10 Years of the Unified Payments Interface

For Prelims: Unified Payments Interface,  Immediate Payment Service, National Payments Corporation of India , RuPay Credit Cards, JAM Trinity

For Mains: Digital economy and financial inclusion through fintech, Role of Digital Public Infrastructure (DPI) in governance

Source: PIB

Why in News?

India marked the 10th anniversary of the Unified Payments Interface (UPI), highlighting its journey from a nascent platform in 2016 to a global digital payments leader in 2026. It has transformed India “from queues to QR codes (Quick Response codes),” emerging as the backbone of the country’s digital financial ecosystem.

Summary

• UPI in 10 years has transformed India’s digital economy by enabling fast, low-cost, and inclusive payments, driving financial inclusion, formalization, and global leadership in real-time transactions.
• However, challenges like cyber fraud, market concentration, infrastructure strain, and micro-debt risks require stronger regulation, financial literacy, and sustainable ecosystem reforms.

What is the Unified Payments Interface (UPI)?

• About: UPI is an advanced version of Immediate Payment Service (IMPS). It is a round-the-clock real-time payment system that facilitates inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions.
• Developer: It was developed by the National Payments Corporation of India (NPCI), an umbrella organization for operating retail payments and settlement systems, initiated by the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA).
• Key Features:
  • Interoperability: A single mobile application can access different bank accounts.
  • Virtual Payment Address (VPA): UPI replaces complex banking details with a simple, easy-to-remember UPI ID or mobile number, making transactions as easy as sending a text message.
  • Push and Pull: Allows both sending (push) and requesting (pull) of money.
• Innovations and Security Enhancements in UPI:
  • UPI 2.0: Launched by NPCI in 2018, introduces enhanced features like one-time mandates (pre-authorization), invoice-in-the-inbox for verification, and signed intent/QR codes for enhanced security.
  • BHIM (Bharat Interface for Money): It  is a mobile payment application developed by the NPCI that allows users to send and receive money instantly using the UPI.
  • Product Diversification: 
    • UPI Lite: Designed for quick, low-value offline transactions to reduce the load on core banking systems.
    • UPI AutoPay: Streamlines recurring mandates (e.g., bills, subscriptions), boasting over 500 million monthly debits.
    • Credit on UPI: Unlocks pre-approved credit lines for underserved segments, effectively democratizing short-term loans and bridging the credit gap.
  • Enhanced Security: To combat rising cyber fraud, the Reserve Bank of India (RBI) mandated two-factor authentication (2FA) for digital payments effective 1st April 2026. 
    • This adds verification layers like biometrics, PINs, or secure tokens alongside OTPs, reinforcing trust.
• Global Footprint of India's UPI:
  • Global Endorsement: Institutions like the International Monetary Fund (IMF) and the World Bank, have hailed UPI as the gold standard for inclusive digital public infrastructure (DPI).
  • International Integration: UPI is now operational or linked with payment systems in the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius, and Qatar. 
    • This aids the Indian diaspora by lowering remittance costs and facilitates seamless cross-border travel for Indian tourists.
• From Queues to QR Codes:

  • Breaking the Cash Habit (2016-2018): Aided by demonetization and affordable telecom data, UPI gained its initial critical mass, primarily serving peer-to-peer (P2P) transfers.

  • Merchant Revolution (2019-2022): The deployment of interoperable QR codes at millions of retail touchpoints drove explosive P2M (Person-to-Merchant) growth. The Zero MDR (Merchant Discount Rate) policy was instrumental here.
  • Deepening Financial Inclusion (2022-2024): Introduction of innovations like UPI 123Pay (for feature phones without internet) and UPI Lite (for low-value offline transactions) pushed the technology deep into rural Bharat.
  • Credit & Global Expansion (2024-2026): The integration of RuPay Credit Cards on UPI blurred the lines between payments and credit. Simultaneously, UPI emerged as a tool for India’s "Digital Diplomacy".

