APSC Current Affairs: Assam Tribune Notes with MCQs and Answer Writing (18/09/2026)
For APSC CCE and other Assam competitive exam aspirants, staying consistently updated with reliable current affairs is essential for success. This blog provides a well-researched analysis of the most important topics from The Assam Tribune dated 18 September 2026. Each issue has been carefully selected and explained to support both APSC Prelims and Mains preparation, ensuring alignment with the APSC CCE syllabus and the evolving trends of the examination.
✨ APSC CCE Mains Course, 2026
Demolition of Houses on Private Farmland — Gauhati High Court
Syllabus Mapping
- GS-II: Constitution, Governance, Judiciary, Administrative Law & Natural Justice
- GS-III: Disaster Management & Statutory Powers
- GS-V (Assam Special): Assam Land Revenue Laws, Local Administration & Disaster Management
- Why in News: Gauhati High Court questioned the demolition of 21 dwelling houses on private agricultural land in Goalpara, observing prima facie misuse of the Disaster Management Act, 2005 and lack of proven imminent danger.
Introduction
The Gauhati High Court’s intervention affirms that administrative emergency powers cannot override the constitutional guarantee of due process, natural justice, and the rule of law.
Prelims Perspective
- Case Title & Bench: Jahidul Islam & 20 Others v. State of Assam & 2 Others [WP(C)/4903/2026]; heard by Justice Devashis Baruah at the Gauhati High Court (jurisdiction: Assam, Nagaland, Mizoram, and Arunachal Pradesh).
- Location & Action: 21 houses demolished in the Matia Revenue Circle, Goalpara district, under eviction notices allowing only 24-hour compliance.
- Disaster Management Act (DMA), 2005: Central legislation (Act No. 53 of 2005), enacted on 23 December 2005, enforced in 2006.
- DMA Section 30: Specifies the general powers and administrative functions of the District Disaster Management Authority (DDMA).
- DMA Section 34: Grants extraordinary powers to the District Authority to direct coercive measures specifically during a threatening disaster situation or actual disaster.
- Assam Agricultural Land Act, 2015: Formally the Assam Agricultural Land (Regulation of Reclassification and Transfer for Non-Agricultural Purpose) Act, 2015; regulates conversion of agricultural land.
- Statutory Farmland Exemption: Prior permission from the Deputy Commissioner is not required when agricultural land up to one bigha is reclassified/used for constructing an individual dwelling house (restricted to a two-storey limit, subject to statutory conditions).
- Constitutional Articles: Article 14 (protection against administrative arbitrariness), Article 21 (right to shelter, livelihood, and fair procedure), and Article 226 (power of High Courts to issue prerogative writs).
- Natural Justice Doctrines: Invocation of Audi alteram partem (the right to a fair hearing) and Nemo judex in causa sua (the rule against institutional bias).
Mains Perspective
Importance
- Checks Administrative Overreach: Re-establishes that statutory emergency provisions under the DMA cannot be invoked as a bypass for routine evictions or regular land administration procedures.
- Enforces Substantive Due Process: Anchors eviction protocols to Articles 14 and 21, establishing that shelter cannot be compromised without adequate notice and hearing.
- Affirms Judicial Review: Reinforces High Court powers under Article 226 to assess the proportionality and jurisdictional competence of district magistrates.
Challenges
- Vagueness in “Imminent Danger”: Absence of clear statutory definitions enables discretionary, subjective invocation of emergency clauses like DMA Section 34.
- Procedural Subversion Under Urgency: Administrative reliance on short notices (e.g., 24 hours) bypasses the basic tenets of Audi alteram partem.
- Absence of Relief and Restitution: Lack of codified compensation frameworks leaves affected citizens vulnerable when executive demolitions are retrospectively found unlawful.
Government / Institutional Measures Required
- Standard Operating Procedures (SOPs): Formulate objective, evidence-based criteria defining “imminent threat” before coercive disaster-relief clauses are triggered.
- Mandatory Written Justification: Require revenue and disaster officials to document the necessity, evidence base, and proportionality of actions prior to issuing eviction notices.
- Accountability and Restitution Protocols: Establish statutory mechanisms for administrative liability, mandatory rehabilitation, and state compensation for unauthorized demolitions.
