Current Affair

Back
DAILY CURRENT AFFAIRS, 02 APRIL 2026

FOREIGN CONTRIBUTION REGULATION ACT (FCRA)

 

1. Context

Amid strong protests from Opposition benches, Parliamentary Affairs Minister Kiren Rijiju on Wednesday informed the Lok Sabha that the government did not intend to bring a Bill to amend the Foreign Contribution (Regulation) Act (FCRA) in the ongoing Budget Session

2. Foreign Contribution Regulation Act

  • The law sought to regulate foreign donations to individuals and associations so that they functioned "in a manner consistent with the values of a sovereign democratic republic". 
  • Foreign funding in India is regulated under the FCRA act. Individuals are permitted to accept foreign contributions without the permission of MHA. However, the monetary limit for acceptance of such foreign contributions shall be less than Rs. 25,000.
  • It is implemented by the Ministry of Home Affairs. The FCRA was enacted during the Emergency in 1976 amid apprehensions that foreign powers were interfering in India's affairs by pumping money into the country through independent organizations. These concerns were, in fact, even older- they had been expressed in Parliament as early as 1969.

3. Provisions of the Act

  • The FCRA requires every person or NGO wishing to receive foreign donations to be registered under the act, to open a bank account for the receipt of foreign funds in the statute Bank of India, Delhi, and to utilize those funds only for which they have been received, and as stipulated in the act.
  •  They are also required to file annual returns, and they must not transfer the funds to another NGO.
  • The Act prohibits the receipt of foreign funds by candidates for elections, journalists or newspapers and media broadcast companies, judges and government servants, members of the legislature and political parties or their office-bearers, and organizations of a political nature.

4. Key Highlights of the 2020 Amendment

  • It bars public servants from receiving foreign contributions. It prohibits the transfer of foreign contributions to any other person.
  • Aadhar number is mandatory for all office bearers, directors, or key functionaries of a person receiving foreign contributions, as an identification document.
  • The foreign contribution must be received only in an account designated by the bank as an FCRA account in such branches of the State Bank of India, New Delhi.
  • No funds other than foreign contributions should be received or deposited in this account.
  • It allowed the government to restrict the usage of unutilized foreign contributions. This may be done if, based on an inquiry the government believes that such a person has contravened provisions of the FCRA.
  • While NGOs earlier could use up to 50 percent of funds for administrative use, the new amendment restricted this use to 20 percent.

5. Registration under FCRA

  • NGOs that want to receive foreign funds must apply online in a prescribed format with the required documentation. FCRA registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programs.
  • Following the application, the MHA makes inquiries through the Intelligence Bureau into the antecedents of the applicant and accordingly processes the application. The MHA is required to approve or reject the application within 90 days-failing which is expected to inform the NGO of the reasons for the same.
  • Once granted, FCRA registration is valid for five years. NGOs are expected to apply for renewal within six months of the date of expiry of registration. In case of failure to apply for renewal, the registration is deemed to have expired.

6. Cancellation of Approval

The government reserves the right to cancel the FCRA registration of any NGO if it finds it to violate the Act. Registration can be cancelled for a range of reasons including, if "in the opinion of the Central Government, the public interest must cancel the certificate". Once the registration of an NGO is canceled, it is not eligible for re-registration for three years. All orders of the government can be challenged in the High court.

For Prlims& Mains

For Prelims: FCRA, Rajiv Gandhi Foundation, Rajiv Gandhi Charitable Trust, NGO, Ministry of Home Affairs (MHA).

For Mains: 1. What is the Foreign contribution regulation act and discuss the new restrictions introduced by the Foreign Contribution (Regulation) Amendment Act, 2020.

 

 

Previous Year Questions

 

1.Examine critically the recent changes in the rules governing foreign funding of NGOs under the Foreign Contribution (Regulation) Act (FCRA), 1976. (Please refer GS-II Paper, 2015)

 

Source: The Indian Express

 

GIG ECONOMY

 
 
1. Context
 
 On Monday, the Telangana state Assembly passed the Telangana Platform-Based Gig Workers (Registration, Social Security and Welfare) Bill, 2026. The legislation, which seeks to regulate gig and platform work and ensure protection of such gig workers, is similar to those passed by four other states: Karnataka, Rajasthan, Jharkhand, and Bihar
 
2. What is the gig economy?
 
  • The gig economy refers to a labor market characterized by short-term contracts or freelance work, as opposed to permanent jobs.
  • It includes a wide range of activities, from ride-sharing and food delivery to freelance writing and graphic design.
  • Workers in the gig economy are typically independent contractors who perform specific tasks or projects, often mediated through digital platforms.
  • This economy offers flexibility and autonomy for workers but also presents challenges such as lack of job security, benefits, and consistent income
 
3.What is the difference between the formal and informal labour markets?
 
