GS2 · Polity · Governance · IR · 10
GS2International Relations › Policies of other countries affecting IndiaPrelims + Mains Why in news: US Air Force Secretary Troy Meink revealed the deployment of space weapons for defense, confirming a growing space arms race involving China and Russia.
The US has deployed counterspace weapons including jammers and kinetic systems. China and Russia are reported to have substantial counterspace programs, while India demonstrated ASAT capability in 2019.
Prelims pointers (3)
- S&TKinetic systems and jammers are identified as specific types of US counterspace weapons.
- FactIndia demonstrated its Anti-Satellite (ASAT) capability in 2019.
- S&TSpace situational awareness is the current primary focus of India's space strategy.
Mains angle
Q. Discuss the implications of the escalating space arms race on global security and the importance of international norms for space debris management.
- Orbital debris risk: Kinetic weapons increase the probability of uncontrollable space debris affecting shared satellite infrastructure.
- Strategic instability: Lack of transparency in counterspace capabilities may lead to rapid escalation in orbital conflict.
- Regulatory vacuum: Absence of a binding global treaty on space weaponization complicates international space law enforcement.
Keywords: Space Weaponization · Orbital Debris · Strategic Stability · Space Situational Awareness · Kinetic Systems
Why in news: CEO of Sohar Port and Freezone, Raid Al Rubaiey, invited Indian investments worth $30 billion at a New Delhi event to bolster energy value chains.
Sohar Port and Freezone in Oman can handle 72 million tonnes of cargo annually. It is strategically located near UAE pipelines, providing a critical alternative for Asian refiners following drone attacks on Saudi Arabian pipelines.
Prelims pointers (4)
- PlaceSohar Port is located in Oman.
- FactSohar Port can handle over $30 billion worth of investments.
- FactSohar Port has an annual cargo capacity of 72 million tonnes.
- FactSohar Port is situated near UAE pipelines.
Mains angle
Q. Discuss how strategic maritime infrastructure investments in the Middle East can enhance India's energy security and diversify its supply chain resilience.
- Geopolitical hedge: Reducing reliance on volatile transit routes via diversified maritime hubs
- Energy security: Strengthening value chains for Asian refiners amidst regional pipeline disruptions
Keywords: Energy Security · Maritime Infrastructure · Supply Chain Resilience · Strategic Investment · Trade Corridors
Why in news: Malaysia's Prime Minister Anwar Ibrahim offered to invite Myanmar's military ruler Min Aung Hlaing to Malaysia to expedite the repatriation of Rohingya refugees.
Malaysia currently hosts over 126,000 Rohingya refugees and aims to repatriate at least 1,500 by September 29. Min Aung Hlaing seized power in Myanmar in 2021 and has visited China, India, Russia, and other ASEAN nations.
Prelims pointers (4)
- FactMalaysia hosts over 126,000 Rohingya refugees.
- FactMalaysia's repatriation target is at least 1,500 Rohingya by September 29.
- PostMin Aung Hlaing is the military ruler of Myanmar who seized power in 2021.
- PlaceMalaysia is an ASEAN member state.
Mains angle
Q. Discuss the complexities of managing refugee crises in Southeast Asia while balancing bilateral diplomatic relations with neighboring states.
- Diplomatic dilemma: Balancing humanitarian obligations to refugees against the political interests of neighboring military regimes
- Regional stability: The impact of Myanmar's internal conflict on ASEAN's principle of non-interference
Keywords: Rohingya repatriation · ASEAN diplomacy · humanitarian crisis · bilateral relations · refugee management
Why in news: India's Ministry of External Affairs rejected the Pakistan-China Boundary Joint Commission operationalized in Islamabad, calling Pakistan's attempts to alter the status of Jammu and Kashmir and Ladakh illegal.
The Ministry of External Affairs (MEA) stated that Jammu and Kashmir and Ladakh are integral parts of India. India demanded that Pakistan vacate occupied lands and cease actions aimed at altering the status of these territories.
Prelims pointers (3)
- FactIndia officially rejected the Pakistan-China Boundary Joint Commission operationalized in Islamabad.
- PlaceJammu and Kashmir and Ladakh are identified by India as integral parts of the country.
- FactIndia called Pakistan's attempts to alter the status of these territories 'illegal'.
