Government e-Marketplace (GeM): Transforming Public Procurement in India

Why in News?

The Government e-Marketplace (GeM) has completed 10 years of its launch (9 August 2016–9 August 2026). Over the last decade, GeM has emerged as India's largest digital public procurement platform, enabling transparent, paperless and efficient procurement while supporting Digital India, Make in India, Aatmanirbhar Bharat, Vocal for Local and Ease of Doing Business.

Introduction

• The Government e-Marketplace (GeM) has revolutionized public procurement in India by replacing traditional, paper-based processes with a transparent, technology-driven digital platform. By digitizing the entire procurement lifecycle, GeM has significantly enhanced efficiency, transparency, accountability, and cost-effectiveness. 
• It has also promoted inclusive growth by providing dedicated opportunities for Micro and Small Enterprises (MSEs), startups, women entrepreneurs, SC/ST enterprises, Self-Help Groups (SHGs), and local manufacturers. Today, GeM is a key pillar of India's Digital Procurement Ecosystem, supporting flagship initiatives such as Digital India, Make in India, Aatmanirbhar Bharat, Vocal for Local, and Ease of Doing Business.

Public Procurement in the Digital Age

• Public procurement is an essential function of government, involving the purchase of goods and services worth thousands of crores every year.
• Governments procure everything from medical equipment and classroom furniture to transport infrastructure and digital solutions.
• Traditionally, procurement relied on paperwork, multiple approvals, and lengthy tendering procedures, often resulting in delays and limited transparency. To modernize this system, the Government of India launched the Government e-Marketplace (GeM) on 9 August 2016.

Evolution from Conventional Procurement to a Digital Marketplace

• GeM was established as a unified end-to-end digital procurement platform that enables government organizations to purchase goods and services through a paperless, cashless, and contactless ecosystem.
• The platform was designed after studying global best practices from countries such as the United States and South Korea. 
• It simplifies and standardizes procurement by integrating every stage from seller registration and product listing to bidding, contract award, order fulfillment, and payment.
• Government buyers using GeM include:
• Central Ministries and Departments
• State Governments
• Public Sector Undertakings (PSUs)
• Autonomous Bodies
• Local Bodies
• Panchayats
• Cooperatives

This digital transformation has improved transparency, accountability, competition, and ease of doing business.

Building a Transparent Procurement Ecosystem

• Transparency is the foundation of GeM's procurement framework.
• The platform enables procurement through multiple modes such as:
• Direct Purchase,Product Comparison,Electronic Bidding,Reverse Auction Digital records, automated workflows, and real-time monitoring minimize discretionary decision-making while ensuring accountability.
• GeM also provides several data-driven tools that help buyers make informed procurement decisions, including:
• GeM Availability Report
• Past Transaction Summary
• Last Purchase Price
• Price Trend Analysis
• Departmental Procurement History

These features improve purchasing efficiency and promote value for money.

Integration with National Procurement Systems

GeM is increasingly becoming the backbone of India's integrated procurement ecosystem through strategic digital integration.

Major integrations include:

• Central Public Procurement Portal (CPPP)
• Indian Railway Electronic Procurement System (IREPS)
• Defence Public Procurement Portal (DPPP)

These integrations create a unified procurement framework across various government organizations.

GeM by the Numbers (As on 6 August 2026)

GeM has achieved remarkable scale since its launch.

Key Statistics

• More than 1.37 lakh government buyer organizations
• Nearly 25 lakh sellers and service providers
• Cumulative procurement exceeding ₹20 lakh crore
• More than 10,660 product categories
• Over 350 service categories

The platform offers products ranging from medical equipment, computers, furniture, handicrafts, and fire safety equipment to services such as transport, catering, vehicle hiring, and manpower services.

Defence Procurement through GeM

GeM has emerged as a significant procurement platform for India's defence sector.

As of 6 August 2026:

• The Department of Military Affairs recorded cumulative procurement worth ₹1.35 lakh crore.
• Defence procurement accounted for 14.93% of GeM's cumulative Gross Merchandise Value (GMV).

Policy Reforms and Platform Innovations

GeM continues to evolve through policy reforms and technological upgrades.

Recent reforms include:

• Introduction of Rate Contracts for recurring purchases.
• Removal of Caution Money requirements for sellers.
• Integrated payment systems.
• Online contract generation.

These reforms have simplified procurement while improving ease of doing business.

Strategic Partnerships Strengthening GeM

GeM has established partnerships with government institutions, financial organizations, industry bodies, and international agencies.

