Daily Current Affairs Quiz
30 & 31 December, 2025

International Affairs

1. India–New Zealand Free Trade Agreement (FTA)

Source: TH

The India–New Zealand Free Trade Agreement (FTA), concluded in December 2025 and announced after negotiations that began in March 2025, marks a major step in India’s strategy of trade diversification and deeper economic integration with high-income economies.

The agreement was finalised under the leadership of Narendra Modi and Christopher Luxon, and is being described as one of India’s fastest-concluded FTAs (nine months).

What is the India–New Zealand FTA?

It is a comprehensive trade and investment agreement covering:

• Goods
• Services
• Investment
• Skilled labour mobility
• MSME cooperation
• Traditional knowledge and wellness services

The FTA is designed not merely as a tariff-cutting pact, but as a long-term framework for economic cooperation and access to the Oceania–Pacific region.

What zero-duty access will India get?

• 100% of India’s exports to New Zealand will face zero customs duty
• This provides full market access for Indian goods

In return:

• India will reduce or eliminate tariffs on 95% of New Zealand’s exports
• 57% of these products become duty-free from day one

How much FDI is New Zealand committing?

• $20 billion in Foreign Direct Investment (FDI) by 2030
• Spread across 118 sectors
• Focus areas:
  • Services
  • Skill mobility
  • Employment generation
  • Education, healthcare, construction, IT

Notably, the agreement includes binding timelines and clawback provisions if investment commitments are not met — a first in India’s FTAs.

Key New Elements in the Agreement

• Facilitation of Ayurveda, yoga and traditional medicine services (first such commitment by New Zealand)
• Easier movement of Indian professionals, including:
  • IT professionals
  • Engineers
  • Healthcare workers
  • Yoga instructors
  • Chefs and music teachers
• Student-friendly provisions:
  • Work permits up to 20 hours/week
  • Extended post-study work visas

Why is India accelerating FTAs?

India’s rapid push for FTAs reflects strategic, economic and geopolitical compulsions:

• Trade diversification
  • Reduce dependence on the U.S., EU and China
  • India–U.S. trade ($132 bn) exposed India to tariff shocks
• WTO-plus commitments
  • Services, digital trade, investment rules go beyond WTO norms
• Geopolitical alignment
  • FTAs as tools of strategic partnerships (Oceania, West Asia, Africa)
• Domestic policy alignment
  • Support Make in India, PLI schemes, and global value chain integration
• Response to U.S. tariff pressures
  • Sharp fall in India’s exports to the U.S. in late 2025
  • Indo-U.S. FTA negotiations stalled, especially over agriculture

This is India’s third FTA in 2025, after agreements with the UK and Oman.

National Affairs

1. INSV Kaundinya

Context

Prime Minister Narendra Modi extended New Year greetings to the crew of INSV Kaundinya, who are currently on a maritime voyage, praising their enthusiasm and dedication as India prepares to welcome 2026.

About Kaundinya

INSV Kaundinya is a historic stitched sailing vessel of the Indian Navy, reconstructed to revive and showcase India’s ancient maritime traditions and long-distance seafaring heritage.

Key Highlights:

• Type: Stitched wooden sailing ship (plank-and-cord construction)
• Inspired by: 5th-century CE Ajanta cave paintings depicting Indian ocean-going vessels
• Construction method: Planks stitched together using coir rope, without nails or metal fasteners
• Material: Teak wood and traditional natural fibres
• Name origin: Named after Kaundinya, an ancient Indian mariner associated with early maritime links between India and Southeast Asia

Development & Launch

• Built by: Traditional shipwrights from Kerala using age-old methods
• Commissioned by: Indian Navy in collaboration with cultural and archaeological experts
• Launched at: Goa (Indian Navy)

2. Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)

Context

Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) is India’s flagship health assurance scheme that provides up to ₹5 lakh per family per year for secondary and tertiary care hospitalization in empaneled public and private hospitals. In 2025, the scheme was expanded significantly when Odisha and Delhi formally joined AB-PMJAY.

Key Features

• Launched: 2018
• Nodal agency: National Health Authority (NHA)
• Coverage: Up to ₹5 lakh per family per year
• Care included: Secondary and tertiary hospitalisation
• Mode: Cashless and paperless treatment
• Hospitals: Empanelled public and private hospitals across India
• Beneficiaries: Poor and vulnerable families identified from SECC 2011 and updated databases

3. Parvati-Arga Bird Sanctuary Declared Eco-Sensitive Zone

Source: News on Air

Context

The Parvati–Arga Bird Sanctuary in Uttar Pradesh has been notified as an Eco-Sensitive Zone (ESZ) by the Ministry of Environment, Forest and Climate Change (MoEFCC) to strengthen ecological protection around the sanctuary.

Key Facts

• Location: Gonda district, Uttar Pradesh
• Ecosystem: Freshwater wetlands, lakes, marshes
• Importance: Critical habitat for resident and migratory water birds
• Ramsar Status: Recognised as a Ramsar Wetland of International Importance

About the Eco-Sensitive Zone (ESZ)

• ESZs are notified under the Environment (Protection) Act, 1986
• Act as a buffer zone around protected areas like national parks and sanctuaries
• Aim to regulate human activities rather than completely prohibit them

Activities under ESZ

• Prohibited: Polluting industries, mining, major hydropower projects
• Regulated: Construction, tourism, groundwater extraction
• Permitted: Traditional agriculture, eco-friendly livelihoods, conservation-based tourism

4. India Ranks 3rd in Global Rare Earth Reserves

Source: ET

Context

India has emerged as the world’s third-largest holder of rare earth reserves, underscoring its growing strategic importance in critical minerals essential for modern technologies and clean energy transitions.

Key Highlights:

• Global Rank India: 3rd in rare earth reserves
• Estimated Reserves: ~6.9 million tonnes (REO)
• Share of Global Reserves: Around 6–7%

Rankings (REO Reserves):

1. China – 44 MT
2. Brazil – ~21 MT
3. India – 6.9 MT (6–7% of global)

About Rare Earth Elements (REEs)

• A group of 17 elements including lanthanides, scandium, and yttrium
• Despite the name, they are not truly rare, but are difficult to extract and process economically
• Crucial for:
  • Electric vehicles & wind turbines (permanent magnets)
  • Smartphones & electronics
  • Defence, space & aerospace systems
  • Green hydrogen & advanced batteries

India’s Resource Base

• Major deposits found in beach sand minerals containing monazite
• Concentrated along coastal regions of:
  • Odisha
  • Andhra Pradesh
  • Tamil Nadu
  • Kerala
• Managed primarily by Indian Rare Earths Limited (IREL)

5. Amit Shah Inaugurates Redeveloped Batadrava Than, Assam

Source: PIB

Context

Amit Shah, Union Home Minister of India, inaugurated the redeveloped Batadrava Than in Assam, marking a significant step towards preserving Assam’s spiritual, cultural, and Vaishnavite heritage.

About Batadrava Than

• Batadrava Than is one of the most sacred Vaishnavite monasteries (Sattras) in Assam
• Location: Nagaon district, Assam
• Founded by: Srimanta Sankardev, the 15th–16th century saint, reformer, and social philosopher
• Considered the birthplace of the Neo-Vaishnavite movement (Ekasarana Dharma) in Assam

Key Features of the Redevelopment

• Restoration of heritage architecture while maintaining traditional Sattra aesthetics
• Improved pilgrim amenities including pathways, lighting, and visitor facilities
• Cultural spaces for showcasing Ankiya Naat, Sattriya traditions, and Vaishnavite literature
• Environment-friendly infrastructure aligned with heritage conservation norms

6. Pinaka Long Range Guided Rocket (LRGR-120)

Source: PIB

Context

The Defence Research and Development Organisation (DRDO) has successfully conducted the maiden flight test of the Pinaka Long Range Guided Rocket (LRGR-120) from the Integrated Test Range (ITR), Chandipur, marking a major milestone in India’s indigenous rocket artillery capabilities.

About Pinaka Long Range Guided Rocket (LRGR-120)

The Pinaka LRGR-120 is an indigenously developed, precision-guided rocket variant of the Pinaka Multi‑Barrel Rocket System, designed for long-range, high-accuracy battlefield strikes.

Developed by

• Armament Research and Development Establishment (ARDE)
• In association with High Energy Materials Research Laboratory (HEMRL)
• Under the aegis of DRDO

Aim of the System

• Extend the strike range of the Pinaka rocket family
• Deliver precision-guided firepower with reduced collateral damage
• Enhance operational flexibility using existing Pinaka launch infrastructure

7. PM Highlights Narsapuram Lace Craft in Man Ki Baat

Context

The Prime Minister, in Man Ki Baat, highlighted the Narsapuram Lace Craft as a model of women-led economic empowerment, cultural continuity, and sustainable livelihoods. The recent conferment of the Geographical Indication (GI) tag has brought renewed national focus to this centuries-old craft of the Godavari region.

About Narsapuram Lace Craft

Narsapuram Lace Craft is a handmade crochet lace tradition, where artisans use a single crochet hook and fine cotton threads to create intricate lace patterns. The craft is known for its precision, patience, and high skill, resulting in products such as lace trims, table linens, garments, and decorative items.

Region

• State: Andhra Pradesh
• Districts: West Godavari and Dr. B.R. Ambedkar Konaseema
• Key Centres: Narsapur, Palacole, Razole, Amalapuram

Historical Background

• Origins: Introduced in 1844, when European missionaries trained local women in lace-making techniques
• Resilience: The craft survived famines, colonial-era economic disruptions, and market fluctuations, remaining a dependable source of income for women
• Evolution: Over time, Narsapuram lace gained global recognition as a distinctive hand-crafted textile tradition

Banking and Finance

1. India Becomes the World’s 4th Largest Economy

Source: ET

Context

India has officially emerged as the world’s fourth-largest economy, overtaking Japan, marking a major milestone in its economic journey and reinforcing its position as the fastest-growing major economy globally.

Key Highlights

• Global Rank: 4th largest economy
• GDP Size: ~USD 4.18 trillion
• Surpassed: Japan
• Ahead of: United Kingdom
• Next Target: Germany (projected by 2030)

Global Ranking Snapshot

1. United States
2. China
3. Germany
4. India
5. Japan

Growth Drivers

• Robust private consumption, supported by rising incomes and urban demand
• Public capital expenditure on infrastructure (roads, railways, digital public goods)
• Strong performance in services, especially IT, finance, and business services
• Expansion of manufacturing under Make in India and PLI schemes
• Macro-economic stability with controlled fiscal and external sector risks

Recent Growth Performance

• India recorded 8%+ real GDP growth in recent quarters
• Continues to outpace other major economies amid global slowdown concerns
• Recognised as the fastest-growing large economy by international institutions

2. RBI Releases “Report on Trend and Progress of Banking in India 2024–25”

Source: TH

Context

The Reserve Bank of India (RBI) has released its statutory annual publication, the “Report on Trend and Progress of Banking in India 2024–25”, in accordance with Section 36(2) of the Banking Regulation Act, 1949. The report provides a comprehensive assessment of the health, performance, and evolving risks of India’s banking system.

Purpose of the Report

• To present an annual review of the functioning of the banking sector
• To assess financial stability, resilience, and regulatory outcomes
• To inform the Government of India and Parliament on banking sector developments

Key Findings of the Report

1. Bank Frauds: Fewer Cases, Higher Amounts

• Number of frauds declined to 23,879 cases (2024–25) from 36,052 cases (2023–24)
• Amount involved increased sharply to ₹34,771 crore from ₹11,261 crore in the previous year

Reason for spike in value:

• Re-examination of 122 large fraud cases involving ₹18,336 crore, following a landmark Supreme Court judgment (27 March 2023)

Legal context:

• In SBI v. Rajesh Agarwal, the Supreme Court ruled that borrowers must be given an opportunity to be heard before accounts are classified as ‘fraud’, reinforcing the principles of natural justice.

2. Fraud Profile: Type-wise Trends

• Card / Internet frauds
  • 66.8% of total cases (highest by number)
• Advances-related frauds
  • 33.1% of total amount involved (highest by value)

3. Bank-wise Contribution to Frauds

• Private Sector Banks (PVBs)
  • 59.3% of total cases
  • Largest share by number: Card/Internet frauds
  • Largest share by value: Advances-related frauds
• Public Sector Banks (PSBs)
  • 70.7% of the total amount involved
  • Advances-related frauds dominate both by number and value

4. Trend Across Bank Groups

• Card/Internet frauds
  • Declined across all bank groups (both in number and amount)
• Advances-related frauds
  • Increased across all bank groups in number
  • Increased in amount across all banks except PSBs

5. Resilience & Growth of Scheduled Commercial Banks (SCBs)

• Double-digit growth in deposits and credit, though moderated compared to last year
• Consolidated SCB balance sheet growth: 11.2% (vs 15.5% in 2023–24)
• Assets side
  • Bank credit: +11.5%
  • Investments: +9.2%
• Liabilities side
  • Deposits: +11.1%

(Often described as the “resilient 11-11-11” growth pattern)

6. Profitability

• Net profits of SCBs increased, but at a slower pace
• Moderation partly due to slower growth in Net Interest Income (NII)

7. Capital Adequacy & Leverage

• CRAR of SCBs
  • 17.4% at end-March 2025
  • 17.2% at end-September 2025
• Leverage ratio remained well above regulatory minimums, indicating strong buffers

8. Asset Quality

• Asset quality strengthened further
• GNPA ratio
  • 2.2% at end-March 2025
  • 2.1% at end-September 2025
• These levels represent a multi-decadal low, reflecting improved credit discipline and recoveries

9. Urban Co-operative Banks (UCBs)

• Recorded higher balance sheet growth compared to the previous year
• Asset quality improved for the fourth consecutive year
• Strengthening observed in capital buffers and profitability

10. Non-Banking Financial Companies (NBFCs)

• Continued double-digit credit growth
• Maintained robust capital buffers
• Asset quality improved during the year, despite pockets of stress in specific segments

3. SEBI Surplus Transfer Proposal

Source: BS

Context

During the Winter Session of Parliament, the government introduced the Securities Markets Code, 2025 Bill, which seeks to consolidate securities market laws. A key concern arises from Clause 124, which proposes the transfer of the annual surplus of the market regulator to the Consolidated Fund of India (CFI).

What Does Clause 124 Propose?

• 25% of SEBI’s annual surplus to be credited to a Reserve Fund, capped at two years’ preceding expenditure.
• Remaining surplus to be transferred annually to the CFI.
• This effectively hard-codes a ceiling on the regulator’s expenditure and mandates surplus transfer to the government.

How SEBI’s General Fund Works (Current System)

• Inflows: Fees and charges levied on market infrastructure institutions, regulated entities, and market participants.
• Outflows: Revenue and capital expenditure of Securities and Exchange Board of India (SEBI).
• Autonomy: SEBI’s budget is approved by its own Board—core to its financial independence under the SEBI Act, 1992.

4. Govt Plans to Amend SARFAESI Act to Include Special Situation Funds (SSFs)

Source: Business Standard

Context

The Union government is considering amending the SARFAESI Act, 2002 to expand the definition of “financial institution” to include Special Situation Funds (SSFs), with the aim of speeding up recovery of stressed assets and NPAs.

About SARFAESI Act, 2002

• Full form: Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
• Enables banks and financial institutions to recover dues above ₹1 lakh by enforcing security interests without court or tribunal intervention.
• Key provision: Section 13 (enforcement of security interest).

What are Special Situation Funds (SSFs)?

• Defined and regulated by Securities and Exchange Board of India (SEBI).
• Classified as Category I Alternative Investment Funds (AIFs).
• Focus on:
  • Distressed assets
  • Stressed loans
  • Corporate restructuring, insolvency, mergers
• Play an active role in turnaround and revival of stressed companies.

Proposed Amendments

1. Inclusion of SSFs under SARFAESI
   • SSFs to be added under Section 2(1)(m) (definition of financial institution).
   • Will allow SSFs to directly invoke SARFAESI provisions for recovery.
2. Time Limit for Borrower Representations
   • Amendment to Section 13(3A).
   • Borrowers must submit objections to a demand notice (Section 13(2)) within 30 days of receipt.
   • Currently, no statutory timeline, leading to delays.

5. Research, Development and Innovation Fund (RDIF)

Context

The Government of India has created the Research, Development and Innovation Fund (RDIF) with a corpus of ₹1 lakh crore (≈ $11 billion) to transform India’s R&D and deep-tech innovation ecosystem by providing long-term, risk-tolerant capital.

Research, Development and Innovation Fund (RDIF)

The Research, Development and Innovation Fund (RDIF) is a ₹1 lakh crore (~$11 billion) government initiative aimed at financing high-risk, high-impact research and deep-tech innovation in India through long-term risk capital, rather than conventional grants.

Key Features

• Nature: Sovereign risk-capital fund (not a grant or subsidy scheme).
• Objective: Bridge the “valley of death” between lab research and commercialisation.
• Time Horizon: Designed for patient capital with a long-term (up to 50 years) outlook.
• Focus: Deep-tech and strategic sectors where private funding is limited due to high risk.

Institutional Framework

• Anchored under the Anusandhan National Research Foundation (ANRF).
• Operates through a two-tier structure:
  • Special Purpose Fund (SPF): Holds government capital.
  • Professional fund managers (AIFs, NBFCs, public financial institutions) deploy funds into startups and ventures.

Priority Sectors

• Artificial Intelligence & semiconductors
• Biotechnology & life sciences
• Quantum technologies
• Clean energy & climate tech
• Space, defence, and advanced materials

6. Funds Raised by Banks Hit 3-Year Low: RBI

Source: Mint

Context

The Reserve Bank of India (RBI) has reported that fundraising by banks through capital market routes—private placements, qualified institutional placements (QIPs), and preferential allotments—has fallen to its lowest level in the last three financial years.

Contrasting Trend

• RBI noted that fundraising increased during FY25, mainly driven by PSBs, which recorded 36.6% growth in funds raised—largely through debt instruments.
• The current slowdown marks a reversal of the rising trend seen between FY23 and FY25.

Reasons for Decline

• Ample deposit mobilisation at select banks.
• Higher bond yields, reducing appetite for long-term debt issuance.
• Tighter liquidity conditions and uncertainty over the interest rate cycle.
• Banks reassessing funding mix after heavy reliance on private placements in recent years to meet capital and regulatory needs.

Why it Matters

• Indicates a shift in bank funding strategies.
• Reflects sensitivity of bank capital raising to interest rates and liquidity conditions.
• Important for understanding capital adequacy, credit growth, and financial stability.

Agriculture

1. IS 19262:2025 for Electric Agricultural Tractors

Source: PIB

Context

Pralhad Joshi, Union Minister for Consumer Affairs, Food and Public Distribution, released IS 19262:2025, India’s first dedicated quality and safety standard for Electric Agricultural Tractors, marking a major step towards clean, safe, and sustainable farm mechanisation.

About IS 19262:2025

IS 19262:2025 is a national standard that lays down technical, safety, and performance requirements for electric agricultural tractors, ensuring their reliability, safety, and suitability for Indian farming conditions.

Objectives

• Ensure operator and electrical safety
• Promote standardisation of electric farm machinery
• Support the transition towards clean energy in agriculture
• Build consumer confidence in electric tractors

Facts To Remember

1. BJP Ministers inaugurate library built in memory of Vajpayee twice in one day

Union Minister of State for Cooperation Krishan Pal Gurjar and Haryana Local Bodies Minister Vipul Goel inaugurated a library building in Faridabad

2. Share of Banks in SCBs’ Balance Sheet (FY25): Key Takeaways

According to the latest ‘Report on Trend and Progress of Banking in India’ published by the Reserve Bank of India on December 30, 2025, the structure of India’s banking system witnessed marginal but notable shifts during FY25, reflecting changing competitive dynamics and funding patterns.

3. Bracewell announces retirement

Former New Zealand all-rounder Doug Bracewell announced his retirement from all forms of cricket.

4. Deepti Sharma becomes top wicket-taker in women’s T20Is

Deepti Sharma became the top wicket-taker in women’s T20Is.

5.Banks Report 30% Jump in Fraud Amount in April–September 2025: RBI

According to the Reserve Bank of India (RBI)’s Trend and Progress of Banking in India report, the amount involved in banking frauds jumped sharply in the first half of FY26 (April–September 2025), even though the number of reported cases fell.

5. DAC Approves Defence Proposals Worth ₹79,000 Crore

In December 2025, the Defence Acquisition Council (DAC), chaired by Rajnath Singh, approved defence procurement proposals worth ₹79,000 crore.

6. FITT & IDFC First Bank Launch New IGNITE Cohort

On Dec 29, 2025, Foundation for Innovation and Technology Transfer (FITT) partnered with IDFC First Bank.

Program:

• IGNITE (Innovation Growth & Nurturing Initiative for Technology Entrepreneurs)

Objective

• Support deep-tech startups
• Bridge academia–industry gap

7. DoT Releases National Frequency Allocation Plan-2025

In December 2025, Department of Telecommunications (DoT) released NFAP-2025, effective 30 December 2025.

Purpose:

• Management & allocation of radio frequency spectrum
• Supports 5G, satellite communication, defence & aviation needs

8. India–Australia Trade: Zero Duty on All Tariff Lines

Key Decision:

• 100% Australian tariff lines → Zero duty
• Effective from 1 January 2026

9. HAL’s Dhruv-NG Helicopter Inaugurated

In December 2025, Ram Mohan Naidu inaugurated Dhruv-NG at Hindustan Aeronautics Limited, Bengaluru.

10. Former Bangladesh PM Khaleda Zia Passes Away

On Dec 30, 2025, former Bangladesh PM Begum Khaleda Zia passed away at age 80.

Key Facts:

• Chairperson: Bangladesh Nationalist Party (BNP)
• Born: 15 August 1945, Jalpaiguri (now WB)

11. Jayshree Ullal Tops Hurun India Rich List 2025 (Indian-Origin Executives)

Jayshree Ullal, CEO of Arista Networks, ranked 1st among Indian-origin professional executives.

Key Facts:

• Net worth: USD 5.7 billion (~₹50,170 crore)
• Category: Professional managers/executives (not founders)

12. Russia Launches Soyuz-2.1b Rocket with 52 Satellites

On Dec 28, 2025, Russia launched Soyuz-2.1b rocket from Vostochny Cosmodrome.

13. Jharkhand School Survey Adds ‘Other’ Religion Category

The Jharkhand government has decided to add an ‘Other’ religion category in its ongoing school survey after objections from tribal groups over the exclusion of indigenous faiths.

About the Survey:

• Conducted under DAHAR 2.0 (Digital Habitation Mapping and Real-time Monitoring).
• Implemented by the Jharkhand Education Project Council under Samagra Shiksha.
• Covers children aged 3–18 years to track enrolment, dropouts, and educational planning.

14. Rediff.com India Secures TPAP Licence from NPCI

Rediff.com India Limited, a subsidiary of Infibeam Avenues Limited, received final approval from National Payments Corporation of India (NPCI) to operate as a Third-Party Application Provider (TPAP).

• Platform: RediffPay
• Stage: Closed User Group (CUG) testing
• PSP Bank: Axis Bank

15. IDFC First Bank Launches ‘Gaj’ Metal Credit Card

IDFC First Bank launched ‘Gaj’, an invitation-only premium metal credit card for HNIs.

• Top tier in Ashva–Mayura–Gaj card series
• Joining & annual fee: ₹12,500 + GST
• Annual fee waived on ₹10 lakh annual spend

16. Syria Unveils New Currency Series

Syria unveiled a new series of banknotes, to be circulated from January 1, 2026.

17. India Allows Export of Organic Sugar with Annual Cap

India has partially relaxed export restrictions on organic sugar by permitting limited overseas shipments, while continuing to tightly manage domestic sugar supplies.

