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Type: Prelims Only

  • [pib] 150 Years of Metre Convention 

    IOCRPrelims Only | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Why in the News?

    On May 20, 2025, the Department of Consumer Affairs celebrated World Metrology Day, marking the 150th anniversary of the signing of the Metre Convention in Paris on May 20, 1875.

    About the Metre Convention:

    • Inception: Also called the Treaty of the Metre, it was signed in Paris on May 20, 1875, to establish a global system of standardised measurements.
    • 17 Founding Members: Argentina, Austria-Hungary, Belgium, Brazil, Denmark, France, Germany, Italy, Peru, Portugal, Russia, Spain, Sweden and Norway, Switzerland, Ottoman Empire (Turkiye), USA, and Venezuela.
    • Institutions Created: The treaty established the International Bureau of Weights and Measures (BIPM), and two governing bodies—CGPM (General Conference on Weights and Measures) and CIPM (International Committee for Weights and Measures).
    • Early Prototypes: It created international prototypes of the metre and kilogram, stored at the BIPM; member countries received national copies for comparison.
    • Expansion in 1921: The Convention was extended to cover all physical quantities, forming the basis for the International System of Units (SI).
    • Global Reach: As of October 2024, there are 64 member states in the Convention.
    • Collaboration: International Atomic Energy Agency (IAEA), Institute for Reference Materials and Measurements (IRMM), World Meteorological Organization (WMO), European Space Agency (ESA) participate in the CIPM Mutual Recognition Arrangement (MRA).

    India and the Convention:

    • Membership: India joined the Metre Convention in 1957 after passing the Standards of Weights and Measures Act, 1956.
    • Participation Benefits: India gained the ability to participate in BIPM work, align with global systems, and ensure international recognition of its standards.
    • Recent Milestone: India is now the 13th country authorized to issue OIML (International Organisation of Legal Metrology) Certificates.
    [UPSC 2007] Consider the following statements:

    1. The series of the International Paper Sizes is based on A0 size whose area is 0.5 m² (approximately).

    2. The area of A4 size paper is 1/8th of that of the A0 size paper.

    Which of the statements given above is/are correct?

    Options: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 *

     

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  • Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

    Hoyle–Narlikar Theory of Gravity

    Prelims Only | Science Tech | Mains Paper 3: Achievements Of Indians In S&T

    Why in the News?

    Jayant Narlikar, renowned Indian astrophysicist and Padma Vibhushan awardee, who co-developed the Hoyle–Narlikar Theory to refine Einstein’s Theory of Relativity, passed away in Pune at the age of 87.

    About Jayant Narlikar and His Contributions:

    • Early Life: Born in 1938 in Kolhapur, Maharashtra, and pursued a PhD at Cambridge University under Fred Hoyle.
    • Scientific Influence: Hoyle had earlier developed the steady-state theory with Bondi and Gold and coined the term “Big Bang” sarcastically in 1948.
    • Narlikar’s Belief: He argued that the universe always looks the same, as new matter fills the gaps created by expansion.
    • Critique of Big Bang: He believed the Big Bang theory includes unproven assumptions, especially about the sudden origin of all matter and energy.
    • Enduring Work: Despite steady-state theory’s decline, Narlikar’s contributions remain respected for their scientific depth and originality.

    What Is the Hoyle–Narlikar Theory?

    Fred Hoyle and Jayant Narlikar developed a theory to answer one of the most basic questions: Why do things have mass, and how are they connected to the rest of the universe?

    • Based on Mach’s Principle: They believed your mass isn’t just something you have on your own. Instead, it depends on your connection to everything else in the universe. That means even faraway stars and galaxies play a role in what you weigh.
    • Inertia Explained: In simple terms, when you feel resistance while trying to move (inertia), it’s because of the gravitational pull of all the matter in the universe acting on you at once.
    • Mass is Relative: Earth, the Sun, or even you don’t have a fixed mass. That mass is influenced by everything else that exists out there, no matter how far away it is.
    • C-field and Steady-State Model
      • New Idea – C-Field: They introduced the “creation field”, which creates new matter in space.
      • Universe Without a Start: Their steady-state theory says the universe has no beginning or end, is always expanding, and keeps its density constant.
      • Against the Big Bang: They believed the Big Bang couldn’t explain everything we see today.
      • Hydrogen Creation: They said hydrogen atoms form in space to fill in the gaps as the universe grows.
    • Issues with the Theory:
      • CMB Discovery (1965): Scientists found cosmic microwave background radiation, strong proof of the Big Bang.
      • Other Evidence: Later discoveries like young, chaotic galaxies and studies by Hawking and Penrose supported the Big Bang.
      • Current View: The Big Bang theory became more accepted, but Hoyle and Narlikar’s ideas are still respected for their scientific value.
    [UPSC 2018] Consider the following phenomena:

