UPSC Lifebloods brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Attempt today’s subject quiz on the Economy to check your progress.

QUESTION 1

With reference to the aviation fuel, consider the following statements:

1. Aviation Turbine Fuel (ATF) is a high-quality petrol-based fuel.

2. The sustainable aviation fuel (SAF) is produced from feedstocks.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Relevance: The question tests basic understanding of fuel types and classifications. It is important due to increasing focus on sustainable fuels and decarbonisation.

Explanation:

— Even as the prices of aviation turbine fuel (ATF), or jet fuel, have surged globally due to the raging West Asia war, the price of the fuel for domestic scheduled flights in India has been hiked only partially by the public sector oil marketing companies (OMCs), according to the Ministry of Petroleum and Natural Gas (MoPNG).

— Aviation Turbine Fuel (ATF), sometimes known as jet fuel, is a specialised, high-quality kerosene-based fuel that is refined specifically to power aircraft gas turbine engines. Hence, statement 1 is not correct.

— The sustainable aviation fuel (SAF) is a biofuel that is produced from sustainable feedstocks and has chemistry similar to conventional aviation turbine fuel (ATF) or jet fuel, which is derived from crude oil. Hence, statement 2 is correct.

— The year 2027 will be an important one for adoption of SAF globally with the mandatory phase of CORSIA kicking in. CORSIA, which applies to international flights, would require airlines globally to offset any growth in carbon dioxide emissions beyond the 2020 levels. India, too, will have to comply with the mandatory phase starting 2027. In line with the CORSIA framework, India’s National Biofuel Coordination Committee (NBCC) has set the initial indicative targets for blending of SAF with jet fuel 2027 onwards, starting with international flights. The indicative targets are: 1 per cent blending in 2027 and 2 per cent in 2028.

Therefore, option (b) is the correct answer.

QUESTION 2

With reference to the Special Economic Zones (SEZs), consider the following statements:

1. The functioning of the SEZs is governed by a three tier administrative set up.

2. All the proposals for setting up of units in the SEZ are approved at the Zone level.

3. The state governments cannot offer concessions for SEZs.

4. The performance of the SEZ units are periodically monitored by the Ministry of Finance.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) Only three

(d) All four

Relevance: The question is important for understanding Centre–State roles and approval mechanisms. Aspirants must read about SEZ in brief. It is frequently in current affairs, which makes this topic crucial for UPSC prelims.

Explanation:

— As the West Asia war entered its fifth week, the government on Wednesday implemented concessions for Special Economic Zones (SEZs) announced during the Union Budget 2026-27. SEZ manufacturers have been facing pressures amid global geopolitical tensions and the US tariff impact from last year. This “one-time concession” will remain in place from April 1, 2026, to March 31, 2027, the government said.

— According to the sezindia.gov.in –

— “The functioning of the SEZs is governed by a three tier administrative set up. The Board of Approval is the apex body and is headed by the Secretary, Department of Commerce. The Approval Committee at the Zone level deals with approval of units in the SEZs and other related issues. Each Zone is headed by a Development Commissioner, who is ex-officio chairperson of the Approval Committee. Hence, statement 1 is correct.

— Once an SEZ has been approved by the Board of Approval and Central Government has notified the area of the SEZ, units are allowed to be set up in the SEZ. All the proposals for setting up of units in the SEZ are approved at the Zone level by the Approval Committee consisting of Development Commissioner, Customs Authorities and representatives of State Government. Hence, statement 2 is correct.

— All post approval clearances including grant of importer-exporter code number, change in the name of the company or implementing agency, broad banding diversification, etc. are given at the Zone level by the Development Commissioner.

— The performance of the SEZ units are periodically monitored by the Approval Committee and units are liable for penal action under the provision of Foreign Trade (Development and Regulation) Act, in case of violation of the conditions of the approval.” Hence, statement 4 is not correct.

— While SEZs are administered by central law, state governments play an important supportive role. They can offer extra incentives like subsidised land, stamp duty exemptions, electricity duty waivers, and municipal tax breaks. Hence, statement 3 is not correct.

Therefore, option (b) is the correct answer.

QUESTION 3

With reference to the power generation, consider the following statements:

1. Power generated from gas-based units is cheaper than coal and renewable energy.

2. Coal-based power plants dominate India’s electricity generation mix, contributing over 70%.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Relevance: The question checks conceptual clarity on energy economics. It is important for students to understand India’s energy mix and dependency patterns. Aspirants must also read about the contribution of renewable energy.

