Daily Current Affairs (DCA) 27 February, 2026

Daily Current Affairs Quiz
27 February, 2026

National Affairs

1. Artificial Intelligence (AI) Transforming Rural India

Source: PIB

Why in News?

Government highlights the expanding role of Artificial Intelligence (AI) in rural development. Emphasis on inclusive, people-centric AI aligned with Viksit Bharat@2047. India–AI Impact Summit 2026 signals transition from pilot projects to system-wide AI deployment.

Key Takeaways

• AI positioned as a public good to promote equity and inclusion.
• Focus on fairness, transparency, accountability, and India-specific risk mitigation.
• Integration of AI with Panchayati Raj Institutions, Digital Public Infrastructure, agriculture, health, and skilling.
• Multilingual AI tools reducing literacy and language barriers.

National AI Policy & Governance Framework

National Strategy for Artificial Intelligence (2018) – “AI for All”

• Launched by NITI Aayog.
• Focus on agriculture, healthcare, education, and governance.
• AI seen as an augmentation tool, not a replacement for human labour.
• Promotes decentralised skilling and digital work opportunities.

India AI Governance Guidelines (2025)

Launched by Ministry of Electronics and IT (MeitY).

Core Features

• Seven guiding ethical principles (Sutras).
• Six governance pillars.
• Time-bound action plan.
• Practical compliance guidelines for industry and regulators.

Focus Areas

• Prevent bias and exclusion in welfare delivery.
• Embed privacy and accountability in Digital Public Infrastructure.
• Promote whole-of-government coordination.

AI in Rural Governance

AI in Panchayati Raj Institutions

SabhaSaar

• AI tool generating structured minutes of Gram Sabha meetings.
• Integrated with BHASHINI for multilingual support.
• Reduces administrative burden and improves documentation.

eGramSwaraj

• Unified digital platform for planning, budgeting, accounting, and monitoring.
• Covers over 2.5 lakh Gram Panchayats.

Gram Manchitra

• GIS-based rural planning tool.
• Supports asset mapping and Gram Panchayat Development Plans.

AIKosh

• National AI repository with:
  • 7,500+ datasets
  • 273 AI models
• Enables reuse of AI tools for governance applications.
• Facilitates innovation in rural public service delivery.

AI Infrastructure in Rural Development

BhuPRAHARI

• AI + geospatial platform.
• Monitors MGNREGA and rural assets.
• Uses satellite and ground data.
• Enhances transparency and planning.

Digital ShramSetu Mission

• AI deployment for informal and rural workers.
• Supports livelihood services and regulatory integration.

AI in Agriculture

• Weather forecasting and pest detection.
• Crop health monitoring.
• Kisan e-Mitra virtual assistant.
• Real-time advisories using satellite and soil data.
• Improves productivity and reduces risk.

AI in Education & Skilling

DIKSHA (NCERT)

• AI-enabled search and read-aloud tools.
• Supports inclusive education.

YUVAI (Youth for Unnati and Vikas with AI)

• AI training for Classes VIII–XII.
• Focus on experiential learning and future-ready skills.

Suman Sakhi (Madhya Pradesh)

• AI-enabled WhatsApp chatbot.
• Supports maternal and newborn health.
• Enhances last-mile health delivery.

AI for Multilingual Inclusion

BHASHINI

• National AI language platform.
• Supports 36+ Indian languages.
• Integrated with 23+ government services.
• Provides translation and voice-based access.

BharatGen

• India’s sovereign multilingual Large Language Model.
• Supports 22 Indian languages.
• Designed for governance and public service applications.

Adi Vaani

• AI platform for tribal language inclusion.
• Supports governance and service delivery in native languages.
• Promotes preservation of endangered languages.

2. 7th Edition of India–Japan Joint Military Exercise DHARMA GUARDIAN

Source: News on Air

Why in News?

The 7th edition of Exercise DHARMA GUARDIAN, the annual joint military exercise between India and Japan, began on February 24, 2026 at the Foreign Training Node, Chaubattia, Uttarakhand. The exercise will continue till March 9, 2026.

About Exercise DHARMA GUARDIAN 2026

Nature of Exercise

• Annual bilateral military exercise between India and Japan.
• Focused on enhancing tactical cooperation and operational coordination.

