Daily Current Affairs (DCA) 15 April, 2025

Daily Current Affairs Quiz
15 April, 2025

International Affairs

1. IMF Warns Against Tariffs

Context:

The International Monetary Fund (IMF) warns that geopolitical risk events including wars, terrorism, trade tensions, and military conflicts — pose a serious threat to global financial stability. These events can lead to significant stock market corrections and heightened volatility, potentially destabilizing the global financial system.

Research Insights from IMF Report:

• The IMF’s forthcoming Global Financial Stability Report reveals:
  • Geopolitical events can cause an average monthly decline of 1% in global stock markets.
  • Emerging markets are more vulnerable, with average declines of 2.5% per month.
  • Major conflicts, like Russia’s invasion of Ukraine (2022), result in average monthly drops of 5% — double the impact of other geopolitical events.

Increasing Global Risk Landscape:

• News-based risk indicators tracking conflicts, wars, terrorism, and trade restrictions have sharply increased since 2022.
• While the IMF did not explicitly name current geopolitical events, recent U.S. tariff policies and global tensions were indirectly referenced.

Recommendations to Financial Institutions:

• The IMF advises banks and financial institutions to:
  • Maintain adequate capital and liquidity buffers.
  • Conduct stress tests to assess resilience against geopolitical shocks.
  • Integrate geopolitical risk into broader risk management frameworks.

Conclusion: With geopolitical tensions on the rise, the IMF is sounding the alarm on the potential economic and market disruptions they may cause. Institutional preparedness through robust risk management and capital adequacy is vital for ensuring financial system stability.

BS

National Affairs

1. RTI Act Undermined

Context:

The Right to Information (RTI) Act, passed in 2005, has been instrumental in enhancing transparency and accountability in governance. Over the years, it has empowered citizens to access crucial government information, often exposing corruption, misgovernance, and misuse of power.

Emerging Threat

• A controversial amendment to Section 8(1)(j) of the RTI Act has been introduced through Section 44(3) of the Digital Personal Data Protection (DPDP) Act, 2023.
• The DPDP Act stems from the K.S. Puttaswamy judgment (2017), which affirmed the right to privacy as a fundamental right under Article 21 of the Constitution.

Key Changes and Implications

• Current RTI Provision (Section 8(1)(j)):
  • Allows withholding of “personal information” if it doesn’t serve public interest or constitutes an unwarranted invasion of privacy.
  • Contains a safeguard clause, allowing disclosure if public interest outweighs privacy concerns.
• Amendment via DPDP Act:
  • Enables withholding of all “personal information” without any provision for public interest exceptions.
  • Removes key safeguard that empowered RTI authorities to weigh transparency against privacy.

Concerns Raised

• Vague Definition: “Personal information” is not clearly defined in Section 44(3), leaving room for broad and arbitrary denial of RTI requests.
• Risk of Abuse:
  • Could block access to important public records — e.g., educational qualifications, caste certificates — which have been used to expose fraud in public service.
  • Undermines public accountability by classifying previously accessible data as private.
• Misuse Argument Rejected:
  • Union Minister Ashwini Vaishnaw defended the move as preventing “misuse” and balancing privacy with transparency.
  • However, civil society groups and activists argue the RTI Act already provides this balance and the amendment is redundant and harmful.

Call to Action

• The amendment contradicts the spirit of the RTI Act and the intent of the K.S. Puttaswamy ruling.
• Transparency advocates demand that the government revoke Section 44(3) of the DPDP Act and restore the public interest safeguard in RTI provisions.
• Failure to act could result in a regression in democratic accountability and weaken citizen oversight of public institutions.

TH

2. Kancha Gachibowli and the Urban Blind Spot

Context:

Urban sustainability is often treated as an abstract ideal rather than a concrete priority. Much like a physiological blind spot, it’s present but seldom acknowledged — filled in by political rhetoric or short-term economic fixes. The ongoing dispute over 400 acres of land in Kancha Gachibowli, Hyderabad reveals the stark absence of long-term environmental foresight in India’s urban planning.

The Conflict: Legal Ownership vs Ecological Legitimacy

• Stakeholders: Telangana State Government, University of Hyderabad, students, activists, and political entities.
• The Issue: While the state holds legal title, the meaning and future of the land remain fiercely contested.
• Government View: The land is an asset to be monetized for urban growth and job creation.
• Public Opposition: Sees the land as an ecological refuge, community space, and a vital urban lung.

Ecological Importance of Kancha Gachibowli

• Biodiversity hotspot: Home to seasonal water bodies, vulnerable species, and rock formations.
• Carbon sink: Contributes to regulating urban temperatures and counteracting air pollution.
• Hydrological significance: Affects local water security and flood mitigation in a rapidly urbanizing zone.

The Deeper Problem: Sustainability as Rhetoric

• Urban Policy Failures: Despite references to “sustainability” in national and state master plans, ecological concerns are often bypassed for commercial opportunity.
• Lack of Legal Guardrails: Existing environmental laws do not impose accountability on the government’s use of ecologically sensitive land.
• Tokenism in Environmental Review: Environmental Impact Assessments (EIAs) are either superficial or entirely absent.

Silencing of Dissent and Loss of Democratic Space

• Student protests: Peaceful activism is being met with suppression and force.
• Ongoing excavation: Despite protests, land-clearing continues, symbolizing the State’s disregard for public engagement and environmental ethics.

A City Saturated with Alternatives

• Hyderabad already has underutilized commercial real estate, making this land auction not only environmentally reckless but economically irrational.

Core Insight: Land as Commons, Not Commodity

• The Kancha Gachibowli case is not about ownership alone — it’s about vision, values, and civic stewardship.
• Treating land purely as a revenue-generating asset undermines long-term urban resilience.

