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Vivek Aggarwal Appointed FATF Vice President: India’s First | UPSC Notes

Why in News?

India has been accorded the Vice Presidency of the Financial Action Task Force (FATF) for the first time. Vivek Aggarwal, India’s nominee, has been appointed as the FATF Vice President — a landmark in India’s growing role in global financial governance.

Key Facts for Prelims: FATF

  • Established: 1989 at the G7 Summit in Paris
  • Nature: Independent, inter-governmental policy-making body (not a UN agency, not an enforcement body)
  • Secretariat: Housed at OECD Headquarters, Paris
  • Membership: 40 members — 38 jurisdictions + 2 regional organizations (European Commission + Gulf Cooperation Council)
  • Decision-making: Via FATF Plenary, meets thrice a year (February, June, October) — decisions by consensus

Mandate Evolution (Critical for Prelims)

  • 1989: Anti-Money Laundering (AML) only
  • 2001: Expanded to Counter Financing of Terrorism (CFT)
  • 2012: Expanded to Counter Proliferation Financing (CPF) — related to WMDs

Quick Revision Table: FATF Grey List vs Black List

AspectGrey ListBlack List
FATF TermJurisdictions under Increased MonitoringHigh-Risk Jurisdictions Subject to Call for Action
MeaningStrategic AML/CFT deficiencies but working with FATFSerious deficiencies, significant risk to global finance
FATF ApproachMonitoring and assistanceStrong countermeasures encouraged
Economic ImpactHigher transaction costs, reduced investor confidenceSevere restrictions on international trade and finance
Finance AccessAvailable with enhanced due diligenceHighly restricted; banks may avoid altogether

Trap / Confusing Points

ConfusionCorrect Fact
FATF is a UN bodyFATF is independent, not a UN agency (Secretariat is at OECD, Paris)
FATF Plenary meets monthlyMeets thrice a year — Feb, Jun, Oct
Grey List = punishment like Black ListGrey list = country is cooperating; Black list = non-cooperative with severe risks
FATF mandate since inception includes terrorismTerrorism financing added only in 2001
FATF Membership = 40 countries40 members = 38 jurisdictions + 2 regional orgs

Practice MCQs

1. FATF was established during which summit?

a. G20 Summit
b. G7 Summit
c. ASEAN Summit
d. NAM Summit

Ans: B
FATF was established in 1989 during the G7 Summit in Paris.

2. FATF Plenary meets how many times per year?

a. Once
b. Twice
c. Thrice
d. Four times

Ans: C
FATF Plenary meets thrice a year — February, June, and October.

3. When did FATF expand its mandate to include Counter Proliferation Financing?

a. 1989
b. 2001
c. 2008
d. 2012

Ans: D
FATF expanded to CPF (WMD proliferation financing) in 2012.

4. Where is the FATF Secretariat located?

a. UN Headquarters, New York
b. IMF Headquarters, Washington D.C.
c. OECD Headquarters, Paris
d. World Bank, Washington D.C.

Ans: C
FATF Secretariat is housed at the OECD Headquarters in Paris.

5. Which two regional organizations are FATF members?

a. ASEAN and African Union
b. European Commission and Gulf Cooperation Council
c. SAARC and European Union
d. BRICS and SCO

Ans: B
FATF’s 40 members include 38 jurisdictions + European Commission and Gulf Cooperation Council.

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BRICS Indore Declaration: Agriculture Networks & UPSC Prelims Notes

Why in News?

BRICS member nations unanimously adopted the ‘Indore Declaration’ — a joint agricultural charter — at the 16th BRICS Agriculture Ministers’ Meeting held in Indore, Madhya Pradesh. The declaration aims to boost global farm cooperation among emerging economies.

