Daily Current Affairs Quiz
26 August, 2025
National Affairs
1. Lunar Module Launch Vehicle (LMLV)
Context:
The Indian Space Research Organisation (ISRO) has announced the development of its heaviest rocket ever the Lunar Module Launch Vehicle (LMLV), which is expected to be ready by 2035.
What is LMLV?
- India’s most powerful rocket under development by ISRO.
- Specifically designed for lunar and interplanetary missions.
- Aimed at enabling crewed lunar missions by 2040 and supporting deep space exploration.
Key Objectives
- Carry large payloads to the Moon (~27 tonnes).
- Support human spaceflight programs beyond Earth orbit.
- Strengthen India’s self-reliance in heavy-lift and space exploration technology.
Why is LMLV Important?
- Positions India among elite nations capable of human lunar missions.
- Boosts technological independence in heavy-lift launch vehicles.
- Supports India’s long-term deep space exploration vision (Moon, Mars, beyond).
2. Women’s Employment Rate in India
Context:
The Labour Ministry reported that women’s employment rate in India nearly doubled from 22% in 2017-18 to 40.3% in 2023-24, while female unemployment fell from 5.6% to 3.2%.
What is it?
- Refers to Women’s Workforce Participation Rate (WPR) as per Periodic Labour Force Survey (PLFS).
- Indicates the share of women engaged in economic activities, including self-employment, regular salaried jobs, and casual labour.
3. Indian Navy Commissions INS Udaygiri & INS Himgiri
Context:
The Indian Navy has commissioned two Nilgiri-class stealth guided-missile frigates, INS Udaygiri and INS Himgiri, at Visakhapatnam. This marks the first-ever simultaneous induction of two major surface combatants from different Indian shipyards.
About INS Udaygiri
- Type: Second ship of Project 17A Nilgiri-class frigates.
- Role: Stealth-capable, multi-mission warship for anti-surface, anti-air, and anti-submarine warfare.
- Builder: Mazagon Dock Shipbuilders Ltd (MDL), Mumbai.
- Designer: Indian Navy’s Warship Design Bureau.
- Key Features:
- Weapons: LRSAM, 8 BrahMos supersonic cruise missiles, Barak-8, torpedoes, rocket launchers, 127 mm main gun, AK-630 guns.
- Systems: Modern radars, Humsa-NG sonar, Shakti Electronic Warfare suite.
About INS Himgiri
- Type: First Project 17A Nilgiri-class frigate built at GRSE, Kolkata.
- Role: Stealth guided-missile frigate with advanced weaponry and sensors.
- Builder: Garden Reach Shipbuilders & Engineers (GRSE).
- Designer: Indian Navy’s Warship Design Bureau.
- Key Features:
- Weapons: LRSAM, BrahMos, Barak-8, torpedoes, rocket launchers, 127 mm gun, AK-630 guns.
- Design: Integrated stealth with reduced radar cross-section.
4. Space-Based Solar Power (SBSP)
Context:
The International Energy Agency’s ‘Renewables 2024’ report highlights that solar power will drive 80% of global renewable energy growth by 2030. However, ground-based solar faces limitations such as intermittency, weather dependency, and high land requirements. A recent study by King’s College London suggests that space-based solar power (SBSP) could potentially supply 80% of Europe’s renewable energy needs by 2050.
What is Space-Based Solar Power (SBSP)?
- Involves placing solar power satellites in geostationary orbit to capture continuous solar energy.
- Converts sunlight into microwave energy, beams it to Earth, and reconverts it to electricity at ground stations.
- Utilizes mirror-like reflectors to ensure panels always face the sun, providing dispatchable, zero-carbon energy.
Advantages of SBSP
- Continuous Power Supply: Operates 24/7, unaffected by weather or day-night cycles.
- Higher Energy Yield: Solar radiation in space is stronger than on Earth’s surface.
- Solution to Land Constraints: Eliminates need for large land areas for solar farms.
Key Findings of the Study
- Simulations of NASA’s heliostat swarm and planar array designs show technical feasibility.
- Could solve intermittency issues faced by terrestrial renewables like wind and solar.
Challenges & Concerns
- Economic Viability:
- Requires gigantic infrastructure both in space and on Earth.
- Launch costs and construction expenses remain prohibitively high.
- Scale of Operations:
- A single satellite might span 1 km across; ground receivers would be 10 times larger.
- Hundreds of launches required, compared to 40 for the International Space Station.
- Operational Risks:
- Orbital congestion, transmission interruptions, and beaming variability not yet fully addressed.
- Timeline:
- Cost-effectiveness may only be feasible post-2050, pending major technological breakthroughs.
Banking/Finance
1. Finance Ministry Allows One-Time Switch from Unified Pension Scheme (UPS) to National Pension System (NPS)
Context:
The Finance Ministry has introduced a one-time, one-way switch for Central government employees to move from the newly launched Unified Pension Scheme (UPS) to the National Pension System (NPS).
Unified Pension Scheme (UPS) vs. National Pension System (NPS):
Unified Pension Scheme (UPS)
- What it is:
- Introduced April 1, 2025, as an option within NPS for Central government employees.
