Daily Current Affairs (DCA) 2&3 June, 2026

Daily Current Affairs Quiz
2 & 3 June, 2026

1. PM SVANidhi Scheme Completes Six Years

Context:

The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme has completed six years of implementation since its launch in June 2020, during the COVID-19 pandemic. The scheme is a central sector micro-credit programme for urban street vendors and hawkers, jointly administered by the Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS) under the Ministry of Finance. Its goal is to provide formal, collateral-free working capital loans, support digital onboarding of vendors, and create a social security net through convergence with other welfare schemes. The scheme offers loans in three progressive tranches of ₹15,000, ₹25,000, and ₹50,000, with each higher tranche unlocking automatically upon timely repayment of the previous loan.

Key Highlights

• Scheme: PM SVANidhi (Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi).
• Type: Central Sector Scheme, micro-credit for urban street vendors and hawkers.
• Launched: June 2020, during COVID-19.
• Administered by: Ministry of Housing and Urban Affairs (MoHUA) and Department of Financial Services (DFS).

Key Features

Feature	Details
Working Capital Loans	Collateral-free working capital loans are provided in progressive tranches of ₹15,000, ₹25,000, and ₹50,000 to eligible street vendors.
Interest Subsidy	Vendors receive a 7% annual interest subsidy on timely or early repayment of loans.
Digital Incentives	Street vendors are encouraged to adopt digital payments and can earn cashback incentives on retail and wholesale digital transactions.
Credit Expansion	Vendors who successfully repay their second loan tranche become eligible for UPI-linked RuPay Credit Cards with credit limits up to ₹30,000.
Extended Timeline	The scheme’s lending period has been extended until March 2030, aiming to benefit 1.15 crore street vendors, including 50 lakh new beneficiaries.
Capacity Building & Entrepreneurship Development	Beneficiaries receive training in financial literacy, digital literacy, and food safety & hygiene in collaboration with Food Safety and Standards Authority of India (FSSAI).

PM SVANidhi (Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi)

PM SVANidhi (Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi) is a Central Sector Scheme launched in June 2020 by the Ministry of Housing and Urban Affairs (MoHUA) in collaboration with the Department of Financial Services (DFS). The scheme was introduced in response to the economic disruption caused by the COVID-19 pandemic. It is a first-of-its-kind micro-credit initiative aimed at supporting street vendors by providing easy access to formal credit.

Key new facts:

Indicator	Detail
Extended lending timeline	Until March 2030
Target beneficiaries	1.15 crore street vendors
New beneficiaries to be added	50 lakh new vendors
Implementation partner	Small Industries Development Bank of India (SIDBI)
SIDBI’s role	Technical and implementation partner; manages the credit guarantee trust fund

The 8 Schemes under “SVANidhi se Samriddhi”:

#	Scheme	Purpose
1	Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)	Life insurance cover of ₹2 lakh for ages 18-50, premium ₹436/year
2	Pradhan Mantri Suraksha Bima Yojana (PMSBY)	Accident insurance of ₹2 lakh for ages 18-70, premium ₹20/year
3	PM Jan Dhan Yojana (PMJDY)	Zero-balance bank account, RuPay debit card, accident and life cover
4	Building and Other Construction Workers (BoCW) Registration	Welfare board benefits for construction workers
5	PM Shram Yogi Maandhan Yojana	Voluntary pension for unorganised workers, ₹3,000/month after age 60
6	One Nation One Ration Card (ONORC)	Portability of ration entitlement across India
7	Janani Suraksha Yojana (JSY)	Cash incentive for institutional deliveries, especially in LPS states
8	PM Matru Vandana Yojana (PMMVY)	Maternity benefit of ₹5,000 for the first child (PMMVY 2.0 includes second child if female)

About the News (Q&A)

Why has the scheme been extended until March 2030?

(a) To deepen coverage to 50 lakh new vendors. (b) To support the next generation of street-vendor entrepreneurs. (c) To allow time for credit history building, digital adoption, and welfare convergence to mature. (d) To sustain the momentum of formal credit absorption into informal urban markets.

What is the role of SIDBI in PM SVANidhi?

SIDBI is the technical and implementation partner. It: (a) Manages the Credit Guarantee Trust Fund that secures the loans offered by banks under the scheme. (b) Helps banks underwrite collateral-free risk by providing a safety net in case of defaults. (c) Coordinates the technology platform for application processing, loan tracking, and digital onboarding.

What is the importance of “SVANidhi se Samriddhi”?

It transforms the scheme from a credit programme into a holistic welfare net by linking vendors to 8 core central government welfare schemes, covering life insurance, accident insurance, banking, pension, ration portability, maternal benefits, and construction-worker welfare.

Background Concepts (Q&A)

What is “SVANidhi se Samriddhi (SSS)”, and Why is Welfare Convergence Important?

SVANidhi se Samriddhi (SSS) is an important sub-programme of PM SVANidhi, designed to link street vendors and their families to eight selected Central Government welfare schemes, in a single, integrated manner. The idea is that a street vendor often qualifies for many welfare benefits, like food rations, maternal benefits, life and accident insurance, pension, school scholarships, health insurance, and skill training, but does not know how to access them, or has to fill multiple separate applications. Under SSS, field volunteers and ULB officials carry out socio-economic profiling of the vendor’s family, identify their eligibility for various schemes, and facilitate their enrolment, creating a one-stop welfare gateway.

Practice MCQs

Q1. With reference to the PM SVANidhi scheme, consider the following statements:

1. PM SVANidhi was launched in June 2020 during the COVID-19 pandemic as a central sector micro-credit scheme.
2. It is jointly administered by the Ministry of Housing and Urban Affairs and the Department of Financial Services.
3. It provides collateral-free working capital loans in three progressive tranches of ₹15,000, ₹25,000, and ₹50,000.
4. Higher loan tranches are unlocked automatically on timely repayment of the previous loan.

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

Q2. Consider the following statements about the incentives offered under PM SVANidhi:

1. The scheme offers an interest subsidy of 7 per cent per annum on timely or early repayment, credited directly to the vendor’s account.
2. Vendors are eligible for UPI-linked RuPay Credit Cards with a limit of up to ₹30,000 after successfully repaying the second tranche.
3. A digital cashback incentive of up to ₹1,600 per year rewards vendors who use digital payment gateways.
4. The scheme provides loans only at market interest rates, without any subsidy.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four (Statement 4 is wrong; the scheme offers a 7 per cent interest subsidy on timely repayment, NOT only market-rate loans.)

Q3. With reference to the six-year performance of PM SVANidhi, consider the following statements:

1. More than 75.5 lakh unique street vendors have accessed the scheme.
2. Total loan disbursement under the scheme exceeds ₹17,800 crore.
3. Around 46 per cent of beneficiaries are women, while about 70 per cent belong to marginalised communities.
4. About 95 per cent of beneficiaries reportedly accessed formal institutional credit for the first time in their lives.

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

Q4. Consider the following statements about the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014:

1. The Act provides for Town Vending Committees (TVCs) in each city or town.
2. At least 40 per cent of TVC members must be street vendors themselves, of whom at least one-third must be women.
3. The Act provides for designation of vending zones, restricted vending zones, and no-vending zones in urban areas.
4. The Act is the legal foundation that underpins the identification of beneficiaries for the PM SVANidhi scheme.

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

Answer Key

1. (d), All four statements are correct.
2. (a), Statements 1, 2, 3 are correct; Statement 4 is wrong because PM SVANidhi explicitly offers a 7 per cent interest subsidy on timely repayment.
3. (e), All four statements are correct.
4. (e), All four statements are correct.

