rate rationalisation, inverted duty structure under GST
by Secretary, DPIIT. Throughout the year, TPRU
Next-Generation reforms, and the design of a more
convened regular Joint Working Group (JWG) meetings
trade-friendly E-Way Bill system through risk-based and
with participation from key stakeholders, including CBIC,
technology-driven solutions. Studies cover blocked credits
CBDT, GSTN, the Ministry of Labour and Employment,
and their impact on the VAT chain, special dispensations
and DPIIT, ensuring consistent alignment across
such as composition and reverse charge mechanisms,
institutions and timely resolution of technical and policy
and the implications of GST 2.0 for MSMEs and start-ups.
issues.
The unit propose to develop a GST Equity Dashboard to
assess Centre–State revenue balance, prepares sector- In addition to domestic coordination, TPRU
wise compliance and revenue reports, and evaluates GST facilitated Government-to-Government deliberations
compensation and state revenue trends. with Singapore, Hong Kong, and New Zealand to draw
lessons from international best practices. Notably, the unit
4.9.3.2 Direct Taxes
initiated and coordinated a multi-ministerial delegation
Work in direct taxes includes evaluation of to New Zealand, which emerged as one of the strongest
corporate tax models, analysis of profit shifting and digital performers across domains in the first B-Ready report
economy taxation, and impact assessment of DTAAs on released in 2024. TPRU also participated in a multi-
foreign investment under the DEA–DPIIT Task Force. ministerial delegation to the World Bank Headquarters,
The unit explores the use of Artificial Intelligence in tax where detailed discussions were held on taxation-related
165Annual Report 2025-2026
aspects of the B-Ready methodology, indicators, and data the designation of UPI-like payment platforms as GST
validation processes. reporting entities.
Complementing the technical work under In terms of GST forecasting and institutional
B-Ready, TPRU undertook a comprehensive Perception support, TPRU continued to strengthen its analytical
Management and Outreach Programme, as mandated capabilities by using a Dynamic Factor Model incorporating
high-frequency indicators. In parallel, the unit advanced
under the exercise. This programme was implemented
the development of machine-learning-based forecasting
across 20 cities over the course of the year and involved
methods to improve the accuracy and timeliness of
structured engagement with a wide range of stakeholders,
revenue projections. TPRU also functioned as the
including tax professionals, industry representatives, and
Secretariat to the IGST Settlement Committee, providing
industry associations. The objective was to understand
analytical and logistical support to facilitate informed
ground-level perceptions, identify implementation
decision-making.
bottlenecks, and align administrative practices with
global benchmarks on ease of doing business in Other Work Undertaken
taxation. In parallel, TPRU conducted proactive outreach
In addition to the major initiatives outlined
sessions with CBDT and CBIC field formations across
above, TPRU provided a continuous stream of analytical
the country. These sessions focused on sensitising
and advisory support to the Ministry throughout the
officers of Customs, GST, and Income Tax formations year. This included the preparation of policy notes and
to the B-Ready framework and the broader objective of concept papers, analytical support during the Budget
improving taxpayer experience without compromising cycle, research studies and sector-specific taxation
revenue integrity. assessments, and briefing notes for inter-ministerial
groups and committees. The unit also developed data
On the international research front, TPRU
dashboards and statistical reports, prepared rapid-
engaged with the United Nations University World response notes on emerging tax issues, and undertook
Institute for Development Economics Research international comparisons and best-practice reviews.
(UNU-WIDER), Helsinki. A series of online meetings were Collectively, these activities supported informed
held to explore potential areas of collaboration, including decision-making, strengthened coordination between
applied tax policy research, inequality, development policy formulation and administrative implementation,
finance, and the use of administrative data for policy and reinforced TPRU’s role as a central knowledge and
evaluation. These engagements are expected to lay the analytical hub within the Department of Revenue.
groundwork for future joint research initiatives.
4.9.5 Future Plans
During the year, TPRU also contributed to policy
TPRU will continue to support the Government
analysis on international taxation through its involvement with clear and evidence-based advice on tax policy. It
in the Impact Analysis of Double Taxation Avoidance will help improve the quality of tax proposals in the Union
Agreements (DTAAs). The unit prepared analytical Budget and provide data-based inputs to the GST Council.
inputs as part of a study undertaken under the aegis of The unit will also work to improve coordination between
the DEA–DPIIT Task Force, focusing on the impact of direct and indirect tax authorities. A key focus will be on
reducing unnecessary compliance burdens and ensuring
DTAAs on foreign investment flows. This work involved
that tax policies keep pace with new technologies and
examining treaty structures, investment patterns, and
global practices.
emerging international tax norms, with a view to informing
future treaty negotiations and tax policy design. Under the GST Next-Generation Reforms, TPRU
will address long-standing issues such as the inverted
The unit’s work in indirect taxation and GST
duty structure and work towards a simpler and more
reforms remained a key pillar of its activities. TPRU trade-friendly E-Way Bill system using risk-based and
undertook multiple analytical studies aimed at improving technology-driven solutions. It will study the impact of
GST compliance and addressing structural challenges. blocked input tax credits and review special schemes like
Research on Online Information and Database Access the composition scheme. A new GST Equity Dashboard
or Retrieval (OIDAR) services and the import of services will be developed to track fairness in revenue sharing
between the Centre and States.
resulted in recommendations for definitional clarity and
for integrating remittance reporting with income-tax data, TPRU will also study the next phase of GST,
thereby strengthening revenue assurance. To address especially its impact on small businesses and start-ups.
persistent gaps in B2C transactions, TPRU proposed In addition, it will review corporate tax rules, international
the expanded use of e-invoicing and recommended tax practices, and tax treaties. The unit will promote the
166Department of Revenue III
use of new technologies and support transparent and appeal drastically. Disposal of the appeals in the current
participatory budgeting. year has been highest so far since establishment of the
Appellate Tribunal.
4.9.6 Conclusion
4.10.1.4 Further, to provide more ease and flexibility to
Overall, the work undertaken during 2025–26
the appellants & respondents, facility of e-filing has been
reflects TPRU’s continued evolution as a central analytical
introduced.
and coordination hub within the Department of Revenue.
Through sustained engagement with domestic and 4.10.2 Competent Authority under SAFEMA/ NDPSA
international stakeholders, robust empirical analysis,
4.10.2.1 The Smugglers and Foreign Exchange
and proactive support to policy and administrative
Manipulators (Forfeiture of Property Act, 1976
processes, the unit has contributed to strengthening
(SAFEM(FOP)A), provides for forfeiture of illegally
the credibility, coherence, and effectiveness of
acquired property of the persons convicted under the
India’s tax policy framework. Going forward, TPRU’s
Sea Customs Act, 1878, the Customs Act, 1962 and the
focus on next-generation GST reforms, international
Foreign Exchange Regulation Act, 1947 and Foreign
taxation, technological integration, and evidence-based
Exchange Regulation Act, 1974 and the persons
policymaking will further enhance its role in supporting detained under the Conservation of Foreign Exchange
growth, improving compliance, and ensuring that India’s and Prevention of Smuggling Activities Act, 1974. The
tax system remains efficient, equitable, and aligned with Narcotics Drugs and Psychotropic Substances Act, 1985
global best practices. (NDPSA) provides for tracing, freezing, seizure and
forfeiture of illegally acquired property of the persons
4.10 Competent Authority
convicted under that Act or any corresponding law of
4.10.1 The Appellate Tribunal under SAFEMA any foreign country, and those who are detained under
the Prevention or Illicit Traffic in Narcotic Drugs and
4.10.1.1 The Appellate Tribunal has been constituted
Psychotropic Substances Act, 1988 and Jammu and
under the Smugglers and Foreign Exchange Manipulators
Kashmir Prevention of Illicit Traffic in Narcotic Drugs and
(Forfeiture of Property) Act, 1976 (SAFEMA). It started Psychotropic Substances Act, 1988.
functioning w.e.f. 03.01.1977. It hears the appeals files
against the orders of Competent Authority under SAFEM/ 4.10.2.2 SAFEM(FOP) Act and NDPS Act provide for
NDPS Acts, Adjudicating Authority under PMLA, FEMA appointment of Competent Authorities for carrying out
and Prohibition of Benami Property Transactions Act forfeiture of illegally acquired properties. At present, the
Offices of Competent Authorities are located at Kolkata,
1988.
Chennai, Delhi, Mumbai and one unit is at Ahmedabad.
4.10.1.2 The Appellate Tribunal is located at New Delhi. SAFEM(FOP)A envisages establishment of an appellate
It consists of a Chairman (who is, or has been a Judge forum, namely the Appellate Tribunal to hear the appeals
of the Supreme Court or Chief Justice of a High Court) filed against the orders of Competent Authority under
and four members. The four members are appointed SAFEMA/NDPSA Act.
from among the officers of the Central Government
who have held the post of Additional Secretary to the 4.10.2.3 As per the latest amendments vide the
Government of India or any equivalent or higher post and Finance Act 2021 to the Prohibition of Benami Property
have performed judicial, quasi-judicial or adjudicating Transaction Act, 1988, the Competent Authority appointed
function for three years. under sub- section (1) of section 5 of the Smuggling and
Foreign Exchange Manipulators (Forfeiture of Property)
4.10.1.3 The appeals and allied petitions under the Act,1976 is the Adjudicating Authority to exercise
aforesaid acts are disposed of by the Benches as
jurisdiction, powers and authority conferred by or under
constituted as the Chairman may deem fit. During the
PBPT Act, 1988. PBPT Act was enacted to prohibit
period 01.04.2025 to 30.11.2025, a total of 2861 Appeals benami transactions where any person enters into a
(1702 in PMLA, 288 in NDPSA, Nil in SAFEMA, 68 in
benami transaction in order to defeat the provisions of
FEMA and 803 in PBPT) were received during the said
any law or to avoid payment of statutory dues or to avoid
period. A total of 2642 Appeals (1712 in PMLA, 118 in payment to creditors, the beneficial owners, benamidar
NDPSA, 05 in SAFEMA, 152 in FEMA and 655 in PBPT)
and any other person who abets or induces any person
were disposed of during the said period. Oldest petition
to enter into such benami transaction, shall be punishable
pending before Appellate Tribunal were of the year 1986,
under the said Act.
1991 etc. However, with proper adjudication and change
of the roster & benches, all the appeals filed till 2012 were 4.10.2.4 The details regarding the number of reports
disposed off except those in which stay on proceedings received by the Competent Authorities from enforcement
has been granted or remanded back with directions by the agencies, the number of show cause notices issued and
higher forums thereby reducing the average age of the the value of the property involved therein, the number of
167Annual Report 2025-2026
orders of forfeiture passed and the value of the property property disposed of, year-wise, from 2000-01 to 2025-
involved therein and the value of sale proceeds of the 26 [up to 30.11.2025] are given below:
FORFEITURE OF ILLEGALLY ACQUIRED PROPERTY UNDER NDPSA AND SAFEM(FOP)A BY COMPETENT
AUTHORITIES
Financial Number Number of Notices Number of Forfeiture Value of sale
Year of reports for Forfeiture issued Orders issued and proceeds of Property
received from and value of Property value of Property disposed off
Enforcement involved involved (in Rs. Lakhs)
Agencies Number Value (in Rs. Number Value (in
Lakhs) Rs. Lakhs)
1 2 3 4 5 6 7
2000-2001 491 159 2755 103 1662 201
2001-2002 228 89 7223.12 50 3202.39 107
2002-2003 995 72 1269.22 53 2498.60 18
2003-2004 1180 97 1547.75 25 977.01 51.6
2004-2005 1357 162 3251.64 25 650.93 73.67
2005-2006 607 214 10074.59 91 744.60 153.27
2006-2007 514 243 3017.27 112 868.57 2.63
2007-2008 507 210 12784.31 24 551.10 366.97
2008-2009 99 39 2065.88 28 1115.33 121.30
2009-2010 48 21 178.5 20 2153.20 Nil
2010-2011 128 19 1394.06 22 45.57 1123.49
2011-2012 112 17 690.85 22 391.58 191.27
2012-2013 40 13 3091.48 10 101.10 Rs.1294.28 lakhs + US
$3400
2013-2014 61 5 73.55 3 118.73 608.37
2014-2015 54 24 643.908 18 3253.55 166
2015-2016 92 22 1553.81 12 308.93 11.52
2016-2017 45 22 1232.95 19 2.35 778.44 and
$443783.19
2017-2018 40 7 77.92 3 39.47 1641.45
2018-2019 104 28 1243.69 4 94.26 918.93
2019-2020 105 36 7417.96 52 15,606.82 371.89
2020-2021 38 17 3549.17815 1 22500.00 3.70
2021-2022 50 2 25.66 4 42.58 536.7
2022-2023 36 22 1303.24 21 1170.99 554.21
2023-2024 70 20 550.13 13 975.59 937.95
2024-2025 350 36 3112.46 13 405.32 541.15
2025-2026 280 70 1778.19 7 259.57 1084.35
(01.04.2025 –
30.11.2025)
4.11 Customs, Excise & Service Tax Appellate are also decided by the Tribunal. The Tribunal is also
Tribunal (CESTAT) having appellate jurisdiction over Anti-Dumping disputes
under the Customs Tariff Act and is heard by the Special
4.11.1 Functions/ Working of the Organization Bench with the President presiding it. CESTAT also hears
appeals under the Central Sales Tax Act.
4.11.1.1 The Customs, Excise and Service Tax Appellate
Tribunal earlier known as Customs Excise & Gold 4.11.1.2 The Principal Bench of the Tribunal is situated
(Control) Appellate Tribunal is a quasi-judicial authority at Delhi and the regional benches are situated at
hearing appeals filed against the orders passed by the Mumbai, Kolkata, Chennai, Bangalore, Ahmedabad,
Commissioners of Customs & Central Excise under Chandigarh, Allahabad and Hyderabad. Each Bench
the Customs Act, 1962 and Central Excise Act, 1944. of the Tribunal consists of a Judicial Member and a
Service Tax appeals filed under the Finance Act, 1994 Technical Member.
168Department of Revenue III
4.11.1.3 The Tribunal is headed by the President who 4.11.1.5 To expedite the disposal of small cases with
is a retired Judge of a High Court. There are 16 posts of financial stake upto Rs. 50,00,000/- ( Fifty Lakh Rupees),
Members (Judicial) and 16 posts of Members (Technical). wherein no question of rate of duty or valuation is involved,
Single Member Bench is constituted. The Tribunal is also
At present, all the 32 posts of Members are working in
the final appellate authority hearing appeals from the
full strength.
orders of the Commissioner (Appeals). Appeals from the
orders passed by the Tribunal are filed before the Hon’ble
4.11.1.4 Difference of opinion among the Members
Supreme Court on classification and valuation issues as
in a Bench is resolved by nominating a Third Member
they have all India ramifications.
and thereafter majority decision is passed. Whenever
differing decisions on a single issue is passed by co- 4.11.2 Highlights of the performance and
achievements during the year
ordinate benches of the Tribunal, the matter is referred
to a Larger Bench as constituted by President and Despite various constraints including several
a decision rendered by the Larger Bench is binding vacancies of subordinate staff and abolition of posts the
appeals are disposed off at consistent pace. A sample
in all Division Benches and subordinate adjudicating
statement showing institution and disposal of appeals of
authorities.
the current financial year is given below:
Total Pendency as on
Year Institutions Disposal
30.11.2025
April 2025 to November 2025 9578 10842 70850
4.11.3 Online filing of appeals by the department 4.11.7 The dynamic website of the Tribunal started
has achieved a milestone with adding of separate in January 2017 has been shut down due to its
dashboard for the respondent and taxpayers to view vulnerability. A new cloud based website using added
the status of appeals filed against them. All information security features has been developed by NIC which is
catering to growing needs of the litigant public. Cause
are uploaded on the website of the Tribunal proactively
lists are uploaded on weekly basis and Daily orders are
to ensure transparency and integrity in administration.
uploaded on daily basis. Final orders are uploaded as
All orders including daily orders of the Tribunal are also
soon as they are signed by the Members. All information
uploaded besides real time display of item number
concerning the Tribunal are available as required by
taken by the Bench which is available both in the
DOPT O.M. No. 1/6/2011 dated 15/04/2013. Steps
website and display boards installed in the Tribunal
for online filing of appeals by the assesse has been
premise. Online filing of appeals by the tax payers undertaken by the NIC.
also started from 15.11.2025. By mid 2026 the Tribunal
4.11.8 The Tribunal is trying to strictly adhere to the
is poised to become paperless with e-court set up
provisions of FRBM Act (Fiscal Responsibility & Budget
already in place. Virtual hearing is also taking place in
Management Act). All expenditures are limited to the
all benches of the Tribunal regularly.
budget allocated for the Tribunal. Whenever a Member is
4.11.4 The whole north eastern region is placed under sent on tour, though they are entitled for travel by business
the jurisdiction of Kolkata Bench. However, the indirect class flights, the Members are requested to travel by
economy class to which they oblige as part of austerity
tax litigation from N.E. region is relatively less.
measures. In spite of escalation in prices of various items/
4.11.5 All facilities as required by the Government in services and the function of additional benches, the
respect of weaker sections including differently abled and expenditure is restricted to the granted ceiling. Sincere
SC/ST are strictly followed and extended to the eligible efforts are being done to control the expenditure with
candidates/Staff. financial propriety and reasonableness.
4.11.6 All facilities are being extended to female 4.11.9 Implementations of the Right to Information
employees of this Tribunal as per O.M. No.13018/4/2009- Act, 2005
Estt.(L) dated 08/07/2009 of DOPT. To redress the The Public Information Officer and the Appellate
grievances of women, an internal complaint committee Authority have been nominated by the Public Authority
under the chairperson Hon’ble Rachna Gupta, Member in All Benches of the Tribunal, and they are acting in
(J), CESTAT, has been constituted. So far, no complaint accordance to the provisions of the Right to Information
has been received by the committee. Act, 2005, in dispensing the information. All RTI
169Annual Report 2025-2026
applications and orders including orders of the Appellate Body by the Secretary (Revenue), Secretary (Economic
Authority are uploaded on the website. Affairs), and the Chief Economic Adviser, Ministry of
Finance.
4.12 Goods and Services Tax Appellate Tribunal
(GSTAT)
4.13.3 In addition, the Governing Body includes:
The Goods and Services Tax Appellate Tribunal One nominee from NITI Aayog, one nominee from
(GSTAT) is the second Appellate Authority under the the Reserve Bank of India, three nominees from the
GST laws and consists of the Principal Bench located in sponsoring State Governments, one nominee from ICICI
new Delhi, along with 31 State Benches across various Bank, one nominee each from FICCI and ASSOCHAM,
locations in India. The web application for filing of
three eminent economists, three heads of collaborating
appeals in GSTAT has been inaugurated by the Hon’ble
research institutions, two members co-opted by the
Union Finance Minister on 24th September, 2025. The
Governing Body, The Director of the Institute (ex officio)
tribunal has thus been operationalised and has been
implemented in 100% virtual/e-court mode. Filing of and One Professor of the Institute, nominated by rotation
appeals in the portal has already begun. In addition to for a period of one year.
the above, appointment of Members and initial staff to
The Chairman of CBDT and Chairman of CBIC
begin operations has also been completed and similarly,
buildings and infrastructure has been finalized at majority serve as special invitees to the Governing Body.
of the locations. The hearing of cases has already begun
4.13.4 There is an Academic Committee to advise
and is being carried out from temporary locations where
the Director. The Academic Committee consist of the
finalized premises are not completely operational.
Director as Chairperson, all Professors as Members, the
4.12.2 The President (Level-18), 50 Judicial Member Professor representing the Governing Body (by rotation)
(Level-17), 29 Technical Member (Centre) (Level-17) and
as the Convenor, and one Associate Professor and one
12 Technical Member (State) (Level-17) have joined.
Assistant Professor (by rotation on the basis of seniority)
4.12.3 On the supporting staff side, 192 officers for a term of one year.
comprising from the level of Upper Division Clerk
(Level-4) to Registrar (Level-13) have been appointed 4.13.5 NIPFP has undertaken the following projects
on deputation basis. Apart from these, 9 Group ‘C’ posts related to the North-Eastern Region and Sikkim:
have been filled through other mode. Recruitment for the
other posts are in process. Government of Sikkim:
4.12.4 On the infrastructure side, the Principal Bench, NIPFP is conducting a study on the Preparation of
GSTAT has been functional since 2024. The state the Medium-Term Fiscal Plan (MTFP) for the period 2024-
benches have been opened on 21st January, 2026 25 to 2026-27 and the Evaluation Report of Compliance
in temporary locations. The following benches have to Provisions of the Sikkim FRBM Act for Fiscal Years
been fully functional viz, Thane, Guwahati, Kolkata
2021-22 and 2022-23.
and Vijaywada, with the other benches operating from
temporary locations. Fully functional offices would be Government of Tripura:
ready by June, 2026.
NIPFP is undertaking a study on Possible
4.13 National Institute of Public Finance and Policy
Measures for Mobilization of Additional Resources
(NIPFP)
for Tripura and Restructuring of Public Sector Units in
4.13.1 The National Institute of Public Finance and Tripura.
Policy (NIPFP) is a premier research organisation
dedicated to high-quality research, policy advocacy and Government of Assam:
capacity-building in the field of public finance and public
NIPFP is conducting a study on Possible Ways
policy. Established in 1976 as an autonomous institution
to Enhance Revenue Generation for the State of Assam.
under the Societies Registration Act, 1860, the Institute
has made significant contributions to policy reforms
4.13.6 Initiatives undertaken for the welfare of
across all levels of the Government of India. Through
Persons with Disabilities and SC/ST as well as other
its research, advocacy and training initiatives, NIPFP
weaker sections of society
continues to support evidence-based policymaking and
strengthen public finance systems.
Action to fill up the posts reserved for SC/ST/OBC
4.13.2 The Governing Body of the Institute is chaired categories has been taken, and the posts have been filled
by an Economist of Eminence and is presently led by Dr. accordingly. For persons with disabilities, appropriate
Urjit Patel, former Governor of the Reserve Bank of India. provisions such as ramp and accessible toilet facilities
The Government of India is represented on the Governing have been made in our building.
170Department of Revenue III
4.13.7 Initiatives relating to Gender Budgeting and Application), Department of Revenue, New
Empowerment of Women Delhi. The revisionary powers of the Central
Government were being exercised by a Joint
NIPFP has undertaken research on the subject and has
Secretary, in the Department of Revenue,
conducted policy dialogues at national and international
Headquarters (being a technical post under IRS
fora, including UN organisation.
(C & CE), till July, 2017.
4.14 Revision Application Unit
b) In March, 2016, the Hon’ble Punjab and Haryana
4.14.1 Historical Background of Revision Application: High Court, in the matter of NVR Forgings vs.
Union of India {2016 (335) ELT 679}, held that a
4.14.1.1 Under the scheme operative till 10.10.1982,
revisionary order passed by the Joint Secretary,
the appeal against the orders of Commissioners (then
who is in the same rank as the Commissioner
called Collectors), of Customs & Central Excise lay with
(Appeals), cannot be sustained. This order of
the Central Board of Excise & Customs (now CBIC).
As far as the appeals against the orders passed by the the Hon’ble Punjab and Haryana High Court has
authorities below the rank of the Collectors (now called been upheld by the Hon’ble Supreme Court as
Commissioners), were concerned, the same were reported in 2017 (348) ELT A-82. The Hon’ble
required to be filed before the appellate Collectors of Madras High Court and Hon’ble Gujarat High
Customs & Central Excise. Court have also taken a similar view in the matter.
Therefore, the post of Revisionary Authority was
4.14.1.2 The erstwhile Section 131 of the Customs Act,
upgraded.
1962 and Section 36 of the Central Excise & Salt Act,
1944, empowered the Central Government to revise the c) Pursuant to the aforesaid judgment of the Hon’ble
orders passed by the CBEC and appellate Collectors in High Court, sanction of the competent authority
exercise of their appellate jurisdiction. At the Government was accorded for temporary up-gradation of an
level, the Secretary (Revenue) or Special Secretary
existing post of Joint Secretary and the newly
decided upon Revision Applications against orders
created post of Director in Revision Application
passed by the CBEC, and the Additional Secretary or
Unit, to the level of Additional Secretary, as
Joint Secretary dealt with the applications against the
technical posts, and, consequently, two posts of
orders passed by the appellate Collectors of Customs &
Principal Commissioner, were reduced from the
Central Excise and executive Collector of Customs and
cadre strength of IRS (C&CE), vide Department
Central Excise.
of Revenue’s Sanction Order No. 160/2017
4.14.1.3 The Finance (No.2) Act, 1980 introduced a dated 19.07.2017. Pursuant thereto, one post
new system by establishing the Appellate Tribunal. The
of A.S. (R.A.) each was created at New Delhi
appellate jurisdiction of CBEC and Revisionary jurisdiction
and Mumbai, vide the Department of Revenue’s
of the Central Government were abolished w.e.f.
Office Order No. 202/2017 dated 20.07.2017.
11.10.1982, except a few residual transitional provisions
and the Customs, Excise and Gold Appellate Tribunal d) Till recently, there were two Revision Application
(then known as CEGAT, but now commonly known as Units, situated at Delhi and Mumbai which deal
CESTAT) was set up w.e.f. 11.10.1982. with the Revision Applications filed before Central
Government in the above specified matters
4.14.1.4 The Finance Act, 1984, revived the Revisionary
as per the specified geographical jurisdiction.
powers of the Central Government in specified type of
These Revision Application Units are presently
cases. On the Customs side, Section 129DD read with
headed by the Principal Commissioner (Revision
proviso to Section 129(A) of the Act, empowered Central
Application) and ex-officio Additional Secretary to
Government to revise the appellate orders passed by the
the Government of India who consider and decide
Commissioner of Customs (Appeals). On Central Excise
the revision applications after following the due
side, Section 35 EE read with first proviso to sub-section
process of law. The work was distributed between
(ii) of Section 35B of the Central Excise Act, 1944 gave
the two Revisionary Authorities on geographical
review and revisionary powers to Central Government to
basis i.e., the work relating to North, East and
revise the orders passed by the Commissioner of Central
south Zones was handled in R.A. Unit, New
Excise (Appeals).
Delhi while that relating to West was handled
4.14.1.5 in R.A. Unit, Mumbai. The arrangement was
a) Since inception there was only one Revision modified in 2022 vide order No. 191/2022, dated
Application Unit having its office at Delhi which 28.07.2022, the cases pertaining to the South
was headed by the Joint Secretary (Revision Zone were reallocated to R.A. Unit New Delhi with
171Annual Report 2025-2026
an objective to equitably distribute the pending 4.14.2.4 Section 35EE read with proviso to Section
applications for faster disposal. The arrangement 35B(1) of the Central Excise Act, 1944 empowered the
was further modified in 2025 vide Office Order Central Government to annul or modify the appellate
No. 164/2025 dated 13.10.2025, the jurisdiction orders passed by Commissioner of Central Excise
of Additional Secretary(R.A.) , Mumbai has been (Appeals), if such orders relate to:-
assigned to Additional Secretary(R.A.), Delhi (a) a case of loss of goods, where the loss occurs in
transit from a factory to a warehouse or to another
4.14.2 Formation, function and working of the
factory, or from one warehouse to another, or
Revision Application Unit
during the course of processing of the goods in
Introduction: a warehouse or in storage, whether in a factory
or in a warehouse;
4.14.2.1 The Revision Application Unit of the Department
of Revenue, Ministry of Finance, Government of India (b) a rebate of duty of excise on goods exported
deals with the Revision Applications filed before Central to any country or territory outside India or on
Government in specified Customs and Central Excise excisable materials used in the manufacture
matters under section 35 EE of Central Excise Act, 1944 of goods which are exported to any country or
and section 129 DD of Customs Act, 1962. The revision territory outside India;
applications filed either by parties or department against
(c) goods exported outside India (except to Nepal or
the orders of Commissioners of Customs, Central Excise
Bhutan) without payment of duty;
and Service Tax (Appeals) are considered and decided
by Additional Secretary (RA) after following the due (d)* credit of any duty allowed to be utilized towards
process of law. payment of excise duty on final products under
the provisions of the Central Excise Act or the
4.14.2.2 Normally, against the order passed by the
rules made thereunder and such order is passed
Commissioner (Appeals), the appeal lies before Tribunal
by the Commissioner (Appeals) on or after the
i.e. CESTAT, but in following categories of cases, against
date appointed under Section 109 of the Finance
the order passed by the Commissioner (Appeals),
(No.2) Act, 1998.
the Revision Application is filed before the Additional
Secretary (Revision Application) (hereinafter also referred
Note: *indicates that this clause has not yet come into
to as AS(RA):-
force as it is to be effective on or after the date to be
appointed under section 109 of the Finance Act, 1998
A. Customs Cases:-
and no such date has been notified so far.
(Specified in the first proviso to sub-section (1) to Section
129A of the Customs Act, 1962) C. Service Tax matters:-
4.14.2.3 Section 129DD read with proviso to Section 4.14.2.5 The provisions of the Section 35EE of the
129 A(1) of Customs Act, 1962 empowered the Central Central Excise Act, 1944, which deals with revision by the
Government to revise or review the appellate orders Central Government, has been made applicable to the
passed by Commissioner of Customs (Appeals), if such Chapter V of the Finance Act, 1994 dealing with Service
order related to:- Tax. In the Finance Act, 2015, the Section 86 has been
(i) any goods imported or exported as baggage; amended to prescribe that remedy against the order
passed by Commissioner (Appeals), in a matter involving
(ii) any goods loaded in a conveyance for importation
rebate of Service Tax, shall lie in terms of section 35EE
into India, but which are not unloaded at their
of the Central Excise Act, 1944. Further, it has also been
place of destination in India, or so much of the
provided that all appeals relating to rebate of service tax
quantity of such goods as has not been unloaded
and filed in Tribunal after the date the Finance Act, 2012
at any such destination if goods unloaded at such
came into effect and pending on the date of assent of
destination are short of the quantity required to
the Finance Bill, 2015 by the President (i.e. 14.05.2015)
be unloaded at that destination.
shall be transferred and dealt in accordance with section
(iii) payment of drawback as provided in Chapter X
35EE of the Central Excise Act. In other words, in such
of the Customs Act, 1962, and the rules made
cases, against the order passed by the Commissioner
thereunder.
(Appeals), the revision applications are required to be
B. Central Excise Cases:- filed before the AS(RA).
(Specified in proviso to sub-section (1) to Section 35B of 4.14.2.6 The text of two provisos inserted in sub-section
Central Excise Act, 1944) (1) of Section 86 of the Finance Act, 1994 vide section 117
172Department of Revenue III
of the Finance Act, 2015 (with effect from 14.05.2015), b) If the Central Government is satisfied that the
are as under: applicant was prevented by sufficient cause
from presenting the application within the
“Provided that where an order, relating to a
aforesaid period of three months, it may allow
service which is exported, has been passed under section
85 and the matter relates to grant of rebate of service it to be presented within further period of three
tax on input services, or rebate of duty paid on inputs, months. Thus, the Revisionary Authority has
used in providing such service, such order shall be dealt power to condone the delay upto three months
with in accordance with the provisions of Section 35EE in deserving cases.
of the Central Excise Act, 1944; Provided further that all
4.14.3.3 Filing of Revision Application:-
appeals filed before the Appellate Tribunal in respect of
matters covered under the first proviso, after the coming a) Sub-section (3) of 129DD of the Customs Act,
into force of the Finance Act, 2012, and pending before 1962 and Section 35EE of the Central Excise Act,
it up to the date on which the Finance Bill, 2015 receives 1944 stipulates that a Revision Application (by the
the assent of the President, shall be transferred and dealt
parties) shall be in such form and shall be verified
with in accordance with the provisions of Section 35EE
in such manner as may be specified by rules
of the Central Excise Act, 1944.”
made in this behalf and shall be accompanied
4.14.3.1 Procedure for filing Revision Application by a fee of two hundred rupees where duty and
a) The aggrieved party can file a revision application interest demanded and fine or penalty in the case
under sub-section (1) of Section 129DD of the to which application relates is one lakh rupees
Customs Act, 1962 and under Section 35EE of or one thousand rupees where duty and interest
the Central Excise Act, 1944 for annulment or demanded and fine or penalty in the case to
modification of the orders of the Commissioner which application relates is more than one lakh
(Appeals).
rupees. No such fees shall be payable in case
b) If the Commissioner of Customs or Principal of application filed by Department.
Commissioner of Customs is of opinion that
b) The form and manner for filing of revision
order passed by the Commissioner (Appeals)
application before the revisionary authority has
is not legal and proper, then he may direct the
been provided in Customs (Appeals) Rules,
proper officer to make an application on his behalf
1982 (Notification No. 212-Customs dated 10th
to the Central Government for revision of such
order. Thus, the Department files application to of September 1982)/Central Excise (Appeals)
the Revisionary Authority under sub-section (1A) Rules, 2001 (Notification No. 32-CE dated
of Section 129DD of the Customs Act, 1962 and 21.06.2001). As per Rules 8A and 8B of Customs
Section 35EE of the Central Excise Act, 1944. (Appeals) Rules 1982, the revision application
c) No case of Revision Application can be filed should be filed in prescribed Form CA-8 and
against the order passed by the Commissioner or as per sub-rule (2) of Rule 3 Central Excise
Principal Commissioner even though such order (Appeals) Rules, 2001 the revision application
is on the same subject as specified above. The should be filed in prescribed Form EA-8 in
appeal against such orders lies before CESTAT, duplicate alongwith equal number of copies of
not before the Principal Commissioner (RA) and
order passed by the Commissioner of Customs
ex-officio Additional Secretary to the Government
(Appeals) and relevant decision or order passed
of India. The application to Revisionary Authority
by the Customs officer and presented either
lies only against the order of Commissioner
in person to the Under Secretary Revision
(Appeals) involving the subjects specified above.
Application Unit, Government of India, Ministry of
d) The Revisionary Authority has discretion to refuse
Finance, Department of Revenue, New Delhi or
to admit an application in respect of order if the
sent by registered post addressed to such officer.
amount of duty or fine or penalty determined
by such order does not exceed five thousand c) As per Appeals Rules, the ground of appeal
rupees. and form of verification in application form shall
be signed by the applicant or his authorized
4.14.3.2 Time limit for filing of a Revision Application:-
representative.
a) A Revision Application should be filed within three
months from the date of the communication to d) The Central Government on its motion can annul
the applicant of the order of the Commissioner or modify any order referred to in sub-section (1)
(Appeals) against which the application is being to Section 129DD Customs Act, 1962 and Section
made. 35EE of the Central Excise Act, 1944.
173Annual Report 2025-2026
e) No order enhancing any penalty or fine can be the applicant alongwith deficiency memo in
passed by the Revisionary Authority in any case documents if any.
in which an order passed by the Commissioner • Notice is issued to respondent party for filing
(Appeals) has enhanced any penalty or fine in
counter reply. Thereafter, personal hearing is
lieu of confiscation. In other case, no order for
fixed/held in cases, in the order of seniority, on
enhancing any penalty or fine can be passed
first come first serve basis.
by the Revisionary Authority unless the person
• Out of turn hearings are allowed only in deserving
affected by the proposed order has been given
cases involving substantial revenue, recurring
notice to show cause against it within one year
issue resulting into multiplicity of cases, interest
from the date of the order sought to be annulled
liability, the issue is no longer res integra,
or modified.
passenger is going abroad and cases of financial
f) Where the Central Government is of opinion that
hardship.
any duty of Customs/Central Excise/Service Tax
• After completion of hearing, final revision order
has not been levied or has been short-levied, no
is issued by AS(RA).
order levying or enhancing the duty shall be made
under this section unless the person affected by
4.14.6 Appeal against Revision Order passed by
the proposed order is given notice to show cause
Additional Secretary (RA):
against it within the time limit specified in Section
a) The Revisionary Authority while passing the
28/Section 11A.
Revision Orders on behalf of Central Government
4.14.4 Conditions to be fulfilled for filing Revision follows the due process of law. There is no
Application before AS(RA): stipulation of the appellate authority against the
order passed by the Revisionary Authority.
The following are the essential conditions, which
need to be fulfilled, before filing appeal before Joint b) The Central Government is the highest authority
Secretary (RA):- in these revision applications, and therefore
orders passed by Central Government are final.
i) The order, which is being appealed against,
However, the applicants, aggrieved with the
should be passed by the Commissioner (appeals)
orders of Revisionary Authority have only option
and should be relating to issue/issues mentioned
of writ petitions before the High Court under
above.
Article 226 of Constitution of India.
ii) If, on the same subject as specified above, the
c) The Revisionary Authority becomes functus
order has been passed by the Commissioner of
officio after passing the final Revision Orders. It is
Customs/Central Excise, then appeal against
Jurisdictional Commissioner which contests writ
such orders shall lie to CESTAT and not before
petitions in the High Court or files writ petition in
AS(RA).
the High Court.
iii) The Government i.e. AS(RA) may refuse to
admit an application in respect of order where 4.14.7 The Revision Application Unit is directly
the amount of duty or fine or penalty determined responsible to Revenue Secretary.
by such order does not exceed five thousand
4.14.8 Performance
rupees.
From April, 2025 to November, 2025, 24 Revision
4.14.5 Procedure adopted for process of Revision
Applications have been disposed of by R.A. Delhi Unit.
Application in RA Unit:
• The Revision Application Unit receives the 4.15 Implementation of Official Language Policy
revision application in prescribed from EA-8/CA-8
4.15.1 Implementation of official language policy
filed by department as well as parties.
There is a full-fledged Official Language Division
• The stipulated time for filing such applications
under the Department of Revenue which is entrusted with
is three months from the date of communication
the implementation of the Official Language Policy of the
or order-in-appeal. The delay upto three months
Government of India. This division has a sanctioned post
can be condoned by Central Government in
of Director (Official Language) and this division presently
deserving cases.
is functioning through three Hindi sections. Each section
• The revision application Unit on receipt of revision is headed by an Assistant Director (Official Language)
applications issues the acknowledgement to and supervised by two posts of Deputy Director (Official
174Department of Revenue III
Language). At present, the post of Director (OL), one post India to advise on the smooth implementation of the
of Assistant Director (OL), five posts of Senior Translation Official Language Policy of the Government of India.
Officer and one post of Junior Translation Officer are lying These Committees are headed by the Minister of the
vacant. concerned Ministry/Department and are required to be
constituted in accordance with the guidelines framed on
The Division is involved with the work of
the recommendation of the Central Hindi Committee,
implementing official language policy of the Union and
Chaired by the Honourable Prime Minister of India.
the timely follow-up action on the orders and instructions
issued by the Department of Official Language, Ministry For this purpose, the Joint Hindi Advisory
of Home Affairs. The entire translation work of the Committee of the Department of Revenue, Department
Department from English to Hindi and vice-versa has also of Expenditure, Department of Investment and Public
been carried out and ensured by the Official Language Asset Management and the Office of the Comptroller and
Division. Auditor General of India under the Ministry of Finance
Department of Revenue is a notified office under has been re-constituted. And the Resolution is published
Rule 10(4) of the Official Language Rules, 1976. During on 27 June, 2025. Meeting of the reconstituted Joint
the year 2025, 1085 offices of the Central Board of Hindi Advisory Committee is proposed to be held soon.
Direct Taxes and 27 offices the Central Board of Excise
and Customs were notified under the Rule10(4) of the 4.15.4 Inspection by Parliamentary Official
Official Language Rules, 1976. Language Committee
The Parliamentary Committee on Official
4.15.2 Performance of Official Language Division
Language inspected 40 subordinate offices of the
during the year 2025
Department of Revenue this year. Senior officers and
All documents related to the Central Board of translation officers of the Rajbhasha Division extended
Excise and Customs, Central Board of Direct Taxes and their wholehearted support during the inspection of
Revenue Headquarters were issued in bilingual form these offices.
under Section 3 (3) of the Official Language Act, 1963;
4.15.5 Departmental inspection related to official
All Gazette notifications, answers to language
parliamentary questions and assurances related to the
Central Board of Excise and Customs, Central Board To take stock of the progress made in the use
of Hindi in the offices during the period under report, 04
of Direct Taxes and Revenue Headquarters were made
subordinate offices under the control of the Revenue
available in diglot form;
Department Headquarter were inspected by the officers
Cabinet Notes to the Cabinet, Action Taken of the Rajbhasha Division and thereafter suggestions
Report (ATR) on the Report of the Comptroller and were also given to increase the progressive use of Hindi
Auditor General, Annual Report of the Ministry of in government work.
Finance and Outcome Budget were translated into Hindi
and made available in bilingual form; 4.15.6 Celebrating Hindi Fortnight (Pakhwada)
Agreements signed with many countries to As per the instructions of the Department of
Official Language, Ministry of Home Affairs, this year›s
prevent double taxation were also translated into Hindi;
Hindi Day celebration was organized mainly at Gandhi
Timely circulated all orders and circulars Nagar, Gujarat under the chairmanship of Honourable
related to Official Language implementation from the Minister of Home Affairs, Shri Amit Shah on 14-15
Department of Official Language to all the sections of September, 2025. Officers/officials of the Rajbhasha
the Revenue Department (HQ) and the offices under the Division of the Revenue Department and other officials
control of both the Boards; from the department also participated in this function.
Detention orders issued by the COFEPOSA Hindi Fortnight, 2025 was successfully
section and their reasons were translated into Hindi. organized in the Department from 14 September to
30 September 2025. During this period, a total of 05
The letters received under the Right to
competitions were organized aiming to increase the use
Information Act, 2005 were made available in bilingual
of the Official Language Hindi in the routine official work.
form.
During the fortnight, various competitions
4.15.3 Meetings of Hindi Advisory Committee
like Essay Writing, Extempore in Hindi, Crossword
Hindi Advisory Committees have been set competition, Hindi Translation and Official Language
up in Ministries/Departments of the Government of Quiz (written) and Hindi dictation and General
175Annual Report 2025-2026
Knowledge competition (for MTS only) were conducted. (c) The committee under the chairmanship of Joint
The participants securing first, second and third positions Secretary (CBIC) held meetings on 24.06.2025
were awarded cash prizes of Rs 5000/- (first prize), Rs and 18.09.2025
3000/- (second prize), Rs 2000/- (third prize) and seven
The minutes of the said meetings were issued to
incentive awards of Rs 1000/- in each competition.
all sections for compliance.
4.15.7 Cash Incentive Scheme to encourage
4.15.9 Workshops organized to promote the use of
original noting/ drafting and Dictation in Hindi
Official Language
As per the instructions of the Department of During the period 2 Hindi workshops on
Official Language, incentive award schemes (full time) 10.09.2025 and 09.12.2025 were organized for the officers
were implemented in the Department and subordinate and employees of Department Headquarters, CBIC and
offices every year for the officers and employees for CBDT on various aspects of the Official Language Policy
carrying out official work (noting/drafting) in Hindi and of the nation. A seminar was also organized on the 10th
for dictation by the officers in Hindi. of June 2025.
Under this scheme, eight entries received from 4.15.10 Training
the officials of various sections of the Department of
Non-Hindi speaking officials are nominated for
Revenue were awarded. Apart from this one Officer
language training under the Hindi Teaching Scheme.
of the department was awarded for Dictation in Hindi
Besides that training in Hindi typing is also imparted to
incentive scheme.
those Stenographers/Secretarial officials for whom the
knowledge of Hindi typing is mandatory. Three officials
4.15.8 The Official Language Implementation
have already completed Hindi typing training in July
Committee
2025 and six of them are under training for the training
session ending in January 2026. The language and typing
To ensure effective implementation of the Official
training helps in achieving the targets of correspondence
Language Policy of the Government of India and to review
and noting set by the Rajbhasha Vibhag (Department of
its implementation along with overcoming the hurdles
Official Language).
of the Sections/Subordinate Offices in implementing
the Official Language Policy, three Official Language 4.15.11 Circulation of the Annual Program issued
Implementation Committees are constituted in the by the Department of Official Language, Ministry of
department. The committee under the chairmanship of the Home Affairs
Joint Secretary (Revenue) reviews the progressive use of
The copies of the Annual Program 2025-26
the official Language in the Revenue Headquarters while
issued by the Department of Official Language, Ministry
the committees headed by the Joint Secretary(CBDT)
of Home Affairs, New Delhi was circulated to all the
and Joint Secretary(CBIC) review the use of Official
offices and sections under the Department of Revenue
Language in the Central Board of Direct Taxes and
Headquarters. The Annual Program is issued every year
Central Board of Indirect Taxes and Customs respectively.
in which targets are set for the promotion and progressive
Meetings of these committees are held every quarter
use of Hindi.
in accordance with the instructions of the Ministry of
Home Affairs. Following are the details of the meetings 4.16 Swachh Bharat Campaign
of the Departmental Official Language Implementation
The Department of Revenue, Ministry of Finance,
Committee held this year:-
along with its attached and subordinate offices and
(a) The committee under the chairmanship of field formations, is fully geared up to participate in the
Joint Secretary (Revenue) held meetings on upcoming Special Campaign 5.0, being conducted
11.06.2025, 27.08.2025 and 11.12.2025 across Government of India departments from 2nd
October to 31st October 2025. The campaign is being
(b) The committee under the chairmanship of Joint
spearheaded by the Department of Administrative
Secretary (CBDT) held meetings on 02.05.2025,
Reforms and Public Grievances (DARPG) to further
16.9.2025 and 13.11.2025
176Department of Revenue III
institutionalize Swachhata (cleanliness) and ensure timely and accountability to further enhance administrative
and effective disposal of pending references. efficiency and cleanliness across all levels.
As part of the preparatory phase, which 4.17 RTI Cell
commenced on 15th September 2025, all organizations
The following steps were taken to facilitate
under the Department of Revenue – including the Central
dissemination of information under the provisions of the
Board of Direct Taxes (CBDT), Central Board of
Right to Information Act in Revenue Headquarters:
Indirect Taxes and Customs (CBIC), Enforcement
i. To facilitate contactless and paperless filing of
Directorate, Financial Intelligence Unit – India, and
RTI Application/Appeals, the RTI online portal
others – have undertaken thorough reviews to identify
(www.rtionline.gov.in) has been very useful in
Pending MP/State Government references, Public
this regard. The replies to the RTI Application
grievances, Cleanliness campaigns in offices and public-
and Appeals are uploaded on the portal which
facing areas, Records for digitization & weeding out and
may be viewed exclusively by the Applicant/
Disposal of scrap and obsolete items. Each organization
Appellant. To make system of transfer of offline
has designated nodal officers to ensure focused action
RTI Application to other Public Authorities, RTI
during the implementation phase. Efforts are underway
applications are lodged on the RTI Request
to sensitize staff and ensure enthusiastic participation at
and Appeal Management Information System
all levels. The Department is also emphasizing the use of
so that it can be transferred immediately to the
technology to reduce physical records, promote paperless
concerned Public Authority.
work environments, and enhance citizen-centric service
delivery. ii. The Department continued efforts towards to
bring transparency and effective governance, we
The Department of Revenue had actively
have placed information in the public domain on
participated in Special Campaign 4.0 , significantly
a proactive disclosure basis which is available on
contributing to the reduction of pendency and promoting
the Department’s website (https://dor.gov.in/rti/
a culture of cleanliness. During the period from December
revenue-headquters) as required under section
2024 to August, 2025, the DoR disposed of a total of
4(1) of the RTI Act.
38 InterMinisterial Reference (Cabinet Notes, CoS
Note, EFC Memo etc.), 28 VIP references, 7043 Public iii. In regard to the transparency Audit, the self-
Grievances, 8 Public Grievances Appeal. Further, a appraisal form submitted has been audited by
total of 9603 physical files were weeded out after being the National Institute of Public Finance & Policy.
reviewed. Furthermore, with the scrap disposal, revenue
iv. The following table indicates the number of
of Rs, 1,05,000/- was also generated.
online RTI Applications and Appeals received
Special Campaign 5.0 reaffirms the Department in the financial year 2025 from 01.04.2025 up to
of Revenue’s commitment to cleanliness, transparency, 31.12.2025.
Type No of Applications No of cases Request Request/Appeals
received during the year transferred to rejected accepted.
2025(Apr-Dec) including other Pas u/s 6(3)
the cases transferred to + returned to the
other Public Authorities Applicant
Offline RTI 697 580 - 117
Applications
Online RTI 8605 7449 313 843
Applications
Offline Appeal 39 0 0 39
Online Appeal 164 89 0 75
Total fee received offline u/s 7(1) is 5175/-
Additional fee received offline u/s 7(3) is Rs.770/-
177Annual Report 2025-2026
5. INTEGRATED FINANCIAL UNIT (IFU) (b) Procurement of goods and services including
procurement of anti-smuggling equipment i.e.
Integrated Finance Division of the Department of
scanners and marine vessels.
Revenue is under the direct supervision of Additional
Secretary & Financial Advisor (Finance). There are (c) Proposals for deputation/tours/training
three units dealing with budget, finance and expenditure
abroad of officers of the Department, CBDT,
management in respect of the grants pertaining to
CBIC and their field offices.
Department of Revenue, Direct Taxes and Indirect
Taxes. Director (Finance), D/o Revenue/CBIC and (d) Restructuring proposals, redeployment of
Director (Finance), Direct Taxes assist the Additional personnel in field formations and constituent
Secretary & Financial Advisor (Finance). units.
5.1 Activities undertaken by the Integrated
(e) Comprehensive Computerization of
Finance Unit:
Department of Revenue, its field formation
All offices under the Department of Revenue, including Customs and GST formations and
which inter-alia include Revenue headquarters, Central Income Tax field formations.
Board of Direct Taxes (CBDT) including its field offices
(f) Proposals from Committee of Management
and various Directorates, Central Board of Indirect Taxes
(COM), D/o Revenue which oversees the
& Customs (CBIC) including its field offices and various
functioning of Government Opium & Alkaloid
Directorates, Narcotics Control Division, Central Bureau of
Works (GOAWs).
Narcotics, Chief Controller of Factories, Central Economic
Intelligence Bureau, Financial Intelligence Unit (FIU-IND), (g) Grants-in-aid to National Institute of Public
Goods & Service Tax Council Secretariat, Tax Policy Finance & Policy and Central Revenue
Research Unit, Enforcement Directorate, Customs, Excise Sports & Cultural Board.
& Service Tax Appellate Tribunal (CESTAT), Settlement
(h) Proposals for Delegated Investment Board
Commission (IT/WT), Authority for Advance Rulings,
(DIB), Public Investment Board and Cabinet
Appellate Tribunal for Forfeited Property, Adjudicating
Committee on Economic Affairs (CCEA)
Authority under PMLA, Income Tax Ombudsman etc.
relating to comprehensive computerization
are serviced by the three units of Integrated Finance
plan of CBDT/CBIC, capital expenditure
Division in terms of Budget formulation, fund allocation,
involving construction of office/residential
expenditure monitoring & control, enforcing economy,
complexes and readymade office/residential
scrutiny and sanction of expenditure proposals beyond
buildings of all the three Departments.
the delegated powers of field offices.
5.2 Details of expenditure and financial proposals (i) Proposals received for sanction of financial
scrutinized and approved:
assistance from the Customs & Central
(a) Creation and continuation of posts, Excise Welfare Fund and Special Equipment
construction/purchase/hiring of offices, as
Fund. Revision of norms were finalized
well as residential accommodation for the
in respect of setting up of/refurbishing
field formations of Central Board of Indirect
of recreation/sports clubs, gymnasiums,
Taxes & Customs and Central Board of
Departmental Canteens, crèches for children
Direct Taxes, Department of Revenue and
its attached offices. of Departmental officials, guest houses and
178Department of Revenue III
cash award scheme for meritorious children (iii) Allocation and monitoring of the budget relating
with special emphasis on girl children and to advances, viz. House Building Advance,
children of group ‘D’ staff. Computer Advance etc.
(j) Proposals involving relaxation/interpretation (iv) Overall supervision of budgetary mechanism
of financial rules and all proposals requiring of various scrip-based schemes and liasioning
reference to the Department of Expenditure.
with Department of Revenue, Department
(k) The Integrated Finance Division has also of Commerce and Department of Textiles
been entrusted with the formulation of for operation/provisioning of funds for these
schemes of important expenditure proposals schemes.
from their initial stage.
(v) Implementation of Cash Management Plan as per
5.3 The expenditure budget/non-tax revenue receipts Monthly Expenditure Plan (MEP) and Quarterly
of Department of Revenue, Direct Taxes and Indirect
Expenditure Allocations (QEA) as envisaged
Taxes for BE 2025-26 was prepared. Tentative RE
by Budget Division of Department of Economic
2025-26 and BE 2026-27 ceiling has been communicated
Affairs, Ministry of Finance.
by the Budget Division, Department of Economic Affairs.
