Daily Current Affairs - 5th November 2025
Source: The Hindu
Relevance: GS Paper–II (International Relations); GS Paper–III (Indian Economy — Global Financial Architecture)
Important Key words:
For Prelims:
BRICS Pay, SWIFT Network, New Development Bank (NDB), Contingent Reserve Arrangement (CRA), BRICS Payments Task Force (BPTF)SPFS, CIPS, UPI, Pix Systems
For Mains:
BRICS Pay, Challenges in Implementing BRICS Pay, Swift System and It workingWhy in News?
At the 16th BRICS Summit in Kazan, Russia (October 2024), member nations unveiled the BRICS Cross-Border Payments Initiative — “BRICS Pay”, signalling their intent to reduce dependence on the U.S.-controlled SWIFT network and to strengthen financial sovereignty among emerging economies.
What is the SWIFT System?
- Full Form: Society for Worldwide Interbank Financial Telecommunication
- Established: 1973
- Headquarters: Belgium
- Nature: Secure messaging system, not a money transfer system
- Purpose: Sends payment instructions between banks for international transactions
- Members: Around 11,000 institutions in over 200 countries
- Supervised by: G10 Central Banks and the European Central Bank (ECB)
- Function: Enables fast, standardized, and encrypted financial communication
- Significance: Backbone of global trade and finance
- Issue: Western-controlled; used as a sanction tool (e.g., against Russia, Iran)
How SWIFT system Works
Unique Identification via SWIFT Code
- Every bank connected to SWIFT has a unique code (also called BIC – Bank Identifier Code).
- The code helps identify:
- The bank/institution,
- The country,
- The location or city,
- And optionally, the specific branch.
Message Transmission
- When one bank wants to send money to another (say, Bank A to Bank B), it sends a SWIFT message containing the payment instructions.
- SWIFT ensures this message is securely transmitted to Bank B through its encrypted global network.
Clearing and Settlement
- Once the SWIFT message is validated, the transaction is cleared securely and immediately.
- The actual transfer of funds happens through correspondent banks or central banks, depending on the arrangement.
How BRICS is Challenging SWIFT System?
Why BRICS Wants an Alternative
- Western Control: SWIFT is under G10 central banks, enabling sanction-based financial exclusion.
- Sanction Avoidance: BRICS nations like Russia and Iran seek to bypass Western restrictions.
- Financial Sovereignty: Reducing dependence on the U.S. Dollar and Western systems.
- Strategic Symbolism: Launch of BRICS banknote in 2024 symbolized intent to move beyond dollar dominance.
Origin of BRICS Financial Independence Moves
2014 Fortaleza Summit – Turning point:
- Establishment of New Development Bank (NDB) and Contingent Reserve Arrangement (CRA).
- Aim: To provide financing alternatives for developing countries outside Western-dominated institutions (IMF, World Bank).
Post-2014 (Crimea Sanctions):
- BRICS began promoting national currency usage in intra-group trade.
2017 Agreement:
- Commitment to enhance currency cooperation – through currency swaps, local currency settlements, and direct investments.
2020s:
- Formation of the BRICS Payments Task Force (BPTF) to develop cross-border payment systems.
BRICS Cross-Border Payments Initiative (BRICS Pay)
- Objective: Reduce dependence on SWIFT for international money transfers.
- Aim: Build a parallel financial network enabling secure cross-border payments.
- Introduced at: 2024 Kazan Summit (Russia).
- Focus Areas:
- Strengthen correspondent banking networks within BRICS.
- Promote settlements in local currencies among member nations.
- Reaffirmed in: 2025 Rio Summit Declaration.
- Task Force: BRICS Payments Task Force (BPTF) recognized for progress in developing interoperable payment systems across member countries.
National Payment Systems Supporting BRICS Pay
| Country | System | Features |
| Russia | SPFS (System for Transfer of Financial Messages) | SWIFT analogue created after 2014 Crimea sanctions |
| China | CIPS (Cross-Border Interbank Payment System) | Connects 1,300+ institutions globally; RMB internationalization |
| India | UPI (Unified Payments Interface) | Accepted in 9 countries; aims for global interoperability |
| Brazil | Pix System | Operated by Central Bank; used across Latin America |
Significance of BRICS Pay
- Potential to:
- Create a parallel international payments architecture.
- Reduce dollar dominance in global trade.
- Boost South-South financial cooperation.
