Daily Current Affairs (DCA) 26&27 April, 2026

Daily Current Affairs Quiz
26&27 April, 2026

National Affairs

1. Project DANTAK

Context:

Project DANTAK, one of the oldest and most successful overseas projects of the Border Roads Organisation (BRO), celebrated its 66th Raising Day in Thimphu, Bhutan. Established in 1961, it remains a living symbol of the “Friendship Treaty” between India and the Kingdom of Bhutan.

What is Project DANTAK?

Project DANTAK is an infrastructure initiative by the Government of India, executed by the BRO, specifically for the development of Bhutan.

• Establishment: April 1961, following a visionary agreement between the Third King of Bhutan and Prime Minister Jawaharlal Nehru.
• Operational Scope: It covers everything from road connectivity and aviation to telecommunications and healthcare infrastructure.
• Strategic Essence: It serves as a bridge for socio-economic transformation, turning landlocked regions of Bhutan into connected economic hubs.

What are key Infrastructure Contributions?

Project DANTAK’s footprint is visible across the entire geography of Bhutan:

• The Road Backbone: Over 1,500 km of roads have been constructed.
  • First Motorable Road: Built the first-ever motorable road in the Kingdom.
  • East-West Highway: Constructed the vital 500+ km highway connecting Trashigang in the east to Thimphu in the west.
• Aviation: Instrumental in building the Paro International Airport and the Yongphula Airport, which are critical for Bhutan’s tourism and connectivity.
• Beyond Roads: The project has built schools, hospitals, telecommunication networks, and supported hydropower projects like the Chhukha Hydel Project.

Key Concepts

Q: What is the Border Roads Organisation (BRO)?

A: A specialized executive force under the Ministry of Defence that develops and maintains road networks in India’s border areas and friendly neighboring countries.

Q: Why is Project DANTAK unique?

A: Unlike typical infrastructure contracts, DANTAK involves Indian personnel living and working alongside Bhutanese citizens for decades, fostering deep cultural and personal bonds.

Q: What is the significance of the East-West Highway?

A: Before this highway, traveling between eastern and western Bhutan often required traveling down into India and back up. This road unified the country internally.

Conceptual MCQs

Q1. In which year was Project DANTAK of the Border Roads Organisation (BRO) established?

A) 1947

B) 1961

C) 1975

D) 1993

Q2. Which major international airport in Bhutan was constructed with the assistance of Project DANTAK?

A) Thimphu Domestic Airport

B) Paro International Airport

C) Bagdogra Airport

D) Gelephu Airport

Q3. The primary objective of Project DANTAK is to provide infrastructure support to which country?

A) Nepal

B) Myanmar

C) Bhutan

) Sri Lanka

Answers: Q1: B | Q2: B | Q3: C

Exam Relevance

Exam Focus Area	Relevance Level
UPSC CSE	GS-2 (International Relations: India-Bhutan ties), GS-3 (Infrastructure/Security)
Defence Exams	Knowledge of BRO projects and strategic connectivity
SSC / General Awareness	Significant dates, locations (Thimphu/Paro), and project names

2. The Roadmap to 100% Ethanol Blending

Source: The Hindu (TH)

Context:

Following an appeal by Union Minister Nitin Gadkari on April 21, 2026, India is pivoting toward a more aggressive ethanol strategy. The focus has shifted from the current E20 target to exploring E100 (100% ethanol) and the conversion of ethanol into Sustainable Aviation Fuel (SAF).

What is E100?

E100 refers to using pure ethanol as a standalone fuel for internal combustion engines. This is fundamentally different from the current “blending” approach where ethanol is mixed with petrol.

• Energy Density: One litre of petrol provides 45–55% more energy than one litre of ethanol. Consequently, a car running on E100 will typically have lower mileage for the same volume of fuel.
• Engine Requirements: Standard engines are only certified up to E20. To run on E100, a vehicle must be a Flex-Fuel Vehicle (FFV).

Key Challenges of 100% Blending

A. Vehicle Engineering

Ethanol is chemically different from petrol, leading to three main technical hurdles:

• Corrosion: Ethanol is hygroscopic (absorbs water) and corrosive. Fuel lines, tanks, and seals must be made of stainless steel or specialized plastic/rubber.
• Cold Start Issues: Pure ethanol does not vaporize well at low temperatures, making it difficult to start a car in cold weather.
• Sensors & Tuning: Engines need specialized Oxygen and Ethanol sensors to adjust the fuel injection timing in real-time.

B. The “Food vs. Fuel” Debate

Most ethanol in India (1G) is produced from sugarcane and food grains.

• Water Stress: Sugarcane is a water-intensive crop. Expanding production for E100 could deplete groundwater.
• Price Volatility: Diverting crops to fuel can lead to higher food prices.
• 2G Solution: India is pivoting toward Second-Generation (2G) Ethanol, made from agricultural waste like rice straw, to solve this.

Can India move to 100% Ethanol (E100)?

While theoretically possible, moving to E100 requires a total overhaul of India’s automotive and supply chain infrastructure.

