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  • Home Ministry Sends 290 Takedown Notices Daily

    Why in News

    Union Home Ministry issued average 290 online content takedown notices per day under Information Technology Act 2000, indicating rise in online regulation and cybersecurity threats.

    Key Highlights

    • 1,11,185 suspicious online content blocked in 2024 to 25
    • 290 takedown notices per day issued by Home Ministry
    • Social media platforms must remove content within 3 hours
    • Sharp rise in cybersecurity incidents reported

    Legal Provision

    Section 79 of Information Technology Act 2000

    Section 79(1)

    • Provides Safe Harbour Protection
    • Platforms not liable for user generated content

    Section 79(3)(b)

    • Safe harbour removed if
    • Platform fails to remove flagged unlawful content
    • Government can issue takedown notices

    Nodal Agency

    Indian Cyber Crime Coordination Centre I4C

    • Designated on March 13, 2024
    • Empowered to issue takedown notices
    • Functions under Ministry of Home Affairs

    Sahyog Portal

    • Centralised portal for sending takedown notices
    • Police agencies across India can issue requests
    • Used to coordinate with social media platforms

    3 Hour Rule

    Social media platforms must Remove unlawful content Within 3 hours of receiving order. Order may come from Court, Government agency, and Law enforcement

    Rise in Cybersecurity Incidents

    • According to CERT In
      • 2021: 14.02 lakh incidents
      • 2022: 13.91 lakh incidents
      • 2023: 15.92 lakh incidents
      • 2024: 20.41 lakh incidents
      • 2025: 29.44 lakh incidents
    • Highest incidents reported from National Capital Territory of Delhi

    What is CERT In

    Indian Computer Emergency Response Team

    • National cybersecurity agency
    • Established under Section 70B of IT Act 2000
    • Functions under Ministry of Electronics and IT

    Functions
    • Track cyber threats
    • Issue alerts
    • Incident response
    • Cybersecurity coordination

    [2017] In India, it is legally mandatory for which of the following to report on cyber security incidents?
    1 Service providers 
    2 Data Centres 
    3 Body corporate 
    Select the correct answer using the code given below: 
    (a) 1 only (b) 1 and 2 only (c) 3 only (d) 1, 2 and 3
  • US Jury Verdicts Against Meta and Google Raise Questions Over Tech Liability Shield

    Why in News

    US juries held Meta and Google liable in lawsuits related to harm caused to children, potentially challenging legal protections under Section 230 of US law.

    Key Verdicts

    California Case

    • Los Angeles jury found Meta and Google liable
    • Harm caused: Depression and suicidal thoughts
    • Platforms involved: Instagram and YouTube
    • Compensation ordered: $6 million

    New Mexico Case

    • Jury found Meta liable
    • Allegation: Misleading about child safety
    • Issue: Sexual exploitation risks on platform
    • Compensation ordered: $375 million

    What is Tech Liability Shield

    • Tech Liability Shield refers to legal protection given to technology platforms such as social media companies so they are not held responsible for user generated content.
    • This protection mainly comes from Section 230 of the Communications Decency Act 1996 in the United States.

    Section 230 Tech Liability Shield

    Section 230 states

    • Online platforms are not treated as publishers
    • Platforms not liable for user posted content
    • Companies protected from lawsuits over user activity

    Often called The law that built the internet

    [2019] Which of the following adopted a law on data protection and privacy for its citizens known as ‘General Data Protection Regulation’ (GDPR) in April 2016 and started implementation of it from 25th May, 2018? 
    (a) Australia (b) Canada (c) The European Union (d) The United States of America
  • Immigration Visa Foreigners Registration and Tracking Scheme IVFRT

    Why in News

    Union Cabinet approved extension of Immigration Visa Foreigners Registration and Tracking Scheme (IVFRT) for five years till 2031 with ₹1800 crore budget outlay to modernise India’s immigration system and strengthen security.

