Daily Current Affairs 12 September 2026 – IAS Current Affairs

Current Affairs 12 September 2026 focuses on the Prelims-Mains perspective. Major events are :

What India-China Relations Mean For BRICS And India

Source: Indian Express
GS II: India and its neighborhood, Effects of politics and politics of developed and developing countries on India’s interests

Why in the News?

Chinese President Xi Jinping’s visit to India for the BRICS Leaders’ Summit, his first visit to the country after a gap of seven years, has brought renewed attention to the changing trajectory of India–China relations.

News in Brief

• While the visit is linked to the BRICS Summit, it is also significant because bilateral relations continue to be shaped by the 2020 eastern Ladakh border standoff, strategic distrust, economic differences and a rapidly changing geopolitical environment.
• These developments will influence the BRICS Summit and raise questions about whether the grouping can become a platform for cooperation despite major differences among its members.
• India and China also differ in their broader understanding of BRICS: while China and Russia have often projected it as an “anti-West” grouping, India sees BRICS as a “non-Western” platform rather than one directed against the West.

The Evolving Position of BRICS Countries

• The idea of BRIC emerged in 2001 to describe Brazil, Russia, India and China as major emerging economies expected to play a greater role in the global order.
• However, over the past 25 years, these countries have followed very different paths.
• China has emerged as the world’s second-largest economy and significantly expanded its military and geopolitical influence.
• India has maintained strong economic growth and increased its global profile, while Russia, Brazil, and South Africa have faced different economic, political and geopolitical challenges.
• Since the first BRICS Summit in 2009, China has emerged as the strongest member of the grouping in terms of overall economic and strategic.

China’s Growing Economic and Strategic Power

• China’s rise has gone far beyond economic growth.
• It has strengthened its military capabilities, expanded its presence in the Indo-Pacific and adopted a more assertive approach in the South China Sea and its neighbourhood.
• China’s ambition to play a larger role in shaping the international order has also increased its strategic competition with the United States.
• For India, China’s growing power has a direct impact on national security, particularly along the disputed border.

India-China Border Tensions and the Trust Deficit

• India and China have experienced several military conflicts and border standoffs, including the 1962 war, the 1967 clashes in Sikkim, the Depsang and Chumar standoffs, the Doklam crisis in 2017 and the eastern Ladakh crisis since 2020.
• The Galwan Valley clash in June 2020 marked a particularly serious deterioration in bilateral relations.
• Twenty Indian soldiers and at least four Chinese personnel were killed.
• The incident was followed by a large-scale military deployment along the Line of Actual Control (LAC) and created a deep political and strategic trust deficit.

Recent Attempts to Stabilize Relations

• Despite the prolonged tensions, both countries have taken gradual steps to stabilise relations.
• Diplomatic and military negotiations have resulted in disengagement from some friction points.
• Other developments, including the resumption of direct flights, easing of visa restrictions, restarting of the Kailash Mansarovar Yatra and relaxation of some restrictions affecting Chinese investments, indicate an attempt to restore limited normalcy.
• However, these developments do not mean that the deeper strategic differences between India and China have disappeared.

Major Unresolved Differences

• India remains concerned about its large trade deficit with China, limited market access for Indian businesses and dependence on Chinese imports in several sectors.
• The continued militarization of the border also makes bilateral relations vulnerable to renewed tensions.
• China’s close strategic relationship with Pakistan, including concerns over coordination during Operation Sindoor, has further complicated India’s security calcualtions.
• Thus, while economic and diplomatic engagement may be improving, the strategic trust deficit remains significant.

Changing Global Environment and Areas of Convergence

• The changing global environment has created some areas where India and China may find common ground.
• US Tariff policies, global trade disruptions, inflation, energy insecurity and supply-chains.
• These developments have created common concerns for BRICS members and the wider Global South.
• Potential areas of cooperation include energy security, supply-chain resilience, trade stability, development concerns and reform of global governance institutions.

What does this means for BRICS?