A Call for Ecological Leadership

• Hyderabad’s crisis is emblematic of a broader institutional failure — a governance blind spot where sustainability is subordinated to short-term gains.
• What’s needed: Leadership rooted in ecological wisdom, democratic accountability, and inclusive urban planning.
• Land is not just space — it’s the optic nerve of our cities. And unless we address this blind spot, we risk building cities that are economically vibrant but ecologically unlivable.

TH

3. Gaganyaan Safety Protocols

Context:

As ISRO gears up for Gaganyaan, India’s first human spaceflight mission, it is meticulously designing safety protocols across all mission phases. Drawing on past incidents and global best practices, ISRO aims to ensure crew safety during launch, orbit, and reentry the three most critical phases of spaceflight.

Launch Phase: Comprehensive Escape Mechanisms

Pre-Launch Safety at the Launchpad

• Inspired by the Apollo-1 tragedy (1967), ISRO has equipped its Sriharikota SHAR launchpad with:
  • Ziplines for quick evacuation
  • Fireproof bubble lift to protect and transport astronauts

Crew Escape System (CES) After Ignition

• The human-rated LVM3 rocket will include a tractor-type CES mounted atop the crew module.
• Solid-fuel escape tower pulls the crew module away in emergencies, unlike SpaceX’s pusher-type system.
• Designed to operate at multiple altitudes using:
  • Low-altitude Escape Motor (LEM)
  • High-altitude Escape Motor (HEM)

2. Orbit Phase: Onboard Support and Contingency Protocols

Capsule Design

• Gaganyaan uses a two-part capsule:
  • Crew Module: Living quarters
  • Service Module: Engines, fuel, propulsion, and control

In-Orbit Safety Measures

• Propulsion support for mid-orbit escape
• Thrusters coordinate a controlled reentry if evacuation is required
• Service module detaches post-mission

ISS Docking Procedures (Though Gaganyaan won’t dock)

• Crew is trained for emergency docking protocols:
  • Docked capsule serves as a lifeboat (as during NASA’s Starliner malfunction)
  • Safe refuge zones within space stations are used during fire, collision, or radiation events

Gaganyaan’s safety infrastructure reflects a deep commitment to astronaut well-being and mission resilience, drawing from over half a century of spaceflight learnings. From emergency escape systems to parachute-based reentry control, ISRO’s human spaceflight program is blending global insight with indigenous innovation.

TH

4. Archaeological Survey of India (ASI) Explores Dwarka

Context:

The Archaeological Survey of India (ASI) is leading an effort to uncover the ancient history of Dwarka, a key location in India’s cultural heritage. ASI’s Underwater Archaeology Wing has conducted expeditions in Dwarka and Beyt Dwarka, Gujarat, to document submerged archaeological remains and determine the antiquity of recovered objects through scientific analysis.

Dwarka

Dwarka is an ancient city in the northwestern Indian state of Gujarat. It’s known as a Hindu pilgrimage site. The ancient Dwarkadhish Temple has an elaborately tiered main shrine, a carved entrance and a black-marble idol of Lord Krishna.

Key Areas of Focus

• Beyt Dwarka
  • Known as the dwelling place of Lord Krishna, it is home to the Dwarkadhish Temple.
  • ASI’s team is exploring submerged sites to gain insights into Dwarka’s ancient history.
• Gomati Creek
  • A five-member ASI team conducted fieldwork in February on the eastern side of Dwarka to inspect previously explored areas and identify new investigation sites.

Historical Significance of Dwarka

• Dwarka is a historically and culturally significant city mentioned in ancient literature and is a major subject of archaeological research.
• ASI has continuously explored Dwarka’s importance, contributing to India’s rich cultural history.

Past Discoveries

• 2005-2007 Excavations
  • The ASI’s Underwater Archaeology Wing carried out onshore and offshore investigations in Dwarka, revealing ancient sculptures, stone anchors, and other significant artifacts.
  • Excavations were conducted in a limited underwater area, with systematic dives revealing submerged remains coated with vegetation and calcareous deposits.
• 2007 Excavation
  • A focused excavation near the northern gate of the Dwarkadhish Temple uncovered 26 layers of deposits, revealing iron objects, beads, copper objects, and pottery.
  • The pottery and other findings were studied thoroughly to understand their historical significance.

Current and Future Plans

• Expanded Study
  • ASI is now focusing on an expanded study in Okhamandal city, aiming to identify new potential sites and conduct further archaeological explorations.
  • The study will include diving operations, documentation, and scientific analysis of newly discovered remains.

TH

5. Parliamentary Panel Seeks CCI’s Response on Safeguarding Small Retailers

Context:

The Parliamentary Standing Committee on Commerce, led by TMC MP Dola Sen, has asked the Competition Commission of India (CCI) to provide a detailed response on its regulatory actions to protect small retailers who reportedly make up 20% of India’s population amid rising concerns about unfair trade practices by dominant players in e-commerce and quick commerce sectors.

Key Focus Areas for CCI

• Safeguarding Small Retailers:
  • Allegations of deep discounts, exclusive supply agreements, and market distortion by major quick commerce platforms such as Blinkit, Zepto, and Instamart.
  • Emphasis on maintaining a level playing field to prevent marginalisation of small retailers.
• Digital Competition Law:
  • Status update sought on the proposed Digital Competition Bill.
  • Government is taking a cautious, consultative approach, studying best practices from the EU, Japan, and Australia to contextualize the law for India’s digital economy.
• Oversight of Quick Commerce Boom:
  • Committee looking at regulatory frameworks to manage exponential growth in quick commerce.
  • Panel considers retail-related implications crucial to the broader “Doing Business in India” reform effort.
• Recent Complaint & Investigations:
  • The All India Consumer Products Distributors Federation filed a complaint in March 2025 alleging anti-competitive practices by quick commerce giants.
  • Claims include predatory pricing and restrictive trade arrangements affecting competition in FMCG and grocery retail.

