Current Affairs

All (4265)Current Affairs (4243)Mains Practice (77)Mains PYQs by Subjects (40)

Refurbished Medical Devices: Access–Safety Dilemma in India’s Health Sector

India is framing a policy to regulate refurbished medical devices to resolve conflicts between environmental and health regulators. Refurbished devices—previously used equipment restored to Original Equipment Manufacturer (OEM) standards—can expand affordable diagnostics but raise safety and domestic industry concerns.

About Refurbished Medical Devices

Refurbished medical devices are used equipment restored to certified safety and performance standards.
High-value examples include MRI scanners, CT scanners, PET-CT systems, and robotic surgery platforms.
They cost nearly 50–60% less than new equipment, improving affordability for hospitals in Tier-2 and Tier-3 cities.
Refurbishing extends device life cycles and supports the circular economy by reducing e-waste.

Current Regulatory Framework in India

The Medical Devices Rules (MDR), 2017 do not define or regulate refurbished devices.
Imports fall under Hazardous and Other Wastes Rules, 2016 (MoEFCC).
Import permitted for 38 items if residual life ≥7 years and warranty provided.
Regulatory conflict: MoEFCC allows imports but CDSCO often blocks approvals citing safety gaps.

Arguments Supporting Regulated Imports

Healthcare Access: Lower capital costs improve diagnostic availability in underserved regions.
Global Practice: Refurbished device regulation exists in the EU and USA under certified reprocessing norms.
Medical Training: Enables affordable acquisition of advanced equipment by medical colleges.
Sustainability: Reduces electronic waste and supports resource efficiency.

Concerns Against Refurbished Imports

Safety Risks: Unknown usage history and calibration inconsistencies may affect clinical reliability.
Industry Impact: Cheaper imports may undermine domestic manufacturing and PLI incentives.
Dumping Risk: India may become a destination for obsolete medical equipment.
Regulatory Gap: Lack of traceability and lifecycle data weakens post-market surveillance.

Policy Significance

A dedicated regulatory pathway under MDR can harmonise health safety standards (CDSCO) with environmental import rules (MoEFCC). Standardised refurbishment certification, device traceability, and performance validation can enable safe adoption while supporting domestic industry growth.

Way Forward

Define refurbished devices and create a separate approval pathway under MDR.
Mandate OEM-certified refurbishment and lifecycle tracking.
Establish performance testing and post-market surveillance protocols.
Align import policy with “Make in India” and PLI objectives.

Reforming Leadership in CAPFs: Proposed Law on IPS Deputation

Context: The Ministry of Home Affairs (MHA) has informed the Supreme Court that it is considering a new legal framework to regulate the deputation of Indian Police Service (IPS) officers to Central Armed Police Forces (CAPFs). The move follows contempt petitions alleging non-compliance with judicial directives aimed at improving career prospects for CAPF cadre officers.

Background and Current System

At present, recruitment rules reserve a significant proportion of senior leadership positions in CAPFs for IPS officers:

50% of Inspector General (IG) posts are reserved for IPS deputation.
20% of Deputy Inspector General (DIG) posts are also earmarked for IPS officers.

This system was initially intended to ensure inter-service coordination and operational expertise. However, CAPF officers argue that the fixed quota creates a structural ‘glass ceiling’, limiting their promotions despite extensive field experience.

Further, career disparities persist:

IPS officers typically reach senior leadership roles in 13–15 years.
CAPF cadre officers often take 20–25 years to reach comparable ranks.

Judicial Interventions

The Supreme Court has issued multiple rulings to address the issue:

Harananda Judgment (2019): Recognised CAPF officers as an Organised Group ‘A’ Service (OGAS), ensuring financial parity with other services.
Sanjay Prakash Verdict (2025): Directed the Centre to progressively reduce IPS deputation posts up to the IG rank within two years.
Review Petition Rejected (2025): The Court held that operational considerations cannot override legitimate career progression and equality.

These rulings underscore the need for administrative reform while balancing operational effectiveness.

