UPSC Key: Trump’s Gaza Peace Plan, Payments Regulatory Board, and India’s railway grid to Bhutan

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies-II: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.

What’s the ongoing story: Hours after US President Donald Trump announced a 20-point peace plan for Gaza, Prime Minister Narendra Modi on Tuesday welcomed the proposal and expressed hope that “all concerned will come together” and support “this effort to end conflict and secure peace”.

Key Points to Ponder:

— Map work: Location of Gaza, countries in West Asia

— What are the geopolitical issues in West Asia?

— What is the Abraham Accord?

— What is Trump’s 20 point Gaza peace plan?

— Know about the historical background of the Israel-Palestine conflict?

— How significant is the peace in the region for the India-Middle East-Europe Economic corridor?

— For India, peace in the region is important, for its diaspora, its economic interests and its strategic needs. Elaborate.

Key Takeaways:

— Modi has framed Trump’s initiative as a “viable pathway” to securing peace in the “larger West Asian region”. India considers parts of West Asia as part of its extended neighbourhood, and hopes to gain from lasting peace in the region, where it has friends across the aisle — Israel as well as Iran and Saudi Arabia.

— For India, peace in the region is important, for its diaspora, its economic interests and its strategic needs. There are about 18,000 Indians in Israel, about 5,000-10,000 in Iran, and some 90 lakh in the region as a whole.

— The region provides India with 80 per cent of its oil supplies. Also, major Arab countries have been keen to invest in the Indian economy; those plans will get a boost with peace. Then there is the India-Middle East-Europe Economic corridor, which India has high hopes from.

— India hopes to reap the dividends from peace in the region, which is beneficial for its access to Europe and Central Asia, and its economic and trade corridor. That was evident during the post-Abraham Accords period, since the first Trump administration, and the formation of an economic grouping like the I2U2 with India, Israel, US and UAE as its members.

— The 20-point document released by White House calls for an immediate ceasefire, an exchange of hostages held by Hamas for Palestinian prisoners held by Israel, a staged Israeli withdrawal from Gaza, Hamas disarmament and a transitional government led by an international body.

Do You Know:

— The 20-point document released by White House calls for an immediate ceasefire, an exchange of hostages held by Hamas for Palestinian prisoners held by Israel, a staged Israeli withdrawal from Gaza, Hamas disarmament and a transitional government led by an international body.

— According to the plan, Hamas would have no part in administering Gaza, and all its military infrastructure — including tunnels – would be dismantled. Hamas members who pledge to live peacefully would be granted amnesty, and those who wish to leave Gaza would be allowed to do so. 

— The international security force would ensure Hamas’ disarmament and keep order. It would also train Palestinian police to take over law enforcement.

— Humanitarian aid would be allowed to flow into Gaza in large amounts and would be run by “neutral international bodies”, including the UN and the Red Crescent.

— The US, Arab and international partners will develop a temporary International Stabilization Force (ISF) to deploy immediately in Gaza.

— Stating upfront that “Israel will not occupy or annex Gaza”, the plan says that “as the ISF establishes control and stability, the Israel Defense Forces (IDF) will withdraw based on standards, milestones, and timeframes linked to demilitarization that will be agreed upon…

— Only a “security perimeter presence” of the IDF “will remain until Gaza is properly secure from any resurgent terror threat.” This “security perimeter presence” is seen as an euphemism for Israel keeping a buffer zone inside Gaza — and can spark concerns.

— The plan envisages the governance structure of Gaza — what is doctrinally called the “The Day After plan”. This says that Gaza will be governed under the “temporary transitional governance” of a “technocratic, apolitical Palestinian committee”, responsible for delivering the day-to-day running of public services and municipalities for the people in Gaza.

— The plan says that a guarantee will be provided by regional partners to ensure that Hamas and its factions comply with their obligations and that New Gaza poses no threat to its neighbours or its people.

— In this context, eight Arab and Muslim nations — Qatar, Jordan, the United Arab Emirates, Indonesia, Pakistan, Turkey, Saudi Arabia, and Egypt — on Tuesday issued a joint statement welcoming Trump’s proposal. China and Russia have also welcomed the plan.

