1. India Expands Its Extended Continental Shelf (ECS) Claim in the Arabian Sea – International Relations
Why in News?
- India expanded its Extended Continental Shelf (ECS) claim by nearly 10,000 sq km in the Central Arabian Sea.
- Modifications were made to avoid conflict with Pakistan over maritime boundaries.
- India submitted a revised claim to the United Nations Commission on the Limits of the Continental Shelf (CLCS) in April 2025.
Key Concepts and Definitions
| Term | Definition |
|---|---|
| Territorial Sea | Up to 12 nautical miles from a nation’s baseline. Full sovereignty, like on land. |
| Exclusive Economic Zone (EEZ) | Up to 200 nautical miles; exclusive rights for exploration and resource use. |
| Extended Continental Shelf (ECS) | Beyond 200 nautical miles if a country can scientifically prove seabed continuity. |
| Commission on the Limits of the Continental Shelf (CLCS) | UN body that reviews and recommends ECS claims. |
India’s Maritime Boundary Details
| Maritime Zone | Extent |
|---|---|
| Territorial Sea | 12 nautical miles |
| EEZ | 200 nautical miles |
| Existing EEZ Area | ~2 million sq km |
| New ECS Addition | +1.2 million sq km (Arabian Sea claim adds ~10,000 sq km) |
| India’s Total Maritime Area After ECS | ~3.2 million sq km — nearly equal to India’s land area |
Dispute with Pakistan — Sir Creek Issue
- Sir Creek: A 96-km long disputed marshy region between Gujarat (India) and Sindh (Pakistan).
- 2021: Pakistan objected to India’s ECS claim, citing 100 nautical mile overlap.
- March 2023: CLCS rejected India’s full Arabian Sea claim due to unresolved disputes.
- April 2025: India submitted two partial ECS claims, excluding disputed Sir Creek areas to protect uncontested claims.
Other Overlapping Claims
| Country | Issue |
|---|---|
| Oman | Minor overlap — resolved via diplomatic agreement. |
| Myanmar & Sri Lanka | Potential overlaps in Bay of Bengal and Indian Ocean — consultations planned. |
Strategic and Scientific Contributions
- National Centre for Polar and Ocean Research (NCPOR, Goa) played a critical role in collecting scientific data (like seabed morphology and sediment thickness) necessary for ECS submission.
- Expanding ECS boosts India’s strategic maritime rights, securing potential resources like hydrocarbons, minerals, and fisheries.
Importance of the ECS Expansion
| Benefit | Impact |
|---|---|
| Resource Security | Access to seabed minerals, hydrocarbons, oil, and gas reserves. |
| Strategic Depth | Strengthens India’s maritime security in the Arabian Sea. |
| Climate and Research | Better management of marine biodiversity and environmental monitoring. |
| Global Influence | Shows India’s technical competence and strategic foresight in international law. |
Summary
India’s ECS expansion in the Arabian Sea through a strategically revised and scientifically robust submission marks a major step in consolidating maritime entitlements under UNCLOS. By circumventing bilateral disputes, India safeguards its interests in the Indian Ocean Region, boosting the blue economy, resource access, and maritime diplomacy.
Exam Connect – Possible Questions
Prelims
1. Which of the following best describes the Extended Continental Shelf (ECS)?
A. The area between a country’s coastline and 12 nautical miles
B. Area between 200 and 350 nautical miles from the baseline, if scientifically justified
C. Exclusive water zone for fishing up to 100 nautical miles
D. The total maritime area including foreign waters
Answer: B
2. Consider the following statements about the United Nations Convention on the Law of the Sea (UNCLOS):
- It allows a country to claim maritime territory beyond 200 nautical miles if it proves natural seabed extension.
- The Commission on the Limits of the Continental Shelf (CLCS) resolves territorial disputes.
- Territorial seas give nations sovereign rights over both the seabed and the water column.
Which of the statements is/are correct?
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1 only
Answer: B
(CLCS gives scientific recommendations, but does not resolve disputes.)
