Current Affairs For Examinations (CAFE) 2026

May 12, 2026

Explore the latest current affairs of 2026 with daily updates covering important developments from India and across the world. This section provides concise and reliable news on national events, international relations, economy, environment, science and technology, security, and government schemes. Carefully curated for UPSC, SSC, Banking, State PCS, and other competitive exam aspirants, these updates highlight key facts, policy changes, reports, and global developments that are frequently asked in exams. Each topic is explained in a clear and easy-to-understand format, helping readers quickly grasp the significance and exam relevance. From major government initiatives and economic reforms to environmental issues and international agreements, our current affairs coverage ensures you stay informed and exam-ready with accurate, timely, and structured information every day.

National News

1. 11 Years of Jan Suraksha Schemes

Source: News on Air

Summary

The three flagship Jan Suraksha Schemes — Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY) — completed 11 years on 9 May 2026.

Launched on 9 May 2015, these schemes form India’s universal social security framework for the unorganised sector and vulnerable populations.

They offer:

• Low-cost life insurance

• Accidental insurance

• Old-age pension

Cumulatively, they have crossed 94.56 crore enrolments, with PMJJBY alone settling claims worth over ₹21,512.50 crore for more than 10.7 lakh bereaved families.

Background & Concept

Why the schemes were launched: Before 2015, a large section of India’s working population — especially daily wage earners, farmers, and informal workers — had no access to life cover, accident protection, or retirement income. Private insurance was unaffordable, and government welfare was fragmented. Launched on 9 May 2015 from Kolkata, the Jan Suraksha trio was designed as a “minimum risk cover for maximum reach” model, riding on the Jan Dhan–Aadhaar–Mobile (JAM) trinity to enable seamless auto-debit of premiums.

The three pillars:

• PMJJBY (Life Insurance): A one-year renewable life cover of ₹2 lakh for death due to any reason. Open to bank/post office account holders aged 18–50. Premium: ₹436 per year via auto-debit.
• PMSBY (Accidental Insurance): Provides ₹2 lakh for accidental death or total disability and ₹1 lakh for partial disability. Open to account holders aged 18–70. Premium: just ₹20 per year.
• APY (Pension): A guaranteed monthly pension of ₹1,000 to ₹5,000 after age 60 for unorganised-sector workers. Open to non-income-tax-paying account holders aged 18–40. Pension continues to spouse, with corpus returned to nominee.

Key achievements at 11 years:

• 94.56 crore+ total enrolments across the three schemes
• PMSBY: 58.09 crore+ enrolments — among the world’s largest accidental insurance programs
• PMJJBY: ₹21,512.50 crore claims settled for 10.7 lakh+ families
• APY: 9.04 crore+ subscribers; women form ~49% of enrolments
• 19.30 crore+ PMJDY holders covered under PMSBY

Keywords & Definitions

Jan Suraksha: A Hindi term meaning “People’s Security.” Refers to the umbrella of three social security schemes (PMJJBY, PMSBY, APY) aimed at providing affordable protection to every Indian.

Social Security: A government-backed system that protects individuals against income loss arising from old age, death, disability, accident, or unemployment.

Unorganised Sector: The segment of the workforce that is not covered by formal employment laws or institutional benefits like provident fund or gratuity. It includes farmers, daily wage workers, street vendors, and domestic helpers — about 90% of India’s labour force.

Life Insurance: A contract where the insurer pays a fixed sum to the nominee on the death of the insured, regardless of the cause (natural or accidental). PMJJBY is an example.

Accidental Insurance: Insurance that pays compensation only if death or disability results from an accident, not natural causes. PMSBY is an example.

Pension Scheme: A long-term savings arrangement where contributions during working years provide regular post-retirement income. APY is a guaranteed defined-benefit pension scheme.

Sum Assured: The fixed amount the insurance company promises to pay the nominee on the occurrence of the insured event (e.g., ₹2 lakh under PMJJBY).

Premium: The periodic amount paid by the subscriber to keep the insurance policy active (e.g., ₹436 per annum for PMJJBY, ₹20 per annum for PMSBY).

Auto-Debit: A banking facility where the premium amount is automatically deducted from the subscriber’s account on a fixed date, ensuring uninterrupted coverage.

JAM Trinity: The integrated framework of Jan Dhan accounts, Aadhaar identification, and Mobile connectivity that enables direct, leak-proof delivery of government benefits.

PMJDY (Pradhan Mantri Jan Dhan Yojana): India’s flagship financial inclusion programme launched in 2014 to provide zero-balance bank accounts to every household. It forms the backbone for Jan Suraksha enrolment.

PFRDA (Pension Fund Regulatory and Development Authority): The statutory regulator under the Ministry of Finance that administers and supervises the Atal Pension Yojana.

Department of Financial Services (DFS): The nodal department under the Ministry of Finance responsible for designing, monitoring, and implementing the Jan Suraksha Schemes.

Persistence (in insurance): The ability of a subscriber to maintain continuous policy coverage by paying premiums on time without lapses.

Financial Inclusion: The process of ensuring that every individual — especially the poor and marginalised — has access to affordable banking, credit, insurance, and pension services.

Question Section (MCQs)

Q1. Consider the following statements regarding the Jan Suraksha Schemes:

1. They were launched on 9 May 2015 by the Prime Minister of India.
2. PMJJBY provides life insurance cover only in case of accidental death.
3. The schemes are primarily aimed at the unorganised sector and vulnerable populations.

Which of the statements given above is/are correct? (a) 1 and 2 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3

Q2. With reference to the Pradhan Mantri Suraksha Bima Yojana (PMSBY), which of the following is correct?

(a) It is a life insurance scheme covering all causes of death

(b) Eligibility is 18 to 50 years with a premium of ₹436 per annum

(c) It provides ₹2 lakh for accidental death/total disability and ₹1 lakh for partial disability

(d) It is open only to Jan Dhan account holders

Q3. Which of the following is not a feature of the Atal Pension Yojana (APY)?

(a) Open to bank account holders aged 18 to 40 years

(b) Provides a guaranteed monthly pension of ₹1,000 to ₹5,000 after age 60

(c) Income tax payers are eligible to subscribe

(d) On the death of the subscriber and spouse, the corpus is returned to the nominee

Q4. The Jan Suraksha Schemes rely heavily on the JAM trinity for delivery. JAM stands for:

(a) Jan Aushadhi – Aadhaar – Mobile

(b) Jan Dhan – Aadhaar – Mobile

(c) Janani – Aadhaar – MUDRA

(d) Jan Dhan – Ayushman – MUDRA

Q5. Consider the following statements about the performance of Jan Suraksha Schemes:

1. PMSBY has crossed over 58 crore enrolments, making it one of the largest accidental insurance programmes in the world.
2. Women constitute approximately 49% of total enrolments under the Atal Pension Yojana.
3. PMJJBY has settled claims worth over ₹21,512 crore.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q6. Which Ministry/Department is the nodal authority for the implementation of the Jan Suraksha Schemes?

(a) Ministry of Labour and Employment

(b) Department of Financial Services, Ministry of Finance

(c) Ministry of Rural Development

(d) Ministry of Social Justice and Empowerment

Answer Key with Explanations

Q1 → (b) 1 and 3 only Statements 1 and 3 are correct. Statement 2 is wrong because PMJJBY covers death due to any reason (natural or accidental), not just accidental death. Accidental death is covered under PMSBY.

Q2 → (c) PMSBY is an accidental insurance scheme offering ₹2 lakh (accidental death/total disability) and ₹1 lakh (partial disability). Eligibility is 18–70 years with a premium of only ₹20 per annum. It is open to all bank account holders, not just Jan Dhan holders.

Q3 → (c) APY is not open to income tax payers. The other features — age 18–40, pension of ₹1,000–₹5,000, and return of corpus to nominee after the subscriber and spouse — are all correct features of APY.

Q4 → (b) Jan Dhan – Aadhaar – Mobile The JAM trinity refers to Jan Dhan accounts, Aadhaar identification, and Mobile connectivity, which together enable seamless auto-debit of premiums and direct credit of claims.

Q5 → (d) 1, 2 and 3 All three statements match the official 11-year performance data: PMSBY has 58.09 crore+ enrolments, women form ~49% of APY subscribers, and PMJJBY claim settlements exceed ₹21,512.50 crore.

