What it is
The Union Finance and Corporate Affairs Minister is the member of the Union Cabinet who handles the central government’s finances and matters concerning companies. Smt. Nirmala Sitharaman holds this post, as the RBI’s own press release describes her.
In practice, the role is the public face of the government’s money decisions. It covers how the government plans to raise and spend money, and how taxes are set.
How it works
The minister presents the Union Budget, the government’s yearly statement of planned revenue and spending. Tax changes that investors and salaried people care about, such as the tax on capital gains (profit made from selling an asset like shares), are usually announced there.
The minister also works alongside the Reserve Bank of India (RBI), the central bank, which runs the payment systems and banking regulation. The two institutions are separate, but they appear together at events on the financial system.
For a plain guide to how gains on shares and funds are taxed today, see our explainer on capital gains tax on shares and mutual funds.
Why it is in the news
LTCG tax and Budget 2027
Business Today reported on 3 November 2026 that Sitharaman has signalled openness to investors’ tax concerns, at a time of sustained outflows by foreign institutional investors (FIIs). The outlet linked this to rising hopes ahead of Budget 2027.
According to Business Today and BusinessLine, SBI Research calculates that doing away with long-term capital gains (LTCG) tax would leave the government with roughly ₹40,000-50,000 crore less revenue in FY28. It describes that as a loss the government could absorb. LTCG tax is the tax on profit from assets held for a longer period.
BusinessLine reported that the SBI Research proposal also includes raising the annual exemption limit, lowering tax rates for longer holding periods and increasing the Securities Transaction Tax. None of this is government policy. It is a proposal from a research team, and no decision has been announced. Read more in our coverage of the SBI Research estimate.
RBI Data Centre in Bhubaneswar
On 25 October 2026, Prime Minister Narendra Modi inaugurated the RBI’s new Data Centre and Cybersecurity Training Institute in Bhubaneswar, Odisha. Sitharaman was among those present, according to the RBI press release.
In her address, she spoke about why sturdy infrastructure matters for financial stability and economic growth. She said the facility will be home to the RBI’s most critical systems, among them RTGS and NEFT, the main channels for bank-to-bank transfers. The linked institute, she said, will train people in cybersecurity, AI and other new technologies. Details are in our report on the inauguration, and our guide explains NEFT, RTGS and IMPS.
What it means for you
If you invest in shares or equity mutual funds, the LTCG debate matters because any change in the exemption limit or tax rates would affect your post-tax gains. Nothing has changed yet, so current rules continue to apply until the Budget says otherwise.
If you use RTGS or NEFT, the new Data Centre is about the resilience of the systems behind those transfers. The release does not announce any change to how you use them.
You can check your own tax position with the income tax calculator.
Background
Budgets are announced by the Finance Minister, and speculation about tax changes usually builds in the weeks before. Research notes from banks, such as the SBI Research estimate, feed that discussion but do not bind the government.
