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Type: Bills/Act/Laws

  • Rajya Sabha passes the Supreme Court (Number of Judges) Amendment Bill, 2026 as a Money Bill

    Why in the News

    Parliament passed the Supreme Court (Number of Judges) Amendment Bill, 2026, increasing the sanctioned strength of the Supreme Court through the Money Bill route, triggering debate over the constitutional validity of bypassing the Rajya Sabha.

    What is a Money Bill?

    • Constitutional basis: Defined under Article 110 of the Constitution.
    • Scope: A Bill is a Money Bill only if it deals exclusively with matters such as:
      • Taxation, Government borrowing, Custody or withdrawal of money from the Consolidated Fund of India, Contingency Fun, and Appropriation of public money
    • Speaker’s certification: The Speaker of the Lok Sabha decides whether a Bill is a Money Bill, and the certification is endorsed on the Bill.
    • Limited role of Rajya Sabha: The Rajya Sabha can only recommend amendments within 14 days, which the Lok Sabha may accept or reject.

    What does the Bill provide?

    • Higher judicial strength: Increases the sanctioned strength of the Supreme Court from 34 to 38 judges, including the Chief Justice of India (CJI).
    • Replaces an Ordinance: Substitutes the Ordinance promulgated in May 2026.
    • Government’s objective: Reduce case pendency, improve judicial efficiency, and strengthen access to justice.

    Why is the Money Bill route controversial?

    • Constitutional issue pending: The validity of certifying certain laws as Money Bills is under consideration by a larger Constitution Bench of the Supreme Court.
    • Concern over precedent: In the Aadhaar judgment (2018), the dissenting opinion described the use of the Money Bill route for substantive legislation as a “fraud on the Constitution.”
    • Reduced parliamentary scrutiny: Since the Rajya Sabha has only an advisory role, critics argue that the route weakens bicameral legislative oversight.

    “[2014] The power to increase the number of judges in the Supreme Court of India is vested in?
    (a) The President of India.
    (b) The Parliament.
    (c) The Chief Justice of India.
    (d) The Law Commission.

  • FCRA Amendment Bill, 2026 and powers to take over foreign funded assets

    Why in the News

    FCRA Amendment Bill, 2026 will amend the foreign funding law would let a designated authority take over the assets of organisations that lose their registration. The tension is between the state’s control over foreign money and the autonomy of civil society and religious bodies.

    What is the Foreign Contribution (Regulation) Act, 2010?

    1. Governing law: The Foreign Contribution (Regulation) Act, 2010 (FCRA) regulates the acceptance and use of foreign donations by individuals and organisations.
    2. Registration: Bodies receiving foreign funds must register and route money through a designated bank account.
    3. Home Ministry: The Union Home Ministry administers registration, renewal, and cancellation.

    Key Rules and Goals

    1. Main Goal: Stop foreign money from harming the country, public order, or politics.
    2. Who Cannot Get Funds: Politicians, judges, government workers, and news media cannot accept foreign money.
    3. Bank Routing: Groups must use a single, approved bank account to get these funds.

    What does the amendment propose?

    1. Cessation clause: A new provision defines cessation of an FCRA certificate on cancellation or lapse. A certificate stops working if an organization fails to apply for renewal, gets denied, or lets the 5-year validity expire. The Bill proposes to increase oversight into processes relating to the handling of assets upon cancellation, surrender, or cessation of a certificate of registration, the management of defunct organisations, and other administrative and compliance processes.
    2. Asset vesting: On cessation, foreign contributions and assets vest in a government appointed Designated Authority, with proceeds going to the government.
    3. Retrospective reach: A clause would apply the vesting to assets already acquired.

    Why is the Bill contested?

    1. Sweeping powers: Critics argue it lets the executive seize and sell the assets of non governmental organisations.
    2. Faith bodies: Christian and other religious institutions fear disproportionate impact.
    3. Constitutional concerns: Objections cite Articles 14, 25, 26 and 300A on equality, religious freedom, and property.

    What are the challenges to the FCRA framework?

    1. Funding squeeze: Foreign contribution inflows have already fallen sharply after earlier tightening. Amnesty International India had to freeze operations in 2020 after the government froze its bank accounts over FCRA compliance disputes.
    2. Compliance burden: Small organisations struggle with reporting and renewal requirements.
    3. Chilling effect: Advocacy and rights groups face uncertainty over registration.
    4. Discretion risk: Wide discretion in cancellation invites arbitrariness.
    5. Judicial overhang: Asset vesting is likely to face challenge in the courts.

