UPSC Current Affairs Quiz : 4 October 2025

Solution: A

• Both statements are correct, and Statement-II directly explains the core of the disagreement mentioned in Statement-I.
• The dispute originates from the 1914 resolution between the Government of Bombay and the Ruler of Sindh. Pakistan argues that the resolution placed the boundary on the eastern bank, giving it full control of the creek.
• India, conversely, invokes the thalweg principle, a standard in international maritime law for river boundaries, which was implicit in the 1914 map’s cartography. This principle dictates that a boundary should follow the middle of the principal navigable channel.
• Therefore, the differing interpretations of the 1914 resolution, specifically concerning the application of the thalweg doctrine, form the central reason for the continuing dispute. The resolution of this issue is critical as it affects the demarcation of the Exclusive Economic Zones (EEZs) for both nations in the Arabian Sea.

Solution: B

Only the third statement is correct.

• The regulatory framework for External Commercial Borrowings (ECBs) is governed by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA), 1999.
• Statement 1 is incorrect because ECBs can be raised in both foreign currency and Indian Rupees (INR), subject to specific conditions.

Statement 2 is incorrect as there are strict end-use restrictions on ECB funds. They are explicitly not allowed for speculative activities, which includes investment in the capital market (share market) or the real estate business. The primary aim of ECBs is to facilitate access to foreign capital for productive purposes like funding capital expenditure, infrastructure projects, and refinancing existing loans, thereby diversifying funding sources beyond domestic markets.

Solution: B

• Statement 1 is incorrect regarding the launching body and a key function. The SARAL (Simplified and Automated Research Amplification and Learning) tool was launched by the Anusandhan National Research Foundation (ANRF), not the Ministry of Science and Technology directly. While its purpose is to simplify, it creates easy-to-understand summaries, videos, podcasts, and posters, not necessarily direct translation into multiple Indian languages.
• Statement 2 is correct as SARAL aims to bridge the science-society gap by making complex research understandable for non-specialists, thereby facilitating its application by citizens, policymakers, and industry.
• Statement 3 is also correct; the tool is associated with the development of an AI Science and Engineering Open India Stack, which will support applications in critical sectors like drug discovery and climate science.

Solution: D

• The term ‘Typhoon’ is used to refer to tropical cyclones that form in the Northwest Pacific Ocean, the region affecting East and Southeast Asia, including countries like the Philippines, Vietnam, and Japan. While the meteorological phenomenon is the same, the terminology varies by geographical location.
• ‘Hurricane’ is the term used for tropical cyclones in the North Atlantic, Central, and Eastern North Pacific.
• The term ‘Cyclone’ is used in the South Pacific and the Indian Ocean.
• ‘Willy-willy’ is a more colloquial term, sometimes used in Australia for a dust devil or a small cyclone.
• Therefore, Typhoon Bualoi, which impacted the Philippines and Vietnam, is correctly named according to its region of occurrence. This regional nomenclature helps in geographical identification and regional warning systems.

Solution: C

• Statement 1 is incorrect. Switzerland is bordered by Germany, France, Italy, Austria, and Liechtenstein, not Belgium.
• Statement 2 is incorrect. The administrative capital is Bern, but the judicial capital (home to the Federal Supreme Court) is Lausanne, not Geneva. Geneva hosts numerous international organizations, including UN bodies.
• Statement 4 is incorrect. While Switzerland has a tradition of neutrality, it became a full member of the United Nations (UN) in 2002.
• Statement 3 is correct. The river Rhône does originate in the Swiss Alps and flows through southeastern France to eventually drain into the Mediterranean Sea.

Solution: C

• Statement 1 is correct. To prevent Indian companies from taking on excessively expensive foreign debt, the RBI imposes a cap on the all-in-cost ceiling for ECBs. This cost includes the rate of interest, other fees, and expenses, ensuring that borrowing remains within prudent limits.
• Statement 2 is correct. Refinancing of existing loans is a permitted end-use for ECB proceeds. This includes refinancing of existing ECBs, Rupee loans, and trade credits, subject to certain conditions laid down in the regulatory framework.

Solution: A

• Both statements are correct, and Statement-II provides the precise reason for the strategic importance mentioned in Statement-I. The Sir Creek dispute is not merely about a 96-km stretch of marshland; its strategic importance (Statement-I) stems from its implications for maritime boundaries.
• According to the UN Convention on the Law of the Sea (UNCLOS), the way a coastal boundary is defined determines the starting point for mapping a country’s Exclusive Economic Zone (EEZ) and continental shelf. These zones grant a nation sovereign rights over living and non-living resources, including fishing, oil, and natural gas.
• As Statement-II correctly points out, the demarcation of Sir Creek will determine the extent of these resource-rich maritime zones for both India and Pakistan in the Arabian Sea, making its resolution a high-stakes strategic issue.

Solution: A

• Both statements are correct, and Statement-II provides the policy rationale behind the structure mentioned in Statement-I.
• Statement-I correctly states the existence of two channels for processing ECB applications: the Automatic Route and the Approval Route.
• Statement-II explains why this dual structure exists. The Automatic Route offers efficiency and flexibility for borrowers whose proposals meet all the standard, pre-defined criteria (e.g., regarding amount, maturity, all-in-cost). This reduces procedural delays.
• The Approval Route is reserved for cases that deviate from these norms, requiring specific scrutiny by the RBI. This allows the central bank to exercise regulatory oversight, ensuring that large or unusual foreign borrowings do not pose a risk to the country’s financial and macroeconomic stability.

Solution: C

• Statement 1 is correct. Candidates for elections are explicitly barred from receiving foreign funds to prevent foreign influence on the electoral process and maintain the integrity of democratic institutions.
• Statement 2 is correct. Journalists and media companies are also prohibited from receiving foreign contributions to ensure the independence and impartiality of the media, which is considered the fourth pillar of democracy.
• Statement 3 is correct. Members of the Legislature are on the prohibited list to prevent them from being influenced by foreign entities in their legislative and policy-making functions.
• Statement 4 is incorrect. Non-Governmental Organizations (NGOs) are not prohibited from receiving foreign contributions. However, they are required to be registered under the FCRA and obtain a valid license, which is valid for five years. The Act is designed to regulate, not prohibit, the flow of foreign funds to NGOs, ensuring that they are used for legitimate purposes.

Solution: D

• Statement 1 is correct. Ishwar Chandra Vidyasagar was a prominent figure of the Bengal Renaissance and is widely revered as the “Father of Modern Bengali Prose”. His book ‘Borno Porichoy’ modernized the Bengali language and is a testament to his contributions to literature and education.
• Statement 2 is correct. Vidyasagar was a passionate advocate for women’s rights. He led the campaign for the Hindu Widow Remarriage Act, 1856, which legalized the remarriage of Hindu widows, a practice that was socially forbidden at the time. He also championed the cause of women’s education and founded several schools for girls.