The details of RE 2025-26 and actual expenditure till (vi) Review of Monthly and Quarterly Expenditure
30.11.2025 and BE 2026-27 in respect of all the three
vis-a-vis budgetary allocations and MEP/QEA
grants are as below:
and report to Revenue Secretary and Expenditure
(` in crore) Secretary in compliance of the guidelines of the
Grant Gr. 2025-26 Actual 2025-26 2026-27
No. Expenditure Department of Expenditure, Ministry of Finance
till 30
November, for strict financial discipline.
2025
BE RE BE
(vii) Review of specific activities/developments of
D/o Revenue 35 133880.26 1534.46 15042.54 3126.42
Direct Taxes 36 10900.45 7006.49 12732.08 15306.57 Department of Revenue and report to Secretary
Indirect Taxes 37 42889.33 23267.45* 41496.11# 27682.63# (Expenditure) on monthly basis.
* Actual Expenditure till November, 2025 taken from DGHRD, as per the
(viii)Enforcement of instructions on economy in
details in e-lekha portal.
# The RE 2025-26 and BE 2026-27 figures are yet to be finalized by the expenditure by periodic review of expenditure and
Budget Division.
advisories to spending authorities for expenditure
5.4 Integrated Finance Division has taken the control in line with the economy instructions
following steps/initiatives in 2025-26:
issued by the Department of Expenditure.
(i) Preparation and submission of BE/RE and
(ix) Preparation and budgetary allocation for
DDG in respect of Grant No. 35 (Department of
Compensation to States/UTs for revenue loss on
Revenue), Grant No. 36 (Direct Taxes) and Grant
roll out of GST; Government Opium & Alkaloid
No. 37 (Indirect Taxes).
Works; Acquisition of residential and office
(ii) Follow up with the Department/Boards for the
accommodation; Strengthening of IT capability
settlement of audit objections, inspection reports,
for e-governance of CBIC, CBDT and Department
draft audit paras and reports of PAC/Standing
of Revenue; Acquisition of ships and fleets to
Committee and submission of replies to Audit
strengthen Marine capability & Acquisition of
Paras, Standing Committee of Finance, periodic
Anti-Smuggling equipment.
reports etc.
179180
Annual
Report
2025-2026
Representation of SCs/ STs/ OBCs
Annexure-I
Organization: Central Board of Direct Taxes (CBDT)
Group-wise representation of SCs, STs, OBCs, EWS upto 30.11.2025
Group Number of Employees (as on No. of appointments/Promotions made during the calendar year 2025 (i.e. 1.1.25 to 30.11.25)
31.12.2024)^
Appointment by Direct Recruitment Appointment by Promotion** Appointment by other
Methods
Total SC ST OBC EWS Total SC ST OBC EWS Total SC ST OBC EWS Total SC ST OBC EWS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Group ‘A’ 4347 780 395 680 11 180* 27 13 49 18 - - - - - N.A. N.A. N.A N.A. N.A.
Group ‘B’ 26584 4327 1820 4227 376 344 86 51 83 58 2252 345 155 269 4 1 1 0 0 0
Group ‘C’ 18859 3371 1426 5557 951 2859 545 264 1021 419 602 95 47 170 8 118 32 9 27 0
Total 49790 8478 3641 10464 1338 3383 658 328 1153 495 2854 440 202 439 12 119 33 9 27 -
* 180 ‘Offer of Appointments’ have been issued by CBDT to the candidates selected through Civil Services Examination(CSE) 2024 as on 19.11.2025.
These numbers are not included in column 2 to 6 above.
** A proposal for filling up 251 vacancies (incl. SC: 11 ; ST: 10) in the grade of ACIT for the vacancy years 2024 has been submitted in the UPSC on
12.09.2025. Date of DPC is awaited. However, 29 ITOs have been promoted as ACIT on ad-hoc basis against the vacancy year 2024 vide Office
Order No. 89 of 2025 dated 04.04.2025.
^ Including 313 ITOs (including SC & ST) were promoted as ACIT on regular basis against the vacancy years 2022 & 2023 vide Office Order No. 350
of 2024 dated 31.12.2024. Further, 168 ITOs (including SC & ST) were also promoted as ACIT on ad-hoc basis against the vacancy year 2024 vide
Office Order No. 354 of 2024 dated 31.12.2024.181
Department
of
Revenue
III
Annexure-I
Organization: Central Board of Indirect Taxes and Customs (CBIC)
Group-wise representation of Scheduled Castes, Scheduled Tribes, Other Backward Classes, Economically Weaker Section as on 01.01.2025
Number of Employees(as on
Group No. of Appointments/Promotions made during the calendar year 2024
01.01.2025)
Appointment by Direct
Appointment by Promotion Appointment by Other Methods
Recruitment
Total SCs STs OBCs EWS Total SCs STs OBCs EWS Total SCs STs OBCs EWS Total SCs STs OBCs EWS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Data not available with DGHRD and There is no Ex-cadre deputation of
Group -A 4197 791 428 526 9 14 1 1 0 0
may be sought from Ad.II Group A officers in CBIC
Group -B 36902 5921 3682 7504 1157 2525 468 231 742 335 1014 218 93 0 0 65 0 0 0 0
Group -C
(including
erstwhile 10149 2089 899 2651 412 909 149 72 318 94 225 49 19 0 0 0 0 0 0 0
Gr. D
posts)
Total 51248 8801 5009 10681 1578 3434 617 303 1060 429 1253 268 113 0 0 65 0 0 0 0182
Annual
Report
2025-2026
Annexure-I
Organization: Revenue Head Quarter
Number of Employees Number of appointments made during previous calendar year
Group By Direct Recruitment By Promotion By Other Methods
Total SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs OBCs
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Group A 232 43 15 23 - - - - - - - 17 1 1 1
Group B 416 77 60 111 - - - - 8 4 - - - - -
Group C 274 68 18 57 6 3 - 3 13 03 01 03 - - -
Total 922 188 93 191 6 3 - 3 21 7 1 20 1 1 1183
Department
of
Revenue
III
Annexure-I
Organization: Financial Intelligence Unit (FIU-IND)
Groups Number of Employees (as on Number of appointments made during the previous calendar year 2025 (i.e. 01.01.2025 to 30.11.2025)
31.12.2024)
By Direct Recruitment By Promotion By Other Methods
(on deputation)
Total SCs STs OBCs Total SCs STs OBCs Total SCs STs OBCs Total SCs STs OBCs
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Group A 25 09 - 04 - - - - - - - - 02 01 - -
Group B 05 02 - - 02 01 - - - - - - 01 01 - -
Group C 06 02 - 01 - - - - - - - - 02 - - -
Total 36 13 - 05 02 01 - - - - - - 05 02 00 00
Note: The mode of appointment is deputation only except for posts of 02 ASO and 05 MTS (Group ‘C’)184
Annual
Report
2025-2026
Annexure-I
Organization: The Appellate Tribunal under SAFEMA
Number of appointments made during the previous calendar year
Groups Number of Employees
By direct recruitment By promotion By other methods
Total SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Group A 7 - - - - - - - - - - - - -
Group B 9 1 1 - - - - - - - - - - -
Group C 17 5 - 3 - - - - - - - - - -
Total 33 6 1 3 - - - - - - - - - -185
Department
of
Revenue
III
Annexure-I
Organization: Competent Authority for Forfeiture of Illegally Acquired Property
Number of appointments made during the previous calendar year
Groups Number of Employees
By direct recruitment By promotion By other methods
Total SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs OBCs
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Group A 9 1 - 1 - - - - - - - 3 1 - -
Group B 12 1 - 1 - - - - - - - 1 - - -
Group C 31 5 - 10 1 - - 1 - - - 3 - - 1
Total
52 7 - 12 1 - - 1 - - - 7 1 - 1186
Annual
Report
2025-2026
Annexure-I
Organization: Customs, Excise & Service Tax Appellate Tribunal (CESTAT)
Number of appointments/ promotion made during the calendar year 2025
Number of Employees
Groups By direct recruitment By promotion By other methods
Total SCs STs OBCs EWS Total SCs STs OBCs EWS Total SCs STs Total SCs STs OBCs
Group A 4 2 - 2 - - - - - - - - - - - - -
Group B 40 13 3 23 1 - - - - - - 2 1
- - - -
Group C
(Excluding Safai 46 15 3 27 1 2 - - 2 - - - - - - - -
Karamchari)
Group D
(Excluding Safai 51 20 6 24 1 1 1 - - - - - - - - - 2
Karamchari)
Group D (Safai/
- - - - - - - - - - - - - - - - -
Karamchari)
Total
141 50 12 76 3 3 1 2 - 2 1 - - - 2187
Department
of
Revenue
III
Annexure-I
Organization: Narcotics Control Division
i. Central Bureau of Narcotics
Group-wise Representation of SCs, STs, and OBCs upto 30.11.2025
Number of Employees Number of appointments made during the Calendar year 2025 (i.e. 01.01.2025 – 30.11.2025)
Group (as on 31.12.2024) By Direct Recruitment By Promotion By Other Methods
Total SCs STs OBCs EWS Total SCs STs OBCs EWS Total SCs STs OBCs EWS Total SCs STs OBCs EWS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Group A 10 4 1 2 0 0 0 0 0 0 10 1 0 3 0 NA Na NA NA NA
Group B 203 32 22 35 5 13 2 1 5 3 19 7 0 2 0 0 0 0 0 0
Group C
(Excluding 474 74 41 148 52 280 53 22 105 41 19 3 1 10 1 0 0 0 0 0
Safai
Karamcharis)
Group D
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(Safai
Karamcharis)
Total 687 110 64 185 57 293 55 23 110 44 48 11 1 15 1 0 0 0 0 0
*09 Superintendents promoted to Assistant Commissioner (In – situ basis).
01 Administrative Officer promoted to Chief Accounts Officer (In – situ basis).188
Annual
Report
2025-2026
ii. Chief Controller of Factories
Group-wise representation of Scheduled Castes, Scheduled Tribe, Other Backward Classes, Economically Weaker Section up to 30.11.2025
OFFICE Group No. of Employees Number of Appointments/Promotions made during the calendar year 2025 (i.e., 01.01.25 to 30.11.2025)
(As on 31.12.2024)
By Direct Recruitment By Promotion By other Methods
Total SCs STs OBCs EWS Total SCs STs OBCs EWS Total SCs STs OBCs EWS Total SCs STs OBCs EWS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
CCF Group A 06 01 01 02 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Organization
Group B 10 06 0 01 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Group C 325 86 50 120 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(Excluding
Safai
Karamcharis)
Group 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
D (Safai
Karamcharis)
TOTAL 341 93 51 123 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0189
Department
of
Revenue
III
Annexure-I
Organization: Directorate of Enforcement
Group-wise representation of SCs, STs, OBCs & EWS up to 30.11.2025
Number of appointments/Promotions made during the calendar year 2025 (i.e. 01.01.2025 to 30.11.2025)
Number of Employees (As on
31.12.2024)
Group Appointment by Direct Appointment by Others
Appointment by promotion
Recruitment (By Deputation)
Total SCs STs OBCs EWS Total SCs STs OBCs EWS Total SCs STs OBCs EWS Total SCs STs OBCs EWS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Group A 421 32 16 40 1 - - - - - 60 2 1 22 0 55 - - - -
Group B 731 86 34 182 32 93 17 6 24 16 66 10 5 21 0 28 - - - -
Group C 482 28 12 48 5 23 4 2 7 7 6 0 0 0 0 17 - - - -
Group D NA - - - - - - - - - - - - - - - - - - -
(Excluding Safai
Karmcharis)
Group D NA - - - - - - - - - - - - - - - - - - -
(Safai
Karamcharis)
TOTAL 1634 146 62 270 38 116 21 8 31 23 132 12 6 43 0 100 - - - -190
Annual
Report
2025-2026
Annexure-I
Organization: National Institute of Public Finance and Policy
Group Number of Employees Number of appointments/promotions made during the previous calendar year
(01-01-2025 to 30-11-2025)
As on 30.11.2025
By Direct Recruitment By Promotion By other Methods
Total SCs STs OBCs Total SCs STs OBCs Total SCs STs OBCs Total SCs STs
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Group A 35 2 1 3 02 - - - 00 - - - 00 - -
Group B 13 1 - 3 03 01 - 01 00 - - - 00 - -
Group C 18 6 - 4 04 02 - - 00 - - - 00 - -
(excluding
Safai Karamcharis)
Group D - - - - 00 - - - 00 - - - 00 - -
(Safai
Karamcharis)
Total 66 9 1 10 09 03 - 01 00 - - - 00 - -191
Department
of
Revenue
III
Representation of the persons with disabilities
Annexure-II
Organization: Central Board of Direct Taxes (CBDT)
Group-wise representation of Persons with Disabilities upto 30.11.2025
No. of Appointments/Promotions made during the calendar year 2025 (i.e. 1.1.25 to 30.11.25)
Number of Employees (as on
Appointment by Direct Recruitment Appointment by Promotion**
31.12.2024)^
Group
No. of Vacancies
No. of Vacancies reserved No. of Appointments Made No. of Appointment Made
reserved
Total VH HH OH ID VH HH OH ID Total VH HH OH ID VH HH OH ID Total VH HH OH ID
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Group A 4347 8 31 86 - 2 1 2 - 180* 2 1 2 - - - - - - - - - -
Group B 26584 98 92 580 1 62 33 34 23 135 31 1 3 3 59 47 59 19 559 18 15 42 0
Group C 18859 203 139 325 14 1181 43 41 22 879 571 25 25 12 31 317 25 13 80 7 5 8 0
Total 49790 309 262 991 15 1245 77 77 45 1194 604 27 30 24 90 364 84 32 639 25 20 50 0
* 180 ‘Offer of Appointments’ have been issued by CBDT to the candidates selected through Civil Services Examination(CSE) 2024 as on 19.11.2025. These numbers
are not included in column 2 to 5 above.
** A proposal for filling up 251 vacancies (including VH: 1; HH: 2; OH: 2) in the grade of ACIT for the vacancy years 2024 has been submitted in the UPSC on
12.09.2025. Date of DPC is awaited.
^ Including 313 ITOs (including VH; HH; OH) were promoted as ACIT on regular basis against the vacancy years 2022 & 2023 vide Office Order No. 350 of 2024 dated
31.12.2024. Further, 168 ITOs were also promoted as ACIT on ad-hoc basis against the vacancy year 2024 vide Office Order No. 354 of 2024 dated 31.12.2024.
Note:-
(i) VH stands for Visually Handicapped (Persons suffering from blindness or low vision).
(ii) HH stands for Hearing Handicapped (Persons suffering from hearing impairment).
(iii) OH stands for Orthopedically Handicapped (Persons suffering from locomotors disability) or
(iv) ID stands for Intellectual Disability.192
Annual
Report
2025-2026
Annexure-II
Organization: Revenue Head Quarter
DIRECT RECRUITMENT PROMOTION
Group
No. of vacancies No. of Appointments Made No. of Vacancies No. of Appointments made
Number of Employees
reserved reserved
Total VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
‘A’ 232 - - 1 - - - - - - - - - - - - - -
‘B’ 416 4 2 7 - - - - - - - - - - - - - -
‘C’ 274 4 - 5 - - - - - - - - - - - - - -
Total 922 8 2 13 - - - - - - - - - - - - - -193
Department
of
Revenue
III
Annexure-II
Organization: The Appellate Tribunal under SAFEMA
DIRECT RECRUITMENT PROMOTION
Group
Number of Employees
No. of vacancies No. of Appointments Made No. of No. of Appointments
reserved Vacancies made
reserved
Total VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
‘A’ 7 - - - - - - - - - - - - - - - - -
‘B’ 9 - - - - - - - - - - - - - - - - -
‘C’ 17 - - - - - - - - - - - - - - - - -
Total 33 - - - - - - - - - - - - - - - - -194
Annual
Report
2025-2026
Annexure-II
Organization: Competent Authority for Forfeiture of Illegally Acquired Property
DIRECT RECRUITMENT PROMOTION
Group
Number of Employees
No. of vacancies No. of Appointments Made No. of Vacancies No. of Appointments made
reserved reserved
Total VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
‘A’ 9 - - - - - - - - - - - - - - - - -
‘B’ 12 - - - - - - - - - - - - - - - - -
‘C’ 31 - - - - - - - - - - - - - - - - -
Total 52 - - - - - - - - - - - - - - - - -195
Department
of
Revenue
III
Annexure-II
Organization: Customs, Excise & Service Tax Appellate Tribunal (CESTAT)
No. of appointments/ promotion made during the calendar year 2025 (i.e. 1.1.2025 to 30.11.2025)
Number of Employees DIRECT RECRUITMENT PROMOTION
(AS ON 31.12.2024)
No. of vacancies No. of Vacancies
No. of Appointments Made No. of Appointments made
reserved reserved
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Total VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH
‘A’ 4 - - - - - - - - - - - - - - - - -
‘B’ 40 - - 1 - - - - - - - - - - - - - 1
‘C’ 97 - - 7 - - - - - - - - - - - - - -
Total 141 - - 8 - - - - - - - - - - - - - 1196
Annual
Report
2025-2026
Annexure-II
Organization: Narcotics Control Division
i. Central Bureau of Narcotics
GROUP-WISE REPRESENTATION OF THE PERSONS WITH DISABILITIES UPTO 30.11.2025
No. of Appointments/ Promotions made during the calender year 2025 (01.01.2025 to 30.11.2025)
Groups Number of Employees DIRECT RECRUITMENT PROMOTION
No. of Vacancies reserved No. of Appointments Made No. of Vacancies reserved No. of Appointments Made
Total VH HH OH ID VH HH OH ID Total VH HH OH ID VH HH OH ID Total VH HH OH ID
A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
B 2 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
C 7 3 1 3 0 0 3 2 0 3 1 1 1 0 0 0 0 0 1 1 0 0 0
Total 9 3 1 5 0 0 3 2 0 3 1 1 1 0 0 0 0 0 1 1 0 0 0
ii. Chief Controller of Factories
Group-wise representation of Persons with Disabilities up to 30.11.2025
No of Appointments/Promotions made during calendar year 2025 (01.01.2025 to 30.11.2025)
OFFICE Group No. of Employees Appointment by Direct Recruitment Appointments by Promotion
(as on 31.12.2024)
No. of Vacancies No. of Appointments Made No. of Vacancies No. of Appointments Made
reserved reserved
Total VH HH OH ID VH HH OH ID Total VH HH OH ID VH HH OH ID Total VH HH OH ID
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Group A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
CCF
Organization Group B 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Group C 08 03 01 04 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Group D 02 0 01 01 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(Excluding
Safai
karamchari)
Group D 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL 10 03 02 05 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0197
Department
of
Revenue
III
Annexure-II
Organization: Directorate of Enforcement
Group-wise representation of Persons with Disabilities up to 30.11.2025
Number of Employees (as on No. of Appointment/Promotion made during the calendar year 2025 (i.e. 01.01.2025 to 30.11.2025)
31.12.2024)
Appointment by Direct Recruitment Appointment by Promotion
No. of Vacancies No. of appointment made No. of Vacancies No. of appointment made
reserved Reserved
Group
Total VH HH OH ID VH HH OH ID Total VH HH OH ID VH HH OH ID Total VH HH OH ID
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Group A 421 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 60 0 0 0 0
Group B 731 0 0 1 0 0 0 0 0 93 0 0 0 0 0 0 0 0 66 0 0 0 0
Group C 482 1 0 5 0 0 0 0 0 23 0 0 1 0 0 0 0 0 6 0 0 0 0
Group D NA - - - - - - - - - - - - - - - - - - - - - -
TOTAL 1634 1 0 6 0 0 0 0 0 116 0 0 1 0 0 0 0 0 132 0 0 0 0198
Annual
Report
2025-2026
Annexure-III
Summary of important observations included in Audit Reports presented to Parliament:
1. Central Board of Direct Taxes
Details of the Paras/PA reports on which ATNs are pending
No. of paras/PA reports on which
S. No. Year ATNs have been submitted to PAC No. of ATNs not sent by the No. of ATNs sent but returned with No. of ATNs which have been finally
after vetting by Audit Ministry even for the first time observations and Audit is awaiting their vetted by Audit but have not been
resubmission by the Ministry submitted by the Ministry to the PAC
Audit Report
1. 0 1 0 0
No. 9 of 2024
Audit Report
2. 283 145 11 15
No. 13 of 2024
Audit Report
3. 0 1 0 0
No. 14 of 2024
Audit Report
4. 114 154 8 58
No. 14 of 2025
Total 397 301 19 73199
Department
of
Revenue
III
2. Central Board of Indirect Taxes & Customs
Summary of important observations included in Audit Reports
Details of the Paras/PA reports on which ATNs are pending
No. of paras/PA reports on which
S. Year
ATNs have been submitted to
No. No. of ATNs not sent No. of ATNs sent No. of ATNs which
PAC after vetting by Audit
by the Ministry even but returned with have been finally
for the first time observations and vetted by Audit
Audit is awaiting their but have not been
resubmission by the submitted by the
Ministry Ministry to the PAC
PAC- GST Section
Audit
1. Report No. 0* 0 0 0*
12 of 2025
PAC -Customs Section
Audit
1. Report No. 0* 27 21 18*
11 of 2025
Audit
2. Report No. 0* 0 0 0*
17 of 2024
Total 0* 27 21 18*
* PAC Cell, CBIC does not submit the ATNs to PAC. Uploading of ATNs of Paras at all stages is done on APMS Portal. APMS Portal is managed by
CGA which comes under Dept of Expenditure with access to CAG.200
Annual
Report
2025-2026
3. State Taxes (ST)
Status of CAG Audit Paras
Sr. Year Report Chapter Para No Gist of the Audit Para Status as on 17.11.2025
No. No No
1. 2021 7 2 Para 2.3.3 - Accounting of short transfer Accounting of short transfer of ATN uploaded on APMS portal on 17.07.2025. O/o CAG
of IGST to States/UTs pertaining to FY 18 IGST to States/UTs pertaining to has not yet vetted the same.
FY 18
2. 2021 7 2 Para 2.7.2 - Un-apportioned IGST Un-apportioned IGST ATN uploaded on APMS portal on 17.07.2025. O/o CAG
has not yet vetted the same.
3. 2021 1 3 Entire Chapter - Information Technology The para relates to IT Audit of O/o CAG has partially approved the Audit comments on
Audit of GSTN (Phase-II) Refund Module, Returns Module, 30.06.2025.
rejection of EWBs and other Issues Reply of further Audit comments has been submitted on
of Infra/Network of GSTN. APMS portal on 31.10.2025. O/o CAG has not yet vetted
the same.
4. 2022 5 4 Entire Chapter - Reliability of GST data The para relates to (1) O/o CAG has partially approved the Audit comments on
maintained by GSTN Inconsistencies between taxable 30.05.2025.
values and tax liability declared Reply of further Audit comments has been submitted on
resulting in capture of unreliable APMS portal on 31.10.2025. O/o CAG has not yet vetted
data and (2) Inconsistencies in the same.
CGST and SGST components of
GST.
5. 2024 7 Chapter Data Analysis of Composition Levy Data Analysis of Composition Reply of further Audit comments has been uploaded on
VII Scheme Data Levy Scheme Data APMS portal on 04.04.2025. O/o CAG has not yet vetted
the same. (ATN submitted)
6. 2024 7 Chapter VI Reliability of GST data maintained by Reliability of GST data maintained O/o CAG has partially approved the Audit comments on
Goods and Services Tax Network by Goods and Services Tax 28.04.2025.
Network Reply of further Audit comments has been submitted on
APMS portal on 22.10.2025. O/o CAG has not yet vetted
the same.
7. 2024 7 Chapter 1 Para 1.3.2 - Comparative growth of various Retention of IGST in the Reply of further audit comments uploaded on APMS portal
components of Indirect Taxes Consolidated Fund of India on 30.07.2025. O/o CAG has not yet vetted the same.
8. 2025 12 Entire Performance Audit Report on E-Way Bill Performance Audit Report on Reply of Audit comments have been submitted on APMS
Report System under GST E-Way Bill System under GST portal on 30.10.2025. O/o CAG has not yet vetted the same.201
Department
of
Revenue
III
ORGANISATION CHART OF DEPARTMENT OF REVENUE Annexure-IV
Secretary (Revenue)
CHAIRMAN CHAIRMAN Addl. Secretary
CBDT& ex-officio CBIC & (Revenue)
Spl. Secretary ex-officio
Spl. Secretary
(IM T ) (AM & J) (M L) (IM nv .) (AdM m n) (R&M T PS) M & ( VAd igm .)n . (CuM sto ms) (Compliance MM a n agement) (Tax PoliM c y & Legal) (IT, TS M &T ech)
)I RT&TF( .S.J )II - RT&TF(
.S.J
TDBC )nmdA(
.S.J
CIBC )NMDA(
.S.J
).KBD( .S.J .rmmoC ).vnI - smotsuC( )weiveR( .S.J )yciloP TSG( .rmmoC )VC&TI(.rmmoC )1-IE( GDA )2-IE &.drooC(GDA & ASOPEFOC(
.S.J
)SPDNTIP
FA (FIN) Directorate of Enforcement
LEGEND LEGEND Attached Offices/ other Bodies of the Deptt. of Revenue (H.Q.)
CBDT : Central Board of Direct Taxes SDE :- Special Director Enforcement
CBIC : Central Board of Indirect Taxes & Customs TRU: Tax Research Unit 1. Enforcement Directorate
M(S&FS): Member (Systems & Faceless Assesment Scheme) CUS: Customs 2. Central Economic Intelligence Bureau
M (IT) : Member (Income Tax & ex-officio Spl. Secretary) DBK: Drawback 3. Central Bureau of Narcotics
M (A&J) : Member (Audit & Judicial & ex-officio Spl. Secretary) ADMN: Administration 4. Chief Controller of Factories
M(L)) : Member (Legislation & ex-officio Spl. Secretary) TPL: Tax Policy and Legislation 5. Competent Authorities (SAFEM (FOP) Act &
M (Inv.) : Member (Investigation & ex-officio Spl. Secretary) FT&TR: Foreign Tax and Tax Research NDPS Act) M (Admn) : Member (Administration & ex-officio Spl. Secretary) FA (FIN): Financial Advisor (Finance) 6. National Committee for Promotion of Social &
M(R&TPS) : Member (Revenue and Tax Payer Services & ex-officio Spl. Secretary) RA: Revision Application Economic Welfare
MMM M ( ( (( IA GC Td Su ,Tm Ts S) /n C &: & XM T ) eV e : cm i hMg b ). e) e : r m: M(M bC e ee u r mm s (Gt bob eome ror s( d (A Is& n d & f m oe x rSi m-n eoi ars f v tft ir i i oc ca neit oi so T / n eS C cpa e hn l n. nd tS or V a le olci gg Ere yi xl t ,e a c Tn r iy sc ae e x) & p& a y ee x ex r-- ,o o Sff f ef ii rcc vii o io c e SS sp p &ll .. SS ee cc rr ee tt aa rr yy )) R J ES xe v c(C h.: a OR nF ge Ev e e P &n Ou PSe r A e v & en P tiI oT nN oD f P SS m) u: gJo glin int g S Aec cr te ivta ir tiy e s(C ao nn ds Per rv evat ei no tn io o nf oF fo Ir le li ig cin t 987 ... AIC nu pcs pot emo lm le a s tT e & a Tx rC S ibe e un tt nt lr aea lml (E e unx ntc d i C es re o SmS Ae mt Ft il Ese s Mm ioe Ann )t Commission
Technology and ex-officio Spl. Secretary) Tarrif in Narcotics Drugs and Psychotropic Substances) 10. Customs Excise & Service Tax Appellate Tribunal
CVO & DG (VIG) : Chief Vigilance Officer & Director General (Vigilance ) DG(CEIB): Director General (Central Economic Intelligence Bureau) 11. Authority for Advance Rulings
J.S : Joint Secretary ADG: Additional Director General 12. Financial Intelligence Unit-India (FIU-IND)
CIT : Commissioner of Income Tax PAC: Public Accounts Committee 13. Income Tax Ombudsman
Commr. : Commissioner Enf. : Enforcement. 14. National Institute of Public Finance & Policy (NIPFP)
ITA: Income Tax Assessment 15. Adjudicating Authority under PMLA
C&S: Coordination and Systems 16. Indirect Tax Ombudsman
)J&A( TIC )vnI( TIC )L&V( TIC )TC&TI( TIC GD/ OVC ).SUC( .S.J )PE/suC( .rmmoC ).vnI-TSG( .rmmoC ).xC(.rmmoC )TS( .rmmoC )lageL( .rmmoC
CIT
(C & S)
)DNI-UIF(
.riD
DG(CEIB)
SDE SDE SDE SDE SDE SDE
Head Office Western Northern Eastern Southern Central
Delhi Region Region Region Region Region
MUMBAI CHANDIGARH KOLKATA CHENNAI DELHI
M (GST/CX, Service Tax)
)URPT(SJ
)CAP( .rmmoC )1-URT(SJ )I1-URT(SJ
Principal Principal Commr.
Commr.(RA) & Mumbai Ex-
Ex-officio AS, officio AS
Delhi
Pr. SpecialDirector-2
M (S&FAS)
)ATI( TIC
CIT
(Inv.)
CIT (OSD)
(Inv.)
)I-LPT( .S.J )II-LPT( .S.J ).drooC( .mmoC )I&IR( .rmmoC
Finance Minister
Minister of State
)euneveR(SJChapter - IV
Department of Investment and Public Asset Management
1. FUNCTIONS III. MISSION
(i) List CPSEs on stock exchanges to
As per the present Allocation of Business Rules,
promote people’s ownership through public
the mandate of the Department is as follows:
participation and improving efficiencies
1.(a) All matters relating to management of Central of CPSEs through accountability to its
Government investments in equity including disinvestment shareholders.
of equity in Central Public Sector Undertakings. (ii) To bring in operational efficiencies in CPSEs
through strategic disinvestment, ensuring
(b) All matters relating to sale of Central Government
their greater contribution to the economy.
equity through offer for sale or private placement or
(iii) Adopt a professional approach for financial
any other mode in the erstwhile Central Public Sector
management of CPSEs in the national interest
Undertakings.
and disinvestment aimed at expanding public
Note: All other post disinvestment matters, including participation in ownership of CPSEs.
those relating to and arising out of the exercise of Call
IV. ORGANISATIONAL STRUCTURE
option by the Strategic Partner in the erstwhile Central
Public Sector Undertakings, shall continue to be handled The Department of Investment and Public Asset
by the administrative Ministry or Department concerned, Management (DIPAM) is currently headed by Shri Arunish
where necessary, in consultation with the Department Chawala, Secretary. He is assisted by two Additional
Secretary, two Joint Secretaries, one Economic Adviser
of Investment and Public Asset Management (DIPAM).
and one Advisor (Cost). The Department functions on the
2. Decisions on the recommendations of Administrative Desk Officer pattern and the assigned work is handled at
Ministries, NITI Aayog, etc. for disinvestment including the levels of Joint Secretary, Director/Deputy Secretary
strategic disinvestment. and Under Secretary. The Organizational Structure of the
Department is placed at Appendix –II.
3. All matters related to Independent External Monitor
V. CURRENT POLICY ON DISINVESTMENT IN
(s) for disinvestment and public asset management.
CPSEs
4. (a) Decisions in matters relating to Central Public
Government implements the policy of
Sector Undertakings for purposes of Government
disinvestment through the minority stake sale and
investment in equity like capital restructuring, bonus,
strategic disinvestment of CPSEs.
dividends, disinvestment of government equity and other
(i) Minority stake sale
related issues.
Minority stake sale without transfer of management
(b) Advise the Government in matters of financial
control are carried out in certain CPSEs through SEBI-
restructuring of the Central Public Sector Enterprises and
approved methods such as Initial Public Offer (IPO),
for attracting investment in the said Enterprises through
Offer for Sale (OFS), Buyback of shares etc. in order
capital market.
to unlock value, promote public ownership, meet the
5. The Unit Trust of India Act, 1963 (52 of 1963) Minimum Public Shareholding norms of SEBI and for
ensuring higher degree of accountability. These methods
along with subjects relating to Specified Undertaking of
play important role in strengthening the capital market
the Unit Trust of India (SUUTI).
through (i) increasing the float of well performing CPSEs
II. VISION (ii) providing opportunity to retail investors to participate in
an extended range of stocks and bonds and (iii) increasing
(i) Promote people’s ownership of Central
liquidity and depth of the markets.
Public Sector Enterprises (CPSEs) to share
in their prosperity through disinvestment. (ii) Strategic Disinvestment
(ii) Efficient management of public investment “Strategic Disinvestment” implies entire
in CPSEs for accelerating economic or substantial sale of Government shareholding of a
development and augmenting Government’s CPSE along with transfer of management control. In
resources for higher expenditure. case of Privatization, which is a sub-set of strategic
203Annual Report 2025-2026
disinvestments, the Government equity in CPSE and its at Holding Company level will be retained under
management control is transferred to a private strategic Government control. The remaining enterprises in a
buyer(s) and in other cases of strategic disinvestment, strategic sector, will be considered for privatization or
the Govt. equity is transferred to another CPSE along merger /subsidiarization with another PSE or for closure.
with control.
PSEs in non-strategic sectors shall be considered
The policy on strategic disinvestment is based for privatization, where feasible, otherwise such
on the economic principle that Government should enterprises shall be considered for closure.
discontinue in sectors, where competitive markets have
Approval of the Government for strategic
come of age and economic potential of such entities may
disinvestment of a specific PSE shall be taken from time
be better discovered in the hands of strategic investor due
to time, on a case-to-case basis. The timing for specific
to various factors such as infusion of capital, technological
transactions will however, be contingent, inter alia, on
upgradation and efficient management practices.
the considerations of appropriate sequencing, sectoral
NITI Aayog was mandated to identify the CPSEs trends, administrative feasibility, investors’ interest, etc.
for strategic disinvestment. Till February, 2021 NITI Aayog
This policy does not apply to certain classes of
identified CPSEs for strategic disinvestment based on the
public sector entities such as Not-for-profit companies, or
criteria of (i) National Security; (ii) Sovereign function at
CPSEs providing support to vulnerable groups or having
arm’s length, and (iii) Market Imperfections and Public
developmental/promotional roles, etc.
Purpose.
New policy initiative
Open, Transparent and Competitive Process for
Privatization/Strategic disinvestment
The procedure for Strategic Disinvestment
is modified from time to time to make it more result
The procedure of strategic disinvestment has also
oriented, and to tackle new challenges. Keeping this in
undergone changes to make the process result-oriented
view, the Cabinet delegated certain additional powers
and expeditious. The new procedure provides for an Inter-
to the Alternative Mechanism during the year 2022-23.
Ministerial Group (IMG) chaired by Secretary, DIPAM
Similarly, the Cabinet on 18.05.2022 had given approval
& Secretary of Administrative Ministry to drive entire
for empowering the Board of Directors of the Public
process, while minimizing redundancy and multiplicity
Sector Enterprises (PSEs) to recommend and undertake
of approvals to prevent dilution of bidder’s interest and
the transactions for Disinvestment (both strategic
performance of the CPSEs. The overall process is also
disinvestment and minority stake sale) or closure of any
overseen by the Independent External Monitor (IEM).
of their subsidiaries or units or sale of stake in JVs. It
New PSE policy was also approved that based on proposal of Board of
CPSE and Administrative Ministry, DIPAM will obtain
The New Public Sector Enterprise (“PSE”) Policy
an " in-priniciple" approval of Alternative Mechanism.
for Atmanirbhar Bharat was approved by Cabinet, on 27th
Thereafter, the Board of CPSEs can undertake the
January 2021 and was notified on 4th February, 2021.
process of disinvestment or closure of subsidiaries/units/
The policy intends to redefine public sector participation
JVs based on DIPAM or DPE guidelines.
in business enterprises and to encourage private sector
participation in all sectors in order to achieve the goal of Guiding principles for strategic disinvestment/
self-reliant India. Minority Stake sale of subsidiaries/units/sale of stakes
in JVs both the holding/parent PSE was issued by
Under New Public Sector Enterprise (“PSE”)
DIPAM on 14.09.2022., Guiding principles for closure of
Policy public sector commercial enterprises have been
subsidiaries/units by their Holding/Parent Public Sector
classified as Strategic and Non-Strategic sectors.
Enterprises was issued by DPE on 31.10.2022. Further,
The following four broad Strategic Sectors have been
DIPAM in consultation with NITI Aayog has issued
delineated based on the criteria of national security,
guidelines on 23.08.2023 to the Administrative Ministries
energy security, critical infrastructure, provision of
for examination of the proposals related to setting up of
financial services and availability of important minerals:
JVs, Subsidiaries, SPVs, etc. by CPSEs.
√ Atomic Energy, Space and Defence;
VI. VALUE CREATION IN CPSEs
√ Transport and Telecommunication;
√ Power, Petroleum, Coal and other minerals; Government has now focused on a holistic
approach of public asset management which balances the
and
objectives of value creation and value unlocking in CPSEs
√ Banking, Insurance and Financial Services.
to optimize returns for the Government (and the minority
In Strategic sectors, bare minimum presence stakeholders in listed companies) and disinvestment of
of the existing public sector commercial enterprises CPSEs as per the extant policy (minority stake sale and
204Department of Investment and Public Asset Management IV
strategic disinvestment). As a part of this strategy, CPSEs leading to increasing returns investors holding these
are being driven to create value for itself, its employees, stocks. Total market cap of listed CPSEs has grown by
shareholders, and the broader economy. Emphasis has nearly 3.3x in last three years from Rs 12.10 lakh crore
been placed on the following aspects. (31.03.2021) to Rs 40.07 lakh crore (23.12.2025). Market
cap of GoI equity in listed CPSEs has also increased by
i) Performance enhancement of CPSEs: S everal
3.6x from Rs 6.91 lakh crore (31.03.2021) to Rs 25.11
key performance indicators have been included in the
lakh crore (23.12.2025) in the last four years. Similarly,
annual MOU framework for the CPSEs on which the
CPSE indices have out-performed the benchmark indices
companies are evaluated. Some of the key performance
in the stock market (in terms of percentage increase)
parameters include CAPEX, Return on net-worth or
during the past 4 years.
Return on capital employed, Export and Import as % of
revenue, EBIDTA as % of revenue and Asset Turnover
SEN- BSE Nifty
Year Nifty-50
Ratio. Market related parameters like Total returns to SEX CPSE CPSE
shareholders for listed CPSEs (based on market cap of
CPSE vis a vis Market cap of sectoral index, dividend Last 2 years 15.24% 24.04% 17.53% 30.45%
payout as per capital management guidelines etc) have
also been included in the MOU framework for the listed
Last 3 years 38.78% 120.19% 43.30% 133.40%
companies. This is key to raise the value of these
companies in the market.
Last 4 years 36.57% 137.24% 40.94% 165.70%
(ii) Focus on Capex: CPSEs are encouraged to take
up CAPEX to achieve profitable growth in their business. As on 14.01.2026
For example, CPSEs, put together, undertake capital
VII. DISINVESTMENT PERFORMANCE
investment of more than Rs. 3 lakh crore annually from
their own resources without budgetary support. Such a Minority Stake Sale
large CAPEX creates growth opportunities and further
i. Initial Public/Further Offer IPO/FPO
employment.
a) Initial public offer (IPO): When an unlisted
(iii) Capital Management Guidelines: These
company makes either a fresh issue of
guidelines ensure consistent dividend policy and other
shares or convertible securities or offers its
Capital Management measures such as Buybacks,
existing shares or convertible securities for
Bonus, Stock Split etc. Revised Guidelines on Capital
Restructuring of CPSEs have been issued on 18.11.2024 sale or both for the first time to the public, it is
to align policy with market realities and requirements of called an IPO. This paves way for listing and
CPSEs. trading of the issuer’s shares or convertible
securities on the Stock Exchanges.
(iv) Focus on Communication Strategy of CPSEs:
b) Further public offer (FPO): When an already
CPSEs are being encouraged to have wider and frequent
listed company makes either a fresh issue of
interactions with other capital market participants. Better
shares or convertible securities to the public
communication about business with market participants
or an offer for sale to the public, it is called
helps CPSEs to raise funds for their future growth and
an FPO.
creation of employment opportunities.
Achievements: Since 2014-15, 18 CPSEs (including
(v) Calibrated disinvestment strategy: Calibrated
LICI) have been listed which yielded Rs 51,244.10 crore.
disinvestment strategy is being followed through listing/
During this period, 75.91 lakh retail investors invested
IPO of companies and gradual dilution of minority stake
an amount of Rs. 16,564.36 crore in IPOs of CPSEs.
through stock market consistent with interest of minority
An additional market capitalization of Rs 7.47 lakh crore
shareholders. This calibrated strategy has enabled (Market-capitalization calculated based on listing price)
CPSEs to improve their efficiency and growth and become was achieved through the new listings. At present, 67
important players in the capital market. The calibrated CPSEs are listed (excluding public sector banks and
disinvestment policy also ensures that transactions insurance Companies) with a total market cap of Rs.
whenever carried out, do not cause disruption in the 40.64 lakh crore as on 13.01.2026. The total M-cap of
market and remains aligned to overall market direction. 16 public sector banks and insurance companies stands
at Rs. 25.87 lakh Crore as on 13.01.2026.
This has led to enhanced value of the CPSEs increasing
returns to shareholders. In the current F Y 2025-26, while Bharat Coking
Coal Limited (BCCL), a subsidiary of Coal India Limited ,
Focus on value-creation and value unlocking
has been listed. Another subsidiary of Coal India Limited
through measures cited above, have seen Market cap namely Central Mine Planning and Design Institute
and CPSE stocks rise significantly over the last few years, Limited (CMPDIL) is likely to be listed.
205Annual Report 2025-2026
ii. Buyback of shares Achievements: Disinvestment through OFS mechanism
yielded Rs. 1,42,488 crore through various transactions
Buyback is the repurchase by a company of
in last 10+ years (as on 14.01.2026). This included the
its shares from the existing shareholders that reduces
largest OFS of over Rs. 22,000 crore in case of Coal India
the number of its shares in the open market.
Limited in January, 2015.
Companies buy back their shares:
During F.Y. 2025-26, the following the OFS transactions
a) To increase the value of shares held by were carried out (as on 17.02.2026):
promoters.
(i) Mazagon Dock Shipbuilders Ltd (MDL) :
b) To eliminate any threats by minority
shareholders who may be looking for a On the recommendations of High-Level
controlling stake. Committee (HLC), the Alternative Mechanism on
03.04.2025 approved disinvestment of 4.83% of the
c) For CPSEs, buyback is a tool for Govt. of
paid-up equity of Mazagon Dock Shipbuilders Ltd (MDL)
India to disinvest the equity held by GoI in
through Offer for Sale (OFS), out of Government's
CPSEs and to make proper utilization of idle
current shareholding of 84.83%. The OFS was done
cash left with CPSEs.
on 04.04.2025 and 07.04.2025. Government of India
As per the Revised Guidelines on Capital realized Rs.3673.42 crore from disinvestment of 3.61%
Restructuring of CPSEs issued by DIPAM on 18.11.2024, of total shareholding through OFS. Post disinvestment,
CPSE, whose market price of the share is less than shareholding of Government of India in MDL stands at
the book value consistently for the last six months, and 81.22%.
having net-worth of at least Rs. 3000 crore and cash &
(ii) Bank of Maharashtra (BoM) :
bank balance of over Rs. 1500 crore may consider the
option to buy-back their shares. Further, if buyback is not On the recommendations of High-Level
considered desirable for a CPSE with excess cash, but Committee (HLC), the Alternative Mechanism on
no committed expenditure, company may consider paying 01.12.2025 approved disinvestment of 6% of the paid-up
higher or special dividend to the shareholders. equity of Bank of Maharashtra (BoM) through Offer for
Sale (OFS), out of Government's current shareholding
Achievements: In order to make the use of idle cash
of 79.6%. The OFS was done on 02.12.2025 and
lying with CPSEs and for improving the Earning per share,
03.12.2025. Government of India have realized Rs.
Govt. has used buyback method effectively. During the
2624.24 crore from the transaction. Post Disinvestment,
last eight years, disinvestment proceeds of Rs 45,104
shareholding of Government of India is 73.6% and BoM
crore were realized from buyback of shares by 45 CPSEs.
has now become compliant to the Minimum Public
iii. Offer for Sale (OFS) Shareholding (MPS) norms.
(iii) Indian Overseas Bank
Offer for sale (OFS) is a simpler method of
sale of shares through the exchange platform for listed
On the recommendations of High-Level
companies. The mechanism was first introduced by
Committee (HLC), the Alternative Mechanism on
SEBI in 2012, to make it easier for promoters of publicly-
16.12.2025 approved disinvestment of 3% ( 2 % Base
traded companies to cut their holdings and comply with
and 1% Green Shoe option) of the paid-up equity of Indian
the minimum public shareholding norms by June 2013.
Overseas Bank through Offer for Sale (OFS), out of
The method was largely adopted by listed companies,
Government's current shareholding of 94.61% The OFS
both state-run and private, to adhere to the SEBI norms
was done on 17.12.2025 and 18.12.2025. Government
of minimum public shareholding. Government often used
of India realized Rs. 1419.36 crore from the transaction,
this route to divest its shareholding in CPSEs.
post disinvestment of 2.17% of total shareholding of
Salient features of OFS: Government of India in IOB stand at 92.44%.
√ simple to execute (iv) Bharat heavy Electricals Ltd.
√ market-driven On the recommendation of High-Level
√ Govt. continues to retain management Committee (HLC), the Alternative Mechanism approved
disinvestment of the paid-up equity of Bharat Heavy
control
Electricals Ltd (BHEL), through Offer for Sale (OFS), out
√ Cost-effective of Government’s current shareholding of 63.17%. The
√ Time efficient (completed in 2 trading days) OFS was done on 11.02.2026-12.02.2026. Government
of India realized Rs. 4,464.91 crore from the transaction,
√ Transparent allocation based on price-parity
Post Disinvestment the shareholding of Government of
basis. India in BHEL stands at 58.17%.
206Department of Investment and Public Asset Management IV
Other Transactions (2025-26) (As on 14.01.2026), pause employing Equity ETFs as a tool for minority stake
sale.
Government received Rs. 1,051.00 crore as remittance
from SUUTI. B. Performance in Strategic Disinvestment
GoI equity holding in Vodafone IDEA Ltd (VIL) The Government, since 2016 has given ‘in-
increased to 48.99% pursuant to conversion of eligible principle’ approval for strategic disinvestment of 36
spectrum instalment into equity under the Telecom cases of CPSEs and/or Subsidiaries/Units/ Joint
Reforms and Support Package. Ventures of CPSEs/ Bank. Out of these, 12 CPSEs
- have been strategically disinvested (Transaction
Approval of the Alternate Mechanism (AM) has been
Completed), 5 CPSEs - recommended for Closure, 3
obtained in respect of the following hotels/units of ITDC
CPSEs- Transaction failed and EoI Annulled, 2 CPSEs-
a) Ranchi Ashok Bihar Hotel Corporation Limited Transaction not pursued (AM not approved), 6 CPSEs-
(RABHCL) – AM approved sale of 51% Ongoing Transcation being processed by DIPAM, 4
shareholding of ITDC in RABHCL to the CPSEs - Transaction being processed by respective
Government of Jharkhand at a valuation of ₹3.06 Administrative Ministries and 4 CPSEs - Transcations
crores in June, 2025. failed, considered for Merger/Closure/Subsidiarization.
b) Hotel Jammu Ashok, Jammu – AM approved The details given at Appendix-I.
transfer of Hotel Jammu Ashok, Jammu on ‘As
C. Disinvestment Targets & achievements
is where is’ basis to the Government of J&K at a
valuation of ₹11.09 crores in August, 2025. Since 2014-15, an amount of about Rs.
4,47,055 crore (as on 14.01.2026) has been realized
c) Punjab Ashok Hotel Company Limited (PAHCL)
as disinvestment proceeds using various modes/
– AM approved transfer of 51% equity of ITDC
instruments. This includes Rs 3,37,766 crore realized
in PAHCL to Punjab Tourism Development
Corporation (PTDC) at a valuation of ₹79.39 from minority stake sale, and Rs. 69,412 crore realized
from strategic disinvestment transactions in 10 CPSEs
lakhs in September, 2025
(Air India & NINL have been privatized and in remaining
Alternative Mechanism on 28.08.2025 has 8 CPSEs strategic disinvestment was in CPSE to CPSE
granted approval for Disinvestment of National Thermal space). Amount received from strategic disinvestment
Power Corporation (NTPC)’s stake in its Joint Venture (Rs. 69,412 crore) does not include Rs. 12,100 crore
(JV) Utility Powertech Ltd (UPL), in one or more tranches received as Enterprise Value for NINL transaction as
in accordance with DIPAM’s OM No. 3/17/2021-DIPAM- GoI didn’t have any direct equity in this Joint Venture of
IIB(E) dated 01.06.2022. Central and State PSEs. Other transactions yielded Rs.
39,877 crore.
Qualified Institutional Placement (QIP) in Indian
Renewable Energy Development Agency Limited The details of disinvestment targets set/Revised
(IREDA) : Alternative Mechanism (AM) has approved Estimate (RE) and actual disinvestment achieved by the
GoI shareholding in IREDA to be diluted, owing to issue Government from 2014-15 are given as under:
of fresh equity through QIP route, up to an extent of 7%
(In Rs. crore)
of the paid-up equity of IREDA. Accordingly, IREDA on
11.06.2025 transacted 4.32% (fresh issue) through QIP.
Year Target (RE) Actual
A sum of Rs.2005.9 crore was raised through QIP which
will be utilized for strengthening the CPSE and further 2014-15 26,353 24,349
enhancing country’s capacity to support expanding
2015-16 25,313 23,997
renewable energy in India.
2016-17 45,500 46,247
Exchange Traded Fund
2017-18 1,00,000 1,00,037
Through various offers of CPSE-ETF and 2018-19 80,000 84,972
Bharat-22 ETF, Govt. could realize disinvestment 2019-20 65,000 50,300
proceeds of Rs.98,949 crore since 2016-17. However, 2020-21 32,000 32,886
there is now limited scope of disinvestment through
2021-22 78,000 13,534
existing ETF window as many underlying Stocks in
2022-23 50,000 35,294
CPSE-ETF and Bharat-22 ETF have reached close to
51% level of GOI equity or some stocks in the ETF basket 2023-24 16,508
There is no specifi c esti-
are no longer available for disinvestment due to strategic 2024-25 10,164
mate for disinvestment
disinvestment or other reasons. Also, it was noted that
2025-26 (*) 8,768
large and repeated tranches of Equity ETF were acting
(*) as of 14.01.2026Total 4,47,055
as a disincentive for investors in PSU stocks due to price
overhang. Therefore, Government has now decided to
207Annual Report 2025-2026
Disinvestment is an ongoing process, and for closure in the year 2021 and the company has now
execution/completion of specific transactions hinges upon been delisted from the stock exchange in 2024.
market conditions, domestic and global economic outlook,
(iii) Monetization of Enemy Shares
geopolitical factors, investor interest and administrative
feasibility. There is no specific estimate for disinvestment Cabinet in its meeting on 8th November, 2018
since the RE of 2023-24. Further, Rs. 47,000 crore has approved the procedure and mechanism for disposal of
been kept under miscellaneous capital receipts in 2025- Enemy Shares, which is also being handled by DIPAM.
26 Budget Estimates (BE), which includes receipts on As per the enemy shares provided by CEPI MHA,
account of management of equity investments and public more than 99.4% shares have been sold. As on date
assets through various mechanisms. (November, 2024) total shares realized at Rs. 2740.81
crore have been sold and the proceeds have come back
VIII OTHER INITIATIVES
to GoI.