Participating Forces

Indian Contingent

• Represented by the Indian Army (IA).
• Troops drawn from the Ladakh Scouts, known for expertise in high-altitude and rugged terrain operations.

Japanese Contingent

• Represented by the Japan Ground Self-Defense Force (JGSDF).
• Personnel from the 32nd Infantry Regiment.
• Around 120 personnel from each side are participating.

3. South Central Railway Launches Next-Generation ‘Rail Parcel App’

Source: News on Air

Why in News?

South Central Railway (SCR) launched a next-generation ‘Rail Parcel App’ at Rail Nilayam, Secunderabad. The app is designed as a digital e-marketplace for freight and parcel services.

About the Rail Parcel App

• First-of-its-kind digital platform for railway parcel logistics.
• Provides seamless end-to-end services including:
  • Doorstep pickup
  • Doorstep delivery
  • Real-time tracking
  • Automated notifications
  • Secure digital payment options
• Aims to eliminate long queues at parcel offices and improve customer convenience.

Pilot Rollout

• Initially launched across seven major locations, including:
  • Hyderabad
  • Vijayawada
  • Bengaluru
• To be expanded based on performance and feedback.

4. International Climate Initiative (IKI)

Source: NIE

Why in News?

Germany and India have launched a €20 million (approx. ₹180 crore) Large Grant project under the International Climate Initiative (IKI). The project aims to strengthen India’s climate resilience, especially in ecologically vulnerable regions.

About International Climate Initiative (IKI)

The International Climate Initiative (IKI) is a key financial mechanism of the German Government that funds international projects focused on:

• Climate change mitigation
• Climate adaptation
• Biodiversity conservation

It supports developing and emerging economies in achieving global climate goals.

Established: 2008

Countries Involved

• Donor Country: Germany
• Partner Countries: 150+ countries
• Priority Countries (14): Includes India, Brazil, China, South Africa, Mexico, Indonesia, among others.

Aim

• Support implementation and enhancement of Nationally Determined Contributions (NDCs) under the Paris Agreement.
• Assist in achieving targets under the Convention on Biological Diversity (CBD).

Banking/Finance

1. SEBI Broadens Mutual Fund Categories

Source: TH

Context:

India’s market regulator, Securities and Exchange Board of India (SEBI), has expanded mutual fund (MF) categories to better reflect changing investor needs and evolving market dynamics.

Key Regulatory Changes

1. Introduction of Lifecycle Funds

• A new mutual fund category aligned with long-term financial goals.
• Replaces retirement funds and children’s funds, which are being discontinued.
• Investment duration: minimum 5 years, maximum 30 years.
• Designed to adjust asset allocation over time based on investment horizon.

2. Sectoral Debt Funds Allowed

Asset Management Companies (AMCs) can now launch schemes that invest in debt instruments of specific sectors.

Key conditions:

• Minimum 80% investment in debt and debt-related instruments of a single sector.
• Investments restricted to corporate bonds rated above AA+ (high credit quality).
• Approved sectors include:
  • Financial services
  • Energy
  • Infrastructure
  • Housing
  • Real estate

This enables targeted exposure to specific industries through relatively safer, high-rated debt.

3. Investment Flexibility in Long-Duration Funds

• Residual investments in long-duration funds may be allocated to Infrastructure Investment Trusts (InvITs).
• However, such investments must not exceed 50% of the sectoral composition of the debt fund.

2. New GDP Data Series to Capture Economy More Accurately

Source: ET

Why in News?

India is releasing a new series of national accounts incorporating methodological and statistical upgrades. The revision aims to make GDP and GVA estimates more accurate, granular, and reflective of the present economic structure.

Key Changes in the New GDP Series

1. Base Year Revision

• Base year updated from 2011–12 to 2022–23.
• Improves relevance of estimates and comparability across years.

2. Improved Measurement of Private Corporate Sector

• Earlier: Entire company’s value added assigned to its dominant sector.
• Now: Activity-wise revenue share used to allocate value added across sectors.

3. Changes in Government Sector Estimation

• Includes imputed value of housing services provided to government employees.
• Expanded coverage of autonomous institutions and local bodies.