• The Energy Density Gap: Ethanol is less energy-dense than petrol. One litre of petrol provides 45-55% more energy than one litre of ethanol.
• The Flex-Fuel Requirement: Standard engines are only certified up to E20. For E100, vehicles must be Flex-Fuel Vehicles (FFVs).
  • Modifications: FFVs require corrosion-resistant fuel lines (ethanol is corrosive), specialized sensors to detect the blend ratio, and re-tuned Engine Control Units (ECUs).
  • Cost: Currently, FFVs (like the Toyota Innova Hycross version) cost ₹3-4 lakh more than their petrol counterparts.

Key Concepts: Keyword Q&A

Q: What is “1G” vs “2G” Ethanol?

A: 1G (First Generation) is made from food crops like sugarcane and corn. 2G (Second Generation) is made from non-food waste like stalks, husks, and straw.

Q: Why does ethanol cause corrosion?

A: Ethanol is “hygroscopic” (it attracts water) and can be acidic, which causes it to degrade rubber seals and certain metal parts in older petrol engines.

Q: How does CAFE-III help ethanol?

A: By setting a lower carbon limit for a carmaker’s entire fleet, the government makes it “cheaper” for the company to sell a few Flex-Fuel cars that use 100% ethanol than to pay fines for selling many petrol SUVs.

Conceptual MCQs

Q1. What is the main reason a standard petrol engine cannot run on E100 fuel? A) Ethanol has too much energy density

B) Ethanol is corrosive and requires different sensors/materials

C) Ethanol is too thick for fuel injectors

D) Ethanol requires a diesel-style spark plug

Q2. The “Alcohol-to-Jet” (ATJ) process is used to create which of the following? A) High-octane racing fuel

B) Sustainable Aviation Fuel (SAF)

C) Liquid Hydrogen

D) 2G Ethanol from rice straw

Q3. When does the CAFE-III standard, which targets a 30% reduction in fleet emissions, kick in? A) April 1, 2025

B) October 1, 2024

C) April 1, 2027

D) May 9, 2030

Answers: Q1: B | Q2: B | Q3: C

Exam Relevance

Exam Focus Area	Relevance Level
UPSC CSE	GS-3 (Energy, Environment, Science & Tech: Biofuels)
RBI Grade B	Phase II: ESI (Sustainable Development, Energy Policy)
SSC / Bank	General Awareness (National Biofuel Policy, SAF, and Gadkari’s statements)

3. Soul Threads

Source: PIB

Context:

The Central Cottage Industries Corporation of India (CCIC) has launched its first-ever heritage designer collection, ‘Soul Threads’. This initiative is a strategic pivot for the CCIC, aimed at modernizing the appeal of traditional Indian crafts while ensuring the economic sustainability of local artisans.

What is “Soul Threads”?

Soul Threads is a curated cultural platform that blends India’s indigenous textile traditions with contemporary high fashion. It is more than just a clothing line; it is an integrated exhibition that includes:

• Designer Handlooms: Curated sarees and bespoke wear that use ancient weaving techniques.
• Artisanal Crafts: Handcrafted jewelry and home furnishings.
• Cultural Ecosystem: Integrating fashion shows with folk performances to provide a holistic “heritage experience.”

Key Objectives & Strategy

The CCIC, under the Ministry of Textiles, is using Soul Threads to address specific challenges in the handicraft sector:

• Modern Relevance: By using a “modern design language,” the collection makes traditional products more appealing to younger domestic consumers and international fashion markets.
• Market Access: It provides a prestigious commercial stage for rural artisans who often lack direct access to high-end urban markets.
• Preservation through Profit: By boosting the commercial value of these crafts, Soul Threads helps ensure that the younger generation of artisans continues the family trade.

What are Strategic Features of the Collection?

• Handloom Reimagined: The exhibition focuses on reimagining traditional weaves (like Banarasi, Kanjeevaram, or Chanderi) into contemporary silhouettes.
• Bespoke Designer Wear: Moving beyond standard items to “one-of-a-kind” pieces that command higher value in the luxury segment.
• Artisan-Designer Collaboration: Soul Threads facilitates partnerships between grassroots artisans and professional fashion designers to merge technical skill with market-ready aesthetics.

Key Concepts: Keyword Q&A

Q: What is the CCIC?

A: The Central Cottage Industries Corporation of India is a Public Sector Undertaking (PSU) under the Ministry of Textiles. It acts as the primary agency for the promotion and retail of Indian handlooms and handicrafts through its emporiums.

Q: What is the “Cultural Ecosystem” approach?

A: It refers to treating textiles not as standalone products, but as part of a larger heritage that includes music, dance, and community stories. Soul Threads uses folk performances to tell the “story” behind the fabric.

Q: Why is “Modern Design Language” necessary?

A: Many traditional crafts are technically brilliant but may not fit modern lifestyle needs (e.g., heavy sarees that are hard to drape). Reimagining them means making them lighter, more durable, or visually compatible with modern trends.

Conceptual MCQs

Q1. Which organization launched the ‘Soul Threads’ heritage designer collection?

A) Khadi and Village Industries Commission (KVIC)

B) Central Cottage Industries Corporation of India (CCIC)

C) NIFT

D) Ministry of Culture

Q2. What is the primary goal of the “Soul Threads” initiative?

A) To mass-produce textiles using automated machinery

B) To provide a platform for modern tech startups

C) To preserve and revive India’s textile heritage through a designer platform

D) To replace handlooms with synthetic fibers

Q3. The CCIC functions under the administrative control of which Union Ministry?