Rationale for the Proposed Law

Institutional Clarity: A statutory framework can define clear rules on deputation, tenure, and promotions.
Cadre Empowerment: Enhances morale and motivation of CAPF officers.
Operational Efficiency: Promotes leadership continuity within specialised forces such as BSF, CRPF, and ITBP.
Litigation Reduction: Codified norms may reduce recurring legal disputes.

Concerns and Challenges

Security Coordination: IPS officers bring policing experience and inter-agency linkages.
Transition Management: Gradual implementation is needed to avoid disruption.
Balancing Expertise: Need to integrate both IPS and CAPF leadership strengths.

Way Forward

Develop a phased reduction roadmap of IPS quotas.
Introduce competency-based leadership selection.
Strengthen training and professionalisation of CAPF officers.
Create lateral mobility between state police and CAPFs.

The proposed reform reflects a broader shift towards professionalising India’s internal security architecture while ensuring equity in career progression.

NITI Aayog’s Methane Roadmap: Decarbonising India’s Waste Sector

Context: NITI Aayog’s report “Scenarios Towards Viksit Bharat and Net Zero – Sectoral Insights: Waste” identifies the waste sector as a methane-intensive emissions source. Although it contributes a small share of India’s overall greenhouse gas emissions, its climate impact is significant due to methane’s high warming potential. The report outlines strategies to decarbonise waste systems and support India’s long-term Net Zero pathway.

Waste Sector Emissions Profile

The waste sector contributes only about 2.56% of India’s total GHG emissions, yet it remains disproportionately damaging because of methane dominance. Methane (CH₄) has a global warming potential nearly 25 times higher than CO₂, making its control crucial for near-term climate gains.

A key finding is that nearly 74% of waste-sector emissions originate from wastewater systems, highlighting gaps in sewage collection, treatment infrastructure, and anaerobic decomposition management.

Under the Net Zero Scenario (NZS), waste-sector emissions are projected to decline by around 95.9%, reaching only 10.9 MtCO₂e by 2070, provided aggressive methane mitigation and circular waste management are implemented.

Strategic Pillars for Waste Sector Decarbonisation

NITI Aayog proposes multiple transformation pillars:

1. Universal Methane Recovery

Achieve 100% methane recovery by 2040, especially from industrial wastewater. Sewage treatment should prioritise anaerobic processes integrated with energy recovery systems to prevent methane leakages.

2. Decentralised Circularity

Biodegradable waste should be processed through bio-methanation and Bio-CNG production, stabilising per capita waste generation while converting waste into clean fuel.

3. Wastewater Reuse Expansion

Sewerage coverage should expand towards 85% national coverage, along with large-scale reuse of treated wastewater in agriculture, industry, and urban services.

4. Legacy Waste Remediation

India must accelerate scientific closure of open dumpsites and shift towards engineered sanitary landfills, reducing methane release from decaying organic waste.

5. IoT-Based Monitoring

A unified national waste-data architecture using IoT-enabled sensors can support real-time monitoring, transparency, and regulatory compliance.

Aerobic vs Anaerobic Treatment

Aerobic treatment uses oxygen and produces mainly CO₂, with relatively lower methane emissions.
Anaerobic treatment generates methane, but if methane is captured, it enables biogas recovery and higher energy efficiency.
Thus, anaerobic systems are preferable only when paired with strict methane capture mechanisms.

Key Challenges

Weak segregation and only 75–78% collection efficiency
Sewage generation of 72,000 MLD, but treatment capacity only 31,000 MLD
Presence of 3,000+ dumpsites, continuously emitting methane
Infrastructure gaps in STPs, landfills, and scientific processing systems

Way Forward

NITI Aayog recommends methane recovery expansion through schemes like SATAT, improving segregation via SBM (Urban) 2.0, scaling STPs under AMRUT, and strengthening rural circular economy models through GOBAR-dhan.

Conclusion

Waste sector decarbonisation is a high-impact climate strategy for India. Methane mitigation through wastewater reform, circular bioenergy systems, and scientific dumpsite remediation can deliver rapid emission cuts and support the Net Zero vision.