    What is IVFRT Scheme

    • Centralised immigration management system
    • Integrates visa issuance, immigration clearance and foreigner registration
    • Implemented by Ministry of Home Affairs
    • Managed by Bureau of Immigration
    • Covers airports, seaports and land immigration posts

    Background

    • Approved in 2010
    • Initial budget ₹1011 crore
    • Aims to digitise immigration and visa processes
    • Now extended to strengthen new immigration framework

    Why Extension is Needed

    1. New Immigration Law 2025

    • Immigration and Foreigners Act 2025 enacted
    • Need for modernised immigration tracking
    • Strengthening foreigner monitoring system

    2. Rising Illegal Migration

    • Tracking overstaying foreigners
    • Monitoring visa misuse
    • Addressing human trafficking networks
    • Strengthening border management

    3. Increasing International Travel

    • Growth in tourism and business travel
    • Need for faster immigration clearance
    • Efficient passenger management

    Key Features of IVFRT

    • Online visa application system
    • Biometric based identification
    • Real time tracking of foreigners
    • Integrated immigration database
    • Automated alerts and risk assessment
    • Contactless visa and immigration process

    [2021] With reference to India, consider the following statements: 
    1 There is only one citizenship and one domicile. 
    2 A citizen by birth only can become the Head of State. 
    3 A foreigner, once granted citizenship, cannot be deprived of it under any circumstances. 
    Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) 1 and 3 (d) 2 and 3
  • Antibiotic Resistance Fuels 87 Percent of India’s Typhoid Economic Burden

    Why in News

    A study published in The Lancet Regional Health Southeast Asia (2026) found that antibiotic resistant typhoid infections accounted for 87 percent of India’s typhoid economic burden in 2023.

    Key Findings

    • Total economic burden of typhoid in India: ₹123 billion
    • Antibiotic resistant typhoid share: 87 percent
    • Children under 10 years contributed to over 50 percent of costs
    • Households bore 91 percent of total expenses
    • Around 70,000 families faced catastrophic health expenditure

    High Burden States

    • Five states accounted for 51 percent of national burden
    • Maharashtra, Uttar Pradesh, Andhra Pradesh including Telangana, Tamil Nadu, and West Bengal

    What is Typhoid

    • Bacterial infectious disease
    • Caused by Salmonella Typhi
    • Spread through contaminated food and water
    • Linked to poor sanitation and unsafe drinking water

    What is Antibiotic Resistance

    • Bacteria develop resistance to antibiotics
    • Medicines become less effective
    • Treatment becomes longer and more expensive
    • Higher risk of complications

    [2019] Which of the following are the reasons for the occurrence of multi-drug resistance in microbial pathogens in India? 1 Genetic predisposition of some people. 2 Taking incorrect doses of antibiotics to cure diseases. 3 Using antibiotics in livestock farming. 4 Multiple chronic diseases in some people. Select the correct answer using the code given below: (a) 1 and 2 (b) 2 and 3 only (c) 1, 3 and 4 (d) 2, 3 and 4
  • India’s Power Demand Hits Five Year High in Early 2026

    Why in News

    India recorded highest electricity demand in five years during January February 2026, driven by unusual winter weather patterns, cold spells and early heat conditions.

    Key Data

    January 2026

    • Electricity demand: 143 Billion Units
    • January 2025: 136 Billion Units
    • Peak demand: 245.4 GW
    • January 2022 peak: 193 GW
    • Five year increase: Nearly 28 percent

    February 2026

    • Electricity demand: 133 Billion Units
    • Peak demand: 244 GW
    • Highest February demand in five years
    • Nearly equal to summer demand

    Long Term Trend

    • January demand increased 28 percent since 2022
    • February demand increased 23 percent since 2022
    • Peak load increased 26 to 27 percent
    • Indicates structural growth in electricity demand