Way Forward
- Doctrine of Proportionality: Administrative actions must balance urgent public interest against individual property and housing rights through the least restrictive means.
- Institutional Coordination: Integrate district revenue, municipal, and disaster authorities under a transparent, digitised notice and objection verification system.
Value Additions
- Core Constitutional Doctrines: Rule of Law, Substantive Due Process, Proportionality, Audi alteram partem.
- Key Provisions & Judgments: Articles 14, 21, and 226 of the Constitution; Section 34 of DMA 2005; Assam Agricultural Land Act, 2015.
Conclusion
Administrative efficiency and disaster readiness must operate within constitutional bounds, ensuring that executive power remains an instrument of citizen welfare rather than unchecked arbitrariness.
‘Govt aims 200 chip design startups, companies under Semicon 2.0’
Syllabus Mapping
- GS-III: Science & Technology, Industrial Policy, High-Tech Manufacturing & Economic Security
- GS-V (Assam Special): Regional Industrialization, Skilling & Northeast High-Tech Ecosystem Linkages
- Why in News: At SEMICON India 2026, the Union Ministry of Electronics & IT (MeitY) announced Semicon 2.0 with a target to nurture at least 200 chip-design startups and companies, backed by an outlay of ₹1,27,500 crore.
Introduction
Semicon 2.0 transitions India from isolated fabrication incentives toward a self-sustaining, full-stack semiconductor ecosystem integrating indigenous design, upstream supply chains, and advanced manufacturing.
Prelims Perspective
- Materials & Physics: Semiconductors exhibit intermediate electrical conductivity; primary materials include Silicon (Si), Germanium (Ge), and wide-bandgap compounds like Gallium Nitride (GaN) and Silicon Carbide (SiC).
- Semicon 2.0 Outlay: Approved in July 2026 with a total financial outlay of ₹1,27,500 crore (up from ₹76,000 crore under Semicon 1.0).
- Core Target: Support at least 200 chip-design startups/companies; scale technician workforce by training 1,00,000 technicians.
- Predecessor Performance (Semicon 1.0): Over 105 startups engaged in chip design, with ~20 securing ₹800 crore in venture capital.
- Six Pillars of Semicon 2.0 (D-M-F-A-R-T):
- Design (IP cores, System-on-Chip, fabless ecosystem)
- Machines & Materials (precision tools, specialty chemicals, ultra-pure gases)
- Fabs (silicon, compound, memory, and display fabrication on wafers)
- Advanced Packaging (ATMP and OSAT facilities)
- Research & Development (indigenous IP, advanced process nodes, academia-industry linkages)
- Talent Development (high-end designers and clean-room technicians)
- Institutional Architecture: India Semiconductor Mission (ISM) functions as the nodal specialized agency under the Ministry of Electronics and Information Technology (MeitY).
- Design Linked Incentive (DLI) Scheme: Provides financial and infrastructure support across design stages (ICs, Chipsets, SoCs, IP cores); nodal implementing agency is C-DAC (Centre for Development of Advanced Computing).
- Key Industry Terms:
- Fabless: Companies that design chips and hardware but outsource physical fabrication.
- ATMP: Assembly, Testing, Marking, and Packaging.
- OSAT: Outsourced Semiconductor Assembly and Test.
- Assam/Northeast Linkage: Focuses on human capital formation, embedded systems engineering, downstream electronics manufacturing, and semiconductor packaging/testing support corridors.
Mains Perspective
Importance
- Strategic Autonomy & National Security: Eliminates critical vulnerabilities in defense hardware, 5G/6G telecom grids, satellite systems, and AI compute infrastructure.
- Value-Chain Upgradation: Transitions India’s tech base from service-oriented IT to high-margin fabless intellectual property (IP) ownership and deep-tech innovation.
- Global Supply-Chain Resilience: Provides a geopolitically neutral, resilient node mitigating risks from geographic concentration in Taiwan, South Korea, and East Asia.
Challenges
- Extreme Capital & Infrastructure Intensity: Fabrication requires billions in capex, uninterrupted ultra-pure water supplies, and zero-fluctuation power grids.
- Upstream Import Dependencies: Continued reliance on foreign monopolies for lithography equipment (e.g., ASML), electronic design automation (EDA) software, and specialized chemicals.