A) Ministry of Commerce and Industry

B) Ministry of Rural Development

C) Ministry of Textiles

D) Ministry of Micro, Small and Medium Enterprises

Answers: Q1: B | Q2: C | Q3: C

Exam Relevance

Exam Focus Area	Relevance Level
UPSC CSE	GS-1 (Indian Culture: Handicrafts & Textiles), GS-3 (Economy: MSME/Artisans)
State PSCs	Promotion of local handicrafts and state-specific weaves
SSC / General Awareness	Current affairs related to government initiatives and new brands

4. Anti-Defection Law

Source: The Indian Express (IE)

Context:

In a significant political development, seven Rajya Sabha MPs from the Aam Aadmi Party (AAP) have defected to the BJP. Because these seven members represent more than two-thirds of the party’s strength in the Upper House, they may be shielded from disqualification under the “Merger” exception of the Anti-Defection Law.

What is Defection?

Defection occurs when an elected representative shifts allegiance from the party on whose ticket they were elected. In India, this is governed by the 10th Schedule of the Constitution, often called the Anti-Defection Law.

• Purpose: To bring stability to the government by preventing “Aaya Ram, Gaya Ram” politics (frequent floor-crossing).
• Legal Framework: * 52nd Amendment (1985): Added the 10th Schedule.
  • 91st Amendment (2003): Strengthened the law by deleting the “one-third split” rule and capping the Council of Ministers at 15% of the House strength.

What are Grounds for Disqualification?

A legislator risks losing their seat if they:

1. Voluntarily give up membership: Resigning from the party.
2. Defy the “Whip”: Voting (or abstaining) against party directions without permission.
3. Independent Members: Joining a political party after being elected as an independent.
4. Nominated Members: Joining a political party after six months of taking their seat.

What is The “Two-Thirds” Merger Exception?

The current news involving the AAP MPs hinges on Paragraph 4 of the 10th Schedule, which provides an exception for mergers.

• The Rule: Disqualification does not apply if a member’s original political party merges with another, provided that at least two-thirds of the members of the legislative party agree to the merger.
• The Logic: The law assumes that if such a large majority (2/3rds) leaves, it isn’t an individual act of opportunism but a collective decision of the party unit.
• The Shift: Originally, the law allowed a “split” if only one-third of members left. The 91st Amendment removed this, making a “merger” (requiring 2/3rds) the only valid way to switch parties without losing membership.

Role of the Presiding Officer

The Chairman (Rajya Sabha) or Speaker (Lok Sabha) acts as the quasi-judicial authority in these cases.

• Decision Power: The Presiding Officer decides whether a merger has legally occurred based on the evidence of the two-thirds threshold.
• Judicial Review: While the Presiding Officer’s decision was once final, the Supreme Court (in the Kihoto Hollohan case) ruled that their decision is subject to judicial review on grounds of mala fides or perversity.

Key Concepts: Keyword Q&A

Q: What is a “Whip”?

A: A written order issued by a political party to its members in a legislature to vote in a particular way. Violating a whip leads to disqualification under the 10th Schedule.

Q: Can a legislator be disqualified for “anti-party” activities outside the House?

A: Yes. The Supreme Court has interpreted “voluntarily giving up membership” broadly. Even if a member hasn’t formally resigned, their conduct (e.g., attending rallies of an opposition party) can be used to prove they have defected.

Q: What is the “15% Rule”?

A: Introduced by the 91st Amendment, it states that the total number of ministers (including the PM/CM) cannot exceed 15% of the total strength of the Lok Sabha (or State Assembly). This prevents parties from “buying” defectors with promises of cabinet berths.

Conceptual MCQs

Q1. Which Constitutional Amendment deleted the provision that recognized a “split” by one-third of a party’s members? A) 42nd Amendment

B) 52nd Amendment

C) 73rd Amendment

D) 91st Amendment

Q2. Under the 10th Schedule, who is the final authority to decide on the disqualification of a Rajya Sabha MP? A) The President of India

B) The Election Commission

C) The Chairman of the Rajya Sabha

D) The Supreme Court

Q3. To claim an exemption from disqualification during a merger, what minimum fraction of the legislative party must agree to the move? A) One-third

B) One-half

C) Two-thirds

D) Three-fourths

Answers: Q1: D | Q2: C | Q3: C

Exam Relevance

Exam Focus Area	Relevance Level
UPSC CSE	GS-2 (Polity: Parliament structure, Constitutional Amendments, Tenth Schedule)
State PSCs	Local political shifts and Speaker’s powers
SSC / Bank	General Awareness (Facts about 52nd and 91st Amendments)

5. Exercise Dustlik 2026

Source: News on Air

Context:

The seventh edition of the India-Uzbekistan joint military exercise, ‘Dustlik’, concluded with a validation ceremony at the Gurumsaray Field Training Area in Uzbekistan. This exercise is a cornerstone of India’s growing security engagement with Central Asian republics.

What is Exercise Dustlik?

Dustlik (which means “Friendship” in Uzbek) is an annual bilateral military exercise between the Indian Army and the Uzbekistan Armed Forces.

