UPSC Mains Current Affairs for 12 June 2025

SEBI Launches Verified UPI IDs to Curb Market Frauds and Enhance Investor Protection

June 12, 2025

UPI Reforms Latest News

The Securities and Exchange Board of India (SEBI) is set to introduce a validated UPI handle for the investor-facing intermediaries to ensure secure payments and combat fraud.

Introduction

In a major move to enhance investor safety and build trust in digital financial transactions, the Securities and Exchange Board of India (SEBI) has announced the mandatory use of verified UPI handles by all registered intermediaries in the securities market.
Effective from October 1, 2025, this new framework seeks to counter rising concerns over impersonation and payment fraud, particularly in online investment platforms.
This step, alongside the introduction of a digital verification tool named “SEBI Check,” marks a significant regulatory intervention to strengthen the integrity and transparency of India’s market payment systems.

The New UPI Verification Framework

As per SEBI’s guidelines, all market-facing intermediaries, including brokers, investment advisors, merchant bankers, and syndicate banks, must use a newly designated UPI handle format, ending in “@valid”, for collecting investor payments. For example, a broker's UPI might look like abc.bkr@validhdfc.
The new UPI addresses will be verified and allocated by the National Payments Corporation of India (NPCI), ensuring a secure and uniform identity structure for payment recipients.
According to SEBI, around 8,000 to 9,000 intermediaries are expected to transition to the new system by the rollout date.
Key Features of the New Framework:
- Mandatory Use: Only verified handles ending in “@valid” will be permitted for investor-facing transactions.
- Transitional Period: Existing UPI IDs can continue until December 11, 2026, after which they will be deactivated.
- Visual Confirmation: A green triangle with a thumbs-up icon will appear during transactions with verified handles, ensuring clarity for users, including those less fluent in English.

Introducing SEBI Check: A Digital Verification Tool

Complementing the new UPI system is the SEBI Check tool, a mobile application that allows investors to verify the legitimacy of UPI IDs used by market intermediaries.
By either scanning a QR code or manually entering the UPI ID, users can confirm critical account details such as:
- Account holder name
- Linked bank account number
- IFSC code
This initiative aims to empower investors to independently verify transaction endpoints before initiating payments, especially in an increasingly digital-first financial environment.
The SEBI Check app is expected to be made available on trusted platforms like Google Play, with SEBI collaborating to ensure that only authentic versions are hosted to avoid confusion or duplication by fraudulent developers.

Rationale Behind the Reform

The decision follows a January 2025 consultation paper and growing concerns about digital fraud in financial services.
With impersonation scams targeting retail investors via phishing UPI IDs or fake advisory firms, SEBI’s step seeks to:
- Eliminate ambiguity in digital payment systems.
- Reduce chances of investors transferring funds to unauthorized parties.
- Strengthen the digital infrastructure for market transactions.
By implementing an easily recognizable and standardized UPI format, SEBI aims to reduce the dependence on name-based verification, a method vulnerable to impersonation.

Awareness, Enforcement, and Oversight

The success of this initiative hinges on strong compliance and investor awareness.
SEBI Chairperson confirmed that intermediaries would be required to display the verified UPI details prominently on their platforms and communications. In addition:
- Awareness campaigns will run over the next two years.
- Intermediaries are required to educate users on secure payment practices.
- Investors must take individual responsibility to verify recipient credentials using SEBI’s tools.
Importantly, existing Systematic Investment Plans (SIPs) and standing instructions will not be affected immediately.
They will continue to function with current UPI details until the final cut-off in December 2026.

Future Outlook for Secure Digital Transactions

SEBI’s new mechanism could set a benchmark for secure digital financial transactions not only within capital markets but potentially across the broader fintech and mutual fund ecosystem.
By introducing structured payment identifiers and equipping retail users with real-time verification tools, the regulator seeks to future-proof India’s capital markets from fraud risks.
As digital adoption in investments accelerates, this reform aligns with global best practices of "Know Your Payee" and real-time account verification systems used by regulators in advanced economies.