Key Facts for UPSC Prelims

  • Meeting: 16th BRICS Agriculture Ministers’ Meeting
  • Declaration: Indore Declaration — a unanimous joint agricultural charter
  • India proposed the BRICS Urban Research and Knowledge Network, which was accepted by all members

Four Networks Established by the Indore Declaration

  1. Centres of Excellence on Agro-Ecology and Regenerative Agriculture
  2. BRICS Network on Digital Agriculture
  3. Global Forum on Farmers’ Rights in Seed Systems
  4. BRICS AgriN (Agro Input, Genetic Resources and Information Network)

Static/Exam Connect: BRICS — Origin and Expansion

  • The acronym “BRIC” was coined in 2001 by Goldman Sachs economist Jim O’Neill to highlight the growth potential of Brazil, Russia, India, and China.
  • South Africa joined in 2010, making it BRICS.
  • BRICS is an informal intergovernmental grouping — not a formal international organization or treaty-based body.
  • BRICS represents the Global South and challenges Western dominance in global governance.
  • India’s BRICS Presidency: India assumed the BRICS presidency on 1 January 2026, succeeding Brazil.

BRICS+ Expansion (Current 11 Full Members)

CategoryMembers
Founding Members (BRICS)Brazil, Russia, India, China, South Africa
New Members (joined 2024)Egypt, Ethiopia, Iran, UAE, Saudi Arabia, Indonesia

Quick Revision Table

FactDetail
Declaration NameIndore Declaration
Meeting16th BRICS Agriculture Ministers’ Meeting
Networks established4 (+ India’s Urban Research Network accepted)
BRIC coined byJim O’Neill (Goldman Sachs), 2001
South Africa joined BRICS2010
Total BRICS Members11 (BRICS+)
India’s BRICS PresidencyFrom January 1, 2026
Nature of groupingInformal, intergovernmental

Trap / Confusing Points

Common ConfusionCorrect Fact
BRICS was formed with 5 members from the startStarted as BRIC (4 members); South Africa joined in 2010 making it BRICS
BRICS is a formal international organizationNo — it is an informal grouping with no permanent secretariat or binding treaties
Jim O’Neill coined the term “BRICS”He coined “BRIC” (4 countries) in 2001; “BRICS” came after SA joined in 2010
India currently holds no BRICS roleIndia holds BRICS presidency (from Jan 1, 2026)
New BRICS members joined in 20236 new members were invited in 2023 but formally joined in 2024

Practice MCQs

1. The ‘Indore Declaration’ is related to which sector of cooperation among BRICS nations?

a. Defence and Security
b. Digital Currency
c. Agriculture
d. Climate Finance

Ans: C
The Indore Declaration is a joint agricultural charter adopted at the 16th BRICS Agriculture Ministers’ Meeting in Indore, MP.

2. The acronym “BRIC” was coined in 2001 by:

a. World Bank
b. Jim O’Neill of Goldman Sachs
c. UN Development Programme
d. IMF

Ans: B
Jim O’Neill, an economist at Goldman Sachs, coined “BRIC” in 2001 to identify high-growth emerging economies.

3. Which of the following is NOT a founding member of BRICS?

a. Russia
b. Brazil
c. Egypt
d. South Africa

Ans: C
Egypt joined as a new member in 2024. The founding members are Brazil, Russia, India, China, and South Africa.

4. India assumed the BRICS Presidency on:

a. January 1, 2025
b. January 1, 2026
c. January 1, 2024
d. March 1, 2026

Ans: B
India assumed BRICS Presidency on January 1, 2026, succeeding Brazil.

5. How many new members joined BRICS in the 2024 expansion?

a. 4
b. 5
c. 6
d. 7

Ans: C
6 new members joined: Egypt, Ethiopia, Iran, UAE, Saudi Arabia, and Indonesia — making total BRICS membership 11.


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BRICS Disaster Risk Reduction Meeting in Puri-Explained

Why in News?

The BRICS Technical Meeting of the Disaster Risk Reduction Working Group commenced in Puri, Odisha, on June 3, 2026, under India’s BRICS Presidency 2026.

The meeting is important for exams because it connects three areas:

  • International relations: BRICS and Global South cooperation
  • Disaster management: disaster risk reduction and climate resilience
  • Governance: Odisha’s disaster management model

Key Facts for Prelims

PointExam-Relevant Fact
EventBRICS Disaster Risk Reduction Working Group technical meeting
PlacePuri, Odisha
DatesJune 3-5, 2026
Hosted underIndia’s BRICS Presidency 2026
Main focusDisaster risk reduction, climate resilience, early warning, resilient infrastructure
Why Odisha?Known for cyclone preparedness, early warning systems, evacuation planning and disaster response
Static linkSendai Framework for Disaster Risk Reduction 2015-2030

Why the Puri Meeting Matters?