4. Better Estimation of Household Sector

• Annual use of:
  • Annual Survey of Unincorporated Sector Enterprises (ASUSE)
  • Periodic Labour Force Survey (PLFS)
• Replaces earlier extrapolation-based estimates.

5. More Accurate Consumption Measurement

• Private Final Consumption Expenditure estimated using:
  • Household Consumer Expenditure Surveys
  • Production and other direct data sources.

3. RBI Gives Compliance Relief for Small Merchant UPI Transactions

Source: Business Standard

Why in News?

The Reserve Bank of India (RBI) has clarified regulatory norms for small merchant UPI transactions (P2PM). The move eases compliance requirements for fintech firms like PhonePe and Paytm, especially in the unorganised retail segment.

Key RBI Clarifications

• Peer-to-Peer Merchant (P2PM) transactions do not require a Payment Aggregator (PA) partner.
• These transactions are outside the scope of RBI’s Master Directions on Payment Aggregators (MD-PA).
• Funds move directly between customer and merchant accounts via UPI — no pooling or holding of funds.
• Due diligence responsibility lies with acquiring banks or payee Payment Service Providers (PSPs).
• Firms offering only technical infrastructure will be treated as technology service providers, not payment aggregators.

Background

• The P2PM category was introduced by NPCI in 2019.
• Typically used by small or informal merchants such as street vendors and gig workers.
• These merchants generate high transaction volumes but less than 20% of total transaction value.
• Many fintech firms have extensive QR code and soundbox networks among such merchants.

What are P2PM Transactions?

• UPI payments made by customers directly to small merchants, often in the unorganised retail sector.
• Usually involve low-value transactions and simple QR-based payments.

Difference: P2PM vs P2M

• P2PM: Direct bank-to-bank transfer; no intermediary handling funds.
• P2M (regular merchant payments): Licensed payment aggregators handle funds and settle through escrow accounts.

3. Sixteenth Finance Commission and Fiscal Challenges for States

Why in News?

• The Sixteenth Finance Commission (FC) has revised the formula for horizontal tax devolution among states while keeping vertical devolution unchanged.
• The new distribution creates fiscal pressures for some states, especially those with high debt and dependence on central transfers.

Key Concepts

Vertical Devolution

• Share of central tax revenue transferred from the Union to all states collectively.

Horizontal Devolution

• Distribution of that share among individual states, based on criteria such as population, income levels, and fiscal performance.

Major Changes in the 16th Finance Commission Award

Vertical Devolution

• Remains unchanged.

Horizontal Devolution

• Formula revised, creating gainers and losers among states.

States with Increased Share

• Andhra Pradesh
• Gujarat
• Haryana
• Karnataka
• Kerala
• Punjab

States with Reduced Share

• Arunachal Pradesh
• Madhya Pradesh
• Uttar Pradesh
• West Bengal

Debt and Devolution Concerns

• Several states with high debt-to-GSDP ratios (above 30–40%) are seeing:
  • Decline or slow growth in tax devolution.
• Some highly indebted states are also heavily dependent on central transfers.
• Reduced transfers may strain their fiscal position.

Additional Concern: Shift in Central Funding Pattern

• Union government increasingly using “challenge mode” funding:
  • Limited funds allocated competitively.
  • States must design and execute strong proposals.

Implication

• Encourages efficiency and innovation.
• But creates uncertainty for fiscally weaker states.

Fiscal Consolidation Targets (16th Finance Commission)

• Union fiscal deficit:
  • To reduce from 4.4% (2025–26) to 3.5% by 2030–31.
• States:
  • Expected to maintain fiscal deficit at 3% of GDP.
  • Strict enforcement under Article 293(3) of the Constitution.

4. Sebi Broadens Scope for Equity Mutual Funds

Source: Business Standard

Why in News?

• The Securities and Exchange Board of India (Sebi) has revised mutual fund scheme categorisation.
• Active equity schemes are now allowed to invest in gold and silver.
• New categories such as Life Cycle Funds and Sectoral Debt Funds have been introduced.