• Frequency: Annual, conducted on a rotational basis between the two countries.
• Previous Edition (2025): Held in Pune, India.
• Current Edition (2026): Hosted by Uzbekistan at the Gurumsaray Field Training Area in Namangan.

Core Objectives

The exercise is designed to move beyond basic cooperation toward deep tactical synergy:

• Unified Command: Establishing a shared “operational algorithm” for command-and-control. This ensures that if the two armies ever had to work together, their leadership structures would communicate seamlessly.
• Counter-Terrorism: The primary focus is on neutralizing “unlawful armed groups” in mountainous or rural terrain—a challenge relevant to both nations.
• Skill Sharing: Joint planning, tactical drills, and specialized arms training.

The Validation Phase

The hallmark of Exercise Dustlik is its rigorous conclusion.

• 48-Hour Test: The exercise culminates in a continuous 48-hour validation phase.
• Real-world Scenarios: Troops are tested on their ability to execute joint special operations, intelligence gathering, and precision strikes under high-pressure, simulated combat conditions.
• Physical Rigor: The curriculum is noted for its high demand on physical fitness, reflecting the rugged geography of Central Asia.

Key Concepts: Keyword Q&A

Q: Why is the exercise called “Dustlik”?

A: The word Dustlik translates to Friendship in the Uzbek language, symbolizing the strengthening diplomatic and military bonds between New Delhi and Tashkent.

Q: What is a “Validation Ceremony”?

A: It is a formal event at the end of a military exercise where the outcomes are reviewed, successful tactics are demonstrated, and participating troops are honored for achieving operational objectives.

Q: What kind of terrain is the “Gurumsaray Field Training Area”?

A: Located in the Namangan region, it offers a mix of semi-arid and hilly terrain, ideal for simulating counter-insurgency operations in the diverse landscapes found across Central Asia and India.

Conceptual MCQs

Q1. The 2026 edition of Exercise Dustlik was the _______ edition of the bilateral series. A) Fifth

B) Sixth

C) Seventh

D) Tenth

Q2. Where was the 2025 edition of Exercise Dustlik held? A) Tashkent, Uzbekistan

B) Pune, India

C) Ranikhet, India

) Termez, Uzbekistan

Q3. What is the primary tactical focus of Exercise Dustlik? A) Naval blockades and maritime security

B) Cyber warfare and satellite jamming

C) Counter-terrorism and joint tactical drills

D) High-altitude paratrooper drops only

Answers: Q1: C | Q2: B | Q3: C

Exam Relevance

Exam Focus Area	Relevance Level
UPSC CSE	GS-2 (International Relations: India and its neighborhood/extended neighborhood)
Defence Exams (CDS/NDA/AFCAT)	Military exercises, locations, and participating nations
SSC / Bank PO	Current affairs (Summits, exercises, and international venues)

6. Bharat Taxi

Source: PIB

Context:

Union Minister Piyush Goyal officially launched the Bharat Taxi app and driver onboarding program in Mumbai, Maharashtra. This marks a major expansion for the platform, which aims to liberate drivers (referred to as “Sarathis”) from the high commissions and restrictive models of private aggregators like Ola and Uber.

What is Bharat Taxi?

Bharat Taxi is a “Sarathi Hi Malik” (Driver is the Owner) platform. Unlike private giants where drivers are contractors, Bharat Taxi is a cooperative where drivers are shareholders.

• Founded: Established on June 6, 2025, by eight national-level cooperative institutions (including Amul, IFFCO, KRIBHCO, NAFED, and NABARD).
• Legal Status: Registered under the Multi-State Cooperative Societies (MSCS) Act, 2002.
• National Launch: Officially launched by Home Minister Amit Shah on February 5, 2026, in New Delhi.

What are Key Benefits for Drivers (Sarathis)?

The platform is designed to maximize the earnings of those “toiling on the road” rather than corporate owners.

• Zero Commission: Drivers keep 100% of the fare. There are no per-ride commissions or hidden subscription charges.
• MUDRA Loan Access: The app facilitates easy access to MUDRA loans for drivers to upgrade their vehicles or switch to Electric Vehicles (EVs).
• Social Security: Every registered driver receives a ₹5 lakh personal accident insurance and ₹5 lakh family health insurance cover.
• Co-Ownership: Drivers can become official stakeholders by purchasing cooperative shares (starting at ₹500 for five shares).

Key Concepts: Keyword Q&A

Q: Who are the “Sarathis”?

A: This is the respectful term used by the government and the cooperative to refer to the auto-rickshaw and cab drivers, positioning them as the “pilots” of India’s mobility.

Q: How does the platform survive with Zero Commission?

A: It operates as a non-profit cooperative. To cover operational expenses at specific locations (like airport prepaid booths), a small 7% service charge is applied, but standard app bookings remain commission-free.

Q: What is the “Sahkar se Samriddhi” vision?

A: It means “Prosperity through Cooperation.” It is the guiding philosophy of the Ministry of Cooperation to use the cooperative model to generate employment and social security at the grassroots level.

Conceptual MCQs

Q1. Under which Act is the “Bharat Taxi” cooperative platform registered?

A) Companies Act, 2013

B) Multi-State Cooperative Societies Act, 2002

C) Trade Unions Act, 1926

D) IT Act, 2000

Q2. Which of the following is NOT a benefit provided to drivers on the Bharat Taxi platform?

