29 June 2026

UPSC GS 2

Financial Action Task Force (FATF)

1. News:  India has been elected to the Vice-Presidency of the Financial Action Task Force (FATF) for the first time.

2.  About Financial Action Task Force (FATF):

a. The Financial Action Task Force (FATF) is an independent intergovernmental body that develops and promotes global policies to protect the international financial system against money laundering (ML), terrorist financing (TF), and proliferation financing (PF).

b. Its recommendations are recognized as the global standards for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT).

3. Origin:

a. The FATF was established in 1989 during the G7 Summit held in Paris, France, in response to growing concerns over money laundering.

b. Following the September 11, 2001 terrorist attacks, its mandate was expanded to include combating terrorist financing.

4. Headquarters: Paris.

5. Membership: The FATF comprises 40 members, including major economies such as:

a. United States

b. India

c. China

d. Saudi Arabia

e. United Kingdom

f. Germany

g. France

h. European Union

i. India became a member of the FATF in 2010.

6. In addition, more than 200 jurisdictions have committed to implementing the FATF Recommendations through the FATF Global Network and FATF-Style Regional Bodies (FSRBs).

7. Functions: The FATF:

a. Develops global standards to combat money laundering, terrorist financing, and proliferation financing.

b. Monitors members' implementation of FATF Recommendations.

c. Conducts Mutual Evaluations of member countries.

d. Publishes reports highlighting emerging money laundering and terrorist financing risks and techniques.

e. Promotes effective implementation of international financial integrity standards.

8. FATF Recommendations: The FATF Recommendations serve as the internationally accepted framework for:

a. Anti-Money Laundering (AML).

b. Countering the Financing of Terrorism (CFT).

c. Countering Proliferation Financing (CPF).

d. Every member is required to:

e. Adopt and implement the latest FATF Recommendations.

f. Participate in mutual evaluations of other members.

g. Undergo periodic assessment of its own compliance.

9. Grey List and Black List: The FATF monitors countries' compliance with its standards.

10. Grey List (Jurisdictions under Increased Monitoring):

a. Countries with strategic deficiencies in their AML/CFT regimes.

b. They are working with FATF to address these deficiencies within agreed timelines.

11. Black List (High-Risk Jurisdictions Subject to a Call for Action):

a. Countries with serious strategic deficiencies that pose significant risks to the international financial system.

b. FATF calls on members to apply enhanced due diligence and, where necessary, countermeasures. 

UPSC GS 3

Drunix

1. News: The National Payments Corporation of India (NPCI) has recently launched Drunix, an enterprise-grade distributed ledger platform for large-scale blockchain applications.

2.  About Drunix:

a. Drunix is an enterprise-grade Distributed Ledger Technology (DLT) platform designed to help organizations develop and scale tokenization platforms, digital asset ecosystems, and multi-organization blockchain networks.

b. It is a custom-built private blockchain framework developed to provide high scalability, optimized performance, and enterprise-level reliability.

3. Objective: The platform aims to enable large-scale deployment of blockchain technology for enterprises and public infrastructure by providing a secure, scalable, and high-performance distributed ledger.

4. Key Features:

a. Enterprise-grade private blockchain framework.

b. Designed for high scalability and optimized transaction processing.

c. Supports tokenization platforms and digital asset ecosystems.

d. Enables deployment of multi-organization blockchain networks.

e. Engineered for adoption by enterprises and public infrastructure projects.

5. Technology Used:

a. Drunix is built as an enhanced fork of Hyperledger Fabric.

b. Hyperledger Fabric is an open-source enterprise blockchain framework developed under the umbrella of the Linux Foundation.

RBI's New Fraud Compensation Mechanism

1. News: The Reserve Bank of India has introduced a revised Fraud Compensation Mechanism for small-value digital payment frauds, which will come into effect from 1 January 2027.