RBI Draft Guidelines for Loan Recovery Agents: Strengthening Borrower Protection

Context: As reported by The Hindu, the Reserve Bank of India (RBI) has issued comprehensive draft guidelines to regulate the conduct of bank employees and loan recovery agents. These directions aim to curb coercive recovery practices, safeguard borrower dignity, and strengthen ethical standards in credit recovery. The guidelines will apply to all Commercial Banks, including Regional Rural Banks (RRBs) and Small Finance Banks, and are proposed to come into force from 1 July 2026.

Key Highlights of the Draft Guidelines

Civil and Ethical Conduct
Banks and their agents must interact with borrowers strictly in a civil manner. Harassment, abusive language, intimidation, or threats are explicitly prohibited, reinforcing fair debt collection norms.
Contact Restrictions
Recovery-related calls or visits are permitted only between 8:00 AM and 7:00 PM. Agents are barred from contacting borrowers during sensitive personal occasions such as bereavement, weddings, or medical emergencies.
Authorisation and Transparency
Before assigning a recovery agent, banks must inform borrowers in writing. Agents must carry a valid authorisation letter and identity card during visits, ensuring transparency and accountability.
Agent Certification and Training
All recovery agents must undergo ethical debt collection training and obtain certification from the Indian Institute of Banking and Finance (IIBF), professionalising recovery practices.
Privacy Protection
The guidelines reinforce the borrower’s Right to Privacy. Agents may communicate only with the borrower or guarantor, and not with family members, neighbours, or workplace colleagues.
Grievance Redressal First
Banks can refer recovery cases to agents only after resolving pending borrower grievances, preventing premature or unfair recovery action.
Incentive Structure Reform
Banks must redesign incentive mechanisms to ensure they do not encourage aggressive or unethical recovery behaviour.

Significance

Borrower Dignity: Curtails harassment and coercion in loan recovery.
Consumer Protection: Aligns banking practices with constitutional privacy principles.
Institutional Accountability: Shifts responsibility squarely onto banks for agent conduct.
Ethical Credit Culture: Encourages trust-based lending and repayment systems.

UAE–India Corridor: A New Axis of Trade, Capital and Technology

Context: The UAE–India corridor is emerging as a high-impact economic partnership driven by aligned policies, cross-border investments, and technology collaboration. It reflects how India’s Gulf engagement is evolving from an energy-focused relationship to a strategic growth corridor connecting Asia with Africa, West Asia, and Eurasia.

India–UAE Upswing

India and the UAE have witnessed a major acceleration in economic ties after the Comprehensive Economic Partnership Agreement (CEPA), 2022. The CEPA target of $100 billion bilateral trade by 2030 was achieved five years early, leading both sides to set a new goal of $200 billion trade by 2032.

The partnership is also diversifying rapidly:

Non-oil trade rose by 20% last year to $65 billion, reflecting reduced dependence on hydrocarbons.
Since 2000, the UAE invested $22 billion in India, while India invested $16 billion in the UAE.

The corridor is reinforced by strong people-to-people ties, with nearly 5 million Indians living in the UAE and enabling over 1,200 weekly flights, making it one of the world’s most connected migration and business routes.

Strategic Significance of the Corridor

The corridor is being reshaped by advanced sectors such as manufacturing, logistics, finance, and technology. Major projects include:

Reliance–TA’ZIZ $2 billion low-carbon chemicals initiative
Ashok Leyland’s shift of electric bus production to the UAE
L&T’s Abu Dhabi solar-plus-storage expansion

Financial integration is also deepening:

Emirates NBD’s acquisition of RBL Bank marks the largest FDI in Indian banking.
DP World’s additional $5 billion commitment to Indian infrastructure strengthens port-led connectivity.

Further, Bharat Mart is envisioned as a regional export platform for Africa, West Asia and Eurasia, potentially doubling India’s exports to these regions.

