UPSC current affairs · Monday

Current Affairs, 31 August 2026

11 issues picked from 52 PIB releases · about 2 minutes each · written by UPSC Grade, each fact checked against its PIB release or by a second model

How to readRead “Why in news” and “What it is” for every issue. Open For Prelims or For Mains for the exam you’re preparing for, then Test yourself at the foot of each card. Half the news questions in Prelims are answered from background, not the news itself.

In 60 seconds

Semicon 2.0 (India Semiconductor Mission). Semicon 2.0 notified with six pillars covering design, fabs, packaging, materials, R&D and talent.
Sone River water sharing and Inter-State Council. Bihar and Jharkhand sign MoU on Sone water, ending a 25-year dispute via Inter-State Council.
National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS). NM-ICPS, run by DST, has 25 hubs and 4 translation parks driving indigenous CPS technologies.
India-MERCOSUR Preferential Trade Agreement. India and Brazil review India-MERCOSUR talks, target USD 30 billion bilateral trade by 2030.
India's GDP growth and national income estimates. Real GDP grew 7.8% in Q1 2026-27; nominal GDP grew 10.3%.
UPI and Merchant Discount Rate (MDR) framework. UPI payments extend to Uzbekistan through a NIPL–HUMO tie-up on the UZQR code.
Thermoelectric conversion and wave-like heat transport. Doped scandium nitride crystal shows huge Seebeck voltage, enabling ultrasensitive temperature and photon sensors.
Quantum Key Distribution and Post-Quantum Cryptography. C-DOT launches 14 indigenous quantum-safe communication products using QKD and post-quantum cryptography.
Jal Jeevan Mission and Jal Arpan. Jal Shakti hosts first Centre-State Departmental Summit on water, including Jal Jeevan Mission 2.0, on 1-2 September.
IMEI Tampering and Telecommunications Act, 2023. DoT warns IMEI tampering and SIM misuse are non-bailable offences under Telecommunications Act, 2023.
Critical and Strategic Mineral Blocks auctions. Mines Ministry promotes 8th critical mineral auction tranche in Raipur; 20 blocks, five in Chhattisgarh.

Scheme

Semicon 2.0 (India Semiconductor Mission)

GS3 Science and technologyGS3 EconomyPrelims and Mains

Why in news: On 31 August 2026, Union Minister Ashwini Vaishnaw announced that notifications for all six pillars of the Semicon 2.0 scheme have been issued. The scheme extends support across the semiconductor value chain.
What it is: The India Semiconductor Mission (ISM) is the programme under MeitY to build a domestic chip ecosystem. ISM 1.0 began in 2021 and backed fabs, ATMP/OSAT units and chip design. ISM 2.0 is the next phase and widens support to materials, machines, research and talent.

Six pillars of ISM 2.0: Design; Machines and Materials; more fabs; ATMP/OSAT industry; R&D; and Talent Development.
ISM 1.0 timeline: Planned as a six-year programme, it met its objectives in four years.
Plants under ISM 1.0: Twelve plants were approved under ISM 1.0, and five have started commercial production.
Expected design companies: The Minister estimated at least 200 chip design companies would emerge under ISM 2.0.
Nodal ministry: ISM sits under the Ministry of Electronics and Information Technology.
Approval and outlay: The Union Cabinet approved Semicon 2.0 on 15 July 2026 with an outlay of Rs 1,27,500 crore.
Semicon 1.0 outlay: Semicon 1.0 was approved in December 2021 with an outlay of Rs 76,000 crore.
Semicon 1.0 units: Twelve units were approved: one silicon fab, one silicon carbide fab, one GaN Micro LED display fab and nine ATMP/OSAT units. Five have begun commercial production.
Concentration of production: Taiwan produces over 60% of global chips and nearly 90% of advanced chips.
Six pillars: Design; Machines and Materials; more Fabs; ATMP/OSAT; R&D; Talent Development.
Nodal agency: ISM invites applications, appraises them, recommends applicants and oversees implementation.
C-DAC role: ISM may implement the design and deployment categories with C-DAC's help.
Duration: Projects generally run up to six years. Applications stay open initially for three years.
Funding and review: MeitY makes budget provisions; a mid-term assessment follows three years of implementation.
Design incentive: Pillar 1 includes a Deployment-Linked Incentive (DLI) for chips, IPs and SoCs.
Outlay: Semicon 2.0 has a total budget outlay of Rs.1,27,500 crore.
ISM 1.0 manufacturing: Twelve manufacturing units were approved with over Rs.1.64 lakh crore investment: one silicon fab, one SiC fab, one GaN Micro LED display fab and nine packaging units.
Commercial production: Micron, Kaynes and CG Semi have started commercial production.
Projects approved: Two new projects, both in Gujarat, were cleared. One is a compound semiconductor fab with ATMP at Dholera; the other is an OSAT unit at Surat.
Crystal Matrix Limited, Dholera: It will make Mini/Micro-LED display modules and offer GaN foundry services, including epitaxy on 6-inch wafers.
Suchi Semicon, Surat: An OSAT facility for discrete semiconductors, with capacity of 1033.20 million chips a year.
ISM tally: Approved projects under ISM now total 12, with cumulative investment of about Rs 1.64 lakh crore.
Design support: Government design infrastructure support covers 315 academic institutions and 104 start-ups.
OSAT meaning: OSAT stands for Outsourced Semiconductor Assembly and Test: firms that package and test chips made by fabs.
Talent target: The 10-year target is to train 85,000 engineers in semiconductor design, and the minister says good progress was made in four years.
EDA tool access: EDA tools backed by firms such as Synopsys, Cadence and Siemens are available in 315 academic institutions.
Fabrication of student chips: Student-designed chips are fabricated and tested at the Semiconductor Laboratory (SCL), Mohali.
Expansion under Semicon 2.0: The programme will grow from 315 to 500 universities.
EDA tools: 350 universities have been given access to EDA tools, used by 65 thousand engineers.
ISM 2.0 aims: It targets production of equipment and materials, design of full-stack Indian IP, and stronger supply chains.

Don’t confuse with Fab vs fabless: A fab makes chips on wafers. A fabless firm only designs chips and uses a foundry to make them.

Don’t confuse with ATMP vs OSAT: ATMP is Assembly, Testing, Marking and Packaging; OSAT is Outsourced Semiconductor Assembly and Test. Both handle the post-fabrication stage.

Don’t confuse with Fab vs ATMP/OSAT: A fab makes the chip on wafers; ATMP/OSAT packages and tests the finished chip.

Don’t confuse with ISM 1.0 vs Semicon 2.0: ISM 1.0 (2021) backed fabs, packaging and design. Semicon 2.0 adds machines, materials, advanced R&D and deeper talent building.

Don’t confuse with Compound vs silicon semiconductors: Compound semiconductors like GaN combine elements and suit power, RF and optoelectronics. Silicon is a single-element material used in most logic chips.

Don’t confuse with ISM vs SCL Mohali: ISM is the national programme under MeitY. SCL Mohali is a government fab laboratory used to make the student chips.

Don’t confuse with C2S vs fab incentives: C2S is about design talent and startups. Fab and ATMP/OSAT subsidies are separate parts of ISM.

Don’t confuse with EDA tools vs tapeout: EDA tools are software used to design chips. Tapeout is the final design submission for fabrication.

Don’t confuse with ISM vs ECMS: ISM backs chip fabs, packaging, design, equipment and materials. ECMS supports electronic components and sub-assemblies manufacturing.

Don’t confuse with ISM vs PLI for electronics: ISM is a semiconductor-specific mission. PLI schemes give production-linked incentives on sales across electronics products.

Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.

Why it matters

Support across the whole value chain can cut import dependence and build strategic resilience in chips.
Design strength and talent can move India from design services to owning chip IP and products.
Cuts import dependence, as India spent about USD 150 billion on chip imports in FY17-FY25.
Builds the full value chain and supports supply chain resilience and strategic autonomy.
Creates high-value jobs and supports strategic sectors such as space and defence.
Strengthens supply-chain resilience and national security in a critical technology.
Covers the full value chain, including equipment, materials and talent, not just fabs.
Can create 50,000-60,000 direct jobs, according to the Minister.
Cuts import dependence and strengthens supply chain resilience and national security.
Builds upstream capacity in materials, machines and design IP, not just assembly.
Supports growth across sectors such as automobiles, telecom, electronics and aerospace.
Adds compound semiconductor and display capability, reducing import dependence in a strategic technology.
Creates skilled jobs and builds a Gujarat cluster at Dholera and Surat.
Builds a skilled design workforce, which is a key gap in India's chip ecosystem.
Open-access EDA tools lower cost for students and startups across the country.
Reduces import dependence in a strategic input for electronics, defence and autos.
Builds jobs and a full chain from design to packaging, and spreads units across states.
Reduces import dependence in chips and strengthens supply chains.
Equipment, materials and IP move India beyond assembly into deeper value chains.

