Current Affairs For Examinations (CAFE) 2026

May 14, 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 and Indexes

1. The Global Forest Goals Report 2026

Summary

• A new United Nations assessment titled the Global Forest Goals Report 2026 has warned that rising demand for fuelwood and charcoal has emerged as a major driver of global forest degradation.
• The pressure is particularly severe in sub-Saharan Africa and parts of Asia.
• The report has been prepared by the UN Department of Economic and Social Affairs (UNDESA) and the UN Forum on Forests Secretariat.
• Between 2015 and 2025, global forest cover declined from 4.18 billion hectares to 4.14 billion hectares, with a net annual loss of 4.12 million hectares.
• The world lost nearly 16 million hectares of primary forests, with South America recording the largest decline.

Background & Concept

What is the Global Forest Goals Report 2026?

The Global Forest Goals Report 2026 is a United Nations assessment that tracks global progress towards the Global Forest Goals (GFGs) adopted under the United Nations Strategic Plan for Forests 2017–2030 (UNSPF). It is jointly prepared by the UN Department of Economic and Social Affairs (UNDESA) and the UN Forum on Forests Secretariat.

The report assesses trends in forest cover, restoration efforts, deforestation drivers, biodiversity loss, and climate-related pressures, providing evidence-based inputs for global forest policy.

About the UN Forum on Forests (UNFF):

The UN Forum on Forests (UNFF) is a subsidiary body of the United Nations Economic and Social Council (ECOSOC), established in 2000. It is the highest-level intergovernmental platform on forests, with universal membership of all 193 UN member states. The Forum is supported by a Secretariat based in New York, hosted by UNDESA.

The Six Global Forest Goals (GFGs):

The UNSPF 2017–2030 lays down six voluntary Global Forest Goals:

• GFG 1: Reverse the loss of forest cover; increase forest area by 3% by 2030.
• GFG 2: Enhance forest-based economic, social, and environmental benefits.
• GFG 3: Increase area of protected forests and sustainably managed forests.
• GFG 4: Mobilise financial resources for sustainable forest management.
• GFG 5: Promote governance frameworks to advance sustainable forest management.
• GFG 6: Enhance cooperation, coordination, and synergies in forest-related issues.

Key Findings of the Report:

• Global Forest Decline: Forest cover declined from 4.18 billion hectares in 2015 to 4.14 billion hectares in 2025, with a net annual loss of 4.12 million hectares. Forests still cover roughly 31% of the world’s land area.
• Primary Forest Loss: The world lost nearly 16 million hectares of primary forests between 2015 and 2025. South America recorded the largest decline, particularly in the Amazon Basin.
• Fuelwood as a Major Driver: A growing demand for fuelwood and charcoal has emerged as a major cause of forest degradation, especially in sub-Saharan Africa and parts of Asia, where clean cooking access remains limited.
• Agricultural Expansion: The conversion of forests into agricultural land remained the largest global driver of deforestation, particularly in tropical regions where cattle ranching, palm oil, and soy cultivation drive forest clearing.
• Climate Pressures Intensifying: Droughts, heatwaves, wildfires, pests, and diseases are accelerating forest degradation worldwide. The combined impact of climate change and land-use pressures has created a vicious cycle of forest loss.
• Restoration Gap: Although 91 countries pledged to restore 190 million hectares of forests, only 44 million hectares had been actually restored by 2025 — exposing a major implementation gap.
• Asia’s Progress: Asia recorded the highest restoration performance, restoring over 31 million hectares — about 42.2% of its pledged area. India and China have been notable contributors.

Implications:

• Climate Change Risks: Forest degradation weakens carbon sinks, intensifies global warming, and accelerates biodiversity loss. Forests absorb about 2.6 billion tonnes of CO₂ annually, making them critical to global climate stability.
• Energy Poverty Link: Heavy dependence on fuelwood highlights the connection between poverty, lack of clean energy access, and environmental degradation. Around 2.3 billion people globally still lack access to clean cooking fuels.
• Threat to Biodiversity: Declining primary forests threaten endemic species, ecosystem services, and ecological balance — particularly in biodiversity hotspots like the Amazon, Congo Basin, and South-East Asia.
• Need for Sustainable Supply Chains: The report stresses the urgent need for deforestation-free supply chains, stronger forest governance, and integrated land-use planning.
• India’s Forest Story (Brief Context):
• India is among the few large countries with stable or marginally growing forest cover. According to the India State of Forest Report (ISFR), India’s total forest and tree cover is around 25.17% of its geographical area. India is also a signatory to the Bonn Challenge (target: restore 26 million hectares of degraded land by 2030) and the New York Declaration on Forests (2014).

Significance:

• The report underscores that achieving global climate, biodiversity, and SDG goals depends critically on halting forest loss and boosting restoration. It supports the goals of the Paris Agreement (2015), Global Biodiversity Framework (2022), and SDGs, especially:
  • SDG 13: Climate Action.
  • SDG 15: Life on Land.
  • SDG 7: Affordable and Clean Energy.
  • SDG 12: Responsible Consumption and Production.

Challenges:

The report flags persistent challenges — weak monitoring, inadequate finance, conflicting land-use priorities, poor governance, and commodity-driven deforestation. Addressing these requires stronger international cooperation, payment for ecosystem services (PES), community-led forest management, and clean energy transitions.

Keywords & Definitions

• ▸ Global Forest Goals Report 2026: A UN assessment report jointly prepared by UNDESA and the UN Forum on Forests Secretariat, tracking progress under the UN Strategic Plan for Forests 2017–2030.
• ▸ UN Department of Economic and Social Affairs (UNDESA): A UN Secretariat department that supports sustainable development, economic policy analysis, and statistics — and provides the Secretariat for UNFF.
• ▸ UN Forum on Forests (UNFF): A subsidiary body of ECOSOC established in 2000, with universal membership of 193 UN member states, serving as the highest intergovernmental platform on forests.
• ▸ UN Strategic Plan for Forests 2017–2030 (UNSPF): A global framework for sustainable management of all types of forests, comprising six Global Forest Goals (GFGs) and 26 associated targets.
• ▸ Global Forest Goals (GFGs): A set of six voluntary global goals under the UNSPF, focused on reversing forest loss, increasing protected forests, mobilising finance, governance, and cooperation.
• ▸ Primary Forest: A naturally regenerated forest of native species, where there are no clearly visible indications of human activity and where ecological processes are not significantly disturbed.
• ▸ Forest Degradation: A reduction in the capacity of a forest to provide goods and services — without total conversion to non-forest use. Differs from deforestation, which is total loss of forest cover.
• ▸ Deforestation: The conversion of forest to other land use — for agriculture, urbanisation, infrastructure, or mining — resulting in complete loss of forest cover.
• ▸ Fuelwood: Wood used as a fuel for cooking, heating, or other domestic and industrial purposes — a major energy source for rural and poor populations.
• ▸ Charcoal: A carbon-rich solid fuel obtained by heating wood in the absence of oxygen — widely used in sub-Saharan Africa for cooking.
• ▸ Carbon Sink: A natural or artificial reservoir that absorbs more carbon dioxide from the atmosphere than it releases — examples include forests, oceans, and soil.
• ▸ Biodiversity Hotspot: A biogeographic region with significant levels of biodiversity that is threatened with destruction — examples include the Western Ghats, Amazon, Congo Basin.
• ▸ Amazon Basin: The world’s largest tropical rainforest, spanning nine South American countries, often called the “Lungs of the Earth”.
• ▸ Bonn Challenge: A global effort launched in 2011 to restore 350 million hectares of degraded and deforested land by 2030. India pledged 26 million hectares.
• ▸ New York Declaration on Forests (2014): A non-binding political declaration aimed at halving natural forest loss by 2020 and ending it by 2030, alongside restoring 350 million hectares of degraded land.
• ▸ REDD+ (Reducing Emissions from Deforestation and Forest Degradation): A UN-backed framework that provides financial incentives to developing countries for reducing emissions from deforestation and enhancing forest carbon stocks.
• ▸ Sustainable Forest Management (SFM): The stewardship and use of forests in a way that maintains their biodiversity, productivity, regeneration capacity, and vitality for present and future generations.
• ▸ Deforestation-Free Supply Chains: Supply chains where commodities (palm oil, soy, beef, timber) are produced without contributing to deforestation — increasingly required under EU regulations (EUDR, 2023).
• ▸ Energy Poverty: A condition where households lack access to modern energy services, including clean cooking fuels and reliable electricity — affecting around 2.3 billion people globally.
• ▸ Paris Agreement (2015): A legally binding international treaty adopted at COP21 to limit global warming to well below 2°C, preferably 1.5°C above pre-industrial levels.
• ▸ India State of Forest Report (ISFR): A biennial report published by the Forest Survey of India (FSI) under the Ministry of Environment, Forest and Climate Change, assessing India’s forest and tree cover.

Question Section (MCQs)

Q1. The Global Forest Goals Report 2026 is jointly prepared by which of the following UN bodies?

• (a) UNESCO and UNEP
• (b) UN Department of Economic and Social Affairs (UNDESA) and UN Forum on Forests Secretariat
• (c) FAO and UNDP
• (d) WMO and IPCC

Q2. Consider the following findings of the Global Forest Goals Report 2026:

• Global forest cover declined from 4.18 billion hectares (2015) to 4.14 billion hectares (2025).
• The world lost nearly 16 million hectares of primary forests between 2015–2025.
• South America recorded the largest decline in primary forest area.

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. According to the report, fuelwood and charcoal demand has emerged as a major driver of forest degradation, particularly in:

• (a) Western Europe and North America
• (b) Sub-Saharan Africa and parts of Asia
• (c) Australia and New Zealand
• (d) Russia and Central Asia

Q4. The largest global driver of deforestation, as identified in the report, is:

• (a) Urbanisation
• (b) Mining activities
• (c) Agricultural expansion
• (d) Wildfires

Q5. Asia’s restoration performance under global pledges stood at:

• (a) 15.3% of pledged area
• (b) 42.2% of pledged area
• (c) 60.5% of pledged area
• (d) 75% of pledged area

Q6. Consider the following statements about the UN Forum on Forests (UNFF):

• It is a subsidiary body of the UN Economic and Social Council (ECOSOC).
• It was established in 2000.
• It has selective membership of only 30 UN member states.