Exam Relevance

UPSC Prelims	GS Paper II on Government Schemes (Welfare, Urban Poor, Financial Inclusion)
UPSC Mains	GS Paper II on Welfare schemes for vulnerable sections; GS Paper III on Indian Economy, Inclusive growth, Informal sector
Essay	“Micro-credit, macro-difference”, “The dignity of the kirana cart”
BPSC and State PCS	Welfare, Urban policy, Current Affairs
Banking (RBI Gr B, SBI PO, IBPS, NABARD)	Very high importance, financial inclusion, micro-credit
NABARD Grade A	Inclusive finance, urban-rural informal sector

2. BrahMos Missile

Context:

At the Shangri-La Dialogue in Singapore, India’s Defence Secretary has confirmed that India has signed a strategic ₹5,800-crore deal to export BrahMos supersonic cruise missiles to Vietnam, with a similar export agreement with Indonesia in its final stages. BrahMos is a state-of-the-art, long-range, universal supersonic cruise missile that can be launched from land, sea, sub-sea, and air platforms, and operates on a “Fire and Forget” principle, maintaining supersonic speeds throughout its flight, which makes it very hard for modern air-defence systems to intercept. The missile is built by BrahMos Aerospace, a joint venture established in 1998 between India’s Defence Research and Development Organisation (DRDO) and Russia’s NPO Mashinostroyeniya.

Missile profile:

Indicator	Detail
Name origin	Brahmaputra (India) + Moskva (Russia)
Joint venture	BrahMos Aerospace (1998), between DRDO and NPO Mashinostroyeniya
Type	Universal, long-range supersonic cruise missile
Operating principle	Fire and Forget
Speed	About Mach 2.8
Warhead	Conventional, up to 200 kg
Cruise altitude	Up to 15 km; as low as 5 metres (sea-skimming)
Propulsion	Solid booster + liquid ramjet sustainer
Launch system	Transport Launch Canister (TLC)

About the News

What makes BrahMos special?

(a) Supersonic speed of about Mach 2.8. (b) Fire and Forget principle, with high accuracy. (c) Multi-platform: land, sea, sub-sea, air. (d) Sea-skimming flight as low as 5 metres, to evade radar. (e) 3 times more velocity, 3 times more range, and 9 times more kinetic energy than typical subsonic cruise missiles.

Background Concepts (Q&A)

What is the Difference Between a Cruise Missile and a Ballistic Missile, and Where Does BrahMos Fit?

A cruise missile is essentially a self-propelled, guided missile that flies through the atmosphere using wings and engines (usually a turbojet or ramjet), much like a pilotless aircraft. It typically cruises at relatively low altitudes, follows the terrain, and uses precise guidance systems to hit specific targets. Cruise missiles can be subsonic (e.g., the US Tomahawk, India’s Nirbhay) or supersonic (e.g., BrahMos).

A ballistic missile, in contrast, is launched on a high, arching trajectory, where the missile is powered only during the initial boost phase, then follows an unpowered, ballistic path (like a thrown stone) through space and the upper atmosphere, before re-entering the atmosphere to strike its target. Ballistic missiles are typically classified by range: Short-Range Ballistic Missiles (SRBM), Medium-Range (MRBM), Intermediate-Range (IRBM), and Intercontinental Ballistic Missiles (ICBM). India’s Agni series are ballistic missiles.

BrahMos is a supersonic cruise missile, not a ballistic missile. Its key advantages, high speed, low altitude, sea-skimming capability, and accuracy, make it especially effective for anti-ship and precision land-strike missions, where the missile must dodge radar detection and strike a moving or distant target precisely. The MTCR (Missile Technology Control Regime) governs the export of missile technology globally, capping range and payload thresholds, and India has been working within these constraints to extend BrahMos range for MTCR-member partners.

Practice MCQs

Q1. With reference to the recent BrahMos missile export deals, consider the following statements:

1. India has signed a strategic ₹5,800-crore deal to export BrahMos supersonic cruise missiles to Vietnam.
2. A similar BrahMos export agreement with Indonesia is in the final stages of completion.
3. The announcement was made by the Indian Defence Secretary at the Shangri-La Dialogue in Singapore.
4. The Philippines was the first foreign country to sign a deal for the BrahMos missile in 2022.

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

Q2. Consider the following statements about the BrahMos missile:

1. BrahMos is a supersonic cruise missile that can be launched from land, sea, sub-sea, and air platforms.
2. It is manufactured by BrahMos Aerospace, a joint venture between India’s DRDO and Russia’s NPO Mashinostroyeniya, established in 1998.
3. The missile’s name is derived from the Brahmaputra River of India and the Moskva River of Russia.
4. BrahMos operates on a “Fire and Forget” principle and can fly as low as 5 metres in its sea-skimming terminal phase.

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

Q3. With reference to the technical features of the BrahMos missile, consider the following statements:

1. BrahMos uses a two-stage propulsion system, with a solid propellant booster and a liquid ramjet sustainer.
2. It has a cruise speed of about Mach 2.8.
3. It carries a conventional warhead of up to 200 kg.
4. Compared to traditional subsonic cruise missiles, BrahMos has about three times the velocity, three times the range, and nine times the kinetic energy at impact.

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

Q4. Consider the following statements about cruise missiles, ballistic missiles, and forums:

1. Cruise missiles travel through the atmosphere using their own engines, often at low altitudes.
2. Ballistic missiles follow a high, arching trajectory through space and the upper atmosphere after their boost phase.
3. India’s Agni series consists of ballistic missiles, while BrahMos is a supersonic cruise missile.
4. The Shangri-La Dialogue is the premier inter-governmental security forum for the Indo-Pacific region, organised annually by the International Institute for Strategic Studies (IISS).

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

Answer Key

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

3. Project UDAYAK

Context:

The Border Roads Organisation (BRO) has celebrated the 37th Raising Day of Project UDAYAK at Doomdooma, Assam. Project UDAYAK is a specialised territorial project of the BRO, established in 1989, that is responsible for the development and maintenance of a vast network of strategic roads, bridges, helipads, and border fencing in some of the most remote and difficult terrains of Northeast India, particularly across the eastern districts of Arunachal Pradesh and parts of Assam.

Key Highlights

• Project: UDAYAK, a territorial project of the Border Roads Organisation (BRO).
• Event: 37th Raising Day celebrated at Doomdooma, Assam.
• Established: 1989.
• Parent organisation: BRO, under the Ministry of Defence.

Geographic coverage:

State	Key Districts
Arunachal Pradesh (eastern districts)	Anjaw, Lohit, Dibang Valley, Longding, Tirap, Changlang
Assam	Areas linked to the eastern Arunachal frontier

Strategic frontier coverage:

Border	Nature
Line of Actual Control (LAC) with China	India’s de facto eastern Himalayan frontier, especially in Arunachal Pradesh
Indo-Myanmar Border	About 1,643 km long, of which around 520 km lies in Arunachal Pradesh

Other key areas of work:

Area	Detail
Border Fencing	Major fencing along the Indo-Myanmar border to curb insurgency and illegal movement
Civil-Military Integration	Medical camps, Swachhata Abhiyan, road safety awareness in remote border hamlets
Disaster Response	Restoration of roads damaged by landslides, floods, and earthquakes
Tribal Outreach	Engagement with local tribal communities of eastern Arunachal Pradesh

About the News (Q&A)

What is Project UDAYAK?

A territorial project of the Border Roads Organisation (BRO) that builds and maintains strategic roads, bridges, helipads, and border fencing in the easternmost districts of Arunachal Pradesh and parts of Assam, including along the LAC with China and the Indo-Myanmar border.

Which districts does it cover?

In Arunachal Pradesh: Anjaw, Lohit, Dibang Valley, Longding, Tirap, and Changlang, plus areas in Assam linked to the eastern Arunachal frontier.

Background Concepts (Q&A)

What is the “Border Roads Organisation (BRO)”, and What is Its Mandate?

The Border Roads Organisation (BRO) is India’s premier road construction agency for border and strategic areas, established on 7 May 1960 to develop and maintain roads, bridges, tunnels, airfields, and related infrastructure in mountainous, snow-bound, and difficult terrains, particularly along India’s land borders. BRO has played a central role in shaping the infrastructure of the Himalayan and Northeast frontier.