Innovation

• Partnership with IN-SPACe (April 2025) for procurement related to space technology.
• Collaboration with the Drone Federation India (DFI) for drone procurement.

Finance

• Through the GeMSahay initiative, GeM partnered with Union Bank of India to provide collateral-free working capital loans for registered sellers.

GeMSahay

• GeMSahay is a dedicated mobile application that enables eligible proprietorship sellers to obtain instant, paperless, collateral-free working capital loans without requiring buyer approval, thereby improving order execution.

Capacity Building

Collaborations with:

• Arun Jaitley National Institute of Financial Management (AJNIFM)
• CareEdge Ratings
• National Centre for Good Governance (NCGG)
• Indian Institute of Public Administration (IIPA)

These partnerships promote research, training, policy development, and knowledge sharing in public procurement.

Compliance

• Integration with the Employees' Provident Fund Organisation (EPFO) enhances transparency and regulatory compliance in manpower outsourcing services.

Inclusion

• GeM's partnership with UN Women supports women-led enterprises through the Womaniya Initiative, encouraging gender-responsive procurement.

GeM Suvidha Kendras

In June 2026, GeM partnered with CSC e-Governance Services India Limited (CSC-SPV) to establish 50 GeM Suvidha Kendras on a pilot basis across selected States and Union Territories.

These centers provide:

• Seller awareness, Registration support, Vendor assessment, Catalogue creation, Capacity building, Local handholding, Grievance redressal.

The initiative particularly supports:

• MSEs, Women entrepreneurs, SC/ST entrepreneurs, Startups, Artisans, Weavers, SHGs, Local manufacturers.

Inclusive Growth through GeM (2025–26)

GeM has significantly expanded market access for underrepresented businesses.

Micro and Small Enterprises (MSEs)

• Over 11 lakh registered MSEs
• More than 51 lakh orders executed
• Procurement exceeding ₹2.36 lakh crore

Women-led Enterprises

• More than 2.1 lakh registered women-led MSEs
• Procurement worth over ₹28,000 crore

SC/ST Enterprises

• Procurement exceeded ₹6,000 crore
• Nearly 28% annual growth

Startups

• Procurement crossed ₹19,000 crore
• More than 36% annual growth

Major Inclusive Initiatives

SWAYATT

• Startups, Women & Youth Advantage through e-Transactions (SWAYATT) promotes inclusive public procurement by supporting startups, women entrepreneurs, SHGs, and MSEs.

Womaniya

• Womaniya provides a dedicated marketplace for products manufactured by women entrepreneurs and Women Self-Help Groups, expanding their access to government procurement.

SARAS Collection

• The SARAS Collection showcases products made by rural Self-Help Groups and connects them with Central and State Government buyers.

Startup Runway 2.0

• This initiative offers startups a dedicated marketplace to showcase innovative products and services to government buyers.

The Road Ahead

• As GeM enters its 11th year, the platform is evolving into a smarter and more integrated procurement ecosystem. 
• Greater use of Artificial Intelligence (AI), data analytics, automation, and wider stakeholder participation will further enhance transparency, efficiency, and governance.By connecting government demand with local enterprises, GeM continues to strengthen Vocal for Local, Make in India, Aatmanirbhar Bharat, and inclusive economic development.

Conclusion

• The Government e-Marketplace has transformed India's public procurement landscape by creating a transparent, technology-driven, and inclusive digital marketplace. 
• Through continuous innovation, strategic partnerships, and policy reforms, GeM has not only streamlined procurement but also empowered millions of businesses, particularly MSEs, startups, women entrepreneurs, and socially disadvantaged enterprises. 
• As India advances toward a digitally empowered and self-reliant economy, GeM will remain a cornerstone of efficient governance and sustainable economic growth.
  

Government e-Marketplace (GeM) FAQs

Sangeet Natak Akademi Fellowship and Awards 2024–2025: President to Honour 115 Performing Artists

Why in News?

The President of India will confer the Sangeet Natak Akademi Fellowships (Akademi Ratna) and Sangeet Natak Akademi Awards (Akademi Puraskar) for the years 2024 and 2025 on 13 August 2026 at Vigyan Bhawan, New Delhi.

Important Point

• A total of 115 artists have been selected for the honours, representing different States and Union Territories and a wide spectrum of India’s performing arts traditions.
• The ceremony will be attended by Gajendra Singh Shekhawat, Union Minister for Culture and Tourism, Rao Inderjit Singh, Minister of State for Culture, senior officials of the Ministry of Culture and the Chairman of the Sangeet Natak Akademi.

What is the Sangeet Natak Akademi?

