Merchant Discount Rate (MDR) Framework for UPI

What is the Merchant Discount Rate (MDR) on UPI, and what are its key structural provisions?

• Merchant Discount Rate (MDR)  – MDR is the processing fee paid by merchants to acquiring banks, fintech service providers, and payment gateways to cover the operational, security, and infrastructure costs of processing digital transactions.

Tiered Fee Structure

• Person-to-Person (P2P) – Remains completely free for senders and receivers, irrespective of amount.
• Small Person-to-Merchant (P2M) – Transactions up to Rs.2,000 are completely exempt from MDR.
• Standard P2M (>Rs.2,000) – Attracts a baseline MDR of 0.4%, capped at a maximum of Rs.300 for high-value transactions exceeding Rs.75,000.
• Essential and Recurring Services – Flat fee of Rs.5 per transaction for utilities, fuel, education, telecom, and agriculture. AutoPay/UPI Mandates remain exempt.
• Financial Markets – Mutual funds and securities transactions attract a minimal 0.02% MDR (capped at Rs.300).

How does the framework safeguard micro-merchants and protect consumers?

• Protection for Micro-Vendors (P2PM Category) – Small shopkeepers and street vendors earning up to Rs.1 lakh per month via QR codes into personal accounts are fully exempt.
• Reclassification to the commercial P2M category occurs only if monthly inward credit exceeds Rs.1 lakh for three consecutive months.
• Prohibition of Cost Pass-Through – The government has instructed banks to ensure merchants do not pass MDR burdens onto buyers, and expressly prohibited payment apps from imposing platform or hidden fees.
• Competitive Advantage over Cards – At 0.4%, UPI MDR is significantly lower than debit cards (up to 0.9%) and credit cards (1.5%–2.5%), reducing the economic incentive for merchants to inflate shelf prices.

What are the economic, infrastructural, and strategic arguments in favour of introducing MDR?

• Fiscal and Commercial Sustainability – Managing UPI’s infrastructure cloud storage, server capacity, fraud detection, cybersecurity, and customer service costs the banking and fintech ecosystem Rs.20,000 crore annually, reintroducing MDR offsets these costs.
• Spurring Fintech Innovation – A zero – MDR regime forced payment app aggregators to rely on government subsidies or secondary monetization (selling credit, insurance, or advertising).
• MDR creates a predictable, self-sustaining revenue model that incentivizes private R&D and capital investment into payment rails.
• Targeting High-Value Velocity – While transactions above Rs.2,000 represent only 4% of total P2M volume.
• They account for roughly two-thirds of total P2M payment value, ensuring revenue generation focuses on high-value commercial flows rather than everyday micro-purchases.

What critical risks, behavioural friction, and structural challenges does this move introduce?

• Informal Resistance and Cash Reversion – Small or unorganized merchants may resist absorption of the 0.4% charge on larger sales, leading to informal surcharge pass-through or a push back toward cash transactions, potentially slowing India's cash-to-digital migration.
• Digital Public Infrastructure (DPI) Debate – Critics argue that UPI, as a foundational DPI, should be treated as a public good fully subsidized by the state to drive formalization and financial inclusion, rather than commercialized through transactional levies.
• Operational Monitoring Complexity – Systemically tracking transaction velocity to monitor the Rs.1 lakh monthly threshold for micro-merchants places compliance and monitoring overhead on acquiring banks.

How does this policy compare globally, and what is the strategic way forward?

• International DPI Precedents – Unlike privatized payment networks in Western economies (e.g., Visa/Mastercard charging high interchange fees).
• India’s hybrid model balances public oversight with capped market pricing, similar to central bank digital currency (CBDC) pilot frameworks globally.
• Balanced Policy Roadmap –
• Strict Monitoring against Illicit Surcharges – Enforce strict grievance redressal frameworks to stop merchants from penalizing buyers using UPI.
• Gradual Scaling – Periodically review the Rs.2,000 threshold and Rs.1 lakh/month P2PM limit based on inflationary trends and formalization rates.
• Reinvesting Levies into Security – Mandate that a fixed percentage of collected MDR be funnelled into expanding rural digital literacy and strengthening zero-day cybersecurity defences for smaller regional banks.

Reference

Indian Express | MDR

Kishau Water Agreement

Mains: GS III – Environment, Energy

Why in News?

Six basin states signed agreement for Kishau Multipurpose Project on Tons River, hailed for inter‑state water governance but facing environmental, socio‑economic, and operational data concerns.

What is the Kishau Multipurpose Project and where is it located?

• Project Profile – The Kishau Multipurpose Project is a major planned water storage and hydroelectricity venture featuring a 232.6-meter-high concrete gravity dam.
• It creates a massive reservoir with a storage capacity of roughly 1,562 million cubic meters.
• Geographical Location – It is situated on the Tons River (the primary tributary of the Yamuna River by volume), directly straddling the inter-state border between Sirmaur district in Himachal Pradesh and Dehradun district in Uttarakhand.
• Executing Agency – The project is executed by Kishau Corporation Limited, a 50 –50 joint venture between the state governments of Himachal Pradesh and Uttarakhand.

Why is the Kishau Multipurpose Project strategically significant for inter-state water governance?

• Federal Cooperation Framework – The signing of the agreement by six states (Uttar Pradesh, Uttarakhand, Himachal Pradesh, Rajasthan, Delhi, and Haryana) sets a precedent for regional water-sharing consensus in the water-stressed Yamuna basin.

• Fiscal Structure of National Projects – With a 90:10 funding formula between the Central Government and participating states, the project lowers the capital entry barrier for state governments while securing central oversight for national-scale infrastructure.

