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Gold Forecast 2026: UBS Targets $6,200 as Rate Cuts Loom

Rashika Sharma
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Gold Forecast 2026: UBS Targets $6,200 as Rate Cuts Loom

New Delhi, February 23, 2026: The global financial landscape is bracing for a potential paradigm shift in precious metals, as UBS has issued a bold long-term price target for gold, projecting it could reach USD 6,200 per ounce by 2026. This forecast represents a significant appreciation from current levels, driven by a “perfect storm” of macroeconomic factors, including aggressive Federal Reserve rate cuts and a persistent appetite for bullion among global central banks.

The Pillars of the $6,200 Bull Case

The projection is rooted in the interplay between traditional monetary drivers and modern geopolitical realities. According to market analysis, three primary catalysts are expected to propel gold to these historic highs:

  • Federal Reserve Pivot: As the U.S. Federal Reserve transitions from a restrictive stance to a cycle of rate cuts, the “opportunity cost” of holding non-yielding assets like gold diminishes. Historically, gold prices share a strong inverse relationship with long-term real interest rates (Barsky et al., 2021). A 1% drop in real interest rates has been shown to significantly boost the real price of gold.
  • Central Bank Accumulation: Central banks have moved from being passive observers to aggressive accumulators of gold. This trend is particularly evident in emerging markets, where nations are seeking to diversify away from the U.S. dollar to bolster monetary sovereignty and hedge against geopolitical risks (Sharps Pixley, 2025).
  • Safe-Haven Appeal Amid Volatility: With global growth projected to slow to 3.1% by 2026 and trade tensions remaining a persistent threat, investors are increasingly viewing gold as a necessary stabilizer. While other commodities may face downward pressure due to widening surpluses, gold remains a preferred hedge against “bad economic times” (Barsky et al., 2021; Symbiosis School of Economics, 2025).

Strategic Shifts in Global Portfolios

The UBS outlook aligns with a broader trend in wealth management. Institutional and high-net-worth investors—particularly in Asia—are increasingly moving away from the traditional 60/40 (equity/bond) portfolio model. In its place, the equity-gold portfolio is gaining traction, with gold serving as a more effective stabilizer during periods of dollar uncertainty and debt sustainability concerns (Sharps Pixley, 2025).

“Gold is defying the general downward trend in commodity prices, buoyed by relentless central bank purchases and its status as a premier safe-haven asset in a volatile macroeconomic environment” (Symbiosis School of Economics, 2025).

Looking Ahead to 2026

While the $6,200 target is ambitious, it reflects a world where fiscal deficits and geopolitical realignment are the new norm. For the news cycle, this forecast serves as a signal that the “gold rush” may only be in its middle innings. As the Federal Reserve’s easing cycle takes hold and the global supply of gold remains relatively inelastic, the path of least resistance for the yellow metal appears to be upward.

From Architecture to Haute Couture: The Rise of Bhavitha Mandava

Rashika Sharma
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From Architecture to Haute Couture: The Rise of Bhavitha Mandava

New Delhi, February 23, 2026: In a whirlwind journey that reads like a modern-day fairy tale, Bhavitha Mandava has emerged as one of the most talked-about names in the global fashion industry. A 26-year-old architect-turned-model from Hyderabad, India, Mandava has shattered glass ceilings, becoming a symbol of South Asian representation on the world’s most prestigious runways.

A Serendipitous Beginning

Mandava’s path to the spotlight was anything but conventional. Raised in Hyderabad, she initially focused on a career in design, earning a Bachelor of Architecture from Jawaharlal Nehru Technological University (JNTU). Seeking to merge her design background with technology, she moved to the United States to pursue a Master’s degree in Integrated Design and Media at New York University (NYU).

Her life changed in October 2024 when she was scouted at a New York City subway station. Dressed in simple jeans and a tee, she caught the eye of a talent representative. This chance encounter led her to Matthieu Blazy, then the creative director of Bottega Veneta, who cast her as an exclusive model for his Spring/Summer 2025 show.

Making History with Chanel

While her debut was impressive, it was her collaboration with the iconic French house Chanel that turned her into a household name. When Matthieu Blazy transitioned to Chanel as its new artistic director, Mandava followed.