• The Sangeet Natak Akademi is India’s national academy for music, dance and drama.
• It plays an important role in promoting, preserving and documenting the country’s rich performing arts traditions.
• The Sangeet Natak Akademi Awards have been conferred since 1952. They recognise sustained and outstanding contributions to India’s performing arts.

The honours cover diverse traditions, including:

• Indian classical music
• Classical dance
• Theatre
• Folk and tribal arts
• Puppetry and mask-making
• Traditional musical instrument making
• Allied theatre arts
• Art criticism and scholarship
• Contributions to performing arts overseas

Akademi Fellowship – Akademi Ratna

The Sangeet Natak Akademi Fellowship, popularly known as Akademi Ratna, is the highest honour of the Akademi. For the 2024–2025 honours, 7 eminent personalities have been selected as Follows:

1. Ramlal Bareth
2. A. V. Anand
3. Rita Ganguly
4. Puru Dadheech
5. Chittaranjan Jyotishi
6. Pasumarthi Rattaiah Sarma
7. Sudharani Raghupathy

The Fellowship carries a purse of ₹3 lakh, along with a Tamrapatra and Angavastram.

Sangeet Natak Akademi Award – Akademi Puraskar

The Akademi Puraskar recognises outstanding contribution to specific fields of performing arts.

The award carries:

• ₹1 lakh purse
• Tamrapatra
• Angavastram

The 2024 and 2025 awardees represent a broad range of artistic traditions from across India.

Sangeet Natak Akademi Awards 2024

1. Music

The 2024 Music category includes artists from Hindustani, Carnatic and other major musical traditions.

2. Dance

The awardees represent almost the entire spectrum of India’s major classical dance traditions.

3. Theatre

Theatre awardees include practitioners of direction, acting, lighting and traditional theatre.

4. Folk, Tribal, Puppetry, Mask & Instrument Making

This category highlights India’s diverse community-based cultural traditions.

Important awardees include:

• Dursheti Ramaiah – Folk Music, Telangana
• K. Murugan – Folk Dance, Puducherry
• S. C. Sharma – Folk & Tribal Music, Karnataka
• Atamjeet Singh – Nautanki, Uttar Pradesh
• Mahendra Ram – Folk Music, Bihar
• Butan Devi and Somari Devi – Folk Dance, Jharkhand
• Ranajit Kumar Nag – Sambalpuri Folk Dance, Odisha
• Hawa Singh – Folk Music, Haryana
• Veswuzo Phesao – Folk Music & Dance, Nagaland
• Gulabi Sapera – Kalbeliya Folk Dance, Rajasthan
• Lourembam Bedabati – Folk Music, Manipur
• Subhash Narayan Nakashe – Folk Dance, Maharashtra
• Kishorbhai Somabhai Mistry – Rudra Veena Instrument Making

5. Overall Contribution and Other Areas

The 2024 honours also recognise broader contributions to performing arts:

• T. S. Sathyavathi – Overall Contribution in Music
• Voleti Rangamani – Overall Contribution in Dance
• Shubhada Manohar Varadkar – Scholarship in Performing Arts – Dance
• Tapati Chowdhurie – Art Critique – Performing Arts
• Sunanda Nair – Overseas – Dance (Mohiniattam)

Sangeet Natak Akademi Awards 2025

1. Music

The 2025 Music awardees include prominent practitioners of Dhrupad, Hindustani and Carnatic music.

2. Dance

The 2025 Dance category covers Bharatanatyam, Kathak, Kathakali, Manipuri, Sattriya, Mohiniattam, Chhau and other traditions.

Major awardees include:

• Roja Kannan – Bharatanatyam
• Krishna Mohan Mishra Maharaj, Vaswati Misra and Ram Mohan Maharaj – Kathak
• Kalamandalam Krishnakumar – Kathakali
• Irengbam Nalini Devi – Manipuri
• Seetha Nagajothy and P. Nagajothy – Manipuri
• Mallika Kandali – Sattriya
• Girija Chandran – Mohiniattam
• Pagulu Jena – Chhau, Mayurbhanj
• Kaniyal Hariprasad – Music for Dance, Bharatanatyam
• Bhaskar Jyoti Ojah – Music for Dance, Sattriya
• S. Kumar – Bhagavatamela

3. Theatre

The 2025 Theatre category recognises direction, acting, music for theatre and traditional theatre forms.

4. Folk, Tribal, Puppet, Mask & Instrument Making

The 2025 awardees reflect the geographical and cultural diversity of India.

