Source: ET Context In June 2026, London (UK)-based global higher education analytics firm Quacquarelli Symonds (QS) released the QS World University Rankings 2027 on 18 June 2026. The Indian Institute of Technology (IIT) Delhi ranked 118th globally with an overall score of 65.7, improving 5 places from 123rd and emerging as India’s highest-ranked institution for the second consecutive year. This is the highest global position ever achieved by an Indian institution in QS World University Rankings. MIT (Massachusetts Institute of Technology) retained 1st place globally with a score of 100, while Imperial College London (UK) and Stanford University (USA) were jointly ranked 2nd with scores of 99.2. The Rankings Top 3 Global Universities Rank University Country Score 1 Massachusetts Institute of Technology (MIT) USA 100 2 (joint) Imperial College London UK 99.2 2 (joint) Stanford University USA 99.2 Top 5 Indian Institutions Rank Institution Location Score 118 IIT Delhi Delhi 65.7 134 IIT Bombay Maharashtra – 170 IIT Madras Tamil Nadu – 205 IIT Kharagpur West Bengal – 221 IISc Bangalore Karnataka – IIT Delhi’s Performance Improvement QS Rankings Methodology QS evaluates universities based on 9 indicators in the 2027 edition: Indicator Weight (Approximate) Academic Reputation 30% Employer Reputation 15% Citations per Faculty 20% Faculty-Student Ratio 10% International Faculty Ratio 5% International Student Ratio 5% International Research Network 5% Employment Outcomes 5% Sustainability 5% India’s Growth in QS Rankings Edition Indian Universities Ranked India’s Top Rank 2014 11 IIT Delhi at 235 2023 41 IIT Delhi at 174 2026 54 IIT Delhi at 123 2027 52 IIT Delhi at 118 About QS (Quacquarelli Symonds) Practice MCQs Q1. With reference to the QS World University Rankings 2027, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; the rankings were released by Quacquarelli Symonds (QS), NOT Times Higher Education.) Q2. With reference to the top Indian institutions in QS World University Rankings 2027, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (IIT Kharagpur at 205 ranks higher than IISc Bangalore at 221.) Q3. With reference to India’s coverage in QS World University Rankings 2027, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q4. With reference to QS Quacquarelli Symonds, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q5. With reference to QS methodology in the 2027 edition, consider the following statements: 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 (Statement 4 is wrong; Academic Reputation has the highest weight, NOT International Faculty Ratio.) Answer Key
Global Startup Ecosystem Report (GSER) 2026
Context In June 2026, Startup Genome, in partnership with the Global Entrepreneurship Network (GEN), released the Global Startup Ecosystem Report (GSER) 2026 at the VivaTech conference in Paris on 17 June 2026. Bengaluru, Karnataka ranked 15th among the top 40 global startup ecosystems (slipping one spot from 14th in 2025, largely a technical adjustment). It also emerged as the second-best AI-native cluster in Asia, after Beijing, China. Silicon Valley (USA), New York City (USA), and London (UK) retained their top three positions. The GSER 2026 is the 14th edition of the report, based on analysis of over 5.5 million startups across 350+ global startup ecosystems, with policy insights from 200+ organizations across 80+ countries. Bengaluru’s ecosystem is valued at about USD 153 billion, with USD 46 billion in startup exits between 2021 and 2025, 304 exits, 30 active unicorns, and an R&D score of 9/10 (ahead of Silicon Valley). The Report Top 5 Global Ecosystems (Verified) Rank Ecosystem Country Change 1 Silicon Valley USA Unchanged 2 New York City USA Unchanged 3 London UK Unchanged 4 Boston USA – 5 Los Angeles USA – Bengaluru’s Ranking and Performance Bengaluru’s Performance Across 6 GSER Factors Factor Score (Out of 10) Notes Performance 9/10 Ahead of Silicon Valley Funding 8/10 Top 15 by capital raised Market Reach 5/10 Local 4/10, Global 7/10 Talent and Experience 4/10 Cost efficiency 10/10, but quality 1/10 AI-Native Cluster 8/10 2nd in Asia after Beijing R&D 9/10 Ahead of Silicon Valley GSER 2026 Six Success Factors (Methodology) About Startup Genome About Global Entrepreneurship Network (GEN) Practice MCQs Q1. With reference to the Global Startup Ecosystem Report (GSER) 2026, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; the report was released at VivaTech