In December 2025, she made history as the first Indian model to ever open a Chanel runway show. The event, the Métiers d’Art 2026 collection, was poetically staged in an abandoned Manhattan subway station—a full-circle moment for a woman discovered underground just a year prior.

Why Everyone Is Talking About Her

The “Bhavitha phenomenon” is fueled by several key factors:

  • Viral Human Moments: A video of her parents reacting with tearful pride as she opened the Chanel show went viral globally, striking a chord with millions who saw it as a triumph of the “Indian dream.”
  • British Vogue Cover: In February 2026, she achieved another landmark by becoming only the second Indian woman—after Priyanka Chopra Jonas—to grace the solo cover of British Vogue.
  • Diplomatic Recognition: Her impact reached the highest levels of government. During a visit to Mumbai in February 2026, French President Emmanuel Macron mentioned her in a speech, citing her success as a testament to India’s growing influence in global innovation and leadership.
  • A “Hobbymaxxing” Personality: Fans are drawn to her down-to-earth persona. Despite her fame, she remains an academic at heart, recently sharing her interests in “hobbymaxxing”—which includes learning the Indian flute, ukulele, and even suturing.

A New Era of Representation

Mandava’s rise has sparked important conversations about diversity in luxury fashion. She has been vocal about the lack of South Asian faces in the industry, often noting that she is one of the few Brown models at major castings. By leading shows for brands like Chanel, Bottega Veneta, and Dior, she is opening doors for a new generation of talent from the subcontinent.

As she moves from the halls of NYU to the covers of international magazines, Bhavitha Mandava is proving that the distance between a subway platform and a Parisian runway is shorter than it seems—if you have the talent and the “natural presence” to bridge the gap.

Earthquakes Strike Alaska and South Bay California

Rahul Kaushik
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Earthquakes Strike Alaska and South Bay California

February 23, 2026 — Seismic activity flared up across two distinct regions of the Pacific “Ring of Fire” over the last 24 hours. A significant magnitude 6.3 earthquake struck near Alaska’s remote Aleutian Islands on Sunday evening, while residents in Southern California’s South Bay were jolted by a separate, lighter tremor later that night.

Alaska: 6.3 Magnitude Strike Near Nikolski

At approximately 7:11 p.m. local time on Sunday, February 22, a powerful 6.3 magnitude earthquake occurred near Nikolski, Alaska, in the Aleutians West region. According to the United States Geological Survey (USGS), the quake was notably shallow, with a depth of just 0.6 miles (1 km).

While shallow earthquakes often result in more intense surface shaking, the remote location of the epicenter—situated in the Fox Islands—limited its impact on populated areas.

  • Tsunami Status: The U.S. Tsunami Warning System quickly evaluated the event and confirmed that no tsunami warning, advisory, or threat was issued for the Alaska coast or the wider Pacific.
  • Damage Reports: There have been no immediate reports of significant structural damage or injuries. Seismologists noted that while the quake was strong enough to be felt by residents in nearby islands like Unalaska, the lack of infrastructure in the immediate vicinity prevented a major emergency.

Alaska remains the most seismically active state in the U.S., sitting atop the Aleutian Megathrust where the Pacific plate subducts beneath the North American plate.

California: South Bay Residents Jolted by 3.5 Tremor

Hours after the Alaskan event, a separate and unrelated earthquake occurred in Southern California. At 9:40 p.m. PST on Sunday, a magnitude 3.5 earthquake (preliminarily measured at 3.4 by some agencies) struck approximately 14 miles southwest of Rancho Palos Verdes.

The tremor was felt distinctly across coastal communities in Los Angeles County, specifically in:

  • Torrance
  • Redondo Beach
  • San Pedro
  • Manhattan Beach

Residents in Torrance and Redondo Beach reported a “short, sharp jolt” or “brief rattling” of windows and household items. Because the quake occurred at a depth of roughly 6.8 miles (11 km), its reach was localized. Local authorities have confirmed there are no reports of injuries or utility disruptions following the event.