    Conclusion

    The Bill shifts the balance from regulating foreign money toward controlling the organisations that receive it. The next milestone is whether the government refers it to a Select Committee before passage.

    Back2Basics

    The Foreign Contribution (Regulation) Amendment Bill, 2026:

    It was introduced in the Lok Sabha on March 25, 2026 and it establishes a framework for managing and disposing of assets and unutilised foreign contributions of organizations that lose their FCRA certification.

    Key Provisions of the Bill

    1. Designated Authority: Creates an official body to supervise, manage, and temporarily or permanently vest assets created using foreign funds if an organization’s certificate is cancelled, surrendered, or expires.
    2. Places of Worship: Requires the authority to preserve the religious character of any asset that functions as a place of worship.
    3. Rationalized Penalties: Reduces maximum imprisonment terms for minor or technical violations of the Act from five years down to one year.
    4. Investigation Coordination: Mandates that state-level agencies secure central government approval prior to launching independent FCRA-related investigations.

    PYQ Relevance

    [UPSC 2015] Examine critically the recent changes in the rule governing foreign funding of NGOs under the Foreign Contribution (Regulation) Act (FCRA), 1976.

  • What is the Public Examinations (Prevention of Unfair Means) Amendment Bill

    Why in the News?

    Repeated crises in NEET 2024, UGC NET 2024 and NEET 2026 have exposed a gap in how examination breaches are defined and prevented. Despite the Public Examinations (Prevention of Unfair Means) Act, 2024, closure reports found no prosecutable conventional paper leak, raising the deeper question of institutional accountability.

    What is the Public Examinations (Prevention of Unfair Means) Act, 2024?

    1. Anti cheating law: It criminalises organised cheating, paper leaks and impersonation in public examinations conducted by central agencies.
    2. Penalties: It prescribes stringent imprisonment and fines and targets service providers and organised gangs, not candidates alone.

    What counts as a paper leak?

    1. Traditional meaning: A paper leak is the unauthorised disclosure of a printed question paper before the exam, during printing, storage or transport.
    2. Broader compromise: Confidential material can leak at question setting, moderation, translation or digitisation, disclosing selected questions without any printed paper being recovered.

    Why do repeated crises yield no prosecutable evidence?

    1. Investigation focus: Probes trace physical papers, so a compromise at the source may never produce recoverable evidence of a conventional leak.
    2. Closure reports: The Central Bureau of Investigation (CBI) filed closure reports in the 2024 cases, reportedly finding no prosecutable leak under the Bharatiya Nyaya Sanhita (BNS), 2023 or this Act.
    3. Detection failure: In NEET 2026, official action followed a whistleblower’s complaint rather than the exam’s own security or intelligence systems.

    Where does primary accountability lie?

    1. Examination authority: Prevention rests with the examination body, here the National Testing Agency (NTA), not with the CBI, police or courts that act only after a crisis.
    2. Lifecycle safeguards: Accountability must run from selection of question setters and translators to centres, digital systems, evaluation and result processing.

    What is the proposed way forward?

    1. White Paper: A committee headed by the former Unique Identification Authority of India (UIDAI) chairman is to document the full spectrum of breaches across the three examinations.
    2. Integrity framework: This should underpin a Public Examination Integrity Framework (PEIF) prescribing standardised end to end standard operating procedures, conflict of interest management and cybersecurity audits.

    What are the challenges to examination integrity?

    1. Insider access: A small number of individuals with privileged access at setting and moderation are the hardest risk to police.
    2. Coaching ecosystems: Organised coaching networks create demand and channels for leaked or guided material.
    3. Cybersecurity: Digitised question banks and candidate data widen the attack surface beyond physical papers.
    4. Scale: Examinations covering millions of candidates across thousands of centres magnify any single point of failure.
    5. Attribution and prosecution: Source compromises leave little physical evidence, making conviction under penal law difficult.
    6. Conflict of interest: Repeated engagement of the same experts and vendors without rotation weakens independent oversight.

    Conclusion

    The central issue is not the absence of a law but the failure to detect and prevent breaches early. Public confidence will be restored by an examination system with lifecycle safeguards and clear institutional accountability, not by harsher penalties or more logistics after the fact.

