Most Expected Current Affairs Questions for CA Foundation June 2026 Exam

<div style="background:#E8F0EA;border-left:4px solid #4A90A4;padding:16px 20px;margin:24px 0;border-radius:0 8px 8px 0;">

<h3 style="margin:0 0 10px;color:#3A7A8E;font-size:16px;">📚 Related on CA Saarthi</h3>

<ul style="margin:0;padding-left:20px;">

<li style="margin-bottom:6px;"><a href="https://casaarthi.in/blog/ca-foundation-june-2026-exam-last-month-current-affairs-most-likely-questions-2026-05-13" style="color:#4A90A4;text-decoration:none;font-weight:500;">CA Foundation June 2026 Exam: Last Month Current Affairs & Most Likely Questions</a></li>

<li style="margin-bottom:6px;"><a href="https://casaarthi.in/blog/ca-foundation-june-2026-exam-last-minute-current-affairs-you-must-know-2026-05-05" style="color:#4A90A4;text-decoration:none;font-weight:500;">CA Foundation June 2026 Exam: Last-Minute Current Affairs You Must Know</a></li>

<li style="margin-bottom:6px;"><a href="https://casaarthi.in/blog/ca-foundation-june-2026-exam-last-month-current-affairs-guide-with-expected-ques-2026-05-06" style="color:#4A90A4;text-decoration:none;font-weight:500;">CA Foundation June 2026 Exam: Last Month Current Affairs Guide with Expected Questions</a></li>

<li style="margin-bottom:6px;"><a href="https://casaarthi.in/topics/question-answering" style="color:#4A90A4;text-decoration:none;font-weight:500;">Question Answering Techniques</a></li>

<li style="margin-bottom:6px;"><a href="https://casaarthi.in/topics/ch7-13-ca-ethics" style="color:#4A90A4;text-decoration:none;font-weight:500;">CA Ethics</a></li>