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

Q7. The Bonn Challenge, frequently mentioned in forest restoration, aims to restore degraded land by which year?

• (a) 2025
• (b) 2030
• (c) 2040
• (d) 2050

Q8. Which of the following are considered carbon sinks?

• Forests
• Oceans
• Soil
• Industrial chimneys

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

Q9. The India State of Forest Report (ISFR) is published by:

• (a) NITI Aayog
• (b) Forest Survey of India (FSI)
• (c) Wildlife Institute of India (WII)
• (d) Indian Council of Forestry Research and Education (ICFRE)

Q10. Primary Forest, as referenced in the report, is best described as:

• (a) Plantation forest for industrial timber
• (b) Forest planted under afforestation programmes
• (c) Naturally regenerated forest of native species with no clear indications of human activity
• (d) Mangrove forest in coastal areas

Answer Key with Explanations

▸ Q1 → (b)

• The Global Forest Goals Report 2026 is jointly prepared by the UN Department of Economic and Social Affairs (UNDESA) and the UN Forum on Forests Secretariat.

▸ Q2 → (d) 1, 2 and 3

• All three statements are correct — global forest cover declined from 4.18 to 4.14 billion hectares, the world lost nearly 16 million hectares of primary forests, and South America (especially the Amazon Basin) recorded the largest decline.

▸ Q3 → (b) Sub-Saharan Africa and parts of Asia

• The report identifies rising fuelwood and charcoal demand as a major driver of forest degradation in sub-Saharan Africa and parts of Asia, linked to limited clean cooking access and energy poverty.

▸ Q4 → (c) Agricultural expansion

• Agricultural expansion — driven by cattle ranching, palm oil, soy, and other commodity production — remains the largest global driver of deforestation, especially in tropical regions.

▸ Q5 → (b) 42.2% of pledged area

• Asia recorded the highest restoration performance, restoring over 31 million hectares — about 42.2% of its pledged area — with India and China as major contributors.

▸ Q6 → (a) 1 and 2 only

• Statements 1 and 2 are correct. Statement 3 is wrong — the UNFF has universal membership of all 193 UN member states, not selective membership.

▸ Q7 → (b) 2030

• The Bonn Challenge, launched in 2011, aims to restore 350 million hectares of degraded and deforested land by 2030. India has pledged 26 million hectares.

▸ Q8 → (b) 1, 2 and 3 only

• Forests, oceans, and soil are the primary natural carbon sinks. Industrial chimneys are emission sources, not carbon sinks.

▸ Q9 → (b) Forest Survey of India (FSI)

• The India State of Forest Report (ISFR) is a biennial report published by the Forest Survey of India (FSI) under the Ministry of Environment, Forest and Climate Change (MoEFCC), assessing India’s forest and tree cover.

▸ Q10 → (c)

• A Primary Forest is a naturally regenerated forest of native species, with no clearly visible indications of human activity and where ecological processes have not been significantly disturbed — a key indicator of biodiversity and climate resilience.

Awards

1. National Florence Nightingale Awards for 2026

Source: News on Air

Summary

• The President of India, Smt. Droupadi Murmu, presented the National Florence Nightingale Awards for 2026 to nursing personnel at Rashtrapati Bhavan.
• The National Florence Nightingale Award is the highest national honour bestowed upon a nurse in India.
• It recognises nursing professionals who have rendered meritorious services to society through their compassion, devotion to duty, and tireless efforts in patient care.
• The awards were instituted in 1973 by the Ministry of Health and Family Welfare, Government of India.
• They are presented every year on 12 May, the birth anniversary of Florence Nightingale, which is also celebrated as International Nurses Day.

Background & Concept

What are the National Florence Nightingale Awards?

The National Florence Nightingale Awards are the highest national-level recognition for nursing personnel in India. They are conferred annually by the Ministry of Health and Family Welfare in honour of Florence Nightingale (1820–1910), the founder of modern nursing.

The awards recognise outstanding contributions of nursing professionals — including Registered Nurses, Auxiliary Nurse Midwives (ANMs), and Lady Health Visitors (LHVs) — who play a crucial role in delivering quality healthcare, often in challenging circumstances.

The awards were instituted in 1973, in recognition of the central role of nurses in India’s public health system.

Aim of the Awards:

The primary aim is to recognise and reward the exemplary service and excellence of nursing personnel who serve in Central and State Government facilities, as well as private, missionary, and voluntary organisations. The recognition encourages excellence, innovation, and dedication within the nursing profession — which forms the backbone of India’s healthcare delivery system.

Key Features of the Awards:

• The awards are presented every year on 12 May, coinciding with the birth anniversary of Florence Nightingale — observed globally as International Nurses Day.
• The award is open to nursing personnel working across:
• Central and State Government health facilities, as well as Private, Missionary, and Voluntary Organisations.
• Each award consists of three components — a Certificate of Merit, a Medal, and a Cash Prize of ₹50,000.
• Awardees are selected through a rigorous evaluation process that considers impact on community health, innovative practices, and long-term dedication to the nursing profession.

About Florence Nightingale:

• Florence Nightingale (1820–1910) was a British social reformer, statistician, and founder of modern nursing. She was famously known as “The Lady with the Lamp” for her habit of making nightly rounds to tend to wounded soldiers during the Crimean War.
• She is credited with transforming nursing from an untrained, low-status occupation into a highly respected medical profession.
• Early Life:
• She was born on 12 May 1820 in Florence, Italy, into an affluent British family that opposed her decision to become a nurse — nursing being considered a low-status occupation at the time. Despite this, she believed she had a divine calling to serve the sick and began her formal nursing training in Germany in 1851.

Major Contributions:

• The Crimean War (1853–1856): She led a team of 38 nurses to the military hospital in Scutari (Turkey), where she drastically reduced the death rate through improvements in sanitation, hygiene, and nutrition.
• Statistical Innovation: A pioneer in data visualisation, she developed the Coxcomb (Polar Area) diagram to demonstrate that most soldiers died from preventable diseases like cholera, typhoid, and infections — not from battle wounds.
• Educational Reform: In 1860, she established the Nightingale Training School at St Thomas’ Hospital, London — the world’s first secular nursing school.
• Global Influence: Her book “Notes on Nursing” became the cornerstone of nursing education globally, shaping curricula in medical schools and nursing institutes around the world.

Significance of the Awards:

• The awards recognise the silent yet vital service of India’s nursing workforce. With India’s healthcare system serving over 1.4 billion people, nurses are central to maternal and child health, immunisation, NCD management, mental health, and rural healthcare delivery. The awards inspire:
• Higher motivation and morale within the nursing community.
• Recognition of women — a profession where women constitute the overwhelming majority.
• Improved professional standards and accountability.
• Strengthening of national health systems — vital for achieving Universal Health Coverage (UHC) and Sustainable Development Goal 3 (Good Health and Well-Being).

Reforms and Initiatives in Nursing in India:

• The National Nursing and Midwifery Commission (NNMC) Act, 2023 replaced the older Indian Nursing Council Act, 1947, establishing a modern regulatory framework for nursing and midwifery in India.
• Major initiatives include the Establishment of Nursing Colleges with AIIMS and Medical Colleges, upgradation of ANM/GNM schools, Skill India in Nursing, and clinical training reforms under the 15th Finance Commission grants.

Challenges in Indian Nursing:

• Despite progress, the sector faces challenges:
• A shortage of around 2.4 million nurses to meet WHO norms.
• Migration of Indian nurses to Gulf and Western countries.
• Workload imbalance in primary and rural healthcare facilities.
• Variations in quality across nursing institutions.
• Inadequate career progression and compensation in many public health systems.
• The National Florence Nightingale Awards play a vital role in highlighting these issues, boosting morale, and promoting excellence in this critical profession.

Keywords & Definitions

• ▸ National Florence Nightingale Awards: The highest national honour for nursing personnel in India, instituted in 1973 by the Ministry of Health and Family Welfare in memory of Florence Nightingale.
• ▸ Ministry of Health and Family Welfare: The nodal ministry of the Government of India for public health, family welfare, AYUSH integration, medical education, and healthcare delivery.
• ▸ President of India: The constitutional head of state of India, who confers national awards including the Padma Awards, Bravery Awards, and Florence Nightingale Awards.
• ▸ Rashtrapati Bhavan: The official residence of the President of India, located in New Delhi, where many national awards and ceremonies are held.
• ▸ Registered Nurse (RN): A nursing professional who has completed a recognised nursing programme (such as GNM or BSc Nursing) and is registered with a State Nursing Council to practise nursing.
• ▸ Auxiliary Nurse Midwife (ANM): A village-level health worker trained in basic nursing and midwifery to deliver primary healthcare, especially maternal and child health services, in rural India.
• ▸ Lady Health Visitor (LHV): A female health worker, usually supervising ANMs, who plays a key role in community health programmes and public health surveillance.
• ▸ Florence Nightingale (1820–1910): A British social reformer, statistician, and the founder of modern nursing — famously known as “The Lady with the Lamp”.
• ▸ The Lady with the Lamp: A title given to Florence Nightingale for her habit of making nightly rounds to attend to wounded soldiers in the Crimean War.
• ▸ Crimean War (1853–1856): A war fought between the Russian Empire and an alliance of the Ottoman Empire, France, Britain, and Sardinia — during which Florence Nightingale revolutionised military hospital sanitation.
• ▸ Coxcomb Diagram (Polar Area Diagram): A graphical visualisation technique developed by Florence Nightingale to depict causes of mortality — a pioneer of modern data visualisation.
• ▸ Nightingale Training School (1860): The world’s first secular nursing school, established by Florence Nightingale at St Thomas’ Hospital, London.
• ▸ Notes on Nursing: A foundational text written by Florence Nightingale, which became the cornerstone of nursing curricula worldwide.
• ▸ International Nurses Day (12 May): Celebrated globally on Florence Nightingale’s birth anniversary to recognise the contribution of nurses to healthcare and society.
• ▸ National Nursing and Midwifery Commission (NNMC) Act, 2023: A landmark Indian law that replaced the Indian Nursing Council Act, 1947, establishing a modern regulatory framework for nursing and midwifery education and practice.
• ▸ Indian Nursing Council (INC): The earlier statutory body under the Indian Nursing Council Act, 1947, now replaced by the NNMC, that regulated nursing education and registration in India.
• ▸ Universal Health Coverage (UHC): A concept under WHO that ensures all individuals and communities receive quality health services without financial hardship.
• ▸ Sustainable Development Goal 3 (SDG 3): “Good Health and Well-Being” — aims to ensure healthy lives and promote well-being for all at all ages.
• ▸ GNM (General Nursing and Midwifery): A 3.5-year diploma programme in nursing, including midwifery training, that qualifies one to register as a nurse and midwife.
• ▸ BSc Nursing: A 4-year undergraduate degree programme in nursing, considered the standard professional qualification for registered nurses.

