UPSC Quiz – 2026 : IASbaba’s Daily Current Affairs Quiz 12th August 2026

Solution (a)
Explanation:
The EPCG Scheme is an export-promotion mechanism that permits import of capital goods at concessional or zero customs duty subject to an export obligation, making Statement 1 correct. Statement 2 is incorrect because the export obligation is specifically linked to the duty benefit; failure to fulfil it requires payment of proportionate customs duty saved along with applicable interest. Statement 3 is correct because the scheme covers capital goods used in pre-production, production and post-production activities. Statement 4 is also correct: the Directorate General of Foreign Trade (DGFT) administers EPCG under the Foreign Trade Policy. A key conceptual distinction is that EPCG concerns capital goods, whereas Advance Authorisation relates to duty-free inputs physically incorporated into export products.
Why this question?
Tests the crucial relationship between duty concession and export obligation under EPCG.
Why important for UPSC?
Links export promotion, customs duties, DGFT and India’s foreign trade policy architecture.
PYQ Pattern Link
UPSC frequently tests export schemes through their beneficiary goods, obligations and institutional administration.

Solution (c)
Explanation:
Merchant Discount Rate is the fee associated with accepting digital payments and is generally a merchant-side cost, rather than a direct consumer fee. Therefore, Statement 1 is correct. MDR is usually expressed as a percentage of the transaction value, making Statement 2 correct. Statement 3 is incorrect because MDR compensates multiple participating entities in the payment ecosystem, including issuing and acquiring banks, payment networks and payment service providers; it is not exclusively paid to the issuing bank. Statement 4 is correct according to the source: UPI transactions have operated under a zero-MDR framework since 2020. The proposed nominal, threshold-based MDR for selected merchant transactions therefore raises questions about sustainability of digital-payment infrastructure while retaining free consumer access.
Why this question?
The trap is confusing MDR with a consumer transaction charge or bank-specific fee.
Why important for UPSC?
Tests digital payments, banking intermediaries, financial infrastructure and financial inclusion.
PYQ Pattern Link
MDR itself appeared in UPSC Prelims 2018, making its conceptual definition especially relevant.

Solution (a)
Explanation:
Kalaburagi Fort, also known historically as Gulbarga Fort, is located in Karnataka, making Statement 1 correct. The fort was initially constructed by Raja Gulchand, a Kakatiya feudatory, and was subsequently strengthened by Alauddin Hasan Bahman Shah, founder of the Bahmani Sultanate. Statement 2 is therefore correct. Kalaburagi served as the Bahmani capital before the capital was shifted to Bidar, making Statement 3 correct. Statement 4 is incorrect because the fort represents a Hindu–Islamic architectural synthesis, incorporating massive fortifications, bastions, gateways, mosques, palaces and tombs. The question deliberately contrasts Kalaburagi with Bidar and uses the phrase “purely Islamic” as the conceptual trap.
Why this question?
Tests dynasty-location-capital linkage while introducing architectural syncretism as the elimination clue.
Why important for UPSC?
Medieval Deccan history frequently intersects with architecture, dynasties and cultural synthesis.
PYQ Pattern Link
UPSC regularly asks monuments through dynasty, location, architectural style and historical chronology.

Solution (d)
Explanation:
The Betwa originates in the Vindhya Range in Raisen district, Madhya Pradesh, making Statement 1 correct. It subsequently flows through Madhya Pradesh and Uttar Pradesh before joining the Yamuna at Hamirpur, making Statement 2 correct. Statement 3 is incorrect because Betwa is itself a tributary of the Yamuna, not the Chambal. Both ultimately belong to the broader Ganga river system, but their direct drainage relationships are distinct. Statement 4 is correct: the Ken–Betwa Link Project is designed to transfer water from the Ken basin to the Betwa basin for irrigation and drinking-water requirements in drought-prone Bundelkhand. The question tests river-basin relationships rather than merely memorising individual river names.
Why this question?
The trap is confusing direct tributary relationships within the interconnected Yamuna-Ganga drainage system.
Why important for UPSC?
River origins, tributaries, drainage systems and interlinking projects are recurring Prelims themes.
PYQ Pattern Link
UPSC frequently tests rivers through origin, confluence, tributaries, basins and interlinking projects.

Solution (a)
Explanation:
A Permanent Pictorial Cancellation (PPC) is a permanent, regular-date cancellation provided at a post office located at a tourist attraction. It normally depicts a major local tourist attraction, thereby creating a linkage between philately and cultural or heritage sites. Hence, option (a) is correct. A PPC should be distinguished from a special cancellation, which commemorates a particular event or occasion for a limited period. Option (b) therefore describes the latter rather than PPC. Options (c) and (d) incorrectly equate PPC with a postage stamp or temporary festival-specific cancellation. In August 2026, India Post released a PPC and premium special cover associated with the Sree Padmanabhaswamy Temple in Thiruvananthapuram.
Why this question?
Tests precise terminology in philately where “permanent,” “special” and “cover” are easily confused.
Why important for UPSC?
Reflects UPSC’s interest in lesser-known institutional and cultural terminology linked with heritage.
PYQ Pattern Link
UPSC often converts seemingly niche cultural facts into conceptual questions through closely related terminology.