The Puri meeting highlights disaster risk reduction as a major area of BRICS cooperation. This is important because climate change is increasing the frequency and intensity of extreme weather events such as cyclones, floods, heatwaves and droughts.

For India, the meeting is significant because:

  • India is holding the BRICS Chairship in 2026.
  • India’s BRICS theme is Building for Resilience, Innovation, Cooperation and Sustainability.
  • Disaster risk reduction fits directly under the Resilience pillar.
  • Odisha’s cyclone management model is being showcased internationally.

Odisha Model of Disaster Management

Odisha is frequently cited as an important case study in disaster preparedness because the state has improved its ability to manage cyclones and other natural disasters.

Important features:

  • Multi-hazard early warning systems
  • Cyclone shelters and evacuation planning
  • Community-level preparedness
  • Coordination between state agencies and local administration
  • Use of technology for alerts and response
  • Focus on reducing loss of life during cyclones

What is BRICS?

BRICS is an intergovernmental grouping of major emerging economies. It began as BRIC with Brazil, Russia, India and China. South Africa joined later, making it BRICS.

For exams, BRICS is important because it represents:

  • Voice of the Global South
  • Reform of global governance institutions
  • South-South cooperation
  • Alternative development finance through the New Development Bank
  • Cooperation in economy, technology, health, agriculture, climate, disaster management and security

BRICS Membership

The original BRICS members are Brazil, Russia, India, China and South Africa.

Recent expansion added Egypt, Ethiopia, Iran, United Arab Emirates and Indonesia.

Institutional Pillars of BRICS

New Development Bank

The New Development Bank was established by BRICS countries. The agreement for establishing the bank was signed during the 6th BRICS Summit in Fortaleza, Brazil, in 2014.

  • Headquarters: Shanghai, China
  • Focus: Infrastructure and sustainable development projects
  • Earlier known as: BRICS Development Bank
  • Membership: Open beyond BRICS countries
  • Exam importance: Alternative development finance institution linked to Global South

Contingent Reserve Arrangement

The BRICS Contingent Reserve Arrangement was also signed in Fortaleza, Brazil, in 2014.

Purpose:

  • Provides financial support during short-term balance of payments pressure
  • Helps member countries face global liquidity shocks
  • Acts as a financial safety mechanism

India and BRICS 2026

India is holding the BRICS Chairship in 2026 and will host the 18th BRICS Summit in 2026.

India’s BRICS 2026 theme is Building for Resilience, Innovation, Cooperation and Sustainability.

India’s focus areas include disaster risk reduction, agriculture and food security, health cooperation, energy security, supply chain resilience, innovation and emerging technologies, and reform of global governance institutions.

Interconnected Static Subject: Sendai Framework

The Sendai Framework for Disaster Risk Reduction 2015-2030 is a global framework adopted in Sendai, Japan, in 2015.

Its four priorities are:

  • Understanding disaster risk
  • Strengthening disaster risk governance
  • Investing in disaster risk reduction for resilience
  • Enhancing disaster preparedness for effective response and Build Back Better in recovery

Quick Revision Table

TermMeaningExam Importance
BRICSGrouping of major emerging economiesGlobal South, multilateral reform
Puri MeetingBRICS DRR Working Group technical meetingDisaster management current affairs
DRRDisaster Risk ReductionReducing disaster risks before disasters occur
Odisha ModelState-level disaster preparedness modelCyclone management case study
Sendai FrameworkGlobal DRR framework 2015-2030Four priorities, disaster governance
NDBBRICS development finance institutionInfrastructure and sustainable development
CRABRICS financial safety mechanismBalance of payments and liquidity support
India BRICS 2026India’s BRICS ChairshipResilience, innovation, cooperation, sustainability