18. Arjun Erigaisi finishes Day 1 as table-topper at FIDE World Blitz Championships

In Chess, India’s Arjun Erigaisi finished Day 1 of the 2025 FIDE World Blitz Chess Championships in Doha, Qatar as table-topper. With 10 points in the 13 rounds played, Arjun is currently leading the Open section with Maxime Vachier-Lagrave and Fabiano Caruana.

Daily Current Affairs Quiz
01 & 02 January, 2026

National Affairs

1. Dynamic Ground Water Resource Assessment Report, 2024

Context

The Union Minister of Jal Shakti has released the Dynamic Ground Water Resource Assessment Report, 2024, which indicates a net improvement in India’s groundwater status compared to 2017, marked by higher recharge and moderated long-term extraction. This reflects important spatial and temporal changes in a critical geographical feature — groundwater.

Key Highlights of the Report:

1. Changing Groundwater Status (Spatial Trends)

• Rising Recharge:
  • Total annual groundwater recharge stands at 446.90 BCM, showing a long-term increase due to rainwater harvesting, tanks, ponds, and conservation structures.
• Moderate Extraction:
  • Annual groundwater extraction is 245.64 BCM, with the stage of extraction at 60.47%, suggesting national-level sustainability.
• Expansion of ‘Safe’ Units:
  • 73.4% of assessment units are now categorised as Safe (up from 62.6% in 2017).
• Decline in Over-exploitation:
  • Over-exploited units reduced from 17.24% (2017) to 11.13% (2024) — a partial reversal of groundwater stress.

2. Role of Water Bodies & Conservation Structures

• Recharge from tanks, ponds, and artificial recharge structures increased to 25.34 BCM, nearly doubling since 2017.
• Highlights the revival of traditional water bodies as critical geographical features influencing subsurface hydrology.

3. Persistent Regional Imbalances

Despite national improvement, groundwater stress remains spatially concentrated in:

• North-West India: Punjab, Haryana, Delhi, Rajasthan
• Western & Peninsular India: Gujarat, Tamil Nadu, Karnataka, Telangana
  These regions coincide with arid/semi-arid climates, water-intensive cropping, and hard rock aquifers, underscoring the location-specific nature of groundwater depletion.

4. Climatic Sensitivity

• Rainfall dominance: Nearly 61% of recharge comes from rainfall.
• With ~75% of rainfall concentrated in June–September, groundwater availability remains highly sensitive to monsoon variability and climate change.

Reasons for Groundwater Depletion (Geographical Perspective)

1. Agriculture-driven Over-extraction
   • Groundwater supports ~62% of irrigation.
   • Water-intensive crops (rice, sugarcane) dominate NW and peninsular India, pushing 11.13% units into Over-exploited category.
2. Seasonal Rainfall Regime
   • Sharp temporal mismatch between monsoon recharge and year-round withdrawal.
3. Hydro-geological Constraints
   • ~Two-thirds of India lies in hard rock terrain, where groundwater is stored only in fractured zones → limited storage and rapid depletion.
4. Energy Subsidy Distortion
   • Cheap/free electricity encourages excessive pumping, especially in Punjab, Haryana, Rajasthan, Tamil Nadu, where >25% units are Critical/Over-exploited.
5. Urban–Industrial Pressure
   • Rising urbanisation and industrial clusters contribute to 245.64 BCM annual groundwater draft (2024).

Initiatives Addressing Groundwater Stress

• National Aquifer Mapping Programme (NAQUIM & NAQUIM 2.0):
  Aquifer-level scientific mapping and management planning.
• Atal Bhujal Yojana (ATAL JAL):
  Community-led demand-side management in water-stressed blocks.
• Master Plan for Artificial Recharge (2020):
  Proposal for ~1.42 crore structures to harness 185 BCM of monsoon runoff.
• Jal Shakti Abhiyan – Catch the Rain:
  Nationwide rainwater harvesting and water conservation.
• PMKSY (Groundwater Component):
  Promotes efficient irrigation and conjunctive water use.

Challenges Linked to Groundwater as a Geographical Resource

• Water Security Risk:
  Supplies 85% of rural and ~50% of urban drinking water.
• Regional Inequality:
  Stress concentrated in NW India, western arid zones, and peninsular crystalline belts.
• Quality Degradation:
  • 127 units (1.88%) saline
  • Arsenic and fluoride contamination in stressed aquifers.
• Climate Vulnerability:
  Marginal fall in recharge from 449.08 BCM (2023) to 446.90 BCM (2024) due to erratic rainfall.
• Governance Fragmentation:
  Groundwater as a State subject leads to uneven regulation and weak pricing signals.

Way Forward (Geography-Informed Strategy)

• Aquifer-based Management:
  Scale up NAQUIM/NAQUIM-2.0 for village-level aquifer plans, prioritising Critical and Over-exploited units.
• Demand-side Reforms:
  Crop diversification, rational power subsidies, micro-irrigation to sustainably keep extraction below 60%.
• Artificial Recharge Expansion:
  Implement the Master Plan for Artificial Recharge (2020) to harness 185 BCM monsoon runoff.
• Community Stewardship:
  Expand ATAL JAL across 8,220 water-stressed Gram Panchayats.
• Data-driven Governance:
  Institutionalise annual groundwater assessment using IN-GRES (GIS-based platform) for real-time correction.

2. BSNL Launched Voice over WiFi (VoWiFi) Services

Source: PIB

Context

State-run telecom operator Bharat Sanchar Nigam Limited (BSNL) has launched Voice over WiFi (VoWiFi) services across all telecom circles in India, enabling users to make voice calls and send SMS over Wi-Fi networks. The move significantly enhances connectivity in areas with weak or no mobile network coverage, especially indoors and in remote regions.

What is Voice over WiFi (VoWiFi)?

• VoWiFi is a technology that allows users to make and receive voice calls and text messages using a Wi-Fi connection instead of a cellular tower.
• It works on the IMS (IP Multimedia Subsystem) framework.
• Uses:
  • The same mobile number
  • The default phone dialer
• No third-party app is required, unlike internet calling platforms.

3. Central Excise (Amendment) Act, 2025

Context TH

Context

The Union Government has notified the Central Excise (Amendment) Act, 2025, along with related tax changes on tobacco products, to be effective from February 1, 2026. The reform ends the GST Compensation Cess, revises central excise duties, and seeks to raise tobacco prices in line with public health and fiscal objectives.

About the Central Excise (Amendment) Act, 2025

The Central Excise (Amendment) Act, 2025 amends the Central Excise Act, 1944 to restructure excise duties on tobacco and tobacco-related products, which continue to remain outside the full GST framework.

Key Features of the Act

1. Revision of Central Excise Duties

The Act updates excise rates to maintain and enhance the overall tax burden after the discontinuation of the GST compensation cess.

Revised duty rates include:

• Unmanufactured tobacco: 64% → 70%
• Chewing tobacco: 25% → 100%
• Hookah/Gudaku tobacco: 25% → 40%
• Smoking mixtures (pipes/cigarettes): 60% → 325%
• Cigarettes:
  • From ₹200–₹735 → ₹2,700–₹11,000 per 1,000 sticks

2. Public Health Objective

• The reform aligns with global public health guidance, which stresses that real tobacco prices should rise faster than incomes to curb consumption.
• Addresses the issue of stagnant affordability of cigarettes despite income growth over the past decade.

3. GST Rate Restructuring on Tobacco

• Beedis: Shifted to 18% GST
• All other tobacco products: Shifted to 40% GST

This replaces the earlier structure that combined GST with a compensation cess.

4. New Valuation Mechanism

• For products such as chewing tobacco, gutkha, khaini, jarda, GST valuation will now be:
  • Based on the Retail Sale Price (RSP) declared on the package
• Aims to curb under-reporting and tax evasion.

About GST Compensation Cess

The GST Compensation Cess was an additional levy on select goods (including tobacco) to compensate States for revenue losses due to GST.

• Introduced: July 2017
• Original duration: 5 years (till June 2022)
• Continued beyond this period to clear compensation liabilities
• Now discontinued from February 1, 2026

4. Centre Pre-Publishes Draft Rules for Four Labour Codes

Source: Mint

The Ministry of Labour and Employment has pre-published the draft Rules for implementation of the four Labour Codes, inviting public comments within 45 days. The move marks a major step towards operationalising India’s landmark labour law reforms, covering wages, industrial relations, social security, and occupational safety.

What Is the Key Announcement?

• Draft Rules uploaded on the Ministry’s website for public consultation
• Mandate a 48-hour work week
• Lay down special safeguards for women working night shifts
• Extend social security coverage to gig and platform workers
• Define workers, wages, gratuity, bonus, and employment categories

Code-wise Key Provisions

1. Code on Wages – Draft Rules

• Supersedes 18 earlier rules, including:
  • Payment of Wages Rules, 1937
  • Minimum Wages (Central) Rules, 1950
  • Equal Remuneration Rules, 1976
• Minimum wage fixation based on:
  • Standard working-class family (earning worker + spouse + two children)
  • Three adult consumption units
  • 2,700 calories per day per unit
  • 66 metres of cloth per year
  • Housing rent: 10% of food & clothing expenditure
  • Fuel, electricity & misc.: 20%
  • Children’s education, medical & recreation needs
  • 25% for contingencies
• Wages to vary by:
  • Geographical area
  • Skill levels (unskilled, semi-skilled, skilled, highly skilled)
• A Technical Committee, headed by the Director-General of Employment, will advise on skill categorisation.
• A Central Advisory Board proposed for fixing the floor wage.

2. Code on Social Security – Draft Rules

• Supersedes 12 existing rules, including:
  • Employees’ State Insurance Rules, 1950
  • Payment of Gratuity Rules, 1972
  • Unorganised Workers’ Social Security Rules
• National Social Security Board to be constituted:
  • Includes representatives of unorganised sector workers & employers
  • Five members from gig and platform workers, on a rotational basis
• Creche facility mandatory in establishments employing 50 or more workers, for children below six years.

3. Women & Night-Shift Employment

• Employers must ensure:
  • Written consent of women employees
  • Safe transportation facilities
  • CCTV surveillance and workplace safety measures
• Aims to balance gender inclusion with safety and dignity at work.

4. Industrial Relations Code – Draft Rules

• Integrates:
  • Industrial Disputes (Central) Rules, 1957
  • Industrial Employment (Standing Orders) Rules, 1946
• Covers:
  • Registration & functioning of trade unions
  • Secret ballot for verification of trade unions
• Classification of workers:
  • Permanent, Temporary, Apprentices, Probationers
  • Badlis, Casual workers
  • Fixed-Term Employment (engagement through a written contract for a fixed duration)

5. SPREE 2025 Scheme

Source: PIB

Context

The Ministry of Labour and Employment has extended the deadline of the SPREE 2025 scheme to January 31, 2026, providing additional time for employers and employees to avail benefits under the Employees’ State Insurance framework.

About SPREE 2025

• Full form: Scheme for Promotion of Registration of Employers and Employees
• Launched by: Employees’ State Insurance Corporation (ESIC)
• Launch date: July 2025
• Ministry: Ministry of Labour and Employment
• Legal basis: Employees’ State Insurance Act, 1948
• Legal framework: Implemented under the Employees’ State Insurance Act

Objective

• Expand social security coverage
• Encourage voluntary registration of:
  • Unregistered employers
  • Left-out or uncovered workers

Key Features

• No penalty or prosecution: No inspections, damages, or demands for past non-compliance
• No retrospective contribution: ESI contributions applicable only after registration
• Digital onboarding: Registration through ESIC, Shram Suvidha, and MCA portals
• Inclusive coverage: Applies to establishments and workers left out earlier

6. DRDO Carries Out Successful Salvo Launch of Pralay Missiles

Source: TOI

Context

The Defence Research and Development Organisation (DRDO) successfully conducted a salvo launch of two indigenously developed Pralay missiles from the same launcher, marking a significant milestone in India’s conventional missile capability.

Key Details of the Test

• Type of test: Salvo launch (multiple missiles fired in quick succession from one launcher)
• Location: Off the Odisha coast
• Range & tracking: Monitored by sensors of the Integrated Test Range (ITR), Chandipur

About the Pralay Missile

• Type: Short-range, surface-to-surface quasi-ballistic missile
• Nature: Conventional (non-nuclear) missile system
• Range: ~150–500 km
• Launch platform: Road-mobile Transporter Erector Launcher (TEL)
• Guidance: Advanced navigation system with high accuracy
• Role: Precision strike against high-value enemy targets

7. Ancient Savannas of Western Maharashtra

Source: TH

Why in News?

A new ecological study published in People and Nature, a journal of the British Ecological Society, has shown that the savannas of western Maharashtra are ancient ecosystems, not degraded or deforested landscapes.

The study uses medieval Marathi literature, oral traditions, archival records, and ecological evidence to trace open tree–grass savanna landscapes back at least 750 years, well before colonial-era timber extraction. It challenges the dominant policy narrative that treats savannas as degraded forests and calls for distinct conservation approaches that respect both biodiversity and local cultural histories.

What are Savannas?

• Mixed tree–grass ecosystems with:
  • Open canopies
  • Seasonal drought
  • Strong fire–grazing interactions
• Dominated by thorny trees, drought-adapted shrubs, perennial grasses, and browsing-resilient species.

Savannas vs Forests (Conceptual Difference)

• Savannas:
  • Fire- and grazing-maintained
  • Low tree density
  • Grass-dominated systems
• Closed Forests:
  • Dense canopy
  • Shade-tolerant species
  • Fire-sensitive ecology

Indian Ecological Terminology (Historical)

• vana / jāgala → wild, open, drier landscapes (scrub, savanna, grasslands)
• anūpa → wetter areas, marshes, and closed forests
  Modern policy often misinterprets vana as only “dense forest”, leading to misclassification of savannas.

Types of Savannas in Maharashtra

• Fine-leaf savannas:
  • Drier belts (≤ 1000 mm rainfall)
• Broadleaf savannas:
  • Wetter belts (≥ 700 mm rainfall)
• Both coexist in the 700–1000 mm rainfall transition zone.

8. Market Access Support (MAS) Scheme

Source: PIB

Context

The Government of India has launched a ₹4,531 crore Market Access Support (MAS) scheme for a six-year period (FY 2025–26 to FY 2030–31) to strengthen the global reach, visibility, and competitiveness of Indian exporters through structured, outcome-oriented interventions.

The scheme was unveiled by the Department of Commerce and forms part of the broader ₹25,060 crore Export Promotion Mission, approved by the Union Cabinet in November 2025.

About Market Access Support (MAS)

• MAS is implemented under the Niryat Disha sub-scheme of the Export Promotion Mission (EPM).
• It represents a shift towards structured, outcome-driven export promotion, focusing on buyer connectivity, visibility of Indian products, and entry into priority and emerging markets.
• Ministry: Ministry of Commerce and Industry, Government of India.

Implementing Ministries & Institutions

• Lead Ministry: Ministry of Commerce and Industry
• Jointly implemented by:
  • Department of Commerce
  • Ministry of MSME
  • Ministry of Finance
• In coordination with: Indian Missions abroad, Export Promotion Councils (EPCs), Commodity Boards, and industry associations

What MAS Provides

Under the MAS framework, the government will offer financial and institutional support for:

• Buyer–Seller Meets (BSMs)
• Participation in international trade fairs and exhibitions
• Mega reverse BSMs hosted in India
• Trade delegations to targeted export destinations

Additional features include:

• A 3–5 year rolling calendar of major market-access events for advance planning
• Mandatory online feedback from exporters to assess buyer quality, leads generated, and market relevance
• Continuous refinement of guidelines based on data-led evaluation
• All processes—event listings, proposals, approvals, onboarding, fund release, and monitoring—will be routed through the government’s trade portal trade.gov.in.

MSME-Centric Design

• Minimum 35% MSME participation mandated for supported events
• Focus on new geographies and smaller markets to diversify India’s export base
• Rationalised financial ceilings and cost-sharing norms
• Partial airfare support for exporters with turnover up to ₹75 lakh in the previous year

Understanding the Export Promotion Mission (EPM)

• Total Outlay: ₹25,060 crore (FY26–FY31)
• Implemented jointly by:
  • Department of Commerce
  • Ministry of MSME
  • Ministry of Finance
• Two sub-schemes:
  • Niryat Protsahan – Trade finance & credit support (₹10,400 crore)
  • Niryat Disha – Non-financial enablers like branding, logistics, compliance & market access (₹14,660 crore)
• Nodal Agency: Directorate General of Foreign Trade
• Priority sectors:
  • Textiles
  • Leather
  • Gems & jewellery
  • Engineering goods
  • Marine products

Banking and Finance

1. Financial Stability Report (FSR), December 2025

Source: Mint

Context

The Reserve Bank of India released the December 2025 edition of the Financial Stability Report (FSR) on 31 December 2025, warning that near-term risks to India’s economy and financial system may arise from global geopolitical and trade-related uncertainties.

About the Financial Stability Report (FSR)

• A half-yearly publication of the RBI
• Reflects the collective assessment of all financial sector regulators under the Financial Stability and Development Council (FSDC) Sub-Committee
• Evaluates current and emerging risks to India’s financial stability

Key Highlights of FSR – December 2025

1. Global Macrofinancial Risks

• Global growth remains resilient, supported by:
  • Fiscal measures
  • Front-loaded trade
  • Strong investment in artificial intelligence (AI)
• Downside risks persist due to:
  • High public debt
  • Elevated policy uncertainty
  • Risk of sharp market corrections
• RBI cautioned that:
  • Excess liquidity is fuelling risk-on sentiment
  • A sharp correction—especially if AI optimism fades—could spill over due to rising interconnectedness of financial markets

2. Domestic Macrofinancial Risks

• Indian economy continues to grow, driven by:
  • Strong domestic demand
  • Benign inflation
  • Fiscal consolidation and prudent macroeconomic policies
• Near-term risks stem from:
  • Global geopolitical tensions
  • Trade disruptions impacting exchange rates, exports, earnings, and foreign investment
• Overall, the domestic financial system remains sound, supported by:
  • Strong balance sheets
  • Easy financial conditions
  • Low market volatility

3. Financial Institutions’ Health

• Scheduled Commercial Banks (SCBs):
  • Strong capital adequacy and liquidity buffers
  • Improved asset quality and profitability
  • Stress tests show ability to withstand severe adverse scenarios while remaining above regulatory capital norms
• Urban Cooperative Banks (UCBs):
  • Largely healthy with sound capital buffers
  • Profitability remains strong despite softer net interest margins
• Non-Banking Financial Companies (NBFCs):
  • Improving asset quality
  • Stable profitability
• Mutual Funds & Clearing Corporations:
  • Stress tests confirm resilience to adverse shocks
• Insurance Sector:
  • Continues to display balance sheet resilience
  • Solvency ratios remain above minimum regulatory thresholds

4. Regulatory and Supervisory Initiatives

• Financial regulators are:
  • Strengthening governance and accountability
  • Enhancing customer and investor protection
  • Improving ease of doing business
• RBI highlighted efforts to:
  • Reorganise regulatory instructions
  • Improve clarity and accessibility
  • Reduce compliance burden for regulated entities

Overall Assessment

The December 2025 FSR reaffirms that India’s financial system is resilient and well-capitalised, even as global uncertainties and market vulnerabilities rise. The RBI, however, stresses the need for continued vigilance amid external shocks.

2. Banks Allowed to Set Up Their Own Pension Funds under NPS

Source: TH

Context

India’s pension regulator, the Pension Fund Regulatory and Development Authority (PFRDA), has permitted banks to sponsor and independently set up pension funds to manage assets under the National Pension System (NPS). The move aims to enhance competition, efficiency, and depth in India’s pension ecosystem.

What Has Changed?

• PFRDA has granted in-principle approval for banks to act as pension fund sponsors under NPS.
• This approval is subject to eligibility norms aligned with RBI guidelines.
• Until now, banks primarily functioned as Points of Presence (PoPs)—handling subscriber registration, contributions, and servicing, but not fund management.

Eligibility Conditions for Banks

Banks seeking to sponsor pension funds must meet criteria related to:

• Net worth
• Market capitalisation
• Prudential soundness and regulatory compliance

These safeguards ensure that only financially strong and well-governed banks enter pension fund management.

Current NPS Landscape

• PFRDA oversees pension assets worth over USD 177 billion.
• There are currently 10 registered pension fund managers under NPS.
• Some existing pension funds already have indirect links to banks and other financial institutions, but this reform allows direct bank sponsorship.

Part of Broader Pension Reforms

This decision fits into a series of recent reforms aimed at modernising and diversifying NPS investments:

Expanded Investment Options (Dec 2024)

• NPS subscribers allowed to invest in:
  • Gold and silver Exchange-Traded Funds (ETFs)
  • Nifty 50 index
  • Alternative Investment Funds (AIFs)

Fee Structure Revision

• Investment Management Fee (IMF) for pension funds revised
• New fee structure to take effect from April 1, 2026

Governance Strengthening

• Three new trustees appointed to the NPS Trust Board
• Includes Dinesh Kumar Khara, former Chairman of State Bank of India

3. Government Notifies Rules to Enable 100% FDI in Insurance Sector

Source: ET

Context

The Government of India has notified the final rules enabling 100% Foreign Direct Investment (FDI) in the insurance sector, marking a major reform aimed at attracting global capital and enhancing ease of doing business.

The rules were notified by the Ministry of Finance following parliamentary approval of the amended insurance law during the Winter Session and came into force on December 30, 2025, upon publication in the Official Gazette.

What Has Changed?

1. Board & Management Composition Relaxed

• Earlier requirement:
  • Majority of directors and key management personnel had to be Indian residents
• Revised rule:
  • This condition has been removed for insurance companies with foreign investment

2. Indian Leadership Safeguard Retained

• At least one key leadership position must be held by a Resident Indian citizen:
  • Chairperson, Chief Executive Officer (CEO), or
  • Managing Director (MD)

This ensures Indian oversight at the strategic level, even with full foreign ownership.

Legal & Policy Background

• The rules operationalise the new Insurance Amendment Law, which:
  • Was passed by Parliament
  • Received Presidential assent
  • Was notified after stakeholder consultations on the draft rules issued in August 2025
• The reform aligns with the government’s broader push for:
  • Liberalisation of the financial sector
  • Ease of doing business
  • Deeper insurance penetration

4. KYC Rules Eased for Company Directors

Context

The Ministry of Corporate Affairs (MCA) has announced a major compliance relief for company directors, allowing them to file their Know Your Customer (KYC) details once every three years instead of annually.
The relaxed norms will come into effect from March 31.

What Has Changed?

• Earlier:
  • Company directors were required to file KYC annually
• Now:
  • KYC filing required once in three years
• Applies to directors governed under Section 12A of the Companies (Appointment & Qualification of Directors) Rules, 2014

This move significantly reduces the regulatory and compliance burden for hundreds of thousands of directors.

What is KYC?

Know Your Customer (KYC) is a regulatory process through which financial institutions verify the identity, address, and financial profile of customers before or while providing services. It aims to prevent money laundering, terrorist financing, fraud, and identity theft.

Who mandates KYC in India?

• KYC norms are prescribed and supervised by the Reserve Bank of India
• Also followed by other regulators like SEBI and IRDAI for their respective entities

What is CKYC?

Central Know Your Customer (CKYC) is a centralised KYC system in India that allows a customer to complete KYC once and use it across multiple financial institutions.

Who manages CKYC?

• CKYC Registry is managed by Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI)
• Implemented under the Prevention of Money Laundering Act (PMLA), 2002

Agriculture

1. Climate-Resilient Agriculture (CRA)

Source: TH

Context

India’s food system stands at a crossroads. Climate change is no longer a distant risk—it is already reshaping farming through erratic rainfall, frequent heatwaves, declining soil health, water stress, and rising pest pressures. For a country that must feed a rapidly growing population, sustaining agricultural productivity under these conditions requires a fundamental shift. This is where Climate-Resilient Agriculture (CRA) becomes essential.

