Current Affairs For Examinations (CAFE) 2026

May 07, 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.

Reports

1. Crime in India 2024 and Accidental Deaths & Suicides in India (ADSI) 2024 Reports

Context:

The National Crime Records Bureau (NCRB), under the Ministry of Home Affairs, released the Crime in India 2024 and Accidental Deaths & Suicides in India (ADSI) 2024 reports in May 2026. These reports provide a comprehensive statistical analysis of the law-and-order landscape and the socio-economic distress markers in the country during the preceding year.

Summary

• Keywords: NCRB, Cognisable Crime, Cybercrime Surge, UAPA, BNS Transition.
• General Trend: Total cognisable crimes dropped to 58.86 lakh (a 6% decline), indicating a statistical improvement in overall security, though specific categories showed a sharp increase.
• The Transition: This is one of the first reports reflecting data recorded under the Bharatiya Nyaya Sanhita (BNS), which replaced the Indian Penal Code (IPC).

Key Data Pillars

The 2024 report highlights a significant shift toward digital and state-level offences, contrasting with the decline in traditional caste-based crimes.

A. The Cybercrime Crisis

Cybercrime remains the fastest-growing criminal category in India.

• Volume: 1,01,928 cases, crossing the 1-lakh mark for the first time.
• Nature of Crime: Financial Fraud is the dominant motive (72.6%), followed by sexual exploitation and extortion.

B. Offences Against the State

This category includes crimes that threaten national security or public order.

• Growth: Rose by 6.6% to 5,194 cases.
• Legal Framework: Most cases were registered under the Prevention of Damage to Public Property Act (84.6%), while 12.5% were registered under the Unlawful Activities (Prevention) Act (UAPA).

C. Crimes Against Marginalized Groups

A positive trend was observed in the reduction of targeted violence:

• Scheduled Castes (SCs): Cases declined by 3.6%.
• Scheduled Tribes (STs): Cases saw a massive drop of 23.1%.

ADSI 2024

The Accidental Deaths & Suicides in India (ADSI) report acts as a barometer for mental health and economic stability.

Category	Suicide Count (2024)	Percentage/Note
Total Suicides	1,70,746	National Total
Daily Wage Earners	~52,900	~31% (Largest group)
Homemakers	22,113	Significant gender-specific distress
Unemployed	14,778	Economic vulnerability
Students	14,488	High academic/competitive pressure
Agriculture Sector	10,546	Includes farmers and labourers

Drug Overdose

The report highlights a silent but deadly epidemic: Drug-overdose deaths rose by 50% in a single year.

• Top State: Tamil Nadu (313 deaths) reported nearly three times the number of deaths as the next highest state, Punjab (106).
• Mizoram remains a concern in the Northeast with 65 deaths, often attributed to its proximity to the “Golden Triangle.”

Key Exam Terms

• NCRB: National Crime Records Bureau; established in 1986 to collect and analyze crime data.
• Cognisable Offence: An offence in which the police can arrest a person without a warrant and start an investigation without the permission of a court.
• UAPA: Unlawful Activities (Prevention) Act; India’s primary anti-terror law.
• BNS: Bharatiya Nyaya Sanhita; the new criminal code of India.
• Replacment Level (TFR): Though a demographic term, it is often discussed alongside ADSI data to understand long-term societal shifts.

Multiple Choice Questions (MCQs)

Q1. According to the NCRB 2024 report, which category of crime saw a surge of over 17%?
A) Crimes against women
B) Cybercrime
C) Theft
D) Rioting

Q2. Which group accounts for the largest share (~31%) of total suicides in the ADSI 2024 report?
A) Farmers
B) Students
C) Daily Wage Earners
) Homemakers

Q3. Which state recorded the highest number of drug-overdose deaths in 2024?
A) Punjab
B) Manipur
C) Tamil Nadu
D) Kerala

Q4. What percentage of “offences against the state” were registered under the UAPA in 2024?
A) 5%
B) 12.5%
C) 50.2%
D) 84.6%

Q5. Total cognisable crimes in India during 2024 saw a decline of approximately:
A) 2%
B) 6%
C) 15%
D) No decline; they increased.

Answers:
Q1: B | Q2: C | Q3: C | Q4: B | Q5: B

National Affairs

1. The UNESCO/Guillermo Cano World Press Freedom Prize

Context:

The UNESCO/Guillermo Cano World Press Freedom Prize is one of the most prestigious global recognitions in journalism. For the year 2026, the award holds particular significance as it highlights the extreme perils faced by media professionals in conflict zones.