Practice MCQs

Q1. With reference to Project UDAYAK, consider the following statements:

1. Project UDAYAK is a territorial project of the Border Roads Organisation (BRO).
2. The project was established in 1989 and celebrated its 37th Raising Day in 2026.
3. It manages over 1,457 km of strategic roads in eastern Arunachal Pradesh and parts of Assam.
4. The project supports infrastructure along both the LAC with China and the Indo-Myanmar border.

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

Q2. Consider the following statements about the districts and activities under Project UDAYAK:

1. Project UDAYAK operates in the eastern Arunachal Pradesh districts of Anjaw, Lohit, Dibang Valley, Longding, Tirap, and Changlang.
2. The project executes major border fencing infrastructure along the Indo-Myanmar border.
3. In 2025, the project inaugurated 12 strategic bridges, a major road, and a helipad.
4. The project also conducts civil-military integration activities including medical camps and Swachhata Abhiyan in remote tribal areas.

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

Q3. With reference to the Border Roads Organisation (BRO), consider the following statements:

1. BRO was established on 7 May 1960 to develop and maintain roads and infrastructure in border and strategic areas.
2. BRO functions under the administrative control of the Ministry of Defence.
3. The BRO is headed by the Director General Border Roads (DGBR), an officer from the Indian Army’s Corps of Engineers.
4. BRO has been involved in major projects such as the Sela Tunnel and the Atal Tunnel at Rohtang.

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

Q4. Consider the following statements about the Free Movement Regime (FMR) and the Indo-Myanmar Border:

1. The Free Movement Regime (FMR) is a bilateral arrangement that traditionally allowed people living near the Indo-Myanmar border to cross over without a visa for a limited period.
2. The Indo-Myanmar border is about 1,643 km long and passes through Arunachal Pradesh, Nagaland, Manipur, and Mizoram.
3. India has decided to restrict the FMR and fence significant portions of the Indo-Myanmar border to curb insurgency and illegal cross-border activities.
4. The Indo-Myanmar border is entirely fenced and has no provision for any movement under the FMR.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four (Statement 4 is wrong; the Indo-Myanmar border is NOT entirely fenced, and fencing is being executed in phases. The FMR has been restricted, not entirely abolished, with controlled movement still allowed under regulated conditions.)

Answer Key

1. (d), All four statements are correct.
2. (e), All four statements are correct.
3. (e), All four statements are correct.
4. (a), Statements 1, 2, 3 are correct; Statement 4 is wrong because the Indo-Myanmar border is not entirely fenced and FMR is being restricted, not abolished.

Exam Relevance

Exam	Relevance
UPSC Prelims	GS Paper III on Internal Security (Borders, BRO, FMR); GS Paper II on Government Schemes
UPSC Mains	GS Paper III on Internal Security, Border infrastructure; GS Paper II on India and its neighbourhood, Myanmar
BPSC and State PCS	Security, Defence, Current Affairs
Banking and NABARD	General Awareness, moderate importance
SSC, Insurance, Railway	Static and Current GK on BRO, BRO Projects, Indo-Myanmar Border
Defence, NDA, CDS	Very high importance on BRO, border infrastructure, LAC, Indo-Myanmar
CAPF and Police exams	Very high importance on border security and infrastructure

4. Government Launches ₹200-Crore MAHA Water Mission

Context:

Union Minister Dr Jitendra Singh and the Union Minister of Jal Shakti have jointly launched the MAHA Water Mission, a ₹200-crore national initiative aimed at accelerating innovation in India’s water sector. MAHA stands for Missions for Advancement in High-impact Areas. The mission is designed to bridge the gap between fundamental research and field deployment, by creating an integrated pathway for technology development, validation, and commercialisation of high-impact water solutions. It is being run as a three-way collaboration between the Anusandhan National Research Foundation (ANRF), the Ministry of Jal Shakti, and the Department of Space / Indian Space Research Organisation (ISRO).

Key Highlights

• Mission: MAHA Water Mission (Missions for Advancement in High-impact Areas).
• Outlay: ₹200 crore over five years.
• Grant size: Up to ₹20 crore per consortium.

Three lead institutions:

Institution	Role
Anusandhan National Research Foundation (ANRF)	Research funding and coordination
Ministry of Jal Shakti	Nodal water sector ministry, on-ground reach
Department of Space / ISRO	Satellite, geospatial data for water mapping

Five priority themes of the mission:

#	Theme
1	Water Resource Assessment and Sustainable Management
2	Drinking Water (Quality and Access)
3	Water Quality and Ecological Health
4	Water Use Efficiency and Circular Economy
5	Climate Resilience and Adaptation

About the News (Q&A)

What is the MAHA Water Mission?

A ₹200-crore national mission that funds multidisciplinary research, prototypes, and field deployment of high-impact water-sector solutions, jointly driven by ANRF, Ministry of Jal Shakti, and ISRO.

Why is ISRO involved?

Because satellite and geospatial data are essential for water resource mapping, watershed planning, river-flow analysis, reservoir monitoring, and climate-water assessment, all of which ISRO has unique capacity to provide.

Background Concepts (Q&A)

What is “Jal Sanchay Jan Bhagidari”, and Why is Citizen Participation Critical in Water Management?

“Jal Sanchay Jan Bhagidari” is a citizen-participation initiative of the Ministry of Jal Shakti, anchored under the Jal Shakti Abhiyan: Catch the Rain umbrella, focused on rainwater harvesting, water conservation, and the rejuvenation of traditional water bodies, with active involvement of communities, panchayats, local NGOs, and ordinary citizens. The idea is that India’s water problems cannot be solved by ministries and engineers alone; they require changes in everyday behaviour at the household, farm, and community level. The new JSJB-CTR Portal and App complements MAHA Water Mission by:

(a) Enabling citizens to track and report water conservation work in their area.

(b) Providing real-time monitoring of water bodies, rainwater harvesting structures, and recharge projects.

(c) Generating data that supports both research under MAHA and policy decisions under Jal Shakti.

(d) Building public ownership of water as a shared resource.

In a country where water belongs to no one until it disappears, citizen participation is the most powerful glue between policy, technology, and lived experience.

Practice MCQs

Q1. With reference to the recently launched MAHA Water Mission, consider the following statements:

1. The full form of MAHA in MAHA Water Mission is “Missions for Advancement in High-impact Areas”.
2. The mission has an outlay of ₹200 crore over five years.
3. It is a collaborative effort of the Anusandhan National Research Foundation (ANRF), the Ministry of Jal Shakti, and the Department of Space / ISRO.
4. Selected multidisciplinary consortia can receive grants of up to ₹20 crore each.

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

Q2. Consider the following statements about the five priority themes of the MAHA Water Mission:

1. Water resource assessment and sustainable management is one of the five priority themes.
2. Drinking water quality and access is included as a priority area.
3. Water use efficiency and circular economy is one of the themes.
4. Climate resilience and adaptation is explicitly identified as a priority theme.

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

Q3. With reference to the Anusandhan National Research Foundation (ANRF), consider the following statements:

1. ANRF was established under the Anusandhan National Research Foundation Act, 2023.
2. ANRF replaces the earlier Science and Engineering Research Board (SERB).
3. ANRF is chaired by the Prime Minister of India.
4. ANRF is restricted to funding only physical sciences and engineering research.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four (Statement 4 is wrong; ANRF funds research across science, engineering, humanities, social sciences, and arts, NOT only physical sciences and engineering.)

Q4. Consider the following statements about the JSJB-CTR Portal and App:

1. JSJB-CTR stands for Jal Sanchay Jan Bhagidari, Citizen Tracking and Reporting.
2. The portal and app have been launched to enable real-time monitoring and citizen participation in water conservation.
3. The initiative complements the Jal Shakti Abhiyan: Catch the Rain campaign.
4. Citizen participation is restricted to government employees and panchayat officials; ordinary citizens cannot contribute data.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four (Statement 4 is wrong; the portal and app are explicitly designed for ordinary citizens, alongside officials, to track and report water conservation work.)