(i) Launch of Bharat Bond ETF
IX. CAPITAL MANAGEMENT &DIVIDEND
Bharat Bond ETF comprising of AAA rated RECEIPTS
CPSEs, was launched in December 2019 which was the
Revised Guidelines on Capital Restructuring
first instrument of its kind based on high-quality public-
of CPSEs
sector bonds. Tranche -I of Bharat Bond ETF launched in
December, 2019 raised over Rs. 12,400 crore. Tranche- II DIPAM has issued Revised Guidelines on Capital
of Bharat Bond ETF was launched in July, 2020 raising Restructuring of CPSEs on 18.11.2024 with the approval
over Rs. 11,000 crore Tranche III was launched in of Hon’ble Finance Minister. These Guidelines, brought
December, 2021 raising over Rs 6,200 Cr. The Three out after due consultation with all stakeholders, reflect the
tranches received huge response from all sections of evolution in the capital market conditions, regulatory and
investors especially retail investors. sectoral changes, etc. Main objectives of the Guidelines
are to enhance value of the CPSE and returns for the
After the successful launch of three tranches with
shareholders, improve performance and efficiency of
an AUM of Rs. 50,000+ Cr., the fourth tranche BBETF -
CPSEs by providing them operational & financial flexibility
2033 of Bharat Bond ETF with 10+ years maturing in April
thereby enabling them to play effective role in economic
2033 was launched on 2nd December 2022 and ended
growth of the country. The comprehensive Revised
on 8th December 2022. The April 2033 issue of Bharat
Guidelines have been circulated to all Administrative
Bond ETF was oversubscribed 2.8 times against the base
Ministries/Departments and CPSEs for compliance.
issue size of Rs. 1,000 cr. The total Rs 2800 crore was
raised against the base issue size of Rs. 1000 crore. 8 Dividends:
CPSE namely PFCL, IRFC, REC, NABARD, HUDCO,
NTPC Limited, HPCL, and NPCIL participated and issue Dividends from CPSEs form an important
bonds. component of non-tax receipts. The work related
to dividends was transferred from Department of
Asset Under Management (AUM) for the
Economic Affairs to DIPAM in 2020-21. Accordingly,
Bond ETF market has grown to Rs. 62,218 crore an Inter-Ministerial Committee namely Committee for
(as on December, 2025)) out of which about 90% is Monitoring of Capital Management and Dividend in
accounted for Bharat Bond ETF (around Rs 56,064 CPSEs (CMCDC) for discussing/approving proposals
crore). It provided opportunity to retail investors to access relating to capital management/restructuring and dividend
bonds with smaller amount (as low as Rs 1,000) while payouts, including exemption proposals of CPSEs has
helping CPSEs mobilize debt at reduced cost. Based been set up. Consistent Dividend Policy was framed by
on this model, many Bond-ETFs based on G-Sec, State DIPAM (in November 2020) for ensuring predictability in
Development Loans (SDLs) and Corporate Bonds have dividend payment by companies. A predictable dividend
come to the market. regime helps in reviving investor interest and improve
market sentiments for CPSE stocks as predictability in
(ii) Special National Investment Fund (SNIF)
regular dividend payment would attract quality investors
The proposal for tendering 33,61,461 shares of
to CPSE stocks and retain them in the hope of a future
dividend. Government will also get predictable and
Scooters India Limited (SIL), held in Special National
periodic dividends as interim dividend. This policy has
Investment Fund (SNIF), in the delisting offer of SIL, was
been increasing compliances from CPSEs.
approved by the Alternative Mechanism in March, 2024
following which, the entire such shares of SIL held in SNIF There has been a significant rise in dividend
were tendered on 8th April, 2024. A sum of Rs.10.68 payouts by CPSEs in the last 3-4 years. The Government
crores was received on 2nd May, 2024, as a result this realized Rs. 59,533 crore, Rs.64,000 and Rs.74,129 crore
transaction. Scooters India Limited (SIL) was approved as dividend receipts from CPSEs for the FY 2022-23,
208Department of Investment and Public Asset Management IV
2023-24 and 2024-25 against the Revised Estimates of XIII. E-GOVERNANCE
Rs. 43,000 crore, Rs.50,000 crore and Rs. 55,000 crore
respectively. As a part of good governance through the use
of information technology, the following initiatives have
During the current FY 2025-26, the Government
been taken:
has realized Rs.49,580.47 crore against the Budget
Estimates (BE) of Rs. 69,000 crore as on (14.01.2026). (i) Website of the Department (www.dipam.gov.in)
is updated on a regular basis, in both English
X INITIATIVES UNDERTAKEN FOR PERSONS
and Hindi. The website is compliant with the
WITH DISABILITIES, SCHEDULED CASTES,
Guidelines for Indian Government Websites
SCHEDULED TRIBES AND OTHER
(GIGW).
BACKWARD CLASSES:
(ii) Maintenance of the Payroll Package
The staff strength in the Department along with
(iii) Implementation of e-Office
representation of Scheduled Castes, Scheduled Tribes,
Persons with disabilities and Other Backward Classes is (iv) Following web-based monitoring systems are in
given in Annexure-I & Annexure-II. place:
XI INITIATIVES RELATING TO GENDER ■ Rajya Sabha Question, Answer Monitoring
BUDGETING AND EMPOWERMENT OF System.
WOMEN
■ Centralized Public Grievance Redress and
The nature of allocated work of the Department Monitoring System (CPGRAMS)
does not have any scope for gender budgeting as far as ■ Centralized Tender/Procurement Monitoring
empowerment of women are concerned.
System. Tenders are regularly put on the
XII. OFFICIAL LANGUAGE POLICY website and e-Publishing in e-procurement
portal is being done regularly.
• The Department has a full-fledged Official
Language Unit to implement the Official Language ■ Representations of Reserved Categories
Policy. The website of the Department is in Posts and Services in Government of
bilingual. Hindi Section (Official Language)- India (RRCPS) Monitoring System (SC/ST
DIPAM, conducted multiple activities during Commission Portal).
2025–26: ■ APAR Monitoring system for IAS Officers
• Officers participated in Hindi Diwas & 5th All India (JS level & above), CSS/ CSSS Officers (All
Official Language Conference (14–15 Sept 2025) levels).
at Gandhinagar, chaired by the Hon’ble Home & (v). Cadre Management System (for CSS Officers).
Cooperation Minister.
(vi). Pension Portal
• Hindi Pakhwada (18–30 Sept 2025) included
(vii) Use of GeM portal
competitions like extempore speech, essay
(viii) Quarterly Rolling Plan
writing, dictation, word knowledge, and pictorial
(xi) Data Portal (Data.gov.in).
expression.
• Cash prizes (via e-payment) and certificates XIV. REDRESSAL OF PUBLIC GRIEVANCES
awarded to competition winners
The Department is using the Centralized Public
• Official Language Implementation Committee
Grievance Redress and Monitoring System (CPGRAMS).
(OLIC) meets quarterly as per MHA instructions.
The website of the Department also has an in-built
• OLIC meetings held on 24 June 2025 (Q1) and mechanism for receiving grievances from public. A Joint
29 Sept 2025 (Q2). Secretary has been designated as Nodal Grievance
Officer and Additional Secretary has been nominated as
• Workshops conducted to reduce hesitation
among staff in working in Hindi. Nodal Appellate Authority for the purpose.
209Annual Report 2025-2026
Internal Complaints Committee on Sexual harassment (iii) One Under Secretary has been designated
of women employees as the Nodal Central Public Information
Officer and 2 Deputy Director, 2 Assistant
In compliance with Supreme Court’s Judgement
Directors and 10 Under Secretaries as
dated 13th August, 1997 in Visakha case relating to
Central Public Information Officers under
prevention of sexual harassment of women at work place,
Section 5(1) of the Act, in respect of subjects
an internal complaints committee has been put in place for
handled by them.
considering complaints of sexual harassment of women
(iv) 4 Directors, 2 Joint Director and 6 Deputy
employees in Department of Investment and Public Asset
Secretaries have been designated as First
Management (DIPAM).
Appellate Authorities in terms of Section
In compliance with the provisions of the Sexual
19(1) of the Act for all matters relating to
Harassment of Women at Workplace (Prevention,
their Divisions.
Prohibition and Redressal) Act, 2013, an awareness
XVII. INITIATIVES FOR GOOD GOVERNANCE
workshop was conducted at DIPAM for all employees
on 16th and 17th October 2025, in collaboration with the
As per the mandate provided by the Government
National Commission for Women.
of India (Allocation of Business) Rules, 1961, the
XV. VIGILANCE MACHINERY Department is not involved in the delivery of any public
services and thus, does not have any direct interface with
An Additional Secretary has been designated as
the citizens or public at large. However, the Department
part-time Chief Vigilance Officer in the Department.
has initiated the following measures as a part of good
XVI. RIGHT TO INFORMATION ACT, 2005. governance.
Timelines have been prescribed for disposal of
In order to facilitate dissemination of information
transaction related bills to avoid delay and any scope of
under the provisions of the Right to Information Act,
corruption as also to promote good governance.
2005, the following initiatives have been taken by the
Department: XVIII. AUDIT PARAS/OBJECTIONS
(i) An RTI Cell has been set up to collect,
There are six Audit Paras are pending. Details
transfer the applications under RTI Act, 2005
are given at Annexure-III
to the Central Public Information Officers/
Public Authorities concerned and to submit XIX. INTEGRATED FINANCE UNIT
the quarterly returns regarding receipt and
The Integrated Finance Unit works under
disposal of the RTI applications/ appeals, to
Additional Secretary & Financial Adviser (Finance) and
the Central Information Commission.
deals with expenditure and Budget related proposals
(ii) Details of functions of the Department along of Grant No. 34 – Department of Investment & Public
with its functionaries etc. have been placed Asset Management - which includes Secretariat General
on Department’s website (www.dipam.gov. Services covering the establishment budget for the
Department of Investment & Public Asset Management.
in) in compliance with Section 4(1)(b) of the
RTI Act and is updated from time to time. The budget allocation under Grant No. 34 is as under: -
(Rs. in crores)
Grant No. Budget Estimates 2025-26
Capital Revenue Total
34 - Department of In-
vestment & Public Asset 1.70 55.43 57.13
Management
210Department of Investment and Public Asset Management IV
The Integrated Finance Unit monitors all financial During the Campaign the progress was regularly
and expenditure related proposals of the Department uploaded on the ‘SCDPM’ portal & posted on social
like appointment of consultants, foreign deputation/visits media platform and the pendency was brought down to
of officers etc. The expenditure trend of the Department the minimum level almost in all categories.
is consistently monitored by the Integrated Financial
XXI. Monitoring of Court Cases:
Unit (IFU). All budget related matters including issues
concerning Standing Committee on Finance come within
Monitoring of Court cases in DIPAM are now
the purview of this unit.
being done in Legal information briefing System 2.0
XX. Special Campaign 5.0 : (LIMBS 2.0). DD/US/DS level officers of every Division
have been designated as LIMBS user of DIPAM for the
DIPAM has no attached/ sub-ordinate office under
purpose of entry, updation and transferring of court cases
its administrative control. The Special campaign 5.0 was
in LIMBS portal. Therefore, the status of pending court
undertaken with full enthusiasm focusing on disposal of
pending references in the identified categories, reviewing/ cases are monitored regularly at the users level in the
weeding out of files, disposing of old unusable articles. divisions of the Department through LIMBS portal.
211Annual Report 2025-2026
Appendix-I
Status of Strategic Disinvestment Transactions
A. Transactions Completed
S.No. Name of CPSE
1. Hindustan Petroleum Corp Ltd (HPCL)
2. Rural Electrification Corporation Limited (REC)
3. Hospital Services Consultancy Corporation Limited (India) Limited
4. National Projects Construction Corporation Limited (NPCC)
5. Kamrajar Port Limited
6. THDC India Limited (THDC)
7. North Eastern Electric Power Corp Limited (NEEPCO)
8. Hindustan Newsprint Limited (subsidiary) (Renamed as KPPL)
9. Dredging Corporation of India Limited (DCIL)
10. Air India and its subsidiaries (AI)
11. Neelachal Ispat Nigam Limited (NINL)
12. Ferro Scrap Nigam Limited (FSNL)
B. CPSEs Recommended for Closure
S. No. Name of PSE
13. Hindustan flurocarbons Limited
14. Scooters India Limited
15. Bharat Pumps & Compressors Limited
16. Hindustan Prefab Limited
17. Cement corporation Ltd
C. Transactions failed and EoI Annulled:
S.No. Name of PSE
18. Pawan Hans Limited
19. Bharat Petroleum corporation Ltd
20. Alloy Steel Plant, Durgapur; Salem Steel Plant; Bhadrawati Steel Plant - units of Steel
Authority of India Limited.
212Department of Investment and Public Asset Management IV
D. Transactions not pursued (AM not approved):
S.No. Name of PSE
21. Rashtriya Ispat Nigam Ltd
22. Container Corporation of India Limited
E. Ongoing Transaction being processed by DIPAM
S.No. Name of PSE
23. IDBI Bnak
24. Indian Medicines Pharmaceuticals Corporation Ltd. (IMPCL)
25. NDMC Steel Limited (NSL)
26. BEML Limited
27. HLL Lifecare Limited
28. The Shipping Corporation of India Limited
F. Transaction being processed by respective Administrative Ministries
S.No. Name of PSE
29. Various Units of India Tourism Development Corporation Limited
30. Karnataka Antibiotics & Pharmaceuticals Limited (State Govt. opposed)
31. Hindustan Antibiotics Limited & its subsidiaries (negative net worth)
32. Bengal Chemicals & Pharmaceuticals Limited (adverse judicial order)
G. Transaction failed, Under consideration for Merger/Closure/Subsidiarisation
S.No. Name of PSE
33. Engineering Project (India) Limited
34. Bridge and Roof Company (India) Limited
35. Project & Development India Limited (PDIL,)
36. Central Electronics Ltd. (CEL)
213Annual Report 2025-2026
214Department of Investment and Public Asset Management IV
Annexure-I
Representation of SCs, STs, OBCs in respect of Department of Investment & Public Asset Management
Groups Number of employees Number of appointments made during the previous calendar year
(as on 18.12.2025) By Direct Recruitment By promotion By Deputation
Total SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs
A 39 8 1 6 0 0 0 0 0 0 0 0 0 0
B 19 3 3 3 0 0 0 0 0 0 0 0 0 0
C 14 7 0 5 0 0 0 0 0 0 0 0 0 0
Total 72 18 4 14 0 0 0 0 0 0 0 0 0 0
Annexure-II
Representation of the persons with disabilities in DIPAM
Group Number of employees By Direct Recruitment Promotion
(as on 18.12.2025) No. of Vacancies No. of appointments made No. of vacancies No. of appointments made
reserved No. of appoint-
ment reserved
made
Total VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH
A 39 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
B 19 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
C 14 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 72 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
215Annual Report 2025-2026
216Chapter - V
Department of Financial Services
1. Organisations /Institutions/ Regulators Public Financial Institutions (7)
Under DFS
• National Bank for Agriculture and Rural
Under the administrative control of the Development (NABARD)
Department of Financial Services (DFS), a total of 105
• Export -Import Bank of India (Exim Bank)
organizations fall into various categories, including Public
Sector Banks, Public Sector Life Insurers, Public Financial • India Infrastructure Finance Company Limited
Institutions, Regulators, Regional Rural Banks, DRTs/
(IIFCL)
DRATs, CERSAI, Office of Custodian, Office of Special
Court, and Court Liquidator. Below are the details of these • National Bank for Financing Infrastructure and
organizations:
Development (NaBFID)
Public Sector Banks (12) • Industrial Finance Corporation of India Limited
(IFCI)
• State Bank of India
• Punjab National Bank • National Housing Bank (NHB)
• Bank of Baroda • Small Industrial Development Bank of India
(SIDBI)
• Canara Bank
• Union Bank of India Regulators (3)
• Bank of India • Reserve Bank of India (RBI)
• Central Bank of India • Pension Fund Regulatory and Development
Authority (PFRDA)
• Indian Bank
• Insurance Regulatory and Development Authority
• Bank of Maharashtra
of India (IRDAI)
• UCO Bank
• Punjab & Sind Bank Regional Rural Banks (28)
• Indian Overseas Bank • Andhra Pradesh Grameena Bank
• Arunachal Pradesh Rural Bank
Public Sector Insurers (7)
• Assam Gramin Vikash Bank
• Life Insurance Corporation of India (LIC)
• Bihar Gramin Bank
• General Insurance Corporation of India (GIC)
• Chhattisgarh Rajya Gramin Bank
• The New India Assurance company limited
• Gujarat Gramin Bank
• United India Insurance Company Limited (UIICL)
• Sarva Haryana Gramin Bank
• The Oriental Insurance Company Limited (OICL)
• Himachal Pradesh Gramin Bank
• National Insurance Company Limited (NIC)
• Agriculture Insurance Company of India Limited • Jammu and Kashmir Grameen Bank
(AICIL) • Jharkhand Rajya Gramin Bank
217Annual Report 2025-2026
• Karnataka Grameena Bank • DRT, Cuttack
• Kerala Gramin Bank • DRT-1, Delhi
• Madhya Pradesh Gramin Bank • DRT-2, Delhi
• Maharashtra Gramin Bank • DRT-3, Delhi
• Manipur Rural Bank • DRT, Dehradun
• Meghalaya Rural Bank • DRT-1, Ernakulam
• Mizoram Rural Bank • DRT-2, Ernakulam
• Nagaland Rural Bank • DRT, Guwahati
• Odisha Grameen Bank • DRT-1, Hyderabad
• Puduvai Bharathiyar Grama Bank • DRT-2, Hyderabad
• Punjab Gramin Bank • DRT, Jabalpur
• Rajasthan Gramin Bank • DRT, Jaipur
• Tamil Nadu Grama Bank • DRT-1, Kolkata
• Telangana Grameena Bank • DRT-2, Kolkata
• Tripura Gramin Bank • DRT-3, Kolkata
• Uttar Pradesh Gramin Bank • DRT, Lucknow
• Uttarakhand Gramin Bank • DRT, Madurai
• West Bengal Gramin Bank • DRT-1, Mumbai
• DRT-2, Mumbai
DRTs (39)
• DRT-3, Mumbai
• DRT-1, Ahmedabad
• DRT, Nagpur
• DRT-2, Ahmedabad
• DRT, Patna
• DRT, Allahabad
• DRT, Pune
• DRT, Aurangabad
• DRT, Ranchi
• DRT-1, Bengaluru
• DRT, Siliguri
• DRT-2, Bengaluru
• DRT, Visakhapatnam
• DRT-1, Chandigarh
• DRT-2, Chandigarh DRATs
• DRT-3, Chandigarh • DRAT, Allahabad
• DRT-1, Chennai • DRAT,Chennai
• DRT-2, Chennai • DRAT, Delhi
• DRT-3, Chennai • DRAT,Kolkata
• DRT, Coimbatore • DRAT, Mumbai
218Department of Financial Services V
2. Organisational Chart Secretaries (JS), two Economic Advisers (EA) and a
Deputy Director General (DDG). The organisational chart
The Department is headed by the Secretary
(Financial Services) who is assisted by four Joint of the department is shown below:
219Annual Report 2025-2026
3 Work Allocation among Sections and Transfer of Undertakings) Act, 1970 and
1980 in respect of the matters pertaining to
At present, following sections and cells are within
Corporate Governance.
this department. The work allocation is as follows:
Banking Operation-II (BO-II)
Banking Operation-I (BO-I)
• Administration of all Acts/Regulations/Rules
• Appointment/nomination of following positions on
related to Financial Systems like the Negotiable
the Board of Reserve Bank of India and Public
Instruments Act, 1881, the Chit Funds Act,
Sector Banks:
1982 and the Price Chits and Money Circulation
• Governor/Deputy Governors of Reserve Bank of
Schemes (Banning) Act, 1978, etc., Banning of
India.
Unregulated Deposit Scheme Act, 2019
• Non-executive Chairman on the Board of
• Deposit Insurance and Credit Guarantee
Nationalised Banks.
Corporation (DICGC), Act, 1961
• The Chairman and the Managing Director in
• Coordination of work on matters related to
State Bank of India.
Disaster management and crisis management.
• The Managing Director and Chief Executive
• Payment and Settlement System Act, 2007
Officer and the Executive Director in
Nationalised Banks. • Matters relating to Digilocker, wherein the
• Government Nominee Directors on the Board proposal is to enable the updation of the address
of Reserve Bank of India and Public Sector of the account-holder in banks
Banks. • Disposal of appeals received under section 9 of
• Reserve Bank of India Nominee Director, the Payment and Settlement Systems Act, 2007
workmen and non-workmen employee
• Factoring Regulation Act, 2011
Directors on the Board of Nationalised Banks
• State Legislations – Protection of Interest of
and State Bank of India.
Depositors Acts of State Governments
• CA Category Directors on the Board of
Nationalised Banks. • Matters relating to Multi-Level Marketing and
Ponzi Schemes
• Part-time non-official Directors/Directors on
the Board of Reserve Bank of India, State • Setting up of IFSC – GIFT
Bank of India and Nationalised Banks. • International Relations (Banking) / Bilateral
• Members on the Local Boards of Reserve issues
Bank of India.
• International Cooperation in. WTO, RCEP, JCCII
• All the HR related matters of whole-time Directors and CEPAs/CECAs/FTAs of India with bilateral
of Public Sector Banks — such as determination and multilateral partners
of salary, allowances and other terms and
• Matters relating to Financial Sector Development
conditions including leave management, foreign
Council and its Sub-committees
tour, maintenance of annual performance
• Matters relating to Central Economic Intelligence
appraisal reports, post retirement commercial
Bureau (CEIB)
employment etc.
• Matters relating to office of Court Liquidator,
• Pension policy and related issues of whole-time
Kolkata
Directors of Public Sector Banks.
• Work relating to Government Agency Business
• Performance Linked Incentive Scheme for whole-
time Directors and Senior Executives of PSBs. • Financial Action Task Force (FATF)
• Sitting fee payable to Directors/Members of • Setting up of Currency Chest by banks in border
Reserve Bank of India and Public Sector Banks. districts (within 80 KMs of International Border)
• Administration of the Nationalised Banks • Rationalization of Bank Holidays / declaration of
(Management and Miscellaneous Provisions) bank holidays under section 25 of the Negotiable
Scheme, 1970/1980. Instruments Act, 1881
• Administration of the State Bank of India Act, • Know Your Customer (KYC) all matters – AML
1955 and the Banking Companies (Acquisition and CFT matters.
220Department of Financial Services V
Banking Operation-III (BO-III) • Appointment of advocates in PSBs
• Customer Service in Banks/FIs/Ins. • Residuary matters of Portuguese Banks in Goa
• All kinds of complaints/representations received • Opening and shifting of administrative offices of
from individual/ associations for redressal of their banks
grievances in these institutions such as delay in
• All Policy matters related to Banking Operation
clearance of cheques, non-payment/ non-issue of
such as Licensing, amalgamation, reconstruction,
drafts, non-issue/ delay in issue of duplicate drafts,
moratorium funds and acquisition of private
misbehavior/ rude behavior/ harassment on the
sector banks
part of staff of the Institution, non-settlement/
• Functioning of PSBs
delay in settlement of deceased accounts, non-
transfer/ delay in transfer of accounts from one • Notification regarding exemption from various
office to another, non-opening/ delay in opening sections of the Banking Regulation Act, 1949
of new accounts, non-compliance with standing and appointment of appellate authority to hear
instructions of the customers, non-payment of appeals under BR Act and Banking Companies
term deposits before maturity, delay in payment (Acquisition and Transfer of Undertakings) Act
to pensioners, including those related to credit of 1970 and 1980
cards, ATMs, etc. • Administration of all Acts/ Regulations/ Rules
• All kind of complaints received from DARPG/ related to Public Sector Banks, RBI and State
DPG relating to Public/ Private Sector/Foreign Level Banks
Banks/FIs/Ins. • Laying of annual reports and audit reports etc.,
• All kinds of complaints received from MPs/ VIPs/ of PSBs in Parliament.
PMO against Private Sector & Foreign Banks
Banking Operation & Accounts-II (BOA-II)
• Banking Customer Service
• Credit Information Companies (CICs)
• Banking Ombudsman
• Works relating to monitoring of NPAs and
• Coordination of PRAGATI meetings. Recovery including compromises and OTS of all
PSBs
Banking Operation & Accounts-I (BOA-I)
• Parliament matters, VIP/PMO references,
• Preparation of annual consolidated review on the
complaints and other matters relating to above
working of Public Sector Banks (PSBs) and laying
works
it on the Tables of both Houses of Parliament.
• All matters related to NPA/Stressed Assets (other
• Pattern of accounting and final accounts in Public
than Sectoral Stress), including relief measures
Sector Banks
by banks in area affected by natural calamities
• Study and analysis of the working results of PSU
• Stressed Assets Stabilization Fund (SASF)
Banks
• Audit of banks, appointment and fixation of
• Taxation matters of PSBs/ FIs
remuneration of auditors of PSBs/FIs
• Dividend payable to Central Government by
• Bank guarantees, Letters of Credit and Letters
PSBs
of Undertaking / Comfort by PSBs and related
• Scrutiny of the annual financial reviews of complaints
PSBs conducted by RBI under Section 35 of
• Citizen’s Charter of PSBs/RBI
the Banking Regulation Act, 1949 and follow up
• Acquisition/ Leasing/ Renting/ Vacation of
action
premises, Estate Officers under Public Premises
• Capital restructuring of PSBs (including
Act, 1971
restructuring of weak PSBs) and Government's
• Operation of foreign banks in India (including IDC
contribution to share capital, public issue of banks
and FDI Policy matters)
• Release of externally aided grants to ICICI Bank
• Banking Sector Reforms (including EASE Index
under USAID
and PSB Reforms Agenda)
• Disputes and arbitration between PSBs and
• NBFCs and Appellate Authority on NBFCs
between PSBs and other Govt. Departments/
PSEs • Operational risk management (other than
221Annual Report 2025-2026
cyber-security and digital payments security), • Laying of Annual Reports of all RRBs along with
including frauds and fugitive offenders review thereof
• Administration of all Acts/Regulations/Rules • Formation of Staff Service Regulation and
related to NBFCs and CICs, Promotion Rules for employees and officers of
• Statement of Intent / Key Performance Indicators RRBs, IR matters of RRBs
/ Performance evaluation of whole-time Directors
• Citizen's Charter of RRBs
• Insolvency Bankruptcy Code (IBC)
• Priority Sector Lending, Micro Finance and other
• Overseas branches of Indian banks. related matters which includes lending to weaker
sections including SC/ST, PM's New 15 Point
Industrial Relations (IR)
Programme for the Welfare of Minorities, Credit to
• Service matters of PSBs including IDBI/ RBI
minorities, follow up action of Select Parameters
• Industrial Disputes Act matters, HR matters
recommended by Sachar Committee, DRI
relating to PSBs and RBI Unions and Associations
Scheme.
in the Banking Industry, Bipartite settlements of
policy of transfer, promotion, and HRD in banks Insurance-I (Ins.-I)
• IB reports about political activities of bank • Corporate governance, appointment and service
employees matters pertaining to public sector insurers and
AICIL, Insurance Regulatory and Development
• Pay and Allowances of bank employees in
Authority of India, Council of the Institute of
overseas branches
Actuaries of India, Insurance Ombudsmen,
• HR Reforms.
Council of Insurance Ombudsmen, recruitment
Agriculture Credit (AC) and the terms and conditions of agents of the Life
• Credit flow to Agriculture and allied sectors Insurance Corporation of India, and insurance
appointment related matters pertaining to Banks
• Agricultural Debt Waiver and Debt Relief
Board Bureau Administration of the Actuaries Act,
Scheme, 2008
2006 and related matters.
• Matters relating to NABARD (including pension
matters of NABARD), Agriculture Finance • Matters of public entities relating to the Public
Corporation (except Service matters), State Premises (Eviction of Unauthorized Occupants)
Legislations on the subject, Co-operative Banks Act, 1971
(including Urban Co-operative Banks), external • Parliamentary, audit, right to information, court,
aided projects relating to rural/agriculture credit,
arbitration and VIP reference related matters and
appeals made by co-operative banks, financial
dealing with matters referred through receipts
assistance to persons affected by natural
or otherwise in respect of any of the items
calamities, riots disturbances, etc. Bank credit
enumerated above or connected thereto.
to KVIC, handloom and handicraft sector
Insurance-II (Ins.-II)
• Citizen Charter of NABARD
• Administration of the Insurance Act, 1938;
• Appointment of CMDs & Directors of NABARD
Life Insurance Corporation Act, 1956; General
• Kisan Credit Card (KCC) Scheme
Insurance Business (Nationalisation) Act,
• Secretarial assistance to the designated
1972; Insurance Regulatory and Development
appellate authority in regard to appeal by Urban
Authority Act, 1999 and related matters, other
Cooperative banks against cancellation of license
than those related to corporate governance,
by RBI.
appointment and service matters or those relating
Regional Rural Banks (RRB) to recruitment and the terms and conditions of
• Legislative matters with regard to RRB Act, 1976 agents of the Life Insurance Corporation of India
and framing of rules there under • Policy matters relating to insurance, and to this
• Nomination of non-official directors on the end, analysis of the trends and development in
Board of RRB, appointment of Chairman, and the performance of the insurance sector and
Recommendation of RRBs, review of performance various bodies established by or under the said
of RRBs, wage revision, manpower planning Acts
222Department of Financial Services V
• Administrative matters pertaining to public sector (e) Stand Up India (SUPI) (Policy & implementation)
insures and Agriculture Insurance Corporation
• Work relating to financial inclusion, coordination
of India Limited (AICIL), other than governance,
with other sections, offices, institutions etc on
appointment and service matters
Financial inclusion
• Assessment of capital requirements, divided
• Branch expansion of banks
payouts and performance of public sector
• Lead Bank Scheme and Service Area Approach
insurance and AICIL
• District and State Level Bankers' Committee
• Social security schemes for insurance protection
and other insurance schemes sponsored/ (SLBC)
supported by the Government • Regional imbalances of banking network, matters
• Insurance Ombudsman Rules and administration related to Business Correspondents/Business
thereof, other than corporate governance, Facilitators, Mobile Banking etc.
appointment and service related matters • Deployment of banking touchpoints/BCs/ATMs
pertaining to Insurance Ombudsman and the
and Jan Dhan Darshak App (JDD) related issues
Council of Insurance Ombudsman
• BC related policy matters including monitoring of
• Foreign investment in insurance sector
their activities
• Reforms in the sector and public sector insurers,
• Matters relating to Minimum deposit balance,
including adoption of technology in insurance
cash handling & digital payment charges
(except matters allocated to the Cybersecurity
• Administrative matters of Mission Office
and FinTech Section)
• Banking matters Pradhan Mantri Jan Dhan
• Supporting the section in charge of international
Yojana (PMJDY), Mission Office
cooperation matters on insurance related aspects
of international cooperation • India Post Payment Banks (IPPB) and other
• Taxation matters relating to insurance sector payment bank related matters
• Matters relating to the industry, including those • Inter- State Zonal Council Meetings
raised by industry bodies/ associations • Aspirational District, LWE and other interventions
• Implementation of Law Commission Reports for financial inclusion by Government
• All residual matters relating to insurance which • Financial Literacy, Coordination with RBI on
are not enumerated specifically as an item of National Strategy for Financial Inclusion (NSFI)/
work allocated to either Insurance-I Section or Financial Inclusion Advisory Committee FlAC)/
Insurance-II Section TGFIFL and related issues.
• Parliamentary, audit, right to information, court, • Matter related to 75 Blocks – DoNER program
arbitration, VIP reference related matters and (SAMBHAV), SVAMITVA Scheme, Antyodaya
dealing with matters referred through receipts program, AKAM 2.0, SVANidhi. PM Vishwakarma
or otherwise in respect of any of the items Scheme etc.
enumerated above or connected thereto.
Industrial Finance-I (IF-I)
Financial Inclusion (FI)
• Administration of the Export-Import Bank Act-1981
• National Mission for Financial Inclusion (NMFI) and Scheme for financing Viable Infrastructure
related matters including monitoring of flagship Projects (SIFTI) of IIFCL, Operational/Policy/
schemes of DFS: Budgetary matters relating to Exim Bank, IIFCL,
(a) Pradhan Mantri Jan Dhan Yojana (PMJDY) IWRFC and IIBI Ltd.
(Policy & implementation) • Matters related to IFCI Ltd, IDFC Ltd, winding
(b) Pradhan Mantri Jeevan Jyoti Bima Yojana up matter related of IIBI Ltd, and other related
(PMJJBY) (Only implementation) matters
(c) Pradhan Mantri Suraksha Bima Yojana • Board level Appointments-Whole Time Directors-
(PMSBY) (Only implementation) IIFCL, EXIM, IFCI Ltd and their personnel matters
(d) Pradhan Mantri Mudra Yojana (PMMY) • Government Nominee Directors-EXIM Bank,
(Policy & implementation) IIFCL, IFCI Ltd. and IDFC Ltd.
223Annual Report 2025-2026
• Non-Official Directors/Independent Director in • Appointment of Board Members of NCGTC.
-EXIM Bank, IIFCL and IFCI Ltd.
• Laying of annual reports of SIDBI and NHB before
• Sector-specific matters like infrastructure, power, the Parliament.
textiles, exports; steel, telecom, road, shipping
• Matters related to Account Aggregator Framework.
(added) etc. matters related to sectoral issues
• Matters related to post winding up of Board for
• Laying of annual reports of IIFCL, EXIM Bank,
Industrial and Financial Reconstruction (BIFR)
IFCI Ltd and Liquidator’s report of IIBI Ltd. Before
& Appellate Authority for Industrial & Financial
the parliament
Reconstruction (AAIFR).
• Matters related to Ratnagiri Gas and Power Pvt.
• Matters related to Educational Loans.
Ltd (RGPPL)
• Mutual Credit Guarantee Scheme for MSMEs,
• Citizen's Charter of EXIM Bank and IIFCL
Emergency Credit Line Guarantee Scheme
• All matters related to resolution and registration (ECLGS), Loan Guarantee Scheme for COVID
issues of Asset Reconstruction Company (ARC) Affected Sectors (LGSCAS), Credit Guarantee
and to track the activities of the ARCs Scheme for Microfinance Institutions (CGSMFI)
and Credit Guarantee Fund Scheme for Factoring
• All matters related National Investment and
(CGFSF).
Infrastructure Fund
• Credit related matters with respect to Micro, Small
• Appointment of Statutory Auditor in EXIM Bank
and Medium Enterprises (MSMEs), Housing,
• Media and Publicity related matters of DFS
Microfinance Institutions, Self-Help Groups
• Project Monitoring Group (PMG) Meeting (SHGs), Prime Ministers Employment Generation
• Partial Credit Guarantee Scheme (PCGS) Programme (PMEGP), Trade Receivables
electronic Discounting System (TReDS), Credit
• Joint Parliamentary Committee (JPC) (which
Assessment Model for MSMEs, matters related
enquired into irregularities in securities
to Micro Credit Card and psbloansin59minutes
transactions)
portal.
• Disciplinary action against bank employees/
• VIP/ PMO references, Audit Paras, Budget
executives involved in irregularities in securities
Announcements, Parliament Questions,
transactions.
Assurances, RTI requests/ appeals, Court Matters,
• Office of Custodian General Grievances on the aforementioned
• Establishment matters relating to Special matters.
Courts/Office of the Custodian
Vigilance and Monitoring Cell
• All issues pertaining to continuation of posts,
• Consultation with CVC/CTE
budget matters of the O/o Custodian and
• Nomination of CVOs for PSBs/FIs/PSICs
Special Court including extension of the O/o
Custodian and appointment of Custodian • Correspondence with CBI
• Annual Action Plan on Anti-Corruption measures
Industrial Finance-II (IF-II)
• Investigation of cases of frauds by CBI & RBI
• Administration of National Housing Bank Act,
1987. • Matters under Prevention of Corruption Act
• Administration of Small Industries Development • Preventive vigilance
Bank of India Act, 1989. • Vigilance systems and procedures in RBI/PSBs/
FIs and Insurance Companies PFRDA and
• Administration of State Financial Corporation Act,
IRADI/RBI
1951.
• Inquiry into complaints against GMs/EDs and
• Operational and Policy matters relating to Small
CMDs of PSBs/FIs/PSICs/PFRDA and IRADI/
Industries Development Bank of India (SIDBI),
RBI and Vigilance Surveillance over them
National Housing Bank (NHB) and National
Credit Guarantee Trustee Company Limited • Major frauds in PSBs (in India and abroad)
(NCGTC). • PMO references on anti-corruption measures
• Appointment and all personnel matters of Whole • Bank security, robberies & loss prevention in
Time Directors in SIDBI and NHB. banks
224Department of Financial Services V
• Sanction of prosecution in case of ED/CMDs • Coordination with NIC for the Department
• War Book Matters • Management of the Department’s website and
web services
• Annual Reports of CVC
• Conduct Regulation in PSBs/FIs, employment Debts Recovery Tribunals (DRT)
after retirement regulations in PSBs • Establishment of DRTs/DRATs under the
• CVC/CBI references relating to DRTs/DRATs Recovery of Debts due to Banks and Financial
Institutions Act, 1993,
• Vigilance clearance, sanction of prosecution and
any other matter of Board level appointees of • Administration of Recovery of Debts and
PSBs, FIs, PSICs, PFRDA, IRDA and RBI Bankruptcy (RDB) Act, framing or amending rules
for implementing of the provisions of the Act,
• Vigilance matters of Officials in DFS, Officers of
Office of Custodian and Government Officials in • Filling up of the posts of Chairpersons, Presiding
DRTs/DRATs. Officers, Registrars, Assistant Registrars,
Recovery officers, and other posts in DRTs/
Cybersecurity and FinTech (IT)
DRATs
• Matters relating to overall cybersecurity for the
• Issuing clarifications/guidelines etc. on
financial services sector and in the Department
administrative matters/review,
• Coordination of FinTech and Deep Tech (artificial
• Progress and disposal of cases by DRT/DRATs,
intelligence, big data, block chain, etc.) matters
related to the financial services sector and • Budget provisions, monitoring, etc relating to
the Department (including matters related to DRTs/DRATs,
e-payments in the banking system) • Administration of SARFAESI Act, appointment
• Matters relating to e-Governance in all FIs of Registrar/MD & CEO, CERSAI, ease of
and e-Payments in banking system and doing business agenda- flowing from recent
computerisation of PSBs amendments
• Promotion of digital payment including National • CKYC matters under Prevention of Money
Common Mobility Card (NCMC) scheme of Laundering Act, 2002,
MoHUA, Direct Benefit Transfer (DBT), Digital
• Policy matters relating to Central Registry of
Payment Infrastructure (DPI), matter related to
Securitisation Asset Reconstruction and Security
NPCI and its subsidiaries.
Interest (CERSAI), a PSU, including the Central
• Matters relating to Payment Regulatory Board Registry under the SARFAESI Act, 2002.
(PRB) constitution and matters related to PRB.
Pension Reforms (PR)
• Incentive scheme for Promotion of RuPay Debit
• Reforms in the Pension Sector
Cards and low-value BHIM-UPI transactions
(person-to-merchant) • Policy matters with respect to NPS, Atal Pension
• Scorecard of banks for promotion of digital Yojana and Swavalmban Scheme
payments • Administration of PFRDA Act, 2013
• On-boarding of merchants on digital payment
• Framing of rules under PFRDA Act, 2013
platforms
• Appointments of Chairperson and Board member
• Matters related to various modes of digital
of PFRDA, CVO in PFRDA, Budget and Funds of
payments including UPI, BHIM - QR, RuPay Debit
PFRDA and Legislative and policy prescriptions
and Credit cards, IMPS, USSD, PoS, etc.
to PFRDA.
• Charges levied on various modes of payments
• Legislative and policy prescriptions to PFRDA
including Merchant Discount Rate (MDR)
• Frauds related to various modes of digital Parliament
payments including online frauds • Collection, identification and marking of Parliament
• Matters related to app based digital payment and Questions, Notices, admitted Questions, and
digital lending platforms except regulation getting the files approved from the Minister
• Banking matters relating to digital payment • Preparation of facts and replies for pads of
platforms Ministers
225Annual Report 2025-2026
• Keeping track and record of pending Assurances, • Staff Meeting of Secretary (FS)/ Senior Officers
Special Mentions and References under 377 Meeting (SOM)
and other matters as mentioned in the Induction
• Monitoring & Review of disposal of VIP references,
Material
PMO references, coordination of RBI pending
• Presidential address to the Joint Session of matters
Parliament
• Parliament Questions regarding VIP references
• Compilation and submission of material for
• Monthly DO letter to Cabinet Secretary from
Parliament Questions to other Ministries/
Secretary (FS)
Departments
• Updation of Induction Material for DFS; Co-
• Parliamentary Committee Matters.
ordination of VIP, PMO, President-Sectt.,etc,
Welfare Section & Reservation Cell
references involving more than two Divisions of
• Matters relating to recruitment, promotion DFS.
and welfare measures of SC/ST/OBC/PH
RTI Cell
and Ex-servicemen in Public Sector Banks/
Financial Institutions and Public Sector Insurance • Single reference point to receive applications,
Companies (PSBs/FIs/PSICs) appeals, complaints and decisions of the Central
Information Commission;
• Matter of policy regarding reservation for these
categories in PSBs/FIs/PSICs, reservation • Replies of all the RTI Applications/ Appeals
matters in RRBs etc. through the respective Section/CPIOs;
• Inspection/examination of Reservation Roster for • Uploading of all complaints and decisions of CIC
SCs/STs/OBCs in PSBs/FIs/PSICs, Assistance on the computerised diary system;
to the Liaison Officer for smooth functioning and
• Segregation of RTI applications/appeals
discharging of his duties and responsibilities
pertaining to life and liberty and forwarding the
as Liaison Officer for SC/ST/OBC/EWS/PwD,
same to the concerned CPIOs without delay so as
preparation / maintenance of reservation roster of
to ensure action/response within the timeframe
SC/ST/OBC/EWS/PwD for the proper secretariat
specified in the Act;
of this Department, reply to Parliament Questions/
• Transfer of RTI applications not pertaining to this
National Commission for SC/ST/OBC/PwD in
Department to concerned Public Authority;
respect of SC/ST/OBC/EWS/PwD staff of the
Department, maintenance of data of SC/ST/OBC/ • Coordination of this Department regarding;
EWS/PwD staff of the Department, submission
• Proactive disclosures under Section 4 of the RTI
of all reports/ information to other Ministries/
Act, 2005;
Departments/Parliamentary Committees, etc. in
• Systematic changes that can be introduced to
the related matters.
reduce the number of queries on a particular
Establishment (Estt.) area/process;
• Matters pertaining to the Officers and Staff • Formulation of FAQs on information that can be
of DFS including RRs, appointment, ACRs, accessed from the Department;
deputation (including abroad), training, IWSU,
• Information dissemination through identified
SIU, welfare, review of officers under FR 56(J),
means;
internal vigilance, staff grievances, pension, etc.
• Maintaining lists of CPIOs, FAAs and link officers;
• Grant of various advances to officers and staff,
payment of fees to advocates, settlement of • Annual report of the CIC;
medical claims and CGHS matters, family welfare • Undertaking any other activity or supplementary
programme. function which is required under the provisions
of the RTI Act as notified from time to time
Coordination (Coord.)
• Organisation of FM's meetings with CEOs of • Preparation of the periodic monitoring reports
PSBs and regional consultative committee regarding disposal of RTI requests/Appeals and
meetings compliance of CIC instructions.
226Department of Financial Services V
General Administration (GA) • Analysis of other international reports relevant to
banking sector in India
• Housekeeping/Security matters, cleanliness,
stores, canteen, R&I, library, • Analysis of Reports of committees on Financial
Sector Reforms etc.
• Staff Car Drivers, vehicles to the officers of DFS
• Management Information System - collection,
• Purchase of Computer Hardware and
collation of data relating to Banking Industry,
maintenance of Computers, Printers and other
equipment • Result Framework Document (RFD), Speeches
of FM/MOS on different occasions
• Maintenance of furniture and electricity items
• Audit Paras
• Logistic support for arranging farewell of staff of
DFS • UN e-Government Index & Digital Services
• Work related to committee of Financial Sector
• Providing of Identity Cards to the Staff of DFS
Statistics
and CMDs/EDs/PROs of Public Sector Banks/
Financial Institutions/Insurance companies, etc. • Coordination of budget proposals of DFS.
Matters related to Budget Announcements,
Official Language
Output-outcome Monitoring Framework
• Implementation of Official Language Policy of the
• Sustainable Development Goals – Indicators
Government
pertaining to DFS.
• Translation work relating to Parliament Questions
GST Cell
• Standing Committees, Minutes of the Meetings
• Overseas preparedness of all institutions under
• Hindi Teaching Scheme and other miscellaneous DFS to implement GST, to provide inputs to the
work as mentioned in induction material of DFS. " Banking, Financial and Insurance" Sectoral
Group with reference to GST
Reservation Cell
• Other matters related to coordination, rollout and
• Assistance to the Liaison Officer for smooth
implementation of GST w.r.t institutions under
functioning and discharging of his duties and
administrative control of DFS etc.
responsibilities as Liaison Officer for SC/ST/
OBC/EWS/PwD, preparation / maintenance of Surplus Cell
reservation roster of SC/ST/OBC/EWS/PwD for • All service matters and day to day administrative
the proper secretariat of this Department, reply matters related to surplus staff of AAIFR & BIFR
to Parliament Questions/National Commission including their redeployment
for SC/ST/OBC/PwD in respect of SC/ST/OBC/
• Consultation with DoPT, handling of court cases
EWS/PwD staff of the Department, maintenance
of surplus staff, RTI and personal matters of
of data of SC/ST/OBC/EWS/PwD staff of the
surplus staff such as leave, retrial benefits, perks
Department, submission of all reports/ information & allowances etc.
to other Ministries/Departments/Parliamentary
Legal Monitoring Cell
Committees, etc. in the related matters.
• Monitoring of court cases and follow-up with
Data Analysis (DA)
concerned Sections to effectively meet the
• Reserve Bank of India Credit Policy - Busy timelines
Season - Slack Season and selective credit
• Management and updation of court cases of the
control
Department on LIMBS portal and keeping track
• Financial sector assessment and sectoral credit of court cases of the Department on the websites
analysis of Hon’ble Supreme Court/Hon’ble High Courts/
Hon’ble Central Administrative Tribunal etc.
• Banking Statistics regarding bank deposits and
advances • Receiving of court cases/correspondence related
to court cases and their marking/distribution to
• Deposits and advances of banks
concerned Sections
• Rates of interest on bank deposits and advances
• Payment of legal bills and matters related to
• Dissemination of results and important information appointment of Central Government Standing
relating to RBI, IBA, studies on banking reforms Counsel for the Department
227Annual Report 2025-2026
4. Developments in Banking Sector Sector Banks (PSBs) by improving existing processes
across several domains, Enacting and modifying multiple
4.1 Overall condition of Banking Sector
legislature and setting-up comprehensive frameworks to
address the challenges faced by PSBs.
The banking system in India, which evolved
over several decades, is well established and has been The measures taken by the Government, include,
inter alia, the following:
serving the credit and banking needs of the economy.
The banking ecosystem is providing impetus to economic 4.1.1 Credit discipline:
growth and development of the country and catering to
Enactment of the Insolvency and Bankruptcy
the specific and varied financial requirements of different Code, 2016
customers and borrowers. The Insolvency and Bankruptcy Code, 2016
(IBC) has laid down a collective mechanism
Government’s commitment to reforms in the
for resolution of insolvencies in the country by
financial sector was announced at “Retreat for Banks and
maintaining a delicate balance for all stakeholders
Financial Institutions” called “Gyan Sangam” held in 2015.
to preserve the economic value of the entities and
Later in Aug-2015, Government launched “Indradhanush” to complete the process in a time bound manner.
scheme for comprehensive framework to revamp and It has:
improve financial state of PSBs including capital infusion • Empowered creditors of a Corporate Debtor;
plan over four years, from FY2015-16 to FY2018-19 • Led to behavioral change in the debtor-
creditor relationship by shifting the focus from
Government’s commitment to reforms in the
the 'Debtor in Possession' to a ‘Creditor in
financial sector was announced at “Retreat for Banks and
Control’ regime.
Financial Institutions” called “Gyan Sangam” held in 2015.
Till September 2025, 8,659 corporate insolvency
Later in Aug-2015, Government launched “Indradhanush” resolution process (CIRPs) are admitted at NCLT,
scheme for comprehensive framework to revamp and out of which, CD was rescued in 3,865 cases.
Out of this, resolution plans were approved in
improve financial state of PSBs including capital infusion
1,300 cases wherein creditors have realised an
plan over four years, from FY2015-16 to FY2018-19.
aggregate amount of ₹ 3.99 lakh crore. The fair
Government implemented a comprehensive 4R’s value and liquidation value of the assets available
with these CDs, when they entered the CIRP,
strategy of Recognising NPAs transparently, Resolution
was estimated at ₹ 3.58 lakh crore and ₹ 2.35
and Recovery, Recapitalising PSBs, and Reforms in the
lakh crore, respectively, as against the total
financial system to address the challenges faced by PSBs.
claims of the creditors worth ₹ 12.31 lakh crore.
The creditors have realised 170.09% of the
liquidation value and 93.79% of the fair value
(based on 1177 cases where fair value has been
Over the last decade the Government has
undertaken an array of initiative to strengthened the Public
228Department of Financial Services V
estimated). The resolved CDs resulted in b. The Recovery of Debts and Bankruptcy Act,
realisation of more than 32.44% as against the 1993
admitted claims. The haircut for creditors relative The Recovery of Debts and Bankruptcy Act,1993
to the fair value of assets was around 6%, while has been amended with the provision for three
relative to their admitted claims is around 67%. months imprisonment in case the borrower does
not provide details of property/assets other than
Furthermore, this realisation does not include the
those properties/assets specified by the lender
CIRP cost, and many probable future realisations
while filing the application to the DRT.
such as equity, realisation from corporate and
c. Debt Recovery Tribunal
personal guarantees, funds infused into the CD
Jurisdiction of Debt Recovery Tribunal (DRTs)
including capital expenditure by the resolution
was increased from ₹10 lakh to ₹20 lakh to
applicants, and recovery from avoidance enable the DRTs to focus on high value cases.
applications.
4.1.3 Enhanced Access & Service Excellence
[source: Insolvency and Bankruptcy Board of (EASE)
India]
The EASE Reforms Agenda journey since
2018 has been instrumental in transforming PSBs
4.1.2 Recognition and resolution of stress:
from traditional, process-heavy institutions into digitally
a. Securitisation and Reconstruction of
empowered, customer-centric, and resilient banks. Each
Financial Assets and Enforcement of Security phase of EASE has built upon its predecessor, aligning
Interest Act, 2002 Indian banking with global standards of governance,
technology, and sustainability.
Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, Through EASE framework, an objective
2002 (SARFAESI Act) has been amended and process of incremental reforms in sync with the evolving
ecosystem has been institutionalized across PSBs.
it was provided for the District Magistrate / Chief
EASE Reforms Agenda, deeply ingrained in PSBs and
Metropolitan Magistrate to pass orders for the
a key priority for bank leadership, provides a common
purpose of taking possession of the secured
agenda accounting for requirements of all banks and
assets by lenders within a period of thirty days reflects the industry priorities from short- and long-term
from the date of application. perspectives.
The current EASE 8.0 (FY26) edition EASE is future-ready, resilient, customer-centric institutions
a comprehensive reform framework for PSBs covering aligned with a vision of Government of India.
risk resilience, digital and AI adoption, inclusive
Driving Innovation for Business Process
banking, sustainability, customer experience, and Re-Engineering & Customer Excellence, EASE 8.0
operational excellence. Its objective is to prepare PSBs as is anchored on four reform themes under the acronym
229Annual Report 2025-2026
R.I.S.E.- Risk & Resilience, Innovation, Socio-economic with a view to widening the talent pool and
Impact (Viksit Bharat), and Excellence comprising 16 aligning senior management appointments in
reform indicators. As PSBs continue under EASE 8.0,
PSBs with global best practices, all Managing
they are poised to play a pivotal role in enabling the
Director & Chief Executive Officer (MD & CEO)
vision of Viksit Bharat @2047.
posts in nationalised banks, one Managing
4.1.4 Governance in PSBs Director (MD) post in the State Bank of India,
and one Executive Director (ED) post in large
Governance in PSBs has been strengthened
nationalised banks have been opened for private
through:
sector candidates; and
arm’s length selection of top management
recruitment of CXOs viz., Chief Risk Officer, Chief
through FSIB;
Compliance Officer, Chief Economist from the
introduction of non-executive chairmen in
market.
nationalised banks;
widening talent pool and instituting performance- 4.1.5 Consolidation of PSBs
based extensions for MD;
Consolidation of PSBs, over the last decade has
instituting appraisal by Boards of top management resulted in enhancing the efficacy of the banking sector
and NODs; by leveraging economies of scale and synergies.
The consolidation exercise has resulted in raising capital from the market instead of depending upon
marked improvement in the financials and governance in the Government for recapitalization.
these banks. Profits of PSBs have reached all time high
4.1.5 National Asset Reconstruction Company Ltd.
and they continue to expand their reach to every nook and
corner of the country. Their capital base has strengthened • The details in respect of acquisition of assets are
and their asset quality has improved. Banks are now as under:
(Amounts in crore ₹)
Stage No. of a/c Amount involved Purchase Amount Govt. Guarantee issued
Acquired* 30 1,63,289 31,379 21,922
Off er made 4 7,530 - -
Under evaluation
3 32,259 - -
(Due Diligence)
Total 37 2,03,078 31,379 21,922.74
* 2 accounts acquired as Resolution Applicant having total exposure of ₹ 32,815 crore at an acquisition amount of
₹ 5,555 crore.
