Daily Current Affairs Quiz
23 August, 2025
National Affairs
1. Adi Karmayogi Abhiyan
Context:
The Ministry of Tribal Affairs has launched the Adi Karmayogi Abhiyan, envisaged as the world’s largest tribal grassroots leadership programme, focusing on empowering tribal communities, building local leadership, and promoting responsive governance.
Key Objectives:
- Responsive Governance: Strengthen people-centric governance at the village level.
- Capacity Building: Conduct multi-departmental Governance Labs (state to village level) to train master trainers.
- Vision 2030: Co-create development plans for 1 lakh tribal villages, detailing action strategies and investments.
- Leadership Network: Build a cadre of 20 lakh change leaders across 550 districts in 30 States/UTs.
Major Features & Outcomes:
- Adi Sewa Kendra: Community-government collaboration centers in tribal villages for issue resolution, youth mentoring, and scheme implementation.
- Governance Lab Workshops: Problem-solving platforms engaging multiple departments and local communities.
- Tribal Village Vision 2030: Co-created village action plans aligned with SDGs and inclusive growth.
- Scheme Saturation: Ensure 100% coverage of government schemes in tribal areas.
Community Participation:
- Adi Sahyogi: Professionals like teachers and doctors mentoring communities.
- Adi Saathi: SHGs, NRLM members, youth, and tribal elders supporting outreach and mobilization.
- Leadership Training: Programs for tribal youth, women, and community leaders.
2. NITI Aayog’s Roadmap for Homestays
Context:
NITI Aayog has released a report titled “Rethinking Homestays: Navigating Policy Pathways”, outlining a strategic framework to develop an inclusive and sustainable homestay ecosystem in India. The report emphasizes fiscal incentives, streamlined registrations, and digitalization of homestay operations. These steps align with India’s broader aim of leveraging tourism for job creation and regional economic development.
Key Highlights of the Report:
- Strategic Policy Framework: Advocates for destination-specific incentives over asset-based subsidies to channel investments into under-served regions.
- Ease of Operations: Calls for a single-window digital platform for homestay registration, renewal, and compliance, with a strict 30-day approval timeline.
- Regulatory Rationalization: Recommends treating homestays as residential properties for utilities and taxation to reduce operational costs.
- Digital & Market Integration: Encourages greater collaboration with online travel aggregators to improve visibility, credibility, and revenue for hosts.
- Economic Potential: Projects an 11% CAGR in India’s homestay market (₹4,722 crore in 2024), positioning homestays as a solution to India’s hotel room shortage (2 lakh rooms gap).
Significance:
- Tourism-Led Livelihoods: Homestays offer culturally immersive experiences, fostering rural incomes and empowering micro-entrepreneurs.
- Public–Private Collaboration: Strong industry participation from platforms like Airbnb, MakeMyTrip, and ISPP reflects the sector’s transformative potential.
- Sustainable Development: Aligns with India’s goals of inclusive growth, heritage conservation, and eco-friendly tourism.
3. Kerala Becomes India’s First Fully Digitally Literate State
Context:
In August 2025, Kerala Chief Minister declared the state as India’s first fully digitally literate state, marking the successful completion of Phase I of the Digi Kerala Project.
Digital Literacy in India
- Digital Literacy: Ability of individuals and communities to understand and use digital technologies for meaningful actions in daily life.
- Digitally Literate Household: At least one member aged 5+ can operate a computer and use the internet.
Positive Impacts on Socio-Economic Development
- Improved Governance & Efficiency:
- Initiatives like Kisan Call Centres and Common Services Centres (CSCs) improve service delivery, transparency, and grievance redressal.
- Global Connectivity:
- Provides access to global information, enhances social interactions, and strengthens family/community bonds.
- Democratic Participation:
- Empowers citizens to actively engage in governance, RTI, and policy feedback.
- Financial Inclusion:
- Supports schemes like Direct Benefit Transfer (DBT) and UPI, promoting cashless economy.
- Skill Development & Livelihoods:
- Imparts ICT skills, enabling participation in the evolving digital economy.
Concerns in India
- Ethical Use of Internet:
- Misinformation, fake news, radicalisation threaten social harmony.