Legislative Context:

• Competition Amendment Act, 2023:
  • CCI to brief the committee on implications of new provisions, including:
    • Penalty calculation on global turnover
    • Addressing hub-and-spoke cartel formations
• CCI’s Stance:
  • In its FY2023–24 report, the antitrust body stated that it would intervene only when sector-specific analysis and policy implications justify such actions.

The standing committee’s proactive stance reflects increasing pressure on regulatory authorities to tackle market concentration and ensure inclusive growth in the digital economy. The outcome of this interaction with CCI could influence future competition law reforms, particularly in India’s booming online retail landscape.

BS

6. PM Vidyalaxmi Scheme

Context:

Despite its goal to support meritorious students from low- and middle-income families through financial aid for higher education, the PM Vidyalaxmi Scheme is witnessing low application clearance rates, with 76% of applications still pending. Public Sector Banks (PSBs) have raised serious concerns over technical and operational hurdles impeding the scheme’s rollout.

Key Issues Identified by PSBs:

1. Technical Challenges:

• Login failures due to server-level errors
• Frequent auto-logouts from the portal
• Incomplete migration of old leads to the new platform, obstructing tracking of historical applications
• Lack of comprehensive MIS (Management Information System) data access for better reporting and monitoring

2. Operational Limitations:

• No provision to download detailed application data
• Inability to track earlier submissions or progress

3. Application Processing Concerns:

• PSBs advised to reduce turnaround time (TAT) for processing to 3–5 days
• Banks instructed to allow application rectification instead of outright rejections due to minor errors
• Students may now submit college-issued certificates instead of freshly validated documents

Loan & Subsidy Features:

• Collateral-free and guarantor-free loans up to ₹7.5 lakh, backed by 75% credit guarantee
• 3% interest subvention for families earning up to ₹8 lakh/year
• Full interest subsidy for students from families with annual income up to ₹4.5 lakh under the PMUSP CSIS scheme

Current Performance (As on April 1, 2025):

• Total applications received: 2,963
  • Pending: 76%
  • Sanctioned: 20%
  • Rejected: 4%

Next Steps Suggested by the Finance Ministry:

• Awareness campaigns to boost outreach and trust
• Clear timelines on the portal for transparency
• Flexible documentation norms to ease student burdens

The PM Vidyalaxmi scheme has strong potential to democratize access to higher education financing in India. However, technical failures and process inefficiencies are currently hindering its success. With the government’s renewed push and corrective action from PSBs, the scheme could soon meet its goals—provided operational and digital infrastructure is promptly improved.

BS

7. 10 Years of PM Mudra Yojana

Context:

The Pradhan Mantri Mudra Yojana (PMMY) has emerged as a cornerstone of India’s financial inclusion and MSME development strategy. As it completes a decade, the scheme is being hailed for its transformative role in enhancing credit access, particularly for first-generation entrepreneurs, women, and marginalized communities.

Key Contributions of MSMEs in Indian Economy:

• Accounted for 30.1% of Gross Value Added (GVA) in FY 2022–23
• Contributed 45.79% to total exports in FY 2024–25
• Long-standing credit challenges addressed through India Stack and government-backed schemes like PMMY

Performance of PM Mudra Yojana:

• ₹5.32 trillion disbursed in FY24 (₹4.8 trillion disbursed by Feb 2025)
• Average loan size: ₹102,870 in FY25
• Loan category-wise share:
  • Kishore (₹50,001–₹5 lakh): 51% of total disbursements
  • Tarun (₹5 lakh–₹10 lakh): 29.1%
  • Shishu (Up to ₹50,000): Smaller share, but foundational
  • New Addition: Tarun Plus (₹10–₹20 lakh)

Unique Features of PMMY:

• Categorization based on business stage: Shishu, Kishore, Tarun, and Tarun Plus
• Collateral-free, security-light lending model
• Focus on cash-flow-based lending instead of traditional asset-based models
• Integration with Udyam Mitra portal enables online loan application
• Backed by MUDRA refinancing to ensure liquidity and credit flow

Impact Statistics (Cumulative):

• 520 million loans disbursed, totaling ₹33.19 trillion
• 260 million loans (50%) given to SC/ST/OBC beneficiaries
• 69% of loan accounts held by women entrepreneurs
• 5.7 crore loans availed by minority communities

SBI’s Role in PMMY:

• 17.2 million loans sanctioned, with total value exceeding ₹3 trillion
• Launch of MUDRABRE digital decisioning model via Jansamarth platform
• Emphasis on digitization, paperless processing, and quick approvals
• Strong network and credit expertise aiding scale-up of small businesses

Broader Economic & Social Impact:

• Catalyzed entrepreneurial culture across rural and urban India
• Helped unlock manufacturing and agri-allied potential
• Empowered traditionally excluded segments and promoted inclusive growth
• Supported India’s vision of a Viksit Bharat (Developed India)

Forward Path:

• Recognize achievements of the last decade
• Improve agility, efficiency, and inclusivity in the next phase
• Leverage learnings to enhance MSME resilience and economic contribution

The PM Mudra Yojana has significantly altered the financial landscape for India’s small businesses. With enhanced digital integration, targeted social outreach, and an inclusive financing model, it continues to act as a catalyst for grassroots entrepreneurship and economic self-reliance.

PIB

Science & Tech

1. Silicon Photonics

Silicon

Silicon is a tetravalent metalloid and it is less reactive than its chemical analogue carbon. It is the second (after oxygen) most abundant element in the Earth’s crust, making up 25.7% of it by weight. Elemental silicon is not found in nature.