Key Regulatory Changes

1. Gold and Silver Exposure in Equity Funds

• Active equity schemes can now include gold and silver within the permitted 20–35% non-equity allocation.
• Earlier, this portion was limited to debt, REITs, and InvITs.
• Provides greater flexibility to manage market volatility.

2. Discontinuation of Solution-Oriented Schemes

• Retirement funds and children’s funds have been discontinued as separate categories.

3. Introduction of Life Cycle Funds

• Goal-based funds with a pre-determined maturity (5–30 years).
• Invest across asset classes:
  • Equity
  • Debt
  • REITs and InvITs
  • Exchange-traded commodity derivatives
  • Gold and silver ETFs
• Follow a glide path: Gradual shift from equity to lower-risk assets as maturity nears.
• Open-ended but with higher exit load (up to 3% in first year).
• Designed to promote disciplined, long-term investing.

4. Expansion in Equity and Hybrid Categories

• Number of categories increased from 11 to 12.
• Fund houses can now offer:
  • Both value and contra funds.
  • Both balanced hybrid and aggressive hybrid funds.

5. Introduction of Sectoral Debt Funds

• Must invest at least 80% in AA+ rated bonds of specific sectors such as:
  • Financial services
  • Energy
  • Infrastructure
  • Housing and real estate
• Aims to provide targeted fixed-income exposure.

6. Restrictions on Portfolio Overlap

• Portfolio overlap between sectoral/thematic schemes and other equity schemes (except large-cap) capped at 50%.
• Existing schemes given three years to align or merge.

7. Rationalisation of Fund of Funds (FoF)

• FoF categories streamlined with clearer classification.

5. Sebi Shifts Gold and Silver Valuation Norms for Mutual Funds to Domestic Spot Prices

Source: Business Standard

Why in News?

• The Securities and Exchange Board of India (Sebi) has changed the valuation method for physical gold and silver held by mutual fund schemes.
• Mutual funds will now use domestic spot prices instead of international benchmark prices.

Key Change

• From April 1, 2026, mutual funds must value physical gold and silver using:
  • Spot prices published by recognised domestic stock exchanges,
  • Specifically those used for settlement of physically delivered derivative contracts.

Earlier Practice

• Valuation was based on London Bullion Market Association (LBMA) AM fixing prices.
• Adjustments were made for:
  • Currency conversion
  • Transport costs
  • Customs duties and taxes
  • Premiums or discounts

Reason for the Change

• Domestic exchange prices are regulated and transparent.
• They better reflect Indian market conditions.
• Ensures uniform valuation practices across mutual funds.
• Aligns asset valuation more closely with domestic price dynamics.

6. RBI Prop Trading Curbs May Give Edge to Foreign Firms

Source: Mint

Why in News?

The Reserve Bank of India (RBI) has tightened bank lending norms for proprietary (prop) traders. Market participants say the move may unintentionally favour foreign trading firms.

What Has RBI Changed?

• From April 1, bank guarantees (BGs) issued to proprietary traders must be:
  • Fully secured
  • At least 50% cash collateral
  • Remaining backed by eligible securities
• Earlier, traders could use:
  • Small cash margin
  • Personal or corporate guarantees

Eligible Non-Cash Collateral

• Government bonds
• Sovereign gold bonds
• Listed shares
• Listed convertible debt securities
• Mutual fund units

(Banks apply haircuts before issuing guarantees.)

Stand-By Letters of Credit (SBLCs)

• Some banks may accept stand-by letters of credit (SBLCs) issued by global banks for foreign prop firms as collateral.
• SBLCs are not explicitly listed in RBI’s eligible collateral framework.
• Domestic prop traders usually do not have access to such global banking arrangements.

What is an SBLC?

• A guarantee issued by a global bank promising payment if its client defaults.
• Used as a form of credit support or collateral.

7. NSE IX Launches ‘Global Access’ Platform for Overseas Investing

Source: TOI

Why in News?

• The National Stock Exchange Limited International Exchange (NSE IX) has launched the ‘NSE IX Global Access’ platform.
• It enables Indian retail investors and Non-Resident Indians (NRIs) to directly invest in overseas markets.