Problems

Fabs need heavy capital, steady power and ultra-pure water, and depend on imported machines and materials.
Only five of twelve approved plants are producing, and the talent trained is below the design target of 85,000.
Chip manufacturing is highly complex, capital-intensive and needs long, steady policy support.
Production is concentrated in a few economies, so India depends on trusted partners for tools and technology.
Only five of twelve approved units were producing by 2026, so execution and talent remain gaps.
Chip fabs need very large capital, water, power and skilled staff.
India depends on imported equipment and materials, and global competition for subsidies is heavy.
Projects take years to deliver, and fiscal support is large.
Fabs need huge capital, water, power and ultra-pure inputs, with long gestation.
India's current nodes (28nm-110nm) lag leading-edge global technology.
Dependence on foreign technology partners and a shortage of skilled engineers.
Chip fabs need heavy capital, water, power and skilled workers, and face global competition.
Dependence on imported materials, equipment and technology persists.
Trained designers may leave for foreign firms, so retention is a risk.
Training must be matched by fabs and industry jobs to be useful.
Fabs need large capital, water, power and scarce skilled talent.
Most approved projects are packaging, and India depends on foreign technology partners.
Fabs need heavy capital, water, power and a mature supplier base.
Shortage of skilled chip designers and process engineers.

Way forward

Localise materials and equipment and keep strong partnerships with trusted countries.
Link research, industry and academia so design talent leads to products and IP.
Sustain long-term funding and speed up approvals and execution of approved units.
Build the machines, materials and talent base while deepening trusted international partnerships.
Link R&D to industry so design work grows into products made in India.
Build equipment and materials suppliers alongside fabs.
Link talent training to industry needs and speed up approvals.
Use the mid-term review to correct design and funding gaps.
Develop advanced nodes through R&D tie-ups with leading centres in India and abroad.
Build supplier clusters for gases, chemicals and equipment alongside fabs.
Align training in universities with industry needs such as clean room and fab skills.
Build the supply chain of materials, gases and equipment through ISM 2.0.
Link design, talent and manufacturing so projects reach commercial scale.
Link academic training with industry internships and local fabs.
Support design startups to turn student chips into products.
Build materials, equipment and talent base, as ISM 2.0 intends.
Speed up project execution and anchor demand through domestic chip design.
Build industry-linked research and training centres with steady funding.
Develop local equipment and materials clusters alongside fabs.

Put in your answer

ISM 1.0 execution record: Five of twelve approved plants are in commercial production, and the first phase ended ahead of schedule.

Semicon 1.0 progress: Twelve units approved with over Rs 1.64 lakh crore investment; five are producing.

Design talent: India employs nearly 20% of the global chip design workforce.

Talent target: India reached its target of 85,000 semiconductor engineers in four years against a 10-year plan; a further one lakh is targeted.

Design by students: Students from Tier-II and Tier-III cities have designed more than 250 chips.

Market share: Close to 10% of the global semiconductor market is expected to be in India in the coming years.

ISM 1.0 investment: Twelve approved manufacturing units carry over Rs.1.64 lakh crore of investment.

Design ecosystem: 24 design projects approved for support; 105 start-ups/MSMEs given EDA tool access.

Talent pipeline: About 68,000 students trained on EDA tools across 315 universities.

ISM scale: 12 approved projects with about Rs 1.64 lakh crore investment show the mission's progress.

Execution status: Two projects have begun commercial shipments from India, and two more are expected to follow soon.

EDA programme scale: Over 1.85 crore hours of EDA tool use recorded; called the world's largest open-access EDA programme.

Jobs demand: As the global industry reaches USD 2 trillion, about 2 million skilled professionals will be needed.

Investment scale: 10 approved projects carry about Rs 1.6 lakh crore of envisaged investment.

ECMS: ECMS has drawn investment commitments at double its target, with outlay now proposed at Rs 40,000 crore.

Test yourself

True or false?

1 of 19

Statements the way Prelims prints them. Say first, then see the fact.

1.Semicon 2.0 was approved by the Union Cabinet in July 2026 with an outlay of Rs 1,27,500 crore.
2.The Semiconductor Laboratory (SCL), which develops flight-grade chips for satellites and launch vehicles, is located in Mohali.
3.Silicon, the most widely used semiconductor material, is obtained from silica found in sand.
4.The India Semiconductor Mission is the nodal agency for Semicon 2.0.
5.ISM may implement the design and deployment categories with the assistance of the Centre for Development of Advanced Computing.
6.Semicon 2.0 will initially accept applications for ten years.
7.The scheme's mid-term assessment will be conducted after five years of implementation.
8.Semicon 2.0 has a total budget outlay of Rs.1,27,500 crore.
9.The India Semiconductor Mission functions under the Ministry of Electronics and Information Technology.
10.The Semicon India Programme has a total outlay of Rs 76,000 crore.
11.Of the 10 projects approved under the programme, 8 are fabs and 2 are packaging units.
12.The India Semiconductor Mission is the nodal agency for appraisal and recommendation of semiconductor projects under the programme.
13.The Tata Electronics fab in Gujarat is being set up in technology partnership with a company from South Korea.
14.The Micron facility in Gujarat is meant for assembly and test of both DRAM and NAND products.
15.The India Semiconductor Mission functions under the Ministry of Commerce and Industry.
16.ISM 2.0 is meant to produce equipment and materials and design full-stack Indian IP.
17.The Electronics Components Manufacturing Scheme was launched in April 2025.
18.The ECMS outlay is proposed to be increased to Rs 40,000 crore.
19.The India Semiconductor Mission is an independent body set up by an Act of Parliament.

Written by us from the release, not by UPSC; checked by a second model.

Source: PIB, Ministry of Electronics & IT, 31 Aug, 16:12 IST · Release 294108

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Law and statutory body

Sone River water sharing and Inter-State Council

GS2 Federalism and inter-state water disputesGS1 Water resourcesPrelims and Mains

Why in news: On 31 August 2026, Bihar and Jharkhand signed an MoU on sharing Sone River water in the presence of Union Home Minister Amit Shah. It settles a dispute of about 25 years, taken up through the Inter-State Council.
What it is: The Sone is a right-bank tributary of the Ganga that flows through Madhya Pradesh, Uttar Pradesh, Jharkhand and Bihar. Its waters were shared between Bihar and Jharkhand under older arrangements, and Jharkhand's claim to a share after its 2000 creation left a dispute open. The Inter-State Council is a body set up under Article 263 of the Constitution to advise on and help settle disputes between states.

Parties and venue: Bihar and Jharkhand signed the MoU with the Union Home Minister present. The Union Jal Shakti Minister and both Chief Ministers also attended.
Age of dispute: The dispute had run for nearly 25 years.
Kishau funding pattern: For the Kishau project, the Centre gives 90% of the water component as central assistance and six states bear the other 10%.
Constitutional basis: Article 263 lets the President set up an Inter-State Council to inquire into and advise on disputes between states. The Council was set up in 1990 on the Sarkaria Commission's recommendation. The Prime Minister chairs it.

Don’t confuse with Inter-State Council vs Tribunal under the Inter-State River Water Disputes Act, 1956: The Council advises and helps in negotiation and coordination under Article 263. A tribunal gives a binding adjudication on river disputes under Article 262 and the 1956 Act.

Don’t confuse with Inter-State Council vs Zonal Councils: Zonal Councils are statutory bodies set up under the States Reorganisation Act, 1956. The Inter-State Council is constitutional (Article 263).

Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.

Source: PIB, Ministry of Home Affairs, 31 Aug, 18:27 IST · Release 294128

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Science and technology

National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS)

GS3 Science and TechnologyPrelims and Mains

Why in news: On 31 August 2026, PIB published a explainer on Cyber-Physical Systems and NM-ICPS, giving progress figures as of August 2026: 25 hubs, 4 research parks, 1,146 technologies and 5,824 fellowships.
What it is: NM-ICPS is a Department of Science and Technology mission for Cyber-Physical Systems, which link computing, communication and physical processes through sensors and software. It works through Technology Innovation Hubs hosted by academic institutions. It covers research, product development and start-up incubation.

Approval and outlay: The Union Cabinet approved NM-ICPS in 2018 with an outlay of ₹3,660 crore for nine years. DST implements it.
Technology Innovation Hubs: There are 25 TIHs, set up as Section 8 companies and hosted by premier academic institutions.
Digital twin: A digital twin is a live virtual copy of a physical object or system, using real-time sensor data.

Don’t confuse with TIH vs TTRP: TIHs are the 25 hubs; TTRPs are four of the best-performing hubs chosen in 2025 to focus on deployment and commercialisation.

Don’t confuse with CPS vs IoT: IoT connects devices to networks; CPS tightly integrates computation, communication and physical control, so systems sense and act in real time.

Science and technology: 57 Prelims questions since 2013; most test the concept behind the news, not the news itself. In Mains, 12 news-triggered questions.

Test yourself

Source: PIB Headquarters, 31 Aug, 12:26 IST · Release 294093

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

International relations

India-MERCOSUR Preferential Trade Agreement

GS2 International Relations / Trade agreementsGS3 EconomyPrelims and Mains

Why in news: On 31 August 2026 the Commerce Ministry reported the 8th India-Brazil Trade Monitoring Mechanism meeting in Brasília. Both sides reviewed the India-MERCOSUR Terms of Reference and committed to finalise them early.
What it is: The India-MERCOSUR PTA is a limited trade pact between India and the South American bloc MERCOSUR. It gives each side tariff concessions on a fixed list of products, not full free trade. Rules of Origin in Annex III decide which goods qualify for the concessions.