- Provides assured payouts post-retirement.
- Enrollment deadline: September 30, 2025.
- Key Features:
- Offers minimum guaranteed pension (exact rate to be notified).
- Combines elements of the old defined-benefit pension scheme and the defined-contribution NPS.
- Contributions by both employee and employer, but with an assured payout on retirement.
- Designed to address employee demands for security without fully reverting to the Old Pension Scheme (OPS).
National Pension System (NPS)
- What it is:
- A defined-contribution pension scheme introduced in 2004 for government employees (except armed forces) and later opened to all citizens.
- Key Features:
- Employees and employers contribute regularly to a pension corpus.
- Final pension depends on market returns, no guaranteed payout.
- Regulated by PFRDA (Pension Fund Regulatory and Development Authority).
2. RBI May Intervene if US Tariffs Impact Growth
Context:
Reserve Bank of India (RBI) Governor Sanjay Malhotra signaled readiness to take policy measures if the 50% U.S. tariff, set to take effect this week, negatively impacts India’s economic growth. He also outlined upcoming regulatory reforms for banks.
Key Highlights:
- US Tariff Impact & RBI Response:
- 50% U.S. tariff on select imports effective Wednesday.
- RBI assures ample liquidity to support growth and sector-specific support if required.
- Regulatory Initiatives:
- Basel-III Implementation:
- Basel III is an international regulatory framework developed by the Basel Committee on Banking Supervision (BCBS) to strengthen the regulation, supervision, and risk management of banks. For commercial banks covering market, credit, and operational risks.
- Draft Guidelines on Credit Risk & Expected Credit Loss (ECL):
- To be released shortly.
- Aims to strengthen banks’ risk management framework.
- Basel-III Implementation:
- Corporate Financing Trends (SBI View):
- India Inc holding ₹13.5 trillion in cash reserves.
- Capex funded largely through internal accruals, reducing demand for bank loans.
- Banks seek RBI nod to finance M&A deals to boost credit offtake.
- Internationalisation of the Rupee:
- RBI working to promote trade in local currency to reduce forex volatility.
- Existing agreements: Maldives, Mauritius, Indonesia, UAE.
- Process considered gradual, expected to evolve over decades.
- Banking Sector Priorities:
- Strengthening Banking Correspondents (BCs): Key to financial inclusion.
- Technology Adoption:
- Now central to decision-making and customer service, beyond just efficiency.
- Regulated entities urged to accelerate adoption to improve credit flow and reduce costs.
3. Fitch Retains India’s BBB- Sovereign Rating with Stable Outlook
Context:
Fitch Ratings has maintained India’s long-term foreign-currency issuer default rating (IDR) at BBB- with a ‘stable’ outlook, citing robust economic growth and strong external finances, despite emerging global trade risks.
Key Highlights:
- Current Rating:
- BBB- (Stable Outlook) – The lowest investment-grade rating.
- Implies low default risk, but economic challenges remain.
- Reasons for Retaining Rating:
- Robust Growth: India’s strong economic performance supports creditworthiness.
- Solid External Finances: Adequate foreign exchange reserves and stable external position.
- Concerns Highlighted by Fitch:
- Subdued Private Investment: Weak business sentiment may persist.
- Impact of U.S. Tariffs:
- Could dampen business confidence.
- May reduce India’s competitiveness compared to other Asian nations.
- Direct GDP impact is modest as U.S. exports account for only ~2% of GDP.
- Fiscal Challenges:
- High fiscal deficit and debt levels at the general government level.
- Lagging structural indicators like governance metrics and low GDP per capita.
- Overall Assessment:
- While short-term trade risks exist, India’s macroeconomic fundamentals remain strong enough to support a stable outlook.
4. Corporate Funding Moving Away from Banks – FICCI-IBA Report
Context:
A joint report by FICCI and the Indian Banks’ Association (IBA), titled “Charting New Frontiers” and prepared by Boston Consulting Group (BCG), highlights a significant transformation in India’s bank lending pattern over the last 14 years, as well as the emerging opportunities and challenges for the sector.
Key Highlights:
Changing Lending Mix
- Corporate Advances Decline: Share of corporate loans in total bank credit has fallen from 58% to 36%.
- Shift to Capital Markets: Corporates are increasingly opting for capital markets, private credit, external commercial borrowings (ECBs), Alternative Investment Funds (AIFs), and Real Estate Investment Trusts (REITs) for long-term funding.
- Working Capital Focus: Within bank lending, short-term working capital loans dominate over long-term capex loans.
Need for Banks in Emerging Sectors
- Banks must play a key role in funding new capex for sunrise sectors (green energy, digital infrastructure, manufacturing) and large infrastructure projects to achieve India’s growth aspirations.
5. SBI Requests RBI to Permit Acquisition Financing by Banks
Context:
State Bank of India (SBI), the country’s largest lender by assets, has sought regulatory approval from the Reserve Bank of India (RBI) to allow banks to finance mergers and acquisitions (M&A) of companies.