Q6 → (b) Department of Financial Services, Ministry of Finance The Jan Suraksha Schemes are implemented by the Department of Financial Services (DFS) under the Ministry of Finance, in coordination with public sector insurance companies (LIC for PMJJBY, general insurers for PMSBY) and PFRDA (for APY).

2. Prevalence of Fake Currency in India

Source: TH

Summary

• Nearly a decade after the 2016 demonetisation, the latest ‘Crime in India’ Report 2024 reveals that fake currency remains a major challenge for India’s internal security.
• Over ₹54.61 crore in counterfeit notes were seized this year alone, while cumulative seizures since 2017 have crossed ₹638 crore.
• Despite the digital payment push, Currency in Circulation (CiC) has surged by 137% to ₹42.12 lakh crore (May 2026), giving counterfeiters a vast cash economy to exploit.
• Gujarat alone accounts for more than 50% of total seizures, while new ₹500 notes are now being faked four times more than in 2016.

Background & Concept

What is Fake Currency?

Fake currency, formally called Counterfeit Indian Currency Notes (CICN), refers to the illegal imitation of legal tender produced without the sanction of the Reserve Bank of India (RBI).

These notes mimic the security features of genuine banknotes and are used to:

• Destabilise the economy
• Fund organised crime
• Finance cross-border terrorism

Key Data & Stats:

• Total seizures since 2017: ₹638 crore
• Peak year: 2022 with ₹382.6 crore seized
• 2024 seizures: ₹54.61 crore
• Gujarat’s share: ₹355.72 crore (over 50% of national total, 2017–2024)
• CiC growth: ₹17.74 lakh crore (Nov 2016) → ₹42.12 lakh crore (May 2026)
• ₹500 note: Most counterfeited denomination, with seizures 4× higher than in 2016

Factors Leading to Fake Currency:

1. Replication of Security Features — Advanced printing technology mimics the new Mahatma Gandhi (New) Series.

2. Cross-Border Smuggling — High-quality “Super Notes” enter via porous borders and the North-East’s Three Frontiers.

3. High Cash Dependency — Despite UPI, India remains cash-intensive; CiC has more than doubled since 2016.

4. Sophisticated Distribution Networks — Organised gangs exploit MSMEs and rural markets where manual checking is rare.

Implications:

• Economic Instability — fake notes inflate money supply without real output
• Funding Terrorism — CICN seizures often linked to terror modules in border states
• Loss of Public Trust — undermines confidence in banking and currency
• Fiscal Burden — RBI spends heavily on upgrading and replacing notes (e.g., ₹2,000 note withdrawal in 2023)

Challenges in Countering Fake Currency:

• Technological race — counterfeiters quickly copy new features
• Fragmented enforcement — data silos between state police, NCRB, and NIA
• Low rural awareness — most cannot distinguish genuine security threads from fakes
• Digital limitations — high-value transactions still rely on cash

Way Ahead:

• Periodic security upgrades by RBI (polymer notes, advanced holographic threads)
• Strengthen inter-agency coordination through the National Functional Analysis Centre
• Launch “Know Your Note” awareness campaigns in rural/border areas
• Incentivise digital payments for MSMEs
• Establish fast-track courts for CICN cases

Keywords & Definitions

• Counterfeit Indian Currency Notes (CICN): Illegally produced imitations of Indian banknotes, made without RBI authorisation, designed to pass off as genuine legal tender.
• Legal Tender: Currency officially recognised by the government for the settlement of debts and transactions. In India, only RBI-issued notes and coins are legal tender.
• Reserve Bank of India (RBI): India’s central bank, established in 1935, which has the sole authority to issue, regulate, and withdraw banknotes (except ₹1 notes, issued by the Ministry of Finance).
• Demonetisation: The act of stripping a currency unit of its status as legal tender. India demonetised ₹500 and ₹1,000 notes on 8 November 2016.
• Currency in Circulation (CiC): The total value of banknotes and coins held by the public and banks at a given time — a measure of cash dependency in the economy.
• Mahatma Gandhi (New) Series: The current series of Indian banknotes introduced from 2016 onwards, featuring upgraded security features and new designs.
• Super Notes: Extremely high-quality counterfeit notes, often produced abroad using sophisticated technology, that closely replicate genuine currency.
• Security Features: Anti-counterfeiting elements built into banknotes, such as watermarks, security threads, intaglio printing, micro-lettering, and colour-shifting ink.
• Crime in India Report: An annual statistical publication by the National Crime Records Bureau (NCRB) under the Ministry of Home Affairs, documenting crime data including CICN seizures.
• NCRB (National Crime Records Bureau): A central agency under the Ministry of Home Affairs that collects, analyses, and disseminates crime statistics in India.
• NIA (National Investigation Agency): India’s central counter-terrorism law-enforcement agency, which investigates terror-related offences including CICN circulation.
• Three Frontiers: A geographic term for the tri-junction border areas in India’s North-East (with Myanmar, Bangladesh, and Bhutan) often used as smuggling routes.
• UPI (Unified Payments Interface): A real-time digital payments system developed by NPCI that enables instant inter-bank transactions via mobile phones.
• MSMEs (Micro, Small and Medium Enterprises): Small businesses that form the backbone of India’s economy but often lack tools like UV detectors, making them vulnerable to fake notes.
• Polymer Notes: Banknotes made from plastic polymer instead of cotton-paper, considered more secure and durable. Used by countries like Australia, UK, and Canada.
• Fast-Track Courts: Special courts established to expedite trials in specified categories of cases (e.g., terror financing, CICN) to ensure quick justice.

Question Section (MCQs)

Q1. With reference to fake currency in India, consider the following statements:

1. Counterfeit Indian Currency Notes (CICN) are produced without the sanction of the Reserve Bank of India.
2. The ₹500 note is currently the most counterfeited denomination in India.
3. Currency in Circulation has decreased since demonetisation in 2016.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q2. Which Indian state has accounted for more than 50% of total fake currency seizures between 2017 and 2024?

(a) Maharashtra

(b) West Bengal

(c) Gujarat

(d) Karnataka

Q3. The ‘Crime in India’ Report is published annually by which of the following agencies?

(a) Reserve Bank of India (RBI)

(b) National Investigation Agency (NIA)

(c) Central Bureau of Investigation (CBI)

(d) National Crime Records Bureau (NCRB)

Q4. Which of the following is not a built-in security feature of Indian banknotes?

(a) Watermark

(b) Security thread

(c) Colour-shifting ink

(d) Magnetic strip

Q5. Consider the following statements regarding the implications of fake currency:

1. It can lead to artificial inflation by increasing money supply without a rise in goods or services.
2. It is often used to fund cross-border terrorism and organised crime.
3. It strengthens public trust in the formal banking system.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q6. “Super Notes,” frequently mentioned in the context of CICN, refer to:

(a) High-denomination notes printed by the RBI for inter-bank settlement

(b) Extremely high-quality counterfeit notes, often produced abroad

(c) Special commemorative notes issued by the RBI

(d) Digital notes used in CBDC pilot projects

Q7. Which of the following measures has been suggested to counter the menace of fake currency in India?

1. Introduction of polymer-based banknotes by the RBI.
2. Establishment of fast-track courts for CICN-related cases.
3. Banning all cash transactions above ₹500.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer Key with Explanations

Q1 → (a) 1 and 2 only

Statements 1 and 2 are correct. Statement 3 is wrong — Currency in Circulation has actually surged by 137%, from ₹17.74 lakh crore in November 2016 to ₹42.12 lakh crore in May 2026.

Q2 → (c) Gujarat

Gujarat is the primary hotspot, accounting for ₹355.72 crore — more than 50% of India’s total fake currency seizures between 2017 and 2024.

Q3 → (d) National Crime Records Bureau (NCRB)

The ‘Crime in India’ Report is an annual publication of the NCRB, which functions under the Ministry of Home Affairs and compiles nationwide crime statistics, including CICN data.

Q4 → (d) Magnetic strip

Indian banknotes use watermarks, security threads, intaglio printing, micro-lettering, and colour-shifting ink, but do not use magnetic strips (which are used in credit/debit cards, not banknotes).

Q5 → (a) 1 and 2 only

Statements 1 and 2 are correct. Statement 3 is wrong — fake currency actually erodes public trust in the formal banking and currency system, not strengthens it.