PTA dates: The PTA was signed on 25 January 2004 and came into force on 1 June 2009.
Coverage: India offers concessions on 450 tariff lines and MERCOSUR on 452 tariff lines.
What the Protocol changes: It amends Article 16 of Annex III (Rules of Origin). Electronic Certificates of Origin get the same legal validity as paper ones.
Joint Administrative Committee: The Committee's fifth meeting on 9 April 2026 adopted the Protocol proposal by mutual consent.
Entry into force: The Protocol takes effect only after each side completes internal procedures and notifies the other.
MERCOSUR members: The founding members are Argentina, Brazil, Paraguay and Uruguay, under the 1991 Treaty of Asunción.
India-MERCOSUR trade: India-MERCOSUR trade reached USD 20.84 billion in 2025. Both sides committed to early finalisation of the Terms of Reference.
Pharma regulators: A CDSCO-ANVISA MoU, signed in February 2026, is the institutional base for health and pharmaceutical cooperation.

Don’t confuse with PTA vs FTA: A PTA gives tariff cuts on a limited list of goods. An FTA removes tariffs on substantially all trade between the parties.

Don’t confuse with MERCOSUR vs Pacific Alliance: MERCOSUR is a customs union of Argentina, Brazil, Paraguay and Uruguay. The Pacific Alliance is a separate Latin American bloc of Pacific-coast states.

Don’t confuse with MERCOSUR vs BRICS: MERCOSUR is a South American trade bloc. BRICS is a grouping of emerging economies that includes India and Brazil.

International bodies and relations: the largest group of news questions in Prelims (61 since 2013), often about background, members and location. In Mains, 27 news-triggered questions, mostly on India's interests.

Test yourself

Source: PIB, Ministry of Commerce & Industry, 31 Aug, 09:54 IST · Release 294092

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Economy

India's GDP growth and national income estimates

GS3 Economy · Growth and national incomePrelims and Mains

Why in news: On 31 August 2026, MoSPI released Q1 (April-June) 2026-27 GDP estimates on the new 2022-23 base. Real GDP grew 7.8% and nominal GDP 10.3%.
What it is: GDP is the value of final goods and services produced within the economy in a period. GVA measures the contribution of individual producers, industries or sectors. Real figures use constant prices and remove the effect of price changes, while nominal figures use current prices. MoSPI compiles these national accounts estimates.

Basis of revision: Revised annual estimates use new price and production indices with base year 2022-23, including the Output Producer Price Index and Banking Services Price Index.
Real GDP growth: Real GDP in Q1 2026-27 was ₹81.36 lakh crore, up 7.8% year on year.
Nominal GDP growth: Nominal GDP in Q1 was ₹88.27 lakh crore, up 10.3%.
New base year: The new series with base year 2022-23 was released on 27 February 2026.
Double deflation: The new series uses double deflation for manufacturing GVA: output and intermediate consumption are deflated separately using PPIs.

Don’t confuse with GDP vs GVA: GDP is at market prices and includes net product taxes. GVA is at basic prices and shows sectoral output.

Don’t confuse with Real vs nominal: Real GDP is at constant prices and removes inflation. Nominal GDP is at current prices.

Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.

Test yourself

Source: PIB, Ministry of Statistics & Programme Implementation, 31 Aug, 16:00 IST · Release 294102

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Economy

UPI and Merchant Discount Rate (MDR) framework

GS3 Economy: Payments and fintechPrelims and Mains

Why in news: On 30 August 2026, NPCI International (NIPL) signed a commercial agreement with Uzbekistan's NIPC (operator of HUMO) so UPI users can pay by scanning Uzbekistan's UZQR code. It was announced during the Prime Minister's visit to Uzbekistan (release dated 31 August 2026).
What it is: Merchant Discount Rate (MDR) is the fee a merchant pays its bank for accepting a digital payment. It is shared among the banks and payment service providers in the chain. UPI, run by NPCI, was kept at zero MDR for years, which raised questions about who bears the cost of running it.

Legal basis: The framework is introduced under the Payment and Settlement Systems Act, 2007, after deliberation by the UPI Steering Committee.
Essential sectors: Transactions above ₹2,000 in railways, telecom, insurance, fuel and agricultural inputs attract a flat ₹5 per transaction.
Capital markets: Payments for mutual funds, securities, and stockbrokers and dealers attract 0.02% MDR, capped at ₹300.
Who gets MDR: MDR is not a tax or a charge collected by the Government or NPCI. It is shared among ecosystem participants.
Who signed: NIPL, the international arm of NPCI, signed with NIPC JSC, which operates Uzbekistan's national payment system HUMO.
What it enables: Indian travellers can scan Uzbekistan's interoperable QR code UZQR with UPI-enabled apps to pay merchants.
Regulatory approvals: The RBI and the Central Bank of Uzbekistan approved the arrangement and designated HUMO as NIPL's authorised partner for cross-border merchant acceptance.
Type of payment: The payments are direct person-to-merchant (P2M) from Indian bank accounts, avoiding foreign exchange markup.
UPI abroad: The release lists ten countries where UPI is accepted: Singapore, UAE, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, Cambodia and Greece.
Launch and operator: UPI was launched on 25 August 2016 by NPCI, under RBI regulatory oversight.
Global standing: The IMF recognises UPI as the world's largest real-time payment system by transaction volume.
Cross-border reach: UPI is operational in 11 countries, including UAE, France, Bhutan, Sri Lanka, Nepal and Singapore.
MDR: MDR is the fee a merchant pays its bank for accepting digital payments; UPI has long been kept at zero MDR.
Legal change: The Taxation and Other Laws (Amendment) Bill, 2026 proposes to amend Section 10A of the Payment and Settlement Systems Act, 2007. It is an enabling provision, not a charge in itself.
Who decides: After the Bill passes, the UPI and Services Steering Committee, headed by NPCI, will decide on MDR, if any.
Zero-MDR history: UPI was introduced in 2016 and has been free for merchants and citizens since January 2020.
Operator: UPI is run by the National Payments Corporation of India (NPCI), an umbrella body for retail payments set up with RBI guidance.

Don’t confuse with P2P vs P2M vs P2PM: P2P is person to person and is always free. P2M is person to merchant and attracts MDR above ₹2,000. P2PM is the category of small merchants using personal QR codes, which get zero MDR up to ₹1 lakh a month.

Don’t confuse with MDR vs daily transaction limit: MDR is a merchant fee. Daily limits of ₹1 lakh to ₹5 lakh are security and risk safeguards, not charging thresholds.

Don’t confuse with NPCI vs NIPL: NPCI runs UPI and other retail payment systems in India. NIPL is its international subsidiary that arranges overseas acceptance and tie-ups.

Don’t confuse with P2M vs P2P: P2M is a payment from a person to a merchant, as in this UZQR arrangement. P2P is a transfer between individuals, as in remittances.

Don’t confuse with MDR vs interchange: MDR is the total fee charged to the merchant; interchange is the part paid to the card-issuing or remitting bank.

Don’t confuse with P2P vs P2M: P2P moves money between individuals; P2M pays a merchant. P2M leads in volume, P2P in value.

Don’t confuse with PSS Act regulator vs operator: RBI regulates payment systems under the PSS Act, 2007. NPCI operates UPI.

Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.

Why it matters

Gives banks and payment providers a revenue stream to sustain UPI infrastructure.
Keeps individuals and small merchants free of charges, protecting financial inclusion.
Extends UPI as digital public infrastructure abroad and strengthens India's financial diplomacy.
Cuts forex markup and card dependence for Indian travellers, students and business visitors.
Boosts financial inclusion and formalisation through interoperable, low-cost digital payments.
Gives India a globally recognised DPI model and a tool for soft power through cross-border links.
A revenue model could fund fraud prevention, cybersecurity and upgrades for a system of 2,366 crore monthly transactions.
It may bring more fintech and bank participation, and so more competition and rural reach.

Problems

Merchants may pass MDR on to customers despite the prohibition, which is hard to monitor.
Charges may discourage larger merchants from using UPI or push them to cards and cash.
Cross-border links need regulator approvals and partner-country interoperability, which slows rollout.
Revenue models and fees for foreign operators are unclear, as with the domestic MDR debate.
Zero MDR leaves unclear who bears the cost of running UPI, which strains banks and payment providers.
Heavy concentration in a few apps and an operator raises systemic risk, and outages and fraud affect trust.
Even a small MDR could push small merchants back to cash and slow formalisation.
Trust in a free public good may fall if the government's messaging is unclear, and a threshold may be hard to design.

Way forward

Monitor pass-through by merchants and enforce the ban on platform fees and hidden charges.
Review rates periodically using data on adoption and costs, and use the small-merchant fund well.
Expand bilateral links and work towards linking UPI with more national fast-payment systems.
Keep clear rules on fees, security and dispute resolution for cross-border payments.
Settle a sustainable cost-sharing model, such as targeted incentives or MDR for large merchants, without hurting small merchants.
Diversify the app market, strengthen fraud controls and operational resilience.
Set a transparent, rule-based threshold and rate, with consultation, and exempt small merchants and P2P.
Consider other ways to fund UPI, such as targeted incentives and cost sharing, and publish cost data.