    1. Light is affected by gravity.

    2. The Universe is constantly expanding.

    3. Matter warps its surrounding space-time.

    Which of the above is/are the prediction/predictions of Albert Einstein’s General Theory of Relativity, often discussed in media?

    Options: (a) 1 and 2 only (b) 3 only (c) 1 and 3 only (d) 1, 2 and 3*

     

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  • Capital Markets: Challenges and Developments

    RBI revises rules for investment in Alternative Investment Funds (AIFs)

    Prelims Only | Economics | Mains Paper 3: Investment Models

    Why in the News?

    The RBI has released revised draft guidelines for investments made by Regulated Entities (REs) in Alternative Investment Funds (AIFs) to ensure better regulatory oversight, prevent misuse of funds, and align with the rules already set by SEBI.

    What are Alternative Investment Funds (AIFs)?

    • Definition: They are unique investment vehicles that are privately pooled and invested in alternative asset classes such as venture capital, private equity, hedge funds, commodities, real estate, and derivatives.
    • Regulation: They are governed by SEBI under the SEBI (Alternative Investment Funds) Regulations, 2012.
    • Working: It can be formed as a trust, company, Limited Liability Partnership (LLP), or any other SEBI-permitted structure.
    • Legal Structure: They can be set up as trusts, companies, Limited Liability Partnership (LLP), or other legally permitted forms.
    • Investor Base:
      • AIFs are meant for High Net-Worth Individuals (HNIs) and institutional investors, NOT small retail investors.
      • Resident Indians, NRIs, and foreign nationals can invest.
    • Minimum Investment Requirement:
      • The minimum investment size is ₹1 crore (SEBI, May 2024), except for accredited investors as defined by SEBI.
      • For employees or directors of the AIF or its manager, the minimum investment is ₹25 lakh.
      • An AIF must have a minimum corpus of ₹20 crore (₹10 crore for Angel Funds).

    Types of AIFs: 

    1. Category I: These funds invest in early-stage unlisted companies in the form of equity or debt (venture capital). These alternative asset funds can also invest in infrastructure-based projects or social ventures.
    2. Category II: These types of funds invest in equity or debt of unlisted companies that are in the mid or late stage of growth and are known as private equity or pre-IPO, respectively.
    3. Category III: This category of funds invests in the shares of listed companies. These alternative strategy funds can be for any period, long only or a combination of long and short.
    [UPSC 2014] What does Venture Capital mean?

    Options: (a) A short-term capital provided to industries. (b) A long-term start-up capital provided to new entrepreneurs* (c) Funds provided to industries at times of incurring losses. (d) Funds provided for replacement and renovation of industries.

     

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  • Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

    Potato Cultivation in India

    Prelims Only | Agriculture | Mains Paper 3: Major Crops & Cropping Patterns

    Why in the News?

    India is likely to become the world’s largest potato producer, overtaking China, by 2050, according to experts from the International Potato Center (CIP) based in Peru.

    Back2Basics: International Potato Center (CIP)

    • The CIP is a research-for-development organisation founded in 1971, focused on improving potato, sweet potato, and Andean root and tuber crops.
    • Headquartered in Lima, Peru, CIP operates in over 20 countries across Africa, Asia, and Latin America.
    • It maintains the world’s largest Potato Gene Bank, safeguarding biodiversity for future use in research and breeding.