• India and China continue to cooperate within BRICS despite their bilateral differences.
• However, their relationship also reflects a larger challenge within the grouping: BRICS members have different geopolitical interests and strategic priorities.
• China and Russia have often projected BRICS as a counterweight to the Western-led international order, leading to the perception of the grouping as an “anti-West” platform.
• India, however, views BRICS differently.

“Anti-West” versus “Non-Western”

• India sees BRICS as a “non-western” platform, rather than an anti-western alliance.
• India supports multipolarity, reform of global institutions and greater representation for developing countries, but does not seek to define its foreign policy in opposition to Western countries.
• India’s strong partnerships with the United States, Europe, Australia and other Western countries remain important for technology, investment, markets and defence cooperation.
• Therefore, India’s participation in BRICS complements rather than replaces its wider international partnerships.
• This reflects India’s policy of multi-alignment and strategic autonomy.

BRICS and India’s Multi-Alignment Strategy

• India simultaneously engages with different platforms and countries according to its national interests.
• Its participation in BRICS, Quad, G20 and SCO, along with partnerships with the United States, Europe, Russia and countries in West Asia, reflects this approach.

Opportunities

• BRICS also provides India with opportunities to cooperate with emerging economies on development finance, energy security, technology, critical minerals, climate action, sustainable development, supply-chain resilience, reform of global governance institutions and giving greater representation to the Global South.
• For India, the key test will be whether BRICS can remain focused on such practical areas of cooperation without turning into a rigid geopolitical bloc.

Challenges before BRICS

Despite its potential, BRICS faces several challenges,

• Divergent national and strategic interests among members.
• India-China border tensions
• China’s dominant economic position
• Different approaches  towards the West
• Difficulties in achieving consensus after expansion
• Geopolitical conflicts in Europe and West Asia.

These differences make economic cooperation easier than developing a common geopolitical position.

Way Forward and Conclusion

BRICS must focus on practical cooperation, development and Global South interests despite differences among its members. For India, the challenge is to engage China while protecting its security interests and strategic autonomy.

Ultimately, the future of BRICS will depend on whether India and China can manage their bilateral differences without allowing them to disrupt wider multilateral cooperation.

UPSC Prelims and Mains Practice Question

With reference to BRICS and India’s approach towards the grouping, consider the following statements:

1. India views BRICS as a platform for strategic cooperation and multipolarity rather than an alliance directed against the West.
2. The unresolved India–China border dispute has no impact on cooperation between the two countries in multilateral forums.
3. India’s participation in BRICS is consistent with its broader policy of strategic autonomy and multi-alignment.

Which of the statements given above are correct?

(a) 1 and 3 only
(b) 2 and 3 only
(c) 1 and 2 only
(d) 1, 2 and 3

Answer: (a)

Mains Practice Question

Q) The future effectiveness of BRICS will depend on its ability to accommodate divergent geopolitical interests while promoting cooperation among emerging economies. Discuss in the context of recent developments in India-China relations. (250 words)

7th Global Fintech Fest 2026

Source: PIB
GS III: Science and Technology

Why in the News?

India’s growing role in the global financial technology ecosystem is in focus with the 7th Global Fintech Fest (GFF) 2026, being held in Mumbai from 8–11 September 2026.

News in Brief

• GFF 2026 brings together policymakers, regulators, financial institutions, technology companies and innovators to discuss the future of digital finance.
• The theme is “Potential to Impact: Agentic AI | Tokenisation | Quantum: Trusted, Connected, Global Systems for Inclusive Finance.”
• India’s fintech growth has been driven by interoperable Digital Public Infrastructure, including Aadhaar, Jan Dhan accounts, mobile connectivity, UPI, DigiLocker and DBT.
• The next phase of fintech development will depend on responsible use of emerging technologies, cybersecurity, data protection and consumer safeguards.

India and the FinTech Revolution

• FinTech (Financial Technology) refers to the use of technology to improve the delivery, efficiency and accessibility of financial services.
• It includes innovations in:
  • Digital payments
  • Digital lending
  • Insurance technology (InsurTech)
  • Wealth management
  • Digital banking
  • Regulatory technology (RegTech)
  • Blockchain-based financial services
• India has emerged as a major fintech ecosystem because technology has enabled financial services to operate at population scale.