Q6 → (b) Extremely high-quality counterfeit notes, often produced abroad

“Super Notes” are sophisticated, high-quality fakes — often smuggled in through the Three Frontiers of the North-East — that closely replicate the security features of genuine Indian notes.

Q7 → (a) 1 and 2 only

Polymer notes (1) and fast-track CICN courts (2) are recommended measures. Banning all cash transactions above ₹500 (3) is not a proposed measure — instead, the focus is on incentivising digital payments and strengthening note security.

3. India Ranks 3rd Globally in Installed Renewable Energy Capacity

Summary

• India has emerged as the world’s 3rd largest country in installed renewable energy capacity, reflecting rapid growth in solar and wind power generation.
• A recent Morgan Stanley report highlighted that India’s renewable energy transition is accelerating, though dependence on imported upstream solar components remains a major challenge.
• India’s non-fossil fuel energy capacity has crossed 262.7 GW, accounting for over 50% of total installed power capacity.
• Domestic solar module manufacturing has nearly doubled from 38 GW (2024) to 74 GW (2025), while solar cell capacity rose from 9 GW to 25 GW.
• However, 60–80% of upstream components like wafers and polysilicon are still sourced from China.

Background & Concept

What is Renewable Energy?

Renewable energy refers to energy derived from natural sources that are replenished faster than they are consumed, such as sunlight, wind, water, biomass, and geothermal heat.

These sources are key to achieving energy security, decarbonisation, and climate goals under the Paris Agreement.

India’s Global Position:

• India is now the 3rd largest in installed renewable energy capacity, behind China and the United States.
• The country leads in commitments under the Panchamrit pledge made at COP26 (Glasgow, 2021).
• India has pledged to achieve 500 GW of non-fossil fuel capacity by 2030 and Net Zero by 2070.

Key Features:

1. Renewable Capacity Growth

• Non-fossil fuel capacity has crossed 262.7 GW
• Accounts for over 50% of total installed power capacity

2. Solar Manufacturing Expansion

• Solar module capacity: 38 GW (2024) → 74 GW (2025)
• Solar cell capacity: 9 GW → 25 GW
• Driven by PLI (Production Linked Incentive) Scheme for high-efficiency solar PV modules

3. Dependence on Imports

• 60–80% of wafers and polysilicon sourced from China
• Creates supply chain vulnerabilities and threatens Atmanirbhar Bharat goals

4. Energy Transition Focus

• Solar and wind form the bulk of new RE additions
• Supported by National Green Hydrogen Mission and PM-KUSUM scheme

Government Initiatives:

• National Solar Mission (under NAPCC)
• PM-KUSUM — solarisation of agriculture pumps
• PM Surya Ghar: Muft Bijli Yojana — rooftop solar for households
• PLI Scheme for Solar PV Modules
• Green Energy Corridor for renewable power transmission
• National Green Hydrogen Mission (2023)

Challenges:

• Heavy import dependence on China for polysilicon, wafers, and cells
• Grid integration issues due to intermittent nature of solar/wind
• Land acquisition bottlenecks for large solar parks
• Storage limitations — high cost of battery energy storage systems (BESS)
• Financial stress on DISCOMs affecting payment to renewable producers

Way Ahead:

• Accelerate domestic polysilicon and wafer manufacturing under PLI 2.0
• Expand Battery Energy Storage Systems (BESS) to ensure grid stability
• Boost green hydrogen production for hard-to-abate sectors
• Promote offshore wind energy along Tamil Nadu and Gujarat coasts
• Strengthen distributed renewable energy (DRE) in rural areas

Keywords & Definitions

Renewable Energy (RE): Energy obtained from natural, replenishable sources such as sunlight, wind, water, biomass, and geothermal heat — as opposed to finite fossil fuels.

Installed Capacity: The maximum power output an energy plant or system is designed to produce, measured in megawatts (MW) or gigawatts (GW).

Non-Fossil Fuel Capacity: Energy generated from sources other than coal, oil, and natural gas — includes solar, wind, hydro, nuclear, and biomass.

Solar Module: A panel made of multiple solar cells that converts sunlight into electricity through the photovoltaic (PV) effect.

Solar Cell: The smallest unit in a solar module that directly converts sunlight into electricity.

Polysilicon: A highly purified form of silicon, the raw material used to manufacture solar wafers and cells. India imports most of it from China.

Wafers: Thin slices of polysilicon that form the base layer of solar cells.

Upstream Components: The initial stages of the solar supply chain — polysilicon, ingots, and wafers — which India largely imports.

Downstream Components: The final stages of solar manufacturing — cells, modules, and panels — where India has significantly built capacity.

Production Linked Incentive (PLI) Scheme: A flagship government scheme offering financial incentives to boost domestic manufacturing in priority sectors, including High-Efficiency Solar PV Modules.

Panchamrit Pledge: India’s five climate commitments announced by PM at COP26 (Glasgow, 2021):

1. 500 GW non-fossil fuel capacity by 2030
2. 50% energy from renewables by 2030
3. Reduce projected emissions by 1 billion tonnes by 2030
4. Reduce emissions intensity of GDP by 45% by 2030
5. Net Zero by 2070

Net Zero: A state where greenhouse gas emissions released into the atmosphere are balanced by an equivalent amount removed.

COP (Conference of Parties): The annual UN climate summit under the UNFCCC (1992). India is a signatory to the Paris Agreement (COP21, 2015).

Green Hydrogen: Hydrogen produced by electrolysis of water using renewable electricity — a zero-carbon fuel key to decarbonising industries.

PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan): A scheme launched in 2019 to promote solar pumps and solarisation of agriculture.

PM Surya Ghar: Muft Bijli Yojana: A 2024 scheme to provide free electricity to 1 crore households through rooftop solar installations.

Battery Energy Storage System (BESS): Technology used to store electricity from renewable sources for later use, addressing the intermittency problem of solar and wind.

Green Energy Corridor: A project to develop transmission infrastructure for evacuating renewable power from generation hubs to load centres.

DISCOM (Distribution Company): Power distribution utilities responsible for supplying electricity to end consumers — often financially stressed.

Atmanirbhar Bharat: The Government of India’s self-reliance vision, aimed at reducing import dependence in key sectors including energy.

Morgan Stanley: A leading global investment bank whose research reports are widely cited for economic and sectoral analysis.

Question Section (MCQs)

Q1. India currently ranks third globally in installed renewable energy capacity. The top two countries ahead of India are:

(a) USA and Germany

(b) China and USA

(c) China and Germany

(d) Japan and USA

Q2. Consider the following statements about India’s renewable energy sector:

1. India’s non-fossil fuel capacity has crossed 262.7 GW.
2. Solar and wind form the bulk of new renewable energy additions.
3. India is fully self-sufficient in upstream solar components.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q3. The Panchamrit pledge, announced by India, was made at which international summit?

(a) COP21, Paris (2015)

(b) COP26, Glasgow (2021)

(c) COP27, Sharm El-Sheikh (2022)

(d) COP28, Dubai (2023)

Q4. Which of the following is not part of India’s Panchamrit commitments?

(a) 500 GW non-fossil fuel capacity by 2030

(b) 50% energy from renewables by 2030

(c) Net Zero by 2050

(d) Reduce emissions intensity of GDP by 45% by 2030

Q5. Polysilicon and wafers, frequently mentioned in solar manufacturing, are categorised as:

(a) Downstream components

(b) Upstream components

(c) Battery storage components

(d) Grid integration components

Q6. Consider the following schemes:

1. PM-KUSUM
2. PM Surya Ghar: Muft Bijli Yojana
3. National Green Hydrogen Mission

Which of these are related to India’s renewable energy push?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q7. Green Hydrogen is produced by which of the following processes?

(a) Steam methane reforming of natural gas

(b) Coal gasification with carbon capture

(c) Electrolysis of water using renewable electricity

(d) Biomass pyrolysis under high pressure

Q8. With reference to India’s solar manufacturing, what percentage of upstream components like wafers and polysilicon is currently imported from China?

(a) 20–40%

(b) 40–60%

(c) 60–80%

(d) 80–100%

Answer Key with Explanations

Q1 → (b) China and USA

India ranks 3rd globally, behind China (1st) and the United States (2nd) in installed renewable energy capacity.

Q2 → (a) 1 and 2 only

Statements 1 and 2 are correct. Statement 3 is wrong — India still imports 60–80% of upstream components (polysilicon, wafers) from China and is not self-sufficient.