What Is Climate-Resilient Agriculture?

Climate-resilient agriculture refers to farming systems that anticipate, absorb, and adapt to climate shocks, while maintaining or improving productivity and environmental sustainability.

CRA integrates:

• Biotechnology tools:
  • Biofertilizers and biopesticides to reduce chemical dependence
  • Soil-microbiome analysis to restore soil health
  • Genome-edited crops designed for tolerance to drought, heat, salinity, and pests
• Digital and AI technologies:
  • AI-driven analytics that combine weather, soil, and crop data
  • Precision irrigation, pest forecasting, and yield prediction
  • Locally tailored advisories instead of one-size-fits-all practices

The goal is not just climate adaptation, but productive, low-input, and knowledge-intensive agriculture.

Why India Specifically Needs CRA

• India remains a predominantly agricultural nation, with livelihoods of millions tied to farming.
• Around 51% of India’s net sown area is rainfed, yet it produces nearly 40% of the country’s food—making it highly vulnerable to rainfall variability.
• Conventional input-intensive farming models are increasingly fragile under climate stress.
• Climate volatility threatens food security, farmer incomes, and rural stability.

CRA offers India a pathway to protect yields, reduce ecological damage, and stabilise farm incomes in a warming world.

Where Does India Stand Today?

Institutional Efforts

• In 2011, Indian Council of Agricultural Research (ICAR) launched the National Innovations in Climate Resilient Agriculture (NICRA) programme.
  • Demonstrated location-specific practices such as:
    • System of Rice Intensification (SRI)
    • Aerobic and direct-seeded rice
    • Zero-till wheat sowing
    • Climate-resilient crop varieties
    • In-situ residue management
  • Implemented across 448 climate-resilient villages
• The National Mission for Sustainable Agriculture focuses on:
  • Rainfed agriculture
  • Water-use efficiency
  • Soil health management
  • Integrated farming systems

Policy & Market Developments

• The BioE3 policy positions CRA as a priority area for biotechnology-led solutions.
• Several bio-inputs are already commercialised.
• India’s agritech ecosystem is expanding rapidly, offering:
  • AI-based crop advisories
  • Precision irrigation
  • Crop health monitoring and yield forecasting

Key Gaps and Risks

Despite progress, scaling CRA faces serious constraints:

• Low adoption among small and marginal farmers due to limited awareness, access, and affordability
• Quality inconsistencies in biofertilizers and biopesticides, eroding farmer trust
• Slow rollout of climate-resilient and genome-edited seeds, with uneven State-wise adoption
• A persistent digital divide, limiting reach of AI-based tools
• Continuing soil degradation, groundwater depletion, and climate volatility
• Fragmented policy coordination, diluting impact

Without addressing these, climate impacts may outpace adaptation efforts.

The Way Forward: Why a National CRA Roadmap Is Needed

India now needs a coherent, integrated national roadmap for climate-resilient agriculture, rather than isolated schemes.

Key priorities include:

• Accelerating R&D and deployment of climate-tolerant and genome-edited crops
• Strengthening quality standards and supply chains for bio-inputs
• Expanding digital infrastructure and climate advisories for small farmers
• Providing financial incentives, climate insurance, and affordable credit during transition
• Aligning biotechnology, climate adaptation, and agricultural policy under a single strategic framework—anchored in the BioE3 vision

2. Government’s New Seed Push to Revive Cotton and Boost Farm Productivity

Source: Mint

Context

On January 1, 2026, the Government of India unveiled a major agricultural productivity drive by releasing around 185 new high-yielding seed varieties and hybrids across a wide range of crops. The move aims to improve seed quality, raise farm productivity, and strengthen food security, with a special focus on reviving cotton yields.

What Has Been Announced?

• ~185 new seed varieties and hybrids released for cultivation and commercial sale
• Covers key crops:
  • Rice
  • Maize
  • Cotton
  • Millets
  • Pulses
  • Oilseeds
  • Sugarcane

Key Feature

• All newly released cotton seeds remain Bt-II hybrids
  • Bt-II refers to second-generation Bt cotton, containing Bacillus thuringiensis genes for pest resistance
• Indicates policy continuity, with no introduction of new biotech traits

India remains the world’s second-largest cotton producer, after China, but has faced stagnant yields, pest pressures, and rising cultivation costs in recent years.

What are Bt-II hybrids?

Bt-II hybrids are genetically modified (GM) cotton hybrids that contain two insect-resistant genes (Cry1Ac and Cry2Ab) derived from the bacterium Bacillus thuringiensis (Bt). These genes enable the cotton plant to produce toxins that kill bollworm pests, especially the American bollworm.

Why Bt-II? (Bt-I vs Bt-II)

• Bt-I hybrids:
  • Contain only one gene (Cry1Ac)
  • Effective initially but pests developed resistance over time
• Bt-II hybrids:
  • Contain two genes (Cry1Ac + Cry2Ab)
  • Provide broader and more durable resistance to bollworms

3. Union Government Launches Integrated e-Bill System for Fertiliser Subsidies

Source: BL

Context

The Union Government has launched an integrated e-Bill System to digitally process fertiliser subsidies worth around ₹2 lakh crore, marking a major step towards end-to-end digital governance in subsidy administration.

About the e-Bill System for Fertiliser Subsidies

The e-Bill System is a completely digital, end-to-end platform for:

• Submission
• Processing
• Tracking
• Payment

of fertiliser subsidy bills.
It replaces the earlier paper-based and manual workflow, reducing delays and procedural inefficiencies.

Nodal Ministry

• Ministry of Chemicals and Fertilizers

Objectives

• Ensure timely, transparent, and accountable disbursal of fertiliser subsidies
• Improve financial discipline and expenditure monitoring
• Strengthen auditability and compliance through digital trails
• Enhance overall efficiency in subsidy management

Key Features of the e-Bill System

• End-to-end digital workflow
  • Eliminates physical movement of subsidy bills and manual scrutiny
• Online claim submission
  • Fertiliser companies can submit subsidy claims digitally and track payment status in real time
• Real-time tracking & centralised reporting
  • Enables continuous monitoring of subsidy expenditure at the national level
• Built-in financial controls
  • Automatic validation of claims against predefined norms
  • Enforces rule-based compliance before payments are cleared
• Tamper-proof audit trail
  • Every action is digitally logged, supporting audits and accountability
• FIFO (First-In-First-Out) processing
  • Ensures uniform, predictable, and non-discretionary bill clearance
• Faster payments
  • Facilitates timely release of weekly fertiliser subsidy payments, improving liquidity for fertiliser companies

Facts To Remember

1. World rapid and blitz

Of the 14 medals on offer at the World rapid and blitz chess championships in Doha, India claimed three. That is not bad, but last year India had a title — Koneru Humpy had won the rapid championship, and this time around she had to settle for bronze.

2. R.K. Shriramkumar receives Sangita Kalanidhi award

Hindustani violinist N. Rajam advised students of music to pursue their practice without interruption, saying it would keep opening doors they never expected.

3. Air Marshal Nagesh Kapoor takes charge as Vice Chief of Air Staff

Air Marshal Nagesh Kapoor assumed charge as the Vice Chief of the Air Staff, succeeding Air Marshal Narmdeshwar Tiwari, who superannuated after 40 years of service.

4. First Vande Bharat sleeper train to ply between Guwahati and Kolkata

Prime Minister Narendra Modi will flag off the first Vande Bharat sleeper train later this month, Railway Minister Ashwini Vaishnaw said. It will ply between Guwahati and Kolkata.

5. Centre Imposes Safeguard Duty on Steel Imports for Three Years

The Government of India has imposed a safeguard duty of up to 12% on the import of select steel products for a period of three years, aiming to protect the domestic steel industry from a surge in low-priced imports, particularly from China and a few other countries.

6. Credit growth nears 12%, deposit slows to 9.35%

Credit growth in the period ended December 15 expanded to nearly 12 per centyear-on-year (Y-o-Y), while deposit growth slowed further to 9.35 per cent, according to revised data released by the Reserve Bank of India (RBI).

7. UPI Ends 2025 on a High with Record 21.6 Billion Transactions

India’s flagship digital payments system, the Unified Payments Interface (UPI), closed December 2025 on a record-breaking note, underscoring the deepening shift towards cashless transactions across the country. According to data released by the National Payments Corporation of India (NPCI), UPI processed 21.63 billion transactions in December, up from 20.47 billion in November, marking a new all-time high.

8. Goa name its new district Kushavati

Goa’s third district will be named Kushavati, deriving its name from Kushavati river that flows through southern Goa.

9. PM Modi to inaugurate Grand International Exposition of Sacred Piprahwa Relics in New Delhi

Prime Minister Narendra Modi will inaugurate the Grand International Exposition of Sacred Piprahwa Relics related to Bhagwan Buddha, the Light and the Lotus: Relics of the Awakened One at Rai Pithora Cultural Complex in Delhi tomorrow.

10. Chief coach Sjoerd Marijne appointed for Indian women’s hockey team

Sjoerd Marijne has been appointed as the chief coach of the Indian women’s hockey team. This announcement was made by Hockey India today. The Dutchman had led Indian women to a historic fourth-place finish at the 2020 Tokyo Olympics, which was their second appearance at the quadrennial event in more than 36 years.

11. Centre approves 22 new projects under Electronics Components Manufacturing Scheme worth ₹41,863 crore

Centre has approved 22 new proposals under the third tranche of the Electronics Components Manufacturing Scheme, involving a projected investment of 41 thousand 863 crore rupees. These approvals cover the manufacturing of 11 target-segment products, including mobile manufacturing, telecom, consumer electronics, strategic electronics, automotive, and IT hardware.

12. Ecuador President Daniel Noboa declares 60-day emergency amid surge in criminal violence

Ecuadorian President Daniel Noboa has declared a new 60-day state of emergency in nine provinces and three municipalities. This comes due to an increase in criminal violence, which has caused serious internal commotion. The President said the 60-day validity of the decree aims to contain and reduce high-intensity violence, neutralise ongoing or imminent threats, and dismantle criminal structures.

13. NHAI discontinues Know Your Vehicle cards for new car FASTag issuances

National Highways Authority of India (NHAI) has announced discontinuation of Know Your Vehicle (KYV) cards for cars for all new FASTag issuances with effect from 1st of next month.

14. India International Youth Sailing Championship 2026 to take place at Chennai Port

The 11th India International Youth Sailing Championship 2026 will officially take place from 4th to 10th January at the Chennai Port. The Championship was launched in Chennai yesterday.

15. Repealing and Amending Act 2025 passed to simplify legal framework

The Repealing and Amending Act, 2025, was passed in the recently concluded winter session of the Parliament. The Act aims to simplify the country’s legal framework by repealing obsolete and redundant laws and making targeted amendments to select existing statutes.

16. India’s first bullet train to be launched on August 15, 2027 between Mumbai and Ahmedabad

Railways Minister Ashwini Vaishnaw today announced that India is likely to receive its first Bullet Train on 15th August 2027. Briefing media in New Delhi today, the Minister said India’s first bullet train project is under construction between Ahmedabad and Mumbai.

Daily Current Affairs Quiz
03 January, 2026

International Affairs

1. U.S. forces capture Maduro after strikes on Venezuela

Source: TOI

Context

US President Donald Trump confirmed US carried out large scale military strikes against Venzeula and captured Venezuelan President Nicolas Maduro and his wife.

Venezuela

Basics

• Capital: Caracas
• Region: Northern South America
• Currency: Bolívar (with widespread dollar use)
• Political system: Presidential republic

Neighbouring Countries of Venezuela

• Venezuela has a long northern coastline along the Caribbean Sea, which places it close to Caribbean island nations, though these are not land neighbours.
• The country is strategically positioned between the Andes region, the Amazon Basin, and the Caribbean.
• Colombia – to the west
• Brazil – to the south
• Guyana – to the east

Leadership & Politics

• President: Nicolás Maduro
• Long-running political crisis marked by disputed elections, opposition crackdowns, and international pressure.
• Periodic negotiations with opposition and external actors over sanctions relief and electoral guarantees.

Economy

• Oil-dominated: Holds one of the world’s largest proven crude reserves (Orinoco Belt).
• Challenges: Years of mismanagement, sanctions, and underinvestment led to hyperinflation (since eased), output collapse, and infrastructure decay.
• Recent trend: Modest stabilization via partial dollarization, selective

2. Asteroid Bennu and the Origins of Life

Context

New scientific studies of samples brought back from asteroid Bennu suggest that many of the fundamental chemical ingredients required for life on Earth may have originated in space, lending strong support to theories of extraterrestrial contributions to life’s emergence.

Key Discovery

• Samples from asteroid Bennu, collected by OSIRIS-REx, contain:
  • Sugars such as ribose (RNA sugar) and glucose
  • Amino acids
  • All five nucleobases found in DNA and RNA
• This confirms the complete molecular inventory required for life on a single asteroid.

About the Mission

• NASA’s OSIRIS-REx spacecraft collected samples from Bennu in 2020.
• The sample capsule returned to Earth in September 2023.
• Since then, scientists in the U.S. and Japan have been analysing the material.

National Affairs

1. Indian Army Procures Suryastra Long-Range Rocket Launcher

Source: TH

Context

Under emergency procurement (EP) powers, the Indian Army has signed a ₹293 crore contract with NIBE Limited, in collaboration with Israel, for the supply of an advanced long-range rocket launcher system, significantly boosting India’s deep-strike artillery capabilities.

About the Weapon System – Suryastra

• India’s first Made-in-India universal multi-calibre rocket launcher
• Strike Ranges:
  • Rockets: 150 km & 300 km
  • Loitering munitions: up to 100 km
• Accuracy: Circular Error Probable (CEP) < 5 metres in trials
• Capabilities:
  • Precision surface-to-surface strikes
  • Engagement of multiple targets simultaneously
  • Integration of multiple rocket types from a single launcher

2. ASUSE (Annual Survey of Unincorporated Sector Enterprises)

Context

In a significant step towards statistical transparency and data literacy, the Ministry of Statistics and Programme Implementation has released its first-ever reader-friendly guide to help users better understand official surveys conducted in India.

About Know Your Survey: A User Guide to ASUSE

• A first-of-its-kind publication released by the National Statistics Office.
• Designed to demystify ASUSE (Annual Survey of Unincorporated Sector Enterprises) for data users, researchers, policymakers, and respondents.
• Uses simple, non-technical language, moving away from dense statistical jargon traditionally associated with official surveys.

Objectives

• Improve public trust in official data.
• Enable informed use of survey data by academics, analysts, and policymakers.
• Address misconceptions and doubts among survey respondents.
• Align Indian statistical communication with global best practices.

3. PM Pays Tribute to Savitribai Phule

Source: News on Air

Context

On the birth anniversary of Savitribai Phule, the Prime Minister paid homage to her enduring legacy, recalling her lifelong commitment to education, equality, and social transformation—values that continue to shape India’s social justice discourse.

About Savitribai Phule (1831–1897)

Who She Was

• A pioneering social reformer, poet, and educator, widely regarded as India’s first female teacher of modern education.
• A foundational figure of Indian feminism and anti-caste reform.

Early Life

• Born in Naigaon (present-day Maharashtra); married in childhood to Jyotirao Phule.
• Relocated to Pune, where exposure to learning ignited her mission to reform society through education.

Key Contributions

• 1848: Co-founded India’s first girls’ school at Bhidewada, Pune.
• Played a central role in nurturing the Satyashodhak Samaj, promoting equality and rationalism.
• Popularised Satyashodhak marriages—simple ceremonies without priests or dowry.

4. Pro-Active Governance and Timely Implementation (PRAGATI)

Context

Following the 50th review meeting of PRAGATI, the Cabinet Secretary highlighted that land acquisition has emerged as the single largest cause of infrastructure project delays, accounting for around 35% of stalled or delayed projects. This underscores persistent Centre–State and inter-departmental coordination challenges in India’s infrastructure push.

About Pro-Active Governance and Timely Implementation (PRAGATI)

What it is

• PRAGATI is a centralised, ICT-enabled governance platform for:
  • Grievance redressal
  • Programme implementation
  • Monitoring of projects of national importance
• Enables real-time review and resolution of critical bottlenecks.

Launched

• 25 March 2015, by the Government of India under the leadership of the Prime Minister.

Objectives

• Ensure timely implementation of infrastructure and development projects.
• Resolve inter-ministerial and Centre–State coordination issues.
• Promote e-transparency, accountability, and outcome-based governance.

5. Cetacean Morbillivirus Detected in Arctic Waters

Source: IE

Context

Scientists have, for the first time, detected cetacean morbillivirus (CeMV) in Arctic waters, using drones to collect whale breath (blow) samples. This marks a major advance in non-invasive wildlife disease surveillance and signals changing disease dynamics in polar ecosystems.

About Cetacean Morbillivirus (CeMV)

What it is

• A highly infectious viral disease affecting marine mammals such as whales, dolphins, porpoises, and pilot whales.
• Belongs to the morbillivirus group, closely related to measles (humans) and canine distemper (dogs).

Where it is found

• Earlier reported in the North Atlantic, Mediterranean Sea, and Pacific Ocean.
• New detection in Arctic waters, particularly among humpback and sperm whales, indicates a geographical expansion of the virus.

Origin

• First identified in 1987.
• Believed to have evolved from terrestrial morbilliviruses and later adapted to marine mammals.
• Spreads mainly through close contact and respiratory droplets.

6. Electronics Components Manufacturing Scheme (ECMS)

Context

The Ministry of Electronics and Information Technology has approved 22 additional projects under the Electronics Components Manufacturing Scheme (ECMS), involving a fresh investment of ₹41,863 crore. This marks a major push to deepen India’s electronics manufacturing ecosystem beyond final assembly.

About the Electronics Components Manufacturing Scheme (ECMS)

What it is

• Electronics Components Manufacturing Scheme is a flagship incentive programme aimed at boosting domestic manufacturing of electronic components, sub-assemblies, and capital equipment.
• Seeks to reduce India’s heavy import dependence in electronics and strengthen supply-chain resilience.

Nodal Ministry

• Implemented by the Ministry of Electronics and Information Technology (MeitY).

Launch & Outlay

• Approved by the Union Cabinet in 2024.
• Total financial outlay: ₹22,919 crore.

Tenure

• Turnover-linked incentives: 6 years (including a 1-year gestation period).
• Capex-based incentives: 5 years.

7. Skilling for AI Readiness (SOAR)

Context

On January 1, 2026, the Droupadi Murmu launched a series of initiatives under Skilling for AI Readiness (SOAR)—a key pillar of the Skill India Mission—at an event organised by the Ministry of Skill Development and Entrepreneurship at the Rashtrapati Bhavan Cultural Centre.

Key Launches & Announcements

1. #SkillTheNation Challenge

• A nationwide AI skilling initiative launched under SOAR.
• Focuses on AI awareness, learning, certification, and real-world application.
• Targets learners across urban, semi-urban, and rural India, ensuring inclusivity.

2. IGNOU Centre at Rairangpur, Odisha

• Virtually inaugurated a new Indira Gandhi National Open University centre.
• Located in a tribal-dominated region of northern Odisha.
• Aims to expand access to:
  • Distance education
  • Vocational training
  • Skill-oriented programmes
• Especially benefits youth from rural and underserved areas.

3. Conferment of AI Certificates

• The President awarded AI certificates to:
  • Students
  • Members of Parliament (MPs)
• Recipients completed AI learning modules under the SOAR initiative, signalling leadership-by-example in digital skilling.

About Skilling for AI Readiness (SOAR)

• An integral component of the Skill India Mission focused on preparing India’s workforce for the AI-driven economy.
• Emphasises AI literacy, ethical use, and practical problem-solving.

Learning Model & Partnerships

• Blended delivery: Online and offline modes.
• Implemented in collaboration with IGNOU and Skill Centres nationwide.
• Offers multi-level courses—from beginner to advanced.

Aims & Significance

• Build a future-ready, inclusive workforce aligned with emerging technologies.
• Democratise access to AI education beyond metros.
• Encourage innovation and entrepreneurship through applied AI solutions.
• Strengthen India’s position in the global digital and AI talent landscape.

8. MoSPI Launches New Logo & Mascot ‘Sankhyiki’

Source: PIB

Context

On 1 January 2026, the Ministry of Statistics and Programme Implementation (MoSPI) unveiled its new logo and official mascot ‘Sankhyiki’ in New Delhi, signalling a renewed effort to modernise its institutional identity and strengthen public engagement with official statistics.

Key Highlights

• New Logo:
  • Reflects MoSPI’s evolving role in a data-driven governance ecosystem.
  • Emphasises credibility, transparency, and relevance of official statistics in policymaking.
• Mascot – ‘Sankhyiki’:
  • Derived from the Sanskrit word for statistics/data, symbolising accuracy, inclusiveness, and scientific rigour.
  • Designed as a public-facing ambassador to simplify complex statistical concepts for citizens, students, and data users.

Objectives of the Initiative

• Enhance public outreach and statistical literacy.
• Make official data more approachable, relatable, and user-friendly.
• Reinforce trust in India’s official statistical system amid growing demand for transparent and reliable data.

9. India’s Silk Value Chain to Cross ₹1.1 Lakh Crore by 2030

Context

India is aiming to significantly scale up its sericulture sector, positioning silk as a high-value agricultural and export commodity through productivity enhancement, technological adoption, and wider geographical spread.

Key Announcement

• The Central Silk Board has set a target to double India’s silk value chain from ₹55,000 crore to over ₹1,10,000 crore by 2030.
• The Board functions under the Ministry of Textiles.

Central Silk Board (CSB)

What it is

• The apex statutory body for the overall development of sericulture and the silk industry in India.
• Functions under the Ministry of Textiles.

Established

• 1948 (by an Act of Parliament).

Headquarters

• Bengaluru, Karnataka.

Government Initiatives

• Support through schemes such as Silk Samagra.
• Increased participation of States in the silk economy.
• Emphasis on diversification of silk applications beyond traditional uses.

Banking and Finance

1. Government Rolls Out ₹7,300 crore Schemes to Ease MSME Financing

Source: BS

Context

To improve access to affordable credit for export-oriented MSMEs, the government has rolled out new credit-linked support schemes, aimed at strengthening liquidity, boosting exports, and enhancing bank lending.

Key Announcement

• The Government of India has launched two schemes worth ₹7,300 crore to ease financing constraints for Micro, Small and Medium Enterprises (MSMEs).
• The schemes are part of a broader effort to support export growth and MSME competitiveness.

Scheme 1: Collateral Support for Export Credit

• Total outlay: ₹2,114 crore
• Objective:
  • Provide credit-guarantee support for export-linked working capital loans to MSME exporters
• Key Features:
  • Collateral guarantee up to ₹10 crore per firm
  • Guarantee coverage:
    • Micro & Small exporters: up to 85%
    • Medium exporters: up to 65%
• Nature:
  • Designed to complement existing credit guarantee mechanisms
  • Aims to increase bank lending to export-oriented MSMEs
• Rollout:
  • Detailed guidelines to be notified by CGTMSE
  • Initial pilot phase, followed by integration into a revised export promotion framework

Scheme 2: Credit Support under Export Promotion Framework

• Part of the broader Export Promotion Mission measures
• Detailed operational guidelines to be issued by the RBI
• Focus:
  • Lowering the cost of credit
  • Improving liquidity access for MSMEs engaged in exports

2. Government Panel Reviews Foreign Banks’ Plans to Open Branches in India

Source: BS

Context

India is reviewing proposals from foreign banks to expand their presence amid a calibrated liberalisation of the financial sector and evolving FDI and trade commitments.

