UPSC Mains Current Affairs for 12 October 2026

by Vajiram & Ravi - 12 October 2026

Vajiram & Ravi provides Daily UPSC Mains Current Affairs for 12 October 2026, tailored for aspirants. We cover all relevant news and events crucial for the exam, ensuring you stay updated & well-prepared.

UAPA Reform – Civil Liberties, Bail Provisions and Rule of Law

October 12, 2026
UAPA Reform

UAPA Reform Latest News

  • The second death anniversary of former Delhi University professor G.N. Saibaba on October 12 has renewed debate over the Unlawful Activities (Prevention) Act (UAPA), particularly its stringent bail provisions, broad definitions of offences and implications for civil liberties.

Overview of the UAPA

  • The Unlawful Activities (Prevention) Act, 1967 is India's principal legislation for preventing unlawful activities and addressing terrorism-related offences. 
  • It provides the legal framework for action against activities considered threats to India's sovereignty, integrity and security.
  • While national security is a legitimate state responsibility, the application of anti-terror legislation also raises questions concerning due process, individual liberty and safeguards against arbitrary detention.
  • The central challenge is to ensure that the law effectively addresses genuine security threats without creating undue restrictions on constitutional freedoms.

Concerns Regarding the Application of UAPA

  • Critics highlight several cases in which individuals accused under the UAPA spent extended periods in prison before their trials could begin or conclude.
  • Prolonged incarceration without trial
    • Professor G.N. Saibaba, who was severely physically disabled, was arrested in 2014 on allegations of links with Maoists. A trial court convicted him in 2017 and sentenced him to life imprisonment. The Bombay High Court acquitted him of all charges in 2024, after he had spent approximately a decade in prison. His health had deteriorated significantly, and he died soon after his release.
    • Such cases raise concerns about the consequences of lengthy pre-trial detention, particularly when judicial proceedings take years to progress.
  • Broad and ambiguous legal provisions
    • Critics also identify the meaning of membership of an unlawful organisation as an example of ambiguity within the law. Their argument is that broadly worded provisions can permit different interpretations of conduct, potentially extending their application beyond clearly established acts of violence.
    • Such ambiguity can increase the discretion available to investigating agencies and create uncertainty about the boundary between unlawful conduct and protected expression or association.

Stringent Bail Conditions and Judicial Interpretation

  • The UAPA imposes stringent restrictions on bail. Under Section 43D(5), bail may be denied where the court finds reasonable grounds for believing that the accusations are prima facie true.
  • Critics argue that this provision can make bail particularly difficult when proceedings are delayed and courts give substantial weight to the prosecution's case at the preliminary stage.
  • They also highlight inconsistent judicial approaches to interpreting the law and assessing delays in trials. Different courts have taken different positions on the scrutiny required of prosecution material and on whether prolonged incarceration constitutes excessive delay.
  • Also, they have raised concerns with respect to judicial decisions concerning the interpretation of membership and the definition of terrorism-related offences. These developments illustrate how judicial interpretation can substantially influence the practical scope of a criminal law.

Implications for Constitutional Governance

  • The identified concerns have implications for several principles of India's constitutional and legal framework.
  • Personal liberty: Article 21 protects life and personal liberty, subject to procedure established by law. Prolonged detention without timely trial raises questions about the effective protection of this right.
  • Due process: Criminal proceedings must operate through fair legal procedures, with meaningful judicial scrutiny and safeguards against arbitrary action.
  • Rule of law: Legal provisions should be sufficiently clear to enable consistent interpretation and limit arbitrary or excessive discretion.
  • Judicial independence: Courts play a critical role in reviewing detention, interpreting statutory provisions and protecting individual rights.
  • Balance between security and liberty: The State must address terrorism and threats to national security while ensuring that enforcement powers remain subject to legal and constitutional safeguards.

Reform Priorities

  • Critics call for a fundamental reconsideration of the UAPA's provisions and their judicial application. The following priorities emerge from the analysis:
  • Greater legal clarity: Ambiguous terms and broadly framed offences require clearer interpretation to reduce uncertainty and excessive discretion.
  • Timely trials: Effective case management and adequate judicial capacity are important to prevent prolonged pre-trial detention.
  • Consistent bail jurisprudence: Courts should apply coherent principles when evaluating prosecution evidence, bail applications and delays in proceedings.
  • Meaningful judicial scrutiny: The application of stringent bail restrictions should remain subject to careful examination of the material placed before the court.
  • Protection of civil liberties: Anti-terror legislation should be implemented in a manner consistent with constitutional rights and the rule of law.