Answer Key

1. (d), All four statements are correct.
2. (e), All four statements are correct.
3. (a), Statements 1, 2, 3 are correct; Statement 4 is wrong because ANRF covers humanities, social sciences, and arts in addition to science and engineering.
4. (a), Statements 1, 2, 3 are correct; Statement 4 is wrong because ordinary citizens are explicitly intended to use the JSJB-CTR portal and app to track and report water work.

Exam Relevance

Exam	Relevance
UPSC Prelims	GS Paper III on Environment (Water), Science and Technology (ANRF, ISR

5. Ayushman Bharat Digital Mission

Source: News on Air

Context:

The Ayushman Bharat Digital Mission (ABDM) has crossed a landmark milestone of over 90 crore Ayushman Bharat Health Accounts (ABHAs) generated across India. The ABDM is a flagship national digital public infrastructure (DPI) project, implemented by the National Health Authority (NHA) under the Ministry of Health and Family Welfare (MoHFW), and was launched in September 2021. It functions as a single, unified digital highway linking the entire healthcare ecosystem, citizens, doctors, hospitals, pharmacies, diagnostic centres, and insurers, into an integrated, transparent, and interoperable digital framework. The mission’s vision is to bridge the information gap between public and private healthcare, create a single source of truth for health data, and give citizens full ownership of their lifelong, longitudinal health records.

Key Highlights

• Programme: Ayushman Bharat Digital Mission (ABDM).
• Implementing agency: National Health Authority (NHA).
• Parent Ministry: Ministry of Health and Family Welfare (MoHFW).
• Launched in: September 2021.
• Milestone: Over 90 crore ABHAs generated.

Aim:

(a) Build an integrated, transparent, interoperable digital health infrastructure for India. (b) Bridge the public-private divide in healthcare data. (c) Create a single source of truth for health records. (d) Give citizens absolute ownership of their lifelong health records.

Six foundational building blocks:

Component	What it does
Ayushman Bharat Health Account (ABHA)	14-digit unique digital health identifier; master key to link and share medical history
Healthcare Professionals Registry (HPR)	Verified central database of doctors, nurses, paramedics, modern and traditional medicine
Health Facility Registry (HFR)	Master registry of public and private hospitals, clinics, diagnostic centres, pharmacies
Health Information Exchange and Consent Manager (HIE-CM)	Routes medical records with explicit, electronic, revocable patient consent
Unified Health Interface (UHI)	Open network protocol for teleconsultations, diagnostics, and digital health services
National Health Claims Exchange (NHCX)	Digital platform to standardise and speed up health insurance claim settlements

About the News (Q&A)

What is the ABDM?

A digital public infrastructure (DPI) project that creates a unified national digital health framework linking citizens, providers, and insurers, implemented by the NHA under the MoHFW since September 2021.

What is the ABHA, and why is it called a “Health Aadhaar”?

ABHA is a 14-digit unique digital health identifier. Just as Aadhaar is the master ID for identity and UPI is the rails for payments, ABHA is the master key for digital health records. Citizens can link their medical history to it and share it securely with doctors and hospitals when needed.

Background Concepts (Q&A)

What is “Digital Public Infrastructure (DPI)”, and Why is It Relevant to Health?

Digital Public Infrastructure (DPI) is a set of shared, open, interoperable digital systems that serve as the basic plumbing for public and private services in a country, similar to how roads, electricity grids, and water supply are physical infrastructure. DPI is typically built on three layers: identity (e.g., Aadhaar), payments (e.g., UPI), and data exchange (e.g., Account Aggregator, DigiLocker, ABDM). The key features of DPI are: (a) public-good orientation, the infrastructure is built or backed by the state but open to use by both public and private actors; (b) open standards and APIs, so that many companies and applications can plug in; (c) interoperability, so that data and services can flow across providers; and (d) consent and privacy by design.

In health, DPI is especially important because medical data is highly sensitive, traditionally siloed within individual hospitals, and difficult to share across providers. ABDM brings the three DPI layers to the health system: ABHA as the identity layer, HIE-CM and UHI as the data and service exchange layers, and NHCX as the financial-settlement layer. India is now seen globally as a pioneer of digital public infrastructure, and its Health Stack (ABDM) is being studied by many developing countries as a possible model.

Practice MCQs

Q1. With reference to the Ayushman Bharat Digital Mission (ABDM), consider the following statements:

1. ABDM was officially launched in September 2021.
2. It is implemented by the National Health Authority (NHA) under the Ministry of Health and Family Welfare.
3. Over 90 crore Ayushman Bharat Health Accounts (ABHAs) have been generated under the mission.
4. The ABHA is a 14-digit unique digital health identifier issued to citizens.

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

Q2. Consider the following statements about the six foundational building blocks of ABDM:

1. The Healthcare Professionals Registry (HPR) is a verified database of doctors, nurses, and paramedical staff.
2. The Health Facility Registry (HFR) is a master registry of public and private hospitals, clinics, pharmacies, and diagnostic centres.
3. The Health Information Exchange and Consent Manager (HIE-CM) routes medical records only with the patient’s explicit, electronic, and revocable consent.
4. The National Health Claims Exchange (NHCX) is a digital platform to standardise and speed up health insurance claim settlements.

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

Q3. With reference to Digital Public Infrastructure (DPI), consider the following statements:

1. DPI typically rests on three layers: identity, payments, and data exchange.
2. DPI is designed to be open, interoperable, and consent-based.
3. Aadhaar, UPI, DigiLocker, Account Aggregator, and ABDM are part of India’s DPI ecosystem.
4. Digital Public Infrastructure is restricted to use only by government bodies and cannot be used by private companies.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four (Statement 4 is wrong; DPI is explicitly designed to be open to both public and private actors, NOT restricted to government use only.)

Q4. Consider the following statements about the National Health Authority (NHA):

1. The NHA is the apex implementing agency for Ayushman Bharat-PMJAY and the Ayushman Bharat Digital Mission (ABDM).
2. The NHA functions under the Ministry of Health and Family Welfare.
3. The NHA is headed by a Chief Executive Officer and has a Governing Board chaired by the Union Health Minister.
4. State Health Agencies (SHAs) implement PMJAY at the state level in coordination with the NHA.

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

Answer Key

1. (d), All four statements are correct.
2. (e), All four statements are correct.
3. (a), Statements 1, 2, 3 are correct; Statement 4 is wrong because DPI is explicitly designed to be open to both government and private actors, not restricted to government use.
4. (e), All four statements are correct.

6. India’s Maternal Mortality Ratio (MMR)

Context of the News

India’s Maternal Mortality Ratio (MMR), defined as the number of maternal deaths per 1,00,000 live births, has improved by just one point from 88 in 2021-23 to 87 in 2022-24, according to the latest Sample Registration System (SRS) bulletin released by the Office of the Registrar General and Census Commissioner, Ministry of Home Affairs. The headline is a near-stall in national progress, after two decades of sharp improvement, with India having cut MMR from 212 in 2007-09 to 88 in 2020-22, putting the country on track for the Sustainable Development Goal (SDG 3.1) target of reducing the global MMR to less than 70 by 2030.

Key Highlights

• Indicator: Maternal Mortality Ratio (MMR), deaths of women due to pregnancy-related causes per 1,00,000 live births.
• Source: Sample Registration System (SRS) bulletin.
• Latest value (2022-24): 87.
• Previous value (2021-23): 88.

