4 October 2026
Reserve Bank of India Governor Sanjay Malhotra spoke at the Kautilya Economic Conclave, organised by the Finance Ministry.
He said the AI investment cycle has been a major support for global markets, but any slowdown in investment or earnings could trigger a sharp repricing of financial assets.
He named five major risks: stretched AI valuations, elevated global debt, leverage in non-bank finance, private credit and cyber threats.
A correction in AI-related valuations in advanced economies could have a positive spillover for emerging markets such as India through higher capital inflows, he said.
He also flagged that bond yields are hardening globally, which has implications for real interest rates in India.
Major global risks named:
5
Why it matters for exams: RBI's financial-stability assessments and global risk factors are regular banking and economy topics.
Kerala PSCUPSCBank
In plain words
Repricing Repricing of assets — A sharp change in the market value of assets.
Bond yield Bond yield — The return an investor earns on a bond; it rises as bond prices fall.
Capital inflows Capital inflows — Foreign money entering a country's markets or economy.
4 October 2026
The Ministry of Road Transport and Highways will hold Chintan Shivir 2026 on 5-6 October 2026 at Ekta Nagar, Narmada District, Gujarat.
It brings together senior representatives of the Centre, States and implementing agencies to discuss highway infrastructure delivery.
The inaugural session on 5 October will feature addresses by Union Minister Nitin Gadkari and Ministers of State Ajay Tamta and Harsh Malhotra.
There will be five thematic sessions: PM GatiShakti and integrated infrastructure planning; Land Acquisition and Bhoomi Rashi; Model Concession Agreements and Ratings; Designing Safe Highways; and Quality Assurance and Project Monitoring.
State Road Transport and Public Works Ministers and senior officials of State PWDs have been invited.
Dates:
5-6 October 2026
Venue:
Ekta Nagar, Narmada District, Gujarat
Thematic sessions:
5
Why it matters for exams: PM GatiShakti and Centre-State coordination on highways are regular infrastructure and governance topics.
Kerala PSCUPSCSSC
In plain words
Chintan Shivir Chintan Shivir — A brainstorming conclave where officials and ministers deliberate on a policy area.
PM GatiShakti PM GatiShakti National Master Plan — A platform for coordinated and integrated planning of infrastructure projects.
PWD Public Works Department — The State department that builds and maintains roads and public buildings.
4 October 2026
Principal Secretary to the Prime Minister P. K. Mishra spoke at the 5th Kautilya Economic Conclave, whose theme is 'Resilience in an Age of Flux', on Saturday (October 3, 2026).
In a session titled 'A World Priced for Risk', he said export restrictions, sanctions and tariffs become instruments of economic policy and are sometimes even weaponised.
He called the disruption around the Strait of Hormuz a clear reminder of how geography can translate into economic risk.
He said India has maintained substantial stocks, increased domestic production where possible and diversified procurement.
The number of countries from which India imports crude oil has increased from 27 to 43, he said.
Crude supplier countries (before):
27
Crude supplier countries (now):
43
Conclave edition:
5th
Why it matters for exams: Energy security, supply-chain resilience and trade weaponisation are central economy and international-relations themes.
Kerala PSCUPSCSSC
In plain words
Strait of Hormuz Strait of Hormuz — A narrow sea passage at the mouth of the Persian Gulf through which much of the world's oil moves.
Weaponisation of trade Weaponisation of trade — Using tariffs, sanctions or export curbs as tools of strategic pressure.
4 October 2026
External Affairs Minister S. Jaishankar briefed a parliamentary consultative committee on India-Russia relations on Saturday (October 3, 2026).
He said Russia has agreed to take around 70,000 Indian skilled workers this year, especially in construction and logistics.
He spoke of expanding bilateral trade in a balanced manner, with greater Indian exports to Russia in seven areas: auto, pharma, food, marine products, engineering goods, chemicals and textiles.
On energy, he said India's priority is to safeguard the interests of Indian consumers, and its approach is to maintain multiple sources of supply.
He told the panel that around 140 Indian nationals serving in the Russian military have been discharged so far.
Skilled workers Russia will take this year:
around 70,000
Export areas named:
7
Indians discharged from Russian military:
around 140
Why it matters for exams: Bilateral agreements, labour mobility and energy diversification are standard India-and-another-country topics in current affairs papers.