Question Section (MCQs)

Q1. The National Florence Nightingale Awards are conferred by which Ministry of the Government of India?

• (a) Ministry of Women and Child Development
• (b) Ministry of Health and Family Welfare
• (c) Ministry of Social Justice and Empowerment
• (d) Ministry of Education

Q2. Consider the following statements about the National Florence Nightingale Awards:

• They are India’s highest national honour for nursing personnel.
• They were instituted in 1973.
• They are presented every year on 12 May.

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. Florence Nightingale, in whose memory the award is named, is best known as:

• (a) The founder of modern surgery
• (b) The founder of modern nursing
• (c) The founder of the Red Cross movement
• (d) The first woman doctor in Europe

Q4. Florence Nightingale played a pivotal role as a nurse during which historical war?

• (a) World War I
• (b) American Civil War
• (c) Crimean War (1853–1856)
• (d) Boer War

Q5. Each National Florence Nightingale Award consists of:

• A Certificate of Merit
• A Medal
• A Cash Prize of ₹50,000
• A scholarship for further studies abroad

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

Q6. International Nurses Day, celebrated globally on 12 May, marks the:

• (a) Death anniversary of Florence Nightingale
• (b) Birth anniversary of Florence Nightingale
• (c) Founding day of the WHO
• (d) Anniversary of the Crimean War

Q7. Consider the following statements about Florence Nightingale:

• She was a pioneer in data visualisation and developed the Coxcomb (Polar Area) diagram.
• She established the Nightingale Training School at St Thomas’ Hospital, London, in 1860.
• She authored the foundational text “Notes on Nursing”.

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

Q8. The National Nursing and Midwifery Commission (NNMC) Act, which replaced the older Indian Nursing Council Act, 1947, was enacted in which year?

• (a) 2019
• (b) 2021
• (c) 2022
• (d) 2023

Q9. Which of the following nursing personnel categories are eligible for the National Florence Nightingale Awards?

• Registered Nurses (RNs)
• Auxiliary Nurse Midwives (ANMs)
• Lady Health Visitors (LHVs)
• Pharmacists

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

Q10. “The Lady with the Lamp” — a title given to Florence Nightingale — refers to her:

• (a) Invention of an oil lamp for medical use
• (b) Habit of making nightly rounds to tend to wounded soldiers
• (c) Use of lamps in hospital surgery
• (d) Lighting candles in memory of fallen soldiers

Answer Key with Explanations

▸ Q1 → (b) Ministry of Health and Family Welfare

• The National Florence Nightingale Awards are conferred by the Ministry of Health and Family Welfare, Government of India, in recognition of outstanding nursing service.

▸ Q2 → (d) 1, 2 and 3

• All three statements are correct — the awards are India’s highest national honour for nurses, were instituted in 1973, and are presented every year on 12 May, the birth anniversary of Florence Nightingale.

▸ Q3 → (b) The founder of modern nursing

• Florence Nightingale (1820–1910) is universally regarded as the founder of modern nursing, transforming nursing into a respected medical profession based on science, sanitation, and training.

▸ Q4 → (c) Crimean War (1853–1856)

• Florence Nightingale led a team of 38 nurses to the military hospital at Scutari during the Crimean War (1853–1856), drastically reducing soldier mortality through improvements in sanitation, hygiene, and nutrition.

▸ Q5 → (b) 1, 2 and 3 only

• Each award consists of a Certificate of Merit, a Medal, and a Cash Prize of ₹50,000. There is no automatic scholarship for foreign studies as part of the award.

▸ Q6 → (b) Birth anniversary of Florence Nightingale

• International Nurses Day is celebrated globally on 12 May, the birth anniversary of Florence Nightingale, to honour the contributions of nurses to healthcare and society.

▸ Q7 → (d) 1, 2 and 3

• All three statements are correct — Florence Nightingale developed the Coxcomb (Polar Area) diagram, founded the Nightingale Training School in 1860, and authored the foundational text “Notes on Nursing”, which shaped nursing curricula worldwide.

▸ Q8 → (d) 2023

• The National Nursing and Midwifery Commission (NNMC) Act, 2023 replaced the older Indian Nursing Council Act, 1947, establishing a modern regulatory framework for nursing and midwifery education and practice in India.

▸ Q9 → (b) 1, 2 and 3 only

• The award is open to Registered Nurses (RNs), Auxiliary Nurse Midwives (ANMs), and Lady Health Visitors (LHVs). Pharmacists are not eligible, as they belong to a different professional category.

▸ Q10 → (b)

• Florence Nightingale was called “The Lady with the Lamp” for her habit of carrying a lamp while making nightly rounds to tend to wounded soldiers at the Scutari military hospital during the Crimean War.

National News

1. India Hosted 10th Edition of Indian Ocean Dialogue (IOD-10) in New Delhi

Summary

• In May 2026, India — which currently holds the chairship of the Indian Ocean Rim Association (IORA) for 2025–27 — hosted the 10th edition of the Indian Ocean Dialogue (IOD-10) in New Delhi.
• The dialogue was held from 7 to 8 May 2026 under the theme “Indian Ocean Region in a Transforming World”.
• It was organised by the Ministry of External Affairs (MEA) in collaboration with the Indian Council of World Affairs (ICWA) and the IORA Secretariat.
• The inaugural session was addressed by Union Minister Sarbananda Sonowal, Mauritius Minister Dhananjay Ramful, and Yemen’s Minister of State Waleed Mohammed Al Qadimi.
• India reaffirmed its commitment to a peaceful, stable, and prosperous Indian Ocean Region (IOR) through its MAHASAGAR vision and Neighbourhood First policy.

Background & Concept

What is the Indian Ocean Dialogue (IOD)?

The Indian Ocean Dialogue (IOD) is the flagship Track 1.5 forum of the Indian Ocean Rim Association (IORA), providing a platform for policymakers, scholars, and practitioners to deliberate on strategic, economic, and developmental challenges facing the Indian Ocean Region (IOR).

The 10th edition (IOD-10) is particularly significant because it was hosted by India during its chairship of IORA (2025–27), signalling India’s leadership role in the maritime affairs of the region.

About the Theme:

• The theme of IOD-10 — “Indian Ocean Region in a Transforming World” — reflects the dynamic geopolitical and economic shifts in the Indo-Pacific, including the rise of maritime security challenges, supply chain reconfigurations, climate change risks, and the growing importance of the IOR for global trade, energy security, and connectivity.
• The Indian Ocean carries nearly 80% of the world’s maritime oil trade, making the region a strategic theatre of global power and cooperation.

Organising Partners:

The IOD-10 was jointly organised by the Ministry of External Affairs (MEA), the Indian Council of World Affairs (ICWA) — India’s leading think tank on international affairs — and the IORA Secretariat based in Mauritius. This combination of government, academia, and regional secretariat reflects the multi-stakeholder character of the dialogue.

Key Dignitaries:

• The inaugural session featured leading voices on maritime affairs. Union Minister Sarbananda Sonowal, Minister of Ports, Shipping and Waterways, delivered the keynote, while Dhananjay Ramful, Minister of Regional Integration and International Trade of Mauritius, and Waleed Mohammed Al Qadimi, Minister of State of Yemen, joined as partner-country leaders.
• A notable highlight from Union Minister Sonowal’s address was that women’s participation in India’s maritime sector has surged by 340% since 2020 — a remarkable indicator of inclusive growth in the blue economy.

India’s Commitment & Strategic Vision:

• At IOD-10, India reaffirmed its commitment to a peaceful, stable, and prosperous Indian Ocean Region, anchored in two key foreign policy frameworks:
• The MAHASAGAR Vision — Mutual and Holistic Advancement for Security and Growth Across Regions — which builds on the earlier SAGAR doctrine (Security and Growth for All in the Region, 2015) and expands India’s vision to a broader regional and global maritime cooperation framework.
• The Neighbourhood First Policy — which prioritises economic, political, and security cooperation with India’s immediate neighbours, especially coastal and island nations of the IOR.

About IORA (Indian Ocean Rim Association):

• The IORA is the premier inter-governmental organisation of the Indian Ocean Region, established in 1997 and headquartered in Cyberjaya, Mauritius. It has 23 member states and 12 dialogue partners, with the objective of strengthening regional cooperation and sustainable development.
• India holds the IORA chairship for 2025–27, with Oman as the Vice-Chair. The IORA focuses on six priority areas: maritime safety and security, trade and investment facilitation, fisheries management, disaster risk management, academic and S&T cooperation, and tourism and cultural exchange, with two cross-cutting issues — blue economy and women’s economic empowerment.

Significance of IOD-10:

• The dialogue strengthens India’s maritime diplomacy, deepens IORA’s institutional engagement, advances the blue economy agenda, and promotes collective response to traditional and non-traditional security threats. It also positions India as a net security provider in the IOR — consistent with its Indo-Pacific vision.
• It supports Sustainable Development Goals (SDGs), especially SDG 14 (Life Below Water), SDG 16 (Peace, Justice and Strong Institutions), and SDG 17 (Partnerships for the Goals).

Challenges in the IOR:

The region faces several challenges — piracy and maritime crime, illegal, unreported, and unregulated (IUU) fishing, climate-induced sea-level rise, debt sustainability of island nations, strategic competition between major powers, and vulnerability of small island states to natural disasters. Forums like IOD-10 are essential to build consensus and cooperative responses.