Two-decade trend:

Period	MMR (per 1,00,000 live births)
2007-09	212
2020-22	88
2021-23	88
2022-24	87

SDG target:

Indicator	Target
SDG 3.1	Reduce global MMR to less than 70 per 1,00,000 live births by 2030

State-level performance:

Category	States
Strong improvers	Odisha, Assam, Chhattisgarh, Punjab, Telangana (cut MMR by 11-29 points)
Moderate improvers	Tamil Nadu and West Bengal (cut by 10 points each)
High-birth states improving	Bihar, Madhya Pradesh
Worsening states	Jharkhand (biggest), Uttar Pradesh, Gujarat
State with India’s highest MMR	Uttar Pradesh at 154 (nearly twice the national average)

Regional and global comparison:

India vs Country	Status
China, Sri Lanka, Bhutan	Well ahead of India
Bangladesh, Nepal, Pakistan, Myanmar	Behind India
Malaysia, Thailand, Vietnam	Ahead of India
Sub-Saharan Africa	Very high MMR, pulls global average up

About the News (Q&A)

What is the main finding?

India’s MMR has moved only by one point, from 88 to 87, between 2021-23 and 2022-24, suggesting that national progress has slowed sharply after two decades of rapid decline.

How does this compare to earlier years?

India had cut MMR from 212 in 2007-09 to 88 in 2020-22, a major achievement. Compared to this rapid pace, the latest one-point change is a near-stall.

Which states have improved?

(a) Odisha, Assam, Chhattisgarh, Punjab, Telangana (cut MMR by 11-29 points). (b) Tamil Nadu, West Bengal (cut by 10 points each). (c) Bihar, Madhya Pradesh (both high-birth states).

Which states have worsened?

(a) Jharkhand (biggest increase). (b) Uttar Pradesh. (c) Gujarat.

Uttar Pradesh now has India’s highest MMR at 154, nearly twice the national average.

How does India compare globally?

India is behind: China, Sri Lanka, Bhutan, Malaysia, Thailand, Vietnam. India is ahead of: Bangladesh, Nepal, Pakistan, Myanmar. The global average is higher than India because of very high MMR in parts of sub-Saharan Africa.

Background Concepts (Q&A)

What is the “Maternal Mortality Ratio (MMR)”, and How is It Different from Other Maternal Indicators?

The Maternal Mortality Ratio (MMR) is defined by the World Health Organization (WHO) as the number of maternal deaths per 1,00,000 live births in a given period. A maternal death is the death of a woman while pregnant or within 42 days of the end of pregnancy, from any cause related to or aggravated by the pregnancy or its management (but not from accidents or incidental causes). MMR measures the risk of dying from pregnancy or childbirth per pregnancy, and is the most widely used indicator of maternal health. India tracks MMR through the Sample Registration System (SRS), run by the Office of the Registrar General and Census Commissioner.

Two related but different indicators are:

(a) The Maternal Mortality Rate, which measures the number of maternal deaths per 1,00,000 women of reproductive age (15-49 years) in a given period. It reflects both the risk of pregnancy and the frequency of pregnancy in the population.

(b) The Lifetime Risk of Maternal Death, which measures the probability that a 15-year-old female will eventually die from a maternal cause. It combines the per-pregnancy risk (MMR) with the fertility rate (TFR).

MMR is preferred globally because it isolates the risk per pregnancy, making it comparable across countries with different fertility rates. India’s MMR of 87 (2022-24) means about 87 women die for every 1,00,000 live births, a sharp improvement over 2007-09 (212) but still higher than the SDG target of 70.

What are the Main Causes of Maternal Mortality in India, and What is the Policy Response?

In India, the main causes of maternal mortality include: (a) Postpartum haemorrhage (severe bleeding after delivery), the single largest cause globally and in India; (b) Hypertensive disorders, including pre-eclampsia and eclampsia; (c) Sepsis and infections after delivery; (d) Obstructed labour and complications during birth; (e) Unsafe abortion; and (f) Indirect causes like anaemia, malnutrition, malaria, and tuberculosis, which weaken pregnant women and increase the risk of dying during pregnancy or childbirth.

India’s policy response is built around strengthening the entire continuum of maternal care, through programmes like:

(a) Janani Suraksha Yojana (JSY), a conditional cash transfer to encourage institutional deliveries, especially in EAG states. (b) Janani Shishu Suraksha Karyakram (JSSK), which provides free delivery, free Caesarean section, free drugs, diagnostics, blood, and transport for pregnant women in public facilities. (c) Pradhan Mantri Surakshit Matritva Abhiyan (PMSMA and e-PMSMA), which provides free, comprehensive antenatal care on the 9th of every month, with special attention to high-risk pregnancies. (d) Surakshit Matritva Aashwasan (SUMAN), which guarantees zero-tolerance for denial of services to pregnant women in public health facilities. (e) LaQshya, which focuses on improving the quality of care in labour rooms and maternity operation theatres. (f) Anaemia Mukt Bharat and POSHAN Abhiyaan/POSHAN 2.0, which address anaemia and nutrition in adolescent girls, pregnant women, and lactating mothers. (g) Pradhan Mantri Matru Vandana Yojana (PMMVY 2.0), a maternity benefit scheme.

Together, these programmes have helped drive India’s MMR from 212 to 87 in about 15 years, but the last mile, especially in Uttar Pradesh, Jharkhand, and Gujarat, will require stronger system-level reforms.

Practice MCQs

Q1. With reference to India’s latest Maternal Mortality Ratio (MMR) figures, consider the following statements:

1. India’s MMR has marginally improved from 88 in 2021-23 to 87 in 2022-24 as per the latest SRS bulletin.
2. India had cut MMR from 212 in 2007-09 to 88 in 2020-22.
3. The Sustainable Development Goal (SDG) target is to reduce the global MMR to less than 70 per 1,00,000 live births by 2030.
4. Uttar Pradesh now has the highest MMR among Indian states at 154, nearly twice the national average.

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

Q2. Consider the following statements about state-level MMR trends in India:

1. Odisha, Assam, Chhattisgarh, Punjab, and Telangana have cut their MMR by 11 to 29 points.
2. Tamil Nadu and West Bengal have reduced their MMR by 10 points each.
3. Jharkhand, Uttar Pradesh, and Gujarat have seen their MMR worsen in the latest cycle.
4. Bihar and Madhya Pradesh, despite being high-birth states, have also reduced their MMR.

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

Q3. With reference to MMR-related concepts, consider the following statements:

1. Maternal Mortality Ratio (MMR) is defined as the number of maternal deaths per 1,00,000 live births in a given period.
2. A maternal death is the death of a woman while pregnant or within 42 days of the end of pregnancy from any cause related to or aggravated by the pregnancy.
3. The Maternal Mortality Rate is calculated per 1,00,000 women of reproductive age (15-49 years), not per 1,00,000 live births.
4. The Lifetime Risk of Maternal Death combines per-pregnancy risk with fertility rates.

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

Q4. Consider the following statements about India’s maternal health programmes:

1. Janani Suraksha Yojana (JSY) is a conditional cash transfer scheme to encourage institutional deliveries.
2. Janani Shishu Suraksha Karyakram (JSSK) provides free delivery, free C-section, free drugs, diagnostics, blood, and transport in public facilities.
3. Surakshit Matritva Aashwasan (SUMAN) guarantees zero tolerance for denial of services to pregnant women in public health facilities.
4. LaQshya is a Reserve Bank of India programme to improve banking services for pregnant women.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four (Statement 4 is wrong; LaQshya is a Ministry of Health and Family Welfare initiative to improve quality of care in labour rooms and maternity OTs, NOT an RBI banking programme.)

Answer Key

1. (d), All four statements are correct.
2. (e), All four statements are correct.
3. (e), All four statements are correct.
4. (a), Statements 1, 2, 3 are correct; Statement 4 is wrong because LaQshya is a Ministry of Health programme, not an RBI banking scheme.

