Why in the News?

• In February 2026, the Reserve Bank of India announced a draft framework to compensate customers up to Rs. 25,000 for losses arising from small-value digital frauds, even in certain cases of user error.

What’s in Today’s Article?

• Digital Payments & Fraud Risks (Background, Existing Framework, Key Features of Proposed Framework, Significance, Challenges, etc.)

Background: Growth of Digital Payments and Fraud Risks in India

• India has witnessed an unprecedented expansion in digital payments over the past decade, driven by initiatives such as UPI, Aadhaar-based authentication, and financial inclusion programmes.
• While this shift has enhanced convenience and transparency, it has also led to a rise in digital fraud cases, including phishing, OTP-based scams, unauthorised electronic transactions, and social engineering attacks.
• According to regulatory assessments, fraudsters increasingly exploit gaps in user awareness, delayed reporting, and weak authentication mechanisms.
• Senior citizens and first-time digital users are particularly vulnerable.
• This evolving risk landscape has necessitated stronger regulatory safeguards to protect customers while maintaining trust in digital payment systems.

Existing RBI Framework on Customer Liability

• The RBI first issued detailed instructions in 2017 to limit customer liability in unauthorised electronic banking transactions. These guidelines classified liability based on factors such as:

• Delay in reporting unauthorised transactions
• Negligence on the part of banks or customers
• Nature of the fraud (system failure vs. customer compromise)

• Under this regime, customers could enjoy zero or limited liability if they reported fraud promptly. However, the framework did not mandate direct compensation for small-value losses, especially in cases involving partial customer fault, such as OTP sharing under deception.
• With rapid technological changes and growing fraud sophistication, RBI reviewed the adequacy of these rules, leading to the proposed revisions.

Key Features of the Proposed RBI Compensation Framework

• The newly proposed framework seeks to introduce a structured compensation mechanism for victims of small-value digital fraud. Its major features include:

• Compensation Cap: Customers may be compensated for losses up to Rs. 25,000 per fraudulent transaction.
• Scope: The framework applies primarily to small-value digital frauds, where recovery through existing mechanisms is difficult.
• User Error Consideration: Compensation may be available even in cases where customers shared OTPs or credentials under coercion or deception, subject to conditions.
• Public Consultation: Draft instructions will be placed in the public domain to invite stakeholder feedback before finalisation.

• This approach marks a shift from a purely liability-based framework to a consumer-protection-oriented compensation model.

Additional Safety Measures for Digital Payments

• Alongside compensation, the RBI has proposed several preventive measures to reduce fraud incidence:

• Lagged Credits: Introducing time delays before crediting funds in high-risk transactions.
• Enhanced Authentication: Additional verification layers for vulnerable groups, such as senior citizens.
• Targeted Risk Profiling: Differentiated safeguards based on user behaviour and transaction patterns.

• These measures aim to balance user convenience with systemic security, especially in high-volume digital ecosystems.

Related Consumer Protection Reforms by RBI

• The compensation proposal is part of a broader regulatory push to strengthen consumer rights in financial services. The RBI has announced draft guidelines in three key areas:

• Mis-selling of Financial Products: Ensuring the suitability of third-party products sold by banks.
• Loan Recovery Practices: Harmonising rules governing recovery agents and borrower treatment.
• Customer Liability Norms: Updating rules on unauthorised electronic transactions to reflect current risks.

• Together, these reforms indicate a shift towards outcome-based consumer protection rather than procedural compliance.

Significance for India’s Digital Economy

• The proposed compensation framework is significant for several reasons:

• Trust Building: Reassures users that financial losses from fraud will not always be borne individually.
• Financial Inclusion: Encourages continued digital adoption among vulnerable populations.
• Regulatory Accountability: Places greater responsibility on banks and payment service providers to strengthen security systems.
• Global Alignment: Reflects international best practices in consumer protection for digital finance.

• For India, which aims to become a global leader in digital public infrastructure, safeguarding user confidence is critical.

Challenges and Implementation Concerns

• Despite its benefits, the framework raises certain challenges:

• Moral Hazard: Risk of reduced user caution if compensation is perceived as guaranteed.
• Operational Burden: Banks must establish clear, fast, and fair grievance redressal mechanisms.
• Fraud Classification: Differentiating genuine victims from negligent behaviour will require robust assessment protocols.

• Effective implementation will depend on clear guidelines, technological support, and coordination between banks, regulators, and law enforcement agencies.

Why in News?