Explanation:

— As India heads into a “hotter-than-normal” summer, with forecasts pointing to an above-average number of heatwave days, the government plans to rely more on coal-based power to meet peak summer demand.

— Coal-based power plants already dominate India’s electricity generation mix, contributing over 70%. Gas contributes around 1-2% in the country’s overall power generation. Hence, statement 2 is correct.

— Power generated from gas-based units is typically more expensive than coal and renewable energy. However, due to their flexibility, they are generally used during high-demand periods, such as peak summer months when cooling demand surges, to meet evening peak demand. Hence, statement 1 is not correct.

— In the past, the government has invoked emergency measures to ensure utilities operate both gas and coal plants at full capacity when soaring temperatures push electricity consumption to record levels.

Therefore, option (b) is the correct answer.

QUESTION 4

The Ways and Means Advances (WMA) is:

(a) a long-term concessional loan provided by the International Monetary Fund to member countries for balance of payments crises.

(b) a grant-in-aid released by the Ministry of Finance to states for infrastructure development without repayment obligations.

(c) a mechanism through which the Reserve Bank of India directly finances fiscal deficits of the government on a permanent basis.

(d) a short-term interest-bearing advance – to the Governments, to meet temporary mismatches in their receipts and payments.

Relevance: The WMA is an important finance tool. The question tests conceptual clarity on government financing instruments and fiscal management tools. UPSC may ask questions on specific terms, which are frequently in news. Aspirants must read about these terms in detail.

Explanation:

— The Reserve Bank has well defined obligations and provides several banking services to the Governments. As a banker to the Government, the Reserve Bank receives and pays money on behalf of the various Government Departments. It provides Ways and Means Advances – a short-term interest-bearing advance – to the Governments, to meet temporary mismatches in their receipts and payments.

Therefore, option (d) is the correct answer.

(Source: http://www.rbi.org.in)

QUESTION 5

With reference to the MGNREGS in the 2025–26, consider the following statements:

1. The number of households that availed MGNREGS in the 2025–26 fiscal year was higher than last year.

2. The figure for the 2025-26 fiscal year does not include Assam’s beneficiaries.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Relevance: The question tests awareness of recent trends in flagship schemes like MGNREGA. Aspirants must focus on data interpretation and exceptions in official reporting. As it is linked with current affairs, which makes it an important pick for UPSC.

Explanation:

— As the NDA government moves to replace the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) with the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (GRAMIN).

— The official data shows that 5.32 crore households availed the scheme in the 2025–26 fiscal year, an 8 per cent decline from the previous year. The number of households that availed MGNREGS in the 2025–26 fiscal year was lower than last year’s 5.78 crore. Hence, statement 1 is not correct.

— The figure for the 2025-26 fiscal year does not include West Bengal’s beneficiaries, as no work was taken up under MGNREGS in the state. In 2025-26, MGNREGS demand was higher only during May-June compared to the corresponding months of the previous fiscal year, while it was lower in the other months. Hence, statement 2 is not correct.

Therefore, option (d) is the correct answer.

Don’t miss | UPSC Current Affairs Pointers of the past week (23–29 March 2026) | UPSC Lifebloods | Hunk of Knowledge

The post UPSC Lifebloods | Daily subject-wise quiz : Economy MCQs on aviation fuel, Ways and Means Advances and more appeared first on Rma News: Latest News, Live Breaking News, Today News, Political News Updates.

Take a look at the essential concepts, terms, quotes, or phenomena every day and brush up your knowledge. Here’s your hunk of knowledge on the RBI for today.

Hunk of Knowledge: Reserve Bank of India (RBI)

Subject: History and Economy

Why in the news?

On April 1, 1935, the Reserve Bank of India (RBI) was established in accordance with the provisions of the Reserve Bank of India Act, 1934. It is responsible for monetary stability, currency management, inflation targeting, regulating the banking system, and setting interest rates.

Key takeaways:

1. It was set up on the basis of the recommendations of the Royal Commission on Indian Currency (Hilton Young Commission) which was set up in 1926. It recommended establishing a central bank to be called the ‘Reserve Bank of India’.

2. RBI is tasked with regulating the issue of banknotes, maintaining reserves with a view to securing monetary stability and to operate the credit and currency system of the country to its advantage.

3. The first Governor of the RBI was the Australian Sir Osborne Arkell Smith, one of the two managing governors of the Imperial Bank of India. Sir C D Deshmukh was the first Indian to become Governor.