Global FinTech Fest 2026

• GFF has grown into a major global platform for discussions on financial technology, innovation and digital finance.
• It is the world’s largest fintech festival, uniting the brightest minds to shape an AI-powered future.
• Every edition of the GFF journey has been driven by innovation and a shared vision of inclusive growth and prosperity.
• The principal organizers are,
  • Payments Council of India (PCI)
  • National Payments Corporation of India (NPCI)
  • Fintech Convergence Council (FCC)
• The event is supported by institutions such as MeitY, Department of Financial Services, NITI Aayog, RBI, SEBI, IFSCA, PFRDA, Ministry of External Affairs.
• The festival reflects India’s attempt to position itself as not merely a consumer of financial technology but also as a contributor to the future architecture of global digital finance.

Theme of GFF 2026

• Agentic AI
  • It enables financial systems to sense, decide, and act in real time within strong governance frameworks.
  • It orchestrates end-to-end workflows, strengthens regulatory oversight, enhances fraud prevention, and responsibly personalizes financial services at scale while empowering human decision-making through explainable intelligence.
  • However, greater autonomy also raises concerns regarding accountability, algorithmic bias and explainability.
• Tokenisation
  • It transforms assets into programmable digital units, enabling fractional ownership, instant settlement, and interoperable money.
  • By unlocking liquidity and democratising access, it reshapes capital markets, payments, and participation across global financial systems.
  • Its expansion will require clear legal, regulatory and cybersecurity frameworks.
• Quantum
  • Quantum technologies introduce a foundational shift in computation and security.
  • It could transform financial modelling, optimization and cryptography.
  • However, future quantum computers could also threaten existing encryption systems.
  • Therefore, financial infrastructure will increasingly need quantum-safe cryptography.
  • From quantum-safe cryptography to advanced risk optimization, they strengthen systemic resilience and ensure long-term trust in the financial infrastructure of tomorrow.

India’s Digital Public Infrastructure Advantage

India’s fintech transformation is closely linked to the development of Digital Public Infrastructure (DPI).

JAM Trinity

• The Jan Dhan–Aadhaar–Mobile (JAM) Trinity provides the basic infrastructure for digital financial inclusion:
  • Jan Dhan: Access to formal banking.
  • Aadhaar: Digital identity and authentication.
  • Mobile connectivity: Access to digital services.
• Together, these systems reduce the barriers associated with distance, documentation and transaction costs.

Unified Payments Interface (UPI)

• UPI is one of India’s most important fintech innovations.
• Its major strengths include:
  • Instant fund transfers
  • Interoperability
  • Low transaction costs
  • Easy integration for banks and fintech firms
• Availability across multiple payment applications
• By creating a common payment infrastructure, UPI has enabled private innovation without requiring every company to build its own closed payment network.

Aadhaar e-KYC and DigiLocker

• Digital identity and document systems have simplified:
  • Customer verification
  • Account opening
  • Know Your Customer (KYC) procedures
  • Access to financial products
• This reduces paperwork and transaction costs while improving service delivery.

Direct Benefit Transfer (DBT)

• DBT demonstrates how digital financial infrastructure can improve welfare delivery by:
  • Reducing intermediaries
  • Increasing transparency
  • Improving targeting
  • Enabling faster transfers
• It also strengthens the use of formal banking infrastructure among previously excluded sections.

ONDC

• The Open Network for Digital Commerce (ONDC) extends India’s open and interoperable approach beyond payments.
• Its financial services ecosystem could enable fintech providers to reach consumers and businesses more easily, particularly smaller enterprises.