Notable awardees include:

• Anup Ranjan Pandey – Folk Music, Chhattisgarh
• Bheru Singh Chouhan – Nirguni Folk Music, Madhya Pradesh
• Surjya Kumar Debbarma – Folk Dance, Tripura
• Joginder Singh Habbi – Folk Dance, Himachal Pradesh
• Romalo Ram – Folk Music & Dance, Jammu & Kashmir
• Harmanpreet Singh – Folk Dance, Punjab
• Ali Mohammad – Folk Music, Ladakh
• Domin Karbak – Folk Dance, Arunachal Pradesh
• K. Rosiama – Folk Dance, Mizoram
• Rani Maring – Instrument Making
• Sushanta Kumar – Chhau Mask Making
• Mangla Prasad Sharma – Instrument Making

5. Overall Contribution and Other Areas

The 2025 awards also recognise wider contributions to performing arts:

• Kunal – Overall Contribution in Theatre
• Maneesha Sathe – Overall Contribution in Dance – Kathak
• Rakesh Sinha – Overall Contribution – Art Photography
• Manjari Sinha – Art Critique – Performing Arts
• T. S. Nandakumar – Overseas – Music (Mridangam)

Why is this Award Important?

The Sangeet Natak Akademi Awards are significant because they recognise not only mainstream classical traditions but also India’s folk, tribal, traditional and community-based performing arts.

The awards help:

1. Preserve intangible cultural heritage by recognising traditional practitioners.
2. Promote Indian classical arts such as Hindustani and Carnatic music and classical dance.
3. Support folk and tribal traditions that are often transmitted through generations.
4. Encourage younger generations to engage with traditional performing arts.
5. Recognise lifelong artistic contribution, rather than merely a single performance or achievement.
6. Strengthen cultural diversity and national integration by bringing artists from different regions and traditions into a common national framework.

Prelims Facts to Remember

• Sangeet Natak Akademi Awards: Conferred since 1952
• Akademi Ratna: Sangeet Natak Akademi Fellowship
• Fellowship purse: ₹3 lakh
• Akademi Award purse: ₹1 lakh
• Award components: Tamrapatra and Angavastram
• Major areas: Music, Dance, Theatre, Folk & Tribal Arts and allied performing arts
• 2024–25 honours: 115 artists
• Venue: Vigyan Bhawan, New Delhi
• Award ceremony: 13 August 2026

Challenge

India possesses an enormous diversity of performing arts, but many traditional forms face challenges such as:

• Declining transmission of traditional knowledge
• Limited financial opportunities for artists
• Commercialisation and homogenisation of cultural forms
• Declining participation of younger generations
• Lack of systematic documentation of oral traditions
• Regional and community-specific art forms receiving limited visibility

Therefore, awards such as the Sangeet Natak Akademi honours are important, but they need to be complemented by institutional support, documentation, digital preservation, cultural education and sustainable livelihoods for artists.

FAQs

SC/ST (Prevention of Atrocities) Act, 1989: Recent Reform Proposals for Strengthening Protection, Relief and Rehabilitation

Why in News?

• The Union Government is considering significant reforms to strengthen the implementation of the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989. 
• An internal Task Force constituted by the Ministry of Social Justice and Empowerment has recommended amendments to the SC/ST (Prevention of Atrocities) Rules, while the National Commission for Scheduled Tribes (NCST) has separately proposed amendments to the parent Act.
• The recommendations seek to improve victim compensation, rehabilitation, counselling, speedy investigation, and protection of tribal livelihoods.

Background(Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989)

• The Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989 was enacted to prevent caste-based atrocities against members of the Scheduled Castes (SCs) and Scheduled Tribes (STs). 
• It recognizes that these communities have historically faced violence, discrimination, social exclusion, dispossession from land, and denial of dignity because of their social identity. 
• Unlike the general criminal law, the Act provides a comprehensive legal framework that combines criminal prosecution with victim protection, rehabilitation, and preventive measures.
• The Act came into force on 30 January 1990 and has since been strengthened through important amendments in 2015 and 2018 to make its provisions more effective and victim-centric.

Constitutional Basis

The Act derives its strength from the constitutional vision of equality, dignity, and social justice.

• Article 14 guarantees equality before the law.
• Article 15 prohibits discrimination on the grounds of caste.
• Article 17 abolishes untouchability and forbids its practice in any form.
• Article 21 guarantees the right to life with dignity.
• Article 46 directs the State to promote the educational and economic interests of SCs and STs and protect them from exploitation.
• Articles 338 and 338A establish the National Commissions for Scheduled Castes and Scheduled Tribes respectively.