Historical Context of Digital Payments in India

• Evolution of Transactions: India’s financial journey transitioned from barter systems and coins to paper currency and cheques.
• Early Digital Milestones: The Reserve Bank of India (RBI) laid the early groundwork by introducing Real-Time Gross Settlement (RTGS) in 2004 and Immediate Payment Service (IMPS) in 2010.
  • While IMPS and RTGS enabled faster transfers, they required complex inputs (IFSC codes, account numbers) and remained largely restricted to the already-banked, urban populations. A scalable, inclusive, and user-friendly digital infrastructure was missing.
• JAM Trinity Set the Stage for UPI: India’s digital payment revolution is built upon a foundational architecture known as the JAM Trinity (proposed in the Economic Survey of 2014-15). This framework structurally prepared citizens to engage with digital services:
  • Jan Dhan (Pradhan Mantri Jan-Dhan Yojana): Launched in 2014, it enabled the massive scale opening of zero-balance accounts, bringing millions of underserved citizens into the formal banking sector.
  • Aadhaar: Provided a secure, biometric-backed digital identity, crucial for authentication and targeting.
  • Mobile Connectivity: The rapid expansion of affordable internet and smartphones empowered citizens with a real-time interface.
  • Direct Benefit Transfer (DBT): The JAM Trinity found its first major success in DBT, seamlessly routing government subsidies directly to bank accounts, building rural trust in digital finance and paving the way for UPI adoption.
• India Stack: India has evolved to further Digital Public Infrastructure (DPI) by transitioning from foundational identity and payment systems (JAM Trinity) to a comprehensive, multi-sectoral "India Stack" that emphasizes interoperability, open standards, and global, secure, population-scale digital public goods.

What is the Significance of UPI in the Indian Economy?

• Financial Inclusion at Scale: By removing the friction of traditional banking, UPI brought millions of unbanked and underbanked citizens into the formal financial fold.
  • From 216 banks in 2021 to 691 by January 2026, the network has grown into a unified payments infrastructure, enabling users to transact effortlessly regardless of their bank or platform.
• Formalization of the Economy: Digital transaction trails have created "information collateral." Micro, Small, and Medium Enterprises (MSMEs) and street vendors can now use their UPI transaction history to access formal credit from banks, bypassing loan sharks.
• Plugging Governance Leakages: Integrated seamlessly with the JAM Trinity (Jan Dhan, Aadhaar, Mobile), UPI has streamlined Direct Benefit Transfers (DBTs), ensuring welfare schemes like PM-KISAN (farmer income support) reach beneficiaries instantly without middlemen.
• Digital Public Infrastructure (DPI) as Soft Power: India has successfully showcased UPI as a scalable, open-source DPI, distinguishing itself from the privately owned mega-platforms of the West (like Visa/Mastercard) and the state-controlled models of China.
• High-Velocity Economy: Instant settlements improve cash flow for businesses, increasing the overall velocity of money in the economy.
  • In January 2026 alone, UPI processed 21.70 billion transactions, accounting for 81% of all retail digital transactions in India.
  • Furthermore, India now commands a massive 49% share of global real-time payment transactions.
• Internationalisation of Rupee: Cross-border UPI linkages promote rupee-based transactions, reducing reliance on dollar-dominated systems and supporting India’s push toward currency internationalisation.

What are the Concerns Regarding UPI?