Source: TH

UAPA Reform FAQs

Q1: What is the UAPA?

Ans: The Unlawful Activities (Prevention) Act, 1967, is legislation intended to prevent unlawful activities and address terrorism-related offences.

Q2: What is the main concern regarding Section 43D(5) of the UAPA?

Ans: Section 43D(5) imposes stringent restrictions on bail when the court finds reasonable grounds for believing that the accusations are prima facie true.

Q3: Why has the UAPA attracted debate over civil liberties?

Ans: Concerns include broad legal definitions, prolonged pre-trial detention, restrictive bail conditions and inconsistent judicial interpretations.

Q4: How does prolonged pre-trial detention affect the rule of law?

Ans: It can undermine the practical protection of personal liberty and raise concerns about timely justice and fair legal proceedings.

Q5: What is the central challenge in reforming the UAPA?

Ans: The central challenge is to ensure effective national security enforcement while protecting constitutional rights, due process and judicial safeguards.

US-Russia Diesel Deal: What Trump’s U-Turn Means for India

October 12, 2026
US-Russia Diesel Deal

US-Russia Diesel Deal Latest News

  • The US has for years pressured India over its purchases of Russian crude oil, imposing penal tariffs and passing laws threatening up to 100% tariffs on major buyers of Russian energy. 
  • Washington’s argument: such purchases effectively fund Russia’s war in Ukraine. 
  • In a striking reversal, President Donald Trump has now announced a deal allowing Russia to supply diesel to the US and global markets — exposing a glaring contradiction in US policy, and strengthening India’s case for continuing its own energy choices.

Why the US Needs Russian Diesel Now

  • Diesel’s Economic Importance: It powers long-haul trucking, agriculture, and construction — making price spikes politically sensitive and inflationary.
  • The Immediate Trigger: Diesel prices in the US and Europe have surged, driven by constrained fuel movement through the Strait of Hormuz and attacks on Russia’s oil and gas infrastructure.
    • US diesel prices hit record levels of ~$6.5/gallon.
    • With US midterm elections approaching, the Trump administration faces pressure to show action on fuel prices.

Sequence of Events

  • Trump had pressured Europe to release diesel stockpiles and even threatened a US diesel export ban.
  • Last week, the G7 agreed to release 100 million barrels of crude and petroleum products (including diesel) from emergency reserves.
  • Trump then reversed his export-restriction stance and announced the Russia diesel deal.

Details of the Deal

  • According to Trump:
    • Russia will immediately supply 300,000+ tonnes of diesel to the US and other countries.
    • 500,000 tonnes more in November.
    • One million tonnes shortly after.
    • A further three million tonnes “within a short period”, depending on Russia’s refinery conditions.
    • The US issued a general licence, temporarily authorising transactions for Russian-origin diesel sale, delivery, and import until April 7 next year.
  • Will it actually bring prices down? Experts are doubtful:
    • The additional volumes are far smaller than the global diesel supply disruption.
    • Constraints remain: Russia’s own export restrictions, Ukrainian drone strikes on its refineries, and tanker shortages.
    • The deal may ease short-term anxiety but is not a lasting fix.

India’s Russian Oil Dependence

  • Russian oil made up nearly half of India’s oil imports in August 2026. This was not always the case. 
  • Much of the West began shunning Russian oil after its February 2022 invasion of Ukraine. This prompted Moscow to offer discounted crude, which India purchased.
  • Imports fell after the US sanctioned Rosneft and Lukoil, as India sought a trade deal with the US (including scrapping a 25% penal tariff).
  • By February 2026, India’s Russian crude imports had halved from its 2025 peak of over 2 million bpd — yet Russia still remained India’s largest crude source, at about one-fifth of total imports.
  • Imports rose again as the West Asia conflict squeezed Strait of Hormuz supplies; the US even issued sanctions waivers to keep markets supplied.
  • The legal squeeze: In September 2026, Trump signed the “Lindsey O. Graham Sanctioning Russia and Iran Act of 2026”, enabling up to 100% tariffs on countries (including India and China) buying Russian oil/gas — though the law lets the US President waive its provisions.

The Core Contradiction — and India’s Opening

  • Trump’s diesel deal generates revenue for Moscow, exactly as India’s crude purchases do — undercutting Washington’s own stated rationale for punishing India. 
  • This gives India a strong diplomatic argument. India can cite this deal directly in consultations with the US over Russian oil sanctions and push for waivers under the Graham Act.
  • The US’s likely counter-argument: It may frame its diesel licence as a response to exceptional market conditions, not a departure from its general Russia policy. 
  • But India can push back — as the world’s third-largest crude importer, with import dependency over 88%, India’s energy security needs are no less real than America’s.

