Daily Current Affairs Quiz
13 August, 2025
National Affairs
1. India Semiconductor Mission (ISM)
Context:
The Union Cabinet, chaired by PM Narendra Modi, has approved four new semiconductor manufacturing projects under the India Semiconductor Mission (ISM). These will involve a cumulative investment of ₹4,600 crore, generate 2,034 skilled jobs, and boost India’s electronics manufacturing ecosystem.
Details of the New Projects
1. SiCSem Pvt. Ltd. – Odisha (Bhubaneswar)
- Partner: Clas-SiC Wafer Fab Ltd., UK
- Focus: India’s first commercial Silicon Carbide (SiC) compound semiconductor fab.
- Applications: Missiles, defence, EVs, railways, fast chargers, data centres, consumer appliances, solar inverters.
2. 3D Glass Solutions Inc. – Odisha
- Focus: Vertically integrated advanced packaging & embedded glass substrate unit.
- Technologies: Glass interposers, silicon bridges, 3D Heterogeneous Integration (3DHI) modules.
- Applications: Defence, AI, high-performance computing, RF & automotive, photonics.
3. Advanced System in Package (ASIP) Technologies – Andhra Pradesh
- Partner: APACT Co. Ltd., South Korea.
- Applications: Mobile phones, set-top boxes, automobiles, and other electronics.
4. Continental Device India Pvt. Ltd. (CDIL) – Punjab
- Type: Brownfield expansion in Mohali.
- Products: High-power discrete semiconductors — MOSFETs, IGBTs, Schottky diodes, transistors.
- Applications: EVs, renewable energy, industrial power conversion, telecom.
About India Semiconductor Mission (ISM)
- Launched: 2021
- Nodal Ministry: Ministry of Electronics & IT (MeitY)
- Vision: Make India a global hub for semiconductor design, manufacturing, and innovation.
- Support:
- Funding for fabs, ATMP/OSAT units, and display fabs.
- Design ecosystem aid for startups, MSMEs, academia.
- Talent development — 60,000+ students trained.
2. Mines and Minerals (Development and Regulation) Amendment Bill 2025
Context:
A new Bill has been passed to boost India’s mineral sector, ensure secure supply chains for critical minerals, and align with the National Critical Mineral Mission. This comes amid global supply disruptions and India’s heavy import dependence for key resources.
Key Amendments
1. Renaming and Expanding NMEDT
- National Mineral Exploration Trust (NMET) renamed to National Mineral Exploration and Development Trust (NMEDT).
- New mandate includes offshore and international exploration for critical minerals.
- Funding boost: Contribution from mining leaseholders increased from 2% → 3% of royalty payable.
2. Setting Up Mineral Exchanges
- Establishment of electronic trading platforms for minerals, concentrates, processed forms, and metals.
- Goal: Transparent, dynamic price discovery and more efficient market operations.
3. Incentives for Critical Mineral Extraction
- Easier inclusion of new critical minerals in existing mining leases.
- No extra royalty for critical minerals listed in the Seventh Schedule or Part D of the First Schedule if added to an existing lease.
4. One-Time Lease Area Extension
- Deep-seated minerals (below 200m): Up to 10% extension.
- Composite licences: Up to 30% extension.
5. Removal of Captive Mine Sale Cap
- Earlier: Only up to 50% of minerals from captive mines could be sold.
- Now: No limit — companies can sell 100% surplus minerals.
- Extra measure: States allowed to authorise sale of old mineral dumps.
PIB
3. Indian Ports Bill, 2025
Context:
Lok Sabha passed the Indian Ports Bill, 2025, replacing the Indian Ports Act, 1908. Aims to modernise port rules, improve trade efficiency, and promote green and safe port practices.
Main Features:
1. Modern Port Governance
- Old colonial law replaced with modern regulations.
- Easier and faster port procedures through digital systems.
- Ports get more autonomy to set tariffs with transparent rules.
- Long-term planning for cargo growth and better connectivity.
2. Green and Safe Ports
- Waste handling facilities mandatory at all ports.
- Pollution control as per global standards (MARPOL, Ballast Water rules).
- Promotion of renewable energy and eco-friendly operations.
- All ports must have disaster and security response plans.
3. Boost to Trade and Jobs
- Promote coastal shipping and link with waterways & road-rail networks.
- Support public-private partnerships (PPP) and foreign investments.
- Faster cargo movement to cut logistics costs.
- Create jobs in ports, logistics, and warehousing.
4. New Institutions
- Maritime State Development Council (MSDC) for Centre–State coordination.
- State Maritime Boards to manage non-major ports.
- Dispute Resolution Committees for quick settlement of issues.
4. State Health Regulatory Excellence Index Launched (SHRESTH)
Context:
The Union Ministry of Health & Family Welfare, through the Central Drugs Standard Control Organization (CDSCO), has launched SHRESTH – the State Health Regulatory Excellence Index, India’s first national framework to benchmark and strengthen state drug regulatory systems via transparent, data-driven evaluation.
Key Highlights:
- What is SHRESTH?