Mains
1. India’s expansion of its Extended Continental Shelf in the Arabian Sea reflects a mix of scientific competence and strategic foresight. Discuss the legal, strategic, and environmental significance of this move in the context of India’s maritime aspirations.
(250 words)
Final Insight
India’s pragmatic revision of its ECS claim — avoiding disputed zones — strengthens its uncontested maritime claims and shows maturity in handling complex international maritime law issues.
This move enhances India’s blue economy prospects, energy security, and geopolitical standing in the Indian Ocean Region (IOR).
2. Line of Control (LoC) – International Relations
Why in News?
- Recent reports confirm ceasefire violations by Pakistan along the Line of Control (LoC) in Kashmir Valley.
- Indian Army responded strongly to unprovoked firing, emphasizing the ongoing fragility of peace along the LoC.
Key Facts about the LoC
| Aspect | Details |
|---|---|
| Definition | A de facto military boundary between India and Pakistan in Jammu and Kashmir. |
| Not an International Border | It is not legally recognized as an international boundary but serves as a ceasefire line. |
| Origin | Established after the 1947-48 India-Pakistan War, formally referred to as the Ceasefire Line (CFL) initially. |
| Redefined | Became the Line of Control (LoC) after the Simla Agreement (1972). |
| Length | Approximately 740 kilometers. |
| Terrain | Rugged mountainous regions, dense forests, and glacial areas (e.g., Siachen). |
Geographical Scope of the LoC
| Indian Side | Pakistani Side |
|---|---|
| Jammu | Pakistan-occupied Kashmir (POK) |
| Kashmir Valley | Gilgit and Baltistan |
| Ladakh |
- Northern End: Near Siachen Glacier (Saltoro Ridge).
- Southern End: Near Poonch district.
Line of Control vs. International Border (IB)
| Line of Control (LoC) | International Border (IB) |
|---|---|
| Ceasefire Line | Officially recognized international boundary |
| Established post-1947-48 War | Established during partition (1947) |
| Disputed status | Legally undisputed |
| Heavily militarized and volatile | Comparatively stable |
Why is the LoC so Tense?
- Heavy Militarization: Both India and Pakistan maintain significant military presence.
- Frequent Skirmishes: Artillery exchanges and sniper fire are common.
- Terrorist Infiltration: Pakistan-backed terror groups often attempt to cross into Indian territory.
- Fragile Ceasefire: Despite periodic agreements (e.g., 2021 ceasefire reaffirmation), violations continue.
Important Agreements Related to LoC
| Agreement | Key Points |
|---|---|
| Karachi Agreement (1949) | Established initial Ceasefire Line after the 1947-48 war. Supervised by UN Military Observer Group in India and Pakistan (UNMOGIP). |
| Simla Agreement (1972) | After the 1971 war, CFL re-designated as the LoC. Emphasis on bilateral settlement of disputes. |
Current Relevance
- Security Challenges: Constant threats of infiltration and border conflicts.
- Diplomatic Strain: LoC incidents derail peace talks and diplomatic initiatives.
- Civilian Impact: Frequent shelling affects villages near the LoC, causing casualties and displacements.
Summary
The Line of Control, though not an internationally recognized border, is one of the world’s most militarized and politically sensitive boundaries. It reflects the larger unresolved Kashmir dispute and remains a test of India’s military vigilance, diplomatic acumen, and border management strategy.
Exam Connect – Possible Questions
Prelims
1. Which of the following statements is/are correct?
- The Line of Control (LoC) is the legally recognized international boundary between India and Pakistan.
- The Simla Agreement converted the Ceasefire Line into the LoC.
- The LoC is monitored by the United Nations Peacekeeping Forces.
A. 1 only
B. 2 only
C. 1 and 3 only
D. 2 and 3 only
Answer: B
(Statement 1 is false; Statement 3 is partially true — only UNMOGIP observes from Pakistan side, India doesn’t recognize it.)
Mains
1. The Line of Control remains a flashpoint in India-Pakistan relations. Discuss the strategic, diplomatic, and humanitarian implications of LoC-related tensions. What measures can be taken to enhance border stability?