A Reminder of Regional Risks

While these two earthquakes occurred on the same day, seismologists clarify they are not geologically linked. The Alaska quake was a result of plate subduction, whereas the Southern California tremor likely originated from one of the many local fault lines that crisscross the Los Angeles basin.

Experts use these moments to remind the public that seismic readiness is essential.

“Even small tremors like the 3.5 we saw in Torrance serve as a vital ‘natural alarm clock’ for residents to review their emergency kits and earthquake plans,” noted local safety officials.

Police Arrive in Varanasi to Arrest Shankaracharya Avimukteshwaranand

Rahul Kaushik
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Police Arrive in Varanasi to Arrest Shankaracharya Avimukteshwaranand

February 23, 2026 — In a dramatic escalation of legal proceedings that has sent ripples through India’s religious and political landscape, a contingent of the Uttar Pradesh Police arrived at the Vidya Math ashram in Varanasi today to arrest Shankaracharya Swami Avimukteshwaranand Saraswati.

The arrest follows a directive from a Special POCSO (Protection of Children from Sexual Offences) court in Prayagraj, which recently ordered the registration of a First Information Report (FIR) against the seer and his aide, Mukundanand Giri, over allegations of sexual exploitation involving minor disciples.

The Allegations and Legal Action

The case stems from a complaint filed by Ashutosh Brahmachari Maharaj, who alleged that two minor boys, aged 14 and 17, were subjected to repeated sexual abuse at the seer’s ashram. According to the FIR:

  • The Charges: The case is registered under various sections of the Bharatiya Nyaya Sanhita (BNS) and the POCSO Act, including charges related to sexual assault and criminal intimidation.
  • Timeline: The alleged incidents occurred between January 2025 and February 2026, specifically during religious camps organized at the 2025 Maha Kumbh and the 2026 Magh Mela in Prayagraj.
  • The Pretext: The complainant claimed the victims were coerced into these acts under the guise of “Guru Seva” (service to the teacher).

The Special Court Judge, Vinod Kumar Chaurasia, ordered the FIR after the local police initially declined to register the case. The court noted that the victims’ statements and prima facie evidence warranted a thorough investigation.

“I Have a Clean Chit from God”: Shankaracharya Reacts

As the police reached his residence in Varanasi, Swami Avimukteshwaranand appeared calm, addressing the media before any formal detention. He dismissed the allegations as a “manufactured conspiracy” designed to tarnish his reputation and obstruct his religious campaigns, including his vocal advocacy for cow protection.

“I will not oppose the police; I will cooperate fully,” the Shankaracharya stated. “For me, there are three courts: the public, my own conscience, and God. I have a clean chit from all three. The truth will eventually prevail.”

His legal team has pointed out that the complainant is a “history-sheeter” with a record of filing false cases, suggesting that the timing of these allegations is politically motivated.

A Backdrop of Friction

This legal battle comes on the heels of a month-long standoff between the seer and the Uttar Pradesh administration.

  • Magh Mela Dispute: In January 2026, the seer staged an 11-day protest after being stopped from taking a ritual dip at the Sangam on Mauni Amavasya while traveling in a palanquin.
  • Title Controversy: The administration recently served him a notice questioning his use of the “Shankaracharya” title, citing a sub-judice matter in the Supreme Court regarding his coronation at the Jyotish Peeth.

Political and Religious Fallout

The move has split the religious community. While some leaders, like Mahant Raju Das of Ayodhya, have called for an impartial probe stating “no one is above the law,” others view the arrest as a direct attack on the institution of the Shankaracharya.

Opposition leaders from the Congress and Samajwadi Party have previously criticized the state government’s handling of the seer, accusing the administration of “arrogance” and “insulting Sanatan traditions.”

Next Steps: The Uttar Pradesh Police are expected to produce Swami Avimukteshwaranand before the court in Prayagraj for further proceedings. The investigation into the digital evidence (a CD submitted by the complainant) is currently underway.

Ram Kapoor Reflects on Fatherhood: “My Children Didn’t Know Me for 10 Years

Rashika Sharma
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Ram Kapoor Reflects on Fatherhood: “My Children Didn’t Know Me for 10 Years

New Delhi, February 23, 2026: In a candid revelation that has resonated with working parents across the country, veteran television and film actor Ram Kapoor recently opened up about the personal sacrifices he made during the height of his career. Known for his powerhouse performances in iconic shows like Bade Achhe Lagte Hain and Kasamh Se, Kapoor admitted that his professional success came at a significant domestic cost: a decade of being an “absent father.”