Mains angle
Q. Discuss the implications of trilateral border dynamics in South Asia on India's strategic autonomy and territorial integrity.
- Territorial integrity: Legal challenges to unilateral status alterations in J&K and Ladakh
- Strategic encirclement: Impact of China-Pakistan boundary cooperation on India's northern frontier
- Diplomatic friction: Conflict between bilateral border management and trilateral regional dynamics
Keywords: territorial integrity · strategic autonomy · bilateral relations · sovereignty · border management
Why in news: India summoned the Pakistani envoy after a Pakistani Navy Hunain-Class corvette aggressively navigated near an Indian warship in international waters 220 km east of Oman.
A Pakistani Navy Hunain-Class corvette approached an Indian warship in international waters 220 km east of Oman. This is the second such incident involving the two navies since June 2011.
Prelims pointers (3)
- FactThe incident occurred 220 km east of Oman in international waters.
- PostThe Pakistani envoy was summoned to the Ministry of External Affairs (MEA) to explain the incident.
- FactThis is the second such naval incident between India and Pakistan since June 2011.
Mains angle
Q. Discuss the implications of maritime proximity and naval maneuvers in international waters on India's maritime security and bilateral relations with Pakistan.
- Maritime security: Risk of unintended escalation in international waters due to aggressive naval maneuvers
- Diplomatic friction: Use of formal summoning as a tool for maritime grievance redressal
Keywords: Maritime Security · Bilateral Relations · International Waters · Naval Diplomacy · Strategic Friction
Why in news: India summoned Pakistan's charge d'Affaires to protest a naval collision in the Arabian Sea, accusing Pakistan of violating a 1991 bilateral agreement.
The collision occurred in international waters in the Arabian Sea between an Indian warship and a Pakistani naval ship. India alleged the incident violated a 1991 agreement requiring ships and submarines to maintain a minimum distance of three nautical miles.
Prelims pointers (3)
- Fact1991 bilateral agreement: Requires naval ships and submarines of India and Pakistan to keep at least three nautical miles apart in international waters
- PlaceArabian Sea: Location of the naval collision between Indian and Pakistani ships
- PostCharge d'Affaires: The diplomatic rank of the Pakistani official summoned by India in New Delhi
Mains angle
Q. Discuss the significance of maritime bilateral agreements in managing naval tensions and ensuring maritime security in the Arabian Sea between India and Pakistan.
- Maritime safety: Risk of escalation in international waters due to lack of clear de-confliction protocols
- Diplomatic friction: Impact of downgraded diplomatic ties on the enforcement of bilateral military agreements
Keywords: maritime security · bilateral agreement · de-confliction · diplomatic protest · international waters
Why in news: External Affairs Minister S. Jaishankar is visiting Bhutan on September 16-17, 2026, to hold bilateral talks and receive a royal audience with the King to strengthen ties.
The visit was initiated at the invitation of Lyonpo D.N. Dhungyel, Bhutan's Minister of Foreign Affairs and External Trade. The visit includes a royal audience with the King of Bhutan and a meeting with the Prime Minister of Bhutan.
Prelims pointers (4)
- PostS. Jaishankar: India's External Affairs Minister
- PostLyonpo D.N. Dhungyel: Bhutan's Minister of Foreign Affairs and External Trade
- PlaceBhutan: A neighboring country of India
- FactVisit dates: September 16-17, 2026
Mains angle
Q. Discuss the significance of India's 'Neighborhood First' policy in maintaining and strengthening bilateral ties with Bhutan in the contemporary geopolitical landscape.
- Strategic depth: Bhutan's role as a buffer and stable partner in the Himalayan region
- Diplomatic continuity: Impact of regular high-level exchanges on long-term bilateral cooperation
- Regional stability: Strengthening ties to counter external influences in the neighborhood
Keywords: Neighborhood First · Bilateral Cooperation · Strategic Partnership · Diplomatic Engagement · Geopolitical Stability
Why in news: The Supreme Court agreed to hear a plea by advocate Ashwini Kumar Upadhyay seeking a legally enforceable, uniform format for political party election manifestos to ensure clarity for voters.