Key Enabling Technologies used by FinTech

• API (Application Programming Interface): APIs comprise a set of rules and specifications that software programmes use to communicate with each other. They allow new applications to be built on top of others.
• Cloud Computing: The use of an online network (‘cloud’) of hosting processors to increase the scale and flexibility of computing capacity, generating cost savings.
• Biometrics: The study of distinctive and measurable human characteristics that can be used to categorize and identify individuals.
• DLT (Distributed Ledger Technology): A digital system for recording the transaction of assets in which details are recorded in multiple places at the same time.
• Big Data: Voluminous amounts of structured or unstructured data that can be generated, analyzed and utilized by digital tools and information systems.
• AI (Artificial Intelligence) & ML (Machine Learning): IT systems that can perform functions that would otherwise require human capabilities. ML entails computers learning from data without human intervention.

Importance of FinTech

• Financial Inclusion- Fintech can bring financial services to individuals who may face barriers in accessing conventional banking because of:
  • Distance
  • High transaction costs
  • Lack of physical infrastructure
  • Information asymmetry
• Greater Efficiency- Digital platforms can reduce:
  • Transaction costs
  • Processing time
  • Paperwork
  • Operational costs
• Diversification of Credit- Fintech platforms can create alternative channels for credit delivery and reduce excessive dependence on traditional banking institutions.
• Innovation and Competition- Open and interoperable infrastructure allows start-ups and smaller firms to develop innovative financial products.

Regulatory and Institutional Framework

• Rapid fintech growth also creates risks. India has therefore developed a regulatory architecture involving institutions such as the RBI, SEBI and IFSCA.
• Important measures include:
• Regulatory Sandbox
  • The RBI’s Regulatory Sandbox allows financial innovations to be tested in a controlled environment before wider deployment.
• SRO-FT Framework
  • The framework for Self-Regulatory Organisations in the FinTech sector seeks to promote:
    • Ethical conduct
    • Market integrity
    • Industry standards
    • Dispute resolution
• Digital Payment Security
  • Security standards and AI/ML-based fraud monitoring are increasingly important as digital transactions grow.
• Data Protection
  • The expansion of digital finance makes personal and financial data protection essential.
  • Effective implementation of India’s data protection framework will be crucial for sustaining public trust

Challenges

• Despite its progress, India’s fintech ecosystem faces several challenges:
  • Rising cyber fraud and financial scams
  • Digital lending malpractices
  • Data privacy concerns
  • Digital divide
  • Algorithmic bias in AI-based lending
  • Consumer awareness gaps
  • Dependence on foreign technologies and infrastructure
  • Cybersecurity threats
  • Regulatory challenges associated with tokenisation and emerging technologies.

Way Forward and Conclusion

India should strengthen cybersecurity, data protection, consumer safeguards and responsible use of emerging technologies while bridging the digital divide.

With strong Digital Public Infrastructure and inclusive innovation, India can build a secure digital financial ecosystem and emerge as a global leader in people-centric fintech.

UPSC Prelims and Mains Practice Question

Consider the following statements regarding Financial Technology (FinTech) in India:

1. Digital Public Infrastructure has enabled fintech firms to build services using interoperable digital systems.
2. The Unified Payments Interface is operated by the National Payments Corporation of India.
3. Regulatory Sandboxes provide a controlled environment for testing innovative financial products and services.

Which of the statements given above are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (d)

Mains Practice Question

Q) India’s Digital Public Infrastructure has transformed financial inclusion and created a globally significant fintech ecosystem. Examine the opportunities and challenges associated with the next phase of fintech innovation in India. ( 250 words)

Pradhan Mantri Kisan Maandhan Yojana (PM-KMY)

Source: PIB
GS III: Agriculture, Inclusive Growth, Social Security

Why in the News?

The Pradhan Mantri Kisan Maandhan Yojana (PM-KMY) completed seven years on September 12, 2026.

News in Brief

• The scheme provides an assured old-age pension to eligible small and marginal farmers.
• Eligible beneficiaries receive a minimum assured pension of ₹3,000 per month after attaining 60 years of age.
• By February 2026, 24,96,252 farmers had enrolled, while ₹540.66 crore had been utilised for the scheme’s implementation and outreach.

