On 27th February 2026, the Government of India and the European Union (EU) agreed to grant each other Most Favoured Nation (MFN) status for a period of five years, starting from the date the India-EU Free Trade Agreement (FTA) enters into force.
About the India-EU MFN Provision:
Duration: MFN status is granted for five years from entry into force, subject to a fourth-year Joint Committee review and automatic termination unless mutually extended.
Exceptions: MFN excludes benefits arising from Double Taxation Avoidance Agreements (DTAA), recognition and licensing measures under the General Agreement on Trade in Services (GATS), and sensitive agricultural products such as soya, beef, sugar, rice, and dairy.
About India- EU Free Trade Agreement (FTA):
Finalisation: The India–EU FTA, relaunched in 2022, was finalised in January 2026 and is expected to take effect after ratification by the European Parliament.
Coverage: The FTA eliminates or reduces tariffs on 96.6% of traded goods by value, saving 4 billion euros (USD 4.7 billion) for European companies and potentially doubling EU exports to India by 2032.
RBI Imposes Rs 11.50 Lakh Penalty on Mahindra & Mahindra Financial Services
In February 2026, The Reserve Bank of India (RBI), imposed a monetary penalty of Rs.11.50 lakh on Mahindra & Mahindra Financial Services Limited (MMFSL) for regulatory non-compliances observed during its annual inspection conducted with reference to the financial position as on 31 March 2025 (FY25).
- The penalty was levied under Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934.
Reasons for the Penalty:
Fair Practices Code: RBI found that MMFSL breached its Fair Practices Code by charging revised foreclosure fees on certain loan accounts without including the required terms in the loan agreements.
Complaint-Handling Deficiencies: The central bank also observed shortcomings in MMFSL’s grievance redressal system. Complaints were not escalated to the Internal Ombudsman within the mandated timelines, and in some cases, final decisions were communicated to complainants later than prescribed by RBI regulations.
Regulatory Action: The RBI uncovered these issues during its inspection and subsequently issued a show-cause notice to the company.
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