Human Capital Index criticized for methodology and data gaps, prompting the government to disregard its rankings.
The World Bank's Human Capital Index measures expected productivity by age 18 using survival, quality adjusted schooling, and health environment components, but it faces major methodological and data deficiencies-particularly in harmonizing multiple international test scores, dated or regionally limited data for some countries, and reliance on slow moving outcome indicators. Applied to India, the Index understates domestic initiatives transforming human capital; accordingly the Government of India decides to ignore the HCI and continue its national programmes.

Government securities auction: re-issue offered via multiple-price method; non-competitive bids allowed and when-issued trading permitted.
Re-issue auctions for four Central Government stocks will be conducted by the Reserve Bank of India using the multiple price method, subject to an overall notified ceiling and with an option to accept additional subscriptions. Up to five per cent of notified amounts is reserved for eligible individuals and institutions under the Non-Competitive Bidding Facility. Bids must be submitted electronically via the RBI E-Kuber system within prescribed windows for non-competitive and competitive bids. Stocks are eligible for when-issued trading under RBI guidelines.

Monetary policy decision: policy rate maintained to balance inflation targeting and growth support while aligning with government assessment.
Monetary policy decision to maintain the policy repo rate under the Liquidity Adjustment Facility, based on the MPC's assessment of the macroeconomic situation to balance price stability and growth support. The MPC retained the GDP growth projection, revised downwards inflation projections for the remainder of the period, and framed its stance to achieve the consumer price index inflation target within the specified band while supporting economic activity.

Government securities auction: non-competitive bids permitted; allotment at weighted average yield with standard payment and settlement terms.
Re issue auctions for specified Government of India dated securities will be conducted by RBI via electronic multiple price auctions; payment on re issue date includes accrued interest and securities pay interest semi annually and repay at par. A Non competitive Bidding Facility permits eligible investors to submit a single bid through banks or PDs with allotment at the weighted average rate from competitive bidding and pro rata allocation if oversubscribed, with securities credited in SGL/CSGL form and operational rules governing submission, transfer, and service charges.

Monetary Policy Committee meeting scheduled; resolution to be published online at the announced time on the final day.
The Monetary Policy Committee (MPC) will convene from October 3 to 5, 2018 to adopt the Fourth Bi monthly Monetary Policy Statement for 2018 19, and the adopted resolution will be published on the official website at 2:30 pm on October 5, 2018.

Prohibition of market abuse: draft directions bar manipulation and misuse of unpublished price sensitive information.
The draft Directions prohibit market abuse-defined to include market manipulation, benchmark manipulation and misuse of information-and apply to all market participants in instruments regulated by the Bank. They forbid actions that create artificial prices or mislead on supply or demand, manipulation of benchmark or reference rate calculations, and use or dissemination of unpublished price sensitive information for material benefit. Market participants must maintain monitoring and prevention policies, report detected abuse, provide requested data, and may face regulatory sanctions including suspension of market access after a fair opportunity to be heard.

Treasury bill auction schedule set with weekly issuance and retained government flexibility to adjust timing and amounts.
Notification establishes a quarterly Treasury Bills auction calendar with weekly auction dates and specified issuance tranches across 91 day, 182 day and 364 day tenors and an aggregate quarterly total, while preserving the Government and Reserve Bank of India's discretion to modify amounts or timing in response to cash management needs and market conditions, subject to prior notice and the terms of the referenced General Notification.

Government securities issuance calendar provides scheduled dated security auctions with retail reservation and modification flexibility.
An issuance calendar schedules weekly auctions of Government of India dated securities for the second half of fiscal 2018-19 with security wise allocations by maturity buckets; auctions include a non competitive bidding facility reserving a portion for specified retail investors, while the Government, with the Reserve Bank, may modify notified amounts, maturities and instrument types (including floating rate and inflation linked bonds) and may exercise a green shoe option to retain additional subscriptions within the overall notified amount, all subject to the applicable General Notification and market notice.

Electoral Bonds: bearer instruments for political funding with bank-channelled issuance and a strict limited validity period.
The notification sets the Electoral Bond mechanism: eligible purchasers are Indian citizens or entities, and eligible recipient political parties are those registered under the Representation of the People Act with not less than one percent of votes in the last general election. Phase V authorised the State Bank of India to issue and encash bonds through twenty-nine named branches during a specified ten-day window. Bonds are bearer instruments with a limited validity period and will be credited to an eligible party's authorised bank account on the day of deposit, but will not be paid if deposited after expiry.

Government budgetary position shows higher expenditure than receipts; tax revenue and state devolution trends noted.
The consolidated monthly account to August 2018 presents the Union Government's budgetary flows for 2018 19, showing total expenditure dominated by revenue spending-including interest payments and major subsidies-and a capital component. Receipts are categorized into net tax revenue, non tax revenue, and non debt capital receipts (loan recoveries and disinvestment proceeds). The statement also records increased devolution of tax shares to State governments compared with the prior year.

Government securities auction re-issue: multiple-price sale with non-competitive allotment and electronic bidding via central bank platform.
The Government announced re-issue auctions for four government stocks using the multiple price method through the central bank's electronic platform, with a combined notified amount subject to an overall limit and an option to retain additional subscriptions. Up to 5% of each notified amount is reserved for eligible participants under the non-competitive bidding facility. Competitive and non-competitive bids must be submitted electronically within prescribed time windows on the auction date; results and payment are scheduled on specified subsequent dates. The stocks are eligible for when issued trading under existing central bank guidelines.