- If successful, it could be a game-changer in reshaping global financial governance.
Challenges in Implementing BRICS Pay
Despite its potential to transform global financial systems, BRICS Pay faces several critical challenges:
1. Divergent National Interests
- Each member is expanding its own payment system globally, creating overlapping ambitions:
- India’s UPI is being integrated across Asia and Africa.
- China’s CIPS already operates in 120+ countries.
- Aligning these platforms under one interoperable BRICS framework is politically and technically complex.
2. Technical Interoperability
- The five member nations have different digital infrastructures, cybersecurity policies, and regulatory systems.
- Establishing common standards for security, transaction validation, and compliance remains a major hurdle.
3. Currency Coordination
- BRICS lacks a common currency or settlement unit.
- Without a unified currency mechanism, exchange rate fluctuations between local currencies could complicate smooth settlements.
4. Trust Deficit
- Some members fear China’s dominance, given:
- The internationalisation of the Yuan (RMB), and
- Its inclusion in the IMF’s Special Drawing Rights (SDR) basket.
- Smaller members worry that BRICS Pay may become China-centric rather than a truly multilateral system
5. Regulatory and Political Barriers
- Diverse banking laws, privacy standards, and monetary policies make policy alignment difficult.
- External geopolitical pressure (especially from the U.S. and EU) could discourage smaller economies from full participation.
6. Limited Institutional Mechanism
- BRICS currently lacks a central authority or secretariat to coordinate digital payment integration and dispute resolution.
- This weakens the system’s ability to build trust and ensure accountability
About BRICS Plus
Origin and Evolution
- Concept Origin: Coined by Jim O’Neill (Goldman Sachs, 2001) in “The World Needs Better Economic BRICs.”
- Founding Members: Brazil, Russia, India, China (BRIC).
- Diplomatic Formation: 2006, during G8 Outreach Summit (St. Petersburg, Russia).
- First BRIC Summit: 2009, Yekaterinburg, Russia.
- Expansion:
- 2010: South Africa joined → BRICS (from 2011 Sanya Summit, China).
- 2024: Egypt, Ethiopia, Iran, UAE joined as full members. → Form BRICS Plus
- 2025: Indonesia became a full member.
Current Membership (2025)
- Full Members (11): Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, UAE, Indonesia.
- Partner Countries (10): Vietnam, Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan.
Global Significance
- Represents ~49.5% of world population, ~40% of global GDP, and ~26% of world trade.
- Serves as a platform for emerging economies to coordinate on economic, political, and developmental issues.
- Symbolizes South–South cooperation and the shift toward a multipolar global order.
Institutional Framework
- Permanent Institutions:
- New Development Bank (NDB) — HQ: Shanghai, China.
- Contingent Reserve Arrangement (CRA).
- Engagement Mechanisms:
- Political and Security Cooperation
- Economic and Financial Cooperation
- People-to-People and Cultural Exchan
UPSC PYQ
Q. Consider the following statements with regard to BRICS: (UPSC/2025)
I. The 16th BRICS Summit was held under the Chairmanship of Russia in Kazan.
II. Indonesia has become a full member of BRICS.
III. The theme of the 16th BRICS Summit was “Strengthening Multiculturalism for Just Global Development and Security.”
Which of the statements given above is/are correct?
(a) I and II
(b) II and III
(c) I and III
(d) I only
CARE MCQ
Q. Consider the following statements regarding BRICS Pay:
- It aims to reduce dependence on the SWIFT network controlled by G-10 central banks.
- The BRICS Payments Task Force works to make members’ payment systems interoperable.
- SPFS, CIPS, UPI, and Pix form the core infrastructure for BRICS Pay.
- Iran’s inclusion in 2024 strengthened BRICS’ push for financial sovereignty.
How many of the above statements are correct?
(a) Only two
(b) Only three
(c) All four
(d) Only one
Correct Answer: (c) All four
Source: The Hindu
Relevance: Facts for Prelims, GS Paper II: Judiciary, Government Policies, Rights and Issues relating to Women and Children
Important Key words:
For Prelims:
POCSO Act 2012, Section 375 IPC, “Close-in-age” exception.
For Prelims:
Misuse of POCSO, Adolescent rights vs. child protection, Judicial interpretation of consent, Gender sensitisation in education, and Legal awareness reforms.
Why in News?