    [2025] Consider the following statements: 
    1 Carbon dioxide (CO 2 ​ ) emissions in India are less than 0.5 t CO 2 ​ /capita. 
    2 In terms of CO 2 ​ emissions from fuel combustion, India ranks second in Asia-Pacific region.
    3 Electricity and heat producers are the largest sources of CO 2 ​ emissions in India. 
    Which of the statements given above is/are correct? (a) 1 and 3 only (b) 2 only (c) 2 and 3 only (d) 1, 2 and 3
  • [26th March 2026] The Hindu OpED: An energy transition driven by ethics

    PYQ Relevance[UPSC 2022] Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective? Explain.Linkage: The PYQ tests understanding of energy transition feasibility, subsidy rationalisation, and policy-driven decarbonisation in India. It reflects the article’s core theme of fossil vs renewable trade-off and economic constraints, highlighting how pricing and subsidies influence the pace of transition.

    Mentor’s Comment

    The article critically examines the ethical foundations of the global energy transition, arguing that the shift from fossil fuels to renewables is not merely technological or economic but deeply geopolitical and moral. It highlights how fossil fuel dependence threatens sovereignty, while renewable energy introduces new vulnerabilities through mineral dependencies, especially on China, raising questions of justice, timing, and strategic autonomy for countries like India.

    Why does fossil fuel dependence threaten national sovereignty?

    1. Energy Vulnerability: Exposes economies to geopolitical shocks such as Strait of Hormuz disruptions, affecting supply continuity.
    2. Import Dependence: India relies on ~60% crude imports from West Asia, increasing external vulnerability.
    3. Economic Instability: Supply disruptions lead to price volatility and fiscal stress.
    4. Industrial Risk: Abrupt transition without alternatives risks industrial slowdown or collapse.

    Are renewables truly immune to geopolitical risks?

    1. Non-Embargoable Energy: Solar and wind energy cannot be blockaded once infrastructure is installed.
    2. Dependence Shift: Reliance shifts from fuels to critical minerals like lithium, cobalt, rare earths.
    3. Supply Chain Concentration: China processes ~60% lithium, 70% cobalt, 90% rare earth elements, creating new vulnerabilities.
    4. Industrial Linkages: Minerals required across sectors, from consumer electronics to defence systems.

    How do critical minerals reshape global power dynamics?

    1. Resource Concentration: Mining concentrated in DR Congo (cobalt), Australia (lithium), Chile (lithium).
    2. Processing Monopoly: China dominates global refining and processing capacity.
    3. Strategic Competition: Potential for conflicts over mineral-processing hubs.
    4. Trade Realignment: Countries may reshore mining and processing capacities to reduce dependence.

    Does the energy transition involve economic trade-offs?

    1. High Capital Cost: Renewables require significant upfront investment.
    2. Payback Period: Offshore wind projects may take ~15 years, reduced to 4–5 years if fossil prices rise by 50%.
    3. Oil Price Effect: Cheap oil reduces incentives for renewable adoption.
    4. Transition Timing: Premature fossil exit without alternatives risks economic instability.

    What are the implications for India’s energy strategy?

    1. Gradual Transition: Allows continued use of domestic coal and affordable gas during transition.
    2. Energy Security: Stable fossil supply can ensure industrial growth continuity.
    3. Forced Acceleration: Supply shocks like Hormuz blockade could compel rapid renewable investment.
    4. Balanced Approach: Combines energy access, affordability, and sustainability.

    Is the energy transition ultimately an ethical question?

    1. Moral Imperative: Transition should prioritize planetary sustainability over short-term economics.
    2. Environmental Costs: Mining impacts, lithium extraction damage, Congo cobalt human rights issues.
    3. Equity Concerns: Developing nations face disproportionate transition burdens.
    4. Fear vs Ethics: Policy decisions should not be driven by fear narratives but ethical commitments. 

    Conclusion

    The energy transition is not a linear shift from fossil fuels to renewables but a complex restructuring of global power, economics, and ethics. A balanced approach integrating energy security, mineral strategy, and ethical considerations is essential for sustainable and sovereign development.