4. The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated.

5. RBI was nationalised from 1st January, 1949 on the basis of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. All shares in the capital of the Bank were deemed transferred to the Central Government on payment of a suitable compensation.

6. The affairs of the RBI is governed by the Central Board of Directors consisting of the Governor and not more than four Deputy Governors. Non-official directors nominated by the government consist of ten Directors from various fields and two government officials along with four Directors – one each from four local boards.

7. RBI has four local boards: Western Area, Eastern Area, Northern Area and Southern Area. It consists of five members each who are appointed by the Central government for a term of four years. However, since 2022 these local boards are not functioning due to lack of quorum. As per the RBI, a Standing Committee of the Central Board is functioning in the areas where Local Boards are unable to function for want of quorum.

8. RBI performs several functions from maintaining price stability, issuing currency to banker to the government and banks. One of the significant functions which becomes important in the current times is the management of the forex reserve. It manages the Foreign Exchange Management Act, 1999 to facilitate external trade and payment and promote orderly development and maintenance of the foreign exchange market in India.

New initiatives of the RBI

New rules for digital payments starting April 1, 2026: To make digital transitions safer and reduce fraud, RBI has introduced new rules for digital payments. It is making two-factor authentication mandatory, which means OTP alone will no longer be enough. It will need an extra step to complete transactions, like entering a PIN or password, or using your fingerprint or face scan. At the same time, RBI is also making banks more accountable. If a fraud happens because of weak security, banks may have to compensate customers.

e-cheques: In an effort to modernise India’s payment ecosystem, the Reserve Bank of India has proposed the introduction of electronic cheques (e-cheques). This initiative aims to merge the trusted, well-established features of traditional paper cheques with the efficiency, speed and security of digital payment systems, while also catering to evolving business and consumer needs. An e-cheque is a digital version of a paper cheque created and sent online instead of on paper. The payer fills in the details, signs it securely using a digital method, and sends it to the payee or bank. The bank verifies and processes it like a normal cheque, but it is faster, more secure, paperless and easy to track.

MuleHunter.AI: It is an AI-powered tool developed by the RBI to reduce digital fraud by helping banks deal with the increasing problem of “mule” bank accounts. A mule account is a bank account that is used by criminals for illegal activities, including the laundering of illicit funds. A mule account is typically bought over by the criminals from their original users, individuals who are often from lower income groups, or have low levels of technical literacy.

BEYOND THE HUNK: Amid the West Asia war crisis, the task at hand for the RBI 

1. The falling value of the rupee, rise in oil prices, and fears over inflation in the wake of the West Asia conflict led the RBI to take action. It instructed banks to limit their net open exposure to the currency in the foreign exchange market to $100 million by the end of each day. Authorized dealers must comply with this rule by April 10.

2. The RBI’s goal in taking this step is to stabilise the falling rupee and protect the country’s foreign exchange reserves, which have fallen since the West Asian conflict started a month ago. The RBI’s measure is aimed at halting the rupee’s decline by limiting how much foreign currency exposure banks can maintain onshore. Previously, banks could hold net open positions up to 25 per cent of their total capital, a much higher allowance than under this the new cap.

3. Further, as the pressure on the currency built up, the RBI has used the dollar in its forex kitty to stabilise the rupee. As a result, the country’s forex reserves have fallen by over $30 billion, to $698.34 billion, since the conflict began. India’s forex reserves have four components: foreign currency (FX) assets, gold, Special Drawing Rights (SDRs), and the Reserve Tranche Position with the International Monetary Fund (IMF).

4. However, the recent rupee breached 95-per-dollar, left many speculating about the effectiveness of these measures. Michael Patra, former deputy governor of the Indian central bank, in an interview with Siddharth Upasani, said that the RBI should lean on the US’s Foreign and International Monetary Authorities (FIMA) Repo Facility to ensure US dollars are “flushed continuously in and out of the market.”

5. Under the Foreign and International Monetary Authorities (FIMA) Repo Facility, central banks such as the RBI can place their holdings of US Treasuries with the Fed for one or seven days and get dollars in return. At the end of this period, the dollars must be returned to the Fed, along with some interest, and foreign central banks get back the securities. The use of the facility would have a “stabilising influence” on the market, economise the RBI’s use of its forex reserves, and give it time to rebuild them, the former central banker said.

6. Impact of falling rupee: When the Indian currency depreciates, the first and most immediate casualty is the import bill. Crude oil, electronic components, fertilisers and industrial machinery — all priced in dollars — suddenly become more expensive. The burden then steadily shifts to businesses and households, pushing up inflation and eroding purchasing power.

