Daily Current Affairs (DCA) 2&3 October, 2025

Daily Current Affairs Quiz
2 & 3 October, 2025

National Affairs

1. Beti Bachao, Beti Padhao Completes a Decade

Context:

The Beti Bachao, Beti Padhao (BBBP) scheme, launched in 2015, has completed 10 years, registering progress in sex ratio at birth and girls’ education outcomes across India. The initiative has been implemented as a convergence of Women & Child Development (WCD), Health, and HRD Ministries.

Beti Bachao, Beti Padhao (BBBP) Scheme

• Launch: 22 January 2015 by the Government of India at Panipat, Haryana.
• Nodal Ministry: Ministry of Women and Child Development (MoWCD) in collaboration with the Ministry of Health & Family Welfare (MoHFW) and the Ministry of Education (MoE, formerly HRD).
• Objective: To prevent gender-biased sex-selective elimination (female foeticide), ensure survival & protection of the girl child, and promote her education & participation.

Achievements of BBBP

• Sex Ratio at Birth (SRB): Improved from 919 (2015–16) to 929 (2019–21).
• State-level performance: 20 out of 30 States/UTs now above the national average.
• Awareness impact: Surveys (e.g., Madhya Pradesh) show 89.5% people aware of BBBP, with 63.2% motivated to send daughters to school.
• Education outcomes: Higher enrollment of girls in secondary schools and improved transition rates.

2. ANRF launches SARAL Tool to Simplify Scientific Research

Source: TH

Context:

The Anusandhan National Research Foundation (ANRF) has launched the SARAL Tool (Simplified and Automated Research Amplification and Learning). It is an AI-powered platform designed to simplify complex research papers into easy-to-understand summaries.

About SARAL Tool

• Full Form: Simplified and Automated Research Amplification and Learning.
• Developed by: Anusandhan National Research Foundation (ANRF).
• Purpose: To make scientific knowledge inclusive and accessible for citizens, policymakers, academia, and industry.

Key Features

1. AI-driven Summaries: Extracts key insights from research papers and converts them into simplified versions.
2. Multi-Format Outreach: Generates videos, podcasts, posters, and presentations to increase reach.
3. Science Communication: Bridges the gap between researchers and the general public.
4. Integration with AI Open India Stack: Linked to the upcoming AI Science & Engineering Open India Stack for applications in:
   • Drug discovery
   • Aerospace
   • Climate science
   • Advanced materials

Banking/Finance

1. RBI MPC Meeting – October 1, 2025

Context:

The Reserve Bank of India (RBI), in its October 2025 Monetary Policy Committee (MPC) meeting, kept the repo rate unchanged at 5.5% with a neutral stance. The decision comes amid tariff-related uncertainties, the need to evaluate the impact of previous rate cuts, and an improving domestic macroeconomic outlook.

Policy Decisions

• Repo Rate: Unchanged at 5.50% (second consecutive pause)
• Monetary Policy Stance: Neutral
• Cumulative Rate Cuts in 2025: 100 bps (Feb, Apr, Jun) → from 6.5% to 5.5%

Macro Outlook

• GDP Growth (FY26): Revised upward to 6.8% (from 6.5%)
• CPI Inflation (FY26): Revised downward to 2.6% (from 3.1%)

Rationale

• Tariff Uncertainties: May weigh on exports, create near-term risks.
• GST Rationalisation: Expected to lower inflation and boost demand.
• Global Headwinds: Persist as a risk factor.

Key Regulatory & Structural Announcements

• Expected Credit Loss (ECL) Framework
  • Applicable to all Scheduled Commercial Banks from April 1, 2027.
  • Forward-looking provisioning → enhances credit discipline.
• Basel III Norms
  • Revised capital adequacy framework to be implemented from April 1, 2027.
  • Strengthens resilience of banks through higher buffers.
• Group Entities Regulation
  • Restrictions on overlaps between banks and group entities to be removed.
  • Provides flexibility in operations.
• Risk-Based Insurance Premium
  • RBI to introduce differentiated deposit insurance premium framework for banks based on risk profile.
• Capital Market Lending Expansion
  • Removal of regulatory ceiling on lending against listed debt securities.
  • Lending against shares: Raised to ₹1 crore (from ₹20 lakh per person).
  • IPO Financing: Enhanced to ₹25 lakh (from ₹10 lakh per person).

Implications

For Economy

• Growth-supportive stance despite global uncertainty.
• Stable repo rate → supports investment and consumption.
• Upward GDP revision signals confidence in domestic recovery.

For Banks & Financial Institutions

• ECL & Basel III norms (from 2027) → strengthen risk management, capital adequacy.
• More freedom in capital market lending → deepens debt & equity markets.
• Higher IPO financing limits → encourages retail/HNI participation.

For Borrowers & Investors

• Loan EMIs remain stable (repo unchanged).
• Retail investors benefit from higher lending against shares & IPO financing.
• Lower inflation outlook → real interest rates remain supportive.

