Today's current affairs dated 01 January 2026 mark the beginning of a new year with significant policy changes, international developments, and sports updates. Competitive exam aspirants preparing for UPSC, SSC, Banking, State PSCs, Railways, and Defence exams must stay updated with these latest national and international news events, as questions from recent developments form a crucial part of preliminary and main examinations.
Section 1: India - National Current Affairs
1. 8th Pay Commission Implementation Begins (January 2, 2026)
The 8th Pay Commission officially comes into effect from January 1, 2026, as the 7th Pay Commission tenure ended on December 31, 2025. Central and state government employees will see revised pay structures and increased dearness allowance (DA) from this month. This impacts millions of government employees across India and is expected to boost consumption in the economy.
Exam Relevance: Questions on Pay Commission recommendations, salary structures, and economic impact on government finances are common in SSC, Banking, and State PSC exams.
2. Weekly Credit Score Updates by Credit Bureaus
Credit bureaus across India began updating customer credit data on a weekly basis instead of the earlier 15-day cycle from January 1, 2026. This means loan repayments, EMI defaults, and credit behavior will reflect faster in credit scores, directly influencing loan approvals and interest rates offered by financial institutions.
Exam Relevance: Banking awareness questions on credit score mechanisms, CIBIL, and financial inclusion are frequently asked in Bank PO, Clerk, and RRB exams.
3. Mandatory PAN-Aadhaar Linking for Services
The deadline for mandatory PAN-Aadhaar linking has passed. From January 1, 2026, many financial services and government schemes require completed PAN-Aadhaar linkage. Failure to link may result in transaction restrictions and service denial.
Exam Relevance: Questions on Aadhaar applications, Income Tax regulations, and digital governance appear in UPSC Prelims, SSC CGL, and Banking exams.
4. Farmer ID Mandatory for PM-Kisan Payments
States like Uttar Pradesh have made unique Farmer IDs mandatory for receiving PM-Kisan scheme installments from January 1, 2026. Without this ID, payment disbursement may be delayed or stopped. The move aims to improve targeting and reduce leakages in farmer welfare schemes.
Exam Relevance: Agricultural schemes like PM-Kisan are important for UPSC Mains GS-II (Governance), State PSC exams, and general awareness sections.
5. Revised Crop Insurance Rules Under PM Kisan Crop Insurance Scheme
The PM Kisan Crop Insurance Scheme now covers damage caused by wild animals from January 1, 2026, provided losses are reported within 72 hours. This expansion aims to protect farmers from increasing human-wildlife conflict.
Exam Relevance: Questions on insurance schemes, agricultural policies, and farmer welfare programs are asked in NABARD, RBI Grade B, and UPSC exams.
6. RBI Measures to Infuse USD 22.30 Billion Liquidity
The Reserve Bank of India announced measures to infuse USD 22.30 billion of liquidity into the banking system. The RBI will conduct a USD/INR Buy/Sell Swap auction of USD 10 billion with a three-year tenor on January 13, 2026. This aims to support credit flows and maintain orderly market conditions during seasonal cash outflows.
Exam Relevance: RBI monetary policy tools, liquidity management, and currency swap mechanisms are critical topics for Banking, RBI Grade B, and UPSC Economics Optional exams.
7. Bank Account Closures for Dormant and Inactive Accounts
From January 1, 2026, the RBI may close dormant accounts (no transactions for 2 years), inactive accounts (no activity for 12 months), and zero-balance accounts. Customers must make periodic transactions and keep KYC details updated to avoid account closure.
Exam Relevance: Banking regulations, customer service standards, and RBI guidelines are frequently tested in Bank PO, IBPS, and SBI exams.
8. National Sports Governance Act Provisions Enforced
Select provisions of the National Sports Governance Act, 2025, came into force from January 1, 2026. The Act establishes governance frameworks for national sports bodies, ensuring transparency, accountability, and timely dispute resolution in consonance with the Olympic Charter.
Exam Relevance: Sports governance, legislative developments, and administrative reforms are relevant for UPSC Prelims Current Affairs and State PSC General Studies papers.