  • What is mineral water and how does it naturally contain dissolved minerals?

    Why in the News?

    There is a growing misconception around mineral water versus treated tap water. The issue has gained attention due to rising dependence on bottled water driven by distrust in public water supply systems, despite the fact that mineral content varies widely and is not always superior. It marks a sharp contrast between natural mineral acquisition over centuries versus artificial purification processes, raising concerns about over-commercialisation of water, regulatory gaps, and public misconceptions.

    How does mineral water naturally acquire dissolved minerals?

    1. Geological Interaction: Ensures dissolution of minerals like calcium, magnesium, and silica as water percolates through rocks such as limestone, granite, and basalt.
    2. Pressure Mechanism: Facilitates upward movement of mineral-rich groundwater due to underground pressure.
    3. Time Factor: Supports mineral enrichment over decades or centuries, unlike artificially treated water.
    4. Natural Reservoirs: Includes aquifers and springs protected from contamination.

    How is mineral water fundamentally different from tap water?

    1. Source Variation: Ensures mineral water originates from protected underground sources, while tap water is sourced from rivers and borewells.
    2. Treatment Process: Supports minimal processing for mineral water versus extensive filtration and chlorination for tap water
    3. Chemical Composition: Maintains stable mineral content in mineral water; tap water composition varies regionally
    4. Residual Chlorine: Introduces disinfectants in tap water, absent in natural mineral water.

    How is mineral water packaged and regulated in India and globally?

    1. Regulatory Bodies: Includes Food and Drug Administration, European Parliament, and Food Safety and Standards Authority of India.
      1. In the US and EU, the BIS standard 13428 required water TDS and relative proportions of various minerals to be stable over time and across producer batches.
      2. Producers are also prohibited from treating the water to change its mineral composition, and instead are only allowed to filter or decant it, aerate it and sterilise it. 
      3. Chemical decontamination, such as by adding chlorine, is also disallowed.
    2. Mandatory certification in India: Unlike many food products in India, mineral water requires Mandatory certification.
      1. To sell mineral water, producers must have both an FSSAI license and a BIS certificate and every bottle must carry the isi mark (acc to IS 13428)
      2. Labeling Norms: The FSSAI also requires the bottle to be labelled with the location and the name of the source and level of various minerals, and disallows the packager from claiming the water has any medicinal or healing properties.

    How is mineral water packaged?

    1. Source-based Bottling: Ensures mineral water is bottled directly at or near the natural source, preventing contamination and preserving its original mineral composition.
    2. Particulate Removal: Facilitates removal of physical impurities (e.g., sediments) without altering the natural mineral content.
    3. Non-chemical Disinfection: Uses ultraviolet (UV) light treatment to eliminate pathogens while maintaining chemical integrity of water.
    4. Controlled Storage: Stores water in tanks before packaging under hygienic conditions to maintain purity.
    5. Packaging Materials: Utilises glass bottles, PET bottles, and aluminium cans for storage and transport.
    6. Chemical Inertness (Glass): Ensures no reaction with water, maintaining original composition.
    7. Plastic Interaction (PET): Allows minor leaching over time, especially under heat or prolonged storage.
    8. Sealed Packaging: Ensures tamper-proof containers to avoid post-treatment contamination during distribution. 

    What are the effects of dissolved minerals on human health and water quality?

    1. Calcium & Magnesium: Strengthens bone health; increases water hardness (e.g., scaling in kettles).
      1. High calcium levels render a smooth or slightly chalky sensation while magnesium introduces a subtle bitterness
    2. Bicarbonates: Neutralises acidity; improves taste profile (gives water an almost sweet finish).
    3. Sulphates & Sodium: Sulphates are associated with magnesium rich spring and add a slightly crisp taste and sodium imparts a faint saline note.
    4. TDS (Total Dissolved Solids): Determines water interaction with environment and human body; varies from 500-2000 mg/L in India.
    5. Digestive Impact: Supports digestion through bicarbonates.