230Department of Financial Services V
• As on 03.12.2025, NARCL has already acquired The programme featured a fireside chat,
30 borrower entities, with an aggregate debt and open house sessions, covering themes such as
exposure of ₹ 1,63,289 crore. (Out of these customer experience, governance, purposeful innovation,
30 accounts, NARCL is acting as Resolution credit growth, risk management, workforce readiness,
Applicant in 2 cases with total debt exposure of
technology modernisation, and national priorities.
₹ 32,815 crore). NARCL has informed that they
Deliberations focused on reimagining customer journeys
have recovered ₹ 4,570 crores in 20 accounts,
in a digital era, embedding governance and operational
with ₹ 2,588 crore being recovered in FY
excellence, fostering purposeful innovation, ensuring
2025-26.
sustainable credit growth, strengthening risk management
4.1.7 Initiatives during FY 2025-26: frameworks, and developing an inclusive and future-ready
workforce.
The Banking Laws (Amendment) Act, 2025 has been
notified to enhance governance standards, strengthen
An important outcome of PSB Manthan 2025
protection for depositors and investors, improve audit
was a shared sense of direction that emerged over the
quality in PSBs, shift statutory reporting by banks to the
two days of deliberations. The discussions set near-
RBI and streamline nomination processes for customer
convenience. term priorities around governance, customer service,
technology, and credit delivery, while also outlining a
long-term pathway for Public Sector Banks to align with
sustainable growth and evolve into globally competitive
institutions to realise the vision of Viksit Bharat 2047.
PSB Manthan 2025 reaffirmed that the future
of Indian banking will be shaped by bold ambitions and
transformative purpose, with Public Sector Banks playing
a central role in advancing national priorities and aspiring
to emerge as institutions of global standing.
PSB officially released report of PSB Manthan
2025 on 12th November 2025, outlining the Public Sector
Banks’ collective vision and roadmap towards Viksit
4.1.7.2 PSB Manthan Bharat @ 2047.
The Department of Financial Services (DFS),
4.1.7.3 Your Money, Your Right Campaign:
Ministry of Finance, organised PSB Manthan 2025 12-13
September 2025, a two-day programme which was The Government of India has launched a
attended by senior leadership of Public Sector Banks
nationwide campaign titled “आपक(cid:551) पूँजी, आपका अ(cid:876)धकार
along with regulators, industry experts, academicians,
— Your Money, Your Right” to facilitate the settlement
technologists, and banking practitioners.
of unclaimed financial assets, including bank deposits,
insurance, dividends, shares, mutual fund and pension,
to their legitimate claimants.
The Campaign, launched on 4th October 2025 is
built on the 3A Framework — Awareness, Accessibility
and Action. This three-month drive (October–December
2025) is implemented across every State and Union
Territory. To maximize outreach during the campaign,
Standard Operating Procedures (SOPs), Frequently
Asked Questions (FAQs), and awareness material
in major regional languages—along with short video
messages—have been widely disseminated. District-
level camps are organized with on-ground digital
demonstrations, helpdesks, and guided support to simplify
the claims process.
231Annual Report 2025-2026
The campaign entails collaborative participation post in the State Bank of India, and one Executive Director
of all major financial sector fund regulators—RBI, SEBI, (ED) post in large nationalised banks have been opened
IRDAI, PFRDA and IEPFA. Existing platforms such as for private sector candidates. The key provisions of the
RBI’s UDGAM (for unclaimed bank deposits), IRDAI’s revised consolidated guidelines are as under:
Bima Bharosa (for unclaimed insurance proceeds) and
• Age and Residual Service: The guidelines lay
SEBI’s MITRA (for unclaimed mutual funds) have
down the minimum age criteria and residual
empowered citizens to trace their unclaimed assets more
service requirements for appointment, extension
efficiently.
of tenure, and re-appointment.
4.1.7.4 Consolidation of guidelines for appointment
• Date of Reckoning of Eligibility: For all
of Whole-Time Directors in Public Sector
positions except Executive Directors, the
Banks:
guidelines provides that eligibility will be assessed
The Appointments Committee of the Cabinet based on the date the vacancy arises. For
(ACC) has approved the proposal of Department of Executive Directors, eligibility will be determined
Financial Services to revise and consolidate guidelines as on the first day of April of the relevant financial
for appointment of Whole-Time Directors (WTDs) in year.
Public Sector Banks (PSBs), in supersession of all earlier
• Educational Qualifications: The guidelines
instructions in the matter. The earlier guidelines, issued
prescribe a uniform minimum educational
since 2011, from time to time, were scattered across
approximately 13 sets of instructions and lacked a unified qualification of graduation for all positions.
structure, which often led to interpretational difficulties • Experience and Service Requirements:
and procedural challenges in processing appointment The guidelines specify minimum experience
proposals. The revised consolidated guidelines establish
requirements and lay down separate eligibility
a uniform and comprehensive framework to ensure
criteria for candidates from Public Sector Banks
consistency, transparency and alignment with the
and for candidates from the private sector.
evolving banking and governance landscape.
• Selection Process: The guidelines clearly lay
The guidelines introduce a standardised set
down the selection process to be followed for
of evaluation criteria applicable to each WTD position,
appointing candidates to different positions.
thereby enhancing clarity, objectivity and procedural
• Vigilance and Regulatory Clearances: The
efficiency in appointments. Further, with a view to
widening the talent pool and aligning senior management guidelines mandate obtaining vigilance clearance
appointments in PSBs with global best practices, all from the Central Vigilance Commission in
Managing Director & Chief Executive Officer (MD & CEO) respect of candidates from the public sector
posts in nationalised banks, one Managing Director (MD) and clearance from the Intelligence Bureau
232Department of Financial Services V
in respect of candidates from the private Institutions Bureau (FSIB), as well as the validity
sector. The guidelines also require mandatory period of such panels.
consultation with the Reserve Bank of India for • Additional Charge Arrangements: The
all appointments. guidelines provide a specific mechanism for
assigning additional charge in the event of
• Term of office: The guidelines provides for the
a vacancy in the post of the executive head
term of office for all the positions in line with the
of a public sector bank, to ensure continuity
existing provisions. of leadership during the interim period. This
provision was not present in the earlier guidelines.
• Salary and Conditions of Service: The
• Penalty and Integrity Provisions: The guidelines
guidelines provide that the salary and other
provide that a candidate shall be rendered
conditions of service shall be determined by the
ineligible in the event of having been awarded
Central Government from time to time. two or more major penalties. This provision is
intended to uphold probity and ethical standards.
• Validity of Panels: The guidelines clearly
stipulate the size of the panel, including the 4.1.7.5 Appointment/extension of Deputy Governors
number of candidates on the waiting list, to of Reserve Bank of India and Board level
be recommended by the Financial Services Directors of Public Sector Banks:
(i) Deputy Governor, RBI
Appointment - 02
Re-appointment - 01
(ii) Managing Director, SBI
Appointment - 01
Re-appointment - 01
(iii) MD & CEO, Nationalised Banks
Appointment - 02
Extension of Term - 02
(iv) Executive Directors, Nationalised Banks
Appointment - 07
Extension of Term: - 11
(v) Part-time Non-official Director
Re-nomination - 11
233Annual Report 2025-2026
4.1.7.6 Revision of sitting fee of Directors of Public lakh crore. The fair value and liquidation value of the
Sector Banks: assets available with these CDs, when they entered the
CIRP, was estimated at ₹ 3.58 lakh crore and ₹ 2.35
Certain categories of directors on the Boards of
lakh crore, respectively, as against the total claims of the
Public Sector Banks are eligible to receive sitting fees for
creditors worth ₹ 12.31 lakh crore. The creditors have
attending Board and committee meetings. The guidelines
realised 170.09% of the liquidation value and 93.79%
governing the payment of sitting fees were last revised in
of the fair value (based on 1177 cases where fair value
2019. As per the guidelines issued in 2019, banks with a
has been estimated). The resolved CDs resulted in
business mix of less than ₹10 lakh crore were permitted
realisation of more than 32.44% as against the admitted
to pay sitting fees up to ₹40,000 per Board meeting and
claims. The haircut for creditors relative to the fair value
₹20,000 per Board Committee meeting, subject to an
of assets was around 6%, while relative to their admitted
overall annual cap of ₹15,00,000. For larger banks (₹10
claims is around 67%. Furthermore, this realisation does
lakh crore or higher business mix), the per-sitting fee for
not include the CIRP cost, and many probable future
Board meetings was capped at the limit prescribed under
realisations such as equity, realisation from corporate and
the Companies Act, 2013 and the rules or regulations
personal guarantees, funds infused into the CD including
enacted thereunder, with the sitting fee for Board
capital expenditure by the resolution applicants, and
Committee meetings limited to half of the Board meeting
recovery from avoidance applications. [source: website
fee, subject to an overall annual ceiling of ₹25,00,000.
of the Insolvency and Bankruptcy Board of India]
The said guidelines had remained unchanged
The Insolvency and Bankruptcy Code
for several years. Over time, the impact of inflation and
(Amendment) Bill, 2025 was introduced in Lok Sabha on
the evolution of the regulatory framework rendered
12.08.2025, in which this Department (DFS) has proposed
the prescribed limits increasingly inadequate and less
several amendments to address the delay in admission,
relevant. Accordingly, the guidelines were reviewed in
resolution and liquidation, value maximization for creditors
October 2025, and the sitting fees were rationalised and
and improving efficiency & transparency. The said Bill
made uniform across all public sector banks, in alignment
was referred to the Select Committee of Lok Sabha for
with the provisions of the Companies Act, 2013 and the
examination and the Committee had submitted its final
rules or regulations enacted thereunder. The following
report on 17.12.2025.
changes have accordingly been introduced:
The overall annual ceiling on the payment of DFS quarterly reviews the top twenty cases of
sitting fee has been removed for all the Public PSBs having exposure more than ₹500 Crore which
Sector Banks. are pending for admission at NCLT. The top ten cases
pending for resolution are also being monitored. As a
Board of Directors of the respective Public Sector
result, 13 cases with exposure of more than ₹ 500 crores
Banks have been authorised to determine the
have been admitted/settled at pre-admission stage, under
per-sitting fee, subject to the limits prescribed
IBC, 2016.
under the Companies Act, 2013 and the
regulations enacted thereunder. 4.1.7.8 Non-Banking Financial Companies (NBFC)
Symposium
4.1.7.7 IBC Performance
To facilitate collaborative dialogue on the role of
Till September 2025, 8,659 corporate insolvency
NBFCs and Micro Finance Institutions (MFIs), DFS
resolution process (CIRPs) are admitted at NCLT, out
hosted ‘NBFC Symposium 2025’ in July 2025.
of which, CD was rescued in 3,865 cases. Out of this,
resolution plans were approved in 1300 cases wherein Considering the strengthening role of NBFCs in the
creditors have realised an aggregate amount of ₹ 3.99 financial ecosystem, it is envisaged that—
234Department of Financial Services V
To meet the aspiration, structural changes Credit flow to productive sectors of economy
across all domain would require strengthened co- is growing at a good pace. The asset quality
lending mechanism including shared platforms of scheduled commercial banks (SCBs) has
to leverage the capacity of commercial banks, continued to improve, with gross non-performing
enhanced role in financial inclusion by penetrating assets (GNPA) ratio and net non-performing
financially excluded segments, improved financials, assets (NNPA) ratio declining. The provisioning
enhanced corporate governance and resilience,
coverage ratio (PCR) of SCBs has steadily
and adoption of unified collaboration by fostering
increased. The low slippage ratio, coupled with
collaboration with FinTechs, AgriTechs, commercial
raising of capital from the market and net capital
banks, etc.
accretion through profits has helped banks to
4.1.7.9 Overall condition of the banking sector bolster their capital adequacy levels.
The growth cycle of Indian banking system is The brief financial position of SCBs/PSBs are as
on upwards trajectory across all parameters. under:
Scheduled Commercial Banks Public Sector Banks
Parameters
235
51-raM 81-raM 32-raM 42-raM 52-raM
52-peS*
51-raM 81-raM 32-raM 42-raM 52-raM
52-peS*
Gross NPA
3.23 10.36 5.71 4.81 4.32 4.18 2.79 8.96 4.28 3.40 2.84 2.65
(in ₹ lakh crore)
Gross NPA (%) 4.28 11.18 3.87 2.75 2.22 2.05 4.97 14.58 4.97 3.47 2.58 2.30
Net NPA
2.31 5.20 1.35 1.07 0.95 0.94 2.15 4.54 1.02 0.73 0.55 0.51
(in ₹ lakh crore)
Net NPA (%) 3.13 5.94 0.95 0.62 0.50 0.48 3.92 7.97 1.24 0.76 0.52 0.45
PCR (%) 49.31 62.96 90.94 92.50 93.14 93.24 46.04 62.71 90.73 93.00 94.31 94.63
CRAR (%) 12.94 13.85 17.24 16.84 17.36 17.24 11.45 11.66 15.53 15.55 16.10 15.96
Source: RBI *provisional data for September 2025
(a) During FY 2024-25, SCBs have recorded highest ₹56.16 lakh crore in Mar-15 to ₹146.27 lakh crore
ever aggregate net profit of ₹4.01 lakh crore. and ₹114.85 lakh crore, respectively in Sep-25.
PSBs have also recorded highest ever aggregate
(c) Asset quality of PSBs improved with GNPA
net profit of ₹1.78 lakh crore during FY 2024-25.
and NNPA ratios declining to 2.30% and 0.45%
Further, the net profit of PSBs during the first half
in Sep-25 from 4.97% and 3.92%, respectively
of FY 2025-26 was ₹0.94 lakh crore.
in Mar-15.
(d) Enhanced resilience of PSBs with PCR
increasing from 46.04% in Mar-15 to 94.62%
(b) Global Deposits and Global Advances of
in Sep-25.
PSBs increased from ₹71.95 lakh crore andAnnual Report 2025-2026
(e) Robust Capital adequacy with CRAR of PSBs authorization by MeitY in consultation with UIDAI,
improving to reach 15.96% in Sep-25 from under Rule 5 of the Aadhaar Authentication for
11.45% in Mar-15 Good Governance Rules, 2020. The initiative
(f) PSBs declared dividend of ₹34,990 crore to aims to enhance good governance, ensure
shareholders (GoI share ₹22,699 crore) in FY fairness and transparency, prevent impersonation
2024-25 against total dividend of ₹27,830 crore and malpractices, simplify identity verification,
to shareholders (GoI share ₹18,013 crore) in FY and strengthen trust in the Banking, Financial
2023-24.
Services and Insurance Sector recruitment
system.
(b) Streamlining Declaration of Results in
Banking Recruitments:
The Department of Financial Services (DFS),
Ministry of Finance, has undertaken several key
initiatives aimed at streamlining the timelines
for recruitment examinations and declaration of
their results. This includes recruitment to State
Bank of India (SBI), Nationalized Banks (NBs)
and Regional Rural Banks (RRBs). Additionally,
these initiatives seek to enhance transparency
(g) Enabled by implementation of comprehensive in examinations conducted by the Institute of
reforms, the financial health of PSBs has
Banking Personnel Selection (IBPS).
improved significantly, enhancing their ability
to raise capital (in the form of both equity and Recruitment in SBI, NBs and RRBs is conducted
bonds) from the market. PSBs have mobilised through the IBPS process, in accordance with the
capital of ₹5.11 lakh crore from the market from mandates of the respective banks. Typically, examinations
FY 2014-15 to FY 2025-26 (till 30.9.2025). for RRBs are administered prior to those for NBs and
the SBI. The results are subsequently announced in a
4.2 Important decisions/Inititatives taken
similar sequence. Nevertheless, a notable trend has
4.2.1 The Department of Financial Services (DFS),
emerged wherein newly recruited candidates frequently
Ministry of Finance, has undertaken several key initiatives
transition from RRBs to NBs, and subsequently to SBI.
towards good governance such as streamlining result
This migration has resulted in significant attrition within
declaration of recruitment examinations, steps to prevent
the banks and has posed operational challenges.
impersonation and malpractices to ensure fairness and
transparency, thereby enhancing public confidence in Taking cognizance of the above issue, the DFS
recruitment examinations process in banking industry. A
reviewed the comprehensive process of recruitment
brief detail of such initiatives is as under:
examinations and the pattern of result declarations,
(a) Use of Aadhar Authentication by IBPS for
advising the Indian Banks’ Association (IBA) to implement
Candidate Verification in Examinations:
a standardized and logical sequence for announcing
The Department of Financial Services, Ministry
recruitment results across all three categories of banks.
of Finance, has notified the Institute of Banking
Consequently, a revised framework has been established,
Personnel Selection [a Public Examination
which stipulates that results will now be announced
Authority, under the Public Examination
first for the SBI, followed by NBs, and subsequently
(Prevention of Unfair Means) Act, 2024] to use
for RRBs. Additionally, results for all officer- level
Aadhaar authentication (Yes/No and/or e-KYC),
on a voluntary basis, for identity verification during examinations within these categories will be declared
its examinations and recruitment processes. This initially, with clerical- level examination results announced
notification has been published subsequent to subsequently in the same order.
236Department of Financial Services V
(c) Enhanced Transparency in Banking
This systematic sequencing is designed to assist
Recruitment Examinations:
candidates in expressing their preferences
promptly and making well-informed decisions. This Department took steps to enhance
This approach will enhance predictability for transparency in recruitment examinations. From
candidates, improve recruitment stability, the 2026–27 Common Recruitment Process
substantially reduce industry attrition and enable cycle onwards, candidates appearing in
more effective workforce planning across the examinations conducted by IBPS will be provided
banking sector. with login-based access to their response sheets
and correct answer keys.
This initiative aligns recruitment practices quarter and complete the process by March of each year
in the banking sector with those followed by other whereas few PSBs complete the process only in May-
June (first quarter of the FY) primarily due to delayed start
major public recruitment agencies and strengthens
of the promotion process.
transparency and fairness in the examination
process. It will boost public confidence in banking Hence, in order to ensure minimize disruption
recruitment systems. during the final quarter of the financial year, to prevent
the extension of the process beyond the specified
4.2.2 Streamlining the promotion and transfer timeline, and to maintain uniformity across banks, this
process in Public Sector Banks Department has advised all PSBs to ensure completion of
their respective promotion processes & declaration of the
The Department of Financial Services reviewed final results on or before 31st March of the selection year
the promotion process followed by the Public Sector and to ensure that transfer exercise be completed before
Banks (PSBs) and observed that the timelines vary across June every year. Further, banks have also confirmed the
the banks as few PSBs initiate the process in the third compliance of the same.
237Annual Report 2025-2026
4.2.3 Timely updation of Regulations in Public Bipartite Settlement and signing of 9th Joint
Sector Banks Note, the revised pay scales of all the officers of
(a) Consequent upon the signing of each Bipartite banks along with other agreed provisions has to
Settlement / Joint Note, necessary amendments be incorporated in the OSRs of NBs.
are carried out in the respective Nationalized Accordingly, consolidated proposals of above-
Banks’ Employees’ Pension Regulations (BEPR) mentioned amendments were considered by this
to incorporate the provisions agreed upon in
Department. These proposals were examined
respect of the pensionary benefits of serving and
in consultation with Legislative Department
retired employees. Thereafter, the amendments
(LD), M/o Law & Justice. Approval of Central
effected in the respective bank’s BEPR of all
Government was conveyed to these banks vide
Nationalized Banks are laid before both the
letters dated 16.5.2025. These amendments
Houses of Parliament, in accordance with the
were subsequently been published in the
relevant statutory provisions.
Official Gazette in May, 2025 and further laid
In past, the process of effecting amendments
in both the houses of the Parliament in August,
to the respective banks’ BEPR and laying the
2025(Monsoon Session), in a timely and efficient
same before Parliament generally took a period
manner.
of 6-8 years. However, in respect of the recent
Bipartite Settlement signed on 08.03.2024, after
This year the whole exercise from the date of
examination of the proposals submitted by all
conclusion of the BPS/Joint Note till laying of the
Nationalized Banks, in consultation with the
Gazette Notifications in the Parliament has been
Legislative Department, M/o Law & Justice, the
completed in record time period of 17 months.
previous sanction of the Central Government
Previously, the same process took 48 months
was conveyed to these banks vide letters
during the 11th BPS/8th Joint Note.
dated 24.09.2025. These amendments were
subsequently published in the Official Gazette
Phase II – Amendments in the remaining six
during October / November, 2025 and thereafter
banks, where CGM-level posts already exist, are
laid before both the houses of the Parliament
being taken up under Phase II. The proposals
in December, 2025 (Winter Session), thereby
received from Bank of Baroda, Bank of India,
ensuring timely and efficient completion of the
Canara Bank, Indian Bank, Punjab National
process.
Bank and Union Bank of India are currently under
Consequentially, the process - from conclusion
examination in the Department in consultation
of the BPS/Joint Note to publication in the
with LD. Thereafter, approval of the Hon’ble
Official Gazette and the subsequent laying of
Finance Minister will be sought shortly.
the Gazette Notifications before Parliament was
accomplished within an unprecedented period
4.3 Regional Rural Banks
of 18 months.
(b) This Department had approved Chief General
The Regional Rural Banks (RRBs) were
Manager (CGM) level posts in all Nationalized
established under the RRBs Act, 1976 to create
Banks (NBs). Further, conclusion of 12 Bipartite
an alternative channel for credit dispensation to
Settlement and signing of 9th Joint Note has
small and marginal farmers, agricultural laborers,
happened on 8.3.2024. To give effect to this the
socio-economically weaker section of population for
Bank officers’ Service Regulations (OSRs) were
development of agriculture, trade, commerce, small scale
to be amended by NBs, which has been taken
industry and other productive activities in rural areas. The
up in 2 Phases by this Department, as under:
RRBs are jointly owned by the Central Government, the
Phase I – Since the CGM level posts was being concerned State Government and the Sponsor Banks
introduced for the first time in five banks first with shareholding in the ratio of 50:15:35 respectively.
namely, Bank of Maharashtra, Central Bank
of India, Indian Overseas Bank, Punjab & Sind At present, 28 RRBs are operational through a
Bank and UCO Bank, this Department has taken network of 22,158 branches across 26 States and 3 Union
up the required amendments with these banks Territories (Puducherry, Jammu & Kashmir and Ladakh),
first. Further, consequent to conclusion of 12 covering approx. 700 districts of the country.
238Department of Financial Services V
This year 2025 marks an important milestone for v. In rural areas, the share of deposit accounts of
RRBs as they complete 50 years of operations towards RRBs is about 25% and RRBs have the highest
advancing financial inclusion and rural development. average balance in PMJDY accounts amongst
all categories of banks. In North-eastern region,
4.3.1 Role of RRBs:
RRBs cater to the banking needs of about 38% of
RRBs have a mandate to ensure rural development the rural people. As against the overall rural CD
and foster financial inclusion. The contributions being
Ratio of 70% for all the Scheduled Commercial
made by RRBs as a whole at present, are briefly as under:
Banks, RRBs had a rural CD Ratio of 81% as on
i. Of the total loans extended by RRBs, over 85% 31 March 2025.
of loans are extended to the priority sector, and
4.3.2 Recapitalization Scheme:
about 66% is towards agriculture sector. Of the
total loans, about 61% of them are extended to
The Government provides recapitalization to
weaker sections of society.
RRBs to help them meet the regulatory requirement of 9%
ii. RRBs play a significant role in extending micro CRAR (Capital to Risk Weighted Assets Ratio). Infusion
credit. They account for 31% of the SHG loan of capital in RRBs is done with an aim to rejuvenate
accounts and 25% of the loan amount to SHGs. and revitalise the RRBs with sufficient growth capital to
Nearly 19% of total KCCs have been issued by facilitate reinventing themselves as sustainably viable
the RRBs. and self-sufficient financial institutions and for leading
the growth process and the change in rural areas. The
iii. Share of RRBs in total accounts/enrolments
capital infusion is to help RRBs in technology adoption
under Government Sponsored Schemes like
and to efficiently cater to the financial inclusion needs of
PMJDY, PMJJBY, PMSBY, APY, etc. varies from
the rural populace.
15% to 20%.
iv. 92% of the branches of RRBs are in rural and semi Further, the recapitalisation scheme is
urban areas. RRBs have a share of 29% in the accompanied by operational and governance reforms
number of rural bank branches. In the rural areas under the broad ambit of Sustainable Viability Plan (SVP)
of aspirational districts, RRBs have about 40% of with a well-defined implementation mechanism aimed at
the bank branches. Moreover, many RRBs have credit expansion, business diversification, NPA reduction,
branches in remote areas and they are providing cost rationalisation, technology adoption, improvement in
financial services to vulnerable sections. corporate governance etc.
239Annual Report 2025-2026
4.3.3 Progress & Outcome: the concerned State Government and the Sponsor Bank
may amalgamate, in public interest, two or more RRBs
i. The last recapitalization support was provided
in a State.
to RRBs as a one-time upfront recapitalisation
of ₹5,445 crore as GoI share, approved by
With a view to enable RRBs to minimize their
Expenditure Finance Committee (EFC) in its
overhead expenses, optimize the use of technology,
meeting held on 11.10.2021, 75% of which enhance the capital base and area of operation and
i.e. ₹4,084 crore was infused into the RRBs increase their exposure, Government of India (GoI)
during the FY 2021-22. The balance 25% of initiated structural consolidation of RRBs in FY 2004-05,
recapitalisation support of ₹1,361 crore as GoI which has resulted in reduction in the number of RRBs
share was to be infused during the year 2022- from 196 to 43 till FY 2020-21 through 3 phases of
23, upon demonstrable improvement in the amalgamation.
operational and governance reforms as per the
In order to retain the USP of RRBs viz. the
Viability Plan.
closeness to rural communities, and derive the
ii. Accordingly, each RRB prepared a 3-year
benefits of scale efficiency and cost rationalisation,
Board approved Viability Plan in FY 2022-23 Government, on the guiding principle of “One State
encompassing operational and governance One RRB”, has amalgamated 26 RRBs in 11 State/
reforms. The RRBs demonstrated a significant UTs w.e.f. 01.05.2025 thereby reducing the number
improvement in key financial indicators under the of RRBs from 43 to 28.
viability plan. Therefore, the balance amount of
The Phase IV amalgamation was executed through a
₹1,361 crore was infused into the RRBs during
robust institutional framework constituted by DFS, GoI
the FY 2023-24 and 2024-25.
comprising of:
iii. In this backdrop, the performance of RRBs has
National Level Project Monitoring Unit (NLPMU):
improved significantly during FY 2024-25. RRBs
Constituted under the chairmanship of the
have been showing consistent improvement in
Deputy Managing Director (DMD), NABARD, with
their financial performance. The RRBs have
representatives from the Department of Financial
increased their net profit from ₹3,219 crore in
Services (DFS), Government of India, NABARD,
FY 2021-22 to ₹ 7571 Crore in FY 2023-24 and
₹6,820 crore in FY 2024-25. The Gross NPA and Sponsor Banks.
reduced to 5.4% in FY 2024-25 from 9.1% in FY State Level Monitoring Committees (SLMCs):
2021-22. The Capital to Risk Weighted Assets Constituted under the chairmanship of Chief
Ratio (CRAR) improved from 12.7% in FY 2021- General Managers (CGMs) of NABARD Regional
22 to all time high at 14.4% in FY 2024-25. Credit Offices, with members from Sponsor Banks,
expansion led to an increase in consolidated CD
Regional Rural Banks (RRBs), and CBS/IT
ratio to 73.1%, which was the highest in over
vendors.
35 years. The pace of technology adoption has
Together, the NLPMU and SLMCs convened
increased as more RRBs have started rolling out
over 100 meetings to monitor progress, address
digital services to their customers.
challenges, and ensure seamless implementation of
4.3.4 Important Developments in the context of
the amalgamation process. The integration of Core
RRBs in FY 2025-26:
Banking System (CBS) and NPCI payment channels
of the transferor RRBs were completed across all 11
4.3.4.1 Review of RRBs by Secretary, DFS
States/UTs by 13th October 2025.
Secretary, Department of Financial Services,
Ministry of Finance, reviewed performance of RRBs and 4.3.4.3 Common Branding & Logo Framework for
the progress in implementation of Phase IV amalgamation RRBs
process on 05 May 2025 in Mumbai.
In order for enhanced visibility, branding and
4.3.4.2 Implementation of Phase-IV Amalgamation acceptance among public, Government has approved a
of RRBs: Common Logo for all RRBs, thereby helping in promoting
In terms of section 23A of RRBs Act, 1976, financial inclusion and economic growth in rural and
Central Government, after consultation with NABARD, remote areas of the country.
240Department of Financial Services V
Upward Arrow (Symbol of Progress): 4.3.4.5 Constitution of Standing Consultative
Represents growth, development and Committee (SCC) for RRBs
advancement in rural economies.
DFS, GoI vide letter dated 18 September 2025
Hands (Symbol of Nurturing): Conveys has constituted a Standing Consultative Committee
(SCC) for RRBs to serve as a structured forum for
care, support, and a helping hand to rural
deliberation and resolution of policy related matters in HR,
communities.
Service conditions, issues pertaining to recruitment and
Flame (Symbol of Enlightenment): Signifies promotion, review of statutory provisions, draft policies,
warmth, knowledge, and empowering rural rules, regulations, directions, guidelines etc.
populations.
The SCC has been constituted under the
Chairmanship of DMD, NABARD with representatives
Further, to establish a unified identity for RRBs,
from DFS, GoI, Sponsor Banks and RRBs. The committee
reinforcing public trust by clearly positioning them as
shall examine the issues referred to it by the DFS, GoI/
government-owned institutions, the GoI has approved the
NABARD with prior consultation with DFS.
renaming of 6 RRBs, vide notification dated 23.10.2025
ensuring that all RRBs across the country now follows a 4.3.4.6 Transfer Policy in RRBs
uniform naming convention:
With a view to promoting greater transparency and
ensuring formulation of a uniform and non-discretionary
<Name of the State><Rural/Gramin in Local
transfer mechanism in RRBs, DFS, GoI issued revised
language><Bank>.
guidelines vide letter dated 20 February 2025 to RRBs
These reforms seek to build a strong brand for framing a Transfer Policy in RRBs.
that reflects rural inclusion, financial stability, and
4.3.4.7 Government Nominee Directors
transparency. Standardized branding is expected
to enhance operational efficiency, supports post- To improve the corporate governance structure
in RRBs, Government has approved the appointment of
amalgamation cohesion, and improves market visibility
Government nominee directors in all RRBs.
and competitiveness in rural areas.
4.3.4.8 Viability Plan for RRBs
4.3.4.4 Bifurcation of assets and liabilities of APGVB
To institutionalize performance monitoring and
Andhra Pradesh Grameena Vikas Bank (APGVB)
strengthen governance reforms in RRBs, the Govt. has
was operating across 21 districts in Telangana and 7 introduced a 3-year viability plan covering FY 2021-22 to
districts in Andhra Pradesh. During FY 2024–25, DFS, FY 2024-25. In view of the emerging financial pressures
GoI approved a scheme for the bifurcation of APGVB’s and the continued need for sustained oversight, the plan is
assets and liabilities between the two states. Pursuant to now in the process of being extended for a further period
this approval, the bifurcation took effect from 01 January of three years upto FY 2027-28.
2025. Consequently, the branches of APGVB located in
The extension aims to safeguard financial
Telangana were merged with Telangana Grameena Bank, stability, improve operational efficiency, and ensure that
while the bifurcated APGVB continued its operations in RRBs remain aligned with national priorities in rural credit,
the 7 districts of Andhra Pradesh. digital inclusion and financial outreach.
241Annual Report 2025-2026
4.3.5 Key Financial Parameters:
(Amount in ₹ crore)
30-Sep-25
Particulars 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25
(Provisional)
No. of RRBs (No.) 43 43 43 43 28
Branch Network (No.) 21,892 21,995 22,069 22,158 22,179
Share Capital 14,880 17,232 19,042 19,303 19,303
Reserves 34,359 40,123 46,659 53,060 57,962
Deposits 5,62,538 6,08,509 6,59,815 7,13,800 7,20,000
Borrowings 73,881 84,712 92,444 92,268 81,155
Investments 2,95,665 3,13,401 3,19,099 3,21,213 3,00,281
Gross Loans & Advances O/s 3,62,838 4,10,738 4,70,109 5,21,913 5,50,509
No. of RRBs earning Profi t 34 37 40 38 25
Amount of Profi t (A) 4,116 6,178 7,796 8,018 6,546
No. of RRBs incurring Losses 9 6 3 5 3
Amount of Losses (B) 897 1,205 225 1,193 251
Net Profi t of RRBs (A – B) 3,219 4,974 7,571 6,820 6,295
GNPA (Amount) 33,190 29,894 28,913 28,169 31,782
GNPA (%) 9.1 7.3 6.1 5.4 5.7
242Department of Financial Services V
5. Digital Payments In July 2023, Promotion of Digital Payments has
been transferred from MeitY to Department of Financial
The Government has been taking various
Services vide Cabinet Notification No.1/21/6/2023-Cab.
initiatives for promotion of digital transactions in
dated 17th July 2023. Department of Financial Services
the country, especially the creation of digital public
is coordinating with various stakeholders for proliferation
infrastructure (Aadhar, UPI, Account Aggregator
of digital payment ecosystem in the country.
Framework, Digi Locker, CBDC, ONDC etc.). The
5.1 Progress in Digital Payment Transactions :
digital payment transactions in the country has seen
tremendous growth, especially after FY 2013-14. As per
Digital payments have significantly increased in
ACI Worldwide Report 2024, around 49% of the global recent years as a result of coordinated efforts of the
real-time payment transactions is happening in India. The Government with all stakeholders. The digital payment
digital payment transactions have grown from 2071 crore transactions have grown from 2,071 crore in FY 2017-18
in FY 2017-18 to 22,831 crore in FY 2024-25. During the to 22,831 crore in FY 2024-25. During the same period,
same period, the value of digital payment transactions the value of digital payment transactions has grown from
has grown from ₹ 1,962 lakh crore to ₹ 3,509 lakh crore. ₹ 1,962 lakh crore to 3,509 lakh crore. In the current
In the current financial year till 14th December 2025, financial year till 14th December 2025, number of digital
number of digital payment transactions stands at 19,040 payment transactions stands at 19,040 crore and value
crore and value stands at ₹ 2,181 lakh crore. stands at ₹ 2,181 lakh crore.
Unified Payments Interface (UPI) is an per ACI Worldwide Report 2024, around 49%
indigenous digital payment system which of the global real-time payment transactions
provides the facility of quick and easy payments is happening in India.
from multiple bank accounts in a single mobile UPI has been the major driving force in the
application. UPI has revolutionized digital
overall growth of digital payment transactions
payments in the country, UPI transactions have
in the country accounting for 81% of digital
grown from 92 crore in FY 2017-18 to 18,587
payment transactions in FY 2024-25 (till 31st
crore in FY 2024-25. During the current financial
December 2024).
year till 14th December 2025, number of UPI
transactions stands at ₹ 16,518 crore. UPI transactions increased significantly from
1.31 billion (130.84 Crore) transactions per
The introduction of the UPI in FY 2016-17
month in December 2019 to a staggering
has helped India establish itself as one of the
global leaders in real-time payment systems 20.46 billion (2,046 Crore) transactions per
and overall growth of digital transactions. As month in November 2025
243Annual Report 2025-2026
Internationalization of Digital Payments: Payment Infrastructure Development Fund
India’s indigenously developed UPI and (PIDF) Scheme:
RuPay cards are world class platforms for RBI has, vide circular dated January 5, 2021,
enabling digital payments. Government is operationalized the Payments Infrastructure
making efforts to promote these products Development Fund (PIDF) Scheme from
globally January 1, 2021, for a period of three years.
On December 29, 2023, the scheme was
At present UPI is fully functional and live in 8
further extended up to December 31, 2025.
countries i.e. UAE, Bhutan, Nepal, Mauritius,
The objective of the Scheme is to encourage
France, Sri Lanka, Singapore and Qatar.
acquirers (banks and nonbanks) and merchants
RuPay cards acceptance is live in 6 countries by subsidizing deployment of interoperable
i.e., Nepal, Bhutan, Mauritius, Singapore, payment acceptance infrastructure in Tier-3
UAE and Maldives. to Tier 6 centers with special focus on the
North-Eastern states of the country and Union
Further, a Task Force on Digital Public
Territories of Jammu and Kashmir and Ladakh.
Infrastructure has been set up by the
The Scheme envisages creation of 30 lakh new
Government to oversee and accomplish
touch points for digital payments every year.
India’s G20 Presidency goals on digital
Since August 2021, eligible street vendors of
public infrastructure and promoting
the PM Street Vendor’s AtmaNirbhar Nidhi
innovative technology-based services
(PM SVANidhi Scheme) in Tier-1 and Tier-2
such as UPI along with the governance centers have been included as beneficiaries
frameworks. of the PIDF Scheme. Further, now with the
extension of the scheme, the beneficiaries
5.2 Digital Payment Infrastructure
of PM Vishwakarma Scheme, across the
Coordinated efforts of ecosystem partners country, have been included as merchants for
have led to an exponential growth in digital payments deployment under the PIDF Scheme since its
acceptance infrastructure in the country, increasing inception. As on October 31, 2025, around 5.45
from 0.31 crore as on March 2018 to 73.59 crore as on Crore digital touch points have been deployed
September 2025 through PIDF.
244Department of Financial Services V
Deployment Status (as on 30.11.2025):
Physical Sound box Aadhar enabled
Location Digital Devices
Devices Devices biometric devices
Tier 3 & 4 Centres 7,50,463 1,50,38,223 32,34,410 8,493
Tier 5 & 6 Centres 8,41,018 2,31,84,394 63,76,871 47,346
North-eastern States 1,49,853 25,79,758 4,92,089 5,112
UTs of J&K and Ladakh 62,912 13,66,171 2,88,611 283
Tier 1 & 2 Centres (PM SVANidhi Scheme) 2,461 17,04,345 53,804 -
Tier 1 & 2 Centres (PM Vishwakarma Scheme) 38 12,836 23,761 -
Total 18,06,745 4,38,85,727 1,04,69,546 61,234
Total Touchpoints 5,62,23,252
5.3 Incentive Scheme for RuPay and UPI: For the scheme period FY 2023-24, the estimated
Promotion of digital payments is an integral part of outlay was ₹3,500 cr, which was enhanced
the Government’s strategy to clean and formalise to ₹3,637 cr. The total expenditure under the
the economy, mainstream savings into banks to scheme, with actual expenditure upon payout of
energise investment, improve access to credit all committed liabilities thereunder, was ₹3,631
and provide wide-ranging benefits to the common cr. The one-year scheme ended on 31.03.2024.
man.
The scheme was successful in furthering growth
As part of this policy thrust, with effect from in digital payments. BHIM-UPI transactions
01.01.2020, no charge [including Merchant volume grew at CAGR of 70% i.e., from 2,233
Discount Rate (MDR)] is payable on payments crore in FY 2020-21 to 18,587 crore in FY 2024-
done using RuPay Debit Cards and BHIM- 25. Similarly, in value terms UPI transactions
UPI. Further, Hon’ble Finance Minister, in her have grown at a CAGR of 59% i.e., from ₹41.03
Budget Speech for FY2021-22 and FY2022- lakh crore in FY 2020-21 to ₹260.57 lakh crore in
23, announced Government’s intent to provide
FY 2024-25. However, RuPay Debit Card (PoS &
financial incentive to promote digital payment
Ecom) transaction volume declined by 24%, from
modes. Accordingly, “Incentive scheme for
137 cr. in FY2021-22 to 59 cr. in FY 2024-25.
promotion of RuPay Debit Cards and low-
This may be viewed in the context of the intense
value BHIM-UPI transactions (P2M)” were
competition from BHIM-UPI which led to overall
notified for FY2021-22, FY2022-23 and for
declining trend in Debit Card transactions over
FY2023-24. Under the scheme banks and other
last year. The transactions using Debit Cards
payment system operators and app providers are
declined by 26% during the same period for debit
incentivized for RuPay Debit Card and low-value
card industry as a whole.
BHIM-UPI transactions (upto ₹ 2,000) (Person to
Merchant). For FY2024-25, “Incentive scheme For FY 2024-25, “Incentive scheme for promotion
for low-value BHIM-UPI transactions (P2M)” has of low-value BHIM-UPI transactions (P2M)” was
been implemented. notified by the Department of Financial Services
For the scheme period FY 2021-22, the (DFS) for a period of one year, w.e.f. April 01,
estimated outlay was ₹1,300 cr, which was 2024, with an estimated outlay of ₹ 1,500 crores.
enhanced to ₹1,450 cr. The total expenditure As on 30.11.2025, the total actual expenditure
under the scheme, with actual expenditure upon incurred was ~₹ 1,046 crores.
payout of all committed liabilities thereunder,
was ₹1,389 cr. The one-year scheme ended 5.4 Account Aggregator
on 31.03.2022.
Account Aggregator (AA) is a Non-Bank Finance
For the scheme period FY 2022-23, the estimated Company (NBFC) engaged in the business of providing
outlay was ₹2,600 cr., with actual expenditure the service of retrieving or collecting financial information
upon payout of all committed liabilities thereunder, pertaining to the customer. No financial information of
was ₹2,210 cr. The one-year scheme ended on the customer is retrieved, shared or transferred by AA
31.03.2023. framework without the explicit consent of the customer.
245Annual Report 2025-2026
AA transfers data from one financial institution to another as may be identified by RBI for the purposes of
based on an individual’s instruction and consent. In this these directions, from time to time and as Financial
direction, Reserve Bank of India (RBI) has issued the Information User (FIU) which is an entity registered
with and regulated by any financial sector regulator. At
Master Direction viz Non-Banking Financial Company
present, RBI has granted Certificate of Registration to
(NBFC) – Account Aggregator (Reserve Bank) Directions,
seventeen companies as AA.
dated September 02, 2016.
The RBI Circular inter alia provides guidelines
Entities may enrol themselves on AA framework
on Process of Registration, Consent Architecture, Data
as Financial Information Provider (FIP) viz. bank,
Security, Technical Specifications, Sharing of Financial
banking company, non-banking financial company,
Information by Financial information Providers and Use
asset management company, depository, depository of information by Account Aggregator and Financial
participant, insurance company, insurance repository, Information User. In terms of usage, the AA framework
Central Recordkeeping Agency, GSTN, Clearing has shown remarkable growth in adoption since its
Corporation of India Limited and such other entity launch.
Though the ecosystem kicked off with lending card with inbuilt accident insurance cover of
as an anchor use case, personal finance management, ₹ 1 lakh and organizing Financial Literacy
income verification for F&O account opening, and financial Programmes.
underwriting for life insurance, have become prominent
Phase II (15th August, 2015 - 14th August,
applications.
2018):- Overdraft (OD) facility upto ₹5,000
6. Financial Inclusion to be given after six months of satisfactory
operation/history. Creation of Credit
6.1 Pradhan Mantri Jan Dhan Yojana (PMJDY)
Guarantee Fund for coverage of defaults in
With a view to increase banking penetration, overdraft accounts and unorganized sector
promote financial inclusion and to provide at least pension schemes like Swavlamban.
one bank account per household across the country,
Extension of PMJDY- PMJDY was extended
a National Mission on Financial Inclusion (FI), known
beyond 14.8.2018 with the focus on
as Pradhan Mantri Jan Dhan Yojana (PMJDY) was
opening of accounts shifting from “every
announced on 15th August, 2014. The Scheme was
household” to “every unbanked adult” while
formally launched on 28th August, 2014 at National level
making the scheme more attractive with
by the Hon’ble Prime Minister. Comprehensive financial
upward revision in: -
inclusion of the excluded sections was proposed to be
a. OD limit from ₹5,000 to ₹10,000;
achieved by 14th August, 2018 in 2 Phases as under:
Phase I (15th August, 2014 – 14th August, b. accident insurance cover on RuPay card
holders from ₹1 lakh to ₹2 lakh;
2015):- Universal access to banking facilities
in all areas, except those with infrastructural c. age limit for availing OD facility revised from
and connectivity constraints and providing 18- 60 years to 18-65 years; and
basic banking accounts and RuPay Debit d. no conditions attached for OD up to ₹ 2000.
246Department of Financial Services V
Performance of PMJDY
Major achievements of PMJDY are as under: (Numbers in Crore)
No of No of PMJDY Deposits in
PMJDY No of PMJDY No of PMJDY
PMJDY accounts PMJDY
As on Accounts Accounts Accounts (Urban/
Accounts (rural/ Semi- Accounts
(in crore) (Female) Metro)
(Male) urban) (in ₹ crores)
March’15 14.72 7.15 7.39 8.68 5.86 14,641
March’16 21.43 10.37 11.05 13.17 8.26 35,672
March’17 28.17 13.67 14.49 16.87 11.30 62,972
March’18 31.44 14.85 16.60 18.52 12.92 78,494
March’19 35.27 16.53 18.74 20.90 14.37 96,107
March’20 38.33 17.85 20.48 22.63 15.70 1,18,434
March’21 42.20 18.82 23.38 27.85 14.35 1,45,551
March’22 45.06 19.98 25.08 30.07 14.99 1,66,459
March’23 48.65 21.60 27.05 32.45 16.20 1,98,844
March’24 51.95 23.05 28.90 34.58 17.36 2,32,502
March’25 55.18 24.43 30.75 36.74 18.44 2,60,387
Nov’25 57.11 25.26 31.85 44.67 12.45 2,74,033
247Annual Report 2025-2026
Major Trends under PMJDY
Number of Rupay Debit Cards issued in PMJDY
accounts (in Crores)
39.39
37.85
35.35
30.90 31.62 32.94
29.30
27.91
23.65
21.99
17.75
13.15
Mar' 15 Mar' 16 Mar' 17 Mar' 18 Mar' 19 Mar' 20 Mar' 21 Mar'22 Mar'23 Mar'24 Mar'25 Nov'25
248Department of Financial Services V
A total of 57.11 crore Jan-Dhan accounts have been provided to PMJDY account holders.
been opened till Nov’25 under PMJDY, with a deposit
Out of total operative accounts opened under
balance of ₹2,74,033 crores. The average deposit
PMJDY, 88.6 % have been seeded with Aadhaar number
balance is approx. ₹4,798 per PMJDY account balance. of the account holder on user consent basis, which has
enabled interoperable and immediate Aadhaar based
There are 31.85 crore (55.8%) women Jan-Dhan
transactions, including for Direct Benefit transfer (DBT)
account holders, with about 44.67 crore (78.2%) accounts
through Aadhaar Payment Bridge.
opened in rural and semi-urban areas.
6.2 Banking Touch Points: The strength of bank
Approximately 39.39 crore RuPay cards with branches and ATMs has been augmented over the years
an inbuilt accidental insurance of ₹2 lakh (Rs.1 lakh for as indicated below:
accounts opened before 28.08.2018) coverage has also
Table 1: Number of bank branches of Scheduled
Commercial Banks:
RURAL SEMI-URBAN URBAN METROPOLITAN TOTAL
Mar-17 49,860 38,931 25,103 26,530 1,40,424
Mar-18 50,860 39,616 25,458 26,536 1,42,470
Mar-19 51,609 41,031 26,399 27,157 1,46,196
Mar-20 52,382 42,213 27,318 28,133 1,50,046
Mar-21 52,651 42,441 27,446 28,055 1,50,593
Mar-22 53,204 42,443 27,433 28,181 1,51,261
Mar-23 54,244 43,745 28,021 29,057 1,55,067
Mar-24 55,213 45,101 29,083 30,319 1,59,716
Mar-25 56,080 46,405 30,047 31,343 1,63,875
Sep’25 56,406 46,875 30,356 31,782 1,65,419
Source:RBI
249Annual Report 2025-2026
Table 2: Number of ATMs of Scheduled Commercial Banks (SCBs), Small finance Banks (SFBs), Payment
Banks (PBs) and White Label ATM Operators
As on Off -site ATMs* On-site ATMs Total ATMs*
31.03.2016 1,10,111 1,01,950 2,12,061
31.03.2017 1,12,666 1,09,809 2,22,475
31.03.2018 1,15,471 1,06,776 2,22,247
31.03.2019 1,15,323 1,06,380 2,21,703
31.03.2020 1,21,086 1,13,271 2,34,357
31.03.2021 1,22,983 1,15,605 2,38,588
31.03.2022 1,29,766 1,16,794 2,46,560
31.03.2023 1,31,684 1,23,613 2,55,297
31.03.2024 1,27,301 1,26,116 2,53,417
31.03.2025 1,19,734 1,31,323 2,51,057
30.09.2025 1,11,579 1,31,664 2,43,243
Source: RBI
* includes ATMs deployed by White Label ATM Operators
Year wise total no of ATMs
(source:RBI)
234,357 238,588 240,982 246,560 255,297 253,417 251,057 243,243
222,475 222,247 221,703
212,061
Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Mar'24 Mar'25 Mar'26 30.09.25
250Department of Financial Services V
The number of card acceptance devices of Point such as bank branches, ATMs, Bank Mitras, Post Offices,
of Sale (POS) has increased from 51.86 lakh in March etc. in the country. The web version of this application
2020 to 123.17 lakh in Oct’25. could be accessed at the link http:// findmybank.gov.in.
Banks/IPPB have been provided login credentials to upload
6.3 Jan Dhan Darshak App
the GIS location of their branches, Business Correspondents
A mobile application was launched to provide a and ATMs on the app.
citizen centric platform for locating banking touch points
As per JDD app, as on 30.11.2025, there are Sector and Small Finance Bank, cover all the States and
1.80 lakh branches, 17.87 lakh BCs (including 1.66 Union Territories of the country. The DBUs are to assist
lakh IPPB-BCs) and 2.11 lakhs ATMs mapped by the those who are not tech savvy to adopt digital banking
and wherein the products and services will be offered
banks. Further, as per data uploaded by the banks
to customers in 2 modes: Self Service Mode and Digital
on JDD app, out of the 6.01 lakh (6,01,328) mapped
Assistance Mode.
villages on the app, 6.00 lakh (6,00,821) (99.92%)
villages are having branch or BC within a distance of Services being offered through DBU include
5 kilometres. banking facilities like the opening of savings accounts,
balance checks, passbook printing, transfers of funds,
6.4 Jan-Dhan Aadhaar Mobile (JAM) investments in fixed deposits, loan applications, stop-
payment instructions for cheques issued, applications
A Jan Dhan Aadhar Mobile (JAM) pipeline has
for credit / debit cards, view statement of account, pay
been laid for linking of Jan-Dhan account with mobile
taxes, pay bills, make nominations, etc. The DBUs are
number and Aadhaar. This is providing the necessary
also facilitating for onboarding to Government credit linked
backbone for DBT flows, adoption of social security/
schemes through the Jan Samarth portal and end-to-end
pension schemes, facilitating credit flows, promoting
digital processing of small ticket MSME/retail loans.
digital payments, etc. It has provided the much-needed
support for accelerating the pace towards achieving a As per data collected, more than 2.97 crore
digitalized, financially inclusive and an insured society. interventions (in r/o major activities) have taken place at
The instant transfer of Direct Benefits under various all the 116 DBUs which have been set during the period
Government Schemes has been made possible through 16.10.2022 to 30.11.2025.
the JAM pipeline.
6.6 Regional imbalances : Focused attention
6.5 Digital Banking Units
Special focus is being given to 112 Aspirational
The Hon’ble Prime Minister dedicated 75 Digital Districts (ADs) wherein a Targeted Financial Inclusion
Banking Units (DBUs) in 75 districts of the country to Intervention Program (TFIIP) program has been launched
commemorate the 75 years of independence of our to improve the performance of these Districts under
country (Azadi Ka Amrit Mahotsav) on 16.10.2022. Financial Inclusion (FI) parameters. DFS is also working
These DBUs set-up by 24 banks including Public, Private on ‘Mission Utkarsh’ to improve the performance of the
251Annual Report 2025-2026
10 selected Districts which are lagging behind on FI minimise pendency and ensure benefits to rightful
parameters. claimants at the earliest.
6.7 Key Schemes Mobile number, email id and age of the nominee
(or the appointee of a minor nominee) are now
6.7.1. Pradhan Mantri Jeevan Jyoti Bima Yojana
captured and in the event of an unfortunate
(PMJJBY) — The Scheme is available to people in the
incident, nominees are proactively informed of
age group of 18 to 50 years having a Bank / Post office
the benefit available and the claim process in
account who give their consent to join / enable auto-debit.