Key Pillars of India–UAE Cooperation

Policy Architecture: CEPA removed nearly 90% tariffs, and the 2024 Bilateral Investment Treaty strengthened investor confidence.
Technology Partnership: Collaboration on AI, data centres, and digital infrastructure, with India set to host the Global South AI Summit 2026.
Energy Security: ADNOC signed multi-billion-dollar LNG agreements with Indian Oil and HPCL.
Investment Depth: Mubadala has deployed $4 billion in India’s health, renewables and technology sectors, while the Abu Dhabi Investment Authority has a presence in GIFT City.

Challenges

Regional geopolitical instability may disrupt investment flows.
Regulatory differences in taxation, labour laws and compliance create friction.
AI and advanced manufacturing require strong talent pipelines.
Overdependence on a single corridor may increase vulnerability to external shocks.

Way Forward

India and the UAE should expand joint skill development, diversify investments into healthcare and renewables, and strengthen AI-driven innovation ecosystems to make the corridor a model for Global South cooperation.

RBI Expands Collateral-Free Credit: A Boost for India’s MSME Growth Engine

Context: To strengthen credit flow to small businesses, the Reserve Bank of India (RBI) has proposed raising the ceiling for collateral-free bank loans to MSMEs. Alongside this, RBI has also proposed permitting bank lending to Real Estate Investment Trusts (REITs) under strict prudential safeguards. The move is aimed at deepening formal credit access while maintaining financial stability.

What is the New Collateral-Free Loan Proposal?

The RBI has proposed doubling the collateral-free loan limit for MSMEs from ₹10 lakh to ₹20 lakh. This is a significant reform because many micro and small enterprises lack land, property, or fixed assets that banks usually demand as collateral.

The proposal encourages banks to shift towards cash-flow based lending, where credit decisions are made using:

business turnover,
repayment behaviour,
digital transaction history, and
viability of the enterprise.

This approach reduces overdependence on asset-backed lending and improves inclusion of first-generation entrepreneurs.

The reform also aligns with Priority Sector Lending (PSL) norms and complements credit guarantee frameworks, which reduce bank risk while improving MSME access to affordable loans.

Why This Matters for MSMEs

MSMEs are often described as the backbone of the Indian economy but face a major financing bottleneck.

India’s MSME sector faces an estimated credit gap of ₹20–25 lakh crore, largely due to collateral constraints.
Around 40–45% of micro enterprises depend on informal lenders, leading to high interest costs and financial vulnerability.
MSMEs employ around 11 crore people, meaning easier credit directly supports wage stability, expansion, and job creation.

Thus, expanding collateral-free lending can promote formalisation, productivity growth, and resilience of small firms.

Status of MSMEs in India

India has about 6.3 crore MSMEs, and nearly 99% are micro enterprises (Udyam data).
They contribute nearly 30% to GDP and around 45% to manufacturing output.
MSMEs account for about 43–45% of India’s merchandise exports, making them essential for global competitiveness.

Other Measure: Bank Lending to REITs

RBI has also proposed allowing banks to lend to REITs, enabling regulated credit flow into income-generating commercial real estate. This could strengthen infrastructure financing and support real estate formalisation.

However, to avoid systemic risk, RBI proposes prudential controls such as:

exposure limits,
risk weights,
due diligence norms, and
concentration safeguards.

Conclusion

By expanding collateral-free lending and promoting cash-flow based assessment, RBI’s proposal can significantly improve MSME credit access, reduce dependence on informal finance, and support employment growth.

If supported by strong monitoring and credit discipline, it can become a key driver of inclusive industrial expansion.

Whose Memory Is the Internet? The Debate over the Right to Be Forgotten

Context: The Supreme Court of India is examining whether the Right to Be Forgotten (RTBF) can be invoked to remove accurate online news reports. The case squarely pits the Right to Privacy under Article 21 against Freedom of the Press under Article 19(1)(a), raising foundational questions about memory, reputation, and public interest in the digital age.

What is the Right to Be Forgotten (RTBF)?