- A virtual gap assessment tool to evaluate, rank, and improve state/UT drug regulatory authorities.
- Ensures medicine safety, quality, and efficacy in line with WHO standards.
- Objectives
- Benchmark state drug regulatory systems.
- Target improvements in human resources, infrastructure, and digitisation.
- Enhance public trust in medicines made and distributed in India.
- Evaluation Criteria
- Manufacturing States: 27 indicators under 5 themes – Human Resources, Infrastructure, Licensing, Surveillance, Responsiveness.
- Distribution States/UTs: 23 indicators under the same themes.
- Monthly: States submit data to CDSCO → scored → feedback loop.
- Key Features
- Two-tier categorisation: Manufacturing States & Distribution States/UTs.
- Continuous improvement via monthly rankings and updates.
- WHO-aligned to move towards ML3-equivalent global standards.
- Cross-learning platform for sharing success stories.
- Regulatory harmonisation for uniform Drugs & Cosmetics Act enforcement across India.
Banking/Finance
1. RBI Grants In-Principle Approval to Paytm Payments Services as Online Payment Aggregator
Context:
The Reserve Bank of India (RBI) has granted Paytm Payments Services Ltd (PPSL), a wholly-owned subsidiary of One 97 Communications Ltd, an in-principle approval to operate as an online payment aggregator. This lifts earlier restrictions and allows the company to onboard new merchants.
What is a Payment Aggregator (PA)?
- A Payment Aggregator is a service provider that allows merchants to accept digital payments (credit/debit cards, UPI, net banking, wallets) without creating their own direct relationship with banks.
- The PA collects payments from customers and settles them to the merchant’s account.
- Example: Razorpay, PayU, CCAvenue, Paytm Payments Services.
RBI Norms for Becoming a Payment Aggregator
Eligibility & Licensing
- Must be a company registered in India under the Companies Act.
- Requires RBI authorisation under the Payment and Settlement Systems Act, 2007.
Capital Requirements
- Minimum net worth:
- ₹15 crore at the time of application.
- Must increase to ₹25 crore by the end of the third financial year.
2. IBC Amendment Bill
Context:
On 12 August 2025, Finance Minister Nirmala Sitharaman introduced the Insolvency and Bankruptcy Code (IBC) Amendment Bill in the Lok Sabha. The Bill proposes major reforms, including group insolvency, cross-border insolvency, and pre-packaged insolvency for large corporations, aimed at speeding up admission, resolution, and liquidation processes.
What is IBC?
Insolvency and Bankruptcy Code (IBC)
- Introduced – 2016
- Purpose – To provide a time-bound process for resolving insolvency (when individuals or companies can’t repay debts) and, if necessary, liquidation.
- Nodal Ministry – Ministry of Corporate Affairs
- Regulator – Insolvency and Bankruptcy Board of India (IBBI)
Key Highlights:
New Concepts Introduced
- Group Insolvency – Allows joint resolution of multiple companies in the same group to avoid loss of value.
- Cross-Border Insolvency – Creates rules for dealing with cases involving foreign creditors or overseas assets.
- Pre-Packaged Insolvency for Large Corporates – Enables faster, cheaper, and less disruptive resolutions.
- Personal Guarantor Assets – Lets lenders take over personal guarantors’ assets during insolvency proceedings.
- Secured Claims Clarification – Government or state claims will be “secured” only if there is a contract; statutory claims won’t get automatic priority.
3. NPCI to Discontinue UPI ‘Pull’ Transactions from October 31, 2025
Context:
The National Payments Corporation of India (NPCI), operator of the Unified Payments Interface (UPI), will discontinue ‘pull’ transactions (recipient-initiated person-to-person digital payments) from October 31, 2025 to curb rising cases of online payment fraud.
Key Highlights:
- Feature Being Removed:
- ‘Pull’ or ‘collect’ payment method, where the beneficiary initiates the transaction and the payer approves it by entering a UPI PIN.
- Introduced to simplify bill-splitting or payment requests among peers.
- Reason for Removal:
- Increasing misuse by fraudsters posing as merchants or friends to deceive users into approving unintended payments.
- Linked to a surge in online scams and unauthorised fund transfers.
National Payments Corporation of India (NPCI)
- Type: Not-for-profit company under the Companies Act, 2013.
- Established: 2008.
- Ownership: Owned by a consortium of major banks; promoted by Indian Banks’ Association (IBA) under the guidance of RBI and Payment and Settlement Systems Act, 2007.
- Headquarters: Mumbai, Maharashtra.
Unified Payments Interface (UPI)
- Launched: April 2016 by NPCI.
- Nature: Instant real-time payment system for inter-bank transactions.
- Based on: IMPS (Immediate Payment Service) infrastructure
4. Parliament Passes New Income Tax Bill
Context:
Parliament passed the new Income Tax Bill, replacing the six-decade-old Income Tax Act, 1961, aiming to simplify India’s direct tax law. The Rajya Sabha returned the legislation to the Lok Sabha with a voice vote, completing the parliamentary procedure.
Key Highlights:
- Simplified Tax Framework:
- Introduces the concept of a “tax year” replacing the financial year and assessment year to reduce confusion.