A) ₹5 lakh free insurance

B) Access to MUDRA loans

C) 20% commission per ride

D) Zero subscription charges

Q3. Which Union Minister officially launched the Mumbai chapter of the Bharat Taxi app in April 2026?

A) Amit Shah

B) Nitin Gadkari

C) Piyush Goyal

D) Ashwini Vaishnaw

Answers: Q1: B | Q2: C | Q3: C

Exam Relevance

Exam Focus Area	Relevance Level
UPSC CSE	GS-3 (Economy: Cooperatives, Gig economy, Inclusive growth)
RBI Grade B	Phase II: ESI (Social security for gig workers, Financial inclusion)
SSC / Bank PO	Current affairs (New apps, government schemes, and digital initiatives)

7. India’s First UNESCO Chair on Gender Inclusion and Skill Development

Source: PIB

Context:

During the international conference “Women Leading the Future of Work” held at Symbiosis Skills and Professional University (SSPU) in Pune, Union MoS Jayant Chaudhary launched Asia’s first UNESCO Chair dedicated specifically to Gender Inclusion and Skill Development.

What is a UNESCO Chair?

The UNESCO Chairs program is a global initiative that involves over 850 institutions across 115 countries. It aims to promote international inter-university cooperation and networking to enhance institutional capacities through knowledge sharing and collaborative work.

• Unique Status: This is the first time a UNESCO Chair focusing on the intersection of Gender and Technical Skills has been established in Asia.
• Host Institution: Symbiosis Skills and Professional University (SSPU), Pune.
• Leadership: Led by Swati Mujumdar, Pro-Chancellor of SSPU.

Focus on “Future-Ready” Sectors

The primary goal of the Chair is to break traditional gender silos by preparing women for high-growth, high-tech industries where they are currently underrepresented.

• Target Sectors:
  • Artificial Intelligence (AI) & Machine Learning
  • Semiconductor Technology (aligned with the India Semiconductor Mission)
  • Robotics & Advanced Manufacturing
  • Defense & Strategic Electronics
• The “Skill-Gap” Mission: The Chair will design training frameworks that address the specific socio-economic barriers women face when entering STEM (Science, Technology, Engineering, and Mathematics) fields.

Key Concepts: Keyword Q&A

Q: Why is “Gender Inclusion” coupled with “Skill Development”?

A: Research shows that while women are gaining basic education, they are often excluded from specialized technical training (upskilling). Coupling the two ensures that inclusion isn’t just about presence, but about competence in high-value roles.

Q: What is the significance of the location (Pune)?

A: Pune is often called the “Oxford of the East” and is a major hub for the automotive, IT, and manufacturing sectors. Hosting the Chair here allows for direct industry-academia collaboration.

Q: How does this align with UNESCO priorities?

A: Global priority “Gender Equality” is one of UNESCO’s two overarching goals. This Chair directly supports Sustainable Development Goal (SDG) 4 (Quality Education), SDG 5 (Gender Equality), and SDG 8 (Decent Work and Economic Growth).

Conceptual MCQs

Q1. Where is the newly launched UNESCO Chair on Gender Inclusion and Skill Development located?

A) IIT Delhi

B) Symbiosis Skills and Professional University (SSPU), Pune

C) TISS, Mumbai

D) IISc, Bangalore

Q2. Who is the designated leader (Chairperson) for this UNESCO initiative?

A) Jayant Chaudhary

B) Swati Mujumdar

C) Nirmala Sitharaman

D) Smriti Irani

Q3. Which of the following is a “Future-Ready” sector specifically targeted by this UNESCO Chair?

A) Traditional Handicrafts

B) Semiconductor Technology

C) Primary School Teaching

D) Basic Clerical Work

Answers: Q1: B | Q2: B | Q3: B

Exam Relevance

Exam Focus Area	Relevance Level
UPSC CSE	GS-1 (Social Issues: Role of women), GS-2 (International Bodies: UNESCO), GS-3 (Education & Employment)
State PSCs	Maharashtra-specific education and development initiatives
SSC / Bank PO	Current affairs (Institutions, Appointments, and Summits)

Banking/Finance

1. Banking Regulation Act, 1949

Source: The Hindu (TH)

Context:

In a landmark regulatory move, the Reserve Bank of India (RBI) has officially cancelled the banking licence of Paytm Payments Bank Limited (PPBL). This action was taken under Section 22 of the Banking Regulation Act, 1949, citing persistent non-compliance and management issues that were deemed “detrimental to the interest of depositors.”

What is the Banking Regulation Act, 1949?

This Act is the bedrock of financial stability in India. It empowers the RBI to act not just as a central bank, but as a strict regulator and supervisor of all commercial and (since 1965) cooperative banks.

• Evolution: Originally enacted as the Banking Companies Act, 1949, it was renamed in 1966 to expand its scope beyond just “companies.”
• Primary Mandate: To protect the interest of depositors and ensure that banks operate on “sound financial principles.”
• Overriding Power: Under Section 5A, the provisions of this Act override a bank’s own Memorandum or Articles of Association if they conflict with the law.

Why was Paytm Payments Bank’s Licence Cancelled?