About the IDC Mechanism

• DFS is the nodal department for evaluating proposals from foreign and domestic banks.
• Before finalising decisions, the IDC consults:
  • Ministry of Home Affairs – security perspective
  • Ministry of External Affairs – political and diplomatic perspective
  • Department of Commerce – economic and trade perspective

Eligibility to Become a Foreign Bank in India

Foreign banks are permitted to operate in India under a regulated and calibrated framework to balance financial openness with systemic stability. The entire process is governed by the Reserve Bank of India (RBI) in consultation with the Government of India.

Who qualifies as a foreign bank?

A foreign bank is a banking institution that:

• Is incorporated outside India
• Holds a valid banking licence in its home country
• Is subject to effective regulation and supervision by the home country regulator

Capital Requirements

• Branch Mode: Assigned capital as specified by RBI
• WOS Mode: Minimum ₹5 billion paid-up capital, with additional capital linked to expansion

Modes of Entry into India

Foreign banks can operate in India through three routes:

1. Branch Mode
   • Operates as an extension of the parent bank
   • Can undertake full banking activities
   • More common among global banks with limited physical presence
2. Wholly Owned Subsidiary (WOS)
   • Incorporated in India as a separate legal entity
   • Greater operational freedom and near-national treatment
   • Preferred by RBI for large-scale retail operations
3. Representative (Liaison) Office
   • Only for liaison, research, and promotional work
   • No deposit-taking or lending allowed

3. SEBI Working on Technology Road Map for Stock Exchanges & MIIs

Source: BS

Context

With capital markets becoming more complex and technology-driven, the market regulator is stepping up efforts to future-proof India’s market infrastructure institutions (MIIs).

Key Development

• Securities and Exchange Board of India (SEBI) is planning to constitute a working group to develop a technology road map for Market Infrastructure Institutions (MIIs).
• The announcement was made by Tuhin Kanta Pandey, Chairman, SEBI.

About the Technology Road Map

• Applicable to MIIs such as:
  • Stock exchanges
  • Clearing corporations
  • Depositories
• The road map will outline:
  • A 5-year technology vision
  • A 10-year technology vision
• Objective:
  • Provide a structured framework for the securities market ecosystem
  • Ensure MIIs keep pace with rapidly evolving markets

Focus Areas Highlighted by SEBI

• Technology investment
• Risk management
• Cyber resilience
• Emphasis on:
  • Quality and sophistication of markets, not just scale
  • Investor protection alongside innovation

AI-Driven Regulatory Initiatives

SEBI has already deployed or is developing several artificial intelligence (AI) tools:

• AI-powered market surveillance system
  • Detects fraud and market manipulation
• AI-driven advertisement viewer
  • Monitors advertisements by asset management companies
• Disclosure monitoring tools
  • Track compliance by listed entities
• AI-driven inspection tool (under development)
  • Strengthens risk-based supervision
  • Analyses cyber audit reports
  • Identifies control gaps
  • Classifies regulated entities based on risk exposure

Sensex at 40: Broader Perspective

• Speaking at the 40th anniversary of the Sensex, Pandey noted:
  • The Sensex has mirrored India’s economic transformation over four decades.
  • Its changing composition reflects:
    • Rise of private enterprises
    • Shift from traditional industries to services, finance, and technology
    • Deeper integration with global capital markets

Agriculture

1. India Surpasses China to Become the World’s Largest Rice Producer

Source: TOI

Context

India has overtaken China to rank No. 1 globally in rice production, reflecting sustained gains from improved irrigation, high-yielding varieties, and supportive procurement policies.

Global Status

• India: World’s largest rice producer (150.18 MT)
• China: Second largest (145.28 MT)

State-wise Rice Production (2023–24)

(As per Economic Survey, Statistical Appendix)

Other major rice-producing states:
Andhra Pradesh, Punjab, Odisha, Bihar, Chhattisgarh, Tamil Nadu, Assam.

Geographical Features of Rice Production in India

1. Climate Belt

• Rice thrives in hot, humid climates.
• Hence, concentration in eastern, southern, and north-eastern India.

2. Water Geography

• Strong presence in river floodplains and deltas:
  • Ganga–Brahmaputra Plains
  • Krishna–Godavari Delta
  • Cauvery Delta
• Abundant alluvial soils and surface water support paddy cultivation.

3. Irrigation-driven Expansion

• In lower rainfall regions (e.g., Punjab, western UP), rice is sustained by canals and tube-wells.
• This boosts yields but raises groundwater depletion and water-stress concerns.

4. Terrain Adaptation

• In hilly and north-eastern regions, rice is grown using terraced cultivation, enabling controlled water flow and soil conservation.

Facts To Remember

1. Nritya Kalanidhi award conferred on Urmila Satyanarayanan

Bharatanatyam exponent Urmila Satyanarayanan was presented the Nritya Kalanidhi award at the 19th Dance Festival inaugurated at the Music Academy in the city on Saturday.

2. DoP & SIDBI Sign MoU for Verification of Informal Micro Enterprises

In December 2025, the Department of Posts (India Post) under the Ministry of Communications signed a Memorandum of Understanding (MoU) with the Small Industries Development Bank of India (SIDBI), under the Ministry of Finance, in New Delhi.

3. Union MoS Pemmasani Launches ‘Land Stack’ Pilot & GoRT

In December 2025, Chandra Sekhar Pemmasani, Union Minister of State, Ministry of Rural Development, launched the Land Stack portal, a first-of-its-kind national digital land governance initiative.

About Land Stack

• Part of the Digital India Land Record Modernisation Programme (DILRMP).
• Integrates land records, ownership, usage, valuation, and geo-spatial data.
• Enables data-driven land governance, transparency, and efficient service delivery.

4. J.P. Nadda Launches Integrated e-Bill System for Fertilizer Subsidy

On January 1, 2026, Jagat Prakash Nadda, Union Minister for Ministry of Chemicals and Fertilizers, launched an Integrated electronic (e)-Bill System at Kartavya Bhawan, New Delhi.

Objective

• Digitally process fertilizer subsidy claims worth ~₹2 lakh crore annually.

5. Kaushal Manthan concludes with finalisation of Skill Resolutions 2026

The Ministry of Skill Development and Entrepreneurship concluded the week-long Kaushal Manthan with a high-level session chaired by the Minister of State for Skill Development and Entrepreneurship, Jayant Chaudhary.

Daily Current Affairs Quiz
04 & 05 January, 2026

National Affairs

1. Pradhan Mantri Matru Vandana Yojana (PMMVY) Completes 9 Years

Context

Pradhan Mantri Matru Vandana Yojana, a flagship scheme of the government for pregnant women and lactating mothers, has completed nine years.

Pradhan Mantri Matru Vandana Yojana (PMMVY)

The Pradhan Mantri Matru Vandana Yojana (PMMVY) is a maternity benefit scheme implemented by the Government of India to provide conditional cash assistance to pregnant and lactating women for their first living child. The scheme aims to improve maternal health, nutrition, and compensate for wage loss during pregnancy and after childbirth.

• Launched: 1 January 2017
• Ministry: Ministry of Women and Child Development

Key Objectives

• Improve health and nutrition of pregnant and lactating women
• Encourage early registration of pregnancy
• Promote institutional delivery
• Ensure timely vaccination and post-natal care
• Partially compensate wage loss
• Coverage: Over 4.5 crore women enrolled; more than ₹19,000 crore disbursed
• Significance: Strengthens maternal health, nutrition, and early childcare outcomes

Cash Assistance Structure

Total benefit: ₹5,000 (Direct Benefit Transfer – DBT)

Additionally, eligible women also receive ₹1,000 under Janani Suraksha Yojana (JSY), making the total maternity benefit ₹6,000, as mandated under the National Food Security Act, 2013.

2. Electronics Component Manufacturing Scheme (ECMS)

Source: ET

Context

India is accelerating its push to strengthen domestic electronics manufacturing and reduce import dependence through targeted fiscal incentives.

Key Development

• The Ministry of Electronics and Information Technology (MeitY) has approved 22 additional projects under the Electronics Component Manufacturing Scheme (ECMS).
• Total investment committed by the approved projects: ₹41,863 crore.
• Total outlay of ECMS: ₹22,919 crore.

About the ECMS

• Objective: Promote domestic manufacturing of electronic components.
• Incentive structure:
  • Payouts linked to incremental production.
  • Additional incentives tied to employment generation.
• The scheme is time-competitive, rewarding firms that achieve production milestones early.

Beneficiaries

• The scheme supports a mix of:
  • Small and medium Indian firms, and
  • Established industry players such as Tata Electronics Pvt. Ltd..
• According to Ashwini Vaishnaw, incentives will benefit both emerging enterprises and large manufacturing heavyweights.

Key Feature

• First-to-finish incentive model:
  • Companies that complete their production roadmaps earlier will receive payouts faster.
  • Encourages speed, efficiency, and early capacity creation.

3. Export Promotion Mission (EPM)

Context

To boost exports and ease credit constraints faced by exporters—especially MSMEs—the Government has expanded the Export Promotion Mission (EPM) with additional financial support measures.

Key Developments

• The Government of India has introduced two new credit-linked schemes under the Export Promotion Mission (EPM).
• Total financial outlay: ₹5,181 crore over six years (till 2030–31).
• With this announcement, 3 out of 11 schemes under EPM have been operationalised.
• The schemes fall under the Niryat Protsahan category, aimed at reducing the cost of export credit.

Scheme 1: Interest Subvention for Pre- and Post-Shipment Export Credit

• Objective: Lower the cost of export finance for exporters.
• Coverage:
  • Pre-shipment and post-shipment rupee export credit
  • Extended by scheduled commercial banks
• Beneficiaries:
  • Eligible MSME exporters
• Implemented as per:
  • Reserve Bank of India Master Directions
• Expected Impact:
  • Improves MSME liquidity
  • Enhances export competitiveness
  • Supports India’s integration into global value chains
  • Maintains fiscal prudence

Scheme 2: Collateral Support for Export Credit

• Objective: Enable MSME exporters to access bank credit despite limited collateral or third-party guarantees.
• Implementation Agency:
  • Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
• Nature:
  • Implemented on a pilot basis
  • Applicable to export-linked working capital loans
• Eligibility:
  • MSME exporters dealing in notified tariff lines
• Guarantee Coverage:
  • Micro & Small exporters: up to 85%
  • Medium exporters: up to 65%

4. Rah-Veer (Good Samaritan) Scheme

Source: PIB

Context

The Ministry of Road Transport and Highways (MoRTH) has reiterated the protections and incentives available under the Rah-Veer (Good Samaritan) Scheme to encourage bystanders to assist road accident victims without fear of legal or procedural harassment.

About Rah-Veer

Rah-Veer is a Good Samaritan initiative notified under Section 134A of the Motor Vehicles (Amendment) Act, 2019, aimed at protecting citizens who help road accident victims during the Golden Hour—the critical first hour after an accident when timely medical care can save lives.

Key Features

1. Legal Protection

• No civil or criminal liability for helpers acting in good faith.
• Protection from unnecessary police or legal proceedings.

2. Right to Anonymity

• Rah-Veers cannot be compelled to disclose personal details.
• Cannot be forced to become witnesses in court.

3. Limited Police Interaction

• Only one voluntary statement, if the helper chooses.
• Statement to be recorded at a time and place convenient to the Rah-Veer.

4. Hospital Safeguards

• Hospitals must provide immediate emergency treatment.
• No demand for payment or paperwork from the helper.
• Mandatory acknowledgement receipt to the Rah-Veer.

5. Recognition & Incentives

• Incentive available up to five times in a year for repeat acts of assistance.
• ₹25,000 cash reward
• Certificate of Appreciation

5. Olive Ridley Sea Turtles

Context

With the nesting season underway, wildlife authorities have established sea turtle hatcheries along the Chennai coast to safeguard eggs and enhance hatchling survival, especially from threats like predation, artificial lighting, and human disturbance.

What is it?

The Olive Ridley sea turtle is among the smallest and most abundant sea turtle species, named after its olive-green, heart-shaped carapace (shell). It is globally renowned for its spectacular mass nesting phenomenon known as arribada, during which thousands of females nest simultaneously on selected beaches.

Habitat and Distribution

Global Range

• Tropical waters of the Indian, Pacific, and Atlantic Oceans

Indian Context

• Major mass nesting sites along the Odisha coast:
  • Gahirmatha
  • Rushikulya
  • Devi River mouth
• Solitary nesting occurs along:
  • Tamil Nadu (including Chennai coast)
  • Andhra Pradesh
  • Andaman and Nicobar Islands

Marine Habitat

• Primarily pelagic (open ocean) species
• Migrates seasonally to sandy beaches for nesting

Conservation Status

• IUCN Red List: Vulnerable
• India (Legal Protection): Schedule I species under the Wildlife (Protection) Act, 1972

6. Suryastra Rocket System – Indian Army Induction

Context

The Indian Army has signed a ₹293-crore emergency procurement contract with NIBE Ltd., in collaboration with Elbit Systems, for the induction of the Suryastra rocket system—a long-range universal rocket launcher with strike capabilities of up to 300 km.

About Suryastra Rocket System

Suryastra is India’s first indigenous universal multi-calibre long-range rocket launcher system, designed for precision surface-to-surface strikes at 150 km and 300 km. It can integrate multiple rocket and missile types on a single launch platform, offering both saturation and precision firepower.

Origin & Technology

• Manufacturer: NIBE Ltd. (India)
• Technology Partner: Elbit Systems (Israel)
• Technology Base: Israeli PULS (Precise & Universal Launching System)
• Adaptation: Customised for Indian Army requirements under a Technology Collaboration Agreement (July 2025)

Aim of Induction

• Enhance the Army’s deep-strike and stand-off firepower
• Provide a single, flexible rocket artillery platform for diverse combat roles
• Support Make in India and reduce dependence on imported long-range artillery systems

7. Indian Army to Deploy Ramjet-Powered Shells for 155 mm Artillery

Context

The Indian Army is set to become the first armed force in the world to operationally deploy ramjet-powered artillery shells for its 155 mm artillery guns, marking a major leap in long-range conventional firepower.

What is it?

Ramjet-powered artillery shells are advanced 155 mm projectiles equipped with an air-breathing ramjet propulsion module. After being fired from a conventional artillery gun, the ramjet sustains thrust in flight, significantly extending the shell’s range without altering the gun system itself.

About Ramjet Technology

A ramjet is a type of air-breathing jet engine with no moving parts, designed to operate efficiently at supersonic speeds.

• Does not carry its own oxidiser
• Uses atmospheric oxygen for combustion
• Becomes efficient only after the projectile reaches high speed (provided by the gun launch)

Key advantage: Much higher efficiency and range compared to rocket-based propulsion for artillery shells.

Banking and Finance

1. ‘Insurance Misselling a Significant Concern’, Says Irdai

Source: ET

Context

India’s insurance regulator has flagged misselling and unfair business practices as a growing concern, calling for corrective action by insurers to protect policyholders and strengthen trust in the sector.

Key Findings

• The Insurance Regulatory and Development Authority of India (IRDAI) has stated that insurance misselling remains a significant concern.
• Insurers have been advised to conduct a root-cause analysis to identify and address the reasons behind such practices.

What Is Insurance Misselling?

• Selling insurance products without adequate disclosure of:
  • Terms and conditions
  • Costs and benefits
  • Product suitability for the customer
• Often involves pushing unsuitable or complex policies to meet sales targets.

Government’s Stand

• The Ministry of Finance has repeatedly cautioned banks and insurers against misselling.
• Emphasis has been placed on:
  • Corporate governance best practices
  • Ethical sales behaviour
  • Protecting consumer interests

2. RBI Eases Related-Party Lending Norms

Source: FE

Context

The Reserve Bank of India (RBI) has issued final guidelines on lending to related parties, easing several provisions from the draft norms and providing significant regulatory relief to banks and other regulated entities (REs).

What is the decision?

RBI has allowed existing related-party transactions that do not comply with the new norms to continue till their contractual maturity, subject to strict conditions. This move reduces disruption and avoids forced unwinding of legacy exposures.

Key Relief Measures

1. Run-off of Existing Exposures

• Non-compliant related-party loans can continue till maturity
• No enhancement, renewal, repricing, or change in terms allowed
• Replaces the earlier proposal of a one-year run-off, offering greater operational flexibility

2. Scope Rationalisation

• Equity investments in related parties excluded from the framework
• Debt investments in related parties continue to be covered

3. NBFC Exemptions

• Certain NBFCs exempted, including:
  • NBFCs not accessing public funds
  • Core Investment Companies (CICs)

Definition Changes for Clarity

• ‘Senior officer’ replaced with ‘specified employee’
  • Defined as employees placed up to two levels below the board
• Scope of ‘related party’ narrowed
  • Removal of duplicative references to relatives
  • ₹5 crore shareholding threshold eliminated
• RBI rejected calls to raise materiality thresholds
  • Adopted a scale-based framework: larger REs face proportionately tighter limits

Other Important Changes

Cooperative Banks

• Scale-based approach introduced
• Tier-4 Urban Cooperative Banks allowed limited related-party lending with board approval

All India Financial Institutions (AIFIs)

• Existing prohibitions on lending to directors and interested entities continue unchanged

Board Approval Exemptions

• Related-party loans fully secured by:
  • Government securities
  • Fixed deposits
  • Life insurance policies
• Condition: Loan-to-Value ≤ 100% of realisable value
• Such loans do not require board approval

3. RBI Relaxes Risk-Weight Norms for NBFC Infrastructure Financing

Source: FE

Context

The Reserve Bank of India (RBI) has eased risk-weight norms for infrastructure lending by Non-Banking Financial Companies (NBFCs), compared with its draft framework, while issuing the final guidelines on Thursday. The move provides capital relief to lenders while retaining repayment-based safeguards to ensure prudence.

What is the change?

RBI has lowered the repayment thresholds required for NBFC exposures to qualify for reduced risk weights for high-quality infrastructure projects, though it has retained repayment-linked criteria, underscoring that repayments remain a key indicator of reduced project risk.

Major Capital Relief: Key Changes

• Applies to original sanctioned project debt
• Any additional borrowing will be clubbed to assess eligibility

Expanded Scope: High-Quality Infrastructure Projects

RBI has partially widened the definition of high-quality infrastructure projects to include those where revenues depend on rights granted under concession or contract by:

• Central or State Governments
• Public sector entities
• Statutory or regulatory bodies

However, termination protection clauses have been retained, as RBI considers them essential to safeguard lenders’ interests.

Agriculture

1. A Lesson from Beed in Raising Farmers’ Incomes

Source: IE

Context

At a time when India’s goal of substantially raising farmers’ incomes remains elusive, an experiment from Beed district in Maharashtra offers a practical, scalable pathway to transform rural livelihoods—especially in drought-prone regions.

The Beed Breakthrough

• Beed district, traditionally marked by low rainfall and agrarian distress, witnessed a dramatic turnaround in farm incomes.
• The initiative was led by Global Vikas Trust (GVT) under the leadership of Mayank Gandhi.
• An independent assessment by Tata Institute of Social Sciences (TISS) found that per-acre incomes rose more than 10 times—from about ₹38,700 to nearly ₹3.9 lakh.

What Changed on the Ground?

1. Crop Diversification

• Farmers shifted from low-return crops like cotton and soybean to high-value horticulture, including:
  • Papaya
  • Pomegranate
  • Sweet lime
  • Custard apple
  • Guava
  • Banana
• These crops offered better price realisation and year-round income potential.

2. Scientific Farming Practices

• Adoption of high-density plantations and modern agronomic techniques.
• Continuous hand-holding and training, rather than one-time advisories.

3. Affordable Quality Inputs

• Saplings procured in bulk and supplied to farmers at nearly half the market price.
• Cost support came through CSR funds and philanthropic contributions, lowering entry barriers.

4. Water Security as the Foundation

• Construction of:
  • Farm ponds
  • Deep recharge shafts
• Result:
  • Groundwater levels improved sharply—from around 400 feet to nearly 50 feet in many villages.
• Reliable water made diversification sustainable, not risky.

5. Credit & Risk Mitigation

• Banks were brought in with credit guarantees, reducing farmers’ fear of debt.
• Risk was shared across institutions, not borne by farmers alone.

Lessons for National Policy

• Crop diversification + water security is a powerful income multiplier.
• Doubling farmers’ income may be too modest a target—with the right support, incomes can grow manifold.
• Government schemes can amplify impact by aligning:
  • Horticulture missions
  • Watershed development
  • Rural credit and insurance
• Replicable in other semi-arid and rain-fed regions of India.

2. ICAR Releases 184 New Crop Varieties

Source: TOI

Context

The Union Minister of Agriculture and Farmers’ Welfare, Shivraj Singh Chouhan, today released 184 new varieties of 25 crops developed by the Indian Council of Agricultural Research (ICAR) at New Delhi. These varieties have been bred with improved yield, climate resilience, and nutritional traits.

Key Highlights of the Release

Crop-wise Break-up

• Rice: 60 varieties
• Maize: 50 varieties
• Oilseeds: 13 varieties
• Others: Pulses, millets, fodder and horticultural crops (part of total 25 crops)

Policy & Governance Announcements

• The government aims to ensure that all agriculture-related schemes reach farmers within three years of launch.
• Six regional zones have been created for pre-Rabi and pre-Kharif regional conferences, feeding into national conferences and helping states prepare a Krishi Roadmap tailored to regional needs.
• The government is considering introducing the Seed Bill in the upcoming Parliament session, signalling reforms in seed regulation, quality assurance, and farmer protection.

Facts To Remember

1. CM inaugurates ‘Shabdotsav’, 3-day literary, cultural festival

Staying connected to one’s roots is essential in the present times, Chief Minister Rekha Gupta as she inaugurated ‘Delhi Shabdotsav’, a three-day literature and cultural festival.

2. Telangana adopts resolution for restoration of MGNREGA

The Telangana Legislative Assembly on Friday adopted a unanimous resolution demanding that the Centre restore the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) as it is.

3. Billionaires’ Wealth Loses Share as India’s GDP Expands

After a phase of rapid accumulation between 2014 and 2021, the wealth of India’s billionaire promoters is now growing slower than the economy, leading to a decline in their share of national output.

Key Findings

• In CY2025, the combined net worth of India’s billionaire promoters (in US dollar terms) fell by 5%.
• Over the same period, India’s nominal GDP (in dollar terms) grew by 7.5% in FY25.
• Consequently, billionaires’ wealth as a share of GDP declined to 25.2% in CY25 from 28.5% a year earlier—the lowest in three years.

3. US tariff high, India’s seafood exports to other nations up 16%

India’s marine products exports increased by 16% in terms of value and 12% in volume during the first seven months (April-October) of FY 2025-26 as compared to the corresponding period last fiscal, shows official data. According to the data, India’s seafood exports increased to $4.87 billion in April-October 2025 from $4.19 billion during the same period of 2024.