7. A $1 rise in crude oil increases India’s annual import bill by roughly $1.5–2 billion, depending on total import volumes. This directly widens the current account deficit (CAD). In simple words, CAD means India imports more goods and services than it exports. This, in turn, implies that the demand for the foreign currency (say the US dollar) is more than the demand for the Indian rupee.

Post Read Question

Consider the following statements about the RBI:

1. The RBI was set up on the recommendation of the Hilton Young Commission.

2. The MuleHunter.AI tool developed by IIT Delhi is being made compulsory for the commercial banks.

3. The Foreign and International Monetary Authorities (FIMA) Repo Facility is provided by the RBI.

Which of the statements mentioned above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 2 only

(d) 1, 2, and 3

Don’t miss | UPSC Current Affairs Pointers of the past week (23–29 March 2026) | UPSC Lifebloods | Hunk of Knowledge

The post Hunk of Knowledge | RBI Foundation Day Special: History, new initiatives, and rupee stabilisation appeared first on Rma News: Latest News, Live Breaking News, Today News, Political News Updates.

Take a look at the essential concepts, terms, quotes, or phenomena every day and brush up your knowledge. Here’s your hunk of knowledge on PM KUSUM scheme.

Hunk of Knowledge : PM KUSUM 

Subject: Schemes and policies

(Relevance: Direct questions have been asked on government schemes. Since the government has set a target of enhancing India’s solar energy capacity. In this regard, it is important to understand this scheme and what the new components are to be added to the scheme.)

Why in the news?

The centre is considering incorporating a new provision for battery energy storage in the revamped Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM KUSUM) scheme, as it works on formulating a new version of the flagship programme, The RMA NEWS has learnt.

Key takeaways:

1. Launched in 2019, this scheme promotes the installation of small grid-connected solar power plants, standalone solar pumps, and solarisation of existing grid-connected pumps in rural areas.

Climate goal targets

India has promised to ensure that at least 60 per cent of its total electricity generation capacity would comprise non-fossil fuel sources by 2035, as per India’s third nationally-determined contribution (NDCs) submitted last year. Also, at COP-26, the Government has set a target of 500 GW Non-fossil energy capacity by 2030. PM KUSUM scheme has been consistently positioned as a key pillar of its clean energy transition and reaching these targets.

2. The scheme allows farmers not only to use solar power for their own needs but also, in certain cases, to earn by selling surplus electricity. This dual benefit, energy access and income generation, sets it apart from earlier agricultural power initiatives.

3. With the focus on promoting solarisation in the agricultural sector, It aimed to add Solar capacity of 34,800 MW by March 2026. As of February 2026, a total of 12,164 MW capacity has been installed under the scheme. It consisted of three components:

Component A: setting up of decentralised solar power plants

Component B: installing standalone solar pumps in off-grid areas

Component C: solarising grid-connected agricultural pumps

4. Under Component C, the Centre supports both individual pump solarisation (IPS) and feeder-level solarisation (FLS). While IPS enables farmers with grid-connected agricultural pumps to solarise their individual units, FLS allows states to solarise entire agricultural feeders instead of individual pumps.

3. With the focus on promoting solarisation in the agricultural sector, It aimed to add Solar capacity of 34,800 MW by March 2026. As of February 2026, a total of 12,164 MW capacity has been installed under the scheme. It consisted of three components:

Component A: setting up of decentralised solar power plants

Component B: installing standalone solar pumps in off-grid areas

Component C: solarising grid-connected agricultural pumps

4. Under Component C, the Centre supports both individual pump solarisation (IPS) and feeder-level solarisation (FLS). While IPS enables farmers with grid-connected agricultural pumps to solarise their individual units, FLS allows states to solarise entire agricultural feeders instead of individual pumps.

→ Reduce the agriculture electricity subsidy burden on states by improving the financial health of DISCOMS. Subsidy on account of agricultural electricity production has burdened the State’s exchequer.

→ Reducing the import bills by reducing the diesel consumption, which in turn reduced the import bill on account of petroleum products.

Rationale for New Battery Storage Provisions 

Agricultural demand rises in the morning, remaining steady throughout the day, and declines after sunset. In contrast, solar generation gradually increases during the day, peaks around noon, and tapers off thereafter. This misalignment has posed operational challenges for power distribution and grid management.

The proposed battery storage component is expected to bridge this gap by storing surplus solar power generated during peak hours and supplying it when demand persists but generation falls. Discussions on the design of the scheme are ongoing.