- Rapid Technological Obsolescence: Fast node transitions (sub-3nm shifts) risk rendering high-cost capital assets non-competitive without continuous, heavy R&D reinvestment.
Government Initiatives
- Semicon 2.0 (₹1,27,500 Cr): Comprehensive full-stack support across equipment, materials, design, packaging, and fabrication.
- Design Linked Incentive (DLI) Scheme: Financial offsets up to 50% of eligible expenditure alongside EDA tool deployment through C-DAC.
- Institutional Skilling Programs: Standardized national curricula under ISM targeting the qualification of 1 lakh certified clean-room technicians and chip engineers.
Way Forward
- Incentivize Fabless Startups: Prioritize sovereign Semiconductor IP generation to capture downstream margins without upfront fab expenditure.
- Bilateral Supply-Chain Compacts: Formalize tech-transfer and material-supply agreements with Quad/bilateral partners (US, Japan, EU, Taiwan).
- Regional Dispersal to Northeast: Leverage Assam’s logistics corridors and engineering institutions for specialized ATMP/OSAT assembly clusters and embedded testing hubs.
Value Additions
- Core Concepts: Fabless Design Model, Substantive Tech Sovereignty, Supply-Chain Chokepoint Diversification.
- Policy Triad: MeitY–ISM–C-DAC coordination matrix under Make in India and Digital India frameworks.
Conclusion
By anchoring high-tech manufacturing to domestic chip-design IP, Semicon 2.0 effectively positions India to transition from a consumer of strategic electronics to an indispensable anchor in global semiconductor value chains.
India–Bhutan Relations: India Committed to Bhutan’s Progress — Jaishankar
Syllabus Mapping
- GS-II: International Relations (India & its Neighbourhood)
- GS-III: Energy, Infrastructure & Technology
- GS-V (Assam Special): Northeast India Connectivity & Border Infrastructure
- Why in News: EAM S. Jaishankar’s September 2026 visit to Bhutan featured the inauguration of specialized healthcare and hydropower projects, handover of electric vehicles, and the launch of Phase-II of the international UPI, reinforcing India’s Neighbourhood First policy.
Introduction
The India-Bhutan partnership exemplifies deep mutual trust, rapidly evolving from traditional hydropower cooperation into a modern paradigm of digital integration, clean energy, and comprehensive regional connectivity.
Prelims Perspective
- Treaties & Diplomacy: Formal relations began in 1968; anchored by the 2007 India–Bhutan Friendship Treaty (updating the 1949 pact) which emphasizes mutual sovereignty, free trade, and shared security.
- Current Visit Milestones (Sept 2026): Inaugurated the 65-bed Gyaltsuen Jetsun Pema Mother and Child Hospital (Mongar); laid the foundation for the 500-kW Lunana Hydropower Project (Gasa); handed over 54 Made-in-India EVs; launched Phase-II of international UPI.
- Financial Assistance: India committed a ₹10,000 crore grant for Bhutan’s 13th Five-Year Plan, covering Project-Tied Assistance, High Impact Community Projects, and an Economic Stimulus Package.
- Trade Dynamics: India remains Bhutan’s largest trading partner, handling ~79.88% of its total trade (valued at ₹12,669 crore in 2024).
- Hydropower Capacity (3,156 MW Total): Key operational joint projects include Tala (1,020 MW), Punatsangchhu-II (1,020 MW), Mangdechhu (720 MW), Chukha (336 MW), and Kurichhu (60 MW).
- Railway Connectivity (MoU Sept 2025): Proposed multi-modal links include Kokrajhar–Gelephu (69 km) and Banarhat–Samtse (20 km), estimated at ~₹4,033 crore.
- Assam Gateways: Sub-regional transit boosted by the Darranga Immigration Check Post (inaugurated Nov 2024) and Jogighopa Inland Waterway Terminal (Jan 2025).
- Technology & Space: Jointly developed India-Bhutan SAT launched in 2022; RuPay and BHIM UPI implemented in phases since 2019/2021.
Mains Perspective
Importance
- Strategic Security: A stable and integrated Bhutan acts as a critical geopolitical buffer securing India’s Himalayan and Northeastern frontiers.
- Clean Energy Integration: Mutual hydro-partnerships drive revenue generation for Bhutan while sustaining India’s transition toward renewable, low-carbon electricity grids.