Summary

• Winner: The Sudanese Journalists Syndicate (SJS).
• Keywords: Sudan Conflict, Democratic Resilience, UNESCO, Information Sovereignty.
• The Recognition: The prize honors the Syndicate’s members who have continued to report on the ground despite the devastating civil war between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF).
• The Verdict: The international jury praised the SJS for its “extraordinary bravery” in documenting human rights violations and maintaining an independent flow of information amidst a total media blackout in many parts of Sudan.

Context

To understand the significance of this award for UPSC (Current Affairs) or Mass Comm exams, one must look at the environment in which the Syndicate operates:

• Total Infrastructure Collapse: Nearly 90% of traditional media houses in Sudan have been looted or destroyed since April 2023.
• Zones of Silence: Large swathes of the country remain under internet shutdowns, making the Syndicate’s “underground” reporting vital for global awareness.
• First of its Kind: The SJS is the first independently elected journalists’ body in Sudan in over 30 years, emerging as a symbol of the country’s democratic aspirations.

About the Guillermo Cano Prize

This award is unique within the United Nations system and carries deep symbolic weight.

• Founded: 1997.
• Namesake: Guillermo Cano Isaza, the Colombian editor of El Espectador, who was murdered in 1986 by drug cartels for exposing their influence on the state.
• Mandate: To honor individuals, organizations, or institutions that have made an outstanding contribution to the defense or promotion of press freedom, especially when this has been achieved in the face of danger.
• Ceremony: Traditionally awarded on May 3, which is World Press Freedom Day.

UNESCO & Press Freedom

Feature	Details
Awarding Body	UNESCO (United Nations Educational, Scientific and Cultural Organization)
Prize Money	$25,000
Funding	Cano Foundation (Colombia) & Helsingin Sanomat Foundation (Finland)
2025 Winner (Previous)	Journalists covering the Gaza conflict (shared/collective)
Selection Process	Recommended by an independent jury of 6 media professionals

Key Exam Terms

• World Press Freedom Day (May 3): Proclaimed by the UN General Assembly in 1993 to raise awareness of the importance of freedom of the press.
• Impunity: The failure to bring perpetrators of crimes against journalists to justice.
• SAR (Special Administrative Region): While not directly related here, often discussed in press freedom contexts; ensure you distinguish between political and journalistic freedom.
• The Windhoek Declaration: A 1991 statement of press freedom principles by African newspaper journalists that serves as the foundation for World Press Freedom Day.

Multiple Choice Questions (MCQs)

Q1. Who is the recipient of the 2026 UNESCO/Guillermo Cano World Press Freedom Prize?

A) Maria Ressa

B) The Sudanese Journalists Syndicate

C) Julian Assange

D) Reporters Without Borders

Q2. The Guillermo Cano Prize was established to honor the memory of a journalist from which country?

A) Mexico

B) Philippines

C) Colombia

D) Russia

Q3. On which date is the Guillermo Cano World Press Freedom Prize traditionally awarded?

A) January 1

B) May 3

C) October 2

D) December 10

Q4. The Sudanese Journalists Syndicate was specifically recognized for its work during the conflict between which two groups?

A) Houthi Rebels and the Government

B) SAF (Sudanese Armed Forces) and RSF (Rapid Support Forces)

C) Al-Shabaab and the Somali Army

D) The Taliban and Resistance Forces

Answers:

Q1: B | Q2: C | Q3: B | Q4: B

2. The Discovery of a Thin Atmosphere on 2002 XV93

Context:

The discovery of a thin atmosphere on 2002 XV93 is a landmark event in planetary science. For decades, Pluto was the only known Trans-Neptunian Object (TNO) to possess a gaseous envelope. This discovery suggests that atmospheres in the outer reaches of the solar system may be more common than previously assumed, even on smaller, non-dwarf planet bodies.

Summary

• Keywords: Kuiper Belt, Stellar Occultation, Thin Atmosphere, 310 miles (500 km).
• The Discovery: Astronomers used the Stellar Occultation method—watching the object “eclipse” a distant star—to detect a slight fading of starlight, indicating an atmospheric layer.
• Location: Resides in the Kuiper Belt, a frigid reservoir of icy bodies beyond Neptune’s orbit.
• Significance: It is only the second TNO after Pluto confirmed to have an atmosphere, despite being significantly smaller in size.

Understanding the Kuiper Belt Context

To understand 2002 XV93, one must visualize its neighborhood in the far reaches of our solar system.