Banking/Finance

1. Government to Replace Wholesale Price Index (WPI) with Producer Price Index (PPI)

Source: TH

Context:

The Government of India has decided to phase out the Wholesale Price Index (WPI) over the next five years and gradually replace it with a more comprehensive Producer Price Index (PPI). From 15 June 2026, the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry will release: (a) a revised WPI series with the new base year 2022-23 (replacing the current 2011-12 base year); and (b) a new PPI series with three sub-indices: Output PPI, Trial Input PPI, and Services PPI. The Services PPI will, in its first phase, cover seven service sectors: banking, securities transactions, insurance, management of pension funds, railways, air passenger transport, and telecom.

Wholesale Price Index (WPI)

The WPI measures the average change in prices of goods bought and sold in bulk at the wholesale level, before they reach the retail consumer. It is the oldest price index in India.

Indicator	Detail
Released by	Office of the Economic Adviser, DPIIT, Ministry of Commerce and Industry
Current base year	2011-12 (to be revised to 2022-23)
Frequency	Monthly, released around the 14th of every month
Coverage	Goods only, no services
Total items	697 items in the existing series

Three major groups of WPI:

Group	Weight (existing 2011-12 series)
Primary Articles	22.62 per cent (food articles, non-food articles, minerals, crude petroleum)
Fuel and Power	13.15 per cent
Manufactured Products	64.23 per cent (the largest group)

Limitations of WPI:

(a) No services coverage, even though services contribute over 50 per cent of GDP. (b) Reflects bulk wholesale prices, not producer-level prices. (c) Does not directly capture consumer-experienced inflation. (d) Cannot fully analyse input-output price pass-through.

Producer Price Index (PPI)

The PPI measures the average change in prices received by domestic producers for their goods and services, at the producer’s gate, before any trade margins, transport costs, or taxes are added.

India’s new PPI (effective 15 June 2026) will have three sub-indices:

Sub-Index	Measures
Output PPI	Prices of goods produced and sold by producers
Trial Input PPI	Prices of inputs used by producers
Services PPI	Prices of services, starting with 7 sectors in Phase 1

The 7 services in the first phase of Services PPI:

(a) Banking. (b) Securities Transaction. (c) Insurance. (d) Management of Pension Funds. (e) Railways. (f) Air (Passenger) Transport. (g) Telecom.

Why the World Uses PPI:

(a) Captures producer-level price pressures, more accurate than wholesale. (b) Includes services, reflecting modern economies. (c) Allows clear input-output pass-through analysis. (d) Aligned with IMF Price Statistics Manuals. (e) Used by US, UK, EU, Japan, China, and most major economies.

WPI vs PPI, Head-to-Head Comparison

Parameter	Wholesale Price Index (WPI)	Producer Price Index (PPI)
Stage of measurement	Wholesale (bulk trading) level	Producer’s gate, before distribution margins
Coverage	Goods only	Goods + Services
Released by	DPIIT, Ministry of Commerce and Industry	DPIIT, Ministry of Commerce and Industry
Frequency	Monthly	Monthly for Output PPI, plus periodic Services and Input PPI
Number of items	697 (current series)	Wider, with services added
Use in monetary policy	Not the RBI’s inflation target	Not the RBI’s inflation target
Use in contracts	Widely used in price escalation clauses	Expected to gradually replace WPI
Reflects services?	No	Yes
Input-output analysis	Limited	Clear and structured
Aligned with global practice	Outdated; only a few countries use WPI	Standard global indicator

Where Each Fits in India’s Price-Index Ecosystem

Index	Released by	What It Measures	Used For
WPI	DPIIT, Ministry of Commerce and Industry	Wholesale-level goods prices	Price escalation clauses, industrial inflation analysis
PPI (new)	DPIIT, Ministry of Commerce and Industry	Producer-level goods and services prices	To replace WPI over five years
CPI (Combined, Rural, Urban)	National Statistical Office (NSO), MoSPI	Retail prices of household consumption basket	RBI MPC’s inflation target (4 per cent +/- 2 per cent)
CPI-IW (Industrial Workers)	Labour Bureau, Ministry of Labour and Employment	Retail prices for industrial workers	DA computation for government employees
CPI-AL/RL	Labour Bureau	Retail prices for agricultural and rural labourers	Wage and welfare indexation

Key Differences Between PPI and Consumer Price Index (CPI)

Parameter	PPI	CPI
Stage	Producer’s gate	Household / retail point of purchase
Measures	Prices received by producers	Prices paid by consumers
Coverage	Goods + services (producer side)	Goods + services in household basket
Use	Industrial inflation, contract pricing, GDP deflators	Inflation targeting, cost of living, DA, welfare indexation
Includes taxes?	Generally excludes indirect taxes on output	Includes indirect taxes in final consumer price

Practice MCQs

Q1. With reference to the Wholesale Price Index (WPI) and the Producer Price Index (PPI) in India, consider the following statements:

1. WPI measures the average change in prices of goods bought and sold in bulk at the wholesale level.
2. PPI measures the average change in prices received by domestic producers at the point of production.
3. WPI in India does not cover services, while the new PPI includes a Services PPI starting with 7 sectors in Phase 1.
4. Both WPI and PPI in India are released by the National Statistical Office (NSO).

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four (Statement 4 is wrong; WPI and PPI are released by the DPIIT under the Ministry of Commerce and Industry, NOT the NSO. The NSO releases CPI (Combined, Rural, Urban).)

Q2. Consider the following statements about the new PPI series being launched in India:

1. The new PPI series will be launched from 15 June 2026.
2. It will have three sub-indices: Output PPI, Trial Input PPI, and Services PPI.
3. The Services PPI in Phase 1 will cover banking, securities transactions, insurance, pension fund management, railways, air passenger transport, and telecom.
4. The transition from WPI to PPI aligns with IMF recommendations and global best practices.

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

Q3. With reference to the architecture of price indices in India, consider the following statements:

1. The Consumer Price Index (Combined, Rural and Urban) is released by the National Statistical Office under the Ministry of Statistics and Programme Implementation.
2. The Consumer Price Index for Industrial Workers (CPI-IW) is released by the Labour Bureau under the Ministry of Labour and Employment.
3. The RBI’s Monetary Policy Committee targets the Consumer Price Index (Combined) inflation at 4 per cent, with a tolerance band of +/- 2 percentage points.
4. The Wholesale Price Index (WPI) is the official inflation target for the RBI under India’s monetary policy framework.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four (Statement 4 is wrong; the RBI’s official inflation target is the CPI (Combined), NOT the WPI.)

Q4. Consider the following statements about WPI and PPI features:

1. WPI covers only goods and does not include services.
2. PPI explicitly includes both goods (Output and Input) and services.
3. PPI is generally compiled at the producer’s gate, before trade margins and indirect taxes are added.
4. CPI captures prices at the retail consumer level, including taxes and trade margins.

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

Answer Key

1. (a), Statements 1, 2, 3 are correct; Statement 4 is wrong because WPI and PPI are released by DPIIT, not the NSO.
2. (d), All four statements are correct.
3. (a), Statements 1, 2, 3 are correct; Statement 4 is wrong because the RBI’s inflation target is CPI (Combined), not WPI.
4. (d), All four statements are correct.

Exam Relevance

Exam	Relevance
UPSC Prelims	GS Paper III on Indian Economy (Inflation indices, WPI, PPI, CPI)
UPSC Mains	GS Paper III on Indian Economy, Inflation, Monetary policy, Statistical reforms
Banking (RBI Gr B, SBI PO, IBPS, NABARD)	Very high importance, inflation, monetary policy, statistics
SEBI Grade A, IRDAI Grade A	Macroeconomic awareness
Indian Statistical Service (ISS)	Core area on price indices
SSC, Insurance, Railway	Static and Current GK on WPI, CPI, PPI, base years

2. RBI Reportedly Sold About USD 12 Billion in Gold to Shield Foreign-Currency Assets

Context:

According to an analysis by Bloomberg Economics, based on publicly available data, the Reserve Bank of India (RBI) may have sold gold reserves worth roughly USD 12 billion in the two weeks through 22 May, while simultaneously buying about USD 7.5 billion of foreign-currency assets. The move is being read as a deliberate rebalancing of India’s forex reserves, where the central bank is prioritising liquid foreign currency (mainly the US dollar) over gold holdings, at a time when India is facing multiple external pressures, including the Iran-related Middle East war, the effective closure of the Strait of Hormuz, sustained capital outflows, higher oil prices, and a widening current account deficit (CAD) that is pressuring the rupee.