Q3 → (b) COP26, Glasgow (2021)

The Panchamrit pledge — India’s five climate commitments — was announced by the Prime Minister at COP26 in Glasgow in November 2021.

Q4 → (c) Net Zero by 2050

India’s commitment is Net Zero by 2070, not 2050. The other three options are correct elements of the Panchamrit pledge.

Q5 → (b) Upstream components

Polysilicon, ingots, and wafers represent the upstream stages of the solar value chain — the raw material end. Cells and modules are downstream.

Q6 → (d) 1, 2 and 3

All three are flagship renewable energy initiatives — PM-KUSUM (solar pumps for farmers), PM Surya Ghar (rooftop solar for households), and the National Green Hydrogen Mission (green hydrogen ecosystem).

Q7 → (c) Electrolysis of water using renewable electricity

Green Hydrogen is produced by splitting water (H₂O) into hydrogen and oxygen through electrolysis powered by renewable energy, making it a zero-carbon fuel.

Q8 → (c) 60–80%

According to the Morgan Stanley report, India still imports 60–80% of upstream solar components — primarily polysilicon and wafers — from China, posing a supply chain vulnerability.

4. D’Ering Memorial Wildlife Sanctuary

Summary

• For the first time in nearly two decades, a tiger has been captured by camera traps in Arunachal Pradesh’s D’Ering Memorial Wildlife Sanctuary.
• The D’Ering Memorial Wildlife Sanctuary is a unique protected area spanning 190 sq. km, renowned for its riverine island ecosystem characterised by vast alluvial grasslands.
• It provides a critical habitat for a variety of rare, threatened, and endangered species, including the Royal Bengal Tiger, Asian elephant, Gangetic dolphin, and the Bengal Florican.
• The sanctuary is named after Daying Ering, a former Union Minister and influential chairman of the Ering Commission, which shaped India’s Panchayati Raj system.

Background & Concept

What is D’Ering Memorial Wildlife Sanctuary?

D’Ering Memorial Wildlife Sanctuary is a 190 sq. km protected area in Arunachal Pradesh known for its unique riverine island ecosystem.

It is one of a kind in the state because 75–80% of its area consists of alluvial grasslands — rare in the otherwise forest-dominated Northeast.

Location:

• State: Arunachal Pradesh
• District: East Siang
• Proximity: Located near Pasighat, the district headquarters
• Accessibility: Through the Anchalghat and Borguli ranges

History:

1. Establishment

• Established in 1978

2. Naming

• Named after Daying Ering — a former Union Minister
• He was the influential chairman of the Ering Commission, which played a pivotal role in shaping India’s Panchayati Raj system

Key Features:

1. Riverine Landscape

• Defined by approximately 100 km of river courses
• Functions as a series of riverine islands

2. Habitat Composition

• 75–80% alluvial grasslands — making it one of a kind in Arunachal Pradesh
• Remaining area: riverine forests mixed with bamboo and secondary woodland

3. Topography

• Relatively low altitude: 135 m to 140 m above Mean Sea Level (MSL)
• Gradually decreases from north to south

4. Rich Biodiversity

Mammals:

• Royal Bengal Tiger
• Leopard
• Asian Elephant
• Asiatic Buffalo (Wild Water Buffalo)
• Chinese Pangolin
• Hispid Hare (endangered)

Aquatic Life:

• Gangetic Dolphin — India’s National Aquatic Animal

Avifauna (Birds):

• Bengal Florican (migratory, Critically Endangered)
• Black-breasted Parrotbill
• Premier birdwatching destination

Significance of the Tiger Sighting:

• First confirmed tiger presence in nearly two decades
• Indicates ecological recovery of the grassland ecosystem
• Reinforces Arunachal Pradesh’s status as a biodiversity hotspot
• Strengthens the case for upgrading conservation status of the sanctuary
• Supports the goals of Project Tiger and NTCA (National Tiger Conservation Authority)

Keywords & Definitions

D’Ering Memorial Wildlife Sanctuary: A 190 sq. km protected area in East Siang district of Arunachal Pradesh, renowned for its riverine island ecosystem and alluvial grasslands.

Daying Ering: A former Union Minister of India and chairman of the Ering Commission, after whom the sanctuary is named. The commission shaped India’s Panchayati Raj framework.

Ering Commission (1960–61): A commission appointed to examine the working of the Panchayati Raj system and recommend strengthening local self-government.

Panchayati Raj System: A three-tier system of local self-government in India, formalised through the 73rd Constitutional Amendment Act, 1992.

Riverine Island Ecosystem: A unique ecosystem formed by islands within river courses, supporting alluvial grasslands, aquatic species, and migratory birds.

Alluvial Grasslands: Grasslands formed on alluvial soil deposited by rivers — highly fertile and rich in biodiversity, often home to rhinos, elephants, and tigers.

Royal Bengal Tiger (Panthera tigris tigris): India’s national animal, listed as Endangered on the IUCN Red List and protected under Schedule I of the Wildlife (Protection) Act, 1972.

Asian Elephant (Elephas maximus): A megaherbivore listed as Endangered on the IUCN Red List. India is home to over 60% of the global population.

Wild Water Buffalo (Bubalus arnee): Also called the Asiatic buffalo, listed as Endangered on the IUCN Red List.

Chinese Pangolin (Manis pentadactyla): A scaly mammal listed as Critically Endangered on the IUCN Red List — one of the most trafficked mammals in the world.

Hispid Hare (Caprolagus hispidus): Also called the Assam rabbit, a rare and endangered species found in the terai grasslands of the Himalayan foothills. Listed as Endangered on IUCN.

Gangetic Dolphin (Platanista gangetica): India’s National Aquatic Animal (declared in 2009), listed as Endangered on the IUCN Red List. Functionally blind, uses echolocation.

Bengal Florican (Houbaropsis bengalensis): A Critically Endangered grassland bird found in South Asia and Southeast Asia, dependent on alluvial grasslands.

Black-breasted Parrotbill (Paradoxornis flavirostris): A vulnerable bird species restricted to tall grasslands of the Brahmaputra and Siang river basins.

Wildlife Sanctuary: A protected area notified under Section 18 of the Wildlife (Protection) Act, 1972, where some regulated human activities are permitted.

National Tiger Conservation Authority (NTCA): A statutory body established under the Wildlife (Protection) Act, 1972 (via 2006 amendment) for the conservation of tigers in India.

Project Tiger: A wildlife conservation programme launched in 1973 by the Government of India to ensure the survival of the Bengal tiger in its natural habitat.

East Siang District: A district in Arunachal Pradesh with Pasighat as its headquarters, drained by the Siang River, the main tributary of the Brahmaputra.

Siang River: The upper course of the Brahmaputra in Arunachal Pradesh; called Tsangpo in Tibet, Siang in Arunachal, and Brahmaputra in Assam.

IUCN Red List: The International Union for Conservation of Nature’s authoritative inventory of the global conservation status of species.

Question Section (MCQs)

Q1. Consider the following statements about D’Ering Memorial Wildlife Sanctuary:

1. It is located in the East Siang district of Arunachal Pradesh.
2. It was established in 1978.
3. About 75–80% of its area consists of dense evergreen forests.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q2. The D’Ering Memorial Wildlife Sanctuary is named after Daying Ering, who is best known for his contribution to:

(a) Tribal welfare laws in India

(b) Panchayati Raj system in India

(c) Wildlife protection legislation

(d) Border infrastructure development

Q3. Which of the following species are found in D’Ering Memorial Wildlife Sanctuary?

1. Royal Bengal Tiger
2. Gangetic Dolphin
3. Bengal Florican
4. Hispid Hare

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 1, 2 and 3 only

(c) 2, 3 and 4 only

(d) 1, 2, 3 and 4

Q4. The Gangetic Dolphin (Platanista gangetica), found in D’Ering Sanctuary, was declared India’s National Aquatic Animal in which year?

(a) 2005

(b) 2009

(c) 2010

(d) 2014

Q5. Consider the following statements about the Bengal Florican:

1. It is listed as Critically Endangered on the IUCN Red List.
2. It is dependent on alluvial grassland habitats.
3. It is a migratory bird species.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q6. The Siang River, which flows through the East Siang district, is known by which name in Tibet?