Conclusion

  • Trump’s Russian diesel deal lays bare an uncomfortable truth: US sanctions on Russian energy have been applied selectively, bending whenever domestic political and economic pressures demand it. For India, this is more than an irony to point out — it is a concrete diplomatic lever. 
  • As a nation far more dependent on energy imports than the US, India can now press Washington to judge its Russian oil purchases by the same standard it applies to itself: pragmatic necessity, not punitive politics.

Source: IE

US-Russia Diesel Deal FAQs

Q1: Why did the US announce the US-Russia diesel deal?

Ans: The US-Russia diesel deal followed surging diesel prices, disrupted fuel supplies and domestic political pressure, prompting Washington to permit temporary transactions involving Russian-origin diesel.

Q2: What are the key provisions of the US-Russia diesel deal?

Ans: The US-Russia diesel deal envisages phased Russian diesel supplies to the US and other markets, supported by a temporary general licence valid until April 7.

Q3: Why does the US-Russia diesel deal matter for India?

Ans: The US-Russia diesel deal gives India a diplomatic argument that Washington permits Russian energy purchases when domestic economic pressures make supplies strategically necessary.

Q4: How dependent is India on Russian crude oil?

Ans: Russian crude accounted for nearly half of India's oil imports in August 2026, after fluctuating in response to sanctions, discounted supplies and West Asian disruptions.

Q5: How can India use the US-Russia diesel deal in energy diplomacy?

Ans: India can cite the US-Russia diesel deal during consultations with Washington, seeking sanctions waivers and arguing that its high import dependence makes affordable energy essential.

Quantum Computing in Banking: The Next Big Cybersecurity Threat

October 12, 2026
Quantum Computing in Banking

Quantum Computing in Banking Latest News

  • While artificial intelligence (AI) dominates current cybersecurity concerns, a far bigger, longer-term threat is quietly emerging for the banking sector: quantum computing. 
  • Financial institutions and regulators worldwide, including in India, have already begun preparing for this threat — years before it is expected to fully materialise.

Current Cybersecurity Push in Indian Banking

  • Before quantum enters the picture, regulators have already stepped up conventional cyber preparedness:
    • The Reserve Bank of India (RBI) issued a new cybersecurity and technology-resilience framework for commercial banks in July 2026, covering IT governance, cyber-risk management, and incident response.
    • The Securities and Exchange Board of India (SEBI) introduced an IT Resilience Index in August 2026 for market infrastructure institutions, to measure robustness of critical IT systems and spot weaknesses early.

About Quantum Computing

  • Traditional computers store data as a bit (value 0 or 1). Quantum computers use a qubit (quantum bit), which can exist as a combination of 0 and 1 — a property called superposition.
  • Qubits also exhibit entanglement, where states of different qubits become closely correlated.
  • Quantum algorithms exploit these properties to amplify correct answers and suppress wrong ones, giving quantum computers a massive computational edge for certain problems.
  • It can solve in minutes or hours what classical computers would take millennia to complete.

Why This Threatens Bank Encryption

  • Modern cryptography relies on mathematical problems that are extremely hard for classical computers to solve. Some widely used public-key systems are:
    • RSA (Rivest–Shamir–Adleman): relies on difficulty of factoring large numbers.
    • Elliptic-curve cryptography: relies on difficulty of discrete-logarithm problems.
  • India’s financial ecosystem is deeply digitised through UPI, Aadhaar, RTGS, and NEFT — all underpinned by such cryptography.
  • The threat isn’t that quantum computers would directly hack a payment system. Instead, they could undermine the cryptographic building blocks used for authentication, secure communication, key exchange, and digital signatures across digital infrastructure.
  • Experts explained: by 2029–2030, quantum computers could become powerful enough to decrypt historical encrypted data — a point often called the quantum deadline.

Why Banks Can’t Wait

  • The key reason for acting now is a threat called “Harvest Now, Decrypt Later” (HNDL):
    • Attackers can intercept and store encrypted data today, planning to decrypt it later once powerful quantum computers exist.
    • This makes long-term confidential data especially vulnerable.
    • As per the Digital Threat Report 2025–26 (by CERT-In), while full-scale quantum threats haven’t arrived, HNDL strategies are already active.
  • The solution: Transition to Post-Quantum Cryptography (PQC) — encryption algorithms resistant to quantum attacks — before the threat fully emerges.
  • Preparation involves:
    • Creating an inventory of cryptographic systems in use.
    • Identifying the most sensitive/critical data.
    • Testing quantum-resistant algorithms.
    • Working with technology vendors.
    • Building Crypto-agility — the ability to switch cryptographic standards without a complete system rebuild. This matters because bank infrastructure spans legacy systems, cloud platforms, third-party vendors, and payment networks.

