Daily Current Affairs โ 03 June 2026
Daily Current Affairs ยท 03 June 2026
10 fully-analysed topics ยท 30 bilingual MCQs ยท 3 embedded videos ยท built for UPSC Prelims & Mains
๐ฏ 30 MCQs
๐ฌ 3 Videos
๐ฎ๐ณ Hindi + English
UPSC Current Affairs MCQ โ 03 June 2026
10 UPSC-standard bilingual MCQs covering today's top stories ยท 10-sec timer per question
Score yourself as you go. Get a feel for how UPSC-level questions are framed around the day's news.
Economy
Indiaโs 1st Blue Bond
Recently, Sagarmala Finance Corporation announced plans to issue India's first blue bond to diversify its funding sources and finance maritime and coastal infrastructure projects.
- Blue Bond: A blue bond is a debt instrument used to raise funds specifically for projects linked to oceans
Which statement correctly describes Indiaโs 1st Blue Bond?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
Green Bonds – reporting
As per a recent study by the Reserve Bank of India (RBI), the cost of issuing green bonds has generally remained higher than other bonds in India, largely due to asymmetric information.
- Green Bonds (Description): About: A green bond is a debt instrument with which capital is being raised to fund 'green' projects
- Bonds traditionally paid a fixed interest rate (coupon) to investors.
- In 2007, green bonds were launched by few development banks such as the European Investment Bank and the World Bank
- The Securities and Exchange Board of India (SEBI) has put in place disclosure norms for issuance and listing of green bonds.
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- Enhances Reputation: Green bonds enhance an issuer's reputation, as it helps in showcasing their commitment towards sustainable development.
- Ability to meet commitments, for signatories to climate agreements and other green commitments.
- India's Intended Nationally Determined Contribution (INDC) document puts forth the stated targets for India's contribution towards climateโฆ
- Green bonds typically carry a lower interest rate than the loans offered by the commercial banks.
- With an increasing focus of foreign investors towards green investments, it could help in reducing the cost of raising capital.
- These green bonds have been crucial in increasing financing to sunrise sectors like renewable energy, thus contributing to India's sustainable growth.
Which statement correctly describes Green Bonds – Drishti IAS?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
Non-Banking Financial Companies (NBFCs)
Economy
Remittances Anchoring Indiaโs External Balances
Economists have highlighted the critical role of inward remittances in managing India's external balances.
- Cushioning the Current Account Deficit (CAD): Balance of Payments (BoP) Structure: The BoP is divided into the Current Account and the Capital Account
- Remittances act as a massive, liability-free surplus that offsets a significant portion of this trade deficit, keeping the overall CAD within aโฆ
- Since mid-2013, remittance inflows have, on average, financed more than the entire volume of India's merchandise trade deficit.
- When these foreign currencies are converted into INR for domestic use by families, it creates a persistent demand for the Rupee.
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- This buffers the domestic currency against sharp depreciations caused by volatile foreign investor sell-offs.
- Non-Debt Creating Inflows: Unlike External Commercial Borrowings (ECBs) or Foreign Direct Investment (FDI) which involve future repayment obligationsโฆ
- Forex Reserves: They reduce the burden on the Reserve Bank of India (RBI) to actively intervene in the forex market
- Socio-Economic Development: At the micro level
- Definition: Remittances are cross-border financial transfers sent by migrant workers and Non-Resident Indians (NRIs) back to their home country toโฆ
- Driver: These flows are largely driven by "altruistic motives" (family obligations) rather than "investment motives," making them highly stable andโฆ
Which statement correctly describes Remittances Anchoring Indiaโs External Balances?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
Indiaโs Remittance Trends 2024
The Reserve Bank of India's (RBI) 6th Round of India's Remittances Survey (2023-24) highlights that Advanced economies (AEs)
- Shift in Source of Remittances: India's total remittances have more than doubled
- AEs, including the UK, Singapore, Canada, and Australia, contributed over 50%
- Other major states include Tamil Nadu (10.4%), Telangana (8.1%), and Karnataka (7.7%). Rising trends were seen in Punjab, and Haryana.
- Digital remittances are rising, accounting for 73.5% of total transactions in 2023-24.
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- Stronger Job Markets in AEs: The US, UK, Canada, and Australia offer high-paying jobs, especially for skilled Indian migrants
- The UK-India Migration and Mobility Partnership (MMP) made it easier for Indians to get work visas
- Canada's Express Entry and Australia's immigration system favor skilled Indian professionals, leading to high-paying jobs and increased remittances.
- Additionally, economic diversification and automation have reduced demand for low-skilled Indian labor in the Gulf's construction sector.
- Meanwhile, nationalization policies like Nitaqat (Saudi Arabia) and Emiratization (UAE) favor local workers, further limiting job prospects forโฆ
- Uttar Pradesh, Bihar, and Rajasthan continue to send large numbers of workers to the Gulf, lower educational attainment compared to southern statesโฆ
Analyze the impact of shifting migration trends on India's Remittances and domestic labor market.
Which statement correctly describes Indiaโs Remittance Trends 2024?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
๐ Indian History MCQ Quiz ยท เคญเคพเคฐเคคเฅเคฏ เคเคคเคฟเคนเคพเคธ
10 bilingual MCQs ยท Indian History ยท Members Only on YouTube
Today's rotation: Indian History. Take this break between news topics to sharpen the core concept.
Economy
Rise in India's External Debt
India's external debt has risen to USD 747.2 billion at the end of June 2025, marking a 1.5% increase over the previous quarter, as per the latest data released by the Reserve Bank of India (RBI).