    Potato Cultivation in India:

    • About: Potato (Solanum tuberosum) is known as the “King of Vegetables” and is India’s fourth most important food crop after rice, wheat, and maize.
    • Origin: Introduced to India by Portuguese traders in the 17th century.
    • Geographic Spread: Grown in 23 states, but 85% of production comes from the Indo-Gangetic plains in North India.
    • Top Producing States:
      • Uttar Pradesh: ~30% of total output
      • West Bengal: ~23.5%
      • Bihar: ~17%
      • Other contributors: Punjab, Gujarat, Madhya Pradesh
    • Climate Needs: Potato is a cool-season crop.
      • Ideal growth temp: 24°C
      • Ideal tuber formation temp: 20°C
    • Soil Requirements: Prefers well-drained, fertile soils with moisture retention.
    • Planting Seasons:
      • Himachal Pradesh, Uttarakhand: Spring (Jan–Feb), Summer (May)
      • Punjab, Haryana, UP, Bihar, Bengal: Main crop in October
      • MP, Maharashtra, Karnataka: Both kharif and rabi seasons
    • Seed Management: Use disease-free, sprouted seeds (30–50g);
    • Popular varieties: Kufri Jyoti, Kufri Bahar, Kufri Pukhraj, and Kufri Chandramukhi.
    • Fertilization & Irrigation: Apply balanced nutrients, especially phosphorus and potassium; drip irrigation is recommended.
    • Harvesting: Ready in 90–120 days, harvested manually or mechanically.

    Global Comparison and Future Outlook:

    • Global Rank: India is the second-largest producer after China.
    • Production Volume: Over 50 million tonnes/year currently; projected to reach 100 million tonnes by 2050 (CIP experts).
    • Growth Drivers: Expansion is due to large cultivation area, strong domestic demand, and government support.
    • Tuber Crop Potential: Promoting crops like sweet potato can improve nutrition, livelihoods, and climate resilience.

    Policy measure for Potato Farmers: Operation Greens

    • It is a scheme launched by the GoI in 2018, modelled after Operation Flood, with the aim to stabilize the supply and prices of Tomato, Onion, and Potato (TOP) crops.
    • The scheme is implemented by the Ministry of Food Processing Industries (MoFPI) and was initially allocated a budget of ₹500 crore.
    • Objectives:
      • Stabilize the supply and prices of potatoes (along with tomato and onion) to protect both farmers and consumers from extreme price fluctuations.
      • Reduce post-harvest losses of potatoes by improving storage, processing, and logistics infrastructure

     

    [UPSC 2014] In India, cluster bean (Guar) is traditionally used as a vegetable or animal feed, but recently the cultivation of this has assumed significance.

    Which one of the following statements is correct in this context?

    Options: (a) The oil extracted from seeds is used in the manufacture of biodegradable plastics. (b) The gum made from its seeds is used in the extraction of shale gas.* (c) The leaf extract of this plant has the properties of antihistamines. (d) It is a source of high quality biodiesel.

     

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  • Citizenship and Related Issues

    Overseas Citizenship of India (OCI)

    Prelims Only | Polity | Mains Paper 2: Indian Diaspora

    Why in the News?

    The Overseas Citizenship of India (OCI) status of a notable British-Indian academic has been cancelled due to involvement in anti-India activities.

    About Overseas Citizenship of India (OCI):

    • Launch: Introduced in August 2005 to give Persons of Indian Origin (PIOs) a long-term connection to India.
    • Eligibility: Open to those who were citizens of India on/after January 26, 1950, or eligible for Indian citizenship on that date.
    • Nature: OCI is not full citizenship but offers lifelong visa and residency benefits.
    • Benefits: Includes a multiple-entry, lifelong visa and exemption from police registration.
    • Administered by: Ministry of Home Affairs (MHA).
    • Global Numbers (2023): Over 45 lakh OCI holders from 129 countries — top sources include the USA (16.8 lakh), UK (9.34 lakh), Australia (4.94 lakh), and Canada (4.18 lakh).

    Who are the Persons of Indian Origin (PIOs)?

    • The PIO category was abolished in 2015 and merged with the OCI category. However, existing PIO cards are valid till December 31, 2023.
    • PIO referred to a:
      • Foreign citizen (except a national of Pakistan, Afghanistan Bangladesh, China, Iran, Bhutan, Sri Lanka and Nepal) who at any time held an Indian passport, or
      • Who or either of their parents/ grandparents/great grandparents was born and permanently resided in India as defined in Government of India Act, 1935, or
      • Who is a spouse of a citizen of India or a PIO.