Other Important Articles Covering the same topic:

📍Trump’s Gaza peace plan: Ambitious declarations that are resting on shaky foundations

📍Gaza peace plan

Previous year UPSC Prelims Question Covering similar theme:

(1) The term “two-state solution” is sometimes mentioned in the news in the context of the affairs of (UPSC CSE 2018)

(a) China

(b) Israel

(c) Iraq

(d) Yemen

Previous year UPSC Mains Question Covering similar theme:

“India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.” Discuss (UPSC CSE 2018)

 

EXPRESS NETWORK

Cleaner air can reduce heart disease, diabetes in women, reveals assessment

Syllabus:

Preliminary Examination: General issues on Environmental Ecology, Biodiversity and Climate Change- that do not require subject specialisation.

Mains Examination: General Studies-III: Conservation, environmental pollution and degradation, environmental impact assessment.

What’s the ongoing story: Slashing pollution levels across the country by up to 30% can substantially reduce the burden of ailments such as heart disease, diabetes, anaemia and low birth weight among women and children, said a new assessment released Tuesday by IIT-Delhi and Climate Trends, a research-based consulting and capacity building initiative.

Key Points to Ponder:

— What is air pollution, and what are its sources?

— What is air pollution, and what are its sources?

— What is particulate matter (PM) 2.5?

— What is the National Clean Air Programme (NCAP)? 

— What is hypertension?

— What can be the benefits of reducing air pollution levels in India?

— What are the diseases linked to air pollution?

— What is the impact of various air pollutants on human health?

— What are the initiatives taken by the government to curb air pollution?

Key Takeaways:

— Data on disease prevalence from National Family Health Survey–5, Indian epidemiological studies on air pollution’s impact on health, and air quality data was used by IIT-D and Climate Trends to launch a ‘health benefit assessment dashboard’, which projects the co-benefits of reducing air pollution on disease prevalence across 641 districts.

— Since the dashboard was created using 2011 district boundaries, only 641 districts were included. For the particulate matter (PM) 2.5 pollution values, IIT-D used satellite data.

— After the assessment assumed a uniform 30% reduction in PM 2.5 pollution across these districts, it showed that heart disease prevalence among women could decline by 3%-10% if air pollution was slashed in line with the National Clean Air Programme (NCAP) targets — reduce PM 10 levels by up to 40% or achieve national ambient air quality standards by 2025-26. The most pronounced improvements would be seen in Assam, Jammu & Kashmir, and Nagaland.

— The assessment showed that overall reductions in diabetes prevalence are projected to range between 8% and 25% with the highest benefits in Delhi, UP, Bihar, Assam and Haryana.

— On hypertension, the assessment showed that the disease could decline meaningfully in the range of 2% to 8% if air pollution declined. “The largest improvements are found in Punjab, Haryana, Delhi, Assam, Bihar and Uttar Pradesh,” the assessment showed.

— Among children, the analysis highlighted that cleaner air could lead to decline in prevalence of lower respiratory infections, low birth weight and anaemia. The benefits, the analysis said, could be most pronounced in regions with high baseline prevalence and severe air pollution, such as the Indo-Gangetic plains and eastern states.

Do You Know:

— Air pollution is the contamination of the environment, whether indoors or outdoors, by any agent—chemical, physical, or biological—that alters the natural characteristics of the atmosphere.

Pollutants	Source	Impact
Nitrogen dioxide (NO2)	Burning of fuel, with sources including emissions from vehicles and power plants.	Short-term exposure to high levels of NO2 can aggravate respiratory diseases. Long-term exposure may also contribute to the development of asthma and could increase susceptibility to respiratory infections.
Ozone (O3)	Surface ozone pollutant is formed by the reaction of atmospheric pollutants in the presence of sunlight.	Increase in risk of hospital admissions for Chronic Obstructive Pulmonary Diseases (COPD) and the number of cardiovascular and respiratory deaths
Sulfur dioxide (SO2)	Burning of fossil fuels by power plants and other industrial facilities. Additional sources are industrial processes and natural sources such as volcanoes.	Harmful to the cardiovascular system and can lead to the development of respiratory illnesses. SO2 can also react with other compounds to form particulate matter.
Ammonia (NH3)	Increase in fertilizer use coupled with large contributions from livestock waste have resulted in the world’s highest concentrations of atmospheric ammonia	Excess ammonia is harmful to plants and reduces air and water quality
Lead (Pb)	It is a naturally occurring toxic metal found in the Earth’s crust exposed through mining, smelting, manufacturing and even recycling activities	Children who survive severe lead poisoning may be left with permanent intellectual disability and behavioural disorders.
Carbon Monoxide (CO)	It is given off when fuel containing carbon, such as wood, coal and petrol, is burned	If CO levels are high enough, a person may become unconscious and die. Long-term exposure has been linked with an increased risk of heart disease.