RTBF allows individuals to seek removal or delisting of personal information from public platforms when it is outdated, irrelevant, excessive, or harmful. The Supreme Court recognised privacy—including informational self-determination—as a fundamental right in K.S. Puttaswamy (2017), from which RTBF flows. Internationally, it mirrors the EU’s “Right to Erasure” under GDPR.

However, the Court has consistently held that RTBF is not absolute and must yield when disclosure serves a larger public interest such as public safety, transparency, or historical record.

India currently lacks a dedicated RTBF statute; disputes are therefore adjudicated case-by-case. Although the DPDP Act, 2023 (Section 12) provides a “Right to Erasure,” its application to news archives and public records remains legally unsettled, and the IT Rules, 2021 do not empower intermediaries to resolve such complex normative claims.

Why RTBF in News Is Being Demanded

Reformative Justice: Permanent digital footprints can punish individuals indefinitely—even after acquittal—hindering rehabilitation.
Dignity & Autonomy: Puttaswamy affirms citizens’ control over personal data and protection from unnecessary public exposure.
Algorithmic Harm: Search rankings can create biased “digital profiles” affecting jobs, loans, or social standing.
Power Imbalance: Individuals often lack the means to challenge sensational or context-stripped reporting amplified by platforms.

Why Blanket RTBF Is Problematic

Press Freedom: Compelling deletion of factually correct reporting threatens Article 19(1)(a) and investigative journalism.
Integrity of Public Record: Erasing archives risks “memory laundering,” distorting history and accountability.
Chilling Effect: Fear of future takedowns may deter reporting on crime, corruption, or public wrongdoing.
Technological Limits: True erasure is nearly impossible due to mirrors and archives; suppression can trigger the Streisand Effect—greater attention to the very content sought to be hidden.

Emerging Middle Path (Likely Judicial Approach)

Delisting over Deletion: Remove search-engine visibility while preserving archival records.
Contextualisation: Require updates noting acquittals, settlements, or changed legal status.
Balancing Test: Weigh time elapsed, role of the person (public figure vs private citizen), nature of offence, and current public interest.
Independent Oversight: Empower the Data Protection Board of India (DPBI) to frame sector-specific norms for media–privacy conflicts.

Why This Matters for India

As India’s digital footprint deepens, RTBF will shape reputation rights, media freedom, platform governance, and historical memory.

The Court’s ruling will likely set a precedent for how democracies reconcile privacy with transparency in the age of permanent digital archives.

Way Forward: India needs clear statutory standards—defining when news can be delisted, how long records should remain prominent, and who adjudicates disputes—to avoid ad-hoc decisions while protecting both privacy and press freedom.

MoSPI to Introduce New Consumer Price Index (CPI) Series

Context: The Ministry of Statistics and Programme Implementation (MoSPI) is revising India’s Consumer Price Index (CPI) series to better reflect evolving consumption patterns, technological shifts, and changes in household expenditure. The revision, reported by The Economic Times, marks a significant methodological update aimed at improving the accuracy and relevance of inflation measurement.

Key Changes in the New CPI Series

Revised Base Year

The CPI base year will shift from 2012 to 2024, aligning the index with current consumption behaviour and price structures.

Rebalanced Weights

Food and beverages weight declines sharply from 45.86% to ~36.75%, reducing food dominance in headline inflation.
Housing, water, electricity & gas weight rises from 16.91% to 17.66%.
Transport and communication weight increases significantly from 8.59% to 12.41%, reflecting mobility and digital connectivity costs.

Public Distribution System (PDS) Treatment

Free food grains provided under schemes such as PMGKAY are assigned zero weight, as they do not involve out-of-pocket expenditure.

Expanded Consumption Basket

Number of weighted items increases from 299 to 358.
New inclusions: smartphones, OTT subscriptions, international air travel.
Exclusions: obsolete goods like VCRs and audio cassettes.

Digital Price Collection

For the first time, 12 “Online Markets” in major cities will track prices directly from e-commerce platforms, improving coverage of digital transactions.

