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Type: Prelims Only

  • Special Intensive Revision of electoral rolls faces fresh SC scrutiny

    Why in the News

    The Supreme Court agreed to consider a plea alleging misuse of Form 7 during Uttar Pradesh’s Special Intensive Revision of electoral rolls. In Karnataka, nearly half of Bengaluru’s voters are flagged for possible deletion ahead of the draft roll. The draft roll is due on 17 August 2026.

    What is the Special Intensive Revision of electoral rolls?

    1. Definition: the Special Intensive Revision (SIR) is a house to house exercise by the Election Commission to update and verify electoral rolls.
    2. Enumeration: electors are mapped and verified, and doubtful entries are flagged for review.
    3. Draft stage: a draft roll is published, followed by a claims and objections phase before finalisation.

    What is Form 7 and how is it alleged to be misused?

    1. Form 7: a statutory mechanism under the Registration of Electors Rules, 1960, for limited and bona fide objections to inclusion, or deletion on narrow grounds.
    2. Allegation: a Congress Member of Parliament cited documented evidence of bulk, fraudulent and targeted deletion attempts.
    3. Targeting: the plea says objections hit minority and marginalised electors, including those already verified during the revision.
    4. Mechanical filing: Booth Level Officers reportedly received pre filled Form 7 applications with identical grounds and no credible basis.
    5. Respondents: the Election Commission and the Chief Electoral Officer of Uttar Pradesh are named respondents.

    What is the ASDDO flag in Karnataka?

    1. Full form: Absent, Shifted, Dead, Duplicate or Other.
    2. Scale: of Bengaluru’s 1.03 crore voters, 49.42 lakh are flagged under this category.
    3. State total: across Karnataka, 1.11 crore voters, one fifth of the 5.54 crore mapped, are flagged.
    4. Hotspots: ten Bengaluru constituencies show flagged deletions above 50 percent, led by Bommanahalli at 57.08 percent.

    [2017] For election to the Lok Sabha, a nomination paper can be filed by
    (a) Anyone residing in India.
    (b) A resident of the constituency from which the election is to be contested.
    (c) Any citizen of India whose name appears in the electoral roll of a constituency.
    (d) Any citizen of India.

  • FIRs cannot be withdrawn, three routes for relief under BNSS

    Why in the News

    The Supreme Court has clarified that State Governments cannot simply withdraw or cancel FIRs against student protesters through executive orders. Criminal proceedings can end only through procedures provided under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.

    What is a First Information Report (FIR) under the BNSS?

    • Definition: An FIR is the first written record of information relating to a cognizable offence received by the police.
    • Purpose: It sets the criminal investigation in motion under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.
    • No Executive Power: A government cannot cancel or erase an FIR through an executive order. Only the subsequent criminal proceedings can be terminated through legal procedures.

    Route 1: Closure Report

    • Provision: If the police find insufficient evidence during investigation, they may submit a closure report before the jurisdictional Magistrate under Section 193 of BNSS.
    • Judicial Scrutiny: The Magistrate is not bound to accept the report and may order further investigation or take cognizance.
    • Key Case: Abhinandan Jha v. Dinesh Mishra (1967) affirmed the Magistrate’s independent powers.

    Route 2: Withdrawal from Prosecution

    • Provision: Under Section 360 of BNSS, the Public Prosecutor, with the court’s consent, may withdraw from prosecution before judgment.
    • Independent Decision: The request must reflect the prosecutor’s own assessment and not merely government instructions.
    • Court’s Role: The court must ensure the withdrawal is in good faith and public interest.
    • Victim’s Rights: The victim must be given an opportunity to be heard.
    • Key Case: Sheonandan Paswan v. State of Bihar (1986).

    Route 3: Quashing by the High Court

    • Provision: Section 528 of BNSS preserves the High Court’s inherent powers to prevent abuse of process and secure the ends of justice.
    • Direct Remedy: An accused person may directly approach the High Court for quashing of criminal proceedings.
    • Limited Use: Courts have consistently held that this power should be exercised sparingly, particularly while investigation is ongoing.

    Important Judicial Precedent

    • Baroda Dynamite Case (1980): The Supreme Court upheld withdrawal of prosecutions arising from the Emergency period.
    • Principle: Withdrawal may be justified where it promotes public peace, reconciliation and good governance, provided legal safeguards are followed.