Source: TH | TOI

SEBI Verified UPI ID Reform FAQs

Q1: What is SEBI’s new verified UPI ID initiative?

Ans: SEBI has mandated the use of verified UPI handles ending in “@valid” for registered intermediaries to prevent fraud.

Q2: When will the new UPI ID system become mandatory?

Ans: The verified UPI ID framework will be enforced starting October 1, 2025.

Q3: What is the SEBI Check app used for?

Ans: The SEBI Check tool helps investors verify UPI IDs and associated bank details before making payments.

Q4: Will my existing SIP payments be affected immediately?

Ans: No, existing SIPs will continue using old UPI IDs until December 11, 2026.

Q5: Who allocates the new verified UPI handles?

Ans: The National Payments Corporation of India (NPCI) is responsible for issuing the “@valid” UPI handles to intermediaries.

India’s Drone Defence Strategy: Swarms, Threats & Future Warfare

June 12, 2025

Drone Warfare in India Latest News

Former Army Chief General M M Naravane’s 2021 warning about the dangers of low-tech warfare remains highly relevant today.
Two recent incidents highlight this:
- Recently, Ukraine used cheap First Person View (FPV) drones to bomb five Russian airbases, showcasing how low-cost drones can bypass traditional air defences.
- In May, during the post-Operation Sindoor hostilities, Pakistan launched relentless drone swarm attacks across India’s western front.
These events underscore the urgent need to rethink air defence strategies in an era of asymmetric and low-cost drone warfare.

The Rise of Drone Warfare: A Strategic Shift

Drones, or Unmanned Aerial Vehicles (UAVs), trace back to World War II and the Korean War, mainly used for training and limited offensives.

Drone Swarms: The Future of Combat

Swarms are groups of drones that operate together, adapt in real time, and continue missions despite losses.
Their advantages include saturation attacks, real-time intel gathering, and coordinated strikes on high-value targets.
Future drone swarms, powered by artificial intelligence, will make autonomous decisions, adapt tactics, and integrate with ground and cyber warfare units.

Market Outlook

The global military drone market is booming — from $14.14 billion in 2023 to a projected $47.16 billion by 2032 — reflecting their growing role in modern warfare.

The Growing Threat of Drone Swarms

Chief of Defence Staff General Anil Chauhan warned about the increasing use of small, swarm-capable drones that are nearly undetectable and untargetable, posing a serious security challenge.

Asymmetric Advantage and Strategic Challenge

Swarm drones are cheap but deadly — capable of inflicting massive damage on high-value targets.
For example, a $1,000 drone can potentially destroy a $200 million aircraft.
Launching them from mobile platforms near sensitive sites makes defence difficult.

India’s Unique Vulnerabilities

With porous borders and diverse populations, India faces a high risk of such surprise attacks.
The ability to move drones covertly, as Ukraine did across Russian territory, illustrates the scale of the threat.

Need for Comprehensive Security Integration

Defending against swarm drones requires coordination across military, intelligence, and civil policing — even a local traffic constable could play a role in early detection.

Countering Drone Threats: Multi-Layered Defence Strategies

Detection is the First Line of Defence
- Modern anti-drone systems begin with detection using: AESA radars; Electro-optical & infrared sensors; Acoustic detectors; AI-powered sensor fusion systems.
Kinetic Neutralisation: Traditional but Costly
- Drones can be destroyed by missiles or anti-aircraft guns, but this method is expensive and inefficient against swarms.
- Automated systems like - C-RAM; Phalanx gun systems - are more effective for rapid engagement.
Emerging Cost-Effective Technologies
- To reduce defence costs, militaries are shifting toward:
  - Directed Energy Weapons (DEWs): Lasers & microwaves disable drones electronically.
  - Electronic Warfare (EW): Jams GPS/communication signals.
  - Spoofing: Misdirects drone navigation and commands.
  - Cyber Attacks: Hacks drones and crashes them remotely.
  - Interceptor Drones & Nets: Physically capture or disable hostile drones at close range.
The Challenge of Cost Asymmetry
- A drone swarm costing $100,000 may require millions to neutralise with missiles — making low-cost defensive options a priority.
The Layered Defence Model
- Optimal protection combines multiple technologies in layers for redundancy and cost-efficiency.
- Examples: Israel’s Iron Dome; US’s DE M-SHORAD
- India is also developing such integrated systems.