    Back2Basics:

    Public Examinations (Prevention of Unfair Means) Act, 2024

    1. Central legislation to prevent unfair means in public examinations conducted by bodies like the NTA, UPSC, SSC, railways and banking recruitment.
    2. Defines offences including paper leaks, impersonation and tampering with computer systems.
    3. Provides for imprisonment of three to ten years and fines up to one crore rupees for organised crimes.
    4. Makes offences cognisable, non bailable and non compoundable.

    Defined Unfair Means

    1. Unauthorized access to or leakage of question papers or answer keys.
    2. Assisting candidates physically or via communication devices inside exam halls.
    3. Tampering with computer networks, hardware, or customized software resources.
    4. Creation of fake examination authorities or issuance of bogus admit cards to cheat

    PYQ Relevance

    [UPSC 2024] What are the aims and objects of the recently passed and enforced, The Public Examination (Prevention of Unfair Means) Act, 2024? Whether University/State Education Board examinations, too, are covered under the Act?

    Linkage: The question tests the objectives, scope and limitations of the Public Examinations (Prevention of Unfair Means) Act, 2024. The article evaluates the Act’s implementation, showing that institutional safeguards and accountability remain as important as legal penalties in ensuring examination integrity.

  • Rajya Sabha clears the Registration of Births and Deaths (Amendment) Bill, 2026

    Why in the News

    The Rajya Sabha passed the Registration of Births and Deaths (Amendment) Bill, 2026, after the Lok Sabha cleared it earlier. The amendment requires an order from a Judicial Magistrate First Class for any birth or death registered more than two years after the event, tightening the civil registration system toward universal registration.

    What is the Registration of Births and Deaths Act, 1969?

    1. Legal basis: The Registration of Births and Deaths Act, 1969 makes recording of every birth and death compulsory and lays down the machinery of registrars for the Civil Registration System.
    2. Vital statistics: Registration data feeds official birth and death rates and underpins the issue of legal identity documents.

    What does the amendment change?

    1. Stricter delayed registration: It amends sub section (3) of Section 13 so that registrations delayed beyond two years need an order from a Judicial Magistrate First Class.
    2. Existing tier retained: Delays of up to two years will continue to require an order from a district, sub divisional or authorised executive magistrate.

    Why tighten delayed registration?

    1. Curbing misuse: The government stated that late registration beyond two years was being misused to create fraudulent records.
    2. Guarding the rolls: Ministers argued the change stops fictitious entries from becoming voters and prevents registration of persons born elsewhere.
    3. Universal registration: The stated aim is that every child born is registered and every death recorded, encouraging timely reporting.

    What concerns were raised?

    1. Overburdened magistrates: Members warned that judicial magistrates are already overburdened, so the requirement could delay genuine registrations.
    2. Uneven capacity: The number of judicial magistrates varies sharply across states, creating disparity in access.
    3. Ease of registration: Some urged easier registration through camps and door to door drives and removal of penalties rather than added judicial steps.

    What are the challenges to universal civil registration?

    1. Rural and remote reach: Home births and deaths in remote areas often go unreported because families lack awareness of the reporting window.
    2. Migrant populations: Mobile and migrant families struggle to register events at their place of residence, producing gaps and duplicate records.
    3. Institutional coordination: Registration depends on hospitals, panchayats and municipal registrars whose reporting discipline varies widely.
    4. Cause of death recording: Medical certification of cause of death remains weak outside large hospitals, limiting the quality of vital statistics.
    5. Added judicial load: Routing older registrations through magistrates can create backlogs where courts are already understaffed.

    Conclusion

    The amendment tightens the civil registration system by making very late registration a judicial act rather than an administrative one. It now proceeds to receive the President’s assent, after which state rules and registrar capacity will determine whether it improves accuracy without excluding the genuinely late.

    Back2Basics:

    Registration of Births and Deaths Act, 1969

    1. Central legislation administered through the Registrar General of India and state Chief Registrars.
    2. Makes registration of births, deaths and stillbirths compulsory across the country.
    3. Provides for the Civil Registration System that generates continuous vital statistics.
    4. Amended in 2023 to enable a national database and use of birth certificates as a single document for various services.

    The Registrar General and Census Commissioner of India (RGI)

    1. It is the top government authority under the Ministry of Home Affairs responsible for conducting the country’s decennial Census, managing demographic surveys, and overseeing civil registration.