in Paris, NOT in New Delhi.) Q2. With reference to Bengaluru’s ranking in GSER 2026, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; Bengaluru ranked 15th, NOT 1st.) Q3. With reference to the top three global startup ecosystems (GSER 2026), consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; Bengaluru is at 15th, NOT in top 3.) Q4. With reference to Bengaluru’s performance metrics (GSER 2026), consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; talent quality scored only 1/10, NOT 10/10. The 10/10 was for cost efficiency and STEM graduate numbers.) Q5. With reference to the GSER methodology, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Answer Key
UNICEF’s Children’s Climate Risk Report 2026
Context The UNICEF Children’s Climate Risk Report (CCRR) 2026 was released on 16 June 2026. It reveals that nearly 392 million children in India (about 92 per cent of all children) are exposed to extreme heat, while 89 million face recurrent heatwaves. India’s hazard exposure score stands at 9.21 out of 10 (among the highest globally), with only Pakistan (9.44) and Bangladesh (9.38) higher in South Asia. India received the maximum score of 10/10 for extreme heat exposure, 9.94 for air pollution, and 8.84 for drought. Globally, 1.1 billion children are exposed to at least three overlapping climate hazards, and more than 4 million children face up to six overlapping threats. The report draws on UNICEF’s Global Child Hazard Database and is the first global assessment since the 2021 “Climate Crisis is a Child Rights Crisis” report. The Report What is the CCRR 2026? Climate Hazards Studied (Verified) Eight Primary Hazards Two Climate-Sensitive Hazards Seven Vulnerability Dimensions Key Findings on India Massive Exposure to Extreme Heat India’s Hazard Exposure Score Specific Hazard Scores for India Hazard India’s Score Extreme heat 10/10 (maximum) Air pollution 9.94/10 Drought 8.84/10 Global Findings Most Affected Countries Comparison with 2021 UNICEF Report Feature 2021 Report 2026 Report Title “Climate Crisis is a Child Rights Crisis” “Children’s Climate Risk Report” Scope 8 climate hazards 8 climate hazards + 2 climate-sensitive (air pollution, malaria) Approach Country-level CCRI Sub-national, granular data via Global Child Hazard Database Vulnerability dimensions 6 dimensions 7 dimensions India’s CCRI rank (2021) 26th out of 163 countries (high risk) Detailed in new framework About UNICEF Practice MCQs Q1. With reference to UNICEF’s Children’s Climate Risk Report 2026, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None (Statement 4 is wrong; the report was released by UNICEF, NOT UNEP.) Q2. With reference to India’s climate hazard exposure (CCRR 2026), consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None Q3. With reference to the global findings of CCRR 2026, consider the following statements: 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 (Statement 4 is wrong; 2.3 billion children live in areas with unhealthy air quality, NOT less than 100 million.) Q4. With reference to India’s Heat Action Plans (HAPs) as assessed by CCRR 2026, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None Q5. With reference to UNICEF, consider the following statements: 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 (Statement 4 is wrong; UNICEF is funded by VOLUNTARY contributions, NOT mandatory ones.) Answer Key
Super El Niño 2026-27
Source: Down to Earth Context The United States’ National Oceanic and Atmospheric Administration (NOAA) confirmed on 11 June 2026 the formation of a new El Niño in the equatorial Pacific, issuing an El Niño Advisory. NOAA placed the odds at 63 per cent that it will intensify into a very strong or “super” El Niño by the northern winter (November 2026-January 2027). A super El Niño is defined by sea surface temperature (SST) anomalies exceeding 2°C in a specific reference patch of the Pacific. Since 1950, only four major events have crossed this extreme threshold: 1972-73, 1982-83, 1997-98, and 2015-16. The 2026-27 event could potentially become one of the strongest on record, with ECMWF projecting SST anomalies of +3°C by December 2026. The event is likely to weaken India’s southwest monsoon, cause droughts globally, push global temperatures above the 1.5°C threshold, and trigger ecological destruction. What is El Niño? What Makes a “Super” El Niño? How El Niño Forms Step 1: Slackening of Trade Winds Step 2: West-to-East Warm Water