Put in your answer

P2P share of value: UPI transactions making up 70% of total transaction value stay outside the MDR framework.

Parliamentary panel: The framework is consistent with the Standing Committee on Finance's 32nd Report, which stressed a viable revenue model.

UPI's overseas reach: UPI is accepted in ten countries per the release, a point for answers on digital public infrastructure and soft power.

UPI scale: UPI volume rose from 1.78 crore transactions in FY17 to over 24,162 crore in FY26.

Micro-payments: 86% of P2M transactions are below ₹500, showing use in everyday small retail.

Self-sustainability argument: Government says reliance on subsidies alone is not viable for the next wave of growth.

Test yourself

True or false?

1 of 21

Statements the way Prelims prints them. Say first, then see the fact.

1.The new UPI framework is introduced under the Payment and Settlement Systems Act, 2007.
2.MDR collected on UPI is a tax levied by the Government and deposited with NPCI.
3.A 0.4% MDR applies to person-to-merchant UPI transactions above ₹2,000.
4.Person-to-person UPI transfers above a certain amount attract MDR under the framework.
5.Transactions above ₹2,000 in sectors such as railways, insurance and fuel attract a flat MDR of ₹5 per transaction.
6.A fund for small-merchant UPI adoption will receive 5% of total MDR collections.
7.UPI was launched in 2016 by the National Payments Corporation of India under the regulatory oversight of the Reserve Bank of India.
8.The International Monetary Fund has acknowledged UPI as the world's largest real-time payment system by transaction value.
9.Person-to-merchant transactions make up the larger share of UPI transaction volume, while person-to-person transactions make up the larger share of value.
10.UPI is currently operational in 11 countries, including Bhutan, Nepal and Singapore.
11.UPI accounts for nearly 49 per cent of the world's real-time payment transaction volume as of 2025.
12.Merchant Discount Rate is the fee a bank pays to NPCI for every UPI transaction it processes.
13.Among UPI P2M transactions, a majority are small-ticket payments below ₹500.
14.NPCI is a statutory body set up under an Act of Parliament to regulate all payment systems in India.
15.The proposed amendment to the Payment and Settlement Systems Act, 2007 concerns Section 10A of the Act.
16.After the amendment, the Reserve Bank of India's Monetary Policy Committee will decide on MDR for UPI.
17.The Government has said any MDR on UPI, if introduced, would apply only to a limited set of merchant transactions above a threshold.
18.The Government has said that Person-to-Person UPI transactions may attract a nominal charge once MDR is introduced.
19.UPI has been free of charge for both merchants and citizens since January 2020.
20.UPI is operated by the Reserve Bank of India directly through its Department of Payment and Settlement Systems.
21.MDR is the fee a merchant pays for accepting a digital payment, and it is shared among the banks and service providers in the chain.

Written by us from the release, not by UPSC; checked by a second model.

Source: PIB, Ministry of Finance, 31 Aug, 16:14 IST · Release 294110

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Science and technology

Thermoelectric conversion and wave-like heat transport

GS3 Science & TechnologyPrelims and Mains

Why in news: On 31 August 2026, the Ministry of Science & Technology reported that JNCASR scientists, with the University of Sydney and IISc, made a scandium nitride crystal with a record-high Seebeck coefficient. The result was published in Science.
What it is: Thermoelectric conversion turns a temperature difference directly into electricity, using the Seebeck effect. A good thermoelectric material conducts electricity well but heat poorly, and its efficiency is rated by the figure of merit zT. TlCu5Se3 is a newly studied copper chalcogenide whose confined copper motion keeps lattice heat conduction very low.

Who did it: The work was done at JNCASR, Bengaluru, an autonomous institute under the Department of Science & Technology, led by Prof. Kanishka Biswas.
Performance: The material reaches a thermoelectric figure of merit (zT) of 1.7, among the highest for pristine ternary chalcogenides.
Mechanism: Confined, localized disorder of Cu atoms, not long-range liquid-like diffusion, causes strong anharmonicity and wave-like coherence of phonons.
Method: The team used the unified formalism of thermal transport, which covers both particle-like phonon propagation and wave-like coherence between phonon branches.
Seebeck effect: The Seebeck effect is the generation of voltage across a material from a temperature difference; it underlies thermoelectric generators.
Old ceiling: Crystalline solids were limited to a few millivolts per Kelvin; only ionic liquids and gels crossed into that range.
Material and method: Thin ScN films were grown on magnesium oxide substrates by ultrahigh-vacuum magnetron sputtering and doped with magnesium to compensate free electrons.

Don’t confuse with Seebeck vs Peltier effect: Seebeck: a temperature difference produces voltage (power generation). Peltier: an electric current produces heating or cooling at a junction (refrigeration).

Don’t confuse with Phonon vs wave-like coherence: Phonons are quantised lattice vibrations that carry heat like particles. In this regime, heat also moves by coherence between different vibrational modes.

Don’t confuse with Seebeck coefficient vs figure of merit zT: The coefficient is voltage per Kelvin. zT rates overall thermoelectric efficiency and also depends on electrical and thermal conductivity.

Science and technology: 57 Prelims questions since 2013; most test the concept behind the news, not the news itself. In Mains, 12 news-triggered questions.

No practice question for this one; the card may still help an answer. Why: Concept of the Seebeck effect is textbook; the finding is a research result, so UPSC question unlikely.

Source: PIB, Ministry of Science & Technology, 31 Aug, 16:59 IST · Release 294118

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Science and technology

Quantum Key Distribution and Post-Quantum Cryptography

GS3 Science and TechnologyPrelims and Mains

Why in news: On 31 August 2026, C-DOT unveiled 14 indigenous quantum products in QKD and PQC at its 43rd Foundation Day in New Delhi. The Communications Minister launched them along with a Quantum Product Series booklet.
What it is: C-DOT is the Department of Telecommunications' telecom R&D centre. Quantum Key Distribution uses quantum properties of photons to share encryption keys, while Post-Quantum Cryptography uses mathematical algorithms designed to resist attack by quantum computers. Both aim to protect data once powerful quantum computers can break today's public-key encryption.

Who developed it: C-DOT, the telecom R&D centre of the Department of Telecommunications, developed the products.
QKD protocols: Q-AKSHAY CD is a compact fibre-based QKD system using the COW and DPS protocols. Q-AKSHAY MD uses the Measurement Device Independent protocol, which guards against vulnerabilities in measurement devices.
PQC standards: The quantum-safe encryptors use post-quantum algorithms standardised by the US National Institute of Standards and Technology (NIST).
Throughput range: Q-AMOGH is a Layer 1 optical encryptor with up to 200 Gbps throughput, the highest in the series.
Components: C-DOT also built sub-modules such as a Single-Photon Detector (C-SPD) and a wideband RF driver (C-RD) for quantum communication systems.
QKD principle: QKD security rests on quantum mechanics: an eavesdropper measuring the photons disturbs them and can be detected.

Don’t confuse with QKD vs PQC: QKD is a hardware-based method using quantum physics to distribute keys. PQC is software-based mathematical cryptography that runs on classical computers but resists quantum attacks.

Don’t confuse with PQC vs quantum cryptography: PQC is not quantum technology. It is classical cryptography designed to withstand quantum computers.

Science and technology: 57 Prelims questions since 2013; most test the concept behind the news, not the news itself. In Mains, 12 news-triggered questions.

No practice question for this one; the card may still help an answer. Why: QKD and PQC are lasting sci-tech concepts, but the C-DOT product launch is unlikely to be tested.

Source: PIB, Ministry of Communications, 31 Aug, 19:15 IST · Release 294133

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Scheme

Jal Jeevan Mission and Jal Arpan

GS2 Welfare schemesGS3 Rural water supplyPrelims and Mains

Why in news: On 31 August 2026 the Ministry of Jal Shakti announced it will host the first Departmental Summit on 1-2 September 2026 in New Delhi. It brings Centre and States together on water priorities, including Jal Jeevan Mission 2.0.
What it is: Jal Jeevan Mission is the Centre's flagship scheme, run by the Department of Drinking Water and Sanitation under the Ministry of Jal Shakti, to give every rural household a tap water connection. Jal Arpan is a reform under it: the formal handover of completed water supply schemes to Gram Panchayats and Village Water and Sanitation Committees for operation and maintenance.