    What are the other types of water?

    1. Packaged Drinking Water: Refers to water sourced from surface or groundwater, treated using reverse osmosis, distillation, or deionisation, and may undergo remineralisation before packaging.
    2. Tap Water (Municipal Water): Refers to water supplied through public systems, sourced from rivers, lakes, or borewells, and treated through filtration and chlorination, including double chlorination in some regions to ensure microbial safety.
    3. Distilled/Demineralised Water: Refers to water from which all dissolved minerals are removed, making it unsuitable for regular consumption and mainly used for industrial purposes.
    4. Deionised Water (Industrial Water): Refers to water treated using ion exchange processes to remove calcium, magnesium, and other ions, commonly used in industrial and laboratory applications
    5. Hard Water: Refers to water with high concentrations of calcium and magnesium, leading to scaling in utensils and pipelines.
    6. Soft Water: Refers to water with low mineral content, typically found in high rainfall regions or non-calcareous geological areas.

    Why is distilled or demineralised water not suitable for regular consumption?

    1. Nutrient Deficiency: Removes essential minerals required for physiological functions.
    2. Chemical Reactivity: Increases potential to leach metals or contaminants from containers.
    3. Industrial Utility: Used in boilers and cooling systems rather than drinking.

    How is tap water treated in India and what challenges persist?

    1. Disinfection Practices: Ensures pathogen removal through chlorination, especially in tropical regions.
    2. Double Chlorination: Applies in some regions, increasing residual chlorine levels.
    3. Infrastructure Issues: Leads to contamination via leakages and sewage mixing
    4. Regional Variation: Hard water in Rajasthan, Gujarat; soft water in Himalayan and coastal regions.
    5. Regulatory Limits: Caps TDS at 500 mg/L (extendable to 2000 mg/L if no alternative source exists).

    What explains regional variations in water quality across India?

    1. Geological Factors: Determines mineral content based on rock type.
    2. Aquifer Characteristics: Influences hardness (chalk aquifers lead to hard water).
    3. Rainfall Patterns: High rainfall regions (Kerala, Mumbai) yield softer water.
    4. Urban Infrastructure: Affects contamination levels in cities. 

    Conclusion

    The distinction between mineral water and tap water extends beyond composition to issues of governance, equity, and scientific awareness. Ensuring safe, reliable, and affordable drinking water requires strengthening public infrastructure rather than increasing dependence on commercial alternatives.

    PYQ Relevance

    [UPSC 2023] Why is the world today confronted with a crisis of availability of and access to freshwater resources?

    Linkage: The PYQ tests understanding of water scarcity, quality, and regional disparities in access to potable water under GS1 (Water Management). The article explains variation in water quality (TDS, hardness) and reliance on bottled water due to unsafe tap supply, reflecting the broader crisis of access and safe availability.

  • What is at stake at the WTO’s MC14

    Why in the News?

    The 14th Ministerial Conference (MC14) of the World Trade Organisation (WTO), to be held in Yaoundé (Cameroon), gains urgency as global trade multilateralism faces an existential crisis. For the first time, the WTO’s dispute settlement system remains paralysed, largely due to the U.S. blocking Appellate Body appointments. Simultaneously, contentious issues like the e-commerce moratorium and push for plurilateral agreements highlight deep divisions between developed and developing countries. This all makes MC14 a decisive moment for the future of global trade governance.

    What structural factors are weakening WTO-led trade multilateralism?

    1. Geopolitical Rivalry: Intensifies U.S.-China tensions, reducing cooperation in global trade governance.
    2. Unilateralism: Undermines WTO rules through tariff impositions and coercive bilateral deals.
    3. Most Favoured Nation (MFN) Principle Violation: Weakens non-discrimination norms, especially by major economies like the U.S.
    4. Institutional Paralysis: Blocks Appellate Body appointments, disabling dispute resolution mechanism.
    5. Trade Fragmentation: Promotes regional and bilateral Free Trade Agreements (FTAs) over global consensus-based frameworks.