On November 4, 2025, the Supreme Court expressed concern over the misuse of the POCSO Act, 2012 to criminalise consensual relationships between adolescents, and indicated that it may issue directions to raise legal awareness among youth and parents.
Background:
- The Protection of Children from Sexual Offences (POCSO) Act, 2012 was enacted to safeguard minors (below 18 years) from sexual abuse, assault, and exploitation.
- However, courts have observed a rising trend of the Act being used vindictively in consensual adolescent relationships, especially by parents of girls.
- Under Section 375 of IPC, the age of consent for sexual activity is 18 years, making all sexual acts involving minors technically criminal — even if consensual.
Section 375 of the Indian Penal Code (IPC): Definition of Rape
- Defines rape as sexual intercourse with a woman under specific prohibited circumstances.
- Considered rape when done:
- Against her will.
- Without her consent.
- With consent obtained through fear, coercion, deception, or intoxication.
- When the woman is unable to communicate consent.
- When the woman is under 18 years of age, irrespective of consent.
- Specifies that the offender must be a man and the victim a woman.
The provision has been criticised for not being gender-neutral, as it excludes male and transgender victims.
Overview of the POCSO Act, 2012
Enactment and Purpose:
- Came into effect on 14th November 2012, following India’s ratification of the UN Convention on the Rights of the Child (1992).
- Enacted to address sexual exploitation and abuse of children, which were previously poorly defined or inadequately penalised in Indian law.
Definition of a Child:
- A child is defined as any person below 18 years of age.
Key Features of the POCSO Act:
Nature of the Law:
- Gender-neutral law — applies equally to boys, girls, and transgender children.
Ease in Reporting:
- Mandatory reporting of offences by individuals or institutions.
- Non-reporting is itself considered an offence, ensuring greater accountability.
Punishments:
- Provides graded punishments depending on the gravity of the offence.
Explicit Definitions:
- Clearly defines offences such as penetrative and non-penetrative assault, sexual harassment, and use of children in pornography.
- Introduces storage of child pornography as a separate punishable offen
Amendment (2019):
- Introduced death penalty for aggravated sexual offences against children.
- Aimed to act as a deterrent against sexual crimes.
POCSO Rules, 2020 — Major Provisions:
- Rule 9: Allows interim compensation for child’s relief or rehabilitation after FIR registration.
- Immediate Relief: Child Welfare Committees (CWC) can recommend urgent payments for food, clothing, and transportation within a week.
- Support Person: CWC can appoint a support person to guide and assist the child through the investigation and trial process.
Fast Track Courts (FTSCs):
- Under the Centrally Sponsored Scheme (2019), the government approved 1023 Fast Track Courts, including 389 exclusive POCSO courts.
- As of May 31, 2023, 758 FTSCs (including 412 e-POCSO courts) were operational in 29 States/UTs.
Crimes against children rise in Karnataka, over 10 POCSO cases filed every day in 2025
Issues and Challenges with the POCSO Act:
Issues in Investigation:
- Low Representation of Women Police (10%): Difficult to ensure a woman sub-inspector records statements, as mandated.
- Lapses in Evidence Preservation: Despite guidelines (Shafhi Mohammad vs. State of Himachal Pradesh, 2018), photography and video recording are often neglected.
Judicial Shortcomings:
- Statements by judicial magistrates are often not cross-examined or followed up, weakening prosecution cases.
Age Determination Challenges:
- No uniform system for determining a victim’s age under POCSO.
- Despite Jarnail Singh vs. State of Haryana (2013), police often rely on school records, which can be inaccurate.
Delay in Investigation:
- The Act mandates completion of investigation within 1 month, but delays occur due to lack of forensic resources and case complexity.
Presumption of Guilt and Proof Issues:
- The Act presumes guilt of the accused, but courts often fail to apply this presumption during trial.
- Unlike the Indian Evidence Act, POCSO does not require proof of recent intercourse or consent, leading to procedural confusion.
Implementation Gaps:
- Lack of trained personnel, forensic experts, and child-friendly infrastructure in courts.
- Low conviction rates due to investigation errors and judicial inconsistencies.
Supreme Court’s Observation:
- A Bench of Justices B.V. Nagarathna and R. Mahadevan noted that “the POCSO Act is being misused in consensual adolescent relationships”, where parents often file complaints against boys of similar age.
- The Court emphasised the need for legal awareness, particularly among male adolescents, regarding implications under the Act.