(250 words)
Final Insight
The Line of Control remains one of the most volatile military frontiers in the world.
While it symbolizes a delicate ceasefire, recurring violations highlight the deep-rooted mistrust and unresolved political tensions between India and Pakistan.
3. Key Facts about the Continental Shelf – Geography
Why in News?
- India has expanded its claim in the Central Arabian Sea by nearly 10,000 sq.km regarding its Extended Continental Shelf (ECS).
- The move aims to resolve maritime boundary disputes with Pakistan while asserting strategic and economic rights over ocean resources.
What is a Continental Shelf?
| Aspect | Details |
|---|---|
| Definition | A continental shelf is the submerged extension of a continent, extending from the shoreline to the shelf break, where the ocean floor steeply drops off. |
| Typical Features | Shallow waters (up to ~200 meters deep), flat terrain, rich sunlight penetration, abundant marine biodiversity. |
| Shelf Break | The point where the relatively shallow continental shelf ends and the deep ocean floor begins (continental slope). |
Formation of Continental Shelves
- Millions of years of sedimentation from rivers and coastal erosion.
- Deposition of organic material, sand, silt, and clay over geological timescales.
- Example: Ganges-Brahmaputra delta sediment contributes to the northern Bay of Bengal shelf.
Ecological and Economic Significance
| Aspect | Importance |
|---|---|
| Biodiversity Hotspots | Rich ecosystems with coral reefs, kelp forests, and fish nurseries. |
| Primary Productivity | Sunlight penetration allows abundant photosynthesis by phytoplankton, supporting marine food chains. |
| Fisheries | Major commercial fishing grounds globally. |
| Oil, Gas, and Mineral Resources | Shelves often contain rich deposits of hydrocarbons and minerals like polymetallic nodules. |
| Climate Regulation | Phytoplankton in shelves play a role in carbon sequestration. |
Legal Framework: United Nations Convention on the Law of the Sea (UNCLOS)
| Area | Rights |
|---|---|
| Territorial Sea (up to 12 nautical miles) | Full sovereignty like land territory. |
| Exclusive Economic Zone (EEZ) (up to 200 nautical miles) | Exclusive rights for exploration, exploitation of resources (both water column and seabed). |
| Continental Shelf (up to 200 nautical miles, or beyond) | Rights over the seabed and subsoil for natural resource exploration, even beyond 200 nm if scientifically proven. |
Under Article 76 of UNCLOS, a country can claim an Extended Continental Shelf (ECS) beyond 200 nautical miles if:
- It proves through scientific and hydrographic data that the seabed is a natural extension of its landmass.
- The submission is made to the Commission on the Limits of the Continental Shelf (CLCS).
India’s Maritime Claims
- Territorial Sea: 12 nautical miles.
- Exclusive Economic Zone (EEZ): 200 nautical miles (approx. 2 million sq.km).
- Extended Continental Shelf: India now claims an additional ~1.2 million sq.km after ECS extension moves.
- Total maritime area almost equivalent to India’s land area (3.274 million sq.km).
Current Challenges
- Maritime Boundary Disputes:
- With Pakistan (Sir Creek region).
- Overlaps with Oman, Myanmar, and Sri Lanka (under negotiation).
- Geopolitical Importance: Continental shelves hold strategic value for:
- Energy security (hydrocarbons).
- Food security (fisheries).
- Maritime influence in geopolitics (e.g., Indian Ocean Region).
Conclusion
The continental shelf is crucial not only for its ecological importance but also for:
- Economic potential (oil, gas, minerals).
- Strategic security.
- International maritime law and diplomacy.
India’s proactive moves to expand its ECS show its commitment to securing its blue economy and reinforcing its maritime sovereignty.