- Data Privacy Risks:
- Risks of identity theft and fraud due to careless sharing of personal data.
- Cybersecurity Threats:
- Constant risk of cyber-attacks; identified as the biggest challenge to digital adoption.
Banking/Finance
1. RBI’s Discussion Paper on Flexible Inflation Targeting (FIT)
Context:
RBI has released a discussion paper to review the Flexible Inflation Targeting (FIT) framework as the current 4% CPI target (with a 2–6% band) ends in March 2026. RBI warns that raising the target could weaken policy credibility and undo past gains.
Why Retain the 4% Target?
- Global Credibility & Investor Confidence
- A higher target may be seen as accepting higher inflation, hurting India’s reputation.
- S&P Global’s upgrade to BBB cited strong inflation management as key.
- Institutional Strength
- FIT strengthened Monetary Policy Committee (MPC) credibility and fiscal discipline.
- Domestic Success
- CPI inflation mostly stayed within 2–6% since 2016.
- July 2025 CPI at 1.55% shows effective price stability.
- External Stability
- Low inflation protects the rupee, supports capital inflows, and maintains trade competitiveness.
Headline vs. Core Inflation
- Headline CPI: Includes all items (food, fuel, housing, etc.).
- Core CPI: Excludes food & fuel (more stable but less relevant for households).
- Arguments for Core Targeting (2023–24 Survey):
- Food inflation is supply-driven and beyond RBI’s control.
RBI’s Stand:
- Food shocks spill over to wages and prices, impacting core inflation over time.
- Global Practice: Most countries target headline CPI (Uganda is the exception).
- India’s Reality: With food ~50% of CPI, excluding it would ignore what matters most to people.
Flexible Inflation Targeting (FIT)
- A monetary policy framework where the central bank sets a specific inflation target but retains the flexibility to consider growth, employment, and financial stability.
- In India: Adopted in 2016 under an amendment to the RBI Act, 1934.
Benefits of FIT So Far
- Anchored Expectations: People and businesses trust RBI’s 4% target.
- Improved Sovereign Ratings: Credible policy boosts ratings like S&P’s upgrade.
- External Stability: Strengthened rupee, steady capital inflows.
- Investor Confidence: Predictable inflation lowers risk, boosts FDI/FDI.
- Shock Resilience: Prevented runaway inflation despite global turmoil.
2. SEBI Chief Cautions AMCs on Micro-Cap Investments, Urges Transparency
Context:
At the 30th anniversary of the Association of Mutual Funds in India (AMFI), SEBI Chairperson Tuhin Kanta Pandey highlighted key regulatory concerns for the mutual fund industry, focusing on risk management, investor protection, and transparency.
Key Highlights:
1. Micro-Cap Investments (Small Companies)
- What? Firms with a market value of ₹500–₹1,000 crore.
- SEBI’s View: Be careful. Avoid risky customized debt deals (private lending arrangements) without proper checks and clear paperwork.
- Why? Prevents investor losses from overvalued or poorly managed small firms.
2. Chhoti SIPs (Small Monthly Investments)
- What? Systematic Investment Plans starting from just ₹250/month.
- SEBI’s View: Promote them more.
- Why? Encourages small savers to invest regularly and builds financial inclusion.
3. Investor Confidence (Trust in Markets)
- Concern: Fraudulent redemptions (fake or unauthorized withdrawals).
- SEBI’s Directive: Act fast on complaints, ensure transparency.
- Why? Protects investors and keeps mutual fund markets trustworthy.
3. L&T Finance Partners with Google Pay to Offer Instant Personal Loans
Context:
L&T Finance Ltd. (LTF), one of India’s leading non-banking financial companies (NBFCs), has partnered with Google Pay to provide personal loans directly via the digital payments platform.
Key Highlights:
- Objective: Strengthen LTF’s product diversification strategy and expand credit accessibility through a seamless digital channel.
- Functionality: Eligible Google Pay users can apply for and access LTF personal loans directly within the app.
- Digital Ecosystem Integration: Focus on embedding financial products into high-engagement platforms to reach a wider customer base.