Kerala PSCUPSCSSC
In plain words
Consultative committee Parliamentary Consultative Committee — A forum of MPs from both Houses attached to a ministry to discuss policy informally with the minister.
Bilateral trade Bilateral trade — Trade between two countries.
Background
The World Bank Group has five organizations: the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID).
IBRD, created in 1944 to help Europe rebuild after World War II, provides loans, guarantees and advisory services to middle-income and creditworthy low-income countries.
IDA offers grants and low-interest loans to low-income countries; IBRD and IDA together form the World Bank.
IFC encourages the growth of the private sector in developing countries.
MIGA provides political risk insurance (guarantees) for projects in developing member countries, while ICSID is, in the World Bank's own description, the world's leading institution devoted to international investment dispute settlement.
Institutions in the Group:
5
Institutions that form the World Bank:
IBRD and IDA
Political risk insurance:
MIGA
Investment dispute settlement:
ICSID
Why it matters for exams: The five World Bank Group institutions and what each does are standard questions in economy and international-organisation papers.
Kerala PSCUPSC
In plain words
IBRD International Bank for Reconstruction and Development — The World Bank Group's lender to middle-income and creditworthy low-income countries.
IDA International Development Association — Gives grants and low-interest loans to low-income countries.
IFC International Finance Corporation — Promotes private-sector growth in developing countries.
MIGA Multilateral Investment Guarantee Agency — Insures projects in developing member countries against political risk.
ICSID International Centre for Settlement of Investment Disputes — The World Bank Group institution devoted to international investment dispute settlement.
Background
The Insolvency and Bankruptcy Code was passed by Parliament and published in the Official Gazette in 2016, consolidating insolvency laws for companies, limited liability entities, partnership firms and individuals into a single law.
When a corporate entity defaults on its debt, control shifts from the shareholders and promoters to a committee of creditors.
The creditors have 180 days, extendable in deserving cases, to evaluate proposals to resolve the default; the outer limit is 330 days in specified circumstances.
Operational creditors such as workmen and suppliers can also start the process on non-payment of dues.
If insolvency cannot be resolved, the assets of the borrower may be sold to repay creditors.
The National Company Law Tribunal adjudicates for companies, and the Insolvency and Bankruptcy Board of India regulates insolvency professionals, their agencies and information utilities.
Resolution time:
180 days, extendable up to 330 days in specified circumstances
Who takes control on default:
Committee of creditors
Adjudicating body for companies:
National Company Law Tribunal
Why it matters for exams: The IBC's time limits, committee of creditors and adjudicating bodies are standard banking and economy questions.
Kerala PSCUPSC
In plain words
NCLT National Company Law Tribunal — The tribunal that adjudicates corporate insolvency resolution under the Code.
Operational creditor Creditor owed for goods or services — A creditor such as a supplier or workman owed dues for operations.
Background
The Fiscal Responsibility and Budget Management (FRBM) Act became law in 2003.
Its objective is inter-generational equity in fiscal management, long-run macroeconomic stability, better coordination between fiscal and monetary policy, and transparency in fiscal operations.
Its original provisions made it mandatory for the Central government to take measures to reduce the fiscal deficit, eliminate the revenue deficit and generate a revenue surplus; amendments in 2012 and 2015 revised the targets and their dates.
It bans the Reserve Bank of India from buying primary issues of Central Government securities after 2006, preventing monetisation of the government's deficit and making monetary policy independent of fiscal policy.
The government must lay three policy statements before Parliament in each financial year: the Medium Term Fiscal Policy Statement, the Fiscal Policy Strategy Statement and the Macroeconomic Framework Policy Statement.
The government can move away from the fiscal consolidation path only in case of natural calamity, national security and other exceptional grounds.
Policy statements each year:
3
Purchase of primary issues of Central Government securities by the RBI:
Banned after 2006
Departure allowed for:
Natural calamity, national security, other exceptional grounds
Why it matters for exams: The FRBM Act's aims, its ban on borrowing from the RBI and its three statements are standard economy questions.
Kerala PSCUPSC
In plain words
Fiscal deficit Gap between total expenditure and total non-debt receipts — The amount the government has to borrow in a year to meet its spending.
Revenue deficit Shortfall of revenue receipts against revenue expenditure — It shows the government is borrowing even to meet day-to-day spending.
