Daily Current Affairs (DCA) 23 May, 2026

Daily Current Affairs Quiz
23 May, 2026

National Affairs

1. Birth Rate and Infant Deaths Fall in India: SRS 2024 Bulletin

Source: TH

Context:

The Sample Registration System (SRS) 2024 bulletin, released by the Office of the Registrar General of India (ORGI), provides the sharpest picture yet of India’s demographic transition. India’s Crude Birth Rate (CBR) has fallen from 21 per 1,000 population (2014) to 18.3 (2024), the Crude Death Rate (CDR) has dropped marginally from 6.7 to 6.4, and the Infant Mortality Rate (IMR) has registered the most significant gain — falling from 39 to 24 per 1,000 live births. While the overall performance is creditable — reflecting a decade of healthcare interventions by the Centre and States — vast rural-urban gaps persist. Rural birth rate (22.7 → 20.2) and rural IMR (43 → 27) still lag substantially behind urban birth rate (17.4 → 14.7) and urban IMR (26 → 17).

Key Highlights

• Source: Sample Registration System (SRS) 2024 bulletin.
• Publisher: Office of the Registrar General of India (ORGI), Ministry of Home Affairs.

Decadal performance (2014 → 2024):

Indicator	2014	2024	Change
Crude Birth Rate (per 1,000)	21	18.3	↓ 2.7
Crude Death Rate (per 1,000)	6.7	6.4	↓ 0.3
Infant Mortality Rate (per 1,000 live births)	39	24	↓ 15

Rural vs Urban (2014 → 2024):

Indicator	Rural	Urban
Birth Rate	22.7 → 20.2	17.4 → 14.7
Death Rate	7.3 → 6.8	5.5 → 5.6 (slight rise)
IMR	43 → 27	26 → 17

State leaders:

Category	Leader	NGR	IMR
Larger States (1st)	Kerala	3.9	8 (single digit)
Larger States (2nd)	Tamil Nadu	4.8	11
Smaller States	Goa	4.2	11
Union Territories	A&N Islands	4.1	9

• National target: IMR to single digits.
• SDG 3.2 target: Under-5 mortality ≤ 25 per 1,000 live births by 2030.

About the News

What does the SRS 2024 bulletin show?

A clear improvement in India’s demographic indicators — birth rate (21 → 18.3), death rate (6.7 → 6.4), and IMR (39 → 24) — between 2014 and 2024.

What is the rural-urban gap?

Rural areas lag substantially — rural IMR (27) is 59% higher than urban IMR (17), and rural birth rate (20.2) is 37% higher than urban (14.7). Urban India has progressed faster but rural India drags national averages down.

Which states lead?

(a) Kerala — NGR 3.9, IMR 8 (lowest in India). (b) Tamil Nadu — NGR 4.8, IMR 11 (2nd among large states). (c) Goa (smaller states), A&N Islands (UTs).

Background Concepts

What is the Sample Registration System (SRS)?

A large-scale demographic survey conducted by the Office of the Registrar General of India (ORGI) under the Ministry of Home Affairs. It provides reliable annual estimates of birth rate, death rate, infant mortality, and fertility through dual-record sampling in selected rural and urban units across India. It is India’s most authoritative source for vital demographic statistics between Census years.

What is the Infant Mortality Rate (IMR)?

The number of deaths of infants below 1 year of age per 1,000 live births in a given year. IMR is a key indicator of healthcare quality, maternal-child health services, and socioeconomic development. India’s target is to bring IMR to single digits, and the SDG 3.2 target is under-5 mortality ≤ 25 per 1,000 by 2030.

What is the Crude Birth Rate (CBR) and Crude Death Rate (CDR)?

(a) CBR: Live births per 1,000 population in a given year. (b) CDR: Deaths per 1,000 population in a given year. Both are basic demographic indicators used to track population dynamics.

What is the Natural Growth Rate (NGR)?

The rate at which population increases or decreases due to births and deaths, excluding migration, expressed as a percentage. Calculated as (CBR – CDR) / 10. It is a crucial indicator of demographic transition — a low NGR signals an economy moving toward demographic stability.

Practice MCQs

Q1. With reference to the Sample Registration System (SRS) 2024 bulletin, consider the following statements:

1. India’s Crude Birth Rate has fallen from 21 in 2014 to 18.3 in 2024.
2. The Infant Mortality Rate has dropped from 39 to 24 per 1,000 live births over the past decade.
3. India’s IMR is already in single digits as per the 2024 bulletin.
4. Kerala has the lowest Natural Growth Rate among Indian states.

How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None

Q2. Consider the following statements about the rural-urban demographic divide in India:

1. Rural Crude Birth Rate is higher than urban Crude Birth Rate.
2. Rural Infant Mortality Rate in 2024 stood at 27, compared to 17 in urban areas.
3. Urban Crude Death Rate declined faster than rural Crude Death Rate between 2014 and 2024.
4. The rural-urban gap persists across all major demographic indicators.