The petitioner argued that manifestos are 'vision documents' and should be statutory and legally enforceable. The plea suggests the Election Commission of India (ECI) should use its plenary constitutional power to frame guidelines and fix liability on parties for failing to fulfill rational promises.
Prelims pointers (4)
- PostChief Justice of India Surya Kant presided over the oral mentioning of the plea.
- BodyElection Commission of India (ECI) is the body urged to adopt a uniform manifesto format.
- FactThe petitioner previously filed a 2022 petition seeking to make parties accountable for essential rational manifesto promises.
- FactThe plea suggests the ECI could seize election symbols or derecognise parties that fail to fulfill promises.
Mains angle
Q. Discuss the necessity of making political manifestos legally enforceable to ensure accountability and transparency in the democratic process.
- Accountability gap: Lack of legal consequences for unfulfilled manifesto promises undermines voter trust.
- Regulatory scope: Debate over whether ECI's plenary powers extend to regulating the content of political declarations.
- Democratic integrity: Balancing the freedom of political expression with the right of voters to clear, structured information.
Keywords: Accountability · Transparency · Plenary Power · Election Commission · Statutory Liability · Democratic Governance
Why in news: India has yet to approve Bangladesh's nomination of Asad Alam Siam as High Commissioner to India, causing diplomatic friction.
Bangladesh nominated Asad Alam Siam, a veteran diplomat and current Foreign Secretary, to replace M. Riaz Hamidullah. Under the Vienna Convention, India's silence on the nomination effectively blocks the appointment.
Prelims pointers (3)
- PostAsad Alam Siam: Nominated by Bangladesh as High Commissioner to India
- Intl. orgVienna Convention: Governs the appointment and status of diplomatic representatives
- FactM. Riaz Hamidullah: Outgoing High Commissioner of Bangladesh to India
Mains angle
Q. Discuss how diplomatic protocols and the mutual recognition of high-level envoys influence the stability of bilateral relations between India and its neighbors.
- Diplomatic friction: Impact of delayed ambassadorial approvals on high-level political engagement
- Institutional continuity: Role of technical working groups in maintaining cooperation despite diplomatic stagnation
Keywords: Diplomatic protocol · Bilateral relations · Vienna Convention · Diplomatic friction · Mutual recognition
Why in news: NCERT formed two committees to develop Economics and English textbooks for Classes 11 and 12 to incorporate Indian knowledge systems.
NCERT formed committees on September 8, 2026, to revise textbooks for senior secondary classes. The committees include members like Saket Bahuguna and Sanjeev Sanyal, with publication deadlines set for late 2026 and early 2027.
Prelims pointers (2)
- FactCommittees formed on September 8, 2026, for Class 11 and 12 textbooks
- FactDeadlines for review and publication set for November 30, 2026, September 30, 2027, and February 28, 2027
Mains angle
Q. Discuss the significance of integrating Indian Knowledge Systems (IKS) into the national school curriculum and the potential implications for students' holistic development.
- Pedagogical shift: Balancing traditional Indian knowledge systems with modern global academic standards
- Curriculum inclusivity: Ensuring diverse regional perspectives are represented in national textbook revisions
Keywords: Indian Knowledge Systems · Pedagogical Reform · Curriculum Development · Educational Policy
GS3 · Economy · S&T · Environment · Security · 14
GS3Economy › Monetary policy, RBI & bankingPrelims + Mains Why in news: Advocate Anjan Datta filed a petition in the Supreme Court challenging the government's decision to impose a 0.4% charge on merchants for UPI transactions exceeding ₹2,000 starting October 15.
The petition challenges the amended Section 10A of the Payment and Settlement Systems Act, 2007. The petitioner alleges a lack of transparency as MDR rates and thresholds were set via press releases instead of gazette notifications.
Prelims pointers (4)
- Act / BillPayment and Settlement Systems Act, 2007
- Fact0.4% charge imposed on merchants for UPI transactions over ₹2,000
- FactCharge implementation date: October 15
- BodySupreme Court of India
Mains angle
Q. Critically examine the constitutional and economic implications of implementing Merchant Discount Rate (MDR) structures on digital payment systems like UPI.