• Distance: At 39.6 AU (Astronomical Units), it is roughly 40 times further from the Sun than Earth is.
• Temperature: Because it receives so little solar energy, temperatures are estimated to be around -230°C to -240°C. At these temperatures, most gases (like Nitrogen and Methane) exist as solid ice on the surface.

Atmospheric Composition and Origins

The detection of an atmosphere on a body only 500 km wide is scientifically puzzling because such small objects usually lack the gravity to hold onto gases.

A. Tenuous Nature

The atmosphere is 5 to 10 million times thinner than Earth’s. It is likely a “seasonal” atmosphere that sublimates (turns from solid to gas) when the object moves slightly closer to the Sun in its elliptical orbit.

B. The Cryovolcanism Theory

Scientists suspect Cryovolcanism (Ice Volcanoes) may be at play. Instead of molten rock, these volcanoes erupt “cold” volatiles like water, ammonia, or methane. This would provide a constant “internal supply” of gas to replenish the atmosphere.

Technical Specifications

Feature	Data	Comparison/Significance
Diameter	~500 km	Roughly the width of the state of Pennsylvania.
Orbit Period	247 Years	Almost identical to Pluto’s orbital period (~248 years).
Average Distance	39.6 AU	Deep inside the “heart” of the Kuiper Belt.
Materials	Water ice, Rock, Organics	“Organics” here refer to simple carbon-based molecules.
Atmosphere Density	Tenuous	Requires high-precision ground-based telescopes to detect.

Key Exam Terms

• Trans-Neptunian Object (TNO): Any minor planet in the solar system that orbits the Sun at a greater average distance than Neptune.
• Stellar Occultation: An event that occurs when one celestial body passes in front of another, hiding it from the observer. It is the primary tool for measuring the sizes and atmospheres of distant objects.
• AU (Astronomical Unit): The average distance between the Earth and the Sun (~150 million km).
• Sublimation: The transition of a substance directly from the solid to the gas state without passing through the liquid state.

Multiple Choice Questions (MCQs)

Q1. (612533) 2002 XV93 is located in which region of the solar system?

A) The Asteroid Belt

B) The Kuiper Belt

C) The Oort Cloud

D) The Inner Solar System

Q2. Which method was used by astronomers in Japan to discover the atmosphere on 2002 XV93?

A) Direct Imaging

B) Radar Mapping

C) Stellar Occultation

D) Transit Method

Q3. How does the size of 2002 XV93 compare to Pluto?

A) It is much larger than Pluto.

B) It is roughly the same size as Pluto.

C) It is much smaller than Pluto (approx. 500 km diameter).

D) It is a Gas Giant.

Q4. What is the suspected internal mechanism that could be supplying gases to 2002 XV93’s atmosphere?

A) Photosynthesis

B) Cryovolcanism

C) Nuclear Fusion

D) Magnetic Reconnection

Q5. 2002 XV93 is the ___________ Trans-Neptunian Object known to possess an atmosphere.

A) First

B) Second

C) Tenth

D) Only

Answers:

Q1: B | Q2: C | Q3: C | Q4: B | Q5: B

3. The Mission for Cotton Productivity

Source: IE

Context:

The Mission for Cotton Productivity, approved in May 2026, is a transformative initiative aimed at revitalizing India’s “White Gold” sector. With a massive outlay of ₹5,659.22 crore, the mission aligns with the Prime Minister’s 5F Vision—Farm to Fibre to Factory to Fashion to Foreign—to make India a global leader in sustainable textile production.

Summary

• Keywords: 5F Vision, ₹5,659.22 Crore, High-Density Planting (HDPS), Kasturi Cotton.
• The Scale: Targets 140 districts across 14 states and involves 2,000 ginning factories.
• The Nodal Agencies: A collaborative effort between the Ministry of Agriculture & Farmers Welfare and the Ministry of Textiles.
• The Goal: To increase production to 498 lakh bales by 2031 and nearly double lint productivity to 755 kg/ha.

Strategic Pillars

The mission moves away from traditional farming to “Precision Agriculture” to overcome the stagnation in Indian cotton yields.

A. High-Density Planting System (HDPS)

Unlike traditional wide-spacing, HDPS involves planting more seeds per hectare (Closer Spacing).

• Benefit: Maximizes yield per unit of land and is better suited for mechanical harvesting, reducing dependency on manual labor.