How Imminent Is the Threat?

  • India currently has only a handful of quantum computers, mostly under 10 qubits, developed by institutions like IISc Bengaluru and startups like QpiAI.
  • India’s National Quantum Mission (launched 2023) aims to scale from 20–50 physical qubits initially to larger systems over time.
  • Globally, NIST (US) has already finalised PQC standards; the G7 has a roadmap for financial-sector transition; the EU wants member states to begin transition by end-2026, with high-risk systems migrated by end-2030.

India’s Quantum-Safe Roadmap

  • The Department of Science and Technology’s roadmap for banking/financial services/insurance envisages: 
    • Foundational work by 2027; 
    • Migration of high-priority systems by 2028; and 
    • Full PQC adoption by 2029.
  • RBI’s Quantum Secure and Adaptive Financial Ecosystem (Q-SAFE) expert committee is examining quantum’s implications for finance and recommending a roadmap.
  • NITI Aayog’s 2025 roadmap for a quantum-powered economy identifies financial modelling, fraud detection, and encryption as key application areas.
  • This creates a dual policy challenge for India: protecting digital infrastructure from the quantum threat while simultaneously building domestic quantum capabilities for economic gain.

Conclusion

  • Quantum computing represents a slow-building but potentially severe threat to the cryptographic backbone of digital finance — not because it will “hack” banks directly, but because it could eventually break the encryption securing decades of sensitive data. 
  • The “Harvest Now, Decrypt Later” risk makes early action non-negotiable, which is why India, alongside global regulators, is already laying out phased roadmaps toward post-quantum cryptography. 
  • The challenge ahead is as much about building domestic quantum capability as it is about defending against it.

Source: IE

Quantum Computing in Banking FAQs

Q1: Why is quantum computing a threat to banking security?

Ans: Quantum computing in banking threatens widely used public-key encryption, potentially exposing authentication, secure communications, key exchanges and digital signatures across financial infrastructure.

Q2: What is the “Harvest Now, Decrypt Later” threat?

Ans: Quantum computing in banking raises this risk because attackers can store encrypted financial data today and attempt to decrypt it once sufficiently powerful quantum computers become available.

Q3: What is post-quantum cryptography?

Ans: Post-quantum cryptography uses encryption algorithms designed to resist quantum attacks, helping banks protect sensitive information before powerful quantum computers threaten existing cryptographic systems.

Q4: What is India's proposed timeline for quantum-safe banking?

Ans: India's roadmap envisages foundational work by 2027, migration of high-priority systems by 2028 and full post-quantum cryptography adoption by 2029.

Q5: How can banks prepare for quantum computing threats?

Ans: Banks should inventory cryptographic systems, identify sensitive data, test quantum-resistant algorithms, coordinate with technology vendors and develop crypto-agility for future security upgrades.

Right to be Forgotten

October 12, 2026
Right to be Forgotten

What’s in today’s article?

  • Why in News?
  • What is the Right to be Forgotten?
  • How is the 'Right to be Forgotten' Interpreted in India?
  • When can the ‘Right to be Forgotten’ be Asserted?
  • Questions to be Addressed by the SC in the ‘Right to be Forgotten’ Case

Why in News?

  • The Supreme Court agreed to hear a case by online legal chronicler (Indian Kanoon), whose outcome will likely shape the contours of the “right to be forgotten”.
  • The online portal challenged a Madras HC order, which after reversing a trial court judgment convicting a person of sexual assault charges, had directed the portal to remove the conviction judgment.

What is the Right to be Forgotten?

  • It is the right to have publicly available personal information removed from the internet, search engines, databases, websites or any other public platforms.
  • One can seek this right when their personal information is no longer necessary or relevant and the presence of his/her digital footprint violates their right to privacy.
  • This right has been recognised as a statutory right in the EU (as “right to erasure”) under the General Data Protection Regulation (GDPR) and has been upheld by a number of courts in the UK and elsewhere in Europe.

How is the 'Right to be Forgotten' Interpreted in India?

