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Key Terms & Concepts — UPSC Mains

Fiduciary

GS3 GS2

"A person or institution legally and ethically obligated to act in another party's best interest; relating to such a re..."

Definition

A person or institution legally and ethically obligated to act in another party's best interest; relating to such a relationship of trust and responsibility.

⭐ Significance for UPSC

Use in GS3 Economy answers on banking regulation, corporate governance, and fiduciary duties of public sector enterprises. Also relevant in GS2 when discussing the state's fiduciary obligation to citizens in welfare delivery or natural resource management.

Example / Context
Bank boards have a fiduciary duty to depositors and shareholders, which is why the RBI can supersede a board that has acted against the interests of those it was entrusted to protect.
Mains GS Relevance
GS Paper 3
Economy, Environment, S&T, Security
GS Paper 2
Polity, Governance, IR, Social Justice
Subject
Economy Polity
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