B. Quality Control & Modernization

To compete with US and Australian cotton, India is focusing on “Trash Content” (leaf bits/dust in cotton).

• Standard: The mission aims to reduce trash content to less than 2%.
• Ginning: 2,000 factories will be modernized to ensure the lint remains contaminant-free during the separation of seeds.

Branding & The Circular Economy

The mission recognizes that global fashion brands now demand sustainability and traceability.

• Kasturi Cotton Bharat: India’s premium cotton brand will be promoted globally, backed by Blockchain-based traceability to prove its ethical and sustainable origins.
• Fibre Diversification: In a unique move, the mission also supports “alternative natural fibres” like Bamboo, Banana, and Sisal, allowing farmers to diversify their income streams beyond just cotton.
• Digital Empowerment: 32 lakh farmers will be integrated into digital platforms for transparent pricing, bypassing middle-men in the Mandis.

Key Performance Indicators (Targets for 2031)

Metric	Current Status	Mission Target (2031)
Total Production	~320-340 Lakh Bales	498 Lakh Bales
Lint Productivity	440 kg/hectare	755 kg/hectare
Trash Content	Varies (Higher)	Less than 2%
Farmer Impact	Fragmented	32 Lakh Farmers Digitally Linked

Key Exam Terms

• Bale: A standard unit of measurement for cotton; in India, 1 bale equals 170 kg.
• Ginning: The process of separating cotton fibers from their seeds.
• Lint: The white, fluffy fiber that is left after ginning (used for spinning yarn).
• Kasturi Cotton: India’s indigenous premium cotton brand launched to establish a global identity.
• 5F Vision: A integrated approach to the textile value chain: Farm $\rightarrow$ Fibre $\rightarrow$ Factory $\rightarrow$ Fashion $\rightarrow$ Foreign.

Multiple Choice Questions (MCQs)

Q1. What is the total financial outlay approved for the Mission for Cotton Productivity?

A) ₹1,500.00 crore

B) ₹3,200.50 crore

C) ₹5,659.22 crore

D) ₹10,000.00 crore

Q2. The Mission for Cotton Productivity is being implemented jointly by which two ministries?

A) Agriculture & Commerce

B) Textiles & Chemicals

C) Agriculture & Textiles

D) MSME & Rural Development

Q3. Which planting technology is being upscaled under this mission to boost yields?

A) Hydroponics

B) High-Density Planting System (HDPS)

C) Slash and Burn

D) Terrace Farming

Q4. What is the target lint productivity (yield) set for the year 2031?

A) 440 kg/ha

B) 600 kg/ha

C) 755 kg/ha

D) 1000 kg/ha

Q5. In the context of Indian cotton, what is the weight of one ‘Bale’?

A) 100 kg

B) 150 kg

C) 170 kg

D) 200 kg

Answers:

Q1: C | Q2: C | Q3: B | Q4: C | Q5: C

5. The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0

Source: PIB

Context:

The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, approved in May 2026, is a vital fiscal intervention designed to stabilize India’s industrial sector amidst global geopolitical volatility. By providing a sovereign guarantee, the government ensures that banks continue to lend to high-risk or liquidity-stressed sectors like MSMEs and Aviation without the fear of defaults.

Summary

• Keywords: NCGTC, ₹2.55 Lakh Crore, Liquidity Support, Moratorium, West Asia Crisis.
• The Mechanism: The government (via NCGTC) acts as a “guarantor.” If a business fails to repay the additional loan, the government covers the loss (100% for MSMEs).
• Targeted Outlay: A massive ₹2,55,000 crore total credit target, with ₹5,000 crore specifically earmarked for the airline industry.
• The Catalyst: Primarily launched to help businesses navigate the supply chain and cost disruptions caused by the West Asia situation.

Understanding the Credit Guarantee Model

For UPSC GS-3 or Banking exams, it is essential to understand how a “Guarantee” differs from a “Direct Loan”:

• No Direct Cash Outgo: The government doesn’t give the money; banks do. The government only pays if the borrower defaults.
• Risk Mitigation: Lenders are more willing to provide “Additional Working Capital” because the risk is backed by the National Credit Guarantee Trustee Company (NCGTC).
• Zero Cost to Borrower: There is no guarantee fee, which reduces the overall cost of the loan for the business owner.

MSMEs vs. Airline Sector

The scheme acknowledges that airlines have much higher capital requirements and longer recovery cycles compared to smaller businesses.