- Procedural lapse: Use of press releases instead of gazette notifications for regulatory changes
- Small business impact: Potential erosion of profit margins for micro-merchants due to transaction costs
- Transparency deficit: Lack of public consultation in determining MDR thresholds and rates
Keywords: Merchant Discount Rate · Digital Public Infrastructure · Constitutional Validity · Regulatory Transparency · Payment Systems
GS3Economy › Employment & inclusive growthPrelims + Mains Why in news: The Union Cabinet approved raising the EPFO wage ceiling from ₹15,000 to ₹25,000 to expand social security coverage to more employees.
The wage ceiling hike is effective from September 17, 2026. The move covers over 51 lakh additional employees and will increase the annual government outgo by ₹11,339 crore.
Prelims pointers (4)
- FactEPFO wage ceiling increased from ₹15,000 to ₹25,000
- FactThe hike covers over 51 lakh additional employees
- FactEmployer contributions will rise by ₹600 per employee
- FactAnnual government outgo will increase by ₹11,339 crore
Mains angle
Q. Discuss the significance of expanding the EPFO wage ceiling in achieving universal social security for India's workforce.
- Fiscal pressure: Balancing increased government outgo of ₹11,339 crore with the need for expanded social safety nets
- Compliance burden: Challenges for employers in managing increased contributions and software requirements for new subscribers
Keywords: Social Security · Formalization of Labour · Fiscal Outlay · Universal Coverage · Employee Welfare
The Hindu ↗+1 more on this story GS3Economy › Monetary policy, RBI & bankingPrelims + Mains Why in news: NPCI announced that the government will introduce a 0.4% Merchant Discount Rate (MDR) on Person-to-Merchant (P2M) UPI transactions exceeding ₹2,000 starting October 15.
The NPCI announced a 0.4% MDR for P2M UPI transactions above ₹2,000. Consumers will not be charged for these payments, and small merchants under the P2PM framework remain exempt from the fee.
Prelims pointers (3)
- FactMDR rate for P2M UPI transactions above ₹2,000 is set at 0.4%.
- BodyNPCI (National Payments Corporation of India) is the body announcing the transaction fee changes.
- FactSmall merchants under the P2PM framework are exempt from the new MDR.
Mains angle
Q. Discuss the implications of introducing Merchant Discount Rates (MDR) on high-value UPI transactions for the growth of the digital payment ecosystem in India.
- Revenue model sustainability: Balancing free consumer access with the need for infrastructure cost recovery by payment providers.
- Market distortion risks: Potential impact on low-margin service sectors like broking and investment platforms.
- Digital inclusion trade-offs: Ensuring small merchants remain exempt to prevent high transaction costs from hindering micro-enterprises.
Keywords: Digital Public Infrastructure · Merchant Discount Rate · Payment Interoperability · Transaction Costs · Financial Inclusion
GS3Internal Security › Terrorism & insurgency (J&K, North-East)Prelims + Mains Why in news: Union Home Minister Amit Shah declared the Pakistan-based Shahzad Bhatti Network (SBN) a terrorist organisation under the UAPA for smuggling arms, narcotics, and inciting terrorism.
The Shahzad Bhatti Network (SBN) is a Pakistan-based group targeted for smuggling arms and narcotics and publishing hateful digital content. It has been listed as the 46th terrorist organisation under India's Unlawful Activities (Prevention) Act.
Prelims pointers (4)
- Act / BillUAPA: Unlawful Activities (Prevention) Act used to designate terrorist organisations.
- FactShahzad Bhatti Network (SBN) is the 46th terrorist organisation listed under UAPA.
- FactSection 35(1)(a) of the UAPA was invoked for the gazette notification.
- PostAmit Shah serves as the Union Home Minister of India.
Mains angle
Q. Examine the role of the Unlawful Activities (Prevention) Act in countering cross-border terrorism and internal security threats in India.
- Legal framework: Balancing the use of UAPA powers with constitutional protections against arbitrary detention
- Cross-border nexus: Addressing the dual threat of narcotics smuggling and radicalization via digital content
- Intelligence coordination: Challenges in tracking Pakistan-based networks and their digital footprints
Keywords: Unlawful Activities (Prevention) Act · Cross-border terrorism · Internal security · Narcotics smuggling · Digital radicalization
GS3Economy › Growth, inflation & macro indicatorsPrelims Why in news: The RBI's dollar-mobilisation programme contributed to a $27.7 billion capital account surplus in July, reversing the first quarter deficit.