  • Position in India:
    • In India, there is no statutory framework that prescribes the right to be forgotten.
    • However, the Personal Data Protection Bill 2019 and court rulings have expressly recognised this right.
  • The Personal Data Protection (PDP) Bill 2019:
    • The Bill gave an individual the right to restrict or prevent the continued disclosure of their personal data when such data -
      • Has served the purpose for which it was collected.
      • Was made with the individual's consent, which has since been withdrawn.
      • Was made contrary to the PDP Bill or any law in force.
  • The court rulings:
    • The SC in the landmark KS Puttaswamy or Right to privacy judgement (2017) recognised that the right to control his/her own life would also encompass his/her right to control their existence on the internet.
    • Since the right to privacy verdict, high courts have taken a broader view of the issue. For example,
      • In 2019, the Delhi HC said the “right to be forgotten” and “right to be left alone” are inherent aspects of the right to privacy.
      • In 2021, the Delhi HC extended the right to be forgotten to even a criminal case by ruling to take down search results relating to an American law student (acquitted in a customs case).
      • In 2020, the Orissa HC held that the right to be forgotten is a thorny issue in terms of practicality and technological nuances and needs a widespread debate.

When can the ‘Right to be Forgotten’ be Asserted?

  • The SC of India clarified in its right to privacy decision that -
    • An individual should be able to remove his/her personal data, if such data or information is no longer necessary, relevant or incorrect and serves no legitimate interest.
    • This right cannot be exercised where the information or data is
      • Necessary for exercising the right of freedom of expression,
      • In compliance with legal obligations,
      • In public interest, etc.
  • The Delhi HC also noted that the right to privacy should be balanced with the right to information of the public and maintenance of transparency in judicial records.
  • Therefore, the issue underscores the tension between the “right to be forgotten” of the acquitted person and citizens’ “right to be informed”.

Questions to be Addressed by the SC in the ‘Right to be Forgotten’ Case:

  • The top court has to decide whether the right to be forgotten is a fundamental right and, if so, how it relates to other fundamental rights guaranteed by the Constitution of India.
  • Two questions before the SC:
    • Can a person, upon reversal of his conviction in a criminal case by a higher court, demand erasure from the websites the earlier judgement that had convicted him/her?
    • Would a higher court that acquits an accused in a criminal case (by reversing the earlier judgement) be within its jurisdiction to order a web portal to expunge the earlier conviction judgement to honour the acquitted person’s right to be forgotten?

Q.1. How the Supreme Court of India significantly expanded citizens' fundamental rights?

The Supreme Court has by judicial interpretation expanded the scope of the fundamental rights, particularly in relation to Article 21, and this has included more civil and political rights which were not explicit in Part III of the Constitution.

Q.2. What is the General Data Protection Regulation (GDPR)?

GDPR is a European Union (EU) regulation on information privacy in the EU and the European Economic Area. It lists the rights of the data subject, meaning the rights of the individuals whose personal data is being processed.

Source: Can right to be forgotten beat right to info? SC to decide | IE

Non Performing Assets (NPAs)

October 12, 2026
Non Performing Assets (NPAs)

What’s in today’s article?

  • Why in News?
  • What are Non-Performing Assets (NPAs)?
  • Key Highlights of the NPA Crisis in India
  • Impact on the Banking Sector
  • Conclusion

Why in News?

  • India's banking system has been grappling with an alarming surge in non-performing assets (NPAs).
  • A recent investigation (by The Indian Express) revealed that a staggering 43% of total NPAs as of March 2019 - amounting to ₹4.02 lakh crore - was owed by just 100 companies.
  • This highlights systemic issues and the concentration of bad loans among a few prominent borrowers.

What are Non-Performing Assets (NPAs)?

  • Definition: A NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.
    • For banks, a loan is an asset because the interest paid on these loans is one of the most significant sources of income for the bank.
    • When customers, retail or corporates, are not able to pay the interest, the asset becomes ‘non-performing’ for the bank because it is not earning anything for the bank.
    • Therefore, the RBI has defined NPAs as assets that stop generating income for banks.
    • Banks are required to make their NPAs numbers public and to the RBI as well from time to time.
  • Classification of assets: As per the RBI guideline, banks are required to classify NPAs further into -
    • Substandard assets: Assets which have remained NPA for a period less than or equal to 12 months.
    • Doubtful assets: An asset that has remained in the substandard category for a period of 12 months.
    • Loss assets: It is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some recovery value.
  • NPA Provisioning: Provision for a loan refers to a certain percentage of loan amount set aside by the banks.
    • The standard rate of provisioning for loans in Indian banks varies from 5-20% depending on the business sector and the repayment capacity of the borrower.
    • In the cases of NPA, 100% provisioning is required in accordance with the Basel-III norms.
  • GNPA and NNPA: There are primarily two metrics that help us to understand the NPA situation of any bank.
    • GNPA: It is an absolute amount that talks about the total value of gross NPAs for the bank in a particular quarter or financial year as the case may be.
    • NNPA: Net NPAs subtracts the provisions made by the bank from the gross NPA. Therefore, net NPA gives the exact value of NPAs after the bank has made specific provisions for it.
  • NPA Ratios: NPAs can also be expressed as a percentage of total advances. It gives us an idea of how much of the total advances is not recoverable. For example,
    • GNPA ratio is the ratio of the total GNPA of the total advances.
    • NNPA ratio uses net NPA to find out the ratio to the total advances.