Feature	MSMEs & Non-MSMEs	Airline Sector
Guarantee Coverage	100% (for MSMEs)	90%
Additional Credit Cap	₹100 Crore	₹1,500 Crore
Loan Tenor	5 Years	7 Years
Principal Moratorium	1 Year	2 Years

Key Strategic Impact

1. Preventing NPA Contagion: By providing liquidity, the scheme prevents “Standard” accounts from slipping into Non-Performing Assets (NPAs).
2. Maintaining Supply Chains: MSMEs are the backbone of domestic production; their stability ensures that larger factories (the “Factory” in 5F) keep running.
3. Aviation Resilience: High fuel costs and route disruptions due to international tensions make airlines vulnerable; this support maintains national and international connectivity.

Key Exam Terms

• NCGTC: National Credit Guarantee Trustee Company Ltd; a wholly-owned company of the Govt of India to manage guarantee funds.
• Moratorium: A period during the loan term where the borrower is not required to pay the principal amount; only interest is usually paid.
• Standard Account: An account where the borrower is making timely payments (not overdue for more than 30-90 days).
• Peak Working Capital: The maximum amount of credit a business used during a specific period (Q4 FY 2026 in this case).
• Liquidity Mismatch: A situation where a company’s cash inflows do not match its immediate cash outflows (bills/salaries).

Multiple Choice Questions (MCQs)

Q1. Which organization is the implementing agency for ECLGS 5.0?

A) RBI

B) SIDBI

C) NCGTC

D) SEBI

Q2. What is the maximum loan tenor for the Airline sector under ECLGS 5.0?

A) 3 years

B) 5 years

C) 7 years

D) 10 years

Q3. Under ECLGS 5.0, what percentage of the loan is guaranteed for MSME borrowers?

A) 75%

B) 90%

C) 100%

D) 50%

Q4. The additional credit quantum for MSMEs is calculated based on the peak working capital utilized during which period?

A) FY 2024-25

B) Q4 FY 2026

C) Q1 FY 2027

D) The last 10 years average

Q5. What is the guarantee fee charged to borrowers under this scheme?

A) 1% of the loan amount

B) 2.5% of the loan amount

C) Nil

D) 0.5% per annum

Answers:

Q1: C | Q2: C | Q3: C | Q4: B | Q5: C

6. Supreme Court (Number of Judges) Amendment Bill, 2026

Context:

The Union Cabinet’s approval of the Supreme Court (Number of Judges) Amendment Bill, 2026, represents a strategic expansion of the Indian judiciary. By increasing the sanctioned strength to 38 (including the Chief Justice), the government aims to tackle the persistent challenge of case pendency and the need for more simultaneous Constitution Benches.

Summary

• Keywords: Article 124(1), Parliamentary Law, Simple Majority, Collegium System.
• The Change: Increasing the number of judges from 33 to 37 (excluding the Chief Justice).
• Total Capacity: Including the Chief Justice of India (CJI), the total bench strength will be 38.
• The Objective: To reduce the massive backlog of cases and allow for more Constitution Benches to sit simultaneously, ensuring speedier delivery of justice.

Constitutional & Legal Framework

Unlike many other institutional changes, increasing the number of Supreme Court judges does not require a complex Constitutional Amendment under Article 368.

• Article 124(1): Explicitly states that the Supreme Court shall consist of a Chief Justice and, until Parliament by law prescribes a larger number, not more than seven other judges.
• Supreme Court (Number of Judges) Act, 1956: This is the specific “law” mentioned in Article 124. To change the number, Parliament simply passes an amendment to this Act through a Simple Majority.
• Financial Independence: All expenditures related to the salaries, staff, and facilities for these additional judges are charged to the Consolidated Fund of India, ensuring they are not subject to a vote in Parliament.

The Appointment Process

Once Parliament passes the Bill and the posts are created, the process for filling these seats remains within the established Collegium System:

1. Recommendation: The Supreme Court Collegium (CJI + 4 senior-most judges) recommends names for the new posts.
2. Vetting: Recommendations are sent to the Union Ministry of Law and Justice.
3. Executive Review: The Law Ministry forwards the names to the Prime Minister, who advises the President.
4. Assent: The President of India officially appoints the judges under Article 124(2).

