Medium Level – GK Questions

As of 2026, India's crypto regulation focuses on AML/KYC and taxation. Capital requirements for VASPs are under consideration but not yet mandated. Critical for understanding evolving regulatory landscape.

Privacy thresholds allow small CBDC transactions with minimal identity disclosure, balancing inclusion with AML requirements. Larger transactions require enhanced verification. Critical for user adoption.

Wholesale CBDC enables delivery-versus-payment settlement: securities and cash transfer simultaneously, eliminating settlement risk. Critical for financial market infrastructure modernization.

PMLA rules mandate VASPs to perform KYC: identity verification, source of funds assessment, ongoing monitoring. Critical for preventing money laundering and terrorist financing via crypto.

Two-tier CBDC: central bank issues digital currency, commercial banks distribute and manage customer accounts. Preserves existing financial intermediation while enabling digital innovation.

Programmable CBDC can embed FX rules: transaction limits, reporting thresholds, approval workflows. Enhances regulatory compliance while reducing manual processing overhead.

Server virtualization improves utilization from 10-15% to 60-80%, reducing hardware, power, cooling needs. Critical for data center efficiency and cost reduction in cloud environments.

Carbon credit integrity: unique identifiers prevent duplication; central registries track issuance/retirement; blockchain enables transparent, tamper-proof records. Critical for market trust.

BEMS uses IoT sensors, AI analytics, and automation to optimize HVAC, lighting, equipment operation. Reduces energy waste by 20-40% while maintaining comfort. Critical for green building certifications.

Energy-efficient networking: SDN enables dynamic resource allocation; energy-aware routing selects paths minimizing power use. Critical for sustainable telecom and data center operations.

Carbon prices vary by market: compliance markets (regulated caps) vs voluntary (corporate ESG). Influenced by policy stringency, project quality, economic conditions. Critical for climate finance planning.

Precision livestock: sensors monitor health/behavior, optimized feed reduces enteric fermentation, manure management captures methane. Critical for sustainable agriculture and climate mitigation.

Lunar regolith (soil) can be processed into bricks, concrete, or 3D-printed structures using sintering or binding techniques. Critical for sustainable lunar base construction without Earth imports.

Mobile satellite services require: beam steering to track users, handover protocols for seamless transition between beams/satellites. Critical for continuous connectivity in vehicles, aviation, maritime.

In-orbit servicing (robotic arms, refueling) extends satellite life, reduces space debris, enables new business models. ISRO's SPADEX tested docking; global companies developing servicing tech.

CBDC for disaster response: direct transfers to affected individuals, programmable conditions for essential goods, offline mode for damaged infrastructure. Critical for resilient social protection.

FATF provides international standards for virtual asset definition, VASP regulation, and AML/CFT requirements. Countries implement through domestic laws for cross-border consistency.

Offline CBDC uses secure hardware (SE/TEE) to store transactions locally, synchronizing with central ledger when connectivity restored. Critical for inclusion in connectivity-challenged areas.

Section 115BBH taxes crypto transfers at 30% on gross value, with 1% TDS. No loss offset allowed. Critical for comprehensive tax compliance and transaction tracking.

Privacy-preserving CBDC: ZK-proofs verify validity without revealing details; confidential transactions hide amounts using cryptographic commitments. Enable auditability for regulators while protecting user privacy.