  • Extending creamy layer to SC, ST is Parliament’s call: Govt to top court

    Why in the News

    The Centre has told the Supreme Court that the creamy layer principle cannot be extended to Scheduled Castes (SCs) and Scheduled Tribes (STs) through judicial directions. It argued that any such change requires a decision by Parliament, as reservation for SCs and STs is based on historical and social discrimination rather than economic status.

    What is the Creamy Layer Principle?

    • Definition: Excludes the socially advanced and economically better off members of a reserved category from availing reservation benefits.
    • Origin: Introduced for Other Backward Classes (OBCs).
    • Current Position: The principle does not apply to SCs and STs, whose reservation is based on historical discrimination and social exclusion.

    What did the Centre argue before the Supreme Court?

    • Parliament’s Authority: Only Parliament can decide whether to extend the creamy layer principle to SCs and STs.
    • Constitutional Basis: Any exclusion must follow the procedure under Article 341(2) (and similarly Article 342 for STs).
    • Need for Evidence: Any income based classification should be preceded by a comprehensive empirical study.
    • Separation of Powers: Courts should not direct the executive to frame such a policy without legislative backing.
    • Reservation Basis: SC and ST identification depends on historical social disadvantage, not merely economic criteria.

    Key Judicial Precedents

    • State of Punjab v. Davinder Singh (2024): Held that sub classification within SCs and STs for equitable distribution of reservation benefits is constitutionally permissible.
    • E.V. Chinnaiah v. State of Andhra Pradesh (2005): Held that altering the SC list requires legislative action under Article 341.
    • Ashoka Kumar Thakur v. Union of India (2008): Clarified that the creamy layer principle does not apply to SCs and STs.

    What is the core issue?

    • Equitable Distribution: Petitioners seek greater benefits for the poorest sections within SCs and STs.
    • Social Justice vs Economic Criteria: The Centre maintains that SC/ST reservation addresses historical social stigma, not poverty alone.
    • Institutional Question: The case raises the issue of whether such reforms should come through judicial intervention or Parliamentary legislation.

  • Why households pledge gold instead of selling it

    Why in the News

    India’s gold market is witnessing a structural shift as investment demand and gold backed loans grow rapidly, while jewellery demand declines. The trend has also highlighted the limited success of the Gold Monetisation Scheme (GMS), 2015 in mobilising idle household gold.

    What is the Gold Monetisation Scheme (GMS), 2015?

    • Objective: Mobilise idle gold held by households and institutions into the formal financial system.
    • Mechanism: Individuals and institutions deposit physical gold with authorised banks and earn interest on the deposits.
    • Challenges: Limited participation due to taxation concerns, sentimental attachment to gold and procedural complexities.

    How is India’s gold demand changing?

    • Overall Demand: Total gold demand increased 2% year on year to 282 tonnes in the first half of the year.
    • Jewellery Demand: Fell 17.1% to 141.2 tonnes, among the weakest first quarter levels since 2000.
    • ETF Investment: Gold Exchange Traded Funds (ETFs) recorded a net inflow of 20 tonnes in the first quarter.
    • Bars and Coins: Demand rose 21.3% in volume and 105.5% in value during the first half of FY27.
    • Price Rise: Domestic gold prices have increased more than fivefold over the past decade.

    Why are households pledging gold instead of selling it?

    • Collateral Preference: Households increasingly use gold as collateral for loans rather than selling it.
    • Gold Loan Growth: Outstanding gold loan portfolios reached about Rs 5.4 lakh crore by June 2026.
    • Retail Loans: Bank loans backed by pledged jewellery touched about Rs 4.3 lakh crore by February 2026.
    • Limited Recycling: Despite record high prices, households continue to retain gold, resulting in low recycled supply.
    • External Stability: Household gold holdings and central bank gold purchases have supported India’s external balance and moderated pressure on the rupee.

    What are the concerns?

    • Financial Stability: Rapid expansion of gold loans requires close regulatory monitoring.
    • RBI Measures: Borrowers must fully repay principal and interest before the same gold can be repledged.
    • Price Risk: A sharp decline in gold prices could affect lenders through lower collateral values.

    [2016] What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?
    1. To bring the idle gold lying with Indian households into the economy.
    2. To promote FDI in the gold and jewellery sector.
    3. To reduce India’s dependence on gold imports.
    Select the correct answer using the code given below.
    (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

  • Taxation and Other Laws (Amendment) Bill and the UPI levy

    Why in the News

    The Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026 on 6 August 2026. The Bill gives legal backing to modify the zero charge regime on some digital payments. Analysis links the move to United States trade pressure over digital payment barriers.