• The Duopoly Risk: The UPI ecosystem is highly concentrated, with two major foreign-owned fintech players (PhonePe and Google Pay) commanding over 80% of the market share. 
  • NPCI's proposed 30% market cap rule has faced repeated implementation hurdles.
• The Zero MDR Dilemma: The government mandates a Zero MDR on UPI transactions to encourage adoption. 
  • However, Payment Service Providers (PSPs) and banks argue this leaves them with no revenue model to upgrade and maintain the massive server infrastructure required, leading to high failure rates during peak hours.
• Cybersecurity & Fraud: With mass adoption, digital illiteracy (NSSO data reveals that only 24% of rural households have internet access compared to 66% in cities) has been heavily exploited. 
  • Phishing, screen-sharing scams, and social engineering attacks targeting vulnerable demographics have surged.
  • In physical stores, fraudsters have been known to paste their own QR codes over the merchant’s original QR code, hijacking the payments.
• Infrastructure Strain: The sheer volume of micro-transactions (e.g., paying less than  Rs 10) puts immense strain on the Core Banking Systems (CBS) of traditional banks, sometimes leading to system outages.
• Gender Gap: In many rural households, there is only one smartphone, typically controlled by the male head of the family. 
  • This systemic digital gender divide means that the financial empowerment and independence promised by UPI disproportionately bypasses rural women.
• "Pain of Paying" is Lost: Traditional cash transactions inherently trigger a psychological "pain of paying," which curbs overspending. UPI’s frictionless, one-tap nature removes this psychological barrier, leading to impulsive consumption.
  • Credit lines now linked to UPI, there is a growing risk of a micro-debt trap, where young and low-income users may overspend on small, frequent purchases without realizing the cumulative interest burden.

Way Forward

• Calibrated MDR Implementation: To ensure the ecosystem's financial sustainability, the RBI and NPCI could introduce a tiered MDR system—keeping it free for small merchants but applying a nominal fee for large corporate retailers.
• Enforcing Market Caps: Strict regulatory oversight is needed to enforce the 30% market share cap to prevent monopolistic practices and foster domestic fintech competition.
• Enhancing Financial Literacy: A nationwide, sustained digital literacy campaign is essential, focusing on cybersecurity hygiene rather than just adoption.
• Upgrading Core Banking: Banks must aggressively invest in cloud-native, scalable IT infrastructure to handle the projected exponential growth of transactions in the next decade.

Conclusion

UPI has bridged the gap between the banked and unbanked, enabling fast, simple, and inclusive digital transactions across India. From a homegrown innovation to a global benchmark, it has transformed the country from cash queues to QR-based payments, driving transparency, financial inclusion, and economic progress.

Drishti Mains Question:

Q. "The Unified Payments Interface (UPI) is no longer just a payment mechanism, but a vital Digital Public Infrastructure (DPI) driving India's economic formalization." Discuss.

Frequently Asked Questions (FAQs)

1. What is UPI?
   A real-time, interoperable digital payment system developed by NPCI for P2P and P2M transactions.
2. What is the JAM Trinity?
   Integration of Jan Dhan, Aadhaar, and Mobile to enable financial inclusion and DBT delivery.
3. How does UPI promote financial inclusion?
   It enables low-cost, instant transactions, bringing unbanked populations into the formal system.
4. What is the Zero MDR issue?
   No transaction fee on UPI payments, creating sustainability concerns for banks and PSPs.
5. What is the micro-debt trap risk in UPI?
   Easy access to credit via UPI may lead to over-borrowing and hidden interest burdens, especially among youth and low-income users.

UPSC Civil Services Examination, Previous Year Questions (PYQs) 

Prelims

Q1. With reference to digital payments, consider the following statements: (2018) 

1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account. 
2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication. 

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 

Ans: (a) 

Q2. Which of the following is a most likely consequence of implementing the ‘Unified Payments Interface (UPI)’? (2017) 

(a) Mobile wallets will not be necessary for online payments.
(b) Digital currency will totally replace the physical currency in about two decades.
(c) FDI inflows will drastically increase.
(d) Direct transfer of subsidies to poor people will become very effective. 

Ans: (a) 

Q3. Consider the following statements: (2017) 

1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country. 
2. NPCI has launched RuPay, a card payment scheme. 

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 

Ans: (c)

---

Mains:

Q. Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion.

Maternal Healthcare in India

For Prelims:  World Health Organization, Maternal Mortality Ratio, SDG Target 3.1, Health and Wellness Centers , Anemia

For Mains: Maternal Mortality and SDG 3.1 targets, Public health infrastructure and governance challenges, Role of social determinants in health outcomes

Source: IE

Why in News? 