Subject Formal Labor Market Informal Labor Market
Regulation Regulated by government laws and policies Not regulated by formal labor laws
Job Security Generally offers job security Often lacks job security
Benefits Provides benefits like health insurance and retirement plans Rarely provides benefits
Legal Protections Employees have legal protections and must adhere to standards Workers lack legal protections
Income Regular and predictable income Irregular and uncertain income
Employment Contracts Jobs usually involve formal contracts Work is often done without formal contracts
Examples Corporate jobs, government positions Freelance work, informal vendors, day labourers
 
 
4. What is the current state of the labour market in India?
 
  • Maintaining the impressive growth rates of recent years into the medium to long term, while expanding the consumption base, will be difficult given that a significant portion of the country's workforce remains stuck in low-productivity jobs.
  • Recent government surveys indicate that the number of informal businesses in the country has increased from 57.6 million in 2010-11 to 63.4 million in 2015-16, and further to 65 million in 2022-23
  • If the economy were generating more productive employment opportunities, both the number of informal firms and the workforce within them would be significantly decreasing.
  • Combining the 110 million workers in non-farm informal businesses with the approximately 230 million engaged in agriculture accounts for almost two-thirds of the labor force still employed in low-productivity jobs in less efficient sectors—sectors that now contribute an even smaller share of the total economic value added than before.
  • This is in addition to those informally employed in construction and the formal parts of the economy.
  • In the absence of low or semi-skilled job opportunities in the more productive formal manufacturing sector, and without the necessary education to enter more skilled formal employment in both manufacturing and high-end services, their only alternatives are precarious forms of employment in the gig economy.”
  • The issue of job scarcity has long been a part of India's development narrative, not limited to the current administration.
  • However, recent changes include the youth bulge, increasing labor force participation rate—particularly among women driven into the workforce by financial distress—the declining share of value added by the informal sector, and the growing capital intensity in production sectors that contribute more to value addition and are labor-intensive by nature
  • The consequences of failing to create a sufficient number of more productive jobs, and the resulting deepening labor market duality, are likely to be manifested in various ways, including reduced social mobility and high-income inequality.
  • As others have noted, this will determine whether the country follows the path of East Asia or takes the route of Latin America
5. What are the causes of the rising gig economy in India?
 
  • The proliferation of smartphones and the internet has facilitated the growth of digital platforms that connect gig workers with customers. Apps and websites have made it easier to find and offer short-term jobs
  • India has a large youth population that is tech-savvy and open to flexible work arrangements. The gig economy offers opportunities that appeal to the younger generation seeking autonomy and varied work experiences
  • The formal sector has not been able to generate enough jobs to match the growing labor force. As a result, many individuals turn to gig work for income, as it often requires lower barriers to entry compared to traditional employment
  •  Financial distress and the need for supplementary income have pushed more people towards gig work. This includes individuals who may already have a job but need additional income to meet their financial needs
  • The gig economy offers flexibility in work hours and the choice of assignments, which attracts individuals who prefer non-traditional work arrangements over the constraints of full-time employment.
  • Companies are increasingly outsourcing tasks to freelancers to reduce costs associated with full-time employees, such as benefits and office space. This shift towards a more flexible workforce model has contributed to the growth of gig work
  • The ability to work remotely has opened up international opportunities for gig workers. Indian freelancers can now find work with companies around the world, broadening their employment prospects
  • The regulatory framework in India is still catching up with the gig economy, providing a more lenient environment for gig platforms and workers compared to the heavily regulated formal sector
  • The gig economy allows workers to leverage diverse skill sets and explore multiple career paths simultaneously. This appeals to individuals looking to diversify their professional experience
  • There is growing consumer demand for services that gig workers provide, such as food delivery, ride-hailing, home services, and freelance professional services. This demand fuels the expansion of gig opportunities
6.What are the advantages and disadvantages of the gig economy?
 
Advantages Disadvantages
Workers can choose their own hours and work location Gig workers often face uncertain income and job stability.
Diverse Opportunities No Employment Benefits
Access to a variety of job types and industries Absence of benefits like health insurance, retirement plans, and paid leave
Increased Income Potential Income Variability
Potential to earn more by taking multiple gigs or high-paying tasks Earnings can be unpredictable and inconsistent.
Opportunity to develop and diversify skill sets. Many gig workers are not protected by labor laws and regulations
Easier entry into the workforce without extensive qualifications. Limited opportunities for career advancement and long-term growth
Greater control over the type of work undertaken and methods of working Flexibility can lead to overworking and blurred boundaries between work and personal life
Ability to work for international clients and companies Gig workers may miss out on the social aspects and support networks found in traditional workplaces
Companies can save on costs related to full-time employees (benefits, office space, etc.). Potential for gig workers to be underpaid and overworked without proper oversight
Can quickly adapt to changing market demands and consumer needs Limited access to training and professional development resources
 
7. What are the challenges associated with the gig economy?
  • Gig workers often face unpredictable and inconsistent income, making financial planning difficult
  • Gig workers typically do not receive traditional employment benefits such as health insurance, retirement plans, paid leave, and unemployment benefits
  • The temporary and project-based nature of gig work means that workers lack job security and can be easily terminated
  • There is often a lack of clear legal frameworks to protect gig workers, leading to issues with worker rights, minimum wage enforcement, and job classifications.
  • The flexibility of gig work can lead to overworking and difficulty in maintaining a work-life balance, as the lines between personal and professional time can become blurred.
  • Gig workers can be vulnerable to exploitation, including low pay, long hours, and lack of proper working conditions, without sufficient oversight and protection
  • Gig workers may miss out on the social interactions and support networks that come with traditional workplaces, leading to feelings of isolation and lack of community
  • There are limited opportunities for career advancement, professional development, and skill enhancement in the gig economy
  • Gig workers often lack access to training and development programs that can help them improve their skills and advance their careers
  • Gig workers are usually responsible for managing their own taxes, which can be complex and burdensome without proper knowledge and resources
  • Reliance on digital platforms and technology can pose challenges, including the need for constant internet access and the risk of being affected by platform changes or technical issues
  • Without formal workplace regulations, gig workers may face unsafe working conditions and lack proper health and safety protections
 
 
For Prelims: Gig Economy
For Mains: GS III- Gig Economy and Associated Problems around
 
 
Source: Indianexpress
 
 
MATERNAL MORTALITY RATE (MMR)
 
 
 
1. Context 
 
 
A recent study in The Lancet Obstetrics, Gynaecology, and Women’s Health journal shows the challenge before India in meeting the Sustainable Development Goal of bringing down the Maternal Mortality Ratio (MMR) to below 70 deaths per 1 lakh live births by 2030.
 