(a) Brahmaputra

(b) Tsangpo

(c) Dibang

(d) Lohit

Q7. Which of the following best describes a Wildlife Sanctuary under the Wildlife (Protection) Act, 1972?

(a) Notified under Section 35; no human activity is permitted

(b) Notified under Section 18; some regulated human activities are permitted

(c) Notified under Section 26A; only research activities are permitted

(d) Notified under Section 38; commercial forestry is permitted

Q8. Consider the following statements about the Chinese Pangolin:

1. It is listed as Critically Endangered on the IUCN Red List.
2. It is among the most trafficked mammals in the world.
3. It is a scaly insectivorous mammal.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q9. Project Tiger, which oversees tiger conservation in India, was launched in which year?

(a) 1969

(b) 1972

(c) 1973

(d) 1986

Answer Key with Explanations

Q1 → (a) 1 and 2 only

Statements 1 and 2 are correct. Statement 3 is wrong — 75–80% of the sanctuary’s area consists of alluvial grasslands, not dense evergreen forests. The remaining area has riverine forests, bamboo, and secondary woodland.

Q2 → (b) Panchayati Raj system in India

Daying Ering was the chairman of the Ering Commission (1960–61) that examined the working of the Panchayati Raj system and recommended strengthening local self-government in India.

Q3 → (d) 1, 2, 3 and 4

All four species are found in the sanctuary — Royal Bengal Tiger, Gangetic Dolphin, Bengal Florican (migratory), and Hispid Hare (endangered).

Q4 → (b) 2009

The Gangetic Dolphin was officially declared India’s National Aquatic Animal in 2009 by the Government of India to protect this endangered freshwater species.

Q5 → (d) 1, 2 and 3

All three statements are correct — the Bengal Florican is Critically Endangered on the IUCN Red List, depends on alluvial grasslands, and is migratory in nature.

Q6 → (b) Tsangpo

The Siang River is called the Yarlung Tsangpo in Tibet, becomes the Siang in Arunachal Pradesh, and is known as the Brahmaputra in Assam.

Q7 → (b)

A Wildlife Sanctuary is notified under Section 18 of the Wildlife (Protection) Act, 1972, and some regulated human activities like grazing and movement may be permitted (unlike a National Park under Section 35, where such activities are prohibited).

Q8 → (d) 1, 2 and 3

All three statements are correct — the Chinese Pangolin is listed as Critically Endangered on the IUCN Red List, is among the most trafficked mammals globally, and is a scaly insectivorous mammal.

Q9 → (c) 1973

Project Tiger was launched in 1973 by the Government of India to ensure the survival of the Bengal tiger in its natural habitat. The National Tiger Conservation Authority (NTCA) was established in 2006.

5. Kuno National Park

Summary

• The Madhya Pradesh Chief Minister will release two cheetahs into the wild at Kuno National Park, marking a continuing milestone for Project Cheetah.
• The park’s cheetah population has grown to 57 individuals, making Kuno the only home of wild cheetahs in India.
• Kuno is a premier wildlife destination and the site of the world’s first intercontinental big cat relocation project.
• Originally established as a sanctuary of 350 sq. km in 1981, it was upgraded to a National Park in 2018 and now spans 748 sq. km within a larger 1,235 sq. km wildlife division.

Background & Concept

What is Kuno National Park?

Kuno National Park is a premier wildlife destination located in Madhya Pradesh, India, famous for being the site of the world’s first intercontinental big cat relocation project — Project Cheetah.

It was originally a wildlife sanctuary created to host the translocation of Asiatic Lions from Gir National Park, Gujarat, but later became the chosen site for reintroducing the cheetah to India after the species was declared extinct in 1952.

Location:

• State: Madhya Pradesh
• Districts: Sheopur and Morena
• Region: Part of the Vindhyan hill range
• Historical: Was part of the Gwalior princely state

Historical Background:

1. Ancient & Mughal Era

• Mughal records from 1564 note Emperor Akbar capturing elephants here
• Abul Fazl recorded the presence of lions in the region
• The last lion was reportedly shot near Guna in 1872

2. Lord Curzon & Maharaja Scindia (1904–05)

• An early attempt at lion relocation was made by Maharaja Madhavrao Scindia I
• He brought 10 African lions in 1905
• The project failed after the lions turned into cattle-lifters in Shivpuri

3. Project Cheetah (2022)

• The Prime Minister of India launched the modern reintroduction project in September 2022
• First batch: Cheetahs from Namibia
• Followed by batches from South Africa and Botswana
• It is the world’s first intercontinental translocation of a large carnivore

Key Features of Kuno National Park:

1. Kuno River

• The spine of the park — bisects the forest
• Ensures a constant water supply
• Gives the protected area its name

2. Flora (The “Never Say Die” Forest)

• Dominated by Kardhai, Khair, and Salai trees
• The Kardhai tree is unique — it can turn green just from atmospheric humidity, even before the first monsoon rains

3. Vast Grasslands

• Features expansive meadows and grasslands
• Some are larger than those in Kanha or Bandhavgarh
• Ideal for high-speed predators like cheetahs

4. Terrain

• Mix of sparse forests, rocky hills, and wide river valleys
• Typical of the Central Indian highlands

Significance:

• Only home of wild cheetahs in India
• Restores a species declared extinct in India in 1952
• Showcases India’s conservation leadership
• Boosts eco-tourism and rural livelihoods in Sheopur and Morena
• Reinforces commitments under the Convention on Biological Diversity (CBD)

Keywords & Definitions

Kuno National Park: A 748 sq. km national park in Madhya Pradesh’s Sheopur and Morena districts, home to Project Cheetah — the world’s first intercontinental big cat translocation.

Project Cheetah: A flagship wildlife reintroduction programme launched on 17 September 2022 to reintroduce the cheetah in India, 70 years after the species was declared extinct in 1952.

Cheetah (Acinonyx jubatus): The fastest land animal, capable of speeds up to 120 km/h. Listed as Vulnerable on the IUCN Red List.

Asiatic Lion (Panthera leo persica): A lion subspecies found only in Gir National Park, Gujarat. Listed as Endangered on the IUCN Red List. Kuno was originally prepared as a second home for them.

National Park: A protected area notified under Section 35 of the Wildlife (Protection) Act, 1972, with strict protection — no human activity (grazing, forestry) is permitted.

Wildlife Sanctuary: A protected area notified under Section 18 of the Wildlife (Protection) Act, 1972, where some regulated human activities may be permitted.

Wildlife (Protection) Act, 1972: The principal law governing wildlife conservation in India, providing for establishment of protected areas and protection of species.

Vindhyan Range: A discontinuous chain of mountains in central India, running across Madhya Pradesh, Rajasthan, Gujarat, and Uttar Pradesh, separating North India from the Deccan Plateau.

Intercontinental Translocation: The movement of a species from one continent to another for conservation or reintroduction. Project Cheetah is the first such project for a large carnivore.

Reintroduction: A conservation technique that involves releasing a species into an area where it was historically present but had become locally extinct.

Big Cat: A term commonly used for large members of the Felidae family — typically lion, tiger, leopard, jaguar, snow leopard, and cheetah.

IUCN Red List: The International Union for Conservation of Nature’s comprehensive inventory of the global conservation status of species, categorising them from Least Concern to Extinct.

Convention on Biological Diversity (CBD): A multilateral treaty adopted at the Rio Earth Summit (1992) with three main goals — conservation of biodiversity, sustainable use, and fair sharing of benefits.

Sheopur & Morena Districts: Two districts in the Chambal region of Madhya Pradesh where Kuno National Park is located.

Kuno River: A tributary of the Chambal River flowing through the national park; gives the park its name.

Gir National Park: The only natural habitat of the Asiatic Lion, located in Gujarat. Kuno was originally chosen as a second home for these lions.

Gwalior Princely State: A former Maratha-ruled princely state in central India under the Scindia dynasty, of which the Kuno region was historically a part.

Question Section (MCQs)

Q1. Consider the following statements about Kuno National Park:

1. It is located in the Sheopur and Morena districts of Madhya Pradesh.
2. It was originally established as a wildlife sanctuary in 1981 and upgraded to a National Park in 2018.
3. It is part of the Aravalli hill range.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q2. Project Cheetah, launched in September 2022, is associated with the reintroduction of cheetahs in India from which countries?

1. Namibia
2. South Africa
3. Botswana
4. Kenya

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 1, 2 and 3 only

(c) 2, 3 and 4 only

(d) 1, 2, 3 and 4

Q3. Kuno National Park was originally prepared as a second home for which of the following species?