- Northeast Economic Gateway: Utilizing Assam as a direct transit hub transforms border peripheries into active logistics, trade, and regional employment corridors.
Challenges
- Hydropower Vulnerabilities: Heavy capital debt, construction delays, and tariff disputes complicate the economics of large-scale dam projects.
- Ecological & Geographical Barriers: High Himalayan terrain escalates infrastructure costs, restricts multi-modal logistics, and raises severe climate and disaster risks.
- Economic Asymmetry: Bhutan’s extreme reliance on Indian trade necessitates careful diplomatic handling to alleviate domestic concerns regarding economic over-dependence.
Major Pillars & Government Initiatives
- D-E-T-C-P-S Framework: Holistic bilateral engagement spanning Development, Energy, Trade, Connectivity, People-to-People ties, and Security.
- Assam-Centric Infrastructure: Fast-tracking the Kokrajhar–Gelephu rail link and riverine ports to strategically complement Bhutan’s upcoming Gelephu Mindfulness City economic hub.
- Digital Public Infrastructure (DPI): Exporting India’s fintech and space tech (UPI Phase-II, South Asia Satellite network) to deepen institutional and citizen-level linkages.
Way Forward
- Diversify the Energy Matrix: Expand bilateral cooperation beyond large hydro dams into solar, green hydrogen, energy storage, and the digital economy.
- Accelerate Sub-Regional Connectivity: Expedite border railways, integrated check posts, and inland waterways to actualize the Assam-Bhutan economic corridor.
- Ensure Climate-Resilient Development: Mandate rigorous environmental impact and disaster-risk assessments alongside local community participation for all future Himalayan infrastructure.
Value Additions
- High-Impact Keywords: Hydropower Diplomacy, Gelephu Mindfulness City, Digital Public Infrastructure, Sub-regional Economic Integration, Strategic Autonomy.
- Core Revision Chain: 1949/2007 Treaties → Hydropower Grid → ₹10,000 Cr 13th Plan → Kokrajhar-Gelephu Link → DPI/UPI Rollout.
Conclusion
By aggressively integrating digital infrastructure, sustainable energy, and multi-modal cross-border transport, the India-Bhutan relationship has transcended traditional donor-recipient dynamics to become a model of resilient, sub-regional strategic interdependence.
UPI / Merchant Discount Rate (MDR) and Keeping UPI Free
Syllabus Mapping
- GS-III: Indian Economy & Financial System, Digital Public Infrastructure (DPI)
- GS-II: Government Policies & Digital Governance
- GS-V (Assam Special): Digital Financial Inclusion and Small Enterprise Formalization
- Why in News: From 15 October 2026, a 0.4% Merchant Discount Rate (MDR) will apply to specified Person-to-Merchant (P2M) UPI transactions above ₹2,000, shifting focus to balancing UPI’s affordability with the payment ecosystem’s financial sustainability.
Introduction
The updated UPI-MDR framework seeks to balance the dual objectives of universal, low-cost digital financial inclusion and the long-term infrastructural sustainability of India’s payment ecosystem.
Prelims Perspective
- MDR (Merchant Discount Rate): A fee distributed among payment ecosystem participants (banks, PSPs) for processing merchant payments; it is not a government tax or direct consumer charge.
- Effective Date of New Rules: 15 October 2026.
- Standard P2M MDR: 0.4% on specified Person-to-Merchant (P2M) transactions above ₹2,000.
- Upper Cap: Maximum MDR of ₹300 for transactions of ₹75,000 and above.
- 100% Free Transactions: All P2P (Person-to-Person) transactions (regardless of amount), P2M transactions up to ₹2,000, and transactions for small merchants receiving up to ₹1 lakh/month via QR codes.
- Unaffected Scope: Approximately 96% of all P2M transactions will remain unaffected by the new MDR.
- Thin-Margin / Essential Sectors: A flat ₹5 MDR for transactions above ₹2,000 in railways, telecom, insurance, fuel, and agriculture.
- Capital Markets: 0.02% MDR (capped at ₹300) for mutual funds, stockbrokers, and securities dealers.
- Key Operating Body: National Payments Corporation of India (NPCI) operates the UPI interface.
- Statutory Framework: Regulated under the Payment and Settlement Systems Act, 2007 (Section 10A prohibits banks from charging for prescribed electronic modes).
