7th August 2025

Explanation - The Defence Acquisition Council (DAC) is chaired by the Defence Minister and was indeed formed after the Group of Ministers recommendations on 'Reforming the National Security System' in 2001, following the Kargil War. However, the DAC decides on new policies and capital acquisitions not only for the three services (Army, Navy, and Air Force) but also for the Indian Coast Guard. The objective of the Defence Acquisition Council is to ensure expeditious procurement of the approved requirements of the Armed Forces by optimally utilising allocated budgetary resources. 

Explanation - The PAHAL scheme is India's Direct Benefit Transfer system for LPG subsidies where consumers pay full market price and receive subsidy amounts directly in their bank accounts. The scheme is not limited to BPL households but has income eligibility criteria - the combined taxable income of the applicant and spouse should not exceed ₹10,00,000 in the previous financial year. While Aadhaar linkage is preferred, there are alternative methods for non-Aadhaar consumers to receive subsidies through direct bank account linking. The primary objectives include ensuring transparency, eliminating fake/duplicate connections, and ensuring subsidies reach genuine consumers. 

Explanation - The South Asia Flash Flood Guidance System is operated by the India Meteorological Department (IMD), which acts as the regional centre covering Bhutan, Bangladesh, India, Nepal and Sri Lanka. The system provides flash flood guidance and forecasts with early warnings up to 36 hours in advance, and is designed to provide necessary information in real-time to support the development of warnings for flash floods about 6-12 hours in advance at the watershed level. 

Explanation - Statement 2 is incorrect. Flash floods are characterised by very fast rise and recession of flow of small volume and high discharge, which causes high damages because of suddenness. Flash floods can occur in both hilly and relatively flat regions, and are not limited to mountainous areas. They may be caused by heavy rain associated with severe thunderstorms, but can also occur due to dam failures, ice melting, or other factors, and can affect areas far downstream from the precipitation source. 

Explanation - The term "laundromat" originated from organised crime syndicates in the U.S. using laundromats as fronts to disguise illegal earnings. In financial terms, a laundromat refers to an all-purpose financial vehicle, often set up by banks or financial service companies, which facilitates laundering proceeds of crime. It does so by hiding asset ownership, embezzling funds, evading taxes, bypassing currency restrictions, and moving money offshore. These entities are used to obscure the true source and ownership of illicit funds under the guise of legitimate financial operations.