(a) Bengal Tiger

(b) Asiatic Lion

(c) Indian Leopard

(d) Snow Leopard

Q4. The Cheetah (Acinonyx jubatus) is listed under which IUCN Red List category?

(a) Endangered

(b) Critically Endangered

(c) Vulnerable

(d) Least Concern

Q5. Consider the following statements:

1. National Parks in India are notified under Section 35 of the Wildlife (Protection) Act, 1972.
2. Wildlife Sanctuaries allow some regulated human activities, whereas National Parks do not.
3. Kuno was upgraded from a sanctuary to a National Park in 2018.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q6. The Kuno River, which gives the national park its name, is a tributary of which major river?

(a) Betwa

(b) Chambal

(c) Ken

(d) Sindh

Q7. Which of the following trees is the dominant species in Kuno National Park and is unique for turning green from atmospheric humidity before the monsoon?

(a) Sal

(b) Teak

(c) Kardhai

(d) Mahua

Q8. Cheetahs were officially declared extinct in India in which year?

(a) 1947

(b) 1952

(c) 1972

(d) 1986

Q9. Consider the following statements regarding Project Cheetah:

1. It is the world’s first intercontinental translocation of a large carnivore.
2. The first batch of cheetahs was brought from South Africa.
3. The cheetah population in Kuno has grown to 57 individuals.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

Answer Key with Explanations

Q1 → (a) 1 and 2 only

Statements 1 and 2 are correct. Statement 3 is wrong — Kuno is part of the Vindhyan hill range, not the Aravalli range.

Q2 → (b) 1, 2 and 3 only

Cheetahs have been brought to Kuno from Namibia (first batch, September 2022), followed by batches from South Africa and Botswana. Kenya is not part of Project Cheetah.

Q3 → (b) Asiatic Lion

Kuno was originally prepared as a second home for the Asiatic Lion (currently found only in Gir National Park, Gujarat). The upgrade to National Park status in 2018 was done to meet the conditions for hosting them.

Q4 → (c) Vulnerable

The Cheetah (Acinonyx jubatus) is currently listed as Vulnerable on the IUCN Red List, with declining populations in Africa and Iran.

Q5 → (d) 1, 2 and 3

All three statements are correct — National Parks are notified under Section 35 of the Wildlife (Protection) Act, 1972, sanctuaries permit certain regulated activities, and Kuno was upgraded to a National Park in 2018.

Q6 → (b) Chambal

The Kuno River is a tributary of the Chambal River. It bisects the park and gives it its name, ensuring constant water supply for wildlife.

Q7 → (c) Kardhai

The Kardhai tree is the dominant species in Kuno and is unique for its ability to turn green from atmospheric humidity even before the first monsoon rains, giving the area its nickname “Never Say Die Forest”.

Q8 → (b) 1952

The Cheetah was officially declared extinct in India in 1952, with the last three known cheetahs reportedly shot by the Maharaja of Korea (Chhattisgarh) in 1947.

Q9 → (b) 1 and 3 only

Statements 1 and 3 are correct. Statement 2 is wrong — the first batch of cheetahs was brought from Namibia, not South Africa. South Africa and Botswana cheetahs arrived in later batches.

Banking and Finance News

1. RBI and the European Central Bank (ECB) signed a Memorandum of Understanding (MoU)

Source: ET

Summary

• The Reserve Bank of India (RBI) and the European Central Bank (ECB) signed a Memorandum of Understanding (MoU) to enhance cooperation in central banking.
• The ECB is the prime monetary authority of the European Union and the central component of the Eurosystem and the European System of Central Banks (ESCB).
• It is one of the world’s most influential central banks, overseeing a combined balance sheet of approximately €7 trillion.
• The renewed agreement facilitates a structured framework for the regular exchange of information and best practices in central banking — strengthening monitoring of global financial developments and systemic risks.

Background & Concept

What is the European Central Bank (ECB)?

The ECB is the central bank of the European Union (EU) responsible for administering the euro — the single currency used by the Eurozone countries.

It is the central component of:

• The Eurosystem (ECB + national central banks of Eurozone countries)
• The European System of Central Banks (ESCB) (ECB + central banks of all 27 EU member states)

Founding & Status:

• Founded: 1 June 1998 under the Maastricht Treaty framework
• Euro launched: 1 January 1999
• Official EU Institution Status: Gained on 1 December 2009 via the Treaty of Lisbon
• Headquarters: Frankfurt, Germany

Primary Aim:

The ECB’s primary objective is to guarantee and maintain price stability within the Eurozone.

It manages the Euro — the single currency of the EU — and works to keep consumer price inflation low and stable to support economic growth and job creation.

Eurozone Membership:

• The ECB governs the Eurozone, which has expanded from its original 11 members to 21 countries as of 2026
• Recent Additions: Croatia joined in January 2023, and Bulgaria became the latest member in January 2026

Ownership Structure:

• Capital stock: €11 billion
• Owned by the central banks of all 27 EU member states as shareholders
• Share of each country is determined by its population and GDP

Key Functions of the ECB:

1. Monetary Policy

• The Governing Council defines monetary policy for the Eurozone
• Sets key interest rates and monetary objectives

2. Currency Issuance

• Holds the exclusive right to authorise the issuance of Euro banknotes
• Approves the volume of Euro coins issued by member states

3. Foreign Exchange Management

• Administers the foreign exchange reserves of EU member states
• Conducts foreign exchange operations

4. Financial Oversight

• Operates the T2 (TARGET2) payments system, ensuring smooth settlement of large-value payments in Euro

5. Policy Enforcement

• The Executive Board enforces decisions of the Governing Council
• Provides directions to national central banks across the Eurozone

Significance of the RBI–ECB MoU:

• Establishes a structured framework for regular exchange of information and best practices
• Strengthens monitoring of global financial sector developments
• Improves identification of systemic risks in the global financial system
• Boosts cooperation between two major central banks managing ₹/€ economies
• Supports India–EU economic ties, including the ongoing India–EU Free Trade Agreement (FTA) negotiations

Keywords & Definitions

European Central Bank (ECB): The central bank of the European Union, responsible for monetary policy in the Eurozone and the single currency, the Euro. Headquartered in Frankfurt, Germany.

Eurozone: A monetary union of EU member states that have adopted the Euro as their official currency. Currently has 21 members (as of 2026).

European Union (EU): A political and economic union of 27 member states located primarily in Europe, established under the Maastricht Treaty (1993).

Eurosystem: Comprises the ECB and the national central banks (NCBs) of the Eurozone countries. Responsible for conducting monetary policy in the Euro area.

European System of Central Banks (ESCB): Includes the ECB and the national central banks of all 27 EU member states, regardless of whether they have adopted the Euro.

Maastricht Treaty (1992/1993): The foundational treaty signed in 1992 (entered into force 1993) that created the European Union and laid the foundation for the single currency (Euro) and the ECB.

Treaty of Lisbon (2009): A reform treaty signed in 2007 and effective from 1 December 2009 that gave the ECB the status of an official EU institution.

Euro (€): The official currency of the Eurozone, introduced as electronic currency in 1999 and as physical banknotes/coins in 2002.

Price Stability: A condition of low and stable inflation — the primary objective of the ECB, generally targeted at around 2% annual inflation.

Monetary Policy: The process by which a central bank controls the money supply and interest rates to achieve macroeconomic objectives like price stability and full employment.

Governing Council: The main decision-making body of the ECB, comprising the Executive Board members and the governors of national central banks of Eurozone countries.

Executive Board: The operational body of the ECB consisting of the President, Vice-President, and four other members, responsible for implementing monetary policy.

TARGET2 (T2): The real-time gross settlement (RTGS) system owned and operated by the Eurosystem for the settlement of large-value euro payments.

Memorandum of Understanding (MoU): A formal agreement between two or more parties outlining the terms of cooperation, though generally not legally binding in the strict sense.

Reserve Bank of India (RBI): India’s central bank, established in 1935, responsible for monetary policy, currency issuance, and financial system regulation in India.

Systemic Risk: The risk of collapse of an entire financial system or market, as opposed to the risk associated with any individual entity.

Foreign Exchange Reserves: Assets held by a central bank in foreign currencies, used to back liabilities and influence monetary policy.