9. New Income Tax Return Forms with Pre-filled Data
Taxpayers can expect a new Income Tax Return (ITR) form in January 2026, pre-filled with banking transactions and spending data. While this simplifies filing, it may lead to increased scrutiny and reduced margin for errors.
Exam Relevance: Tax structures, ITR filing procedures, and financial transparency measures are asked in SSC, Banking Awareness, and UPSC Economics questions.
10. Revised LPG and Aviation Fuel Prices
LPG, commercial gas, and aviation turbine fuel (ATF) prices were revised from January 1, 2026. Any upward revision in ATF prices could lead to increased airfares, affecting household budgets and travel costs.
Exam Relevance: Fuel pricing mechanisms, subsidy policies, and inflation management are core topics for Economics sections in UPSC, State PSC, and Banking exams.
Section 2: International Current Affairs
1. Switzerland Ski Resort Fire Claims 40 Lives (January 2, 2026)
A devastating fire broke out at Le Constellation bar in Crans-Montana, Switzerland, during New Year's Eve celebrations at approximately 1:30 AM local time on January 1, 2026. The blaze killed approximately 40 people and injured 115 others, many critically. The fire occurred at the luxury Alpine ski resort located in Valais canton, about 40 km north of the Matterhorn. Authorities ruled out terrorism and are investigating whether pyrotechnics or sparklers caused the flashover explosion.
Exam Relevance: Major international incidents, disaster management responses, and European geography are relevant for UPSC Prelims Current Affairs and IAS Mains GS-II (International Relations).
2. New Year Celebrations Worldwide
Countries across the globe welcomed 2026 with fireworks and celebrations. Major displays were held in Sydney Harbour (Australia), Times Square (New York), Burj Khalifa (Dubai), London's Thames River, Paris's Arc de Triomphe, Rio de Janeiro's Copacabana Beach, and other major cities. The Pacific island nation of Kiribati was the first to celebrate, while Alaska and Hawaii were among the last.
Exam Relevance: Time zones, international date line, and world geography questions appear in SSC, Railway, and preliminary exams.
3. India Surpasses Japan to Become Fourth-Largest Economy
According to recent government reports, India has overtaken Japan to become the world's fourth-largest economy with a GDP of USD 4.18 trillion. India is expected to surpass Germany to become the third-largest economy by 2030 with a projected GDP of USD 7.3 trillion. The country remains the world's fastest-growing major economy despite global trade uncertainties.
Exam Relevance: Economic rankings, GDP comparisons, and growth trajectories are crucial for UPSC Economics, Banking Awareness, and State PSC exams.
4. Zohran Mamdani Sworn in as New York City Mayor
Zohran Mamdani was sworn in as New York City Mayor on January 1, 2026. US Senator Bernie Sanders administered the oath, with Mamdani taking it on a Quran held by his wife. He promised a "new era" of progressive governance representing all New Yorkers.
Exam Relevance: International political developments and leadership changes are asked in UPSC Prelims and IAS Mains GS-II (International Relations).
5. Afghanistan Flash Floods Kill 17 People
At least 17 people were killed and eleven others injured in flash floods caused by heavy rains and snowfall across Afghanistan. The disaster highlights the vulnerability of the region to extreme weather events.
Exam Relevance: Natural disasters, climate vulnerability, and South Asian developments are relevant for UPSC, State PSC Geography, and Environment sections.
6. Migrant Boat Capsizes in The Gambia
Seven people were killed, 96 rescued, and at least 97 reported missing when a boat carrying hundreds of migrants capsized in The Gambia. The tragedy underscores ongoing migration challenges in West Africa.
Exam Relevance: Migration issues, humanitarian crises, and African geography appear in UPSC Mains GS-II and International Relations topics.
7. Vondelkerk Church Fire in Amsterdam
A historic 150-year-old Vondelkerk church in Amsterdam, Netherlands, was destroyed by fire on January 1, 2026. The blaze collapsed the tower, leaving only exterior walls standing. The church was a significant historical monument.