Other Important Articles Covering the same topic:

📍PM 2.5, Sulphur Dioxide, and more

📍UPSC Issue at a Glance | Air Pollution: 4 Key Questions You Must Know for Prelims and Mains

Previous year UPSC Prelims Question Covering similar theme:

(2) In the cities of our country, which among the following atmospheric gases are normally considered in calculating the value of Air Quality Index? (UPSC CSE 2016)

1. Carbon dioxide

2. Carbon monoxide

3. Nitrogen dioxide

4. Sulfur dioxide

5. Methane

Select the correct answer using the code given below:

(a) 1, 2 and 3 only

(b) 2, 3 and 4 only

(c) 1, 4 and 5 only

(d) 1, 2, 3, 4 and 5

Previous year UPSC Mains Question Covering similar theme:

Describe the key points of the revised Global Air Quality Guidelines (AQGs) recently released by the World Health Organisation (WHO). How are these different from its last update in 2005? What changes in India’s National Clean Air Programme are required to achieve revised standards? (UPSC CSE 2021)

India experienced 5th wettest monsoon since 2001, more rain in October, says IMD

Syllabus:

Preliminary Examination: Indian and World Geography-Physical, Social, Economic Geography of India and the World.

Main Examination: General Studies-I: Important Geophysical phenomena such as earthquakes, Tsunami, Volcanic activity, cyclone etc., geographical features and their location-changes in critical geographical features.

What’s the ongoing story: Even as the southwest monsoon season officially ended Tuesday, the IMD has said that rain will continue well into October over the northeast, central and peninsular India due to delayed monsoon withdrawal.

Key Points to Ponder:

— What are the main drivers of the Indian monsoon?

— What is the difference between the southwest monsoon and the northeast monsoon?

— What is the long-period average rainfall (LPA)?

— What is meant by below-normal, normal, and above-normal rainfall?

— What is the arrival and departure of the monsoon?

— Read about the effects of climate change on rain patterns in India.

— What is Mission Mausam?

— What is El Nino Southern Oscillation (ENSO)?

Key Takeaways:

— This year, the all-India rainfall during the June to September season was 937.2mm, a surplus of 8 per cent.

— A well-marked low pressure area near Kutch will lead to rain in Gujarat and parts of Maharashtra until Thursday, it said. Another fresh low pressure system is likely to develop over the north Bay of Bengal and its land-ward movement will result in rain over Odisha, Andhra Pradesh and Maharashtra till early next week, the IMD’s extended-range forecast suggested.

— This year, India experienced the 5th wettest monsoon season since 2001. With this, India recorded its second consecutive ‘above’ normal monsoon rainfall.

— “Even though there were many rain-related disasters that struck various parts of the country, there was good rainfall distribution both spatially and temporally,” the IMD chief noted.

— The final quarter of 2025 will see ‘above’ normal rainfall over south peninsular India which benefits from the winter or northeast monsoon during October and December.

— Northeast monsoon affects Kerala, Tamil Nadu, Rayalaseema, coastal Andhra Pradesh, Puducherry and south-interior Karnataka. The normal date for the onset of the northeast monsoon is October 20.

— During October, the all-India rainfall is expected to be ‘above’ normal over majority geographical areas except Jammu and Kashmir, southern regions of Kerala and Tamil Nadu.

— The IMD said that from the prevailing neutral El Nino Southern Oscillation (ENSO) conditions, the sea surface temperatures along the equatorial Pacific Ocean were likely to cool and enter a weak phase of La Nina. El Nino and La Nina are the two phases of ENSO, an ocean-atmospheric phenomenon capable of influencing the global weather.

Do You Know:

—There are two notable types of monsoon in India:

(1) Southwest monsoon: It occurs from June to September. It hits Kerala on the southwestern coast and then proceeds across the country.

— This monsoon is the primary monsoon affecting India — it not only brings respite from the heat but also contributes to the country’s ecosystem and economy, especially the growing of kharif crops.

 — Over 70 per cent of the country receives the majority of its annual rainfall during the June to September season. The country’s Long Period Average is 880 mm.