    What is the zero Merchant Discount Rate regime on UPI and RuPay?

    1. Merchant Discount Rate (MDR): the fee a merchant pays to banks and card networks for processing a digital payment.
    2. Zero MDR rule: since 2020 India has barred any charge on Unified Payments Interface (UPI) and RuPay debit card transactions.
    3. Effect on users: UPI stays free at the point of payment, which drove mass adoption.
    4. Bill change: the amendment removes the link between the Payment and Settlement Systems Act, 2007 and the Income Tax Act, and lets the government modify the zero charge regime.
    5. Scope: any charge would apply to merchants, not end users, and the steering committee headed by the National Payments Corporation of India (NPCI) is yet to decide.

    What else does the Bill do?

    1. Manufacturing: it aims to promote domestic electronics manufacturing.
    2. Foreign capital: it replaces a June ordinance that exempted interest income and capital gains earned by Foreign Portfolio Investors from government securities.

    Why is the change linked to United States trade demands?

    1. Section 301 lever: the United States Trade Representative (USTR) runs a Section 301 investigation, a tool to act against foreign trade barriers.
    2. Barrier tag: in March 2026 USTR classified India’s digital payment policies as favouring domestic players.
    3. Lost business: Visa and Mastercard cite lost potential business as Indian consumers shifted to free UPI.
    4. Market cap concern: USTR flagged that two United States owned providers processed over 80 percent of UPI transactions, alongside the 30 percent cap on third party apps.
    5. Precedent: India earlier scrapped the 6 percent equalisation levy on digital services under similar pressure.

    What are the concerns around the levy?

    1. Adoption risk: charges could slow UPI use if passed to merchants and then to prices.
    2. Policy autonomy: critics read the change as a concession under trade negotiation rather than domestic reform.
    3. Revenue pool: an interoperable zero cost platform limits card network fee income, which the change could restore.

    [2026] Which one of the following best describes the key objective of India’s ‘Open Network for Digital Commerce’ (ONDC) initiative?
    (a) To allow digital government control over all digital commerce transactions
    (b) To replace private e-commerce players
    (c) To break the dominance of large e-commerce platforms by enabling interoperability across networks
    (d) To mandate UPI-based payments for all online transactions

  • Why is the government offloading stake in LIC?

    Why in the News

    The Government of India has launched an Offer for Sale (OFS) to reduce its stake in the Life Insurance Corporation of India (LIC). The move aims to meet SEBI’s minimum public shareholding (MPS) requirement and contribute to the government’s FY27 disinvestment target.

    What is an Offer for Sale (OFS)?

    • Definition: An Offer for Sale (OFS) is a mechanism through which an existing shareholder (promoter) sells shares to the public through the stock exchange.
    • No Fresh Capital: The company does not receive any funds; the sale proceeds go to the selling shareholder.
    • Current Issue: The Government offered 2.5% equity, with a 4% green shoe option, at a floor price of Rs 382 per share.
    • Discount: The floor price represented about a 10% discount to LIC’s closing market price on 3 August.

    What is the Minimum Public Shareholding (MPS) norm?

    • Requirement: SEBI mandates that listed companies maintain a minimum level of public shareholding.
    • LIC Deadline: LIC has been given time until 16 May 2027 to achieve 10% public shareholding.
    • Purpose: The OFS helps LIC move towards compliance with this regulatory requirement.

    Why is the Government selling its stake now?

    • Regulatory Compliance: To meet SEBI’s public shareholding norms.
    • Disinvestment Target: The sale contributes towards the FY27 disinvestment target of Rs 80,000 crore.
    • Estimated Receipts: At the base price, the issue could raise around Rs 31,000 crore.
    • Strong Demand: The institutional investor portion was oversubscribed 3.32 times, leading to the exercise of the green shoe option.
    • Implementing Agency: The process is managed by the Department of Investment and Public Asset Management (DIPAM).

    What is LIC’s position in the insurance sector?

    • Market Leader: LIC accounted for over 56% of India’s life insurance market in FY26.
    • Systemically Important: LIC is designated as a Domestic Systemically Important Insurer (D-SII), subject to enhanced regulatory supervision.
    • Listing History: LIC’s 2022 IPO sold 3.5% government stake and raised Rs 20,557 crore.