Silicon photonics

Silicon photonics is a technology that leverages silicon, a semiconductor material, to create photonic integrated circuits (PICs) for applications like high-speed data transfer and optical communication. It utilizes standard complementary metal-oxide-semiconductor (CMOS) manufacturing processes to fabricate photonic components on a silicon substrate. 

Why Silicon Photonics Matters

• Silicon chips revolutionized global communications and remain core to modern information technologies.
• Traditional chips rely on electrons, but silicon photonics now uses photons (light particles) to transmit and manipulate data, offering faster speeds and greater energy efficiency.
• Key applications include data centers, sensors, and quantum computing.

The Problem with Photons on Silicon Chips

• Photons carry more data at faster speeds with lower energy loss than electrons.
• The challenge: integrating a light source (laser) directly onto a silicon chip, since silicon cannot emit light efficiently due to its indirect bandgap.
• Current workarounds involve attaching external lasers, which are slower, less efficient, and costlier.

Major Advancement: On-Chip Laser Fabrication

• A collaborative US-European team published in Nature a new method to “grow” lasers directly on silicon wafers.
• First successful demonstration of monolithic (fully integrated) lasers on a 300-mm silicon wafer.
• Achieved using CMOS-compatible manufacturing, enabling potential mass production using existing fabrication lines.

How the Laser Chip Was Made

• Researchers used nanoscale trenches on the silicon wafer to trap material defects, a strategy inspired by a 2007 study.
• Deposited layers:
  • Gallium arsenide (GaAs) in trenches to trap defects
  • Indium gallium arsenide (InGaAs) for light emission
  • Indium gallium phosphide as a protective cap
• Added electrical contacts to activate the laser using just 5 mA current (comparable to a mouse LED).
• Output power: ~1 milliwatt
• Light wavelength: 1,020 nm – ideal for short-range chip-to-chip communication.

Performance and Reliability

• Achieved integration of 300 functional lasers on a single industry-standard wafer.
• Continuous operation:
  • 500 hours at room temperature (25°C)
  • Efficiency drops at 55°C, whereas industry aims for stable operation up to 120°C
• Indicates future challenges in thermal stability despite the innovation.

Implications and Future Potential

• Significant boost in performance for data centers and computer systems.
• Could reduce energy usage, improve bandwidth, and enable faster interconnects between chips.
• Offers a scalable, low-cost solution to integrate photonic lasers with standard silicon chips.
• Represents a long-awaited solution to the integration bottleneck in photonics.

This is the first demonstration of a fully integrated photonic laser on a silicon wafer at industry scale. It marks a turning point in photon-based computing, paving the way for faster, cooler, and more efficient communication technologies in future electronics.

TH

Banking/Finance

1. Repo Rate Cut 2025

Background

• In response to the Reserve Bank of India‘s 50 basis points reduction in the repo rate, leading Indian banks have revised their lending and deposit interest rates.
• These changes are effective mid-April 2025 and mark the first major rate realignment in several years.

Lending Rate Reductions

• State Bank of India (SBI)
  • Repo rate-linked lending rate: Cut by 25 basis points to 8.25%
  • External benchmark lending rate (EBLR): Reduced to 8.65%
  • Effective from: April 15, 2025
• Bank of Maharashtra
  • External benchmark rate: Reduced to 8.65%
• Bank of India
  • Home loan rate: Cut by 25 basis points to 7.9%

Deposit Rate Reductions

• SBI Fixed Deposit (FD) Rates for Senior Citizens
  • 1–2 years: Reduced from 7.3% to 7.2%
  • 2–3 years: Reduced from 7.5% to 7.4%
  • Effective from: April 15, 2025
• Bank of India FD Rates (< ₹3 crore)
  • 91–179 days: 4.25%
  • 180 days–<1 year: 5.75%
  • 1 year: 7.05%
  • 1–2 years: 6.75%
• Bank of India FD Rates (₹3 crore–<₹10 crore)
  • 91–179 days: 5.75%
  • 180–210 days: 6.25%
  • 211 days–<1 year: 6.50%
  • Special 400-day scheme offering 7.3%: Withdrawn
• HDFC Bank Savings Deposit Rates
  • < ₹50 lakh: Reduced to 2.75%
  • ≥ ₹50 lakh: Reduced to 3.25%
  • Effective from: April 12, 2025
  • First rate cut in nearly three years

Implications

• Borrowers may benefit from lower EMIs for home and personal loans
• Senior citizens and savers may see reduced returns on fixed deposits
• Reflects a shift toward a more accommodative monetary policy to spur economic activity

TH

2. Deposit Rate Cuts in Current RBI Easing Cycle Likely to Be Moderate

Context:

The ongoing monetary easing cycle by the Reserve Bank of India (RBI) is expected to lead to modest deposit rate cuts, unlike the sharper declines witnessed in the previous cycle. Several macro-financial and regulatory factors are limiting banks’ ability to pass on rate cuts aggressively.

Key Highlights:

Current vs. Previous Easing Cycle:

• Current cycle repo rate cut (so far): 50 basis points (bps) — 25 bps each in February and April 2025.
• Expected cut: Around 100 bps, compared to 250 bps in the 2019–2022 easing cycle.
• In the previous cycle, term deposit rates fell by 209 bps (retail) and 259 bps (bulk+retail).

Factors Limiting Further Deposit Rate Cuts:

• High Credit-Deposit (CD) Ratios: Still above 80%, limiting liquidity flexibility.
• Revised LCR Norms: Delayed by a year, but banks are preparing for compliance.
• Potential Increase in Deposit Insurance Coverage: Expected to raise cost of funds and restrict deposit repricing.
• Demographic Composition: A large share of deposits comes from middle-aged and senior citizens, requiring rate stability.