- Tax Law Linkage: UPI and RuPay are prescribed electronic modes under Section 269SU of the Income-tax Act, 1961.
Mains Perspective
Importance
- Financial Inclusion & Formalization: Zero-cost micro-transactions drive digital adoption among street vendors and rural enterprises, creating transaction trails that enable formal credit access.
- Digital Public Infrastructure (DPI) Success: Demonstrates how interoperable, open-source public architecture can spur private fintech innovation at a population scale.
- Regional Economic Gateway: In Assam and the Northeast, cashless integration directly empowers women-led micro-businesses, tourism, and remote informal sectors.
Challenges
- Ecosystem Sustainability: Indefinite zero-MDR mandates strain the financial viability of banks and fintechs facing escalating server, infrastructure, and innovation costs.
- Cost Pass-Through Risk: Despite strict guidelines, merchants may indirectly pass the 0.4% transaction processing burden onto consumers through inflated retail prices.
- Systemic Cyber Vulnerabilities: Rapid transaction scaling expands the attack surface for sophisticated cyber frauds (phishing, fake QRs), requiring massive, unfunded cybersecurity investments.
Government / Institutional Measures
- Differentiated Pricing Strategy: Shielding 96% of everyday P2M payments and all P2P transfers while monetizing high-value commercial transfers to fund ecosystem upkeep.
- Historical Incentive Support: Extended approximately ₹8,730 crore (FY21–FY25) in government subsidies to compensate ecosystem players under the prior zero-MDR regime.
- Consumer Protection Directives: Issued explicit instructions mandating that banks ensure MDR is absorbed by merchants and never billed to retail customers.
Way Forward
- Dynamic Calibration: Periodically review MDR thresholds and caps based on infrastructure costs, inflation, and merchant affordability.
- Ring-Fence Cyber Investments: Channel a mandated percentage of generated MDR revenues directly into upgrading real-time fraud detection and network resilience.
- Transparent Merchant Categorization: Enforce strict AI-driven compliance monitoring to prevent misclassification and protect micro-vendors from unintended tariff burdens.
Value Additions
- Keywords to Use: Digital Public Infrastructure (DPI), Interoperability, P2P vs P2M, Section 269SU, Financial Formalization, Payment-System Sustainability.
Conclusion
Transitioning from a fully subsidized model to a calibrated MDR framework ensures that UPI remains a mass-market tool for financial inclusion while securing the capital necessary for long-term technological resilience and cybersecurity.
APSC MCQs
Topic 1: Demolition of Houses on Private Farmland — Gauhati High Court
Q1. With reference to the recent Gauhati High Court case concerning demolition of houses on private agricultural land in Goalpara, consider the following statements:
- The Court questioned whether there was an imminent danger warranting demolition of houses on private land.
- The Court prima facie indicated possible misuse of the Disaster Management Act, 2005.
- The case involved the exercise of powers under the Disaster Management Act without any involvement of revenue authorities.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: A. 1 and 2 only
Explanation: The Gauhati High Court questioned whether there was an imminent danger justifying the demolition and prima facie observed possible misuse of the Disaster Management Act, 2005. Revenue authorities, including the Circle Officer, were involved; hence statement 3 is incorrect.
Q2. With reference to the principles of Natural Justice, consider the following statements:
- Audi alteram partem means that a person should be given an opportunity to be heard.
- Nemo judex in causa sua embodies the rule against bias.
- Principles of natural justice are expressly codified in a single provision of the Constitution of India.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: A. 1 and 2 only
Explanation: The first two are classic principles of natural justice. They are not contained in a single constitutional provision, although their application is closely connected with constitutional guarantees such as Articles 14 and 21.
Q3. With reference to the Disaster Management Act, 2005, consider the following statements:
- It provides a statutory framework for disaster management in India.
- The District Disaster Management Authority has powers and functions under the Act.
- The Act can be invoked by administrative authorities without satisfying the statutory conditions attached to the exercise of the relevant power.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: A. 1 and 2 only
Explanation: The Act creates a legal and institutional framework for disaster management, including district-level authorities. However, statutory powers must be exercised within the conditions and purposes prescribed by law. The recent Goalpara case precisely raises this issue.