    [2025] Consider the following statements:
    I. Capital receipts create a liability or cause a reduction in the assets of the Government.
    II. Borrowings and disinvestment are capital receipts.
    III. Interest received on loans creates a liability of the Government.
    Which of the statements given above are correct?
    (a) I and II only

    (b) II and III only

    (c) I and III only

    (d) I, II and III

  • RBI keeps Tata Sons in the NBFC Upper Layer list

    Why in the News

    The Reserve Bank of India (RBI) has retained Tata Sons in the NBFC Upper Layer (NBFC-UL) under its Scale Based Regulation (SBR) framework. This revives the requirement for Tata Sons to list on a stock exchange, while its request for deregistration as an NBFC remains under RBI’s consideration.

    What is the NBFC Upper Layer under the Scale Based Regulation (SBR) Framework?

    • Definition: The Scale Based Regulation (SBR) framework classifies NBFCs into four layers based on their size, activity and risk profile.
    • Upper Layer (NBFC-UL): Covers large, systemically important NBFCs requiring enhanced regulatory oversight.
    • Eligibility: RBI identifies NBFC-UL entities with assets of Rs 1 lakh crore or more.
    • Mandatory Listing: An NBFC classified in the Upper Layer must list on a recognised stock exchange within three years.
    • Minimum Tenure: Once classified, an NBFC remains in the Upper Layer for at least five years, even if it later falls below the threshold.

    What is a Core Investment Company (CIC)?

    • Definition: A Core Investment Company (CIC) is an NBFC that primarily holds investments in its group companies rather than engaging in public lending.
    • Tata Sons: RBI classifies Tata Sons as a Core Investment Company under the NBFC Upper Layer.

    Why has the listing issue resurfaced?

    • Debt Repaid: Tata Sons repaid its borrowings in 2024 and no longer directly raises public funds.
    • Indirect Public Funds: RBI considers investments held by listed Tata companies in Tata Sons as an indirect form of public funding.
    • Deregistration Pending: Tata Sons has sought deregistration as an NBFC, but RBI has stated that the Upper Layer classification is without prejudice to that request.
    • Internal Differences: The proposed listing has divided the Tata Trusts, while the Pallonji Mistry Group supports listing to unlock shareholder value.

    What additional regulations apply to NBFC Upper Layer entities?

    • Capital Requirements: Higher capital adequacy norms, including Common Equity Tier 1 (CET1) requirements.
    • Governance Standards: Mandatory board committees, stronger provisioning norms and prudent compensation policies.
    • Current Coverage: RBI has classified 17 NBFCs in the Upper Layer, including Bajaj Finance, Tata Capital and Shriram Finance.

    [2026] Consider the following statements about the Non-Banking Financial Companies (NBFCs) in India:
    1. NBFCs cannot accept demand deposits.
    2. All the NBFCs operating in India have to be registered with the RBI.
    3. NBFCs form part of the payment and settlement system and can issue cheque drawn on itself.
    4. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to the depositors of deposit taking NBFCs.
    Which of the statements given above is/are correct?
    (a) 1 and 4

    (b) 1, 2 and 3

    (c) 4 only

    (d) 2, 3 and 4

  • PIB Backgrounder Charts India’s Electric Vehicle Ecosystem

    Why in the News

    A PIB Backgrounder has highlighted the rapid growth of India’s Electric Vehicle (EV) ecosystem, showcasing significant progress in EV adoption, charging infrastructure, battery manufacturing, and government support.

    What does the Backgrounder Highlight?

    • EV Penetration: Increased from 0.08% in 2016 to 8.26% in 2026.
    • EV Sales: Rose from about 50,000 units in 2016 to 2.3 million units in 2025.
    • Charging Infrastructure: India had 52,718 public charging stations by July 2026, with a target of about 1.32 million stations by 2030.
    • National Goal: Achieve a 30% share of electric vehicles in new vehicle sales by 2030 under the EV30@30 initiative.

    PM E-DRIVE Scheme

    • Full Form: PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE).
    • Launched: 2024, replacing the FAME scheme.
    • Outlay: ₹10,900 crore.
    • Coverage: Electric two-wheelers. Electric three wheelers. Electric trucks. Electric buses. Electric ambulances.
    • Objective: Accelerate EV adoption through demand incentives and supporting infrastructure.

    Battery Manufacturing Push

    Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC)

    • Outlay: ₹18,100 crore.
    • Manufacturing Target: 50 GWh of Advanced Chemistry Cell battery capacity.
    • Objective: Promote domestic battery manufacturing and reduce import dependence.