 
2. The Maternal Mortality Rate (MMR)
 
  • The Maternal Mortality Rate (MMR) is a crucial indicator of the health status of women in a particular region or country.
  • It represents the number of maternal deaths per 100,000 live births occurring due to complications related to pregnancy, childbirth, or the postpartum period.
  • MMR reflects both the quality of maternal healthcare services and the overall health infrastructure in a given area.
  • A high MMR indicates inadequate access to maternal healthcare, poor healthcare quality, and socioeconomic disparities, while a low MMR suggests effective maternal healthcare services and better health outcomes for women during pregnancy and childbirth.
 

3. What is Haemorrhage?

 

  • Haemorrhage, often spelt as haemorrhage in American English, refers to the abnormal and excessive bleeding from blood vessels.
  • It can occur internally, within the body, or externally, where blood flows out of the body.
  • Haemorrhage can result from various causes, including trauma, injury, surgery, or underlying medical conditions such as blood vessel abnormalities, clotting disorders, or certain diseases.
  • Depending on the severity and location of the haemorrhage, it can range from minor and self-limiting to life-threatening and requiring immediate medical intervention.
  • Treatment for haemorrhage typically involves controlling the bleeding, stabilizing the patient, and addressing any underlying causes or complications.
 

4. Relation of women’s health to overall social development

 

Women's health is intricately linked to overall social development, impacting various aspects of society. 

Improved Health Outcomes

  • Lower maternal mortality rates (MMR) signify better access to quality healthcare for women during pregnancy and childbirth. This translates to healthier families and fewer tragedies.
  • Healthy mothers are more likely to give birth to healthy babies and provide them with proper care during infancy and childhood, leading to a healthier next generation.
  • Better healthcare for women leads to a longer lifespan, allowing them to contribute more actively to society and families for a longer duration.

Socioeconomic Benefits

  • When women are healthy, they are more likely to pursue education and participate in the workforce, contributing to economic growth and development.
  • A healthy female population translates to a more productive workforce, boosting the overall economic output of a nation.
  • When women can earn a living and care for their families' health, it helps break the cycle of poverty and improves the overall well-being of the community.

Social Fabric and Stability

  • Improved access to family planning services and reproductive health education can lead to smaller families, allowing for better resource allocation and investment in children's health and education.
  • Healthy mothers are better equipped to raise healthy and well-educated children, fostering stronger and more stable families, which are the building blocks of a healthy society.
  • Women play a crucial role in community development initiatives like education, sanitation, and healthcare. Their good health allows them to contribute more effectively to these areas.

Investing in Women's Health

  • Prioritizing women's health is not just a moral imperative but also a smart investment in a nation's future.
  • By addressing issues like maternal mortality, access to healthcare, and reproductive health education, countries can create a healthier, more productive, and prosperous society for all.

 

5. Why are women at risk of heart disease?

 

Women are susceptible to heart disease, even though it's often perceived as a man's health issue. 

Biological Differences

  • Estrogen, a female sex hormone, has a protective effect on the heart before menopause. However, estrogen levels decline after menopause, removing this protective layer and increasing the risk of heart disease.
  • Women typically have smaller hearts and coronary arteries compared to men. This can make them more susceptible to blockages and blood flow issues even with less plaque buildup.
  • Certain pregnancy complications like gestational diabetes or preeclampsia can increase the long-term risk of heart disease in women.

Risk Factors

Many traditional risk factors for heart disease apply to both men and women, but some pose a greater threat to women.

  • Uncontrolled high blood pressure and cholesterol levels significantly increase the risk of heart disease in both men and women. However, women tend to have higher LDL ("bad") cholesterol and lower HDL ("good") cholesterol levels compared to men, putting them at a disadvantage.
  • Diabetes is a major risk factor for heart disease, and women with diabetes are more likely than men to develop heart disease complications.
  • A sedentary lifestyle and obesity are significant contributors to heart disease. While these are concerns for both genders, women are more likely to face societal pressures that discourage physical activity and contribute to weight gain.
  • Women are more prone to chronic stress and depression, which can elevate blood pressure and weaken the immune system, increasing the risk of heart disease.
  • Heart disease symptoms in women can sometimes be different from those experienced by men. Women may experience pain in the back, jaw, or upper abdomen instead of the classic chest pain associated with heart attacks. This can lead to misdiagnosis and delayed treatment.

Preventive Measures

The good news is that heart disease is largely preventable. By adopting a healthy lifestyle, women can significantly reduce their risk.

  • Regular exercise and a balanced diet are crucial for weight management and overall heart health.
  • Regular checkups and adherence to medications are essential for controlling blood pressure and cholesterol levels.
  • Techniques like yoga, meditation, or spending time in nature can help manage stress and improve overall well-being.
  • Educating yourself about the different symptoms of heart disease in women can ensure you seek timely medical attention.