The Price of Stardom

During the mid-2000s and early 2010s, Ram Kapoor was arguably the busiest actor in the Indian television industry. Balancing lead roles in daily soaps while transitioning into Bollywood meant grueling 18 to 20-hour workdays.

In a recent interview, the actor reflected on that period with bittersweet honesty. Kapoor disclosed that for nearly ten years, his schedule was so demanding that he would often leave for work before his children woke up and return long after they had fallen asleep.

“I was a provider, but I wasn’t a parent,” Kapoor shared. “My children grew up seeing me on billboards and TV screens, but they didn’t really know the man behind the characters. For a solid decade, I was a stranger in my own home.”

A Decade of Distance

Kapoor, who shares two children—Siana and Aaditya—with wife and fellow actress Gautami Kapoor, credited his spouse for holding the family together. While he was building a legacy on screen, Gautami took a backseat in her own career to ensure their children had a stable upbringing.

Key takeaways from his reflection include:

  • The “Provider” Trap: The common struggle of equating financial stability with successful parenting.
  • The Industry Grind: How the relentless pace of Indian daily soaps leaves little room for personal life.
  • The Turning Point: A realization that no amount of fame could replace the missed milestones of his children’s formative years.

Redefining Priorities

The actor’s admission isn’t just a personal confession; it’s a commentary on the “hustle culture” prevalent in the entertainment industry. However, the story has a positive shift. In recent years, Ram Kapoor has undergone a massive lifestyle transformation—not just physically, but emotionally.

By becoming more selective with his projects and prioritizing web series and films over the relentless cycle of daily television, he has reclaimed his time.

“You can’t get those years back,” he noted, “but you can make sure the next ten years look different. I’m making up for lost time now.”

The Impact on Modern Parenting

Kapoor’s transparency has sparked a conversation online about the work-life balance for men in high-pressure industries. His story serves as a poignant reminder that while professional legacy is built over years, a relationship with one’s children is built in the small, quiet moments of everyday life.

Veteran Leader Mukul Roy Passes Away at 71

Rahul Kaushik
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Veteran Leader Mukul Roy Passes Away at 71

New Delhi, February 23, 2026: Mukul Roy, a towering figure in West Bengal politics and one of the primary architects of the Trinamool Congress (TMC), has passed away. He was 71. Roy had been battling prolonged illness and neurological complications for several months, marking the end of a career that spanned decades and redefined the political landscape of Eastern India.

The news of his demise has sent shockwaves through the political fraternity, with leaders across the spectrum offering their condolences for a man often described as the “ultimate strategist.”

The Architect of Change

Mukul Roy’s political journey was inextricably linked with that of Mamata Banerjee. In 1998, he was one of the founding members of the Trinamool Congress, helping to break away from the Indian National Congress to form a platform that would eventually topple the 34-year-old Left Front regime in 2011.

While Banerjee was the face of the movement, Roy was its backbone. Known for his profound organizational skills, he was the man who understood the pulse of the rural electorate and built the party’s grassroots network from the ground up.

National Stature and the Railway Ministry

Roy’s influence was not limited to West Bengal. He represented the TMC in New Delhi with significant weight, serving as a Member of Parliament in the Rajya Sabha for multiple terms.

His most notable stint at the Centre was as the Union Minister of Railways in 2012, following the resignation of Dinesh Trivedi. During his tenure, he was known for maintaining a delicate balance between national infrastructure goals and the populist leanings of his party.

A Complex Political Legacy

In 2017, after nearly two decades as Mamata Banerjee’s “Number Two,” Roy made a high-profile shift to the Bharatiya Janata Party (BJP). His defection was seen as a watershed moment, providing the BJP with the local expertise and organizational mapping it needed to expand its footprint in West Bengal.

Under his guidance, the BJP saw a meteoric rise in the 2019 Lok Sabha elections. However, politics came full circle in 2021 when Roy returned to the Trinamool Congress shortly after the state assembly elections, citing a desire to return to his “original home.”