Q4. Consider the following constitutional provisions:
- Article 14 — Equality before law and equal protection of laws
- Article 21 — Protection of life and personal liberty
- Article 226 — Power of High Courts to issue writs
- Article 32 — Power of District Courts to review administrative action
Which of the above are correctly matched?
A. 1, 2 and 3 only
B. 1 and 4 only
C. 2, 3 and 4 only
D. 1, 2, 3 and 4
Answer: A. 1, 2 and 3 only
Explanation: Article 226 empowers High Courts to issue writs. Article 32 provides a constitutional remedy through the Supreme Court, not District Courts. The Goalpara case is particularly relevant to judicial review under Article 226.
Topic 2: Semicon 2.0 — 200 Chip-Design Startups/Companies
Q5. With reference to Semicon 2.0, consider the following statements:
- It has a total budget outlay of ₹1,27,500 crore.
- It seeks to build a complete semiconductor ecosystem rather than focusing only on fabrication.
- Chip design, machines and materials, fabs, advanced packaging, R&D and talent development constitute its six pillars.
- It is restricted exclusively to government-owned semiconductor companies.
Which of the statements given above is/are correct?
A. 1, 2 and 3 only
B. 1 and 4 only
C. 2 and 3 only
D. 1, 2, 3 and 4
Answer: A. 1, 2 and 3 only
Explanation: Semicon 2.0 has an outlay of ₹1,27,500 crore and six pillars covering the semiconductor value chain. It is not restricted to government-owned companies.
Q6. Consider the following pairs:
| Semiconductor term | Description |
| 1. Fab | Semiconductor fabrication facility |
| 2. OSAT | Outsourced Semiconductor Assembly and Test |
| 3. ATMP | Assembly, Testing, Marking and Packaging |
| 4. EDA | Electronic Design Automation |
Which of the pairs given above are correctly matched?
A. 1, 2, 3 and 4
B. 1 and 2 only
C. 1, 3 and 4 only
D. 2 and 4 only
Answer: A. 1, 2, 3 and 4
Explanation: All four are correctly matched. EDA tools are used extensively in semiconductor design. Under India’s semiconductor programme, access to industry-standard EDA tools has been expanded to universities and design entities.
Q7. With reference to Semicon 2.0, consider the following statements:
- The first pillar relates to chip design.
- The programme seeks to expand advanced packaging capabilities.
- Research and development is one of its pillars.
- Talent development is excluded because semiconductor design is expected to be fully automated.
Which of the statements given above is/are correct?
A. 1, 2 and 3 only
B. 1 and 4 only
C. 2 and 3 only
D. 1, 2, 3 and 4
Answer: A. 1, 2 and 3 only
Explanation: Talent development is explicitly the sixth pillar. The Government has also targeted training one lakh technicians/industry-ready professionals under Semicon 2.0.
Q8. Consider the following statements regarding India’s semiconductor ecosystem:
- A fabless company can design semiconductor chips without owning a semiconductor fabrication plant.
- Semiconductor packaging is a stage that follows fabrication and is important for integrating chips into usable electronic systems.
- Semiconductor capability has applications in sectors such as AI, telecommunications, defence and electric mobility.
- Development of semiconductor capability concerns only economic policy and has no strategic-security dimension.
Which of the statements given above is/are correct?
A. 1, 2 and 3 only
B. 1 and 4 only
C. 2 and 3 only
D. 1, 2, 3 and 4
Answer: A. 1, 2 and 3 only
Explanation: Semiconductor capability has both economic and strategic significance, including defence, telecommunications, AI and electric mobility. Hence statement 4 is incorrect.
Topic 3: India–Bhutan Relations
Q9. With reference to India–Bhutan relations, consider the following statements:
- India and Bhutan established diplomatic relations in 1968.
- The original Treaty of Friendship and Cooperation between India and Bhutan was signed in 1949.
- The treaty framework was revised in 2007.
- Bhutan is not a landlocked country.
Which of the statements given above is/are correct?
A. 1, 2 and 3 only
B. 1 and 4 only
C. 2 and 3 only
D. 1, 2, 3 and 4
Answer: A. 1, 2 and 3 only
Explanation: Diplomatic relations were established in 1968. The original treaty dates to 1949 and was revised in 2007. Bhutan is a landlocked Himalayan country.
Q10. The recent India–Bhutan engagement included which of the following?