Exam Relevance: World heritage sites, European history, and cultural preservation are tested in UPSC and general awareness sections.
8. Israel Offers Assistance to Switzerland After Fire
Following the Crans-Montana tragedy, Israeli President Isaac Herzog offered assistance to Switzerland. The ZAKA search and rescue organization dispatched a team to support recovery efforts. Several members of the Swiss Jewish community were among the injured.
Exam Relevance: International cooperation, disaster response mechanisms, and bilateral relations appear in UPSC Mains GS-II (International Relations).
Section 3: Economy & Banking
1. RBI Infuses USD 22.30 Billion Liquidity into Banking System
The Reserve Bank of India announced comprehensive measures to inject USD 22.30 billion liquidity into the banking sector. This includes conducting Open Market Operations (OMOs) and a USD/INR Buy/Sell Swap auction of USD 10 billion scheduled for January 13, 2026, with a three-year tenor. The move addresses temporary liquidity deficit caused by advance tax and GST payments.
Exam Relevance: Monetary policy instruments, liquidity management, and central banking operations are critical for RBI Grade B, NABARD, Bank PO, and UPSC Economics.
2. India's Economic Growth Outlook for 2026
The RBI's Financial Stability Report states that the Indian economy is likely to maintain strong growth in 2026, supported by robust domestic demand, benign inflation, and prudent macroeconomic policies. The domestic financial system remains resilient with strong balance sheets and low market volatility.
Exam Relevance: Economic growth projections, inflation management, and macroeconomic indicators are essential for Banking Awareness and UPSC Economics sections.
3. Bank Holiday Status on January 1, 2026
Banks remained closed on January 1, 2026, in select states including Mizoram, Tamil Nadu, Sikkim, Manipur, Arunachal Pradesh, Nagaland, West Bengal, and Meghalaya for New Year's Day celebrations. Digital services like UPI, online banking, and ATMs continued to operate normally.
Exam Relevance: Banking operations, RBI holiday calendar, and service continuity during holidays are asked in Banking Awareness sections.
4. 98.41% of ₹2000 Notes Returned to Banks
According to RBI reports, 98.41% of ₹2000 denomination notes have been returned to the banking system since the withdrawal announcement in May 2023. Approximately ₹5,669 crore worth of notes remain in circulation. Citizens can still deposit these notes at RBI's 19 regional offices.
Exam Relevance: Currency management, demonetization effects, and RBI policies are frequently tested in Banking and UPSC exams.
5. Weekly Credit Reporting by Credit Bureaus
From January 1, 2026, credit bureaus must update customer credit data weekly instead of every 15 days. This accelerated reporting will help borrowers see credit score changes faster, impacting loan eligibility and interest rate offerings more quickly.
Exam Relevance: Credit rating systems, financial inclusion measures, and banking technology are relevant for Bank PO, Clerk, and Financial Awareness sections.
6. Stablecoins Pose Risk to Monetary Sovereignty: RBI
The RBI's Financial Stability Report warns that widespread adoption of foreign currency-denominated stablecoins could erode India's monetary control and weaken monetary policy transmission channels. The report emphasizes that stablecoins fall short of foundational requirements for a sound monetary system.
Exam Relevance: Cryptocurrency regulations, digital currencies, and monetary sovereignty are contemporary topics for UPSC, RBI, and Banking exams.
7. Revised Minimum Balance Rules for Bank Accounts
Banks across India updated minimum balance requirements for savings and current accounts from January 2026. Requirements vary by account type and location, with urban branches typically having higher limits than rural ones. Non-maintenance may attract penalties.
Exam Relevance: Banking service charges, account maintenance rules, and customer protection measures appear in Banking Awareness sections.
8. India's Gig Economy Growth Projection
Reports indicate India's gig economy is set for explosive growth with 2 million new jobs expected in 2026. The sector is gaining prominence with platform-based services expanding rapidly across urban and semi-urban areas.
Exam Relevance: Labor market trends, employment generation, and economic structure are relevant for UPSC Economics and State PSC exams.