Objectives of the Act

• The Act aims to prevent atrocities against SCs and STs, provide speedy justice through special judicial mechanisms, ensure adequate relief and rehabilitation to victims, punish public servants for negligence in implementing the law, and create a deterrent against caste-based violence and discrimination. 
• It seeks not merely to punish offenders but also to restore the dignity and security of victims.

Salient Features of the Act

• The Act identifies a wide range of offences as atrocities when committed against members of Scheduled Castes and Scheduled Tribes because of their caste or tribal identity. 
• These offences include physical violence, humiliation, social boycott, dispossession from land, denial of access to public places, destruction of property, and other acts affecting dignity and livelihood.To ensure effective implementation, the Act provides for the establishment of Special Courts and Exclusive Special Courts for speedy trial of offences. 
• It mandates the appointment of Special Public Prosecutors to conduct cases and provides for relief, rehabilitation, compensation, witness protection, and preventive measures by State Governments and district administrations. 
• Public servants who wilfully neglect their duties under the Act are also liable for punishment.

Major Amendments

2015 Amendment

• The 2015 amendment substantially expanded the list of offences under the Act and strengthened the rights of victims. 
• It introduced provisions for witness protection, victim rehabilitation, accountability of public servants for wilful neglect of duty, and the establishment of Exclusive Special Courts to ensure faster disposal of cases.

2018 Amendment

• The 2018 amendment was enacted following nationwide protests after the Supreme Court's judgment in Subhash Kashinath Mahajan v. State of Maharashtra (2018), which had introduced procedural safeguards before arrest under the Act.
• The amendment restored the original legislative intent by providing that no preliminary inquiry is required before registration of an FIR, no prior approval is necessary for arrest of an accused public servant or private individual, and anticipatory bail is generally not available in offences under the Act, subject to judicial interpretation.

Recent Recommendations of the Central Task Force

• The Task Force headed by the Secretary, Ministry of Social Justice and Empowerment, has recommended several amendments to the SC/ST (Prevention of Atrocities) Rules to strengthen victim support and improve implementation.
• One of the most important recommendations is the revision of relief and rehabilitation amounts payable to victims and their dependants. 
• The existing compensation, which ranges from ₹85,000 to ₹8.25 lakh depending upon the nature of the offence and the degree of injury, was fixed in 2016. 
• The Task Force has proposed increasing these amounts to account for inflation.
• The Task Force has also recommended the establishment of Special Relief and Rehabilitation Cells in every State and Union Territory to ensure timely delivery of compensation, rehabilitation, legal assistance, and institutional support.
• Recognising the psychological impact of caste-based violence, the committee has proposed introducing professional counselling services not only for victims and their dependants but also, where appropriate, for accused persons. 
• This represents a shift towards a more comprehensive victim-support framework.To improve administrative efficiency, the Task Force has recommended that FIRs and charge sheets be forwarded to the concerned government authorities within 24 hours so that compensation and rehabilitation measures can begin without delay.

Recommendations of the National Commission for Scheduled Tribes (NCST)

• The NCST has separately suggested amendments to the parent Act with particular emphasis on protecting the rights and livelihoods of Scheduled Tribe communities.
• The Commission has recommended legal safeguards for tribal families who lose possession of their traditional lands and become involved in prolonged litigation. 
• Since land forms the basis of livelihood and cultural identity for many tribal communities, the Commission has emphasized that protection under the Act should extend beyond criminal prosecution to include livelihood security.
• The NCST has also proposed measures to prevent the misuse of counter-FIRs against victims who report atrocities. Such retaliatory cases often discourage victims from pursuing justice and weaken the effectiveness of the Act.

Parliamentary Standing Committee Observations

• The Parliamentary Standing Committee on Social Justice and Empowerment has highlighted several implementation challenges associated with the Act and related welfare schemes.
• The Committee expressed concern over the persistent delays in the disbursement of scholarships for SC students due to slow verification processes by States and Union Territories. It reiterated that timely financial assistance is essential for educational empowerment.
• It also recommended revising the ₹8 lakh annual family income ceiling under the Free Coaching Scheme for SC and OBC students so that the scheme reflects current economic realities.
• Another major concern raised by the Committee is the inadequate establishment of Special Police Stations dedicated to implementing the Protection of Civil Rights Act, 1955 and the SC/ST (Prevention of Atrocities) Act, 1989. 
• The Committee noted that only a limited number of States have established such police stations despite the Act being in force for over three decades. 
• It urged the Government to approve additional budgetary support for strengthening institutional mechanisms.