(2) Northeast monsoon: It is another significant and persistent aspect of the Indian subcontinent’s climate system. Its name comes from the direction of the monsoon winds, which blow from northeast to southwest.

 — It occurs from October to December and affects peninsular India. It is not as intense as the southwest monsoon but is crucial for the growth of rabi crops.

 — The northeast monsoon is key for Tamil Nadu, Kerala, Puducherry, Karaikal, coastal Andhra Pradesh, Rayalaseema and Yanam in southern India. Of the total annual rainfall, Tamil Nadu receives nearly 48 per cent (443.3mm) during the October to December months, important for rabi cultivation.

 — The Northeast monsoon is also known as the winter monsoon, retreating monsoon, or reverse monsoon.

Other Important Articles Covering the same topic:

📍Knowledge Nugget | Monsoon in India: What you must know for UPSC exam

UPSC Prelims Practice Question Covering similar theme:

(3) With reference to the Monsoons in India, consider the following statements:

1. The southwest monsoon brings more than half of India’s annual rainfall.

2. The ‘above normal’ rainfall is attributed mainly to the El Nino conditions.

3. During the northeast monsoon, the direction of the monsoon winds is from southwest to northeast.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

India’s dietary profile linked to rising diabetes, obesity, shows study

Syllabus:

Preliminary Examination: Economic and Social Development – Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Mains Examination: General Studies-II: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

What’s the ongoing story: India’s rapidly changing eating habits are fueling an alarming spike in diabetes and obesity with at least 21 states and UTs exceeding the national recommendations of less than 5%E (total energy) for added sugar intake while overall protein intake was suboptimal averaging 12% of the daily calories, according to the findings of the survey as part of the study by Indian Council of Medical Research-India Diabetes (ICMR-INDIAB), published in Nature Medicine.

Key Points to Ponder:

— Who is obese?

— There is a need for Indians to shift towards diets richer in plant-based and dairy proteins, and lower in carbohydrates and saturated fats. Elaborate.

— What are the reasons for the rise in non-communicable diseases in India?

— What is the ‘double burden’ of malnourishment?

Key Takeaways:

— The study also flagged that most Indians get 62% of their calories from carbohydrates.

— Dr Mohan also stressed that these findings should inspire policy reforms and “help Indians shift towards diets richer in plant-based and dairy proteins, and lower in carbohydrates and saturated fats”.

— According to the study — the largest epidemiological study done on diabetes and other metabolic NCDs — had then pointed out 11.4% people in the country have diabetes while another 15.3% were prediabetic.

— The study highlighted significant regional differences, high physical inactivity and need for lifestyle interventions.

— Now as part of this study, a detailed dietary survey was conducted in every state and the data linked to the occurrence of various NCDs. 

— Dr R M Anjana, lead author and president, Madras Diabetes Research Foundation, said that their findings show that typical Indian diets are heavy in carbohydrates from white rice or whole wheat flour, and low in quality protein. 

— Higher calorie intake from carbohydrates was associated with a 14% higher likelihood of newly diagnosed type 2 Diabetes. While there is a huge diversity in nutrient intake across states, most Indians get a staggering 62% of their calories from carbohydrates. Much of this comes from low-quality sources like white rice, milled whole grains and added sugar.

— The study showed that refined cereal intake was highest in the Northeast (51.7%E), followed by the South (36%E) and East (31.5%E), largely from white rice (95% of refined cereals).

— The Central and Northern regions reported the highest intakes of milled whole grains at 30.9%E and 27.8%E, respectively, compared to 16.2%E nationally, mainly from wheat flour (15%E of 16.2%E). Millet flour contributed minimally (1.4%E).

— Millets as a main staple are consumed in only three states: Karnataka, Gujarat and Maharashtra with major types including finger millet (ragi), sorghum (jowar) and pearl millet (bajra).

— High sugar intake is concerning. At least 21 states and UTs exceeded the national recommendations of less than 5%E for added sugar intake.

— While average total fat intake was within national guidelines (≤30% of energy), saturated fat intake exceeded the recommended threshold for metabolic health (less than 7% of energy) in all but four states — Jharkhand, Chhattisgarh, Arunachal Pradesh and Manipur.

— Consumption of monounsaturated and omega-3 polyunsaturated fats remain low across regions. Meanwhile all regions except Northeast consumed less protein.