Background
Kollam, earlier Quilon, covers 2491 sq. km and is flanked by the Arabian Sea on the west and Tamil Nadu on the east.
Its heartland is veined by the Ashtamudi lake, a massive multi-branched water body dotted with islands, and the Kollam canal cuts through the city.
The district has been the centre of the cashew industry in Kerala since the Portuguese in the 16th century and is still the largest processed cashew exporter in India.
Neendakara and Thangasseri are its two fishing harbours and ports.
The district has 11 constituencies and an annual rainfall of 270 cm.
Area:
2491 sq. km
Constituencies:
11
Annual rainfall:
270 cm
Why it matters for exams: District profiles, lakes and the cashew industry are staple Kerala PSC topics.
Kerala PSCUPSC
Background
The World Trade Organization records Argentina as a WTO member since 1 January 1995.
The same WTO page records Argentina as a member of GATT since 11 October 1967.
GATT, the General Agreement on Tariffs and Trade, was the earlier framework for trade in goods; Argentina therefore belonged to it for decades before the WTO began work.
The WTO member page for Argentina carries trade statistics, tariff data, goods schedules and services schedules.
WTO member since:
1 January 1995
GATT member since:
11 October 1967
Why it matters for exams: Membership of GATT and the WTO and what GATT stands for are standard international-economy questions.
Kerala PSCUPSC
In plain words
GATT General Agreement on Tariffs and Trade — The earlier multilateral framework for trade in goods that preceded the WTO.
Background
The Special Drawing Right, or SDR, is an international reserve asset. The International Monetary Fund created the SDR in 1969, in a monetary system in which the link between currencies and gold set limits on how far the growing demand for reserves could be met; the Fund's founding treaty, the Articles of Agreement, authorises it to allocate special drawing rights to meet the need for a supplement to existing reserve assets. The SDR is neither money nor currency, but an international reserve asset; its value is based on a basket of five currencies, namely the US dollar, the euro, the Chinese renminbi, the Japanese yen and the British pound sterling. The SDR valuation basket is reviewed and adjusted every five years. The SDR has also been adopted as the unit of account by a number of official institutions, including the Bank for International Settlements. The IMF makes a general allocation of SDRs to its members in proportion to their existing quotas in the Fund. Under the Articles of Agreement, special drawing rights are held by members that are participants in the Special Drawing Rights Department and by the Fund itself, and only other official entities may be prescribed as further holders; individuals and private entities cannot hold SDRs, and SDRs cannot be exchanged by private entities. In 2021 the IMF's Board of Governors approved a general allocation of about SDR 456 billion, equivalent to $650 billion, the largest SDR allocation in the history of the IMF.
Year the SDR was created:
1969
Size of the valuation basket:
five currencies
Interval between basket reviews:
every five years
Largest general allocation in IMF history:
SDR 456 billion
Dollar equivalent of that allocation:
$650 billion
Why it matters for exams: The SDR's basket of five currencies, its creation and the quota-based rule for allocations are standard objective questions in economy and banking papers.
Kerala PSCUPSCSSCBank
In plain words
SDR Special Drawing Right — An international reserve asset created by the International Monetary Fund whose value is based on a basket of five currencies.
IMF quota International Monetary Fund quota — A member country's financial share at the Fund, in proportion to which a general allocation of SDRs is distributed.
Reserve asset International reserve asset — An asset a country's monetary authority can hold and use to meet external payment needs.
Background
Colombia's central bank is the Banco de la República, and the statute that governs it is Ley 31 de 1992.
Article 7 of that law gives the Bank the state attribute of issuing legal tender — emitir la moneda legal, made up of banknotes and metal coin — en forma exclusiva e indelegable: the power is the Bank's alone, and it cannot be delegated to anyone else.
Article 6 of the same law names the peso as the country's unidad monetaria, its monetary unit and unit of account.
Article 1 places the Bank's central-banking functions under the Constitution together with that law, and article 373 of the Constitution, promulgated in 1991, charges the State, acting through the Bank, with maintaining the purchasing power of the currency.
The Bank pursues that mandate through an inflation-targeting framework, and its policy target is recorded as an inflation target of 3%.
It keeps a range between 2% and 4% around that target; the range is a band around the target and not a target in itself, and the target is measured as the year-over-year change in total CPI.