Transmission Remains Gradual:

• Banks have been slow to transmit repo cuts due to liquidity deficit and competition for deposits.
• Deposit rate cuts implemented so far:
  • SBI: 10 bps
  • Bank of India: 25 bps
  • Kotak Mahindra Bank: 15 bps
  • Canara Bank: up to 20 bps
  • HDFC Bank: 35–40 bps on FDs
  • Yes Bank: up to 25 bps

Consumer Behavior and Deposit Trends:

• Customers are increasingly locking into short- to mid-term fixed deposits expecting future rate declines.
• Migration from savings accounts to FDs is occurring for better yields.
• Higher FD rates for 1–3 year tenures are currently more attractive, especially for senior citizens.

Despite the RBI’s dovish stance and gradual repo rate cuts, banks are cautiously revising deposit rates, balancing between regulatory obligations and the need to retain depositors. As monetary easing progresses, incremental cuts may continue, but aggressive reductions appear unlikely.

TH

3. State Bank of India Cuts Interest Rates on Special Deposit Scheme and Loans

1. Special Deposit Scheme – Amrit Vrishti

• Revised Interest Rate: 7.05% (down by 20 basis points from 7.25%)
• Tenure: 444 days
• Effective Date: April 15, 2025
• Senior Citizens: 7.55%
• Super Senior Citizens (above 80 years): 7.65%
• Previous Rate: Launched in July 2024 at 7.25% for a limited period
• Context: Follows RBI’s second repo rate cut of 25 bps in 2025

2. Regular Retail Fixed Deposits

• Highest Interest Rate Offered: 6.90%
• Comparative Special Rates: Still more attractive than regular FD offerings

3. Lending Rate Revisions

• External Benchmark Linked Rate (EBLR):
  • Old: 8.90%
  • New: 8.65%
• Repo-Linked Lending Rate (RLLR):
  • Old: 8.50%
  • New: 8.25%
• Marginal Cost of Funds Based Lending Rate (MCLR):
  • Status: Unchanged (ranges from 8.20% to 9.10%)

4. Strategic Context and Trends

• Banking Liquidity: Surplus liquidity conditions in the system
• RBI Policy Support: Repo rate cut aimed at boosting liquidity and credit flow
• Retail Deposit Mobilization: SBI and other banks introduced higher-rate special schemes in FY25 amid lagging deposit growth and high credit demand
• Previous Special Scheme: SBI’s 400-day FD at 7.10% was launched in April 2023 and valid until March 31, 2024

TET

4. SBI Approves Restructuring Plan for RINL, Catalyzing Revival of Vizag Steel Plant

Context:

Directors of the State Bank of India (SBI) board have okayed a restructuring package for Vizag’s Rashtriya Ispat Nigam (RINL), paving the way for similar moves by other public-sector lenders and marking a milestone in the company’s turnaround initiatives.

Overview of the Restructuring Package

• Approval: SBI board clears loan restructuring for Rashtriya Ispat Nigam Ltd (RINL)
• Lead Role: SBI becomes the lead lender, taking over from Union Bank of India
• Purpose: Revive operations of RINL’s 7.5 MTPA steel plant in Visakhapatnam, Andhra Pradesh

Key Features of the Restructuring Plan

• Interest Rate Reduction: From 14–15% to below 9%
• Lower Margin Money Requirement: Eases access to working capital
• Plan Prepared By: SBI Capital Markets

Financial Context and Support

• Total Banking Exposure: ₹20,000+ crore
  • SBI’s Exposure: ₹6,400 crore
• Government Bailout Package: ₹11,440 crore
  • Equity Infusion: ₹10,300 crore approved by the Union Cabinet
  • Funds Received: ₹6,000+ crore already infused
  • Balance Tranches: To be released during 2025
• Improved Repayment Profile: RINL is now a standard account, with repayments ahead of schedule

Implications for Banking Sector and RINL

• Positive Signal to Other PSBs: With SBI’s approval, other government banks expected to follow suit
• Turnaround Milestone: Crucial step towards financial viability and profitability of RINL
• NPA Avoidance: The company was on the verge of NPA classification in June 2024
• Enhanced Borrowing Capacity: Relaxation in terms improves liquidity for operations

Strategic Importance

• Policy Shift: Reflects a coordinated approach between government and banks to revive strategic PSUs
• Industry Impact: Sets precedent for revival of other financially stressed public-sector industrial firms

TET

5. Banks Seek Authority to Freeze Mule Accounts

Context:

Banks are seeking the authority to freeze accounts involved in channelling illicit transactions without needing approval from law enforcement agencies (LEAs) or the court. Currently, banks can freeze accounts based on internal triggers, but under the Prevention of Money Laundering Act (PMLA), they lack the power to block accounts without proper legal authorization.

Mule Accounts and Their Role in Cyber Fraud

• Mule Accounts: Fraudsters use these accounts to move illegal funds through the banking system, making it harder for law enforcement to trace the money.
• Challenge: Despite freezing thousands of mule accounts each year, fraudsters create new accounts rapidly, exploiting systemic loopholes.

Proposed Solutions to Tackle Mule Accounts

• Account Verification: Banks are encouraged to verify and restrict accounts that are vulnerable to misuse as mule accounts.
• Use of Technology: A technology-driven approach is suggested, with AI and machine learning (ML) integrated into transaction monitoring systems to anticipate and prevent criminal strategies.

Additional Measures

• Election Commission Database: Banks propose using this database to verify voter ID cards and Form 60 in place of PAN cards for individuals opening new accounts.
• Transaction Capping: Limiting the number of transactions on accounts that lack permanent verification (such as PAN) to mitigate fraud risk.