Significance of the Proposed Reforms

• The proposed reforms mark an important shift towards a victim-centric justice system. Increasing compensation, providing psychological counselling, establishing rehabilitation cells, ensuring speedy communication of FIRs, and strengthening institutional support can significantly improve access to justice for victims of caste-based violence.
• The NCST's recommendations also broaden the scope of protection by recognising that social justice involves not only punishment of offenders but also protection of livelihoods, especially for tribal communities whose identity and survival are closely linked to land.
• Together, these measures reinforce the constitutional vision of social justice, substantive equality, dignity, and inclusive governance.

Challenges in Implementation

• Despite a strong legal framework, several challenges continue to affect the effectiveness of the Act. 
• These include delays in investigation and trial, low conviction rates, inadequate implementation of rehabilitation provisions, shortage of Exclusive Special Courts, delays in payment of compensation, weak witness protection, lack of awareness among beneficiaries, and under-reporting of offences due to fear of retaliation and social pressure.

Way Forward

• Strengthening the implementation of the SC/ST (Prevention of Atrocities) Act requires a comprehensive approach. 
• Compensation should be revised periodically and indexed to inflation. Exclusive Special Courts and dedicated Special Police Stations should be established across all States. Rehabilitation cells should function as single-window support centres providing legal, financial, psychological, and social assistance. 
• Police officers, prosecutors, and judicial officers should receive regular sensitisation training. 
• Digital monitoring systems should be developed to track FIRs, investigations, compensation, and rehabilitation in real time. 
• Stronger witness protection mechanisms and convergence with laws such as the Forest Rights Act, 2006 and the PESA Act, 1996 can further strengthen the protection of tribal communities.

Frequently Asked Questions (FAQs)

BRICS Nations Discuss Linking Payment Systems and CBDCs to Boost Cross-Border Payments

Why in News?

Members of the BRICS grouping are discussing the possibility of linking their respective fast payment systems and Central Bank Digital Currencies (CBDCs) to make cross-border payments faster, cheaper and more efficient.

Important Point

• Reserve Bank of India (RBI) Governor Sanjay Malhotra said that reducing the cost of cross-border payments is an important area of interest for BRICS countries.
• He added that several options, including CBDC connectivity and linkages between fast payment systems, remain under discussion.
• India is hosting the 2026 BRICS Summit, giving New Delhi an important platform to advance discussions on financial integration and alternative cross-border payment mechanisms.

What is the Proposal?

The discussions focus on exploring two major possibilities:

1. Linking Fast Payment Systems

• BRICS countries could explore interoperability between their domestic instant-payment platforms.
• India's Unified Payments Interface (UPI) is one of the world's major real-time payment systems and has already been linked with payment systems in several countries.
• Such interoperability could allow individuals and businesses to make cross-border payments more directly, potentially reducing dependence on traditional correspondent banking channels.

2. Linking Central Bank Digital Currencies

Another option under consideration is creating mechanisms through which the CBDCs of participating countries can interact with each other. CBDCs are digital forms of sovereign currency issued by central banks.

A connected CBDC ecosystem could potentially enable:

• Faster international settlements
• Lower transaction costs
• Greater transparency
• Reduced dependence on intermediaries
• More efficient trade payments
• Greater use of local currencies

However, the proposal remains at the discussion stage and does not represent a finalized BRICS payment system.

Why are Cross-Border Payments Important?

International payments can involve multiple intermediaries, currency conversions and settlement systems.

These processes can increase:

• Transaction costs
• Settlement time
• Foreign-exchange conversion costs
• Operational complexity

For emerging economies, cheaper and faster payment mechanisms can support trade, remittances, investment and financial inclusion. BRICS cooperation could therefore contribute to building alternative payment channels that complement existing global financial infrastructure.

India's Push for Rupee Internationalisation

The RBI Governor also stated that the central bank will continue efforts to internationalise the Indian rupee and encourage the use of local currencies in cross-border payments and trade.

Rupee internationalisation refers to increasing the use of the Indian rupee in:

• International trade
• Cross-border settlements
• Financial markets
• Investment transactions
• Invoicing and payment arrangements

Greater use of the rupee could reduce India's dependence on foreign currencies for certain international transactions and potentially lower currency-conversion risks.

BRICS and Alternative Payment Mechanisms

• BRICS has increasingly discussed ways to strengthen financial cooperation among member countries.
• The broader objective is not necessarily to create a single common currency but to develop more efficient mechanisms for cross-border payments and settlements.
• A common BRICS currency would require significant monetary, financial and institutional integration, whereas payment-system interoperability can be pursued through technical and regulatory cooperation.