Why this is significant?

(a) Gold prices were stable to firm, so the fall in reported gold value points to actual sales, not just valuation effects.
(b) Import duty on gold had been hiked, which would have increased the rupee value of gold reserves. (c) The direction of change in the data is opposite to what these factors would normally suggest, supporting the interpretation of active selling.

Why the RBI may be doing this?

(a) Pressure on the rupee from capital outflows and higher oil prices.
(b) Widening current account deficit due to costlier energy imports and softer remittance and FDI/FPI inflows.
(c) Need for liquid foreign currency, mainly US dollars, to intervene in the FX market without moving the spot rate too sharply.
(d) Gold, while a strategic reserve, is less immediately liquid than dollar assets in stress periods.

Why hold gold partly overseas?

(a) Operational flexibility during international transactions.
(b) Easier use as collateral for swaps and liquidity operations.
(c) Diversification of custody risk between domestic and global custodians.

Background Concepts (Q&A)

What are India’s “Foreign Exchange Reserves”, and What are They Composed Of?

Foreign Exchange Reserves (often shortened to forex reserves) are external assets held by the central bank of a country to support its currency, balance of payments, monetary policy, and financial stability. India’s forex reserves are managed by the Reserve Bank of India under the RBI Act, 1934 and the Foreign Exchange Management Act (FEMA), 1999, in consultation with the Government of India. They are composed of four main parts:

(a) Foreign Currency Assets (FCA), by far the largest component, mostly in US dollars, euros, British pounds, Japanese yen, and Chinese yuan, held in the form of deposits with foreign central banks, deposits with the Bank for International Settlements (BIS), and investments in highly rated foreign government securities (like US Treasuries, German bunds, etc.).

(b) Gold, held both in India (in RBI vaults) and overseas (with the Bank of England and the BIS).

(c) Special Drawing Rights (SDRs), an international reserve asset created by the IMF, with its value linked to a basket of currencies.

(d) Reserve Tranche Position (RTP) with the IMF, the quota-related amount that India can access from the IMF without conditionality.

Forex reserves are used to: (i) defend the rupee in times of stress; (ii) finance the trade deficit; (iii) service external debt; (iv) build international confidence in the economy; and (v) provide a cushion against sudden capital outflows.

Practice MCQs

Q1. With reference to recent reports about the RBI’s foreign reserves strategy, consider the following statements:

1. According to Bloomberg Economics, the RBI may have sold around USD 12 billion in gold reserves over a two-week period through 22 May.
2. The RBI is also reported to have bought about USD 7.5 billion in foreign-currency assets in the same period.
3. The reported sale of gold has been linked to pressure on the rupee from the Middle East war, higher oil prices, and capital outflows.
4. By end-March, India held about 880.52 metric tonnes of gold, with 77 per cent held domestically.

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

Q2. Consider the following statements about the composition of India’s foreign exchange reserves:

1. Foreign Currency Assets (FCA) are the largest component of India’s forex reserves.
2. India’s reserves also include gold holdings, Special Drawing Rights (SDRs), and a Reserve Tranche Position (RTP) with the IMF.
3. India’s overseas gold reserves are mainly held with the Bank of England and the Bank for International Settlements (BIS).
4. Special Drawing Rights are an international reserve asset created by the World Bank, not the IMF.

Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four (Statement 4 is wrong; SDRs are created by the IMF, NOT the World Bank.)

Q3. With reference to the Strait of Hormuz and its importance for India, consider the following statements:

1. The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and onward with the Arabian Sea and the Indian Ocean.
2. Iran lies on the northern side of the strait, while Oman and the UAE lie to the south.
3. About a fifth of global oil trade by volume passes through the Strait of Hormuz.
4. India imports a large share of its crude oil from Gulf countries through the Strait of Hormuz.

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

Q4. Consider the following statements about the RBI’s policy options for defending the rupee:

1. Selling US dollars in the foreign exchange market is one of the most direct tools used by the RBI to support the rupee.
2. The RBI can conduct buy-sell dollar-rupee swap auctions to inject rupee liquidity while temporarily acquiring dollars.
3. The RBI has no role in any kind of intervention in the gold market.
4. Easing overseas borrowing limits for banks and expanding FPI access to debt markets can help attract capital inflows that support the rupee.

Which of the above are correct? (a) 1, 2 and 4 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four (Statement 3 is wrong; the RBI is actively involved in the management of India’s gold reserves, as part of its forex reserve management framework.)

Answer Key

1. (d), All four statements are correct.
2. (a), Statements 1, 2, 3 are correct; Statement 4 is wrong because SDRs are created by the IMF, not the World Bank.
3. (e), All four statements are correct.
4. (a), Statements 1, 2, 4 are correct; Statement 3 is wrong because the RBI manages India’s gold reserves as part of its forex reserve framework, and can buy or sell gold.

3. DFS Launches “Common Landing Portal” for Unclaimed Financial Assets

Context of the News

The Department of Financial Services (DFS), under the Ministry of Finance, has launched a Common Landing Portal for Unclaimed Financial Assets to help citizens easily search for and reclaim money they may have forgotten or lost track of across various parts of the financial system. The portal was launched by M. Nagaraju, Secretary, DFS, during a high-level review meeting of Public Sector Banks (PSBs) in New Delhi, and was developed in collaboration with the PSB Alliance, a joint initiative of public sector banks. The portal is a single, unified search platform where users can look for unclaimed assets across multiple categories, including bank deposits, insurance claims, shares and dividends, and mutual fund investments, instead of going to each regulator or bank separately.

Key Highlights

• Portal: Common Landing Portal for Unclaimed Financial Assets.
• Launched by: DFS, Ministry of Finance.
• Officially launched by: M. Nagaraju, Secretary, DFS.
• Developed in collaboration with: PSB Alliance (a joint initiative of public sector banks).

What the portal does:

Feature	Detail
Single entry point	One landing portal instead of multiple regulator-wise portals
Searchable categories	Bank deposits, insurance claims, shares and dividends, mutual fund investments
Aim	Easier access, transparency, citizen convenience
Alignment	Viksit Bharat 2047, financial inclusion, public awareness

Linked initiatives:

Initiative	Detail
“आपकी पूँजी, आपका अधिकार” (“Your Money, Your Right”)	Nationwide DFS-led campaign for awareness and reclaim of unclaimed assets
PSB Alliance	Joint platform of public sector banks for shared services (also runs Doorstep Banking, EASE reforms, etc.)

Existing channels for specific asset categories (still in operation):

Category	Channel
Unclaimed bank deposits	UDGAM portal of the Reserve Bank of India (RBI)
Unpaid dividends, matured deposits, debentures, shares	Investor Education and Protection Fund (IEPF) Authority under Ministry of Corporate Affairs
Unclaimed insurance amounts	IRDAI rules and the insurer’s own portals
Dormant EPF accounts	EPFO website / UMANG app
Mutual fund folios	Each AMC and MFCentral by AMFI

Background Concepts (Q&A)

What is the “RBI’s Depositor Education and Awareness (DEA) Fund”, and What Happens to Unclaimed Bank Deposits?

The Depositor Education and Awareness (DEA) Fund is a fund maintained by the Reserve Bank of India (RBI) under Section 26A of the Banking Regulation Act, 1949, where banks are required to transfer the credit balance of any deposit account that has remained inoperative for 10 years or more. Once a deposit is transferred to the DEA Fund, the bank continues to owe the depositor the amount, but the money is parked with the RBI, which uses the interest earned for promoting depositor education and awareness, research on banking and financial sector issues, and other depositor-protection activities.

