Daily Current Affairs Quiz for UPSC Prelims 2027 — 21 June 2026

The terms 'Dispute Settlement Body' and 'Appellate Body' are often seen in the news, particularly in discussions regarding the paralysis of global trade governance. These bodies are associated with the functioning of which international organization?

Why this answer

The correct answer is the World Trade Organization. The Dispute Settlement Body (DSB) and the Appellate Body are the core components of the WTO's dispute settlement mechanism, often called the 'crown jewel' of the organization. The International Court of Justice (ICJ) is the principal judicial organ of the UN, dealing with general disputes between states. The Permanent Court of Arbitration (PCA) provides services for the resolution of disputes involving states, intergovernmental organizations, and private parties. The International Centre for Settlement of Investment Disputes (ICSID) is a World Bank institution that deals specifically with investor-state disputes, not state-to-state trade disputes under WTO agreements.

The static concept

World Trade Organization (WTO) — Structure and Function, specifically the Dispute Settlement Mechanism (DSM).

With reference to the financial architecture established by the BRICS nations, consider the following statements:

1. 1.The New Development Bank (NDB) permits non-BRICS countries to become members, and countries like Egypt and the UAE have already joined.
2. 2.In the New Development Bank, the founding members of BRICS hold equal voting rights, irrespective of their capital subscription.
3. 3.The BRICS Contingent Reserve Arrangement (CRA) is a framework for providing protection against global liquidity pressures and is headquartered alongside the NDB in Shanghai.
4. 4.Access to financial assistance under the BRICS CRA is completely delinked from any IMF program or conditionality.

How many of the above statements are correct?

Why this answer

Only one statement is correct. Statement 1 is correct. The NDB's Articles of Agreement allow for the admission of new members from the UN. Bangladesh, Egypt, the UAE, and Uruguay have joined the bank. Statement 2 is incorrect. Voting rights in the NDB are proportional to the number of subscribed shares in the Bank's capital stock. The founding members initially had equal voting rights because they had equal shareholding, not as a principle independent of capital subscription. Statement 3 is incorrect. While the NDB is headquartered in Shanghai, the Contingent Reserve Arrangement (CRA) is a virtual pool of foreign exchange reserves. It is an agreement among the central banks of BRICS countries and does not have a separate physical headquarters. Statement 4 is incorrect. The CRA is not completely delinked from the IMF. A member country can draw up to 30% of its quota without an IMF program, but to access the remaining 70%, it must have an ongoing arrangement with the IMF.

The static concept

BRICS Financial Architecture: New Development Bank (NDB) and Contingent Reserve Arrangement (CRA)

With reference to the administration of Scheduled Areas under the Fifth Schedule of the Indian Constitution, consider the following statements:

1. 1.A regulation made by the Governor for the peace and good government of a Scheduled Area requires the assent of the President to become effective.
2. 2.The Tribes Advisory Council in a state must consist of not more than 20 members, of whom at least half must be representatives of the Scheduled Tribes in the State Legislative Assembly.
3. 3.The provisions of the PESA Act, 1996, grant the Gram Sabha the absolute power to veto any land acquisition process initiated by the state government in a Scheduled Area.
4. 4.The President of India can declare an area to be a Scheduled Area, but any subsequent alteration of its boundaries requires a law passed by the Parliament.

How many of the above statements are correct?

Why this answer

Only one statement is correct. Statement 1 is correct; the Governor is empowered to make regulations for the peace and good government of a Scheduled Area, but such regulations must be submitted to the President and have no effect until assented to by him. Statement 2 is incorrect; the Tribes Advisory Council (TAC) shall consist of not more than 20 members, of whom, as nearly as may be, three-fourths (not at least half) shall be the representatives of the Scheduled Tribes in the Legislative Assembly of the State. Statement 3 is incorrect; under the PESA Act, the Gram Sabha must be consulted before making the acquisition of land in the Scheduled Areas for development projects. It does not grant an 'absolute veto' power, although its recommendation carries significant weight. Statement 4 is incorrect; the President can by order not only declare an area as a Scheduled Area but can also increase, decrease, or alter its boundaries, or rescind such a designation, after consultation with the Governor of the concerned state. This does not require a law passed by Parliament.

The static concept

Fifth Schedule and Sixth Schedule: Special provisions for administration of Scheduled and Tribal Areas.