    Why is the WTO dispute settlement system facing a crisis?

    1. Appellate Body Paralysis: Prevents final adjudication of trade disputes due to U.S. obstruction.
    2. Legal Vacuum: Creates uncertainty in enforcement of WTO rules
    3. Power Asymmetry: Allows stronger nations to bypass rules without consequences
    4. Erosion of Trust: Reduces credibility of WTO as an impartial dispute resolution body
    5. Systemic Breakdown: Disrupts core function of WTO as rule-enforcing institution

    Are plurilateral agreements a solution or a threat to WTO’s framework?

    1. Plurilateral Agreements: Include select members; bypass consensus requirement
    2. Examples:
      1. Joint Statement Initiative (JSI) on E-commerce: Covers over 80 countries; develops rules on digital trade (data flows, source code protection); excludes many developing countries like India; This raises concerns of digital rule-making without universal participation.
      2. Investment Facilitation for Development (IFD) Agreement: Negotiated among willing members to streamline investment procedures; improves ease of doing business but remains outside multilateral consensus; This risks creating parallel frameworks
      3. Agreement on Government Procurement (GPA): A long-standing plurilateral pact; ensures transparent and non-discriminatory public procurement among signatories; This benefits members but excludes non-signatories from market access
      4. Information Technology Agreement (ITA): Eliminates tariffs on IT products among participating members; boosts global value chains but limits tariff policy space for non-participants
      5. Environmental Goods Agreement (EGA) (proposed): Aims to reduce tariffs on green goods; negotiations among select countries; This may sideline developing country priorities
    3. Flexibility Advantage: Enables faster negotiations on emerging issues like digital trade
    4. Inclusivity Deficit: Excludes developing countries from decision-making processes
    5. Fragmentation Risk: Creates parallel trade regimes within WTO framework
    6. Pandora’s Box Concern: May weaken multilateralism permanently by legitimizing selective rule-making

    Why is the e-commerce moratorium a contentious issue?

    The WTO e-commerce moratorium is a standing agreement among WTO members to not impose customs duties on electronic transmissions. Established in 1998, this moratorium ensures that digital products like software, music, and films remain free from tariffs at border crossings, fostering a stable environment for digital trade. It is regularly renewed and currently set to last until March 31, 2026

    1. Revenue Loss Concern: Reduces tariff income for developing countries like India
    2. Digital Divide: Benefits developed nations with strong digital economies
    3. Policy Space Constraint: Limits ability of developing nations to regulate digital trad
    4. Permanent vs Temporary Debate: Developed countries seek continuation; developing nations oppose.

    How does Special and Differential Treatment (SDT) shape developing countries’ concerns?

    Special and Differential Treatment (SDT) provisions in the World Trade Organization (WTO) give developing and least-developed countries (LDCs) special rights, longer timeframes for implementing agreements, and measures to increase trade opportunities. These provisions allow developed members to treat developing nations more favorably to help them integrate into the global trading system

    1. Equity Principle: Recognizes unequal economic capacities
    2. Dilution Attempts: Developed nations aim to restrict SDT benefits for emerging economies
    3. Exclusion Risk: Countries like India, China, Brazil may lose preferential treatment
    4. Developmental Impact: Reduces policy flexibility for industrial growth and protection

    What strategic role should India play at MC14?

    1. Multilateral Leadership: Reasserts commitment to WTO-based global trade order
    2. Coalition Building: Strengthens alliances with developing countries
    3. Opposition to Plurilateralism: Prevents fragmentation of trade governance
    4. Appellate Body Restoration: Pushes for revival of dispute settlement system
    5. Alternative Solutions: Explores voting-based appointments to overcome consensus deadlock

    Conclusion

    MC14 represents a critical inflection point for the WTO. The choice lies between restoring a rules-based multilateral order or transitioning towards fragmented, power-driven trade arrangements. The outcome will shape the future of global economic governance, particularly for developing countries.