Which of the above are correct? (a) 1, 2 and 4 only (b) 1, 2 and 3 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q3. Consider the following statements about the Sample Registration System (SRS):

1. It is conducted by the Office of the Registrar General of India under the Ministry of Home Affairs.
2. It provides annual estimates of birth rate, death rate, and infant mortality rate.
3. It uses a dual-record sampling system across rural and urban units.
4. It is the primary source of demographic data between Census years.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q4. With reference to demographic indicators, consider the following statements:

1. The Crude Birth Rate is expressed as live births per 1,000 population.
2. The Natural Growth Rate excludes migration and is calculated using only births and deaths.
3. The Infant Mortality Rate refers to deaths of infants below 1 year of age per 1,000 live births.
4. The Sustainable Development Goal target for under-5 mortality is 25 per 1,000 live births by 2030.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Answer Key

1. (c) — Statements 1, 2, 4 are correct. Statement 3 is wrong; India’s IMR has dropped to 24, which is NOT yet in single digits. Single-digit IMR remains a national target, currently achieved only by Kerala (8) and a few smaller states/UTs.
2. (e) — All four statements are correct.
3. (e) — All four statements are correct.
4. (e) — All four statements are correct.

2. Union Minister Dr Jitendra Singh Launches Phase-II of UMMID Programme for Rare Genetic Disorders

Source: PIB

Context:

Union Minister of State (Independent Charge) Dr Jitendra Singh, Ministry of Science and Technology, has launched Phase-II of the Unique Methods of Management and Treatment of Inherited Disorders (UMMID) Programme for Rare Genetic Disorders (RGDs) at Prithvi Bhawan, New Delhi. UMMID — originally launched on 23 September 2019 as India’s first comprehensive national initiative for molecular diagnostics of rare diseases — is implemented by the Department of Biotechnology (DBT) under the Ministry of Science and Technology.

Key Highlights

• Programme: Unique Methods of Management and Treatment of Inherited Disorders (UMMID) — Phase II.
• Focus: Rare Genetic Disorders (RGDs).
• Launched by: Dr Jitendra Singh, MoS (IC), Ministry of Science and Technology.
• Implementing agency: Department of Biotechnology (DBT), MoS&T.

Phase-II components:

Component	Function
NIDAN Kendras	Advanced genetic diagnostics and counselling
Clinician training	Capacity-building of doctors and geneticists
Community outreach	Underserved region screening and awareness
UMMID Dashboard	Nationwide digital monitoring

Phase-II expansion:

• 25 additional NIDAN Kendras.
• Across 13 states + 1 UT.
• 3 training centres to be established in:
  • Hyderabad (Telangana).
  • Bengaluru (Karnataka).
  • Chandigarh (UT).

Background:

• UMMID Phase-I launched: 23 September 2019.
• India’s first comprehensive national initiative for molecular diagnostics of rare diseases.

About the News

What are NIDAN Kendras?

National Inherited Diseases Administration Kendras — dedicated genetic diagnostic and counselling centres that provide molecular testing, family-based counselling, and clinical support for rare genetic and inherited disorders.

How does Phase-II expand the network?

(a) 25 new NIDAN Kendras across 13 states + 1 UT. (b) 3 new training centres — Hyderabad, Bengaluru, Chandigarh. (c) UMMID Dashboard for nationwide digital monitoring.

Why is UMMID significant?

(a) India has an estimated 70-100 million people with rare genetic disorders. (b) Late diagnosis is widespread due to limited specialists and diagnostics. (c) Molecular testing can provide early, accurate diagnosis — improving outcomes and reducing costs. (d) Community-level outreach ensures equitable access in underserved regions.

Which ministry implements it?

The Department of Biotechnology (DBT), under the Ministry of Science and Technology.

Background Concepts (Q&A)

What is the UMMID Programme?

Unique Methods of Management and Treatment of Inherited Disorders — India’s first comprehensive national initiative for molecular diagnostics of rare genetic disorders, launched in September 2019 by the Department of Biotechnology. It focuses on setting up genetic diagnostic centres (NIDAN Kendras), training clinicians, conducting screening for inherited disorders, and creating a national database.

What are Rare Genetic Disorders (RGDs)?

Disorders that affect a small percentage of the population — typically defined by the WHO as those affecting fewer than 1 in 2,000 people. Many are monogenic conditions caused by single-gene mutations. Examples include thalassemia, sickle cell anaemia, haemophilia, lysosomal storage disorders, Duchenne muscular dystrophy, and various inherited metabolic disorders. India has the National Policy for Rare Diseases (2021) that provides a framework for diagnosis, treatment, and financial support.