 

6. The steps taken by the government to reduce MMR

 

The government of India have implemented various strategies to reduce the Maternal Mortality Ratio (MMR).

Improving Access to Antenatal, Intranatal, and Postnatal Care

  • Encouraging women to give birth in medical facilities with skilled birth attendants significantly reduces the risk of complications and fatalities during childbirth. This can involve initiatives like
    • Janani Suraksha Yojana (JSY) scheme in India that provides financial assistance to pregnant women delivering in public health institutions.
    • Educating women about the benefits of institutional deliveries and addressing potential fears or cultural barriers.
  • Ensuring a sufficient number of trained midwives, nurses, and doctors to handle deliveries and manage potential complications is crucial.
  • Providing regular checkups, screenings, and essential nutrients during pregnancy helps identify and manage potential risks for both mother and baby.
  • Offering healthcare support to mothers and newborns after delivery helps address postpartum complications like infections and haemorrhage.

Addressing Underlying Risk Factors

  • Ensuring proper nutrition for women, especially before and during pregnancy, is critical for a healthy pregnancy and reduces the risk of complications.
  • Providing access to family planning services allows women to plan their pregnancies and space them appropriately, improving maternal health outcomes.
  • Teenage pregnancies are at a higher risk of complications. Educating young girls about sexual health and reproductive rights can help reduce teenage pregnancies and improve MMR.

Strengthening Healthcare Systems

  • Upgrading healthcare facilities, especially in rural areas, with essential equipment and supplies is essential for providing quality maternal care.
  • Ensuring timely access to emergency obstetric care can save lives in case of complications during childbirth.
  • Monitoring MMR data and identifying areas with high rates allows for targeted interventions and resource allocation.

Community Engagement

  • Educating women about their rights, including their right to quality healthcare, and encouraging them to seek timely medical attention are crucial steps.
  • Engaging community leaders and involving men in promoting maternal health awareness can create a supportive environment for women.
 
7. How are SDGs goals related to MMR?
 

The Sustainable Development Goals (SDGs) adopted by the United Nations in 2015 address a wide range of global challenges and one of them is directly related to Maternal Mortality Ratio (MMR).

Target 3.1: Reduce Maternal Mortality Ratio

SDG Goal 3 focuses on ensuring healthy lives and promoting well-being for all at all ages. Within this goal, Target 3.1 specifically targets the reduction of MMR. It aims to

  • Reduce the global maternal mortality ratio to less than 70 per 100,000 live births by 2030.
  • No country should have an MMR greater than 140 per 100,000 live births.

SDGs Support Reducing MMR

Other SDGs indirectly contribute to achieving Target 3.1 by addressing factors that can influence MMR

  • SDG 1 (No Poverty): Poverty is a major risk factor for poor maternal health outcomes. By alleviating poverty, women have better access to healthcare and nutritious food.
  • SDG 2 (Zero Hunger): Malnutrition is another risk factor. Ensuring food security and improved nutrition can improve maternal health.
  • SDG 4 (Quality Education) Educated women are more likely to make informed choices about their health and seek prenatal care.
  • SDG 5 (Gender Equality) Empowering women and ensuring their access to education and healthcare services are crucial for improving maternal health outcomes.
  • SDG 6 (Clean Water and Sanitation) Access to clean water and sanitation facilities helps prevent infections, which can be a major cause of maternal mortality.
 
8. The Way Forward
 
By implementing the strategies and initiatives, governments can effectively reduce maternal mortality and improve maternal health outcomes, contributing to overall social development and achieving the Sustainable Development Goals.
 
 
For Prelims: Maternal Mortality Rate, Sustainable Development Goals, Haemorrhage, Indian Council of Medical Research, Janani Suraksha Yojana, Heart diseases
For Mains:
1. Explain the significance of the Maternal Mortality Rate (MMR) as an indicator of women's health status and healthcare quality. How does a high MMR reflect socioeconomic disparities in a given region? (250 Words)
2. Evaluate the effectiveness of government initiatives in India aimed at reducing the Maternal Mortality Ratio (MMR). Discuss the importance of strengthening healthcare systems and addressing underlying risk factors in achieving this goal. (250 Words)
 
Previous Year Questions
 
1. Consider the following statements (UPSC 2016)
1. The Sustainable Development Goals were first proposed in 1972 by a global think tank called the 'Club of Rome
2. Sustainable Development goals has to be achieved by the year 2030
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
 
2. Maternal Mortality Ratio (MMR) of India is released by which of the following office?
(NCL Staff Nurse 2020)
A. Office of Registrar General of India
B. Office of CAG
C. Office of Union Health Minister
D. Office of Statistical computation of India
 
Answers: 1-B, 2- A
 
Source: The Indian Express
 
 

CENSUS

1. Context

 With the first phase of Census 2027 set to launch this Wednesday, April 1, the Centre said that caste enumeration will be conducted during the second phase of the exercise, known as Population Enumeration (PE).

2. History of Census

  • India had conducted the Census every 10 years since 1881, but in 2020, the decennial exercise for Census 2021 had to be postponed due to the pandemic.
  • Though the government has not announced fresh dates for the Census, the groundwork is being laid and details are emerging about some of the features.
  • It will be the first digital Census allowing citizens to "self-enumerate". The NPR (National Population Register) has been made compulsory for citizens who want to exercise the right to fill out the Census form on their own rather than through government enumerators.
  • For this, the Office of the Registrar General of India (RGI) has designed a "self-enumeration, Aadhaar or mobile number will be mandatorily collected.

