20 January 2026

• SIR is a comprehensive revision of electoral rolls conducted by the Election Commission of India (ECI).
• Objective:
  • Remove duplicate, fake, or ineligible voters  Ensure accuracy and purity of electoral rolls
• Legal basis:
  • Representation of the People Act, 1950
  • Powers exercised under Article 324 of the Constitution

What Triggered the Supreme Court’s Intervention?

• ECI issued notices to ~1.36 crore voters (≈20% of West Bengal’s population).
• Notices sought explanation for “logical discrepancies” such as:
  • More than six children
  • Minor spelling differences in names  Parent–child age gap of ~15 years
  • Grandparents shown as under 40 years  
• Supreme Court observed:
  • Exercise causing mental stress and administrative chaos
  • Risk of mass disenfranchisement before final roll publication

Why Did the Court Find the Criteria Problematic?

• No explicit statutory backing for criteria like number of children
• Family size has no direct relevance to voter eligibility
• Age gaps or spelling errors common due to:
  • Illiteracy
  • Migration
  • Clerical errors
• Court questioned:
  • Whether such assumptions violate ground realities (e.g., child marriage)

Constitutional and Legal Dimensions

• Article 324:
  • Grants ECI broad powers
  • Powers are not absolute and subject to judicial review
• Right to Vote:
  • Statutory right, but deletion affects:
    • Article 14 (arbitrariness)
    • Article 21 (procedural fairness)
• Principles of Natural Justice:
• Right to notice  
• Right to hearing
• Reasoned decision

Administrative Failures Highlighted

• Only 500 verification centres for 1.36 crore notices
• Required nearly 1,900 centres for timely hearings
• Only 15 lakh hearings conducted, while deadlines approaching
• Booth Level Agents of political parties allegedly excluded
• Instructions circulated through WhatsApp instead of formal circulars
• Rejection of state school board admit cards, despite being statutory documents
• Supreme Court’s Key Directions Explained
• Public Display of Names:  Ensures transparency
• Allows community verification  
• Extension of Time:
  • Prevents exclusion due to procedural delays
• Mandatory Receipts:
  • Protects citizens from administrative denial  
• Authorized Representatives Allowed:
  • Helps elderly, migrant, and vulnerable voters
• State Support to ECI:
  • Human resources to ensure smooth process

Why Is This Case Important for Democracy?

• Electoral roll accuracy is the foundation of free and fair elections
• Over-zealous verification can:
  •  Exclude genuine voters
  • Undermine public trust in institutions  
• Balance required between:
  • Electoral integrity  
  • Voter inclusion

Ethical and Governance Angle

• Burden of proof placed disproportionately on citizens
• Lack of empathy in administrative processes  
• Raises questions on:
  • Transparency  
  • Accountability
  • Proportionality of state action

Way Forward (Explained)

• Define clear, legally sanctioned criteria for discrepancies
• Increase infrastructure before mass notices  
• Ensure formal communication channels
• Allow political party oversight to enhance trust  
• Shift from suspicion-based to inclusion-based governance

LINK DIGITAL CURRENCIES: RBI

KEY HIGHLIGHTS

• Reserve Bank of India has suggested that BRICS countries should explore linking their Central Bank Digital Currencies (CBDCs).
• This proposal may be discussed at the 2026 BRICS Summit.
• The idea is to allow cross-border payments directly using digital currencies issued by central banks, instead of relying on the US dollar.

What is a CBDC?

• A CBDC is:
  • A digital form of sovereign currency
  • Issued and regulated by a central bank  
  • Legal tender (unlike private cryptocurrencies)
• India’s CBDC is called the Digital Rupee (e₹).

Why is RBI Supporting CBDC Linkage?

1.Problems in Current Cross-Border Payments

• Slow settlement (days)
• High transaction costs  
• Dependence on:
  • US dollar
  • SWIFT system
• Vulnerability to sanctions and geopolitical risks.

2. Advantages of CBDC Linkage

• Instant settlement
• Lower cost
• Direct central bank-to-central bank transfer 
• Greater transparency and traceability

Why BRICS is Important in This Context

• BRICS includes major emerging economies  Large share of global:
  • Population  
  • Trade
  • Energy flows
• Linking CBDCs can:

Does This Mean De-Dollarisation?