- It also sought responses from States and UTs like Telangana, Tripura, Himachal Pradesh, and Jammu & Kashmir, which have yet to submit their compliance reports.
Petition Highlights:
- Filed by Senior Advocate Aabad Ponda, the petition attributed rising sexual offences to lack of gender equality education and poor moral sensitisation in schools.
- The plea urged the inclusion of gender equality and legal literacy in school curricula.
- The Court agreed that ethical and behavioural education on respecting women must be an integral part of schooling.
Legal and Policy Context:
Current Legal Framework:
- POCSO Act, 2012: Protects all persons under 18 from sexual offences; has strict penalties and reverses the burden of proof.
- Section 375, IPC: Defines rape and fixes 18 years as the age of consent.
- Mandatory Reporting: Under Section 19, all sexual activity involving minors must be reported, even if consensual.
Judicial Developments:
- Several courts, including High Courts and the SC, have adopted a lenient view in consensual cases involving adolescents.
- A separate Bench is hearing a petition seeking a “close-in-age” exception — decriminalising consensual relationships between 16–18-year-olds.
Union Government’s Stand:
- The Centre opposes lowering the age of consent or allowing adolescent exceptions, arguing that it may weaken child protection laws and increase vulnerability to exploitation.
Concerns Highlighted by the Court and Experts:
- Over-criminalisation: Normal adolescent relationships are being penalised as sexual offences.
- Psychological harm: Adolescents face trauma, stigma, and prolonged court exposure.
- Gendered misuse: Boys are disproportionately targeted.
- Health & Rights Issues: Mandatory reporting compromises adolescent girls’ privacy, autonomy, and reproductive rights.
- Lack of awareness: Families and youth remain ignorant of the law’s implications.
Way Forward:
Legal Awareness Campaigns:
- Nationwide sensitisation on the scope and intent of the POCSO Act.
- Targeted outreach to schools, parents, and adolescents.
Curriculum Reform:
- Introduce gender equality, consent, and legal literacy in school education.
- Include behavioural ethics and respect for women in civic studies.
Close-in-Age Exception:
- Consider a legislative amendment allowing consensual relationships between adolescents close in age (e.g., 16–18 years).
Judicial Guidelines:
- Courts may issue bail and trial guidelines to prevent misuse and ensure context-sensitive adjudication.
Community Sensitisation:
- Engage parents, teachers, and community workers to reduce moral panic and stigma.
Conclusion:
The Supreme Court’s intervention marks a crucial step toward balancing child protection with adolescent autonomy. While safeguarding minors from exploitation remains essential, criminalising consensual teenage relationships undermines justice, education, and trust. India’s approach must evolve from punitive protectionism to empathetic education and awareness, ensuring that the POCSO Act serves its true purpose — protecting children, not punishing adolescents.
UPSC PYQ
Q. Which of the following are envisaged by the Right against Exploitation in the Constitution of India? (2017)
- Prohibition of traffic in human beings and forced labour
- Abolition of untouchability
- Protection of the interests of minorities
- Prohibition of employment of children in factories and mines
Select the correct answer using the code given below:
(a) 1, 2 and 4 only
(b) 2, 3 and 4 only
(c) 1 and 4 only
(d) 1, 2, 3 and 4
Ans: (c)
CARE MCQ
Q) Consider the following statements regarding the Protection of Children from Sexual Offences (POCSO) Act, 2012:
- The POCSO Act defines a child as any person below 16 years of age.
- The Act is gender-neutral and applies to both male and female children.
- The Act provides for the establishment of Special Courts for speedy trial of offences.
- The POCSO Rules, 2020 provide for interim compensation and the appointment of a support person for the child.
Which of the above statements are correct?
(a) 1 and 2 only
(b) 2, 3 and 4 only
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4
Answer: (b) 2, 3 and 4 only
Explanation:
- Statement 1 – Incorrect: The POCSO Act defines a child as any person below 18 years of age, not 16.
- Statement 2 – Correct: The Act is gender-neutral, protecting both boys and girls from sexual offences.
- Statement 3 – Correct: The Act mandates Special Courts to ensure child-friendly, time-bound trials.
- Statement 4 – Correct: Under the POCSO Rules, 2020, a Special Court can order interim compensation, and the Child Welfare Committee (CWC) can assign a support person to assist the child during investigation and trial.