• Innovative Water-Power Swap Model – The arrangement allows Himachal Pradesh to trade its allocated water share to Delhi and Rajasthan in exchange for those states covering Himachal Pradesh's share of the electricity component's capital cost.
• Downstream Environmental and Municipal Supply – Delhi is slated to be the largest beneficiary, with 25% of Yamuna’s water dedicated as environmental flow (e-flow) to assist in downstream river rejuvenation and urban supply.

What key ecological, seismic, and environmental risks surround the project?

• Himalayan Seismic Vulnerability – The construction of a 232.6-metre-high concrete gravity dam in a high-risk seismic zone in the Himalayas increases risks related to reservoir-induced seismicity (RIS) and potential structural failure.
• Ecological Submergence – The project requires the submergence of roughly 2,950 hectares of land, including 2,438 hectares of forest land, causing loss of Himalayan biodiversity and habitat fragmentation.
• Flawed River Rejuvenation Logic – Environmental experts question the approach of relying on upstream water storage to dilute downstream pollution. Dilution via storage dams is considered an ineffective substitute for dedicated effluent treatment and sewage management in urban stretches like Delhi.

What are the socio-economic impacts and displacement challenges associated with the dam?

• Livelihood Disruption – Field studies indicate that over 5,498 people across 701 families face direct displacement.
• The submergence of 512 hectares of fertile agricultural land threatens local agrarian economies built around cash crops (tomato, ginger), animal husbandry, and local fisheries.
• Outdated Baseline Data – The socio-economic impact assessments and displacement estimates rely on outdated baseline surveys without recent ground-level re-verification, raising concerns about inadequate Rehabilitation and Resettlement (RandR) packages.

What is the way forward for sustainable river basin management?

• Comprehensive Risk Audit – Conduct updated seismic hazard mapping and cumulative impact assessments (CIA) across the Yamuna and Tons river basins before full-scale construction.
• Transparent Baseline Reconciliation – Re-evaluate power generation capacity, actual water flow yield, and displacement numbers through an independent technical panel to harmonize official records.
• Rights-Based RandR Framework – Update displacement data through ground-level surveys to ensure fair compensation, land-for-land rehabilitation, and alternative livelihood restoration for affected mountain communities.
• Prioritizing In-Situ Pollution Control – Reframe river cleaning strategies by prioritizing decentralized sewage treatment plants (STPs) and industrial effluent regulation rather than relying on upstream dilution via large storage dams

Reference

Down to Earth | Kishau Water Agreement

Plug-in Hybrid Electric Vehicles (PHEVs)

Why in News?

MG Hector Tomahawk, described as India’s first mainstream plug-in hybrid SUV, offers 115+ km electric-only range, 40+ km/l efficiency, and 1,100+ km total range, highlighting the potential of PHEVs in India’s transition to cleaner mobility.

What are PHEVs?

• A Plug-in Hybrid Electric Vehicle (PHEV) combines:
  • An Internal Combustion Engine (ICE) using conventional fuel.
  • An electric motor.
  • A rechargeable battery that can be charged externally.
• Unlike conventional hybrids, PHEVs can be plugged into an external power source and generally have a larger battery and longer electric-only range.
• Thus, PHEVs combine the long-distance capability of petrol vehicles with the lower-emission operation of electric vehicles.

• EV Technologies – The broader electric-mobility ecosystem includes:
  • BEVs – Battery Electric Vehicles: Run entirely on electricity stored in batteries.
  • HEVs – Hybrid Electric Vehicles: Combine an ICE with an electric motor but cannot normally be externally charged.
  • PHEVs – Plug-in Hybrid Electric Vehicles: Combine an ICE and electric motor with externally rechargeable batteries.
  • FCEVs – Fuel Cell Electric Vehicles: Use hydrogen fuel cells to generate electricity for propulsion.
• These technologies form part of the broader category of low-emission vehicles.

• Charging Infrastructure   Not essential     Useful/required for full benefit      Essential

How does a PHEV Work?

• A PHEV can operate using:
  • Electric power from its battery.
  • Petrol engine for longer journeys.
  • Both systems together, depending on driving conditions.
• The battery can be charged through an external power source and also through regenerative braking and the vehicle’s powertrain.
• A larger battery allows the vehicle to undertake a significant portion of daily travel using electricity alone.

What are the Advantages of PHEVs?

• Lower Fuel Consumption – Greater use of electric power can reduce petrol consumption and operating costs.
• Reduced Range Anxiety – The petrol engine provides additional range when charging infrastructure is unavailable.
• Lower Dependence on Charging Infrastructure – Unlike BEVs, PHEVs can continue operating using their ICE when charging facilities are limited.
• Transitional Technology – PHEVs can provide a gradual transition from conventional vehicles and hybrids towards fully electric vehicles.
• Potential Emission Reduction – Greater electric-mode usage can reduce tailpipe emissions compared with conventional ICE vehicles, particularly when the vehicle is regularly charged.

What are the Limitations of PHEVs?

• Higher Initial Cost – PHEVs are generally more expensive because they contain both an ICE system and a relatively large battery.
• Complex Engineering – They require two propulsion systems, increasing mechanical and electronic complexity.
• Dependence on Charging Behaviour – The environmental and fuel-saving benefits are greater when owners regularly charge and use the vehicle in electric mode.
• Weight and Packaging – Carrying both an engine and a larger battery increases vehicle weight and engineering complexity.
• Hybrid Technology as a Transition – Hybrid technology is increasingly viewed as a transitional pathway towards electrification.
  • It improves fuel efficiency through electrification while reducing dependence on extensive charging infrastructure.
  • However, hybrids remain dependent on fossil fuels and therefore are not equivalent to zero-emission BEVs.
  • PHEVs occupy an intermediate position by combining external charging capability, electric driving and the flexibility of an ICE.

What could be done?