4. Advisory Board for Banking & Financial Frauds (ABBFF)
Context:
The Advisory Board for Banking and Financial Frauds (ABBFF) has been reconstituted for a two-year term, effective August 21, 2025. Functions as a ‘Safety Valve’ for bankers, providing advice before criminal investigations in major fraud cases.
Advisory Board for Banking and Financial Frauds (ABBFF):
The Advisory Board for Banking and Financial Frauds (ABBFF) is a high-level panel set up by the Central Vigilance Commission (CVC) to examine the role of senior officials of Public Sector Banks (PSBs), Public Sector Insurance Companies, and Public Sector Financial Institutions in large fraud cases.
Key Points:
- Purpose: Acts as an advisory body to determine whether bank/financial institution officials had any criminal intent or malafide involvement in frauds.
- Cases Covered: Fraud cases involving ₹3 crore and above.
- Process:
- Public sector banks/financial institutions must refer such fraud cases to ABBFF before initiating criminal investigation.
- ABBFF gives advice on the culpability of officials.
- Advice is shared with investigating agencies like CBI.
- Composition: Includes former senior officials from banking, finance, law enforcement, and vigilance backgrounds.
- Significance: Protects honest bankers from harassment, while ensuring accountability in genuine fraud cases.
5. Capital Charge for Counterparty Credit Risk (CCR)
Context:
The Reserve Bank of India (RBI) has proposed to widen the scope of capital charge for Counterparty Credit Risk (CCR) to include derivatives in equity, precious metals (excluding gold), and other commodities.
Key Highlights:
- Current Coverage: CCR norms currently apply to interest rate contracts, exchange rate contracts, and derivatives.
- Proposed Changes:
- Inclusion of equity derivatives, precious metals (except gold), and commodity derivatives under CCR.
- Specification of credit conversion factors (CCF) to ensure adequate capital provisioning for such exposures.
- Objective:
- Align with Basel Committee on Banking Supervision (BCBS) guidelines.
- Reflect market developments since the last revision in August 2008.
- Impact on Banks:
- Clearing members of SEBI-recognised stock exchanges in equity and commodity derivatives must maintain capital charge for CCR.
Counterparty Credit Risk (CCR)
Counterparty Credit Risk (CCR) is the risk that the other party in a financial transaction (the counterparty) may fail to meet its obligations before the final settlement of the transaction. It is most common in derivatives, securities financing, and trading transactions.
Key Features of CCR:
- Arises in: Derivatives (like swaps, options, futures), securities lending, and repo transactions.
- Different from Regular Credit Risk:
- Credit Risk: Risk of borrower default on a loan.
- CCR: Risk that a trading partner defaults during the life of the contract, not just at maturity.
- Two Types of Loss:
- Replacement Cost: Loss if the counterparty defaults and the contract must be replaced at current market prices.
- Potential Future Exposure (PFE): Possible future loss due to market volatility over the life of the contract.
Why It Matters?
- For Banks: Impacts capital adequacy; they must maintain sufficient capital to cover CCR.
- Regulation:
- Basel Committee on Banking Supervision (BCBS): Provides global standards for CCR capital charges.
- RBI: Aligning Indian rules with Basel norms (recently proposed expansion to include equity, precious metals except gold, and other commodity derivatives).
6. RBI Empowers Federal Bank to Process Maharashtra Government Payments via GRAS
Context:
The Reserve Bank of India (RBI) has officially allowed Federal Bank to collect government receipts on behalf of Maharashtra through the Government Receipt Accounting System (GRAS) portal. This authorization broadens the number of banks that can accept both digital and in-person payments for state dues like stamp duty and taxes.
About the GRAS Portal
- Launched in 2010 by Maharashtra’s Finance Department, GRAS serves as a virtual treasury.
- It enables:
- Generation of e-challans
- Payments via net banking or participating bank branches
- Issuance of immediate electronic receipts
- This streamlines payment workflows, reduces manual entry errors, and enhances transparency.
What Will Change?
Once integrated with GRAS, Federal Bank customers can:
- Pay state dues such as stamp duty, registration fees, and departmental taxes directly via the portal.
- Choose between online payments or visiting a branch, with seamless receipt generation.
- Benefit from simplified, transparent, and efficient payment experiences.