Preventive vigilance in public sector institutions is the most effective governance tool to reduce lapses and corruption.
Preventive, detective and punitive vigilance are institutional tools shaped by an incentives framework: preventive vigilance reduces discretion and opportunity ex ante; detective vigilance identifies (and sometimes corrects) adverse outcomes with a precision q; punitive vigilance reduces private rewards for misconduct by a factor d. Detective and punitive measures are strategic complements, preventive measures are substitutes for detection/punishment, and where outcomes are outside employee control preventive vigilance is dominant. The RBI organises vigilance to prioritise preventive controls, internal governance, transparency, training, procurement safeguards and integrity pacts.

Government securities auction: price-based re-issues with multiple-price bidding, non-competitive allotment and electronic submission on scheduled dates.
Re-issue auctions for specified Government of India securities will be conducted by the RBI, Mumbai, on September 21, 2018, using the multiple-price auction method; GoI may retain additional subscriptions up to a stated per-security cap subject to an overall notified amount ceiling. Up to 5% of each notified amount is allocable to eligible individuals and institutions under the Non-Competitive Bidding Facility. Competitive and non-competitive bids must be submitted electronically on the RBI E-Kuber system within prescribed time windows, with auction results and a separate payment date. The stocks are eligible for When Issued trading under RBI guidelines.

Bank amalgamation to create a larger public sector bank, enhancing scale, synergies and customer access.
Government initiates Bank amalgamation of Bank of Baroda, Vijaya Bank and Dena Bank to form an enlarged public sector banking entity, leveraging combined networks and subsidiaries to broaden products, improve customer access and realise operational and cost synergies. Cited strengths include elevated provision coverage, improving gross NPA trends and a relatively lower net NPA ratio, a favourable cost to income profile, MSME sector capability, and a capital position above regulatory minimums to facilitate future capital mobilisation.

Banking fraud coordination urges urgent cross agency action and stronger enforcement against fraudulent Letters of Undertaking.
The Reserve Bank established a fraud monitoring cell to ensure early reporting of suspected banking frauds to investigative agencies and sent a list of high profile cases to the Prime Minister's Office to enable coordinated action; delays in fraud classification, institutional leniency, and inter agency distrust have hindered accountability, prompting calls for stronger enforcement, earlier use of statutory tools such as the Asset Quality Review and bankruptcy measures, and decisive penalties for non compliant banks.

Fiscal review to assess state revenue decline, expenditure pressures and targeted fiscal measures shaping transfer recommendations.
The Fifteenth Finance Commission will conduct an on-site review in Tamil Nadu to understand macroeconomic and regional issues via meetings with state officials, economists and stakeholders, and to examine fiscal challenges including declining own tax revenue, revenue deficits, low capital expenditure, high borrowing and fiscal imbalance, as well as GST collection, power sector unbundling, and implementation of the UDAY scheme to inform assessments of transfers and expenditure priorities.

State Government borrowing has surged, raising yields, widening SDL spreads and highlighting transparency and liquidity shortfalls.
State Government borrowing has risen sharply as states finance larger budgets and deficits, increasing reliance on market borrowings and raising SDLs' share in outstanding government debt. This has hardened sovereign yields, widened SDL spreads over central securities, crowded out corporate bond issuance, reduced liquidity in the SDL secondary market, and revealed weak differentiation of borrowing costs across states. Measures include weekly SDL auctions, higher-frequency disclosure of state fiscal buffers and borrowings, incentives for CSF/GRF accruals and rated SDL collateral benefits, valuation at observed prices, and debt consolidation via reissues, buybacks and switches.

Government securities auction: price-based multiple-price sale with non-competitive allotment and electronic bidding, specified timelines apply.
Sale (re-issue) auctions are announced for four Central Government securities with stated notified amounts and an aggregate notified limit; the Government may retain additional subscriptions within the overall limit. Auctions will be conducted by the Reserve Bank of India using the multiple price method via electronic bidding on the E-Kuber system. Up to 5% of each notified amount is reserved for eligible participants under the Non-Competitive Bidding Facility, with specified submission windows for non-competitive and competitive bids. Auction results and payment dates are fixed, and the stocks are eligible for When Issued trading under RBI guidelines.

Central receipts and expenditure reporting: composition of receipts, state tax devolution, and revenue versus capital outlays clarified.
The monthly consolidated accounts up to July 2018 present central receipts-tax revenue (net to centre), non tax revenue, and non debt capital receipts including loan recoveries and disinvestment-and relate total receipts to the budget estimate. The report records increased transfers to states as Devolution of Share of Taxes and details total expenditure split into Revenue Expenditure and Capital Account, highlighting interest payments and major subsidies as principal revenue outlays.

Banking operations continuity confirmed; banks open except for standard weekly holidays and state-specific Negotiable Instruments Act closures.
Banks will remain open and banking activity will continue unimpeded during the first week of September, with only routine weekly holidays and state-specific closures under the Negotiable Instruments Act; ATMs and online banking will remain fully functional and banks are directed to ensure adequate cash availability.