MPC Retains Repo Rate, Lowers Growth Forecast
Economy
Context
- The Monetary Policy Committee (MPC) voted unanimously to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.25%.
Monetary Policy Committee (MPC)
- Established under – The Monetary Policy Committee (MPC) constituted by the Central Government under Section 45ZB of the Reserve Bank of India (RBI) Act, 1934.
- Meeting – The MPC is required to meet at least four times in a year.
- Composition: The committee comprises six members.
Out of the six members, three are internal -including the RBI governor who chairs the committee.
- RBI’s deputy governor is the second internal member.
- The third member is one RBI official who is nominated by the central board of RBI. Usually, it is the executive director in-charge of monetary policy.
- The other three are external members who are appointed for four years.
- Voting: Each member of the MPC has one vote, and in the event of an equality of votes, the Governor has a second or casting vote.
- Significance of constituting the MPC: MPC was set up consequent to the agreement reached between Government and RBI to task RBI with the responsibility for price stability and inflation targeting.
- The Reserve Bank of India and Government of India signed the Monetary Policy Framework Agreement.
- Functions: The MPC determines the policy repo rate required to achieve the inflation target. It acts as a benchmark for all other interest rates in the economy.
Monetary Policy Tools in India
- Repo Rate: Rate at which RBI lends short-term funds to banks against collateral.
- Reverse Repo Rate: Rate at which RBI absorbs liquidity from banks.
- Cash Reserve Ratio (CRR): Portion of deposits banks must keep with RBI in cash.
- Statutory Liquidity Ratio (SLR): Portion of deposits kept in liquid assets (gold, cash, securities).
- Open Market Operations (OMO): Buying/selling of government securities to control liquidity.
- Marginal Standing Facility (MSF): Emergency borrowing by banks at a penal rate.
- Liquidity Adjustment Facility (LAF): Framework for repo/reverse repo operations.
- Market Stabilisation Scheme (MSS): Bonds issued to absorb excess liquidity.
Surha Tal: India’s 100th Ramsar Site
Environment

Context
- Jai Prakash Narayan Bird Sanctuary (Surha Tal) in Ballia, Uttar Pradesh, has been designated as India’s 100th Ramsar Site.
About
- Established in 1991,
- The sanctuary is centred around Surha Tal, a natural perennial oxbow lake formed by the shifting course of the Ganga River.
- It is located in the Indo-Gangetic Plain, near the confluence of the Ganga and Ghaghara rivers.
- It hosts several migratory birds from Siberia and Central Asia, including the Greylag Goose, Pintail, Common Teal, and Bar-headed Goose.
- Local species include Sarus crane, Heron, and Cormorant.
Connect with the basics – Ramsar Convention
- A Ramsar site is a wetland designated as one of international importance under the Ramsar Convention.
- Ramsar Convention – It is one of the inter-governmental accords to preserve the wetlands of international importance.
- It was signed on February 2, 1971 in Ramsar, Iran and came into force in 1975.
- India became a signatory to the Ramsar Convention in 1982.
Ramsar Facts
- Total: 100 sites (As of June 2026).
- India has the most sites in Asia.
- 100th Site: Jai Prakash Narayan Bird Sanctuary (Surha Tal) in Uttar Pradesh (Added June 2026).
- Top State: Tamil Nadu (20 sites), followed by Uttar Pradesh (13 sites).
- First Sites: Chilika Lake (Odisha) and Keoladeo National Park (Rajasthan) in 1981.
- Sizes: Sundarban (West Bengal) is the largest. Renuka (Himachal Pradesh) is the smallest.
Montreux Record (Threatened Sites)
- What it is: A register of Ramsar sites facing ecological danger from pollution or human interference.Active Indian Sites:
- Only two sites—Keoladeo National Park (Rajasthan) and Loktak Lake (Manipur).
- Removed- Chilika Lake was removed after successful recovery.
Isobutanol
Science & Technology
Context
- As India expands its biofuel strategy beyond ethanol, the government is evaluating the use of diesel blended with up to 15% isobutanol to reduce dependence on crude oil imports.
Isobutanol
- Chemical Profile: It is a clear, colorless liquid with a mild alcoholic odor. It is one of the four isomers of butanol.
- Traditional Use: It has long served as an industrial solvent in paints, lacquer, coatings, pharmaceuticals, and pesticides.
- Production: It can be created from petrochemicals or by fermenting biomass like sugarcane syrup, molasses, and grains using engineered microbes.
Why Isobutanol Over Ethanol for Diesel Blending
- India successfully implemented a 20% ethanol blending mandate for petrol, but ethanol failed to mix properly with diesel.
|
Feature |
Ethanol-Diesel Blend |
Isobutanol-Diesel Blend |
|
Miscibility (Mixing) |
Poor. Tends to separate into distinct layers. |
Excellent. Blends uniformly with diesel without special chemical additives. |
|
Water Absorption |
Highly hygroscopic. Absorbs water, causing engine corrosion. |
Low hygroscopicity. Does not absorb water easily, making it pipeline-safe. |
|
Energy Density |
Low energy density. Reduces vehicle mileage. |
High energy density. Closer to pure diesel, preserving fuel efficiency. |
|
Flash Point (Safety) |
Low flash point. Highly volatile and poses a high fire risk. |
Higher flash point. Much less volatile and safer to store or transport. |
Significance for India
- Import Substitution: Blending up to 10% isobutanol into diesel can slash India’s high crude oil import bills.
- Climate & Emission Targets: It burns cleaner, reducing harmful particulate emissions. This helps achieve India’s Net-Zero emission goal by 2070 and aligns with the National Policy on Biofuels.
Jan Samarth Portal
Government Schemes
Context
- The Jan Samarth Portal has completed four years of promoting digital financial inclusion and seamless credit delivery.
Jan Samarth Portal
- Launched in – 2022
- Objective – It is a single-window digital platform for availing benefits under 16 credit-linked government schemes.
- Significance – It facilitates access to institutional credit across sectors such as agriculture, business, housing, renewable energy, and livelihoods.
- Available in 8 languages, the portal has onboarded 269 lending institutions, including banks, NBFCs, and cooperative banks.
Additional information – Digital financial inclusion schemes
Core Pillars: The JAM Trinity
- Jan Dhan: Zero-balance bank accounts for the unbanked.
- Aadhaar: Biometric digital ID for instant e-KYC verification.
- Mobile: Core tool to access mobile banking apps.
Key Schemes
- PM Jan Dhan Yojana (PMJDY): World’s largest financial inclusion drive. Over 56 crore accounts. Offers free RuPay cards, ₹2 lakh accident cover, and ₹10,000 overdraft.
- UPI: Real-time mobile payment network. Handles over 80% of India’s retail digital payments.
- Direct Benefit Transfer (DBT): Sends government subsidies straight into Aadhaar-linked accounts. This stops corruption and cuts state waste.
- Aadhaar Enabled Payment System (AePS): Rural biometric banking via local agents (Bank Mitras). No smartphone required.
- Jan Suraksha Schemes: Cheap, auto-debit security. Includes PMSBY (₹20/year accident cover), PMJJBY (₹436/year life cover), and Atal Pension Yojana (unorganised sector pension).
- Unified Lending Interface (ULI): Nationwide platform that speeds up digital loans by instantly linking land and financial data.




