Jal Arpan: Formal handover of completed rural water supply schemes to Gram Panchayats and VWSCs, after a prescribed trial run period.
Coverage: More than 15.96 crore rural households, over 82% of rural households, have tap connections.
Jal Arpan module: Developed by the Department of Drinking Water & Sanitation; keeps a digital record of scheme handover.
Sujalam Bharat: Geotagging of water supply assets and sources under JJM 2.0 to build a digital inventory.
Launch: Jal Jeevan Mission was launched in August 2019 with the target of tap water to all rural households by 2024.
Summit dates and venue: The first Departmental Summit is on 1-2 September 2026 at Sushma Swaraj Bhawan, New Delhi.
Purpose of the summit model: It is a new platform to strengthen cooperative federalism through Centre-State collaboration. It is the first of a series of such summits.
Four thematic pillars: Timely implementation of water infrastructure projects, Jal Sanchay Jan Bhagidari-Catch the Rain, source sustainability of drinking water, and operation and maintenance of rural water supply under Jal Jeevan Mission 2.0.
Who attends: Political leaders and senior officials from the Union and State Governments take part.
Outcome presentation: States will present outcomes and action plans to the Prime Minister in the valedictory session.
Nodal ministry: Jal Jeevan Mission is implemented by the Ministry of Jal Shakti.
JJM 2.0 approval: JJM 2.0 was approved on 10 March 2026. Its strategy centres on source sustainability, groundwater recharge and greywater management.
Water security in the VB-G RAM G Act: The VB-G RAM G Act, 2025 names water security as one of its four thematic focus areas.
SBM(G) 2.0 focus: SBM(G) 2.0 focuses on scientific management of solid and liquid waste.
Planning vehicle: Convergence is to be done through Viksit Gram Panchayat Plans, aligned with Village Action Plans under JJM 2.0 and SBM-G 2.0.
Geo-tagging and tools: Works must be registered and geo-tagged on the Viksit Bharat National Rural Infrastructure Stack. States are to use tools such as Yuktdhara, water budgeting and hydrogeological assessments.
Institutional step: The officer in charge of Rural Water Supply or the Public Health Engineering Department is to join the State-level Steering Committee under the Act.
Launch and aim: Launched on 15 August 2019 to give every rural household a functional tap connection on a regular, long-term basis.
Service standard: The Mission targets 55 litres per capita per day of water meeting the BIS 10500 standard, at affordable service charges.
Har Ghar Jal certification: 188 districts, 1,090 blocks, 1.01 lakh Gram Panchayats and 2.04 lakh villages are certified Har Ghar Jal.
Extension: The Union Government has extended the Mission till December 2028.
Signatories: MoUs were signed with four States (Arunachal Pradesh, Jharkhand, Tamil Nadu, Nagaland) and one UT (Puducherry).
Model mandated: The MoU requires a Gram Panchayat-led, service-based and community-centred model of rural water governance.
JJM 2.0 priorities: Focus is on sustaining infrastructure, tap functionality, water quality, source sustainability, O&M, community ownership and regular monitoring.
Institutions: Collectors are to hold regular District Water and Sanitation Mission meetings, which help prepare Village Action Plans and certify Panchayats as capable institutions.
Conditions before fund release: States must sign the MoU, get schemes validated against the Sujalam Bharat GIS-linked Asset Registry, certify compliance with CPHEEO design norms, and reconcile expenditure financially.
Jal Utsav: A three-tier annual community campaign: Jal Mahotsav nationally, Rajya Jal Utsav or Nadi Utsav in States, and Lok Jal Utsav at Gram Panchayat level.
MoU count: Meghalaya is the twelfth State to sign a Reform-Linked MoU under JJM 2.0.
Cabinet approval: JJM 2.0 was approved by the Union Cabinet on 10 March 2026.
Extended deadline: The original deadline of May 2024 has been extended to December 2028.
Outlay: The Cabinet approved an additional outlay of ₹1.51 lakh crore for the Mission.
Local role: Gram Panchayats and VWSCs are to manage and operate in-village water supply systems; District Water Sanitation Missions prepare village action plans and issue panchayat certifications.
Implementing ministry: JJM is implemented by the Department of Drinking Water and Sanitation, Ministry of Jal Shakti.
Jal Mahotsav 2026: A 15-day nationwide campaign from 8 March (International Women's Day) to 22 March (World Water Day), with Jal Arpan of assets to Gram Panchayats.
Key reform areas: Assured service delivery with defined performance standards, clear accountability at State, district and Gram Panchayat levels, and long-term sustainability through source protection.
Implementing body: JJM is implemented by the Department of Drinking Water and Sanitation, Ministry of Jal Shakti, jointly with States.
New end date: The Mission is extended up to December 2028 with a higher financial outlay.
MoU model: The MoU mandates a Gram Panchayat-led, service-based, community-centred model of rural water governance.
Implementing department: The Mission is run by the Department of Drinking Water and Sanitation under the Ministry of Jal Shakti, through the National Jal Jeevan Mission.
Original launch: JJM was launched in 2019 with the aim of tap water to every rural household by 2024.
Funding pattern: JJM is a centrally sponsored scheme; the Centre-State share is 90:10 for Himalayan and North-Eastern States, 50:50 for other States.
Start and aim: Running since August 2019, JJM aims at assured tap water to every rural household in partnership with States.
Extended phase: The extended phase focuses on infrastructure quality and O&M through Jan Bhagidhari, with separate MoUs signed with States/UTs.
Functionality assessment 2024: An independent third-party assessment found 76% of household tap connections functional, judged on quantity, quality and regularity.
Federal division: Drinking water is a state subject; States handle planning, approval, implementation and O&M, and the Centre gives technical and financial help.
Reform areas in MoU: The reform-linked MoU covers 11 structural reform areas, including institutional architecture, service utility framework, water quality governance and source sustainability.
Jal Arpan condition: A key MoU condition is that completed piped schemes be handed over to Gram Panchayats/VWSCs and the community through Jal Arpan.
Decision Support System: The MoU provides for the DSS platform, developed by DDWS, as a digital planning tool at district and GP levels for source sustainability, integrated with Sujalam Bharat and national water datasets.
Mission extension: JJM has been extended till December 2028 with an enhanced outlay.
Reform areas: The MoU covers 11 structural reform areas, such as service utility framework, water quality governance and source sustainability.
Sujal Gaon ID: A scheme-based unique digital identifier for mapping rural piped water supply assets. 1.64 lakh IDs are created across 31 States/UTs, linked to 67,000 Sujalam Bharat IDs.
Conditions for central funds: Central funds depend on four requirements: signing the MoU, creating Sujal Gaon IDs, timely financial reconciliation, and notifying State O&M policies.
Funding modes: Upfront payment, reimbursement and Viability Gap Funding (for annuity-based PPP models in BWSs). No central help for retrofitting schemes.
Har Ghar Jal declaration: A Gram Panchayat can declare itself Har Ghar Jal only after the State has set up adequate in-village operation and maintenance mechanisms.
Target and MoUs: All 19.36 crore rural households are to get tap connections by December 2028, with separate MoUs with States/UTs.
Water quality standard: BIS:10500 is the benchmark for water supplied under JJM; arsenic and fluoride affected habitations get priority.
Quality monitoring funds: States/UTs can use up to 2% of their annual JJM allocation for water quality monitoring and surveillance.
Nal Jal Mitra: Nal Jal Mitra Programme, run with the Ministry of Skill Development and Entrepreneurship, trains villagers as scheme operators and for minor repairs.
Implementing agency: The scheme is run by the Ministry of Jal Shakti through its Department of Drinking Water and Sanitation.

Don’t confuse with Jal Jeevan Mission vs Atal Mission for Rejuvenation and Urban Transformation (AMRUT): JJM targets rural household tap connections; AMRUT covers urban water supply and sewerage.

Don’t confuse with Jal Jeevan Mission vs Swachh Bharat Mission (Grameen): JJM is for drinking water supply; SBM-G is for sanitation. Both run under the Department of Drinking Water and Sanitation.

Don’t confuse with Jal Arpan vs Jal Sanchay Jan Bhagidari: Jal Arpan hands over completed water supply schemes to local bodies for operation and maintenance. Jal Sanchay Jan Bhagidari is a community-participation drive on water conservation and rainwater harvesting.

Don’t confuse with JJM vs SBM(G): JJM provides tap water to rural homes. SBM(G) deals with rural sanitation and waste management. Both are run by DDWS.

Don’t confuse with Jal Arpan vs JJM: Jal Arpan is only the handover of completed schemes for operation and maintenance. JJM is the whole mission.

Don’t confuse with Jal Jeevan Mission vs Jal Jal Shakti Abhiyan: JJM provides household tap connections in rural areas. Jal Shakti Abhiyan is a water conservation and rainwater harvesting campaign.

Don’t confuse with JJM vs Swajaldhara/NRDWP: Earlier programmes such as Swajaldhara and NRDWP focused on habitation-level coverage; JJM targets household tap service delivery.

Don’t confuse with Jal Arpan vs Jal Sankalp: Jal Arpan is the formal handover of water assets to Gram Panchayats. Jal Sankalp is Arunachal Pradesh's gap-funding effort for source sustainability.

Don’t confuse with Jal Arpan vs Jal Utsav: Jal Arpan is the commissioning and formal handover of schemes to Gram Panchayats and VWSCs. Jal Utsav is an annual community campaign for maintenance and review.

Don’t confuse with Sujalam Bharat vs Meri Panchayat: Sujalam Bharat is the digital asset and service-area mapping framework. Meri Panchayat is the application that reflects citizen feedback from Jal Seva Aankalan.

Don’t confuse with Jal Jeevan Mission vs Jal Sanchay: JJM provides tap water to rural homes; Jal Sanchay is the water conservation push that supports source sustainability.

Don’t confuse with Jal Jeevan Mission vs AMRUT: JJM covers rural households; AMRUT focuses on urban water supply and sewerage.