Bulgaria’s Eurozone Entry (January 2026): Bulgaria became the 21st member of the Eurozone, adopting the Euro as its official currency.

Croatia’s Eurozone Entry (January 2023): Croatia became the 20th Eurozone member, replacing the Kuna with the Euro.

Question Section (MCQs)

Q1. Consider the following statements about the European Central Bank (ECB):

1. It is the prime monetary authority of the European Union.
2. It was founded under the Treaty of Lisbon (2009).
3. Its headquarters is located in Frankfurt, Germany.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

Q2. The primary objective of the European Central Bank is to:

(a) Maximise employment in the Eurozone

(b) Maintain price stability within the Eurozone

(c) Regulate fiscal policy of EU member states

(d) Manage trade negotiations with non-EU countries

Q3. As of 2026, the Eurozone consists of how many member countries?

(a) 19

(b) 20

(c) 21

(d) 27

Q4. Which of the following countries became the latest member of the Eurozone in January 2026?

(a) Croatia

(b) Bulgaria

(c) Romania

(d) Poland

Q5. Consider the following statements about the Eurosystem and the European System of Central Banks (ESCB):

1. The Eurosystem comprises the ECB and the national central banks of Eurozone countries.
2. The ESCB comprises the ECB and the national central banks of all 27 EU member states.
3. Both bodies are identical in composition.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q6. The TARGET2 (T2) system, operated by the Eurosystem, is primarily used for:

(a) Foreign exchange trading between Eurozone members

(b) Settlement of large-value Euro payments in real time

(c) Issuance of Euro banknotes to member states

(d) Regulation of cryptocurrency in the Eurozone

Q7. The Maastricht Treaty, which laid the foundation for the Euro and the ECB, was signed in which year?

(a) 1991

(b) 1992

(c) 1995

(d) 1999

Q8. Which of the following bodies of the ECB is responsible for defining monetary policy for the Eurozone?

(a) Executive Board

(b) Governing Council

(c) General Council

(d) European Council

Q9. Consider the following statements regarding the RBI–ECB MoU (2026):

1. It establishes a structured framework for the exchange of information and best practices in central banking.
2. It is a legally binding trade agreement between India and the EU.
3. It enhances cooperation in monitoring global financial sector developments and systemic risks.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer Key with Explanations

Q1 → (b) 1 and 3 only

Statements 1 and 3 are correct. Statement 2 is wrong — the ECB was founded in 1998 under the Maastricht Treaty framework, not the Treaty of Lisbon. The Treaty of Lisbon (2009) only granted it the status of an official EU institution.

Q2 → (b) Maintain price stability within the Eurozone

The primary objective of the ECB, as enshrined in EU treaties, is to maintain price stability — typically interpreted as inflation close to but below 2%. Employment and growth are secondary objectives.

Q3 → (c) 21

As of 2026, the Eurozone has 21 members, expanded from the original 11, with Croatia (2023) and Bulgaria (2026) being the most recent additions.

Q4 → (b) Bulgaria

Bulgaria became the latest (21st) member of the Eurozone in January 2026, adopting the Euro as its official currency.

Q5 → (a) 1 and 2 only

Statements 1 and 2 are correct. Statement 3 is wrong — the Eurosystem and ESCB are not identical: the ESCB includes all 27 EU central banks, while the Eurosystem includes only those of the 21 Eurozone countries.

Q6 → (b) Settlement of large-value Euro payments in real time

TARGET2 (T2) is the Real-Time Gross Settlement (RTGS) system owned and operated by the Eurosystem, used for the settlement of large-value payments in Euro.

Q7 → (b) 1992

The Maastricht Treaty was signed in 1992 and entered into force in 1993. It established the European Union and laid the groundwork for the Euro and the ECB.

Q8 → (b) Governing Council

The Governing Council — comprising the ECB Executive Board and the governors of national central banks of Eurozone countries — is the main decision-making body that defines monetary policy for the Eurozone.

Q9 → (c) 1 and 3 only

Statements 1 and 3 are correct. Statement 2 is wrong — the MoU is not a legally binding trade agreement but a framework for cooperation on information exchange and best practices in central banking.

Agriculture News

1. Baksa Honey

Summary

• The Agricultural and Processed Food Products Export Development Authority (APEDA) facilitated the first-ever export of 20 Metric Tons of ODOP honey from Assam’s Aspirational District, Baksa, to the USA.
• Baksa Honey is a premium, near-organic honey variety produced in the Baksa district of Assam (part of the Bodoland Territorial Region).
• It has been identified as the signature product of the district under the One District One Product (ODOP) initiative.
• This export is expected to deliver nearly 43% higher price realization for local beekeepers compared to local farm-gate prices, strengthening the rural economy of an Aspirational District.

Background & Concept

What is Baksa Honey?

Baksa Honey is a premium, near-organic honey produced in the Baksa district of Assam, located within the Bodoland Territorial Region (BTR).

It is the signature ODOP product of the district due to its traditional significance and export potential, deeply rooted in the beekeeping practices of the Bodo tribes.

Key Features of Baksa Honey:

1. Natural Purity

• Sourced from eco-friendly, pesticide-free environments
• Known for high quality and near-organic characteristics

2. Floral Diversity

• Reflects the rich biodiversity of the region
• Collected from diverse forest and agricultural flora

3. Nutritional Value

• Rich in nutritional profile and medicinal properties
• Rooted in centuries of traditional use by communities like the Bodo tribes

4. Global Quality Standards

• Processed in facilities with APEDA-supported testing laboratories
• Meets stringent international food safety requirements

Significance of the Export:

• 43% higher price realization for local beekeepers over farm-gate prices
• Strengthens the rural economy of an Aspirational District
• Provides sustainable income for indigenous beekeeping communities
• Highlights the North Eastern Region (NER) as a hub for high-value, niche agricultural exports
• Boosts India’s agri-export diversification beyond traditional staples

About One District One Product (ODOP):

The ODOP initiative is a transformative programme aimed at identifying, branding, and promoting a unique product from each district across India.

It seeks to turn every district into an export hub by focusing on its traditional or specialised strengths.

ODOP Aim:

• Strengthen local economies through value addition
• Generate local employment
• Connect small-scale producers to national and global markets

ODOP Key Features:

1. Product Identification — Each district selects one product (agricultural, handicraft, or industrial) based on historical or local prominence. Examples: Baksa Honey, Agra Leather, Bhagalpur Silk

2. Skill Development — Training and technical support to artisans and farmers.

3. Financial Assistance — Through schemes like PMFME (PM Formalisation of Micro Food Processing Enterprises).

4. Global Branding — Visibility on e-commerce platforms and international trade fairs.

5. Aspirational District Focus — Prioritises development in historically under-served regions for balanced regional growth.

Keywords & Definitions

Baksa District: A district in Assam that forms part of the Bodoland Territorial Region (BTR), identified as an Aspirational District under NITI Aayog’s programme.

Bodoland Territorial Region (BTR): An autonomous administrative region in Assam created under the Bodo Accord (2020) and governed by the Bodoland Territorial Council (BTC) under the Sixth Schedule of the Indian Constitution.

Bodo Tribes: The largest indigenous community of Assam, known for their rich cultural traditions and traditional beekeeping practices.

APEDA (Agricultural and Processed Food Products Export Development Authority): A statutory body established in 1985 under the APEDA Act, functioning under the Ministry of Commerce and Industry. It promotes the export of agricultural and processed food products from India.

ODOP (One District One Product): A flagship initiative launched in 2018 that aims to identify, brand, and promote one unique product from each district as an export hub, in convergence with schemes like PMFME, Districts as Export Hubs (DEH), and others.

Aspirational Districts Programme (ADP): A programme launched by NITI Aayog in January 2018 to rapidly transform 112 most under-developed districts of India through convergence, collaboration, and competition.

PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises): A centrally-sponsored scheme launched in 2020 under the Ministry of Food Processing Industries, providing credit-linked subsidies to micro food enterprises with a focus on ODOP products.

Farm-Gate Price: The net price received by the producer/farmer when selling the product directly from the farm, before transportation, processing, and marketing costs are added.

Price Realization: The actual revenue earned by the producer per unit of product sold — a measure of profitability.

Near-Organic: Products grown or produced using minimal or no chemical inputs, often lacking formal organic certification but practically meeting organic standards.