Improved Housing Measurement

Rural housing rents are included for the first time.
Employer-provided housing is excluded to avoid price distortion.

Greater Rural Representation

Rural sector weight in CPI-Combined increases from 53.52% to 55.4%, acknowledging India’s demographic structure.

Global Classification Alignment

The CPI structure shifts from 6 to 12 Divisions, fully aligning with UN COICOP 2018 (Classification of Individual Consumption According to Purpose).

Significance of the New CPI Series

Lower Inflation Volatility: Reduced food weight limits sensitivity to monsoon shocks and vegetable price spikes.
Contemporary Basket: Inclusion of digital services captures modern consumption trends.
Accurate Living Costs: Rural rent inclusion improves housing inflation measurement.
Global Comparability: COICOP alignment enhances international credibility of India’s inflation data.
Engel’s Law in Action: Declining food share reflects rising incomes and diversification of spending.

About Consumer Price Index (CPI)

CPI measures changes in retail prices paid by households for a representative basket.
NSO publishes CPI-Rural, CPI-Urban, and CPI-Combined.
Labour Bureau publishes CPI-IW, CPI-AL, and CPI-RL for wage indexation.
Calculated using the Modified Laspeyres formula.
Released monthly; perishables tracked weekly.
CPI-Combined is India’s official inflation anchor under the RBI’s Flexible Inflation Targeting (FIT) framework.

Coking Coal Goes Strategic: Securing India’s Steel Backbone

Context: The Government of India has notified coking coal as a Critical and Strategic Mineral under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). The move is aimed at reducing import dependence, strengthening the domestic steel ecosystem, and supporting the long-term goals of Aatmanirbhar Bharat and Viksit Bharat @2047.

Why Coking Coal Matters

Coking coal is a premium grade of bituminous coal that transforms into coke when heated in the absence of air. Coke is indispensable in blast furnaces, acting both as a fuel and a reducing agent in iron-making. Unlike thermal coal, coking coal has high carbon content, low moisture, and strong caking properties, which enable it to form a hard, porous mass essential for steel production.

India’s geological endowment of coking coal is limited and geographically concentrated. Over 90% of known reserves lie in the Jharia coalfield of Jharkhand, with smaller deposits in West Bengal and Madhya Pradesh.

Despite being the world’s second-largest steel producer, India imports around 85% of its coking coal requirement, primarily from Australia, Russia, and the United States—making the steel sector vulnerable to global supply shocks and price volatility.

What Does ‘Critical & Strategic Mineral’ Status Change?

Critical minerals are those essential for economic development and national security but exposed to supply-chain risks. The MMDR Act creates a special legal category of “Critical and Strategic Minerals”, for which the Central Government has exclusive authority to auction mining leases.

By bringing coking coal into this category:

Policy priority is accorded to domestic exploration and production.
Faster clearances and coordinated planning become possible.
Supply security for steel—an input sector for infrastructure, defence, and manufacturing—is strengthened.

This aligns with Mission Coking Coal 2030, launched in 2021, which targets 140 million tonnes of domestic coking coal production by 2030 through beneficiation, underground mining, and technology upgradation.

Link with India’s Critical Minerals Strategy

In 2023, India identified 30 critical minerals such as lithium, cobalt, nickel, graphite, copper, and rare earth elements. These are vital for sunrise sectors including electric vehicles, semiconductors, renewable energy, and defence systems. The National Critical Mineral Mission (NCMM) 2025 seeks to secure these minerals through domestic mining, recycling, and overseas acquisitions.

Notifying coking coal as critical and strategic reflects a broader shift—from viewing minerals as raw commodities to treating them as strategic assets essential for industrial sovereignty.

Conclusion

The strategic classification of coking coal recognises a hard reality: steel remains the backbone of India’s infrastructure and industrial growth, and steel security depends on assured coking coal supply.

While green steel technologies are evolving, coking coal will remain indispensable in the medium term. The new status under the MMDR Act is thus a pragmatic step to insulate India’s growth ambitions from external vulnerabilities while preparing for a gradual transition to cleaner industrial pathways.