- Valuation Effects: The increase in external debt was largely driven by valuation effects arising from currency fluctuations
- The external debt-to-GDP ratio stands at 18.9%, reflecting a moderate and sustainable level of external liabilities.
- Long-term debt (maturity over one year) forms the bulk at USD 611.7 billion, while short-term debt declined to 18.1% of total debt
- US Dollar: 53.8% โ The dominant currency in India's external debt, showing significant exposure to global monetary fluctuations.
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- Indian Rupee: 30.6% โ A substantial share in domestic-currency debt.
- Special Drawing Rights (SDRs): 4.6% โ A minor portion.
- Non-financial Corporations: 35.9% โ The largest sector, reflecting the rise in private-sector external borrowings.
- Government & Financial Institutions: The remaining share of the external debt.
- About: External debt refers to the funds borrowed by a country from sources outside its borders
- It can be denominated in foreign currency or domestic currency, depending on the agreement.
Which statement correctly describes Rise in India's External Debt?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
India's Balance of Payments
Recently, the Reserve Bank of India (RBI) data revealed that India's current account registered a surplus in the fourth quarter (Jan-Mar) of the 2023-24 financial year.
- This achievement underscores the significance of India's Balance of Payments (BoP)
- About: The BoP serves as a crucial economic indicator, detailing all financial transactions between India and the rest of the world
- It measures the relative demand for the rupee against foreign currencies, crucially influencing exchange rates and economic stability.
- Current Account: Trade of Goods: Tracks physical imports and exports, indicating the balance of trade. A deficit suggests higher imports than exports.
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- Trade of Services (Invisibles): Includes sectors like IT
- The net of these two components determines the current account balance
- Captures investments such as Foreign Direct Investment (FDI) and Foreign Institutional Investments (FII), essential for economic growth and stability
- Disequilibrium: A disequilibrium in the balance of payment means its condition of Surplus or deficit
- Conversely, a deficit indicates higher expenditures than earnings, necessitating external financing or asset sales to cover the shortfall.
- Persistent deficits can strain a nation's economic stability
Which statement correctly describes India's Balance of Payments?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
RBI Eases External Commercial Borrowing Framework
The Reserve Bank of India has drawn up a new external commercial borrowing (ECB) framework in order to further improve the ease of doing business in India.
- The new framework will come into effect immediately.
- External Commercial Borrowings is a loan availed by an Indian entity from a nonresident lender with a minimum average maturity.
- Most of these loans are provided by foreign commercial banks buyers' credit
- Advantages of ECBs: ECBs provide opportunity to borrow large volume of funds.
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- The funds are available for relatively long term.
- Interest rate are also lower compared to domestic funds.
- ECBs are in the form of foreign currencies. Hence, they enable the corporate to have foreign currency to meet the import of machineries etc.
- Corporate can raise ECBs from internationally recognized sources such as banks, export credit agencies, international capital markets etc.
- The RBI kept the borrowing limit under the automatic route unchanged at $750 million per financial year but replaced the sector-wise limits.
- RBI has expanded the definition of beneficiaries eligible for external commercial borrowings to include all entities that can receive foreign directโฆ
Which statement correctly describes RBI Eases External Commercial Borrowingโฆ?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
Foreign Direct Investment in India
According to the Reserve Bank of India (RBI), India's net foreign direct investment (FDI) crashed from USD 10.1 billion in 2023โ24, and just USD 0.4 billion in 2024โ25.
- The sharp decline in net FDI is mainly due to increased repatriation and disinvestment by foreign firms
- About: FDI refers to investment made by a person residing outside India through capital instruments in either an unlisted Indian company or in atโฆ
- Automatic Route: An overseas investor is only required to inform the RBI after the investment is made
- Banking & Public Sector, Broadcasting Content Services, Food Products Retail Trading, Uploading/Streaming of 'News & Current affairs' through digitalโฆ
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- The Department for Promotion of Industry and Internal Trade (DPIIT)
- RBI also plays a key role by enforcing the FDI Rules.
- Strong Gross FDI Inflows: Gross FDI rose to USD 81 billion in 2024โ25, up from USD 71.3 billion in 2023โ24 and $71.4 billion in 2022โ23
- Top investing countriesโSingapore, Mauritius, UAE, Netherlands, and the United Statesโcontributed over 75% of gross FDI.
- The sectors driving over 90% of OFDI growth included financial
- It mandates that entities from countries sharing a land border with India
Which statement correctly describes Foreign Direct Investment in India?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Economy
FEMA & PMLA
The Directorate of Enforcement (ED) has registered 14,143 cases under FEMA and PMLA between 2019-20 and 2021-22 as compared to 4,913 cases in 2014-15 to 2016-17.
- Year 2021-22 saw the highest number of money laundering and foreign exchange violation cases.
- The legal framework for the administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act, 1999.
- Under the FEMA, which came into force with effect from 1st June 2000, all transactions involving foreign exchange have been classified either asโฆ
- It includes those transactions which are undertaken by a resident of India such that his/her assets or liabilities outside India are altered (eitherโฆ
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- A 'person resident in India' is defined in Section 2(v) of FEMA
- Any person or body corporate registered or incorporated in India.
- An office, branch or agency in India owned or controlled by a person resident outside India.
- An office, branch or agency outside India owned or controlled by a person resident in India.
- It forms the core of the legal framework put in place by India to combat Money Laundering.
- The provisions of this act are applicable to all financial institutions
Which statement correctly describes FEMA & PMLA?
โ Correct! That fact belongs to this topic.
โ Not quite โ that fact is from another headline. The green option is right.
Simple Current Affairs MCQ โ 03 June 2026
10 accessible MCQs covering the same topics ยท great for quick revision
End your study session with these simpler MCQs to lock in recall of today's current affairs.