The RBI invoked specific sub-clauses of Section 22(3) to justify the cancellation effective April 24, 2026:

• Detrimental Conduct [Section 22(3)(b)]: The bank’s affairs were conducted in a manner harmful to its depositors.
• Management Character [Section 22(3)(c)]: The “general character of the management” was found prejudicial to public interest.
• Failure of Purpose [Section 22(3)(e)]: RBI concluded that letting the bank continue served no useful public purpose.
• Breach of Conditions [Section 22(3)(g)]: Persistent failure to meet the specific conditions of its Payments Bank licence (e.g., KYC and transaction monitoring).

Key Sections & Powers of the RBI

The Act provides a toolkit of powers that the RBI uses to maintain order in the financial system:

Section	Power / Feature	Description
Section 5(b)	Definition of Banking	Defined as accepting deposits from the public for the purpose of lending or investment.
Section 8	Prohibition of Trading	Banks cannot engage in buying/selling goods directly (to prevent high-risk commercial exposure).
Section 22	Licensing & Cancellation	Crucial: No bank can start without a licence, and RBI can withdraw it if the bank fails to comply with norms.
Section 35	Inspection	RBI has the right to inspect a bank’s books and accounts at any time.
Section 35A	Power to give Directions	Allows RBI to issue binding instructions to banks in the interest of public/banking policy.
Section 36ACA	Supersession of Board	RBI can remove a bank’s Board of Directors and appoint an administrator in cases of mismanagement.
Section 44A	Amalgamation	Procedures for merging two banking companies.

Impact of the 2026 Paytm Ruling

• Liquidation: Following the cancellation, the RBI is moving the High Court to initiate winding-up proceedings under Section 38.
• Depositor Safety: The RBI clarified that PPBL has “sufficient liquidity” to repay all existing deposits, ensuring the resolution doesn’t spark a wider panic.
• Operational Ban: Effective immediately, the entity is prohibited from the “business of banking” as defined in Section 5(b).

Key Concepts: Keyword Q&A

Q: What is “Winding Up”?

A: It is the legal process of closing a bank. A liquidator is appointed to sell the assets, pay off creditors, and return any remaining money to depositors.

Q: Can the RBI remove a Bank’s CEO?

A: Yes. Under Section 10BB, the RBI has the power to appoint or remove the Chairman or Managing Director of a banking company if it deems their presence detrimental to the bank.

Q: Does this Act apply to Cooperative Banks?

A: Yes. Since the 1965 Amendment (Section 56), cooperative banks also fall under the regulatory umbrella of the RBI for licensing and prudential norms.

Conceptual MCQs

Q1. Under which specific section of the Banking Regulation Act, 1949, can the RBI cancel the licence of a banking company?

A) Section 5(b)

B) Section 22

C) Section 35A

D) Section 44A

Q2. The prohibition of a banking company from engaging in the direct buying or selling of goods (trading) is mentioned under:

A) Section 8

B) Section 11

C) Section 20

D) Section 30

Q3. Which section of the Act defines the “business of banking” in India?

A) Section 5(a)

B) Section 5(b)

C) Section 6

D) Section 22

Answers: Q1: B | Q2: A | Q3: B

Exam Relevance

Exam Focus Area	Relevance Level
UPSC CSE	GS-3 (Economy: Regulatory bodies, Banking reforms, Statutory laws)
RBI Grade B	Phase II: Finance (Acts related to Banking, RBI powers, Regulatory history)
IBPS / Bank PO	General Awareness (Current banking news, Licensing norms, Section numbers)

2. The IBC (Amendment) Act, 2026

Source: BS

Context:

The Insolvency and Bankruptcy Code (Amendment) Act, 2026, represents a significant evolution in India’s decade-old insolvency framework. It transitions the IBC from a lender-centric tool to a “lifeline for the ordinary citizen,” specifically addressing the systemic delays that have plagued real estate resolutions like the Jaypee Infratech (JIL) saga.

What is The Insolvency and Bankruptcy Code (Amendment) Act, 2026?

The Insolvency and Bankruptcy Code (Amendment) Act, 2026, which received Presidential assent in April 2026, marks the most significant structural overhaul of India’s insolvency framework since its inception in 2016.

The amendment shifts the IBC from being a purely lender-centric recovery tool to a more balanced “performance-led” model, specifically aiming to resolve the “stalled dreams” of homebuyers and reduce the massive backlog of cases at the National Company Law Tribunal (NCLT).

Key Features of the 2026 Amendment

The 2026 Amendment introduces structural changes to speed up resolutions and reduce the burden on the National Company Law Tribunal (NCLT).

A. The New Hybrid Mechanism (Out-of-Court)

The “fast-track” process has been replaced with a creditor-initiated resolution mechanism.

• Threshold: Financial creditors holding >51% of the debt can initiate negotiations before entering the NCLT.
• Model: A “debtor-in-possession, creditor-in-control” model. The current management runs the company under the supervision (and veto power) of an Insolvency Professional.
• Timeline: 150 days for the base period, with one 45-day extension.

B. Strict Enforcement of Timelines

• 14-Day Window: NCLT must accept an insolvency application within 14 days of default. Failure to comply now carries penalties.
• 330-Day Outer Limit: Reinforced rules to discourage frivolous lawsuits that delay the final resolution.