Section 4: Science, Technology & Environment
1. ISRO's Gaganyaan Program Progress
The Indian Space Research Organisation (ISRO) continues progress on the Gaganyaan human spaceflight program with four missions scheduled by 2026. Indian astronaut (Gaganyatri) Shubhanshu Shukla successfully participated in Axiom Mission 4 to the International Space Station, gaining crucial operational experience for India's indigenous crewed missions.
Exam Relevance: ISRO missions, space technology, and India's space achievements are frequently asked in UPSC Prelims, SSC, and Railway exams.
2. India's First 3D Flex Aqueous Angiography with iStent
Army Hospital (Research and Referral), Delhi, performed India's first 3D Flex Aqueous Angiography with iStent procedure. This breakthrough combines advanced imaging with minimally invasive glaucoma surgery, positioning India's medical services at the forefront of global ophthalmic care.
Exam Relevance: Medical advancements, healthcare technology, and institutional achievements are relevant for UPSC GS-III (Science & Technology) and general awareness.
3. Gujarat Establishes Indian AI Research Organization (IAIRO)
Gujarat became the first state to establish the Indian Artificial Intelligence Research Organization (IAIRO) at GIFT City, Gandhinagar, under a Public-Private Partnership model. IAIRO began operations on January 1, 2026, as a non-profit organization under Section 8 of the Companies Act, 2013.
Exam Relevance: AI development, state initiatives in technology, and PPP models are asked in UPSC GS-III (Science & Technology) and State PSC exams.
4. ISRO Plans December 2026 Launch Pad Commissioning
ISRO plans to commission a new SSLV Launch Complex in Kulasekarapattinam, Tamil Nadu, by December 2026. This second launch facility will handle SSLV and private sector launch vehicles, with capacity for 20-25 launches annually.
Exam Relevance: Space infrastructure, launch vehicle technology, and ISRO facilities are core topics for Science & Technology sections.
5. Bihar's Kaimur Wildlife Sanctuary Proposed as Tiger Reserve
The Bihar government approved a revised proposal to notify Kaimur Wildlife Sanctuary, the state's largest sanctuary, as a Tiger Reserve. The proposal has been sent to the National Tiger Conservation Authority (NTCA) for final clearance.
Exam Relevance: Wildlife conservation, tiger reserves, Project Tiger, and biodiversity protection are crucial for UPSC Environment, State PSC, and Forest Service exams.
6. National Space Science Symposium (NSSS) 2026 Announced
ISRO announced the 23rd National Space Science Symposium (NSSS) 2026 with extended registration until September 30, 2025. The symposium provides a platform for space research collaboration and scientific exchange.
Exam Relevance: Scientific conferences, research initiatives, and space science developments are relevant for UPSC and general awareness sections.
7. Weather Updates: Delhi Cold Wave, Mumbai Rains
The India Meteorological Department (IMD) reported that the new year began with unseasonal rains in Mumbai while Delhi and northern India experienced severe cold conditions. Dense to very dense fog is expected in Odisha, Haryana, Punjab, Chandigarh, and Delhi until January 5, 2026.
Exam Relevance: Weather phenomena, IMD forecasts, and climate patterns are tested in Geography and Environment sections of various exams.
8. DRDO Conducts Pralay Missile Tests
The Defence Research and Development Organisation (DRDO) successfully conducted a salvo launch of two Pralay missiles in quick succession from the same launcher off the Odisha coast. Pralay is an indigenously developed solid-propellant, quasi-ballistic surface-to-surface missile designed for high-precision conventional strikes.
Exam Relevance: Defence technology, missile systems, and DRDO achievements are crucial for UPSC, CDS, NDA, and general awareness sections.
Section 5: Sports & Important Days
1. India vs New Zealand Cricket Series Begins January 11
India will host New Zealand for a three-match ODI series starting January 11, 2026, in Vadodara, followed by matches in Rajkot (January 14) and Indore (January 18). A five-match T20I series will follow, with matches in multiple cities including Raipur. This serves as India's final preparation before defending the T20 World Cup in February-March 2026.