4. Goa to Get Third District ‘Kushavati’

• Announcement: By CM Pramod Sawant
• Headquarters: Quepem
• Talukas included: Dharbandora, Quepem, Sanguem, Canacona
• Special feature: ~27% tribal population
• Status: Aspirational district; eligible for ₹15 crore additional central funding
• Importance: Balanced regional development and focused tribal welfare

5. India’s First Vande Bharat Sleeper Train

• Route: Guwahati (Assam) – Howrah (West Bengal)
• Designed by: Integral Coach Factory (ICF)
• Manufactured by: BEML Ltd
• Plan:
  • 10 rakes by March 2026
  • 50 additional rakes by ICF later

6. 50th PRAGATI Meeting Chaired by PM

• Projects reviewed: Infrastructure projects worth ₹40,000+ crore
• Impact:
  • Projects worth ₹85 lakh crore accelerated since 2014
  • ~94% issues resolved across 377 projects
• Governance significance: Outcome-oriented, tech-enabled project monitoring

7. President Launches ‘Skill The Nation’ AI Challenge

• Under Skilling for AI Readiness (SOAR) initiative
• Also inaugurated: IGNOU Regional & Skill Centre at Rairangpur, Odisha
• Focus: Inclusive, people-centric AI skilling for youth and marginalised groups
• Importance: Preparing India’s workforce for an AI-driven economy

8. MoSPI Unveils New Logo & Mascot ‘सांख्यिकी’

• Theme: Data for Development
• Logo elements: Ashoka Chakra, Rupee symbol, growth bar
• Mascot: ‘सांख्यिकी’ to simplify statistics and build public trust
• Significance: Citizen-centric, data-driven governance

9. Kaamya Karthikeyan Skis to South Pole

• Achievement: Youngest Indian (18 years) to ski to the South Pole
• Distance: 115 km in Antarctica
• Background: Completed Seven Summits Challenge before 18
• Significance: Symbol of youth achievement, adventure sports, and gender inspiration

10. ‘Samudra Pratap’ in Goa

Defence Minister Rajnath Singh commissioned the Indian Coast Guard’s (ICG) first indigenously designed and built pollution control vessel, Samudra Pratap, in Goa. The vessel will serve as a critical platform for enforcing marine pollution control regulations, maritime law enforcement, search and rescue operations, and safeguarding the country’s Exclusive Economic Zone.

11. Sheikh Mohammed bin Rashid marks 20 years as UAE prime minister

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, marked the 20th anniversary of his assumption of the office of Prime Minister on this day in 2006, in a gathering with current and former ministers who have served with him over the past two decades.

12. 2nd Khelo India Beach Games set to begin at Ghoghla Beach in Diu

The 2nd Khelo India Beach Games is set to begin today at the Ghoghla Beach in Diu. More than 2,100 athletes will participate in eight different sports of the Beach Games, which is being organised by the Union Territory of Dadra and Nagar Haveli and Daman and Diu.

13. India’s AYUSH System Recognised in Bilateral Agreements with Oman, New Zealand

The Commerce Ministry has said that India’s traditional medicine system – AYUSH – has received formal recognition in bilateral trade agreements with Oman and New Zealand.

14. Rajasthan to host Regional AI Impact Conference 2026 in Jaipur on January 6

Rajasthan will host a Regional AI Impact Conference 2026 on the 6th of this month in Jaipur. Minister of Electronics and Information Technology Ashwini Vaishnaw and Minister of State for Electronics and Information Technology Jitin Prasada will attend the conference.

15. Govt announces relaxation for deep-tech startups, removing three-year existence condition to avail DSIR recognition

The government has removed the condition of three-year existence for deep-tech startups to avail recognition under DSIR’s Industrial Research and Development Promotion Program.

16. World Braille Day

The world is celebrating World Braille Day today to mark the celebration of its creator, Louis Braille. Braille is a code that enables the visually impaired to read with their fingertips using a system of six raised dots.

17. Sports: Deepti Sharma becomes highest wicket-taker in Women’s T20Is (152 wickets)

First player globally with 1,000 runs + 150 wickets in T20Is

Daily Current Affairs Quiz
06 & 07 January, 2026

National Affairs

1. Unlawful Activities (Prevention) Act – UAPA

Source: The Hindu

Context

The Supreme Court refused bail to Umar Khalid and Sharjeel Imam in the 2020 Delhi riots case.

Unlawful Activities (Prevention) Act – UAPA

The Unlawful Activities (Prevention) Act (UAPA) is India’s main anti-terror law.
Its purpose is to protect the sovereignty, unity, and security of India by preventing activities linked to terrorism, secession, and unlawful organizations.

Why was UAPA made?

• Enacted in 1967
• Strengthened after major security threats (especially post-2004 and 2008)
• To give the government strong legal tools to deal with terrorism and anti-national activities

What does UAPA do?

1. Defines “Unlawful Activities”

Any action that:

• Threatens India’s unity or integrity
• Supports secession or disintegration
• Encourages violence against the state

2. Deals with Terrorist Activities

UAPA covers:

• Planning or committing terrorist acts
• Funding terrorism
• Recruiting or training terrorists
• Possessing weapons or materials for terrorism

3. Bans Organizations

• Government can declare an organization as a terrorist organization
• Membership, support, or funding such groups becomes a crime

4. Individuals Can Be Declared Terrorists

(After 2019 amendment)

• Even individuals, not just organizations, can be notified as terrorists

5. Special Powers to Investigating Agencies

• Longer detention period (up to 180 days without filing a chargesheet)
• Strict bail conditions (bail is very difficult)
• Property linked to terrorism can be seized

Legal basis used

• Section 43D(5), UAPA:
  • Courts need only assess whether accusations are prima facie true.
  • Considerations like long incarceration or delay in trial carry limited weight.
• Section 15, UAPA (Terrorist Act):
  • Interpreted broadly to include acts beyond direct violence, such as threatening disruption of essential services.

2. ICGS Samudra Pratap Commissioned

Source: TH

What is the news?

The Indian Coast Guard (ICG) has commissioned ICGS Samudra Pratap, the first of two indigenously designed Pollution Control Vessels (PCVs), significantly enhancing India’s maritime pollution response and safety capabilities.

Key highlights

Built by Goa Shipyard Limited, it is:

• India’s first indigenously designed Pollution Control Vessel (PCV)
• Largest ship in the Indian Coast Guard (ICG) fleet
• Built with over 60% indigenous content, with a target of 90% indigenisation in future vessels

Capabilities of ICGS Samudra Pratap

• Pollution response
  • Advanced pollution detection systems
  • Specialised pollution response boats
• Fire-fighting
  • Modern onboard fire-fighting equipment
• Maritime safety & security
  • Coastal patrol and law enforcement
• Extended surveillance
  • Long-range operations across India’s maritime zones
• Aviation facilities
  • Helicopter hangar for enhanced reach, even in rough seas

3. India launches e-Production Investment Business Visa (e-B-4) for Chinese nationals

Source: TH

What is the news?

India has introduced a new e-Production Investment Business Visa (e-B-4 Visa) for Chinese nationals, allowing them to travel to India for specific business and investment-related activities.

Key features of the e-B-4 Visa

• Introduced on: January 1
• Eligibility: Chinese businessmen
• Application mode: Fully online, without visiting the embassy or agents
• Processing time: About 45–50 days
• Validity / Stay: Permission to stay in India for up to six months

Permitted activities

The e-B-4 Visa allows travel for:

• Installation and commissioning of equipment
• Production-related business activities
• Investment-linked commercial engagements

The visa is tailored for manufacturing and production ecosystems, rather than general tourism or employment.

4. Aditya-L1 Solar Mission

Source: The Hindu

What is the news?

On the second anniversary of Aditya-L1 reaching the Sun–Earth Lagrange Point-1 (L1), the Indian Space Research Organisation (ISRO) has released an Announcement of Opportunity (AO) inviting Indian scientists to submit proposals for the first AO cycle observations using Aditya-L1 data

About Aditya-L1 mission

• India’s first dedicated solar mission
• Launched: September 2, 2023
• Reached L1: January 6, 2024 (after 127 days)
• Observation point: Sun–Earth L1, ~1.5 million km from Earth
• Enables continuous, uninterrupted observation of the Sun, free from eclipses or occultation

Why is the L1 point important?

• Aditya-L1 is placed at Lagrange Point 1, about 1.5 million km from Earth, towards the Sun.
• Provides a stable gravitational location to observe the Sun constantly
• Ideal for studying:
  • Solar flares
  • Coronal mass ejections (CMEs)
  • Solar wind
  • Space weather events affecting Earth

What is the Announcement of Opportunity (AO)?

• A formal call inviting researchers to:
  • Propose solar observations using Aditya-L1 instruments
  • Provide scientific and technical justification
  • Analyse data if the proposal is approved

5. Ministry Proposes Doubling Auto PLI Allocation to ₹5,800 Crore

Source: TH

What is the news?

The Ministry of Heavy Industries (MHI) has proposed doubling the allocation for the Production Linked Incentive (PLI) scheme for automobiles and auto components to ₹5,800 crore in the upcoming financial year.

• Allocation in FY 2025–26: ₹2,818.85 crore
• Proposed allocation (next FY): ₹5,800 crore

About the Auto PLI Scheme

• Launched: 2021
• Total outlay: ₹25,938 crore
• Objective:
  • Boost domestic manufacturing
  • Attract investment
  • Promote green mobility

Key features

• Incentives linked to incremental production
• Mandatory Domestic Value Addition (DVA) of 50%
• Focus on Zero Emission Vehicles (ZEVs):
  • Battery Electric Vehicles (BEVs)
  • Hydrogen Fuel Cell Vehicles

6. Somnath Temple

Context

The Prime Minister of India highlighted the thousand-year survival of the Somnath Temple, marking 1,000 years since the 1026 CE attack by Mahmud of Ghazni, underscoring the temple’s civilisational resilience and cultural continuity.

About the Somnath Temple

The Somnath Temple is one of the 12 sacred Jyotirlingas of Lord Shiva, revered across Hindu traditions. It is popularly known as the “Eternal Shrine” due to its repeated destruction and reconstruction over centuries.

Location

• Place: Prabhas Patan, near Veraval
• Region: Saurashtra, Gujarat
• Geographical significance:
  • Located on the Arabian Sea coast
  • Situated at the Triveni Sangam of the Kapila, Hiran, and Saraswati rivers

Historical Evolution

Ancient Origins

• Mentioned in texts such as the Shiva Purana
• Archaeological and epigraphic evidence suggests worship from ancient times
• Indicates the long continuity of Shaivite tradition

1026 CE: Mahmud of Ghazni’s Attack

• The temple was attacked and plundered by Mahmud of Ghazni
• This event is considered the most cited historical rupture in the temple’s history

Medieval Reconstructions

• Rebuilt multiple times by:
  • Kumarapala, a Chaulukya ruler (12th century)
  • Chudasama dynasty kings
• Destroyed again during Delhi Sultanate invasions
• Historical records indicate the temple was destroyed and rebuilt at least six times

This repeated cycle reinforced Somnath’s image as a symbol of resilience and faith.

Modern Reconstruction

• Rebuilt after Independence under the leadership of:
  • Sardar Vallabhbhai Patel
  • With strong support from K. M. Munshi
• Reconstructed temple inaugurated in 1951
• Seen as a symbol of cultural revival and national self-confidence

Architectural Features

• Built in the Chaulukya (Solanki) style of temple architecture
• Key elements:
  • Lofty shikhara
  • Intricate stone carvings
  • Spacious garbhagriha housing the Jyotirlinga
• Baan-Stambh inscription:
  • States that from the temple’s southern arrow, there is no landmass until the South Pole
  • Symbolises cosmic orientation and sacred geography

7. India Inaugurates National Environmental Standard Laboratory (NESL)

Source: PIB

Context

India has inaugurated the world’s second National Environmental Standard Laboratory (NESL) at CSIR–National Physical Laboratory (NPL), New Delhi, strengthening the country’s environmental monitoring and standards ecosystem. Alongside, India also operationalised the world’s fifth National Primary Standard Facility for Solar Cell Calibration.

About National Environmental Standard Laboratory (NESL)

The National Environmental Standard Laboratory (NESL) is an apex national facility for:

• Testing
• Calibration
• Certification

of air pollution monitoring instruments, specifically validated under Indian climatic and environmental conditions.

Location

• CSIR–National Physical Laboratory (NPL), New Delhi

Institutions Involved

• Council of Scientific & Industrial Research (CSIR)
• CSIR–National Physical Laboratory

8. PM Inaugurates Grand International Exposition of Sacred Piprahwa Relics

Source: News on Air

Context

On January 3, 2026, Prime Minister Narendra Modi inaugurated the Grand International Exposition of Sacred Piprahwa Relics titled “The Light and the Lotus: Relics of the Awakened One” in New Delhi.

What are the Piprahwa Relics?

The Piprahwa relics are believed to be mortal remains of Lord Buddha, discovered in 1898 at Piprahwa (present-day Uttar Pradesh).

• Identified as Kapilavastu relics, linked to the Shakya clan
• Among the earliest archaeological evidence of Buddhism
• Regarded as extremely sacred by Buddhists worldwide

9. India Develops 3D-Printed Automatic Weather Stations under Mission Mausam

Context

In January 2026, Indian scientists led by Indian Institute of Tropical Meteorology (IITM), Pune, developed India’s first 3D-printed Automatic Weather Stations (AWS) under Mission Mausam.

What is Mission Mausam?

Mission Mausam is a national initiative led by the India Meteorological Department (IMD) to:

• Strengthen weather observation infrastructure
• Improve forecast accuracy
• Enhance early warning systems for extreme weather events

What are Automatic Weather Stations (AWS)?

AWS are unmanned systems that automatically measure and transmit:

• Temperature
• Rainfall
• Humidity
• Wind speed & direction
• Atmospheric pressure

They send real-time data to weather centres for forecasting and alerts.

Banking and Finance

1. TMB Partners with TechFini to Strengthen UPI Infrastructure

Context

On January 5, 2026, Tamilnad Mercantile Bank (TMB) entered into a strategic partnership with TechFini to enhance its UPI acquiring and issuing capabilities.

UPI (Unified Payments Interface)

UPI is a real-time digital payment system developed by the National Payments Corporation of India (NPCI) that allows instant bank-to-bank money transfers using a mobile phone.

Who launched UPI?

• Developed by NPCI
• Launched in 2016
• Operates under the supervision of the Reserve Bank of India (RBI)

UPI Autopay & Lending Automation

• Enables automated EMI and loan repayments
• Supports UPI Autopay mandates
• Expands UPI use cases in credit, collections, and recurring payments

TechFini UPI Platform – Features

• Cloud-native architecture
• Includes:
  • TPAP services
  • UPI Plugin SDK
  • Acquiring & issuing infrastructure
  • UPI Autopay
• Capacity: Up to 10,000 transactions per second (TPS)

2. SEBI Proposes New Norm for Sharing Price Data for Educational Use

Source: The Hindu

What is the news?

The Securities and Exchange Board of India (SEBI) has proposed a revised framework for sharing price data for educational purposes, introducing a 30-day time lag to balance data security with academic relevance.

What is the proposed change?

New proposal

• Price data can be shared and used with a 30-day lag
• Applicable only for educational purposes

Current regulation

• Educational institutions can:
  • Access price data with one-day lag
  • Use the data with a three-month lag

Why is SEBI proposing this change?

SEBI cited stakeholder feedback and internal deliberations:

• One-day lag was considered too short
  • Risk of misuse of exchange data
• Three-month lag was considered too long
  • Reduces educational relevance
• 30-day lag seen as a balanced approach:
  • Minimises misuse risk
  • Keeps academic content current and effective

3. RBI Draft Rules to Tighten Dividend Payouts by Banks

Source: TOI

What is the news?

The Reserve Bank of India (RBI) has issued draft rules to tighten dividend payouts by banks, linking distributions to capital adequacy, asset quality, and profit quality. The uniform prudential framework will be effective from FY27.

Why has RBI moved this proposal?

• In the previous financial year, banks paid over ₹75,000 crore in dividends after record profits.
• RBI aims to ensure that capital buffers are preserved, dividends are sustainable, and payouts do not weaken financial stability.

Who will be covered?

Included

• All banking companies
• Corresponding new banks
• State Bank of India (SBI)
• Foreign banks operating in India in branch mode

Excluded

• Small finance banks
• Payments banks
• Local area banks
• Regional rural banks (RRBs)

Key Elements of the Draft Framework

1. Capital Adequacy-Based Restrictions

Capital Adequacy Ratio is a measure of a bank’s financial strength. It shows how much capital a bank has to absorb losses compared to the risk in its assets (mainly loans).

Banks will be permitted to distribute dividends only if they meet minimum regulatory capital ratios, including buffers, both before and after dividend payout. This ensures that capital levels are not weakened due to shareholder distributions.

2. Asset Quality Linkage

Dividend eligibility will depend on the health of the loan book, including:

• Levels of NPAs
• Provisioning adequacy
• Overall credit risk profile

Banks with stressed assets will face restrictions or prohibition on dividend payouts.

3. Profit Quality Emphasis

The RBI has stressed that profits should be:

• Sustainable
• Core-business driven
• Adequately provisioned

One-time gains or accounting-driven profits will not justify dividend payments.

4. RBI Proposes to Raise Banks’ Dividend Payout Cap to 75%

Source: ET

What is the news?

The Reserve Bank of India (RBI) has proposed raising the ceiling on dividend payouts by banks to 75% of net profit, up from the earlier 40% cap, while introducing stricter prudential safeguards linked to capital strength, asset quality, and provisioning.

The draft framework is open for public comments till February 5 and will be effective from FY27.

Key proposals by RBI

1. Higher dividend cap

• Maximum dividend payout: 75% of net profit
• Applies to:
  • Indian banks
  • Foreign banks operating in India in branch mode

2. Graded dividend framework (linked to CET1)

CET1 is the highest-quality and most reliable capital a bank has. It is the first buffer used to absorb losses when a bank faces financial stress.

Dividend payouts will depend on Common Equity Tier 1 (CET1) capital ratios:

• CET1 < 8% → No dividend allowed
• CET1 > 20% → Banks may distribute up to 100% of adjusted net profit,
  • Subject to the 75% overall payout cap

Adjusted net profit =
Net profit – Net Non-Performing Assets (NPAs)

3. Higher bar for systemically important banks

Domestic Systemically Important Banks (D-SIBs) such as:

• State Bank of India
• HDFC Bank
• ICICI Bank

will require even higher CET1 ratios to pay maximum dividends:

• SBI: 20.8% CET1
• HDFC Bank: 20.4% CET1
• ICICI Bank: 20.2% CET1

4. Role of bank boards strengthened

Before declaring dividends, bank boards must assess:

• Asset quality and provisioning gaps
• Capital projections
• Long-term growth and sustainability plans

5. Profit quality checks

• Any overstatement of profit must be deducted
• Exceptional/extraordinary income excluded
• Profits flagged in modified audit opinions must be adjusted downward

6. Rules for foreign banks

• Foreign banks in branch mode may remit surplus without prior RBI approval
• If excess remittance is detected during audit:
  • Head office must refund the excess
  • Make good the capital shortfall

5. India’s Loan-to-Deposit Ratio (LDR) Hits Record 81%

What is the news?

India’s banking system has seen its loan-to-deposit ratio (LDR) rise to an all-time high of 81% in the December quarter, highlighting a widening gap between credit growth and deposit mobilisation. The trend has raised concerns about banks’ funding comfort and may prompt higher deposit rates.

What is Loan-to-Deposit Ratio (LDR)?

LDR measures how much of a bank’s deposits are used for lending.

• Higher LDR → banks are lending aggressively
• Lower LDR → banks have surplus liquidity

What does an 81% LDR indicate?

• Banks have lent out ₹81 for every ₹100 of deposits
• This is historically high for India
• Signals tightening liquidity conditions in the banking system

What is driving the imbalance?

• Strong demand for:
  • Retail loans
  • MSME credit
• Slower household savings accretion into bank deposits
• Competition from:
  • Market-linked instruments
  • Small savings schemes

6. RBI Tightens Credit Risk Management: Curbs Related-Party Lending

What is the news?

The Reserve Bank of India (RBI) has notified comprehensive changes to credit risk management rules for commercial banks, prohibiting fresh lending to promoters, large shareholders and related entities, while allowing existing non-compliant related-party loans to continue till maturity.

The new framework will come into force from April 1, 2026.

Key objectives of the new norms

• Prevent conflict of interest and connected lending
• Strengthen governance, transparency and accountability
• Align Indian banking practices with global prudential standards
• Reduce risks of evergreening, crony lending and insider abuse

Who are covered under the restrictions?

Banks are barred from lending to:

• Their promoters
• Relatives of promoters
• Shareholders holding 10% or more equity
• Entities controlled or significantly influenced by such persons

Exception:

• Non-strategic institutional shareholdings without control or influence

Governance & compliance requirements

Banks must:

• Adopt board-approved policies on related-party lending
• Set aggregate exposure limits and sub-limits
• Establish whistleblower mechanisms for reporting unethical or irregular loans
• Ensure recusal of:
  • Directors
  • Key managerial personnel
  • Specified employees
    from decisions involving their own or related-party interests

Approval thresholds for related-party loans

Loans crossing materiality thresholds require board or committee approval:

• ₹25 crore – Large banks
• ₹10 crore – Mid-sized banks
• ₹5 crore – Smaller banks

Additional requirements:

• Maintain updated lists of related parties
• Conduct quarterly compliance reviews
• Report deviations to Audit Committees
• Annual disclosure of loans to specified employees

Treatment of existing related-party transactions

• Existing transactions not compliant with new norms:
  • May continue till maturity
  • Cannot be:
    • Renewed
    • Re-priced
    • Enhanced
    • Modified
      unless they fully meet the new rules

RBI clarified that any change in terms will trigger mandatory compliance with the revised framework.

Scope clarifications

• Equity investments → Excluded from the new directions
• Debt instruments of related parties → Covered
• Listed banks must also comply with:
  • Securities and Exchange Board of India (SEBI) disclosure norms
  • RBI’s intra-group exposure limits

Changes in definition of ‘related parties’

• Removed earlier ₹5 crore monetary threshold for shareholding
• Excluded nominee directors of other banks appointed by statutory bodies
• Restrictions retained on:
  • RBI’s own nominee directors
  • Independent directors

Special cases

• Agricultural and allied loans to directors of rural cooperative banks will continue to be governed by existing statutory restrictions

Penalties for non-compliance

Violations or circumvention may lead to:

• Monetary penalties
• Higher provisioning requirements
• Forensic audits
• Business restrictions

7. Payments Regulatory Board (PRB)

Context

The first meeting of the Payments Regulatory Board (PRB) was held in Mumbai under the chairmanship of Sanjay Malhotra, marking the operationalisation of India’s revamped payments governance framework.

About the Payments Regulatory Board (PRB)

The Payments Regulatory Board (PRB) is a statutory authority through which the Reserve Bank of India exercises regulatory, supervisory, and enforcement powers over payment and settlement systems in India, ensuring their safety, efficiency, integrity, and stability.

Legal Basis & Evolution

• Established under: Section 3 of the Payment and Settlement Systems (PSS) Act, 2007
• Operational from: 9 May 2025
• Replaced: Board for Regulation and Supervision of Payment and Settlement Systems (BPSS)
• Rationale: To provide institutional autonomy, transparency, and multi-stakeholder oversight in a rapidly expanding digital payments ecosystem

Composition

The PRB is a multi-stakeholder body, comprising:

• Chairperson: RBI Governor
• Members:
  • RBI Deputy Governor (in charge of payments)
  • Central Government nominees
  • Independent experts in payments, fintech, cybersecurity, and financial markets
  • Senior officials associated with digital payment infrastructure (e.g., NPCI, UIDAI)

Key Functions of PRB

1. Authorisation & Oversight

• Grants, regulates, suspends, or cancels authorisation of payment systems such as:
  • UPI
  • Card networks
  • Wallets
  • RTGS / NEFT
  • Prepaid payment instruments

2. Standards & Interoperability

• Prescribes technical, operational, and cybersecurity standards
• Ensures interoperability, resilience, and fraud prevention

3. Risk Management & Consumer Protection

• Addresses:
  • Systemic and settlement risks
  • Data security and privacy
  • Dispute resolution and grievance redressal

4. Policy Direction

• Reviews performance of payment systems
• Guides long-term digital payments strategy, innovation, and inclusion

5. Supervision & Enforcement

• Conducts inspections and audits
• Issues binding directions under the PSS Act
• Can impose penalties and corrective actions

Agriculture

1. Why India’s fertiliser policy needs a fundamental overhaul

What is the issue?