A study in The Lancet Obstetrics, Gynaecology & Women’s Health highlights that although India has reduced maternal mortality significantly since 1990, the progress has slowed after 2015, raising concerns over gaps in maternal healthcare and the need for a more comprehensive approach beyond mere access.

Summary

• Despite a significant decline in maternal mortality (MMR) in India, progress has slowed after 2015, with regional disparities and preventable causes still posing major challenges.
• Strengthening healthcare quality, infrastructure, midwifery, and addressing social determinants like anemia and early marriage is essential to achieve SDG target 3.1.

What are the Key Highlights of the Study on Maternal Healthcare?

• Pace of Progress and Persistent Burden: Despite maternal mortality dropping to a fifth of its 1990 levels, progress has worryingly slowed since 2015. 
  • India still accounts for one in 10 global maternal deaths, with preventable causes like haemorrhages, infections, and blood pressure-related disorders remaining the primary culprits.
• SDG Challenge and Regional Disparities: Meeting the Sustainable Development Goal (SDG) target 3.1 of reducing maternal mortality to 70 deaths per 1,00,000 live births by 2030 is hindered by severe regional imbalances. 
  • While states like Kerala, Maharashtra, and Tamil Nadu have achieved an MMR below 70, others, such as Assam (195), Madhya Pradesh (173), Uttar Pradesh (167), and Bihar (118), lag behind the national average, reflecting regional disparities in maternal healthcare.
• The Pandemic's Impact: Covid-19 exposed the system's fragility, diverting frontline workers and delaying essential antenatal visits and institutional deliveries.
• Strengthening Healthcare Infrastructure: The study emphasises the need for a decisive shift towards strengthening primary and secondary healthcare systems.
  • It also highlights that expanding medical infrastructure alone will be insufficient unless the social determinants of health are adequately addressed.

Maternal Mortality

• Maternal Mortality: It is defined as the death of a woman while pregnant or within 42 days of termination of pregnancy, from any cause related to or aggravated by pregnancy or its management, excluding accidental or incidental causes. It is a key health indicator measuring risks associated with childbirth.
  • Globally, in 2023, approximately 260,000 women died during or following pregnancy, equating to over 700 preventable maternal deaths every day (one death every two minutes).
• Maternal Mortality Ratio (MMR): It is the number of maternal deaths per 100,000 live births in a given time period. 
  • It is a key indicator used to assess the quality of maternal healthcare and access to medical services during pregnancy and childbirth. 
• India’s MMR: India has made progress, with the MMR falling from 384 in 2000 to 103 in 2020, and further down to 80 in 2023, an 86% drop since 1990, surpassing the global average decline of 48%.

What are the Challenges Hindering Quality Maternal Healthcare in India?

• Human Resource Crisis in Rural India: According to the Rural Health Statistics (RHS) 2021-22, there is an alarming nearly 80% shortfall of specialized doctors (Surgeons, Obstetricians & Gynaecologists, Physicians, and Paediatricians) at Community Health Centres (CHCs).
• Underutilized Midwifery Cadre: Unlike Scandinavian countries or the UK, where midwives lead low-risk deliveries, India’s healthcare system remains highly doctor-centric. 
  • The Nurse Practitioner in Midwifery (NPM) initiative is still in its nascent stages, leaving existing nurses severely overburdened.
• Infrastructure and Supply Chain Deficits: Many designated First Referral Units (FRUs) lack 24x7 operational readiness for Emergency Obstetric Care (EmOC).

  • Postpartum Haemorrhage (severe bleeding) is the leading cause of maternal death in India. Yet, secondary care centers frequently lack functional, fully stocked blood

  • banks or even basic blood storage units, leading to fatal delays as patients are shuttled to tertiary urban hospitals.

  • Intermittent shortages of life-saving, low-cost drugs such as Magnesium Sulfate (for eclampsia/seizures) and Oxytocin (for bleeding) cripple frontline workers' ability to stabilize mothers.