Law on the issue of currency:
Ley 31 de 1992
Nature of the issuing power:
exclusiva e indelegable
Monetary unit and unit of account:
peso
Year of the Constitution that set the Bank's mandate:
1991
Constitutional article on that mandate:
373
Inflation target:
3%
Range around the target, not a target in itself:
between 2% and 4%
Index the target is measured on:
total CPI
Why it matters for exams: A central bank's issuing monopoly and its numerical inflation target are the two facts most often asked about any country's monetary framework.
Kerala PSCUPSC
In plain words
moneda legal legal tender — The money a state recognises for the settlement of debts, which in Colombia only the Banco de la República may issue.
exclusiva e indelegable exclusive and not capable of being delegated — The form in which Ley 31 de 1992 vests the issue of legal tender in the Banco de la República: the power belongs to the Bank alone and it cannot hand that power to anyone else.
Background
India's Embassy in Santiago records Chile as the 5th largest trading partner of India in the LAC region. An Agreement on the expansion of the India-Chile Preferential Trade Agreement was signed in New Delhi on 6 September 2016, increasing the scope of the agreement from about 474 tariff lines to 2829 tariff lines, and the expanded preferential trade agreement came into force in May 2017. The Double Taxation Avoidance Agreement between India and Chile was signed on 9 March 2020 and came into effect from 19 October 2022 after ratification by both countries. India's exports to Chile include motor vehicles and cars, drug formulations, chemicals, products of iron and steel, auto components, leather goods and footwear of leather. Indian investment in Chile is estimated at about US$620 million, and Chilean investment in India at US$ 118 million. The two countries have signed agreements and memoranda covering Science and Technology, Antarctica, Defence, Air Services, Agriculture, New and Renewable Energy, Education, and Geology and Mineral Resources. Chile has articulated its support for India's claim to a permanent seat in the UNSC, 25 slots are offered to Chilean civilian candidates every year under ITEC, and Chile has declared November 4 as National Yoga Day.
Scope of the expanded Preferential Trade Agreement:
2829
Chile's rank among India's partners in the region:
5th largest trading partner of India in the LAC region
Double Taxation Avoidance Agreement in effect from:
19 October 2022
Indian investment in Chile:
US$620 million
ITEC slots for Chilean civilian candidates each year:
25 slots
National Yoga Day in Chile:
November 4
Why it matters for exams: The India relationship is the part of a country-focus paper that an Indian examiner is most likely to set, and the tariff-line figure and the trade agreement's name are the specifics that get asked.
Kerala PSCUPSC
In plain words
PTA Preferential Trade Agreement — A trade agreement that cuts duties on an agreed list of tariff lines rather than on all trade between the parties.
ITEC Indian Technical and Economic Cooperation — India's training programme that offers funded course slots to candidates from partner countries.
LAC region Latin America and the Caribbean region — The grouping of Latin American and Caribbean countries used by India's Ministry of External Affairs in its trade rankings.
Background
The United States Department of Commerce's country commercial guide for Chile records Chile as the top copper producer in the world with 24 percent of global copper production and, citing the United States Geological Survey, as the world's second largest producer of lithium with 27 percent of global lithium production. In 2024 the Chilean mining sector produced 5.5 million tons of copper, a five percent increase on the year before. On the same authority, 36 percent of the world's lithium reserves are located in Chile, and Chilean lithium output rose from 44,300 MT of lithium content in 2023 to 49,000 MT in 2024. Chile's Ministry of Economy records that the Salar de Atacama holds the highest level of lithium reserves in the world [mayor nivel de reservas de litio en el mundo] and is the only salt flat in the country with productive operations at present, run by Albemarle and by SQM Salar SpA under the contracts they hold with Corfo, the state production development agency that owns the mining property there. Chile therefore stands first on lithium reserves but second on lithium output, because its lithium sits for the most part in brine deposits, lakes of saline groundwater beneath salt flats, which take years to bring into production. The Comptroller General cleared [tomó razón] the Corfo resolution approving the amendments to the SQM Salar SpA lease and project contracts, whose validity runs to 2030, and the new lease and project contracts with the state mining company Codelco and its subsidiary Minera Tarar SpA, which take effect from 2031 to 2060.