If the rightful depositor or legal heir comes forward at any time, the bank is obligated to pay the amount (with applicable interest), and the bank then claims a refund from the DEA Fund. The RBI also runs the UDGAM portal (launched August 2023), a centralised web portal where citizens can search across multiple banks for unclaimed deposits using their name and a few identifying details, instead of going to each bank separately. The Common Landing Portal launched by DFS now sits on top of these systems, providing a single front door for unclaimed assets across multiple sectors, not just banking.

Agriculture

1. Ministry of Agriculture to Run “Khet Bachao Abhiyan”

Source: News on Air

Context:

The Union Ministry of Agriculture and Farmers Welfare will conduct a month-long, nationwide “Khet Bachao Abhiyan” from 1 to 30 June 2026, designed as an agricultural awareness and outreach campaign that combines sustainable farming practices, soil health improvement, and stronger farm-level decision-making.
The campaign’s main objectives are: (a) to promote the balanced and judicious use of fertilizers based on soil health and scientific recommendations, and (b) to provide weather-based, region-specific farm advisories, while linking farmers to the wider basket of government schemes and agricultural support.

Key Highlights

• Campaign: Khet Bachao Abhiyan.
• Duration: 1-30 June 2026.
• Run by: Ministry of Agriculture and Farmers Welfare, Government of India.

Aim of the Abhiyan:

(a) Balanced and judicious fertilizer use based on soil health.
(b) Region-specific, weather-based advisories for farmers.
(c) Scheme convergence for farmer support.
(d) Stronger farm-level decision-making.

Five core features:

Feature	Detail
Balanced fertilizer use	Soil-test based, INM-oriented; promote organic, bio-, and green manures
Climate-smart advisories	Guidance on crops, diversification, water, weather risks
Institutional participation	Panchayats, KVKs, ICAR, State Governments, Agriculture Departments
Panchayat-centric	Village-level implementation with community leaders
Scheme convergence	PM-KISAN, KCC, Pulses-Oilseeds Mission, Oil Palm Mission, Cotton Mission, mechanisation, water conservation

Schemes that the Abhiyan will help link farmers to:

Scheme	Purpose
PM-KISAN	₹6,000 per year direct income support in three instalments
Kisan Credit Card (KCC)	Short-term subsidised crop loans, also for allied activities
National Mission on Edible Oils (Oilseeds)	Reducing edible-oil imports, raising oilseed production
National Mission on Edible Oils-Oil Palm	Boosting oil palm cultivation under NMEO-OP
Cotton Mission	Improving cotton productivity and value-chain
Sub-Mission on Agricultural Mechanisation (SMAM)	Subsidies for tractors, drones, harvesters, etc.
PMKSY (Pradhan Mantri Krishi Sinchayee Yojana)	Water conservation and per-drop-more-crop approach

Facts To Remember

1. Admiral Krishna Swaminathan Assumes Charge as Chief of Naval Staff

Admiral Krishna Swaminathan officially assumed charge as the new Chief of the Naval Staff (CNS) of the Indian Navy during a formal ceremony held in New Delhi. He succeeded Admiral Dinesh K. Tripathi as the head of India’s naval forces.

2. Dr. Jitendra Singh Inaugurates India’s First ‘SkyCast’ Aviation Weather Monitoring System

Union Minister Dr. Jitendra Singh inaugurated India’s first ‘SkyCast’ aviation weather monitoring system at the Indira Gandhi International (IGI) Airport in New Delhi. Developed under Mission Mausam, the system makes India the 19th country globally to deploy an integrated aviation weather monitoring platform. SkyCast aims to improve aviation safety and reduce fog-related disruptions through real-time weather monitoring and advance forecasting alerts of up to three hours.

3. NITI Aayog Releases 10-Year Roadmap for India’s Semiconductor Industry

NITI Aayog’s Frontier Tech Hub released India’s first comprehensive semiconductor roadmap titled “Future of India’s Semiconductor Industry”. The roadmap outlines a long-term strategy to build a USD 120–150 billion semiconductor value chain by 2035 and position India as a major global hub for chip manufacturing, design, packaging, and testing. The report projects India could capture 10–13% of the global semiconductor market by 2035 through a ‘More-than-Moore’ manufacturing strategy.

4. MCA Expands CSR Rules to Include ZCZP Instruments on Social Stock Exchanges

The Ministry of Corporate Affairs (MCA) amended the Companies Act CSR framework by including subscription to Zero Coupon Zero Principal (ZCZP) Instruments listed on Social Stock Exchanges (SSEs) as an eligible Corporate Social Responsibility (CSR) activity. The reform allows companies to channel CSR funds towards eligible not-for-profit organizations through regulated financial instruments. CSR spending through ZCZP instruments has been capped at 10% of annual CSR expenditure.

5. Odisha Signs MoU with Intel and 3DGS for Semiconductor Manufacturing Facility

The Government of Odisha signed an MoU with Intel and 3D Glass Solutions (3DGS) to establish a USD 3.3 billion advanced packaging glass-core substrate manufacturing facility in the Bhubaneswar–Khurda region. The project will focus on semiconductor packaging technologies and high-density interconnect substrates, strengthening India’s semiconductor manufacturing ecosystem under the India Semiconductor Mission.

6. NISM Partners with Galgotias University for Financial Education Expansion

The National Institute of Securities Markets (NISM), established by Securities and Exchange Board of India, partnered with Galgotias University to strengthen industry-oriented financial education and training. The collaboration will provide students with access to NISM certifications, e-learning modules, market simulation platforms, and specialized training in securities markets, fintech, derivatives, and risk management.

7. Bajaj Finserv and IIT Bombay Launch ‘Finserv Intelligence’ Initiative

Bajaj Finserv partnered with Indian Institute of Technology Bombay to launch “Finserv Intelligence”, a strategic initiative focused on Artificial Intelligence (AI) and deep-tech research. The initiative plans investments of Rs.1,500–2,000 crore over five years in AI innovation startups and research projects related to cybersecurity, quantum technologies, healthcare, and digital financial inclusion.

8. Tamil Nadu Farmer Valluvan Honoured as FAO ‘Soil Farmer Hero’

Valluvan, a farmer from Pollachi district in Tamil Nadu, was honoured as a “Soil Farmer Hero” by the Food and Agriculture Organization for adopting sustainable and multi-crop farming practices. Supported by the Isha Foundation’s Cauvery Calling initiative, he transformed his 11-hectare farm into a diversified agricultural enterprise cultivating over 14 crop varieties.

9. Rajesh Kumar Singh Given Additional Charge as DRDO Chairman

Rajesh Kumar Singh, Defence Secretary in the Ministry of Defence, was assigned additional charge as Secretary of the Department of Defence Research and Development and Chairman of the Defence Research and Development Organisation. He assumed the responsibilities following the completion of Dr. Samir V. Kamat’s tenure.

10. Former Congress MP K. P. Dhanapalan Passes Away

Senior Congress leader and former Member of Parliament K. P. Dhanapalan passed away at the age of 76 in Kerala. He served as MP from Chalakudy between 2009 and 2014 and held several important positions in the Congress party and cooperative sector in Kerala.

11. Rajnath Singh Releases Commemorative Volume on ‘Operation Sindoor’

Union Defence Minister Rajnath Singh released a commemorative volume titled “Operation Sindoor” documenting testimonies and experiences of 100 Indian Armed Forces personnel involved in the operation. The publication highlights India’s integrated multi-domain warfare capabilities demonstrated during the operation launched after the Pahalgam terror attack in 2025.

12. International Week of Solidarity with the Peoples of Non-Self-Governing Territories 2026 Observed

The United Nations observed the International Week of Solidarity with the Peoples of Non-Self-Governing Territories from May 25 to 31, 2026. The observance promotes decolonization, self-determination, human rights, and sustainable development for Non-Self-Governing Territories across the world.