• Quality vs. Commercialization Divide: Quality care means appropriate care. According to the National Family Health Survey (NFHS-5), the rate of Caesarean sections in private health facilities in India stands at an alarming 47.4%, far exceeding the WHO’s recommended ideal rate of 10-15%. 

  • This over-medicalization exposes women to unnecessary surgical risks, longer recovery times, and higher out-of-pocket expenditures.

• Ignoring the Social Determinants of Health: Clinical quality cannot completely offset the deep socio-economic inequalities that women face before they even become pregnant.

  • According to NFHS-5, a staggering 57% of women (aged 15-49) in India are anemic. Driven by patriarchal household dynamics where women often "eat last and least," chronic malnourishment means minor obstetric bleeding can easily turn fatal.

  • Despite legal frameworks, 23.3% of women aged 20-24 years were married before the age of 18 (NFHS-5). Teenage bodies are biologically less prepared for childbirth, leading to a higher incidence of cephalopelvic disproportion and prolonged labor.

What Measures can Strengthen Maternal Healthcare?

• Adopting Respectful Maternity Care (RMC): Moving beyond clinical outcomes to prioritize the dignity of the mother. This includes training healthcare staff in "soft skills" to eliminate obstetric violence, ensuring privacy during labor, and allowing a "birth companion" of the woman's choice, which is proven to reduce stress and complications.
• Midwifery-Led Care Units (MLCUs): Establishing a dedicated cadre of Nurse Practitioners in Midwifery (NPM). Midwives can handle low-risk natural births, which decongests tertiary hospitals and reduces the "epidemic" of unnecessary C-sections.
• Blood Storage and Transport: Expanding the "Hub and Spoke" model for blood banks. 
• Every high-delivery-load facility must have a functional blood storage unit to treat Postpartum Hemorrhage (PPH) within the "golden hour."
• Digital Tracking: Leveraging the Pradhan Mantri Surakshit Matritva Abhiyan portals to identify "High-Risk Pregnancies" (e.g., severe anemia or hypertension) early and ensuring they are referred to specialists long before labor begins.
• Combatting Maternal Anemia: Strengthening the Anemia Mukt Bharat strategy through mandatory iron-folic acid (IFA) supplementation and, more importantly, community-level nutritional counseling to change the "women eat last" household dynamic.
• Empowering ASHA and Anganwadi Workers: Providing these frontline workers with better diagnostic tools (like digital hemoglobinometers) and higher incentives for tracking postpartum care, not just the delivery itself.
• Conclusion
• India has made strong progress in maternal healthcare, but the final stretch remains challenging. Achieving SDG 3.1 will require shifting focus from infrastructure to quality, equitable care, along with improving women’s social and nutritional status.

Drishti Mains Question:

Q. “India has improved maternal health outcomes, yet structural and social challenges persist.” Critically examine

Frequently Asked Questions (FAQs)

1. What is Maternal Mortality?

Death of a woman during pregnancy or within 42 days of termination due to pregnancy-related causes; a key public health indicator.

2. What is Maternal Mortality Ratio (MMR)?

Maternal Mortality Ratio (MMR) is the number of maternal deaths per 100,000 live births; it reflects the quality of maternal healthcare.

3. What is the SDG target for maternal health?

Sustainable Development Goal (SDG) 3.1 aims to reduce global MMR to below 70 per 100,000 live births by 2030.

4. What are the major causes of maternal deaths in India?

Haemorrhage, infections, and hypertensive disorders are the leading preventable causes.

5. What is Respectful Maternity Care (RMC)?

Respectful Maternity Care (RMC) ensures dignity, privacy, informed consent, and emotional support for women during childbirth.

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Mains

Q. In order to enhance the prospects of social development, sound and adequate health care policies are needed particularly in the fields of geriatric and maternal health care. Discuss. (2020)

Birth Anniversary of Dr. Bhimrao Ramji Ambedkar

Source: PIB 

Why in News? 

On 14th April 2026, the nation celebrates the 135th Birth Anniversary of Dr. Bhimrao Ramji Ambedkar, the chief architect of the Indian Constitution, a pioneering social reformer, an eminent jurist, and a towering intellectual who dedicated his life to the eradication of social inequality in India.