Key Highlights of the NPA Crisis in India:

  • Timeline of NPAs:
    • Peak in 2018: NPAs reached a historic high of ₹10.36 lakh crore.
    • Decline: NPAs reduced to ₹5.71 lakh crore by March 2023, aided by write-offs by banks.
    • RTI revelation: The list of top defaulters was accessed under the Right to Information Act after a four-year legal battle, highlighting reluctance from the Reserve Bank of India (RBI) to disclose such information.
  • Extent of NPAs:
    • Gross NPAs: Scheduled commercial banks (SCBs) recorded gross NPAs of ₹9.33 lakh crore as of March 31, 2019, the 2nd-highest in Indian banking history.
    • Top defaulters: The top 100 defaulters alone accounted for ₹8.44 lakh crore in total debt, of which nearly 50% was declared as NPAs.
    • Sectoral analysis: Three sectors - manufacturing, energy, and construction - dominated, contributing over 50% (₹4.58 lakh crore) of the total debt of the top 100 defaulters.
  • Sector-wise breakdown of defaulters:
    • Energy sector: 34 companies
    • Manufacturing sector: 32 companies
    • Construction and real estate: 20 companies
    • Telecom: 5 companies
    • Other sectors: 9 companies
  • Quantum of debt (Top defaulters):
    • Bhushan Power & Steel Limited: ₹41,400 crore.
    • Essar Steel India Limited: ₹69,360 crore (later acquired by ArcelorMittal Nippon Steel India Limited in 2019).
    • Other major defaulters: Reliance Communications (₹46,659 crore), Videocon Industries (₹58,052 crore), and Jaiprakash Associates (₹36,591 crore).

Impact on the Banking Sector:

  • Ongoing debt concerns (2023):
    • Outstanding debt: By March 2023, 51 of these 100 companies still carried debts of ₹3.58 lakh crore, indicating persistent financial stress.
    • These defaulters span crucial sectors: Like oil & gas, thermal and hydro power, mining, shipbuilding, and infrastructure development.
  • Limited recoveries:
    • 82 of the top 100 entities are under bankruptcy, with one-third undergoing liquidation, significantly reducing recovery prospects.
    • High-profile companies like Jet Airways, Gitanjali Gems, and IL&FS subsidiaries feature prominently in the defaulter list, indicating minimal returns for lenders.
  • Curb investment:
    • Banks lack enough funds to lend for other productive activities in the economy.
    • To maintain their profits, banks may need to raise interest rates.
    • Reduced investments could lead to higher unemployment rates.

Conclusion:

  • The concentration of bad loans among a few corporate giants raises concerns about governance and accountability in India’s banking system.
  • While recovery efforts are ongoing, the NPA crisis underscores the need for stronger regulatory oversight and improved lending practices to prevent similar episodes in the future.

Q.1. What is the Prompt Corrective Action (PCA) framework?

Revised in 2017, the PCA framework monitors banks' financial health and imposes restrictions if they fall below certain thresholds.

Q.2. What is Corporate Debt Restructuring (CDR)?

Introduced in 2001, the CDR is a voluntary mechanism that extends the repayment period and reduces interest rates.

Source: Express RTI: Top 100 defaulters accounted for 43% of total NPAs, over Rs 4 lakh crore in total

What is Disinvestment?

October 12, 2026
What is Disinvestment?

What’s in today’s article?

  • Why in news?
  • Disinvestment
  • What is Disinvestment?
  • Evolution of Disinvestment in India
  • What are the benefits of Disinvestment?
  • Why disinvestment is often criticised?
  • How has disinvestment fared in recent years?
  • News Summary: Govt. Concedes Disinvestment Stalled by Multiple Challenges
  • What are the key obstacles to the disinvestment process?

Why in news?

  • The Finance Ministry has publicly acknowledged the numerous challenges it is facing in its efforts to privatise public sector enterprises (PSEs) and raise funds through minority stake sales.
  • Last month, the ministry had reduced the government’s disinvestment target for 2023-24 to a nine-year low of ₹51,000 crore.