— Most protein in Indian diets comes from plant-based foods like cereals, pulses and legumes (9%E). Intakes of dairy and animal protein varied widely but intakes remained low nationwide at 2%E and 1%E, respectively.

— Modelled substitution analysis found that replacing just 5% of daily calories from carbohydrates with plant or dairy proteins significantly lowered risk of developing diabetes and prediabetes.

Do You Know:

— A UNICEF report, released last month, has cited National Family Health Survey (NFHS) data to flag an alarming surge in obesity among children and adolescents between 2006 and 2021. What is particularly worrying is that the number of overweight children below the age of five has more than doubled in these 15 years.

— UNICEF’s Child Nutrition Global Report 2025, titled ‘Feeding Profit: How food environments are failing children’, has pointed out that obesity has, for the first time, surpassed underweight globally as the most common form of malnutrition among school-aged children and adolescents. Today, one in ten children worldwide, nearly 188 million, live with obesity.

— The Report describes the role of food environments in exposing children and adolescents to a constant supply of cheap and aggressively marketed ultra-processed foods and sugary drinks, while failing to make nutritious options available and affordable. 

— According to the UNICEF prediction, India is expected to be home to over 27 million children and adolescents (5 to 19 years) living with obesity by 2030. It will account for 11 per cent of the global burden.

— The UNICEF report has also flagged that the nutrition deficits among children are often carryovers of the poor dietary practices of their mothers.

Other Important Articles Covering the same topic:

📍Knowledge Nugget: UNICEF Report on obesity – Why it matters for your UPSC exam

📍Obesity is even worse for health than believed earlier. India can’t ignore that 

Previous year UPSC Prelims Question Covering similar theme:

(4) The nutritional deficiency condition that needs to be given top priority for remedial action in India today is (UPSC CSE 1996)

(a) Scurvy

(b) Xerophthalmia

(c) Rickets

(d) Pellagra

Previous year UPSC Mains Question Covering similar theme:

How far do you agree with the view that the focus on lack of availability of food as the main cause of hunger takes the attention away from ineffective human development policies in India? (UPSC CSE 2018)

 

EXPLAINED

India to extend its railway grid to Bhutan: how this will help the neighbours

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies-II: India and its neighbourhood- relations.

What’s the ongoing story: The Centre on Monday (September 29) announced two cross-border railway projects spanning 69 km and 20 km respectively, which will connect Bhutan with the bordering areas of Assam and West Bengal. The 69-km Kokrajhar (Assam)-Gelephu (Bhutan) and 20-km Banarhat (West Bengal)-Samtse (Bhutan) will cost Rs 3,456 crore and Rs 577 crore, respectively.

Key Points to Ponder:

— What is the significance of extending the railway network to Bhutan?

— What is the strategic significance of Bhutan for India?

— What are the areas of cooperation (hydroelectricity, tourism, economic) between India and Bhutan? 

— What are the challenges in their relationship and what is the role of China in it?

— What is India’s ‘neighbourhood first’ policy?

Key Takeaways:

— Currently, the Himalayan nation of Bhutan does not have any railway network. The Gelephu and Samtse line will be the first such project in the neighbouring country. It is the result of almost two decades of efforts made by both nations to finally make the way for these two strategic projects to take off.

— Given the historically peaceful relationship of India with Bhutan, the two railway projects are expected to strengthen ties and increase trade in the entire area amid the flexing by China in the region.

— The genesis of these two projects lies in an important Memorandum of Understanding (MoU) signed between Bhutan and India in 2005. On January 25, 2005 an MoU was signed for establishment of a total of five links between bordering towns of India and Bhutan.

— Out of the five proposed lines, these two projects finally made a headway after Prime Minister Narendra Modi visited Bhutan in March 2024. Both sides initialled the text of the MoU on establishment of Kokrajhar-Gelephu and 20-km Banarhat-Samtse rail link and their implementation modalities.

— Out of the five proposed lines, these two projects finally made a headway after Prime Minister Narendra Modi visited Bhutan in March 2024. Both sides initialled the text of the MoU on establishment of Kokrajhar-Gelephu and 20-km Banarhat-Samtse rail link and their implementation modalities.

Bhutan project map

— In the Samtse line, Bhutanese side is about 2.13 km and the Indian side is about 17.42 km. Whereas, in the case of the Gelephu line, Bhutanese side is 2.39 km and the Indian side is 66.66 km.