Exam Connect – Possible Questions
Prelims
1. The term “Continental Shelf” refers to:
A. A deep trench in the ocean floor
B. The flat seafloor beyond the abyssal plain
C. The submerged extension of a continent near coastal margins
D. The region between two tectonic plates
Answer: C
2. Under UNCLOS, a country can claim an Extended Continental Shelf beyond 200 nautical miles if:
- It proves natural prolongation of the landmass
- The region has exclusive fishing rights
- It submits the claim to the United Nations Security Council
- It provides hydrographic and sediment data
Select the correct answer:
A. 1 and 4 only
B. 2 and 3 only
C. 1, 2 and 4
D. All of the above
Answer: A
Mains
1. What is a continental shelf? Discuss its ecological and economic significance, and evaluate how India’s efforts to expand its continental shelf claims strengthen its maritime security and blue economy prospects.
(250 words)
4. United Nations High Seas Treaty (BBNJ Agreement) – InternationaI Relations
Why in News?
- Delegates recently met in New York for the first session of the Preparatory Commission to finalize rules and procedures for implementing the High Seas Treaty.
- The Treaty, officially called the Biodiversity Beyond National Jurisdiction (BBNJ) Agreement, was adopted after decades of negotiations.
What is the High Seas Treaty?
| Feature | Details |
|---|---|
| Formal Name | Biodiversity Beyond National Jurisdiction (BBNJ) Agreement |
| Type | Legally binding international treaty |
| Focus | Conservation and sustainable use of marine biodiversity in high seas (areas beyond national jurisdiction) |
| Entry into Force | 120 days after 60 countries ratify the treaty |
Key Objectives
- Conservation of Marine Biodiversity: Protect ecosystems beyond national borders.
- Marine Protected Areas (MPAs): Legally establish and manage MPAs to safeguard marine wildlife and ecosystems.
- Sustainable Resource Use: Ensure equitable sharing of marine genetic resources.
- Environmental Impact Assessments: Mandate assessments before activities like deep-sea mining, to minimize harm.
- Inclusive Governance: Establish a Conference of Parties (COP) to monitor implementation, accountability, and enforcement.
Important Provisions
| Area | Provisions |
|---|---|
| Marine Protected Areas | Aim to protect 30% of oceans by 2030 (aligned with the Kunming-Montreal Global Biodiversity Framework). |
| Resource Sharing | Fair and equitable access to marine genetic resources (e.g., enzymes, pharmaceuticals from marine organisms). No exclusive sovereign rights. |
| Environmental Assessments | Commercial activities like fishing, shipping, and mining must undergo prior environmental evaluations. |
| Traditional Knowledge | Recognizes and incorporates traditional knowledge of Indigenous and local communities. |
| Capacity Building & Technology Transfer | Supports developing nations with technology, funding, and expertise to conserve marine biodiversity. |
What are the High Seas?
- Definition: Areas beyond a country’s Exclusive Economic Zone (EEZ), which extends 200 nautical miles (approx. 370 km) from a country’s coastline.
- Coverage:
- Over 60% of the world’s oceans.
- Nearly half of Earth’s surface!
- Challenges: Previously lacked a comprehensive legal framework, leading to:
- Overfishing.
- Deep-sea mining threats.
- Pollution and climate change impacts.
Significance of the Treat
- First legally binding treaty focused solely on protecting marine biodiversity beyond national borders.
- Reinforces global cooperation under the UN Convention on the Law of the Sea (UNCLOS) framework.
- Bridges the regulatory gap for high seas governance.
- Promotes global equity by ensuring that no single nation monopolizes marine resources.
Conclusion
The High Seas Treaty is a landmark achievement in international law and environmental governance, aimed at:
- Balancing exploration and conservation.
- Ensuring fair resource distribution.
- Securing ocean health for future generations.
Its success will depend on rapid ratification and genuine international cooperation.
Exam Connect – Possible Questions
Prelims
1. The Biodiversity Beyond National Jurisdiction (BBNJ) Treaty deals primarily with:
A. Protection of endangered species under CITES
B. Air pollution monitoring over oceanic zones
C. Conservation of marine biodiversity in the high seas
D. Creation of artificial islands in disputed waters
Answer: C
Mains
The High Seas Treaty marks a major advancement in international environmental law. Critically examine how it addresses the governance gap in marine biodiversity conservation beyond national jurisdiction. What are the challenges in its implementation (250 words)
5. Mahuadanr Wolf Sanctuary: India’s First Wolf Sanctuary – Environment
Why in News?