Keywords & Definitions

• ▸ Indian Ocean Dialogue (IOD): The flagship Track 1.5 forum of the Indian Ocean Rim Association (IORA) for deliberating on strategic, economic, and developmental issues of the Indian Ocean Region.
• ▸ IOD-10: The 10th edition of the Indian Ocean Dialogue, hosted by India in New Delhi on 7–8 May 2026, under the theme “Indian Ocean Region in a Transforming World”.
• ▸ Indian Ocean Rim Association (IORA): An inter-governmental organisation of 23 member states of the Indian Ocean rim, established in 1997, headquartered in Cyberjaya, Mauritius, working for regional cooperation and sustainable development.
• ▸ IORA Chairship (2025–27): India currently holds the chair of IORA, with Oman as Vice-Chair, leading the regional agenda during this term.
• ▸ Ministry of External Affairs (MEA): The nodal ministry of the Government of India for foreign affairs and diplomatic relations.
• ▸ Indian Council of World Affairs (ICWA): A think tank established in 1943, dedicated to the study of international affairs, functioning under the MEA. The Vice President of India is its ex-officio President.
• ▸ Track 1.5 Diplomacy: A diplomatic format that brings together government officials (Track 1) and non-governmental experts (Track 2) in the same forum for policy-relevant discussions.
• ▸ MAHASAGAR Vision: Mutual and Holistic Advancement for Security and Growth Across Regions — India’s expanded maritime cooperation vision, building on the earlier SAGAR doctrine.
• ▸ SAGAR Doctrine (2015): Security and Growth for All in the Region — India’s maritime foreign policy vision for the Indian Ocean Region, articulated by the Prime Minister in 2015.
• ▸ Neighbourhood First Policy: India’s foreign policy doctrine that prioritises cooperative relations with its immediate neighbours through economic, political, and security partnerships.
• ▸ Indian Ocean Region (IOR): The maritime region surrounding the Indian Ocean, spanning East Africa, the Middle East, South Asia, Southeast Asia, and Western Australia — carrying about 80% of the world’s maritime oil trade.
• ▸ Blue Economy: The sustainable use of ocean resources for economic growth, livelihoods, and ecosystem health — including fisheries, shipping, tourism, marine biotech, and renewable energy.
• ▸ Sarbananda Sonowal: The Union Minister for Ports, Shipping and Waterways, who delivered the keynote at IOD-10 and highlighted a 340% rise in women’s participation in India’s maritime sector since 2020.
• ▸ Mauritius: An island nation in the southwestern Indian Ocean, host to the IORA Secretariat at Cyberjaya and a key strategic partner of India.
• ▸ Yemen: A West Asian country located along the Bab-el-Mandeb Strait — a critical maritime chokepoint between the Red Sea and the Gulf of Aden.
• ▸ Bab-el-Mandeb Strait: A strategic chokepoint between Yemen and Djibouti/Eritrea, connecting the Red Sea to the Gulf of Aden — vital for global oil and trade routes.
• ▸ Indo-Pacific: A strategic geographic construct covering the Indian and Pacific Oceans, central to contemporary global geopolitics, trade, and security.
• ▸ Net Security Provider: A concept used to describe India’s role as a provider of security, stability, and humanitarian assistance in the Indian Ocean Region.
• ▸ IUU Fishing (Illegal, Unreported, and Unregulated): Fishing practices that violate national or international laws, escape reporting, or are conducted in unregulated waters — a major threat to marine biodiversity and food security.
• ▸ Sustainable Development Goal 14 (SDG 14): “Life Below Water” — calls for the conservation and sustainable use of oceans, seas, and marine resources.

Question Section (MCQs)

Q1. The 10th edition of the Indian Ocean Dialogue (IOD-10) was hosted in May 2026 by which country and city?

• (a) Mauritius — Port Louis
• (b) India — New Delhi
• (c) Sri Lanka — Colombo
• (d) UAE — Abu Dhabi

Q2. Consider the following statements about the Indian Ocean Rim Association (IORA):

• It was established in 1997.
• It has 23 member states.
• It is headquartered in Cyberjaya, Mauritius.

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. India is currently the Chair of IORA for the term:

• (a) 2023–25
• (b) 2024–26
• (c) 2025–27
• (d) 2026–28

Q4. The theme of IOD-10 (2026) was:

• (a) “Towards a Free, Open and Inclusive Indian Ocean”
• (b) “Indian Ocean Region in a Transforming World”
• (c) “Blue Economy for Shared Prosperity”
• (d) “Maritime Security in the Indo-Pacific Age”

Q5. What does the acronym MAHASAGAR, India’s expanded maritime vision, stand for?

• (a) Maritime Alliance for Holistic Action, Security and Growth Across Regions
• (b) Mutual and Holistic Advancement for Security and Growth Across Regions
• (c) Maritime Agenda for Harmony, Stability and Global Architecture for Regions
• (d) Maritime and Hydrographic Advancement for Strategic Growth Across Regions

Q6. The SAGAR doctrine of India, articulated in 2015, stands for:

• (a) Strategic Architecture for Growth and Asian Resilience
• (b) Security and Growth for All in the Region
• (c) Sovereignty, Autonomy and Growth for All Rim Nations
• (d) Sustainable Action for Geo-political and Regional Renewal

Q7. The IOD-10 was organised by the Ministry of External Affairs in collaboration with which of the following?

• Indian Council of World Affairs (ICWA)
• IORA Secretariat
• NITI Aayog
• World Bank

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

Q8. Consider the following statements about Union Minister Sarbananda Sonowal’s address at IOD-10:

• He highlighted that women’s participation in India’s maritime sector has surged by 340% since 2020.
• He holds the portfolio of Ports, Shipping and Waterways.
• He represented the Indian Council of World Affairs (ICWA).

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. The Bab-el-Mandeb Strait, frequently referenced in maritime security, connects:

• (a) Persian Gulf with the Gulf of Oman
• (b) Red Sea with the Gulf of Aden
• (c) Mediterranean Sea with the Red Sea
• (d) Bay of Bengal with the Andaman Sea

Q10. India’s role as a “Net Security Provider” in the Indian Ocean Region primarily refers to its capacity to:

• (a) Lead military alliances against major powers
• (b) Provide security, stability, and humanitarian assistance to regional partners
• (c) Monopolise trade routes in the IOR
• (d) Replace Western navies in the region

Answer Key with Explanations

▸ Q1 → (b) India — New Delhi

• The 10th edition of the Indian Ocean Dialogue (IOD-10) was hosted by India in New Delhi on 7–8 May 2026, during India’s chairship of IORA (2025–27).

▸ Q2 → (d) 1, 2 and 3

• All three statements are correct. IORA was established in 1997, currently has 23 member states, and is headquartered in Cyberjaya, Mauritius, with 12 dialogue partners.

▸ Q3 → (c) 2025–27

• India holds the chair of IORA for 2025–27, with Oman as the Vice-Chair, leading the regional agenda during this term.

▸ Q4 → (b) “Indian Ocean Region in a Transforming World”

• The theme of IOD-10 reflects the dynamic geopolitical, economic, and environmental shifts affecting the Indian Ocean Region in the contemporary world.

▸ Q5 → (b)

• MAHASAGAR stands for Mutual and Holistic Advancement for Security and Growth Across Regions — India’s expanded maritime cooperation vision, building on the earlier SAGAR doctrine of 2015.

▸ Q6 → (b) Security and Growth for All in the Region

• SAGAR stands for Security and Growth for All in the Region — articulated by the Prime Minister in 2015 during his visit to Mauritius, framing India’s maritime foreign policy for the IOR.

▸ Q7 → (a) 1 and 2 only

• IOD-10 was organised by the MEA in collaboration with the Indian Council of World Affairs (ICWA) and the IORA Secretariat. NITI Aayog and the World Bank were not organisers.

▸ Q8 → (a) 1 and 2 only

• Statements 1 and 2 are correct. Statement 3 is wrong — Sonowal represented the Government of India as Union Minister, not the ICWA (which is a think tank under the MEA).

▸ Q9 → (b) Red Sea with the Gulf of Aden

• The Bab-el-Mandeb Strait is a strategic chokepoint between Yemen and Djibouti/Eritrea, connecting the Red Sea to the Gulf of Aden — vital for global oil and trade routes.

▸ Q10 → (b)

• India’s role as a “Net Security Provider” in the IOR refers to its capacity to provide security, stability, and humanitarian assistance to regional partners — including anti-piracy operations, HADR missions, and capacity building of neighbouring navies.

2. India’s First Integrated CCUS Field Laboratory at IIT Bombay

Summary

• In May 2026, Union Minister Dharmendra Pradhan, Ministry of Education (MoE), inaugurated India’s first Integrated Carbon Capture, Utilisation and Storage (CCUS) field laboratory facility at Indian Institute of Technology, Bombay (IIT-B) in Mumbai, Maharashtra.
• The launch took place under the ‘Bharat Innovates 2026’ initiative.
• The facility is India’s first end-to-end pilot-scale platform integrating Carbon Capture and Utilisation (CCU) with Geological CO₂ Sequestration (GCS) in basalt formations.
• It includes the country’s first pilot-scale scientific drilling initiative to assess CO₂ storage potential in the Deccan Traps.
• The technology is being scaled up by UrjanovaC, a deep-tech venture incubated at the Society for Innovation & Entrepreneurship (SINE), IIT-Bombay.

Background & Concept

What is the Integrated CCUS Facility?

The Integrated CCUS (Carbon Capture, Utilisation and Storage) field laboratory at IIT Bombay is India’s first end-to-end pilot-scale facility for capturing carbon dioxide (CO₂), utilising it commercially, and storing it geologically. It is a major step in India’s transition towards net-zero emissions by 2070, as committed at COP26 (Glasgow, 2021).

The facility is launched under Bharat Innovates 2026, which showcases frontier Indian innovations in clean energy, deep-tech, and sustainability.

What is CCUS?

• CCUS stands for Carbon Capture, Utilisation and Storage — a suite of technologies that:
• Capture CO₂ at its source (industrial emissions) or from the atmosphere (Direct Air Capture).
• Utilise the captured CO₂ to produce valuable products like chemicals, fuels, building materials, or food-grade gases.
• Store the CO₂ safely and permanently underground in geological formations such as depleted oil/gas reservoirs, saline aquifers, or basalt rocks.
• CCUS is considered crucial for hard-to-abate sectors like steel, cement, petrochemicals, fertilisers, and power, where emissions reduction through electrification or renewables alone is insufficient.