3. Status of the Census exercise

  • A January 2 notification extending the deadline for freezing administrative boundaries in States until June 30 has ruled out the exercise at least till September.
  • As preparation and training take at least three months, the Census will have to be pushed to next year.
  • Around 30 lakh government officials will be assigned as enumerators and each will have the task to collect the details of 650-800 people through both online and offline modes, covering an estimated population of 135 crore people.
  • The Lok Sabha election is due in April-May 2024 and it is unlikely that the Census will be carried out before that since the same workforce will be dedicated to the elections.
  • The completion of both phases of the Census will take at least 11 months, even if done at an accelerated pace from October 1.

4. Holding up the Census

  • One reason which is holding up the exercise is the amendments proposed to the Registration of Births and Deaths Act, of 1969.
  • The government wants to have a centralised register of births and deaths that can be used to update the population register, electoral register, Aadhaar, ration card, passport and driving license databases.
  • The centrally stored data will be updated in real-time without a human interface leading to addition and deletion from electoral rolls when an individual turns 18 and after an individual's death respectively.
  • A Bill to link the births and deaths registered with the population register and others are expected to be tabled in the next session of Parliament.

5.  NPR

  • The NPR, unlike the Census, is a comprehensive identity database of every "usual resident" in the country and the data proposed to be collected at the family level can be shared with States and other government departments.
  • Though Census also collects similar information, the Census Act of 1948 bars sharing any individual's data with the State or Centre and only aggregate data at the administrative level can be released.
  • According to Citizenship Rules 2003 under the Citizenship Act, 1955, NPR is the first step towards a compilation of the National Register of Indian Citizens (NRIC/NRC).
  • Assam is the only State where an NRC has been compiled based on the directions of the Supreme Court, with the final draft of Assam's NRC excluding 19 lakhs of the 3.29 crores applicants.
  •  Assam Government has rejected the NRC in its current form and demanded re-verification of 30 per cent of names included in the NRC in areas bordering Bangladesh and 10 per cent in the remaining State.
  • In 2020, the NPR was opposed by several State governments such as West Bengal, Kerala, Rajasthan, Odisha, Bihar, Andhra Pradesh, Telangana, Punjab and Chhattisgarh and Civil Society Organisations due to its link with the proposed NRC as it might leave many people stateless for want of legacy documents.
  • There are apprehensions that the Citizenship Amendment Act 9 (CAA), 2019 allows citizenship based on religion to six undocumented religious communities from Pakistan, Afghanistan and Bangladesh who entered India on or before December 31, 2014, will benefit non-Muslims excluded from the proposed citizens' register, while excluded.
  • Muslims will have to prove their citizenship. The government has denied that the CAA and NRC are linked and there are currently any plans to compile a countrywide NRC.

5.1. The current status of NPR

  • The NPR was first collected in 2010 when the Congres government was in power at the Centre.
  • It was updated in 2015 and already has details of 119 crore residents.
  • In March 2020, the Ministry of Home Affairs (MHA) amended the Census Rules framed in 1990 to capture and store the Census data in an electronic form and enabled self-enumeration by respondents.
  • The NPR is scheduled to be updated with the first phase of Census 2021.
  • For this phase (house listing and household phase), 31 questions have been notified, while for the population enumeration, the second and main phase 28 questions have been finalised but are yet to be notified.
  • The NPR is expected to collect details on 21 parameters of all family members, up from 14 questions in 2010 and 2015.
  • The Sub-heads include passport number, relationship to head of the family, whether divorced/ widowed or separated, mother tongue if non-worker, cultivator, labourer, government employee, daily wage earner among others.
  • The form also has a column on Aadhar, mobile phone, Voter ID and driver's licence.
  • Though the government has claimed that the NPR form has not been finalised yet, the sample form is part of the Census of India 2021 Handbook for Principal/District Census Officers and Charge Officers in 2021.
  • The NPR has retained contentious questions such as "mother tongue, place of birth of father and mother and last place of residence", possible indicators to determine inclusion in the Citizenship register.
  • The questions were opposed by the State governments of West Bengal, Kerala, Rajasthan and Odisha in 2020.
  • The final set of questions of both the phases and NPR was asked during a pre-test exercise in 2019 in 76 districts in 36 States and Union Territories covering a population of more than 26 lakhs.

6. Expected expenditure for Census

  • The initial draft was prepared by the office of the Registrar General of India and circulated to key Ministries and the Prime Minister's Office called for the conduct of Census 2021 at a cost of ₹9, 275 crores and not the NPR.
  • The draft Expenditure Finance Committee (EFC) not was then revised and a financial provision of ₹4, 442.15 crores for updating the NPR was added on the directions of the MHA "subsequently".
  • The proposal was cleared on August 16, 2019, and it received the  Union Cabinet's nod on December 24, 2019.
  • It was decided that the enumerator engaged for Census would also collect details for NPR.
  • The Covid-19 pandemic struck in March 2020 and since then both exercises are on hold.
  • Now, the NPR has been made compulsory if citizens want to exercise the right to fill out the Census form on their own.
  • The deleted Handbook said that it is "mandatory for every usual resident of India to register in the NPR".
  • Census is also mandatory and giving false information is a punishable offence.
For Prelims: NPR, CAA, Census, Covid-19, Expenditure Finance Committee, Registrar General of India, Registration of Births and Deaths Act, of 1969, The Treatise on Indian Censuses Since 1981, Assam, 
For Mains:
1. How can citizens file Census details online? Explain the norms being laid down and discuss the reasons for National Population Register being made compulsory for those who want to fill out the form digitally. (250 Words)
 