Exam Relevance: Current sports fixtures, international cricket schedules, and tournament preparations are asked in general awareness sections.
2. India Open Badminton 2026 (January 13-18)
The India Open, a BWF Super 750 tournament, will be held from January 13-18, 2026, at Indira Gandhi Indoor Stadium, New Delhi. The venue capacity has doubled to over 8,000 seats. Top shuttlers including PV Sindhu, Satwiksairaj Rankireddy, Chirag Shetty, and Lakshya Sen are expected to compete.
Exam Relevance: Major sporting events, international tournaments, and Indian athletes are frequently tested in SSC, Railway, and general awareness.
3. India International Youth Sailing Championship in Chennai
The 11th India International Youth Sailing Championship (IIR) 2026 will take place from January 4-10, 2026, at Chennai Port. The championship features 117 registered sailors from 13 nations competing across five elite youth classes.
Exam Relevance: International sports events hosted by India and water sports are relevant for current affairs sections.
4. Alpine SG Pipers Win Global Chess League 2025
Indian Grandmasters R Praggnanandhaa and Anish Giri's Alpine SG Pipers clinched the Global Chess League 2025 Season 3 title, defeating defending champions Triveni Continental Kings 4-2 in the finals in Mumbai.
Exam Relevance: Chess achievements, Indian grandmasters, and international tournaments are asked in sports current affairs.
5. New Year's Day (January 1, 2026) - Global Observance
January 1 is celebrated worldwide as New Year's Day, marking the beginning of the Gregorian calendar year. It is a public holiday in most countries and is often marked by resolutions, celebrations, and fireworks.
Exam Relevance: Calendar systems, international observances, and cultural celebrations appear in general awareness questions.
6. World Day of Peace (January 1, 2026)
The Roman Catholic Church observes World Day of Peace annually on January 1. Established in 1968, this day promotes global peace, reconciliation, and interfaith dialogue.
Exam Relevance: Important international days, religious observances, and peace initiatives are tested in UPSC and general awareness.
7. National Sports Governance Act Comes into Effect
From January 1, 2026, provisions of the National Sports Governance Act, 2025, became operational. The Act establishes governance frameworks for National Olympic Committee, National Paralympic Committee, and National Sports Federations, promoting transparency and accountability.
Exam Relevance: Sports administration, legislative reforms, and governance frameworks are relevant for UPSC GS-II and State PSC exams.
8. Mumbai Marathon Scheduled for January 2026
The prestigious Mumbai Marathon, one of India's premier running events, is scheduled for January 2026. The marathon attracts elite international athletes and thousands of participants across various categories.
Exam Relevance: Major sporting events in India, athletics, and health awareness initiatives appear in general awareness sections.
Quick Revision Points for MCQ Preparation
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8th Pay Commission took effect from January 1, 2026, replacing the 7th Pay Commission.
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Credit bureaus now update credit scores weekly instead of every 15 days from January 1, 2026.
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Unique Farmer ID is mandatory in Uttar Pradesh for receiving PM-Kisan scheme payments from January 2026.
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RBI announced USD 22.30 billion liquidity infusion measures, including a USD 10 billion swap auction on January 13, 2026.
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Crans-Montana ski resort fire in Switzerland killed approximately 40 people on January 1, 2026.
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India became the fourth-largest economy with GDP of USD 4.18 trillion, surpassing Japan.
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Gujarat established IAIRO (Indian AI Research Organization) at GIFT City, Gandhinagar on January 1, 2026.
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Army Hospital, Delhi performed India's first 3D Flex Aqueous Angiography with iStent procedure.
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Bihar's Kaimur Wildlife Sanctuary proposed for Tiger Reserve status, awaiting NTCA clearance.
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National Sports Governance Act, 2025 provisions came into force from January 1, 2026.
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India Open Badminton tournament (BWF Super 750) scheduled from January 13-18, 2026 in Delhi.
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DRDO successfully tested Pralay missiles off Odisha coast in salvo launch mode.
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