India's capital account surplus for April-July reached $23.9 billion, an increase from $11.4 billion in the previous year. While FDI inflows were $7.3 billion and portfolio investments were $4.1 billion, merchandise trade deficit rose to $117.8 billion for the first four months of the fiscal year.
Prelims pointers (5)
- FactJuly capital account surplus: $27.7 billion
- FactApril-July capital account surplus: $23.9 billion
- FactJuly FDI inflows: $7.3 billion
- FactJuly portfolio investments: $4.1 billion
- FactFirst four months merchandise trade deficit: $117.8 billion
Mains angle
Q. Analyze the impact of the RBI's dollar-mobilisation programme on India's Balance of Payments and its role in managing external shocks.
- Monetary intervention: RBI's role in stabilizing forex reserves against volatile capital flows
- Trade-Capital mismatch: Rising merchandise trade deficit vs. capital account surpluses
- Investment dynamics: Shift in portfolio investment trends vs. external commercial borrowing outflows
Keywords: Balance of Payments · Capital Account · Foreign Direct Investment · Portfolio Investment · Merchandise Trade Deficit · Dollar Mobilisation
GS3Economy › Industry, investment & MSMEsPrelims + Mains Why in news: Prime Minister Narendra Modi urged CEOs of major tech firms to participate in India's semiconductor growth and collaborate on AI and quantum computing initiatives.
The roundtable included representatives from SEMI, Micron, and Infineon. The discussion focused on leveraging India's talent pool and infrastructure to advance semiconductor capabilities under the ISM 2.0 framework.
Prelims pointers (3)
- BodySEMI: An industry association representing the global semiconductor manufacturing industry
- FactISM 2.0: The framework under which CEOs committed to furthering India's semiconductor capabilities
- PostNarendra Modi: Prime Minister of India
Mains angle
Q. Discuss the strategic importance of developing a robust semiconductor ecosystem for India's technological sovereignty and economic growth.
- Infrastructure bottleneck: Requirement for high-purity water and stable power grids for fabrication units
- Talent pipeline: Bridging the gap between academic engineering and specialized VLSI design skills
- Global supply chain: Reducing import reliance on critical electronic components through domestic manufacturing
Keywords: Technological Sovereignty · Semiconductor Ecosystem · Strategic Collaboration · Infrastructure Development · Digital Infrastructure
Why in news: Researchers at the University of Queensland and University of New South Wales developed 'Paraborg' cyborg cockroaches to navigate rubble and administer medication during disaster responses.
The Paraborg cyborg cockroaches are inspired by giant burrowing cockroaches and are equipped with cameras or automatic injection mechanisms. They are controlled via electrodes and have demonstrated up to a 95% success rate in administering injections at close range.
Prelims pointers (3)
- S&TParaborg: A cyborg cockroach developed by UQ and UNSW for disaster response
- FactParaborg cockroaches can perform tasks like locating targets and administering injections with up to 95% success at close range
- S&TControl mechanism: The cyborg cockroaches are controlled via electrodes
Mains angle
Q. Discuss the potential of bio-hybrid robotics and cyborg insects in enhancing search and rescue operations during large-scale disasters.
- Technical bottleneck: Complexity of navigating unpredictable debris and maintaining electrode connectivity in extreme environments
- Ethical considerations: Regulatory frameworks for deploying bio-hybrid organisms in public safety and medical intervention
- Operational feasibility: Transitioning from controlled laboratory success to unpredictable field environments in disaster zones
Keywords: bio-hybrid robotics · disaster management · biotechnology · search and rescue · cyborg technology
GS3Economy › Capital markets & SEBIPrelims Why in news: The government proposed a 0.02% Merchant Discount Rate (MDR) on UPI payments linked to capital-market transactions to balance payment ecosystem costs.
The proposed MDR for capital-market transactions is capped at Rs 300 per transaction. Small merchants receiving up to Rs 1 lakh monthly through UPI QR payments will continue to operate under zero MDR.
Prelims pointers (4)
- FactProposed MDR on UPI payments for capital-market transactions is 0.02%.
- FactMDR for capital-market transactions is capped at Rs 300 per transaction.