Key Terms

Term	Definition	Impact / Purpose
Repo Rate	Rate at which RBI lends short-term funds to commercial banks against government securities as collateral.	↑ Repo → Loans costly → Inflation control. ↓ Repo → Loans cheaper → Boosts growth.
Reverse Repo Rate	Rate at which RBI borrows money from commercial banks.	↑ Reverse Repo → Absorbs liquidity → Controls inflation. ↓ Reverse Repo → Banks lend more → Boosts growth.
ECL (Expected Credit Loss) Framework	Forward-looking provisioning system where banks estimate expected loan losses instead of waiting for defaults.	Strengthens banking sector resilience by reducing risk of sudden shocks.
Basel III Norms	International banking reforms focusing on capital adequacy, leverage, and liquidity standards.	Ensures financial stability, prevents systemic risks, enhances risk management.

2. RBI MPC October 2025 – Key Takeaways

Context:

• The Reserve Bank of India (RBI) conducted the 57th Monetary Policy Committee (MPC) meeting from 29 September – 1 October 2025.
• Policy stance: Neutral, keeping growth-supportive measures while monitoring inflation and external risks.
• Objective: Support domestic demand, maintain financial stability, and ensure orderly liquidity.

Policy Rates

Instrument	Rate	Remarks
Repo Rate	5.50%	Unchanged (second consecutive pause)
Reverse Repo (SDF)	5.25%	By convention, 25 bps below repo
Bank Rate & MSF	5.75%	No change

• Cumulative rate cuts in 2025: 100 bps (Feb, Apr, Jun) from 6.5% → 5.5%.

Macro Outlook

GDP Growth (FY26)

• Revised upward to 6.8% from 6.5% in August projection.
• Quarterly forecast:
  • Q1 FY26: 7.8%
  • Q2 FY26: 7.0%
  • Q3 FY26: 6.4%
  • Q4 FY26: 6.2%
  • Q1 FY27: 6.4%
• Drivers: Strong consumption, investment, government spending, good monsoon, GST rationalisation, and rising capacity utilisation.

CPI Inflation (FY26)

• Revised downward to 2.6% from 3.1%.
• Quarterly forecast:
  • Q1 FY26: 4.5%
  • Q2 FY26: 1.8%
  • Q3 FY26: 1.8%
  • Q4 FY26: 4.0%
• Factors: Food disinflation, mild fuel inflation, GST rationalisation, favourable base effects.

External Sector

• Current Account Deficit (CAD): 0.2% of GDP in Q1 FY26 (down from 0.9% last year).
• Services exports: double-digit growth; remittances: US$35.3 billion.
• Merchandise exports: +2.5%, imports: +2.1% (April–August 2025).
• FDI inflows: US$37.7 billion (April–July 2025).

Key Regulatory & Structural Announcements

• Banking & Risk Management
  • ECL Framework: Forward-looking provisioning for all scheduled commercial banks from April 1, 2027.
  • Basel III Norms: Revised capital framework effective April 1, 2027.
  • Risk-Based Insurance Premium: Differential insurance premium for banks based on risk profile.
  • Group Entities Regulation: Remove restrictions on overlaps between banks and group entities.
• Credit Flow & Capital Market Lending
  • Removal of ceiling on lending against listed debt securities.
  • Lending against shares limit raised from ₹20 lakh → ₹1 crore per person.
  • IPO financing limit raised from ₹10 lakh → ₹25 lakh per person.
  • NBFC lending to high-quality infrastructure: lower risk weights.
  • Credit limit thresholds for large borrowers revised.
• External / FX & Ease of Doing Business
  • Rationalisation of ECB/FEMA rules (borrowers, lenders, end-use norms, reporting).
  • Exporters’ FCY repatriation extended: 1 → 3 months.
  • Merchanting trade repatriation extended: 4 → 6 months.
  • Promote INR cross-border transactions with Bhutan, Nepal, Sri Lanka.
• Financial Inclusion & Consumer Protection
  • Strengthen Basic Savings Bank Deposit (BSBD) accounts.
  • Revise RBI Ombudsman Scheme, including rural cooperative banks.
  • Strengthen Internal Ombudsman mechanisms in regulated entities.
• Acquisition financing:
  • Banks now allowed to finance mergers & acquisitions (M&A) of Indian companies, addressing a long-standing demand.
• Credit exposure liberalisation:
  • Limit on lending to large corporates removed, previously capped under the 2016 circular.
  • RBI to monitor system-level concentration risk rather than individual banks.
• Collateral and credit limits:
  • Increased loan limits against shares, REITs, InvITs.
  • Ceiling removed on loans against listed debt securities.
  • Higher limits for financing IPOs and loans against shares for individuals.

Implications

For the Economy:

• Growth-supportive stance encourages investment and consumption.
• Lower inflation maintains purchasing power and real rates.
• External stability (CAD narrowing) supports rupee and financial markets.