Don’t confuse with Jal Arpan vs Jal Mahotsav: Jal Arpan is the handover of water assets to local bodies; Jal Mahotsav is a community campaign during which such handovers were held.

Don’t confuse with Jal Jeevan Mission vs Jal Shakti Abhiyan: JJM is a tap connection scheme; Jal Shakti Abhiyan is a water conservation campaign.

Don’t confuse with Jal Shakti Abhiyan vs Jal Jeevan Mission: Jal Shakti Abhiyan: Catch the Rain is a water conservation campaign for source sustainability; JJM is the tap connection scheme.

Don’t confuse with Jal Seva Aankalan vs Jal Arpan: Jal Seva Aankalan records service delivery responses at GP level. Jal Arpan is the handover of schemes.

Don’t confuse with Sujal Gaon ID vs Sujalam Bharat ID: Sujal Gaon ID identifies a scheme. Each Sujalam Bharat ID combines a scheme's infrastructure ID and service area ID, and Sujalam Bharat is the wider national digital architecture.

Don’t confuse with Jal Jeevan Mission vs Jal Arpan: JJM is the overall scheme for rural tap connections; Jal Arpan is a reform under it for handing over completed schemes to GPs/VWSCs.

Don’t confuse with JJM vs Swachh Bharat Mission (Gramin): JJM provides piped drinking water; SBM (Gramin) is the sanitation programme, with which JJM converges for grey-water reuse.

Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.

Why it matters

Handing schemes to Gram Panchayats and VWSCs builds community ownership and supports the 73rd Amendment's local self-governance.
Geotagging and digital records improve monitoring and planning of rural water assets.
Institutionalises Centre-State dialogue on water, a State subject, supporting cooperative federalism.
Focus on operation and maintenance and source sustainability addresses the gap between creating tap connections and delivering reliable water.
Joint planning of water, sanitation and livelihood works can cut duplication and make better use of funds.
Source sustainability and groundwater recharge work can make tap water services last.
Reduces women's and girls' time spent fetching water, aiding health, education and livelihoods.
Moves rural water policy from creating assets to delivering a regular service.
Moves the mission from asset creation to reliable, accountable service delivery.
Strengthens decentralised governance by giving Gram Panchayats and VWSCs charge of O&M.
Linking funds to MoUs, validation and reconciliation brings accountability and performance-based release.
Focus on O&M and community ownership aims at lasting service, not just connections.
Shifts focus from building pipelines to sustainable service delivery.
Strengthens decentralisation by giving Gram Panchayats and VWSCs charge of operation and maintenance.
Shifts focus from building pipes to reliable, safe water, which supports health, hygiene and women's time savings.
Reform-linked MoUs bind States to accountability, strengthening cooperative federalism.
Shifts focus from creating pipelines to assured, regular, quality service.
Strengthens Panchayats and community ownership in water management, advancing decentralisation.
Tap water at home reduces the time women spend fetching water and lowers waterborne disease.
Cuts across health, gender and rural development goals, and supports SDG 6.
Shifts focus from building taps to assured service delivery, quality and long-term sustainability.
Gram Panchayat-led management gives local bodies ownership of water assets.
Shifts the Mission from creating tap connections to assured, lasting service delivery.
Gives Gram Panchayats and communities ownership of rural water systems.
Digital IDs enable source-to-tap tracking, real-time monitoring and transparency.
Conditional, milestone-based funding ties central money to State reforms and long-term service delivery.
Shifts focus from building pipes to reliable service delivery, aiming at assured 24x7 rural supply.
Reduces women's drudgery and improves health, with women and girls the main beneficiaries.
Tap water at home cuts the drudgery of fetching water, which falls mostly on women.
Safe supply in arsenic and fluoride areas reduces waterborne disease and health costs.
Community ownership through GPs and VWSCs builds local self-government.

Problems

Gram Panchayats may lack technical skills and funds to run and maintain schemes.
Source sustainability and water quality (contamination) remain concerns even after tap connections.
Water is a State subject, so outcomes depend on State follow-through; summit commitments are not binding.
Weak source sustainability, groundwater depletion and thin local capacity for operation and maintenance can leave connections without water.
Several departments and levels of government must coordinate, and capacity at Gram Panchayat level is uneven.
Source depletion and poor operation and maintenance can undercut tap connections.
Sustaining sources and keeping schemes functional after tap connections are installed.
Ensuring water quality and community capacity to operate and maintain systems.
Difficult terrain, forest clearances and NoCs delay pipelines (Jharkhand, Arunachal Pradesh).
Source sustainability and lack of perennial sources, as in Tamil Nadu, threaten tap functionality.
Water is a State subject, so success depends on State accountability and capacity.
Sustaining source and O&M after handover to Gram Panchayats and VWSCs is difficult.
Operation and maintenance of in-village systems needs funds and capacity at village level.
Quality, accountability and source sustainability must be ensured.
Sustaining O&M depends on user charges and local capacity, which vary across villages (₹40 to ₹100 per household in the villages featured).
Source sustainability and water quality remain at risk without groundwater recharge and regular testing.
Panchayats need funds, skills and the power to levy user charges for operation and maintenance.
Source sustainability, water quality and corruption in works threaten long-term functionality.
Functionality lags coverage: only 76% of connections were functional in 2024, with quality and regularity gaps.
Scarce sources, geogenic contamination, difficult terrain, limited technical capacity and rising costs slow delivery.
Local bodies may lack technical skills and funds to run and maintain schemes.
Source sustainability and water quality (arsenic, fluoride) need continuous monitoring.
Weak capacity and finances of Gram Panchayats to run and maintain schemes.
Source sustainability and water quality, especially in water-scarce and varied hydro-geological areas.
Water is a State subject, so delivery depends on State capacity and accountability; delays have arisen from technical shortcomings.
Oversized or non-compliant works raise costs, and States must bear that expenditure.
Sustaining operation and maintenance and source sustainability after handover, with weak Gram Panchayat finances and capacity.
Last-mile coverage of the remaining households and ensuring water quality and State-wise delivery.
Water source sustainability and groundwater depletion threaten long-term supply.
Reported connections may not mean regular, quality-assured supply; functionality must be checked.
Weak capacity of Gram Panchayats for operation, maintenance and tariff collection; Central outlay is almost used up.

Way forward

Train and fund VWSCs, with user charges for operation and maintenance.
Strengthen source recharge and regular quality testing, with women-led surveillance.
Set time-bound, monitored targets for agreed action points, with digital monitoring and regular review.
Strengthen Gram Panchayats and Village Water and Sanitation Committees with funds, training and tariff support for asset management.
Build Gram Panchayat capacity for planning, water budgeting and asset upkeep.
Use geo-tagged data to monitor assets and check that convergent works are completed.
Strengthen source sustainability through groundwater recharge and rainwater harvesting.
Build Gram Panchayat and VWSC capacity, with regular water quality testing and surveillance.
Notify State O&M policies and certify Panchayats as capable institutions.
Invest in spring rejuvenation, rainwater harvesting, groundwater recharge and community water quality monitoring.
Build Gram Panchayat and VWSC capacity for O&M and tariff or financing arrangements.
Use Sujalam Bharat data and Jal Seva Aankalan feedback to monitor and fix service gaps.
Link JJM with MGNREGA and conservation works to strengthen water sources.
Enforce accountability measures in the MoUs and build local capacity.
Ensure Gram Panchayats and VWSCs are trained and funded to run schemes, with defined performance standards.
Link supply with source protection, rainwater harvesting, grey water reuse and aquifer recharge, backed by technology-based monitoring.
Build Panchayat capacity and allow user charges with support for poor households.
Strengthen source recharge, quality testing and third-party audit of assets.
Shift to O&M and sustainability through community ownership (Jan Bhagidhari, Jal Arpan) and State MoUs.
Strengthen source sustainability, monitoring through IoT sensors and dashboards, and local skills such as Nal Jal Mitra.
Build GP capacity and skilling, and ensure sound operational and financial models such as user charges.
Use digital tools like DSS and citizen feedback to track service delivery and source health.
Train and fund GPs and VWSCs, and set up service utility arrangements.
Use digital tools like the DSS and citizen feedback to track quality and sources.
Strengthen Gram Panchayat-led O&M, source sustainability and recharge, and community oversight.
Enforce technical specifications, financial reconciliation and quality checks through the State MoUs.
Strengthen GPs and VWSCs with training, tariff or user-charge systems and funds for upkeep.
Use digital mapping and monitoring for accountability, and converge with groundwater recharge and source-sustainability programmes.
Strengthen source recharge by converging with watershed, MGNREGA-type and Finance Commission funds.
Train and pay local operators such as Nal Jal Mitras and enforce independent quality testing with public data.
Secure enhanced funding for extension to 2028 and link it to service-delivery outcomes.

Put in your answer

JJM coverage: Over 15.96 crore rural households (82%+) have tap connections.

Geotagging: 2,691 water supply assets, including around 700 sources, were geotagged on the day.

Departmental Summit as cooperative federalism example: A new Centre-State platform where States present action plans to the Prime Minister, for answers on cooperative federalism and governance.