India’s fertiliser subsidy regime has become fiscally costly, economically inefficient, environmentally damaging, and harmful to public health. Despite spending close to ₹1.9 trillion in FY25 on fertiliser subsidies (with FY26 allocations at ~₹1.6 trillion, likely to overshoot), outcomes in crop productivity and nutrient efficiency continue to deteriorate.

Key problems with the current fertiliser policy

1. Massive fiscal burden with poor returns

• Fertiliser subsidy (FY25): ₹1.9 trillion+
• Additional hidden subsidy:
  • Natural gas supplied to fertiliser plants at ~50% of market price
• Imports rising:
  • 10 million tonnes → 12 million tonnes next year
• Result: Escalating costs without commensurate gains in output

2. Falling nutrient use efficiency

• Share of applied fertiliser actually absorbed by crops:
  • Nitrogen (urea): <35%
  • Phosphorus: ~20%
  • Potassium: 50–80%
• Large quantities are:
  • Diverted for resale
  • Lost to air and water systems

3. Declining fertiliser productivity

• Fertiliser-to-grain response ratio:
  • 1970s: ~1:10
  • 2015 (irrigated areas): ~1:2.7
• Indicates diminishing marginal returns from fertiliser use

4. Distorted nutrient balance (NPK imbalance)

• Ideal NPK ratio: 4 : 2 : 1
• India’s current ratio: 10.9 : 4.4 : 4
• Cause:
  • Heavily subsidised urea encourages overuse
• Effects of excess urea:
  • Nitrous oxide emissions → climate warming
  • Nitrate leaching → groundwater contamination & health risks
  • More vegetative growth without proportional grain yield

5. Global comparison highlights inefficiency

• Farm value addition per unit land:
  • India: 38% of China
• China uses:
  • More fertiliser
  • But with balanced NPK use and better technology
• Outcome: higher productivity per unit input

What reforms are suggested?

1. Shift to Direct Cash Transfers (DCT)

• Replace subsidies to fertiliser companies with:
  • Direct cash support to farmers
• Transfers linked to:
  • Cultivated area (not ownership)
• Benefits:
  • Reduces leakage and diversion
  • Empowers farmers to choose optimal fertiliser mix
  • Reveals true demand and shortages

2. Move to market-determined fertiliser prices

• Allow fertiliser firms to:
  • Price products freely
  • Innovate (nano fertilisers, complex fertilisers)
• Farmers, supported by cash transfers and extension services, can:
  • Optimise nutrient use by soil type

3. Promote coal gasification

• Reduce dependence on imported LNG
• Use abundant domestic coal as fertiliser feedstock
• Co-benefits:
  • Energy security
  • Support for climate transition by stabilising power supply alongside renewables

Facts To Remember

1. Former World billiards champion Manoj Kothari passes away

Former World billiards champion and Indian cue sports chief coach Manoj Kothari passed away, according to his family sources. Kothari was 67 and is survived by his wife and son Sourav. He was not keeping well and was being treated in Tamil Nadu.

2. Former Kerala Minister V.K. Ebrahim Kunju passes away

V.K. Ebrahim Kunju, senior leader of the Indian Union Muslim League (IUML) and former Minister for Public Works, died in Kochi.

3. National Siddha Day 2026 – January 6

About National Siddha Day

• Observed on: January 6
• Occasion: Birth anniversary of Sage Agathiyar, regarded as the father of the Siddha system of medicine
• Astronomical link: Coincides with the Ayilyam star in the Tamil month of Margazhi
• 2026 marks: 9th National Siddha Day
• Theme 2026: “Siddha for Global Health”

4. World Day of War Orphans 2026 – January 6

About World Day of War Orphans

• Observed on: January 6
• First observed: January 6, 1995
• Proposed by: French NGO SOS Enfants en Détresse (1994)

5. Sports

• Andre De Grasse Named International Ambassador for Tata Mumbai Marathon 2026
• Sjoerd Marijne Reappointed Chief Coach of Indian Women’s Hockey Team
• PM Modi Virtually Inaugurates 72nd National Volleyball Championship

6. PM Inaugurates 72nd National Volleyball Tournament

On January 4, 2026, Prime Minister Narendra Modi virtually inaugurated the 72nd National Volleyball Tournament (Senior National Championship).

• Venue: Dr. Sampurnanand Sports Stadium
• Location: Varanasi, Uttar Pradesh
• Mode: Video conferencing
• Present: UP CM Yogi Adityanath

Daily Current Affairs Quiz
08 January, 2026

National Affairs

1. ISRO to Launch EOS-N1 Earth Observation Satellite

Source: TH

Context

The Indian Space Research Organisation (ISRO) is set to carry out its first mission of 2026 with the launch of the PSLV-C62 / EOS-N1 mission on January 12, 2026, at 10:17 AM IST.

The launch will take place from the Satish Dhawan Space Centre, Sriharikota.

About the EOS-N1 Satellite

• EOS-N1 is an Earth Observation (EO) imaging satellite
• Designed primarily for strategic purposes
• ISRO has not disclosed detailed specifications, indicating its security-sensitive nature
• Likely applications include:
  • High-resolution earth imaging
  • Surveillance and reconnaissance
  • Monitoring of borders, maritime zones, and strategic assets

Launch Vehicle & Mission Profile

• Launch Vehicle: PSLV
• Mission designation: PSLV-C62
• This will be the 105th launch from Sriharikota
• Also carries multiple secondary payloads developed by:
  • Indian start-ups
  • Academic institutions
  • International collaborators

2. India’s Progress on its Climate Targets

Source: TH

Context

Recent analyses show that India is doing well on some climate promises, but big challenges remain, especially on coal use and total emissions.

What are India’s climate targets?

India’s climate goals come from its Nationally Determined Contribution (NDC) under the Paris Agreement.
They are based on the idea that developing countries need space to grow while still acting on climate change.

India’s main targets (by 2030):

1. Reduce emissions intensity of GDP by 45% (from 2005 level)
2. 50% of power capacity from non-fossil sources
3. 500 GW renewable energy capacity
4. Create extra forest carbon sink of 2.5–3 billion tonnes CO₂
5. Net-zero emissions by 2070

Where India is doing well

1. Emissions intensity reduction — On track

• India already reduced emissions intensity by ~36% by 2020
• Original Paris target was met 10 years early
• Shows India is producing more GDP per unit of emissions

2. Non-fossil power capacity — Target achieved early

• By 2025, over 50% of installed power capacity is non-fossil
• Solar and wind are the biggest contributors

3. Renewable energy growth — Strong but uneven

• Solar grew rapidly: 3 GW (2014) → 110+ GW (2025)
• Wind growth has been slower
• 175 GW (2022) target missed, but 500 GW (2030) still possible

Where the real problems lie

1. Absolute emissions are still rising

• India’s total emissions are now ~3.3–3.4 Gt CO₂e
• Even if intensity falls, total emissions rise due to fast growth
• This eats into India’s future carbon budget

2. Heavy dependence on coal continues

• Coal provides 65–70% of electricity generation
• Installed coal capacity ~219 GW
• Plan to add ~80 GW more coal capacity by 2031–32

3. Weak storage & grid infrastructure

• Solar capacity is high, but:
  • Battery storage is very low (<0.3 GWh)
  • Transmission expansion is behind schedule
• Without storage and grids, renewables can’t replace coal fully

4. Forest carbon sink quality is questionable

• Forest targets are close on paper
• But:
  • Reliance on plantations, not natural forests
  • Poor use of CAMPA funds
  • Forests vulnerable to droughts and fires

3. New Species Discovered in India (2025)

Context

In December 2025, Indian scientists announced the discovery of several new species across diverse ecosystems, ranging from the Eastern Himalayas to the Western Ghats and Northeast India. These findings highlight India’s rich biodiversity and the importance of habitat conservation.

Key New Species Discovered

1. Bridgeoporus kanadii – Colossal Fungi

• Type: Macro fungus
• Location: West Kameng district, Arunachal Pradesh
• Habitat: Old-growth fir (Abies) forests
• Key Feature:
  • Thick, leathery, extremely large fruiting body
  • Strong enough for a human to sit on

2. Rhinophis siruvaniensis – Siruvani Shieldtail Snake

• Type: Non-venomous, burrowing snake (Uropeltidae family)
• Location: Siruvani Hills, Palakkad district, Kerala
• Habitat: High-rainfall rainforests of the Western Ghats
• Key Feature:
  • Fossorial lifestyle
  • Specialised tail shield for digging and protection

3. Neelus sikkimensis – High-Altitude Springtail

• Type: Tiny arthropod (Collembola / springtail)
• Location: Sikkim, Eastern Himalayas
• Habitat: Cold desert, high-altitude soils
• Key Feature:
  • Possesses a “furcula” (jumping organ)
• Significance:
  • First record of genus Neelus in India
  • Only the 8th known species globally

4. Parasynnemellisia khasiana – Bamboo Forest Fungus

• Type: New genus and species of fungus
• Location: Mawsynram, Khasi Hills, Meghalaya
• Habitat: Extremely wet bamboo forests
• Key Feature:
  • Could not be classified under any existing fungal genus

5. Dolomedes indicus – Indian Fishing Spider

• Type: Semi-aquatic spider
• Location: Wayanad and Lakkidi, Kerala
• Habitat: Streams and rainforests
• Key Feature:
  • Can “skate” on water
  • Hunts small fish and aquatic insects

6. Ophiorrhiza mizoramensis – Coffee Family Plant

• Type: Flowering shrub (Rubiaceae family)
• Location: Murlen National Park, Mizoram
• Habitat: Indo-Myanmar biodiversity zone
• Key Feature:
  • Dark purplish-pink tubular flowers
  • Unique stigma structure

4. National Intelligence Grid (NATGRID)

Context

Recent reports point to a major expansion of the National Intelligence Grid (NATGRID), including its integration with the National Population Register (NPR) and wider access for State police, reviving debates on privacy, oversight, and surveillance in India.

What is NATGRID?

National Intelligence Grid (NATGRID) is a technology-based intelligence-sharing platform created after the 26/11 Mumbai terror attacks to overcome information silos among security agencies.

Core Idea

• It does not store data
• It acts as a secure middleware
• Authorised agencies can query multiple databases in real time

Key Features of NATGRID

• Multi-database access
  Connects 21 types of datasets, including:
  • Travel records
  • Bank & financial data
  • Telecom metadata
  • Identity documents
  • Vehicle & property records
• Agency access
  • Initially limited to central agencies
  • Now extended to State police up to SP rank
• Tiered sensitivity
  • Non-sensitive
  • Sensitive
  • Highly sensitive data
• Advanced analytics
  • AI tools for:
    • Entity resolution
    • Pattern recognition
    • Facial recognition

Recent Expansion of NATGRID

1. Integration with NPR

• Linking with National Population Register
• Enables family-tree and household-based identity verification
• Covers about 119 crore residents
• Strengthens suspect verification across databases

2. Wider State-Level Access

• State police (SP rank) can now access NATGRID
• Makes it a routine Centre–State investigative tool
• No longer limited to counter-terrorism alone

3. AI Tool – GANDIVA

• Links suspects across:
  • KYC
  • Vehicle
  • Licence databases
• Cuts investigation time from days to minutes
• Raises risks of automated errors

5. India becomes first country to commercially produce bio-bitumen

Source: News on Air

Context

India has become the first country in the world to commercially produce bio-bitumen for road construction, marking a major milestone in green infrastructure and sustainable transport.

What is Bio-bitumen?

Bio-bitumen is a bio-based alternative to conventional petroleum bitumen, used as a binding material in road construction.

• Made mainly from agricultural residues, especially rice straw
• Can partially replace fossil-fuel-based bitumen without reducing road quality
• Helps convert farm waste into a valuable infrastructure input

Institutions involved

• Council of Scientific and Industrial Research (CSIR)
• CSIR-Central Road Research Institute (CSIR-CRRI), New Delhi
• CSIR-Indian Institute of Petroleum (CSIR-IIP), Dehradun

Key features of Bio-bitumen

• Partial fossil fuel replacement
  • 20–30% of conventional bitumen can be replaced safely
• Performance assured
  • Successfully tested for:
    • Rutting (surface deformation)
    • Cracking
    • Moisture damage
    • Durability and rheology
• Environment-friendly
  • Reduces stubble burning
  • Lowers overall carbon footprint of road construction
• Cost-effective
  • Lower construction costs
  • Longer service life of roads
• Field tested
  • A 100-metre trial road stretch laid on NH-40 (Jorabat–Shillong Expressway, Meghalaya) proved real-world feasibility

6. ISRO’s EOS-N1 (Anvesha) Mission

Source: TOI

Context

The Indian Space Research Organisation (ISRO) will begin 2026 with the PSLV-C62 mission, which will launch the advanced Earth Observation Satellite EOS-N1, also known by its codename “Anvesha”, along with 18 co-passenger payloads.

The launch will take place from Sriharikota in January 2026.

What is EOS-N1 (Anvesha)?

• EOS-N1 is an advanced Earth observation and surveillance satellite
• It uses hyperspectral imaging technology
• Designed to serve both strategic (security) and civilian purposes
• Part of India’s next-generation remote sensing and reconnaissance capability

Launch Details

• Mission: PSLV-C62
• Launch vehicle: Polar Satellite Launch Vehicle (PSLV)
• Payloads: EOS-N1 + 18 co-passenger satellites
• Launch site: Sriharikota
• Timeline: January 2026

7. Union Minister Dharmendra Pradhan Releases 55 Literary Works in Classical Indian Languages

Source: TH

Context

On 6 January 2026, Dharmendra Pradhan, Union Minister for Ministry of Education, released 55 scholarly literary works in classical Indian languages at an event in New Delhi.
The initiative aims to promote India’s rich linguistic heritage and ensure wider and more inclusive access to classical knowledge.

Languages Covered

The released works include texts in:

• Classical Kannada
• Telugu
• Malayalam
• Odia
• Tamil

In addition, an Indian Sign Language (ISL) interpretation of the Tirukkural was also launched.

Publications by CIIL

Out of the 55 works, 41 books were prepared by the Centres of Excellence for Classical Languages under the Central Institute of Indian Languages (CIIL), Mysuru, an autonomous body under the Ministry of Education.

These books focus on Classical Kannada, Telugu, Malayalam, and Odia.
Notable releases include:

• English and Hindi translations of Madalapanji
• English translation of Rudrasudhanidhi
• Shilpa Shabdabali
• Charyapada

These translations aim to make classical literature accessible to a wider audience.

8. NITI Aayog Launches 5th Edition of Trade Watch Quarterly

Source: News on Air

Context

In January 2026, NITI Aayog released the 5th edition of the Trade Watch Quarterly (TWQ) report for Q1 (April–June 2025) of FY26.
The report was launched in New Delhi by Arvind Virmani, Member, NITI Aayog.

The report provides a data-driven assessment of India’s trade performance amid changing global economic conditions.

Key Highlights of the Report

Focus Area: Automotive Exports

• The main focus of this edition is India’s automotive exports, including vehicles and auto components.
• It analyses global demand, tariff structures, and India’s participation in global value chains.

Auto-Components Market

• The global auto-components market was valued at USD 856 billion in 2024, growing at a 3% CAGR since 2015.
• India’s auto-component exports nearly doubled from USD 8.2 billion to USD 16.9 billion, growing at a 7% CAGR, faster than the global average.

Automotive Exports Performance

• Since 2015, India’s share in global automotive imports has remained around 1%.
• India’s automotive exports grew at 3.5% CAGR, slightly below the global average of 3.9%.
• In 2024, India contributed about USD 30 billion (1.4%) to the USD 2.2 trillion global automotive import market, showing large untapped potential.

Global Trade Trends

• Global trade in goods and services grew by about 2.5% (quarter-on-quarter) in Q1 FY26.
• Growth was mainly driven by developing economies and South-South trade, while US trade slowed overall growth.
• Goods trade growth increased from 2% to 2.5%, and services trade rebounded.

India’s Trade Numbers (Q1 FY26)

• Exports: USD 209 billion
• Imports: USD 230 billion
• Trade deficit: USD 21 billion
• Both exports and imports grew by 3–4% year-on-year.

Banking and Finance

1. Federal Bank Unveils Refreshed Brand Identity ‘The Fortuna Wave’

Context

On January 7, 2026, Federal Bank launched a refreshed brand identity called ‘The Fortuna Wave’ in Mumbai, Maharashtra.
The launch took place in the presence of Vidya Balan, the brand ambassador of the bank.

The rebranding reflects the bank’s focus on modernisation, digital readiness, and future growth.

About ‘The Fortuna Wave’

• Core Symbol: A new visual insignia featuring three waves
• Meaning of Waves:
  • Authenticity
  • Togetherness
  • Prosperity
• Design Philosophy:
  • More fluid and adaptable than the earlier boxed logo
  • Improved visibility across digital and physical platforms
• Visual Features:
  • Dynamic wave motif
  • Rounded, modern wordmark for “FEDERAL BANK”
  • Retention of the signature yellow underline
  • Bright, digital-friendly colour palette

About Federal Bank

• Founded: 1931
• Headquarters: Aluva, Kerala
• Type: Private sector bank
• Services:
  • Savings and current accounts
  • Loans
  • Digital banking services
  • NRI banking services

2. RBI Proposes 3-Year Cooling-Off Period for Co-operative Bank Directors

Context

The Reserve Bank of India (RBI) has proposed that directors of co-operative banks must take a 3-year break after completing 10 continuous years on the board.

Key Points

• A director who serves 10 years continuously on a co-operative bank board:
  • Cannot be re-appointed for 3 years
  • Cannot hold any role in the same bank during this period (except as a normal member or customer)
• During the cooling-off period:
  • The person can become a director in another co-operative bank
• While calculating the 10-year tenure:
  • All service periods are counted
  • Breaks shorter than 3 years do not reset tenure
  • Only a break of 3 years or more resets the count

Legal Background

• The Banking Regulation (Amendment) Act increased the maximum continuous tenure of co-operative bank directors from 8 years to 10 years
• RBI’s proposal operationalises this limit through a cooling-off rule

3. RBI Considering New Relief Measures for Exporters

Context

The Reserve Bank of India (RBI) is thinking about new ways to support Indian exporters who are facing losses due to high U.S. import tariffs. This comes after an earlier RBI relief measure — a loan repayment moratorium — saw very low participation.

What Is the Problem Exporters Are Facing?

• The U.S. has imposed tariffs of up to 50% on some Indian goods
• This includes a 25% tariff linked to India’s purchase of Russian oil
• Affected sectors include:
  • Garments
  • Jewellery
  • Leather goods
  • Chemicals

Recently, Donald Trump also warned that tariffs could rise further if India does not reduce Russian oil imports.

What Relief Did RBI Offer Earlier? Why Didn’t It Work?

Earlier Measure (November)

• Exporters with U.S. exposure were allowed to defer term-loan repayments
• Covered repayments due between September and December
• Banks required exporters to prove revenue loss

Outcome

• Less than 20% of eligible exporters applied
• Many firms could not document losses quickly
• As a result, the scheme had limited impact

What New Options Is RBI Considering?

RBI is now exploring:

• Relaxing eligibility conditions for loan moratorium
• Allowing fresh loans at subsidised interest rates

Bankers have also suggested that:

• Direct cash subsidies may work better than loan relief
• This would help exporters absorb losses and reduced profit margins

4. SEBI Extends Timeline for Mutual Fund Distributor Incentives

Source: Mint

Context

The Securities and Exchange Board of India (SEBI) has extended the deadline to 11 March for implementing an additional incentive structure for mutual fund (MF) distributors.

Earlier, this new incentive system was supposed to start from 1 February.

What Is This Incentive Scheme About?

The incentive scheme is meant to:

• Encourage MF distributors to bring in new individual investors from B-30 cities
  (cities other than the top 30 major cities)
• Promote greater participation of women investors from any city

Purpose of the Incentive Scheme

• To increase mutual fund penetration:
  • In B-30 cities (cities beyond the top 30 by MF assets)
  • Among women investors across all cities

Key Features of the Incentive Structure

• Eligibility for distributors:
  • New individual investors (new PAN) from B-30 cities
  • New women investors (new PAN) from T-30 and B-30 cities
• Incentive amount:
  • 1% of first lump-sum investment or first-year SIP
  • Maximum ₹2,000 per investor
• Condition:
  • Investor must remain invested for at least one year
• Funding source:
  • Paid from the 2 basis points already earmarked for investor education
  • Paid over and above trail commissions

Important Exclusions

• No dual incentive for the same woman investor from B-30 cities
• Incentive not applicable to:
  • ETFs
  • Certain Fund of Funds
  • Overnight, liquid, ultra-short, and low-duration schemes

Facts To Remember

1. 2018 Asian Games 1,500m gold-winner Johnson retires

National record-holder and Asian Games gold-winning Indian middle-distance runner Jinson Johnson announced his retirement after a 15-year career shaped by “relentless training, quiet struggles, and painful injuries”.

2. Markets Fall 1% Amid Uncertainty Over U.S. Tariffs

Indian stock markets saw their sharpest one-day fall in over four months due to fresh worries about U.S. trade tariffs linked to Russia.

• Sensex fell 780 points (0.9%) to close at 84,181
• Nifty 50 dropped 264 points (1.01%) to 25,877

This was the biggest single-day decline since August 26, 2025.

3. Indian Railways Becomes the World’s Largest Electrified Rail Network

Indian Railways has become the largest electrified railway system in the world, with about 99.2% of its broad-gauge network electrified as of November 2025.

This milestone places India ahead of all other countries in railway electrification.

4. Census 2027: First Phase to Begin from April 1, 2026

India’s long-delayed Census 2027 will begin with its first phase — Houselisting Operations (HLO) — from April 1 to September 30, 2026, across all States and Union Territories, according to a notification issued by the Registrar-General and Census Commissioner of India.

5. IRFC Secures ‘Excellent’ Rating from DPE for 5th Consecutive Year

In January 2026, Indian Railways Finance Corporation (IRFC) received an ‘Excellent’ performance rating from the Department of Public Enterprises (DPE) for FY 2024–25. This is the fifth consecutive year that IRFC has achieved the highest rating since its stock market listing in FY21.

6. K. Balasubrahmanian Appointed Chairman of AERB

In January 2026, the Appointments Committee of the Cabinet (ACC) appointed A K Balasubrahmanian as the Chairman of the Atomic Energy Regulatory Board (AERB) for a three-year tenure.

About AERB

• Established in 1983 under the Atomic Energy Act, 1962
• Headquarters: Mumbai, Maharashtra
• Apex body for nuclear and radiation safety regulation in India

7. Government Extends Abhishek Dev’s Tenure as APEDA Chairman

On January 6, 2026, the ACC approved a one-year extension of Abhishek Dev as Chairman of APEDA, effective from February 8, 2026.

About APEDA

• Established in 1985 under APEDA Act
• Headquarters: New Delhi
• Promotes exports of agricultural and processed food products

8. NASA’s Hubble Discovers Starless Gas Cloud ‘Cloud-9’

In January 2026, NASA’s Hubble Space Telescope discovered a starless, dark-matter-dominated gas cloud named Cloud-9, near Messier-94, about 14 million light-years from Earth.

Key Facts

• Nickname: Cloud-9
• Type: Starless hydrogen gas cloud
• Diameter: ~4,900 light-years
• Dark Matter Mass: ~5 billion solar masses
• Special Feature: Invisible in visible light, detected only through hydrogen

9. Earth’s Rotation Day – 8 January 2026

Earth’s Rotation Day is observed every year on 8 January to commemorate Léon Foucault’s 1851 pendulum experiment, which proved that the Earth rotates.