Historical Timeline of Growth

The expansion of the Court has historically followed the rising complexity and volume of Indian litigation:

Year	Act/Provision	Judges (Excl. CJI)	Total Strength
1950	Constitution of India	7	8
1956	Original 1956 Act	10	11
1977	Amendment Act	17	18
1986	Amendment Act	25	26
2009	Amendment Act	30	31
2019	Amendment Act	33	34
2026	Proposed Bill	37	38

Key Exam Terms

• Sanctioned Strength: The maximum number of judges allowed by law.
• Working Strength: The actual number of judges currently holding office.
• Constitution Bench: A bench consisting of at least five judges of the Supreme Court, usually formed to decide cases involving a substantial question of law regarding the interpretation of the Constitution (Article 145(3)).
• Simple Majority: A majority of more than 50% of the members present and voting.

Multiple Choice Questions (MCQs)

Q1. Which Article of the Indian Constitution empowers Parliament to increase the number of Supreme Court judges?

A) Article 131

B) Article 124(1)

C) Article 143

D) Article 226

Q2. What is the proposed total strength (including the CJI) of the Supreme Court according to the 2026 Amendment Bill?

A) 34

B) 35

C) 37

D) 38

Q3. The salaries and allowances of Supreme Court judges are charged to which fund?

A) Contingency Fund of India

B) Public Accounts of India

C) Consolidated Fund of India

D) State Consolidated Fund

Q4. To increase the strength of judges, what type of majority is required in Parliament?

A) Special Majority (2/3rd)

B) Simple Majority

C) Absolute Majority

D) Majority with Ratification by States

Answers:

Q1: B | Q2: D | Q3: C | Q4: B

7. The Incentive Scheme for Promotion of Critical Mineral Recycling

Context:

The Incentive Scheme for Promotion of Critical Mineral Recycling, approved in late 2025 and seeing active participant enrollment as of May 2026, is a cornerstone of India’s National Critical Mineral Mission (NCMM). By incentivizing “Urban Mining,” the government aims to turn India from a mineral importer into a self-reliant recycling hub for the green energy transition.

Summary

• Keywords: Urban Mining, ₹1,500 Crore, Circular Economy, Lithium/Cobalt/Nickel, Capex vs. Opex.
• The Concept: A financial bridge to help companies recover expensive minerals from waste (e-waste, old batteries) rather than relying on mining raw ore.
• The Timeline: A 6-year operational window from FY 2025–26 to FY 2030–31.
• The Participant Base: 58 companies have been officially cleared by the Ministry of Mines to begin receiving benefits under this framework.

The “Critical” Need

To understand why this scheme is vital for UPSC (Economy/Environment) or Engineering exams, we must look at India’s import dependency for the EV (Electric Vehicle) revolution.

• Import Dependency: India currently imports over 80–100% of its Lithium, Cobalt, and Nickel—mostly from China or South American “Lithium Triangle” nations.
• Circular Economy: Instead of letting spent batteries end up in landfills, this scheme treats them as “secondary mines.”
• Geopolitics: Developing domestic recycling reduces the risk of supply chain disruptions caused by global conflicts or trade wars.

Financial Architecture

The scheme is unique because it offers a “choose-your-own-path” subsidy model to accommodate both massive industrial players and agile startups.

A. The Subsidy Models

Subsidy Type	Amount / Percentage	Eligibility / Condition
Capex (Capital)	20%	On infrastructure/machinery costs (if on time).
Opex (Operating)	Incremental Sales Linked	40% in Year 2; 60% in Year 5.
Hybrid	Combination of both	Subject to total project ceilings.

B. Beneficiary Categorization

1. Group A (Large Entities): Revenue $\ge$ ₹200 Cr. Total benefit capped at ₹50 Crore.
2. Group B (SMEs/Startups): Revenue $<$ ₹200 Cr. Total benefit capped at ₹25 Crore.

4. Targeted “Urban Mining” Streams

The scheme focuses on specific waste streams that contain high concentrations of rare and valuable elements:

1. Spent Li-ion Batteries (LIB): For recovering Lithium, Cobalt, and Manganese.
2. Permanent Magnets: For recovering Neodymium and Dysprosium (essential for wind turbines and EV motors).
3. Catalytic Converters: For recovering Platinum Group Metals (PGM) like Palladium and Rhodium.
4. E-waste: General recovery of Gold, Silver, Copper, and rare earth elements from circuit boards.

Key Exam Terms

• Urban Mining: The process of reclaiming raw materials from spent products, buildings, and waste rather than from the earth.
• Greenfield Project: A new project built from scratch on a previously undeveloped site.
• Brownfield Project: The expansion or modernization of an existing facility.
• Critical Minerals: Minerals that are essential for the economy and whose supply is at risk.
• Replacement Level (Recycling): The point where secondary sources satisfy a significant portion of domestic demand.