    Key Functions and Responsibilities

    1. Census Operations: Plans, conducts, and analyzes India’s large-scale population censuses.
    2. Civil Registration: Implements the Registration of Births and Deaths Act (1969), maintaining national vital statistics via the Civil Registration System.
    3. Linguistic & Demographic Surveys: Conducts linguistic surveys and tracks socio-economic and population indicators

    What are the benefits of registration of birth and death?
    The birth certificate is the first right of the child and it is the first
    step towards establishing its identity. The following compulsory
    uses     of birth and death certificates are emerged:

    1. For admission to schools
    2. As proof of age for employment.
    3. For proof of age at marriage.
    4. To establish parentage.
    5. To establish age for purpose of enrollment in Electoral
      Rolls.
    6. To establish age for insurance purposes.
    7. For registering in National Population Register (NPR).
    8. Production of Production of death certificate for the purpose of inheritance of property and for claiming dues from insurance companies and other companies.

  • Taxation and Other Laws (Amendment) Bill, 2026 introduced in Lok Sabha

    Why in the News?

    The Finance Minister introduced the Taxation and Other Laws (Amendment) Bill, 2026 in the Lok Sabha to amend tax and payment laws, improve tax certainty, attract foreign investment, and support the Make in India initiative.

    Key Highlights

    • Amends the Payment and Settlement Systems Act, 2007, Income-tax Act, 2025, and Finance Act, 2026.
    • Replaces the Income-tax (Amendment) Ordinance, 2026 with a permanent law.
    • Simplifies tax exemptions for foreign companies using Indian data centres.
    • Allows leased data centres to avail tax benefits.
    • Facilitates relocation of foreign fund managers to India without creating a taxable business presence.
    • Restores dividend tax exemption for REITs and InvITs under the new tax regime.

    Other Legislative Business

    • Discussion on Demands for Excess Grants (FY 2022-23).
    • Introduction of the Appropriation (No. 3) Bill, 2026 to regularise excess government expenditure.
    • Statements on implementation of Parliamentary Standing Committee recommendations.
    • Consideration of the Bankers’ Books Evidence Bill, 2026 to modernise evidence laws for digital banking.

    Appropriation Bill

    • Authorises the government to withdraw money from the Consolidated Fund of India to meet approved expenditure.
    • Required under Article 114 of the Constitution.

    Demands for Excess Grants

    • Presented when actual government expenditure exceeds the amount approved by Parliament.
    • Examined by the Public Accounts Committee (PAC) before parliamentary approval.
    • Constitutional Basis: Article 115.

    Bankers’ Books Evidence Bill, 2026

    • Seeks to modernise legal provisions governing bank records by recognizing digital banking and electronic records.

  • Govt plans tax relief for offshore funds, electronics’ contract manufacturing

    Why in the News?

    The government has circulated the Taxation and Other Laws (Amendment) Bill, 2026, which relaxes the conditions under which offshore funds managed from India can claim tax exemption. The Bill also extends a tax exemption for foreign firms supplying equipment to electronics contract manufacturers and introduces a fresh tax holiday for rough-diamond trading in a notified zone. The measures respond to foreign outflows and to lobbying by manufacturers seeking tax certainty.

    What is the Taxation and Other Laws (Amendment) Bill 2026?

    1. Purpose: The Bill amends the Income-tax Act to promote fund management activity and provide tax certainty to specified foreign and offshore entities. It bundles relief for offshore funds, electronics contract manufacturing and rough-diamond trading.
    2. Replaces an Ordinance: The Bill replaces the Income-tax (Amendment) Ordinance, 2026 promulgated on 5 June, which had exempted foreign portfolio investors from capital gains and withholding taxes on government securities. The Ordinance was brought amid pressure on the rupee and foreign outflows.

    What is an Eligible Investment Fund (offshore fund)?

    1. Definition: An Eligible Investment Fund is an offshore pooled investment vehicle that can be managed by a fund manager based in India without the fund itself being treated as having a taxable business presence in India.
    2. Why the safe harbour matters: Without the exemption, the manager’s activity in India could create a business connection, exposing the fund’s global income to Indian tax at rates of up to 38%.