Drift Step 3: The Feedback Loop (Bjerknes Feedback) Step 4: Climate Change Multiplier Impact on India Monsoon Suppression Erratic Rainfall Distribution Indian Ocean Dipole (IOD) Variable Global Impacts Severe Ecological Destruction Extreme Transnational Droughts Breaching Global Temperature Thresholds About ENSO About NOAA Practice MCQs Q1. With reference to NOAA’s June 2026 El Niño announcement, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; NOAA’s El Niño status was upgraded from Watch to Advisory, NOT downgraded.) Q2. With reference to historical super El Niños, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; four super El Niños have been recorded since 1950.) Q3. With reference to the mechanism of El Niño formation, consider the following statements: 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 (Statement 4 is wrong; climate change has made modern super El Niños MORE intense, NOT less.) Q4. With reference to El Niño’s impact on India, consider the following statements: 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 (Statement 4 is wrong; El Niño typically WEAKENS the Indian monsoon, NOT strengthens it.) Q5. With reference to El Niño’s global impacts, consider the following statements: 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 (Statement 4 is wrong; El Niño causes coral bleaching and damage to reefs.) Answer Key Exam Relevance Exam Relevance UPSC Prelims GS Paper I on Geography (El Niño, ENSO, Monsoon); GS Paper III on Environment, Disaster Management UPSC Mains GS Paper I on Geography, Climate; GS Paper III on Environment, Agriculture, Food Security BPSC and State PCS Geography, Environment, Current Affairs Banking and NABARD Macroeconomic awareness, agriculture RBI Grade B Inflation, agricultural economy NABARD Grade A Very high importance, agriculture, monsoon, climate
The Joint Crediting Mechanism (JCM)
Source: News on Air Context The Government of India and the Government of Japan officially adopted the ‘Rules of Implementation’ for the Joint Crediting Mechanism (JCM) on 8 June 2026, under Article 6.2 of the Paris Agreement of the United Nations Framework Convention on Climate Change (UNFCCC). This operational milestone activates a bilateral carbon market framework that builds on the Memorandum of Cooperation (MoC) signed in 2025. India became the 31st partner in Japan’s JCM network, which now covers 32 countries. The first Joint Committee meeting was held on 22 September 2025, leading to the final adoption of the rules. The mechanism allows Japanese entities to invest in emission-reduction projects in India using advanced green technologies, with the resulting carbon credits shared between both countries to count toward their Nationally Determined Contributions (NDCs). What is JCM? Legal Mandate Aim Japan’s JCM Network Article 6 of the Paris Agreement Sectors of Cooperation Under JCM Practice MCQs Q1. With reference to the Joint Crediting Mechanism (JCM) adopted between India and Japan, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None Q2. With reference to Article 6 of the Paris Agreement, consider the following statements: 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 (Statement 4 is wrong; Article 6.2 applies to all Paris Agreement parties, including developing countries.) Q3. With reference to JCM’s operational mechanism, consider the following statements: 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 (Statement 4 is wrong; JCM requires independent third-party validation and verification.) Q4. With reference to JCM’s funding channels, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None (Statement 4 is wrong; JCM is funded primarily by Japan through multiple channels, NOT solely by India.) Q5. With reference to India’s climate commitments under the Paris Agreement, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None (Statement 4 is wrong; India’s net-zero target is 2070, NOT 2050.) Answer Key
Kashmir Saffron: GI-Tagged Premium Spice Surges Amid West Asia Crisis