10. India Likely to Grow at 6.6% in FY27: UN Explained Simply

The United Nations has projected that India’s economy will grow by 6.6% in FY 2026–27, according to its report World Economic Situation and Prospects 2026, released by UN DESA.

Daily Current Affairs Quiz
09 January, 2026

National Affairs

1. UN DESA Pegs India’s Growth at 7.2% in FY 2025–26

Source: TH

Context

The United Nations Department of Economic and Social Affairs (UN DESA) has projected India’s GDP growth at 7.2% in FY 2025–26, broadly in line with the Union government’s estimate of 7.4%, despite rising global trade uncertainties, particularly from U.S. tariffs.

The projection was made in the World Economic Situation and Prospects 2026 report.

Key Drivers Supporting India’s Growth

According to UN DESA, India’s growth momentum will be sustained by:

1. Resilient Domestic Consumption

• Strong household demand continues to anchor growth
• Acts as a buffer against external shocks

2. Robust Public Investment

• Government-led capital expenditure remains a key growth engine
• Infrastructure spending supports multiplier effects across sectors

3. Supply-Side Expansion

• Continued growth in manufacturing and services
• Supports employment, exports, and productivity gains

Medium-Term Growth Outlook

The report projects a gradual moderation in growth over the medium term:

2. Centre to Launch Nationwide Cashless Treatment Scheme for Road Accident Victims

Source: TH

The Government of India is set to launch a nationwide cashless treatment scheme for road accident victims, aimed at reducing fatalities through timely medical intervention during the critical ‘Golden Hour’. The scheme is expected to be launched soon by Narendra Modi, according to Nitin Gadkari.

Key Features of the Scheme

1. Cashless Medical Treatment

• Coverage of up to ₹1.5 lakh per accident victim
• Applicable to road accidents anywhere in India, not limited to National Highways
• Focus on immediate hospital care in the first 60 minutes (Golden Hour) after an accident

2. Funding Mechanism

• Primary funding through third-party motor insurance, purchased at the time of vehicle registration
• In cases where the vehicle is uninsured, expenses will be met from the Road Safety Fund

3. Incentive for ‘Good Samaritans’

• Individuals who bring accident victims to hospitals — termed “Rahavirs” — will receive a cash award of ₹25,000
• Reward limited to one individual per incident
• Aims to counter bystander hesitation and legal fears

3. Textiles Ministry Signs MoUs with 15 States Under Tex-RAMPS Scheme

Source: TH

Context

The Ministry of Textiles has signed MoUs with 15 States under a new scheme called Tex-RAMPS (Textiles focused Research, Assessment, Monitoring, Planning and Start-Up). The agreements were signed during a national textile ministers’ conference held in Guwahati, which focused on strengthening India’s textile sector.

What is Tex-RAMPS?

Tex-RAMPS stands for Textile Research, Advanced Manufacturing, and Processing Scheme.
It is a Central Government scheme aimed at strengthening research, innovation, and advanced manufacturing in India’s textile sector.

• Launch/approval date: November 2025
• Implementation period: FY 2025-26 to FY 2030-31

Ministry

Implemented by the Ministry of Textiles, Government of India.

Objective

The scheme aims to:

• Promote cutting-edge research and innovation in textiles
• Encourage advanced manufacturing technologies
• Improve productivity, quality, and global competitiveness
• Support India’s transition from traditional textiles to high-value and technical textiles

Key Focus Areas

• Textile research & development (R&D)
• Advanced processing technologies
• Sustainable and eco-friendly manufacturing
• Technical textiles (medical, industrial, defence, geo-textiles, etc.)
• Industry–academia collaboration

4. 79th Foundation Day of the Bureau of Indian Standards (BIS)

Context

The 79th Foundation Day of the Bureau of Indian Standards (BIS) was celebrated recently.
On the occasion, the Union Minister highlighted that BIS is moving from a purely regulatory role to a more facilitative approach, in line with:

• Ease of Doing Business
• Quality-led growth
• Developing a quality culture across society

About Bureau of Indian Standards (BIS)

• BIS is India’s National Standards Body
• It ensures standardisation, certification, hallmarking, and quality assurance of goods and services
• Objective:
  • Protect consumers
  • Improve product quality
  • Enhance India’s global competitiveness

Establishment & Legal Framework

• Established: 1987
• Came into force: 1 April 1987
• Governing law: BIS Act, 2016
• Headquarters: New Delhi

New Initiatives Launched by BIS

1. BIS Standardisation Portal (Beta Launch)

• Fully digital end-to-end platform for standards development
• Covers entire lifecycle:
  • Proposal → drafting → publication
• Key features:
  • Dashboards
  • Role-based access
  • Faster timelines
  • Greater transparency

2. SHINE – Standards Help Inform & Nurture Empowered Women

• Women-centric initiative
• Works through:
  • Self-Help Groups (SHGs)
  • NGOs
• Objective:
  • Build quality awareness
  • Position women as “quality ambassadors” at the community level

3. BIS–SAKSHAM

• Annual Excellence Recognition Scheme
• Recognises:
  • Institutions
  • Individuals
• Focus on:
  • Knowledge
  • Skills
  • High-impact contributions in standardisation and quality

5. Uttarakhand Police Tops ICJS 2.0 Rankings

Source: BS

Context

Uttarakhand Police secured first rank in the ICJS 2.0 national rankings, while the Uttarakhand State Disaster Response Force (SDRF) was commended for its exemplary service during Prayagraj Mahakumbh-2025.

About ICJS 2.0

• ICJS stands for Inter-Operable Criminal Justice System.
• It is a flagship digital initiative of the Ministry of Home Affairs (MHA).
• ICJS 2.0 is the upgraded version aimed at end-to-end digital integration of the criminal justice system.

Key Points

• Uttarakhand ranked 1st with a score of 93.46, followed by Haryana (93.41) and Assam (93.16).
• Rankings were released by the National Crime Records Bureau (NCRB) through the CCTNS/ICJS Progress Dashboard.
• ICJS 2.0 integrates police, courts, prosecution, prisons, forensics, and fingerprint databases on a single digital platform.
• Effective implementation enabled faster investigations, digital case diaries, e-charge sheets, and evidence-based prosecution.
• The system follows the “One Data, One Entry” principle to reduce duplication and improve transparency.
• Ministry of Home Affairs targets full operationalisation of ICJS 2.0 by 2026.

Banking and Finance

1. RBI Cancels Registration of 35 NBFCs

Source: News on Air

Context

The Reserve Bank of India (RBI) has cancelled the Certificate of Registration (CoR) of 35 Non-Banking Financial Companies (NBFCs) for non-compliance with regulatory requirements.

Key Details:

• Action taken under Section 45-IA(6) of the RBI Act, 1934.
• Cancellations were effective between December 9 and December 31, 2025.
• These NBFCs are barred from carrying on NBFC business as defined under the Act.
• Most affected NBFCs are concentrated in Delhi and the National Capital Region (NCR).
• In addition, 16 NBFCs voluntarily surrendered their registration due to business exit, restructuring, or regulatory reclassification.

Reasons for Cancellation:

• Failure to meet minimum net owned fund (NOF) requirements
• Non-filing or irregular submission of statutory returns
• Non-compliance with prudential norms and governance standards
• Inactivity or violation of conditions of registration

About NBFCs:

• NBFCs provide services such as loans, asset financing, investments, and microfinance.
• They are regulated by RBI but cannot accept demand deposits like banks.

2. GDP Likely to Grow 7.4% in FY26

Source: IE

Context

India’s economy is expected to grow by 7.4% in FY 2025–26, according to the National Statistics Office (NSO).
This is higher than FY25’s growth of 6.5%, showing that the economy remains strong despite global challenges.

Real vs Nominal GDP

• Real GDP growth (7.4%) shows actual economic expansion
• Nominal GDP growth (8%) includes inflation

The gap between the two is very small (0.6%), which means inflation is extremely low.

In fact, the GDP deflator is just 0.5%, the lowest in nearly 50 years.
Because of this low inflation, nominal growth is the slowest since the COVID year (FY21).

Why Growth May Slow in the Second Half

The estimates assume:

• 8% growth in the first half of FY26
• 6.9% growth in the second half

This slowdown is mainly due to:

• High base effect (last year’s strong growth)
• Slower increase in government spending

What Is Driving the Economy?

1. Investment Is Improving

• Private investment and infrastructure spending are expected to rise
• Gross Fixed Capital Formation (GFCF) is projected to grow around 7%

2. Consumption Is Mixed

• Private consumption (PFCE) is improving but may plateau
• Government consumption (GFCE) remains strong

3. EPFO to Allow Instant PF Advance Withdrawal via BHIM App

Source: ET

Context

The Employees’ Provident Fund Organisation (EPFO) will soon allow its members to withdraw provident fund (PF) advances instantly through the BHIM app, likely within the next 2–3 months. This move is part of EPFO’s digital overhaul to improve ease of access for its 30+ crore members and manage its large corpus of over ₹26 lakh crore more efficiently.

How Will the New Facility Work?

• EPFO has partnered with the National Payments Corporation of India (NPCI)
• Members will:
  • Log in to the BHIM app
  • Submit an advance withdrawal request for allowed purposes such as:
    • Medical needs
    • Education
    • Special or emergency situations
• EPFO will verify and authenticate the claim digitally
• Once approved, the money will be credited instantly to the member’s UPI-linked bank account
• Payments will be routed through State Bank of India (SBI)

4. SEBI Introduces New Compliance Reporting Format for SIFs

Source: ET

Context

The Securities and Exchange Board of India (SEBI) has introduced a new compliance reporting format to ensure uniform and stricter reporting for Specialised Investment Funds (SIFs) managed by mutual funds and asset management companies (AMCs).

What Has Changed?

• SEBI has modified the Compliance Test Report (CTR)
• A separate section exclusively for SIFs has been added
• This ensures consistent and transparent compliance reporting across all AMCs managing SIFs

What AMCs Must Now Report

AMCs managing SIFs must disclose additional details, including:

• Minimum investment threshold compliance
• Certification requirements of SIF fund managers (when notified by SEBI)
• Whether investment strategies match SEBI-approved characteristics
• Limits on fees and expenses
• Investment restrictions, including:
  • Single-issuer exposure limits (for both debt and equity)

What are Specialised Investment Funds (SIFs)?

• SIFs are a new category of mutual fund products designed for sophisticated investors.
• They allow advanced, strategy-driven investments that go beyond traditional MF schemes.
• Positioned between mutual funds and Alternative Investment Funds (AIFs) in terms of risk and flexibility.

Key Features of SIFs

• Target investors: High-net-worth and informed investors
• Investment strategies: Long–short, sectoral, thematic, quantitative, and other specialised strategies
• Higher risk–return profile compared to conventional mutual funds
• Higher minimum investment threshold than regular MF schemes

Agriculture

1. Government Proposes New Law to Regulate Pesticides

Source: TH

Context

The Ministry of Agriculture and Farmers Welfare has asked the public for feedback on a draft Pesticides Management Bill, which will replace the old Insecticides Act of 1968. The aim of the new Bill is to make sure that pesticides used in India are safe, effective, and environmentally responsible

Why Is a New Law Needed?

The existing law is over 55 years old and does not fully address:

• Modern pesticides
• Environmental concerns
• Human and animal health risks
• New biological and traditional pest-control methods

The new Bill updates regulation to suit current scientific and agricultural needs.

What Does the Draft Bill Cover?

The Bill will regulate every stage of a pesticide’s life cycle, including:

• Manufacture and import
• Packaging and labelling
• Storage, transport, and sale
• Advertisement and distribution
• Use and final disposal

The goal is to ensure that only safe and effective pesticides are available to farmers and consumers.

What Is a ‘Pesticide’ Under the New Bill?

The Bill defines pesticides very broadly. It includes:

• Chemical and biological substances
• Pest killers and repellents
• Plant growth regulators
• Defoliants, desiccants, and sprouting inhibitors
• Substances used to protect crops before or after harvest

This wide definition helps close loopholes in regulation.

Focus on Safety and Environment

The Bill aims to:

• Reduce risks to humans and animals
• Protect beneficial organisms (not just kill pests)
• Safeguard the environment
• Promote biological pesticides and traditional knowledge-based solutions

New Regulatory Bodies Proposed

1. Central Pesticides Board

• Will advise the Centre and States on:
  • Scientific and technical issues
  • Good manufacturing practices
  • Safe disposal of pesticides and containers
  • Standards for pesticide advertisements
  • Recall procedures for unsafe pesticides

2. Registration Committee

• Will:
  • Approve or reject pesticides
  • Set conditions for registration
  • Periodically review safety and effectiveness
  • Cancel registrations if needed
  • Maintain a digital national register of pesticides

Strict Punishment for Serious Harm

If a pesticide causes death or grievous injury, the Bill provides for:

• Jail term up to 5 years
• Fine between ₹10 lakh and ₹50 lakh
• Or both

This is meant to improve accountability and deterrence.

Facts To Remember

1. Trump Clears Bill Allowing Up to 500% Tariffs on Buyers of Russian Oil

In a significant escalation of pressure on countries importing Russian energy, Donald Trump has cleared a bipartisan Russia Sanctions Bill that would empower the U.S. President to impose punitive tariffs of up to 500% on countries purchasing oil or uranium from Russia.

2. Rathour appointed Sri Lanka batting coach for T20 WC

Former India batting coach Vikram Rathour was on Thursday appointed Sri Lanka’s batting coach for the T20 World Cup, beginning on February 7. Rathour will assume charge on January 18 and will remain with the team until March 10.

3. NSO Releases First Advance Estimates (FAE) of GDP

• Real GDP growth: 7.4% (FY25: 6.5%)
• Real GDP size: ₹201.9 lakh crore
• Nominal GDP growth: 8% (lower due to low inflation)
• Nominal GDP size: ₹357.14 lakh crore
• Real GVA growth: 7.3%

4. Indian Navy to Set Up New Naval Base at Haldia (WB)

• Region: Bay of Bengal
• Purpose: Maritime surveillance, coastal security, rapid response
• Supports: Anti-piracy, HADR, evacuation ops
• Platforms: Fast Interceptor Crafts, Water-Jet Attack Crafts

5. India’s First Fully Paperless District Court

• Location: Kalpetta, Wayanad (Kerala)
• Inaugurated by: CJI Surya Kant
• Features:
  • 100% digital filing → judgment
  • AI-based case summaries & voice-to-text
  • Secure digital signatures

6. USA Withdraws from 66 International Bodies

• Decision by: President Donald Trump
• Includes:
  • International Solar Alliance (ISA)
  • IPCC, IRENA, UNFCCC, UNFPA

7. UN Declares 2026 as International Year of Rangelands & Pastoralists

• Declared by: UNGA
• Lead agency: FAO
• Why important?
  • Rangelands cover ~50% of Earth
  • Support 2 billion people & global livestock

8. Tamil Nadu’s First Jallikattu of 2026 Begins at Thatchankurichi

Tamil Nadu inaugurated its first Jallikattu event of 2026 at Thatchankurichi near Gandharvakottai, with 900 bulls, 300 tamers and strict safety oversight.

9. Bhoramdev Corridor Project Launched Under Swadesh Darshan 2.0 in Chhattisgarh

The Chhattisgarh government launched the ₹146-crore Bhoramdev Corridor Project under Swadesh Darshan 2.0 to develop Bhoramdev Dham as a major pilgrimage and tourism hub.

10. Hardeep Singh Ahluwalia Appointed Interim MD & CEO of Canara Bank

Canara Bank appointed Hardeep Singh Ahluwalia as Interim Managing Director and CEO from January 1, 2026, following the retirement of K. Satyanarayana Raju.

11. Venkaiah Naidu Elected President of Atal Smriti Nyas Society

Former Vice President M. Venkaiah Naidu was elected President of the Atal Smriti Nyas Society, succeeding the late Vijay Kumar Malhotra.

12. Andre De Grasse Named International Ambassador for Tata Mumbai Marathon 2026

Olympic sprint champion Andre De Grasse was appointed International Event Ambassador for the 21st Tata Mumbai Marathon scheduled on January 18, 2026.

12. Sjoerd Marijne Reappointed Chief Coach of Indian Women’s Hockey Team

Dutch coach Sjoerd Marijne was reappointed as Chief Coach of the Indian women’s hockey team, marking his third stint with the side.

13. World Introvert Day Observed on January 2

World Introvert Day was observed globally to recognise the strengths and contributions of introverted personalities.

14. International Mind–Body Wellness Day Marked on January 3

The day highlighted the importance of holistic well-being through mental, physical and emotional balance.

15. World Braille Day Observed on January 4

World Braille Day marked the birth anniversary of Louis Braille, promoting accessibility and inclusion for the visually impaired.

16. National Birds Day Observed on January 5

National Birds Day focused on bird conservation and their ecological importance.

17. World Day of War Orphans Observed on January 6

The day raised awareness about the challenges faced by children orphaned due to war and conflict.

If you want, I can also convert these into one-line current affairs notes, MCQ-friendly points, or a monthly CA compilation.

18. IEEE Medal of Honor 2026

• Awarded to: Jensen Huang (CEO, NVIDIA)
• For: Revolutionising GPUs & AI computing
• Prize: $2 million

19. Retirements & Obituary

Daily Current Affairs Quiz
10 January, 2026

International Affairs

1. Greenland

Context

The proposal by US President Donald Trump to acquire Greenland has resurfaced, drawing strong opposition from Denmark and European allies due to sovereignty concerns and international law constraints.

Geography & Location

• Greenland (Kalaallit Nunaat): World’s largest island.
• Location: North Atlantic Ocean, largely within the Arctic Circle, between North America and Europe.

Political Status

• Self-governing territory within the Kingdom of Denmark.
• Denmark controls defence, foreign affairs, and currency.
• Greenland’s elected government handles domestic affairs under the Self-Rule Act, 2009, recognizing the island’s right to self-determination.

Geological Features & Resources

• Greenland Ice Sheet: Covers ~80% of the island; second largest after Antarctica; important for climate change studies.
• Ancient shield rocks: Part of the Canadian Shield, mainly Precambrian rocks.
• Fjords and glaciers: Deep coastlines with fast-moving glaciers like Jakobshavn Glacier.
• Resource potential: Rich in rare earth elements, critical minerals, and hydrocarbons.

Legal Constraints

• UN Charter (Article 2(4)) prohibits acquiring territory by threat or use of force.
• Territorial transfer requires free, voluntary consent of:
  • Denmark (sovereign state)
  • People of Greenland
• Annexation or coerced cession is illegal under modern international law.

National Affairs

1. US Considers 500% Tariffs on Russian Oil Buyers

Source: TH

Context

The United States is reviewing a bipartisan proposal—the Sanctioning Russia Act of 2025—that would allow tariffs of up to 500% on countries continuing to import Russian energy, including India. The move follows US President Donald Trump’s support for the bill, aimed at curbing Russia’s revenues funding its war in Ukraine.

Background

• Post-2022 Russia–Ukraine War, India increased imports of discounted Russian crude to safeguard energy security.
• The US and G7 imposed a $60/barrel price cap to limit Russian revenues without disrupting global oil markets.
• India, despite slightly reducing imports, remains a major buyer of Russian oil, prompting previous US penalty tariffs on Indian exports (25%, later 50%).
• The proposed bill escalates pressure by linking energy trade to secondary sanctions.

Key Features of the Sanctioning Russia Act, 2025

• Secondary Sanctions Framework:
  • Empowers the US President to impose tariffs and sanctions on countries buying Russian oil, gas, uranium, and petroleum products—even if not directly trading with the US.
• Punitive Tariff Provision:
  • Tariffs of up to 500% on goods and services imported from countries knowingly trading in Russian-origin energy products.
• Financial Isolation of Russia:
  • Authorizes property-blocking sanctions on Russian financial institutions and foreign entities transacting with them.
• Presidential Discretion:
  • President can determine tariff levels and targets, allowing flexibility in diplomacy.
• National Interest Waiver:
  • Tariffs can be waived for up to 180 days for specific countries, goods, or services if in the US national interest.
• Strategic Objective:
  • Designed to cripple Russia’s war-financing capacity and pressure third countries to reduce dependence on discounted Russian energy.

2. UIDAI Launches Aadhaar Mascot ‘Udai’

Source: News on Air

Context

The Unique Identification Authority of India (UIDAI) has introduced ‘Udai’ (उदय), an official mascot for Aadhaar, aimed at making Aadhaar-related information more relatable, human-friendly, and accessible to citizens.

Purpose

Udai serves as a resident-facing communication companion, simplifying public understanding of Aadhaar services and promoting responsible usage. It is designed to enhance trust, improve clarity, and standardise communication for over a billion residents.

Organisation Involved

• Unique Identification Authority of India (UIDAI)

Key Features

• People-Centric Communication
  • Uses a friendly mascot to explain complex Aadhaar processes in a simple and engaging way.
• Wide Service Coverage
  • Covers Aadhaar functionalities such as updates, authentication, offline verification, selective data sharing, and adoption of new technologies.
• Participatory Creation
  • Selected through an open national contest with 875 entries and multi-tier evaluation, ensuring citizen participation.
• Inclusive Outreach
  • Designed to aid clarity across multiple languages, literacy levels, and digital access capabilities, making Aadhaar services more accessible to all residents.

3. PANKHUDI Portal

Source: TNIE

Context

The Union Minister has launched PANKHUDI, an integrated digital platform designed to enhance ease of living for women and children by streamlining CSR partnerships and stakeholder collaboration.

Ministry Involved

• Ministry of Women and Child Development

Aim

• Strengthen coordination, transparency, and structured participation among government bodies, citizens, NRIs, NGOs, and corporates.
• Improve service delivery and outcomes for women and children nationwide.

Key Features

• Unified CSR Interface
  • Single platform for individuals, NRIs, NGOs, corporates, and government agencies to collaborate on social initiatives.
• Priority Themes
  • Focus on Nutrition, Health, Early Childhood Care & Education (ECCE), Child Welfare & Protection, and Women’s Safety & Empowerment.
• Flagship Mission Support
  • Digitally supports Mission Saksham Anganwadi & Poshan 2.0, Mission Vatsalya, and Mission Shakti through defined workflows.
• End-to-End Transparency
  • Online registration, proposal submission, approvals, and real-time tracking
  • Only non-cash contributions are allowed to ensure traceability.

4. India–AI Impact Summit 2026

Source: PIB

Context

India has announced the India–AI Impact Summit 2026, scheduled for 19–20 February 2026 in New Delhi. This will be the first-ever global AI summit hosted in the Global South, positioning India as a hub for shaping inclusive and development-oriented artificial intelligence governance.

Purpose

The summit is a high-level multilateral forum, announced by the Prime Minister at the France AI Action Summit, aimed at advancing responsible, equitable, and inclusive AI cooperation, with a particular focus on Global South priorities.

Key Features

• Global South Leadership
  • First global AI summit hosted in a developing country.
  • Amplifies Southern perspectives in AI governance, often underrepresented in global AI discourse.
• Multilateral Continuity
  • Builds on G20 AI Principles, UN & GPAI resolutions, the African Declaration on AI, and the Hamburg Declaration on Responsible AI.
  • Ensures alignment with existing international AI norms while incorporating Global South priorities.
• Three Sutras Framework
  • People: Human-centric, inclusive, culturally sensitive, and trustworthy AI.
  • Planet: Environmentally responsible AI aligned with climate action, sustainability, and reduced energy footprint.
  • Progress: AI for equitable growth in health, education, governance, agriculture, and public services.
• Outcome-Oriented Approach
  • Focus on concrete deliverables, cooperative mechanisms, and implementation frameworks, rather than declarations alone.
  • Encourages actionable solutions for AI deployment in the Global South.
• Strategic Geopolitics of AI
  • Addresses challenges like employment disruption, algorithmic bias, and energy-intensive AI systems.
  • Frames AI within the rapidly evolving global technological and geopolitical order.