    Key Rules for an Eligible Investment Fund

    1. Outside Location: The fund must be created, registered, or incorporated outside the host country (for example, outside India).
    2. Non-Resident Status: The fund and its general members must live or reside outside the target country.
    3. Member Limits: It usually needs a minimum number of members (such as 25 non-connected investors) so that it is a true public or pooled vehicle and not controlled by a single family or small group.
    4. Diverse Ownership: No single member or direct group can hold a massive stake (usually restricted below 10% or 20% depending on precise tax codes) to prevent individual dominance

    How does the Bill ease conditions for offshore funds?

    1. Fewer conditions to qualify: The government proposes to remove 8 of the 13 conditions that offshore funds must meet so their activity does not constitute business income in India. Only five conditions would remain.
    2. Dropped thresholds: Removed conditions include a minimum of 25 investors, a maximum 10% interest for a single investor, a cap on investing more than 25% of the corpus in one entity, and a minimum monthly average corpus of Rs 100 crore.
    3. Remaining conditions: The fund must not be a resident of India and must not control or manage any business in India. Direct investment by Indian residents must not exceed 5% of the corpus on 1 April and 1 October of the tax year.
    4. Intended effect: Aligning safe-harbour rules with global fund structures aims to relocate offshore fund management activity to India and to unify the framework with the International Financial Services Centre (IFSC).

    What relief goes to electronics contract manufacturing?

    1. Extended exemption to FY41: Tax exemption for a foreign company that provides capital goods, equipment or tooling to a contract manufacturer of electronics in India is extended to tax year 2040-41, from the earlier 2030-31. The exemption was first introduced earlier in the year, valid only to 2031.
    2. Why it was sought: A major device maker lobbied for the change, fearing that ownership of high-end machinery supplied to contract manufacturers would be treated as a business connection and expose its profits to Indian tax, unlike in China.
    3. Scope of devices: The exemption applies to makers of mobile phones, tablets, laptops, hearing and wearable electronic devices. India is set to make 26% of the world’s iPhones in 2026, up from 6% four years earlier.
    4. Storage of components: Foreign firms’ income from storing and providing parts to contract manufacturers is exempt until 2041, applying to factories and warehouses in customs-bonded areas treated as outside the customs border.

    What is the rough-diamond tax holiday?

    1. Fifteen-year holiday: A new tax holiday of 15 years up to 31 March 2041 is proposed for specified foreign companies acting as mining companies, sightholders, brokers, aggregators and tender or auction entities. It exempts their income from the sale of rough diamonds in a notified special zone in India.
    2. Objective: The measure aims to bring rough-diamond trading, currently routed through overseas centres, into a notified Indian zone.

    What are the challenges to the tax-relief package?

    1. Revenue foregone: Long-dated exemptions to 2041 lock in a loss of tax revenue over more than a decade, with benefits concentrated among large foreign firms.
    2. Selective advantage: Relief tailored to a single dominant electronics buyer raises questions of a level playing field for smaller manufacturers.
    3. Uncertain relocation gains: Easing offshore-fund conditions may not by itself pull managers to India if enforcement and dispute practices remain aggressive.
    4. Base-erosion concern: Broad exemptions on cross-border income invite scrutiny over profit shifting through bonded zones and notified special zones.

    Conclusion

    The Bill uses targeted, long-dated tax exemptions to keep foreign capital and electronics manufacturing anchored in India while replacing a June Ordinance on government-securities taxation. Its success depends on whether removing safe-harbour conditions genuinely relocates fund management to India and whether the electronics concessions deepen domestic value addition rather than mere assembly. The Bill is expected to be introduced in Parliament during the week.

    Back2Basics

    1. Eligible Investment Fund: An offshore fund permitted to be managed from India without creating a taxable business connection, subject to safe-harbour conditions under the Income-tax Act.
    2. Foreign Portfolio Investor (FPI): An overseas investor registered with the Securities and Exchange Board of India to invest in Indian securities.
    3. International Financial Services Centre (IFSC): A jurisdiction, such as GIFT City in Gujarat, that provides financial services to non-residents in foreign currency under a distinct regulatory regime.
    4. Contract manufacturing: Production by a third-party manufacturer of goods for a brand owner, common in electronics assembly.
    5. Customs-bonded area: A warehouse or factory treated as outside India’s customs border, where import duty is deferred until goods enter the domestic market.

    PYQ Relevance

    [UPSC 2019] Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?