English and regional language.
Risk coverage under this Scheme is for ₹ 2 lakhs in case
of death of the insured, due to any reason at an annual Waiting period in case of claim of death cases
premium of ₹ 436/- which is to be auto-debited from the under PMJJBY has been reduced from 45 days
subscriber’s bank / Post office account. to 30 days with effect from 1st June, 2021 except
for death due to an accident for which the claim is
6.7.2. Pradhan Mantri Suraksha Bima Yojana
admissible from the date of joining this scheme.
(PMSBY) — The Scheme is available to people in the age
group of 18 to 70 years with a bank / Post office account Banks have been requested to identify from
who give their consent to join / enable auto-debit facility. their core banking solution (CBS), the existing
The risk coverage under the Scheme is for ₹ 2 lakhs in subscribers who did not have sufficient balance
case of accidental death or total permanent disability and
in their accounts as on 31.5.2022 to enable auto
₹ 1 lakh for partial permanent disability due to accident at
debit of their premium and to inform them by
a premium of ₹ 20/- per annum which is to be deducted
SMS/ email about the revision in premium rates.
from the account holder’s bank / Post office account
through ‘auto-debit’ facility Banks/ post office to forward claim documents
electronically to their partner insurer’s designated
Key reforms in the implementation of schemes
app/email id within seven days of submission of
PMJJBY and PMSBY:
the claim and insurers to settle claims within 7
Enrolment and claim forms for PMJJBY and days of receipt of claim documents.
PMSBY have been modified with a view to
Progressason Nov 2025 is as under:
Eligibility Premium Enrollments Claims amount Settlement
Scheme Claim Paid
(Yrs) (p.a) (crore) (crore) Ratio (%)
PMJJBY 18 to 50 ₹ 436 25.79 10,02,628 ₹ 20,052.56 99.94%
PMSBY 18 to 70 ₹ 20 55.32 1,70,608 ₹ 3,388.40 97.05%
252Department of Financial Services V
Percentage reflects Cumulative Claims Paid Versus Cumulative Claims Reported
Percentage reflects Cumulative Claims Paid Versus Cumulative Claims Reported
253Annual Report 2025-2026
6.7.3. Pradhan Mantri Mudra Yojana (PMMY)- The the Scheme. Approximately 21% of the total loans
Scheme was launched on 8th April 2015 for financing have been sanctioned to New Entrepreneurs.
income-generating small business enterprises in
Approximate 68% loans of the total number
manufacturing, trading and service sectors, including
activities allied to agriculture such as poultry, dairy, of loans have been sanctioned to Women
beekeeping, etc. Under PMMY, both Term loan and Entrepreneurs & 50% loans have been sanctioned
Working Capital requirements can be met. Loans under to SC/ST/OBC categories of borrowers.
PMMY are extended through Member Lending Institutions
Category-wise breakup: -
(MLls) viz; Banks, Non- Banking Financial Companies
(NBFCs) & Micro Finance Institutions (MFls).
Amount
Categories: Shishu - upto ₹ 50,000/-, Kishor - Category No. of Loans (%)
Sanctioned (%)
above ₹ 50,000/- and upto ₹5.00 lakh, Tarun
-above ₹5.00 lakh and upto ₹10.00 lakh, Tarun Shishu 76% 33%
Plus- above ₹ 10.00 lakh and upto ₹ 20.00 lakh
Kishor 22% 42%
(for those entrepreneurs who have availed and
successfully repaid previous loans under the
Tarun 2% 25%
‘Tarun’ category w.e.f. 24.10.2024).
The limit of Mudra loans under the PMMY has Tarun Plus - -
been enhanced from the current ₹10 lakh to
Total 100% 100%
₹20 lakh. A new category, Tarun Plus, has been
introduced for loans above ₹ 10 lakh and up to Targets have been consistently met since
₹ 20 lakh, specifically for entrepreneurs who have inception of the Scheme, except for FY 2020-21
availed and successfully repaid previous loans due to COVID- 19 pandemic.
under the Tarun category. Necessary Gazatte Year-wise sanction amount is as follows: -
Notification has been issued on 24.10.2024
of Guarantee coverage for PMMY loans up to Amount
No of Loans
Year Sanctioned
₹ 20 lakh which will be provided under the Credit Sanctioned (in cr.)
(₹ Lakh crore)
Guarantee Fund for Micro Units (CGFMU).
2015-16 3.49 1.37
Collateral free loans upto ₹20 lakh
Credit Guarantee Fund for Micro Units (CGFMU)
2016-17 3.97 1.80
was set up for guaranteeing loans extended to
eligible micro units under PMMY by MLIs and 2017-18 4.81 2.54
overdraft loan amount sanctioned under Pradhan
2018-19 5.98 3.22
Mantri Jan Dhan Yojana (PMJDY) accounts.
From FY 2020- 21 onwards, loans sanctioned
2019-20 6.22 3.37
to Self Help Groups (SHGs) between ₹10
lakh to ₹ 20 lakh are also eligible for coverage 2020-21 5.07 3.22
under CGFMU. The National Credit Guarantee
Trustee Company Ltd. (NCGTC), a wholly-owned 2021-22 5.38 3.39
company of Government of India, constituted
2022-23 6.23 4.56
under the Companies Act, 1956 (2013) is the
trustee of the Fund.
2023-24 6.67 5.41
As on 30.11.2025 the sanction amount covered
under live guarantee is ₹5.60 lakh crore. 2024-25 5.46 5.52
Achievements under Pradhan Mantri Mudra Yojana 2025-26
2.54 3.15
(PMMY) as on 10.01.2025 (up to Nov’25)
More than 55.85 crore loans amounting to ₹37.57
Total 55.85 37.57
lakh crore have been sanctioned since launch of
254Department of Financial Services V
Consolidated achievements (as on Nov,2025)
Achieving Targets, Attaining Excellence:
255Annual Report 2025-2026
Scheme-wise Share (Based on Cumulative Data)
Category-wise Share (Based on Cumulative Data)
Empowering Enterprising Women Strengthening the Nation
(Based on Cumulative Data)
256Department of Financial Services V
6.7.4. Stand Up India Scheme (SUPI)- The Stand- be provided in convergence with eligible Central/
Up India Scheme launched on 5th April, 2016 aims to State schemes. However, the borrower will
promote entrepreneurship among the Scheduled Caste/ continue to contribute at least 10% of the project
Scheduled Tribe and Women by facilitating bank loans of cost as own contribution.
value between ₹10 lakh and ₹1 crore to at least one SC/
Loans for enterprises in ‘Activities allied to
ST borrower and one-woman borrower per bank branch
of Scheduled Commercial Banks for setting up greenfield agriculture’ e.g. pisciculture, beekeeping, poultry,
enterprises in trading, manufacturing and services sector. livestock, rearing, grading, sorting, aggregation
agro industries, dairy, fishery, Agri clinic and
In 2019- 20, the Stand-Up India Scheme was
agribusiness centres, food & agro- processing,
extended for the entire period coinciding with the 15th
etc. (excluding crop loans, land improvement
Finance Commission period of 2020-25. Pursuant to an
such as canals, irrigation, wells) and services
announcement made by the Union Finance Minister in
the Budget speech of FY 2021-22, the following changes supporting these, shall be eligible for coverage
have been made in the Stand-Up India Scheme under the Scheme. The scheme was valid/
operational till mar’25.
The extent of margin money to be brought by
the borrower has been reduced from ‘upto 25%’ As on 31.03.2025, a total number of SCs/STs
to ‘upto 15%’ of the project cost. The Scheme and Women borrowers benefited under the Stand-Up
envisages ‘upto 15%’ margin money which can India Scheme are as under.
(Amt.in₹crore)
SC ST Women (General) Total
No of A/ Sanctioned Sanctioned Sanctioned
No of A/Cs No of A/Cs No of A/Cs Sanctioned Amt.
Cs Amt. Amt. Amt.
52,901 11,168.36 16,991 3,612.84 2,05,399 48,010.73 2,75,291 62,791.93
6.7.5. PM Street Vendor’s AtmaNirbhar Nidhi The scheme was originally launched for a period up to
Scheme (PMSVANidhi) 31.03.2022 which was later extended till 31.12.2024. The
Union Cabinet approved the “Restructuring and extension
The PM SVANidhi Scheme, a Central Sector
of the lending period beyond 31.12.2024 and the lending
Scheme, was launched in 01.06.2020 by the Ministry
period has further been extended until March 31, 2030.
of Housing and Urban Affairs (MoHUA), with the aim
to help street vendors restart their businesses which The Scheme will now be jointly implemented
were adversely affected by the Covid-19 pandemic. by MoHUA and DFS, with DFS being responsible for
257Annual Report 2025-2026
facilitating access to loan/ credit cards through banks/ loan, 2nd loan and 3rd loan loans is 31.87%,
financial institution and their ground level functionaries.
8.25% and 6% respectively will remain same for
Salient Features of the restructured scheme: the tranches. The Card will have partial credit
guarantee, with 75% risk sharing up to 20% NPA
Enhancement of 1st tranche loan amount from
level.
₹10,000 to ₹15,000 for 12 months and 2nd
tranche loan from ₹20,000 to ₹25,000 for 18 Interest Subsidy will remain the same @ 7%
months. The third tranche loan will remain at Cashback of ₹ 1 per digital transaction, maximum
₹50,000 for 36 months. of ₹100 per month for 12 months (max. digital
To provide UPI linked RuPay Credit Card with incentive of ₹1200/year) for every tranche of loan.
a limit of ₹30,000 to PM SVANidhi beneficiaries Cashback of maximum ₹100 per quarter for 4
who have repaid their 2nd loan. quarters, for conducting digital transactions on
The Existing Credit Guarantee coverage for 1st wholesale purchases of at least ₹2,000
Cumulative
Applications Male Female Others Applications Male Female Others
Sanctioned Sanctioned Sanctioned Sanctioned Disbursed Disbursed Disbursed Disbursed
1,03,73,266 56,41,407 47,30,945 914 1,00,42,368 54,74,768 45,66,720 880
6.7.6. PM Vishwakarma Scheme
PM Vishwakarma Scheme, implemented by access to skill training, collateral free credit, modern
the Ministry of Micro, Small and Medium Enterprises tools, market linkage support and incentive for digital
transactions.
(MSME), was launched on September 17, 2023. This
scheme involves collaboration among Ministry of Micro, The DFS collaborates with financial institutions
Small, and Medium Enterprises (MSME), Ministry of to streamline the loan application and disbursement
Skill Development and Entrepreneurship (MSDE) and processes and to ensure that artisans and craftspeople
Department of Financial Services (DFS) to provide can easily access collateral-free loans. DFS also
end- to-end holistic support to traditional artists and promotes the use of digital platforms to facilitate loan
craftspeople engaged in 18 identified trades through applications and disbursals.
258Department of Financial Services V
As on Nov’25, 14.73 lakh applications have been sanctioned by banks.
processed by banks of which 5.19 lakh loans have been
PM Vishwakarma Status -as on Nov'25
1,546,257
1,472,828
1,005,802 953,559
519,001
433,688
540,455 519,269 356,163
308,423
162,838 125,265
No of applications sent to Applications processed Application sanctioned Apllication disbursed
banks for Loan
Total Male Female
6.7.7. PM Surya Ghar Muft Bijlee Yojana: 3 KW. Systems above 3 KW can be installed with
subsidy capped at ₹ 78,000/-.
Prime Minister launched the ‘PM Surya Ghar Muft
Bijli Yojana’ on 13th February, 2024 with an aim Loan application are routed through Jan Samarth
to solarize one crore households by providing Portal in digital form and the same is integrated
free electricity up to 300 units every month. with National portal of MNRE.
Under the scheme, subsidy upto ₹ 78,000/- is Latest progress under the scheme is as under:
provided to beneficiaries installation of RTS upto
7. Agriculture Credit disbursement, surpassing the incremental annual targets
year after year. As against the annual target of ₹27.50 lakh
In order to boost the agriculture sector with the
crore for 2024-25, agriculture credit disbursement stood
help of effective and hassle-free agriculture credit, the at ₹28.67 lakh crore, registering 104% achievement.
Government has been fixing annual targets for ground Further, over the past six years, disbursements have
level agriculture credit to be extended by Scheduled recorded a compound annual growth rate (CAGR) of
Commercial Banks, Regional Rural Banks (RRBs) and 12.79%. Agriculture credit target for year 2025-26 has
Cooperative Banks. An analysis of year-wise target been set at ₹ 32.50 lakh crore with a sub-target of ₹ 5
and achievement under agricultural credit flow for the lakh crore for Animal Husbandry, Dairying and Fisheries
period 2019-25 reveals the sustained trend of actual farmer. As on 30 September 2025, ₹14.94 lakh crore
259Annual Report 2025-2026
was disbursed (Provisional) against the target of ₹32.50 growth of Agriculture Credit Target vis-à-vis Achievement
lakh crore, registering 46% achievement. The trend in the over last six years is captured in the graph below:-
Source: ENSURE portal of NABARD
7.1 Kisan Credit Card (KCC) PM-KISAN beneficiaries with Kisan Credit Card (KCC).
While ensuring convenient and cost-effective credit
KCC scheme was introduced in 1998-99, as
delivery to farmers, the campaign was instrumental in
an innovative credit delivery mechanism that aims at
boosting the rural economy and further accelerating
adequate and timely credit support from the banking
agricultural production and allied activities, besides
system to the farmers for their cultivation needs including
enhancing the income level of farmers.
the purchase of inputs in a flexible, convenient, and cost-
effective manner. Banks have been advised to issue In 2019, the facility of KCC has also been
Kisan Credit Cards (KCC) to all eligible farmers. The
extended to animal husbandry and fisheries farmers
KCC Scheme has since been simplified with facilities like
in order to help them meet their working capital needs.
one-time documentation, built in cost escalation in the
Further, in order to cover animal husbandry and fisheries
limit and facility of ATM enabled debit card etc. Under
farmers under KCC, a special saturation drive in the
the present guidelines of KCC, the limit is sanctioned for
form of weekly “District level Camp” was launched w.e.f.
5 years, and the beneficiaries have ease and flexibility in
15th November, 2021 for ensuring convenient and cost-
withdrawal and repayment.
effective credit delivery to the farmers and accelerating
Under the KCC scheme, GoI has approved agriculture output.
interest subvention @1.5% on short term loans for
The Nationwide AHDF KCC Campaign was
agriculture and allied activities which is available on
extended from time to time till 31st March 2025. As
an overall limit of ₹3 lakh per annum and subject to a
on 30.09.2025, a total 47,80,225 KCCs have been
maximum sub-limit of ₹2 lakh per farmer involved in allied
sanctioned to Animal Husbandry, Dairy and Fisheries
activities related to Animal Husbandry, Dairy, Fisheries,
farmers under this campaign.
Bee Keeping etc. within the prescribed limit of ₹3.00
lakh availed. An additional interest subvention of 3% is
At present (as on 30.09.2025), there are 7.81
provided to farmers on prompt repayment of loans, which
crore crore operative KCC accounts with a total
effectively reduces the rate of interest to 4%.
outstanding loan of ₹10.39 lakh crore. The amount
To enable universal access to Concessional outstanding in operative accounts under Kisan Credit
Institutional credit, Government of India initiated a drive Card has consistently increased over last 5 years as
in Mission Mode from February 2020 for saturating all under:-
260Department of Financial Services V
7.2 Role of National Bank for Agriculture and increased from ₹ 2,000 crores in 1995-96 to ₹ 35,000
Rural Development (NABARD) in Rural crores in 2025-26.
Financing & Development of Rural Economy.
The cumulative funding commitment, as on 31
NABARD, an apex development financial October 2025 to 30 States/UTs stood at ₹ 6,02,711 crore
institution, was established in 1982, for providing and (including Bharat Nirman) against which ₹ 4,92,385 crore
regulating credit and other facilities for the promotion have been disbursed as on 31 October 2025. Over the
and development of agriculture, small-scale industries,
years, RIDF has emerged as a dependable source of
cottage and village industries, handicrafts and other
public funding of impactful rural projects. Of the total
rural crafts and other allied economic activities
RIDF loans sanctioned to State Governments under
in rural areas with a view to promoting integrated
various tranches since 1995-96, 26% accounted for rural
rural development and securing prosperity of rural
roads, 30% for irrigation, 21% for social sector, 13% for
areas. Major functions of NABARD are Financial,
agriculture sector (other than irrigation) and 10% for rural
Developmental and Supervision. Several funds such
bridges.
as Rural Infrastructure Development Fund (RIDF),
Long Term Irrigation Fund (LTIF), Micro Irrigation Fund
7.4 Long Term Irrigation Fund (LTIF)
(MIF), Short Term Cooperative Rural Credit (Refinance)
Fund, Short Term Regional Rural Bank (Refinance) The Government of India, through the Dept.
Fund, Long Term Rural Credit Fund (LTRCF), etc of Water Resources, River Development and Ganga
are available with NABARD for creation of rural Rejuvenation, Ministry of Jal Shakti (earlier Ministry of
infrastructure and providing credit to the agriculture Water Resources) has taken a major initiative to complete
sector various stalled major/medium irrigation projects in the
country, for which a Long-Term Irrigation Fund (LTIF) was
7.3 Rural Infrastructure Development Fund (RIDF)
set up in NABARD. As on 31 October 2025, sanctions
In the backdrop of declining public investment in have been accorded by NABARD under LTIF to the
agriculture and rural infrastructure, RIDF was instituted in tune of ₹ 71,883 crores against 99 projects identified.
NABARD during 1995-96 with an initial corpus of ₹2,000
Further, loan amount of ₹11,218 crores have been
crore with the main objective of providing loans to State
sanctioned for the Polavaram Irrigation project, ₹1,379
Governments for completing ongoing rural infrastructure
crores for North Koel Reservoir Project, ₹ 485 crores
projects. Resources to the fund are contributed by
for Shahpur Kandi Dam and ₹ 826 crores for Relining
Commercial Banks, Foreign Banks, Regional Rural Banks
of Sirhind and Rajasthan Feeder under LTIF, totaling
and Small Finance Banks in a proportion indicated by RBI,
the cumulative sanctions under LTIF to ₹ 85,791 crores.
with respect to banks’ shortfall in priority sector lending.
The cumulative amount released against sanction of 99
The fund which started as a “last mile approach” to
identified projects stood at ₹ 51,213 crores. Similarly, for
facilitate completion of ongoing irrigation, flood protection
Polavaram Irrigation project, North Koel Reservoir Project
and watershed management projects during 1995-96,
today covers as many as 39 activities, broadly classified and Shahpur kandi Dam Project, cumulative releases
under three categories, viz., (i) Agriculture and related stood at ₹10,650 crores, ₹721 crores and ₹ 207 crores
sector (ii) Social Sector and (iii) Rural Connectivity. The respectively, totaling the cumulative releases under LTIF
annual allocation of funds towards RIDF has gradually to ₹ 62,791 crores.
261Annual Report 2025-2026
7.5 Micro Irrigation Fund (MIF) During the current year total Refinance disbursed
by NABARD to RRBs amounts to ₹ 21,508.51 crores as
Micro Irrigation Fund with a corpus of ₹5,000 crore
on 18.11.2025 including non- concessional ST refinance
has been operationalized from 2019-20 in NABARD with an
under Additional SAO and ST(Others). At the same time,
objective to facilitate State Govts. Efforts are being made
the total number of KCCs issued by RRBs stands at 1.50
to mobilize additional resources for expanding coverage Crores with total outstanding amount of ₹ 2,08,794.93
under micro irrigation and incentivizing its adoption beyond crores as on 31.10.2025.
provisions of PMKSY-PDMC. From the year 2022-23, the
PDMC scheme is being implemented under Pradhan Mantri- 7.8 Long Term Rural Credit Fund (LTRCF)
Rastriya Krishi Vikas Yojna (PM-RKVY). The continuation
This fund has been set up for the purpose of
and augmentation of the Micro Irrigation Fund (MIF) by an
providing long term refinance support to Cooperative
additional ₹5,000 crore for the 15th Finance Commission
Banks and Regional Rural Banks for their lending towards
period was approved by the Union Cabinet in its meeting investment activities in agriculture with a view to provide
held on 03 October 2024. The cumulative sanction and a fillip to capital formation in the sector. Government has
release under MIF as on 31 October 2025 stood at ₹4,854 allocated ₹8,000 crores fund under LTRCF during FY
crores and ₹4,074 crores respectively. This will facilitate 2024-25. However, department has received ₹3,996.76
expanding micro irrigation to an area of 24 lakh ha. involving crore as deposits from contributing banks as on
16 lakh farmers. 30.11.2024. The same has been disbursed to Cooperative
Banks and Regional Rural Banks under LTRCF during
7.6 Short Term Cooperative Rural Credit STCRC
the financial year 2024-25 (as on 30.11.2024). Besides
(Refinance) Fund
the above NABARD also provided non-concessional
STCRC (Refinance) Fund was set up in NABARD LT refinance to Cooperative Banks and Regional Rural
Banks amounting ₹12,342.17 crore during FY 2024-25
in 2008-09 with an initial corpus of ₹5,000 crores to
(as on 31.11.2024).
provide Short Term refinance to cooperative banks so
as to ensure increased and uninterrupted credit flow 8. Priority Sector Lending
to farmers at concessional rate of interest. NABARD
provides refinance to cooperative banks at an interest T he objective of priority sector lending (PSL) is to
rate of 4.5 % per annum for crop loans up to ₹3.00 ensure that vulnerable sections of society get access to
credit and to maintain adequate flow of resources to those
lakh, disbursed by cooperative banks at an interest rate
segments of the economy which have higher employment
of 7% per annum to ultimate borrowers. An allocation
potential which will help in making an impact on poverty
of ₹35000.00 crores has been made for the STCRC
alleviation. Thus, the sectors that impact large sections
(Refinance) Fund during 2025-26. As on 18.11.2025,
of the population, the weaker sections and the sectors
₹ 25,939.29 crores have been utilised out of STCRC
which are employment-intensive such as agriculture and
(Refinance) Fund during 2025-26.
micro and small enterprises are part of the priority sector.
During the current year, total Refinance
With this background, RBI has framed the Priority
disbursed by NABARD to Co-operative Banks amounts
Sector Lending (PSL) guidelines to facilitate the flow of
to ₹ 67,166.74 crores (as on 18.11.2025) including non-
credit to these segments from banking system. Priority
concessional ST refinance under Additional SAO and
sector loans include loans to eight eligible categories-
ST(Others). At the same time, the total number of KCC
Agriculture, Micro, Small and Medium enterprises,
issued by cooperative banks stands at 3.49 Crores with
Export Credit, Education, Housing Social Infrastructure,
total outstanding amount of ₹ 2,28,488.73 crores as on
Renewable Energy and Others.
31.10.2025.
The revised guidelines on PSL were issued on
7.7 Short Term Regional Rural Bank STRRB
March 24, 2025 after a comprehensive review of existing
(Refinance) Fund
provisions considering feedback from stakeholders and
included the following major changes:
STRRB (Refinance) Fund was set up with an
allocation of ₹10,000 crores in 2012-13, so as to enable a) Enhancement of several loan limits, including
NABARD to provide short term refinance to RRBs to housing, education loans for enhanced PSL
meet their crop loan lending obligations. NABARD coverage;
provides refinance to RRBs at an interest rate of 4.5%
b) Broadening of the purposes based on which loans
per annum for crop loans up to ₹3.00 lakh disbursed by
may be classified under ‘Renewable Energy’;
RRBs at an interest rate of 7% per annum to ultimate
borrowers. The allocation under STRRB Fund was c) Expansion of the list of eligible borrowers under
at ₹7,500 crores during 2025-26. As on 18.11.2025, the category of ‘Weaker Sections’, along with
₹ 5,517.01 crores have been utilised out of STRRB removal of the existing cap on loans by UCBs to
(Refinance) Fund during 2025-26. individual women beneficiaries.
262Department of Financial Services V
The guidelines also specify targets of 40% for achievement of priority sector lending targets in the last
lending to PSL by Scheduled commercial Banks (SCBs) five years given as follows:
and targets of 75 % for lending to PSL by Regional Rural
(₹ crore)
Banks (RRBs). Further, on June 20, 2025, the PSL target
for Small Finance Banks (SFBs) and Urban Cooperative
Public Private Regional
Banks (UCBs) were revised to 60%. higher. Within overall Financial Foreign
Sector Sector Rural
PSL, following sub-targets has been assigned for banks Year Banks Banks Banks Banks#
as percent to Adjusted Net Bank Credit (ANBC) or Credit
Equivalent of Off-Balance sheet Exposures (CEOBE), 2021-22 26,49,180 16,85,806 2,08,107 2,45,481
(42.90) (43.71) (42.65) (89.76)
whichever is higher, to be achieved by banks.:
30,36,062 21,01,827 2,19,622 2,69,835
Sub-targets: 2022-23
(44.51) (44.63) (42.63) (95.72)
18%; out of which a target 2023-24 34,01,407 26,09,386 2,78,694 2,89,336
of 14 % is prescribed for (42.78) (48.20) (46.08) (89.86)
Non-corporate farmers
Agriculture
(NCFs), including 10% 2024-25 38,12,376 27,01,993 2,86,060 3,08,892
(42.41) (41.71) (41.64) (88.44)
for Small and marginal
farmers (SMFs)
2025-26
(As on 40,57,579 31,70,746 2,84,617 3,23,261
Sept. 30, (43.35) (45.49) (40.21) (95.90)
Micro Enterprises 7.5 %
2025)
Note: Figures in parentheses are percentage to ANBC or
Advances to 12 % for SCBs & 15% for
credit equivalent of off-balance sheet exposure (CEOBE),
Weaker Sections RRBs
whichever is higher. PSL target for SCBs is 40% whereas
target for RRBs is 75%
The performance of Scheduled Commercial
Banks (SCBs) and Regional Rural banks (RRBS) in Source: RBI
The performance of Scheduled Commercial by all banks. In fact, in FY 2025-26, all categories of
Banks (SCBs) in achievement of priority sector banks, viz. Public Sector banks, private sector banks,
lending targets over the recent years shows a foreign banks and RRBs have actually exceeded their
sustained growth in credit in credit in absolute terms PSL targets.
263Annual Report 2025-2026
To reduce regional disparities in priority sector have secured admission to a higher education course
credit, a new incentive system has been introduced in a recognized Institution in India or abroad through
wherein districts are ranked by per-capita credit flow, so an entrance test/merit-based selection process are
that incentives for low-credit districts and disincentive eligible for educational loans under the Scheme. The
for high-credit districts have been put in place. From FY Scheme has been modified from time to time, based on
2024-25, incremental priority sector credit in districts with the experience gained and feedbacks received during
per-capita PSL below ₹9,000 carries a higher weight of its implementation over the years. The scheme was last
125%, while districts with per-capita PSL above ₹42,000 modified in June 2025. The main features of the revised
Model Educational Loan Scheme are as under:
receive a lower weight of 90%.
i. The scheme provides need-based education
To ensure continuous flow of credit to priority
loan.
sector, the compliance of banks in meeting the PSL
targets is being monitored by RBI on a calendar quarter ii. No collateral security/third-party guarantee is
basis. Further, Banks having any shortfall in lending to required for loans amount up to ₹ 7.50 lakhs (in
priority sector have to allocate the shortfall amount as case of loans that are eligible for CSIS and/or
contribution to the Rural Infrastructure Development Fund Credit Guarantee coverage extended under the
(RIDF) established with NABARD and other similar funds `Credit Guarantee Fund Scheme for Education
being maintained by financial institutions like NABARD/ Loan’ (CGFSEL).
NHB/SIDBI/ MUDRA Ltd., as decided by the RBI in
iii. No Margin for loans up to ₹ 4 lakhs.
consultation with Department of Financial Services from
time to time. iv. Moratorium period is allowed up to study period
plus one year in all cases.
8.1 Education Loan
v. Repayment period (after moratorium) is available
Every meritorious student should have access to up to 15 years for all loans.
bank credit to pursue higher education, if they so desire.
8.1.1. Performance of Education Loans
Indian Banks’ Association (IBA) had prepared the Model
Educational Loan Scheme (MELS) and circulated to banks As informed by RBI, the total outstanding
in the year 2001. The Scheme is for all students including education loans of Public Sector Banks (PSBs) as on
students belonging to the economically weaker sections 31th March, 2021 stood at is ₹ 72,726 crores and as on
and those below the poverty line. Indian Nationals who 31th March, 2025 stood at ₹ 1,16,786 crores.
Graph 1: Performance of educational loan
8.1.2. Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi) Department of Higher Education (DHE), which enables
Scheme loans through banks to meritorious students so that
Cabinet on 06.11.2024 has approved PM financial constraints do not prevent any youth of India
Vidyalaxmi scheme under the administrative control of from pursuing quality higher education. A mission mode
264Department of Financial Services V
mechanism will facilitate and enable education loans to 2. General Insurance Corporation of India – GIC Re
meritorious students who get admission i n the top 860 (Re-Insurer)
Quality Higher Educational Institutions in the country,
3. The New India Assurance Company Limited
which translates into a coverage to approximately 22 lakh
students every year. The scheme enables meritorious 4. United India Insurance Company Limited
students of these QHEIs to take collateral free, guarantor 5. National Insurance Company Limited
free education loans through a simple, transparent,
6. The Oriental insurance Company Limited
student-friendly and entirely digital application process. A
dedicated PM-Vidyalaxmi Portal is maintained to ensure 7. Agriculture Insurance Company of India Limited-–
overall implementation and monitoring of the scheme. Specialised Insurer (Company floated
The portal has the following features:
by Public Sector general insurance companies
i. A unified portal that allows student to apply for along with NABARD
education loan digitally.
8. ECGC Limited – Specialised Insurer (Government
ii. PM-Vidyalaxmi portal allows student to upload of India entreprise for export credit guarantee)
all the required documents for sanction of loan.
9.3 Legislative Framework governing the
iii. A simple 2-page application format for applying Insurance Sector
education loan
The policy formulation and administration of
iv. Facility for students to apply to multiple banks the following Acts are involved in the development of
through common application for education loans; insurance sector in the country:
v. Facility for students to track the status of 1. The Insurance Act, 1938
submitted application;
2. The Life Insurance Corporation Act, 1956
vi. Facility for banks to download various reports for
3. The General Insurance Business (Nationalisation)
effective monitoring of the scheme. Act, 1972
The scheme also provides for 3% interest 4. The IRDA Act, 1999
subvention on loans up to ₹ 10 lakh to a maximum of
5. The Actuaries Act, 2006
one lakh needy students in a year, where annual family
income is less than ₹ 8 lakhs. This implies that, students The Government promulgated an Ordinance
who are not availing the benefits under CSIS or any namely - the Insurance Laws (Amendment) Ordinance,
other Central /State Government Scholarship or any 2014 on December 26, 2014 to make amendments to
other interest subvention scheme or Fee reimbursement the Insurance Act, 1938, the General Insurance Business
shall be eligible for availing the benefit of 3% interest (Nationalization) Act, 1972 and the Insurance Regulatory
subvention under PM Vidyalaxmi scheme. and Development Authority Act, 1999 in accordance with
the Insurance Laws (Amendment) Bill 2008 as reported by
9. Insurance Sector the Select Committee of the Rajya Sabha. The Ordinance
was replaced by the Insurance Laws (Amendment) Act,
9.1 Overview
2015. With the coming into force of the Insurance Laws
The insurance sector is crucial for citizens and the (Amendment) Act, 2015, the foreign investment cap in an
economy alike, providing individuals with protection from Indian Insurance Company has gone up from 26 per cent
unexpected risks such as death, health crisis or property to 49 per cent with the safeguard of Indian ownership and
damage, thereby fostering financial security and peace control.
of mind. This stability encourages entrepreneurship and
Further amendment in the Insurance Act 1938,
investment, driving economic growth and job creation.
was brought by promulgating the Insurance (Amendment)
Insurance mechanisms mitigate systemic risks, reducing
Act, 2021 enacted on March 25, 2021 by which the
the likelihood of widespread financial crisis and supporting
Government has further enhanced the FDI cap from
the overall well-being of society. It provides long-term
49% to 74% with certain conditions in the terms of Indian
funds for infrastructure development and supports
ownership and control. The Sabka Bima Sabki Raksha
continuous economic transformation.
(Amendment of Insurance Laws) Bill 2025 has further
9.2 Public Sector Insurers raised FDI limit to 100%.
The Public Sector Insurance Companies 9.4 New entrants in the insurance industry
operating in the sector are as follows:
Since the opening up of this sector for private
1. Life Insurance Corporation of India and foreign investment in the year 2000, the number
265Annual Report 2025-2026
of participants in the insurance industry has gone up Government of India bears the differential return,
from seven (7) insurers (including the Life Insurance i.e. the difference between return generated by
Corporation of India, four public sector general insurers, LIC and the assured return committed under the
one specialized insurer and General Insurance scheme as interest-gap subsidy on an annual
Corporation as the national re-insurer) to seventy four basis.
(74) insurers as on March 31, 2025 operating in the life,
Maximum Investment allowed is ₹ 15,00,000.
general, health and reinsurance segments (including
specialized insurers, namely Export Credit Guarantee Under the scheme, a loan of up to 75% of the
Corporation Limited and Agricultural Insurance Company purchase price is allowed after completion of
of India Limited). three policy years.
As per LIC, 8.36 lakh subscribers (10.9 lakh
As on March 31, 2025, there are 26 Life insurers
policies) have benefited under the PMVVY
including one in Public Sector, 25 general insurers
scheme as on 31st March, 2025.
including four in public sector, two specialized insurers in
Public Sector, eight Stand-Alone Health Insurers (SAHI) The Scheme was valid up to 31st March 2023.
and 13 reinsurers including one in Public Sector.
Earlier to PMVVY, LICs’ Varishtha Pension
Registered Insurers and Reinsurers (As on 31.03.2025) Bima Yojana (VPBY) - Plan 161 and Plan 828
supported by the Government of India provided
Type of Public Private pension to senior citizens. As per LIC, 3.58
Total
Insurer Sector Sector
lakh subscribers (4.16 lakh policies) have
Life Insurers 1 25 26 benefited under the VPBY scheme as on 31st
General 6 21 27 March, 2025.
Standalone 9.6 Insurance Industry Statistics
0 8 8
Health
Insurance coverage
Re-Insurer 1 12 13
Total 8 66 74 Insurance coverage refers to the number of
lives covered under insurance for life, health and other
Source: IRDAI insurance categories. As per IRDAI report, during
2024-25, life insurers issued 270.22 lakh new policies
9.5 Insurance related Social Security Schemes:
under individual business and the General, health and
Alongside from the two primary Social Security specialised insurance companies have issued 3913.53
Schemes - Pradhan Mantri Jeevan Jyoti Bima Yojana lakh policies.
(PMJJBY) and Pradhan Mantri Suraksha Bima Yojana
The cumulative enrolment as on 29.10.2025
(PMSBY) – the Pradhan Mantri Vaya Vandana Yojana
under Pradhan Mantri Jeevan Jyoti Bima Yojana
(PMVVY) provides an insurance scheme specifically
(PMJJBY) is 25.46 crore and under Pradhan Mantri
designed for citizens above 60 years of age.
Suraksha Bima Yojana (PMSBY) is 54.73 crore
9.5.1. Pradhan Mantri Vaya Vandana Yojana:
Insurance Penetration and Insurance Density
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
The measure of insurance penetration and
is offered by the Life Insurance Corporation of
density reflects the level of development of insurance
India (LIC) and supported by the Government of
sector in a country. While insurance penetration is
India, to provide senior citizens of age 60 years measured as the percentage of insurance premium
or more an assured minimum pension for a term to GDP, insurance density is calculated as the ratio of
of 10 years, linked to the price at which they premium to population (measured in US$ for convenience
purchase the pension policy. of international comparison).
India Malaysia Thailand China
India (2024-25)
(2001-02) (2024-25) (2024-25) (2024-25)
Insurance
2.7 3.7 (Life:2.7% Non- Life:1%) 5.3 5.1 4.2
Penetration (%)
Insurance Density 97
11.5 623 371 558
(US$) (Life:72 & Non-Life: 25)
Source: Swiss Re, Sigma Report World Insurance Report (No.2/2025)
266Department of Financial Services V
Globally insurance penetration and density 9.7 Life insurance industry
in 2024-25 were 3.0% and USD 388 for the life
Post liberalization period has witnessed sharp
segment and 4.3% and USD 555 for the non-life
growth in the insurance industry, more particularly in the
segment respectively. In 2024-25, the insurance
life segment. Life insurance industry recorded a premium
density in India increased from 95 in 2023-24 to 97 income of ₹ 8.86 lakh crores during 2024-25 as against ₹
in 2024-25. 8.3 lakh crores in the previous financial year, registering
a growth of 6.73%. The private sector life insurers have
The insurance penetration of Life Insurance
clocked a growth of 12.07% in premium, while the public
sector in India is reduced from 2.8% in 2023-24
sector life insurer recorded 2.75% growth in premium. Life
to 2.7% in 2024-25 and the same for Non-Life Insurance Corporation of India (LIC) is the only life insurer
Insurance sector remained at 1% in both these underwriting business outside of India and collected a
years. As such, India’s overall insurance penetration premium of ₹ 398.15 crores during 2024-25, from outside
remained same at 3.7% in 2023-24 & 2024-25. India.
Premium underwritten for Life Insurance Industry 2024-25
New Business Renewal
Market Share Total Premium
Premium Premium
₹ 2.27 lakh ₹ 2.62 lakh
LIC 57.02% ₹ 4.89 lakh crores
crores crores
Private ₹1.71 lakh
42.98% ₹ 2.26 lakh crores ₹ 3.97 lakh crores
Insurers crores
Industry ₹ 4.89 lakh
100% ₹ 3.97 lakh crores ₹ 8.86 lakh crores
Total crores
Source: IRDAI
General insurance industry including Health One of the benefits of opening up of the insurance
Insurance Business sector has been the extension of health cover to a wider
cross-section of the society. Health insurance business
The general insurance industry (including
is the largest segment with a contribution of 41.42% of
standalone health insurers) underwrote total direct
the total premium in 2024-25 (40.29% contribution in
premium of ₹ 3.08 lakh crores in India for the year 2024-
2023-24). Health Insurance Segment reported growth of
25 as against ₹ 2.90 lakh crores in 2023-24, registering
a growth rate of 6.19% as against 12.76% recorded in 9.19% in 2024-25 (19.50% growth in 2023-24).
the previous year. The public sector general insurers
During the year 2024-25, the non-life insurance
(including specialized insurers) together contributed to
sector reported net profit of ₹ 13,154 crores compared
34.57% of the market share while the private sector
to a net profit of ₹10,119 crores in 2023-24. The Profit
general insurers contributed to the remaining 65.43%.
after Tax for public sector companies was ₹ 798 crores
The total premium underwritten outside the country by
as against profit of ₹ 157 crores in 2023-24, private sector
the three public sector insurers (except United India
general insurers had profit after tax of ₹ 8,150 crores as
Insurance) and two private sector insurers (Care Health
and ICICI Lombard) stood at ₹ 3,973 crores and ₹ 82.28 against ₹ 5,983 crores in 2023-24. Specialized insurers’
crores in 2024-25 respectively. net profit was at ₹ 3,444 crores as against ₹ 3,063 crores
in 2023-24 and the net profit for standalone health insurers
Premium was at ₹ 762 crores in 2024-25 as against ₹ 915 crores
Growth from
Sector (Rs crore)
2023-24 in 2023-24.
for 2024-25
PSU 95,252 5.54% 9.8 Investments of the Insurance sector:
Private General 1,62,837 5.00% Insurers have been mandated to follow the pattern
Insurers
of investment, as required under IRDAI (Investment)
Private Standalone Regulations, 2016. As on 31.03.2025, the investments
Health Insurers 38,414 15.99%
made by the insurance industry stood at ₹ 74.44 lakh
(SAHI)
crores as against ₹ 67.57 lakh crores as on 31.03.2024
Specialized Insurers 11,108 -0.92%
registering a growth of 10.14%. The share of Life Insurers,
Industry Total 3,07,611 6.19% General Insurers and Reinsurers stood at 91.07%, 7.04%
and 1.89% respectively. The contribution of public sector
Source: IRDAI Annual Report 2024-25
was 68.4%, while that of private sector was 31.6%.
267Annual Report 2025-2026
Insurance Sector Insurance Life Insurers Public sector
(2022-23) Sector (2023-24 (2023-24) Insurers (2023-24)
₹ 67.57 ₹ 74.44 lakh 91.07% of 68.40% of total
Total investments
lakh Crores Crores total investment investments
9.9 Rural and Social Sector Business Micro insurance
The IRDAI (Obligations of Insurers to Rural and Micro insurance being a low price-high volume
Social Sectors) Regulations, 2015 and IRDAI (Obligation business, its success and sustainability depends mainly
of Insurer in respect of Motor Third Party Insurance on keeping the transaction costs down. In micro-
Business) Regulations, 2015 have been reviewed and insurance-life, the individual new business premium
notified as IRDAI (Rural, Social Sector and Motor Third for the year 2024-25 was ₹ 359.05 crores through 9.32
Party Obligations) Regulations, 2024 which came into lakh new policies and the Group new business premium
effect from 1st April, 2024. amounted to ₹ 9,242.85 crores covering 1,364.48 lakh
lives. There were 1,01,630 micro insurance agents
The revised regulations had specified Rural,
attached to life insurers at the end of FY 2024-25. There
Social and Motor Third-Party Business obligations for the
were 706 micro insurance agents attached to general
year 2024-25 as under:
insurers and the number of policies stood at 26,097 with
a) Rural Sector Obligations: All General insurers a gross domestic premium of ₹ 31.96 crores.
(excluding stand-alone health insurers, AIC, and
9.1 Initiatives/Steps taken by DFS:
ECGC) shall collectively cover minimum 10 per
cent of dwellings, shops, and vehicles under fire The Sabka Bima Sabki Raksha (Amendment of
and motor insurance in minimum 25000 of Gram Insurance Laws) Act, 2025 has amended various
Panchayats provisions of the Insurance Act, 1938, the Life
Insurance Corporation Act, 1956, and Insurance
b) Social Sector Obligations: All insurers—
Regulatory and Development Authority Act,
life, general, and stand-alone health insurers
1999, with a view to enhance citizens protection,
(excluding AIC and ECGC)—shall ensure that
deepen insurance penetration, accelerate growth
10 per cent of lives will be covered under social
and development of the insurance sector and
sector as a proportion of total lives covered.
to enhance the ease of doing business. The
c) Motor Third Party Obligation: Every General amendment raised the Foreign Direct Investment
Insurer (other than stand-alone health insurers, limit in Indian Insurance Companies from 74%
AIC and ECGC) shall ensure minimum to 100%. This will help in attracting stable and
percentage increase, in number of Goods sustainable investment, facilitate technology
Carrying, Passenger Carrying Vehicles and transfer, enhance insurance penetration & social
Tractors (Miscellaneous segment) over last protection and help achieve goal of ‘Insurance for
financial year separately for each category based All by 2047’
on their respective Motor Third Party Insurance
Market Share in the last financial year. The amendment also provides for creation
of a Policyholders’ Education and Protection
Under Rural Obligation, it is reported that all
Fund. For greater Policyholders’ protection,
general insurers collectively have insured 1,61,525
Insurance Regulatory and Development Authority
dwelling & shops and 11,82,073 Vehicles for allocated
of India (IRDAI) is being granted the power
Gram panchayats. 11 General Insurers have reported
of disgorgement of wrongful gains made by
that they have not achieved social sector obligations
an insurer or intermediary. It will create a
for FY 2024-25. Under Passenger Carrying Vehicle and
legal anchor for effective use of digital public
Tractor Category, 18 insurers have reported shortfall and
infrastructure in insurance sector to ensure that
under Goods carrying Vehicle Category, 17 insurers have
reported shortfall. policyholders’ information is duly secured and
protected
The SAHI insurers have covered 166.60 lakh To ensure uninterrupted service and support
lives under social sector i.e., 20% of total lives covered
to policyholders and to promote ease of doing
during the year complying with social sector obligations.
business, one-time registration of insurance
With respect to Rural Sector, SAHI insurers covered 17.76
intermediaries is proposed in the amendment.
lakh lives in health and 12.21 lakh lives under personal
Further, the limit for seeking IRDAI approval
accident.
268Department of Financial Services V
for transfer of shares of paid up equity capital, 10. Pension Sector
is being raised from the current 1% to 5% for
Performance & achievements under key/flagship
insurance companies. The requirement of Net
programmes (Tables at Annexure I)
Owned Funds for foreign re-insurers is reduced
from ₹ 5,000 crores to ₹ 1,000 crores to facilitate 10.1 Atal Pension Yojana (APY)
entry of more re-insurers, building greater re-
Atal Pension Yojana (APY) was launched on
insurance capacities in the country
9th May, 2015, with the objective of creating a universal
This department has been continuously reviewing social security system for all Indians, especially the poor,
the performance of PSGICs. With concerted the under-privileged and the workers in the unorganised
efforts, the profit after tax of the four PSGICs has sector. It is open to all citizens of India between 18-
improved from ₹ 157 crores in 2023-24 to ₹ 798 40 years of age having a savings bank account in a
crores in 2024-25. bank or post-office. For better targeting of guaranteed
pension to unorganised sector workers, an income tax
DFS in co-ordination with DIPAM has disinvested
payer shall not be eligible to join APY from 1st October,
its equity stake to the extent of 3.39% in General
2022. The subscriber under APY is required to make a
Insurance Corporation of India by Offer for Sale
monthly/quarterly/six monthly contribution of an amount
of Equity Shares through the stock exchange determined by the amount of pension chosen and the
mechanism on 4th and 5th September, 2024. A age of joining the scheme. The subscriber shall receive
total of 594,32,385 Equity Shares (3.39% of the a government guaranteed minimum pension of ₹ 1000
paid-up equity share capital of the Company) per month, ₹ 2000 per month, ₹ 3000 per month, ₹ 4000
were sold raising approx. ₹ 2345.55 crores. per month or ₹ 5000 per month, after the age of 60 years
until death, depending on the contribution chosen. The
This department in collaboration with the sector
spouse of the subscriber shall be entitled to receive the
regulator IRDAI, is taking measures to monitor
same pension amount as that of the subscriber after the
cyber security related issues in public sector
death of the subscriber. After the death of both subscriber
insurance companies. DFS has requested IRDAI
and the spouse, the nominee of the subscriber shall be
to conduct a regular review of the cyber security entitled to receive the pension wealth, as accumulated
of insurance companies and intermediaries to till age 60 of the subscriber.
align with up-to-date security mechanisms for
APY is being administered by the Pension Fund
prevention and monitoring of threats.
Regulatory and Development Authority (PFRDA) under
With a view to address accessibility needs of the overall administrative and institutional architecture
persons with disabilities in respect of the facilities of the National Pension System (NPS). As on 30th
and services pertaining to Insurance Sector, November, 2025, the number of enrolments under APY is
DFS has formulated the “Accessibility Standards more than 8.45 crore with an AUM of ₹ 52,419.63 crores
and Guidelines for infrastructure and services in (including gap funding from GoI).
Insurance Sector” in August 2024. Enrolment Figures: Total gross enrolments under
This department is supporting MoRTH in APY have crossed 8.45 crores as of November
implementing the Scheme for Cashless Treatment 30, 2025. More than 84 lakh APY subscribers
for Road Accident victims under Golden Hour, were enrolled in FY 2025–26 up to November 30,
which is a welfare measure for saving the lives 2025. Public Sector Banks (PSBs) accounted for
of road accident victims. Additionally, DFS is 5.89 crore accounts, while Regional Rural Banks
coordinating between MoRTH and insurance (RRBs) accounted for 1.73 crore accounts of the
companies for timely contribution to Motor total gross enrolments.
Vehicle Accident Fund. A total of ₹ 504 crores Gender and Age Distribution (as of 30th
have been contributed by Insurance companies November 2025): Female subscribers account
in “account for insured vehicles” as on December for 4,10,44,015 (48.54%) of gross enrolments.
2025. The largest age group enrolled is between 21 to
Insurance Surety Bonds (ISBs) are being 25 years (27.60%, or 2,33,30,498 enrolments),
envisaged to be a viable alternative/complement followed by 26 to 30 years (24.14%).
to Bank Guarantee (BG). In this regard, DFS Pension Slab Preference: A vast majority
has requested all Ministries to explore, adopt (86.91%) of subscribers opted for the ₹1,000
and promote the use of surety bonds in projects pension slab, while 8.15% opted for the highest
related to their ministries. ₹5,000 pension slab.
269Annual Report 2025-2026
Asset Under Management (AUM) and Returns: ₹44,780.49 crore in FY 2024-25. The APY
The total AUM under APY reached ₹52,419.63 Scheme Returns stood at 9.00% since inception
crore as of November 30, 2025, up from as of November 28, 2025.
Cumulative Gross Enrolments under APY as on 30.11.2025
Source: Protean CRA
Age-wise gross subscribers under APY as on 30.11.2025
Source: Protean CRA
270Department of Financial Services V
Pension slab wise no. of gross subscribers under APY as on 30.11.2025
Gender-wise gross subscribers under APY as on 30.11.2025:
Table I: Performance under Financial Inclusion Schemes-
Cumulative Accounts / Enrolments in Crore
31-Mar-24 31-Mar-25 YoY Growth (%)
Government
S.No RRBs
Scheme All All RRBs
RRBs Share RRBs RRBs All Banks
Banks Banks Share (%)
(%)
Atal Pension
1 1.27 6.44 19.72 1.55 7.60 20.39 22.04 18.01
Yojana
271Annual Report 2025-2026
10.2 Unified Pension Scheme (UPS) 10.3.1 Architecture of NPS
The UPS was introduced as an option under the NPS architecture consists of Points of Presence (PoPs)
as collection and distribution arms, a Central Record
National Pension System (NPS) for Central Government
keeping Agency (CRA) which maintains the data and
employees via a notification dated January 24, 2025,
records, Trustee Bank to manage the banking operations,
designed to provide assured, inflation-indexed, and
Pension Fund (PFs) for generating and maximizing
adequate retirement benefits within the existing NPS
returns on investments of subscribers, Custodian to take
architecture. As a result of extensive outreach and
care of the assets purchased by the Pension Funds and
publicity initiatives, over 1.22 lakh Central Government
NPS Trust which holds the assets of subscribers for their
employees opted for UPS until November 30, 2025. benefit and oversees the investment operations.
10.3 National Pension System (NPS) 10.3.2 Withdrawal under NPS
The National Pension System (NPS) was Subscribers can withdraw up to 25% of their own
introduced by the Government of India vide notification contributions with interval of four years & up to four times
dated 22nd December, 2003, to replace the defined before age 60, and of three years after age 60.
benefit pension system by defined contribution pension
10.4 Tax Benefits under NPS:
scheme in order to provide old age income security in
a fiscally sustainable manner and to channelize small 10.4.1 Tax Benefits under Income Tax Act, 1961(Old
regime)
savings into productive sectors of the economy through
prudential investments. It was made mandatory for all a. Section 80CCD (1): Employee contributions
new recruits to the Government service (except armed eligible for deduction up to:
forces) with effect from 01st January, 2004, and has 10% of salary (Basic + DA)
also been rolled out for all citizens with effect from 01st
20% of Gross Income for self-employed
May, 2009, on voluntary basis. NPS has been adopted
(Subject to ₹ 1.5 lakh limit under Section
by most State Governments and most of the Central and
80CCE)
State autonomous bodies. Subsequently, the Pension
b. Section 80CCD (1B): Additional tax deduction of
Fund Regulatory and Development Authority (PFRDA)
₹ 50,000
Act, 2013 was passed. The Scheme offers two types of
accounts, namely Tier-I, which is the Pension account, c. Section 80CCD (2): Employer contributions
and Tier-II account, which is a voluntary withdrawal deductible up to:
account allowed with an active Tier-I account. Some 10% of salary for employees under Old Tax
features of NPS are listed below: Regime
272Department of Financial Services V
14% of salary for employees under New Tax Maximum 60% of the total corpus at the time of
Regime exit is not treated as income.
10.4.2 Corporate Tax Benefits Partial Withdrawals are tax-exempt
Employer contributions to NPS (up to 14% of As of November 30, 2025, the total AUM across
salary, i.e., Basic + DA) are treated as a business all NPS sectors reached ₹15,94,909.57 crores, with a
expense and can be claimed as a deduction total subscriber count of 210.30 lakh. Corporate sector
under Section 36(1)(iv)(a) of the Income Tax Act, registrations crossed 22,957 with 3,138 new corporates
onboarded in the current financial year, taking retirement
1961.
coverage to millions of formal-sector employees.