Disinvestment

What is Disinvestment?

  • About
    • Disinvestment means sale or liquidation of assets by the government, usually Central and state public sector enterprises, projects, or other fixed assets.
    • In some cases, disinvestment may be done to privatise assets. However, not all disinvestment is privatisation.
      • In complete privatisation, 100% control of the company is passed on to the buyer.
  • Objectives
    • Reducing the fiscal burden on the exchequer
    • Improving public finances
    • Encouraging private ownership
    • Funding growth and development programmes
    • Maintaining and promoting competition in the market

Evolution of Disinvestment in India

  • Disinvestment in India began in 1991-92 when 31 selected PSUs were disinvested for Rs. 3,038 crores.
    • The term ‘disinvestment’ was used first time in Interim Budget 1991.
  • Later, Rangarajan committee, in 1993, emphasised the need for substantial disinvestment. 
  • The policy on disinvestment gathered steam, when a new Department of Disinvestment was created in 1999, which became a full Ministry in 2001.
    • Ministry of Disinvestment was formed in 2001
  • But in 2004, the ministry was shut down and was merged in the Finance ministry as an independent department.
  • Later, the Department of Disinvestments was renamed as Department of Investments and Public Asset Management (DIPAM) in 2016.
    • Now, DIPAM acts as a nodal department for disinvestment. 

What are the benefits of Disinvestment?

  • Helps government with the money
    • Govt also uses disinvestment proceeds to finance the fiscal deficit, to invest in the economy and development or social sector programmes.
  • Beneficial for long term growth
    • Disinvestment can be helpful in the long-term growth of the country as it allows the government and even the company to reduce debt.
  • Encourages private ownership of assets
    • Disinvestment also encourages private ownership of assets and trading in the open market.
    • Private ownership of assts often brings efficiency and increases the profitability.
      • E.g., Hindustan Zinc was acquired by Vedanta in 2022. Since then, it has seen 100 fold increase in profits on the back of six fold expansion in capacities.
  • Often releases large amount of public resources
    • Disinvestment releases large amount of public resources (tangible & intangible both) such as manpower, assets etc.
    • These resources can be re-deployed in high priority social sector. 

Why disinvestment is often criticised?

  • Loss of regular payments to the government
    • Profit making PSUs pay dividend to the govt at regular interval.
  • Can create private monopoly
    • Disinvestment might create private monopoly in place of public monopoly.
    • E.g., Disinvestment of VSNL to TATA, IPCL to Reliance
  • Vague classification of strategic and non-strategic sectors
    • Many proponents claim that govt should retain its presence in strategic sector which going for disinvestment in non-strategic sectors. 
    • However, the classification of strategic and non-strategic sector is not done properly. 
    • E.g., Strategic disinvestment in Oil sector might threaten the energy security of India.
  • Faulty model
    • Using disinvestment funds to bridge the fiscal deficit has been termed as a faulty model by many analysts.
    • It is equivalent to selling family silver to meet short term goals.

How has disinvestment fared in recent years?

  • Disinvestment receipts so far this year amount to just ₹35,282 crore, as opposed to a Budget target of ₹65,000 crore and revised estimates of ₹50,000 crore.
  • According to the recently release Economic Survey report, about ₹4.07 lakh crore has been realised as disinvestment proceeds in the past nine years.
    • Post-2014 the government is engaging with the private sector as a co-partner in the development.
  • So far, different central governments over the last three decades have been able to meet annual disinvestment targets only six times.

News Summary: Govt. Concedes Disinvestment Stalled by Multiple Challenges

What are the key obstacles to the disinvestment process?

  • Global challenges
    • The Finance Ministry has noted that the COVID-19 pandemic seriously impacted transactions in 2020 and 2021.
    • It was followed by the Ukraine conflict last year.
    • These events hurt minority stake sales as well as strategic sales as financial capacity and risk-reward options of potential bidders turned worse.
  • Internal challenges
    • Strategic disinvestment transactions have to deal with matters such as:
      • resolving land title, lease and land use issues with State government authorities;
      • disposal of non-core assets, excess manpower and labour unions, protection of process and functionaries etc.
  • Challenges posed by employees’ unions
    • Multiple court cases filed by employees’ unions and other interest groups against the disinvestment policy as well as specific transactions were also hindering deals.
  • Challenges to disinvestment through minority stake sale
    • These include: 
      • Reduced availability of government stake over 51% for large listed central PSEs; 
      • Relatively muted perception of investors in these stocks as compared to private sector peers; 
      • Price overhang in the market due to high disinvestment target and 
      • frequent use of exchange traded funds (ETF) route for stake sale till 2019-20.
        • ETF is a type of investment fund that is traded on stock exchanges like individual stocks.