2. About RBI's New Fraud Compensation Mechanism:

a. The RBI's New Fraud Compensation Mechanism is a revised framework that provides compensation to eligible victims of fraudulent electronic banking transactions involving losses of up to ₹50,000.

b. The framework builds upon the RBI's Limited Liability Framework (2017, as updated), which provides customers with zero or limited liability for unauthorized electronic banking transactions reported within the prescribed timelines.

3. Objective: The framework aims to:

a. Strengthen customer protection in digital payments.

b. Limit customer liability for unauthorized transactions.

c. Enhance banks' responsibility for fraud prevention.

d. Improve grievance redressal mechanisms.

4. Common Types of Digital Payment Fraud: The framework covers frauds such as:

a. SIM swapping.

b. Phishing.

c. Vishing (voice call fraud).

d. OTP theft.

e. Fake UPI handles.

f. QR code scams.

g. AI-driven deepfake frauds.

5. Key Features:

a. Effective Date: The revised framework applies to electronic banking transactions undertaken on or after 1 January 2027.

b. Compensation: Eligible bona fide victims can receive 85% of the net loss or ₹25,000, whichever is lower, once during their lifetime for eligible fraud cases.

6. Eligibility Conditions: To claim compensation, the customer must report the fraud:

a. To the concerned bank, and

b. Through the National Cyber Crime Reporting Portal or Helpline 1930,

c. within five calendar days of the fraudulent transaction.

7. Zero Liability: Customers will have zero liability if:

a. The fraud occurred due to negligence on the part of the bank, or

b. It resulted from a third-party breach and was reported within five days.

8. Burden of Proof: The responsibility lies with the bank to prove customer negligence before rejecting any compensation claim.

9. Obligations of Banks: Banks are required to provide:

a. 24×7 complaint registration channels.

b. Instant SMS alerts for transactions above ₹500.

c. Email alerts, wherever available.

d. Direct complaint links on their websites and mobile applications.

10. Complaint Resolution Timeline:

a. Domestic fraud cases: Within 45 days.

b. Cross-border fraud cases: Within 60 days.

Apristurus drona (Arabian Slender Catshark)

1. News:   Scientists have recently identified a new species of deep-sea catshark named Apristurus drona, also known as the Arabian slender catshark, from the Arabian Sea off the Kerala coast.

2.  About Apristurus drona:

a. Apristurus drona is a newly discovered species of deep-sea catshark.

b. It was discovered in the Arabian Sea off Sakthikulangara Harbour on the Kollam coast of Kerala.

c. The species represents a distinct evolutionary lineage and is closely related to catshark species found in the Pacific Ocean and New Zealand.

3. Key Features:

a. It is a deep-sea catshark belonging to the genus Apristurus.

b. Genetic studies revealed a 5.5–5.7% divergence from its nearest known relative, confirming it as a distinct species.

c. It appears to be extremely rare.

d. Its known distribution is restricted to the continental slope off Kollam and the Wadge Bank.

e. It has no commercial value and is only occasionally caught as fishery bycatch.

Sistan Sand Boa

1. News:   A recent study has reported the first confirmed record in India of the Sistan sand boa (Eryx sistanensis), a species formally described only in 2020.

2. More on News:

a. Previously, the species was known only from Iran and Pakistan.

b. With this discovery, India now has four recorded species of sand boas:

c. Red sand boa (Eryx johnii)

d. Rough-scaled sand boa (Eryx conicus)

e. Whitaker's sand boa (Eryx whitakeri)

f. Sistan sand boa (Eryx sistanensis)

3. About Sistan Sand Boa:

a. The Sistan sand boa (Eryx sistanensis) is a non-venomous species of sand boa belonging to the genus Eryx.

b. It was formally described as a distinct species in 2020.

4. Features:

a. Scientific Name: Eryx sistanensis 

b. It can be distinguished from the red sand boa by its persistent dark body bands and a tail that gradually tapers towards the tip.

c. Unlike the red sand boa, which loses its body bands as it matures, the Sistan sand boa retains its dark sooty bands throughout its life.

d. Juveniles are buff-coloured, while subadults and adults are tan to tan-brown.

e. The species has not yet been evaluated by the International Union for Conservation of Nature.