    PYQ Relevance

    [UPSC 2018] What are the key areas of reform if the WTO has to survive in the present context of ‘Trade War’, especially keeping in mind the interest of India?

    Linkage: It tests WTO reform agenda amid trade wars, including dispute settlement crisis, multilateral breakdown, and rise of plurilateralism. It directly connects to MC14 issues, Appellate Body paralysis, e-commerce moratorium, and India’s stance against plurilateral agreements to protect developing country interests.

  • Death of Winter in Kashmir: Shrinking Snowfall and Himalayan Climate Crisis

    Why in News

    • A Down To Earth report (March 2026) highlighted that Kashmir has recorded seven consecutive winters with below normal snowfall.  

    Key Findings

    Declining Snowfall

    • Seven consecutive winters with below normal snowfall
    • Winter 2025 to 26 precipitation:
      • Actual: 100.6 mm
      • Normal: 284.9 mm
      • Deficit: 65 percent

    February 2026 Rainfall

    • Actual rainfall: 14.2 mm
    • Normal rainfall: 130.4 mm
    • Deficit: 89 percent

    Srinagar Record

    • Only 5.3 mm precipitation
    • One of the lowest since 1901

    Rising Winter Temperatures

    Record Temperatures

    • Srinagar February average maximum:
      • 15.6°C in 2026
      • Previous record: 14.9°C in 2016

    Gulmarg Temperature

    • Early March temperature:
      • 17.2°C
      • 13.7°C above normal

    Why Snowfall Matters in the Himalayas

    Natural Water Storage

    • Snow acts as natural reservoir
    • Gradual melting feeds: Rivers, Streams and Irrigation systems
    [2023] Consider the following statements: 1 Jhelum River passes through Wular Lake. 2 Krishna River directly feeds Kolleru Lake. 3 Meandering of Gandak River formed Kanwar Lake. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None
  • RBI Scraps Treasury Bill Auctions to Boost Liquidity

    Why in News

    • Reserve Bank of India rejected all bids in Treasury Bill auction
    • Government planned to raise ₹35,000 crore
    • Move aimed at boosting banking system liquidity before financial year end (March 31)

    What RBI Did

    • Cancelled auction of:
      • 91 day Treasury Bills
      • 182 day Treasury Bills
      • 364 day Treasury Bills
    • No borrowing by government
    • First full cancellation in 13 months

    What are Treasury Bills

    • Short term government borrowing instruments
    • Issued by Government of India
    • Managed by Reserve Bank of India
    • Zero coupon securities
    • Sold at discount, redeemed at face value
    • Types of T Bills: 91 day Treasury Bills, 182 day Treasury Bills and 364 day Treasury Bills. 

    Why RBI Cancelled Auction

    1. Improve Banking Liquidity

    • Government not borrowing means:
      • Money remains in banking system
      • Banks have more funds to lend
    • Liquidity boost estimated: ₹35,000 crore

    2. Financial Year End Liquidity Needs

    • Banks need funds for:
      • Balance sheet adjustments
      • Meeting regulatory requirements
      • Managing withdrawals

    3. Tax Inflows to Government

    • Government recently received: Advance tax payments and GST collections
    • Reduced need for immediate borrowing

    4. Avoid Market Pressure

    • Higher yields expected in auction
    • RBI avoided: Interest rate spikes and Market volatility
    [2018] Consider the following statements: 
    1 The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 
    2 Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments. 
    3 Treasury bills offer are issued at a discount from the par value. 
    Select the correct answer using the code given below: 
    (a) 1 and 2 only (b) 3 only (c) 2 and 3 only (d) 1, 2 and 3

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