Chile's share of global copper production:
24 percent
Copper produced by the Chilean mining sector in 2024:
5.5 million tons
Share of the world's lithium reserves located in Chile:
36 percent
Chile's rank among lithium producers:
second largest producer of lithium
Chilean lithium output in 2024:
49,000 MT
What the Ministry of Economy says of the Salar de Atacama:
mayor nivel de reservas de litio en el mundo
Why it matters for exams: Copper and lithium are the two commodities by which Chile enters an economy or geography paper, and the distinction between leading on reserves and leading on output is exactly where candidates lose the mark.
Kerala PSCUPSC
In plain words
Codelco Corporación Nacional del Cobre de Chile — Chile's state mining company, which is taking on lithium contracts in the Salar de Atacama alongside its copper business.
Corfo Corporación de Fomento de la Producción — The Chilean state agency that holds the mining property in the Salar de Atacama and leases it to lithium producers.
Background
The Embassy of India in Buenos Aires records in its bilateral relations brief that India opened a Trade Commission in Buenos Aires in 1943, which was later converted into one of the first embassies of India in South America, in 1949.
Argentina had established a Consulate in Kolkata in the 1920s, which was shifted to Delhi as an embassy in 1950, and it has had a Consulate General in Mumbai since April 2009.
India-Argentina diplomatic relations were elevated to the level of Strategic Partnership during the State Visit to India of the then President of Argentina, in February 2019.
Both countries completed 75 years of their diplomatic relationship on 3 February 2024, marked by a commemorative book titled 'India-Argentina: 75 Años de Relaciones Diplomáticas'.
Indo-Argentine trade saw a further resurgence in 2025: from January to November it registered a growth of 36.77%, with total trade valued at USD 6.34 billion, and India is ranked as Argentina's fifth-largest trading partner and export destination.
India's main exports to Argentina are petroleum oils, agro chemicals, yarn-fabric-madeups, organic chemicals, bulk drugs and two-wheelers; its main imports from Argentina are vegetable oils, led by soybean and sunflower oil, with finished leather, cereals and pulses.
Space cooperation runs under the Agreement on Cooperation on Peaceful Uses of Outer Space signed in 2009, whose ISRO-CONAE Joint Committee held its third meeting in October 2024; nuclear cooperation runs under the bilateral Agreement for Cooperation in Peaceful Uses of Nuclear Energy.
In the first ever acquisition of lithium resources abroad, the state-owned KABIL signed an agreement with CAMYEN, a public sector undertaking of the Province of Catamarca, to lease five lithium blocks for exploration and eventual exploitation.
Level of relations:
Strategic Partnership
Indian embassy opened:
1949
Bilateral trade:
USD 6.34 billion
Growth in trade:
36.77%
India's rank for Argentina:
fifth-largest trading partner
Lithium blocks leased:
five lithium blocks
Why it matters for exams: The name of a bilateral partnership, the year relations began and the shape of the trade are the three things asked about any India-country pair, and Argentina adds the lithium and space tracks.
Kerala PSCUPSCSSCBank
In plain words
CONAE Argentine Space Agency — Argentina's national space agency, the counterpart to ISRO in the two countries' joint space committee.
Strategic Partnership Asociación Estratégica — The level to which the two governments raised their relations, bringing political, economic, defence and scientific cooperation under one framework.
Background
The World Bank's country overview for Peru records a central bank inflation target range of 1 to 3 percent. Peru's growth slowed from an average of 6.2 percent between 2005 and 2014 to 2.4 percent between 2015 and 2024. Poverty fell from 60 percent in 2002 to 24 percent in 2013. GDP per capita increased from approximately US$2,100 in 2003 to more than US$8,400 in 2024. The World Bank measures poverty in Peru against a line of US$8.30 a day in 2021 purchasing power parity terms. It attributes the earlier performance to prudent macroeconomic policies, low inflation, manageable public debt and a sound financial system. It names low productivity, informality, regional disparities, institutional weakening and citizen insecurity among the constraints on the country's potential. Peru's landscapes are described as ranging from the Andes to the Amazon.
Central bank inflation target range:
1 to 3 percent
Average growth, 2005 to 2014:
6.2 percent
Average growth, 2015 to 2024:
2.4 percent
GDP per capita in 2003:
US$2,100
GDP per capita in 2024:
US$8,400
World Bank poverty line used for Peru:
US$8.30
Why it matters for exams: A central bank's inflation target range is the standing fact asked about any economy, and the World Bank's overview records Peru's as a band of 1 to 3 percent.