What is the Department of Biotechnology (DBT)?

A department under the Ministry of Science and Technology, established in 1986, that promotes and funds biotechnology research, applications, and biomanufacturing in India. DBT supports initiatives across medical, agricultural, industrial, and environmental biotechnology — including UMMID, Genome India Project, BIRAC, and the National Biopharma Mission.

Practice MCQs

Q1. With reference to the recently launched Phase-II of the UMMID Programme, consider the following statements:

1. UMMID stands for Unique Methods of Management and Treatment of Inherited Disorders.
2. It is implemented by the Department of Biotechnology under the Ministry of Science and Technology.
3. Phase-II adds 25 NIDAN Kendras across 13 states and one Union Territory.
4. The programme launches three new training centres in Hyderabad, Bengaluru, and Chandigarh.

How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None

Q2. Consider the following statements about the UMMID Programme:

1. UMMID was launched on 23 September 2019 by the Ministry of Science and Technology.
2. It was India’s first comprehensive national initiative for molecular diagnostics of rare diseases.
3. NIDAN Kendras stand for National Inherited Diseases Administration Kendras.
4. The programme is implemented through the Indian Council of Medical Research (ICMR).

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q3. Consider the following statements about Rare Genetic Disorders (RGDs):

1. The WHO typically defines rare diseases as those affecting fewer than 1 in 2,000 people.
2. Many RGDs are monogenic conditions caused by single-gene mutations.
3. India has a National Policy for Rare Diseases (2021).
4. Examples of RGDs include thalassemia, sickle cell anaemia, and haemophilia.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q4. With reference to the Department of Biotechnology (DBT), consider the following statements:

1. It was established in 1986 under the Ministry of Science and Technology.
2. It promotes and funds biotechnology research, applications, and biomanufacturing in India.
3. It supports initiatives such as UMMID, Genome India Project, and the National Biopharma Mission.
4. BIRAC (Biotechnology Industry Research Assistance Council) operates under DBT.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Answer Key

1. (d) — All four statements are correct.
2. (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; UMMID is implemented by the Department of Biotechnology (DBT), NOT the ICMR. DBT operates under the Ministry of Science and Technology, while ICMR is under the Ministry of Health & Family Welfare.
3. (e) — All four statements are correct.
4. (e) — All four statements are correct.

Exam Relevance

Exam	Relevance
UPSC Prelims	GS Paper II — Health, Government Schemes; GS Paper III — Science & Technology (Biotechnology, Genomics)
UPSC Mains	GS Paper II — Health policy, Government schemes
BPSC / State PCS	Health, Science & Technology, Current Affairs
Banking (RBI Gr B, NABARD)	General Awareness — moderate importance

3. Ministry of Textiles Launches Bharat Tex 2026 Event App

Source: News on Air

Context:

Neelam Shami Rao, Secretary of the Ministry of Textiles (MoT), has launched the Bharat Tex 2026 Event Application an AI-driven networking and business matchmaking platform for the upcoming Bharat Tex 2026 exhibition, scheduled to be held from 14-17 July 2026 at Bharat Mandapam, New Delhi. The app features a 24×7 AI-powered smart assistant for conversational support on schedules, venue, and event queries; dedicated networking and meeting modules for participants to discover partners, schedule meetings, and manage interactions; and a QR-based lead capture system allowing exhibitors and visitors to scan digital badges for seamless business follow-ups. The event is organised by the Bharat Tex Trade Federation (BTTF) along with 11 textile Export Promotion Councils (EPCs) with the support of the MoT.

Key Highlights

• Launching authority: Neelam Shami Rao, Secretary, Ministry of Textiles (MoT).
• App name: Bharat Tex 2026 Event Application.
• Event dates: 14-17 July 2026.
• Event venue: Bharat Mandapam, New Delhi.
• Organisers: Bharat Tex Trade Federation (BTTF) + 11 textile Export Promotion Councils + MoT support.

App features:

Feature	Function
AI Smart Assistant	24×7 conversational support for schedules, venue, directions, queries
Networking & Meeting Modules	Partner discovery, meeting scheduling, availability management, interaction tracking
QR-Based Lead Capture	Scan digital badges; save contact details for follow-ups

About the News

Who organises Bharat Tex 2026?

The Bharat Tex Trade Federation (BTTF) along with 11 textile Export Promotion Councils, supported by the Ministry of Textiles.

What is PM Modi’s ‘5F Vision’?

The strategic framework for India’s textile sector — Farm → Fibre → Factory → Fashion → Foreign — designed to create an end-to-end integrated value chain from cotton cultivation to global fashion exports.

Why does this matter for India’s textile sector?