- Makes the law easier to read, understand, and implement.
- Digital Asset Definition Expanded:
- Broader definition of ‘virtual digital assets’ to include crypto-assets, NFTs, and other government-specified digital assets.
- Search Operation Compliance:
- Taxpayers must provide access to virtual spaces like social media accounts, email servers, and cloud storage during search operations.
- CBDT to issue SOPs for handling digital data to protect taxpayer privacy.
- Related Taxation Laws (Amendment) Bill, 2025:
- Passed alongside the main bill.
- Key provisions:
- Tax exemption to public investment funds of Saudi Arabia and its subsidiaries.
- Tax exemption for partial withdrawal under Unified Pension Scheme.
- Revised definition of ‘income’ in block assessments during search/seizure cases.
Direct Tax & Indirect Tax
| Basis | Direct Tax | Indirect Tax |
|---|---|---|
| Who Pays | Paid directly by taxpayer to government | Paid indirectly via sellers/service providers |
| Burden Shift | Cannot be shifted | Can be shifted to another person |
| Examples | Income Tax, Corporate Tax | GST, Customs Duty |
| Nature | Progressive | Regressive |
| Collection | Direct from taxpayer | Collected by intermediaries and remitted to government |
5. RBI Allows ‘Vostro’ Accounts to Invest Surplus in Government Securities
Context:
The Reserve Bank of India (RBI) has permitted foreign investors to invest the entire surplus balance in their Vostro accounts into central government securities. This move is expected to deepen trade settlement in rupees and provide better returns on idle funds.
Key Highlights:
- What is a Vostro Account?
- An account held by a domestic bank on behalf of a foreign bank.
- Used for holding rupee-denominated balances arising from trade transactions between India and other countries.
- New Investment Permission
- Foreign investors can now invest entire surplus balances in central government securities.
- Aims to promote international trade settlement in INR.
- Expected Benefits
- Boosts the attractiveness of rupee trade arrangements.
- Provides a secure and interest-bearing option for surplus funds.
- Supports RBI’s strategy to internationalise the rupee.
6. Retail Inflation (Consumer Price Index – CPI)
Context:
In July 2025, retail inflation in India dropped to 1.55% – the lowest in 8 years. This is well below the RBI’s target range of 2% to 6% and has now stayed under 4% for six months in a row. The main reason is the fall in food prices.
What is Retail Inflation (Consumer Price Index – CPI)?
Retail inflation measures the average change over time in the prices that consumers pay for a basket of goods and services. It reflects the cost of living and purchasing power of households.
- In India, we measure it through the Consumer Price Index (CPI).
- It includes items like food, clothes, housing, transport, and fuel.
- It shows how much our cost of living is changing.
- Base Year: Currently 2012 (in India).
Wholesale Inflation (Wholesale Price Index – WPI)
Wholesale inflation measures the average change in prices of goods at the wholesale level (bulk transactions between businesses), before they reach the retail market.
- Base Year: Currently 2012 (in India).
- Categories Covered in CPI:
- Food & Beverages
- Clothing & Footwear
- Housing
- Fuel & Light
- Miscellaneous (education, healthcare, transport, etc.)
What is Inflation?
Inflation is the rate at which prices rise in the economy, which reduces the value of money.
- Demand-pull inflation: When demand for goods is more than supply.
- Cost-push inflation: When production costs go up and prices rise.
How RBI Controls Inflation (Monetary Policy Tools)
- Repo Rate: Increases loan interest rates to reduce spending.
- Reverse Repo Rate: Makes banks keep more money with RBI, reducing market cash.
- Cash Reserve Ratio (CRR): Forces banks to keep more money with RBI, limiting lending.
- Open Market Operations (OMO): RBI sells government securities to absorb extra cash from the market.
- Policy Stance: Tightening monetary policy to focus on controlling prices.
Facts To Remember
1. Bond Market Selloff Continues Despite Retail Inflation Hitting 8-Year Low
The Indian bond market witnessed continued selling pressure on 12 August 2025, even as retail inflation hit its lowest level in eight years. Government bond yields surged due to stop-loss triggers and higher-than-expected state development loan (SDL) cut-off yields.
2. PM addresses the 18th International Olympiad on Astronomy and Astrophysics
India is hosting the 18th International Olympiad on Astronomy and Astrophysics (IOAA) in 2025, welcoming over 300 young astronomers from 64 countries.
3. Toda Tribe Leads Endangered Language Preservation in Nilgiris
The Toda tribe of the Nilgiri Hills, Tamil Nadu, who speaks the Toda Language a proto-South Dravidian language with no native script, is spearheading efforts to safeguard their native language under the Scheme for Protection and Preservation of Endangered Languages (SPPEL), implemented by the Central Institute of Indian Languages (CIIL), Ministry of Education.
4. Private Sector Likely to Get Limited Access to PM GatiShakti Portal
The government is finalising rules for private sector access to the PM GatiShakti National Master Plan (NMP) portal — a digital platform aimed at transforming infrastructure planning and execution in India.