</ul>

</div>

<h2>Introduction: Why Current Affairs Matter in CA Foundation</h2><p>The CA Foundation exam isn't just about textbooks. The Institute of Chartered Accountants of India (ICAI) regularly tests students' awareness of current economic policies, regulatory changes, and business developments. As of May 2026, several topics are trending and likely to appear in your June exam. Let's decode them for you.</p><h2>1. India's Digital Economy and RBI's E-Rupee Initiative</h2><p>The Reserve Bank of India has been aggressively promoting the Digital Rupee (e-Rupee) or Central Bank Digital Currency (CBDC). This ties directly to your <strong>Unit 2: Banking Regulation Act</strong> and <strong>Unit 3: Securities Contracts Regulation Act</strong>.</p><p><strong>What to remember:</strong></p><ul><li>e-Rupee is launched under Section 22 of the RBI Act, 1934</li><li>It's a legal tender issued by RBI in digital form</li><li>The wholesale and retail phases have already begun as of 2024-25</li><li>This modernizes the payment system under Banking Regulation Act provisions</li></ul><p>Expect questions like: "Under which act does RBI have the authority to issue digital currency?" or scenario-based MCQs about e-Rupee transactions and regulatory compliance.</p><h2>2. Insurance Sector Reforms and FDI Changes</h2><p>The government recently increased Foreign Direct Investment (FDI) limits in the insurance sector from 49% to 74%. This is crucial for <strong>Unit 4: Insurance Act, 1938</strong>.</p><p><strong>Key points to memorize:</strong></p><ul><li>Section 3 of Insurance Act defines "insurance business"</li><li>FDI limit increase affects insurance companies' governance structure</li><li>The Insurance Regulatory and Development Authority (IRDA) oversees compliance</li><li>This change impacts the definition of "Indian insurance company" under the Act</li></ul><p>Watch for questions testing whether you understand how FDI changes affect regulatory requirements or the definition of Indian insurers under the Act.</p><h2>3. GST Rate Changes and ITC Eligibility</h2><p>As of 2025-26, various GST rate modifications have been implemented on essential commodities and services. This connects to <strong>Unit 5: Indirect Taxes</strong> in your CA Foundation syllabus.</p><p><strong>Current updates to focus on:</strong></p><ul><li>Certain food items remain at 5% or 0% GST</li><li>Petroleum products still attract 5% GST (not in regular GST system)</li><li>Input Tax Credit (ITC) eligibility remains restricted for specific industries</li><li>Section 17 of CGST Act defines blocked credits</li></ul><p>Examiners love asking: "Can an insurance broker claim ITC on premium payments?" or scenario questions about GST compliance. Know the blocked credit categories by heart.</p><h2>4. Labor Law Updates and Minimum Wage Revisions</h2><p>State governments have announced revised Minimum Wages effective from 2026, which affects <strong>Unit 6: Labor Laws</strong>.</p><p><strong>Essential details:</strong></p><ul><li>Minimum wage rates vary by state and industry sector</li><li>Section 2(h) of Minimum Wages Act, 1948 defines "scheduled employment"</li><li>National Floor Wage is set by the Central Government</li><li>Employers must maintain wage registers as per Section 13</li></ul><p>Potential exam questions: "Which act governs minimum wage fixation?" or "What records must employers maintain regarding wages?"</p><h2>5. Recent RBI Monetary Policy and Inflation Data</h2><p>RBI's latest monetary policy stance (May 2026) shows concerns about inflation control. This relates to <strong>Unit 2: Banking System and Monetary Policy</strong>.</p><p><strong>What to know:</strong></p><ul><li>RBI's repo rate and reverse repo rate movements</li><li>CRR (Cash Reserve Ratio) requirements for banks</li><li>Section 45ZL of RBI Act outlines the Monetary Policy Framework</li><li>Inflation targeting mechanism at 4% with ±2% band</li></ul><p>Questions might ask about RBI's regulatory tools or the impact of rate changes on credit availability.</p><h2>How to Prepare: Action Plan</h2><ul><li><strong>Read the Economic Times</strong> — Focus on RBI, insurance, and tax news (15 minutes daily)</li><li><strong>Follow ICAI updates</strong> — Check their website for any regulatory changes</li><li><strong>Link to your syllabus</strong> — When you read current news, immediately connect it to your textbook sections</li><li><strong>Make flashcards</strong> — Write act names, section numbers, and recent changes on cards</li><li><strong>Practice MCQs</strong> — Use ICAI's past papers to see how current affairs are tested</li></ul><h2>Sample Exam-Style Questions</h2><h3>Question 1:</h3><p><strong>The Digital Rupee issued by RBI is backed by which legal provision?</strong></p><ul><li>a) Section 22 of the RBI Act, 1934</li><li>b) Section 31 of the Banking Regulation Act, 1949</li><li>c) Section 5 of the Indian Contract Act, 1872</li><li>d) Section 45ZL of the RBI Act, 1934</li></ul><p><strong>Answer: a) Section 22 of the RBI Act, 1934</strong> — This section empowers RBI to issue currency notes and legal tender in any form, including digital.</p><h3>Question 2:</h3><p><strong>The recent increase in FDI limit in insurance sector from 49% to 74% requires compliance with which act?</strong></p><ul><li>a) Insurance Act, 1938 and Foreign Exchange Management Act, 1999</li><li>b) Securities Contracts Regulation Act, 1956</li><li>c) Reserve Bank of India Act, 1934</li><li>d) Companies Act, 2013 only</li></ul><p><strong>Answer: a) Insurance Act, 1938 and Foreign Exchange Management Act, 1999</strong> — Both acts govern foreign investment in insurance and insurer regulations.</p><h3>Question 3:</h3><p><strong>Which GST rate applies to petroleum products as per current GST structure (May 2026)?</strong></p><ul><li>a) 5% GST under standard rate</li><li>b) Petroleum is outside GST regime; State Excise applies</li><li>c) 12% GST</li><li>d) 0% GST (exempted)</li></ul><p><strong>Answer: b) Petroleum is outside GST regime; State Excise applies</strong> — This is a crucial distinction that frequently trips up students. Remember: petroleum, alcohol, and electricity are outside the GST net.</p><h2>Final Tips</h2><p>Don't memorize blindly. Understand <strong>why</strong> policies change. For example, why did India push for e-Rupee? (To reduce cash circulation, improve financial inclusion, and monitor money supply better). This deeper understanding helps you retain facts and tackle unexpected questions.</p><p>Start your current affairs prep now. You have about 4 weeks until the June exam. Spend 20 minutes daily connecting current news to your CA Foundation syllabus, and you'll be ready.</p><p><strong>Good luck! You've got this! 💪</strong></p>