(a) Boosts global trade visibility through a flagship event. (b) AI-driven matchmaking improves B2B outcomes. (c) Aligns with India’s $250 billion textile exports target by 2030. (d) Strengthens India’s positioning as a global textile hub.

Background Concepts

What is Bharat Tex?

A flagship annual textile exhibition organised by the Ministry of Textiles through the Bharat Tex Trade Federation (BTTF) and 11 textile Export Promotion Councils. Launched in February 2024, it is one of the largest global textile exhibitions and showcases India’s end-to-end textile value chain — from cotton, fibre, yarn, and fabric to garments, technical textiles, and home furnishing.

What is the ‘5F Vision’?

PM Modi’s strategic framework for the Indian textile sector: Farm to Fibre to Factory to Fashion to Foreign. It aims to build an integrated, value-added textile ecosystem — beginning with raw material cultivation (Farm), through fibre processing, manufacturing (Factory), branding (Fashion), and global exports (Foreign) — positioning India as a fully end-to-end global textile hub rather than just a raw-material or low-value-added exporter.

Practice MCQs

Q1. With reference to the recently launched Bharat Tex 2026 Event App, consider the following statements:

1. It was launched by Neelam Shami Rao, Secretary of the Ministry of Textiles.
2. It features a 24×7 AI-powered smart assistant.
3. Bharat Tex 2026 is scheduled to be held at Bharat Mandapam, New Delhi from 14-17 July 2026.
4. It includes a QR-based lead capture system for digital badges.

How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None

Q2. Consider the following statements about PM Modi’s ‘5F Vision’ for the textile sector:

1. The 5F Vision stands for Farm to Fibre to Factory to Fashion to Foreign.
2. It aims to create an end-to-end integrated textile value chain.
3. It positions India as a global textile hub from cultivation to exports.
4. Bharat Tex is organised in alignment with the 5F Vision framework.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q3. Consider the following statements about India’s textile sector:

1. India is the world’s second-largest textile producer and exporter.
2. India is the world’s largest producer of cotton, jute, and silk.
3. The textile sector contributes around 2.3% of India’s GDP.
4. Bharat Tex is organised by the Bharat Tex Trade Federation along with 11 textile Export Promotion Councils.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q4. Consider the following statements about Bharat Mandapam:

1. It is located at Pragati Maidan, New Delhi.
2. It was inaugurated in July 2023.
3. It was the venue of the G20 Summit in September 2023.
4. It will be the venue of Bharat Tex 2026.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Answer Key

1. (d) — All four statements are correct.
2. (e) — All four statements are correct.
3. (e) — All four statements are correct.
4. (e) — All four statements are correct.

Exam Relevance

Exam	Relevance
UPSC Prelims	GS Paper III — Indian Economy (Textiles, Exports, MSMEs); GS Paper II — Government policies
UPSC Mains	GS Paper III — Indian Economy, Textile sector, Exports
BPSC / State PCS	Indian Economy, Government Schemes, Current Affairs
Banking (RBI Gr B, NABARD)	General Awareness — moderate importance

Banking/Finance

1. RBI’s Record ₹2.87 Trillion Surplus Transfer

Source: BS

Context:

The Central Board of the Reserve Bank of India (RBI), at its 623rd meeting in Mumbai under Governor Sanjay Malhotra, has decided to transfer a record surplus of ₹2.87 trillion to the Government of India for FY 2025-26, surpassing FY25’s ₹2.69 trillion by 7 per cent. Three storylines emerge from the detailed data. First, the fiscal cushion: the transfer equals 90.8 per cent of the Centre’s budgeted non-tax revenue (per India Ratings), arriving at a moment when Icra estimates the FY27 fiscal deficit to slip 40 bps above the 4.3 per cent budget target, assuming crude at $95/barrel, with higher fertiliser and fuel subsidies and lower OMC dividends and tax collections worsening the picture.

Key Highlights

• Surplus transferred: ₹2.87 trillion (FY26).
• Previous record: ₹2.69 trillion (FY25).
• Year-on-year change: Up 7 per cent.

About the News

Why is the surplus a “record” despite being below some forecasts?

The ₹2.87 trillion transfer surpasses FY25’s ₹2.69 trillion to become an all-time high, but came in at the lower end of the ₹2.8 to ₹3.3 trillion forecast range. The undershoot was due to higher-than-expected absolute provisioning (₹1.09 trillion versus ₹44,862 crore in FY25), driven by the 21 per cent balance sheet expansion and possible negative entries in revaluation accounts.

Why is the CRB ratio lower but absolute provisioning higher?

Because provisioning depends on both the ratio and the balance sheet size. With the balance sheet up 21 per cent to ₹91.97 trillion, even the lower 6.5 per cent CRB ratio yielded a much larger absolute provisioning of ₹1.09 trillion, compared with ₹44,862 crore at FY25’s 7.5 per cent ratio on a smaller base.