Agri-PV component

While addressing the 4th National Agro-RE Summit, Union Minister of New & Renewable Energy Shri Pralhad Joshi  informed that the government may include a dedicated 10 GW Agri-PV component in PM-KUSUM 2.0 to promote the co-location of solar panels with crops.

Agriphotovoltaics (Agriphotovoltaics), the co-location of solar power generation and agricultural activity, offers an initiative to utilize the same agricultural land for generating electricity while continuing agricultural activities, creating a new model for decentralised renewable energy generation in rural India.

BEYOND THE HUNK: Key schemes to achieve renewable energy targets

PM Surya Ghar: Muft Bijli Yojana: Launched in February, 2024, the initiative, aims to install rooftop solar panels in 1 crore households and provide up to 300 units of free electricity per month. The scheme offers substantial subsidies: ₹30,000 per kW for up to 2 kW, ₹18,000 per kW for additional capacity up to 3 kW, and a total subsidy capped at ₹78,000. As of March 2026, more than 31 lakh households have already benefited from rooftop solar installations under the scheme, enabling families to generate their own electricity and reduce electricity bills.

New Solar Power Scheme (for PVTG Habitations/Villages) under PM JANMAN: Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) is being implemented through nine line ministries and focuses on eleven critical interventions for Particularly Vulnerable Tribal Groups (PVTGs). One of these interventions is the New Solar Power Scheme (for PVTG Habitations/Villages), which aims to electrify one lakh un‑electrified PVTG households by providing off‑grid solar systems in areas where grid‑based electricity supply is not techno‑economically feasible.

Development of Solar Parks and Ultra Mega Solar Power: Initiated in December 2014, this programme aims to facilitate solar project developers in setting up projects expeditiously. This initiative helps in establishing “transmission infrastructure, road, water, drainage, communication network etc., with all statutory clearances” for the rapid development of solar energy projects.

Post Read Question

The objective of the PM KUSUM scheme (66th BPSC)

(a) to reduce farmers’ dependence on monsoon for irrigation

(b) to reduce farmers’ dependence on moneylenders for credit

(c) promotion of floriculture in India

(d) to remove farmers’ dependence on diesel and kerosene and to link pump sets to solar energy

(e) None of the above/More than one of the above

Don’t miss | UPSC Current Affairs Pointers of the past week (23–29 March 2026) | UPSC Lifebloods | Hunk of Knowledge

The post Hunk of Knowledge | PM-KUSUM revamp on the cards: Key points for UPSC aspirants appeared first on Rma News: Latest News, Live Breaking News, Today News, Political News Updates.

Take a look at the essential events, concepts, terms, quotes, or phenomena every day and brush up your knowledge. Here’s your UPSC Current Affairs hunk of knowledge for today on Gold. 

Hunk of Knowledge: Gold 

Subject: Economy and Geography 

(Relevance: Given the fluctuation in the price of gold and changing safe-haven dynamics in the global economy, it becomes important to know about this precious yellow metal not only from an economic standpoint but also through demand, consumption and geographical perspectives.)

Why in the news?

Gold prices have crashed sharply amid the ongoing war in West Asia. Previously, prices of the yellow metal had surged in 2025 and early 2026 to multiple record highs when the US’ tariff threats had plundered markets around the world and had weighed on the US dollar. Gold prices on both the domestic and global markets are down around 27% from their January peak, despite the war in West Asia battering global markets. 

In this context, let’s understand why gold prices are down after 2025’s historic surge and why there is no safe-haven demand for bullion currently, as seen earlier when geopolitical uncertainty was elevated, and know about the precious yellow metal in detail.

Key Takeaways:

1. The key aspect holding back safe-haven demand for gold this time is the sky-high prices of crude oil. High crude prices lead to fears of inflation levels rising around the world, which delays rate cuts by central banks around the world. Some central banks may even consider raising interest rates to combat inflation if the situation worsens as the West Asia conflict prolongs itself.

2. The US dollar has also emerged as a safe-haven asset this time around. The dollar index, which measures the strength of the dollar against many other global currencies, has strengthened by over 2% to around 100 since the West Asian war began, compared to the 96 levels it had dipped to when the US tariff threats were at a peak. This has provided an opportunity for investors to book some profits in gold after its rally to the peak, leading to a fall in gold prices, and instead invest in the US dollar.

3. The stronger dollar makes assets priced in the US currency – such as gold and silver – more expensive, thereby hurting their demand and prices.