Tributes Pour In

Leaders from various political ideologies have expressed their grief:

  • Chief Minister Mamata Banerjee described his passing as a “personal loss,” noting that his contribution to the early struggles of the TMC would never be forgotten.
  • BJP Leadership acknowledged his role in strengthening the party’s foundation in the state during a critical transition period.
  • Political Analysts have noted that Roy’s departure marks the end of an era of “backroom diplomacy,” where personal relationships often transcended party lines.

A Final Farewell

Mukul Roy is survived by his son, Subhranshu Roy, who followed his father’s footsteps into public service. His death leaves a void in a state where political acumen and grassroots connection are the highest currencies of power.

As West Bengal remembers its “Chanakya,” he will be honored for his ability to navigate the most turbulent waters of Indian democracy with a quiet, calculated persistence.

Tragic Love Triangle Ends in Fatality at Tiruppur Railway Station

Rahul Kaushik
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Tragic Love Triangle Ends in Fatality at Tiruppur Railway Station

New Delhi, February 23, 2026: A horrifying incident unfolded at the busy Tiruppur Railway Station on Monday, as a long-standing relationship reached a violent and fatal conclusion. Commuters were left in shock when a 24-year-old man allegedly slit his former girlfriend’s throat in broad daylight after she reportedly introduced him to her new partner.

The victim, identified as 21-year-old Pavithra (name changed for privacy), was a garment factory worker in the city. The suspect, Karthik, was apprehended by Railway Protection Force (RPF) personnel and local police shortly after the attack.

A Meeting Turned Violent

According to preliminary police reports, Karthik and Pavithra had been in a relationship for over three years. However, the couple had recently faced significant friction, leading Pavithra to distance herself.

Witnesses state that the trio—Pavithra, Karthik, and the new individual in her life—met near the station entrance, reportedly to “settle matters” and clarify the status of their relationships. The situation escalated rapidly when Pavithra formally introduced the new man as her fiancé.

“The argument grew heated within minutes. Before anyone could intervene, the suspect drew a concealed sharp-edged weapon and attacked the woman,” said a senior police official overseeing the investigation.

Chaos at the Station

The attack occurred during a peak hour, causing immediate panic among hundreds of passengers. While the new boyfriend attempted to intervene, he also sustained minor injuries during the scuffle.

Despite the quick arrival of emergency services, Pavithra succumbed to her injuries due to heavy blood loss before she could reach the Government District Headquarters Hospital.

Legal Action and Investigation

The Tiruppur North Police have registered a case under relevant sections of the Bharatiya Nyaya Sanhita (BNS), including Section 103 (Murder).

  • Suspect Status: Karthik is currently in judicial custody.
  • Evidence: Police have recovered the murder weapon and are reviewing CCTV footage from the station premises to reconstruct the exact sequence of events.
  • Motive: Initial questioning suggests the crime was a “premeditated act of passion” fueled by jealousy and the suspect’s inability to accept the breakup.

The incident has raised concerns regarding security at public transport hubs and the rising trend of violent crimes stemming from interpersonal disputes.

Safety and Support

This tragedy highlights the devastating impact of domestic and relationship violence. If you or someone you know is facing threats or harassment within a relationship, please reach out to local helplines or law enforcement.

Holi 2026: Schools Closed March 4; Confusion Over March 3 Holiday

Rahul Kaushik
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Holi 2026: Schools Closed March 4; Confusion Over March 3 Holiday

New Delhi, February 23, 2026 — As the festival of colors approaches, a wave of confusion has swept across schools and educational institutions regarding the official holiday schedule for Holi 2026. While the primary celebration of Rangwali Holi is confirmed for Wednesday, March 4, parents and students are seeking clarity on whether schools will remain closed on Tuesday, March 3.

The Holi 2026 Calendar: Key Dates

According to the Hindu lunar calendar and recent government notifications, the festival period is structured as follows:

  • March 1 (Sunday): Regular Weekly Holiday.
  • March 2 (Monday): Holika Dahan / Chhoti Holi (Confirmed Holiday in several states like Uttar Pradesh).
  • March 3 (Tuesday): Intermediate Day (Currently a Working Day in many academic calendars).
  • March 4 (Wednesday): Rangwali Holi (Main Festival – Gazetted Holiday).