- FactSmall merchants receiving up to Rs 1 lakh a month through UPI QR payments remain under zero MDR.
- BodySensex and Nifty are the primary equity benchmarks of the Indian stock market.
Mains angle
Q. Discuss the implications of introducing Merchant Discount Rates (MDR) on UPI payments for capital market transactions on retail investor participation and brokerage business models.
- Brokerage margin pressure: Potential impact on discount and zero-brokerage platforms operating on thin margins.
- Retail investor impact: Minimal direct cost increase due to the Rs 300 transaction cap.
- Payment ecosystem sustainability: Balancing zero-cost infrastructure with the need for sustainable payment processing fees.
Keywords: Merchant Discount Rate · UPI · Capital Markets · Retail Investors · Brokerage Margins · Digital Infrastructure
GS3Science & Technology › Biotechnology & health researchPrelims Why in news: Scientists from the Central Marine Fisheries Research Institute (CMFRI) described a new conger eel species, *Ariosoma cmfriense*, discovered in deep waters off the coast of Kollam, Keralam.
The new species, *Ariosoma cmfriense*, was identified at a depth of 300 meters in January 2026. The discovery was made by researchers led by Rekha J. Nair as part of the Deep Ocean Mission.
Prelims pointers (5)
- EnvironmentAriosoma cmfriense: A newly described species of conger eel.
- PlaceKollam, Keralam: Location of the deep-water discovery.
- Fact300 m: The depth at which the specimen was identified.
- BodyCMFRI: Central Marine Fisheries Research Institute, the body responsible for the discovery.
- S&TDeep Ocean Mission: The initiative under which the discovery was made.
Mains angle
Q. Discuss the significance of deep-sea exploration in India's biodiversity conservation and blue economy goals.
- Biodiversity mapping: Identifying endemic deep-sea species to establish marine conservation zones
- Blue Economy integration: Leveraging deep-sea biological resources for sustainable economic growth
- Technological dependency: Requirement for advanced sub-surface exploration tech to monitor deep-sea ecosystems
Keywords: Biodiversity · Deep Ocean Mission · Marine Biology · Blue Economy · Endemic Species
GS3Science & Technology › IT, AI, semiconductors & computingPrelims Why in news: Kerala Minister for General Education N. Samsudheen inaugurated the Mukulam AI-based portal to provide free AI training for public school students preparing for competitive exams.
The Mukulam AI-based portal provides digital materials in 10 subjects across various streams for higher secondary and vocational higher secondary students. It is part of a 100-day programme aimed at identifying individual learning needs for exams like NEET, JEE, and CUET.
Prelims pointers (4)
- BodyMukulam: AI-based portal launched by the Kerala government for student training
- FactThe portal provides digital materials in 10 subjects across different streams
- FactThe initiative is part of a 100-day programme for public school students
- PlaceKerala: State government launching the portal for higher secondary and vocational students
Mains angle
Q. Discuss how AI-driven personalized learning portals can bridge the educational divide and enhance student outcomes in competitive examinations in India.
- Pedagogical shift: Transition from standardized classroom teaching to AI-driven personalized learning paths
- Digital divide: Risk of unequal access to high-speed internet and devices in rural Kerala
- Data privacy: Concerns regarding the collection and processing of student learning data by AI systems
Keywords: Personalized Learning · Digital Inclusion · EdTech · Skill Development · AI in Education
GS3Science & Technology › IT, AI, semiconductors & computingPrelims Why in news: OpenAI endorsed several bipartisan US bills, including the Web of Biological Data Act, to prevent AI from being used to accelerate biological threats.
OpenAI supported the Web of Biological Data Act, AI-Ready Bio-Data Standards Act, and Scale Biology Act. They also backed a provision in the FRONTIER Act requiring independent evaluators to assess AI safety.
Prelims pointers (4)
- S&TWeb of Biological Data Act: Proposed US legislation to curb AI-driven biological threats
- S&TAI-Ready Bio-Data Standards Act: Legislation aimed at standardizing bio-data safety
- S&TFRONTIER Act: Includes a provision for independent evaluators to assess AI safety
- S&TOpenAI: The company behind ChatGPT that endorsed these safety measures
Mains angle
Q. Discuss the dual-use dilemma of Artificial Intelligence in biotechnology and suggest a framework for international safety standards to mitigate biological risks.