C. Group and Cross-Border Insolvency

• Group Insolvency: Allows a single resolution process for multiple companies within the same corporate group—critical for real estate firms with complex networks of Special Purpose Vehicles (SPVs).
• Cross-Border Cooperation: Enables Indian courts to recognize and work with foreign insolvency proceedings.

Key Concepts: Keyword Q&A

Q: What is a “Dissenting Financial Creditor”?

A: A lender who does not vote in favor of the resolution plan. The 2026 amendment ensures they receive at least a minimum payment to prevent them from stalling the process in court.

Q: What is the “Moratorium”?

A: A legal freeze on all lawsuits and debt recovery actions against a company once it enters the insolvency process. The 2026 rules now impose penalties for violating this moratorium.

Q: Why is “Group Insolvency” important?

A: Real estate developers often create a separate company for every new project. Group insolvency allows the court to treat the parent and its sub-companies as one, preventing assets from being hidden in different entities.

Conceptual MCQs

Q1. Under the 2026 IBC Amendment, what percentage of debt must financial creditors hold to initiate the new hybrid out-of-court resolution?

A) 25%

B) 51%

C) 66%

D) 75%

Q2. What is the base time limit for drafting and approving a resolution plan under the new creditor-initiated mechanism?

A) 90 days

B) 150 days

C) 180 days

D) 330 days

Q3. In the Jaypee Infratech (JIL) case, which group’s resolution plan was approved by the homebuyers and lenders?

A) IDBI Group

B) Adani Group

C) Suraksha Group

D) Puma Realtors

Answers: Q1: B | Q2: B | Q3: C

Exam Relevance

Exam Focus Area	Relevance Level
UPSC CSE	GS-3 (Economy: Investment Models, Banking, and Debt Recovery)
RBI Grade B	Phase II: Finance (Insolvency frameworks, ESI: Financial inclusion)
State PSCs	Impact on real estate and urban housing projects

Agriculture

1. NAAS Policy Paper: Enhancing the Economic Viability of FPOs

Source: The Hindu (TH)

Context:

Despite the Union Government’s goal to form 10,000 Farmer Producer Organisations (FPOs), a new policy paper by NAAS highlights that many are struggling to survive. The paper suggests a shift from mere formation to active market-side intervention by the government to ensure their long-term viability.

What is an FPO?

A Farmer Producer Organisation (FPO) is a legal entity formed by primary producers—farmers, milk producers, fishermen, etc. It allows small and marginal farmers to aggregate their produce, giving them better bargaining power and access to technology.

• The Vision: To transform a “Peasant” into a “Producer” with business acumen.
• Leadership of NAAS: The academy is headed by Mangi Lal Jat, who is also the Director General of the Indian Council of Agricultural Research (ICAR).

Why are FPOs Struggling?

The NAAS paper identifies several systemic “pain points” that prevent FPOs from becoming profitable businesses:

• Low Membership Base: Many FPOs lack the “numbers” needed to achieve economies of scale. Without enough volume, they cannot negotiate better prices for fertilizers or output sales.
• Inadequate Management: A lack of professional skills in financial management and technical operations.
• Credit & Market Gaps: Limited access to formal bank credit and weak links to the actual buyers in the market.
• Support Deficit: Promoting agencies are often successful at forming the group but fail to provide the long-term “hand-holding” required for capacity building.

Key Recommendations for Government Aid

The most significant recommendation in the paper is for the government to become a guaranteed buyer to provide an initial “safety net.”

Recommended Buyer	Purpose of Procurement
Indian Railways	Procurement of food items for catering and non-food commodities.
The Military	Bulk procurement of fresh and processed agricultural goods for the armed forces.
Food Corporation of India (FCI)	Prioritizing FPOs over traditional middlemen for grain procurement.

The Logic: Direct procurement by these institutional giants reduces “market search costs” for the FPO and ensures the delivery of high-quality, traceable goods for the buyer.

The Role of Corporates

The paper acknowledges that the corporate sector has begun providing expertise to FPOs. This “Private-Producer Partnership” is seen as a way to bring in modern processing technology and global quality standards, though it currently remains limited in scale.

Key Concepts: Keyword Q&A

Q: What are “Economies of Scale”? A: It is a proportionate saving in costs gained by an increased level of production. For an FPO, it means that buying seeds for 1,000 farmers is much cheaper per bag than buying for just 10 farmers.

Q: Why prioritize the Military and Railways? A: These are “Institutional Buyers” with massive, predictable, and consistent demand. A single contract with the Railways can sustain an FPO’s entire annual production cycle, removing the risk of price volatility.

Q: What is the “SEED” connection? A: While the SEED scheme (discussed earlier) targets DNTs, FPOs are the primary vehicle for the PM-FME (Formalisation of Micro food processing Enterprises) scheme, which helps farmers add value to their crops (e.g., turning tomatoes into puree).

Conceptual MCQs

Q1. Who is the current head of the National Academy of Agricultural Sciences (NAAS)?

A) MS Swaminathan

B) Mangi Lal Jat

C) Ramesh Chand

D) Himanshu Pathak

Q2. According to the NAAS paper, what is a primary reason for the poor performance of FPOs?