Trap / Confusing Points

Confusing AreaCorrect Understanding
BRICS vs G7BRICS represents emerging economies; G7 represents advanced industrial economies
Disaster response vs DRRResponse happens after disaster; DRR focuses on reducing risk before disaster
NDB vs CRANDB funds development projects; CRA provides liquidity support
BRICS vs BIMSTECBRICS is a global/emerging economy grouping; BIMSTEC is a Bay of Bengal regional grouping
Sendai Framework vs Paris AgreementSendai deals with disaster risk reduction; Paris Agreement deals with climate change
Odisha ModelKnown mainly for disaster preparedness, early warning and cyclone response
Saudi Arabia in BRICSMembership/status should be checked with latest official/exam source due to differing reporting

Practice MCQs

1. The BRICS Disaster Risk Reduction Working Group technical meeting in June 2026 was held in which Indian city?

A. Bhubaneswar
B. Puri
C. Visakhapatnam
D. New Delhi

Answer: B. Puri

Explanation: The BRICS Disaster Risk Reduction Working Group technical meeting commenced in Puri, Odisha, on June 3, 2026.

2. The New Development Bank was established by BRICS countries through an agreement signed at which summit?

A. Durban Summit, 2013
B. Fortaleza Summit, 2014
C. Ufa Summit, 2015
D. Goa Summit, 2016

Answer: B. Fortaleza Summit, 2014

Explanation: The agreement establishing the New Development Bank was signed during the 6th BRICS Summit at Fortaleza, Brazil, in 2014.

3. The Sendai Framework is primarily related to:

A. Climate finance
B. Disaster risk reduction
C. Nuclear disarmament
D. Biodiversity conservation

Answer: B. Disaster risk reduction

Explanation: The Sendai Framework for Disaster Risk Reduction 2015-2030 provides global priorities for reducing disaster risks and losses.

4. Which of the following best describes the BRICS Contingent Reserve Arrangement?

A. A global environmental treaty
B. A defence cooperation pact
C. A financial safety mechanism for liquidity and balance of payments pressure
D. A permanent BRICS Parliament

Answer: C. A financial safety mechanism for liquidity and balance of payments pressure

Explanation: CRA was created to help BRICS countries manage short-term liquidity and balance of payments pressures.

5. Which Indian state is being highlighted for its disaster management model in connection with the BRICS DRR meeting in Puri?

A. Gujarat
B. Odisha
C. Kerala
D. Maharashtra

Answer: B. Odisha

Explanation: Odisha’s disaster management model, especially cyclone preparedness and early warning, is being showcased during the BRICS DRR meeting.

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Why is Abraham Accords 2026 Significant?

Why in News?

US President Donald Trump stated that countries such as Saudi Arabia, Qatar, Egypt, Turkiye, and Pakistan should normalize relations with Israel under an expanded Abraham Accords 2026 framework.

  • The proposal was linked to broader negotiations aimed at ending the Iran-Israel conflict in West Asia
Abraham accords

The statement has renewed global attention on the Abraham Accords, which were originally brokered by the United States in 2020 to establish diplomatic and economic relations between Israel and Arab nations. The accords reshaped Middle East diplomacy and altered long-standing regional alignments.

Key Facts About Abraham Accords 2026

AspectDetails
Agreement NameAbraham Accords
Brokered ByUnited States
Year of Original Signing2020
Initial SignatoriesIsrael, UAE, Bahrain
Later SignatoriesSudan, Morocco
Current ContextLinked by Trump to Iran peace negotiations
Core ObjectiveIsrael normalization with Arab nations
Strategic ImpactShift in West Asian geopolitical alliances

Formation of I2U2 Group

The Abraham Accords also contributed to the emergence of the I2U2 Group, comprising India, Israel, UAE, and the USA.

Practice MCQs

Q1. The Abraham Accords were originally signed in:
a) 2018
b) 2019
c) 2020
d) 2022

Answer: (c) — The agreements were brokered by the United States in 2020.

Q2. Which among the following was NOT an initial signatory to the Abraham Accords?
a) Israel
b) UAE
c) Bahrain
d) Morocco

Answer: (d) — Morocco joined later after the initial agreements.

Q3. The I2U2 Group includes which of the following countries?
a) India, Israel, UAE, USA
b) India, Iran, UAE, USA
c) India, Israel, UK, USA
d) India, Israel, UAE, UK

Answer: (a) — I2U2 consists of India, Israel, UAE, and the USA.