What drove the income growth?

(a) Higher interest income on G-Secs and lending. (b) Forex earnings from ~$180 billion of gross forex sales (including $53.13 billion net sales to defend the rupee). (c) Larger balance sheet producing higher absolute income.

Why does this matter for the Centre’s fiscal position?

The transfer equals 90.8 per cent of the Centre’s budgeted non-tax revenue, providing a meaningful fiscal cushion at a time when FY27 is expected to slip 40 bps above the 4.3 per cent fiscal deficit target. Without the bumper transfer, the fiscal slippage would have been deeper.

How is the revised ECF different?

The new Economic Capital Framework allows CRB in the range of 4.5 to 7.5 per cent of the balance sheet, widened from the earlier 5.5 to 6.5 per cent. This gives the RBI greater flexibility to calibrate risk buffers to macroeconomic conditions.

Background Concepts (Q&A)

What is the Contingent Risk Buffer (CRB)?

A reserve maintained by the RBI to absorb potential losses arising from monetary policy operations, market volatility, exchange-rate movements, and credit risk. Expressed as a percentage of the RBI’s balance sheet, the CRB acts as a financial-stability cushion. A lower CRB ratio means more surplus available for transfer to the Centre, while a higher CRB ratio preserves stronger risk buffers for the central bank.

What is the Economic Capital Framework (ECF)?

The framework governing how much capital the RBI must maintain, established under the Bimal Jalan Committee (2019) recommendations. The ECF separates realised equity (accumulated profits and reserves) from revaluation balances (forex and gold valuation gains/losses), and prescribes the CRB range for risk provisioning. The framework was revised in 2026 to allow CRB in a wider range of 4.5 to 7.5 per cent (from the earlier 5.5 to 6.5 per cent band).

Practice MCQs

Q1. With reference to the RBI’s FY26 surplus transfer, consider the following statements:

1. The Central Board has approved the transfer of ₹2.87 trillion to the Government, a new all-time high.
2. The Contingent Risk Buffer has been lowered to 6.5 per cent of the balance sheet from 7.5 per cent in FY25.
3. Absolute provisioning towards the CRB more than doubled in FY26 despite the lower CRB ratio.
4. The RBI’s balance sheet expanded by 20.61 per cent during FY26.

How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None

Q2. Consider the following statements about the drivers of the RBI’s FY26 income:

1. Sale of foreign exchange reserves contributed materially to income growth.
2. The RBI’s net forex sales reached a record $53.13 billion in FY26.
3. Higher G-Sec interest income also supported earnings.
4. The 21 per cent balance sheet expansion increased provisioning requirements but also raised absolute earnings.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q3. Consider the following statements about the revised Economic Capital Framework (ECF):

1. The ECF is based on the recommendations of the Bimal Jalan Committee (2019).
2. The revised ECF permits the CRB in the range of 4.5 to 7.5 per cent of the balance sheet.
3. The earlier permissible CRB range was 5.5 to 6.5 per cent.
4. The framework separates realised equity from revaluation balances.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q4. With reference to the fiscal significance of the RBI’s FY26 surplus transfer, consider the following statements:

1. The transfer equals approximately 90.8 per cent of the Centre’s budgeted non-tax revenue.
2. Icra has estimated that the FY27 fiscal deficit could exceed the 4.3 per cent budget target by around 40 basis points.
3. Higher fertiliser and fuel subsidies and lower OMC dividends are putting pressure on the fiscal position.
4. Net FDI into India in FY26 was reported at $7.65 billion.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Answer Key

1. (d), All four statements are correct.
2. (e), All four statements are correct.
3. (e), All four statements are correct.
4. (e), All four statements are correct.

Exam Relevance

Exam	Relevance
UPSC Prelims	GS Paper III on Indian Economy (RBI, fiscal-monetary interaction, central banking)
Banking (RBI Gr B, SBI PO, IBPS, NABARD)	Banking and Economy, high importance
SEBI, IRDAI, NABARD Grade A	Financial regulation, central banking

2. ZikZuk Technologies Receives RBI Final Authorisation to Operate as Prepaid Payment Instrument (PPI) Issuer

Source: BS

Context:

ZikZuk Technologies Private Limited has received its final authorisation from the Reserve Bank of India (RBI) to operate as a Prepaid Payment Instrument (PPI) issuer under the Payment and Settlement Systems Act (PSSA), 2007 — following its earlier in-principle approval granted in May 2025. The authorisation enables ZikZuk to operate across digital payments, UPI infrastructure, and cross-border financial services, and to develop and scale a comprehensive range of RBI-regulated payment solutions — including digital wallets, prepaid cards, and stored-value services.