Source: New Indian Express (NIE) Context The ongoing crisis in West Asia (Iran conflict) and a sharp 140-ton decline in Iran’s saffron production have triggered a massive global demand surge for premium Kashmiri saffron. Iran is the world’s largest saffron producer (over 300 tonnes annually on 30,000 hectares), while Kashmir ranks second in supply. Kashmir saffron, historically called “bahukam” in ancient Sanskrit literature and “Red Gold”, received its Geographical Indication (GI) tag on 1 May 2020. It is grown across about 3,715 hectares in Pulwama, Budgam, Srinagar, and Kishtwar districts, with Pampore as the main hub. It is the only saffron in the world grown at an altitude of 1,600-1,800 metres. Lab profiles reveal higher concentrations of crocin (18-22 per cent), safranal (0.8-1.2 per cent), and picrocrocin (8-12 per cent) compared to foreign varieties. What is Kashmir Saffron? Why is Kashmir Saffron Unique? The World’s Highest Altitude Saffron Distinct Physical Appearance Superior Bio-Chemical Properties Component Kashmir Saffron Function Crocin 18-22 per cent Carotenoid pigment, gives golden-yellow color, antioxidant properties Safranal 0.8-1.2 per cent Organic compound responsible for warm, honey-like, earth-toned aroma Picrocrocin 8-12 per cent Provides characteristic bitter flavor Three Traditional Grades (Verified) About Geographical Indication (GI) Tag Notable GI-tagged products of J&K Why is GI Tag Significant for Kashmir Saffron? Practice MCQs Q1. With reference to Kashmir saffron, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None (Statement 4 is wrong; Iran is the world’s largest saffron producer, NOT Kashmir.) Q2. With reference to the cultivation of Kashmir saffron, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None Q3. With reference to the chemical composition of Kashmir saffron, consider the following statements: 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 (Statement 4 is wrong; Kashmir saffron has HIGHER concentrations of these compounds than Iranian saffron.) Q4. With reference to the grades of Kashmir saffron, consider the following statements: 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 (Statement 4 is partially wrong; the grades differ in processing and purity, not just chemical composition.) Q5. With reference to the Geographical Indication (GI) Tag system in India, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None Answer Key
The Kishau Multi-Purpose Dam
Source: News on Air Context Union Home Minister Amit Shah chaired a crucial meeting in New Delhi on 16-17 June 2026, where a historic consensus was reached among six stakeholder states (Himachal Pradesh, Uttarakhand, Haryana, Delhi, Uttar Pradesh, and Rajasthan) to implement the long-pending Kishau Multi-Purpose Dam Project, breaking an eight-year deadlock. The six states agreed to sign a Memorandum of Understanding (MoU) for the hydroelectric and water storage project on the Tons River (a tributary of the Yamuna). The 236-metre concrete gravity dam (estimated cost: ₹11,500-15,000 crore) will create a reservoir of 1,324 MCM, generate 660 MW of hydropower (1,379 MU annually), and irrigate 97,076 hectares. Under the new agreement, the Central Government will fund 90 per cent of the water component as a central assistance grant, while the six states will share 10 per cent. A unique water swap allows Himachal Pradesh’s water share to be supplied to Delhi and Rajasthan in lieu of sharing HP’s power component cost (about ₹2,000 crore). The project was initially approved by the Ministry of Environment and Forests (MoEF) in 2018, and the MoU will now be placed before the Union Cabinet for approval. Stakeholder States Location Aim The 90:10 Agreement About the Yamuna River Practice MCQs Q1. With reference to the Kishau Multi-Purpose Dam Project, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None (Statement 4 is wrong; the Kishau dam is on the Tons River, NOT the Ganga.) Q2. With reference to the funding framework agreed in June 2026, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None (Statement 4 is wrong; the Centre bears 90 per cent of water component, NOT 100 per cent of both components.) Q3. With reference to the six stakeholder states of the Kishau project, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None Q4. With reference to the project’s technical features, consider the following statements: 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 (Statement 4 is wrong; the dam will have a 660 MW hydropower plant.) Q5. With reference to the broader Yamuna basin storage projects, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None Answer Key
NPCI Unveils Drunix