• Develop adequate and interoperable EV charging infrastructure.
• Promote cleaner electricity generation to maximise the environmental benefits of electrification.
• Encourage domestic manufacturing of batteries and power electronics.
• Establish robust standards for battery recycling and end-of-life management.
• Encourage consumer awareness regarding regular charging and efficient use of PHEVs.
• Adopt a technology-neutral approach while gradually increasing the share of zero-emission vehicles.

What lies ahead?

• PHEVs can serve as a bridge between conventional internal combustion vehicles and fully electric mobility.
• Their ability to combine electric driving with the flexibility of an ICE can address concerns such as range anxiety and inadequate charging infrastructure.
• However, their long-term effectiveness depends on regular charging, cleaner electricity and a gradual expansion of zero-emission mobility.

Reference

The Indian express| Plug-in Hybrid Electric Vehicles (PHEVs)

Kishau Water Agreement

Mains: GS III – Environment, Energy

Why in News?

Six basin states signed agreement for Kishau Multipurpose Project on Tons River, hailed for inter‑state water governance but facing environmental, socio‑economic, and operational data concerns.

What is the Kishau Multipurpose Project and where is it located?

• Project Profile – The Kishau Multipurpose Project is a major planned water storage and hydroelectricity venture featuring a 232.6-meter-high concrete gravity dam.
• It creates a massive reservoir with a storage capacity of roughly 1,562 million cubic meters.
• Geographical Location – It is situated on the Tons River (the primary tributary of the Yamuna River by volume), directly straddling the inter-state border between Sirmaur district in Himachal Pradesh and Dehradun district in Uttarakhand.
• Executing Agency – The project is executed by Kishau Corporation Limited, a 50 –50 joint venture between the state governments of Himachal Pradesh and Uttarakhand.

Why is the Kishau Multipurpose Project strategically significant for inter-state water governance?

• Federal Cooperation Framework – The signing of the agreement by six states (Uttar Pradesh, Uttarakhand, Himachal Pradesh, Rajasthan, Delhi, and Haryana) sets a precedent for regional water-sharing consensus in the water-stressed Yamuna basin.

• Fiscal Structure of National Projects – With a 90:10 funding formula between the Central Government and participating states, the project lowers the capital entry barrier for state governments while securing central oversight for national-scale infrastructure.

• Innovative Water-Power Swap Model – The arrangement allows Himachal Pradesh to trade its allocated water share to Delhi and Rajasthan in exchange for those states covering Himachal Pradesh's share of the electricity component's capital cost.
• Downstream Environmental and Municipal Supply – Delhi is slated to be the largest beneficiary, with 25% of Yamuna’s water dedicated as environmental flow (e-flow) to assist in downstream river rejuvenation and urban supply.

What key ecological, seismic, and environmental risks surround the project?

• Himalayan Seismic Vulnerability – The construction of a 232.6-metre-high concrete gravity dam in a high-risk seismic zone in the Himalayas increases risks related to reservoir-induced seismicity (RIS) and potential structural failure.
• Ecological Submergence – The project requires the submergence of roughly 2,950 hectares of land, including 2,438 hectares of forest land, causing loss of Himalayan biodiversity and habitat fragmentation.
• Flawed River Rejuvenation Logic – Environmental experts question the approach of relying on upstream water storage to dilute downstream pollution. Dilution via storage dams is considered an ineffective substitute for dedicated effluent treatment and sewage management in urban stretches like Delhi.

What are the socio-economic impacts and displacement challenges associated with the dam?

• Livelihood Disruption – Field studies indicate that over 5,498 people across 701 families face direct displacement.
• The submergence of 512 hectares of fertile agricultural land threatens local agrarian economies built around cash crops (tomato, ginger), animal husbandry, and local fisheries.
• Outdated Baseline Data – The socio-economic impact assessments and displacement estimates rely on outdated baseline surveys without recent ground-level re-verification, raising concerns about inadequate Rehabilitation and Resettlement (RandR) packages.

What is the way forward for sustainable river basin management?

• Comprehensive Risk Audit – Conduct updated seismic hazard mapping and cumulative impact assessments (CIA) across the Yamuna and Tons river basins before full-scale construction.
• Transparent Baseline Reconciliation – Re-evaluate power generation capacity, actual water flow yield, and displacement numbers through an independent technical panel to harmonize official records.
• Rights-Based RandR Framework – Update displacement data through ground-level surveys to ensure fair compensation, land-for-land rehabilitation, and alternative livelihood restoration for affected mountain communities.
• Prioritizing In-Situ Pollution Control – Reframe river cleaning strategies by prioritizing decentralized sewage treatment plants (STPs) and industrial effluent regulation rather than relying on upstream dilution via large storage dams

Reference

Down to Earth | Kishau Water Agreement

Antarctic Ozone Hole 2026

Why in News?

CAMS reported that the 2026 Antarctic ozone hole expanded to around 25 million km² in early September—about 5 million km² above the seasonal average.

Ozone Hole

• Ozone layer – Stratospheric layer that absorbs harmful ultraviolet (UV) radiation.
• Ozone hole – Region where ozone concentration falls below 220 Dobson Units (DU).
• It is not an actual physical hole, but an area of severe ozone depletion.
• Ozone depletion occurs in both hemispheres, but a severe seasonal ozone hole occurs regularly over Antarctica.

Why Antarctica?

• Antarctica develops a strong and stable polar vortex.
• Extremely low stratospheric temperatures favour the formation of Polar Stratospheric Clouds (PSCs).
• PSCs activate chlorine and bromine from human-made chemicals such as CFCs.
• When sunlight returns during the austral spring (August–November), these halogens rapidly destroy ozone.