Collaboration and Investment

• The proposal highlights the importance of investment in technology, staff training, and collaboration among banks, regulators, LEAs, and technology providers to curb the threat of mule accounts.

Future Outlook

• The implementation of these measures, detailed in a working group report by the Indian Banks’ Association, would significantly bolster efforts to protect the financial system and prevent cyber fraud.

BS

6. IRDAI Imposes ₹1.06 Crore Penalty on Flipkart for Violating Insurance E-commerce Norms

Overview of Violations

• Total Penalty: ₹1.06 crore
• Reason for Penalty: Flipkart violated Insurance E-commerce Guidelines, 2017, and Corporate Agent Regulations, according to the Insurance Regulatory and Development Authority of India (IRDAI).

Specific Violations

• Insurance E-commerce Guidelines Violation:
  • Violation of ISNP Certification: Flipkart’s Insurance Self-Network Platform (ISNP) was certified to allow direct solicitation of insurance policies from insurers. However, a regulatory review showed that when users clicked on the “buy insurance” button on Flipkart’s platform, they were redirected to an insurance intermediary’s webpage, which was unauthorized.
  • Penalty Imposed: ₹1 crore for this breach, as it was deemed an unauthorized method of insurance solicitation.
  • Flipkart’s Defense: The company argued that it only provided advertising space and did not have any intermediary agreements.
• Sale of Policies Without Valid Registration:
  • Selling Insurance Without a Valid CoR: Flipkart continued selling insurance policies after applying for the renewal of its Certificate of Registration (CoR), violating regulatory norms.
  • Penalty Imposed: ₹6 lakh for the sale of insurance policies without valid certification.

Regulatory Findings

• Redirection Issue: IRDAI highlighted that the redirection to another intermediary’s site was not merely an advertisement but a violation of solicitation rules.
• Impact of Violation: Flipkart ceased redirection once the issue was raised by IRDAI but had already sold a significant number of policies during a brief span.

Additional Concerns

• Walmart-Backed Flipkart: The company was also flagged for procuring approximately 70,000 policies via a single specified person, raising concerns about compliance with insurance regulations.
• Corporate Governance Issues: Flipkart, which is majority-owned by Walmart, faced criticism for not submitting a required undertaking for related party transactions and failing to have the majority of directors as resident Indian citizens. However, due to remedial actions, no charges were pressed for this violation.

Regulatory Actions and Next Steps

• Payment Deadline: Flipkart has been directed to remit the ₹1.06 crore penalty within 45 days.
• Board Notification: The company must inform its Board of Directors about the penalty.
• Option to Appeal: Flipkart can appeal the decision before the Securities Appellate Tribunal.

Company’s Response

• Statement: A Flipkart spokesperson emphasized the company’s commitment to regulatory compliance and governance standards and stated that they are reviewing the order’s contents.

TH

7. NPCI Disables QR Share and Pay-Based International UPI Transactions for P2M

Key Announcement

• Date of Circular: April 8, 2025
• Effective Date: April 4, 2025
• Issued By: National Payments Corporation of India (NPCI)
• Subject: Disabling QR Share & Pay-Based International UPI Transactions for Person-to-Merchant (P2M)

Details of the Circular

• Scope of Disabling: The circular specifically addresses the QR Share & Pay mechanism for international UPI transactions under the P2M (Person to Merchant) category.
• Implication: All international UPI P2M transactions using the QR Share and Pay feature have been disabled effective from April 4, 2025.
• Payer PSP Role: The Payer’s Payment Service Provider (PSP) is now required to ensure that the Payer’s UPI app can identify and reject such transactions.

Reason for the Change

• Objective: The move aims to ensure compliance and streamline the UPI ecosystem for international transactions, improving security and regulatory adherence for cross-border payments.

P2M

P2M stands for Person to Merchant. It refers to digital payments made by individuals to businesses or merchants, often through platforms like UPI (Unified Payments Interface) or other mobile payment applications. These payments are typically for purchases of goods and services, or to pay for utilities, bills, etc. 

• Digital Payments:P2M transactions are a key part of the broader movement towards digital payments and cashless economies. 
• UPI (Unified Payments Interface):UPI is a popular platform in India used for P2M payments, allowing users to transfer money directly from their bank accounts to merchants. 

Next Steps for Stakeholders

• Payer PSPs are advised to ensure that their systems are updated to reflect this change, preventing unauthorized international UPI P2M transactions via QR codes.

Impact on Users and Merchants

• Users: Customers engaging in international P2M transactions using the QR Share & Pay feature will no longer be able to proceed with such payments.
• Merchants: Merchants relying on this method for receiving payments from international users will need to explore alternative payment methods.

TET

Economy

1. Wealthy Indians under-reporting their income to avoid taxes: study

Context:

A paper studying national accounts and sampling asset disclosures by Lok Sabha MPs found rich Indians are likely under-reporting their income, raising the possibility that income inequality in India is starker than previous studies may have indicated. The paper by Delhi School of Economics director Ram Singh finds that “the wealthier a household is, the smaller the income it reports relative to its wealth”.

Key Findings

• Inverse Relationship Between Wealth and Reported Income
  • The study reveals a systematic under-reporting of income among India’s affluent households.
  • For every 1% rise in wealth, there’s an estimated 0.6% drop in the reported income-to-wealth ratio.
• Disparities Amplify Among the Ultra-Rich
  • India’s richest households (e.g., those listed in Forbes 2021) report incomes as low as 1/12th of their total wealth.
  • This raises strong indicators of income concealment to minimize tax liabilities.
• Asset Type Matters
  • Equity ownership shows a positive correlation between wealth and income.
  • Agricultural land and commercial property ownership show anomalous trends — with declining income-wealth ratios, despite these typically yielding higher returns.
  • Points to potential under-reporting of rental and farm incomes and exploitation of agriculture income tax exemptions.