Niche Agricultural Exports: High-value, specialised agricultural products (like Baksa Honey, GI-tagged spices) with limited supply but strong demand in international markets.

North Eastern Region (NER): Comprises eight states of India — Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura — known for rich biodiversity and agri-export potential.

Districts as Export Hubs (DEH): An initiative by the DGFT (Directorate General of Foreign Trade) to identify export-worthy products from every district, working in synergy with ODOP.

Geographical Indication (GI) Tag: A sign used on products that have a specific geographical origin and possess qualities or reputation due to that origin (e.g., Darjeeling Tea, Kashmir Pashmina).

Sixth Schedule: Part of the Indian Constitution that provides for autonomous administration of certain tribal areas in Assam, Meghalaya, Tripura, and Mizoram.

Bodo Accord (2020): A tripartite peace agreement signed between the Government of India, Government of Assam, and Bodo groups to resolve the Bodo issue and grant greater autonomy to the BTR.

Question Section (MCQs)

Q1. Consider the following statements about Baksa Honey:

1. It is produced in Baksa district of Assam, part of the Bodoland Territorial Region.
2. It has been identified as the ODOP product of the district.
3. It is known for its synthetic chemical-rich production process.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Q2. The One District One Product (ODOP) initiative aims to:

(a) Promote one industrial product per state for export

(b) Identify, brand, and promote a unique product from each district as an export hub

(c) Standardise agricultural pricing across districts

(d) Implement uniform manufacturing policies nationwide

Q3. APEDA, frequently in news for facilitating agricultural exports, functions under which ministry?

(a) Ministry of Agriculture and Farmers Welfare

(b) Ministry of Food Processing Industries

(c) Ministry of Commerce and Industry

(d) Ministry of Rural Development

Q4. Which of the following best describes the Aspirational Districts Programme (ADP)?

(a) A programme to transform 112 under-developed districts through convergence, collaboration, and competition

(b) A scheme for financial assistance to industrially advanced districts

(c) A constitutional provision for autonomous tribal regions

(d) A subsidy programme exclusively for agricultural districts

Q5. The Bodoland Territorial Region (BTR) is governed under which Schedule of the Indian Constitution?

(a) Fifth Schedule

(b) Sixth Schedule

(c) Seventh Schedule

(d) Eighth Schedule

Q6. Consider the following pairs of ODOP products and their districts/regions:

1. Baksa Honey — Assam
2. Agra Leather — Uttar Pradesh
3. Bhagalpur Silk — Bihar

How many of the above pairs are correctly matched?

(a) Only one

(b) Only two

(c) All three

(d) None

Q7. The PMFME Scheme, which supports ODOP products, is implemented by which Ministry?

(a) Ministry of Agriculture and Farmers Welfare

(b) Ministry of Commerce and Industry

(c) Ministry of Food Processing Industries

(d) Ministry of Micro, Small and Medium Enterprises

Q8. Consider the following statements regarding the export of Baksa Honey:

1. It marks the first-ever export of ODOP honey from Assam’s Baksa district.
2. The shipment of 20 Metric Tons was sent to the USA.
3. The export delivers nearly 43% higher price realization for local beekeepers compared to farm-gate prices.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer Key with Explanations

Q1 → (a) 1 and 2 only

Statements 1 and 2 are correct. Statement 3 is wrong — Baksa Honey is sourced from eco-friendly, pesticide-free environments and is known for its near-organic character, not synthetic chemical use.

Q2 → (b)

The ODOP initiative aims to identify, brand, and promote a unique product from each district of India as an export hub, focusing on the district’s traditional or specialised strengths.

Q3 → (c) Ministry of Commerce and Industry

APEDA is a statutory body established in 1985 that functions under the Ministry of Commerce and Industry, promoting the export of agricultural and processed food products.

Q4 → (a)

The Aspirational Districts Programme (ADP) was launched by NITI Aayog in 2018 to rapidly transform 112 most under-developed districts through the principles of convergence, collaboration, and competition.

Q5 → (b) Sixth Schedule

The Bodoland Territorial Region (BTR) is governed under the Sixth Schedule of the Constitution, which provides for autonomous administration of tribal areas in Assam, Meghalaya, Tripura, and Mizoram.

Q6 → (c) All three

All three pairs are correctly matched:

• Baksa Honey → Assam
• Agra Leather → Uttar Pradesh
• Bhagalpur Silk → Bihar

Q7 → (c) Ministry of Food Processing Industries

The PMFME (PM Formalisation of Micro Food Processing Enterprises) Scheme was launched in 2020 by the Ministry of Food Processing Industries to provide credit-linked subsidies to micro food enterprises with an ODOP focus.

Q8 → (d) 1, 2 and 3

All three statements are correct — it was the first-ever export of ODOP honey from Baksa, the shipment was 20 MT to the USA, and beekeepers earn 43% higher prices than the local farm-gate rate.

One Liner Current Affairs

May 12, 2026

S.No	Topic	Key Highlights
1	PM Modi Visits Karnataka & Telangana	Participated in Art of Living event and launched projects worth ₹9,400 crore
2	India’s First Functional PM MITRA Park	Inaugurated at Warangal, Telangana
3	AIFF–Odisha Renew MoU	Five-year partnership extended for youth football development
4	RBI & ECB Sign MoU	Cooperation strengthened in central banking and financial policy
5	Delhi Metro Launches RuPay ‘On-The-Go’ Cards	DMRC partnered with Airtel Payments Bank for NCMC mobility cards
6	SBI Ecowrap Report	India’s Q4 FY26 GDP projected at 7.2%
7	National Panchayat Awards 2025	Karnataka topped with 6 awards
8	Suvendu Adhikari Becomes WB CM	First BJP Chief Minister of West Bengal
9	Vijay Sworn in as Tamil Nadu CM	TVK founder became 13th Chief Minister of Tamil Nadu
10	Ashok Kumar Panda Appointed SAIL CMD	Took charge from May 9, 2026
11	IUCAA Banner Handed to SAAO	India–South Africa scientific cooperation strengthened
12	ICGS Achal Commissioned	Indigenous Fast Patrol Vessel inducted in Goa
13	DRDO Conducts Scramjet Combustor Test	1,200-second hypersonic combustor test successful
14	Agni MIRV Missile Tested	Advanced Agni missile tested with MIRV capability
15	India Wins Gold at Archery World Cup	Women’s recurve team defeated China in Shanghai
16	Sahil Jadhav Wins Bronze	Won India’s bronze in men’s compound event
17	Mal Anderson Passes Away	Australian tennis legend died at age 91
18	Amit Shah Releases Tushar Mehta’s Books	Legal-themed books launched at Bharat Mandapam
19	World Migratory Bird Day 2026	Observed on May 9
20	International Day of Argania 2026	Observed globally on May 10
21	Hyderabad–Panaji Economic Corridor	NH-167 four-laning project foundation laid
22	Zaheerabad Industrial Area Project	Foundation stone laid in Telangana
23	IOCL Malkapur Terminal Dedicated	Petroleum infrastructure inaugurated in Hyderabad
24	Sindhu Hospital Inaugurated	New healthcare facility dedicated in Hyderabad
25	AIFF–FIFA Talent Academy Initiative	Odisha partnership aligned with FIFA talent development
26	SALT Telescope Collaboration	India and South Africa expanded astronomy cooperation
27	NCMC Card Features	Open-loop payment system usable across transit networks
28	Bank Credit Growth Rises	SBI report noted SCB credit growth at 16.1%
29	DDUPSVP Awards	34 Gram Panchayats recognised for sustainable development
30	New Napam Gaon Panchayat Wins Top Award	Assam GP won India’s Best Gram Panchayat award
31	Free Electricity Scheme in Tamil Nadu	Vijay government announced 200 free units for households
32	Singappen Special Task Force	Tamil Nadu launched women’s safety initiative
33	Anti-Narcotic Task Force Formed	Tamil Nadu launched ANTF against drug trafficking
34	ICGS Achal Based at Vadinar	Vessel deployed under Coast Guard Region (NW)
35	DRDO Hypersonic Programme	Scramjet test strengthened cruise missile programme
36	Deepika Kumari-Led Team Wins Gold	India’s first women’s recurve World Cup gold since 2021
37	WMBD 2026 Poster Released	Designed by Brazilian artist Luisa Lacerda
38	International Day of Argania	Highlights sustainable development and Moroccan heritage