Afternoon edition
Daily current affairs for UPSC, BPSC, State PCS and PSC exams.
Why in news?
The Reserve Bank of India (RBI) has introduced new Foreign Exchange Management Act (FEMA) reporting requirements, leading to confusion among individuals, freelancers, and small service exporters.
Key points
- Individuals undertaking forex transactions for personal purposes are exempt from new FEMA reporting requirements.
- Small exporters with bills up to ₹10 lakh can use self-declaration and an invoice, not the detailed reporting process.
- Personal imports or exports, or personal earnings or spending in forex, do not require reporting.
- This includes payments for subscriptions and income from overseas clients for services like tutoring or small software.
- The ₹10 lakh threshold is per bill, not annual.
Background & context
FEMA was enacted in 1999 to consolidate and amend the law relating to foreign exchange management with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of the foreign exchange market in India.
★ Prelims fact capsule
The new FEMA reporting requirements were notified in January and became effective from October 1, 2026.
✎ Mains relevance
GS Paper III: Economy - Liberalization, economic reforms, foreign exchange management.
Why in news?
P. Vasu, a veteran freedom fighter known as ‘Socio Vasu’, passed away at the age of 103.
Key points
- He was a participant in the Quit India Movement and was imprisoned by the British police.
- After Independence, he joined the socialist movement and was mentored by Jayaprakash Narayan.
- He declined land and financial compensation offered to freedom fighters, stating his participation was for national independence.
- He also participated in protests during the Emergency and was hospitalized after police action.
- He was felicitated by then President K.R. Narayanan in 1997.
Background & context
The Quit India Movement, launched in August 1942, was a civil disobedience movement initiated by Mahatma Gandhi demanding an end to British Rule in India. The Emergency in India refers to a 21-month period from 1975 to 1977 when Prime Minister Indira Gandhi declared a state of emergency.
★ Prelims fact capsule
Socio Vasu declined 10 acres of land and ₹2,000 offered to freedom fighters in 1951.
✎ Mains relevance
GS Paper I: History - India’s struggle for Independence, Role of various leaders and movements.
Why in news?
Mirwaiz Umar Farooq expressed concern over the National Investigation Agency (NIA) court's denial of bail to separatist leader Shabir Shah, despite a Supreme Court bail order.
Key points
- Shabir Shah was granted bail by the Supreme Court in March but remains incarcerated.
- Mirwaiz termed the NIA's move as 'disappointing and unjust'.
- Concerns were raised about Shah's deteriorating health due to prolonged detention.
- The Democratic Freedom Party, headed by Shabir Shah, was banned by the Ministry of Home Affairs in 2023.
- Shah was arrested by the NIA in 2017 in an alleged terror financing case.
Background & context
The National Investigation Agency (NIA) is India's counter-terrorism and internal security agency responsible for investigating terror-related crimes across the country. Separatist movements in Kashmir have historically involved calls for self-determination or independence from India.
★ Prelims fact capsule
Shabir Shah was arrested by the NIA in 2017.
✎ Mains relevance
GS Paper II: Governance - Security challenges and their management; GS Paper III: Security - Terrorism and related issues.