Easing Clinical Research: India Updates Drug Trial Rules

Context: The Ministry of Health and Family Welfare (MoHFW) has notified amendments to the New Drugs and Clinical Trials (NDCT) Rules, 2019 to reduce procedural burdens and promote research-driven pharmaceutical growth. The reforms aim to align India’s regulatory regime with global best practices and enhance the country’s attractiveness as a clinical research hub.

What is CPI?

Consumer Price Index (CPI) measures short-term changes in retail prices paid by households.
Published by the National Statistical Office (NSO) as CPI-Rural, CPI-Urban, and CPI-Combined.
Labour Bureau releases CPI-IW, CPI-AL, CPI-RL for wage indexation.
Uses the Modified Laspeyres formula with fixed base-year weights.
CPI-Combined anchors India’s Flexible Inflation Targeting (FIT) under the RBI Act, 1934.

(CPI context is relevant as pharmaceutical pricing and affordability intersect with inflation trends.)

Key Amendments to NDCT Rules

1. Test Licence Waiver

Small-quantity drug manufacturing for research no longer needs a mandatory test licence.
Only prior online intimation to CDSCO is required.
High-risk substances (cytotoxic, narcotic, psychotropic drugs) still need licences.

2. Reduced Timelines

Processing time for remaining test licence categories cut from 90 days → 45 days.

3. BA/BE Reform

Bioavailability (BA) and Bioequivalence (BE) studies for low-risk drugs can begin through intimation instead of prior approval.

About NDCT Rules, 2019

Replaced older provisions under the Drugs and Cosmetics Rules, 1945.
Administered by Central Drugs Standard Control Organisation (CDSCO) under the Drugs Controller General of India.
A drug is treated as “new” for four years after first approval.

Significance

Time Efficiency: Clinical development timelines may shrink by ~90 days.
Reduced Workload: CDSCO handles 30,000+ test licences and 4,000+ BA/BE applications annually; reforms ease this load.
Generic Sector Boost: Faster BA/BE initiation strengthens India’s global generic competitiveness.
Better Risk Focus: Regulators can focus more on high-risk oversight and pharmacovigilance.
Global Alignment: Moves toward risk-based regulation similar to US FDA/EU frameworks.

RBI’s Digital Fraud Relief Plan: New Safety Net for Small-Value Victims

Context: The Reserve Bank of India (RBI) has proposed a compensation framework for victims of small-value digital frauds, aiming to restore trust in digital payments and strengthen consumer protection. The proposal focuses on fraud cases up to ₹50,000, which account for nearly 65% of all digital fraud incidents.

Key Features of the Proposed Compensation Framework

The scheme provides compensation for eligible victims of digital fraud up to ₹25,000, or 85% of the loss, whichever is lower. This design ensures meaningful relief while preventing misuse.

A major reform is the inclusion of cases involving inadvertent credential sharing, provided the act was not mala fide. Earlier liability rules often excluded compensation when negligence was involved. This reflects a more citizen-friendly approach, recognising that fraudsters increasingly use deception-based tactics such as phishing and fake customer care calls.

To discourage habitual carelessness, the relief will be available only once per customer, creating a balance between protection and accountability.

Liability Sharing: “Skin in the Game” Model

The proposed framework distributes the financial burden among stakeholders:

Customer: Bears 15% of the loss as a deductible, encouraging continued vigilance.
Bank: Contributes a proposed ~15%, incentivising stronger cybersecurity and fraud detection systems.
RBI: Covers the remaining ~70% through a central fund, subject to the compensation cap.

This approach ensures shared responsibility rather than shifting the entire cost to one entity.

Funding through the Depositor Education and Awareness (DEA) Fund

Compensation payouts will be financed through the Depositor Education and Awareness (DEA) Fund, which currently holds a surplus of around ₹85,000 crore.