Key Highlights

• Authorisation: Final PPI issuer authorisation under Payment and Settlement Systems Act (PSSA), 2007.
• Earlier: In-principle approval in May 2025.
• Capabilities enabled:
  • Digital wallets.
  • Prepaid cards.
  • Stored-value services.
  • UPI infrastructure integration.
  • Cross-border financial services.

Criteria to Operate as a Prepaid Payment Instrument (PPI) Issuer in India

Governing Framework

The operative framework is the RBI Master Directions on Prepaid Payment Instruments dated 27 August 2021. The Master Directions are issued under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007. The RBI released a Draft Master Direction on PPIs, 2026 on 22 April 2026 (public comments closed 22 May 2026), proposing significant changes, but it is not yet notified or in force.

Eligibility

• Banks: Banks already permitted by RBI to issue debit cards can issue PPIs after prior intimation to RBI’s Department of Payment and Settlement Systems (DPSS). They do not need a separate authorisation.
• Non-Bank Entities: Must be a company incorporated in India under the Companies Act, 2013, with the Memorandum of Association covering PPI issuance. They must apply for authorisation. Regulated entities (e.g., NBFCs) must submit a No Objection Certificate (NOC) from their primary regulator within 45 days.

Net-Worth Criteria (Non-Bank PPI Issuers)

Stage	Minimum Positive Net-Worth
At the time of application	₹5 crore
By the end of the 3rd financial year from grant of authorisation	₹15 crore
At all times thereafter	₹15 crore continuously

Net-worth is computed as paid-up equity capital plus free reserves, less accumulated losses, deferred revenue expenditure, and other intangible assets, certified by a Chartered Accountant at application stage. The 2026 draft proposes that this certification come from a statutory auditor.

Application Process

• Application is made via the RBI’s PRAVAAH portal (Platform for Regulatory Application, Validation And Authorisation), in Form A under Regulation 3(2) of the Payment and Settlement Systems Regulations, 2008.
• Application fee is non-refundable.
• RBI conducts preliminary screening for eligibility.

Two-Stage Authorisation Process

1. In-principle approval: Granted after initial scrutiny. Valid for 6 months, extendable once by another 6 months with written justification (RBI reserves the right to decline extension). During this period the applicant must set up systems, infrastructure, escrow, IT/cybersecurity, governance.
2. System Audit Report (SAR): An applicant must submit a satisfactory SAR by a CERT-In empanelled auditor to RBI within the in-principle validity period, covering IT infrastructure, security controls, and operational processes. The SAR must be accompanied by a CA net-worth certificate.
3. Final Certificate of Authorisation (CoA): Granted after RBI is satisfied with the SAR, net-worth, due diligence, and infrastructure readiness. Under the 2021 Master Directions, the CoA is granted on a perpetual basis (a change from the earlier 5-year validity under the 2017 directions), subject to continuous compliance.
4. Commencement of operations: Must begin within 6 months of the CoA grant (extendable by another 6 months). If not, the authorisation lapses automatically.

Cooling-off: Rejected applicants face a 1-year cooling-off period before re-applying.

Escrow Account Requirements

• Mandatory escrow account with a Scheduled Commercial Bank to hold all outstanding PPI balances and dues to acquirers.
• No commingling of escrow funds with the company’s own funds.
• One additional escrow account is permitted in another scheduled commercial bank.
• Auditor certificate required for inter-escrow transfers.
• Day-end escrow balance must not fall below the sum of outstanding PPI balances plus dues to acquirers.

Important Correction on PPI Categories

The current Master Direction (2021) simplified categorisation to:

Category	Outstanding Balance Cap	KYC	Use
Small PPIs (Minimum-KYC)	₹10,000	OTP-verified mobile + self-declaration	Only for purchase of goods/services; no cash withdrawal; no P2P
Full-KYC PPIs	₹2,00,000	Full KYC	Goods/services + P2P + cash withdrawal (subject to RBI rules)
Gift PPIs	₹10,000	Cannot be bought in cash; non-reloadable	Gifting; no cash withdrawal; no P2P
Transit PPIs	₹3,000	No KYC	Public transport: metro, buses, rail, waterways, tolls, parking; perpetual validity
PPIs for Foreign Nationals/NRIs	(UPI One World framework)	Physical verification of passport and visa	Person-to-merchant payments during stay in India

Closed-system PPIs (used only for purchasing the issuer’s own goods/services, with no third-party payments or cash withdrawals) are exempt from RBI authorisation. The 2026 draft proposes that marketplaces will no longer get this exemption.

About the News (Q&A)

What has ZikZuk received?

The RBI’s final authorisation to operate as a Prepaid Payment Instrument (PPI) issuer under the PSSA, 2007 — converting its May 2025 in-principle approval into a full operating licence.

What can ZikZuk now do?