A) Lack of interest from farmers

B) Excessive government regulation

C) Low membership base leading to poor economies of scale

D) High export taxes

Q3. Which body has the NAAS recommended should prioritize FPOs in its procurement process?

A) NITI Aayog

B) Indian Railways

C) Reserve Bank of India

D) ISRO

Answers: Q1: B | Q2: C | Q3: B

Exam Relevance

Exam Focus Area	Relevance Level
UPSC CSE	GS-3 (Agriculture: Issues related to direct & indirect farm subsidies and MSP; FPOs)
NABARD Grade A	Economic & Social Issues / Agriculture & Rural Development (FPO formation & viability)
SSC / Bank PO	General Awareness (Current heads of organizations like ICAR/NAAS)

Facts To Remember

1. India Launches First UNESCO Chair on Gender Inclusion & Skills

Jayant Chaudhary launched India’s first UNESCO Chair on Gender Inclusion and Skill Development at SSPU Pune; it aims to boost women’s participation in AI, semiconductor and advanced sectors; the initiative focuses on skills, policy research and global collaboration.

2. Govt Forms Panel to Assess AI Risks from Mythos Platform

The Government of India formed a panel under C. S. Setty to assess risks from Anthropic’s Mythos AI platform; banks will coordinate via IBA and report cyber threats to CERT-In; the move strengthens AI risk governance.

3. India-Africa Forum Summit 2026 Branding Launched

S. Jaishankar launched the logo, theme and website for IAFS-IV; the summit will be held in May 2026 in New Delhi; it highlights India-Africa strategic partnership and cooperation.

4. Govt Expands Procurement Under PM-AASHA and Pulses Mission

The Ministry of Consumer Affairs Food and Public Distribution expanded procurement in Chhattisgarh and launched pulse procurement in Bihar; it is supported by NAFED; the move aims to stabilise prices and boost farmer income.

5. Himadri Commissions India’s First Anode Material Plant

Himadri Speciality Chemical Limited launched India’s first anode material facility in West Bengal; it supports lithium-ion battery production; the plant strengthens India’s EV and clean energy ecosystem.

6. Akashvani Launches Nationwide Tune and Jingle Contest

All India Radio and MyGov launched contests to mark 90 years of broadcasting; citizens can create signature tunes and jingles; the initiative promotes public participation in media innovation.

7. CMEC and Delhi University Sign MoU for Maritime Education

University of Delhi signed an MoU with CMEC to boost maritime education; it focuses on research, training and policy collaboration; the initiative supports India’s maritime growth vision.

8. Rocklink India Opens Battery and Rare Earth Recycling Plant

Rocklink India Private Limited launched India’s first lithium-ion battery and rare earth recycling facility in UP; it recovers critical minerals like lithium and cobalt; the plant supports EV and clean energy sectors.

9. Guntur Municipal Corporation Wins UNIDO GEM Award 2026

UNIDO awarded Guntur Municipal Corporation the GEM Award; it recognises efforts in gender equality and sustainable industrial practices; the award highlights India’s urban innovation.

10. Ashok Lahiri Appointed Vice-Chairman of NITI Aayog

NITI Aayog appointed Ashok Lahiri as Vice-Chairman and Gobardhan Das as Member; the appointments strengthen policy leadership; Lahiri succeeds Suman Bery.

11. Parminder Singh Appointed CEO of Reliance Enterprise Intelligence

Reliance Enterprise Intelligence Limited appointed Parminder Singh as CEO; he brings extensive global tech experience; the move supports AI-driven enterprise growth.

12. NASA Unveils Roman Space Telescope for Dark Matter Study

NASA introduced the Nancy Grace Roman Space Telescope; it will study dark matter and exoplanets; the mission will enhance understanding of the universe.

13. Blue Origin Rocket Mission Faces Failure

Blue Origin failed to place satellite into orbit due to engine issues; the mission aimed at space-based connectivity; the failure highlights technical challenges in space missions.

14. India Selected for FIFA Women’s Development Programme

FIFA selected India for Women’s Development Programme 2026; it aims to improve commercial viability of women’s football; the initiative supports long-term sports growth.

15. Dean Tavoularis Passes Away at 93

Dean Tavoularis, Oscar-winning production designer, passed away; he was known for films like The Godfather; his work shaped cinematic art direction.

16. MM Naravane Launches Book on Military Myths

Manoj Mukund Naravane released “The Curious and the Classified”; the book explores military traditions and stories; it highlights lesser-known aspects of armed forces.

17. International Girls in ICT Day 2026 Observed on April 23

The day promotes women’s participation in ICT careers globally; the 2026 theme focuses on AI and digital future; it is led by International Telecommunication Union.

18. National Panchayati Raj Day 2026 Observed on April 24

India celebrates Panchayati Raj Day to promote grassroots governance; it marks the 73rd Constitutional Amendment; the day highlights decentralised democracy and rural development.

19. World Day for Laboratory Animals 2026 Observed on April 24

The day raises awareness about ethical concerns in animal testing; it promotes alternatives to laboratory animal use; it is supported by global animal rights organisations.

20. Coca-Cola India Signs MoU with Uttar Pradesh for Development

Coca-Cola India signed a 3-year MoU with Invest UP; it focuses on water access, waste management and livelihoods; the initiative promotes sustainable community development.