Who was Dr. B.R. Ambedkar?

• Early Life: Born on 14th April 1891, in Mhow, Central Provinces (now Madhya Pradesh), into the Mahar caste.  He faced severe socio-economic discrimination from a young age.
• Education: He was a brilliant scholar, earning doctorates in economics from both Columbia University (USA) and the London School of Economics (UK).
• Political Career: He served as the First Law Minister of Independent India and was the Chairman of the Drafting Committee of the Constituent Assembly.
• Organizations and Literary Works: Dr. B. R. Ambedkar founded key organizations such as the Bahishkrit Hitakarini Sabha (1924) for socio-economic upliftment of depressed classes, the Independent Labour Party (1936) for workers’ rights, and the Scheduled Castes Federation (1942) to advocate for Dalit rights. 

  • He also used print media through journals like Mooknayak (1920), Bahishkrit Bharat (1927), Samatha (1929), and Janata (1930) to spread social awareness. 

  • His major works, including Annihilation of Caste (1936), The Untouchables (1948), Buddha or Karl Marx (1956), and The Buddha and His Dhamma (1957), remain foundational texts on social justice and equality.

• Posthumous Honor: He was awarded India’s highest civilian honor, the Bharat Ratna, in 1990.

Do You Know?

• The Government of India has developed five key sites associated with B. R. Ambedkar as the ‘Panchteerth’ to preserve and promote his legacy.
  • Janma Bhoomi: Mhow, Madhya Pradesh (Birthplace).
  • Shiksha Bhoomi: London, UK (Where he stayed while studying).
  • Deeksha Bhoomi: Nagpur, Maharashtra (Where he embraced Buddhism in 1956).
  • Mahaparinirvan Bhoomi: Delhi (Where he breathed his last on 6th December 1956).
  • Chaitya Bhoomi: Mumbai, Maharashtra (Place of cremation).

What are the Key Contributions of Dr. B.R. Ambedkar?

• Social Reform & Crusade Against Caste:
  • Mahad Satyagraha (1927): He led the Mahad Satyagraha to assert the rights of the untouchables to draw water from the public Chavdar tank in Mahad, Maharashtra.
  • Temple Entry Movements: He actively led movements advocating for the right of marginalized castes to enter Hindu temples (e.g., Kalaram Temple entry movement, 1930).
  • Poona Pact (1932): Following Mahatma Gandhi's fast unto death against the Communal Award (which granted separate electorates for depressed classes), Ambedkar signed the Poona Pact, securing reserved seats for the depressed classes within the general Hindu electorate.
• Constitutional & Democratic Contributions:
  • Drafting the Constitution: As Chairman of the Drafting Committee, he ensured that the Constitution incorporated robust safeguards for minorities, marginalized sections, and women.
    • Ambedkar believed India's foundation should rest on liberty, equality, and fraternity, inspired by the French Revolution (1789-1799).
  • Article 32: He famously called Article 32 (Right to Constitutional Remedies) the "heart and soul" of the Indian Constitution.
• Economic and Labor Reforms:
  • Foundation of RBI: The conceptual framework for the Reserve Bank of India (RBI) was based on the guidelines presented by him to the Hilton Young Commission, derived from his book "The Problem of the Rupee: Its Origin and Its Solution."
  • Labor Rights: As the Labour Member of the Viceroy’s Executive Council, he introduced significant reforms including the reduction of factory working hours (from 14 to 8 hours), equal pay for equal work irrespective of gender, and maternity benefits.
• Women’s Empowerment: He introduced the Hindu Code Bill in the Parliament to grant women equal rights in inheritance, marriage, and divorce. 
  • When the bill was stalled due to orthodox opposition, he resigned from his post as the Law Minister in 1951.
• Religion: Navayana (New Vehicle) Buddhism, founded by B.R. Ambedkar in 1956, is a reinterpretation of Buddhism that emphasizes social equality and class struggle over traditional spiritual doctrines. 
  • It rejects core Buddhist doctrines like the Four Noble Truths, karma, rebirth, nirvana, and monasticism, considering them pessimistic and irrelevant to social justice. 
  • Dhammachakra Pravartan Din is observed annually on 14th October to commemorate the historic mass conversion of B. R. Ambedkar and his followers to Buddhism at Deekshabhoomi, Nagpur, in 1956.