2026 Ozone Hole – Important Observation

• Rapid growth coincided with a sharp fall in stratospheric temperature around 20 km altitude (50 hPa).
• However, other indicators such as minimum ozone column value and ozone mass deficit remained close to historical averages.
• This indicates the complex nature of annual ozone-hole dynamics.

Role of Climate Change

• Global warming can cool the stratosphere, creating conditions favourable for PSC formation.
• However, ozone depletion and climate change involve complex atmospheric interactions and should not be treated as identical processes.

About CAMS

• CAMS: Copernicus Atmosphere Monitoring Service.
• Implemented by – European Centre for Medium-Range Weather Forecasts (ECMWF).
• Provides – information on atmospheric composition, air pollution, greenhouse gases, solar energy and climate forcing.
• It is one of the six services of the Copernicus Earth Observation Programme.
• Copernicus is coordinated by the European Commission and European Space Agency (ESA), along with EU Member States and agencies.

Reference

Down To Earth| 2026 Antarctic ozone hole

Year of India-Vietnam Friendship – 2027

Why in news?

India and Vietnam have agreed to observe next year as the "Year of India-Vietnam Friendship" to mark the 55th anniversary of their bilateral diplomatic relations.

Vietnam

• It is a key partner in India’s Act East Policy, in India’s Vision MAHASAGAR (Mutual and Holistic Advancement for Security and Growth across Regions) in outlook of the Indo-Pacific.
• Vietnam is equally an important partner in the framework of our Comprehensive Strategic Partnership with ASEAN (Association of Southeast Asian Nations).
• Both countries elevated their relationship to an Enhanced Comprehensive Strategic Partnership.
• Vietnam is the first country in the region with which we have bilateral ties at that level.

India announced that it had signed a deal with Vietnam to supply BrahMos supersonic cruise missiles.

• The bilateral joint military exercise between India and Vietnam is named Exercise VINBAX

Reference

DD News| Year of India-Vietnam Friendship – 2027

India–MERCOSUR: Electronic Certificates of Origin

Why in News?

India and MERCOSUR signed the First Additional Protocol to facilitate electronic Certificates of Origin (CoO).

• Electronic CoOs will have the same legal validity and value as paper certificates.
• The arrangement provides preferential tariff concessions on 450 tariff lines for India and 452 tariff lines for MERCOSUR.

Certificate of Origin (CoO)

• A CoO certifies the country of origin of a product.
• It is used by importers to claim preferential tariff concessions under a trade agreement.
• The protocol facilitates the shift from paper-based to electronic certification.

MERCOSUR

• MERCOSUR (Southern Common Market and a regional trade bloc)
• Established through the Treaty of Asunción (1991).

• Protocol of Ouro Preto (1994) established its institutional framework.
• Full Members –
  • Argentina
  • Brazil
  • Paraguay
  • Uruguay
  • Bolivia
• Note – Venezuela has been suspended since 2016.
• Associate Members – Chile, Colombia, Ecuador, Guyana, Panama, Peru and Suriname.

Quick facts

• MERCOSUR countries and associated members are associated with several important geographical features:
• Amazon River – world's largest river by discharge.
• Amazon Rainforest – world's largest tropical rainforest.
• Andes – world's longest continental mountain range.
• Aconcagua – highest peak of the Andes, in Argentina.
• Angel Falls – world's highest uninterrupted waterfall, in Venezuela.
• Atacama Desert – one of the driest places on Earth, in Chile.
• Lake Titicaca – high-altitude navigable lake on the Peru–Bolivia border.
• La Paz, Bolivia – one of the world's highest national capitals.

Reference

The New Indian Express| India–MERCOSUR: Electronic Certificates of Origin

Sanjukta Parashar

Why in News?

SENIOR IPS officer Sanjukta Parasor has taken charge as Inspector General of the Central Reserve Police Force’s elite CoBRA unit.

• Sanjukta Parashar is the first woman to head CRPF’s CoBRA commando unit.
• She is called as ‘Iron Lady of Assam’, for her counter-insurgency work in the Northeast.
• CoBRA, or Commando Battalion for Resolute Action, is one of CRPF’s most specialised operational formations.
• The COBRA trained for long-range patrols, intelligence-based operations, ambushes, counter-ambushes and operations in areas where explosive devices a major threat.

Central Reserve Police Force (CRPF)

• It is India's largest central armed police force.
• It is operating under the Ministry of Home Affairs to maintain internal security and law and order.
• The Rapid Action Force (RAF) is a specialised unit under the CRPF.
• It was formed in October 1992, as a riot control force to deal with communal and related civil unrest.

Reference

The Indian Express| ‘Iron Lady of Assam’ Sanjukta Parasor

OPU-IVF Calf Born in Badri Cattle

Why in News?

A healthy female Badri calf has been successfully born using Ovum Pick-Up and In Vitro Fertilization (OPU-IVF) technology.

• The achievement was a collaboration between
  •  ICAR-National Dairy Research Institute (NDRI),
  • Karnal and GB Pant University of Agriculture and Technology, Uttarakhand.

About Badri Cattle

• Badri is an indigenous cattle breed of Uttarakhand.
• OPU-IVF can help in the rapid multiplication of elite Badri germplasm.
• It can support breed improvement and conservation of indigenous cattle.

OPU-IVF Technology

• Ovum Pick-Up (OPU) – Oocytes are collected from genetically superior donor cows using ultrasound-guided ovum pick-up.
• In Vitro Fertilization (IVF) – Collected oocytes are matured and fertilised outside the body using semen from a genetically superior bull.
• Embryo Transfer – The resulting embryos are cultured under controlled laboratory conditions.
• Embryos are then transferred into synchronised recipient cows.

Significance

• Enables production of multiple embryos from elite female animals.
• Accelerates multiplication of superior germplasm compared with conventional breeding.
• Supports genetic improvement and conservation of indigenous breeds.
• Can reduce the time required to multiply desirable genetic traits.

