Evening edition
Daily current affairs for UPSC, BPSC, State PCS and PSC exams.
Why in news?
The Union Cabinet approved raising the wage ceiling for mandatory Employees' Provident Fund Organisation (EPFO) coverage from ₹15,000 to ₹25,000 per month.
Key points
- Expected to bring over 51 lakh additional employees under EPFO coverage.
- Enhances access to provident fund savings, pension under EPS, and insurance under EDLI.
- Implementation date is September 17, coinciding with Vishwakarma Jayanti.
- Estimated annual government outgo to increase to ₹11,339 crore.
- Employers' and employees' contributions to EPS will also increase.
Background & context
EPFO is a statutory body under the Ministry of Labour and Employment, Government of India, that deals with provident fund, pension, and insurance to employees in the organized sector. The wage ceiling determines eligibility for mandatory social security benefits.
★ Prelims fact capsule
The previous wage ceiling for EPFO coverage was ₹15,000 per month.
✎ Mains relevance
GS Paper 1: Social Issues (Social Security, Welfare Schemes); GS Paper 3: Economy (Employment, Social Security).
Why in news?
Opposition MPs have raised concerns over the government's decision to levy a fee on UPI payments exceeding ₹2,000 to merchants, calling it an 'anti-people' move.
Key points
- A 0.4% fee will be levied on UPI transfers worth more than ₹2,000 to merchants from October 15.
- The Finance Ministry clarified that customers will not pay any charge; the fee is part of the Merchant Discount Rate (MDR).
- Person-to-person transactions and small payments are explicitly excluded from the fee.
- Unlimited free usage for individuals with no monthly quotas or volume restrictions remains unchanged.
- The Parliamentary Standing Committee on Finance may discuss the issue.
Background & context
Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI). It enables instant transfer of funds between bank accounts on a mobile platform. Merchant Discount Rate (MDR) is a fee charged by banks on credit and debit card transactions.
★ Prelims fact capsule
The new fee of 0.4% applies to UPI payments above ₹2,000 made to merchants.
✎ Mains relevance
GS Paper 3: Economy (Digital Payments, Financial Inclusion, Government Policies).
Why in news?
India summoned Pakistan's Charge d’Affaires to protest the 'unacceptable' and 'unprofessional' conduct of Pakistani naval units that resulted in a collision with an Indian naval vessel in the North Arabian Sea.
Key points
- The collision occurred on September 15, 2026, between a Pakistani naval ship and an Indian naval warship.
- No significant damage was reported, but the incident occurred in international waters.
- Pakistan's conduct contravened Article 10 of the 1991 India-Pakistan agreement on advance notice for military exercises.
- India lodged a strong protest, urging Pakistan to ensure its military units observe due care and respect agreements.
- India's Charge d’Affaires in Islamabad was also instructed to lodge a similar protest.
Background & context
The Agreement between India and Pakistan on Advance Notice on Military Exercises, Manoeuvres and Troops Movements was signed in April 1991 to promote transparency and reduce the risk of conflict.
★ Prelims fact capsule
The incident occurred in the North Arabian Sea.
✎ Mains relevance
GS Paper 2: International Relations (India's Neighbourhood Policy, Diplomatic Relations, Bilateral Agreements).