10.4.3 Tax Benefit on Transfer from Approved
10.5 NPS Vatsalya
Superannuation Fund to NPS
NPS Vatsalya, launched on September 18, 2024,
To facilitate fund transfers from an approved
is a contribution-based saving-cum-pension scheme for
superannuation fund to NPS, sub-clause (v) under
minors that aims to secure their future and nurture a
section 10(13) of the Income Tax Act, 1961 provides tax
culture of savings.
exemption by not treating such transfer as the employee’s
income for the relevant assessment year.
Performance (as of November 30, 2025): The
scheme recorded 1,59,205 subscribers and an AUM of
10.4.4 Tax Benefit on Exit from NPS
₹215.95 Crore. The subscriber count includes 70,599
Amount utilized for purchase of annuity on exit
females and 88,558 males. The largest age group enrolled
(minimum 40% mandatory) is not treated as
is 0-5 years (66,686 subscribers).
income.
10.6 The status of NPS as on 30th November, 2025,
Goods and Service Tax (currently 1.8%) is not
is as under:
applicable on annuity purchase.
Number of subscribers Asset under Management
Sector
(In Lakhs) (₹ in Cr.)
Central Government 28.01 4,31,005.49
State Government 74.58 8,14,339.54
Corporate 25.97 2,62,915.92
Non-Govt Sector All Citizen Model 46.65 80,041.27
Vatsalya 1.59 219.38
NPS Lite* (discontinued) 33.50 6,387.97
Total 210.30 15,94,909.57
*(No fresh registration permitted w.e.f. 1st April, 2015)
NPS Subscriber Base as on 30th Nov 2025
273Annual Report 2025-2026
10.7 Significant policy decisions & initiatives for schemes within the NPS through the PRAN at
inclusive growth/public service delivery each Central Recordkeeping Agency (CRA). This
new architecture enables Pension Funds (PFs)
10.7.1 Policy Decisions and Frameworks:
to design schemes tailored to specific subscriber
1. Amendments to the PFRDA (Exits and
profiles, such as self-employed professionals or
Withdrawals under the NPS) Regulations,
digital economy workers, promoting inclusivity in
2015: PFRDA notified the amendments to
pension. 25 schemes have been launched under
the PFRDA (Exits and Withdrawals under the
this framework. till 30th November 2025, a total of
National Pension System) Regulations,2015, vide 15,720 Subscribers invested to the various MSF
notification dated 12 December 2025, following schemes launched with a total AUM of approx.
stakeholder consultations. The amendments ₹ 20 Cr.
are aimed at enhancing subscriber flexibility
3. Expansion and Rationalisation of Investment
and choice, while ensuring retirement income
Choices: The range of investment options for
security.
Central Government (CG) employees under NPS
The amendments provide for the maximum
was expanded from four to six distinct choices.
entry and exit age as 85 years, modify vesting
Two new Auto Choice options were introduced:
period and remove the minimum subscription
The Life Cycle 75 (LC75), offering higher equity
period for All Citizen Model subscribers. Exit
exposure, and the Balanced Life Cycle Fund
provisions have been recalibrated providing
(BLC), which maintains relatively higher equity
structured payout options including Systematic
later in life. Furthermore, PFRDA rationalised the
Lump Withdrawal (SLW) and Systematic Unit
nomenclature of Life Cycle Funds to better reflect
Withdrawal (SUR). For lower corpus amounts
their equity exposure and risk profile, promoting
(up to ₹12 lakh), subscribers can opt for complete
transparency and ease of selection.
withdrawal and/or along with SUR or annuity,
while for higher corpus, annuity is mandatory 4. Unified Pension Scheme (UPS) Flexibility: The
with the lump sum portion taken as SLW or Government of India introduced a ‘One-time one-
SUR with the option to avail 100% as annuity way Switch facility’, allowing UPS subscribers to
continues to be available for any corpus size. For revert to NPS at any time during service (subject
exit upon superannuation/attaining 60 years/15- to time limits before retirement/superannuation).
year vesting period, as applicable, the lump- Crucially, the additional lump sum payment under
sum and annuity proportion has been retained UPS has been made fully tax-exempt.
at 60:40 for government subscribers, while for
5. CRA Selection Choice: PFRDA issued a
non-government subscribers it has been revised
Master Circular on September 15, 2025, granting
to 80:20. Full withdrawal limit for premature exit
subscribers voluntarily enrolling under NPS the
has been stipulated at ₹5 lakh, and subscribers
choice of selecting their preferred CRA. For APY
joining post age 60 are eligible for exit without
and NPS-Lite, the choice rests with the Point of
requirement of vesting period.
Presence (PoP), but if the PoP integrates with
The amendment also allows regulated financial
multiple CRAs, both existing and new subscribers
institutions to provide financial assistance with
can select their preferred CRA.
lien marking on individual pension accounts
6. NPS Exit Policy Amendment: A circular
within limits applicable to partial withdrawal.
dated April 21, 2025, permits the closure
Partial withdrawals are permitted with interval of
of NPS accounts and complete withdrawal
four years & up to four times before age 60, and
(without annuitization) for subscribers who have
of three years after age 60. Enabling provisions
renounced Indian citizenship and do not hold an
have also been added for the introduction of
OCI card.
specific purpose schemes under NPS, while
maintaining the overall retirement income 7. CRA Charge Determination: Following a
objectives Price Discovery Process (undertaken once
2. Multiple Scheme Framework (MSF): every five years), PFRDA issued a circular on
Operationalised on October 1, 2025 (NPS September 15, 2025, stipulating the revised
Diwas), the MSF allows a subscriber, uniquely charge structure for CRAs to ensure transparency
identified via PAN, to hold and manage multiple and competitiveness.
274Department of Financial Services V
8. Amendments to the PFRDA (Exits and 16, 2025, to promote awareness and financial
Withdrawals under the NPS) Regulations, literacy from a young age.
2015: The PFRDA (Exits and Withdrawals under
8. Strengthening of KYC/AML/CFT framework:
the NPS) Regulations, 2015, last amended in
PFRDA issued a Master Circular towards
2021, are currently being reviewed to reflect
transitioning towards the risk-based KYC
recent developments in the NPS architecture,
approach prevalent in industry, thus moving
including the introduction of Multiple Scheme
away from the previous “one-size-fits-all” model
Framework (MSF) for the Non-Government
as announced in the Union Budget 2023-24.
Sector. Stakeholder feedback highlighting the
This streamlined framework leverages identifiers
need for greater flexibility is also being factored
from the CKYCR, bank-issued KYC, and CBS-
into the amendment exercise.
based verification to enable faster subscriber
10.7.2 Initiatives for Inclusive Growth and Outreach onboarding with minimal physical documentation.
Furthermore, in compliance with recent Supreme
1. To strengthen social security for workers in
Court directives, the circular mandates making
the informal and digital economy, PFRDA has
the KYC process more accessible for Persons
launched NPS for Gig and Platform Workers. The
with Disabilities (PwDs) and individuals with
initiative began with the onboarding of workers
special needs.
associated with Zomato and GoaMiles, marking
a step towards extending pension benefits to this 9. Strengthening of Distribution channel- To
emerging workforce segment. strengthen the distribution channel of NPS,
PFRDA is engaging with Fintechs to increase
2. To increase the awareness among workforce
penetration through online mode and Regional
involved in MSME, more than 50 outreach
Rural Banks (RRBs) to focus on the rural areas.
programs for NPS awareness will be conducted
Furthermore, PFRDA has widened Pension
in coordination of consultancy firms. In addition
Agent options for FPOs. This will expand both
to it, conferences are being organized on NPS
online and offline distribution channels, enabling
in association with trade bodies.
a broader reach and onboarding of additional
3. With an aim to enhance NPS visibility and outreach
channels into the NPS ecosystem and has
among the general public, the Department has
promulgated an incentive framework for FPOs
initiated large-scale awareness programs through through POPs under NPS.
engagement with several media partners. 50
10. Revised Guidelines on Subscriber Onboarding:
such programs will be organised and it includes
With the core objectives of simplifying and
pre-event and post event local coverage through
standardizing the entire onboarding process
the media partner in all of these cities.
for NPS, to make the SRF more inclusive and
4. Training of employees of Point of Presence (PoP) user-friendly and to ensure seamless digital
is being conducted on regular basis.
subscriber registration across all available
5. ENRICH ELEVATE ENROL – TRIPLE “E” and channels, PFRDA issued Revised Guidelines
NPS Diwas, NPS Game Changers campaigns on Subscriber Onboarding and a Revised
were organized to encourage and honor the Subscriber Registration Form (SRF) in October,
efforts of PoP officials who significantly contribute 2025.
to NPS expansion.
11. Atal Pension Yojana (APY) Outreach- PFRDA
6. Rural and FPO Outreach: PFRDA signed a scheduled 32 APY Outreach programs in FY
Memorandum of Understanding (MoU) with 2025–26, conducting 24 such programs by
NABARD during NPS Diwas 2025 to expand NPS November 30, 2025, in coordination with SLBCs
access to 45,000 Farmer Producer Organisations and LDMs. These strategies for promotion
(FPOs). Outreach programs are also being are also discussed at Zonal strategy review
conducted in Tier II cities and mofussil towns, and meetings held in Mumbai, Kolkata, and Chennai.
PFRDA is engaging with Regional Rural Banks To enhance regional accessibility, a single one-
(RRBs) to focus on rural areas. pager APY Flyer was created in Hindi, English,
and 21 other regional languages.
7. NPS Vatsalya Awareness: A nationwide drive
titled “Children’s Financial Security Week: 12. Consultation Papers and Future Strategy:
Promote Awareness & Savings with NPS PFRDA released two consultation papers
Vatsalya” was organised from November 11 to in late 2025 addressing future strategy. The
275Annual Report 2025-2026
first paper proposed three distinct schemes 2025. Out of these, 15.10 lakh are women enrolments,
under the NPS framework, including Pension representing 56.40% of total enrolments in the region.
Scheme-2, an Assured Benefit scheme designed This strong female participation highlights PFRDA’s
to provide a Target Pension with periodic inflation focused efforts in bringing more eligible women under
the APY.
adjustments. PFRDA hosted a seminar on
October 28th 2025 on the Consultation Paper 10.7.4 e-Governance activities
at the Insurance Institute of India in Mumbai.
10.7.4.1 Digital Integration and Subscriber Access
The seminar generated rich discussions among
the participants, focusing on the future roadmap 1. Bharat Connect Platform: NPS accounts can
for the NPS and the practical implementation of accept contributions from individual investors
the proposals outlined in the Consultation. The via Bharat Connect-enabled platforms, including
second paper proposed the adoption of a dual BHIM, PhonePe, MobiKwik, and Kotak Mahindra
valuation framework (‘accrual’ and ‘fair market’) Bank (net banking).
for long-dated Government Securities in NPS/
2. Account Aggregator (AA) Framework
APY, aiming to depict stable pension wealth
Integration: NPS is integrating with the AA
accumulation and reduce the impact of short-term
framework, which facilitates the sharing of
interest rate volatility.
financial and other information in a real-time and
10.7.3 North-East Region & Sikkim Based Initiatives data blind manner between regulated entities.
(Tables at Annexure I) This technology empowers NPS subscribers
to have seamless and secure access to their
To enhance the outreach of APY across the North-
NPS information and enables its portability in an
East, PFRDA has undertaken outreach programmes in
collaboration with regional stakeholders. During FY 2025– encrypted form.
26, two major programmes were conducted in the North- 3. APY Online Onboarding: Banks are encouraged
Eastern Region, one in Itanagar in coordination with the
to strengthen online distribution channels for APY
LDM Itanagar, and another in Guwahati in coordination
onboarding, specifically through the e-APY portal
with SLBC Assam. These programs covered the need for
and APY app using Aadhaar-authentication, and
pension, key features of APY including its triple benefits,
via banks’ net-banking, mobile app, and web
and included presentation of awards and certificates to
portals.
the best-performing LDMs and State Coordinators of
the respective states, along with a review of state-wise
10.7.4.2 Grievance Redressal Mechanism (GRM)
progress. The sessions were attended by officials from
PFRDA, RBI, NABARD, SRLMs, banks, BCs, SHGs, The Centralized Grievance Management System
subscribers, and FLC members, ensuring comprehensive (CGMS), managed by Central Recordkeeping Agencies
participation. (CRAs), facilitates a system-driven grievance redressal
mechanism for subscribers under NPS, APY and UPS.
To strengthen localized communication, a
1. Grievance Volume (FY 2025-26 as on
dedicated one-page APY flyer has been developed in the
key North-East languages listed under Schedule 22 i.e. 30.11.2025): A total of 198,381 grievances were
Assamese, Bengali, Bodo, Manipuri, Nepali, Khasi, received through the CGMS portal in FY 2025–
Mizo, and Garo and also in English, facilitating wider 26, with 195,879 resolved. The highest number of
acceptance and understanding across the North East grievances were received under the APY scheme
region. (66,924 received, 64,705 resolved), followed by
NPS - All Citizen Model (ACM) (51,709 received,
Subscriber awareness programs were also
conducted for the people of the North-East through 52,586 resolved).
PFRDA’s empanelled training agency. 2. Top Grievance Categories: The top grievance
categories received were Withdrawal Related
With the combined efforts of PFRDA and various
stakeholders, APY gross enrolments in the North-Eastern (47,098), PRAN Card Related (41,542), and
States and Sikkim reached 26.77 lakh as on 30 November General query (35,732).
276Department of Financial Services V
A. Grievance Volume through the CGMS as on 30.11.2025 (FY 2025-26)
B. Schemes with Highest Grievance Volume (Top Two) As On 30.11.2025 (FY 2025-26)
C. Top Three Categories with Highest Grievance received as on 30.11.2025 (FY 2025-2026)
277Annual Report 2025-2026
A workshop was conducted by the Department & Development. NHB provides finance to the housing
of Financial Services (DFS) Ministry of Finance on sector through two windows namely Refinance and
‘Measures to Improve Grievance Redressal Mechanism’ Project Finance. NHB’s business includes refinancing
on 4.8.2025 at PFRDA, focusing on strengthening the individual housing loans of HFCs, SCBs, Regional Rural
grievance redressal mechanism under the Centralized Banks and Small Finance Banks (SFBs) and financing
Public Grievance Redressal and Monitoring System public agencies and public private partnerships for their
(CPGRAMS), with specific emphasis on pension-related housing projects.
grievances pertaining to NPS, APY, and UPS. The
The Urban Infrastructure Development Fund (UIDF)
workshop highlighted the importance of systematic data
was initiated in the Union Budget of FY 2023-24 utilizing
collection and indicator-based root cause analysis to
the priority sector lending shortfall. As on 30.11.2025,
identify recurring grievance categories and customer
an amount of ₹30,000 crore has been allocated under
pain points. Key issues such as service delivery gaps,
UIDF, managed by the National Housing Bank (NHB).
procedural delays, system-related challenges, and lack The primary objective of UIDF is to complement the
of awareness at intermediary levels were discussed. The urban infrastructure development initiatives of State
deliberations aimed at improving monitoring, enhancing Governments/UTs in Tier 2 and Tier 3 cities by offering
coordination among stakeholders, and enabling more a reliable source of financing. NHB has established
effective, timely, and citizen-centric grievance resolution. normative allocation guidelines for States/UTs and
implemented an automated system for efficient scheme
11. Financial Institutions
execution. As on 30.11.2025, the Bank has sanctioned
₹13842.54 crore and disbursed ₹1,868.37 crore under
11.1 National Housing Bank
UIDF.
The National Housing Bank (NHB) is a
11.1.1 Refinancing
development financial institution, established in 1988,
under the National Housing Bank Act, 1987 (Central Till 30.11.2025, National Housing Bank has
Act no. 53 of 1987). NHB operates as the principal disbursed cumulative refinance of ₹ 4.33 lakh crore,
agency to promote housing finance institutions and to out of which ₹ 59,368 crore has been disbursed under
provide financial and other support to such institutions. Affordable Housing Fund. The details of refinance
NHB’s three broad functions are Supervision of Housing activities undertaken by NHB during FY 2024-25 and
Finance Companies (HFCs), Financing and Promotion FY2025-26 (till 30.11.2025) are as below:
(Rs. Crores)
FY2024-25 FY2025-26
(01.07.2024 – 30.06.2025) (01.07.2024 – till 30.11.2025)
Outstanding Outstanding
Business
Sanction Disbursement as on Sanction Disbursement* as on
Groups
30.06.2025 30.11.2025
Institutional
Finance
(Refi nance) 28,168 27,266.40 86,440.55 23,618 9,387.85 83,507.30
-NBFC
(HFCs)
Institutional
Finance
8,366 5,042 21,472.89 4,250 509.00 18,879.37
(Refi nance)
-Banks
Total 36,534 32,308.4 1,07,913.44 27,868 9,896.85 1,02,386.67
*figure includes disbursement from carried forwarded limit of last financial year.
278Department of Financial Services V
11.1.2 Financial Highlights Gross NPA ratio of the Bank stood at 0.62% as
on 30.11.2025.
Bank posted a Net Profit of ₹ 770 crores for
the period ended November 30, 2025 (July- Bank has disbursed a cumulative amount of ₹
November) with ROA of 1.59%, Return on NOF 9,897/- crores till 30.11.2025 during the current
of 11.66% and Capital Adequacy Ratio (CRAR) financial year (July, 2025 – June, 2026).
of 45.18% as on 30.11.2025.
Net Profit GNPA (%) CRAR (%)
(Amt in ₹ crore)
FY26 FY26
FY26
(Till 30 770 (Till 30 0.62
(Till 30 45.18
Nov'25) Nov'25)
Nov'25)
FY25 1,909 FY25 0.6 FY25 43.43
FY24 0.69
FY24 1,664 FY24 16.38
11.2 Small Industries Development Bank of India by way of
(SIDBI)
a) Direct Finance through its branch network as also
in partnership with other Institutions
SIDBI,established under an Act of Parliament in
1990, is the Principal Financial Institution for promotion, b) Indirect Finance/ Refinance through Banks
financing and development of the Micro, Small and (including SFBs), NBFCs, MFIs and other
Medium Enterprises (MSMEs) and co-ordination of the institutions by extending refinance/ resource
functions of the various Institutions engaged in similar support assistance against micro and small
activities. SIDBI extends financial assistance to MSMEs (MSE) loan portfolio of such institutions.
279Annual Report 2025-2026
SIDBI is also engaged in various developmental The Profit after Tax for FY 2024-25 and Gross NPAs as
and ecosystem building initiatives for the MSME sector on March 31, 2025 of SIDBI stood at ₹4,811 crore and
in India, such as Cluster Level Interventions, Promotional 0.04%, respectively.
& Development Initiatives, Government Scheme
11.2.2 Initiatives
Management, Digital Innovations, Venture Capital
Support, etc. The Bank has launched new products targeting
MSMEs’ evolving needs, including cashflow-based
11.2.1 Financial Highlights
support for defence-related businesses, incentives
Overall portfolio is expected to grow as given below: for purchasing DG sets, modernization assistance for
(Amount in ₹ Crore) hospitality enterprises, and investment aid for agro-based
industries.
Business
Groups O/S 31.03.25 O/s 30.11.25 SIDBI has also initiated a Development of Industry
(Audited) (Provision)
(SIDBI) Associations (DIA) programme in industrial clusters
across India. SIDBI continues to leverage technology
Total 4,96,282 5,37,554 to boost financial inclusion for MSMEs, focusing on
improving credit access through digital initiatives.
The Profit after Tax for FY 2024-25 and Gross NPAs as on March 31, 2025 of SIDBI stood at
Rs.4,811 crore and 0.04%, respectively.
11.3 Export - Import Bank of India (Exim Bank) which benefit a gamut of externally oriented Indian
companies, including MSMEs. The Bank’s Trade
Exim Bank was established in 1982 for financing,
Assistance Programme (TAP) is also working towards
facilitating and promoting India’s international trade and
addressing the trade finance gap to businesses, especially
investment, for functioning as the principal financial
MSMEs, by providing an effective bridge between local
institution for coordinating the working of institutions
banks in partner countries and banks in India.
engaged in financing export and import of goods
and services with a view to promoting the country’s India Exim Finserve IFSC Pvt. Ltd. is a subsidiary
international trade, and to function as a key policy-input of Exim Bank set up in GIFT City. As on November 30th
provider to the Government of India (GoI). ,2025 the Exim Finserve has supported transactions with
aggregate value of USD 31.10 mn (equ. ₹ 275 crore)
Exim Bank offers a comprehensive range of
covering 1,726 transactions (invoices) for exports to North
lending and service / advisory programmes, aimed at
aiding the globalisation efforts of Indian companies. Exim America, Europe, Middle East and Southeast Asia and
Bank especially distinguishes itself in the areas of Project Australia supporting MSME exporters, based in Uttar
Exports, Lines of Credit (LOCs) and Overseas Investment Pradesh, Tamil Nadu,Goa, Maharashtra, Gujrat, Punjab
Finance (OIF) and Ubharte Sitaare Programme (USP), and Delhi etc
280Department of Financial Services V
A. Policy Business of the Bank (As on Nov,2025)
B. Commercial Business: (As on Nov,2025)
281Annual Report 2025-2026
11.4 India Infrastructure Finance Company Limited IIFCL has set up three wholly-owned subsidiaries as
(IIFCL) under:
a) IIFC(UK)
IIFCL is a wholly-owned Government of India
company set up in 2006 to provide long-term financial b) IIFCL Projects Limited (IPL)
assistance to viable infrastructure projects. IIFCL has c) IIFCL Asset Management Company Limited
been registered with the Reserve Bank of India as a (IAMCL)
Non-Banking Finance Company – Infrastructure Finance
The organization gives overriding priority to
Company (NBFC-ND-IFC) since September 2013. It is
Public-Private-Partnership (PPP) projects. IIFCL provides
amongst the most diversified public sector infrastructure
long term financing to viable infrastructure projects
lenders in terms of eligible infrastructure sub-sectors and
through a product mix of Direct Lending (SIFTI), Takeout
product offerings. IIFCL is also active in providing inputs Finance, Refinance and Credit Enhancement. Taking its
and policy support in infrastructure financing space to developmental role further, IIFCL has in FY 2021-22
the Government through various forums, with an aim to ventured into investment in Infrastructure Project Bonds
promote and develop world-class infrastructure in India. and lending to Infrastructure Investment Trusts (InvITs).
Fig.1 Sanctions and Disbursements as on 30.11.2025
On a standalone basis, as of 30th November, green and sustainable financing, specifically within
2025, IIFCL has made cumulative gross sanctions of the renewable energy sector. In August 2024, IIFCL
₹ 3,58,453 crore to around 880 projects under Direct introduced a comprehensive Sustainable and ESG
Lending, Takeout Finance, Refinance Schemes, InvITs, Financing Framework to facilitate the issuance of green
and investment in Bonds. This includes cumulative gross bonds, along with a Green Finance Framework for their
sanctions of ₹ 1,41,746 crores under direct lending. appropriate deployment.
The company has made cumulative disbursements of
11.5 National Bank for Financing Infrastructure
₹ 1,78,370 crores till 30th November, 2025. Since
inception, 60% of IIFCL’s business has been done during and Development
the period from FY 2021 to Q2 FY 2026
National Bank for Financing Infrastructure and
IIFCL recorded an all-time high Profit after Tax Development (the ‘Institution”) has been set up as an
(PAT) of ₹2,165 crores in FY 2024-25 and a PAT of infrastructure focused Development Financial Institution
₹719 crores as on Q2 FY 2025-26. Further, IIFCL is (DFI) under the National Bank for Financing Infrastructure
targeting 20% of its disbursements in FY 2026 towards and Development Act 2021, on March 28, 2021 to support
282Department of Financial Services V
the development of long-term non-recourse infrastructure 2025, the Institution has successfully raised ₹ 7,809 crore
financing in India including the development of the bonds through bonds.
and derivatives markets necessary for infrastructure
As of November 30, 2025, the Institution has
financing. The Institution was granted All India Financial
accorded cumulative sanctions (since December 2022)
Institution (AIFI) status by the RBI on March 8, 2022.
of ~₹ 2,83,245 crore and cumulative disbursement of
The Institution commenced its business operations ~₹ 1,00,809 crore across sectors such as Roads,
on December 29, 2022, with its first loan disbursement. The Renewables, Transmission and Distribution, Data
Institution reported Net Profit After Taxes of ₹ 1,602 crore for centres, Hospitals, Education, and Social Commercial
FY 2024, ₹ 2,191 crore for FY 2025 and ₹ 1,486 crore, for Sectors amongst others. Two-thirds of the sanctions
the first six months of FY 2026 respectively. The Institution are spread across long-term tenors ranging between
received Highest AAA (stable) domestic rating from ICRA, 15-30 years. The Institution projects to accord
CRISIL, CARE and India Ratings. In FY 2024-2025, the cumulative sanctions of ~ ₹ 3,23,000 crore and
Institution raised ₹ 16,851 crore (of which ₹ 3,911 crore had cumulative disbursements of ~ ₹ 1,45,000 crore by end
tenor of 20 years) and during the half year ended September of FY 2025-2026.
Major achievement towards Developmental Mandate: been appointed as transaction advisor by Andhra
Pradesh Capital Region Development Authority
i. The Institution launched the Partial Credit
(APCRDA) on November 12, 2025, for providing
Enhancement (PCE) product on September 18,
advisory services related to urban infrastructure
2025. The aim is to catalyse the participation of
projects to undertake the development of
insurance and pension funds in infrastructure
Amravati City. The Institution also signed an
financing and expand the investor base. Backstop
MoU with Jammu & Kashmir Lake Conservation
guarantee facility from Multilateral Development
Banks for risk sharing on PCE facility is under Authority (J&K LCMA) for providing advisory
progress. services for development of tourism projects
near Dal Lake on Oct 24, 2025 and work has
ii. The Institution is offering Transaction Advisory
commenced.
Services (TAS) with focus on Public-Private
Partnerships (PPP) projects facilitating creation iii. A program based lending product for Urban
of bankable project pipeline. The Institution has Local Bodies (ULBs)/ Municipal Corporations
283Annual Report 2025-2026
was launched by Institution in December 2024 Advisory, IFCI is appointed as a Project Management
for debt financing of Waste Management projects Agency (PMA) for various Production Linked Incentive
including Waste to Power, Waste to Biogas & (PLI) schemes launched under the aegis of “Atmanirbhar
Bharat” by the Government of India. These schemes are
Waste-water treatment. The contours of this
aimed at boosting domestic manufacturing and to attract
product were presented to various participants,
large investment in the identified sectors. IFCI is also the
including Municipal corporations/ ULBs in the
Verifying & Monitoring Agency for various capital subsidy
event scheduled on February 06, 2025.
schemes. Under Corporate Advisory, IFCI is offering
iv. The Institution is taking steps towards crowding in
financial advisory, ESG advisory and other Project
of investments through partnerships with various
advisory services to the Corporate & Government sectors.
Multilateral Development Banks. The Institution is IFCI is also the Nodal Agency for monitoring loans of
developing a Partial Debt Guarantee offering in Sugar Development Fund (SDF) since 1984.
collaboration with Asian infrastructure Investment
11.8 New Initiatives
Bank (AIIB) for loans that qualify under climate
Mutual Credit Guarantee Scheme for MSMEs
financing.
(MCGS-MSME)
v. Blended / Concessional Finance structures
The government has launched MCGS-MSME,
and engagement with the World Bank Group
a government-backed initiative designed to help
for development of Partial Credit Enhancement
(PCE) product; MoU with International Finance Micro, Small, and Medium Enterprises (MSMEs)
Centre (IFC) for Co-Lending activities, LoI with access loans to grow their businesses. This
Asian Development Bank for collaboration aimed scheme offers a credit guarantee, making it
at promoting climate resilience and supporting easier for MSMEs to obtain loans, especially for
the improvement of urban and rural infrastructure. purchasing essential equipment and machinery.
The Scheme provides credit guarantee cover to
11.6 The Industrial Finance Corporation of India
lenders (Scheduled Commercial Banks, All India
(IFCI)
Financial Institutions, NBFCs) for their term loans
IFCI Limited (IFCI) was set up as a Statutory
up to ₹100 crore to MSMEs for their projects
Corporation (“The Industrial Finance Corporation of India”
involving purchase of equipment/machinery.
now named as “IFCI Limited”) in 1948, as independent
New Credit assessment model
India’s first Development Financial Institution, for providing
medium- and long-term finance to industry. In 1993, after A New Credit assessment model has been
repeal of the IFCI Act, IFCI became a Public Limited launched for Micro, Small & Medium Enterprises.
Company, registered under the Companies Act, 1956. This credit assessment model leverages the
IFCI is also registered as a Systemically Important, Non-
digitally fetched and verifiable data available in
Deposit Taking, Non-Banking Financial Company (NBFC-
the ecosystem and devise automated journeys for
ND-SI) and is classified as NBFC-Middle Layer (NBFC-
MSME Loan appraisal using objective decisioning
ML) as per Scale Based Regulatory (SBR) Framework
for all loan applications and model-based limit
with Reserve Bank of India (RBI). It is also notified as a
assessment for both MSME borrowers. All the
Public Financial Institution (PFI) under Section 2(72) of
Public Sector Banks (PSBs) have the model live
the Companies Act, 2013. IFCI became a Government
for MSME customers.
Company in April 2015 and as on date (30-11-2025), the
shareholding of GoI stands at 72.57% of paid-up capital Among PSBs, State Bank of India has created
of IFCI. IFCI is a public limited company listed on BSE IT enabled online Platform for Loan application
and NSE and has six number of subsidiaries, and one
by MSME units for their need-based credit
associate under its fold.
requirements from Banks. Key Instruments/
11.7 IFCI Limited also provides Government Advisory features and its impact (Customer satisfaction
services and Corporate Advisory services. In Government in various aspects) are as under:
284Department of Financial Services V
Case Study: State Bank of India
State Bank of India was one the first public sector bank to create an end to end IT enabled online platform for
loan application by MSME units for their need-based credit requirements.
Key Instruments/Features
Instant in-principle sanction for MSME loans based on Digital footprints of the customer (GST, ITR, Bank
A/c Statement, CIC reports etc.).
Application sourcing is an end-to-end journey through Jan Samarth Portal for Mudra loans up to ₹ 10 Lacs
and CLP Portal for loans above ₹10 lacs to ₹5 crores.
Most of the due diligence shall be carried out digitally through various APIs.
Average time taken for loan processing is 45-50 minutes for MSME loans up to ₹ 50 lacs.
Minimal submission of physical papers/documents post clearance by BRE.
It is an end-to-end journey with objective assessment of the request of the MSME clients on GO/NOGO
model.
Impacts
Need not visit branches for applying the loan. MSME promoters have the flexibility to apply for loan from
anywhere on 24/365 basis.
Uploading of the required documents is enabled and no necessity to submit hard copies for a sanction.
Immediately on completion of loan application, the decision shall be conveyed to the applicant online,
thereby improving the turnaround time.
• Credit Guarantee Scheme for Exporters Quantum: Up to 20% of sanctioned working-
(CGSE) capital limits
Credit Guarantee Scheme for Exporters (CGSE) Tenor: 4 years, including 1-year moratorium
was made operational on 01.12.2025 to enable Guarantee Fee: Nil
banks and financial institutions (Member Lending
Validity: Till 31 March 2026 or until ₹20,000 crore
Institutions – MLIs) to extend additional financial
of guarantees are issued.
assistance to Indian exporters during a period
11.9 GST Sahay Project-
when they are facing certain headwinds and have
to take measures to diversify their markets and SIDBI, in association with Online PSB Loans
enhance their global competitiveness. Ltd (OPL) and iSPIRT, has developed a reference GST
Sahay App using the Open Credit Enhancement Network
The objective of this proactive intervention is
(OCEN) and Account Aggregator (AA) frameworks for
to incentivise MLIs to enhance credit flow and
providing ‘on tap’ invoice-based financing (cash flow
ensure timely liquidity to exporter-borrowers — based) for small value credit to micro enterprises. The app
particularly MSMEs — thereby strengthening journey is paperless and covers the entire credit life cycle
their global competitiveness, facilitating the from origination to repayment. It uses trade information
exploration of new markets, stabilisation of supply from Goods and Services Tax Network (GSTN), Bank
information through AA, Credit bureau status, etc., and
chains, supporting expansion of export activities,
also other components of India Stack like e-sign and e-
and promoting sustainable growth in international
stamping, e-NACH mandate, etc. to achieve paperless
trade.
process. After RBI approval for adoption of GST Sahay
• Features of the Scheme app by Regulated Entities, SIDBI launched this App on
12.3.2024 for providing working capital to Jan Aushadhi
Credit Support: Up to ₹20,000 crore in additional
Kendra and related stakeholders.
collateral-free working capital to eligible exporters
12. Special Court and Offi ce of Custodian
Guarantee Coverage: 100% coverage through
NCGTC to Member Lending Institutions 12.1.1 Special Court
Eligibility: Direct and indirect exporters, including
The Special Court (Trial of Offences Relating
MSME and non-MSME units to Transactions in Securities) Act, 1992 came into force
285Annual Report 2025-2026
on 6.6.1992. The legislature sought to set up a Special Nodal Officers i.e. Deputy General Manager/General
Court through this Act for (a) speedy trial of offences, (b) Manager (DGM/GM) of Public Sector Banks/Public Sector
immediate attachment and freezing of all assets of parties Insurance Companies (PSBs/PSICs) concerned for their
suspected to be involved in the scam and (c) a reasonable redressal within the maximum time limit of 21 days. These
and equitable distribution of the property. directions are to be followed by all organisations within the
administrative purview of this Department. Action taken
The Special Court, at present, has one Judge
reports are uploaded on the system and a scanned copy
who is sitting High Court Judge on its strength. To support
of the reply is provided to the complainants on CPGRAMS
their day-to-day functioning, the office of the Special Court
and same can be viewed by them online. In addition, a
functions with a staff of 26 officials at various levels.
dedicated Grievance Handling Cell has been set up in
12.1.2 Office of the Custodian the Department, which is accessible at the Telephone
No. 23346785 and email address sobo3-dfs@nic.in.
To assist the Custodian in discharging the duties
under the Special Court (TORTS) Act, 1992, at present DARPG has introduced a comprehensive
there are two offices one at New Delhi and the other at Grievance Redressal Assessment and Index (GRAI) from
Mumbai. The present sanctioned strength of the Office of May 2023 onwards. The objective of GRAI is to assist the
the Custodian is 19 (including the post of Custodian). The Ministries/Departments to review, analyse and streamline
charge of Custodian is presently held by a Joint Secretary their grievance redressal mechanism with identification
level Officer of the Department of Financial Services in of strengths and areas of improvement. GRAI has been
addition to his substantive charge in the Department of formulated based on 4 dimensions and 11 indicators
Financial Services. with the corresponding weightages. For the month of
November 2025, this department achieved by far the best
Since inception, a total of 13,636 cases have ranking as mentioned below: -
been filed in the Special Court and 552 cases in Supreme
Court of which 13,567 cases in Special Court and 490
Sector Ranking by DARPG based on GRAI
cases in Supreme Court have been disposed of, leaving
April September October November
a balance of 69 cases in Special Court and 62 cases in
2025 2025 2025 2025
Supreme Court to be disposed as on 30th November,
Banking 24 13 11 7
2025. As on 30th November, 2025, the total outstanding
liabilities of notified parties assessed at ₹ 40,905.15
Insurance 30 11 9 6
crores as against recoverable assets valued at ₹ 6,342.5
crores. Till 30th November, 2025, ₹ 13,539.33 crores Secretary (FS) has been personally reviewing
(approximately) has been recovered by the Custodian twenty (20) grievances selected on random basis every
and out of these assets ₹ 7,196.83 crores have been month, wherein, the citizens are given an opportunity to
distributed to the Income Tax Department, Banks and raise their concerns against BFSI sector in the presence
others as per the orders of the Special Court. of Chairman/ MD& CEOs/Senior managements of
Organisations concerned. Such an exercise had a
13. Disposal of Public Grievances
salutary impact and helped in building greater customer
trust in the financial services sector. Till date, sixteen (16)
Timely redressal of public grievances relating
such meetings have been held and three hundred and
to banking and insurance sectors is an important tool
twenty (320) grievances have been analysed to ensure
towards upgrading the quality of customer service in this
the quality of the resolution. Similar meetings are also held
very crucial segment of financial sector. Department of
by Joint Secretaries of the department. Drawing from the
Administrative Reforms and Public Grievances (DARPG)
experience, Chairman/MD&CEO of financial institutions
has established Centralised Public Grievance Redressal
are also conducting similar exercise at their level for
and Monitoring System (CPGRAMS), an online web-
their Organizations. Objective is to assess the efficacy
based system to resolve public grievances.
of grievance resolution through a ‘dip-stick survey’ at top
DARPG vide its Office Memorandum dated most level in the Department.
23.08.2024 had reduced the timeline of redressal of
First round of Centralised Public Grievance
grievances from 30 days to 21 days and the timelines for
Redress and Monitoring System (CPGRAM) workshops
redressal of appeals remains unchanged to 30 days.
on effective grievance redressal mechanism with all the
In the Department of Financial Services, a Public Sector Banks were successfully completed for the
significant number of grievances/complaints, received year 2025. Workshop with Regulators i.e.; PFRDA was
directly from citizens, both online and by post, are held on 04.08.2025, RBI on 13.10.2025 and IRDAI on
related to Banking and Insurance Sectors. The postal 19.12.2025 which were attended by Grievance Redressal
grievances are also digitized and processed through Officers, Senior Management and Ombudsmen across
CPGRAMS for its onward transmission to the designated the Country. Such an exercise helped the Organizations
286Department of Financial Services V
to effectively tackle root cause of grievances thereby
reducing & ensuring its qualitative resolution.
Glimpses of workshop at IRDAI & PFRDA
Glimpses of workshop at RBI Glimpses of monthly review of
Grievances
In order to improve the grievance redressal Insurance Companies followed by Zonal Managers and
framework, this department initiated ranking of Public then General Manager (Customer Care) in Head Office.
Sector Banks, Private Sector Banks and Public Sector The grievances concerning some private sector banks and
Insurance Companies, based on quality and timely private sector insurance companies are resolved through
Reserve Bank of India (RBI) and Insurance Regulatory
redressal of grievances from the month of June 2025,
and Development Authority of India (IRDAI) respectively.
which significantly improved their performance. Ranking
The PSBs have also established Ombudsman for
of Private Sector Insurers are also in the pipeline. This
settlement of grievances for their respective banks.
has strengthened the grievance redressal mechanism by
increased focus on faster turnaround time (TAT) by banks The Reserve Bank of India (RBI) has launched
‘The Reserve Bank Integrated Ombudsman Scheme,
and insurance companies, transparent communication
2021’ on 12.11.2021. The Scheme integrates the existing
between customer and the respective organizations and
three Ombudsman Scheme of RBI namely – (i) the
increase in customer service training in the Organizations.
Banking Ombudsman Scheme, 2006 (ii) the Ombudsman
To ensure that branch staff of Public Sector Banks provide
Scheme for Non-Banking Financial Companies, 2018
the highest levels of service to the customers and visitors,
and (iii) the Ombudsman Scheme for Digital Transaction,
all the banks were advised to devise a mechanism to
2019. In addition to integrating the three existing
collect feedback on customer services through the help
schemes, the integrated scheme also includes under its
of technology (Voice chat, email, QR code etc.).
ambit Non-Scheduled Primary Co-operative Banks with
The Banks and Insurance Companies have their a deposit size of ₹50.00 crore and above. The scheme
own grievance redressal mechanism in place and it is adopts “One Nation One Ombudsman mechanism”. In
also hosted on their respective websites. The first level case of banking, there are 24 offices of RBI Ombudsmen
of grievance redressal is Branch Manager in Banks and and for insurance, there are 18 Insurance Ombudsmen.
287Annual Report 2025-2026
The Bar Diagram showing receipt, disposal of division from 01.01.2024 to 31.12.2024 and 01.01.2025
grievances and appeals for the banking and insurance to 30.11.2025 is mentioned below: -
This department has also initiated ‘Financial along with the prescribed fees to the Central Public
Institutions Interaction Program’ from the month of Information Officer, Department of Financial
December 2025, wherein meetings are held with selected Services,3rdFloor, Jeevan Deep Building, Parliament
organisations based on grievances received in CPGRAM Street, New Delhi-110091 and/or can also file an RTI
Portal. As a first step, Non-Banking Financial Companies under RTI Act, 2005, on Online Portal available at
(NBFCs) are selected for this exercise. DFS remains www.rtionline.gov.in
committed to further improving the grievance redressal
During FY 2025-26 (up to 30.11.2025), 6387
framework in the financial services sector.
RTI Applications and 167 First Appeals were received
on various matters related to Banking, Insurance and
14. Right to Information (RTI) Act, 2005
pension. All the applications and appeals were replied/
As per RTI Act, any citizen can seek information disposed of within the stipulated time as prescribed under
under RTI by making an appropriate application in writing the RTI Act, 2005.
288Department of Financial Services V
Section 4 of the RTI Act casts an obligation proposed the development of a unified e-Auction
on every public authority to make certain suo-moto platform to capture and display detailed information about
disclosures on its website. DFS has also made such suo- properties mortgaged to banks and put up for auction
moto disclosures on its website, regarding information on
by Banks/FIs etc. The objective of the Government was
various functions, powers and duties etc.
to focus on strengthening the recovery mechanisms
15. VIGILANCE for banks and financial institutions, and to ensure a
time-bound resolution of stressed assets and improve
Department of Financial Services (DFS) is the
transparency and boost the sale value realized through
Administrative Department for Public Sector Banks
such auctions. Accordingly, a unified e-auction platform
(PSBs), Public Sector Insurance Companies (PSICs)
was launched in 2019 as e-Bkray, developed by Indian
and Financial Institutions (FIs). A Joint Secretary level
officer has been designated as Chief Vigilance Officer Bank, with MSTC Ltd., a PSU under the Ministry of Steel,
of the Department. He is assisted by Deputy Secretary, designated to conduct e-auctions through the portal.
Under Secretary and Section Officer in the discharge of
In view of evolving user requirements, advances
his functions.
in technology, and the need to further widen buyer
15.1 Performance participation, the platform has been comprehensively
The Vigilance Division of the Department upgraded in line with contemporary industry standards.
monitors the progress on disposal of complaints The revamped portal, now renamed BAANKNET, was
received from various sources and pendency formally launched on 3 January 2025 by the Secretary,
of disciplinary / vigilance cases regularly and Department of Financial Services. BAANKNET enables
holds meeting with CVOs in this Department at seamless listing and auction of mortgaged properties,
appropriate intervals. significantly broadens the pool of potential buyers, and
is expected to materially enhance recovery outcomes for
Instructions have been issued from time to time
banks and financial institutions.
as and when any gap in the system is observed
to strengthen the preventive vigilance in these
Auctions are witnessing participation from
organisations.
increasing number of bidders indicating a notable
Vigilance Section also held Secretary level improvement in competitive intensity. More functionalities
meetings to review pending fraud cases, status are being added to the portal in order to further enhance the
of section 17A and 19 of Prevention of Corruption success rate of bids and improve overall auction outcomes.
Act, 1988 cases with senior officers of CBI and
16.2 e-DRT:
CVOs of PSBs.
CVC’s Annual Sectoral Review Meeting for PSBs A flagship project of Department of Financial
was held to review the status of large value fraud Services, e-DRT was implemented in line with the
cases, complaints and sanctions for investigation Government’s initiative to usher in fast-paced reforms
and prosecution. and Ease of Doing Business environment. The project
implemented from 01.10.2018 sought to digitize the
15.2 Vigilance Awareness Week
functioning of the 39 DRTs and 5 DRATs situated across
Vigilance Awareness Week was observed from the nation. This has successfully led to automation in the
27.10.2025 to 02.11.2025. Essay and slogan writing process flow resulting in transparency, convenience and
competitions, both in Hindi and English were held to
easy access to documents along with cost efficiencies.
create awareness about vigilance rules in Department.
Further, vigilance Section, DFS also oversaw the e-DRT is an ongoing project and various features
successful completion of Vigilance Awareness Week have been added to it since its launch in 2018. E-filing
in subordinate organisations viz. Public Sector Banks/ module (screen design, workflow, user registration,
Public Sector Insurance companies and Public Sector online case filing), integration of Bharat Kosh payment
Financial Institutions.
system (enabling online court fee payment), SMS alert
facility, MIS Module and also CIS Module which facilitates
16. Debt Recovery Tribunals (DRTs)/
scrutiny of documents, hearing of cases, generation of
Debt Recovery Appellate Tribunals
forms, uploading of orders and judgments, public viewing
(DRATs)
of cause lists, case status etc are prominent features of
16.1 BAANKNET Portal: the project, amongst other things.
In 2018, as part of the ongoing reforms, the To ensure ease of access, Helpdesk support
Department of Financial Services, Ministry of Finance and e-Sewa Kendras have been established in all DRTs/
289Annual Report 2025-2026
DRATs. Moreover, hearing of cases through hybrid mode 16.6 Trainings conducted:
or online mode has been enabled in all DRTs/DRATs.
Mediation Training: Department of Financial
This has enabled the users/litigants to attend the hearing
Services, Ministry of Finance, in collaboration with
of their cases remotely.
Mediation and Conciliation Project Committee,
16.3 e- Filing Rules: Supreme Court of India has organized a 40 hours
Mediation Training Programme for the Presiding
Vide Gazette Notification No.GSR.403 dated
Officers of Debts Recovery Tribunal at Additional
23.6.2025, Debts Recovery Tribunals and Debts
Building Complex, Supreme Court of India from
Recovery Appellate Tribunals Electronic Filing Rules,
24th September, 2025 to 28th September, 2025.
2020, have been amended, removing the necessity of any
physical filing subsequent to e- filing of any application in During this Training Programme various topics
DRT/DRAT including concept of Mediation, comparison
between Judicial Process and various ADR
16.4 CKYCRR:
processes, the process, stages and role of
Central KYC Records Registry (CKYCRR) is a Mediators, ways of communication in Mediation
Centralised Repository of KYC records of customers in as well as Negotiation and Bargaining in Mediation
the financial sector (across the Regulated Entities of all were covered. The Training Programme also
the Financial Sector Regulators viz RBI, SEBI, IRDAI & covered the role of various stakeholders viz
PFRDA) with uniform KYC norms and inter-usability of referral judges, lawyers and parties in Mediation
KYC records across the financial sector. It has resulted in with special focus on the cases tried and
efficient sharing of KYC records across the financial sector entertained by the Presiding Officers of DRTs
resulting into ease of doing business for regulated entities under the Recovery of Debts and Bankruptcy
including banks and ease of living for citizens. The usage of (RDB) Act, and the SARFAESI Act, 2002.
the CKYCRR has increased substantially over time. As on Seminar for POs of DRTs: A Residential
30.11.2025, approximately 8,529 Reporting Entities (REs) National Seminar was organized at National
have been onboarded, with over 108 crore KYC records Judicial Academy (NJA), Bhopal for Presiding
uploaded and corresponding KYC Identifiers generated. The Officers of Debts Recovery Tribunals (DRTs) on
number of downloads has reached 169 crores, indicating 1st and 2nd December, 2025.
the growing reliance on CKYCRR for customer onboarding.
During this Seminar, various topics including
The revamp process of CKYCRR has already begun, with
Genesis & Overview of Recovery of Debts and Bankruptcy
several features been enabled such as the ability to search
Act, 1993 (RDB), Jurisdictional Character of RDB,
and download CKYC cards via the website, access to CKYC
Proceedings before DRT Role, Case Management:
cards through missed calls, and integration with Digi Locker
Ways for Improving Efficiency & Efficacy of DRT,
allowing customers to fetch their KYC cards. Additionally,
Role of Adjudicating Officer, Online Adjudication, Art,
CKYCRR now provides REs with data on the number of
Craft & Science of Drafting Judgments/Orders, Role
times a KYC record has been updated or downloaded in
and Responsibilities of DRT post SARFAESI Act,
the past five years.
and Procedural Issues and Challenges faced by Debt
16.5 Aadhar authentication by CERSAI: Recovery Tribunals were discussed.
A notification has been issued 6.11.2025 by 17. Cyber Security and Fintech
DFS under Aadhar Authentication for Good Governance
a. Identification of Critical Information
(Social, Welfare, Innovation, Knowledge), Rules, 2020
Infrastructure in financial sector
authorizing CERSAI to carry out Aadhar Authentication
Critical Information Infrastructure (CII) has been
services on a voluntary basis for the purpose of
defined in the Information Technology Act, 2000
authenticating demographic details of Aadhar Number
Holder received from the entities regulated by RBI, SEBI, as the computer resource, the incapacitation or
IRDAI, IFSCA and PFRDA under the Prevention of Money destruction of which shall have debilitating impact
Laundering Act, 2002 using Yes/No authentication facility. on national security, economy, public health
This step furthers the ease of living for citizens and ease or safety. With a view to identifying CII in the
of doing business for entities. financial services sector, this Department plays
290Department of Financial Services V
a pivotal role in coordinating with Regulators All staff were requested to attend online
(Reserve Bank of India, Insurance Regulatory Cyber Awareness quiz by NCIIPC.
and Development Authority of India & Pension
A phishing exercise was carried out
Fund Regulatory and Development Authority) and to evaluate the effectiveness of cyber
NCIIPC for identifying and notification of critical awareness among staff members.
infrastructure of regulators as also its regulated
Initiated the Cyber Awareness Campaign in
entities. To streamline the process of identification
hotspots (with Mastercard & Cyber Peace
of CII within financial services sector and to build
Foundation), 8—10 workshops planned
a clear roadmap and pipeline for identification of
till 31.12.2025 including Cyber Awareness
CIIs in banking, insurance and pension sector, a
Program for Women Entrepreneurs.
Standard Operating Procedure (SOP)has been Released Cyber Security Awareness Comic
put in place, in consultation with NCIIPC. As of Toolkit at DFS.
date, certain systems/ products/ services in respect
d. The PSB Hackathon Series is an initiative
of 33 organisations/ banks/ regulator as Critical
led by the Department of Financial Services
Information Infrastructure (CII) were notified as
(DFS) in collaboration with the Indian Banks’
protected systems, of which 10 organizations were
Association (IBA) and all 12 Public Sector
notified during the year 2025.
Banks (PSBs), designed to source, mentor, and
b. Cyber Crisis Management Plan operationalize innovative solutions addressing
The purpose of Cyber Crisis Management Plan priority challenges in inclusion, security, and
(CCMP) is to establish the strategic framework resilience across the banking sector.
and actions to prepare for, respond to and begin The program consolidated 94 PSB-originated
to coordinate recovery from a cyber incident. problem statements into 15 high-impact
CCMP has been put in place in this Department challenges and mobilized approximately 2,438
in October, 2020 and is updated periodically. student teams (circa 10,000 participants)
c. Cyber Crisis Management Plan nationwide, reflecting depth of interest and
sectoral relevance across academia and industry.
National Cyber Security Awareness Month
A two-phase design of the hackathon combined
(NCSAM) was observed during the month
virtual/physical idea screening with on-ground
of October, 2025. All the Regulators and
training, prototyping, and juried presentations; a
organisations under DFS were requested
standardized prize structure (₹5 lakh, ₹3 lakh, ₹2
to celebrate NCSAM by conducting various
lakh; ₹1 lakh consolation) reinforced performance
awareness activities on cybersecurity. Further
and quality benchmarks across cohorts.
the following activities were held at DFS.