ICAR-NDRI and OPU-IVF

• ICAR-NDRI has previously used OPU-IVF technology to produce calves of Sahiwal and Gir breeds.
• The next phase includes transferring OPU-IVF and cloning-derived embryos into suitable Sahiwal, crossbred and Badri recipient cows.

Reference

The Indian Express| OPU-IVF Calf Born in Badri Cattle

FCNR and BOP Crisis

Why in news?

India’s balance of payments (BoP) received a significant boost in July 2026 as non-resident Indian (NRI) deposits under the FCNR(B) scheme.

• It surged to $33.5 billion, accounting for a substantial share of the country’s capital account surplus.
• The capital account surplus widened to $27.7 billion in July 2026, nearly eight times the $3.5 billion recorded in July 2025.
• A capital account surplus happens when inbound foreign investments, loans, and payments exceed outbound capital flows, meaning more money flows into a country than leaves it.
• Dollar denominated bank deposits from NRIs contributed to most of this.
• Without the RBI’s special scheme, NRI deposits would have remained at their usual monthly level of $1 billion.
• Combined with a $15 billion outflow in other bank capital, this would have pushed the capital account into a $4.8 billion deficit.
• When added to the $7 billion current account deficit, India’s overall BoP would have faced an $11.8 billion deficit, which would have marked the third month of deficit had it not been for FCNR(B) deposits.
• RBI’s special deposit scheme attracted $127 billion in NRI deposits, with more than 26% of the inflows recorded in July 2026.
• This helped keep the capital account in a $27.7 billion surplus and the overall BoP at a $20.8 billion surplus during the reporting month.
• FCNR(B) inflows and more of External Commercial Borrowings (ECB) inflows for a few more months kept the current month and the whole fiscal year comfortable for the balance of payment.
• Focussing on FDI is the crux and FII outflows should slow down and turn positive for the capital account to be in a self-sustaining surplus.

About Key terms

• The Balance of Payments (BOP) is a complete record of all money moving into and out of a country during a specific time, such as a year or a quarter.
• It tracks every economic deal made by people, businesses, and the government
• FCNR (B) scheme is a fixed deposit account for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) that allows them to save money in approved foreign currencies rather than Indian Rupees

Reference

The Hindu| FCNR and BOP Crisis

US Federal Rate Hike in 2026

Why in News?

The US Federal Reserve raised its benchmark interest rate for the first time since 2023 to tackle persistently high inflation, despite demands from President Trump for rate cuts.

• Persistent inflation – Inflation remained above the Fed’s desired level.
• Higher energy prices – Rising gas prices amid renewed US–Iran tensions added inflationary pressure.
• Global monetary tightening – Other central banks are also considering or implementing rate hikes.

Impact of Rate Hike

• Higher interest rates can:
  • Increase borrowing costs for mortgages, auto loans and credit cards.
  • Reduce consumer spending and private investment.
  • Lower aggregate demand and help control inflation.
  • Potentially slow economic growth.

Quantitative Easing (QE)

• Quantitative Easing is an unconventional monetary policy used mainly when conventional interest-rate policy has limited scope.
• The central bank creates money electronically to purchase long-term securities.
• Major assets include:
  • Government bonds
  • Mortgage-backed securities
  • Purchases are generally made from financial institutions.
• It aims to:
  • Increase liquidity/money supply.
  • Lower long-term interest rates.
  • Encourage borrowing and investment.
  • Support economic activity.

Reference

The Hindu| US Federal Rate Hike in 2026

Hague court on Kosovo's first prime minister

Why in News?

The Hague court convicts Kosovo’s former President Thaci of war crimes and sentences him to 25 years.

• He was convicted by a panel of judges at the Kosovo Specialist Chambers of murder, torture, cruel treatment and arbitrary detention.
• Thaci was a co-founder and commander of the Kosovo Liberation Army (KLA), a group that fought for independence.
• It was a European Union-backed court, rather than the International Criminal Court.
• Background
• The Kosovo War was an armed conflict in Kosovo that lasted from 28 February 1998 until 11 June 1999.
• It was fought between the forces of the Federal Republic of Yugoslavia (FRY), which controlled Kosovo before the war, and the Kosovo Albanian separatist militia known as the Kosovo Liberation Army (KLA).
• Most of the people who died in the war in Kosovo were ethnic Albanians.
• About 1 million ethnic Albanian Kosovars were driven from their homes.
• The conflict ended when the North Atlantic Treaty Organization (NATO) intervened by beginning air strikes in March 1999 which resulted in Yugoslav forces withdrawing from Kosovo.
• In 2008, Kosovo declared its independence from Serbia, a move that Serbia refuses to recognise.
• Ties between Kosovo and Serbia remain tense, despite years of EU-mediated negotiations supported by the United States.
• Thaci became Kosovo's first prime minister when it declared independence in 2008.

Reference

The Hindu| Hague court on Kosovo’s former President

Rattlesnake Blood

Why in News?

A breakthrough study revealed that specific combinations of toxin-blocking proteins naturally found in western diamondback rattlesnake (Crotalus atrox) blood serum can neutralize lethal viper venoms.

Rattlesnakes

• Rattlesnakes are pit vipers, a family of vipers with a heat-sensing pit organ between each nostril and eye.
• Habitat - Inhabits diverse biomes including arid deserts, scrublands, prairie grasslands, pine forests, and rocky hillsides.
• Geographic Range - Endemic to the Americas, spanning from southern Canada down through the continental United States, Mexico, and parts of Central and South America.

Venom resistance in snakes comes in two forms- either the targets in their bodies have evolved such that the venom doesn’t attack them, like in cobras, or they possess specific molecules in their bloodstream that serve as “toxin sponges”.