Nature of the Scheme

• PM-KMY is a Central Sector Scheme implemented by the Department of Agriculture and Farmers Welfare under the Ministry of Agriculture and Farmers Welfare.
• The Life Insurance Corporation of India (LIC) is associated with the implementation and management of the pension scheme.
• Its primary objective is to provide financial security during old age small and marginal farmers.

Eligibility

• The scheme is meant for:
  • Small and marginal farmers owning cultivable land of up to 2 hectares.
  • Farmers between 18 and 40 years of age.
  • Eligible farmers whose names are recorded in the land records of the concerned State or Union Territory as on 1 August 2019.

Contribution Pattern

• PM-KMY follows a shared contribution model, under which the farmer and the Central Government contribute equally towards the pension fund.
• Farmers make a monthly contribution ranging from ₹55 to ₹200, depending on their age at the time of enrolment.
• The Central Government makes an equal matching contribution.
• The contribution is generally made through an auto-debit facility linked to the subscriber’s bank account.
• Eligible small and marginal farmers can also voluntarily use their PM-KISAN benefits to make contributions towards PM-KMY.
• Farmers can choose to contribute on a monthly, quarterly, four-monthly or half-yearly basis, providing greater flexibility according to their income and financial needs.

Pension Benefits

• On attaining the age of 60 years, eligible subscribers receive a minimum assured pension of ₹3,000 per month.
• If a subscriber passes away while receiving the pension, the spouse can receive a family pension equal to 50% of the pension amount, or ₹1,500 per month, subject to the provisions of the scheme.

Enrolment Process

• PM-KMY provides a largely paperless enrolment process  through Common Service Centres (CSCs).
• The registration process uses Aadhaar, bank account details and mobile-based verification.
• Once enrolled, the subscriber is provided with a Pension Account Number and pension card.
• The details are subsequently forwarded to the Life Insurance Corporation of India (LIC), which manages the pension fund and pension payments.
• Future contributions are automatically debited from the subscriber’s bank account.

Exclusion Criteria

Certain categories are excluded from the scheme, including,

• Institutional landholders
• Persons already covered under specified statutory or Central government social security schemes, such as National Pension Scheme, Employees’ State Insurance Corporation (ESIC) and Pradhan Mantri Shram Yogi Maan-dhan Yojana.
• Present and former holders of constitutional posts and certain categories of public repreentatives.
• Serving or retired government employees, subject to specified exceptions.
• Income-tax payers and registered professionals, including doctors, engineers, lawyers, chartered accountants and architects.

Impact: A Step Towards Old-Age Security for Farmers

• India’s farmers play a central role in ensuring the country’s food security.
• However, small and marginal farmers often face financial uncertainty in their later years, with limited savings and inadequate access to formal social security.
• The scheme represents an important step towards strengthening the social security net for the agricultural sector.
• PM-KMY extends the idea of farmer welfare beyond agricultural production and income support by addressing the life-cycle risks, including the need for financial security in old age.
• By providing an assured pension after the age of 60, the scheme seeks to reduce the economic vulnerability of small and marginal farmers in their later years.
• Its contributory model, digital enrolment process and flexible payment options are aimed at making pension coverage more accessible to farming households.
• In this sense, PM-KMY complements India’s wider efforts to build a more inclusive social security system for vulnerable sections.

Conclusion

As PM-KMY completes seven years, it highlights the need to view farmer welfare through a broader life-cycle approach. By providing old-age income support, the scheme seeks to ensure that farmers have greater financial security and dignity beyond their productive years.

Strengthening awareness, coverage and accessibility will be important in making such social security measures more inclusive and effective.

UPSC Prelims and Mains Practice Question

With reference to the Pradhan Mantri Kisan Maandhan Yojana (PM-KMY), consider the following statements:

1. It is a voluntary and contributory pension scheme for eligible small and marginal farmers.
2. Eligible subscribers receive a minimum assured pension of ₹3,000 per month after attaining 60 years of age.
3. The Central Government makes a matching contribution equal to the contribution made by the subscriber.

Which of the statements given above are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (d)

Mains Practice Question

Q) Discuss the importance of social security measures in improving the economic security and well-being of vulnerable sections in India. (250 words)

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