Why CCUS in Basalt?

A unique feature of this facility is its focus on Geological CO₂ Sequestration (GCS) in basalt formations — particularly the Deccan Traps of western India. Basalt is rich in calcium, magnesium, and iron, which react with CO₂ to form stable carbonate minerals (a process called mineral carbonation) — locking away CO₂ permanently and safely.

The Deccan Traps (covering about 500,000 sq. km across Maharashtra, Gujarat, Madhya Pradesh, and parts of Karnataka) form one of the largest basalt provinces in the world, offering India a strategic geological advantage for long-term carbon storage.

About UrjanovaC and SINE, IIT Bombay:

The technology is being scaled up by UrjanovaC, a deep-tech start-up incubated at the Society for Innovation & Entrepreneurship (SINE) — IIT Bombay’s flagship technology business incubator established in 2004. UrjanovaC has been recognised as a leading start-up under Bharat Innovates 2026, reflecting the rising convergence between Indian academic research and clean-tech entrepreneurship.

Process and Applications:

The facility uses advanced aqueous-based CO₂ capture methods capable of capturing CO₂ from ambient air as well as industrial emissions. A key innovation is the use of non-potable water sources, including industrial effluents and seawater — making the process water-efficient and ecologically friendly.

The captured CO₂ is converted into high-purity carbonate and bicarbonate salts, which can be directly utilised across multiple industries:

• Steel and cement sectors — for low-carbon building materials.
• Petrochemicals — as feedstock in chemical processes.
• Pharmaceuticals — for high-purity chemical applications.
• This creates a circular carbon economy, turning emissions into economic value.

Significance:

The facility is a transformative step in India’s climate action and clean-tech innovation journey. It supports India’s commitments under the Panchamrit pledge (COP26), including:

500 GW non-fossil fuel capacity by 2030.

Reduction of carbon intensity of GDP by 45% by 2030.

Net Zero by 2070.

It also aligns with the Mission Innovation framework, the National Hydrogen Mission, and the Mission LiFE (Lifestyle for Environment) vision. By indigenising CCUS technologies, India reduces dependence on imported clean-tech, supporting Atmanirbhar Bharat and boosting the deep-tech start-up ecosystem.

Challenges:

CCUS technologies globally face challenges of high cost, energy intensity, scalability, monitoring & verification of stored CO₂, and public acceptance. The IIT Bombay facility’s success will depend on commercial viability, regulatory clarity, industry uptake, and long-term geological monitoring of the Deccan Traps storage sites.

Keywords & Definitions

• ▸ CCUS (Carbon Capture, Utilisation and Storage): A suite of technologies that capture CO₂ emissions from industrial sources or the atmosphere, utilise them in commercial products, and store them in geological formations.
• ▸ Carbon Capture and Utilisation (CCU): The capture and productive use of CO₂ in industrial applications — converting it into chemicals, fuels, building materials, or food-grade gases.
• ▸ Geological Carbon Sequestration (GCS): The long-term storage of CO₂ in underground geological formations such as depleted oil/gas reservoirs, saline aquifers, or basalt rocks.
• ▸ Mineral Carbonation: A natural and accelerated process in which CO₂ reacts with calcium- and magnesium-rich rocks like basalt to form stable carbonate minerals, permanently locking away CO₂.
• ▸ Direct Air Capture (DAC): A technology that removes CO₂ directly from the atmosphere, typically using chemical solvents or solid sorbents, regardless of the emission source.
• ▸ Deccan Traps: One of the largest basalt provinces in the world, covering about 500,000 sq. km in western and central India (Maharashtra, Gujarat, Madhya Pradesh, and parts of Karnataka), formed by massive volcanic eruptions around 66 million years ago.
• ▸ Basalt: A dark, fine-grained volcanic rock rich in calcium, magnesium, and iron — ideal for CO₂ mineralisation.
• ▸ IIT Bombay (IIT-B): A premier engineering and research institution in Mumbai, Maharashtra, established in 1958, and an Institute of Eminence.
• ▸ SINE (Society for Innovation & Entrepreneurship): IIT Bombay’s flagship technology business incubator, established in 2004, that supports deep-tech start-ups.
• ▸ UrjanovaC: A deep-tech start-up incubated at SINE, IIT Bombay, that develops and scales advanced CCUS technologies.
• ▸ Bharat Innovates 2026: An initiative showcasing India’s frontier innovations in clean energy, deep-tech, and sustainability.
• ▸ Ministry of Education (MoE): The nodal ministry of the Government of India for education policy and management, formerly known as the Ministry of Human Resource Development (MHRD) before its renaming in 2020.
• ▸ Net Zero by 2070: India’s commitment, announced at COP26 (Glasgow, 2021), to achieve net-zero greenhouse gas emissions by 2070.
• ▸ Panchamrit Pledge: India’s five climate commitments announced at COP26 (2021):
  • 500 GW non-fossil fuel capacity by 2030
  • 50% energy from renewables by 2030
  • Reduce projected emissions by 1 billion tonnes by 2030
  • Reduce carbon intensity of GDP by 45% by 2030
  • Net Zero by 2070
• ▸ Hard-to-Abate Sectors: Industries with high emissions that are difficult to decarbonise through electrification or renewables alone — including steel, cement, petrochemicals, fertilisers, aviation, and shipping.
• ▸ Aqueous-Based CO₂ Capture: A method of capturing CO₂ using water-based solvents that react with CO₂ and convert it into dissolved carbonate or bicarbonate forms.
• ▸ Non-Potable Water: Water not suitable for drinking, such as industrial effluents and seawater, increasingly used in industrial processes to conserve freshwater.
• ▸ Circular Carbon Economy: An economic model in which CO₂ emissions are captured, reused, recycled, and removed, creating a closed loop that transforms a pollutant into a resource.
• ▸ Mission Innovation: A global initiative of 23 countries and the European Commission, launched at COP21 (Paris, 2015), to accelerate clean energy innovation.
• ▸ Mission LiFE (Lifestyle for Environment): An India-led global initiative launched at COP26 (2021) that promotes sustainable lifestyles and mindful consumption.
• ▸ Atmanirbhar Bharat: The Government of India’s self-reliance vision aimed at strengthening domestic capabilities and reducing external dependence across sectors, including clean-tech.

Question Section (MCQs)

Q1. Consider the following statements about India’s first Integrated CCUS field laboratory facility launched in May 2026:

• It was inaugurated at IIT Bombay, Mumbai.
• It was inaugurated under the ‘Bharat Innovates 2026’ initiative.
• It is the first pilot-scale facility integrating Carbon Capture and Utilisation (CCU) with Geological CO₂ Sequestration.

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. What does CCUS stand for in the context of climate technology?

• (a) Carbon Compression, Use and Sequencing
• (b) Carbon Capture, Utilisation and Storage
• (c) Climate Control and Utility Systems
• (d) Coal Combustion, Use and Stabilisation

Q3. The Geological CO₂ Sequestration at the new facility is being undertaken in which geological formation?

• (a) Aravalli Range
• (b) Himalayan sedimentary basins
• (c) Deccan Traps (basalt formations)
• (d) Vindhyan sandstones

Q4. The Deccan Traps, one of the world’s largest basalt provinces, were formed approximately:

• (a) 66 million years ago
• (b) 200 million years ago
• (c) 2 million years ago
• (d) 500 million years ago

Q5. Consider the following statements about the technology behind the new CCUS facility:

• It uses advanced aqueous-based CO₂ capture methods.
• It can capture CO₂ from both ambient air and industrial emissions.
• It requires only freshwater for capture, ruling out the use of industrial effluents.

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. UrjanovaC, the deep-tech venture scaling up this CCUS technology, is incubated at which institution?

• (a) IIT Delhi
• (b) IIT Madras
• (c) IIT Bombay (SINE)
• (d) IISc Bengaluru

Q7. Which of the following sectors are mentioned as end-users of the high-purity carbonate and bicarbonate salts produced by the facility?

• Steel
• Cement
• Petrochemicals
• Pharmaceuticals

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

Q8. Which of the following are part of India’s Panchamrit pledge announced at COP26 (Glasgow, 2021)?

• 500 GW non-fossil fuel capacity by 2030
• 50% energy from renewables by 2030
• Net Zero by 2070
• Reduce carbon intensity of GDP by 45% by 2030

Select the correct answer using the code given below:

• (a) 1 and 2 only
• (b) 1, 2 and 3 only
• (c) 1, 3 and 4 only
• (d) 1, 2, 3 and 4

Q9. Mineral Carbonation, a key process in basalt-based CO₂ storage, involves:

• (a) Reaction of CO₂ with iron ore to form steel
• (b) Reaction of CO₂ with calcium- and magnesium-rich rocks to form stable carbonate minerals
• (c) Compression of CO₂ into liquid form for export
• (d) Mixing CO₂ with cement for industrial buildings

Q10. Which of the following are considered “hard-to-abate” sectors in climate policy?

• Steel
• Cement
• Aviation
• Pharmaceuticals

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

Answer Key with Explanations

▸ Q1 → (d) 1, 2 and 3

• All three statements are correct — the facility was inaugurated at IIT Bombay, under Bharat Innovates 2026, and is India’s first end-to-end pilot-scale platform integrating CCU with Geological CO₂ Sequestration.

▸ Q2 → (b) Carbon Capture, Utilisation and Storage

• CCUS stands for Carbon Capture, Utilisation and Storage — a suite of technologies that capture, use, and permanently store CO₂ to mitigate climate change.

▸ Q3 → (c) Deccan Traps (basalt formations)

• The facility’s Geological CO₂ Sequestration is being studied in the Deccan Traps, one of the largest basalt provinces in the world, which allow CO₂ to be mineralised into stable carbonates.

▸ Q4 → (a) 66 million years ago

• The Deccan Traps were formed around 66 million years ago by massive volcanic eruptions at the Cretaceous–Paleogene (K–Pg) boundary, often linked to the extinction of dinosaurs.

▸ Q5 → (a) 1 and 2 only

• Statements 1 and 2 are correct. Statement 3 is wrong — the technology specifically uses non-potable water sources, including industrial effluents and seawater, making it water-efficient and ecologically friendly.