(a) Issue digital wallets. (b) Issue prepaid cards. (c) Offer stored-value services. (d) Integrate with UPI infrastructure. (e) Provide cross-border financial services.

What are the types of PPIs?

(a) General Purpose PPIs: Full-KYC and Small (minimum-KYC) PPIs for general transactions. (b) Special Purpose PPIs:

• Gift PPIs — non-reloadable, for gifting.
• Transit PPIs — metro, bus, rail, toll payments.
• PPIs for Foreign Nationals and NRIs — under the UPI One World framework (allows tourists to use UPI in India).

Background Concepts (Q&A)

What is a Prepaid Payment Instrument (PPI)?

A payment instrument where money is loaded in advance for future transactions — including mobile wallets, smart cards, gift cards, and stored-value accounts. PPIs are regulated by the RBI under the Master Direction on PPIs (2017, updated periodically). They are categorised by purpose (General vs Special) and by KYC level (Small/minimum-KYC vs Full-KYC), with distinct transaction and balance limits for each category.

What is the Payment and Settlement Systems Act (PSSA), 2007?

The legal framework that governs payment systems in India — authorising the RBI to regulate and supervise all payment systems, including digital wallets, UPI, NEFT, RTGS, IMPS, cards, ATMs, prepaid instruments, and clearing corporations. The Act empowers the RBI to grant, withdraw, and regulate authorisations for payment system operators.

What is the UPI One World framework?

A special PPI framework that allows Foreign Nationals and NRIs to use UPI in India during their visits — by issuing them a prepaid UPI-enabled instrument linked to a designated PPI provider. It enables seamless cashless payments for tourists without needing an Indian bank account.

Practice MCQs

Q1. With reference to ZikZuk Technologies’ recent RBI authorisation, consider the following statements:

1. ZikZuk Technologies has received final RBI authorisation to operate as a Prepaid Payment Instrument (PPI) issuer.
2. The authorisation is granted under the Payment and Settlement Systems Act (PSSA), 2007.
3. ZikZuk received its in-principle approval from the RBI in May 2025.
4. The authorisation enables ZikZuk to issue digital wallets, prepaid cards, and stored-value services.

How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None

Q2. Consider the following statements about Prepaid Payment Instruments (PPIs) in India:

1. PPIs are payment instruments where money is loaded in advance for future transactions.
2. PPIs are categorised into General Purpose PPIs and Special Purpose PPIs.
3. Special Purpose PPIs include Gift PPIs, Transit PPIs, and PPIs for Foreign Nationals/NRIs.
4. PPIs are regulated by the SEBI under the Securities Contracts Regulation Act.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q3. Consider the following statements about the Payment and Settlement Systems Act (PSSA), 2007:

1. It is the legal framework governing payment systems in India.
2. It authorises the RBI to regulate and supervise payment systems.
3. The RBI grants, withdraws, and regulates authorisations under the PSSA.
4. The PSSA covers digital wallets, UPI, NEFT, RTGS, IMPS, cards, and ATMs.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Q4. Consider the following statements about the UPI One World framework:

1. It allows Foreign Nationals and NRIs to use UPI in India.
2. It issues a prepaid UPI-enabled instrument linked to a designated PPI provider.
3. It enables tourists to make cashless payments without needing an Indian bank account.
4. The UPI One World framework was launched by the World Bank.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four

Answer Key

1. (d) — All four statements are correct.
2. (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; PPIs are regulated by the RBI under the Payment and Settlement Systems Act, 2007 and the RBI Master Direction on PPIs — NOT by SEBI.
3. (e) — All four statements are correct.
4. (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; the UPI One World framework was launched by the NPCI (under RBI’s supervision), NOT the World Bank.

Facts To Remember

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India hosted the 68th Governing Body Meeting of the Asian Productivity Organization in New Delhi under the leadership of Union Minister Piyush Goyal. The meeting brought together policymakers and experts from member economies to discuss productivity-led transformation under the APO Vision 2030 framework. Discussions included leadership reforms, regional productivity programmes, and future budget planning.

2. UK and Danish Firms Launch USD 300 Million Renewable Energy Initiative in India

British International Investment and Copenhagen Infrastructure Partners launched the “North Star” renewable energy platform with a planned investment of USD 300 million in India. The initiative aims to support solar, wind, hybrid energy, and battery storage projects to strengthen India’s clean energy transition. The platform is expected to generate over 4 million MWh of clean energy annually.

3. Ministry of Textiles Launches Bharat Tex 2026 Event App

The Ministry of Textiles launched the Bharat Tex 2026 Event App featuring AI-powered networking and business matchmaking tools. The app includes smart assistance, QR-based lead capture, and meeting management features for exhibitors and participants. Bharat Tex 2026 will be held from July 14–17, 2026 at Bharat Mandapam in New Delhi.