Scientific Discovery

• Evolutionary Immunity - Venomous snakes produce natural serum proteins called "toxin sponges" to protect themselves against self-envenomation or rival bites.
• Historical Context- In 1972, Japanese scientists discovered the first "toxin sponge",a protein named Fetuin-A in the Okinawa habu (Protobothrops flavoviridis), a pit viper endemic to Japan's Ryukyu Islands.
• Recent research revealed Fetuin-A belongs to a larger family of FETUA proteins.
• Targeting Metalloproteinases (SVMPs)
  • Snake Venom Metalloproteinases (SVMPs) are the most abundant and destructive toxins in viper venoms, responsible for severe hemorrhage, tissue necrosis, and internal bleeding.
  • Unlike standard antibodies, FETUA proteins act as natural inhibitors that bind directly to SVMPs to block their activity.
• Unexpected Efficacy- Combining multiple FETUA proteins completely blocked the overall lethality of rattlesnake venom, an unexpected result since rattlesnake venom contains 10 to 15 different toxin classes.
• Cross-Species Protection - The protein cocktail neutralized venoms from distantly related pit vipers, including:
  • Eastern Diamondback Rattlesnake (Crotalus adamanteus).
  • Malayan Pit Viper (Calloselasma rhodostoma).
  • Chinese Moccasin (Deinagkistrodon acutus).
  • Sochurek’s Saw-Scaled Viper (Echis carinatus sochureki—a true viper subspecies related to one of India's 'Big Four' venomous snakes).
• The proteins failed to protect against the Puff Adder (Bitis arietans), revealing limits to their cross-reactivity across true vipers.

Advantages Over Traditional Antivenoms

• 10x Higher Potency- Inhibits venom far more effectively per unit weight than conventional equine or ovine-derived antivenoms (CroFab).
• Recombinant Mass Production- Because FETUA proteins are genetically encoded, they can be produced in bioreactors via recombinant DNA technology—eliminating the need to maintain livestock or harvest live snake venom.

Significance for India

• The study tested efficacy by pre-mixing venom with the protein inhibitors before injection.
• This measures in vitro neutralizing capacity rather than treating an animal already envenomed (the real-world clinical scenario).
• Indian snakebite cases involve both vipers (hemotoxic) and elapids (neurotoxic cobras and kraits). FETUA proteins target SVMPs (vipers) and cannot neutralize neurotoxic elapid venoms.
• Rather than relying on rattlesnake-derived versions, Indian researchers recommend isolating native FETUA proteins from indigenous vipers and pairing them with targeted agents against elapid neurotoxins.

Reference

The Hindu | Rattlesnake blood

First Record of Ophiopogon japonicus in India

Why in News?

Botanists from the Wildlife Institute of India (WII), Dehradun, and the Uluberia Botanical Institute Herbarium documented the plant species Ophiopogon japonicus in the wild in India for the first time.

• The species was recorded at an elevation of 2,185 meters in a moist, temperate broadleaf forest floor in the West Kameng district of Arunachal Pradesh (Eastern Himalayas).
• Common Names - Dwarf Lilyturf, Mondo Grass, or Fountain Plant.
• Taxonomic Classification
  • Family- Asparagaceae (subfamily Nolinoideae; historically placed under Liliaceae).
  • Genus -The genus Ophiopogon comprises roughly 85 species worldwide; with this discovery, the number of species formally documented from India increases from 7 to 8.
• Morphological Features
  • An evergreen, clumping perennial herb with narrow, arching, grass-like leaves (15–30 cm long) featuring backwardly serrated (retro-serrulate) margins.
  • Produces short racemes of small white-to-pale-purple flowers that mature into metallic, bright cobalt-blue berry-like fleshy seeds.
  • Spreads via subterranean stolons and slender rhizomes with swollen, water-storing tuberous roots.
• Geographic Distribution -Native across East Asia (China, Japan, Korea, and Nepal), thriving across a wide altitudinal range of 200–2,800 meters.

Medicinal Value

• Traditional East Asian Medicine - The dried tuberous roots are known as Ophiopogonis Radix or Maidong in Traditional Chinese Medicine (TCM).
• Bioactive Properties- Rich in bioactive polysaccharides, saponins, and flavonoids.
• Therapeutic Applications- Exhibited anti-inflammatory, antioxidant, immunomodulatory, and cardioprotective properties; clinically used to treat chronic dry coughs, protect mucosal barriers, and support cardiovascular health.

Conservation Significance

• Soil Conservation- Its fibrous, stoloniferous root matrix effectively binds loose topsoil on steep Himalayan slopes, mitigating soil erosion and landslides from heavy monsoon runoff.
• Biodiversity Benchmar- Extends the known geographic distribution of East Asian flora into the Eastern Himalayas, highlighting the region as a critical, under-explored botanical hotspot.
• Local Vulnerability- The newly recorded population faces localized anthropogenic threats due to its proximity to roadside habitats vulnerable to highway construction, slope degradation, and habitat fragmentation.

Reference

Times of India | Ophiopogon japonicus

First Record of Schizopygopsis waddellii in India

Why in News?

Scientists recorded the Schizopygopsis waddellii in India for the first time, situated at an elevation of approximately 12,800 feet (~3,900 meters) in the border district of Tawang, Arunachal Pradesh.