    Rules, Amendments & Privileges:

    • 2021 Rule Change: Special permission required for visiting restricted areas, conducting research, journalism, or religious work.
    • FEMA Status: Treated as foreign nationals under the Foreign Exchange Management Act (2003).
    • Earlier Privileges:
      • 2005: Life-long visa, no FRRO (Foreigners Registration Office) registration
      • 2007: Parity with NRIs for adoption, domestic airfare
      • 2009: Parity for monument entry and access to regulated professions

    Limitations and Ineligibility:

    • Not Eligible:
      • Individuals with parents/grandparents from Pakistan or Bangladesh
      • Foreign military personnel, active or retired
    • Spouse Clause: Foreign spouse eligible if legally married for at least two years.
    • No Political Rights: OCI holders cannot vote, contest elections, hold constitutional posts (President, Vice President, or Supreme Court/High Court Judge), or work in Indian government services.
    [UPSC 2021] 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?

    Options: (a) 1 only * (b) 2 only (c) 1 and 3 (d) 2 and 3

     

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  • Wildlife Conservation Efforts

    [pib] What is Operation Olivia?

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    As of February 2025, the Indian Coast Guard (ICG) protected a record 6.98 lakh Olive Ridley turtles during their mass nesting at the Rushikulya river mouth in Odisha.

    About Operation Olivia:

    • Launch: Operation Olivia is an annual conservation mission by the Indian Coast Guard, started in the early 1980s.
    • Main Objective: It aims to protect Olive Ridley turtles during their nesting season, from November to May.
    • Primary Locations: The operation focuses on Odisha’s coast, especially Gahirmatha Beach, Devi River mouth, and Rushikulya River mouth.
    • Turtle Nesting Scale: Over 8 lakh turtles arrive annually at these sites to nest.
    • Surveillance Efforts: The Coast Guard has conducted more than 5,387 surface patrols and 1,768 aerial missions.
    • Community Engagement: Fishermen are encouraged to use Turtle Excluder Devices (TEDs) that allow turtles to escape fishing nets.

    About Olive Ridley Turtles:

    • Appearance: Named for their olive-green shell, or carapace.
    • Diet: They are Omnivores, though feeding mainly on jellyfish, crustaceans, and molluscs.
    • Nesting Behaviour: Known for Arribada, a phenomenon where thousands of females come ashore simultaneously to lay eggs.
    • Habitat Range: Found in warm waters of the Pacific, Atlantic, and Indian Oceans.
    • Major Nesting Sites in India:
      • Gahirmatha Marine Sanctuary, Odisha (largest site)
      • Devi River mouth (discovered in 1981)
      • Rushikulya River mouth (discovered in 1994)
    • Protection Status:
      • IUCN Red List: Listed as Vulnerable.
      • CITES: Included in Appendix I, banning international trade.
      • Wildlife Protection Act, 1972: Listed under Schedule I, offering the highest legal protection in India.
    [UPSC 2002] The sea coast of which one of the following states has become famous as a nesting place for the giant Olive Ridley turtles from South America?

    Options: (a) Goa (b) Gujarat (c) Odisha* (d) Tamil Nadu

     

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  • International Space Agencies – Missions and Discoveries

    NASA’s GRAIL Mission

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Why in the News?

    Scientists now believe the Moon’s near side looks different from its far side due to its internal structure and volcanic past, revealed by NASA’s Gravity Recovery and Interior Laboratory (GRAIL) mission.

    About the GRAIL Mission:

    • Launch: NASA launched the GRAIL mission in 2011 to study the moon’s internal structure.
    • Spacecraft Used: It used two spacecraft, Ebb and Flow, flying in tandem to detect gravity variations.
    • Objectives: The mission measured tiny changes in distance between the two spacecraft caused by differences in the moon’s gravitational field.
    • Scientific Outcome: The data revealed important details about the moon’s crust thickness, interior composition, and subsurface features.

    Key Findings: Reasons for the Moon’s Asymmetry

    • Tidal Deformation: The nearside bends more than the farside due to Earth’s gravity, a process called tidal deformation.
    • Internal Activity: The nearside is geologically warmer and more active, suggesting internal structural differences.
    • Volcanic History: Ancient volcanic activity on the nearside formed large basaltic plains, while the farside remained rugged and less active.
    • Heat Distribution: Elements like thorium and titanium accumulated on the nearside, making it 100–200°C hotter than the farside.
    • Crust Thickness: The nearside has a thinner crust, allowing magma to escape, while the farside’s thicker crust trapped heat and blocked eruptions.
    • Thermal Contrast: The thinner crust also allowed more heat-producing elements to concentrate, increasing the temperature gap between the two sides.