Key Highlights:
Current Regulatory Restriction
- Banks in India are currently barred from lending directly for mergers and acquisitions (M&A).
- Companies seeking funds for acquisitions depend on non-banking financial companies (NBFCs) or raise capital through bonds.
SBI’s Request to RBI
- SBI Chairperson Challa Sreenivasulu Setty urged the RBI to consider permitting acquisition financing, at least for large, listed companies.
- The move is aimed at enhancing bank participation in strategic corporate deals and boosting India’s M&A landscape.
Significance
- Allowing banks to fund acquisitions could:
- Increase liquidity for big-ticket deals.
- Reduce dependency on NBFCs and foreign lenders.
- Strengthen domestic credit markets.
6. Bandhan Bank Launches Legacy Savings Account for Affluent Customers
Context:
On its 10th anniversary, Bandhan Bank has introduced the Legacy Savings Account, a premium banking product designed for high-net-worth and affluent customers, offering exclusive lifestyle and banking benefits.
Product Features:
- World Elite Mastercard Debit Card with:
- Access to domestic & international airport lounges (with companion access for domestic lounges).
- Complimentary movie & event tickets.
- Complimentary golf sessions.
- Dedicated Relationship Manager for personalized service.
- Lifetime discounts on locker rentals.
- Unlimited free transactions, including cash deposits, RTGS, NEFT, and IMPS.
About Bandhan Bank
- Founded: 23 August 2015
- Headquarters: Kolkata, West Bengal, India
- MD & CEO: Partha Pratim Sengupta
7. RBI Imposes Penalty on Ayodhya Finlease Limited for Regulatory Non-Compliance
Context:
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 lakh on Ayodhya Finlease Limited, an NBFC, for violating regulatory guidelines.
Key Highlights:
- Entity Penalized: Ayodhya Finlease Limited (NBFC).
- Reason for Penalty:
- Failure to obtain prior written RBI approval for a change in shareholding exceeding 26% of paid-up equity capital.
- Regulations Violated:
- NBFC Master Directions, 2016.
- NBFC Scale-Based Regulation Directions, 2023.
- Legal Provision Invoked:
- Section 58G(1)(b) read with Section 58B(5)(aa) of the RBI Act, 1934.
- Significance
- This action underscores RBI’s strict stance on ensuring compliance with NBFC regulations, particularly regarding ownership and control changes.
Agriculture
1. Beyond Irrigation: Why India Needs Water Intelligence, Not Just Water Access
Context:
India’s agriculture sector consumes nearly 80% of the country’s freshwater resources, yet irrigation efficiency remains low at around 38%. This inefficiency, coupled with groundwater depletion, threatens long-term food security and environmental sustainability.
Key Issues:
- Overdependence on Groundwater: Unregulated extraction has caused rapid aquifer depletion, especially in north-western states.
- Low Irrigation Efficiency: Traditional flood irrigation leads to water wastage and reduced crop productivity.
- Climate Variability: Erratic rainfall patterns worsen water scarcity and affect farm incomes.
What is Water Intelligence?
Water intelligence focuses on using data-driven tools and advanced technologies for optimal water management rather than merely increasing water supply.
Key Components of Water Intelligence:
- Monitoring & Data Collection: Real-time soil moisture, weather, and water use data through sensors, drones, and IoT devices.
- Predictive Analytics & AI: Artificial intelligence to forecast irrigation needs, optimize schedules, and minimize wastage.
- Automation: Remote-controlled irrigation systems like mobile-enabled pump controls and automated drip irrigation.
- Smart Irrigation Practices: Precision farming techniques that reduce input costs and improve water-use efficiency.
Significance:
- Sustainability: Reduces over-extraction of groundwater and promotes long-term resource management.
- Cost Efficiency: Lowers water and energy costs for farmers while maintaining yields.
- Climate Resilience: Prepares agriculture to adapt to climate-induced water stresses.
Facts To Remember
1. Double delight for Neeru, Indian girls sweep junior sports pistol
Neeru won the women’s trap gold by beating Ray Bassil of Qatar by six points and combined with bronze medalist Aashima Ahlawat and Preeti Rajak to cllinch the team gold for India in the 16th Asian shooting championship in Shymkent, Kazakhstan.
2. PFRDA Calls for Measures to Boost Unified Pension Scheme (UPS) Enrolments
The Pension Fund Regulatory and Development Authority (PFRDA) has urged fresh measures to increase enrolments under the government’s Unified Pension Scheme (UPS), citing modest uptake compared to the Atal Pension Yojana (APY).
3. PM Modi to Inaugurate Hybrid Battery Electrode Production, Flag Off EV Exports from Gujarat
Prime Minister Narendra Modi will inaugurate localised production of hybrid battery electrodes and flag off battery electric vehicle exports to 100 countries at Hansalpur near Ahmedabad in Gujarat.
4. Minister Raksha Khadse Inaugurates ‘Giving Wings to Dreams Conclave 2025’
Minister of State for Youth Affairs and Sports Raksha Nikhil Khadse today inaugurated the ‘Giving Wings to Dreams Conclave 2025’ in New Delhi.