Click here to Read: Comparison of Gandhi and Ambedkar’s Philosophies

UPSC Civil Services Examination Previous Year Questions (PYQ) 

Prelims

Q. Which of the following parties were established by Dr. B. R. Ambedkar? (2012)

1. The Peasants and Workers Party of India 
2. All India Scheduled Castes Federation 
3. The Independent Labour Party 

Select the correct answer using the codes given below: 

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

Ans: (b)

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Mains 

Q. Mahatma Gandhi and Dr. B.R. Ambedkar, despite having divergent approaches and strategies, had a common goal of amelioration of the downtrodden. Elucidate. (2015)

Government Notifies Startup India FoF 2.0

Source: PIB

Recently, the government notified Startup India Fund of Funds (FoF) 2.0 with a ₹10,000 crore corpus to mobilise capital for startups and strengthen India’s innovation ecosystem.

• Background: It builds on the earlier Fund of Funds for Startups (FFS 1.0, 2016) under the Startup India Action Plan to address funding gaps.
• Objective: To catalyse domestic capital and support startups across key sectors, especially where private funding remains limited.
• Key Features: The fund will invest in SEBI-registered Alternative Investment Funds (AIFs), which in turn invest in startups. 
  • It follows a segmented approach focusing on deep tech, early-stage, innovative manufacturing, and technology-driven startups. 
  • It also provides higher contribution for capital-intensive sectors and flexibility for larger corpus and longer-duration AIFs.
• Implementation Agency: SIDBI (Small Industries Development Bank of India) will operationalise the scheme with provision for an additional implementing agency.
• Governance Structure: Selection of AIFs will be undertaken by a Venture Capital Investment Committee (VCIC), with monitoring and oversight by an Empowered Committee (EC).
• Time Frame: Investments will be spread across 16th and 17th Finance Commission cycles.
• Significance: The scheme acts as an umbrella framework for co-investment by government and institutional investors, and includes provisions for ecosystem support such as capacity building, mentorship, and regulatory assistance.

Read more: Fund of Funds for Startups (FFS)

Deposit Tokens and Asset Tokenisation

Source: BL

As global finance rapidly shifts toward programmable, always-on settlement systems, discussions have emerged on how India can safely modernize its banking sector, highlighting deposit tokens and real-world asset tokenisation as the next evolutionary steps beyond its successful digital public infrastructure (like UPI).

• Deposit Tokens: These are digital representations of bank deposits issued on permissioned blockchain networks, fully backed by traditional deposits and subject to regulation, enabling real-time settlement, programmability, and no additional credit risk.
• Advantages over Unregulated Crypto: Unlike private cryptocurrencies, deposit tokens are direct claims on a bank’s balance sheet. 
  • They extend the regulated banking framework into a programmable digital layer, enabling near-instant settlement, atomic delivery versus payment (DvP), and automated reconciliation without introducing new credit or liquidity risks.
• Transforming Banking Operations: For Indian banks, the adoption of deposit tokens means interbank settlements, treasury operations, and large-value corporate payments can transition from delayed batch-based processes to real-time, instantaneous rails. 
  • It also promises to make cross-border transactions faster, cheaper, and more transparent.
• Real-World Asset Tokenisation: It involves converting real-world assets like real estate, gold, and infrastructure into digital tokens.
  • It addresses India's liquidity constraints by allowing traditionally illiquid assets to be fractionalised, transferred, and used efficiently as collateral.
• Synergy for Market Efficiency: When tokenised assets are paired with bank-issued deposit tokens, trades can settle instantly in regulated digital money.
  • This drastically reduces counterparty risk, lowers operational costs, and broadens market participation under clear regulatory guardrails.
• Regulatory Roadblocks: Currently, many tokenisation initiatives are confined to regulatory sandboxes. 
  • To scale this, India urgently needs regulatory clarity around foreign exchange (Forex) laws, Anti-Money Laundering (AML), KYC norms, and cross-jurisdictional compliance for blockchain-based instruments.
• Strategic Imperative for India: By proactively establishing frameworks for regulated digital money, especially for trade finance and institutional settlements, India has the strategic opportunity to shape global standards. 
  • Delaying this transition risks capital and innovation migrating to other, more technologically integrated jurisdictions.