Kerala PSCUPSC
In plain words
Inflation target range Inflation target range — The band of price rise a central bank commits to keep inflation within when it sets its policy rate.
PPP Purchasing power parity — A way of converting currencies so that the same sum buys the same basket of goods in every country.
Background
India established diplomatic relations with Peru in March 1963. Until 1969 the Indian Ambassador in Chile was concurrently accredited to Peru, and India opened its resident Mission in Lima in September 1969. Free Trade Agreement negotiations are ongoing with nine rounds and an online inter-sessional meeting held so far. The trade between India and Peru during the Financial Year 2025-26 was US$ 10.02bn, of which India's exports were worth US$ 1.15bn and imports from Peru were US$ 8.87bn. Peru is among the top five trading partners of India in Latin America, and India is the third largest trading partner for Peru. Main imports from Peru are gold, copper, synthetic filaments, phosphates of calcium, fresh grapes and fish flour. Indian investment in Peru is estimated at US $65 million. The size of the Indian community in Peru is small, numbering around 500, including PIOs.
Diplomatic relations established:
March 1963
Bilateral trade, Financial Year 2025-26:
US$ 10.02bn
India's exports to Peru:
US$ 1.15bn
India's imports from Peru:
US$ 8.87bn
Free Trade Agreement rounds held:
nine rounds
Indian investment in Peru:
US $65 million
Indian community in Peru:
around 500
Why it matters for exams: India's bilateral relationships in Latin America are standard ground, and the lopsided India-Peru trade balance is the detail that makes this one askable.
Kerala PSCUPSC
In plain words
PIO Person of Indian Origin — A foreign national of Indian ancestry, counted alongside Indian citizens when a mission reports the size of the Indian community.
Background
Colombia and India established diplomatic relations on 19 January 1959 and celebrated 65 years of those ties in 2024.
Colombia opened its Embassy in New Delhi in March 1972, and India opened its Embassy in Colombia in 1973.
The Foreign Office Consultations mechanism was established in 1995, and the tenth round took place on 15 October 2024 in New Delhi.
In 2024-25 bilateral trade stood at USD 4.72 billion, with exports from India to Colombia at USD 1.47 billion and imports from Colombia to India at USD 3.25 billion.
India's imports from Colombia mainly comprise mineral fuels such as oil and coal, gold, precious stones led by emeralds, aluminum, zinc, wood and plastic.
India's main items of exports to Colombia include vehicles such as motorcycles, engineering goods, chemicals, cotton, pharmaceuticals and iron and steel products.
Indian investment in Colombia is estimated at USD 500 million, excluding the investment of ONGC Videsh Ltd, and the Indian Community comprises approximately 1200 members, a majority of them professionals employed with Indian companies based in Colombia.
Diplomatic relations established:
19 January 1959
Colombia's Embassy in New Delhi opened:
March 1972
Bilateral trade, 2024-25:
USD 4.72 billion
India's exports to Colombia, 2024-25:
USD 1.47 billion
Imports from Colombia to India, 2024-25:
USD 3.25 billion
Indian investment in Colombia:
USD 500 million
Size of the Indian Community:
approximately 1200 members
Why it matters for exams: The year relations were established, the direction of the trade balance and the size of the Indian community are the three India-relationship facts asked about every country.
Kerala PSCUPSC
In plain words
Foreign Office Consultations Foreign Office Consultations — A standing bilateral mechanism in which the foreign ministries of two countries meet in rounds to review their relations.
Background
The Reserve Bank of India, Act,1934 was amended in 2016 to provide a statutory basis for the implementation of the flexible inflation targeting framework.
Section 45ZB of the amended Act provides for an empowered six-member Monetary Policy Committee to be constituted by the Central Government by notification in the Official Gazette.
Three of the six come from the Reserve Bank: the Governor as ex officio Chairperson, the Deputy Governor in charge of monetary policy, and one officer of the Reserve Bank nominated by the Central Board.
The remaining three are appointed members, who hold office for a period of four years or until further orders, whichever is earlier.
The Committee determines the policy repo rate required to achieve the inflation target.