Source: Business Standard Context The National Payments Corporation of India (NPCI) has rolled out Drunix, an open-source, enterprise-grade blockchain platform designed to help organisations build and scale tokenisation platforms, digital asset ecosystems, and multi-organisation networks. Drunix has been developed as an enhanced fork of Hyperledger Fabric and is intended to address the growing demand for scalable and secure distributed ledger solutions. It is engineered for enterprise and public infrastructure adoption and enables blockchain deployment at scale without compromising privacy, governance, or interoperability. Drunix marks NPCI’s second major open-source contribution in the blockchain and tokenization space, following Falcon, which focused on production-grade blockchain network management and orchestration. NPCI’s Chief Technology Officer Vishal Kanvaty said the platform aims to accelerate blockchain readiness with foundational technologies for experimentation, interoperability, and real-world adoption. Purpose of Drunix To help organisations build and scale: Key Features NPCI’s Open-Source Blockchain and AI Initiatives Initiative Purpose Falcon Production-grade blockchain network management and orchestration (NPCI’s 1st blockchain open-source contribution) Drunix Core blockchain runtime and transaction processing layer (NPCI’s 2nd open-source contribution in blockchain) FiMi NPCI’s open-source initiative Vigil-AI NPCI’s AI-based initiative What is Blockchain Technology? What is Hyperledger Fabric? What is Tokenisation? About NPCI Practice MCQs Q1. With reference to NPCI’s Drunix, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; Drunix is open-source, NOT closed-source.) Q2. With reference to Hyperledger Fabric, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Q3. With reference to NPCI, consider the following statements: 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 (Statement 4 is wrong; NPCI is an Indian non-profit company headquartered in Mumbai.) Q4. With reference to blockchain technology, consider the following statements: 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 (Statement 4 is wrong; PRIVATE/PERMISSIONED blockchains are restricted to authorised users; public blockchains are open to all.) Q5. With reference to India’s CBDC (e-Rupee), consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None Answer Key
RBI Temporarily Withdraws Interest Rate Ceilings on FCNR(B) and NRE Deposits to Attract NRI Funds
Source: ET Context The Reserve Bank of India (RBI) on 17 June 2026 temporarily withdrew the interest rate ceiling on fresh Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits with maturities of 3 years and above up to 5 years, until 30 September 2026. Separately, the RBI also temporarily removed restrictions on interest rates for fresh Non-Resident External (NRE) deposits of 3 years and above, including deposits renewed on maturity, until 30 September 2026. The amendment was issued under Section 35A of the Banking Regulation Act, 1949, modifying the Commercial Banks Interest Rate on Deposits Directions, 2025. This move builds on the earlier FCNR(B) swap facility (announced 8 June 2026) under which the RBI bears the full hedging cost for banks. Following these moves, banks like AU Small Finance Bank (7.10 per cent), Karur Vysya Bank (7 per cent), CSB Bank (6.95 per cent), and Yes Bank (6.6 per cent) have raised FCNR(B) rates. SBI Research estimates USD 40-45 billion inflows via the FCNR(B) route alone, with combined inflows of USD 55-65 billion likely in FY27. On NRE Deposits Important Exception Legal Basis Prior Ceilings (Before Relaxation) Maturity Previous Ceiling 3-5 years Overnight ARR/swap rate + 350 bps 1 year to less than 3 years Overnight ARR/swap rate + 250 bps (still applicable) FCNR(B) Swap Facility What is FCNR(B)? What is NRE Deposit? What is NRO Deposit? FCNR(B) vs NRE vs NRO Feature FCNR(B) NRE NRO Currency Foreign (USD, GBP, etc.) Rupee Rupee Source of funds Foreign earnings Foreign earnings Indian income Interest taxable No (tax-free) No (tax-free) Yes Repatriation Fully repatriable Fully repatriable Restricted (USD 1 mn/yr) Exchange rate risk No Yes N/A (domestic income) What is the FCNR(B) Swap Facility? What is the OFCB Swap Facility? About Alternative Reference Rates (ARRs) Practice MCQs Q1. With reference to the RBI’s 17 June 2026 move on FCNR(B) and NRE deposits, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; NRO-to-NRE transfers will NOT qualify for the exemption.) Q2. With reference to the FCNR(B) Swap Facility announced on 8 June 2026, consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; the 1.5 per cent fixed rate is for the OFCB