 
Previous Year Questions
 
Prelims:
 
1. Consider the following statements: (UPSC 2009)
1. Between Census 1951 and Census 2001, the density of the population of India has increased more than three times.
2. Between Census 1951 and Census 2001, the annual growth rate (exponential) of the population of India has doubled.
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
 
Answer: D
 
2. In the context of vaccines manufactured to prevent COVID-19 pandemic, consider the following statements: (UPSC 2022)
1. The Serum Institute of India produced COVID-19 vaccine named Covishield using mRNA platform.
2. Sputnik V vaccine is manufactured using vector based platform.
3. COVAXIN is an inactivated pathogen based vaccine.
Which of the statements given above are correct?
A. 1 and 2 only            B. 2 and 3 only                   C. 1 and 3 only              D. 1, 2 and 3
 
Answer: B
 
3. Sinovac given for Covid-19 is a  (UPPSC Combined State Exam 2022)
A. Protein sub-unit
B. Non-replicating viral vector
C. Whole virus vaccine
D. mRNA vaccine
 
Answer: C
 
4. Along with the Budget, the Finance Minister also places other documents before the Parliament which Include "The Macro Economic Framework Statement". The aforesaid document is presented because this is mandated by (UPSC 2020) 
A. Long-standing parliamentary convention
B. Article 112 and Article 110 (1) of the Constitution of India
C. Article 113 of the Constitution of India
D. Provisions of the Fiscal Responsibility and Budget Management Act, 2003
Answer: D
 
5. Who is the Census Commissioner of India in 2021? (ICAR Technician 2022)
A. Dr Vivek Joshi
B. Dr C Chandramouli
C. Shri Sailesh
D. DK Sikri
 
Answer: A
 
6. The Registration of Birth and Death Act came into force in the year _____. (UPSSSC Junior Assistant 2020) 
A. 1964      B. 1969    C.  1972        D.1981
 
Answer: B
 
7. Consider the following States: (UPSC 2022)
1. Andhra Pradesh
2. Kerala
3. Himachal Pradesh
4. Tripura
How many of the above are generally known as tea-producing States?
A. Only one State
B. Only two States
C. Only three States
D. All four States
 
Answer: C
 
8. Consider the following rivers (UPSC 2014) 
1. Barak
2. Lohit
3. Subansiri
Which of the above flows/flow through Arunachal Pradesh? 
A. 1 only    B.2 and 3 only     C. 1 and 3 only      D. 1, 2 and 3
Answer: B
 
Mains:
1. Two parallel run schemes of the Government, viz the Adhaar Card and NPR, one as voluntary and the other as compulsory, have led to debates at national levels and also litigations. On merits, discuss whether or not both schemes need run concurrently. Analyse the potential of the schemes to achieve developmental benefits and equitable growth. (UPSC 2014)
 
Source: The Hindu
 
 

INSOLVENCY AND BANKRUPTCY CODE (IBC)

 
 

1. Context

Insolvency and bankruptcy board of India (IBBI) sixth anniversary was conducted on 1st October 2022, on this anniversary our finance minister Nirmala sitaraman said that the country could not afford to lose the sheen of its insolvency law, the insolvency and bankruptcy code (IBC).

2. About Insolvency and Bankruptcy Code (IBC)

2.1.Insolvency: Insolvency is a situation where individuals or companies cannot repay their debt.

2.2.Bankruptcy: It is a situation whereby a court of competent jurisdiction has declared a person or other entity insolvent, having passed appropriate orders to resolve it and protect the rights of the creditors.

IBC was introduced in 2016 to consolidate previously available laws to create a time-bound mechanism with a creditor-in-control model as opposed to the debtor-in-possession system. When insolvency is triggered under the IBC, there can be just two outcomes: Resolution or Liquidation, with the former being the preferred solution.

Companies have to complete the entire insolvency exercise within 180 days under IBC and the deadline may be extended if the creditors do not raise objections to the extension.

3. CHALLENGES FOR THE IBC:

  • Insolvency Bankruptcy Board of India is the regulator of the Insolvency and Bankruptcy Code in India. According to its regulator, IBBI the first objective of the IBC is a resolution-finding way to save a business through restructuring, change in ownership, mergers, etc.
  • The second objective is to maximize the value of assets of the corporate debtor; the third objective is to promote entrepreneurship, availability of credit, and balancing of interests.
  • According to Insolvency Bankruptcy Board of India data for the 3400 cases admitted under the IBC in the last six years, more than 50% of the cases ended in liquidation, and only 14% could find a proper resolution.
  • The IBC was thus initially given a 180-day deadline to complete the resolution process, with a permitted 90-day extension. It was later amended to make the total timeline for completion 330 days which is almost a year.
  • However, in the financial year 2022, it took 772 days to resolve cases involving companies that owed more than 1000 crores. The average number of days it took to resolve such cases increased rapidly over the past five years.