    (a) Certificate of Deposit (b) Commercial Paper (c) Promissory Note (d) Participatory Note

    Answer: (d)

  • Lok Sabha passes the Supreme Court (Number of Judges) Amendment Bill 2026

    Why in the news?

    The Lok Sabha passed the Supreme Court (Number of Judges) Amendment Bill, 2026, increasing the sanctioned strength of the Supreme Court of India from 34 to 38 judges (including the Chief Justice of India (CJI)) to address rising case pendency.

    Key Provisions

    • Increased Strength: Raises the sanctioned strength from 34 to 38 judges.
    • Replaces Ordinance: Converts the earlier ordinance into permanent law.
    • Objective: Improve disposal of cases and reduce judicial backlog.

    Constitutional Basis

    • Article 124: Empowers Parliament to determine the number of Supreme Court judges by law.
    • Governing Law: Supreme Court (Number of Judges) Act, 1956.

    Why is the Amendment Needed?

    • Over 92,000 cases were pending in the Supreme Court (as of 1 January 2026).
    • Growing gap between institution and disposal of cases.
    • Increasing litigation has added pressure on the Court.

    Challenges

    • Sanctioned posts must be filled promptly.
    • Delays in the Collegium appointment process.
    • More judges require additional infrastructure and staff.
    • Procedural delays and frequent adjournments remain unresolved.

    Back2Basics

    • Article 124: Establishes the Supreme Court and empowers Parliament to fix its strength.
    • Original Strength (1950): Chief Justice + 7 judges.
    • Appointment: By the President of India under the Collegium System.
    • Retirement Age: 65 years.
    • Evolution: Three Judges Cases
      • First Judges Case (1981): Executive had primacy in appointments.
      • Second Judges Case (1993): Introduced the Collegium System; judiciary gained primacy.
      • Third Judges Case (1998): Expanded the Collegium to the CJI plus four senior-most Supreme Court judges.

    [2014] The power to increase the number of judges in the Supreme Court of India is vested in?

    (a) The President of India

    (b) The Parliament

    (c) The Chief Justice of India

    (d) The Law Commission

  • Proof of life: reworking the law on delayed birth and death registration

    Why in the News?

    The Lok Sabha passed the Registration of Births and Deaths (Amendment) Bill, 2026, amending the Registration of Births and Deaths Act, 1969. It requires a Judicial Magistrate’s order for registration of births or deaths delayed by more than two years.

    Key Provisions

    • Judicial Approval: Delayed registration beyond 2 years requires approval from a Judicial Magistrate.
    • Existing Process Retained: Delays up to 2 years continue to require approval from an Executive Magistrate.
    • Objective: Strengthen verification and prevent fraudulent birth or death registrations.

    Why was the Amendment Needed?

    • The 2023 amendment made the birth certificate the primary proof of date and place of birth for: School admissions, Passports, Aadhaar, Voter rolls, Driving licences, and Government jobs
    • Higher importance of birth certificates increased the risk of fraudulent registrations.

    Significance

    • Enhances authenticity of delayed registrations.
    • Supports reliable digital civil registration records.
    • Reduces misuse of birth certificates for identity fraud.

    Challenges

    • Judicial process may increase costs and delays for genuine applicants.
    • Remote and vulnerable populations may face greater difficulty.
    • Adds workload to the lower judiciary.
    • No clear evidence supporting the two-year threshold.

    Back2Basics

    • Registration of Births and Deaths Act, 1969: Makes registration of every birth and death compulsory.
    • Registrar General of India (RGI): Nodal authority under the Ministry of Home Affairs (MHA).
    • Concurrent List: Both Parliament and State Legislatures can legislate on registration.
    • 2023 Amendment: Birth certificate became the primary document for proving date and place of birth.

    [2018] Consider the following statements:
    1.Aadhaar can be used as proof of citizenship and domicile.
    2.Once issued, the Aadhaar number cannot be deactivated or omitted by the issuing authority.
    Which of the statements given above is/are correct?

    [A] 1 only

    [B] 2 only

    [C] Both 1 and 2

    [D] Neither 1 nor 2

  • Rajya Sabha passes the MSME Development (Amendment) Bill 2026

    Why in the News?

    The Rajya Sabha passed the Micro, Small and Medium Enterprises (MSME) Development (Amendment) Bill, 2026, replacing the MSME Development Act, 2006. It aims to improve formalisation and liquidity by introducing a digital registration platform and mandatory invoice settlement through Trade Receivables Discounting System (TReDS).