- Dual-use risk: Balancing rapid AI-driven drug discovery with the risk of synthetic pathogen creation
- Regulatory oversight: Challenges in establishing independent, standardized safety evaluation protocols for frontier models
Keywords: Dual-use dilemma · Biosecurity · Frontier models · Regulatory framework · AI safety
GS3Economy › Monetary policy, RBI & bankingPrelims Why in news: The one-year overnight index swap (OIS) rate in India rose to 6.11%, signaling potential interest rate hikes by the RBI to combat inflation and rising oil prices.
The one-year OIS rate reached 6.11% on Tuesday, the highest since early June. Market analysis suggests a likely rate hike in October, with a 90% probability of a Fed hike on Wednesday.
Prelims pointers (3)
- FactOne-year overnight index swap (OIS) rate in India: 6.11% as of September 2026
- FactMarket probability of a Fed hike: over 90%
- FactProjected rate hikes: At least three 25-bps hikes over the next year
Mains angle
Q. Discuss the role of Overnight Index Swaps (OIS) as a tool for gauging monetary policy expectations and their significance in managing inflation and exchange rate volatility.
- Monetary transmission: Impact of OIS-driven expectations on commercial lending rates and liquidity
- External pressure: Correlation between Fed interest rate decisions and domestic inflation-targeting measures
- Inflationary drivers: Impact of global oil price volatility on the RBI's repo rate trajectory
Keywords: Monetary Policy · Overnight Index Swap · Inflation Targeting · Repo Rate · Liquidity Management
GS3Economy › Capital markets & SEBIPrelims + Mains Why in news: NSE proposed exploring the 'permitted to trade' route to trade its shares on the BSE because SEBI regulations prohibit a stock exchange from listing its own securities on its own platform.
NSE's IPO price band is set at Rs 1,700-1,785 per share. Under Regulation 45(1) of the SEBI Stock Exchanges and Clearing Corporations Regulations, 2018, a recognized stock exchange can only list its securities on another recognized stock exchange.
Prelims pointers (5)
- FactNSE IPO price band: Rs 1,700 to Rs 1,785 per share
- Act / BillSEBI Stock Exchanges and Clearing Corporations Regulations, 2018: Regulation 45(1) mandates listing on a different exchange
- BodyNSE: National Stock Exchange of India
- BodyBSE: Bombay Stock Exchange
- FactNSE reduced its stake sale from 6.2% to 5.11% due to shareholder reluctance
Mains angle
Q. Discuss the regulatory rationale behind prohibiting stock exchanges from listing their own securities on their own platforms in India.
- Regulatory integrity: Preventing self-regulation to ensure impartial oversight and market transparency
- Market liquidity: Balancing listing restrictions with the need for wider investor access via 'permitted to trade' routes
Keywords: Capital Markets · Regulatory Framework · Self-Regulation · Market Integrity · Listing Requirements
GS3Economy › Fiscal policy, budget & taxation (GST)Prelims + Mains Why in news: The CAG highlighted a 451% growth in government funding to the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) between 2013-14 and 2024-25.
The state government has fully absorbed TNPDCL's losses since 2021-22, averaging an annual assistance of ₹18,130 crore.
Prelims pointers (5)
- FactTNPDCL received ₹2.55 lakh crore from the government between 2013-14 and 2024-25.
- FactAverage annual assistance to TNPDCL for loss absorption since 2021-22 is ₹18,130 crore.
- FactPlanned tariff subsidy for the current year is ₹18,860 crore.
- FactNearly ₹9,893 crore is reserved for a free electricity scheme up to 200 units.
- BodyCAG: Comptroller and Auditor-General of India
Mains angle
Q. Examine the fiscal implications of state-funded subsidies on public utility corporations and their impact on state fiscal health.
- Fiscal strain: High recurring subsidies for power distribution impacting state capital expenditure
- Cross-subsidization issues: Impact of free electricity schemes on the financial viability of state-run utilities
- Audit oversight: Role of CAG in identifying inefficiencies in public-sector utility funding
Keywords: Fiscal deficit · Cross-subsidization · Public utility · Audit report · Subsidy regime
Notes are generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.