4. IBC 2016 Advantages

Strict timelines:

  1. Normal cases: 180 days
  2. Complex cases: 180 days +90 days
  3. Legal proceedings: 330 days
  4. In the case of tardy legal proceedings, it can go beyond 330 days.
  5. It promotes entrepreneurship, the release of capital that can be invested in other productive assets.
  6. It focuses more on resolution rather than liquidation.
  7. In only 15% of cases, the resolution is done, and the rest is liquidation.

5. Expert’s opinion on IBC:

  • In order to address the delays, the parliamentary standing committee suggested that the time taken to admit the insolvency application and transfer control of the company to a resolution process, should not be more than 30 days after filing.
  • The IBBI has also called for a new yardstick to measure haircuts. It suggested that haircuts cannot be looked at as the difference between the creditors’ claims and the actual almost realized but as the difference between what the companies bring along when it enters IBC and the value realized.

6. INSOLVENCY AND BANKRUPTCY CODE (AMENDMENT) BILL, 2021

  • The insolvency and bankruptcy code (Amendment) Bill, 2021 was introduced in the Lok-Sabha to amend the insolvency law and provide for a pre-packaged resolution process for stressed Micro, Small, and Medium Enterprises.
  • Under this mechanism, main stakeholders such as creditors and shareholders come together to identify a prospective buyer and negotiate instead of a public bidding process.
  • The insolvency and bankruptcy are applicable to defaults which is more than Rs.1crore. There has been a recent change in IBC, which is called the Pre-Pack mechanism for MSMEs.

6.1 Pre-Pack Mechanism:

  • If an MSME takes a loan and the default is less than 1 crore, then this Pre-Pack mechanism will be applicable.
  • Under this mechanism, the owner of the MSMEs will propose or submit a resolution plan to NCLT (National Company Law Tribunal). Outside bidders and open bidding will not be done.
  • During this resolution, the management of MSMEs will remain with the previous owners. Under this mechanism, the process will be completed within 120 days.

7. Conclusion

The Insolvency and Bankruptcy Code has reformed the Indian Insolvency Law to a great extent. The government needs to provide appropriate budgetary allocations to up skilling insolvency professionals and digitization of insolvency resolution process.

There has been a marked improvement in the recovery process which is already leading to billions of dollars being invested in the country due to the protection of creditor rights.

Prelims question:

1. According to the IBC, which of the following is not a financial service
A.Underwriting issuance of financial support
B.Accepting of deposits
C.Operating an investment scheme
D.Payment of wages to the Employees

Mains questions:

  1. What is Insolvency Bankruptcy Code and what are its challenges?
  2. Critically analyze the progress made in resolving stressed assets since the enactment of IBC?
  3. Do you think the insolvency and bankruptcy code has reformed the Indian insolvency law? Justify your answer.
 
 
Previous Year Questions
 
1.Which of the following statements best describes the term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news? (2017)

(a) It is a procedure for considering ecological costs of developmental schemes formulated by the Government.  

(b) It is a scheme of RBI for reworking the financial structure of big corporate entities facing genuine difficulties.  

(c) It is a disinvestment plan of the Government regarding Central Public Sector Undertakings.  

(d) It is an important provision in ‘The Insolvency and Bankruptcy Code’ recently implemented by the Government.

Answer (b)

Source: The Hindu

 

FOREIGN EXCHANGE RESERVES

 
 
 
1. Context
 
Concerned about the falling value of the rupee amid the rise in oil prices and fears over inflation in the wake of the West Asia conflict, the Reserve Bank of India last week instructed banks to limit their net open exposure to the currency in the foreign exchange market to $100 million by the end of each day. Authorised dealers must comply with this rule by April 10.
 
 
2. What are foreign exchange reserves?
 
  • Foreign exchange reserves are the stock of foreign money and other external assets kept by a country’s central bank, in India’s case the Reserve Bank of India (RBI). You can think of it as the country’s financial emergency fund in foreign currencies.
  • Imagine India as a large household. Just as a family keeps savings in the bank for emergencies, the country keeps a reserve of foreign assets so that it can meet international payments whenever required.
  • Since India imports many essential goods—especially crude oil, electronics, machinery, and gold—it has to pay other countries mostly in US dollars or other international currencies. This is where foreign exchange reserves become extremely important.
  • These reserves are mainly held in the form of US dollars, euros, pounds, yen, gold, and assets such as US government bonds and treasury bills. They may also include Special Drawing Rights (SDRs) and the reserve position with the IMF.
  • To understand it more clearly, suppose India wants to import crude oil from another country. The payment cannot usually be made in Indian rupees because international trade is largely settled in dollars. The RBI uses the country’s foreign exchange reserves to ensure that sufficient dollars are available in the system for such payments.
  • Foreign exchange reserves also play a major role in protecting the value of the rupee. For example, if the rupee starts falling sharply against the dollar, the RBI may sell dollars from its reserves in the market and buy rupees.
  • This increases the supply of dollars and helps stabilize the exchange rate. Recently, the RBI has used reserves to reduce volatility in the rupee during global tensions and oil price shocks.
  • In simple terms, foreign exchange reserves act as the country’s economic shield and confidence booster. They help India continue imports during crises, repay external debt, stabilize the currency, and reassure investors that the country is financially strong
 