    Key Provisions

    • National Digital Registration: Free, voluntary online registration for MSMEs.
    • Mandatory TReDS: Central Public Sector Enterprises (CPSEs) must settle MSME invoices through the Trade Receivables Discounting System (TReDS).
    • Updated Framework: Replaces the 2006 Act governing MSME classification, credit and delayed payments.
    • Objective: Improve timely payments while balancing business interests.

    What is TReDS?

    • Trade Receivables Discounting System (TReDS) is a Reserve Bank of India (RBI) regulated electronic platform where MSMEs sell approved invoices to financiers for immediate cash.
    • Process: MSME uploads invoice → financiers bid → MSME gets upfront payment → buyer pays financier on the due date.

    Why is the Amendment Needed?

    • Delayed payments reduce MSME working capital.
    • Easier registration promotes formalisation and access to credit.
    • Institutional credit has grown, but access remains uneven.

    Importance of MSMEs

    • Contribute 31% of Gross Domestic Product (GDP).
    • Account for 36% of manufacturing output.
    • Contribute 41% of exports.
    • Second largest employer after agriculture.

    Challenges

    • Voluntary registration may exclude many firms.
    • TReDS mandate covers only CPSEs.
    • Smaller firms may struggle to attract financiers.
    • Weak enforcement and digital literacy remain concerns.

    MSME Classification

    • Micro: Investment ≤ ₹2.5 crore; Turnover ≤ ₹10 crore
    • Small: Investment ≤ ₹25 crore; Turnover ≤ ₹100 crore
    • Medium: Investment ≤ ₹125 crore; Turnover ≤ ₹500 crore

    Key Initiatives

    • Udyam Registration Portal
    • MSME Samadhaan
    • Trade Receivables Discounting System (TReDS)
    • Priority Sector Lending (PSL)

    “[2023] Consider the following statements with reference to India:

    1. According to the ‘Micro, Small and Medium Enterprises Development (MSMED) Act, 2006’, the ‘medium enterprises’ are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore.

    2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2.

  • Centre asks states to set up exclusive NDPS courts

    Why in the News?

    The Ministry of Home Affairs (MHA) has directed States and Union Territories to establish exclusive NDPS courts to tackle the backlog of nearly 39 lakh drug-related cases. However, 22 States are yet to comply.

    What is the NDPS Act?

    • The Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985 is India’s primary law to regulate and prohibit narcotic drugs and psychotropic substances.
    • The Narcotics Control Bureau (NCB) is the apex agency for enforcement.
    • The Narco-Coordination Centre (NCORD) coordinates anti-drug efforts among Central and State agencies.

    Why Exclusive NDPS Courts?

    • Speed up disposal of nearly 39 lakh pending cases.
    • Ensure specialised and faster trials for drug offences.
    • Improve conviction rates and reduce judicial delays.

    Significance

    • Strengthens deterrence against drug trafficking.
    • Helps curb crimes linked to money laundering, organised crime and terror financing.
    • Enhances India’s internal security, especially along vulnerable border regions.

    Challenges

    • 22 States have not yet established exclusive NDPS courts.
    • Need for adequate judges, prosecutors and infrastructure.
    • Court reforms must be complemented by effective enforcement and rehabilitation.

    Is it Mandatory?

    • Legally: The NDPS Act empowers State Governments to establish Special Courts, but it does not make exclusive NDPS courts mandatory in every district.
    • Administratively: The Ministry of Home Affairs (MHA) has strongly directed States and Union Territories to establish exclusive NDPS courts due to the huge backlog. While this directive is not directly enforceable like a statute, States are expected to comply in the interest of effective criminal justice and internal security.

    Prelims Facts

    • NCORD was established in 2016 to improve inter-agency coordination against drug trafficking.
    • NDPS Act, 1985 replaced the Opium Act, 1857, the Opium Act, 1878, and the Dangerous Drugs Act, 1930.
    • The NCB functions under the Ministry of Home Affairs (MHA).

    [2018, GS3, 15 marks] India’s proximity to two of the world’s biggest illicit opium-growing states has enhanced her internal security concerns. Explain the linkages between drug trafficking and other illicit activities such as gunrunning, money laundering and human trafficking. What counter-measures should be taken to prevent the same?”