— The project will have two important bridges, two viaducts, 29 major bridges, 65 minor bridges, two Goods shed, one overpass and 39 underpasses. The construction period of the project is four years.

— Similarly, the second project will connect Bhutan’s Samtse district with India’s Jalpaiguri district in West Bengal. It will have two stations Ambari and Samtse. Apart from this, the project will get one major bridge, 24 minor bridges, one overpass and 37 underpasses. The construction period of the Samtse line will be three years.

Do You Know:

— Gelephu and Samtse are the major export-import hubs in Bhutan and serve the 700-km long India-Bhutan border. Gelephu is being developed as “Mindfulness City” and Samtse is being developed as an industrial town by the Government of Bhutan.

— Located in Bhutan’s southern plains bordering Assam, Gelephu Mindfulness City (GMC) is one of the most ambitious projects envisioned by Bhutan King Jigme Khesar Namgyel Wangchuck. 

— Samtse is being developed as a major industrial town in Bhutan focused on manufacturing and export. Some of the potential exports from Bhutan to India from this area will involve dolomite, ferro-silicon, quartzite and stone chips. The train line will be for both cargo and passenger movement.

— India is Bhutan’s top trading partner, as the principal source of imports and the principal destination of their exports. It accounts for nearly 80 percent of Bhutan’s total trade. 

— The 2016 bilateral agreement on trade, commerce, and transit establishes a free trade agreement between Bhutan and India, and also provides Bhutan duty-free transit for goods from and to third countries.

— India and Bhutan share a deep-rooted partnership, strengthened by diplomatic, economic, and security cooperation. The India-Bhutan Trade, Commerce, and Transit Agreement, first signed in 1972 and last revised in 2016, ensures a free trade regime, making India Bhutan’s largest economic partner.

— The core principle of Neighbourhood First Policy, first articulated during Prime Minister Modi’s tenure in 2014, has been to cultivate regional partnerships based on trust, development cooperation, and shared security interests, while strategically countering China’s growing influence. 

Other Important Articles Covering the same topic:

📍Bhutan’s unique position in India’s regional strategy

Previous year UPSC Mains Question Covering similar theme:

Border management is a complex task due to difficult terrain and hostile relations with some countries. Elucidate the challenges and strategies for effective border management. (UPSC CSE 2016).

 

ECONOMY

RBI constitutes six-member board to oversee functioning of payment systems

Syllabus:

Preliminary Examination: Economic and Social Development – Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Mains Examination: General Studies-III: Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment.

What’s the ongoing story: The Reserve Bank of India (RBI) on Tuesday constituted a six-member Payments Regulatory Board (PRB), comprising three nominees from the Central government, to oversee the functioning of payment systems in the country.

Key Points to Ponder:

— What are Payment and Settlement Systems?

— Read about the Payment and Settlement Systems Act, 2007.

— What is the significance of the Payments Regulatory Board (PRB)?

— How is PRB different from the earlier Board for Regulation and Supervision of Payment and Settlement Systems (BPSS)?

— Read about the Reserve Bank of India (RBI)?

— What are the functions of RBI?

Key Takeaways:

— The Board is chaired by RBI Governor Sanjay Malhotra. Alongside the Governor, the two other RBI representatives on the PRB are the Deputy Governor and the Executive Director in charge of Payment and Settlement Systems. The government nominees include the Secretary of the Department of Financial Services, the Secretary of the Ministry of Electronics and Information Technology, and Aruna Sundararajan, former Telecom Secretary.

— The PRB replaces the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), a committee of the RBI’s Central Board. The new board derives its authority from the Payment and Settlement Systems Act, 2007.

— The PRB will be supported by the RBI’s Department of Payment and Settlement Systems (DPSS), which will report directly to it.

— The five-member BPSS, also chaired by the RBI governor, did not include government nominees. “The inclusion of government representatives means the government will now have a say in the functioning of the country’s payment systems,” said a banking source.

— As per the Act, decisions requiring approval during board meetings will be taken by a majority of members present and voting. In the event of a tie, the chairperson — or in his absence, the deputy governor who is a member of the board — will have a second or casting vote. The Board is required to meet at least twice a year, according to a notification issued in May.