• A deadly explosion in an illegally operating rat-hole coal mine in East Jaintia Hills district, Meghalaya, has resulted in the death of 25 miners.
• The incident has once again highlighted the persistence of illegal mining in the state despite a ban by the National Green Tribunal (NGT) and the Supreme Court.
• It raises serious concerns about regulatory enforcement, governance failure, labour safety, and disaster management preparedness.

What’s in Today’s Article?

• Nature of the Incident
• Rat-Hole Mining - Structural and Environmental Concerns
• Legal and Administrative Dimensions
• Scale of the Illegal Mining Problem
• Challenges Highlighted
• Way Forward
• Conclusion

Nature of the Incident:

• A dynamite explosion occurred in a rat-hole mine in the Thangkso area, a remote region with poor connectivity.
• Rescue teams comprising the NDRF, SDRF, and Special Rescue Teams retrieved multiple bodies from narrow underground tunnels.
• The mine structure included -
  • Five vertical shafts (almost 100 feet deep)
  • Each shaft branching into 2–3 narrow horizontal tunnels
  • Tunnels measuring only 2 feet high and 3 feet wide, requiring miners to crawl
• Three bodies were found 350 feet horizontally inside a rat-hole tunnel.
• Rescue operations were hampered by -
  • Water accumulation
  • Mudslides due to dripping water
  • Rockfall hazards
  • Extremely confined working spaces

Rat-Hole Mining - Structural and Environmental Concerns:

• What is rat-hole mining?
  • A primitive and hazardous coal extraction method, which involves digging narrow pits and horizontal tunnels to manually extract coal.
  • It is widely prevalent in Meghalaya due to unique land ownership patterns (community/private ownership).
• Why is it problematic?
  • Because it violates the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).
  • It was banned by the NGT (2014) and the ban was upheld by the Supreme Court.
  • These violations leads to -
    • Severe environmental degradation
    • Acid mine drainage
    • Water contamination
    • Land instability
    • Loss of biodiversity
  • There is a complete absence of worker safety mechanisms.

Legal and Administrative Dimensions:

• Criminal action: Following the incident, a case FIR registered under charges that include culpable homicide, violation of the MMDR Act and the Explosive Substances Act. Two mine owners were arrested.
• Judicial oversight:
  • Justice (Retd) BP Katakey committee: Appointed by the Meghalaya High Court to monitor illegal coal-mining in the state since 2022 following a suo-motu PIL taken up by the court on the issue.
  • Findings: Flagged Widespread illegal mining in Meghalaya, particularly the East Jaintia Hills.
  • Meghalaya HC: “No one in the state, except the high court, is taking the issue very seriously”.

Scale of the Illegal Mining Problem:

• As per Justice Katakey Committee findings, over 22,000 illegal mine openings in East Jaintia Hills alone, and over 25,000 across Meghalaya.
• East Jaintia Hills was identified as the worst-affected district.
• Past tragedies: 2018 Ksan incident – 15 miners killed in flooding, Umpleng incident – 5 miners died.
• This indicates a pattern of systemic regulatory collapse rather than isolated accidents.

Challenges Highlighted:

• Governance deficit: Weak enforcement of NGT and Supreme Court orders. Lack of political and administrative will. Local complicity and informal protection networks.
• Terrain and accessibility: Remote location (25 km takes around 3 hours by road). Difficult terrain requiring 4WD vehicles. Slows both regulation and rescue.
• Informal labour exploitation: Migrant and economically vulnerable workers. Absence of safety nets or formal contracts. Occupational hazards without social security.
• Disaster management constraints: Hazardous confined spaces. Waterlogging and collapse risk. Inadequate early detection and monitoring systems.
• Constitutional and federal complexity: Meghalaya’s Sixth Schedule Community land ownership under Autonomous District Councils. Regulatory ambiguity exploited for illegal mining.
• Broader issues:
  • Sustainable Development vs livelihood concerns
  • Environmental governance and rule of law
  • Judicial activism vs executive inaction
  • Cooperative federalism in resource regulation
  • Disaster risk reduction in informal sectors
  • Internal security linkages (illegal mining networks and criminal economy)

Way Forward:

• Strict enforcement and monitoring: Real-time satellite surveillance of illegal mining. Independent regulatory authority for mining oversight. Strengthened coordination between State Government, Autonomous Councils, and Centre.
• Institutional accountability: Fix responsibility of district officials. Time-bound compliance reporting to High Court. Strengthen implementation of MMDR Act provisions.
• Formalisation of the mining sector: Introduce regulated, scientific, and environmentally compliant mining models. Alternative livelihood programs for affected communities. Skill development and employment diversification.
• Environmental restoration: Mine closure plans. Rehabilitation of degraded land and water bodies. Polluter Pays Principle implementation.
• Worker safety framework: Strict compliance with labour laws. Insurance and compensation mechanisms. Community awareness regarding occupational risks.