Read more: Central Bank Digital Currency

9th Indian Ocean Conference

Source:TH 

At the 9th Indian Ocean Conference in Mauritius, India reaffirmed its firm opposition to the targeting of civilians, infrastructure, and commercial shipping amid the escalating 2026 West Asia conflict, while calling for de-escalation and stability.

• No delegate attended from the Maldives, as diplomatic ties between Mauritius and the Maldives have been suspended over territorial differences related to the Chagos Islands. Meanwhile, Bangladesh emphasized the need to “revitalise SAARC” to strengthen regional cooperation.
• Impact on the Indian Ocean Region (IOR): India highlighted the severe economic implications of the West Asia conflict on energy security, trade, and fertilizer supply chains across the IOR, stressing the absolute necessity of maintaining safe and unimpeded maritime navigation.
• India-Mauritius Energy Pact: To safeguard against regional volatility, India is finalizing an agreement to supply oil and gas to Mauritius, strategically bolstering the island nation's energy security.
• Indian Ocean Conference: It was launched in 2016 by the India Foundation in collaboration with regional think tanks and has grown into a key consultative platform with participation from over 40 countries. 

  • It serves as a flagship forum for discussing regional affairs in the IOR and promotes cooperation under the vision of Security and Growth for All in the Region (SAGAR).

• Indian Ocean Region (IOR): It is a vast maritime region spanning over 70 million sq. km, stretching from Africa to Australia and covering nearly 20% of the world’s water surface. 
  • It is a vital global trade hub where half of the world’s container ships, one-third of bulk cargo, and two-thirds of oil shipments pass through.
  • The region connects 35+ littoral states and is home to nearly 40% of the global population, highlighting its immense strategic and economic significance.
  • India plays a critical role in the IOR as a net security provider and primary stabilizing force, driven by the SAGAR (Security and Growth for All in the Region) vision.

Read more: India's Renewed Focus on Indian Ocean Region

e-SafeHER Initiative

Source: PIB

Recently, the e-SafeHER Cyber Security Awareness Programme was launched to enable one million women in rural India to safely participate in the digital ecosystem strengthening inclusive and secure digital access.

• About: It is a cybersecurity training initiative aimed at building a gender-responsive, community-led model of digital safety and inclusion, particularly targeting rural women.
• Institutional Framework:  Anchored under the Ministry of Electronics and Information Technology’s Information Security Education and Awareness (ISEA) Programme, it is implemented by the Centre for Development of Advanced Computing (C-DAC) in partnership with Reliance Foundation.
• Objective: To develop “Cyber Sakhis”, trained women who promote safe digital practices, cybersecurity awareness, and confidence in online transactions within their communities.
• Target & Timeline: The initiative aims to reach one million women over three years, with phased scaling up to 2029 through multi-stakeholder partnerships.
  • It follows a community-based, peer-led approach through women’s Self-Help Groups (SHGs), focusing on last-mile cybersecurity awareness and digital empowerment.
  • The programme will begin in Madhya Pradesh and Odisha and expand nationwide in a phased manner.
• Significance: Designed for scalability and sustainability, the initiative integrates cybersecurity awareness into existing women empowerment and digital literacy programmes, ensuring continuity without parallel infrastructure. 
  • It is expected to enhance cyber risk awareness, promote safe digital transactions, and strengthen digital confidence among rural women.

Read more: Strengthening India’s Cyber Defense