The “March 3” Dilemma: Why the Confusion?

The confusion regarding March 3 stems from a rare celestial event: a Total Lunar Eclipse (Chandra Grahan) occurring on that day.

Traditionally, Holika Dahan is performed on the night before Rangwali Holi. However, due to the lunar eclipse and the associated Sutak Kaal (an inauspicious period before an eclipse), many religious scholars and Panchangs have suggested that rituals be performed either on the night of March 2 or after the eclipse ends on March 3.

Current School Status for March 3:

In states like Uttar Pradesh and Delhi, the official academic calendar currently lists March 3 as a working day. This has led to a “sandwich” situation where schools are closed on Monday (March 2) and Wednesday (March 4), but theoretically open on Tuesday (March 3).

Demands for a Four-Day Long Weekend

Teachers’ associations and parent groups have begun petitioning state education departments to declare March 3 a holiday. Their arguments include:

  • Logistical Challenges: Many teachers and students travel to their hometowns for Holi. Returning for a single working day on Tuesday is impractical.
  • Low Attendance: Historically, attendance remains extremely thin on days falling between two major holidays.
  • Ritual Timing: Since the lunar eclipse ends late on March 3, many families will be occupied with post-eclipse purification rituals and late-night Holi preparations.

Note: As of today, no nationwide order has been issued to close schools on March 3. However, local district magistrates (DMs) often exercise their power to declare holidays based on regional sentiment.

What to Expect

While March 4 is a non-negotiable holiday for all government and private schools, an official announcement regarding March 3 is expected by the end of this week. Educational experts suggest that most private schools may independently declare a holiday on March 3 to provide a continuous four-day break from March 1 to March 4.

Manipuri Film ‘Boong’ Makes History with BAFTA Win

Rashika Sharma
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Manipuri Film ‘Boong’ Makes History with BAFTA Win

New Delhi, February 23, 2026: In a historic milestone for Indian cinema, the Manipuri-language film ‘Boong’ clinched the prestigious Best Children’s & Family Film award at the 79th British Academy Film Awards (BAFTA) in London on February 22, 2026.

The debut feature by director Lakshmipriya Devi outshone global heavyweights, including Hollywood blockbusters like Zootopia 2 and Lilo & Stitch, as well as the French feature Arco. This victory marks the first time an Indian production has ever won in this specific category at the BAFTAs, signaling a new era of global recognition for regional Indian storytelling.

A Tale of Innocence and Resilience

Set against the vibrant yet complex backdrop of Manipur, Boong (which means “little boy” in Manipuri) follows the journey of a young schoolboy named Brojendro, played by Gugun Kipgen.

Determined to surprise his mother, Mandakini (played by Bala Hijam), with the ultimate gift, Boong sets out on a daring quest to find and bring back his absentee father from the border town of Moreh. Accompanied by his best friend Raju (Angom Sanamatum), Boong’s adventure becomes a poignant exploration of childhood innocence clashing with the harsh realities of ethnic discord and social boundaries.

Key Details of the Production

  • Director: Lakshmipriya Devi (Debut)
  • Producers: Farhan Akhtar, Ritesh Sidhwani (Excel Entertainment), Alan McAlex, Vikesh Bhutani, and Shujaat Saudagar.
  • Lead Cast: Gugun Kipgen, Bala Hijam, Angom Sanamatum.
  • Premiere: 2024 Toronto International Film Festival (TIFF).

An Emotional Plea for Peace

The award ceremony, held at the Royal Festival Hall, witnessed an emotional acceptance speech from Lakshmipriya Devi. Flanked by producers Farhan Akhtar and Ritesh Sidhwani, the filmmaker dedicated the win to her homeland, which has faced significant ethnic unrest since 2023.

“The walk up till here felt like the last few steps to reach a summit of a mountain we never knew we were climbing,” Devi remarked. “We pray for peace to return to Manipur. We pray that all the internally displaced children, including the child actors in the film, regain their joy and their dreams once again.”