Further, 12 teams were shortlisted across all
Standees were placed in the office premises
the PSBs, which pitched their solutions to VCs/
of DFS on cyber security awareness
angel investors at Global Fintech Fest-2025 for
All officers of this Department were requested
investments. Out of total 12 selected teams, five
to undergo the course related to Cyber
teams were from the FinTech category focusing
Security on the iGOT Karmayogi platform
on the financial inclusion and accessibility, with
during this month
solutions that have potential to significantly benefit
Photo booth is placed on the ground floor of
vulnerable groups, including senior citizens and
DFS near the fountain and all staff members
the differently-abled. Remaining seven teams
were requested to take photos in the booth
were from the Cybersecurity category, proposed
and post the same on social media (X,
a solution for developing crucial defences against
Facebook, Instagram etc.) with the hashtag
the evolving digital threat landscape
#CyberJagrukNagrik.
e. Fintech
Cybersecurity Awareness session was
conducted a DFS in association with NIC The Department has been proactively engaging
during this month in which over 60 DFS with stakeholders across the fintech ecosystem to
officials participated foster innovation, collaboration, and sustainable
291Annual Report 2025-2026
growth in the sector. Through regular interactions, minimize pendency and to institutionalise Swachhata.
workshops, and lecture series, it has created DFS launched the Special Campaign 5.0 from 2nd -
a platform for open dialogue with fintech 31st October 2025 with special impetus on better space
startups, financial institutions, regulators, and management, customer centric initiatives, making the
environment clean and green, record management and
law enforcement agencies (LEAs). These
disposal of scrap. Public Sector Banks, Public Sector
engagements have facilitated the exchange
Insurance Companies and other Public Sector Financial
of ideas, addressed industry challenges, and
Institutions like NABARD, SIDBI, EXIM Bank, NHB, IIFCL
promoted awareness of emerging trends and
etc. actively participated in the Special Campaign 5.0.
regulatory frameworks. By building strong
partnerships with ecosystem participants, the The Department achieved 100% disposal of all
Department has reinforced its commitment to identified Public Grievances, Public Appeals and MP
driving financial inclusion, enhancing digital References. 2.03 lakh square feet of space have been
infrastructure, and ensuring that India remains freed and revenue of ₹ 3.20cr. has been earned through
scrap disposal. The Campaign was conducted in more
at the forefront of global fintech innovation.
than 41000 sites across the country.
The department supported the sixth edition
of Global Fintech Fest, which was attended 12 Public Sector Banks and 28 Regional Rural
by Hon’ble Prime Minister and Hon’ble Prime Banks organised Pension Grievances Weeks. In the
Minister of United Kingdom. The department also camps, apart from the grievances registered & redressed,
pensioners were also educated regarding submission of
continuously collaborates with fintech partners to
online life certificate and door step banking facilities.
deliberate on the issues and suggestions which
would be useful in creating a robust Fintech Various videos and static contents were posted
ecosystem. In this direction, the government has on Social media platforms by PSBs and RRBs to spread
set up an Inter-Ministerial-Industry Committee on awareness towards Cyber Security. Safety tips and
fintech (IMICF) to look into entire gamut of issues practices were shared through these educational posts
that affect growth of fintech sector and suggest to combat against cyber related frauds. A book on cyber-
long term strategy for its development. The panel security was published by State Bank of India.
will analyse the growth of fintech sector and
Highlights & achievements of the Department
its contribution to BFSI sector; understand the
and organisations:
issues and challenges of the fintech sector; take
1. Cleanliness Campaigns/Sites/Offices Cleaned:
stock of the regulatory and policy developments
41041
in the fintech sector and formulate a fintech vision
document. Three meeting sof the committee 2. Space Freed: 2,15,965 sq. ft.
has already been held in this regard dated 3. Revenue Earned from Scrap Disposal: ₹
11.04.2025, 12.06.2025 and 19.07.2025. 3,20,58,911
The Section also engages in a range of bilateral 4. Disposal of Public Grievances: 6,207
Fintech matters between India and several
5. Disposal of Public Grievances Appeals: 2,139
countries, including Singapore, the United
Kingdom, Canada and the USA. The section also The organisations of DFS, being in the financial
represents the department in Inter-Ministerial services sector, undertook the activities like Financial
AI Coordination Committee (IMACC), and has Literacy campaigns, Registration/Updation of Nomination
coordinated with MeitY in the project “Design and in bank accounts, Activating Dormant Accounts, Renewal
of Locker Agreements, Disposal of Pending Claims etc.
Development of Unified Blockchain Framework
for offering National Blockchain Services and All the activities undertaken by organisations
creation of a Blockchain Ecosystem”. were regularly posted on various social media platforms.
More than 500 posts were made during the campaign.
18. Coordination
Customers of organisations, staff members, senior
Department of Financial Services (DFS) management & head of organisations shared the views
successfully completed the one month long Special about the good work done during the campaign on various
Campaign 5.0 and focused on various activities to social media platforms.
292Department of Financial Services V
293Annual Report 2025-2026
19. Representation from SCs, STs, Official Language in the official work of the Department.
OBCs and PWDs in Financial Sector Necessary steps have been taken to achieve the targets
set in the Annual Programme for 2025-26.
Institutions
Meeting of the Hindi Advisory Committee
Department of Personnel & Training (DoP&T)
A meeting of the Joint Hindi Advisory Committee of
in the Ministry of Personnel, Public Grievances and
the Department of Economic Affairs, Department
Pension, is the Nodal Department for implementation
of the reservation policy for Scheduled Castes (SCs), of Financial Services, and Department of Public
Scheduled Tribes (STs), Other Backward Classes Enterprises, Ministry of Finance, was held on
(OBCs), Economically Weaker Divisions (EWSs), and December 10, 2025, under the chairmanship
Persons with Disabilities (PwDs) (Divyangjan) in the of Shri Pankaj Chaudhary, Hon’ble Minister of
Government of India. Instructions regarding reservation State for Finance, to review the progressive use
in recruitment and promotion are issued by DoP&T of Hindi in the official work of the Department and
from time to time. Department of Financial Services various organizations under its administrative
(DFS) circulates these instructions to the Public Sector
control.
Banks (PSBs), Public Sector Financial Institutions
Parliamentary Official Language Committee
(PSFIs), Public Sector Insurance Companies (PSICs),
Reserve Bank of India (RBI), Insurance Regulatory and During the year 2025-26, the Hon’ble Parliamentary
Development Authority of India (IRDAI) & Pension Fund Official Language Committee inspected public
Regulatory and Development Authority (PFRDA) etc.
sector banks/insurance companies/financial
for implementation. Similarly, instructions issued by the
institutions under the administrative control
other Nodal Ministries/ Departments for the welfare of
of the Department of Financial Services, the
aforesaid category employees, are also circulated to all
Reserve Bank of India, the Insurance Regulatory
PSBs, PSFls, PSICs, RBI, IRDAI and PFRDA etc. for
and Development Authority of India, and the
implementation.
Pension Fund Regulatory and Development
The details of representation of SCs/STs/OBCs/ Authority. These were attended by the Joint
EWSs/PwDs in PSBs, PSFIs, PSICs, RBI, IRDAI and Secretary/Deputy Director General (In-charge
PFRDA is at Annexure (I to IV) respectively
of Official Language) and the Deputy Director
(Official Language). The instructions received
Details of representations from SCs/ STs/ OBCs/
EWSs and Persons with Disabilities (PWDs) in Public during these meetings were communicated to
Sector Banks / Financial Institutions and Insurance the concerned organizations for implementation.
Companies is at Annexure III, IV, V & VI respectively.
Hindi Fortnight
20. Offi cial Language Hindi Fortnight was organized in the Department
of Financial Services from September 14 to
The Official Language Division monitors the
30, 2025. Five competitions were organized
progressive use of Hindi and implements the Official
during this fortnight: Hindi Essay Writing, Hindi
Language Policy formulated by the Department of
294Department of Financial Services V
Note writing and Drafting, Official Language Rajbhasha Kirti Puraskar
Knowledge and Translation, Hindi Typing, and
On September 14-15, 2025, the Department of
General Hindi Knowledge. The prize money for the
Official Language, Ministry of Home Affairs, under
competitions was ₹5,000 (first), ₹3,000 (second),
the chairmanship of the Hon’ble Home Minister,
₹2,000 (third), and ₹1,000 (incentive). Officials
organized a two-day Hindi Diwas and the Fifth
and employees of the Department participated
All India Official Language Conference. The
enthusiastically in these competitions, and a
Department of Financial Services was awarded
total of 30 prizes were awarded to 24 officials/
the Rajbhasha Kirti Puraskar (second prize) for its
employees. The Secretary, Financial Services,
excellent implementation of the Official Language
presented the awards to the winners of the
Policy in Central Government offices. In the same
fortnightly competitions.
sequence, the Rajbhasha Kirti Awards were also
presented to banks/regulators of the Department was imparted to a total of 63 officers/employees
of Financial Services, and several Hindi books of the Department.
and magazines published by their offices were
Organization of Official Language
released.
Implementation Committee Meetings
Special Incentive Scheme To review the progress of official work in Hindi in
To encourage officers/employees to conduct the Department of Financial Services, meetings of
their official work in Hindi, the Department has the Official Language Implementation Committee
implemented an “Annual Special Incentive are held every quarter under the chairmanship
Scheme,” under which cash prizes of ₹5,000/- for of the Joint Secretary/Deputy Director General
the first, ₹4,000/- for the second, and ₹3,000/- (In-charge of Official Language). The meetings
for the third placed officers are given. During review the quarterly progress reports received
the year 2024-25, 10 officers/employees of the from Hindi sections/offices against the targets
set in the annual program of the Department of
department were awarded under this scheme.
Official Language. During the review, instructions
Hindi Workshops
are given to address deficiencies and increase
To promote the use of Hindi in official work the use of Hindi in government work, for achieving
among employees/officers in the Department of the set targets.
Financial Services and to assist them in resolving
21. Audit Paras
practical difficulties faced in working in Hindi, the
Department organizes Hindi workshops on a A summary of Audit observations made
regular basis. Hindi workshops on various topics available by the Office of C&AG pertaining to DFS is at
were organized during the year wherein, training Annexure-VII
295Annual Report 2025-2026
Annexure I
I. Atal Pension Yojana
Bank’s category-wise, Y-o-Y Performance of APY (in lakh)
FY 2025-26
Category of Since inception -
FY 2022-23 FY 2023-24 FY 2024-25 as on 30th
Bank 30th Nov, 2025
Nov, 2025
Public Sector Bank 86.61 88.22 78.46 57.13 588.90
Regional Rural
24.27 27.85 27.85 17.73 172.98
Bank
Private Bank 5.14 5.45 9.65 8.42 57.86
Payments Bank 2.16 0.35 0.08 0.01 15.48
Department of
0.22 0.14 0.10 0.07 4.14
Posts
Small Finance
0.79 0.76 1.11 0.82 4.34
Bank
Co-op Banks 0.14 0.16 0.13 0.11 1.47
Total 119.31 122.93 117.38 84.27 845.17
Summary of Gross Enrolment under APY
Age Wise as on 30 November, 2025
Sr. No. Age Range Gross Enrolments Percentage
1 Between 18 to 20 Years 1,52,86,229 18.08%
2 Between 21 to 25 Years 2,33,30,498 27.60%
3 Between 26 to 30 Years 2,03,96,052 24.14%
4 Between 31 to 35 Years 1,61,80,250 19.15%
5 Above 35 Years 93,24,390 11.03%
Total 8,45,17,419
Gender Wise enrolments as on 30 November, 2025
Sr. No. Gender Gross Enrolments Percentage
1 Female 4,10,44,015 48.54%
2 Male 4,34,48,444 51.43%
3 Transgender 24,960 0.03%
Total 8,45,17,419
*In the F.Y. 2024-25, among the total gross enrolments of 1.17 crores, about 54.64% were females.
Pension Slab Wise as on 30 November, 2025
Sr. No. Pension Slab Gross Enrolments Percentage
1 1,000 7,34,79,553 86.91%
2 2,000 25,34,949 3.00%
3 3,000 11,86,898 1.41%
4 4,000 4,46,102 0.53%
5 5,000 68,69,917 8.15%
Total 8,45,17,419
296Department of Financial Services V
APY Gender Wise Gross Enrolments in North East States and Sikkim
as on 30 November, 2025
APY Gross enrolments
S. No State Female Male Transgender
Since Inception
1 Arunachal Pradesh 19,462 20,776 13 40,251
2 Assam 11,75,400 8,59,867 439 20,35,706
3 Manipur 39,674 35,194 62 74,930
4 Meghalaya 50,136 40,561 9 90,706
5 Mizoram 18,331 16,102 6 34,439
6 Nagaland 21,433 22,212 8 43,653
7 Sikkim 21,975 24,869 28 46,872
8 Tripura 1,68,989 1,42,277 27 3,11,293
Grand Total 15,15,400 11,61,858 592 26,77,850
II. National Pension System
NPS- Sector-wise break-up as on 30th November 2025
Sector Number of subscribers Asset under Management
(In Lakhs) (₹ in Cr.)
Central Government 28.01 4,31,005.49
State Government 74.58 8,14,339.54
Corporate 25.97 2,62,915.92
Non-Govt
All Citizen Model 46.65 80,041.27
Sector
Vatsalya 1.59 219.38
NPS Lite* (discontinued) 33.50 6,387.97
Total 210.30 15,94,909.57
During April– Nov 2025, the private sector (All Citizen + Corporate) added 8.13 lakh new subscribers, reflecting
sustained momentum in voluntary retirement savings. Corporate sector registrations crossed 22,957 with 3,138 new
corporates onboarded in the current financial year, taking retirement coverage to millions of formal-sector employees.
Enrolment during FY 2025-26 (till November 30, 2025)
Particular Total
UoS (All Citizen model) 5,32,496
eNPS mode 1,03,400
Corporate model 1,77,889
Total 8,13,785
297Annual Report 2025-2026
Annexure II
Atal Pension Yojana Outreach Event Photographs
2 APY Outreach Programs were conducted in North East:
State Level APY Outreach Program Guwahati, Assam (10.11.2025)
District Level APY Outreach Program at Itanagar, Arunachal Pradesh (19.09.2025)
298Department of Financial Services V
Physical State Level and District Level APY Outreach Program are organised all over India.
Ahilyanagar, Maharashtra Kolkata, West Bengal (01.08.2025) Bhopal, M.P. (03.09.2025)
(13.08.2025)
Bhopal, M.P. (03.09.2025) Patna, Bihar (29.08.2025) Pune, Maharashtra (14.08.2025)
Madurai, Tamil Nadu (26.09.2025) Madurai, Tamil Nadu (26.09.2025) Udaipur, Rajasthan (16.09.2025)
Udaipur, Rajasthan (16.09.2025) Seoni, Madhya Pradesh Shimla, Himachal Pradesh
(09.09.2025) (31.10.2025)
Shimla, Himachal Pradesh Vadodara, Gujarat (12.09.2025) Vadodara, Gujarat (12.09.2025)
(31.10.2025)
299Annual Report 2025-2026
NPS Outreach Event Conducted at New Delhi, Bengaluru and Assam
Workshop by the Department of Financial Services (DFS) Ministry of Finance on
‘Measures to Improve Grievance Redressal Mechanism’ on 4.8.2025 at PFRDA
300Department of Financial Services V
Annexure III
Annexure IV
301Annual Report 2025-2026
Annexure V
Annexure VI
302Department of Financial Services V
Annexure VII
303Chapter - VI
Department of Public Enterprises (DPE)
1. Public Enterprises Survey basis of recommendations of Public Enterprises Selection
Board (PESB) after obtaining approval of competent
The Department of Public Enterprises brings
authority and after completing due formalities in this
out the Public Enterprises Survey on the performance of
regard.
Central Public Sector Enterprises (CPSEs), which is laid in
the Parliament every year. The PE Survey Report 2024-25 2.1.2 Government Directors:
has been laid in the both the Houses of the Parliament in
The Government Directors are generally senior
December 2025.
officers of the Government of India, State Government(s)
As per PE Survey 2024-25, there were 475 Central or other Government agencies who are nominated to
Public Sector Enterprises under the administrative control the Boards of CPSEs by the concerned administrative
of various Ministries/ Departments as on 31.03.2025. Ministries in ex-officio capacity. The dual role of a
Out of 475 CPSEs, 291 were in Operation of which 226 Government Director is clearly demarcated i.e. as
CPSEs showed profit during 2024-25. The Overall ‘Net a director of the company and representative of the
Profit’ of operating CPSEs was ₹2.91 lakh crore in 2024- Government. As Director of the company, they are bound
25. The Contribution to the Central Exchequer by CPSEs to exercise due diligence and act in the best interest
increased from ₹4.84 lakh crore in 2023-24 to ₹4.94 lakh of the company keeping in view the provisions of the
crore in 2024-25. Companies Act 2013. Government being the major
shareholder in CPSEs, they are also required to protect
A comparison of performances of CPSEs during
its interest. In doing so, they can take formal instructions
2024-25 vis-a-vis the previous year i.e.2023-24, is at
from the Government on critical issues and voice them
Annexure-2.
in the meetings of the Board of the company. They are
required to provide timely feedback on decisions taken by
2. Organisation and Autonomy of CPSEs
the company to their administrative Ministry/Department/
The endeavour of the Government is to make Organization.
Central Public Sector Enterprises (CPSEs) autonomous
In respect of the matters having substantial
Board managed companies. Under Articles of Association,
financial and other consequences to the Government (a)
the Board of Directors of CPSEs enjoys autonomy in
as a shareholder and (b) on the policies of Government
respect of recruitment, promotion and other service
arising in the Board meetings, the Government Director is
conditions of below board level employees. The Board of
required to escalate them to the concerned Ministry and
Directors of a CPSE exercises delegated powers subject
take their advice to formally prepare a view point of the
to broad policy guidelines issued by Government from
Ministry and present the same in the Board of Directors
time to time.
meeting. The Government Director should also regularly
2.1 Structure of Boards of CPSEs: sensitize the Board about the relevant Government
Guidelines (including DPE Guidelines) and compliance
The Board of Directors of CPSEs essentially
of the same.
consist of three types of Directors namely Government
Directors, Functional Directors and Independent If the Board of a CPSE decides contrary to the
(Non-Official) Directors. The Boards are headed by a Government policy, the Government Director should voice
Chairperson cum Managing Director. As per the extant the concern of the Government and get his/her dissent
guidelines the number of functional Directors should or disagreement recorded in the Minutes of the Board
not exceed 50% of the actual strength of the Board and meeting and report the same to the Ministry/Department.
the number of Government nominee Directors shall be The Government Director is required to submit a quarterly
restricted to a maximum of two. In case of listed CPSEs report on the issues deliberated by the Board, which in
with executive Chairperson, the number of non-official his/her view merit attention of the Government and raise
Directors shall be at least 50% of the Board strength. In alerts when things are not happening as expected in the
case of unlisted and listed CPSEs with non-executive company.
Chairperson, at least one-third of the Board Members
2.1.3 Functional Directors:
shall be non-official Directors.
The functional directors are executive heads of
2.1.1 Chairperson cum Managing Director:
the concerned functional areas of a CPSE and perform
Appointment of CMD on the Board of CPSE is their executive role in the respective fields allotted to them.
made by the concerned administrative Ministry on the viz Operations, Finance, Marketing, Human Resources
305Annual Report 2025-2026
etc. The functional Directors are appointed on the Boards investment in joint ventures/subsidiaries, (iii) mergers
of CPSEs by the concerned administrative Ministry on the & acquisitions, (iv) human resources management,
basis of recommendations of Public Enterprises Selection etc. Three CPSEs, namely, Indian Railway Catering
Board (PESB) after obtaining approval of competent & Tourism Corporation Limited (IRCTC Limited),
authority and after completing due formalities in this Indian Railway Finance Corporation Limited (IRFC
regard. PESB is under the administrative jurisdiction of Limited) and Numaligarh Refinery Ltd.(NRL)were
Department of Personnel & Training. PESB issues the granted Navratna status in 2025. With the inclusion of
advertisement, shortlists candidates and holds selection these three CPSEs as Navratna, there are 27 Navratna
interviews for selection to the posts of functional Directors. CPSEs.
The functional Directors are appointed for a tenure of 5
2.4 Miniratna Scheme
years or till their superannuation whichever is earlier.
In October 1997, the Government decided to
2.1.4 Non-Official (Independent) Directors: -
grant enhanced autonomy and delegation of financial
The presence of Independent Directors (IDs) powers to some other profit-making companies subject to
on the Boards of Directors of CPSEs is vital for good certain eligibility conditions and guidelines to make them
corporate governance, as their constructive contributions efficient and competitive. The Miniratna Companies are
are essential to the smooth, transparent, and accountable in two categories, namely, Category- I and Category-II.
functioning of the enterprises. IDs also play a key role There are 54 Miniratna -I and 10 Miniratna-II category
in Board committees such as the Audit Committee, the CPSEs.
Nomination and Remuneration Committee, and the
2.5 The salient features of Maharatna, Navratna &
Corporate Social Responsibility Committee. Proposals
Miniratna scheme and list of these CPSEs are provided
for the appointment of IDs on the Boards of Directors
at Annexure-4 and Annexure-5 respectively.
of CPSEs are initiated by the concerned Administrative
Ministry or Department, which submits a panel of names
3. Wage Policy and Manpower
to the Department of Public Enterprises (DPE) with
Rationalization
the approval of its competent authority. DPE places
these proposals before the Search Committee, which The Department of Public Enterprises (DPE)
currently comprises the Secretary (Department of functions as the nodal Department for policy relating to
Personnel and Training) as Chairperson, the Secretary pay revision of CPSE executives at Board as well as
(DPE), the Secretary of the concerned Administrative below Board level and non-unionized supervisors. DPE
Ministry or Department, and two non-official members. also issues guidelines for wage settlement negotiations
The concerned Administrative Ministry or Department in case of workmen in CPSEs. The Department renders
appoints the ID on the basis of the recommendations advice to the Administrative Ministries/ Departments and
of the Search Committee, after completing all requisite CPSEs in matters relating to revision in pay scales of
formalities and obtaining the approval of the competent executives and also for the wage policy negotiations of
authority. IDs are appointed for a tenure of three years. workmen.
The qualifying standards for eligibility to be appointed as
an ID are provided at Annexure-3. The CPSEs largely follow the Industrial Dearness
Allowance (IDA) pattern of scales of pay. However, in
2.2 Maharatna Scheme some CPSEs, Central Dearness Allowance (CDA) pattern
of scales of pay is also followed. DPE issues quarterly
The main objective of the Maharatna scheme
DA orders in respect of IDA employees. The DA orders
which was introduced in 2010 is to empower mega
for CDA employees of CPSEs are issued for six-monthly
CPSEs to expand their operations and emerge as global
period.
giants. The Boards of such CPSEs have been delegated
enhanced powers in the areas of (i) capital expenditure, 3.1 Pay Revision for employees of CPSEs:
(ii) investment in joint ventures/subsidiaries, (iii) mergers
& acquisitions, (iv) human resources management, etc. 3.1.1 Pay Revision for Executives and Non-
There are 14 Maharatna CPSEs. Unionised Supervisors of IDA pattern in
CPSEs:
2.3 Navratna Scheme
(i) The third Pay Revision Committee (PRC) was
The Government introduced the Navratna constituted under the Chairmanship of Justice
scheme, in 1997, to identify Central Public Sector (Rtd.) Shri Satish Chandra to consider and
Enterprises (CPSEs) that had comparative advantages recommend pay scales for Board and Below
and to support them in their drive to become global Board level executives and non-unionized
giants. Under this scheme, the Boards of Navratna supervisors of CPSEs under IDA pattern of pay
CPSEs have also been delegated autonomy enhanced scale. Based on the recommendations of the
powers in the areas of (i) capital expenditure, (ii) third PRC and Government’s decisions thereon,
306Department of Public Enterprises VI
the revised pay scale guidelines effective from 3.2.2 DPE has also issued revised guidelines on
1st January, 2017 were issued vide DPE OMs the purchase, use and entitlement of staff cars in
dated 03.08.2017, 04.08.2017 and 07.09.2017. Central Public Sector Enterprises (CPSEs) vide Office
Memorandum No 2(23)/11-DPE(WC)/FTS-1128 dated
(ii) The revised pay scales and allowances
15.09.2025.
recommended by third PRC were based on the
basic premise of affordability. These pay scales 3.2.3 Consolidated and revised guidelines regarding
and allowances would be implemented subject the Vigilance Policy for CPSEs have been issued vide
to the condition that the additional financial Office Memorandum No. 15(2)/2001-DPE (GM) dated
impact in the year of implementing the revised 28.10.2025.
pay- package for Board and Below Board level
4. Categorization of CPSEs
Executives and Non-Unionized Supervisors
should not be more than 20% of the Average
4.1 The Public Sector Enterprises are categorized
Profit Before Tax (PBT) of the last three financial
into four Schedules namely ‘A’, ‘B’, ‘C’ & ‘D’. The
years preceding the year of implementation. All
categorization of CPSEs has implications mainly for
the expenditure on this account will be met by
organizational structure and salary of Board level
the CPSE implementing the revised pay scales
incumbents of the concerned CPSE. It also plays a role
& allowances and no budgetary support shall be
in grant of autonomy to the Boards of CPSEs under
provided by the government.
‘Ratna’ scheme.
3.1.2 Pay Revision for employees of CDA pattern
4.2 The initial categorization of CPSEs in the mid-
in CPSEs:
sixties was made on the basis of their importance to
For the employees of CPSEs following the the economy and complexities of their problems. Over
CDA pattern, DPE vide OM dated 17.08.2017 issued the years the Department of Public Enterprises has
guidelines for revision of pay scales and allowances w.e.f. evolved norms for the purpose of categorization/re-
01.01.2016. The benefit of pay revision is allowed to the categorization of CPSEs. Categorization is based on both
employees of those CPSEs that are not loss making and quantitative factors like investment, capital employed,
are in a position to absorb the expenditure on account net sales, profit before tax, number of employees and
of pay revision from their own resources without any units, capacity addition, revenue per employee, sales/
budgetary support from the Government. Further, DPE capital employed, capacity utilization, value added
vide OMs dated 21.05.2018 and 04.07.2019 conveyed per employee and qualitative factors such as national
the Government decision on allowances applicable to importance, complexities of problems being faced by the
CDA employees of CPSEs. company, level of technology, prospects for expansion
and diversification of activities and competition from
3.1.3 Wage Revision for Workmen under IDA other sectors etc. The other factors, wherever available,
pattern in CPSEs: relate to share price, MoU ratings, Maharatna/Navratna/
Miniratna status and ISO certification. In addition, the
DPE has issued policy guidelines for the 8th Round
factor relating to the critical/Strategic importance of the
of Wage Negotiations with unionized workmen of CPSEs
CPSE is also taken into account. At present there are 77
(effective from 01.01.2017) vide its OM dated 24.11.2017.
Schedule ‘A’, 64 Schedule ‘B’, 46 Schedule ‘C’ and 6
The validity of the wage negotiation as per para 2(xi) of
Schedule ‘D’ CPSEs. The Schedule-wise list of CPSEs
DPE OM dated 24.11.2017, shall be minimum period of
is given in Annexure-6.
five years for those who opted for a five-year periodicity
and a maximum period of ten years for those who have 4.3 Procedure for Categorization:
opted for a ten-year periodicity of wage negotiation w.e.f.
01.01.2017. Proposal for categorization of a CPSE is initiated
by the concerned Administrative Ministry/Department
3.2 Guidelines recently issued:
and submitted to DPE. The latter examines such
3.2.1 DPE vide Office Memorandum No. proposals and issue orders with the approval of Finance
W-02/0030/2024-DPE(WC)/FTS-14110 dated 06.02.2025 Minister. Further, to make the process of grant of initial
has clarified the applicability of pay fixation principles categorisation to CPSE simple and easy, DPE has issued
contained in DPE Office Memoranda dated 14.12.2012 guidelines on 11.12.2023 as per which all asset holding
and 17.09.2019 for CPSE executives joining from Public
CPSEs created for managing the non-core assets of the
Sector Banks. Further, DPE vide Office Memorandum No.
CPSEs under disinvestment and those CPSEs which are
W-02/0021/2020-DPE(WC)/FTS-11378 dated 15.09.2025
yet to be made functional will be categorized as schedule
has extended the definition of ' emoluments' applicable
to Defence Services to officers to executives joining from ‘C’ as per procedure prescribed in the OM. Later, vide
Defence Services. OM dated 20.05.2024 and dated 08.08.2024, the process
307Annual Report 2025-2026
of categorisation was further simplified. DPE OM dated and their weightages relevant to the core
20.05.2024 simplified the process for upgradation of the business activities relating to a sector and/or the
existing categorisation of CPSEs and states that all initially CPSE. The IMC also sets the requisite levels of
categorized CPSEs would continue to come to DPE for performance against each of the parameters,
upgradation of their schedule with the approval of their
so decided, as benchmarked targets. The IMC
Administrative Ministry/Department. The latter examines
comprises: (i) Secretary (PE) as the Chairman
such proposals and issue orders with the approval of
and representative of – (ii) D/o Investment and
Finance Minister. Such proposals would not be referred
Public Asset Management (iii) D/o Expenditure,
to PESB and Cabinet Secretariat. DPE OM dated
and (iv) Chief Economic Advisor (Economic
08.08.2024 simplified the process for initial categorisation
Affairs), as the members, and (v) Secretary/
of the existing uncategorised functional CPSEs and states
that all initially categorized CPSEs would continue to representative of the Administrative Ministry
come to DPE for upgradation of their schedule with the and (vi) CMD of the CPSE concerned as special
approval of their Administrative Ministry/Department. The invitee, and any other expert co-opted on need
latter examines such proposals and issue orders with the basis.
approval of Finance Minister. Such proposals would not
5.1.3 MoU Framework (for the year 2021-22
be referred to PESB and Cabinet Secretariat.
onwards):
5. Monitoring & Evaluation
Based on the recommendations of the HPC,
5.1 Memorandum of Understanding: the framework for MoU mechanism using an online
dashboard for the target setting and performance
A Memorandum of Understanding (MoU) is a evaluation of CPSEs has been put in place and made
negotiated agreement signed between the Administrative applicable from the year 2021-22. The parameters
Ministry/ Department and the management of the Central included in the revised MoU mechanism are market
Public Sector Enterprises (CPSEs). Under this, the CPSE oriented, reflecting shareholders’ interest in term of growth
undertakes to achieve targets set in the MoU. In the MoU in revenue, EBITDA margin, return on net worth, return
evaluation, the performance of CPSE on predetermined on capital employed, asset turnover ratio, and market
parameters is compared with the prescribed targets. The capitalization. Adequate weightage has also been given
MoU serves as a tool for ensuring accountability of the to production linked parameters pertaining to CPSE’s
enterprise's management to the government. core operations. All the parameters are quantifiable and
verifiable from the documents available in public domain.
5.1.1 Scope:
Besides, certain government’s priorities/ programmes
All CPSEs (holding as well as subsidiaries) are such as procurement from MSEs, CSR etc. have also
required to sign a MoU. The holding CPSEs sign the been included for compliance by CPSEs, the non-
MoU with their Administrative Ministries/ Departments, compliance of which would result in deduction of marks.
while the subsidiaries sign it with their respective holding
The revised MoU framework also provides for
companies.
benchmarking based on growth and emerging trends of
5.1.2 Institutional arrangements for Implementation the sector, vision that has been worked by the Ministry
of MoU Policy: about the sector, and peer performance.
a) High Powered Committee (HPC): The 5.1.4 MoU Score and Rating:
High-Powered Committee is the Apex body
The CPSEs will be allotted marks proportionately
for the MoU mechanism for laying policy
for achievement of target figure for each parameter. Score
guidelines. HPC is headed by the (i) Cabinet
on all parameters would be added to arrive at MoU score.
Secretary and comprises: (ii) CEO (NITI The rating system of CPSEs based on the MoU score is
Aayog), (iii) Finance Secretary, (iv) Secretary as follows:
(Expenditure), (v) Secretary (Statistics and
Programme Implementation), (vi) Chairman Aggregated Score Rating
(Public Enterprises Selection Board), (vii) Chief
90 ≤ Score Excellent
Economic Advisor (Economic Affairs) and (viii)
Secretary (PE) as the members. 70 ≤ Score < 90 Very Good
50 ≤ Score < 70 Good
b) Inter-Ministerial Committee (IMC): The IMC
finalizes the sectoral templates and CPSE- 33 ≤ Score < 50 Fair
wise MoU parameters. The purpose of sectoral
Score < 33 Poor
templates is to select and identify the parameters
308Department of Public Enterprises VI
6. Corporate Social Responsibility (CSR) 7. Scheme for Research, Development,
Consultancies and Re-orientation
6.1 As per Section-135 of the Companies Act, 2013,
for Central Public Sector Enterprises
all profit-making corporates, including Central Public
(RDCR)
Sector Enterprises (CPSEs) exceeding threshold limits
prescribed in the Act, i.e., net worth of Rs. 500 crores; or
7.1.1 In line with the government's focus on streamlining
turnover of Rs. 1,000 crores; or net profit of Rs. 5 crores schemes to enhance implementation and reduce
are mandated to spend at least 2% of the average net overhead costs, DPE’s two central sector schemes:
profits (Profit Before Tax) of the company made during Research, Development, and Consultancy (RDC) and
the three immediately preceding years. Counselling, Retraining, and Redeployment (CRR) which
were training-oriented schemes (CRR for separated
6.2 The CPSEs are required to follow the provisions
employees and RDC for current employees) have been
contained in Section-135 of the Companies Act, 2013 merged into Research, Development, Consultancy &
and the Companies (CSR Policy) Rules, 2014 notified Reorientation (RDCR). It has been ensured that the
thereunder by Ministry of Corporate Affairs and the objectives of both the CRR and RDC schemes continue
Schedule-VII of the Act, which lists the activities that can to be addressed. RDCR scheme became effective from
be undertaken under CSR. the second half of FY 2024-25.
6.3 Based on the recommendations of CPSEs 7.1.2 The aims and objectives of the RDCR Scheme
are as under:
Conclave held in April, 2018 and with the approval of
competent authority, Department of Public Enterprises a. Thematic Studies: Undertake studies on general/
has issued guidelines on 10.12.2018 to all administrative sectoral issues affecting public sector enterprises
Ministries & CPSEs for adopting a theme based focused in a fast-changing economic environment.
approach every year on CSR expenditure by CPSEs. b. Conferences and Seminars: Conduct national
These guidelines inter-alia provide that CSR expenditure and international conferences, seminars,
for such thematic programmes should be around 60% of webinars, and study tours for collaborative
annual CSR expenditure of CPSEs and the aspirational learning and best practice sharing.
districts identified by NITI Aayog may be given preference.
c. Capacity Building: Offer workshops, training,
6.4 During the FY 2025-26 (till date), following CSR and orientation programs for the Board of
workshops were organized by DPE. Directors (BoDs) of CPSEs.
d. Performance Improvement: Facilitate
i. DPE and UNICEF jointly organized the 5th regional
performance evaluation and management
workshop on CSR with focus on Aspirational
improvements for CPSEs through research and
Districts of Andhra Pradesh, Telangana, Tamil
training institutions.
Nadu, Karnataka, Kerala and Maharashtra on 31st
e. Collaboration: Support national/international
July, 2025 at Hyderabad. The workshop elicited
organizations working on capacity building and
good response from all stakeholders with more
performance improvement of Public Sector
than 100 participants from Aspirational Districts Enterprises.
(ADs) of above states, CSR Nodal officers of f. Incentives: Reward CPSEs for best practices in
CPSEs, officers from State Governments, NITI functional areas through grants and incentives.
Aayog, Implementation agencies, DPE and g. Reorientation Training: Provide skill
UNICEF. enhancement and reorientation training for VRS
optees or their dependents to facilitate self or
ii. DPE and UNICEF jointly organized the 6th regional
wage employment.
workshop on CSR with focus on Aspirational
h. Other Issues: Address any other pertinent issues
Districts of North-East India on 19th September,
related to the Department of Public Enterprises
2025 at Guwahati. The workshop elicited good
(DPE) and CPSEs/SLPEs.
response from all stakeholders with more than
7.1.3 The major interventions proposed to be undertaken
100 participants from Aspirational Districts
under RDCR scheme include:
(ADs) of North East states, CSR Nodal officers
(a) Thematic Consultancies and Studies: to
of CPSEs, officers from State Governments, address key issues like corporate governance,
Implementation agencies, DPE and UNICEF. risk management, HR, CSR, benchmarking
309Annual Report 2025-2026
studies to improve the competitiveness of management, organizational behavior and leadership with
CPSEs. Studies on performance management, a total of 493 participants.
compensation, and appraisal systems and other
7.2.2 4 orientation programmes for Board of Directors
issue related to CPSEs can also be conducted.
of CPSEs (1 for Government, 2 for Functional Directors
(b) Conferences, Seminars, and Study Tours: and 1 for Independent Directors of CPSEs) have also
National and international events will be been organized during the year 2025-26 as per following
organized to encourage knowledge sharing details:
and best practices. Experts will be engaged (i) DPE, with the support of ONGC Limited organized
for collaborative learning through workshops, a non-residential orientation programme for
industry visits, and seminars domestic and capacity building of Independent Directors of
international. CPSEs on 2nd and 3rd June, 2025 in Dehradun. 31
(c) Skill Development and Training: Continuous Independent Directors nominated on the Boards
skill development programs will enhance of various CPSEs participated in the programme
employee productivity across CPSEs and SLPEs. in which sessions relating to Board Room
Training will be organized in collaboration with Ethics, Role of NoDs in Audit Committee and
premier institutes like IITs and IIMs. Programs Corporate Governance, Financial Statements,
will be extended to DPE officials as well. and Secretarial Standards and Governance
Procedure for Board meetings. Presentation on
(d) Induction and Capacity Building for Board
crucial role of CPSEs in India was also made
of Directors: Short-term orientation programs
during the orientation programme.
for Board of Directors and Key Managerial
Personnel of CPSEs to cover topics like risk (ii) DPE, with the support of SJVN Limited organized
management, financial management, and residential orientation programme for capacity
leadership development, succession planning, building of Functional Directors of CPSEs on 10th-
compliance etc to enhance board deliberations. 11th July, 2025 in Dharamshala. 22 Functional
Directors of various CPSEs participated in the
(e) Support to Multilateral Bodies: DPE will
programme in which sessions relating to Board
continue to support organizations like the
Effectiveness & Role of Functional Directors,
International Centre for Promotion of Enterprises
Arbitration in CPSEs, Strategic Management,
(ICPE) and cover membership contributions.
Transformative Board Leadership, Effectiveness
(f) Reorientation for VRS/VSS Optees: Financial
of Audit Functions and Integrated Governance
support for training and associated costs will be
& Risk Oversight, the session also included a
provided which will form part of the VRS package.
presentation on DPE’s important guidelines.
(g) Incentives/Awards to CPSEs and SLPEs:
(iii) DPE, with the support of BELOP Limited,
CPSEs and SLPEs will be encouraged to
organized residential orientation programme
innovate and adopt best practices critical for
for capacity building of Government Nominee
future growth. Awards and incentives will be
Directors of CPSEs on 3rd and 4th September, 2025
granted to those excelling in key focus areas,
in Aurangabad, Maharashtra. 12 Government
with the DPE determining the criteria and seeking
Directors from various CPSEs participated
expert assistance if necessary.
in the programme in which sessions relating
(h) Payment of Outsourced Manpower Support to Roles & Responsibilities of Government
and Software Development: Due to the wide Directors, Navigating Boardrooms, Governance
scope of the RDCR scheme and the limited in- Expectations, Corporate Risk Management,
house manpower at DPE, outsourced personnel Trade & Tariff, Secretarial Standards, Financial
will be hired and payment would be made from Statement, Financial Roles and Responsibilities.
scheme. Presentation on DPE’s online portals (AMRCD,
CSR, MoU, SPARROW, Survey, BoD) was also
7.2.1 During FY 2025-26, DPE has so far organised
made during the orientation programme.
14 training programmes under the RDCR Scheme in
(iv) DPE, with the support of NALCO Limited,
residential mode through leading institutes of country IIMs,
organized residential orientation programme
IITs, NPC, IICA, NISM, etc. The topics of these programmes
for capacity building of Functional Directors
focused on generative AI, public procurement, managing
of CPSEs on 19th and 20th September, 2025
finances, good governance, women empowerment, stress
in Puri. 28 Functional Directors from various
310Department of Public Enterprises VI
CPSEs participated in the programme in which 8.4 The salient features of the guidelines are given
sessions relating to Roles & Responsibilities of below:
Directors, Understanding Financial Statements,
(i) identification of the CPSEs either for closure or
Transformative Board Leadership, Principles of privatization in Non-Strategic Sector will be done
modern board governance, Arbitration in CPSEs, in consultation with the concerned Administrative
Strategic Management along with a presentation Ministries/Departments, NITI Aayog, Department
on important DPE guidelines. of Expenditure and DIPAM. In this regard,
Committee of Group of Officers (CGO) has been
7.2.3 Statement of Scheme wise Expenditure for the
constituted;
year 2023-24 is enclosed at Annexure-7.
(ii) seeking ‘in-principle’ approval of the CCEA
8. Implementation of New Public Sector regarding the CPSEs identified for closure and/
Enterprises (PSE) Policy or for disinvestment in Non -Strategic Sectors;
(iii) the details of CPSEs approved for disinvestment
8.1 The Government notified the new Public Sector
by CCEA will be communicated to DIPAM
Enterprise (PSE) Policy on 4th February, 2021. The
for taking necessary action as per its extant
new PSE policy envisages classification of CPSEs into
procedure. Whereas, DPE will drive the process
Strategic and Non-Strategic Sectors and exempts certain
for CPSEs approved for closure;
CPSEs such as that setup as not for profit companies
under the Companies Act, 2013 or those providing (iii) transfer of leasehold land of CPSEs under
closure to the respective state governments.
support to vulnerable groups or having developmental/
The freehold land will be transferred to National
promotional roles, etc, from the scope of the policy. The
Land Monetization Corporation (NLMC), a
policy proposes that in Strategic Sector, bare minimum
Special Purpose Vehicle (SPV) set up for their
presence of the existing public sector enterprises
disposal. The alienation of land from the CPSEs
at holding company level will be retained under the
under closure will help in expediting the closure
Government control. The remaining enterprises in
process.
Strategic Sector will be considered for privatization
9. Voluntary Retirement Scheme (VRS)
or merger or subsidiarization with another CPSE or
for closure. CPSEs in Non-Strategic Sector shall be
9.1 As a result of the restructuring in some Central
considered for privatization, where feasible, otherwise Public Sector Enterprises (CPSEs), Government
such enterprises shall be considered for closure. announced the Voluntary Retirement Scheme (VRS)
in October, 1988. A comprehensive scheme was later
8.2 The Department of Public Enterprises (DPE)
notified by the Department of Public Enterprises (DPE)
has been brought under the Ministry of Finance vide in May, 2000.
notification dated 6th July 2021 of Cabinet Secretariat.
9.2 VRS in CPSEs that can support the scheme
Vide order dated 17th August 2021 of Finance Secretary,
on their own Enterprises, which are financially sound
demarcation of certain responsibilities between DIPAM
and can sustain VRS on their own, can frame their own
and DPE has been done. DPE has been entrusted with the
schemes of VRS and make it attractive enough for
responsibility to identify CPSEs for closure or privatization employees to opt for it. They may offer as compensation
in Non-Strategic Sector in consultation with administrative upto 60 days salary (only Basic Pay +DA) for every
Ministries/Departments. DPE is also required to drive the completed year of service. Such compensation will,
closure process for CPSEs approved for closure. For however, not exceed the salary for the balance period of
the service left.
implementation of the above, a Disinvestment Division
has been created in DPE. 9.3 VRS in marginally profit or loss Making / sick
/ unviable CPSEs Marginally profit /loss making CPSEs
8.3 In order to operationalize the New Public Sector
as well as sick and unviable units may adopt either of the
Enterprise (PSE) Policy for CPSEs in Non-Strategic following models:
Sector and to drive the closure process of CPSEs
9.3 (i) Gujarat Model, under which the compensation
identified for closure, DPE has prepared guidelines in
is computed by allowing 35 days salary for every
consultation with D/o Expenditure, D/o Economic Affairs,
completed year of service and 25 days for each year of
D/o Revenue, DIPAM and NITI Aayog. These guidelines the balance service left until superannuation subject to
have been issued on 13.12.2021 and are provided at the condition that compensation shall not exceed the sum
Annexure-8. of salary for the balance period left for superannuation.
311Annual Report 2025-2026
9.3 (ii) Department of Heavy Industry (DHI) model, to all the administrative Ministries/Departments
under which ex-gratia payment made is equivalent to concerned on 25th April, 1991 for formal
45 days emoluments (Pay + DA) for each completed issuance of the same to CPSEs. Necessary
year of service or the total emoluments for the balance changes and modifications are also circulated
period of service, whichever is less. The employees who
to CPSEs through their administrative Ministries/
have completed not less than 30 years of service will be
Departments for information and compliance.
eligible for a maximum of 60 (sixty) months’ salary/wage
as compensation and this will be subject to the amount iii. Subsequently, based on the recommendation
not exceeding the salary/wage for the balance period of of the Second Backward Classes Commission
service left. (Mandal Commission) and in accordance with
the Hon’ble Supreme Court Judgment in the
10. Executive Development Programmes
Indira Sawhney case, instructions were issued
10.1 The Central Public Sector Enterprises (CPSEs) for providing reservation of 27% of vacancies
design their own human resource development in favour of Other Backward Classes (OBCs).
programmes to upgrade skills and knowledge of Middle Reservation for OBCs was made effective
and Senior level Executives by giving them training in w.e.f. 8.9.1993. The Department of Personnel
various fields of management development through their & Training (DoPT) which formulates the policy
own Management Institutes or outsourcing the services in respect of reservation in services has been
of premier management training institutions in India.
issuing instructions from time to time on various
10.2 Secretary, DPE is an ex-officio member of the aspects of reservation in respect of OBCs.
Executive Board and Governing Council of the Standing Department of Public Enterprises (DPE) has
Conference of Public Enterprises (SCOPE), New Delhi. been extending these instructions to CPSEs
through their administrative Ministries for
10.3 Secretary, DPE is member on the Board of
compliance. A comprehensive Presidential
Governors of the Institute of Public Enterprise, Hyderabad.
Directive incorporating these instructions
11. Reservation in Employments was forwarded by the Department of Public
Enterprises to all administrative Ministries vide
11.1 Reservation for Scheduled Castes (SCs),
DPE’s OM dated 27th July, 1995 for formal
Scheduled Tribes (STs), Other Backward
issuance to the CPSEs under their control.
Classes (OBCs) and Others in the CPSEs
iv. Further in terms of DPE OM dated 25-10-2017,
i. The Personnel and Recruitment Policies in
all executives i.e. Board & below board level
respect of appointments against below Board
will be considered as creamy layer subject to
level posts are formulated by the management
the proviso that those executives whose annual
of respective CPSEs. However, on matters
income as per criterion given in DoPT OM dated
of general importance, policy guidelines are
08-09-1993 is less than Rs. 8 lakhs (as amended
issued by the Government of India to the
vide DoPT OM dated 13-09-2017) will not fall
enterprises so as to enable them to frame their
under creamy layer criteria. It is for the concerned
individual corporate policies. Furthermore, formal
CPSE to issue the necessary orders for the posts
Presidential Directives are issued to CPSEs
covered under creamy layer criteria on the above-
by the concerned administrative Ministries to
mentioned principle.
ensure reservation in regard to employment
for Scheduled Castes, Scheduled Tribes and v. all the administrative Ministries /Departments
Other Backward Classes (OBCs), on similar concerned with the CPSEs in follow-up of
lines as applicable in the Central Government DoPT instructions for employment of physically
Ministries/Departments. DPE through its OM challenged persons in CPSEs. With the
dated 25.02.2015 has stipulated that those enactment of the Persons with Disabilities
instructions as issued by Government in respect (Equal Opportunities, Protection of Rights and
of reservations to SC/ ST/ OBC/ Disability & Ex- Full Participation) Act, 1995, the reservation
servicemen are to be taken as mutatis mutandis to physically challenged persons have been
extended to all the CPSEs concerned unless extended to identified Group ‘A’ and ‘B’ posts
specified otherwise by DPE. to be filled through Direct Recruitment. As per
ii. A comprehensive Presidential Directive the ‘The Rights of Persons with Disabilities Act,
incorporating all important instructions on 2016, not less than 4% posts shall be reserved
reservation for SCs and STs was issued by DPE for persons with disabilities.
312Department of Public Enterprises VI
vi. DPE has also extended instructions vis-à-vis (X) Updated Consolidated Instructions of Department
the scheme for reservation for Ex-servicemen of Personnel & Training regarding reservation to
in CPSEs through the administrative Ministries/ SCs, STs, OBCs, PwDs and EWS in posts and
Departments. Instructions for streamlining the services were circulated to CPSEs for information
procedure for recruitment of Ex-servicemen and compliance.
have also been issued with a view to augment
11.2. Reservation in Department of public Enterprises:
their in-take in CPSEs. Such CPSEs, which are
Reservation Cell in DPE has been constituted, which
in a position to offer agencies/dealerships, have
looks after the implementation of reservation policies
been advised to reserve quota of such agencies/
in DPE and maintain Reservation Register/ Roster in
dealership for allotment to Ex-servicemen. respect of DPE cadre. Complaint Register in respect of
vii. The instructions issued by DoPT vide its OM the reserved category employees of DPE is also being
dated 19.01.2019 & 31.01.2019 and DO letter maintained by Reservation Cell, DPE. One Director level
officer has been designated as Liaison Officer for SC/ST,
dated 21.01.2019 in respect of 10% reservation
OBC, PwD, EWS and Ex-servicemen in DPE. Complaint
to Economically Weaker Sections (EWSs) are
register in respect of the reserved category employees
also mutatis mutandis extended to all the CPSEs
of DPE is also being maintained by Reservation Cell,
in terms of DPE OM dated 25.01.2019 and
DPE. No complaint has been received in year 2025 till
01.02.2019.
date with regard to implementation of reservation policy
viii. The need to ensure timely filling up of reserved in DPE or related matter. It is also mentioned that nine
posts and the backlog has been stressed through vacancies of MTS posts determined as per reservation
various instructions issued from time to time. roster have been communicated to the Staff Selection
All administrative Ministries/Departments have Commission for recruitment. Percentage representation
of various reservation categories in Direct Recruit posts
been requested to advise the CPSEs under
of DPE cadre are SC-5%, ST-10%, OBC-25%, PWBD-
their administrative control to take effective
5% and EWS- 5%."
steps to fill up the unfilled reserved posts in
Direct Recruitment as well as in Promotion in 12. Official Language Policy
accordance with the existing instructions. Further,
the DoPT has issued instructions from time to 12.1 DPE’s Hindi Section is primarily responsible for
implementation of the various provisions of the Official
time to launch a Special Recruitment Drive (s)
Language Act 1963 and the Rules framed there under.
to fill up backlog of reserved vacancies for SCs,
Hindi Section is also responsible for translation of
STs & OBCs in CPSEs. DPE has also extended
documents required to be issued under Section 3(3) of the
these instructions to all administrative Ministries/
Official Language Act, 1963. In addition, for the smooth
Departments dealing with CPSEs to fill up these
implementation of the Official Language policy/rules in
vacancies in a time bound manner.
the Department, the Hindi Section continuously strives to
ix. The present quota for providing reservation for implement the language policy and achieve the prescribed
candidates belonging to Scheduled Castes, targets as per the Annual Programme published every
Scheduled Tribes and OBCs as well as other year by the Department of Official Language.
categories of persons entitled to reservation of
12.2 Resolutions, notifications, notices, circulars,
vacancies is shown below: papers etc. to be laid on the Table of both the houses
of Parliament have been issued bilingually during
Quota for Reserva-
Category the year 2024-25. Efforts were also made to promote
tion
original correspondence in Hindi. The Official Language
Scheduled Castes 15%
Implementation Committee of DPE continues to function
Scheduled Tribes 7.50% under the Chairmanship of the Joint Secretary.
Other Backward Classes 27%
12.3 With the objective of creating awareness about
Persons with Disability 4% Hindi as the Official Language and promoting its use,
Economically Weaker Sections the Department organised various competitions during
10%
(EWSs) Hindi Fortnight: 2025, held from 14–28 September 2025.
A total of eight (08) competitions were conducted, which
As per policy of reservation for Ex-servicemen
included: 1. Hindi Poetry Recitation Competition, 2. Essay
& Dependents of those killed in action, 14.5% posts in
Writing Competition, 2(i). Essay Writing Competition
respect of skilled workers and 24.5% post in respect of un- (MTS/Contractual Category), 3. Language Proficiency
skilled posts are reserved for Ex-servicemen in CPSEs. Competition, 3(i). Language Proficiency Competition
313Annual Report 2025-2026
(MTS/Contractual Category), 4. Extempore Speech Public Sector Undertakings. DPE has been continuously
Competition (for all), 5. Dictation Competition, and 5(i). engaging with the CPSEs and their administrative
Dictation Competition (MTS/Contractual Category). Ministries/Departments to onboard the CPSEs on TReDS
portal to facilitate increased usage of TReDS portal. 177
12.4 Annual Public Enterprises Survey on the working
CPSEs are now registered on the TReDS portal which
of Central Public Sector Enterprises is presented in the
Parliament every year by this Department. This is very account for 98% of total procurement by CPSEs. In order
voluminous and comprehensive document brought out to facilitate more effective use of the TReDS portal by the
by the Department simultaneously in English and Hindi. CPSEs and ensure timely payments to MSE vendors as
provided in the MSMED, Act, 2006, it has been mapped
13. Procurement by CPSEs from MSEs
as a parameter in the MoU framework from the year
13.1 The Government of India notified the Public
2022-23.