Q4. The Abraham Accords mainly relate to:
a) Nuclear disarmament
b) Climate financing
c) Israel normalization with Arab nations
d) Global trade reforms

Answer: (c) — The accords aim at normalizing relations between Israel and Arab countries.

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Why is the Lipulekh Pass Dispute 2026 in News?

The Lipulekh Pass Dispute has come into focus after Nepal objected to India and China planning to conduct the Kailash Mansarovar Yatra through the Lipulekh Pass. The Nepal government, led by Balen Shah, raised concerns over sovereignty and territorial claims.

What is the Lipulekh Pass Dispute?

The Lipulekh Pass Dispute revolves around differing interpretations of the India-Nepal border near the tri-junction area.

Key Points of the Dispute

  • Nepal claims that the Lipulekh Pass falls within its territory based on historical maps and river origins.
  • India maintains that the area has traditionally been under its administrative control.
  • The dispute intensified after India inaugurated a road to Lipulekh in 2020 to facilitate the Kailash Mansarovar Yatra.
  • The issue also involves China, as the pass connects to Tibet (China-controlled region).

About Lipulekh Pass

Geographical Features

  • Located in Pithoragarh district, Uttarakhand.
  • Situated at an altitude of approximately 5,334 meters (17,500 feet).
  • Lies at the tri-junction of India, Nepal, and Tibet (China).
  • Part of the Kumaon Himalayas.

River Association

  • Associated with the Kali River (Mahakali/Sharda).
  • The river forms a major part of the India-Nepal boundary.
  • The origin of this river is central to the boundary dispute.

Strategic and Economic Importance

  • Serves as a key route for the Kailash Mansarovar Yatra.
  • Connects India to Taklakot (Purang) in Tibet.
  • Holds strategic military importance due to proximity to China.
  • Facilitates trade and pilgrimage routes.

Historical Background: Treaty of Sugauli

The roots of the Lipulekh Pass Dispute lie in the Treaty of Sugauli.

  • Signed on 2 December 1815.
  • Agreement between the British East India Company and the Kingdom of Nepal.
  • Ended the Anglo-Nepalese War (1814–1816).
  • Defined the Kali River as the western boundary of Nepal.

Core Issue

The dispute arises due to different interpretations of the Kali River’s origin:

  • Nepal claims the river originates from Limpiyadhura, placing Lipulekh within Nepal.
  • India considers the origin near Kalapani, placing Lipulekh within Indian territory.

Practice Questions

  1. Which river forms the basis of the India-Nepal boundary dispute in the Lipulekh region?
    a) Ganga
    b) Brahmaputra
    c) Kali River
    d) Indus
  2. The Treaty of Sugauli (1815) was signed between Nepal and which entity?
    a) British Crown
    b) East India Company
    c) Mughal Empire
    d) China
  3. Lipulekh Pass is located in which Indian state?
    a) Himachal Pradesh
    b) Uttarakhand
    c) Sikkim
    d) Arunachal Pradesh
  4. The Lipulekh Pass connects India to which Tibetan town?
    a) Lhasa
    b) Shigatse
    c) Taklakot
    d) Gyantse

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3rd India-Nordic Summit 2026 to be held in Norway

Why in News?

The 3rd India-Nordic Summit will be held in Oslo, Norway, on 15–16 May 2026. It aims to strengthen cooperation between India and Nordic nations in emerging global sectors such as sustainability, climate change, and Arctic governance

3rd india nordic summit

What is the India-Nordic Summit?

  • A high-level diplomatic platform between India and Nordic countries
  • Focuses on economic, technological, and environmental cooperation
  • Previous summits:
    • 1st Summit – 2018 (Stockholm)
    • 2nd Summit – 2022 (Virtual)

Nordic Countries

  • Nordic countries refer to a region in Northern Europe and the North Atlantic, comprising five sovereign states—Denmark, Finland, Iceland, Norway, and Sweden—along with the autonomous territories of Greenland, the Faroe Islands, and Åland.
  • They share common history, cultural values, close political cooperation, and a strong, tax-funded welfare model.