• Taxonomic Group - Belongs to the family Cyprinidae (carps and minnows) and the subfamily Schizopygopsinae (specialized high-altitude snow trouts).
• Historical Distribution- Native to the trans-Himalayan streams and oligotrophic lacustrine ecosystems of the Tibetan and Chinese plateaus.
• Type Locality- Originally described by Charles Tate Regan in 1905 as Gymnocypris waddellii from Yamdrok Lake in Tibet.
• Integrative Identification- Species identification was confirmed using an integrative taxonomic framework combining morphological evaluation with mitochondrial DNA (mtDNA) sequencing.
• Hydrodynamic Morphology - Possesses an elongated, sub-cylindrical body with an olive-greyish dorsal surface and a silvery-white underside, suited for low-drag movement.
• Specialized Feeding Mechanism- Features a blunt snout, a subterminal mouth, and a hard, plate-like horny scraping structure around the lower lip used to scrape benthic microalgae and biofilms off submerged rocks.
• Locomotion & Sensory Adaptation - Equipped with a deeply forked caudal (tail) fin for rapid propulsion in cold, high-velocity waters, along with a complete lateral line system.
• Sexual Dimorphism- Males display visible nuptial tubercles/spines on their body surface and brighter coloration during breeding phases, whereas females lack these spines and exhibit muted coloration.
• Extreme Cold Tolerance -Genetically adapted to survive under freezing temperatures, seasonal surface ice cover, low dissolved oxygen, and nutrient-poor (oligotrophic) high-altitude conditions.

Significance for Biodiversity

• Expands National Freshwater Database- Formally adds a new high-altitude genus and species record to India's documented freshwater fish fauna. 
• Highlights Data Deficits- Demonstrates that high-altitude lacustrine ecosystems across the Eastern Himalayas remain significantly under-surveyed.
• Ecological Baseline- Provides a scientific baseline for monitoring fragile cold-water aquatic biodiversity, climate change impacts on alpine lakes, and transboundary freshwater conservation along the India-China border region.

Reference

The Print | Schizopygopsis waddellii

U.S - Russia Sanctions Bill & India

Why in News?

Recently, the U.S. House passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by 262–159, after Senate approval, sending it to President Trump.

Lindsey O. Graham Sanctioning Russia and Iran Act of 2026

• Objective – To intensify economic pressure on Russia, particularly its energy sector and mechanisms used to evade sanctions.
• Major Targets
  • Russian energy sector
  • Individuals and entities linked to Russia
  • “Shadow fleet” of tankers facilitating Russian oil shipments and sanctions evasion
  • Russian energy trade with third countries
  • Certain provisions also concern Iran
• 100% Tariff Provision – The Bill authorises the US President to impose tariffs of up to 100% on countries that continue purchasing Russian energy.

This provision does not automatically impose tariffs on India. Instead, it grants the President authority to levy tariffs if statutory conditions are satisfied.

• Countries at Risk of Tariffs – A country may face tariffs if:
  • It is among the top 5 importers by volume of Russian crude oil or natural gas during the preceding 12 months; and
  • It knowingly makes new purchases of Russian crude oil after the specified 30-day period following enactment.
• Countries identified among the top 5 facilitators of Russian oil sanctions evasion may also be targeted.
• Exemptions – Tariffs may not apply if a country:
  • Takes significant steps to reduce Russian natural-gas imports, or
  • Imports less than 15% of Russia’s total natural-gas exports.
• India’s Position – India has emphasised:
  • Energy security
  • Diversification of energy sources
  • Adaptation to changing market forces
  • Protection of trade and economic interests
• India has also conveyed to US officials that such sanctions could affect India–US bilateral relations and global energy markets.

Reference

The Hindu | Russia Sanctions Bill

Coal Freeze Marks India’s Clean-Energy Transition

Why in News?

Recent CREA’s analysis for Carbon Brief showed India’s coal power recorded zero growth between H1 2024–H1 2026, the first such stagnation in over 50 years.

• No Growth in Coal Power – This does not mean coal has been eliminated from India's electricity system.
• Coal remains a major source of electricity.
• India added approximately 8.5 GW of coal-fired capacity during this period.
• Approximately 43 GW of coal capacity was under construction as of the end of June 2026.
• The key change is that rising electricity demand was increasingly met by new non-fossil generation instead of additional coal generation.
• As renewable energy use grows, coal plants may need to operate more flexibly and reduce output when renewable generation is high.

.

• Solar Power as a Key Driver – It is now the leading source of new clean electricity generation.
• Solar generation rose by 44 TWh from the first half of 2024 to the first half of 2026.
• Solar capacity grew by approximately 77 GW over the same period.
• Installed solar capacity reached 164.59 GW as of 31 July 2026, up from 2.8 GW in 2014.
• Energy Storage – It is essential because renewable electricity is not always available during peak demand.
• India's National Electricity Plan projects the following storage requirements:
  • The plan estimates a storage requirement of 82 GWh by 2026–27.
  • By 2031–32, the projected storage requirement increases to 411 GWh.
• State-wise Transition – The clean-energy transition exhibits significant regional variation across India.
• Gujarat
  • Gujarat experienced the largest increase in clean-power generation.
  • The state also recorded the largest decline in fossil-fuel generation during H1 2024 to H1 2026.
• Rajasthan & Tamil Nadu
  • Both states reported major increases in clean energy generation.
  • They also recorded reductions in fossil-fuel generation.
• Maharashtra & Telangana
  • These states recorded some of the largest increases in electricity demand.
  • Additional clean generation almost matched this demand growth.

Reference

MC | India's Clean-Energy Push

Rethinking the Chemical ‘Arms Race’ Against Fungi

Why in News?

A Nature Communications study found Indian Candida auris isolates showing genetic mechanisms driving antifungal drug resistance.

• Key finding – Fungal pathogens can evade antifungals through gene mutations, gene amplification and cellular compensatory mechanisms, highlighting the growing challenge of antifungal resistance.