Taxation and Policy Implications

• The findings expose a regressive tax regime in India:
  • As individual wealth rises, effective income tax rates decline.
  • Calls attention to structural tax loopholes, especially around agricultural income and property-based revenue.

Political Disclosures as a Microcosm

• Lok Sabha MP affidavits were examined for cross-verification.
  • Wealthy candidates showed similar trends of income under-reporting.
  • Notably, candidates with higher vote shares disclosed more accurate income-wealth ratios, suggesting that media and public scrutiny improve financial transparency.

Recommendations

• The study challenges conventional assessments of inequality by highlighting severe under-reporting among the elite.
• Recommends:
  • Stronger enforcement of income disclosure norms
  • Policy reforms targeting asset-based income streams
  • Greater transparency and audits for high-wealth individuals
  • Rethinking agricultural income exemptions to curb misuse

India’s real income inequality may be substantially greater than current data suggests. To bridge this gap, policymakers must target systemic income under-reporting and implement robust tax and disclosure frameworks that reflect the nation’s evolving economic realities.

TH

Agriculture

1. How Non-Farm Jobs Boost Labour Efficiency Among Indian Farmers

Context:

A new study reveals that land-holding farmers who engage in non-farm activities show improved labour efficiency on their farms. Conducted by researchers from NLSIU-Bengaluru and IIT-Madras, the study explores the positive effects of multiple job holding and rural migration on agricultural productivity in India.

Key Findings

• Data Source:
  • Drawn from ICRISAT’s Village Dynamics in South Asia (2010–2014)
  • Covered States: Odisha, Maharashtra, Telangana, Andhra Pradesh, Bihar, Jharkhand, Karnataka, Madhya Pradesh
• Methodology:
  • Used Data Envelopment Analysis to evaluate labour use efficiency across farm operators
  • Measured efficiency without needing to observe exact work methods
• Main Observations:
  • Farmers who engage in non-farming jobs or migrate often return with new agricultural knowledge
  • Time-use optimization observed—farm work handled by family or hired labour while farmers pursue off-farm work
  • Diversified income helps invest in new technology and efficient practices
• Key Benefits of Multiple Job Holding:
  • Enhanced labour productivity on return
  • Reduced idle time between farming seasons
  • Exposure to modern techniques and tools from other regions
  • Opportunity to manage risks from climate change and price fluctuations

Policy Recommendations

• Promote structured non-farm employment in rural regions
• Ease credit constraints for small farmers to start secondary occupations
• Recognize migration as a skill-building mechanism, not just an economic fallback

This study makes a compelling case for integrating non-farm employment into rural development policy. Supporting farmers’ entrepreneurial ventures beyond agriculture could significantly boost farm labour efficiency and resilience.

TH

2. India Sets New 30% Ethanol Blending Target by 2030

Context:

India is preparing to raise its ethanol blending target in petrol to 30% by 2030, after successfully achieving 20% blending in March 2025, well ahead of the original 2030 timeline. The previous target of 20% was advanced to the 2024–25 ethanol supply year, which runs from November 1 to October 31.

Key Highlights:

Timeline of Ethanol Blending Progress:

• 2022–23: 12.06% average blending
• 2023–24: 14.6% average blending
• By March 2025: 20% achieved (nationwide)
• New Goal: 30% blending by 2030

Economic & Environmental Impact:

• ₹1.2 trillion saved in foreign exchange over the past 10 years
• 19.3 million metric tonnes of crude oil substituted
• ₹1.04 trillion paid to farmers
• 62.6 million metric tonnes of carbon emissions avoided

Industry Initiatives & Future Plans:

• Significant investments by sugar mills in ethanol distilleries
• ISMA urges government to expand availability of E100 fuel (pure ethanol)
• Ethanol-blended petrol now available at all OMC retail outlets, up from 27,900 in 2014

Government Strategy:

• Inter ministerial consensus achieved on the 30% blending target
• Ongoing debate on whether to implement the target through a staggered or direct approach

India’s accelerated ethanol blending achievements have delivered significant economic, environmental, and rural development benefits. With the groundwork laid and capacity expanded, the country is well-positioned to meet its ambitious 30% ethanol blending target by 2030, further reducing reliance on imported fossil fuels and supporting a more sustainable bioenergy future.

BS

3. Empowering India’s Agrifood Processing MSMEs through Fintech Solutions

Introduction to Agrifood Processing MSMEs

• Sector Overview: Agrifood processing MSMEs play a pivotal role in India’s food value chain, transforming raw produce into market-ready goods, enhancing nutritional value, and reducing post-harvest wastage.
• Growth Trajectory: These enterprises have grown at an impressive Annual Average Growth Rate (AAGR) of 7.26% over the past seven years, contributing significantly to India’s GDP, employment, and exports.

Financial Challenges Hindering Growth

• Access to Credit: Agrifood MSMEs face significant barriers in accessing timely and affordable credit. Traditional banks consider these businesses high-risk due to seasonal business cycles and inconsistent cash flows.
• RBI Mandate: Although the RBI mandates banks to provide 7.5% of their Adjusted Net Bank Credit (ANBC) to MSMEs under Priority Sector Lending (PSL), issues like lack of proper documentation and geographical barriers make it difficult for banks to achieve this target.
• Liquidity Issues: Delays in payments from larger buyers and reliance on informal credit sources at high-interest rates exacerbate liquidity problems for MSMEs.