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India–China Resume SCO Engagement After Ladakh De-escalation

Why in News?

After a phase of tensions along the Ladakh border, India and China have resumed bilateral engagement under the Shanghai Cooperation Organisation (SCO)

shanghai cooperation organisation

Shanghai Cooperation Organisation (SCO)

The Shanghai Cooperation Organisation (SCO) is a major regional organization focusing on security, economic cooperation, and regional stability.

Basic Facts

  • Founded: June 15, 2001 (Shanghai, China)
  • Headquarters: Beijing, China
  • Official Languages: Russian and Chinese

Evolution and Membership

  • Originated from Shanghai Five (1996):
    • China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan
  • Current Members (2026): 10 countries
    • Founding members +
    • India & Pakistan (2017)
    • Iran (2023)
    • Belarus (2024)

Organizational Structure

  • Council of Heads of State
    • Highest decision-making body
  • Regional Anti-Terrorist Structure (RATS)
    • Located in Tashkent
    • Focuses on counter-terrorism and security cooperation

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UK Pauses Chagos Islands Transfer to Mauritius

Why in News?

United Kingdom has paused its plan to transfer sovereignty of the Chagos Islands to Mauritius due to concerns raised by the United States.

chagos islands

Historical Background

  • 1965: UK separated Chagos Islands from Mauritius before its independence
  • Created a new territory called British Indian Ocean Territory (BIOT)
  • 1968–1973: Around 2,000 Chagossians were forcibly displaced to Mauritius and Seychelles
  • Purpose: Establish a joint UK-US military base at Diego Garcia

In 2019, the International Court of Justice ruled:

  • Separation of Chagos Islands from Mauritius was illegal
  • UK should end its administration “as rapidly as possible”
  • UN General Assembly also supported Mauritius’ claim

UK had earlier agreed in principle to transfer sovereignty to Mauritius However, the plan is now paused due to lack of formal approval from the United States.

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Iran Threatens Closure of Bab al-Mandeb Strait

Why in News:

Iran has warned that its regional allies may block the Bab al-Mandeb Strait, escalating tensions in a crucial global maritime route. This comes amid disruptions already seen in the Strait of Hormuz, raising serious concerns about global trade and energy security.

bab al mandeb strait

Bab al-Mandeb Strait

The Bab al-Mandeb Strait, meaning “Gate of Tears” in Arabic, is a vital maritime chokepoint.

Connects:

  • Red Sea (northwest)
  • Gulf of Aden & Indian Ocean (southeast)

Bordering Countries:

  • Yemen (Arabian Peninsula – Northeast)
  • Djibouti & Eritrea (Africa – Southwest)

Strategic & Economic Importance

Global Trade Route

  • Acts as a key link between:
    • Mediterranean Sea → Suez Canal → Red Sea → Indian Ocean
  • Essential for trade between Europe, Asia, and Africa

Energy Security

  • Around 12% of global seaborne oil trade passes through
  • About 8% of global LNG shipments transit this route

Impact of Possible Closure

  • Ships may reroute via Cape of Good Hope (South Africa)
  • Leads to: Longer travel time, Higher fuel and logistics costs and worsen inflation and energy crisis globally

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PRAHAAR: India’s First National Counter-Terrorism Policy Released

Why in News?

  • The Ministry of Home Affairs has released PRAHAAR, India’s first comprehensive National Counter-Terrorism Policy and Strategy. It introduces a “zero tolerance” approach and shifts India toward a proactive, intelligence-led security framework.
prahaar anti terror policy

Key Highlights:

Policy Name:

  • PRAHAAR (National Counter-Terrorism Policy)

Released By:

  • Ministry of Home Affairs (MHA)

Core Approach:

  • Zero tolerance against terrorism
  • Shift from reactive → proactive strategy

Key Features:

  • Intelligence-led operations
  • Strengthening inter-agency coordination
  • Focus on:
    • Cyber-terrorism
    • Terror financing
    • Cross-border threats
https://www.newsonair.gov.in/govt-launches-new-national-counter-terrorism-policy-strategy-prahar-to-tackle-evolving-terror-threats-with-proactive-approach/: PRAHAAR: India’s First National Counter-Terrorism Policy Released

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