• Candida auris (C. auris) – It is an emerging yeast species that exhibits multidrug resistance.
• First reported in – 2009, Japan.
• This pathogen is capable of causing invasive bloodstream infections.
• C. auris poses a significant risk in hospital and intensive care unit (ICU) settings.
• Identification and treatment of C. auris can be challenging.
• Reported mortality rates among infected patients range from 30% to 40%.
• In contrast to many superficial fungal infections, C. auris is capable of causing systemic or invasive disease.

Fungi

Fungi (singular fungus) are eukaryotic, non-phototrophic living organisms with rigid cell walls that belong to the fungi kingdom. Fungi are neither plants nor animals, and belong to their own distinct kingdom, the fungi kingdom. 3 main types of fungi Fungi are divided into many different types, including molds, mushrooms, rusts, smuts, mildews and yeast. Of these, the three main types of fungi are mushrooms, molds and yeasts. Fungi typically thrive in warm and moist environments; however, the human body temperature of approximately 37°C has historically provided protection against many fungal species.

Fungal infection–mammalian selection hypothesis

Global warming leads to the selection of heat-tolerant fungi, which subsequently develop an increased ability to survive at mammalian body temperatures, thereby raising the potential for human infection.

Conventional Approach: Evolutionary Arms Race

• The typical cycle involves a drug targeting the fungus, which then evolves resistance.
• This leads to the development of stronger drugs, followed by further resistance.
• This results in a continuous escalation that resembles an evolutionary arms race.

Proposed Alternative Strategy

• The proposed approach shifts the focus to less critical pathways rather than targeting essential survival molecules.
• Aim – To reduce fungal pathogenicity instead of eliminating the fungus entirely.
• Advantage – It applies lower selection pressure, which may slow the evolution of resistance.

Reference

The Hindu | Rethinking the Chemical ‘Arms Race’ Against Fungi

US Space Warfare & Anti-Satellite (ASAT) Capabilities

Why in News?

Recently, the US has confirmed it deployed a space weapon in Earth's orbit, the first time it has acknowledged such offensive capabilities.

Anti-Satellite (ASAT) and Counter-Space Capabilities

• ASAT weapons and capabilities are intended to disrupt, disable, damage, or destroy satellites.
• Potential methods of counter-space operations include the following:
  • Kinetic attacks – Physically striking a satellite.
  • Electronic warfare – Jamming or disrupting satellite signals.
  • Cyber operations – Compromising satellite systems.
  • Directed-energy systems – Using technologies such as lasers.
  • Co-orbital systems – Manoeuvrable spacecraft that can approach or interfere with other satellites.

Outer Space Treaty, 1967

• The 1967 Outer Space Treaty (OST) prohibits the placement of the following categories of weapons:
  • Nuclear weapons
  • Other weapons of mass destruction (WMDs)
    in orbit around Earth or stationing them in outer space.
• However, the treaty does not establish a comprehensive ban on all categories of weapons or military operations in outer space.
• Consequently, states may develop certain counter-space or 4 anti-satellite capabilities without violating the treaty's specific restrictions on weapons of mass destruction.

United States Space Force

• It is the first new branch of the United States military established in over 70 years.
• Established in 2019.
• Objectives – To protect United States space assets and interests.
• Key assets include satellites that support the following functions:
  • Communication
  • Surveillance
  • Navigation
  • Military operations.

Reference

BBC | Anti-Satellite (ASAT) Capabilities

Deboning Technology for Milkfish

Why in News?

ICAR-CIBA, Chennai has unveiled a deboning technology for milkfish to overcome its numerous fine intermuscular bones and improve consumer acceptance and value addition.

New Deboning Technology

• Identified Challenge – The presence of numerous fine intermuscular bones complicates consumption and reduces overall consumer preference.
• Proposed Solution – The practical deboning technique developed by ICAR-CIBA effectively removes these bones and enables the following benefits:
  • Improved ease of consumption
  • Enhanced consumer acceptance
  • Development of ready-to-cook products
  • Production of value-added fish products
  • Increased commercial viability

• Economic Significance
• The average farming cost is approximately Rs.100 per kilogram.
• The farm-gate price is approximately Rs.200 per kilogram.
• Therefore, milkfish production presents significant potential for profitable diversification within brackishwater aquaculture.
• Milkfish aquaculture can generate opportunities in the following sectors:
  • Production of value-added seafood products
  • Fish processing industries
  • Entrepreneurial ventures
  • Development of seafood restaurants
  • Strengthening of farmer value chains

"Awareness‑cum‑Demonstration Programme on Milkfish Deboning & Value Addition held at ICAR‑CIBA, Muttukadu Experimental Station”

Reference

ICAR-CIBA | Deboning Technology to Popularize Milkfish

Mercury’s Contraction

Why in News?

A new study published in Geophysical Research Letters suggests that Mercury may have contracted by up to 23 km in diameter, around 30% more than previous estimates.

• Researchers conducted a comparison of the following elements:
  • Maps depicting contraction-related faults and associated geological features
  • Maps illustrating variations in surface roughness

• The analysis revealed that certain regions characterized by higher surface roughness exhibited fewer observable contraction features.
• The findings could help scientists understand Mercury's long-term thermal and geological evolution.
• Fresh observations from BepiColombo may provide further evidence.

BepiColombo Mission

• BepiColombo is a collaborative mission between the European Space Agency (ESA) and the Japan Aerospace Exploration Agency (JAXA) aimed at exploring Mercury.
• The mission includes two spacecraft.
  • Mercury Planetary Orbiter (MPO), developed by ESA.
  • Mercury Magnetospheric Orbiter (Mio), developed by JAXA.
• The spacecraft will study Mercury’s surface, interior, magnetosphere, magnetic field, and geological evolution.
• BepiColombo’s laser instrument is expected to provide data to help determine the extent of Mercury’s contraction as its interior cools.

Reference

India Today | Mercury’s Contraction