• NO
• RBI has clearly stated:
  • Goal is payment efficiency  
  • Not replacing the US dollar
• However:
  • Reduced dollar use can be a side effect, not the objective

India’s Digital Rupee Status

• Launched: December 2022  
• Users: ~7 million
• Features:
  • Offline payments (important for inclusion)  
  • Programmability (targeted subsidies)
  • Fintech wallet integration

Key Challenges in Linking BRICS CBDCs

1.Technology Issues

• Different countries use different platforms
• No global CBDC interoperability standard yeT

2. Trust & Governance

• Countries hesitant to adopt others’ technology  
• Data security and sovereignty concerns

3. Trade Imbalances Example:

• • Russia earned large amounts of Indian rupees
  • Limited avenues to use them  
• This creates settlement stress

How Trade Imbalance May Be Managed

• Proposed solution:
  • Foreign Exchange (FX) Swap Arrangements  
• Meaning:
  • Central banks exchange currencies for a fixed period
  • Settlements done weekly/monthly
  • Reduces pressure of unused balances

Why the US is Concerned

• The US sees CBDC linkage as:
  • Weakening dollar dominance
  • Reducing effectiveness of sanctions  
• Former US President Donald Trump has:
  • Called BRICS “anti-
  • American”  Threatened tariffs

Way Forward

• Begin with small bilateral CBDC pilots  
• Develop common technical standards  
• Use neutral platforms like BIS
• Strengthen FX swap mechanisms
• Ensure AML/CFT compliance
• Gradual multilateral expansion

IMF UPGRADES INDIA’S GROWTH PROJECTION TO 7.3%

• International Monetary Fund revised India’s GDP growth for FY 2025–26 to 7.3% (from 6.6%) in January 2026 World Economic Outlook Update.
• Revision based on better-than-expected Q3 performance and strong Q4 momentum.
• Projection is close to Government of India’s estimate: 7.4%.
• Inflation expected to return near 4% target of Reserve Bank of India.

Key Points (Facts & Data)

• India GDP Growth (FY 2025–26): 7.3% (IMF)
• Revision Magnitude: +0.7 percentage points  
• Medium-term Growth: ~6.4% in 2026–27
• Global Growth:
  • 2026: 3.3%
  • 2027: 3.2%
• Growth Drivers (Global):
  • AI & technology-led investment
  • Accommodative financial conditions  
  • Fiscal & monetary support
• Key Risk: Trade policy uncertainty

Static Linkages (Economy Concepts)

• GDP growth as indicator of economic expansion
• Cyclical vs structural growth factors
• Inflation targeting framework (4% ± 2%)  
• Role of monetary–fiscal coordination
• Global spillovers via trade, capital flows, technology

Critical Analysis

• Pros
  • Confirms macroeconomic stability  
  • Enhances investor confidence
  • Supports fiscal consolidation with growth
  • Strengthens India’s global economic position
• Concerns
  • Growth moderation ahead indicates structural gaps
  • External risks: protectionism, geopolitics
  • Uneven sectoral recovery (MSMEs, informal sector)

Way Forward

• Push structural reforms (land, labour, logistics)  
• Strengthen manufacturing & exports
• Focus on private investment revival
• Maintain inflation discipline
• Invest in human capital & technology

• June 2024: Madras High Court stayed all Enforcement Directorate (ED) proceedings against private individuals allegedly linked to a TASMAC liquor scam.
• Court found absence of any scheduled (predicate) offence under the PMLA.
• Searches, seizures, sealing of premises, and coercive summons declared without jurisdiction.
• ED withdrew search authorisation, returned seized materials, and issued unconditional apology.
• On issuance of fresh summons, Supreme Court of India stayed the probe citing federalism concerns and institutional overreach.

Key Points

• ED derives powers from Prevention of Money Laundering Act, 2002.
• Money laundering offence is dependent on existence of a scheduled offence.
• Key ED powers:
  • Section 17: Search and seizure.
  • Section 19: Arrest without warrant (reason to believe).
  • Section 50: Summons and statements under oath.
  • Twin conditions for bail under PMLA reverse presumption of innocence.
• Courts have reiterated:
  • Rumours/media reports ≠ “credible information”.
  • ED cannot act independently of predicate offence.
• ED actions increasingly face judicial invalidation for procedural violations.