4. PM Narendra Modi Visits Norway on May 18–19, 2026

Prime Minister Narendra Modi visited Norway for a two-day official visit and held bilateral talks with Norwegian Prime Minister Jonas Gahr Støre. During the visit, PM Modi received the Royal Norwegian Order of Merit Grand Cross, one of Norway’s highest civilian honours. India and Norway elevated bilateral ties to a Green Strategic Partnership and signed agreements across sustainability, healthcare, innovation, and infrastructure sectors.

5. NISM and IICA Sign MoU to Strengthen ESG and Capital Markets

SEBI-backed National Institute of Securities Markets signed an MoU with the Indian Institute of Corporate Affairs to strengthen cooperation in ESG practices, corporate governance, and capital markets. The partnership will focus on research, training, certification programmes, and policy development in emerging financial and regulatory areas. The agreement aims to support a more transparent and efficient financial ecosystem in India.

6. ZikZuk Technologies Receives RBI Approval as PPI Issuer

ZikZuk Technologies received final authorisation from the Reserve Bank of India to operate as a Prepaid Payment Instrument issuer under the Payment and Settlement Systems Act, 2007. The approval enables the company to expand digital payment services including wallets, prepaid cards, and cross-border payment solutions. The company will also integrate services across UPI infrastructure and regulated payment systems.

7. ISRO’s Chandrayaan-3 Receives 2026 AIAA Goddard Astronautics Award

ISRO’s Chandrayaan-3 mission received the 2026 Goddard Astronautics Award from the American Institute of Aeronautics and Astronautics. The award recognised the mission’s successful soft landing near the Moon’s south pole and its contribution to lunar exploration research. Chandrayaan-3 made India the fourth country to successfully achieve a soft landing on the Moon.

8. IIT Kanpur Director Manindra Agrawal Elected Fellow of Royal Society

Professor Manindra Agrawal of IIT Kanpur and Dr. Soumya Swaminathan were elected Fellows of the Royal Society, one of the world’s most prestigious scientific academies. Manindra Agrawal was recognised for his contributions to theoretical computer science and the AKS primality test. Dr. Soumya Swaminathan was honoured for her contributions to global public health and tuberculosis research.

9. Indian-Origin Scientists Receive South Africa’s Highest Civilian Honour

South Africa conferred the Order of Mapungubwe on Indian-origin scientists Professor Salim Abdool Karim and Professor Keertan Dheda for their contributions to medical science and public health. Salim Abdool Karim was recognised for leadership in HIV/AIDS and COVID-19 research, while Keertan Dheda was honoured for pioneering work in tuberculosis and respiratory diseases.

10. India Successfully Tests Vayu Astra-1 Loitering Munition

NIBE Limited successfully tested the Vayu Astra-1 loitering munition with a 100-km operational range in Rajasthan and Uttarakhand. Developed in collaboration with Israel’s Elbit Systems, the system was evaluated by the Indian Army under the No-Cost, No-Commitment model. The trials validated its long-range strike and multi-terrain operational capability.

11. New Worm-Eating Snake Species Discovered in Mizoram

Researchers discovered a new worm-eating snake species named Trachischium lalremsangai in Mizoram and Myanmar. The species was named after Professor Hmar Tlawmte Lalremsanga for his contributions to herpetology research. The discovery was published in the international journal Herpetozoa.

12. World Metrology Day 2026 – May 20

World Metrology Day 2026 was observed on May 20 to highlight the importance of measurement science in trade, innovation, and sustainability. The 2026 theme was “Metrology: Building Trust in Policy Making.” The observance commemorates the signing of the Metre Convention.

13. International Tea Day 2026 – May 21

International Tea Day 2026 was observed on May 21 to recognise the cultural and economic importance of tea and promote sustainable tea production. The 2026 theme announced by the FAO was “Sustaining Tea, Supporting Communities.” The observance also highlights the welfare of tea workers and small tea growers worldwide.

14. Madhya Pradesh Partners with Google for AI-Powered Simhastha 2028

The Madhya Pradesh Government partnered with Google to develop an AI-powered management framework for Simhastha 2028 in Ujjain. The initiative will include crowd monitoring, predictive traffic analytics, emergency response systems, and multilingual AI assistance for pilgrims. The collaboration also includes plans for establishing an AI Centre of Excellence in Madhya Pradesh.

15. Maharashtra Signs Rs 6.5 Lakh Crore Nuclear Energy MoUs

The Maharashtra Government signed MoUs with NTPC, Reliance Industries, Adani Power, and Lalitpur Power Generation Company for nuclear energy projects worth Rs 6.5 lakh crore. The projects aim to generate 25,400 MW of nuclear power capacity and strengthen long-term clean energy security. The initiative supports industrial growth and India’s decarbonisation goals.