    Why do these findings matter?

    • Support for Lunar Missions: Insights from GRAIL help design better navigation and timing systems for future lunar operations.
    • Applications: GRAIL’s method can be applied to other moons like Enceladus and Ganymede, which may hold potential for life.
    [UPSC 2007] NASA’S Deep Impact space mission was employed to take detailed pictures of which comet nucleus?

    Options: (a)  Halley’s Comet (b) Hale-Bopp (c) Hyakutake (d) Tempel 1 *

     

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  • Interstate River Water Dispute

    Mahadayi Water Dispute

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    A protest has erupted in Goa after a scientific paper on water availability and diversion in the Mahadayi basin reignited its long-standing dispute with Karnataka.

    Mahadayi Water Dispute

    About the Mahadayi River:

    • Origin: The Mahadayi River (Mhadei in Goa) originates in Bhimgad, Karnataka, in the Western Ghats.
    • Length and Flow: It flows 81 km, passing through Karnataka (35 km), Goa (45 km), and Maharashtra (1 km) before reaching the Arabian Sea.
    • Basin Area: Covers 2,032 sq km—78% in Goa, 18% in Karnataka, and 4% in Maharashtra.
    • Significance: Forms the Mandovi River, essential for drinking water, agriculture, and navigation in Goa.
    • Tributaries: Kalasa Nala, Surla Nala, Haltar Nala, Poti Nala, Mahadayi Nala, Pansheer Nala, Bail Nala, Andher Nala and many more. It has a catchment area of 2032 sq.km.
    • Topography: Elevation ranges between < 0m and > 980m w.r.t Mean Sea Level, slope of the catchment varies up to 150%. Very high slope we observed in the Ghats (Braganja Ghats).
    • Waterfalls: Variations in the terrain has led to formation of various water falls such as the Doodhsagar falls,Vajra poha falls etc.
    • Ecology: Supports rich biodiversity, including the Salim Ali Bird Sanctuary.
    • Mineral Ores found: Iron, limestone, bauxite, quartz, limestone, sand, clay, lime shell, Manganese, Asbestos, Mica, Lead, Cadmium.

    Mahadayi Water Dispute:

    • Karnataka’s Project: Proposed the Kalasa-Banduri Nala to divert water to the Malaprabha basin.
    • Tribunal Setup: The Mahadayi Water Disputes Tribunal (2010) addressed disagreements.
    • 2018 Verdict:
      • Karnataka: 13.42 tmcft (1.72 from Kalasa, 2.18 from Bhandura).
      • Goa: 24 tmcft (plus 9.395 tmcft for existing use).
      • Maharashtra: 1.33 tmcft.
    • Concerns: Goa feared impacts on Mandovi navigation; the tribunal cited tidal flow ensures stability.
    • Legal Status: Both states have challenged the verdict in the Supreme Court.

    Controversy Over CSIR-NIO Report:

    • Study Findings: Claimed Karnataka’s diversions would have minimal impact on Goa’s water or estuarine navigation.
    • Institutions: Report authored by CSIR-NIO (Goa) and INCOIS (Hyderabad).
    • Recommendations: Suggested check dams and a Tillari-style agreement for shared water use and ecological balance.

    Tap to read more about Interstate Water Disputes in India.

    [UPSC 2013] Constitutional mechanisms to resolve the inter-state water disputes have failed to address and solve the problems. Is the failure due to structural or process inadequacy or both? Discuss.

     

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  • Innovations in Biotechnology and Medical Sciences

    What is A-to-I mRNA Editing?

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Why in the News?

    Chinese researchers found that A-to-I mRNA editing, once considered random, plays a key role in development, especially in the wheat pathogen Fusarium graminearum.

    About A-to-I mRNA Editing:

    • mRNA: Our cells use DNA as a guide to make proteins. First, they copy DNA into messenger RNA (mRNA).
    • A-to-I editing: This is a process where the letter adenosine (A) in mRNA is changed to inosine (I) by special enzymes called ADARs. The cell reads inosine as guanine (G), which can change the protein being made.
    • Why it matters:
      • It helps the cell make different versions of proteins without changing the DNA.
      • It can remove early stop signals, allowing full proteins to be made.
      • It helps the cell adapt to different conditions or stages of life.