▸ Q6 → (c) IIT Bombay (SINE)

• UrjanovaC is incubated at the Society for Innovation & Entrepreneurship (SINE) — IIT Bombay’s flagship technology business incubator.

▸ Q7 → (d) 1, 2, 3 and 4

• The captured CO₂ is converted into high-purity carbonate and bicarbonate salts for use in steel, cement, petrochemicals, and pharmaceuticals — covering a wide industrial spectrum.

▸ Q8 → (d) 1, 2, 3 and 4

• All four are part of the Panchamrit pledge announced at COP26 (Glasgow, 2021). The fifth element is “reducing total projected carbon emissions by 1 billion tonnes by 2030”.

▸ Q9 → (b)

• Mineral Carbonation involves the reaction of CO₂ with calcium- and magnesium-rich rocks like basalt to form stable carbonate minerals, permanently locking away CO₂ in solid form.

▸ Q10 → (b) 1, 2 and 3 only

• Steel, cement, and aviation are considered “hard-to-abate” sectors with high emissions and limited electrification options. Pharmaceuticals are not typically classified as a hard-to-abate sector — they are moderate-to-low emission industries.

Banking and Finance News

1. AU Small Finance Bank Launches Four New Credit Cards

Summary

• In May 2026, AU Small Finance Bank (AU SFB) launched a new portfolio of four credit cards: AU Ananta, AU Laksya, AU Tejas, and AU Prathama.
• The launch aims to strengthen AU SFB’s retail credit card business and cater to customers across different income and lifestyle segments in Tier-1 and Tier-2 cities.
• The portfolio includes an industry-first feature — enabling complimentary airport lounge access through flight bookings on the AU Rewardz platform.
• Each card targets a distinct customer segment, from affluent achievers (Ananta) to first-time credit users (Prathama).

Background & Concept

What is AU Small Finance Bank?

AU Small Finance Bank (AU SFB) is one of India’s leading Small Finance Banks (SFBs), headquartered in Jaipur, Rajasthan. It was incorporated in 1996 as a Non-Banking Financial Company (NBFC) named Au Financiers (India) Limited and was converted into a Small Finance Bank in April 2017 under the RBI’s SFB licensing framework.

AU SFB is the largest Small Finance Bank in India by asset size and market capitalisation and has rapidly expanded into retail banking, credit cards, and digital financial services.

What are Small Finance Banks (SFBs)?

Small Finance Banks are a category of niche banks in India, created under the RBI’s Small Finance Bank Licensing Framework (2014). Their primary objective is to provide basic banking services to unserved and underserved segments, including small businesses, marginal farmers, micro and small industries, and unorganised sector entities.

SFBs are required to ensure that at least 50% of their loan portfolio consists of loans up to ₹25 lakh, and they must extend 75% of their adjusted net bank credit (ANBC) to priority sectors.

Why This Launch Matters:

AU SFB’s launch of four new credit cards reflects a strategic deepening of its retail and consumer banking business. India’s credit card market has grown rapidly — driven by rising disposable incomes, digitisation, e-commerce growth, and the expansion of UPI–credit card linkage. As of early 2026, India has over 110 million credit cards in circulation, with strong growth in Tier-2 and Tier-3 cities.

The launch is also significant because it represents a non-traditional banking player (an SFB) entering a space historically dominated by large private and public sector banks.

The Four Credit Cards Explained:

• AU Ananta — Designed for affluent achievers, this is a premium card offering reward points, lounge access, milestone bonuses, insurance cover, and no-cost EMI on travel bookings. It targets high-income professionals and frequent travellers.
• AU Laksya — Designed for Gen Z and mid-career professionals, it offers reward points, grocery and food delivery discounts, Buy-One-Get-One (BOGO) movie tickets, lounge access, and zero-fee EMI conversions — built around lifestyle and entertainment spending.
• AU Tejas — Designed for young salaried customers, this card offers cashback on daily spending categories, welcome rewards, and bonus points for regular usage — positioning it as an everyday spending card.
• AU Prathama — Designed for first-time credit users, this is an entry-level card offering reward points, milestone incentives, fuel surcharge waivers, and benefits for responsible credit usage — aimed at building credit history for new-to-credit (NTC) customers.

The Industry-First Feature:

A unique highlight of the portfolio is the complimentary airport lounge access linked to flight bookings made through the AU Rewardz platform — a feature not currently available in the broader credit card market. This adds a travel-utility angle to the lounge access benefit, which is usually tied only to spending thresholds.

Strategic Significance:

The launch aligns with several major trends in Indian financial services:

• Financial Inclusion through Credit: AU SFB’s Prathama card targets first-time credit users, expanding formal credit access to underserved segments and helping build credit histories.
• Segmentation Strategy: The portfolio shows a clear segmentation — premium (Ananta), millennials/Gen Z (Laksya), young salaried (Tejas), and new-to-credit (Prathama).
• Tier-2 and Tier-3 Focus: With its deep distribution network in smaller cities, AU SFB is well-positioned to expand credit card penetration beyond metros.
• Competition for Large Banks: The launch signals that SFBs are emerging as competitive players in the retail consumer credit space, challenging incumbents like HDFC Bank, ICICI Bank, SBI Cards, and Axis Bank.

Challenges:

Credit card issuance involves credit risk, fraud risk, regulatory compliance, and customer acquisition costs. AU SFB will need to maintain prudent underwriting, competitive rewards economics, strong digital infrastructure, and robust grievance redressal to scale this business successfully.

Keywords & Definitions

• ▸ AU Small Finance Bank (AU SFB): A leading Small Finance Bank in India, headquartered in Jaipur, Rajasthan, established as an NBFC in 1996 and converted into an SFB in April 2017.
• ▸ Small Finance Bank (SFB): A category of niche banks in India, created under the RBI’s SFB Licensing Framework (2014), to extend basic banking services to unserved and underserved segments.
• ▸ Reserve Bank of India (RBI): India’s central bank, established in 1935, responsible for monetary policy, currency issuance, banking regulation, and the licensing of SFBs and other banks.
• ▸ Non-Banking Financial Company (NBFC): A financial institution that provides banking-like services without holding a full banking licence — regulated by the RBI.
• ▸ Priority Sector Lending (PSL): A regulatory requirement that mandates banks (including SFBs) to lend a specified portion of their credit to priority sectors like agriculture, MSMEs, education, and weaker sections.
• ▸ Credit Card: A payment card that allows users to borrow funds up to a pre-set limit to make purchases, with the obligation to repay later — usually within a billing cycle, with interest on outstanding balances.
• ▸ AU Rewardz: AU SFB’s rewards platform, where customers can redeem points for flight bookings, hotels, shopping, and other services — the platform that powers the industry-first lounge access feature.
• ▸ EMI (Equated Monthly Instalment): A fixed monthly payment made by a borrower to repay a loan or credit obligation — composed of both principal and interest components.
• ▸ No-Cost EMI: An EMI option where the buyer pays only the principal amount in instalments, while interest is borne by the merchant or bank through a discount equivalent.
• ▸ Cashback: A reward feature where a percentage of the spend amount is credited back to the cardholder’s account, typically as a statement credit or wallet credit.
• ▸ Reward Points: Points earned on credit card spends that can be redeemed for products, services, vouchers, flights, or hotel bookings.
• ▸ Milestone Bonus: Extra rewards or benefits unlocked when a cardholder crosses a specified spending threshold within a defined period.
• ▸ Airport Lounge Access: A privilege offered by credit cards that allows cardholders to use premium lounges at airports, typically with food, beverages, and Wi-Fi facilities.
• ▸ Buy-One-Get-One (BOGO): A promotional offer where a customer gets one product/ticket free on the purchase of another — commonly used for movie tickets, food, and retail offers.
• ▸ New-to-Credit (NTC): Customers who have never held formal credit products before — a key target segment for credit inclusion and credit history building.
• ▸ Tier-1, Tier-2, Tier-3 Cities: A classification used by the RBI and Census of India based on population size — Tier-1 are metros (Mumbai, Delhi, etc.), Tier-2 are mid-sized cities (e.g., Jaipur, Indore), and Tier-3 are smaller cities with population between 20,000–50,000.
• ▸ Retail Banking: A segment of banking that focuses on individual consumers rather than businesses — including savings accounts, personal loans, credit cards, and home loans.
• ▸ Credit Score: A numerical representation of a borrower’s creditworthiness, typically computed by credit bureaus like CIBIL, Experian, Equifax, and CRIF High Mark, ranging from 300 to 900.
• ▸ CIBIL Score: The credit score issued by TransUnion CIBIL — the most widely used credit bureau score in India.
• ▸ UPI–Credit Card Linkage: An RBI-enabled feature allowing credit cards (initially RuPay) to be linked to UPI, enabling credit-based UPI payments.

Question Section (MCQs)

Q1. Which of the following four credit cards was launched by AU Small Finance Bank in May 2026?

• Ananta
• Laksya
• Tejas
• Prathama

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

Q2. Consider the following statements about AU Small Finance Bank (AU SFB):

• It is headquartered in Jaipur, Rajasthan.
• It was originally incorporated as an NBFC in 1996 before being converted into an SFB in April 2017.
• It is regulated by the SEBI.

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. Small Finance Banks (SFBs) in India were established under the regulatory framework of:

• (a) SEBI
• (b) IRDAI
• (c) Reserve Bank of India (RBI)
• (d) PFRDA

Q4. Which of the four new AU SFB credit cards is designed specifically for first-time credit users?

• (a) Ananta
• (b) Laksya
• (c) Tejas
• (d) Prathama

Q5. The AU Ananta credit card primarily targets which customer segment?

• (a) First-time credit users
• (b) Young salaried customers
• (c) Gen Z and mid-career professionals
• (d) Affluent achievers and frequent travellers

Q6. Consider the following statements about Small Finance Banks (SFBs) in India:

• They are required to ensure that at least 50% of their loan portfolio consists of loans up to ₹25 lakh.
• They must extend 75% of their adjusted net bank credit (ANBC) to priority sectors.
• They primarily serve large corporates and multinational firms.