Procurement Policy for Micro & Small Enterprises (MSEs)
14. Significant Initiatives
in 2012 to be administered by Ministry of Micro, Small
& Medium Enterprises. The objective of this policy is
14.1 Mission Recruitment- The Government
to promote and develop MSEs by supporting them in
has decided to fill up vacancies in various Ministries/
marketing of products & services. As per provisions of
Departments and CPSEs in a Mission Mode, i.e. ‘Mission
this policy, w.e.f., 2012-13, every CPSE should achieve
Recruitment’. This exercise is being coordinated by the
an overall procurement goal of minimum 20% of total
Department of Personnel & Training (DoPT) which has
annual purchase from MSEs in a period of three years.
setup a dedicated portal for this purpose. DPE has been
Of the 20% target of annual procurement from MSEs, a
regularly following up with the CPSEs for uploading of
sub-target of 4% must be earmarked for procurement from
requisite information on the designated portal of DoPT.
MSEs owned by SC/ST entrepreneurs. At the end of three
years (i.e., from FY 2015-16), the overall procurement 69,352 new appointees of CPSEs have been covered
goal of minimum 20% would be mandatory. This policy in 17 tranches of Rozgar Mela organized by DoPT so
was amended on November 9, 2018 to increase the far.
minimum annual procurement from MSEs from 20% to
14.2 Mission Karamyogi- All employees of DPE have
25% and to mandate procuring minimum 3% out of the
been onboarded on Karamyogi portal. Annual Capacity
25% from MSEs owned by women, in addition to 4% to
Building Plan of DPE was also approved during the year
be procured from MSEs owned by SC/ ST entrepreneurs.
2023-24 and has been circulated to all employees of DPE
13.2 DPE has been engaging with the CPSEs to
for implementation. 83 employees of CPSEs (including
ensure that the CPSEs comply with the provisions relating
YPs/YAs) have completed 3,276 courses on I-Got
to procurement from MSEs. In line with support measures
portal till 15th November, 2025.
announced by the Government for MSEs, procurement by
CPSEs from MSEs during the year 2022-23 was around 14.3 Participation in Free Trade Negotiations
37.90% as against the mandated 25% which increased (FTAs)- India is pursuing FTA negotiations with several
to 43% during the year 2023-24. During the financial countries and representatives of DPE participated in
year 2024-25, procurement by the CPSEs from MSEs
ongoing India-UK FTA, India-EU FTA and India-Australia
is around 43.57%.
Comprehensive Economic Cooperation Agreement
negotiations held during the year 2024-25.
13.3 Trade Receivables Discounting System
(TReDS) - TReDS is an electronic platform for facilitating
14.4 Adoption of Industry 4.0 technologies across
the financing / discounting of trade receivables of Micro,
CPSEs: DPE has taken a proactive and visionary step to
Small and Medium Enterprises (MSMEs) through multiple accelerate the adoption of Industry 4.0 technologies (also
financiers. These receivables can be due from corporates known as 4IR) across CPSEs. Recognizing that digital
and other buyers, including Government Departments and transformation is not merely a technological upgrade but
314Department of Public Enterprises VI
a strategic imperative for competitiveness, operational and EDR are helpful in monitoring the End-Point Security.
efficiency, and national resilience, DPE convened a series A Centralized Dashboard is used to Track the Health,
of workshops – 2 in New Delhi on 18th July 2025 and 2 on Compliance Status, and Security Alerts of all End-Points
11th November, 2025, 1 in Guwahati on 2nd August 2025, of the Department on real-time basis
2 in Mumbai on 22nd August 2025. These 7 workshops
15.4 Application Security:- The Department's
had participation of senior management of more than 100
Websites/Web Applications are secured with valid
CPSEs.
Cyber Security Audit Clearance and SSL Certificates.
15. Cyber Security Compliance Report Regular Cyber Security Audits are conducted as per
Government Policy and carried out as and when major
15.1 Cyber Security Proces:- The Department of
code level changes are incorporated in the Websites/
Public Enterprises (DPE) has Cyber Crisis Management
Web Applications even before their Audit Validity Periods
Plan (CCMP) in place, which is approved by CERT-In that
are over. The Cyber Security Audit is usually conducted
defines governance structures, roles, and responsibilities
through any CERT-In Empanelled Agency.
to ensure the protection of all Digital Assets Regular
Audits and Management Reviews are conducted to verify New multi-lingual DPE Website is launched using DBIM
compliance improve control effectiveness, and maintain Compliant Framework conforming to latest Government
a robust cyber security posture of the Department. Guidelines including the guidelines for differently abled
persons.
15.2 Network Security:-Network Security Controls
have been implemented to safeguard the Department's All Websites/Web Applications are hosted on
Internal and External Network Infrastructures from the Secure Government Cloud Infrastructure where
unauthorized access, threats and vulnerabilities. health of Web and Database Servers is continuously
These measures include Firewalls, Intrusion Detection monitored 24x7 basis and regular logs & data back-up
and Prevention Systems (IDS/IPS), Secured VPN are maintained for any eventuality.
Access, Network Segmentation, and Continuous Traffic
15.5 Cyber Security Incidents:-All incidents are
Monitoring. Baseline Configurations are regularly
logged, analyzed, and classified based on the severity
reviewed, and Security Patches are applied promptly to
to ensure timely response and minimal business impact.
ensure that all Network Devices remain protected against
Post-incident reviews are conducted to identify root
emerging threats.
causes and implement corrective actions, enhancing the
15.3 End-Point Security:- End-Point Security is organization's resilience and reducing the likelihood of
enforced through standardized versions of Unified recurrence. However, no cyber security breaches have
Endpoint Management (UEM) and End-Point Detection been reported during the year in the Department of Public
& Response (EDR) Systems. Dashboards for the UEM Enterprises.
315Annual Report 2025-2026
Annexure-1
Department of Public Enterprises
Organogram
Hon’ble Finance Minister
Hon’ble Minister of State (Finance)
Secretary
Joint Secretary
Joint Secretary Additional Chief Economic DDG Addl. Secretary &
Advisor (Cost) Advisor (Survey) FA
CCA
Director Director Director Deputy Director Director Joint Director Joint Director Jt. Director
(MoU) (Ad minis E Pas rta lib al mis eh nm t,e nt, G eneral (IT) ( CD lois si un rv ee stm &en t, Asset ( aG nde n Ce ara pl a citM y Ban ua ig lde im nge )n t (Matters related (Survey)
ration Monetization) to Wage)
Poli cy)
Coordination,
IT Cell & Official
Language)
316Department of Public Enterprises VI
Annexure-2
Performance of CPSEs during Financial Year 2024-25
2023-24 2024-25
Sl.
Item/Indicator % Change
(₹ lakh (₹ lakh
No.
Crore) crore)
1. Total Gross Revenue [of Operating CPSEs] 36.09 37.01 2.6%
2. Overall Net Profit [of Operating CPSEs] 3.22 2.91 -9.8%
Net Profit of Profit making CPSEs [of Operating
3. 3.43 3.09 -10.1%
CPSEs]
Net Loss of loss incurring CPSEs [of Operating
4. 0.21 0.18 13.8%
CPSEs]
5. Financial Investment [of all CPSEs] 27.74 31.65 14.1%
6. Capital employed [of all CPSEs] 42.78 47.87 11.9%
7. Net Worth [of all CPSEs] 19.96 22.33 11.9%
8. Dividend declared [of all CPSEs] 1.23 1.39 13.0%
9. Contribution to Central Exchequer [of all CPSEs] 4.84 4.94 1.9%
37.23 38.57
10 Market Capitalization [Listed CPSEs] 3.6%
[66 CPSEs] [66 CPSEs]
317Annual Report 2025-2026
Annexure-3
Details of Eligibility Criteria for appointment as Non-Official (Independent) Directors
Criteria of Experience: (v) Former CEOs of private companies if the
company is (a) listed on the Stock Exchanges
(i) Retired Government officials with a minimum of
or (b) unlisted but profit making and having an
10 years’ experience at Joint Secretary Level or
annual turnover of at least Rs.250 crore.
above.
(vi) Persons of eminence with proven track record
(ii) Persons who have retired as CMD/CEOs of
from Industry, Business or Agriculture or
CPSEs and Functional Directors of the Schedule
Management.
‘A’ CPSEs. The ex-Chief Executives and ex-
Functional Directors of the CPSEs will not be (vii) Serving CEOs and Directors of private companies
considered for appointment as non-official listed on the Stock Exchanges may also be
Director on the Board of the CPSE from which considered for appointment as part-time non-
they retire. Serving Chief Executives/Directors official Directors on the Boards of CPSEs in
of CPSEs will not be eligible to be considered exceptional circumstances.
for appointment as non-official Directors on the
Criteria of Educational Qualification
Boards of any CPSEs.
(iii) Academicians/Directors of Institutes/Heads of Minimum graduate degree from a recognized university.
Department and Professors having more than
Criteria of Age
10 years teaching or research experience in
the relevant domain e.g. management, finance, The age band should be between 45-65 years (minimum/
marketing, technology, human resources, or law.
maximum limit)
(iv) Professionals of repute having more than 15
This could, however, be relaxed for eminent professionals,
years of relevant domain experience in fields
relevant to the company’s area of operation. for reasons to be recorded, being limited to 70 years.
318Department of Public Enterprises VI
Annexure-4
Salient Features of Ratna Scheme (Maharatna/Navratna/Miniratna)
1. Maharatna Scheme and have a ‘Composite Score’ of performance to be 60
or above in six identified performance parameters are
1.1 Eligibility Criteria: The CPSEs meeting the
eligible to be considered for grant of Navratna status. The
following eligibility criteria are considered for Maharatna
composite score is calculated on the basis of performance
status: -
of the concerned CPSEs during the last three years. For
a) Having Navratna status calculation of composite score, 6 performance indicators
have been identified based on their general applicability
b) Listed on Indian stock exchange with minimum
to the CPSEs. The performance indicators have been
prescribed public shareholding under SEBI
chosen so as to capture the performance of CPSEs
regulations
irrespective of their belonging to manufacturing sector or
c) An average annual turnover of more than services sector. The 6 identified performance indicators
Rs.25,000 crore during the last 3 years are: -
d) An average annual net worth of more than
S.N. Performance Indicator (Maximum Weight)
Rs.15,000 crore during the last 3 years
1 Net Profi t to Net worth 25
e) An average annual net profit after tax of more
Manpower Cost to total Cost
than Rs.5,000 crore during the last 3 years
2 of Production or Cost of Ser- 15
f) Should have significant global presence/ vices
international operations. 3 PBDIT to Capital employed 15
1.2 Procedure for grant/divestment of Maharatna 4 PBIT to Turnover 15
status: - The procedure for grant of Maharatna status as 5 Earnings per Share 10
well as their review is similar to that in vogue for the grant
6 Inter Sectoral Performance 20
of Navratna status.
Total 100
1.3 Powers delegated to Maharatna CPSEs: -
2.2 Procedure for grant/divestment of Navratna
1.3.1 The Boards of Maharatna CPSEs in addition status: The proposals for grant/divestment are initially
to exercising all powers to Navratna CPSEs, exercise considered by the Inter-Ministerial Committee and then
enhanced powers in the area of investment in joint by the Apex Committee. The recommendations of Apex
ventures/subsidiaries and creation of below Board level Committee for grant/divestment of Navratna status are
posts. The Boards of Maharatna CPSEs have powers to be placed before Minister (In charge of DPE) for a
to (a) make equity investment to establish financial joint decision.
ventures and wholly owned subsidiaries in India or abroad
2.3 The Powers Delegated to Navratna CPSEs:
and (b) undertake mergers & acquisitions, in India or
abroad, subject to a ceiling of 15% of the net worth of the
2.3.1 Capital Expenditure: - The Navratna CPSEs
concerned CPSE in one project, limited to an absolute
have the powers to incur capital expenditure on purchase
ceiling of Rs.5,000 crore (Rs. 1,000 crore for Navratna
of new items or for replacement, without any monetary
CPSEs). The overall ceiling on such equity investments
ceiling.
and mergers and acquisitions in all projects put together
will not exceed 30% of the net worth of the concerned 2.3.2 Technology Joint Ventures and Strategic
CPSE. In addition, the Boards of Maharatna CPSEs have Alliances: - The Navratna CPSEs have the powers
powers to create below Board level posts upto E-9 level. to enter into technology joint ventures or strategic
alliances and obtain by purchase or other arrangements,
1.3.2 The delegated powers to establish financial joint
technology and know-how.
ventures and subsidiary entities would be exercised by
the Board of Maharatna CPSEs as per the prescribed 2.3.3 Organization Restructuring: - The Navratna
procedure. CPSEs have the powers to effect organizational
restructuring including establishment of profit centres,
2. Navratna Scheme:
opening of offices in India and abroad, creating new
2.1 Eligibility criteria: The CPSEs which are activity centres, etc.
Miniratna I, Schedule ‘A’ and have obtained ‘excellent’ 2.3.4 Human Resources Management: - The
or ‘very good’ MOU rating in three of the last five years Navratna CPSEs have been empowered to create posts
319Annual Report 2025-2026
up to E-6 level and wind up all posts up to non-Board level such Navratna CPSEs will be required to seek Government
Directors and make all appointments up to this level. The approval before exiting from their subsidiaries.
Boards of these CPSEs have further been empowered to
effect internal transfers and re-designation of posts. The 2.3.9 Tours abroad of functional Directors: - The
Board of Directors of Navratna CPSEs have the power to Chief Executive of Navratna CPSEs have been delegated
further delegate the powers relating to Human Resource powers to approve business tours abroad of functional
Management (appointments, transfer, posting, etc.) of directors up to 5 days’ duration (other than study tours,
below Board level executives to sub-committees of the seminars, etc.) in emergency under intimation to the
Board or to executives of the CPSE, as may be decided Secretary of the administrative Ministry.
by the Board of the CPSE.
2.3.10 Exercise of delegated Navratna powers is
2.3.5 Resource Mobilization: - These CPSEs have contingent on certain functionalities.
been empowered to raise debt from the domestic capital
3. Miniratna Scheme:
markets and for borrowings from international market,
subject to condition that approval of RBI/Department of 3.1 Eligibility criteria
Economic Affairs, as may be required, should be obtained
(i) Category-I CPSEs should have made profit in
through the administrative Ministry.
the last three years continuously, the pre-tax
2.3.6 Joint ventures and Subsidiaries: - profit should have been Rs.30 crores or more in
at least one of the three years and should have
(a) The Navratna CPSEs have been delegated
a positive net worth.
powers to establish financial joint ventures and
wholly owned subsidiaries in India or abroad with (ii) Category-II CPSEs should have made profit
the stipulation that the equity investment of the for the last three years continuously and should
CPSE should be limited to the following: - have a positive net worth. These CPSEs shall
be eligible for the enhanced delegated powers
i. Rs. 1000 crore in any one project,
provided they have not defaulted in the repayment
ii. 15% of the net worth of the CPSE in one
of loans/interest payment on any loans due to the
project,
Government.
iii. 30% of the net worth of the CPSE in all joint
(iii) These public sector enterprises shall not depend
ventures/ subsidiaries put together.
upon budgetary support or Government
(b) The delegated powers to establish financial
guarantees.
joint ventures and subsidiary entities would be
(iv) The Boards of these CPSEs should be restructured
exercised by the Board of Navratna CPSEs as
by inducting at least three non-official Directors
per the prescribed procedure
as the first step before the exercise of enhanced
2.3.7 Mergers and acquisitions: - The Navratna delegation of authority.
CPSEs have been delegated powers for mergers and
(v) The administrative Ministry concerned shall
acquisitions subject to the conditions that (i) it should be
decide whether a Public Sector Enterprise fulfilled
as per the growth plan and in the core area of functioning
the requirements of a Category-I/Category-
of the CPSE, (ii) conditions/limits would be as in the case
II company before the exercise of enhanced
of establishing joint ventures/subsidiaries, and (iii) the
powers.
Cabinet Committee on Economic Affairs would be kept
informed in case of investments abroad. Further, the
3.2 Procedure for grant of Miniratna status: Grant
powers relating to Mergers and Acquisitions are to be
of Miniratna status to a particular CPSE is done by
exercised in such a manner that it should not lead to any
concerned Administrative Ministry/Department.
change in the public sector character of the concerned
CPSEs. 3.3 Powers Delegated
2.3.8 Creation/Disinvestment in subsidiaries:- The 3.3.1 Capital Expenditure
Navratna CPSEs have powers to transfer assets, float
a. For CPSEs in category I: The power to
fresh equity and divest shareholding in subsidiaries
incur capital expenditure on new projects,
subject to the condition that the delegation will be in
modernization, purchase of equipment, etc.,
respect of subsidiaries set up by the holding company
without Government approval upto Rs. 500 crore
under the powers delegated to the Navratna CPSEs and
or equal to net worth, whichever is less.
further to the proviso that the public sector character of
the concerned CPSE (including subsidiary) would not be b. For CPSEs in category II: The power to incur capital
changed without prior approval of the Government and expenditure on new projects, modernization,
320Department of Public Enterprises VI
purchase of equipment, etc., without Government 3.3.4 Scheme for HRD: - To structure and implement
approval upto Rs. 250 crore or equal to 50% of schemes relating to personnel and human resource
the Net worth, whichever is less. management, training, voluntary or compulsory retirement
schemes, etc. The Board of Directors of these CPSEs
3.3.2 Joint ventures and subsidiaries:
have the power to further delegate the powers relating to
(a) Category I CPSEs: To establish joint ventures and
Human Resource Management (appointments, transfer,
subsidiaries in India with the stipulation that the
posting, etc.) of below Board level executives to sub-
equity investment of the CPSE in any one project
committees of the Board or to executives of the CPSE,
should be limited to 15% of the networth of the
as may be decided by the Board of the CPSE.
CPSE or Rs. 500 crore, whichever is less. The
overall ceiling on such investment in all projects 3.3.5 Tour abroad of functional Directors: - The
put together is 30% of the networth of the CPSE. Chief Executive of these CPSEs have the power to
approve business tours abroad of functional directors
(b) Category II CPSEs: To establish joint ventures
up to 5 days’ duration (other than study tours, seminars,
and subsidiaries in India with the stipulation that
etc.) in emergency, under intimation to the Secretary of
the equity investment of the CPSE in any one
the administrative Ministry.
project should be 15% of the networth of the
CPSE or Rs. 250 crore, whichever is less. The 3.3.6 Technology Joint Ventures and Strategic
overall ceiling on such investment in all projects Alliances: - To enter into technology joint ventures,
put together is 30% of the networth of the CPSE. strategic alliances and to obtain technology and know-
(c) The delegated powers to establish financial how by purchase or other arrangements, subject to
joint ventures and subsidiary entities would be Government guidelines as may be issued from time to
exercised by the Board of Miniratna CPSEs as time.
per the prescribed procedure.
3.3.7 Creation/Disinvestment in subsidiaries :- To
3.3.3 Mergers and acquisitions: - The Board of transfer assets, float fresh equity and divest shareholding
Directors of these CPSEs have the powers for mergers in subsidiaries subject to the condition that the delegation
will be in respect of subsidiaries set up by the holding
and acquisitions, subject to the conditions that (a) it
company under the powers delegated to the Miniratna
should be as per the growth plan and in the core area of
CPSEs and further to the proviso that the public sector
functioning of the CPSE, (b) conditions/limits would be
character of the concerned CPSE (including subsidiary)
as in the case of establishing joint ventures/subsidiaries,
would not be changed without prior approval of the
and (c) the Cabinet Committee on Economic Affairs would
Government and such Miniratna CPSEs will be required
be kept informed in case of investments abroad. Further,
to seek Government approval before exiting from their
the powers relating to Mergers and Acquisitions are to be
subsidiaries.
exercised in such a manner that it should not lead to any
change in the public sector character of the concerned 3.3.8 Exercise of delegated Miniratna powers is
CPSEs. contingent on certain functionalities.
321Annual Report 2025-2026
Annexure-5
List of Maharatna, Navratna & Miniratna CPSEs Maharatna CPSEs
Maharatna CPSEs
21. Railtel Corporation of India Limited
1. Bharat Heavy Electricals Limited
22. Solar Energy Corporation of India (SECI) Ltd.
2. Bharat Petroleum Corporation Limited
23. NHPC Limited
3. Coal India Limited
24. SJVN Limited
4. GAIL India Limited
25. Indian Railway Catering & Tourism Corporation
5. Hindustan Petroleum Corporation Limited Limited
6. Indian Oil Corporation Limited 26. Indian Railway Finance Corporation Limited
7. NTPC Limited 27. Numaligarh Refinery Ltd. (NRL)
8. Oil & Natural Gas Corporation Limited,
Miniratna I CPSEs
9. Power Finance Corporation
1. Airports Authority of India
10. Power Grid Corporation of India Limited
2. Antrix Corporation Limited
11. Steel Authority of India Limited
3. Armoured Vehicles Nigam Limited
12. Rural Electrification Corporation Limited
4. Balmer Lawrie & Co. Limited
13. Oil India Ltd
5. Bharat Coking Coal Limited
14. Hindustan Aeronautics Limited
6. Bharat Dynamics Limited
Navratna CPSEs 7. BEML Limited
1. Bharat Electronics Limited 8. Bharat Sanchar Nigam Limited
2. Container Corporation of India Limited 9. Braithwaite & Company Limited
3. Engineers India Limited 10. Bridge & Roof Company (India) Limited
4. Mahanagar Telephone Nigam Limited 11. Central Coalfields Limited
5. National Aluminium Company Limited
12. Central Electronics Limited
6. National Buildings Construction Corporation
13. Central Mine Planning & Design Institute Limited
Limited
14. Chennai Petroleum Corporation Limited
7. Neyveli Lignite Corporation Limited
15. Cochin Shipyard Limited
8. NMDC Limited
16. Cotton Corporation of India Ltd.
9. Rashtriya Ispat Nigam Limited
17. EDCIL (India) Limited
10. Shipping Corporation of India Limited
18. Electronic Corporation of India Limited (ECIL)
11. Rail Vikas Nigam Limited
19. Garden Reach Shipbuilders & Engineers Limited
12. ONGC Videsh Ltd
20. Grid Controller of India Limited (GRID-INDIA)
13. Rashtriya Chemicals & Fertilizers Limited
21. Goa Shipyard Limited
14. IRCON
22. Hindustan Copper Limited
15. RITES
23. Hindustan Steelworks Construction Limited
16. National Fertilizers Limited
24. Hindustan Shipyard Limited
17. Central Warehousing Corporation
25. Hindustan Organic Chemicals Ltd.
18. Housing & Urban Development Corporation
Limited 26. HLL Lifecare Limited
19. Indian Renewable Energy Development Agency 27. HSCC (India) Limited
Limited 28. India Optel Limited
20. Mazagon Dock Shipbuilders Limited 29. India Tourism Development Corporation Limited
322Department of Public Enterprises VI
30. Indian Rare Earths Limited 50. South Eastern Coalfields Limited
31. India Trade Promotion Organization
51. Telecommunications Consultants India Limited
32. KIOCL Limited
52. THDC India Limited
33. Mahanadi Coalfields Limited
53. Western Coalfields Limited
34. MOIL Limited
54. WAPCOS Limited
35. Mangalore Refinery & Petrochemical Limited
36. Mineral Exploration Corporation Limited Miniratna II CPSEs
37. Mishra Dhatu Nigam Limited
1. Artificial Limbs Manufacturing Corporation of
38. MMTC Limited
India
39. MSTC Limited
2. Broadcast Engineering Consultants India Limited
40. Munitions India Limited
3. Engineering Projects (India) Limited
41. National Projects Construction Corporation
Limited 4. FCI Aravali Gypsum & Minerals India Limited
42. National Small Industries Corporation Limited
5. Ferro Scrap Nigam Limited
43. National Seeds Corporation
6. HMT (International) Limited
44. Northern Coalfields Limited
45. North Eastern Electric Power Corporation Limited 7. Indian Medicines & Pharmaceuticals Corporation
46. Numaligarh Refinery Limited Limited
47. Pawan Hans Helicopters Limited 8. MECON Limited
48. Projects & Development India Limited
9. National Film Development Corporation Limited
49. Security Printing and Minting Corporation of India
Limited 10. Rajasthan Electronics & Instruments Limited
323Annual Report 2025-2026
Annexure-6
Schedule-wise List of Central Public Sector Enterprises
Schedule - A (77) 32. Indian Railway Catering & Tourism Corporation
Limited
1. Airports Authority of India
33. Karmyogi Bharat
2. Advanced Weapons and Equipment India Limited
34. Konkan Railway Corporation Limited
3. Armoured Vehicles Nigam Limited
35. KIOCL Limited
4. BEML Limited
36. Mahanagar Telephone Nigam Limited
5. Bharat Electronics Limited
37. Mangalore Refinery & Petrochemicals Limited
6. Bharat Heavy Electricals Limited
38. Mazagon Dock Shipbuilders Limited
7. Bharat Petroleum Corporation Limited
39. MECON Limited
8. Bharat Sanchar Nigam Limited
40. MMTC Limited
9. Central Warehousing Corporation
41. MOIL Limited
10. Chennai Petroleum Corporation Limited
42. Mumbai Railway Vikas Corporation Limited
11. Coal India Limited
43. Munitions India Limited
12. Cochin Ship Yard Ltd
44. National Aluminium Company Limited
13. Container Corporation of India Limited
45. NBCC (India) Limited
14. Dedicated Freight Corridor Corporation of India
Limited 46. National Fertilizers Limited
15. Electronics Corporation of India Limited 47. NewSpace India Limited
16. Engineers India Limited 48. NHPC Limited
17. Fertilizers & Chemicals (Travancore) Limited 49. National Highways and Infrastructure
Development Corporation Limited (NHIDCL)
18. Food Corporation of India
50. NMDC Limited
19. GAIL (India) Limited
51. National Textiles Corporation Limited
20. Garden Reach Shipbuilders & Engineers Limited
52. NTPC Limited
21. Heavy Engineering Corporation Limited
53. NTPC Green Energy Limited (NGEL)
22. Hindustan Aeronautics Limited
54. NLC India Limited
23. Hindustan Copper Limited
55. North Eastern Electric Power Corporation Limited
24. Hindustan Petroleum Corporation Limited
56. Numaligarh Refinery Limited
25. HMT Limited
57. Oil & Natural Gas Corporation Limited
26. Housing & Urban Development Corporation
Limited 58. Oil India Limited
27. I T I Limited 59. ONGC Videsh Limited
28. Indian Oil Corporation Limited 60. Power Finance Corporation Limited
29. IRCON International Limited 61. Power Grid Corporation of India Limited
30. Indian Railway Finance Corporation Limited 62. Power System Operation Corporation Limited
31. Indian Renewable Energy Development 63. RITES Limited
Corporation Limited.
64. RailTel Corporation of India Limited
324Department of Public Enterprises VI
65. Rail Vikas Nigam Limited 26. Hindustan Cables Limited
66. Rashtriya Chemicals and Fertilizers Limited 27. Hindustan Fertilizer Corporation Limited
67. Rashtriya Ispat Nigam Limited 28. HLL Lifecare Limited
68. Rural Electrification Corporation Limited 29. Hindustan Newsprints Limited
69. SJVN Limited 30. Hindustan Organic Chemicals Limited
70. Security Printing & Minting Corporation of India 31. Hindustan Shipyard Limited
Limited 32. Hindustan Steelworks Construction Company
Limited
71. Shipping Corporation of India Limited
33. HMT (International) Limited
72. Solar Energy Corporation of India Limited
34. HMT Machine Tools Limited
73. State Trading Corporation of India Limited
35. HMT Watches Limited
74. Steel Authority of India Limited
36. India Optel Limited
75. Telecommunications Consultants (India) Limited
37. India Tourism Development Corporation Limited
76. THDC India Limited
38. India Trade Promotion Organization
77. Yantra India Limited
39. Indian Drugs & Pharmaceuticals Limited
Schedule - B (64)
40. Indian Rare Earths Limited
1. Andrew Yule & Company Limited
41. Instrumentation Limited
2. Air India Assets Holding Company Limited
42. M S T C Limited .
3. Balmer Lawrie & Company Limited
43. Madras Fertilizers Limited
4. Bharat Coking Coal Limited
44. Mahanadi Coalfields Limited
5. Bharat Dynamics Limited
45. Mineral Exploration Corporation Limited
6. Bharat Gas Resources Limited
46. Mishra Dhatu Nigam Limited
7. Bharat Petro Resources Limited
47. National Films Development Corporation
8. Brahmaputa Crackers & Polymers Limited
48. National Handloom Development Corporation
9. Brahmaputra Valley Fertilizer Corporation Limited
Limited
10. Biotechnology Industry Research Assistance
49. National Jute Manufacturers Corporation Limited
Council
50. National Projects Construction Corporation
11. Braithwaite & Company Limited
Limited
12. Bridge & Roof Company (India) Limited
51. National Seeds Corporation Limited
13. British India Corporation Limited
52. National Small Industries Corporation Limited
14. Burn Standard Company Limited
53. Northern Coalfields Limited
15. Cement Corporation of India Limited
54. Orissa Mineral Development Company Limited
16. Central Coalfields Limited
55. PEC Limited
17. Central Electronics Limited
56. Pawan Hans Limited
18. Central Mine Planning & Design Institute Limited
57. Projects & Development India Limited
19. Cotton Corporation of India Limited
58. Scooters India Limited
20. Eastern Coalfields Limited
59. South Eastern Coalfields Limited
21. Engineering Projects (India) Limited
60. SFCL
22. Fertilizer Corporation of India Limited
61. Troop Comforts Limited
23. Gliders India Limited
62. Uranium Corporation of India Limited
24. Goa Shipyard Limited
63. W A P C O S Limited
25. Handicrafts & Handlooms Export Corporation
Limited 64. Western Coalfields Limited
325Annual Report 2025-2026
Schedule- C (46) 29. Karnataka Antibiotics & Pharmaceuticals Ltd
1. Andaman & Nicobar Islands Forest & Plantation 30. Nagaland Pulp & Paper Company Limited
Development Corporation Limited
31. National Backward Classes Finance &
Development Corporation.
2. Artificial Limbs Mfg. Corporation of India
32. National Handicapped Finance & Development
3. Braithwaite Burn & Jessop Construction Company
Corporation.
Limited
33. National Minorities Development & Finance
4. Bengal Chemicals & Pharmaceuticals Limited
Corporation
5. BEML Land Assets Limited (BLAL)
34. National Research Development Corporation
6. BHEL Electric Machines Limited
of India.
7. Bharat Wagon & Engineering Company Limited
35. National Safai Karamcharis Finance &
8. The Bisra Stone Lime Company Limited Development Corporation.
9. Broadcast Engineering Consultants India Limited 36. National Scheduled Castes Finance &
10. Central Cottage Industries Corporation of India Development Corporation
Limited 37. National Scheduled Tribes Finance &
11. Central Inland Water Transport Corporation Development Corporation
Limited 38. NEPA Limited
12. Central Railside Warehouse Company Limited 39. North Eastern Handicrafts & Handloom
13. Certification Engineers International Limited Development Corporation Limited
14. Delhi Police Housing Corporation 40. North Eastern Regional Agricultural Marketing
Corporation Limited
15. EdCIL (India) Limited
41. Rajasthan Electronics & Instruments Limited
16. FCI Aravali Gypsum & Minerals (India) Limited
42. Richardson & Cruddas (1972) Limited
17. Ferro Scrap Nigam Limited
43. Rohini Heliport Limited (RHL)
18. Hindustan Antibiotics Limited
44. STCL Limited
19. HIL (India) Limited
45. SCILAL
20. Hindustan Photo Films Manufacturing Company
Limited 46. Tungabhadra Steel Products Limited
21. Hindustan Prefab Limited Schedule - D (06)
22. Hindustan Salts Limited 1. Birds Jute & Exports Limited
23. HMT Bearings Limited 2. Hindustan Fluorocarbons Limited
24. HMT Chinar Watches Limited
3. Indian Medicines Pharmaceutical Corporation
25. Hooghly Dock and Port Engineers Limite Limited
26. HSCC (India) Limited 4. Orissa Drugs & Chemicals Limited
27. Hotel Corporation of India Limited
5. Rajasthan Drugs & Pharmaceuticals Limited
28. The Jute Corporation of India Limited
6. Bel Optronics Ltd
326Department of Public Enterprises VI
Annexure-7
Statement of Scheme-wise Expenditure
Department of Public Enterprises, Demand No. 33, 2025-26
Department of Public Enterprises (Grant No. 33)
(Rs. in Lakh)
Sl. No. Heads of Account Scheme
33 - Department of Public Enterprises 2025-26
BE RE Exp. Upto 14.11.2025
2025-26 2025-26 2025-26
2852 Industries (Major Head)
CRR Scheme
1 Professional & Special Services (28.00.28) 100.00 100.00 3.54
2 Grants - in- Aid (28.00.31) 1.00 1.00 0.00
3 CRR Scheme NER (01.00.31) 20.00 20.00 0.00
Total CRR 121.00 121.00 121.00 3.54
RDC Scheme
1 Domestic Travel Expenses (27.00.11) 5.00 5.00 0
2 Foreign Travel Expenses (27.00.12) 5.00 5.00 0
3 Printing and Publications (27.00.16) 5.00 5.00 0
4 Professional & Special Services (27.00.28) 448.00 448.00 442.41
5 Grants - in- Aid (27.00.31) 1.00 1.00 47
6 Contribution ICPE (27.00.32) 0.00 0.00 0
RDC Scheme NER (02.00.31) 64.00 64.00 0
Total RDC 528.00 528.00 489.41
GRAND TOTAL 649.00 649.00 492.95
327Annual Report 2025-2026
Annexure-8
Guidelines For Implementation of New Public Sector Enterprises (PSE)
Policy for CPSEs In Non-Strategic Sector
1.1 The Government notified the new Public Departments, NITI Aayog, Department of Expenditure
Sector Enterprise (PSE) Policy on 4th February, 2021 and DIPAM.
for Atmanirbhar Bharat. The new PSE Policy envisages
classification of CPSEs into Strategic and Non-Strategic 2.2 Preparation of CCEA Note seeking in-principle:
Sectors and exempts certain CPSEs such as that setup After identification of CPSEs for closure or privatisation
as not for profit companies under the Companies Act, under the Non-Strategic sectors, DPE will prepare a
2013 or those supporting vulnerable and weaker sections Note for in-principle approval of the CCEA regarding the
of society, from the scope of the Policy. The Strategic CPSEs identified for closure and/ or for disinvestment
Sectors as per the policy are as under: in Non-Strategic sectors. Such note(s) for in principle
approval of CCEA will preferably be prepared separately
i) Atomic Energy, Space, and Defence for individual sectors falling under the category of “Non-
Strategic Sector” of new PSE policy. The CPSEs which
ii) Transport and Telecommunication
are approved in principle by CCEA for disinvestment will
iii) Power, Petroleum, Coal, and Other Minerals be communicated to DIPAM for taking necessary action
as per its extant procedure. Closure of CPSEs will be done
iv) Banking, Insurance, and Financial Services
as per the process outlined below at Para 3.
1.2 CPSEs in the Strategic Sector/ Non- Strategic
3. Revised closure process of CPSEs:
Sector are to be taken up for privatisation, merger,
subsidiarisation with another CPSE or for closure. Only 3.1 Once, the in-principal decision for closure of a CPSE
a bare minimum presence of CPSEs in the aforesaid is obtained from CCEA, an IMC will be constituted by DPE
Strategic Sector is to be maintained. to drive the process of the closure of CPSEs.
1.3 The Department of Public Enterprises (DPE) 3.1.1 The Ministry/Department concerned will proceed
has been brought under the Ministry of Finance vide to work out the details of the closure. This would inter-
notification dated 6th July, 2021 of Cabinet Secretariat alia include estimation of budgetary support required for
and thereafter, Finance Secretary vide order dated 17th financing the closure of the CPSE, the time-lines and
August, 2021 demarked certain responsibilities between phasing of release of funds from the Central Government
DIPAM and DPE. DPE has been entrusted with the and updating of records of the movable and immovable
responsibility to identify CPSEs for closure or privatisation assets of the CPSE etc. The brief details of preparatory
in Non-Strategic sector in consultation with administrative activities are enumerated below:
ministries/departments and to take in principle approval
a. Statutory dues: The statutory dues/ liabilities
from CCEA in respect of such identified CPSEs. Besides,
towards revenues, taxes, cesses and rates due
DPE has also been entrusted with the task of setting up
to Central Government or State Government or
a Special Purpose Vehicle (SPV) for asset monetisation
to local authorities will be worked out by CPSE
once the SPV is approved by the Cabinet. DPE is also
under the supervision of its Administrative
required to drive the closure process for CPSEs approved
Ministry/ Department.
for closure, on the lines of disinvestment process being
run by DIPAM. b. Serving Closure Notice: CPSE to give a general
notice to employees and other stakeholders
1.4 Accordingly, the following guidelines are intimating about the intention of closure and also
prescribed. The closure guidelines as enumerated below write to the Ministry of Labour and Employment
will supersede all the closure guidelines issued earlier. regarding the same, as applicable under
Industrial Relations Code, 2020. The CPSE with
2. Implementation of new PSE policy by DPE: the approval of the Administrative Ministry should
also notify the VRS Scheme
2.1 Identification of CPSEs of Non-Strategic
c. Dues of employees: Funds required for
Sectors for Closure and Disinvestment: Under the New
implementing VRS/VSS/ payment of wages/
Public Sector Policy, DPE will identify the CPSEs either
salaries and statutory dues in respect of the
for closure or privatization in the Non-Strategic sectors in
employees till the time of their release by way of
consultation with the concerned Administrative Ministries/
VRS/ VSS/ retrenchment will be worked out.
328Department of Public Enterprises VI
d. Liabilities towards Secured Creditors the right to decide which of the requirements of funds it
Estimation of the amount to be paid back to the will permit out of budgetary support.
Secured Creditors based on the offers from them
3.1.3 Updating of land records of immovable assets:
for settlement at minimum value. Administrative
Updating of land records such as title deed, lease hold
Ministry/Department may critically examine the land, freehold land, conditions of lease, remaining period
best possible settlement including schedule of of lease, current land use, FAR and other rights relating
payment, waiver of interest and penalties with to use of land, whether land compensation (partly/fully)
secured creditors. paid by the CPSEs/ Central Government at the time
of acquisition, amount of compensation paid, status of
e. Dues payable to the Central Government: The
possession of land, encroachments, if any, geo-mapping
dues payable to the Central Government availed
etc. will be done.
in the form of loans from time to time, segregated
into the principal outstanding amount and the 3.1.4 Once the preparatory activities are completed
interest thereon shall be worked out. by the administrative Ministry/Department, a Draft Note
for Closure of the CPSE will be prepared by DPE based
f. MAT liability: In case the proposal involves
on the inputs of preparatory activities and in consultation
waiver of outstanding GOI loans (and accrued
with the concerned Administrative Ministry/Department for
interest thereon), the MAT liability on the same
closure of the CPSE on case-to-case basis. The same
should also be worked out.
will be placed before the IMC which after scrutiny will vet
g. Other liabilities: All other liabilities including any
the Note. Thereafter, the approval of the Hon’ble Finance
to the unsecured creditors should be worked out.
Minister (FM) will be taken.
h. Estimation of movable assets: Updating
3.1.5 If the Director(s) of the CPSE(s) fails to co-
details of movable assets including plant(s) &
operate, the Administrative Ministry/ Department can take
machineries and verification of inventory from an
a view on removing the Functional Directors including the
independent third party e.g., a firm of Chartered
CMD and give additional charge of the CMD to the Joint
Accountants/Cost Accountants. Besides, Book
Secretary concerned and charge of Functional Directors
Value of the movable assets, the current
to other senior officers in the administrative Ministry/
estimated market value and realisable value from
Department as per extant guidelines in this regard. This
their sale will be worked out. Wherever movable
assets are on lease, negotiation with the lessor information regarding removal of the Functional Directors
will be done by CPSE to ascertain whether including the CMD will be communicated to the PESB.
lessor would take it back at market price or would
3.2 Disposal of immovable assets
like it to be auctioned. Ascertaining whether
movable assets are to be utilised by its holding The process of closure of a CPSE and disposal
company (in case of subsidiary), if any or by of its immovable assets will be completely delinked. On
the administrative Ministry/ Department. Market
approval of Closure Note, the Administrative Ministry/
value of brand name, goodwill, trademarks, etc.
Department/CPSE shall proceed simultaneously but
of the CPSE under closure may also be worked
separately for alienation of immovable properties from
out. In case, market value cannot be determined,
the same shall be transferred to the concerned its books.
administrative Ministry/Department of the CPSE.
3.2.1 The immovable assets will be alienated from the
i. Estimation of receivables: Ascertaining of trade CPSE in the manner as prescribed below:
receivables, securities, loans and advances, etc.
(a) Return of leasehold land to the States: All
3.1.2 Estimation of budgetary support required kinds of leasehold land of the CPSE will be
for closure: Based on the exercise done as per para
returned back to the State Government without
3.1.1, an estimate will be made of requirement of funds
insisting on any compensation (if due as per lease
for financing the closure of the CPSE. The CPSE’s own
agreement).
resources, including amount to be realised from sale of
movable assets, which may be available for settlement
(b) Transfer of freehold land to Special Purpose
of liabilities during the course of closure shall be worked
Vehicle (SPV) will be as per the procedure laid
out too. Thereafter, the requirement of budgetary support
from the Central Government shall be worked out. It is down for the operation of the SPV (to be set up
however, clarified that the Central Government reserves
in DPE).
329Annual Report 2025-2026
3.2.2 Interim arrangement through Land Management (c) The leasehold movable assets may be returned
Agency (LMA): Pending setting up of SPV, the closure to the lessor at latter’s option.
cases wherein a Land Management Agency (LMA) such
(d) In case, any of the movable assets are
as NBCC has earlier been engaged for disposal of land
required by its holding company or by the
as per the DPE closure guidelines dated 14.06.2018, LMA
administrative Ministry/ Department, the same
will continue to manage the land and can dispose off the
may be transferred to them.
same to any appropriate agency at best discovered price.
The Forward Auction Platform of GeM or MSTC can also (e) The CPSE in consultation with the administrative
be availed by LMA or Administrative Ministry directly for Ministry/ Department, if necessarily required, may
disposal of immovable assets. dispose of factory building structure along with
disposal of movable assets.
3.2.3 The Secretary of the Administrative Ministry/
Department will monitor the progress of alienation of (f) If the CPSE is not able to dispose of movable
immovable assets from the CPSE. assets within the stipulated time-frame, it should
be brought to notice of the Administrative
3.3 Implementation of VRS/VSS:
Ministry/ Department by the CPSE. Thereafter,
(a) The Administrative Ministry/ Department through
the Administrative Ministry/ Department shall
Board of CPSE will settle wages/salaries of
redress the matter within 15 days and shall
employees and statutory dues and complete the
take a decision on settlement of the disposal of
VRS/VSS process and payment of compensation
movable assets.
to non-VRS optees as per law.
3.6 Budgetary support from D/o Expenditure:
(b) The CPSE staff shall be assigned specific tasks
during implementation of VRS/VSS so that all Based on the detailed liabilities to be settled
the groundwork is completed within the above- as per the Closure Note, DPE will make a request for
mentioned period and there is no requirement of budgetary support to DoE in respect of the liabilities to
be settled. However, the right to decide as to which of the
retaining the staff during subsequent process of
requirements of funds is to be permitted out of budgetary
closure.
support would vest with the Central Government.
3.4 Settlement of liabilities
4. Filing of application before Registrar of
The payment of statutory dues/ liabilities Companies (RoC):
towards revenues, taxes, cesses and rates due to
Once the requisite formalities related to settlement
Central Government or State Government or to the local
of all liabilities and assets are completed, the Board of
authorities to be completed first.
Directors of the CPSE shall take necessary steps for filing
Administrative Ministry/Department will negotiate the application for removal of name from the Register of
with the Secured Creditors to settle their dues at the Companies as given below:
minimum value as One Time Settlement (OTS).
Apply under Section 248 of the Companies Act,
The order of priority of settlement of other 2013 to the RoC for removal of the name of the CPSE
liabilities will be in the priority of distribution as mentioned from the Register of Companies with the new revised
in Section 53 of Insolvency & Bankruptcy Code 2016. form STK-3A issued by Ministry of Corporate Affairs
(MCA) vide notification dated 29th June, 2020 along with
3.5 Disposal of movable assets:
other forms (STK-2&4) prescribed under the Companies
(a) The CPSE shall carry out the processes of (Removal of Names of Companies from the Register
disposal of movable assets including plant & of Companies) Rules, 2016 by MCA. This amendment
machinery in a transparent manner through an enables the authorized representative (Under Secretary
Auctioning Agency (such as MSTC) appointed or its equivalent) of the concerned administrative Ministry/
/‘Forward Auction’ Platform available on GeM by Department to furnish indemnity bond on behalf of the
administrative Ministry/Government of India (Owner of
the CPSE under the supervision of administrative
, CPSE) for any future liability instead of by individual
Ministry/ Department.
Directors of the CPSE.
(b) Intangible assets like brand name, goodwill,
trademarks, intellectual property, etc. of the The Administrative Ministries/Departments and
CPSE under closure shall be transferred to the their CPSEs filing closure application before the Registrar
concerned administrative Ministry/Department of of Companies will also take a note of the MCA Circular
the CPSE for disposing of separately. No. 1/2020 dated 1st July, 2020 issued to all the Registrars
330Department of Public Enterprises VI
of Companies to enable processing of applications of In addition, in respect of the listed CPSEs, the SEBI
CPSEs having pending litigations relating to service Delisting Regulations, 2009 and regulatory requirement(s)
matters, VRS/VSS of employees, so that the same is not will be complied with under the supervision of IMC before
the ground for rejection of such closure applications.
filing for removal of company’s name from the Register
of Companies.
5. Policy support:
7. Closure of subsidiaries/units of CPSEs:
For any policy support or clarification on any
issue for completing the closure process, as required
The process of closure of subsidiaries/JVs/units
by the administrative Ministry/Department, the same will
of CPSEs shall be carried out by the Board of Directors
be provided by the IMC. While taking the “in-principle”
of the Holding CPSE(s) in accordance with above
approval of CCEA, the approval will also be sought for
guidelines.
empowering the Hon’ble Finance Minister to approve the
cases of any deviation with respect to the closure process 8. Process for on-going Cases:
of non-strategic sector CPSEs from the decision of CCEA.
Cases in which the Administrative Ministry/
The concerned administrative Ministry/Department shall
Department has obtained the CCEA/ Cabinet approval
refer the proposal for clarification/policy support to DPE
for closure, the concerned administrative Ministry/
for placing before the IMC. The recommendations of IMC
Department will review and seek the budgetary support
shall be thereafter referred by DPE to Finance Minister for
from D/o Expenditure through Financial Adviser (FA)
seeking approval. DPE will function as the secretariat for
within 15 days of the issue of these guidelines to complete
processing the policy matters to be referred to Finance
the closure process as per revised mechanism. However,
Minister.
the right to decide as to which of the requirements of
6. Special cases: funds is to be permitted out of budgetary support would
vest with the Central Government.
Closure u/s 248 of CA 2013 is recommended as
primary mode under the revised guidelines. In complex 9. Time-lines: The entire process of closure of CPSE
cases especially involving exorbitantly high liabilities, IBC shall be completed within the Timeframe mentioned in
2016 route may be followed while providing adequate Annex-I.
justification in the note for CCEA approval by DPE. The
process of filing application under IBC 2016 shall be done 10. The finance minister will be the competent authority
within 3 months of receipt of Minutes of CCEA approval for granting approval to make any changes in these
by concerned CPSE Board & its Administrative Ministry. guidelines.
331Annual Report 2025-2026
Annex-I to Annexure-8
Timelines of activities for closure of CPSEs
Sl. No. Milestones/ Activities Time-Lines
a. In principle approval of closure / disinvestment of CPSEs in a Non-Strategic
Sector by the Cabinet/ CCEA.
1 Preparatory date (T )
b. Setting up of IMC for the Sector comprising Secretary, DPE as Chairman,
0
representatives of concerned Administrative Ministry(ies), DIPAM, NITI Aayog
and co-opted members, if any
Preparation of Draft Closure Note for each CPSE by IMC after ascertaining
statutory dues, liabilities such as taxes, cess, MAT, dues to secured and
2 unsecured creditors, funds required for VRS / VSS, wages due to employees till T + 3 months
0
the time they are released through VRS / VSS, receivables, value of movable
and immovable assets, etc
Vetting of Draft Closure Note by IMC and forwarding the same for approval
3 T + 5 months
of FM on case-to-case basis. 0
4 Return of leasehold land to the State government
5 Transfer of freehold land to Special Purpose Vehicle (SPV)
6 Intimation to the Ministry of Labour and Employment in respect of closure
7 Request for budgetary support from Department of Expenditure.
8 Release of budgetary grants by Department of Expenditure
9 Transfer of assets to Holding company/ administrative Ministry/ Department
T + 7 months
0
VRS / VSS to employees and settlement of wages/salaries of employees and
10 statutory dues (In case employees not opting for VSR / VSS, retrenchment
of employees)
Settlement of statutory dues/ liabilities towards revenues, taxes etc. payable to
11
State Government / Central Government / Municipal Bodies
12 Payment of secured creditors as one-time settlement
13 Disposal of movable assets
T + 7 months and 45
14 Application to Registrar of Companies for removal of name of CPSE 0
days.
332Department of Public Enterprises VI
Defi nition Engineering Projects (India) Ltd. (EPIL) or
a public agency under Ministry of Housing
i. Preparatory Date (T ) shall be the date on which
0 and Urban Affairs (MoHUA) which has
‘in principle’ approval of closure of CPSE has
been appointed and have the experience of
been taken by the CCEA.
management, development and disposal/
ii. CPSE: Certain statutory corporations and all
monetisation of immovable assets.
Government Companies in which more than
vi. Forward Auction Platform: It is a facility
50% equity or controlling stake is held by the
Central Government are classified as CPSEs. available on GeM for auction of movable and
The Subsidiaries of these Companies in which immovable items in a transparent method.
any CPSE has more than 50% equity are also vii. Auctioning Agency (AA) A CPSE such as
categorised as CPSEs, if registered in India. Metal Scrap Trading Corporation (MSTC),
iii. Inter-Ministerial Committee (IMC): Constituted which can be nominated by the administrative
by DPE and comprising Secretary, DPE as Ministry/ Department/ Board of the CPSE
Chairman and representatives of concerned under closure to dispose of movable and
Administrative Ministry (ies), DIPAM and NITI immovable assets through e-auction in a
Aayog as its members, to drive the closure transparent manner.
process. The IMC can also co-opt any other viii. Book Value: For the purpose of these
member(s). Secretarial assistance to IMC will be
guidelines, it is the carrying value of the assets
provided by DPE.
in the balance sheet of the CPSE.
iv. Special Purpose Vehicle (SPV): 100%
ix. Immovable Asset: Immovable Asset is a
government owned company under the
piece of land/property tied to the land, such
administrative control of DPE to facilitate
as estate, building, premises, etc.
monetization of non-core assets of the Ministries/
Departments and Public Sector Enterprises. x. Movable Assets: Any asset other than
v. Land Management Agency (LMA): It can be Immovable asset like Plant & Machinery,
a CPSE such as NBCC (India) Ltd. (NBCC)/ Furniture, vehicles etc.
333For Public Contact Purposes:
Ministry of Finance
Department of Economic Affairs
5th floor, Kartavya Bhawan -1, New Delhi - 110001
Phone :011-24012911
Website: https://dea.gov.in
Department of Expenditure
6th floor, Kartavya Bhawan -1, New Delhi - 110001
Phone :011-24012124
Website: https://doe.gov.in
Department of Revenue
4th floor, Kartavya Bhawan -1, New Delhi - 110001
Phone :011-24012540, 24012541
Website: https://dor.gov.in
Department of Investment and Public Asset Management
Block 11 & 14, CGO Complex, Lodhi Road, New Delhi - 110003
Phone : 011-24360163
Website: http://www.dipam.gov.in/dipam/home
Department of Financial Services
Jeevan Deep Building, Parliament Street, New Delhi - 110001
Phone : 011-23748721, 23748734
Website : https://www.financialservices.gov.in
Department of Public Enterprises
Block No. 14, C.G.O. Complex, Lodhi Road, New Delhi - 110003
Phone : 011-24362673
Website : https://www.dpe.gov.in