About the DEA Fund

Established by RBI in 2014 under Section 26A of the Banking Regulation Act, 1949.
Banks transfer balances of unclaimed/inoperative accounts for 10+ years into the fund.
Depositors retain the right to reclaim their money with interest; transfer does not extinguish ownership.
RBI pays interest on the transferred amount, which banks must pass to depositors upon settlement.
The fund is primarily meant for depositor awareness programmes, but is now proposed to support fraud compensation.

RBI has also launched the UDGAM portal, enabling citizens to search unclaimed deposits across banks, improving transparency.

Significance of the Proposal

The framework can strengthen confidence in digital transactions, particularly for small users, senior citizens, and first-time digital adopters. It also aligns with India’s push for a secure digital economy under UPI-based payments and fintech expansion.

Conclusion

RBI’s proposed compensation mechanism is a major step towards consumer-centric digital governance. If implemented effectively, it can reduce financial distress from small frauds while promoting stronger banking security and responsible user behaviour.

ACC PLI Scheme Performance: Ambitions vs Outcomes

Context: As reported by The Hindu, the Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) Scheme, launched in October 2021, was envisioned as a cornerstone of India’s electric mobility and energy storage strategy. However, against a target of 50 GWh battery manufacturing capacity by 2025, only 1.4 GWh has been commissioned so far, indicating significant implementation bottlenecks.

About the ACC PLI Scheme

Objective: Develop a domestic advanced battery ecosystem to reduce near-total import dependence and support EV adoption and renewable energy integration.
Financial Outlay: ₹18,100 crore.
Incentive Structure: Performance-linked subsidy of up to ₹2,000 per kWh, aimed at attracting large private investments into battery gigafactories.
Technology-Agnostic Design: Covers lithium-ion, lithium iron phosphate (LFP), sodium-ion, and other emerging chemistries.
Domestic Value Addition (DVA):
- 25% within 2 years
- 60% by the fifth year

Advanced Chemistry Cells (ACC) are next-generation batteries that store electrical energy chemically and discharge it on demand, forming the backbone of EVs and grid-scale storage.

Current Performance Snapshot

Installed Capacity: 1.4 GWh commissioned — only 2.8% of the 50 GWh target.
Project Delays:
- 8.6 GWh under development with major delays.
- 20 GWh shows no visible progress.
Employment Generation: 1,118 jobs, far below the estimated 1.03 million potential jobs.
Investment Mobilised: Only 25.58% of the targeted capital inflows achieved.
Incentives Disbursed: ₹0, as milestone conditions remain unmet.

Reasons for Underperformance

Unrealistic Timelines: A two-year gestation period is misaligned with global gigafactory setup cycles of 4–6 years, delaying over 90% of capacity.
Raw Material Bottlenecks: India processes <1% of global lithium and lacks cobalt/nickel refining capacity, constraining DVA compliance.
Experience Gap: Established players like Exide and Amara Raja were excluded; all awarded capacity went to new entrants.
Skill Deficit: Battery manufacturing skills remain underdeveloped across most projects.
Visa & Expertise Delays: Shortage of foreign technical specialists slowed plant commissioning.

Implications for India

EV Affordability: Batteries account for 35–45% of EV cost; delayed localisation keeps prices high.
Import Dependence: Nearly 100% reliance on imported advanced battery cells continues.
Clean Energy Transition: Storage delays affect renewable integration, jeopardising the 500 GW non-fossil target by 2030.
Strategic Vulnerability: With China controlling over 75% of global battery capacity, India faces supply-chain and geopolitical risks.

Way Forward

Timeline Realism: Align commissioning schedules with global norms; adopt phased rollouts (as in the India Semiconductor Mission).
Mineral Security: Expand refining under the Critical Minerals Mission and overseas acquisitions (e.g., KABIL in Argentina).
Experience Weightage: Modify PLI criteria to reward proven manufacturers.
Technology Transfer: Fast-track expert visas, JVs, and licensing with global leaders.
Demand Linkage: Integrate ACC PLI with EV subsidies (PM E-Drive) and renewable storage tenders for assured offtake.