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

Q7. The industry-first feature introduced in the AU SFB credit card portfolio enables:

• (a) Free international transactions without forex markup
• (b) Complimentary airport lounge access through flight bookings on the AU Rewardz platform
• (c) Zero interest on all retail spends
• (d) Unlimited cashback with no upper cap

Q8. “No-Cost EMI”, a feature offered on the new AU SFB cards, can be best described as:

• (a) An EMI where interest is fully waived by the bank as a goodwill gesture
• (b) An EMI where the borrower pays only the principal, while interest is borne by the merchant or bank through a discount
• (c) An EMI scheme where no payments are required for the first six months
• (d) An EMI offered only to first-time credit users

Q9. “New-to-Credit (NTC)” customers refer to:

• (a) Customers who have never held formal credit products before
• (b) Customers who have defaulted on previous loans
• (c) Customers who frequently change banks
• (d) Customers belonging to rural areas only

Q10. CIBIL Score, often used in credit decisions, is issued by which credit bureau in India?

• (a) Experian
• (b) Equifax
• (c) TransUnion CIBIL
• (d) CRIF High Mark

Answer Key with Explanations

▸ Q1 → (d) 1, 2, 3 and 4

• All four cards — Ananta, Laksya, Tejas, and Prathama — were launched by AU Small Finance Bank in May 2026, each targeting a distinct customer segment.

▸ Q2 → (a) 1 and 2 only

• Statements 1 and 2 are correct. Statement 3 is wrong — AU SFB, like all banks, is regulated by the Reserve Bank of India (RBI), not SEBI (which regulates securities markets).

▸ Q3 → (c) Reserve Bank of India (RBI)

• Small Finance Banks (SFBs) were created under the RBI’s SFB Licensing Framework (2014) to extend basic banking services to unserved and underserved segments.

▸ Q4 → (d) Prathama

• The Prathama credit card is specifically designed for first-time credit users, offering reward points, milestone incentives, fuel surcharge waivers, and benefits for responsible credit usage to help build credit history.

▸ Q5 → (d) Affluent achievers and frequent travellers

• The AU Ananta card targets affluent achievers, offering premium travel and lifestyle benefits including lounge access, milestone bonuses, insurance cover, and no-cost EMI on travel.

▸ Q6 → (a) 1 and 2 only

• Statements 1 and 2 are correct. Statement 3 is wrong — SFBs are designed to serve small businesses, marginal farmers, micro and small industries, and unorganised sectors, not large corporates.

▸ Q7 → (b)

• The industry-first feature is complimentary airport lounge access linked to flight bookings made through the AU Rewardz platform — a benefit not currently offered by other credit card issuers.

▸ Q8 → (b)

• “No-Cost EMI” is an arrangement where the borrower pays only the principal in instalments, while the interest cost is absorbed by the merchant or bank through an upfront discount — there is no waiver of cost in absolute terms.

▸ Q9 → (a)

• New-to-Credit (NTC) customers are those who have never held a formal credit product (loan or credit card) before — making them a key segment for credit inclusion and credit history building.

▸ Q10 → (c) TransUnion CIBIL

• The CIBIL Score is issued by TransUnion CIBIL — the most widely used credit bureau score in India, with scores ranging from 300 to 900. The other three (Experian, Equifax, CRIF High Mark) issue their own credit scores.

2. RBI Cancels Licence of Mumbai-based Sarvodaya Co-operative Bank

Source: BS

Summary

• In May 2026, the Reserve Bank of India (RBI) cancelled the banking licence of Mumbai (Maharashtra)-based Sarvodaya Co-operative Bank Limited with effect from 12 May 2026.
• The action was taken under Sections 22(4) and 56 of the Banking Regulation Act, 1949.
• The licence was cancelled due to inadequate capital, weak earning prospects, inability to fully repay depositors, and non-compliance with capital adequacy and licensing requirements under Sections 11(1) and 22(3) of the Act.
• The RBI directed the Maharashtra Registrar of Co-operative Societies (RCS) to begin the winding-up process and appoint a liquidator.
• Depositors are protected up to ₹5 lakh per depositor under the DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover.

Background & Concept

What Happened?

The Reserve Bank of India (RBI) has cancelled the banking licence of Sarvodaya Co-operative Bank Limited, a Mumbai-based urban co-operative bank, effective 12 May 2026. The decision was taken because the bank’s financial condition had deteriorated to a point where its continuation would be prejudicial to depositor interests.

The RBI invoked Sections 22(4) and 56 of the Banking Regulation Act, 1949, which empower it to cancel a bank’s licence when it fails to comply with statutory requirements or fails to operate in a sound and prudent manner.

Reasons for Cancellation:

The cancellation was based on a combination of serious deficiencies:

• Inadequate Capital — The bank failed to maintain the minimum capital requirements prescribed under the Banking Regulation Act, indicating an erosion of its financial base.
• Weak Earning Prospects — Limited income-generating capacity and poor asset quality meant the bank had no viable path to restoring profitability.
• Inability to Fully Repay Depositors — The bank’s financial position was so weak that it could not honour the full repayment of its depositors’ funds if pressed to do so.
• Non-Compliance with Sections 11(1) and 22(3) — These provisions of the Banking Regulation Act set out minimum paid-up capital, reserves, and prudential conditions required for a bank to operate.

About Co-operative Banks:

• Co-operative Banks in India are financial institutions owned and run by their members on a co-operative basis. They are unique in being dually regulated — by the RBI (for banking-related functions under the Banking Regulation Act) and by the Registrar of Co-operative Societies (RCS) of the respective State (for management and administration).
• The Banking Regulation (Amendment) Act, 2020 strengthened RBI’s supervisory powers over co-operative banks, bringing them at par with commercial banks in matters of regulation.

Co-operative banks include:

• Urban Co-operative Banks (UCBs) — Operate in urban and semi-urban areas.
• State Co-operative Banks (StCBs) — Apex co-operative banks at the state level.
• District Central Co-operative Banks (DCCBs) — Intermediaries between StCBs and primary credit societies.
• Primary Agricultural Credit Societies (PACS) — Village-level co-operative credit institutions.
• Sarvodaya Co-operative Bank was a Tier-1 Urban Co-operative Bank (UCB) in Maharashtra.

Winding-Up Process:

The RBI has directed the Maharashtra Registrar of Co-operative Societies (RCS) to initiate the winding-up process and appoint a liquidator. The liquidator will:

Realise the assets of the bank.

Discharge liabilities as per the order of priority prescribed under law.

Distribute residual assets, if any, to shareholders/members.

The bank has been prohibited from accepting fresh deposits, repaying deposits, or conducting any banking business with effect from 12 May 2026.

Depositor Protection — DICGC:

The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the RBI, provides deposit insurance coverage of up to ₹5 lakh per depositor per bank. This limit, enhanced from ₹1 lakh to ₹5 lakh in 2020, includes both principal and interest on savings, current, fixed, and recurring deposits.

Under the DICGC (Amendment) Act, 2021, depositors of a distressed bank are entitled to receive their insured deposit amount within 90 days of the bank being placed under directions — a major reform that prevents long-term hardship for depositors of failed banks.

Significance of the Action:

The cancellation reflects:

• RBI’s Strict Supervisory Stance — The RBI has been proactively cleaning up weak co-operative banks to protect depositors and strengthen financial stability.
• Strengthened Powers Under the 2020 Amendment — The Banking Regulation (Amendment) Act, 2020 gave the RBI enhanced powers to supervise UCBs and intervene early.
• Investor Confidence — Decisive action helps maintain trust in the broader banking system.
• Lesson on Governance — Many co-operative banks have historically struggled with weak corporate governance, related-party lending, and political interference — issues that PMC Bank, Sarvodaya, and others have highlighted.

Reforms in the Co-operative Banking Sector:

• After the PMC Bank crisis (2019), several reforms were introduced:
• The Banking Regulation (Amendment) Act, 2020 brought UCBs under direct RBI supervision for banking operations.
• The DICGC (Amendment) Act, 2021 allowed time-bound insured deposit payouts.
• The RBI introduced a four-tiered regulatory framework for UCBs based on deposit size, with graded regulatory norms.
• A proposed Umbrella Organisation for UCBs is under consideration to provide liquidity and capital support.

Challenges in Co-operative Banking:

The sector continues to face challenges like weak governance, low capital base, dual regulation, fraud and related-party lending, declining trust, digital backwardness, and limited risk diversification. Strengthening these areas is critical to prevent failures and safeguard depositors.

Keywords & Definitions

• ▸ Sarvodaya Co-operative Bank: A Mumbai (Maharashtra)-based Urban Co-operative Bank (UCB) whose banking licence was cancelled by the RBI in May 2026 due to financial weakness and non-compliance with banking regulations.
• ▸ Reserve Bank of India (RBI): India’s central bank, established in 1935, responsible for monetary policy, currency issuance, banking regulation, and financial stability.
• ▸ Banking Regulation Act, 1949: The principal law governing banking companies and co-operative banks in India. It empowers the RBI to regulate, supervise, and even cancel licences of banks.
• ▸ Section 22 (Banking Regulation Act): The provision dealing with licensing of banking companies. Section 22(4) empowers the RBI to cancel a bank’s licence under specified conditions.
• ▸ Section 11(1) (Banking Regulation Act): Specifies the minimum paid-up capital and reserves required for a bank to commence and continue banking business.
• ▸ Section 22(3) (Banking Regulation Act): Lays down conditions a banking company must satisfy to obtain and retain a licence — including being solvent, having adequate capital, and operating in the public interest.
• ▸ Section 56 (Banking Regulation Act): A provision that applies the Banking Regulation Act to co-operative banks, with necessary modifications.
• ▸ Co-operative Bank: A financial institution owned and operated by its members on a co-operative basis, providing banking services to its members and the public.
• ▸ Urban Co-operative Bank (UCB): A type of co-operative bank that operates in urban and semi-urban areas, regulated jointly by the RBI and the Registrar of Co-operative Societies.
• ▸ Banking Regulation (Amendment) Act, 2020: A major amendment that strengthened RBI’s regulatory powers over co-operative banks, bringing them at par with commercial banks in supervisory matters.
• ▸ Registrar of Co-operative Societies (RCS): A state government authority responsible for the registration, regulation, and supervision of co-operative societies, including co-operative banks, in administrative matters.
• ▸ Liquidator: A person or entity appointed to wind up a company or bank, realise its assets, and distribute proceeds to creditors and members.
• ▸ Winding-Up: The legal process of closing down a company or bank, settling its liabilities, and distributing the remaining assets.
• ▸ Deposit Insurance and Credit Guarantee Corporation (DICGC): A wholly-owned subsidiary of the RBI, established in 1978 under the DICGC Act, 1961, that provides deposit insurance to bank depositors.
• ▸ DICGC Insurance Cover: Provides deposit insurance up to ₹5 lakh per depositor per bank (enhanced from ₹1 lakh in 2020), covering principal + interest on savings, current, fixed, and recurring deposits.
• ▸ DICGC (Amendment) Act, 2021: A landmark amendment that ensures depositors of a distressed bank can claim their insured deposits within 90 days, even before the bank is liquidated.
• ▸ Capital Adequacy: The minimum amount of capital a bank must maintain relative to its risk-weighted assets, ensuring it can absorb losses and honour depositor obligations.
• ▸ Capital Adequacy Ratio (CAR): Also called Capital-to-Risk-Weighted Assets Ratio (CRAR) — a regulatory ratio that measures a bank’s capital strength relative to its risk exposure.
• ▸ PMC Bank Crisis (2019): A major co-operative banking crisis in India that exposed deep governance failures in UCBs and led to regulatory reforms, including the Banking Regulation (Amendment) Act, 2020.
• ▸ Prejudicial to Depositors’ Interests: A regulatory ground under the Banking Regulation Act for cancelling a bank’s licence when its continued operation could harm depositors.
• ▸ Four-Tiered Regulatory Framework for UCBs: A regulatory structure introduced by the RBI in 2022, classifying UCBs into four tiers based on deposit size, with graded regulatory norms for capital, exposure, and governance.

