Economy · 24 Jul 2026

plurilateral agreements Marrakesh Agreement

With reference to India's currency management, consider the following statements:

  1. Polymer banknotes have a shorter lifespan than cotton-paper notes but cost less to manufacture.
  2. BRBNMPL's Expression of Interest for polymer substrates primarily targets high-value denominations such as Rs 500 notes.
  3. India's currency-to-GDP ratio has remained above 11 percent since bottoming out during the 2016-17 demonetisation period.
  4. UPI accounted for less than half of India's retail digital payments in FY2025-26.

How many of the above statements are correct?

A1 only
B2 only
C2 and 3 only
D1, 2 and 3

Tests the ability to distinguish plurilateral from multilateral agreements on a specific legal-procedural basis, rather than recognising only the general fact of India's opposition.

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This question is based on: Why the RBI Is Betting on Plastic Notes Even as UPI Crosses 24,000 Crore Transactions
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About this question

Why in news

During its 8th WTO Trade Policy Review in Geneva, India defended its opposition to incorporating plurilateral pacts like the IFD agreement and the Agreement on Electronic Commerce into the WTO's formal framework, citing Article X:9's consensus requirement.

Why for UPSC

WTO reform and India's trade diplomacy stance are increasingly tested in GS3 and the specific legal mechanics of plurilateral versus multilateral agreements is exactly the kind of "layer beneath the headline" UPSC probes.

Prelims summary

Plurilateral agreements under Annex 4 bind only signatories, not all 164 WTO members; Article X:9 requires consensus to add them to Annex 4; India remains the primary holdout against the IFD agreement, backed by 129 other members.

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