5. National IED Data Management System (NIDMS) Launched

Source: News on Air

Context

Union Home Minister Amit Shah inaugurated the National Improvised Explosive Device Data Management System (NIDMS), a first-of-its-kind national digital platform that compiles data on all bomb blasts and IED incidents in India since 1999.

What is NIDMS?

NIDMS is a secure, centralised database designed to enable systematic analysis of bomb explosion-related incidents across the country. It integrates previously siloed datasets to support counter-terrorism investigations and strategic planning.

Key Objectives

• Strengthen investigation of terrorist incidents
• Enable trend analysis of explosions and IED usage
• Identify patterns, modus operandi, and inter-linkages between incidents
• Support data-driven counter-terror strategies

Institutional Framework

• Headquarters: National Security Guard (NSG) garrison, Manesar, Haryana
• Primary Authority: NSG (post-blast analysis lead force)
• Access: State Police, Central Armed Police Forces (CAPFs), and other investigating agencies

Core Features

• Comprehensive Coverage: Details of every blast/IED incident since 1999
• Signature Linking: Connects incidents based on:
  • Location
  • Type of explosion
  • Circuit and device used
• Pattern Recognition: Analyses explosives, circuits, and operational methods
• Single-Window Access: One-click access to data earlier scattered across case files
• Secure Sharing: Standardised and protected data exchange among agencies

6. DRDO Conducts Key Test for Hypersonic Missile Programme

Source: TOI

Context

The Defence Research and Development Organisation (DRDO) has achieved a major milestone in India’s hypersonic missile development programme through a successful long-duration ground test of a critical propulsion component.

Key Development

• The Defence Research & Development Laboratory (DRDL), Hyderabad successfully conducted a long-duration ground test of an actively-cooled scramjet full-scale combustor.
• The test was carried out at DRDL’s state-of-the-art Scramjet Connect Pipe Test Facility.

Scramjet Technology

• Scramjet (Supersonic Combustion Ramjet) is an air-breathing engine
• Enables sustained flight at hypersonic speeds (Mach 5 and above)
• Uses supersonic combustion, allowing missiles to:
  • Exceed five times the speed of sound (over 6,100 kmph)
  • Maintain high speeds for extended durations without carrying onboard oxidiser

7. Battery Energy Storage Systems (BESS)

Source: Mint

Context

With battery energy storage systems (BESS) emerging as a key pillar of India’s renewable energy transition—covering both grid-scale storage and electric mobility—the government is exploring a ₹500-crore allocation in the FY27 Budget to strengthen domestic testing, certification, and R&D infrastructure.

Battery Energy Storage Systems (BESS)

• BESS refers to systems that store electrical energy in batteries for later use, enabling electricity to be dispatched on demand.
• Key for grid stability, renewable energy integration, and electric mobility.

Objectives of the Initiative

• Set up National BESS Testing and Safety Centres under National Accreditation Board (NABL) or Bureau of Indian Standards (BIS)
• Establish certification centres to validate prototypes of advanced battery chemistries
• Support battery-pack level testing for electric vehicles (EVs)
• Promote R&D partnerships between industry, national laboratories, and Indian Institutes of Technology (IITs) with multi-year grants

Banking and Finance

1. SEBI Excludes Small Brokers from Technical Glitch Framework

Source: Mint

Context

The Securities and Exchange Board of India (SEBI) has revised its technical glitch reporting framework, exempting smaller stock brokers from certain compliance requirements.

Key Highlights:

1. Scope and Applicability

• Applies only to stockbrokers with >10,000 registered clients
• Exempts ~60% of small and mid-sized brokers with limited trading technology dependence
• Stock exchanges will release the list of applicable brokers

2. Glitch Classification and Exemptions

Not all system issues are reportable:

• Excluded glitches:
  • Originating outside the broker’s trading architecture
  • Do not directly affect trading functionality
  • Have negligible impact on clients or trading services
• Provides immunity from penalties for problems beyond broker control

3. Reporting Requirements

• Preliminary incident report: Within 1 day (or next trading day if on a holiday)
• Root cause analysis report: Within 14 working days
• Reporting portal: Single common reporting platform replacing multiple reports to different exchanges
• Reporting timeline: Extended from 1 hour to 2 hours for initial reporting to exchanges and clients
• Trading holidays are accounted for in reporting timelines

2. Unclaimed Deposits

Context

The Finance Ministry will review the progress made by Public Sector Banks (PSBs) in settling unclaimed bank deposits and assets at a high-level meeting scheduled for January 14.

Unclaimed Deposits

• Deposits in bank accounts that remain inactive for a specified period, usually 10 years, with no withdrawal or claim by the depositor.
• Transferred by banks to the Depositor Education and Awareness (DEA) Fund under the Government of India.

Regulatory Oversight:

• Ministry of Finance monitors the progress of Public Sector Banks (PSBs) in settling unclaimed deposits.
• PSBs are required to facilitate claims and report unclaimed funds regularly.
• Current Status of Unclaimed Deposits: ₹63,939 crore transferred by PSBs to the DEA Fund as of March 31, 2025

3. Offsite Monitoring and Surveillance (OSMOS)

Source: TH

Context

The Reserve Bank of India (RBI) plans to strengthen offsite supervision of banks in real-time, moving beyond traditional onsite inspections. This was highlighted by RBI Governor Sanjay Malhotra at the Third Annual Global Conference of the College of Supervisors, Mumbai.

Current Supervision Framework

• RBI traditionally relies on onsite inspections under a risk-based CAMELS framework, covering:
  • Capital adequacy
  • Asset quality
  • Management quality
  • Earnings
  • Liquidity
  • Systems
• Inspections are annual or targeted, focusing on core risk areas

Offsite Monitoring and Surveillance (OSMOS)

• OSMOS is a technology-driven framework used by the Reserve Bank of India (RBI) for real-time, offsite supervision of banks.
• Enables continuous monitoring of banks’ financial health without waiting for periodic onsite inspections.

Purpose:

• Detect risks early in asset quality, liquidity, capital adequacy, and operational health.
• Shift focus from manual, periodic inspection to tech-enabled continuous supervision.
• Reduce systemic risks and improve regulatory efficiency.

Key Features of OSMOS

• Real-Time Offsite Surveillance:
  • Uses daily, weekly, and monthly automated data submissions by banks.
  • Covers financial statements, liquidity ratios, capital adequacy, and risk indicators.
• Data Analytics:
  • Advanced data analytics and dashboards help supervisors detect stress signals quickly.
  • Supports risk-based supervision and prioritizes attention on banks showing early signs of distress.
• Resource Optimisation:
  • About 70–75% of supervisory effort can be shifted from onsite inspection to offsite data analysis.
  • Reduces dependency on manual checks, enabling faster and informed decisions.
• SupTech & AI Integration:
  • Incorporates AI-enabled tools and supervisory technology (SupTech).
  • Improves predictive analytics for bank stress and potential failures.
• Continuous Risk Assessment:
  • Enables quarterly checks for weak banks, early detection of non-performing assets, and liquidity mismatches.
  • Enhances RBI’s ability to intervene proactively rather than reactively.
• Data Sources & Platforms:
  • RBI collects data from banks through multiple reporting platforms, now integrated for easier analysis.
  • Examples include: CRILC (Central Repository of Information on Large Credits), supervisory returns, and asset quality databases.

4. SEBI Tightens Merchant Banking Norms

Source: Mint

Context

The Securities and Exchange Board of India (SEBI) has introduced stringent new regulations for merchant bankers, effective 3 January 2026, aimed at pruning inactive players, strengthening balance sheets, and reducing systemic risk.

Merchant Bankers

• Merchant bankers are financial intermediaries who assist companies in raising capital from the markets and provide corporate advisory services.
• Their services include issue management, underwriting, portfolio management, loan syndication, and corporate restructuring.

Regulator:

• Securities and Exchange Board of India (SEBI) regulates merchant bankers under SEBI (Merchant Bankers) Regulations.

New Regulatory Requirements

1. Net Worth and Liquid Net Worth
   • Category I:
     • Phase I (Jan 2027): Net worth ₹25 crore, Liquid Net Worth ₹6.25 crore
     • Phase II (Jan 2028): Net worth ₹50 crore, Liquid Net Worth ₹12.5 crore
   • Category II:
     • Phase I (Jan 2027): Net worth ₹7.5 crore, Liquid Net Worth ₹1.87 crore
     • Phase II (Jan 2028): Net worth ₹10 crore, Liquid Net Worth ₹2.5 crore
   • Firms failing Category I standards drop to Category II; failing Category II standards barred from new issues
2. Minimum Revenue Mandate
   • Category I: ₹25 crore over a rolling three-year period
   • Category II: ₹5 crore
   • Enforcement starts April 2029, with exceptions for pandemics or global recessions
3. Capital and Underwriting Norms
   • Definition of eligible liquid assets tightened, with haircuts on instruments (equities, govt securities)
   • Underwriting exposure capped at 20x liquid net worth
4. Staffing and Governance
   • Mandatory NISM Series-IX Merchant Banking Certification for all employees
   • Certification deadlines:
     • Existing staff: 2 Jan 2027
     • New staff: within 90 days of joining post 3 Jan 2026
   • Experience norms tightened; core activities cannot be outsourced beyond 90 days from 3 April 2026

5. Axis Finance Launches Vyapar Business Loan for MSMEs

Source: BL

Context

On 8th January 2026, Axis Finance Limited (AFL), a wholly owned NBFC subsidiary of Axis Bank, launched the ‘Axis Finance Vyapar Business Loan’. It is a collateral-free credit solution aimed at Micro and Small Enterprises (MSEs) in semi-urban and rural India.

About Vyapar Business Loan

• Purpose: To support working capital needs, business expansion, and equipment upgrades for micro and small business owners.
• Loan Amount: Up to ₹10 lakh.
• Collateral: Not required.
• Repayment: Flexible tenures tailored to business needs.
• Process: Minimal documentation, data-driven underwriting, and quick disbursal.
• Target Segment: Shopkeepers, traders, service providers, and small entrepreneurs in retail, trading, and services sectors.

Other Initiative by Axis Bank

• Safety Centre on Mobile Banking App ‘Open’
• Features:
  • SMS authentication for transactions
  • Blocking Internet Banking, fund transfers, UPI, and Net Banking transactions
  • Restricting addition of new payees
  • Setting secure transaction limits to enhance digital banking security

Facts To Remember

1. Varanasi ‘Tent City’ Violated Environmental Norms: NGT

Context

The National Green Tribunal (NGT) has ruled that the ‘Tent City’ set up on the Ganga riverbed in Varanasi, Uttar Pradesh, and inaugurated by the Prime Minister in January 2023, was established and operated in violation of environmental laws.

About IATA

• Global airline trade body representing over 360 airlines worldwide.
• Covers more than 80% of global air traffic.
• Sets industry standards, including safety, security, efficiency, and sustainability in air transport.

2. IREDA Secures ‘Excellent’ Rating in MoU Performance with MNRE

Organisation: Indian Renewable Energy Development Agency (IREDA), under Ministry of New & Renewable Energy (MNRE)
Achievement: “Excellent” rating, score: 96.42/100 for FY25 in MoU performance with MNRE.

3. MeitY Inaugurates ‘Param Shakti’ Supercomputing Facility at IIT Madras

Event: Inauguration of Param Shakti, state-of-the-art supercomputing facilityPlace: IIT Madras, Chennai, Tamil Nadu
Inaugurated By: Shri S. Krishnan, Secretary, MeitY

4. Book on Life of President Droupadi Murmu Released

Event: Release of biography ‘Agni Sarassulo Vikasinchina Kamalam Droupadi Murmu’
Date: January 2026
Place: Andhra University, Visakhapatnam, Andhra Pradesh
Author: Former MP Yarlagadda Lakshmi Prasad
Released By: Lakshmamma, a sanitation worker – symbolic of empowerment

5. Pravasi Bharatiya Divas (PBD) – 9 January

Event: Observance of Pravasi Bharatiya Divas (PBD)
Date: 9th January (biennial)
Purpose: Honors contributions of the overseas Indian community; marks Mahatma Gandhi’s return from South Africa in 1915
Organizer: Ministry of External Affairs (MEA)
Format: Biennial convention since 2015
Next Convention: 2027 (19th edition)

6. Ensure All Calls Are from 1600-Series Numbers: IRDAI to Insurers

The Insurance Regulatory and Development Authority of India (IRDAI) has directed all insurers to use only the 1600-number series for making service and transactional voice calls to policyholders and customers.

7. IBBI Launches IICA PGIP Website

IBBI Chairperson Ravi Mittal launched the Post Graduate Internship Programme (PGIP) website at IICA to strengthen skill-building in corporate governance and insolvency.

8. EXIM Bank Raises $1 Billion via USD Bonds

EXIM Bank issued dual-tranche U.S. dollar-denominated bonds, marking India’s first debt issuance of 2026 and supporting external financing and trade.

8. SBI Promotes India-Israel Trade in Rupees

SBI, India’s sole bank in Israel, facilitates bilateral trade in INR as FTA discussions advance, reducing currency risk and boosting trade autonomy.

9. Abhyuday-3 Technical Hindi Symposium

CSIR–NIScPR, IIT Indore, and IIT Jodhpur jointly organised Abhyuday-3 to promote technical knowledge and research communication in Hindi.

10. Siddaramaiah Becomes Longest-Serving Karnataka CM

Siddaramaiah surpassed Devaraj Urs’s record, becoming the longest-serving Chief Minister in Karnataka, highlighting continuity in leadership and social justice focus.

11. India’s GDP Projected at 6.9% for FY 2026-27

India Ratings & Research (Ind-Ra) projected 6.9% GDP growth for FY 2026-27, slightly lower than 7.4% in FY 2025-26, indicating moderated economic momentum.

12. Justice A. Muhamed Mustaque Sworn in as Chief Justice of Sikkim High Court

Justice Mustaque became the 24th Chief Justice of Sikkim High Court, with Governor Om Prakash Mathur administering the oath.

13. Steve Smith Becomes Second-Highest Run-Scorer in Ashes History

Australian batter Steve Smith surpassed Jack Hobbs to become the second-highest run-scorer in Ashes history during the 5th Test at Sydney.

14. Manoj Kothari Passes Away at 67

Former IBSF World Billiards Champion and Dhyan Chand Awardee Manoj Kothari passed away, leaving a legacy in cue sports and mentorship.

Daily Current Affairs Quiz
11&12 January, 2026

National Affairs

1. Aditya-L1 Solar Mission ISRO

Context

The Indian Space Research Organisation (ISRO) announced that its Aditya-L1 solar mission has provided crucial insights into how intense solar storms affect Earth’s magnetosphere, especially during extreme space-weather events.

Key findings of the study

• The most severe impacts occurred when the turbulent region of a solar storm struck Earth.
• This turbulence strongly compressed Earth’s magnetic field, pushing it unusually close to the planet.
• As a result, some geostationary orbit satellites were briefly exposed to harsh space conditions, a phenomenon seen only during severe space-weather events.

About the Mission

• Mission Type: India’s first dedicated solar observatory
• Launch Vehicle: PSLV-XL (Polar Satellite Launch Vehicle – XL configuration)
• Launched by: Indian Space Research Organisation
• Launch Date: September 2023
• Orbit: Halo orbit around L1 (Lagrange Point-1), ~1.5 million km from Earth towards the Sun
• Objective: Continuous observation of the Sun without Earth’s shadow

2. Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP)

Source: BS

Context

India is set to deepen maritime security engagement in Asia through closer cooperation with Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP). The move aims to promote safe and secure seas amid evolving maritime security threats.

Key Developments

• India will enhance coordination with the ReCAAP Information Sharing Centre (ISC), based in Singapore.
• Greater cooperation is expected with India’s Maritime Rescue Coordination Centre (MRCC), which serves as the Indian Focal Point for ReCAAP.

About ReCAAP

• Established: 2006
• Members: 21 countries
• Headquarters: Singapore
• Nature: Government-to-government regional framework
• Objective:
  • Combat piracy and armed robbery against ships
  • Enhance maritime security and safety
• India is a founding member.

3. PSLV-C62 / EOS-N1 Mission

Source: ET

Context

The 22.5-hour countdown has begun for the launch of PSLV-C62 / EOS-N1 mission from Sriharikota. Launch scheduled at 10:17 a.m. from the first launch pad.

Launch Details

• Launch vehicle: Polar Satellite Launch Vehicle (PSLV)
• Mission name: PSLV-C62 / EOS-N1
• Variant: PSLV-DL
• PSLV flight number: 64th
• Total launches from Sriharikota: 105th
• Launch site: Satish Dhawan Space Centre
• Executing agency: Indian Space Research Organisation (ISRO)

Mission Nature

• Commercial mission executed through NewSpace India Limited (NSIL)
• Payloads:
  • EOS-N1 (primary satellite): Injected into Sun Synchronous Orbit (SSO)
  • 15 co-passenger satellites
• EOS-N1:
  • Earth Observation Satellite
  • Built for strategic purposes

4. Bharatiya Antariksh Station (BAS): India’s Space Station

Source: TOI

Context

The Indian Space Research Organisation (ISRO) has taken a formal step towards establishing India’s own space station by inviting Indian industry to develop the first module of the proposed Bharatiya Antariksh Station (BAS).

BAS-01 Module

• First operational module of India’s future space station
• To be placed in Low Earth Orbit (LEO)
• Scheduled for deployment by 2028
• Forms the first step towards a five-module space station by 2035

Key Features of Bharatiya Antariksh Station (BAS)

• Planned mass: ~20 tonnes
• Designed to host three astronauts
• Envisioned as a modular space station
• Intended to ensure sustained human presence in space
• Successor programme to Gaganyaan

5. Govt May Mandate Source Code Access for Smartphone Security

Source: TH

Context

The Union government is considering mandating smartphone manufacturers to share source code and comply with new software security requirements. The proposal has triggered concerns from global tech firms such as Apple and Samsung, according to a Reuters report.

What is Proposed?

• Under the proposed Indian Telecom Security Assurance Requirements (ITSAR):
  • Smartphone makers may be required to:
    • Provide access to source code for security analysis
    • Notify the government of major software updates
    • Comply with a set of 83 security standards
• Objective:
  • Enhance user data security
  • Prevent online fraud, cyber breaches, and malware threats

6. AyulSat

Source: ET

Context

India is a step closer to becoming the second country in the world to demonstrate on-orbit satellite refuelling, with the launch of AyulSat aboard PSLV-C62. The mission is led by Indian space start-up OrbitAid, in collaboration with Indian Space Research Organisation (ISRO).

What is AyulSat?

• Launched by: Indian Space Research Organisation
• Launch Vehicle: PSLV
• Mission Type: Technology Demonstration
• Satellite Mass: ~25 kg
• Developer: OrbitAid Aerospace
• Launch Date: January 2026

Mission Objective

• To demonstrate technologies critical for on-orbit servicing, including:
  • Fuel transfer mechanisms in micro-gravity
  • Satellite refuelling interfaces
  • Propellant management in space
• Acts as a precursor mission for future in-orbit refuelling and satellite life-extension systems

7. TERI Report on India’s PV Manufacturing

Context

The The Energy and Resources Institute (TERI) released the report “India’s PV Manufacturing & Its Strategic Inflection Points” at the Bharat Climate Forum 2026, alongside the launch of the National Cleantech Manufacturing Implementation Plan.

The report examines how India can capture higher domestic value from its rapidly expanding solar deployment by strengthening upstream and midstream manufacturing.

What the TERI Report Is About

It is a strategic policy-and-industry assessment of India’s solar photovoltaic (PV) manufacturing value chain, covering:

• Polysilicon
• Ingots and wafers
• Solar cells
• Solar modules

The report identifies “strategic inflection points” where targeted interventions in policy, finance, R&D, and skilling can make India globally competitive, resilient, and less import-dependent.

Key Trends Highlighted

8. Indian Army Launches DIME Platform

Source: ET

Context

On 8 January 2026, the Indian Army launched Depot Integration Management Edition (DIME), a new digital platform aimed at modernising and digitising military logistics management.

What is DIME?

DIME is a comprehensive digital logistics platform designed to provide commanders with real-time, data-driven visibility of spares, equipment, and inventory across the Army’s logistics chain.

Development Details

• Developed by: Indian Army and Bhaskaracharya National Institute for Space Applications and Geo-Informatics (BISAG-N)
• Ministry Involved: Ministry of Electronics and Information Technology (MeitY)

Purpose of DIME

• Integrate inventory control, maintenance planning, and demand forecasting
• Enable faster and more informed decision-making by commanders
• Replace fragmented, manual logistics processes with a unified digital system

9. Indian Army Procures Solar-Powered MAPSS UAV

Context

In January 2026, the Indian Army placed a Rs 168 crore order with NewSpace Research & Technologies (NRT) for the Medium Altitude Persistent Surveillance System (MAPSS) UAV. This marks the first deployment of solar-powered UAVs by the Indian Army, beyond battery-powered and tethered drones.

About MAPSS UAV

Indigenous Development

• Developed under the iDEX framework
• Reflects India’s push for Atmanirbhar defence technologies

Long Endurance Capability

• Solar-powered recharging enables persistent, long-duration flights
• Suitable for continuous Intelligence, Surveillance and Reconnaissance (ISR) missions

Operational Roles

• Border and area surveillance
• Electronic Intelligence (ELINT)
• Communications relay
• Artillery spotting and network extension

Advanced Mission Autonomy

• Capable of operating in GNSS-denied environments
• Reduces logistical dependence and enhances survivability in contested zones

Low Detectability

• Quiet electric propulsion
• Low thermal signature
• Minimises enemy detection risks

Banking and Finance

1. Bank of Baroda Gets RBI Approval to Set Up SPD Subsidiary

Source: BL

Context

In January 2026, Bank of Baroda (BoB) received in-principle approval from the Reserve Bank of India (RBI) to switch from its existing Bank Primary Dealer (PD) business to a wholly-owned subsidiary for undertaking Standalone Primary Dealer (SPD) business.

This marks a key step in the strategic restructuring of Public Sector Banks (PSBs).

What Does the Approval Mean?

• BoB will hive off its PD activities from the bank’s balance sheet
• The new entity will operate as a Standalone Primary Dealer (SPD)
• Final setup is subject to other regulatory approvals

Regulatory Background and Policy Context

• The RBI introduced the Primary Dealer (PD) system in 1995 to deepen the Government Securities (G-Sec) market
• In 2006–07, banks were allowed to undertake PD business departmentally
• RBI has now encouraged clearer separation of risks by strengthening the SPD framework

RBI Liquidity Support to SPD

• RBI increased the aggregate Standing Liquidity Facility (SLF) limit for SPDs
• From Rs 10,000 crore to Rs 15,000 crore
• Effective from April 2, 2025
• Liquidity available at the prevailing repo rate

About Primary Dealers (PDs)

Primary Dealers are RBI-registered NBFCs that act as intermediaries in the Government Securities market, ensuring liquidity and smooth debt issuance.

Functions

• Buy government securities directly from RBI
• Underwrite and distribute G-Secs
• Provide liquidity through secondary market trading

Types of PDs in India

Bank PDs

• PD business conducted as a department within a commercial bank

Standalone Primary Dealers (SPDs)

• Either:
  • Wholly-owned subsidiaries of banks, or
  • NBFCs incorporated under the Companies Act

About Bank of Baroda

• MD & CEO: Dr. Debadatta Chand
• Headquarters: Vadodara, Gujarat
• Tagline: India’s International Bank
• Established: 1908

2. Skydo Gets RBI Authorization as PA-CB

Source: BL

Context

On 9 January 2026, Skydo, a cross-border payments platform, received final authorization from the RBI to operate as a Payment Aggregator – Cross Border (PA-CB) entity.