About NSE IX Global Access Platform

• Direct trading in:
  • Equities
  • Debt instruments
  • Exchange-Traded Funds (ETFs)
• Available to:
  • Indian resident investors
  • Non-Resident Indians (NRIs)

Market Coverage

• Initial Phase: Access to US-listed stocks.
• Future Expansion: Planned expansion to 30+ global markets within 3–6 months.

Investment Framework

• Operates under RBI’s Liberalised Remittance Scheme (LRS).
• Resident individuals can remit up to USD 250,000 per financial year for overseas investments.

Operational Mechanism

• Investors transfer funds in Indian rupees (INR) to a designated NSE IX bank account.
• Funds are converted into US dollars for global investments.
• No separate demat account required.

Regulation

• Regulated by the International Financial Services Centres Authority (IFSCA).
• Fully compliant with RBI’s LRS rules.

8. RBI Reports 10.1% Sales Growth for Private Non-Financial Companies

Source: News on Air

Why in News?

• The Reserve Bank of India reported that listed private non-financial companies recorded 10.1% year-on-year sales growth in Q3 FY 2025–26.
• This marks a return to double-digit growth after 11 consecutive quarters of single-digit expansion.

Coverage of the Report

• Based on abridged financial results of 3,188 listed non-government non-financial companies.

Sector-wise Performance

Manufacturing

• Sales growth: 11.4%, up from 8.5% in previous quarter.
• Key drivers:
  • Automobiles
  • Electrical machinery
  • Non-ferrous metals
• Operating profit growth: 11.8%.

Information Technology (IT)

• Sales growth improved to 8.8%.
• Operating profit growth rose to 11.1%.

Non-IT Services

• Sales growth stable at 10.6%.
• Operating profit growth moderated to 4%.

Overall Trends

• Corporate sector showing broad-based improvement in revenues.
• Manufacturing sector leading the recovery.
• Profitability improving, though uneven across sectors.

9. RBI Approves SBI Mutual Fund’s Stake Purchase in Bandhan Bank

Source: ET

Why in News?

The Reserve Bank of India (RBI) has approved a proposal by SBI Mutual Fund to acquire up to 9.99% stake in Bandhan Bank.

Key Details

• Approval granted through an RBI letter dated 25 February 2026.
• SBI Mutual Fund may acquire up to 9.99% of paid-up share capital or voting rights in Bandhan Bank.
• The approval is subject to compliance with multiple regulatory frameworks.

Regulatory Conditions

The acquisition must comply with:

• Banking Regulation Act, 1949
• RBI Commercial Banks – Acquisition and Holding of Shares or Voting Rights Directions, 2025
• Foreign Exchange Management Act (FEMA), 1999
• Securities and Exchange Board of India (SEBI) regulations
• Other applicable laws and guidelines

Agriculture

1. Sebi Working Groups on Agricultural Commodities Submit Reports

Source: Mint

Why in News?

The Securities and Exchange Board of India (Sebi) has received reports from working groups reviewing the delivery and settlement framework in agricultural commodity markets.

Key Developments

• Working groups were set up to re-examine delivery and settlement mechanisms in agri commodity derivatives trading.
• The reports have now been submitted to Sebi for further regulatory action.

Agri Commodity Derivatives

• Derivative contracts (futures/options) based on agricultural products.
• Used mainly by farmers, traders, processors, and agri-businesses for hedging price risk.

Non-Agricultural Commodity Derivatives

• Derivatives based on metals, energy, bullion and other non-farm commodities.
• Used by industrial users, refiners, exporters, and financial participants.

2. AgroTech 2026

Source: Indian Express

Why in News?

A three-day AgroTech 2026 event has been inaugurated in Lucknow to promote innovation, investment, and growth in the agricultural sector.

Key Highlights:

• Venue: Indian Sugarcane Research Institute (ISRI), Lucknow.
• Activities include:
  • Conferences and technical sessions
  • Technology demonstrations
  • Business and investment meetings
  • Farmer outreach programmes

Focus Areas

• Adoption of modern agricultural technologies.
• Diversification into high-value crops.
• Strengthening agricultural infrastructure and value chains.
• Promotion of global partnerships and investments in agriculture.

3. AgriStack

Source: Business Standard

Why in News?