Fintech’s Role in Overcoming Financial Constraints

• Digital Lending: Fintech-driven digital lending platforms are revolutionizing credit access by offering collateral-free loans and using alternative data points such as transaction records and cash flow history to assess creditworthiness.
• Faster Loan Processing: These platforms simplify the documentation process and offer quicker turnaround times, helping MSMEs secure funding and enabling banks to meet PSL targets.

Streamlining Financial Operations with Embedded Finance

• Automated Transactions: Embedded finance integrates banking and payment functionalities directly into business operations, facilitating automated invoicing, seamless payment processing, and real-time cash flow management.
• Invoice Discounting and Supply Chain Financing: Fintech platforms provide invoice discounting, allowing MSMEs to convert unpaid invoices into immediate working capital. Additionally, supply chain financing helps businesses secure funding against purchase orders.

Formalizing MSMEs through Digital Finance

• Bringing Informal MSMEs to the Formal Economy: Many agrifood MSMEs operate informally. Fintech solutions like digital bookkeeping and AI-driven analytics help these businesses maintain structured records, making them eligible for larger credit lines and government financial schemes.
• Financial Literacy: Fintech platforms also offer financial literacy programs, empowering small business owners to make informed financial decisions and ensuring their long-term sustainability.

The Future Outlook: Scaling Fintech Solutions

• Sector Growth: The Indian food processing industry, valued at $336.4 billion in 2023, is projected to reach $735.5 billion by 2032, growing at a CAGR of 8.8%. As the sector expands, the need for a robust financial ecosystem becomes increasingly critical.
• Regulatory Support: To maximize the impact of fintech, regulatory support and incentives for fintech integration are essential. Policies should promote seamless fintech adoption, enhance digital lending frameworks, and encourage financial inclusion.

Fintech as a Key Enabler

• Transformational Role: Fintech solutions are instrumental in addressing the financial challenges faced by agrifood processing MSMEs, helping them scale, improve operational efficiency, and contribute significantly to India’s economy. Leveraging fintech is no longer an option but a necessity for long-term growth and sustainability in the sector.

BL

4. Second National Horticulture Expo 2081 Concludes in Kathmandu Valley

Overview of the Expo

• Event: Second National Horticulture Expo 2081
• Duration: Four days
• Location: Bhrikutimandap, Kathmandu Valley, Nepal
• Conclusion: The event concluded on Sunday, marking the end of an engaging and successful horticultural showcase.

Key Highlights

• Exhibition of Over 700 Plant Species: The expo featured a vast array of plants sourced from flower, fruit, agro-forestry, and herbal nurseries, showcasing Nepal’s rich horticultural diversity.
• Product Categories:
  • Commercial Nursery Products: Including flowers, fruits, agricultural plants, forestry species, and herbs.
  • Agricultural Tools and Products: Fertilizers, organic and chemical pesticides, seeds, flower pots, and horticultural technology.
• Interactive Horticulture Competition: A lively competition was held where participants displayed the best grafted plants, adding a competitive edge to the event.

Significance

• The expo drew garden and plant enthusiasts from across the country, enhancing awareness of horticultural products and supporting the growth of Nepal’s horticultural industry.

Related News

• First International Pashmina Festival: In January 2025, the Nepal Pashmina Industries Association held the inaugural Pashmina Festival, attracting notable consumer attention.

Facts To Remember

1. APEDA and Arunachal Pradesh Government Host International Buyer-Seller Meet at Tawang

• Event: International Conclave cum Buyer-Seller Meet (IBSM)
• Venue: Kalawangpo Convention Hall, Tawang, Arunachal Pradesh
• Organized by: Agricultural and Processed Food Products Export Development Authority (APEDA) and Government of Arunachal Pradesh
• Objective: To promote agricultural and processed food exports from Arunachal Pradesh and the North-Eastern Region (NER) of India

2. WAVES Bazaar to be revolutionary online marketplace for global entertainment ecosystem: Aamir Khan

World Audio Visual Entertainment Summit (WAVES) Bazaar attempts to be a revolutionary online marketplace designed to connect professionals, businesses, and creators across the global entertainment ecosystem.

3. India’s WPI inflation declines to 2.05% in March 2025

India’s wholesale price index (WPI)-based inflation eased to 2.05 per cent in March 2025. The Ministry of Commerce and Industry said this in the data released today. The WPI inflation was at 2.38 per cent in February this year.

4. NASA sacks Indian-origin DEI chief Neela Rajendra after US President Trump’s executive order

In United States, NASA’s jet propulsion laboratory has sacked Neela Rajendra, the Indian-origin head of its Diversity, Equity, and Inclusion (DEI) unit, from her position. 

5. Startup QNu Labs launches world’s 1st unique platform Q-Shield empowering enterprises to protect critical infrastructure

QNu Labs, one of the startups selected by the Department of Science and Technology (DST) under the National Quantum Mission, has launched the world’s first and unique platform, Q-Shield.

6. Centre Drafts New Rules for Gas Meters Under  Legal Metrology Rules, 2011

The Centre has framed draft rules for Gas Meters under the Legal Metrology (General) Rules, 2011. Ministry of Consumer Affairs, Food and Public Distribution in a statement said that these rules make it mandatory for all gas meters used for domestic, commercial, and industrial purposes, to undergo testing, verification and stamping prior to their use in trade and commerce. 

7. Mascot and logo of Khelo India Youth Games 2025 to be held in Bihar

Bihar will host the seventh edition of Khelo India Youth Games 2025 from 4th to 15th May. The games will be organised at various cities including Patna, Gaya, Rajgir, Begusarai and Bhagalpur. 

8. Aamir Khan Honoured with ‘Master Humor Award’ at Macau International Comedy Festival 2025

Bollywood superstar Aamir Khan received the prestigious ‘Master Humor Award’ at the Macau International Comedy Festival 2025 held in Macau, China.