 

Q1) What is the purpose of disinvestment?

 Disinvestment is aimed at reducing the financial burden on the government due to inefficient PSUs and to improve public finances. It introduces competition and market discipline and helps to depoliticize non-essential services.

Q2) What is Exchange traded fund (ETF)?

An Exchange Traded Fund (ETF) is a type of investment fund that is traded on stock exchanges like individual stocks. It is a collection of assets such as stocks, bonds, or commodities, that is designed to track the performance of a particular market index, sector, or asset class. ETFs are similar to mutual funds in that they provide investors with a diversified portfolio of assets, but they differ in that ETFs trade on an exchange like stocks, allowing for intra-day trading and pricing transparency.

Source: Govt. concedes disinvestment stalled by multiple challenges | DIPAM | Financial Express | Deccan Herald

Juvenile Justice Act: How Can a Juvenile Be Tried as an Adult in Court?

October 12, 2026
Juvenile Justice Act: How Can a Juvenile Be Tried as an Adult in Court?

What’s in today’s article?

  • Why in News?
  • How does a Child get Tried as an Adult?
  • What are the Responsibilities of the JJB?
  • What are the Issues with the Process?

 

Why in News?

  • The National Commission for Protection of Children (NCPCR) has recently issued guidelines for conducting a preliminary assessment by the Juvenile Justice Board (JJB) under the Juvenile Justice Act, 2015 (JJ Act, 2015).
  • This preliminary assessment is to ascertain whether a juvenile can be tried as an adult.

 

 

How does a Child get Tried as an Adult?

  • Replacing the JJ Act 2000, the Act of 2015 provided (for the first time) for trying juveniles in the age group of 16-18 as adults in cases of heinous offences.
  • The Act has categorised the offences committed by children into three categories - petty offences, serious offences, and heinous offences.
  • Section 15 of the JJ Act: In case of a heinous offence allegedly committed by a child (in the age group of 16-18), the JJB shall conduct a preliminary assessment regarding -
    • His mental and physical capacity to commit such offence,
    • Ability to understand the consequences of the offence and
    • The circumstances in which he allegedly committed the offence.
  • Section 18 (3) of the JJ Act: If the JJB, after preliminary assessment, passes an order that there is a need for trial of the said child as an adult, then the JJB may order the transfer of the case to the Children’s Court.
  • Thus, the sole objective of having such a preliminary assessment is to determine whether a child within the age group of 16-18 years should be tried as an adult in case of heinous offences.

 

What are the Responsibilities of the JJB?

  • The JJB shall be responsible for the preliminary assessment and provide the child, the child’s family, and their counsel a copy of the order.
  • In case the JJB does not have at least one member who is a practitioner with a degree in child psychology or child psychiatry, the JJB shall take the assistance of psychologists or experts.
  • The child should also be provided with a legal aid counsel through the District Legal Services Authority who shall be present during the preliminary assessment.
  • Experts, who have the required qualification to assist the JJB, to undergo training concerning Section 15 of the JJ Act, 2015
  • During the preliminary assessment, the Board and experts shall also analyse and take into consideration the Social Investigation Report (SIR)/Social Background Report (SBR).
    • SIR is prepared by the Probation officer or Child Welfare Officer or any social worker after interaction with the child or child’s family.

 

What are the Issues with the Process?

  • The NCPCR is under a statutory obligation under the JJ Act, 2015 to monitor the proper implementation of the provisions of the Act.
  • The guidelines have been made to remove any ambiguity and to clarify the steps that need to be followed while conducting the preliminary assessment.
  • However, the major issue remains the implementation and absorption of these principles in the system.
  • A lot of principles which have been made a part of the Act have not been given due prominence by the JJB as well as by the Children’s Court.

 

Q1) What is the National Commission for Protection of Children (NCPCR)?

It is an Indian statutory body (operational since 5 March 2007) under the aegis of the Union Ministry of Women and Child Development. It ensures that all child Laws, Policies, Programmes, and Administrative Mechanisms are in consonance with the Constitution of India and the UN Convention on the Rights of the Child.

 

Q2) What is the Juvenile Justice Board (JJB)?

JJBs are Indian quasi-judicial bodies formed by State Governments under the Juvenile Justice (Care and Protection of Children) Act, 2015. They decide whether juveniles accused of a crime should be tried as an adult. Each JJB consists of one first-class judicial magistrate and two social workers, at least one of whom is a woman.

 

Source: How can a juvenile be tried as an adult in court?

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