She concluded by highlighting the “superpower” of forgiveness, a central theme that resonated deeply with the BAFTA jury.

Why This Win Matters

The triumph of Boong is significant not just for its artistic merit but for its cultural impact. Farhan Akhtar, who has backed the project for over two years, noted that the film gives a voice to a region often “ignored and unrepresented” in mainstream Indian cinema.

By winning on a stage shared by international icons—and receiving the trophy from none other than Paddington Bear—Boong has proved that deeply rooted, local stories possess a universal language that transcends borders.

The 2026 BAFTAs also saw other Indian highlights, with actor Alia Bhatt appearing as a guest presenter, further cementing India’s growing presence in the global film circuit.

Haryana De-empanels IDFC First and AU Small Finance Bank

Rahul Kaushik
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Haryana De-empanels IDFC First and AU Small Finance Bank

New Delhi, February 23, 2026: In a significant move aimed at safeguarding public exchequer, the Haryana government has de-empanelled IDFC First Bank and AU Small Finance Bank from conducting any state government business. The decision, effective immediately, comes in the wake of a reported ₹590-crore fraud and systemic irregularities in the management of government deposits.

The Finance Department of Haryana issued an official circular directing all state departments, boards, and corporations to cease transactions and close their existing accounts with these two private lenders.

The Catalyst: ₹590-Crore Fraud Detection

The primary trigger for this drastic step was a disclosure by IDFC First Bank regarding unauthorized and fraudulent activities at its Chandigarh branch.

  • The Discovery: The discrepancy came to light when a Haryana government department requested to close its account and transfer the balance to another bank. The bank noticed a significant mismatch between the actual balance and the records provided by the department.
  • The Scope: Preliminary investigations suggest the fraud involves approximately ₹590 crore. The bank has stated that the issue appears confined to a specific set of government-linked accounts and does not affect individual retail customers.
  • Action Taken: IDFC First Bank has suspended four employees, filed a police complaint, and appointed KPMG to conduct an independent forensic audit. The case has also been referred to the Haryana Crime Branch.

Allegations Against AU Small Finance Bank

While the massive fraud was linked to IDFC First Bank, AU Small Finance Bank was also de-empanelled following reports of “suspected unauthorized transactions.”

In a regulatory filing on February 22, 2026, AU Small Finance Bank clarified that it had received inquiries from the state regarding specific government accounts. While the bank maintains that its preliminary review shows no financial impact or internal fraud, the state government opted for a “precautionary” de-empanelment. AU Bank has also placed certain employees “off-duty” pending a full review to ensure transparency.

Systemic Lapses and Financial Loss

Beyond the fraud, the Haryana Finance Department highlighted broader concerns regarding how private banks handle state funds:

  1. Interest Discrepancies: The government noted that banks were allegedly ignoring instructions to place surplus funds into high-interest flexible deposits or FDs. Instead, funds were kept in low-interest savings accounts, leading to substantial financial losses for the state.
  2. Lack of Reconciliation: It was revealed that many departments were not performing monthly reconciliations of their bank statements, which allowed irregularities to go undetected for extended periods.
  3. New Mandate: In a major policy shift, Haryana has now directed all its entities to maintain banking relationships exclusively with Public Sector Banks (PSBs). Any department wishing to open an account with a private bank now requires specific, justified approval from the Finance Department.

Directives for State Departments

The state government has set a strict timeline for the transition:

  • Immediate Action: Departments must transfer all balances and initiate the closure of accounts with IDFC First and AU Small Finance Bank.
  • Deadline: All government bodies are required to reconcile their bank accounts strictly as per new guidelines by March 31, 2026.
  • Compliance: A certified compliance report must be submitted to the Finance Department by April 4, 2026.

Market Reaction

The news sent ripples through the financial markets on Monday morning. Shares of AU Small Finance Bank plummeted nearly 8% in intraday trading, while IDFC First Bank also saw a significant dip as investors weighed the reputational and financial risks of the de-empanelment.

The Haryana government’s move serves as a stern warning to financial institutions regarding the management of public funds and highlights the increasing preference for nationalized banks in the state’s fiscal architecture.

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