Multiple Choice Questions (MCQs)

Q1. The Incentive Scheme for Promotion of Critical Mineral Recycling falls under which broader national mission?

A) National Solar Mission

B) National Critical Mineral Mission (NCMM)

C) Digital India Mission

D) Startup India

Q2. What is the total financial outlay approved for this recycling incentive scheme?

A) ₹500 crore

B) ₹1,000 crore

C) ₹1,500 crore

D) ₹5,000 crore

Q3. For a Group B (smaller entity) company, what is the maximum financial ceiling for incentives?

A) ₹10 crore

B) ₹25 crore

C) ₹50 crore

D) ₹100 crore

Q4. A project that starts production on time is eligible for what percentage of Capex subsidy?

A) 10%

B) 15%

C) 20%

D) 25%

Q5. Which of the following is NOT a primary target mineral of the “Urban Mining” streams under this scheme?

A) Lithium

B) Cobalt

C) Iron Ore

D) Neodymium

Answers:

Q1: B | Q2: C | Q3: B | Q4: C | Q5: C

8. Supreme Court (Number of Judges) Amendment Bill, 2026

Context:

The Union Cabinet’s approval of the Supreme Court (Number of Judges) Amendment Bill, 2026, represents a significant step in addressing judicial pendency in India. This expansion reflects the evolving needs of a legal system that has seen its sanctioned strength grow from just 8 judges in 1950 to a proposed 38 in 2026.

Summary

• Keywords: Article 124(1), Parliamentary Law, Simple Majority, Collegium System.
• The Change: Increasing the number of judges from 33 to 37 (excluding the Chief Justice).
• Total Capacity: Including the Chief Justice of India (CJI), the total bench strength will be 38.
• The Objective: To reduce the massive backlog of cases and allow for more Constitution Benches to sit simultaneously, ensuring speedier delivery of justice.

Constitutional & Legal Framework

Unlike many other constitutional changes, increasing the number of Supreme Court judges does not require a Constitutional Amendment under Article 368.

• Article 124(1): Explicitly states that the Supreme Court shall consist of a Chief Justice and, until Parliament by law prescribes a larger number, not more than seven other judges.
• Supreme Court (Number of Judges) Act, 1956: This is the specific “law” mentioned in Article 124. To change the number, Parliament simply passes an amendment to this Act.
• Financial Independence: Under Article 146, the administrative expenses of the Supreme Court, including salaries, are charged upon the Consolidated Fund of India. This means they are not subject to a vote in Parliament, protecting the judiciary from executive/legislative pressure.

The Appointment Process (Post-Expansion)

Once Parliament passes the Bill and the posts are created, the “filling” of these seats follows the established Memorandum of Procedure (MoP):

1. Recommendation: The Supreme Court Collegium (CJI + 4 senior-most judges) evaluates candidates (High Court Judges or distinguished Advocates).
2. Vetting: Recommedations are sent to the Union Law Ministry, which conducts background checks via the Intelligence Bureau (IB).
3. Executive Review: The Law Minister sends the file to the Prime Minister, who advises the President.
4. Assent: The President of India issues the “Warrant of Appointment” under their hand and seal.

Historical Timeline of Growth

The expansion of the Court has historically followed the rising complexity and volume of Indian litigation:

Year	Act/Provision	Judges (Excl. CJI)	Total Strength
1950	Constitution of India	7	8
1956	Original 1956 Act	10	11
1977	Amendment Act	17	18
1986	Amendment Act	25	26
2009	Amendment Act	30	31
2019	Amendment Act	33	34
2026	Proposed Bill	37	38

Key Exam Terms

• Sanctioned Strength: The maximum number of judges allowed by law.
• Working Strength: The actual number of judges currently holding office (often lower than sanctioned strength due to vacancies).
• Constitution Bench: A bench consisting of at least five judges of the Supreme Court, usually formed to decide cases involving a substantial question of law regarding the interpretation of the Constitution (Article 145(3)).
• Simple Majority: A majority of more than 50% of the members present and voting; required to pass the Supreme Court (Number of Judges) Amendment Bill.

Multiple Choice Questions (MCQs)

Q1. Which Article of the Indian Constitution empowers Parliament to increase the number of Supreme Court judges?

A) Article 131

B) Article 124(1)

C) Article 143

D) Article 226

Q2. What is the proposed total strength (including the CJI) of the Supreme Court according to the 2026 Amendment Bill?