- Launch of Phase-II of international UPI for Bhutanese citizens visiting India
- Handover of Made-in-India electric vehicles
- Foundation stone for the 500-kW Lunana Hydropower Project
- Inauguration of a 65-bed Mother and Child Hospital in Mongar
Select the correct answer using the code below:
A. 1, 2 and 3 only
B. 1, 2, 3 and 4
C. 1 and 4 only
D. 2 and 3 only
Answer: B. 1, 2, 3 and 4
Explanation: All four formed part of the recent India–Bhutan engagement during EAM S. Jaishankar’s visit. The visit covered development partnership, energy, trade, connectivity and people-to-people ties.
Q11. Consider the following pairs related to India–Bhutan cooperation:
- Kokrajhar–Gelephu — Proposed cross-border railway link
- Jogighopa — Inland-waterway connectivity in Assam
- India-Bhutan SAT — Space cooperation
- UPI — Digital-payment connectivity
Which of the pairs given above are correctly matched?
A. 1, 2, 3 and 4
B. 1 and 2 only
C. 2 and 4 only
D. 1, 3 and 4 only
Answer: A. 1, 2, 3 and 4
Explanation: All four represent important dimensions of India’s growing connectivity and development partnership with Bhutan. The Assam angle is particularly important for APSC because of Jogighopa and the proposed Kokrajhar–Gelephu rail connectivity.
Q12. With reference to India–Bhutan energy cooperation, consider the following statements:
- Hydropower has traditionally been a major pillar of India–Bhutan economic cooperation.
- The recent bilateral engagement also included the foundation stone for the Lunana Hydropower Project.
- India–Bhutan cooperation is limited to fossil-fuel-based energy.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: A. 1 and 2 only
Explanation: Hydropower is a major pillar of bilateral cooperation, and the 500-kW Lunana Hydropower Project was part of the recent visit. The relationship is strongly associated with renewable hydropower rather than being limited to fossil fuels.
Topic 4: UPI / Merchant Discount Rate (MDR) and Keeping UPI Free
Q13. With reference to the recent UPI-MDR framework, consider the following statements:
- Person-to-Person (P2P) UPI transactions remain free irrespective of transaction amount.
- Specified Person-to-Merchant (P2M) transactions above ₹2,000 attract an MDR of 0.4%.
- For transactions of ₹75,000 and above, the MDR is capped at ₹300 per transaction.
- MDR is a tax collected by NPCI on behalf of the Union Government.
Which of the statements given above is/are correct?
A. 1, 2 and 3 only
B. 1 and 4 only
C. 2 and 3 only
D. 1, 2, 3 and 4
Answer: A. 1, 2 and 3 only
Explanation: P2P transactions remain free. Specified P2M transactions above ₹2,000 attract 0.4% MDR, with a ₹300 cap for transactions of ₹75,000 and above. MDR is not a tax collected by the Government or NPCI.
Q14. Consider the following statements regarding Merchant Discount Rate (MDR):
- MDR is associated with merchant-payment transactions.
- MDR is distributed among participants in the payment ecosystem.
- The customer necessarily has to pay the MDR separately whenever a merchant transaction attracts MDR.
- MDR can support the operation and expansion of payment infrastructure.
Which of the statements given above is/are correct?
A. 1, 2 and 4 only
B. 1 and 3 only
C. 2, 3 and 4 only
D. 1, 2, 3 and 4
Answer: A. 1, 2 and 4 only
Explanation: MDR is a merchant-payment ecosystem charge distributed among participants such as banks, payment service providers and application providers. The customer is not required to pay MDR separately under the current framework.
Q15. With reference to UPI transactions, consider the following statements:
- P2P refers to Person-to-Person transactions.
- P2M refers to Person-to-Merchant transactions.
- Approximately 96% of P2M transactions are expected to remain unaffected by the new MDR framework.
- All P2M transactions above ₹2,000 are subject to an identical MDR irrespective of the category of transaction.
Which of the statements given above is/are correct?
A. 1, 2 and 3 only
B. 1 and 4 only
C. 2 and 3 only
D. 1, 2, 3 and 4
Answer: A. 1, 2 and 3 only
Explanation: P2P and P2M are correctly defined. The Government estimates about 96% of P2M transactions will remain unaffected. MDR is differentiated for certain categories; for example, specified essential/thin-margin sectors have a flat ₹5 MDR and capital-market transactions have a 0.02% rate, subject to conditions.