Gold and its Properties

1. Gold in its purest form is a bright, slightly reddish yellow, dense, soft malleable and ductile metal. It is one of the least reactive chemical elements and is solid under standard conditions.

2. Gold often occurs in free elemental (native) form, as nuggets or grains, in rocks, in vein and in alluvial deposits. Gold is resistant to corrosion and to most acid and has unique properties distinct from other metals.

3. Gold dissolves in an alkaline solution of cyanide, which is used in mining and electroplating. It also dissolves in mercury, forming amalgam alloys, but this is not a chemical reaction.

Distribution

1. Gold is a relatively scarce metal in the world and a scarce commodity in India. The domestic demand is mainly met through imports.

2.  According to the Indian Minerals Yearbook 2022 (Part II: Metals & Alloys), by states, the largest resources in terms of gold ore (primary) are located in Bihar (43%), followed by Rajasthan (24.92%), Karnataka (20%), West Bengal (2.47%), Andhra Pradesh (3.03%) and Jharkhand (2%). The remaining 5.22% of resources of ore are located in Chhattisgarh, Madhya Pradesh, Kerala, Maharashtra and Tamil Nadu.

3.  Although Bihar is the leading State in India as far as resources of gold ore are concerned, the resource estimates are at preliminary stage and falls under Inferred and Reconnaissance categories. In terms of metal content, Karnataka remained on top, followed by Rajasthan, Andhra Pradesh, Bihar, Jharkhand, etc.

4. According to the Indian Minerals Yearbook 2022 (Part II: Metals & Alloys), the estimated world reserves of gold were about 52,000 tonnes of metal content. The gold reserves are mainly located in Australia, Russia, South Africa, USA, Indonesia, Brazil and Peru.

Demand and Consumption of Gold

1. Jewellery accounts for major consumption of gold. The Industrial demand especially in the Electrical Sector for gold is mainly due to excellent thermal and electrical properties. Besides, a significant amount is consumed in dentistry and medicine.

2. Continuing research has discovered new applications for gold as a catalyst and in nano-technology.

3. Gold is considered a valuable asset, for investments and bank reserves.

BEYOND THE HUNK: Silver – a precious and industrial metal

1. Unlike gold, which is primarily purchased by households and central banks as a store of value and investment, silver actually has inherent physical properties that make it a key component in the manufacture of items, such as batteries and solar panels. These sectors are not only in vogue now but will be crucial to the future of humanity.

2. Silver is also used to make jewellery and coins. That is why buyers and their reasons to purchase silver are more varied than those of gold.

3. Silver is a soft and lustrous metal that is classified as a noble metal. Its white colour, malleability and resistance to atmospheric oxidation have enhanced its value as a highly desired precious metal which is used in many industrial applications.

4. Apart from its monetary and decorative uses, silver is known to have the highest electrical conductivity amongst all metals that enhances its potential in modern age applications, viz, for printed electric circuits, coating for electronic conductors and in alloys of gold and copper for electrical contacts.

5. Its chloride and iodide are light-sensitive and hence used in photographic material. Silver is typically used (in paste form) on solar cells. Silver is the whitest element and has the highest electrical and thermal conductivity among all the metals.

6. In India, there are no native silver deposits except the small and unique Bharak deposit in Rajasthan. It  occurs generally with lead, zinc, copper (especially their sulphide ore) and gold ores and is extracted as a by-product from electrolysis or chemical methods. It was usually extracted by melting silver-bearing lead ore (ore containing argentiferous galena).

7. According to Indian Minerals Yearbook  2022, Silver is recovered as a co-product as well as a by-product in the country. Silver was recovered in the past as a co-product in gold refining at KGF Complex and Hutti Gold Mines in Karnataka and as a by-product in smelting and refining of lead, zinc and copper concentrates at Chanderiya and Debari smelters in Rajasthan, Tundoo and Moubandar  (Ghatsila) smelters in Jharkhand and at Visakhapatnam smelter in Andhra Pradesh.

Post Read Question

Consider the following statements with reference to gold:

1. Gold is highly reactive and easily corroded.

2. It occurs in native form in rocks and alluvial deposits.

3. It dissolves in cyanide solution.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 2 only

(d) 1, 2 and 3

Don’t miss | UPSC Current Affairs Pointers of the past week (23–29 March 2026) | UPSC Lifebloods | Hunk of Knowledge

The post Hunk of Knowledge | Gold in spotlight: Understanding price trends, its uses, and distribution appeared first on Rma News: Latest News, Live Breaking News, Today News, Political News Updates.