- The Mahuadanr Wolf Sanctuary, located in Latehar district, Jharkhand, is India’s first and only wildlife sanctuary dedicated to wolf conservation.
- It plays a critical role in protecting the endangered Indian grey wolf.
Key Facts About Mahuadanr Wolf Sanctuary
| Feature | Details |
|---|---|
| Location | Latehar District, Jharkhand |
| Area | ~63 square kilometers |
| Established | 1976 |
| Part of | Palamau Tiger Reserve |
| Key Species | Indian grey wolf, spotted deer, wild boar, hyenas, bears |
About the Indian Grey Wolf (Canis lupus pallipes)
| Feature | Details |
|---|---|
| Range | Southwest Asia and Indian subcontinent |
| Habitat | Scrublands, grasslands, and semi-arid agroecosystems |
| Behavior | Forms smaller packs than other wolf species; less vocal; nocturnal hunter (dusk to dawn) |
| Adaptations | Thrives in warmer climates unlike other wolf subspecies |
Conservation Status
| Conservation System | Status |
|---|---|
| IUCN Red List | Endangered |
| CITES | Appendix I (highest protection against international trade) |
| Wildlife Protection Act (India), 1972 | Schedule I (maximum legal protection) |
Importance of the Mahuadanr Wolf Sanctuary
- Habitat Protection: Provides safe breeding and hunting grounds for the highly vulnerable Indian grey wolf.
- Biodiversity Conservation: Supports co-existing species like deer, hyenas, boars, and various flora.
- Education and Awareness: Plays a role in sensitizing local communities about the importance of wolves in ecosystems.
- Ecological Balance: Wolves are apex predators, vital for controlling prey populations and maintaining healthy ecosystems.
Conclusion
The Mahuadanr Wolf Sanctuary is a unique conservation effort crucial for the survival of India’s lesser-known, often misunderstood, apex predator—the Indian grey wolf. Protecting such species is essential not just for biodiversity but for maintaining the delicate ecological balance in India’s grassland and scrub ecosystems.
Exam Connect – Possible Questions
Prelims
1. With reference to the Indian grey wolf (Canis lupus pallipes), consider the following statements:
- It is adapted to cold, alpine conditions.
- It is listed under Schedule I of the Wildlife Protection Act, 1972.
- It is known to hunt during the day in large packs.
- It is found only in the Western Himalayas.
Which of the above statements is/are correct?
A. 2 only
B. 1 and 3 only
C. 1, 2 and 4 only
D. 2 and 4 only
Correct Answer: A
Explanation: Statement 1 is incorrect (it is adapted to warm, dry climates).
Statement 3 is incorrect (it is nocturnal and lives in small packs).
Statement 4 is incorrect (range includes much of peninsular and central India).
Mains
Discuss the ecological significance of the Indian grey wolf and examine the role of protected areas like the Mahuadanr Wolf Sanctuary in conserving India’s neglected grassland and dryland ecosystems. (250 words)
6. Key Facts About Anaemia – Science and Technology
Why in News?
- A recent UK study found that anaemia during pregnancy is linked to a 47% increased risk of heart conditions in newborns.
- Highlights the broader public health implications of maternal anaemia on infant health.
What is Anaemia?
| Aspect | Details |
|---|---|
| Definition | A condition where the body lacks enough healthy red blood cells or hemoglobin to carry adequate oxygen to tissues. |
| Function of Hemoglobin | Hemoglobin in red blood cells transports oxygen from the lungs to the body’s organs. |
| Symptoms | Tiredness, weakness, pale or yellowish skin, shortness of breath, dizziness, irregular heartbeat. |
Types of Anaemia
| Type | Cause |
|---|---|
| Iron-deficiency Anaemia | Lack of iron, leading to reduced hemoglobin production. Most common form. |
| Vitamin-deficiency Anaemia | Insufficient vitamin B12 or folate. |
| Aplastic Anaemia | Bone marrow doesn’t produce enough red blood cells (can be due to infections, autoimmune diseases). |
| Hemolytic Anaemia | Red blood cells are destroyed faster than they can be produced. |
| Sickle Cell Anaemia | Inherited disorder causing abnormal hemoglobin, leading to distorted (sickle-shaped) red blood cells. |
Global Statistics (According to WHO)
- 40% of children aged 6-59 months are anaemic.