Static Linkages

• Rule of Law: Executive action must have legal basis and procedural fairness.
• Article 21: Protection of personal liberty against arbitrary state action.
• Federalism: Police and public order under State List; limits on central agency intrusion.
• Separation of Powers: Judicial review as check on executive excess.
• Criminal Jurisprudence: Presumption of innocence as general rule.
• Media Ethics: No “trial by media” (Press Council of India norms).

Critical Analysis

• Issues Identified
  • Initiation of ED action without established predicate offence.
  • Broad discretionary powers → scope for arbitrary enforcement.
  • Difficulty in securing bail under PMLA affects liberty.
  • Selective investigations and media leaks cause reputational damage.
  • Repeated corruption cases against ED officials weaken credibility.
• Justifications
  • Economic offences involve complex financial networks.
  • Strong laws required to meet FATF obligations.
  • Preventing dissipation of proceeds of crime needs early intervention.

Way Forward

• Mandatory establishment of scheduled offence before ED coercive action.
• Clear statutory limits on Sections 17, 19, and 50.  
• Uniform audio-video recording of interrogations.
• Time-bound release of attached assets if proceedings fail.
• Parliamentary and judicial oversight of ED functioning.
• Fast-track review of Vijay Madanlal Choudhary vs Union of India judgment.
• Strengthen internal vigilance and ethics mechanisms.

SMALL TABLES, BIG DIVIDENDS

Context of the News

• Republic Day 2026 chief guests: European Union institutional leadership
• Indicates shift from bilateral symbolism to bloc-level diplomacy
• Reflects India’s strategy to exploit global leadership gaps (“white spaces”)
• Occurs amid:
  • Strategic rivalry among major powers  
  • Weakening multilateral institutions
  • Rise of issue-based coalitions

Key Points

• EU Engagement
  • Engagement with EU as a single regulatory and economic bloc
  • Focus areas:
    • Trade standards
    • Climate regulations
    • Digital and data governance  
    • Competition policy
• India–EU FTA
  • Beyond tariff reduction:
    • Market access rules  
    • Sustainability norms
    • Supply-chain resilience  
  • Strategic gains:
    • Diversification from China-centric value chains
    • Hedge against US trade pressure  White Space Diplomacy
  • Areas where:
    • Problems are global
    • No single power provides leadership  
  • India acts through:
    • Convening power
    • Coalition-building  
    • Norm shaping
• BRICS (2026 Chairmanship)
  • Expanded membership → diluted cohesion
  • Core demands:
    • Global South representation
    • Development finance reform
  • Risks:
    • Anti-West positioning
    • De-dollarisation narrative  
  • India’s role:
    • Functional focus
    • Delivery-oriented agenda
• Quad Dimensio
  • Potential Quad Leaders’ Summit in India
  • Focus areas:
    • Maritime domain awareness  
    • Disaster response
    • Resilient port infrastructure
  • Emphasis on non-military public goods  
• Global Multilateral Stress
  • UN:
    • Strong legitimacy
    • Weak delivery capacity
  • G20:
    •  Affected by geopolitical rivalry
    •  Reduced focus on Global South priorities

Static Linkages

• Coalition diplomacy in multipolar world order  
• Minilateralism vs multilateralism
• Trade diversification and supply-chain resilience  
• Development finance through multilateral banks
• Disaster diplomacy and humanitarian assistance

Critical Analysis (Points Only)

• Pros
  • Enhances India’s role as rule-shaper
  • Reduces overdependence on single markets
  • Strengthens Global South leadership credibility  
  • Converts strategic capacity into public goods
• Cons / Challenges
  • Higher compliance costs for Indian firms
  • Divergent interests within BRICS
  • Risk of trade retaliation by major powers  
  • Institutional overstretch across forums

Way Forward

• Prioritise selective forum leadership
• Fast-track India–EU FTA with phased compliance  
• Keep BRICS reformist, not revisionist
• Institutionalise Quad public goods delivery
• Balance strategic autonomy with partnerships