A) 34

B) 35

C) 37

D) 38

Q3. The salaries and allowances of Supreme Court judges are charged to which fund?

A) Contingency Fund of India

B) Public Accounts of India

C) Consolidated Fund of India

D) State Consolidated Fund

Q4. Who officially appoints the judges of the Supreme Court?

A) The Chief Justice of India

B) The Prime Minister

C) The President of India

D) The Law Minister

Q5. To increase the strength of judges, what type of majority is required in Parliament?

A) Special Majority (2/3rd)

B) Simple Majority

C) Absolute Majority

D) Majority with Ratification by States

Answers:

Q1: B | Q2: D | Q3: C | Q4: C | Q5: B

Banking and Finance

1. The Foreign Exchange Management (Authorised Persons) Regulations, 2026

Context:

The Foreign Exchange Management (Authorised Persons) Regulations, 2026, released by the RBI on May 6, 2026, marks the most significant overhaul of India’s retail foreign exchange landscape in over two decades. By phasing out the legacy “Money Changer” model and introducing “Forex Correspondents,” the RBI is shifting toward a more digitally integrated and strictly regulated ecosystem.

Summary

• Keywords: FxC Framework, AD Category III, FFMC Sunset, Principal-Agent Model.
• The Big Shift: The RBI is moving away from standalone, independent money changers (FFMCs) toward a structure where forex services are either handled by specialized dealers or via Forex Correspondents (FxC) who act as agents for larger banks.
• The Deadline: Existing franchisee models have a two-year window to wind down or transition to the FxC framework.
• The Goal: To improve transparency, reduce “shadow” forex transactions, and allow Fintechs and travel platforms to offer legal forex services under a formal license.

The New Three-Tier Authorised Dealer (AD) Structure

The regulations simplify the classification of who can handle foreign currency, creating a clear hierarchy of authority.

Category	Typical Entities	Scope of Authority
AD Category I	Commercial Banks	Full range of current and capital account transactions.
AD Category II	Specialized Forex Firms	Specified activities: Money changing, remittances, and overseas education payments.
AD Category III	Fintechs, Travel Agencies	Forex services strictly tied to their core business (e.g., booking a trip or a cross-border payment app).

The “Sunset” of Full-Fledged Money Changers (FFMCs)

For years, FFMCs were the backbone of retail forex (buying/selling cash and travel cards).

• No New Licences: RBI will no longer issue fresh FFMC licenses. This effectively caps the number of independent money changers.
• Transition to AD-II: Existing FFMCs are encouraged to upgrade their infrastructure and capital to become AD Category II entities, which allows them to offer more services like outward remittances.
• Franchisee Phase-out: Small shops or kiosks that acted as “franchisees” of larger dealers must now become Forex Correspondents (FxC). Under the FxC model, the “Principal” (the Bank/AD) is fully responsible for the agent’s compliance and KYC.

Key Exam Terms

• FEMA, 1999: Foreign Exchange Management Act; the parent legislation under which these regulations are issued.
• Authorised Person (AP): Any entity (bank, money changer, etc.) authorized by the RBI to deal in foreign exchange.
• FxC (Forex Correspondent): An agent authorized to carry out limited forex transactions (like selling cash to travelers) on behalf of a Principal AD.
• Outbound Remittance: Money sent from India to a foreign country (e.g., for education or medical treatment).
• Money Changing: The physical exchange of one currency for another (e.g., INR for USD).

Multiple Choice Questions (MCQs)

Q1. Under the 2026 Regulations, which entity is the newest addition to the Authorised Dealer (AD) classification?

A) AD Category I

B) AD Category II

C) AD Category III

D) Full-Fledged Money Changer (FFMC)

Q2. What is the transition period allowed for existing forex franchisees to move to the Forex Correspondent (FxC) framework?

A) 6 months

B) 1 year

C) 2 years

D) 5 years

Q3. Which category of AD is primarily composed of commercial banks with the widest range of forex powers?

A) Category III

B) Category II

C) Category I

D) Forex Correspondents

Q4. True or False: After May 6, 2026, the RBI will continue to accept fresh applications for new Full-Fledged Money Changer (FFMC) licenses.

A) True

B) False

Q5. The “Forex Correspondent” model is based on which legal relationship?

A) Public-Private Partnership

B) Principal-Agent Model

C) Joint Venture

D) Foreign Direct Investment

Answers:

Q1: C | Q2: C | Q3: C | Q4: B (False) | Q5: B