— The Act further provides that, if the chairperson so directs, any item of business requiring a decision may be circulated to Members for approval. Such matters will be decided by a majority vote, and in the event of a tie, the chairperson, or in his absence the deputy governor on the board, will exercise a second or casting vote. The principal legal adviser of the RBI is a permanent invitee to the meetings of the board.

Do You Know:

— The Reserve Bank of India is a central bank of India. While central banks in developed countries can be traced as far back as the 17th century, among developing countries, the Reserve Bank of India, established on April 1, 1935, is one of the oldest such institutions. 

— RBI was established in accordance with the provisions of the Reserve Bank of India Act, 1934. The first Governor of the RBI was the Australian Sir Osborne Arkell Smith, one of the two managing governors of the Imperial Bank of India. Sir C. D. Deshmukh was the first Indian to become Governor of the RBI.

— Since it came into existence, RBI has navigated and managed the several transitions the country has undergone — from a time when the planning process held sway to a more market-orientated economy and now an increasingly digital economy. 

— Notably, the Preamble of the RBI describes the basic functions of the Reserve Bank as “to regulate the issue of banknotes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy; and to maintain price stability while keeping in mind the objective of growth.”

—In simple terms, the RBI is responsible for monetary stability, currency management, inflation targeting, regulating the banking system, setting interest rates, and managing the currency and payment systems.

Other Important Articles Covering the same topic:

📍UPSC Issue at a Glance | RBI Explained – History, tools of monetary policy, and surplus transfer

Previous year UPSC Prelims Question Covering similar theme:

(5) Which of the following are the sources of income for the Reserve Bank of India? (UPSC CSE 2025)

I. Buying and selling Government bonds

II. Buying and selling foreign currency

III. Pension fund management

IV. Lending to private companies

V. Printing and distributing currency notes

Select the correct answer using the code given below.

(a) I and II only

(b) II, III and IV

(c) I, III, IV and V

(d) I , II and V

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On lines of Model UN, Centre set to launch Youth Gram Sabha initiative from Oct	The Centre plans to launch Model Youth Gram Sabha (MYGS), an initiative based on the Model UN – an educational simulation of the United Nations – in schools across the country, an official said. As part of the initiative, a mock Gram Sabha will be conducted in identified schools, where students from classes 9-12 will play the roles of sarpanch, ward members, and village-level officials, including village secretary, Anganwadi worker, auxiliary nurse midwife (ANM), and junior engineers. As per the official, the Ministry of Panchayati Raj, in collaboration with the ministries of Education and Tribal Affairs will launch this initiative in over 600 Jawahar Navodaya Vidyalayas (JNVs) and 200 Eklavya Model Residential Schools (EMRS) across the country in the first phase beginning from October 2025
Amazon rainforest trees are getting bigger due to climate change: What a new study says	The average size of trees in the Amazon rainforest has been steadily increasing due to the rising levels of carbon dioxide (CO2) in the atmosphere, according to a new study. The trees are increasing in size by more than three per cent every ten years, the analysis said. The study, ‘Increasing tree size across Amazonia’, was published in the journal Nature Plants on September 25.  The rise of CO2 levels can benefit tree growth because of a phenomenon known as the carbon fertilisation effect. More CO2 in the atmosphere increases the rate of photosynthesis, leading to increased growth in some plants.  The Amazon rainforest is the world’s largest tropical rainforest, spanning nine countries in South America: Brazil, Peru, Colombia, Bolivia, Ecuador, French Guiana, Guyana, Suriname, and Venezuela. However, nearly 60% of the rainforest is situated in Brazil. Despite covering around 1% of the planet’s surface, the Amazon rainforest is home to 10% of all the wildlife species known to humans. Notably, scientists call the Amazon rainforest the “lungs of the planet” due to the role it plays in absorbing CO2 and producing oxygen. It is estimated that around 150-200 billion tonnes of carbon are stored in the Amazon rainforest.
RBI changes loan rules: New norms likely to boost policy transmission, say experts	The Reserve Bank of India’s (RBI) decision to allow banks to reduce the spread component on loans offered before three years will benefit existing customers and further aid monetary policy transmission, experts said. Spread refers to the additional percentage that lenders add to the benchmark interest rate such as external benchmark rate or marginal cost of funds based lending rate (MCLR) by banks when determining the final lending rate to a borrower. Banks typically factor in credit risk profile, operating cost and tenure of the loan while finalising the spread charged to a borrower.

 

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