What are the Challenges?

Despite the potential benefits, connecting national payment systems and CBDCs would involve several challenges.

1. Regulatory Differences: Each country has its own rules governing payments, capital flows, data protection and financial institutions.
2. Cybersecurity Risks: Greater connectivity between financial systems could increase the potential impact of cyberattacks.
3. Data and Privacy: Countries would need agreements regarding cross-border financial data, privacy and data localisation.
4. Exchange-Rate Risk: Transactions involving multiple currencies still require mechanisms to manage foreign-exchange fluctuations.
5. Technical Interoperability: Different countries may use different technological architectures and standards for their fast payment systems and CBDCs.
6. Geopolitical Considerations: BRICS includes economies with different strategic interests and financial systems. Building consensus on common payment infrastructure could therefore be complex.

Responsible Use of Artificial Intelligence in Banking

• The RBI Governor also highlighted the growing role of Artificial Intelligence (AI) in the banking sector.
• He argued that AI should be viewed as a capability that can be harnessed rather than merely as a risk to be controlled.
• Indian banks, according to the Governor, cannot remain passive observers of AI adoption. Banks should identify the AI models being used across their operations and establish board-approved AI governance frameworks.

AI can potentially improve:

• Fraud detection
• Credit assessment
• Customer service
• Risk management
• Cybersecurity
• Compliance
• Operational efficiency

However, uncontrolled use of AI can create risks related to cybersecurity, model errors, bias, data protection and governance. The RBI's approach therefore emphasises a balance between innovation and safety.

Significance for India

• The BRICS payment-system discussions could have wider implications for India's economic and strategic interests.
• First, stronger cross-border payment connectivity could support India's growing international trade.
• Second, greater use of the rupee could contribute to its internationalisation.
• Third, India's experience with UPI provides an opportunity to promote Indian payment technology internationally.
• Fourth, CBDC cooperation could strengthen India's position in the emerging global digital-finance ecosystem.
• Finally, India's leadership in BRICS 2026 provides an opportunity to shape discussions on the future architecture of international payments.

Conclusion

• The discussion on linking BRICS fast payment systems and CBDCs reflects the broader transformation of the global financial system.
• For India, the initiative is particularly significant because it aligns with three parallel objectives: internationalising the rupee, expanding digital payment connectivity and strengthening financial cooperation with emerging economies.
• However, technological interoperability must be accompanied by strong safeguards for cybersecurity, data protection, financial stability and regulatory coordination.
• As the RBI Governor emphasised in the context of AI, innovation and safety need not be opposing goals. The same principle will be crucial if BRICS moves from discussions on payment connectivity towards implementation.

FAQs

National Biodiversity Authority Releases ₹15.52 Crore ABS Proceeds from Mustard Genetic Resources

Why in News?

The National Biodiversity Authority (NBA) has released ₹15.52 crore as Access and Benefit Sharing (ABS) proceeds from M/s. Pioneer Overseas Corporation, which developed 10 commercial hybrid varieties of mustard (Brassica juncea) using India's biological resources.

Important Point

• The amount will be distributed among 26 State Biodiversity Boards (SBBs) and 3 Union Territory Biodiversity Councils (UTBCs).
• The distribution has been calculated according to the area under mustard cultivation in different States and Union Territories.
• The move is significant because it demonstrates how the commercial use of India's biological resources can generate financial benefits for biodiversity conservation and local-level institutions.

What is Mustard?

Mustard is an important oilseed crop grown mainly for its seeds, which are used to produce edible mustard oil. Its seeds are also used as a spice and in food products.

• Scientific name: Brassica juncea — Indian mustard 
• Family: Brassicaceae (Cruciferae) 
• Type: Mainly Rabi crop in India 
• Sowing: Generally October–November 
• Harvesting: Generally February–March 
• Major producing states: Rajasthan, Uttar Pradesh, Madhya Pradesh, Haryana, West Bengal and Gujarat 
• Major use: Edible oil, spice and animal feed/cake

What is Access and Benefit Sharing (ABS)?

Access and Benefit Sharing is the principle that benefits arising from the utilisation of biological resources and associated traditional knowledge should be shared fairly and equitably with the providers and custodians of those resources. In simple terms:

Biological Resource → Commercial Use → Economic Benefit → Sharing with Conservation Institutions/Communities

ABS seeks to ensure that commercialisation of biological resources does not benefit only the user or company, but also contributes to conservation and sustainable use of biodiversity.

What Happened in the Mustard Case?

M/s. Pioneer Overseas Corporation developed 10 mustard hybrid varieties.