The Union Finance Minister described AgriStack as the “next UPI” at Business Standard Manthan. The government is building a digital public infrastructure for agriculture to improve service delivery to farmers.

What is AgriStack?

• A digital ecosystem for agriculture integrating farmer data, land records, and crop information.
• Aims to create digital IDs for about 110 million farmers.
• Built on three core databases:
  • Farmer registry
  • Land records
  • Crop data
• Approved by the Union government in September 2024.
• Target completion: March 2027.
• So far, 86.2 million farmer IDs created.

Objectives

• Enable farmers to access benefits and services with minimal paperwork.
• Improve delivery of subsidies, insurance, and credit.
• Provide targeted agricultural policy support through accurate data.

Facts To Remember

1. Government Mandates Sale of Petrol with Up to 20% Ethanol Blending

The fuel must meet Bureau of Indian Standards (BIS) norms and have a minimum Research Octane Number (RON) of 95. The government has mandated the sale of petrol blended with up to 20% ethanol (E20) from April 1.

2. Government to Launch Grade-Based Driving Licence System

The Union government plans to introduce a grade-based (points-based) driving licence system to promote responsible driving and reduce road accidents.

3. Speaker of the Knesset Medal

The Israeli Parliament (Knesset) awarded the Speaker of the Knesset Medal to Prime Minister Narendra Modi. The honour recognises his role in strengthening India–Israel strategic relations.

About the Speaker of the Knesset Medal

• The highest honour conferred by the Israeli Parliament (Knesset).
• A special parliamentary distinction recognising individuals for exceptional contributions to Israel and the Jewish people.

4. Kempegowda International Airport Signs MoU with Frankfurt Airport

Kempegowda International Airport signed an MoU with Frankfurt Airport to strengthen India–Europe air cargo connectivity.
The agreement was signed during Air Cargo India 2026 in Mumbai.
It aims to develop a seamless digital cargo corridor between Bengaluru and Frankfurt.
Focus areas include pharma integrity standards and knowledge exchange for efficient trade.

5. Mangaluru Airport Wins 2025 Global ASQ Best Arrivals Award

Mangaluru International Airport won the 2025 Airports Service Quality (ASQ) Award for ‘Best Airport at Arrivals’ for the second consecutive year.
The awards are organised by Airports Council International.
Four Indian airports featured among global winners in the arrivals category.
The recognition highlights excellence in passenger experience and service quality.

6. Nidhi Chhibber Given Additional Charge as CEO of NITI Aayog

Nidhi Chhibber was given additional charge as CEO of NITI Aayog by the ACC.
She assumed the role following completion of B.V.R. Subrahmanyam’s tenure.
Currently, she serves as Director General of the Development Monitoring and Evaluation Office.
She has previously headed CBSE and served in key administrative roles.

7. Indian Army Wins Khelo India Winter Games 2026 Team Title

Indian Army won the 6th edition of the Khelo India Winter Games 2026 team championship.
The second leg of the games was held in Gulmarg, Jammu & Kashmir.
The Army secured 23 medals, including 9 gold medals overall.
Himachal Pradesh and Haryana finished second and third respectively.

8. Veteran Steel Executive Jatinder Mehra Passes Away

Jatinder Mehra, Vice Chairman of Essar Group (Metals & Mining), passed away at 86.
He played a pivotal role in modernising India’s steel industry.
He previously served as CMD of Rashtriya Ispat Nigam Limited and ED at SAIL.
In 2022, he received the Lifetime Achievement Award from the Indian Steel Association.

9. National Protein Day 2026 – 27 February

National Protein Day is observed annually on 27 February across India.
The day promotes awareness about the importance of adequate protein intake.
It was first observed in 2020 under the “Right to Protein” campaign.
The initiative is supported by the US Soybean Export Council to encourage better nutrition.

10. Meghalaya Presents Rs 32,023 Crore Budget for FY27

Conrad K. Sangma presented a Rs 32,023 crore budget for FY2026–27.
The budget projects a fiscal deficit of 3.5% of GSDP.
Capital expenditure is pegged at Rs 10,211 crore, the highest in the state’s history.
Major allocations were made for education, health, urban development, and agriculture sectors.