About Federal Bank
- Founded: 1931 (as Travancore Federal Bank), renamed Federal Bank in 1949
- Headquarters: Aluva, Kerala
- Type: Private sector scheduled commercial bank
- Regulation: Governed by the Reserve Bank of India (RBI)
Agriculture
1. Fortified Rice Scheme
Context:
Union Cabinet (Aug 2025) approved universal supply of fortified rice under all government schemes till December 2028.
Outlay: ₹17,082 crore (100% central funding).
About the Scheme
- Objective: Address anaemia, malnutrition, and hidden hunger by adding Iron, Folic Acid, and Vitamin B12 to rice.
- Pilot Launch: 2019
- National Rollout: 2022 for universal coverage.
- Nodal Ministry: Ministry of Consumer Affairs, Food & Public Distribution (Dept. of Food & Public Distribution – DFPD).
- Standards: Framed by FSSAI.
Coverage & Components
- Public Distribution System (PDS): Fortified rice via ration shops.
- PM POSHAN (Mid-Day Meal): For schoolchildren to curb child anaemia.
- ICDS: For women and children under nutrition programmes.
- Special Nutrition Schemes: Wheat-Based Nutrition Programme (WBNP), Scheme for Adolescent Girls (SAG).
Key Features
- Universal Coverage: Normal rice replaced by fortified rice in all central schemes by March 2024.
- Nutrition Focus: Tackles iron-deficiency anaemia, neurological & cognitive deficiencies.
- Cost: Fully funded by GoI, including fortification expenses.
- Integration: Linked with Anemia Mukt Bharat (2018), DFS (Double Fortified Salt), and fortified edible oils.
- Monitoring: State/UT-level quality checks and compliance mechanisms.
- Partnerships: NDDB Foundation for Nutrition supports complementary nutrition (e.g., Gift Milk Programme).
Facts To Remember
1. 40% of Chief Ministers face criminal cases: ADR report
Of the 30 Chief Ministers in the country, 12 of them, or 40%, declared criminal cases against themselves, according to a new report by poll rights body Association for Democratic Reforms.
2. RBI’s Indranil Bhattacharyya nominated as MPC member
The Central Board of Directors of the Reserve Bank of India, at its meeting held in Lucknow, under the chairmanship of Governor Sanjay Malhotra, approved the nomination of Executive Director Indranil Bhattacharyya as an ex-officio member of the monetary policy committee (MPC).
3. Elavenil shoots her way to air rifle gold
Elavenil Valarivan battled the Chinese and Koreans efficiently to bag the women’s air rifle gold with a 0.6 point margin over Peng Xinlu in the 16th Asian shooting championship in Shymkent on Friday. It was the second Asian championship individual gold for the 26-year-old , following the first in 2019.
4. Priya claims silver and Suraj bronze in World u-20 wrestling
Priya Malik, a World under-20 champion in 2023, clinched the silver medal after being pinned by European World under-20 champion Nadiia Sokolovska in the women’s 76kg final at the World under-20 wrestling in Samokov.
5. Great Nicobar Project
The ₹72,000-crore Great Nicobar Island Project — comprising a transshipment port, airport, power plant, and township — faces renewed opposition from the Nicobarese Tribal Council. The council has accused the Andaman & Nicobar Islands (A&NI) administration of falsely certifying compliance with the Forest Rights Act (FRA), 2006, to secure forest clearances for the mega project.
6. National summit on Technical textiles and Viksit Bharat held at Patna
In Bihar, a national summit on technical textiles and Viksit Bharat was held at Patna to discuss the contribution and role of technical textiles in the growth story of India.
7. 4th Semicon India 2025 to be organised from Sept 2
Prime Minister Narendra Modi will inaugurate the fourth edition of Semicon India 2025 in New Delhi on 2nd September. The three-day event aims to showcase the country’s growing capabilities and ambitions in the microelectronics and semiconductor value chain.
8. National Space Day being celebrated across the country today
The second National Space Day is being celebrated across the country today. The day commemorates the successful soft landing of the Chandrayaan-3 Mission’s Vikram Lander and the deployment of the Pragyan Rover on the Moon on 23rd of August 2023.