Conclusion:

• The Meghalaya rat-hole mining tragedy is not merely a mining accident—it is a stark reminder of the consequences of institutional apathy, regulatory failure, and socio-economic vulnerability.
• Despite judicial bans and repeated warnings, illegal mining continues unabated, turning preventable disasters into recurring tragedies.
• Ensuring environmental sustainability, worker safety, and accountable administration is not just a policy necessity but a constitutional obligation under Articles 21 and 48A of the Indian Constitution.
• Unless systemic reforms replace episodic reactions, such “incidents waiting to happen” will continue to claim lives.

Context

• The contemporary global order is marked by geopolitical rivalry, economic nationalism, and institutional uncertainty.
• Within this context, the recent breakthrough in trade negotiations between India and the European Union (EU) represents more than a commercial arrangement.
• The agreement reflects a deeper strategic convergence between two influential actors seeking stability and autonomy in a rapidly changing world.
• Rather than a narrow settlement of tariffs, the development signals the emergence of a partnership with the capacity to influence a multipolar international system and contribute to global stability.

Historical Background and Significance

• Negotiations between India and the EU extended over nearly twenty-five years, repeatedly encountering deadlock and delay.
• The prolonged process demonstrated the difficulty of aligning two complex economic systems with different regulatory traditions and development priorities.
• The eventual breakthrough indicates a shift in policy orientation on both sides.
• Economic incentives alone cannot explain the progress; broader political and geopolitical considerations now shape cooperation. The agreement therefore stands as a turning point in bilateral relations.

Role of Political Leadership and Trust

• Sustained diplomatic engagement created the conditions necessary for compromise.
• Frequent summits and high-level dialogue fostered trust and mutual understanding, allowing leaders to address domestic resistance.
• In India, policymakers moderated protectionism by presenting Europe as a reliable and diversified economic partner.
• In Europe, political guidance encouraged the bureaucracy to move beyond rigid negotiation frameworks.
• The willingness of leadership to invest political capital transformed a stalled negotiation into a workable agreement and deepened cooperation.

Geopolitical Drivers of the Agreement

• The global environment strongly influenced this development. Intensifying competition among major powers, economic pressures, and security challenges increased the need for diversified partnerships.
• Concerns about economic dependence and coercion encouraged both sides to pursue resilience through collaboration.
• The agreement therefore represents a pragmatic response to a changing international system and a collective attempt to safeguard security and long-term interests.

Key Features of India-EU Free Trade Agreement

• Expanding Beyond Trade: Defence and Security Cooperation
  • Durability requires moving beyond economic exchange. Defence and security collaboration offers a crucial foundation.
  • Shared interests in maritime routes and regional maritime order highlight the importance of the Indo-Pacific.
  • Joint exercises, information-sharing, and institutional arrangements can strengthen regional capacity-building and support a broader partnership.
  • Such measures elevate the relationship from economic cooperation to strategic alignment.
• Energy Partnership and Climate Cooperation
  • Energy policy creates another strong link. Europe’s commitment to decarbonisation intersects with India’s need for affordable development.
  • Collaboration in renewable technologies, green hydrogen, and modern infrastructure can produce mutual benefits while addressing climate challenges.
  • Shared projects encourage long-term economic interdependence and reinforce environmental responsibility.
• Technology and Innovation
  • Technological development represents the most transformative dimension of cooperation.
  • Global power increasingly depends on standards in technology, semiconductors, artificial intelligence, and data governance.
  • Joint initiatives in innovation and digital public infrastructure can reduce vulnerability and enhance sovereignty in emerging sectors.
  • By shaping common rules, both partners can encourage progress while safeguarding democratic principles.
• Mobility and Societal Connections
  • The movement of people strengthens institutional ties.
  • Greater mobility for students, researchers, and skilled professionals expands educational exchange and supports shared mobility and knowledge networks.
  • Addressing visa barriers and professional recognition would deepen societal links and sustain interdependence beyond government-level engagement.
• Contribution to a Multipolar World Order
  • Cooperation contributes to a broader realignment in international politics. Flexible partnerships among influential actors increasingly replace rigid alliance systems.
  • By coordinating policies and supporting development initiatives, India and the EU can promote balanced growth and reinforce democratic values across regions.
  • Their collaboration may help moderate global rivalries and support a cooperative order.