India’s Capabilities Against Drone Threats

Akashteer Air Defence Control System
- Developed by Bharat Electronics Ltd, it links with the Indian Air Force’s integrated command network for real-time airspace tracking and threat response.
Bhargavastra
- Created by Solar Defence and Aerospace Ltd, this system launches 64 micro-rockets in rapid salvos to destroy incoming drone swarms.
DRDO’s Anti-Drone System: Offers 360-degree radar coverage and dual-action neutralisation:
- Soft kill: Jamming communication and GPS signals
- Hard kill: Laser targeting
- Detects drones up to 4 km away and neutralises threats within a 1 km radius.
Indrajaal
- Developed by a Hyderabad-based startup, this AI-powered defensive grid uses a combination of jammers, spoofers, and real-time intelligence to secure up to 4,000 sq km.
- It is operational at Indian naval installations in Gujarat and Karnataka.

Looking Ahead: The Future of Drone Warfare and India’s Preparedness

Global Drone Arms Race
- There is an ongoing global race to enhance both drone and anti-drone technologies. For example:
  - Iran is producing 20+ Shahed drones daily, showcasing rapid scalability.
  - India has established a growing drone ecosystem, supported by 550+ startups, combining indigenous development and acquired technologies.
The New Face of War
- Future conflicts are expected to be:
  - Unmanned: With drones taking over many battlefield roles
  - AI-Driven: Enabling autonomous decision-making
  - Asymmetric: Where low-cost tech can target high-value assets
- CDS General Anil Chauhan emphasizes a paradigm shift:
  - “We are at a cusp where war may be between humans and machines — and tomorrow, between machines themselves.”
- This underscores the urgent need for resilient, AI-integrated defence systems to counter increasingly sophisticated threats.

Source: IE

Drone Warfare in India FAQs

Q1: What is drone warfare?

Ans: Drone warfare uses unmanned aerial vehicles (UAVs) for surveillance, attack, and strategic operations in modern conflicts.

Q2: Why are drone swarms dangerous?

Ans: Swarms are hard to detect, saturate defences, and can destroy high-value targets at very low costs.

Q3: How is India countering drone threats?

Ans: India uses a layered defence system combining radars, lasers, jammers, AI grids, and interceptor drones.

Q4: What is Operation Spider’s Web?

Ans: A Ukrainian drone operation using FPV drones to destroy Russian airbases and bombers deep inside Russia.

Q5: What’s the future of drone warfare?

Ans: AI-powered, autonomous swarms capable of complex coordination are reshaping global military doctrines and defence priorities.

Why India’s 2027 Census Matters: Economy, Governance & Policy Impact

June 12, 2025

Significance of Census in India Latest News

The Government of India will conduct the next Census in two phases during 2026 and 2027, with March 1, 2027, as the reference date.
This breaks the country’s uninterrupted decadal Census tradition since 1881, as the 2021 Census was delayed due to the Covid pandemic. The six-year delay is notably longer than in neighbouring countries (such as Pakistan, Bangladesh and Sri Lanka).
According to the Ministry of Home Affairs, the postponement was due to the pandemic’s impact on education, as about 30 lakh Census enumerators—mostly primary school teachers—could not be spared without disrupting schooling.

Census: A Cornerstone for Economy and Policymaking

The Census remains vital for India's economic planning and governance, far beyond the immediate political debates.

Foundation for All Data Collection

The national Census serves as the statistical bedrock for all other surveys and analyses in India, enabling accurate sampling and representation.

Comprehensive Snapshot of the Nation

Beyond counting individuals, the Census captures detailed data on demographics, economic status, education, migration, disability, language, and more—creating a holistic picture of India.