- 37% of pregnant women suffer from anaemia.
- 30% of women aged 15-49 years are affected globally.
Note: Anaemia disproportionately affects low- and middle-income countries, including India.
Severity of Anaemia
| Severity | Hemoglobin Level | Health Impact |
|---|---|---|
| Mild | Slightly below normal | Often asymptomatic or mild symptoms. |
| Moderate | Moderately reduced hemoglobin | Fatigue, weakness, shortness of breath. |
| Severe | Very low hemoglobin levels | Life-threatening complications, organ damage. |
Causes of Iron-Deficiency Anaemia
- Inadequate iron intake (poor diet).
- Malabsorption (e.g., celiac disease).
- Blood loss (e.g., menstruation, ulcers).
- Increased need (e.g., pregnancy, growth spurts).
Treatment and Management
| Strategy | Details |
|---|---|
| Dietary Changes | Eat iron-rich foods: spinach, red meat, lentils, fortified cereals. |
| Iron Supplements | Oral iron tablets or intravenous iron therapy. |
| Vitamin Supplements | B12 or folate supplements if deficiency exists. |
| Medical Procedures | Blood transfusions for severe anaemia; treating underlying causes like ulcers. |
Why is Anaemia a Concern for Public Health?
- Maternal Health: Pregnant women with anaemia are at greater risk of complications like preterm birth, low birth weight, and infant heart issues.
- Economic Burden: Reduced work capacity, higher healthcare costs.
- Child Development: Impaired cognitive and physical development in anaemic children.
- Disease Susceptibility: Weakens the immune system, making individuals more prone to infections.
Summary
Anaemia, particularly iron-deficiency anaemia, is a critical global health issue affecting children, women, and especially pregnant women. With links to serious outcomes such as infant heart conditions, anaemia’s impact extends from individual health to national productivity. Understanding its causes, types, and effective interventions can guide robust public health responses and reduce its burden, particularly in low-income regions.
Exam Connect – Possible Questions
Prelims
- Which of the following is the most common type of anaemia?
a) Aplastic Anaemia
b) Sickle Cell Anaemia
c) Iron-deficiency Anaemia
d) Hemolytic Anaemia
Answer: c) - What is the primary function of hemoglobin?
a) Regulate body temperature
b) Help blood clot
c) Transport oxygen
d) Carry nutrients
Answer: c) - According to WHO, what percentage of pregnant women are anaemic globally?
a) 20%
b) 30%
c) 37%
d) 45%
Answer: c) - Sickle Cell Anaemia is classified as which of the following?
a) Acquired blood disorder
b) Autoimmune condition
c) Genetic disorder
d) Infectious disease
Answer: c) - Which of the following is NOT a cause of iron-deficiency anaemia?
a) Malabsorption
b) Genetic mutation in hemoglobin
c) Blood loss
d) Poor diet
Answer: b)
Mains
- Discuss the public health implications of anaemia in low- and middle-income countries. How can policy and healthcare systems address this issue effectively?
- Anaemia in pregnancy has been linked to increased risks of infant health complications. Examine the physiological reasons behind this and suggest appropriate maternal health strategies.
- Iron-deficiency anaemia is often preventable. Evaluate the role of nutrition, education, and supplementation in reducing its prevalence.
- Highlight the impact of anaemia on national development, especially in terms of economic productivity and human capital.
- How can targeted interventions reduce anaemia prevalence among women of reproductive age? Refer to global examples or Indian government schemes.
Final Insight
Anaemia, particularly iron-deficiency anaemia, remains a major preventable public health problem.
Combating it requires a multi-pronged approach involving nutrition, education, healthcare interventions, and policy reforms.
