The government approved the introduction of one billion polymer banknotes in the denominations of ₹10 and ₹20. The Reserve Bank of India has informed that the procurement process for these notes is presently at an initial stage. The step marks India's formal move toward adopting polymer currency notes.

The Reserve Bank of India's Monetary Policy Committee (MPC) kept the policy repo rate unchanged at 5.25%. The committee observed that the recent higher inflation was mostly on account of fuel and food prices, with little sign so far of price pressures becoming generalised across the wider economy.

India's retail inflation rose to a 19-month high of 4.45% in July 2026, driven by higher food and fuel prices. Costlier food, restaurant and accommodation services, and transport pushed the headline number up, even as inflation in services such as healthcare, recreation, sports and culture cooled marginally during the month.

The government rolled out a foreign asset disclosure scheme allowing small taxpayers to declare previously undisclosed foreign assets or income. Declarants will pay a 30% tax on the value of the declared asset or income, plus an additional amount equal to that tax — taking the effective levy to 60% of the declared value.