Question Section (MCQs)

Q1. The banking licence of Sarvodaya Co-operative Bank was cancelled by the RBI in May 2026 under which sections of the Banking Regulation Act, 1949?

• (a) Sections 11 and 12
• (b) Sections 22(4) and 56
• (c) Sections 35A and 47
• (d) Sections 5 and 6

Q2. Consider the following statements about Sarvodaya Co-operative Bank:

• It is a Mumbai-based Urban Co-operative Bank.
• Its banking licence was cancelled with effect from 12 May 2026.
• The cancellation was based on inadequate capital, weak earnings, and non-compliance with banking regulations.

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 DICGC, which provides deposit insurance in India, is a wholly-owned subsidiary of:

• (a) Ministry of Finance
• (b) Reserve Bank of India (RBI)
• (c) Securities and Exchange Board of India (SEBI)
• (d) National Bank for Agriculture and Rural Development (NABARD)

Q4. The deposit insurance cover provided by DICGC is currently:

• (a) ₹1 lakh per depositor per bank
• (b) ₹2 lakh per depositor per bank
• (c) ₹5 lakh per depositor per bank
• (d) ₹10 lakh per depositor per bank

Q5. The DICGC insurance cover was enhanced from ₹1 lakh to ₹5 lakh in which year?

• (a) 2018
• (b) 2019
• (c) 2020
• (d) 2022

Q6. Consider the following statements about co-operative banks in India:

• They are dually regulated by the RBI and the Registrar of Co-operative Societies (RCS).
• The Banking Regulation (Amendment) Act, 2020 brought them at par with commercial banks for banking supervision.
• They primarily serve large industrial conglomerates.

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

Q7. Under the DICGC (Amendment) Act, 2021, depositors of a distressed bank are entitled to receive their insured deposit amount within:

• (a) 30 days
• (b) 60 days
• (c) 90 days
• (d) 180 days

Q8. Which of the following types of deposits are covered by DICGC’s insurance?

• Savings Deposits
• Current Deposits
• Fixed Deposits
• Recurring Deposits

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

Q9. The PMC Bank crisis (2019) is associated with which sector of banking?

• (a) Foreign banks
• (b) Regional Rural Banks
• (c) Urban Co-operative Banks (UCBs)
• (d) Payments Banks

Q10. The winding-up process of Sarvodaya Co-operative Bank has been directed to be initiated by the:

• (a) Reserve Bank of India
• (b) Maharashtra Registrar of Co-operative Societies (RCS)
• (c) Ministry of Finance
• (d) National Company Law Tribunal (NCLT)

Answer Key with Explanations

▸ Q1 → (b) Sections 22(4) and 56

• The licence was cancelled under Sections 22(4) and 56 of the Banking Regulation Act, 1949. Section 22(4) empowers the RBI to cancel a bank’s licence, while Section 56 extends the Act to co-operative banks with necessary modifications.

▸ Q2 → (d) 1, 2 and 3

• All three statements are correct — Sarvodaya is a Mumbai-based UCB, its licence was cancelled w.e.f. 12 May 2026, and the action was based on inadequate capital, weak earnings, and non-compliance with statutory requirements.

▸ Q3 → (b) Reserve Bank of India (RBI)

• The DICGC is a wholly-owned subsidiary of the RBI, established in 1978 under the DICGC Act, 1961, to provide deposit insurance to bank depositors.

▸ Q4 → (c) ₹5 lakh per depositor per bank

• The current DICGC insurance cover is ₹5 lakh per depositor per bank, covering principal + interest on savings, current, fixed, and recurring deposits.

▸ Q5 → (c) 2020

• The DICGC insurance cover was enhanced from ₹1 lakh to ₹5 lakh in 2020, following the PMC Bank crisis, as part of efforts to strengthen depositor protection.

▸ Q6 → (a) 1 and 2 only

• Statements 1 and 2 are correct. Statement 3 is wrong — co-operative banks primarily serve small businesses, MSMEs, individuals, farmers, and weaker sections, not large industrial conglomerates.

▸ Q7 → (c) 90 days

• Under the DICGC (Amendment) Act, 2021, depositors of a distressed bank are entitled to receive their insured deposit amount within 90 days of the bank being placed under directions.

▸ Q8 → (d) 1, 2, 3 and 4

• All four — Savings, Current, Fixed, and Recurring Deposits — are covered under DICGC insurance, including both principal and interest, up to the ₹5 lakh limit per depositor per bank.

▸ Q9 → (c) Urban Co-operative Banks (UCBs)

• The PMC (Punjab and Maharashtra Co-operative) Bank crisis (2019) was a major scandal in the Urban Co-operative Banking sector that exposed deep governance failures and led to regulatory reforms, including the Banking Regulation (Amendment) Act, 2020.

▸ Q10 → (b) Maharashtra Registrar of Co-operative Societies (RCS)

• The RBI has directed the Maharashtra Registrar of Co-operative Societies (RCS) to initiate the winding-up process and appoint a liquidator, as co-operative banks are dually regulated — by the RBI for banking and by the RCS for co-operative administration.

One Current Affairs

May 14, 2026

Sector	Event	Key Highlights
Rural Development	VB-G RAM G Act, 2025 notified	Ministry of Rural Development (MoRD) announced implementation of the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act from July 1, 2026, replacing MGNREGA. Employment guarantee increased from 100 to 125 days annually with focus on water security, rural infrastructure, livelihood creation, and climate resilience.
Banking & Finance	Bharat Maritime Insurance Pool (BMIP) launched	Department of Financial Services (DFS), Ministry of Finance launched USD 1.5 billion BMIP with sovereign guarantee of USD 1.4 billion to provide maritime insurance coverage for Indian vessels operating in high-risk international waters.
International Affairs	India hosts 10th Indian Ocean Dialogue	India hosted IOD-10 in New Delhi under the theme “Indian Ocean Region in a Transforming World” as current chair of the Indian Ocean Rim Association (IORA) for 2025–27.
Science & Technology	India’s first Integrated CCUS facility inaugurated	Union Minister Dharmendra Pradhan inaugurated India’s first Integrated Carbon Capture, Utilisation and Storage (CCUS) field laboratory at Indian Institute of Technology Bombay during Bharat Innovates 2026.
Economy & Rural Development	India and IFAD launch COSOP 2026–2033	Government of India and International Fund for Agricultural Development launched an 8-year strategy to promote inclusive and climate-resilient rural development aligned with Viksit Bharat@2047.
Health & Pharmaceuticals	IPC signs MoUs with pharmacy councils	Indian Pharmacopoeia Commission signed MoUs with Bihar, Maharashtra, and Mizoram State Pharmacy Councils to strengthen pharmacovigilance, ADR monitoring, and rational drug use.
Cybersecurity & AI	I4C and RBIH sign MoU	Indian Cyber Crime Coordination Centre and Reserve Bank Innovation Hub partnered to strengthen AI-based detection of mule accounts and cyber financial frauds using systems like MuleHunter.ai.
Digital Governance	NeGD felicitates states for DigiLocker integration	National e-Governance Division (NeGD) honoured Gujarat, Karnataka, Keralam, Nagaland, and Rajasthan for outstanding DigiLocker integration initiatives and digital governance services.
Space & Science	Kuljeet Kaur Marhas elected Fellow of Meteoritical Society	Kuljeet Kaur Marhas became the first Indian woman elected Fellow of the Meteoritical Society for 2026, recognising contributions to planetary science and meteoritics.
Appointments	Himanta Biswa Sarma sworn in again as Assam CM	Himanta Biswa Sarma became the first non-Congress leader in Assam to serve two consecutive terms as Chief Minister.
Industry & Business	CII elects new leadership for 2026–27	Confederation of Indian Industry elected R Mukundan as President, Suchitra Ella as President-Designate, and Shashwat Goenka as Vice President.
Weather & AI	AI-powered weather forecasting systems launched	Union MoS Dr. Jitendra Singh launched AI-driven monsoon forecasting and high-resolution rainfall prediction systems developed by IMD, IITM Pune, and NCMRWF.
Sports	Faustino Oro becomes second-youngest chess Grandmaster	Faustino Oro achieved Grandmaster title at age 12 years, 6 months, and 26 days, becoming the second-youngest GM in chess history.
Important Days	International Nurses Day 2026 observed	International Nurses Day was observed globally on May 12, 2026, with theme “Our Nurses. Our Future. Empowered Nurses Save Lives”. President Droupadi Murmu presented National Florence Nightingale Awards to 15 nursing personnel.