Q16. Consider the following statements regarding India’s digital-payment ecosystem:
- UPI is operated by the National Payments Corporation of India (NPCI).
- The Payment and Settlement Systems Act, 2007 provides a statutory framework for payment systems in India.
- Section 269SU of the Income-tax Act is associated with prescribed electronic modes of payment.
- UPI is a closed proprietary payment network available only to a single private company.
Which of the statements given above is/are correct?
A. 1, 2 and 3 only
B. 1 and 4 only
C. 2, 3 and 4 only
D. 1, 2, 3 and 4
Answer: A. 1, 2 and 3 only
Explanation: UPI is operated by NPCI, and the Payment and Settlement Systems Act, 2007 provides the statutory framework for payment systems. Section 269SU concerns prescribed electronic modes. UPI is an interoperable payment infrastructure, not a single-company proprietary network.
Daily APSC Mains Answer Writing
Q. “The transition of UPI from a fully zero-MDR model to a calibrated MDR framework reflects the delicate balance between digital financial inclusion and payment system sustainability.” Analyze this statement in the context of India’s Digital Public Infrastructure (DPI) and its impact on regional economies like Assam.
The recent mandate applying a 0.4 percent Merchant Discount Rate (MDR) on specified Person-to-Merchant (P2M) UPI transactions over ₹2,000 marks a pivotal shift in India’s Digital Public Infrastructure (DPI) strategy to balance user affordability with ecosystem viability.
1. The Rationale: Balancing Inclusion and Sustainability
The policy shifts from a heavily subsidized model to a self-financing ecosystem, evaluated through a stakeholder lens:
| Stakeholder | Zero-MDR Era (Historical) | Calibrated MDR Era (Oct 2026 onwards) |
| Consumers | 100 percent free usage; rapid adoption. | Remains 100 percent free; shielded from direct charges. |
| Small Merchants | High inclusion; transition from cash. | Protected (Zero MDR for P2M under ₹2,000 and small merchants). |
| Payment Providers | Reliant on Govt subsidies (₹8,730 Cr in FY21-25). | Generates revenue from high-value commercial transactions. |
2. Securing Digital Financial Inclusion (Consumer & Merchant Perspective)
- Shielding the Vulnerable: By keeping Person-to-Person (P2P) transfers and micro-P2M transactions free, the framework ensures that approximately 96 percent of transactions remain unaffected (Ministry of Finance).
- Statutory Consumer Protection: Aligned with Section 10A of the Payment and Settlement Systems Act, 2007 and Section 269SU of the Income-tax Act, ensuring consumers are not directly taxed for using prescribed electronic modes.
- Sector-Specific Calibration: Essential sectors (railways, agriculture) attract a nominal flat ₹5 MDR, preventing inflationary pass-through to citizens.
3. Sustaining the Payment Ecosystem (Provider Perspective)
- Funding Cyber Resilience: Revenue from the 0.4 percent MDR will finance critical upgrades against phishing, fake QRs, and account takeovers, aligning with the RBI Payment Systems Vision Document.
- Reducing Exchequer Burden: Phasing out blanket government incentive schemes forces the fintech ecosystem to become commercially viable and independent.
- Promoting Fintech Innovation: A financially sustainable model attracts private capital for developing advanced features (e.g., credit on UPI, offline payments).
4. Impact on Regional Economies: The Assam Perspective
- MSME Formalization: Sustaining zero MDR for small merchants (receiving up to ₹1 Lakh/month) accelerates formal credit access for local artisans (Example: Sualkuchi silk weavers transitioning to QR-based sales).
- Empowering Rural Geographies: Maintains cash-lite integration for Assam’s tea garden communities and eco-tourism hubs, driving rural economic participation aligned with SDG 8 (Decent Work and Economic Growth).
- Northeast Financial Gateway: A robust, self-funded UPI ecosystem supports cross-border digital financial integration (e.g., the recent UPI Phase-II launch in neighboring Bhutan).
Calibrating MDR transforms UPI from a subsidized initiative into a robust, self-sustaining Digital Public Good, ensuring India’s fintech revolution continues to drive inclusive economic formalization and grassroots empowerment.
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