Swap Facility for PSUs and banks’ overseas borrowings, NOT the FCNR(B) Swap Facility. Under FCNR(B), RBI bears the full hedging cost.) Q3. With reference to India’s NRI deposits position (June 2025 data), consider the following statements: How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None (Statement 4 is wrong; India had USD 168.32 billion in outstanding NRI deposits.) Q4. With reference to FCNR(B), NRE, and NRO deposits, consider the following statements: 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 (Statement 4 is wrong; NRO repatriation is restricted to USD 1 million per year.) Q5. With reference to SBI Research estimates and forex reserves, consider the following statements: 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 (Statement 4 is wrong; India’s highest-ever forex reserves were USD 728.49 billion; reserves recovered above USD 700 billion in June 2026.) Answer Key
RBI Master Directions on Authorisation to Operate a Payment System (PSO)
Source: BS Context: In June 2026, the Reserve Bank of India (RBI) issued the Master Directions on Authorisation to Operate a Payment System to consolidate the existing guidelines for entities seeking to operate payment systems under the Payment and Settlement Systems (PSS) Act, 2007. The directions, which come into effect immediately, provide a unified framework covering eligibility criteria, authorisation, perpetual validity of licences, voluntary surrender, and cooling-off requirements for Payment System Operators (PSOs). What is a Payment System Operator (PSO)? Why was the Framework Consolidated? Key Features of the Master Directions 1. Perpetual Validity of Licences 2. On-Tap Availability 3. FATF Safeguards 4. “Fit and Proper” Criteria Applicants must meet criteria relating to: 5. Capital and Net-Worth Requirements 6. Voluntary Surrender Process Entities seeking to discontinue operations must: 7. Cooling-Off Period A 1-year cooling-off period may be imposed on entities whose authorisation has been: Category Cooling-Off Period Revoked by RBI 1 year Not renewed 1 year Voluntarily surrendered 1 year Application rejected 1 year During the cooling-off, such entities cannot apply for permission to operate any payment system. Three-Tier PSO Classification Tier PSO Type Examples Tier 1 Systemic Authorised Payment Systems (large national) NPCI (RTGS, NEFT, UPI), Card networks, ATM networks Tier 2 Specialised PSOs (specific functions) PPI issuers, Cross-border money transfer operators, BBPS, TReDS Tier 3 Niche/innovation PSOs Account aggregators, payment intermediaries, FinTechs About Payment and Settlement Systems (PSS) Act, 2007 Major PSOs in India (Examples) PSO Function NPCI (National Payments Corporation of India) Operates RTGS, NEFT, UPI, IMPS, Bharat BillPay (BBPS), FASTag, RuPay CCIL (Clearing Corporation of India Ltd) Settles money market, government securities, forex transactions Card networks: Visa, Mastercard, RuPay, American Express Operate card payment networks PPI issuers: PhonePe, Paytm, Mobikwik Prepaid Payment Instruments Cross-border money transfer operators: Wise, Remitly International remittances TReDS platforms: Receivables Exchange of India Ltd MSME receivables discounting Key Terms Practice MCQs Q1. With reference to the RBI’s Master Directions on Authorisation to Operate a Payment System (June 2026), consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None (Statement 4 is wrong; new PSOs receive PERPETUAL validity, NOT 5-year validity.) Q2. With reference to the validity provisions of the Master Directions, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None (Statement 4 is wrong; RBI retains revocation powers under Section 8 of PSS Act 2007.) Q3. With reference to FATF safeguards in the Master Directions, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None Q4. With reference to the application process and cooling-off period, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None (Statement 4 is wrong; the cooling-off period is 1 year, NOT 30 days.) Q5. With reference to the voluntary surrender process, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None Q6. With reference to the three-tier classification of PSOs, consider the following statements: How many of the above statements are correct? (a) Only one(b) Only two(c) Only three(d) All four(e) None (Statement 4 is wrong; minimum net worth varies by PSO type (e.g., ₹100 crore for PPI issuers, higher for card networks).) Answer Key