Community-led water governance: Discussions cover asset management and strengthening community-led water governance, useful for answers on decentralised service delivery.

Convergence tools: Geo-tagging on the Viksit Bharat National Rural Infrastructure Stack and geospatial planning tools such as Yuktdhara are named for convergent planning.

Local planning example: Viksit Gram Panchayat Plans are the unit for integrated planning of water security.

Community role: Gram Panchayats, VWSCs and Self-Help Groups are meant to manage and sustain rural water supply assets.

Reform-linked MoUs: Use as an example of cooperative federalism tied to governance reforms and community ownership.

Arunachal catchment law: Arunachal Pradesh has an Act for protection and management of drinking water catchment areas, with community participation.

Compliance-linked release: ₹1,561.53 crore went to five States, the first performance-based, compliance-linked release.

Extended timeline: JJM deadline extended from May 2024 to December 2028.

Meghalaya example: Meghalaya, once among the lowest in rural tap coverage, reached 83.59% coverage.

Community-managed example: Tepla village in Ambala collects ₹40 per household per month as user charges for operation and maintenance.

Reform-linked MoU: Centre-State MoUs tie JJM 2.0 to Panchayat-led O&M reforms, an example of cooperative federalism.

Jan Bhagidari: The MoU seeks stronger community participation (Jan Bhagidari) for sustainable operation and maintenance of rural water supply.

Functionality gap: The 2024 assessment found 76% of tap connections functional on quantity, quality and regularity.

Health benefit claim: The Minister cited a WHO study that universal household tap water could prevent close to 4 lakh diarrhoeal deaths annually.

Reform-linked federal model: The MoU ties Centre-State cooperation to 11 structural reforms, an example of conditional cooperative federalism.

Community model: The MoU mandates a Gram Panchayat-led, service-based, community-centred model of rural water governance.

Cooperative federalism example: State-specific MoUs with conditional, milestone-based central funding show how the Centre links funds to reforms.

WHO health estimate: WHO estimated 5.5 crore hours saved daily for women and 400,000 diarrhoeal deaths prevented.

Jal Arpan handbook: A 15-day trial run with GP and VWSC members precedes handover of schemes, supported by dashboards and Jal Seva Ankalan.

Test yourself

True or false?

1 of 56

Statements the way Prelims prints them. Say first, then see the fact.

1.Jal Arpan involves the formal handover of completed rural water supply schemes to Gram Panchayats and Village Water and Sanitation Committees.
2.The Jal Arpan digital module was developed by the Department of Drinking Water and Sanitation.
3.Under Jal Jeevan Mission 2.0, Sujalam Bharat is used for geotagging of rural water supply assets.
4.Water quality testing demonstrations during Jal Arpan used Field Test Kits.
5.Jal Jeevan Mission is implemented by the Ministry of Rural Development.
6.Jal Jeevan Mission was launched in 2014 to provide tap water to every rural household.
7.The Jal Arpan module now provides Har Ghar Jal certificates only in Hindi and English.
8.Jal Jeevan Mission was launched in August 2019 and is implemented by the Department of Drinking Water and Sanitation under the Ministry of Jal Shakti.
9.JJM 2.0 shifts the mission from an infrastructure-centric approach to a service delivery model.
10.Under JJM 2.0, States can receive funds without signing any MoU, as long as the schemes are completed.
11.Schemes are validated against the Sujalam Bharat GIS-linked Asset Registry before funds are released to States.
12.Jal Utsav is organised in three tiers, with Lok Jal Utsav held at the State level.
13.Meghalaya is the twelfth State to sign a Reform-Linked MoU under Jal Jeevan Mission 2.0.
14.Jal Jeevan Mission 2.0 was approved by the Union Cabinet in March 2026.
15.The Cabinet has approved an additional outlay of ₹1.51 lakh crore for the Mission.
16.Under the reform-linked MoU, District Water Sanitation Missions are headed by the State Water Resources Secretary.
17.Jal Jeevan Mission is implemented by the Ministry of Jal Shakti through its Department of Drinking Water and Sanitation.
18.Jal Jeevan Mission has been extended till December 2028 with the approval of the Cabinet.
19.Jal Mahotsav 2026 was a 15-day campaign running from International Women's Day to World Water Day.
20.JJM 2.0 aims to move from a service-delivery approach to an infrastructure-creation approach.
21.The Guidelines say source sustainability is secondary to service delivery, so convergence on water conservation is optional.
22.The Union Cabinet approved Jal Jeevan Mission 2.0 on 10 March 2026.
23.Under JJM 2.0 the Mission period has been extended up to December 2028.
24.The reform-linked MoU mandates a Gram Panchayat-led, service-based model of rural water governance.
25.Jal Jeevan Mission was launched in 2019.
26.The MoUs under JJM 2.0 were signed with Gujarat, Haryana, Chhattisgarh, Himachal Pradesh and Goa.
27.Jal Jeevan Mission has been implemented since August 2019 by the Centre in partnership with States.
28.At the start of the Mission, about half of rural households had tap water connections.
29.Under JJM, responsibility for operation and maintenance of drinking water schemes lies with the State/UT governments.
30.The functionality assessment of tap connections under JJM is carried out by an independent third-party agency selected on standard statistical sampling.
31.The 2024 Functionality Assessment judged tap connections functional on quantity, quality and regularity, and found about 76% functional.
32.Jal Jeevan Mission is administered by the Ministry of Housing and Urban Affairs.
33.Jal Jeevan Mission 2.0 was approved by the Union Cabinet on 10 March 2026.
34.The reform-linked MoU signed by Uttar Pradesh covers 11 key structural reform areas.
35.Under the MoU, completed piped water schemes are to be handed over to Gram Panchayats or Village Water and Sanitation Committees through the Jal Arpan process.
36.The Decision Support System platform under the MoU was developed by the NITI Aayog for planning at district and GP levels.
37.Jal Utsav is a two-tier annual campaign held only at the national and State levels.
38.Jal Jeevan Mission has been extended till December 2028 with an enhanced outlay.
39.Under the MoU, completed piped water supply schemes are to be handed over to Gram Panchayats and VWSCs through the Jal Arpan process.
40.The Decision Support System platform was developed by the Ministry of Rural Development.
41.Jal Utsav includes Lok Jal Utsav at the Gram Panchayat level.
42.Jal Jeevan Mission is implemented by the Ministry of Jal Shakti through the Department of Drinking Water and Sanitation.
43.Jal Seva Aankalan is a Union-level audit carried out by the Ministry, with results published on the Jal Shakti portal.
44.The Jal Jeevan Mission has been extended up to December 2028 under JJM 2.0.
45.A Gram Panchayat may declare itself 'Har Ghar Jal' as soon as pipelines are laid, without any check on maintenance arrangements.
46.The central assistance approved for JJM has been raised from Rs 2.08 lakh crore to Rs 3.59 lakh crore.
47.Jal Utsav is a biennial event led by the Union Ministry of Jal Shakti to inaugurate new schemes.
48.In 2019, about 17 per cent of rural households had tap water connections, the baseline for JJM.
49.Jal Jeevan Mission is implemented by the Ministry of Housing and Urban Affairs.
50.Jal Jeevan Mission was launched in August 2019 to provide potable water to every rural household.
51.Under JJM, Gram Panchayats and Village Water and Sanitation Committees plan, implement, operate and maintain in-village water supply systems.
52.Under JJM, the benchmark for quality of piped water is the standard set by the World Health Organization.
53.States and UTs may use up to 2% of their annual JJM allocation for water quality monitoring and surveillance.
54.Under Jal Arpan, the handbook on community-managed piped water systems mandates a 15-day trial run involving GPs and VWSC members before handover.
55.Since drinking water is a Union subject, the Centre alone funds and builds JJM schemes.
56.Community water purification plants under JJM are meant as an interim measure in arsenic and fluoride affected habitations until compliant piped schemes are commissioned.

Written by us from the release, not by UPSC; checked by a second model.

Source: PIB, Ministry of Jal Shakti, 31 Aug, 20:01 IST · Release 294136

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Law and statutory body

IMEI Tampering and Telecommunications Act, 2023

GS3 Internal Security / CyberPrelims and Mains

Why in news: On 31 August 2026, the Department of Telecommunications cautioned citizens that IMEI tampering and misuse of telecom identifiers can bring up to three years' jail and a fine of up to ₹50 lakh under the Telecommunications Act, 2023.
What it is: The IMEI is a unique 15-digit number that identifies a mobile device on a network. Tampering with it lets devices run with altered identities and hampers tracing by police and networks. The Telecommunications Act, 2023 makes tampering with telecom identifiers a criminal offence.

Offence provision: Section 42(3)(c) bars tampering with telecommunication identifiers. Section 42(3)(e) bars getting SIMs or identifiers by fraud, cheating or impersonation.
Penalty: Imprisonment up to three years, a fine up to ₹50 lakh, or both.
Registration portal: Manufacturers and importers register IMEIs on the Device Setu–ICDR portal before sale or import.
SIM fraud offence: Section 42(3)(e) bars getting SIMs or identifiers through fraud, cheating or impersonation.
Nature of offence: Such offences are cognizable and non-bailable under Section 42(7).
Abetment: Under Section 42(6), those who abet or promote the offences face the same punishment.
Sanchar Saathi: Citizens can check a handset's brand, model and manufacturer details through the Sanchar Saathi platform.