    Earlier Initiative: FAME Scheme

    • Full Form: Faster Adoption and Manufacturing of Electric Vehicles (FAME).
    • Launched: 2015.
    • Phase II: Implemented until 2024.
    • Replaced by: PM E-DRIVE in 2024.

    [2025] In the context of electric vehicle batteries, consider the following elements:

    I. Cobalt

    II. Graphite

    III. Lithium

    IV. Nickel

    How many of the above usually make up battery cathodes?

    (a) Only one (b) Only two (c) Only three (d) All the four

  • BioE3 Policy Reports Early Biomanufacturing Gains

    Why in the News

    The Government has highlighted the early achievements of the Biotechnology for Economy, Environment and Employment (BioE3) Policy, demonstrating growing investments and capacity in India’s biomanufacturing sector.

    What is the BioE3 Policy?

    • Full form: Biotechnology for Economy, Environment and Employment (BioE3) Policy.
    • Approved: 2024 by the Union Cabinet.
    • Implementing Agency: Department of Biotechnology (DBT).
    • Objective: Promote high capacity biomanufacturing to drive economic growth, environmental sustainability, and employment generation.

    Key Features of the Policy

    • Focus Areas: The policy identifies six thematic sectors:
      • Bio based chemicals.
      • Smart proteins.
      • Precision biotherapeutics.
      • Climate resilient agriculture.
      • Biofuels and carbon capture.
      • Marine and space biotechnology.
    • Funding Pattern:
      • Government support of up to 70% of project cost.
      • Remaining contribution from the private sector.
    • Industry Participation:
      • Over 600 beneficiaries have utilised BioE3 facilities.
      • Private investment commitments have reached about ₹602 crore.
    • Long term Goal: Support India’s vision of a $300 billion bioeconomy by 2030.

    What is Biomanufacturing?

    • Definition: The production of chemicals, fuels, materials, pharmaceuticals and other products using biological systems such as microorganisms, enzymes or engineered cells.
    • Benefits:
      • Reduces dependence on fossil fuel based manufacturing.
      • Promotes sustainable industrial production.
      • Supports the circular bioeconomy.

    What is a Biofoundry?

    • A highly automated research facility that designs, builds, tests and analyses biological systems.
    • Accelerates the development of new biotechnology products through automation and artificial intelligence.

    [2026] Which of the following statements with regard to GenomeIndia Project is/are correct ?
    1. It is a part of the Human Genome Project.
    2. The project is funded by the Department of Biotechnology (DBT), Government of India.
    3. Its primary aim is to build a catalogue of genetic diversity of the Indian population.
    Select the answer using the code given below:

    [A] 1 only

    [B] 2 and 3 only

    [C] 1 and 2 only

    [D] 1, 2 and 3

  • Indian Scientists Develop a Protocol to Densify Quantum Networks

    Why in the News

    Indian scientists have developed a new routing protocol called General Concurrence Percolation (GCP) to improve the efficiency and connectivity of quantum networks, marking a significant advance in quantum communication.

    What is the General Concurrence Percolation (GCP) Protocol?

    • Innovation: A routing protocol designed to strengthen quantum entanglement across a quantum network.
    • Approach: Uses localized geometric routing to identify the shortest communication paths.
    • Key feature: Preserves intermediate network nodes instead of disconnecting them, improving network stability.
    • Outcome: Simulations show the protocol reduces the minimum entanglement required to connect an entire quantum network.

    What is Quantum Entanglement?

    • Definition: A quantum phenomenon in which two or more particles remain correlated so that the state of one is intrinsically linked to the state of the other, regardless of distance.
    • Challenge: Entanglement weakens over long distances, making reliable quantum communication difficult.
    • Importance: It is the foundation of quantum communication, quantum cryptography, and quantum computing.

    Why is the Development Significant?

    • Improves the efficiency of long distance quantum communication.
    • Reduces the amount of entanglement needed for network connectivity.
    • Makes future quantum internet infrastructure more robust and scalable.
    • Supports secure communication through quantum encryption technologies.
    • Strengthens India’s capabilities in advanced quantum technologies.

    [2026] Which of the following statements with regard to the National Quantum Mission (NQM) is/are correct?
    1. It aims at developing intermediate-scale quantum computers with 50 – 1000 physical qubits.
    2. Its implementation includes setting up of four Thematic Hubs (T-Hubs) in academic and national R&D institutes across India.
    Select the answer using the code given below :

    [A] 1 only

    [B] 2 only

    [C] Both 1 and 2

    [D] Neither 1 nor 2