Conclusion

• The trade agreement marks the beginning of a long-term transformation rather than the end of negotiations.
• Political engagement and changing global conditions enabled the breakthrough, but lasting success depends on sustained commitment in security, energy, technology, and societal exchange.
• With continued implementation, the partnership can strengthen economic growth and international cooperation.
• The agreement therefore forms a foundation for a durable strategic relationship capable of contributing to a stable and cooperative global system.

Context

• Over three decades of international negotiations have produced agreements, conferences, and declarations promising collective action against global warming.
• Yet global emissions continue to rise and the 1.5°C target grows increasingly unattainable. The paradox of global climate governance lies not in ignorance but in insufficiency.
• The international architecture, centred on the Kyoto Protocol and the Paris Agreement, provides a framework for dialogue without ensuring decisive action.
• The failure emerges from structural politics, economic priorities, and social realities that privilege short-term interests over long-term planetary stability.

Institutional Structure and the Illusion of Progress

• The United Nations process operates through recurring Conferences of the Parties under the UNFCCC.
• Participation resembles voluntary engagement rather than obligation. Countries commit rhetorically while avoiding costly measures in practice. Because decisions require consensus, every nation effectively possesses a veto.
• This design promotes agreement on language but discourages enforceable action.
• Declarations frequently contain ambitious goals, yet operational provisions remain weak.
• The system therefore produces diplomatic success without environmental change.
• Instead of collapse, governance experiences drift, institutions function, negotiations continue, but effective action remains limited.
• Agreements display aspiration without accountability, creating a cycle of negotiation rather than implementation.

The Dominant Role of Politics

• National interest consistently outweighs global urgency. Political leaders operate within short electoral cycles, whereas mitigation requires long-term commitment.
• Governments therefore attempt to minimise immediate economic costs while maintaining international legitimacy.
• Climate policy becomes an exercise in managing expectations, postponing decisions, and distributing responsibility.
• Every conference is celebrated as progress even when emission trajectories remain unchanged. Such behaviour is politically rational but environmentally insufficient.
• The logic of governance prioritises stability of power over planetary stability. Consequently, ambition appears in principles while hesitation governs outcomes, reinforcing systemic inaction.

Economic Incentives and Market Behaviour

• Economic systems reinforce political hesitation. Markets reward immediate profit, whereas climate protection requires sustained investment and restraint.
• Corporations and financiers respond to present incentives rather than future consequences.
• Future generations are not economic participants and therefore lack representation within market decision-making.
• The pursuit of economic growth intensifies the conflict. Governments depend on expansion for employment and legitimacy, making restrictions on fossil-fuel use politically risky.
• As a result, economic priorities override ecological considerations. Long-term sustainability competes with short-term returns, and market behaviour consistently favours the latter.
• The system functions according to design, but the outcome undermines planetary security.

Society and Public Engagement

• Public behaviour contributes to the problem. Citizens prioritise immediate needs, employment, food, housing, and health.
• Climate change remains an abstraction until it manifests as disaster. Without sustained public pressure, policymakers face little incentive to adopt costly reforms.
• Individuals become victims of climatic impacts rather than participants in prevention. The absence of societal urgency weakens political will and reinforces delayed response.

Science and the Politics of Uncertainty

• Scientific research has already established climatic mechanisms, projected warming pathways, and identified risk.
• The barrier is not knowledge but interpretation. Remaining scientific uncertainty is used to justify postponement, diffuse responsibility, and delay decisive policy.
• The issue has shifted from scientific inquiry to strategic calculation. Evidence exists; implementation remains limited.
• The gap between scientific clarity and political behaviour illustrates the transformation of science into an instrument within political debate.

COP30 and the Gap Between Words and Action

• Recent negotiations illustrate structural limitations. Cooperation was emphasised, yet binding emission reductions were absent.
• Finance commitments lacked timelines, and required adaptation resources remained insufficient.
• Developing countries require trillions annually, while actual flows remain far lower. The loss-and-damage mechanism was operationalised but modest in scale, and technology transfer initiatives remained largely conceptual.
• Capacity-building processes expanded without corresponding funding.
• Across policy areas, the pattern persisted: new frameworks and platforms multiplied, but measurable implementation remained limited.
• Meanwhile, global emissions reached record levels, and projected warming is expected to exceed the 1.5°C threshold in the early 2030s.
• The disparity between negotiated ambition and real-world outcomes widened further.