• The company bred the varieties in-house.
• However, the parental lines were sourced from open markets and traders.
• It was therefore not possible to identify a particular farmer or community as the original source.
• The NBA constituted an Expert Committee to determine how the ABS proceeds should be distributed.
• The Authority approved the Committee's recommendations.
• The ABS amount is being distributed among SBBs and UTBCs in areas where the biological resource is cultivated.

The NBA obtained mustard cultivation-area data from ICAR–Indian Institute of Rapeseed-Mustard Research (ICAR-IIRMR), Bharatpur, Rajasthan, and used this data to calculate the State-wise shares.

State-wise Distribution

Rajasthan receives the largest share, accounting for nearly 42% of India's mustard cultivation, followed by Uttar Pradesh and Madhya Pradesh.

How Will the ABS Money Be Used?

The SBBs and UTBCs are required to utilise the funds for biodiversity-related activities under Section 32 of the Biological Diversity Act.

Major areas include:

1. Conservation of biodiversity
2. Preparation and updating of People’s Biodiversity Registers (PBRs)
3. In-situ conservation of biological resources
4. Ex-situ conservation
5. Restoration of degraded ecosystems
6. Strengthening Biodiversity Heritage Sites
7. Capacity building of Biodiversity Management Committees (BMCs)
8. Improving community livelihoods
9. Other activities linked to conservation and sustainable utilisation of biodiversity

Why is this Important?

• The mustard case is important because it addresses a practical challenge in ABS implementation: what happens when the original provider of a biological resource cannot be identified?
• Instead of allowing the commercial benefit to remain disconnected from conservation, the NBA has adopted a resource-location-based distribution mechanism.
• Thus, when resources are accessed through intermediaries such as traders or markets, the ABS proceeds can be channelled towards biodiversity institutions in areas where the resource is cultivated.

This creates a link between: Commercial utilisation → ABS revenue → State/UT biodiversity institutions → Conservation → Community livelihoods

India’s ABS Framework

The Biological Diversity Act, 2002 provides the legal framework for regulating access to India's biological resources and ensuring equitable sharing of benefits arising from their utilisation.

The National Biodiversity Authority is a statutory body functioning under the Ministry of Environment, Forest and Climate Change (MoEFCC).

The framework also involves:

• National Biodiversity Authority (NBA)
• State Biodiversity Boards (SBBs)
• Biodiversity Management Committees (BMCs)
• People’s Biodiversity Registers (PBRs)

Link with the Nagoya Protocol

• India's ABS framework is aligned with the Nagoya Protocol on Access and Benefit-sharing, which is a supplementary agreement to the Convention on Biological Diversity (CBD).
• The central idea is fair and equitable sharing of benefits arising from the utilisation of genetic resources.
• The present release also supports the objectives of Target 13 of the Kunming-Montreal Global Biodiversity Framework, which focuses on ensuring fair and equitable sharing of benefits arising from the utilisation of genetic resources and associated traditional knowledge.

National Biodiversity Authority: Key Facts

The National Biodiversity Authority (NBA) was established under the Biological Diversity Act, 2002.

Key Functions

• Regulates access to India's biological resources.
• Facilitates fair and equitable benefit sharing.
• Advises governments on biodiversity conservation.
• Supports implementation of the Biological Diversity Act.
• Facilitates implementation of the Nagoya Protocol.
• Works towards conservation and sustainable utilisation of biological diversity.

ABS Disbursement: Key Figures

• The NBA has released a total ABS amount of ₹182.5 crore so far.
• Of this, ₹116.22 crore has been released to beneficiaries across the country during the last 12 months.
• The latest ₹15.52 crore mustard-related release therefore represents another significant step in strengthening India's benefit-sharing mechanism.

Challenges in Access and Benefit Sharing

Despite the legal framework, ABS implementation faces several challenges:

• Difficulty in identifying the original provider of biological resources.
• Complex supply chains involving traders and intermediaries.
• Limited documentation of biological resources and traditional knowledge.
• Capacity constraints of local Biodiversity Management Committees.
• Need for stronger monitoring of commercial utilisation.
• Ensuring that benefits reach genuine local stakeholders.
• Improving awareness among communities about biodiversity rights.

Way Forward

• India needs to strengthen digital biodiversity documentation, improve coordination among NBA, SBBs and BMCs, and develop transparent mechanisms for tracing biological resources through supply chains.
• Greater community participation in People’s Biodiversity Registers and better utilisation of ABS funds can ensure that benefit sharing becomes an effective tool for both biodiversity conservation and livelihood improvement.

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