3. What is the foreign exchange reserves of India in 2026?
 
 
  • The central bank introduced this ceiling at a time when the Indian rupee had slipped to a historic low of 94.81 against the US dollar, marking a depreciation of nearly 4 percent since the conflict began in late February.
  • This measure was primarily intended to arrest the rupee’s slide by restricting the extent of foreign currency exposure that banks are allowed to hold within the domestic market.
  • Moreover, as pressure on the domestic currency intensified, the Reserve Bank of India deployed dollars from its foreign exchange reserves to support the rupee and contain excessive volatility.
  • Consequently, India’s forex reserves have declined by more than $30 billion, falling to around $698.34 billion since the onset of the conflict. This move reflects the central bank’s growing concern over exchange-rate instability and its efforts to prevent sharp and disorderly fluctuations in the currency market.
  • Large-scale outflows by foreign investors have further intensified downward pressure on the rupee, causing it to breach the ?92, ?93, and now ?94 per dollar levels within the same month.
  • The currency had already weakened beyond the ?90 and ?91 marks in December 2025, and it is now hovering dangerously close to the ?95 per dollar threshold, underscoring the severity of the ongoing external and financial pressures
 
 
4. What are the components of the foreign reserves of India?
 
 
  • The largest component is Foreign Currency Assets (FCA). This forms the bulk of India’s reserves—usually around 80–85 percent. It includes assets held in major international currencies such as US dollars, euros, pounds, and yen.
  • These are not just bundles of cash; most of them are invested in safe foreign assets such as US Treasury bonds, sovereign securities, deposits with foreign central banks, and commercial banks. This is the main pool the RBI uses when it wants to stabilize the rupee in the forex market.
  • The second component is gold reserves. India holds a significant quantity of gold as part of its reserves. Gold acts as a store of value and a hedge during times of global uncertainty, inflation, or geopolitical tensions. Unlike paper currencies, gold retains intrinsic value and strengthens confidence in the country’s reserve position
  • The third component is Special Drawing Rights (SDRs). These are international reserve assets created by the International Monetary Fund.
  • SDRs are not a currency in themselves, but they can be exchanged for freely usable currencies like the US dollar. They act as an additional source of international liquidity for member countries.
  • The fourth component is the Reserve Tranche Position (RTP) in the IMF. This refers to the amount India can immediately withdraw from the IMF without any conditions, based on its quota contribution to the Fund. It is like India’s readily available claim with the IMF
 
5. RBI Proposed Changes
 
 
  • Bankers are showing growing concern over the proposed regulatory changes, as these measures could have immediate operational and financial implications. A key issue being raised is the pace of implementation.
  • Several banks have requested the Reserve Bank of India to provide a transition period of nearly three months so that existing foreign exchange positions can be gradually reduced or restructured in an orderly manner.
  • According to market analysts tracking the developments, sudden enforcement would leave limited scope for effective risk management and could result in avoidable losses.
  • The magnitude of existing exposure has further heightened these concerns. Estimates suggest that individual banks currently hold significant dollar positions, making the cumulative exposure across the banking system quite large.
  • If the revised limits are introduced without any transition period, banks may be forced to unwind these positions quickly, potentially leading to dollar sales worth nearly $11–15 billion across the sector, according to market assessments.
  • Such rapid unwinding could also expose banks to mark-to-market losses, particularly if positions have to be exited at unfavourable exchange rates.
  • These losses would be reflected in their treasury books for the ongoing March quarter, thereby exerting pressure on profitability and quarterly earnings.
  • Market observers also note that if the rupee continues to weaken, the RBI may introduce additional measures to support the currency and preserve foreign exchange reserves.
  • A similar approach was witnessed during the global financial crisis and the taper tantrum, when then RBI Governor Raghuram Rajan responded to pressure on the rupee by encouraging foreign currency inflows.
  • One notable intervention was the FCNR(B) scheme, which offered subsidized swap rates and successfully attracted more than $30 billion, significantly strengthening India’s forex reserves
 
 
6. Way Forward
 
Market analysts suggest that if the rupee’s depreciation persists, the Reserve Bank of India may introduce additional policy measures to support the currency and protect foreign exchange reserves. A similar approach was seen during earlier episodes of financial stress. During the global financial crisis and the subsequent taper tantrum, when the rupee came under significant pressure, then RBI Governor Raghuram Rajan responded by encouraging foreign currency inflows into the country. One of the most notable interventions was the FCNR(B) scheme, which offered concessional swap rates and succeeded in attracting more than $30 billion, thereby substantially strengthening India’s foreign exchange reserves
 
 
For Prelims: Current events of national and international importance
 
For Mains: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
 
Previous Year Questions
 
1.Which of the following has/have occurred in India after its liberalization of economic policies in 1991? (UPSC CSE, 2017)
1. Share of agriculture in GDP increased enormously.
2. Share of India’s exports in world trade increased.
3. FDI inflows increased.
4. India’s foreign exchange reserves increased enormously.
Select the correct answer using the codes given below:
(a) 1 and 4 only
(b) 2, 3 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4
Answer (b)
2. With reference to the Indian economy, consider the following statements: (UPSC CSE, 2022)
1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer (b)
 
 
Source: The Hindu
Share to Social
View All Current affairs

More Current Affairs

DAILY CURRENT AFFAIRS, 01 DECEMBER 2023...

01-Dec-2023
Read more

DAILY CURRENT AFFAIRS, 18 OCTOBER 2023...

18-Oct-2023
Read more

DAILY CURRENT AFFAIRS, 05 JANUARY 2024...

05-Jan-2024
Read more

DAILY CURRENT AFFAIRS, 29 DECEMBER 2023...

29-Dec-2023
Read more