Reality Check and Historical Record

It acts as a mirror for the country, showing how India has evolved over time—in this case, over 16 years—and offering insights into likely future trends.

Critical for Informed Policymaking

Census data directly influences policies, welfare schemes, and developmental planning across sectors, ensuring that decisions are grounded in actual population needs.

Role of Census in Inflation Control and Interest Rate Policy

Guiding Monetary Policy Decisions
- The Reserve Bank of India’s Monetary Policy Committee relies on the retail inflation rate, based on the Consumer Price Index (CPI), to decide interest rates.
- CPI reflects how prices of goods and services change, with weights assigned based on consumption patterns—like food items comprising 46% of the index.
- These consumption patterns are derived from surveys, which in turn rely on Census data to ensure accuracy.
- The Census offers a baseline of “reality” about income, location, family structure, and migration.
Impact on Inflation Measurement
- Outdated Census data can skew inflation calculations.
- For instance, if food expenditure has fallen but CPI still uses older weights, it may overstate inflation, leading to unnecessarily high interest rates and slower economic growth.
Essential for Broader Economic Indicators
- Beyond food inflation, accurate Census data is vital for understanding migration, urbanisation, and demand trends, informing both public policy and private sector decisions.

Migration, Urbanisation, and the Role of Census in Governance

Internal Migration: A Key but Overlooked Factor
- Migration significantly affects population dynamics, yet is often ignored in projections which mainly rely on birth and death rates.
- Internal migration—mostly local—is a crucial third variable.
Nature of Internal Migration in India
- Contrary to popular belief, only 12% of internal migration is inter-state.
- Most migration is intra-district (62%) or inter-district (26%). Rural-to-rural migration is the largest category (48%), while urban-to-urban is the fastest growing.
Data Gaps and Changing Realities
- Current migration data is outdated, based on the 2011 Census. The actual patterns may have shifted significantly, requiring fresh Census data to reveal present realities.
Policy Implications of Migration Trends
- Accurate migration data informs Budget allocations, social welfare, employment, education planning, and helps address emerging issues like language-based social divides.
Urbanisation: Unclear and Under mapped
- India’s urbanisation rate is uncertain—estimates range from 30% to 70%, depending on definitions. This lack of clarity hampers targeted urban planning.
- As cities contribute 60% of India’s GDP while covering only 3% of land, understanding urban population trends is critical for reforming taxation, service delivery, and infrastructure development in urban areas.

Why There Is No Substitute for the Census

Surveys Depend on Census as a Base
- Public and private surveys require accurate, updated Census data for modelling.
- Without it, even the best-designed surveys risk becoming disconnected from reality.
Rising Cost of Accuracy
- With time, the absence of updated Census data makes it increasingly expensive and difficult to obtain a reliable picture of India’s ground realities.
Limitations of Administrative Data
- Although administrative data is growing in volume, it is often inconsistent, incomplete, and not comparable across departments or states due to differing definitions and collection methods.
Reliability Concerns and Bias
- Data gathered by government departments may be biased to avoid showing poor performance.
- For example, NFHS 2020–21 contradicted official claims of India being Open Defecation Free, showing 30% of surveyed households lacked toilets.
Census as the Gold Standard
- Only the Census offers a consistent, objective, and comprehensive snapshot of the country, forming the foundation for all credible data-based policymaking and governance.

Source: IE

Significance of Census in India FAQs

Q1: Why is the Census crucial for India?

Ans: It provides the statistical foundation for surveys, policy, welfare planning, and demographic analysis.

Q2: How does Census affect inflation policy?

Ans: Census data underpins consumption surveys that determine CPI weights and guide interest rate decisions.

Q3: What role does Census play in migration tracking?

Ans: It reveals true migration patterns, vital for budgeting, education, employment, and infrastructure planning.

Q4: Is there an alternative to the Census?

Ans: No. Administrative and survey data are inconsistent, biased, and unreliable without Census validation.

Q5: What happens without updated Census data?

Ans: Policies may be based on outdated assumptions, distorting economic priorities and social planning.