The Paradox of Necessity

• Despite structural weaknesses, the UNFCCC process remains indispensable. No alternative institution possesses comparable legitimacy, inclusivity, or legal framework.
• Smaller coalitions cannot substitute for a universal negotiating platform.
• Abandonment would reduce coordination rather than accelerate progress. The system is flawed yet necessary, slow yet irreplaceable.

Conclusion

• Global climate governance reflects a fundamental contradiction. Nations recognise the need for mitigation, cooperation, and justice, yet resist bearing immediate cost.
• Political systems seek power, markets seek profit, and societies seek livelihood, each operating according to its own logic.
• The result is persistent inadequacy rather than outright failure. Negotiations continue, commitments expand, and promises multiply, yet decisive implementation remains selective.
• Humanity may withdraw from agreements, but it cannot withdraw from planetary consequences.
• The planet imposes outcomes regardless of negotiation, reminding all actors that participation in the climate system is not optional.

About Vayu Shakti 2026:

• It is a major air combat exercise of the Indian Air Force (IAF).
• It will be held Pokaran Field Firing Range in Rajasthan’s Jaisalmer district and is expected to be the IAF’s largest air combat drill of the year.
• Almost all frontline fighter aircraft and air defence systems that were part of Operation Sindoor will be deployed during the exercise.
• These include Rafale, Su-30 MKI, Tejas, MiG-29, Jaguar, Mirage-2000 and Hawk aircraft, which will be seen engaging ground and aerial targets with precision.
• The exercise will be conducted in a simulated wartime scenario and monitored through the IAF’s Integrated Air Command and Control System (IACCS), which enables real-time tracking and coordination of air operations. 

About Jagannath Temple:

• It is located in Puri, Odisha.
• It is dedicated to Lord Jagannath, a form of the Hindu deity Vishnu.
• It is believed to have been built during the reign of King Anantavarman Chodaganga Deva, of the Eastern Ganga dynasty, in the 12th century.
• However, the completion of the temple happened in 1230 AD under Anangbheema Deva III, who also installed the deities in the shrine.
• Ratha Yatra is a Hindu festival associated with Lord Jagannath temple.
• It is also one of the four sacred pilgrimage sites, known as the Chaar Dhaams, that hold great significance for Hindus.
• Architecture:
  • It is a striking example of Kalinga architecture, a distinct style prevalent in the Odisha region.
  • It is constructed in such a way that no shadow of the temple falls on the ground at any time of the day.
  • At the pinnacle of the temple, there is a 20-foot-high chakra (wheel) that is positioned in a way to be visible from any part of the city.
  • Unlike other temples of the region, the carvings on the temples are predominantly of gods and goddesses.

About SPHEREx Mission:

• The Spectro-Photometer for the History of the Universe, Epoch of Reionization and Ices Explorer (SPHEREx) telescope is a megaphone-shaped telescope.
• It is a NASA Astrophysics mission launched in 2025.
• It will survey the sky in optical as well as near-infrared light, which, though not visible to the human eye, serves as a powerful tool for answering cosmic questions.
• Over a two-year planned mission, the SPHEREx Observatory will collect data on the other galaxies along with Milky Way in order to explore the origins of the universe.
• With this capability, SPHEREx will produce a three-dimensional map of the universe.
• Scientists will use this map to answer big questions about the early universe, the history of galaxies, and the prevalence of life-sustaining molecules in planet-forming regions of space.
• It also will identify targets for more detailed study by future missions, such as NASA's James Webb Space Telescope and Wide Field Infrared Survey Telescope.

About Michelangelo:

• Michelangelo (1475 - 1564) was an Italian Renaissance sculptor, painter, architect, and poet.
• He is recognized as one of the most creative and influential artists in the history of Western art.
• His most celebrated creations have become icons of world culture: the monumental marble David in Florence; the Sistine Chapel ceiling; and the soaring dome of Saint Peter’s Basilica, both in Rome.

About Hudson River:

• It is a river in New York State, United States.
• It originates in several small postglacial lakes in the Adirondack Mountains near Mount Marcy, the highest point in New York.
  • Lake Tear of the Clouds is regarded as the source of its main headstream, the Opalescent River.
• At the New York Harbor, the Hudson River drains into the Atlantic Ocean.