    What did scientists discover in the fungus?

    • Fungal Discovery: Scientists found that the fungus edits over 26,000 mRNA sites during reproduction, not during normal growth.
    • Development Role: This editing fixes early stop signals in key genes, helping the fungus develop and reproduce properly.
    • Stress Adaptation: Some genes work better unedited under stress, showing the fungus edits only when needed for survival.

    Does this happen in humans?

    Yes, A-to-I editing is common in humans:

    • In the brain: It helps with brain growth, memory, and learning.
    • In the immune system: It helps fight infections and control inflammation.

    Health Implications:

    • Health Risks: Faulty editing is linked to epilepsy and certain cancers.
    • Therapeutic Potential: Understanding this process can lead to new treatments and improve gene-editing technologies.
    [UPSC 2016] In the context of the developments in Bioinformatics, the term ‘transcriptome’, sometimes seen in the news, refers to:

    Options: (a) a range of enzymes used in genome editing (b) the full range of mRNA molecules expressed by an organism * (c) the description of the mechanism of gene expression (d) a mechanism of genetic mutations taking place in cells

     

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  • RBI Notifications

    RBI’s Transfer of ‘Surplus’ to the Government

    Prelims Only | Economics | Mains Paper 3: Indian Economy

    Why in the News?

    The RBI may transfer a record ₹2.5–₹3 lakh crore surplus for 2024–25 after its recent review of its Economic Capital Framework (ECF).

    About Surplus Transfer by RBI:

    • Legal Basis: Under Section 47 of the RBI Act, 1934, the RBI must transfer its net surplus from its income to the central government.
    • Tax Exemption: As per Section 48, the RBI is exempt from income tax and direct taxes.
    • Timeline: RBI has recently changed its accounting year from June-July to April-May.
    • Recent Transfers: In 2023–24, RBI transferred a record ₹2.11 lakh crore; estimates for 2024–25 range between ₹2.5 and 3 lakh crore.
    • Reserve Allocation: Some surplus may be set aside for contingency or asset development funds.
    • Policy Debate: The government often seeks higher transfers, while the RBI stresses on maintaining financial stability and autonomy.
    • Past Disagreements: Tensions have occurred but are usually resolved through mutual agreement.

    How does the RBI generate its surplus?

    • Foreign Investments: RBI earns returns from investing in foreign government bonds, treasury bills, and deposits with other central banks.
    • Domestic Bonds: It receives interest on Indian government securities (G-secs) held in its portfolio.
    • Bank Lending: Income is earned by lending short-term funds to commercial banks via repo operations.
    • Commission Services: The RBI charges commissions for managing borrowings and public debt for the central and state governments.
    • Main Expenditure: Costs include printing currency, staff salaries and pensions, bank commissions, and dealer fees.
    • Net Surplus: The surplus is what remains after expenses, provisions, and reserves are accounted for.

    Back2Basics: Economic Capital Framework (ECF)

    • Purpose: The ECF guides how much capital RBI must retain and how much surplus can be transferred.
    • Y.H. Malegam Committee (2013): It reviewed the adequacy of reserves and surplus distribution policy in 2013, recommended a higher transfer to the government.
    • Introduction: Finalised in 2019, based on a committee led by Bimal Jalan.
    • Goal: Seeks to balance government funding needs with RBI’s financial resilience.
    • Reserve Components: Defines key buffers like the Contingency Risk Buffer (CRB), Revaluation Reserves, and Asset Development Fund.
    • Minimum CRB: Requires at least 5.5% of RBI’s balance sheet to be held as contingency reserve.
    • Transfer Stability: Allows for more consistent surplus transfers when RBI’s earnings are strong.

     

    [UPSC 2021] In India, the central bank’s function as the ‘lender of last resort’ usually refers to which of the following:

    1.Lending to trade and industry bodies when they fail to borrow from other sources.

    2.Providing liquidity to the banks having a temporary crisis.

    3.Lending to governments to finance budgetary deficits.

    Select the correct answer using the code given below:

    Options: (a) 1 and 2 (b)  2 only * (c) 2 and 3 (d) 3 only

     

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