It is required to meet at least four times in a year, and the quorum for a meeting is four members.
Each member has one vote, and in the event of an equality of votes the Governor has a second or casting vote.
Each member writes a statement specifying the reasons for voting in favour of, or against, the proposed resolution.
Enabling provision:
Section 45ZB
Composition:
six-member Monetary Policy Committee
Quorum for a meeting:
four members
Minimum meetings:
at least four times in a year
Term of appointed members:
four years
Tie-breaker:
casting vote
Why it matters for exams: The size, quorum, term and casting vote of the Monetary Policy Committee are fixed statutory facts that banking and economy papers ask repeatedly.
Kerala PSCUPSC
In plain words
MPC Monetary Policy Committee — The statutory committee that fixes the policy repo rate to meet India's inflation target.
Quorum Quorum — The minimum number of members who must be present for a meeting to transact business.
Background
Velloor in Kottayam has been put forward as the site for Kerala's proposed All India Institute of Medical Sciences, on land held by Kerala Paper Products Limited, which is why the company is in the news.
The plant began as a newsprint factory of the Hindustan Paper Corporation and ran as Hindustan Newsprint Limited, a central public sector undertaking, until it stopped functioning in 2019.
It was started in 1982 on 700 acres leased by the State government, and it used to produce 300 tonnes of pulp daily from bamboo reed and eucalyptus.
The Kerala Industrial Infrastructure Development Corporation, KINFRA, quoted Rs 146 crore for the company in the sale that followed proceedings before the National Company Law Tribunal, and acquired it on behalf of the State government.
The mill reopened as Kerala Paper Products Limited and can turn out 42 GSM and 45 GSM newsprints, notebooks and writing and printing paper.
Of the 692 acres the company holds at Velloor, 164.82 acres have been handed over to Kerala Rubber Limited and 227.18 acres are the land being considered for the AIIMS.
The township stands on the bank of the Muvattupuzha river, 56 km from Cochin airport and close to Piravom Road railway station.
Location:
Velloor
Land held at Velloor:
692 acres
Land handed to Kerala Rubber Limited:
164.82 acres
Earlier name:
Hindustan Newsprint Limited
Land leased for the mill:
700 acres
Newsprint grades:
42 GSM and 45 GSM
KINFRA's bid for the company:
Rs 146 crore
Area considered for the AIIMS:
227.18 acres
Why it matters for exams: A central public sector undertaking that became a State company, and whose land is now offered for an AIIMS, is standard Kerala PSC ground on industry and public undertakings.
Kerala PSCUPSC
In plain words
KINFRA Kerala Industrial Infrastructure Development Corporation — The State agency that builds and runs industrial parks and estates in Kerala.
NCLT National Company Law Tribunal — The tribunal that decides company law matters, including the insolvency proceedings in which a company can be put up for sale.
GSM grams per square metre — The measure of a paper's weight, by which newsprint and writing paper grades are named.
AIIMS All India Institute of Medical Sciences — A central medical institute set up by the Union government, of which Kerala has none yet.
3 October 2026
The Himachal Pradesh State Electricity Board (HPSEB) agreed to supply 600 MW to the Kerala State Electricity Board (KSEB) during peak hours from 1 October 2026 to 31 May 2027.
KSEB began receiving the additional power on Thursday, helping the State avoid power cuts for two days.
KSEB chairman M G Rajamanickam said six teams of senior officials had travelled to several North Indian states over two weeks to find surplus power.
Kerala had secured short-term supplies from Bihar and Andhra Pradesh, but both states could not continue the arrangements.
KSEB turned down an earlier Himachal offer of 210 MW round-the-clock power at Rs 10 per unit, as surplus power was available in the daytime and could be bought from the exchange at around Rs 2 per unit.
Power from Himachal Pradesh:
600 MW in peak hours
Agreement period:
1 October 2026 to 31 May 2027
Declined offer:
210 MW at Rs 10 per unit
Why it matters for exams: Power procurement by the State electricity board and the Himachal Pradesh agreement show how Kerala manages peak demand; KSEB is a standard Kerala PSC topic.
Kerala PSCUPSC
In plain words
KSEB Kerala State Electricity Board — The public utility that generates, buys and distributes electricity in Kerala.
Peak hours Peak demand period — The hours of the day when electricity demand is highest.