7. Frequent Downtimes in UPI Services – Economy
Why in News?
- In March and April 2025, the Unified Payments Interface (UPI) system faced three major outages, disrupting transactions on popular platforms like GPay and PhonePe.
- The disruptions were caused by banks overloading the NPCI system with excessive transaction status check requests.
Understanding How UPI Works
| Aspect | Details |
|---|---|
| Technology | Based on IMPS (Immediate Payment Service) architecture |
| Participants | All major public and private banks |
| Interoperability | Users can link bank accounts across multiple UPI-enabled apps (PhonePe, GPay, Paytm, etc.) |
| Central Role of NPCI | Routes almost all UPI transactions, encrypts PINs, and communicates with banks |
| Single Point of Failure | Any glitch at NPCI affects the entire UPI ecosystem nationwide |
Why Did the Recent Outages Happen?
- Excessive Load: Individual banks sent large volumes of “check transaction” requests to NPCI.
- NPCI Overload: NPCI’s centralized servers could not handle the surge, causing system-wide slowdowns and outages.
- Lack of Direct Bank Autonomy: Banks heavily depend on NPCI rather than having decentralized processing capability.
Measures to Address UPI Outages
| Initiative | Details |
|---|---|
| UPI Lite | Allows small-value transactions (up to ₹2,000) without PIN entry; reduces NPCI load slightly, but device verification still needed. |
| Incentive Program by MeitY | Rewards banks with better uptime and penalizes those with frequent downtimes. |
| Comparisons with Card Networks | Unlike UPI, Visa and Mastercard maintain stringent Service Level Agreements (SLAs) to ensure minimal downtime and financial penalties for failures. |
| Need for Distributed Processing | A decentralized UPI model could improve resilience, avoiding over-dependence on NPCI. |
Economic Impact of UPI Downtimes
- Disrupted Commerce: Affects digital payments, e-commerce, retail, and daily consumer transactions.
- Increased Operational Costs: Banks and PSPs incur higher troubleshooting and system upgrade expenses.
- Consumer Trust Issues: Frequent downtimes can erode public trust in digital payment systems.
- Pressure on Banks: Banks are caught between absorbing costs (no MDR revenue) and needing to maintain high service quality.
Conclusion
While UPI has revolutionized India’s digital payments landscape, its centralized dependency on NPCI makes it vulnerable. Strengthening server capabilities, improving transaction management protocols, and incentivizing better bank performance are crucial steps toward ensuring a more resilient and future-ready UPI ecosystem.
Exam Connect – Possible Questions
Prelims
- Which organization is responsible for routing and encrypting UPI transactions in India?
a) RBI
b) SEBI
c) NPCI
d) NITI Aayog
Answer: c) NPCI - What is the main reason for UPI downtimes reported in early 2025?
a) Cyberattacks
b) NPCI system overload from excessive transaction check requests
c) Low internet penetration
d) Failure in app algorithms
Answer: b) - Which of the following is NOT a UPI-enabled app?
a) PhonePe
b) Paytm
c) BharatPe
d) Rupay Credit Card
Answer: d) - What is the transaction limit for UPI Lite?
a) ₹500
b) ₹1,000
c) ₹2,000
d) ₹5,000
Answer: c) - Which initiative aims to reward or penalize banks based on UPI service uptime?
a) Digital India Program
b) MeitY Uptime Incentive Scheme
c) PMGDISHA
d) IndiaStack 2.0
Answer: b)
Mains
- Discuss the structural vulnerabilities of India’s UPI ecosystem in light of recent service outages. Suggest a roadmap for ensuring high reliability in digital payments.
- Critically evaluate the role of NPCI in the UPI ecosystem. Should India consider a decentralized digital payments architecture? Justify your answer.
- The UPI system is crucial to India’s goal of becoming a cashless economy. What are the economic implications of frequent downtimes on businesses and consumers?
- Compare the service level assurance mechanisms in UPI with those in global card networks like Visa and Mastercard. What lessons can India draw from them?
- How can public policy and technological innovation be leveraged to ensure uninterrupted access to real-time digital payment services in India?