Don’t confuse with IMEI vs TAC: The IMEI is the full 15-digit device number. The TAC is only its first eight digits and marks the model.

Don’t confuse with CEIR vs ICDR: CEIR is used to block lost or stolen phones. Device Setu–ICDR is used by manufacturers and importers to register IMEIs.

Don’t confuse with IMEI vs SIM: IMEI identifies the handset; the SIM identifies the subscriber. Tampering with the first and fraudulently getting the second are separate offences.

Don’t confuse with Section 42(3)(c) vs 42(3)(e): (c) covers tampering with identifiers; (e) covers obtaining SIMs or identifiers by fraud, cheating or impersonation.

No practice question for this one; the card may still help an answer. Why: Advisory restating Section 42 penalties; issue on file with no new provision.

Source: PIB, Ministry of Communications, 31 Aug, 20:06 IST · Release 294138

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Economy

Critical and Strategic Mineral Blocks auctions

GS3 Economy / MiningPrelims and Mains

Why in news: On 31 August 2026 the Ministry of Mines held a roadshow in Raipur for the 8th Tranche of Critical and Strategic Mineral Blocks auction. Five of the 20 blocks in the tranche are in Chhattisgarh.
What it is: The Critical and Strategic Mineral Blocks auctions are tranche-wise e-auctions of mineral blocks run by the Ministry of Mines with State governments. They aim to build domestic supply of minerals needed for clean energy, electronics and defence, and to cut import dependence. Blocks are offered as Composite Licences (exploration plus mining) or Mining Leases.

Tranche size: The 8th Tranche has 20 mineral blocks: 17 Composite Licence blocks and 3 Mining Lease blocks, across nine States.
Auction record so far: 88 critical and strategic mineral blocks have been offered, and 56 have been successfully auctioned.
Minerals on offer: Blocks include graphite, rare earth elements, vanadium, gallium, titanium, molybdenum, tungsten, potash, phosphorite and glauconite.
Exploration support: The NMEDT scheme partially reimburses exploration expenses of Composite Licence holders.
Unified Mining Portal: The portal is meant to ease doing business and coordinate Centre and States for faster approvals and operationalisation.
Legal basis: Auctions of mineral blocks are conducted under the Mines and Minerals (Development and Regulation) Act, 1957, as amended in 2015 and 2023.
Size of the eighth tranche: 20 blocks are on offer: 13 newly identified and 7 under the Second Attempt.
Cumulative progress: Across all tranches, 88 critical mineral blocks have been offered and 56 auctioned so far, as stated by the Ministry's Secretary.
Auction method: Online two-stage ascending forward auction. The preferred bidder is the one quoting the highest percentage of the value of mineral dispatched.
Total auctioned: 56 critical and strategic mineral blocks have been auctioned out of 88 unique blocks taken up by the Centre, a success rate of over 63%.
Seventh Tranche: The NIT was issued on 23 March 2026 offering 19 blocks. Ten were auctioned, with first-time blocks in Gujarat, Uttarakhand and Telangana.
Exploration Licence: The second EL tranche extended the framework to Arunachal Pradesh, Uttar Pradesh and Odisha for the first time. Cumulative EL blocks auctioned by the Centre are 11.
Minerals in tranche: The Seventh Tranche included graphite, rare earth elements, vanadium, titanium, glauconite and rock phosphate.
Who gets the revenue: Auction revenue goes to the State Governments where the blocks lie, even though the Centre conducts the auction.
Insurance Surety Bond: The Mineral (Auction) Amendment Rules, 2026 allow an Insurance Surety Bond as an alternative to bank guarantees.
Post-auction timelines: The Mineral (Auction) Second Amendment Rules, 2025 streamlined the timelines for performance security, upfront payment and Letter of Intent.

Don’t confuse with Composite Licence vs Mining Lease: A Composite Licence covers both exploration (prospecting) and mining; a Mining Lease is for mining in an already explored block.

Don’t confuse with NMET vs NMEDT: The National Mineral Exploration Trust (NMET) funds exploration; the release names the NMEDT scheme for partial reimbursement of exploration costs for Composite Licence holders. Check the exact name when it is asked.

Don’t confuse with Exploration Licence vs Composite Licence: An Exploration Licence is for exploration of critical and deep-seated minerals. A Composite Licence covers both exploration and mining in one grant.

Don’t confuse with Mining Lease vs Composite Licence: A Mining Lease allows mining of a block that is already explored. A Composite Licence covers exploration first and then mining in one grant.

Don’t confuse with Forward vs reverse auction: In a forward auction, bidders compete upward, as here on the percentage of value of mineral dispatched. In a reverse auction, bidders compete downward on price.

Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.

Why it matters

Builds domestic supply of minerals for clean energy, electronics and strategic industries, reducing import dependence.
Brings in private investment and State participation through transparent e-auctions.
Builds domestic supply of minerals for clean energy, electronics and defence, cutting import dependence.
Draws private investment and brings in State revenue through auction premiums.
Builds domestic supply of minerals needed for clean energy, electronics and defence, cutting import dependence.
Opens new states to exploration and draws private and public sector participation.
Builds domestic supply of minerals for clean energy, electronics and defence, and cuts import dependence.
Gives States revenue and draws private investment into exploration and mining.

Problems

Many auctioned blocks are slow to start production; 32 of the 88 offered blocks were not auctioned.
Moving from mining to processing and refining needs technology and supply chain capacity.
Many blocks go unsold, so a Second Attempt is needed: 56 of 88 auctioned.
Exploration risk, environmental and forest clearances, and local community concerns can delay mining.
Only about 63% of blocks offered found bidders, so some blocks stay unsold.
Auctioning a block does not ensure quick production, since clearances, exploration risk and processing capacity remain hurdles.
Limited availability and geographical concentration of critical minerals make supply chains fragile.
Blocks can stay unoperationalised because of delays in clearances, so auctions may not turn into output.

Way forward

Speed up clearances through the Unified Mining Portal and regular Centre-State reviews.
Link exploration support and auctions to processing, refining and value addition.
Do more exploration so that blocks come with better data and draw more bids.
Pair mining with processing, refining and recycling to build the full value chain.
Strengthen exploration data, and processing and refining capacity along with auctions.
Speed up clearances and give states a clear role, in line with the National Critical Mineral Mission.
Speed up post-auction approvals and keep simplifying auction rules.
Pair auctions with exploration, processing and recycling capacity.

Put in your answer

Value chain push: Officials stress moving beyond mining to processing, refining and value addition for resilient supply chains.

Auction progress: 88 critical mineral blocks offered across tranches, 56 auctioned: a data point on the reform's uptake and its limits.

Rare metal block: A West Bengal block offers lithium, cesium and rubidium, relevant to battery supply chains.

National Critical Mineral Mission: The auctions are cited as supporting the National Critical Mineral Mission's aim of cutting import dependence and building a pipeline of assets.

MMDR Act amendment, 2023: The amendment notified 24 critical and strategic minerals and enabled Central auctions of their leases and licences.

No practice question for this one; the card may still help an answer. Why: Roadshow for 8th tranche of auctions; auctions are a lasting topic but the roadshow is routine.

Source: PIB, Ministry of Mines, 31 Aug, 20:42 IST · Release 294139

Issue page →

Worth revising until Prelims 2028: most news questions come within two years of the event.

Quick facts

The 26th SCO Summit was held in Bishkek, Kyrgyz Republic, on 31 August 2026 under Kyrgyz chairmanship.
INS Nipun, the second Nistar-class Diving Support Vessel built by Hindustan Shipyard, was commissioned on 31 August 2026.

Source: PIB, 31 Aug

What we left out: 39 of 52 releases

Ceremonies and campaigns (9)
Same issue as another release (8)
Speeches without a decision (5)
Bilateral meetings, no decision (3)
Routine data releases (4)
Review meetings (1)
Seminars and webinars (3)
Small MoUs (2)
Routine commission hearings (1)
Success stories (1)
Routine seizures (1)
Condolences and ex-gratia (1)

Practise the day’s news

In UPSC’s formats, inside each issue. The answer and why come after you choose.

1Semicon 2.0 (India Semiconductor Mission)MCQ · 19 true or false · Mains
2Sone River water sharing and Inter-State CouncilMCQ · 5 true or false · Mains
3National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS)MCQ · 7 true or false
4India-MERCOSUR Preferential Trade AgreementMCQ · 7 true or false
5India's GDP growth and national income estimatesMCQ · 5 true or false · Mains
6UPI and Merchant Discount Rate (MDR) frameworkMCQ · 21 true or false · Mains
7Jal Jeevan Mission and Jal ArpanMCQ · 56 true or false · Mains

Mains question of the day

15 marks · 250 words

The Government has notified all six pillars of the Semicon 2.0 scheme, building on the first Semicon India Programme. Examine the main provisions of the scheme and discuss the challenges India faces in building a competitive and resilient semiconductor ecosystem.

From: Semicon 2.0 (India Semiconductor Mission)

Write and get it marked

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