For Banks & Financial Institutions:

• ECL and Basel III require stronger capital adequacy and risk management.
• Expanded capital market lending fosters market depth.
• Higher IPO financing supports retail and HNI participation.

For Borrowers & Investors:

• Loan EMIs stable due to unchanged repo.
• Real interest rates favorable amid lower inflation.
• Retail investors benefit from higher financing limits for shares and IPOs.

Key Terms for RBI Grade B / Exams

• Repo Rate: Rate at which RBI lends short-term funds to banks against government securities. Tool to control liquidity and inflation.
• Reverse Repo Rate: Rate at which RBI borrows from banks. Absorbs liquidity or encourages lending depending on level.
• ECL Framework: Forward-looking provisioning system; banks estimate expected credit losses.
• Basel III: International banking reforms to strengthen capital, liquidity, and leverage standards.
• CPI Inflation: Consumer Price Index; measures average change in prices of goods and services consumed by households.
• CAD (Current Account Deficit): Difference between imports & exports of goods, services, and net transfers.

3. RBI Withdraws System-Level Lending Cap for Large Corporates

Source: BS

Context:

The Reserve Bank of India (RBI) has withdrawn its 2016 circular that restricted banks from lending beyond a specified threshold to a single large corporate or group at the systemic level, while maintaining the large exposure framework at individual bank level.

Key Highlights:

• Previous Circular:
  • Set credit exposure limits at the banking system level:
    • ₹25,000 crore in FY18 → ₹15,000 crore in FY19 → ₹10,000 crore from FY20.
  • Aimed to reduce concentration risk across the banking system.
• Current Framework:
  • Large Exposure Framework continues:
    • Single borrower: ≤20% of Tier-1 capital
    • Corporate group: ≤25% of Tier-1 capital
• Reason for Withdrawal:
  • Share of corporates in total banking exposure has fallen by ~10%, reducing systemic risk.
  • The circular is no longer necessary to ensure financial stability, and its removal eases compliance burdens.

Market and Banking Impact

• Corporate credit demand remains muted due to:
  • Slower capex cycle
  • Alternative funding sources (bond markets, ECBs)
  • Healthy cash reserves
• Some incremental lending may flow into:
  • Infrastructure
  • MSME sectors
• Potential funds returning to banks from bonds/ECBs: ₹3–4.5 trillion

4. RBI Proposes Lower Risk Weights for NBFC Infrastructure Loans

Source: BS

Context:

The Reserve Bank of India (RBI) has proposed reducing risk weights for loans by Non-Banking Financial Companies (NBFCs) to operational, high-quality infrastructure projects.

• Objective: Reduce the cost of infrastructure financing, improve risk assessment, and optimise capital allocation.
• The framework will be principle-based, allowing NBFCs more discretion in assigning risk weights for infrastructure lending.

Key Highlights

Scope of Proposal

• Applies to NBFCs lending to operational infrastructure projects.
• Draft regulations will be issued for public consultation before implementation.
• Existing norms already allow lower-risk weights for PPP projects; the proposal extends clarity and flexibility for other operational projects.

Expected Impact

• Cost of financing: Reduced for NBFCs, potentially making infrastructure projects more viable.
• Competitiveness: Other NBFCs beyond IDFs and IFCs can benefit, expanding financing sources.
• Market participation: Could attract new players to infrastructure lending.

Risks & Cautions

• Supervisory oversight is essential to avoid underestimation of risks.
• Excessive lowering of risk weights may lead to over-leveraging and concentration in infrastructure portfolios.
• NBFCs need prudent capitalisation to maintain strong credit profiles.

5. RBI to Consider Issuance of New Urban Cooperative Bank (UCB) Licences

Source: BL

Context:

The Reserve Bank of India (RBI) has announced plans to issue a discussion paper on licensing new banks in the Urban Cooperative Banking (UCB) sector, indicating a shift in policy after nearly two decades.

Background

• 2004 Freeze: Fresh licenses for UCBs were stopped due to weak financial health and governance issues in the sector.
• The decision to explore new licences comes in light of improved financial performance and regulatory compliance among existing UCBs.
• Consolidation Drive (2004–24):
  • Amalgamation of unviable UCBs.
  • Closure of non-viable entities.
  • Suspension of new licenses.
• As a result, the number of UCBs fell from 1,926 (2004) to 1,472 (March 2024).

What are UCBs?

• Urban Cooperative Banks (UCBs) are cooperative banks operating in urban and semi-urban areas, primarily catering to small borrowers, traders, low- and middle-income groups.
• They are organised under the cooperative structure but perform banking functions like accepting deposits, lending, remittances, and other retail banking services.

RBI Governance of UCBs

Aspect	Legal Framework / Authority	Scope of Regulation
Banking Regulation Act, 1949	Applied to UCBs since 1966; regulated by RBI	Banking activities such as deposit mobilization, lending, capital adequacy, prudential norms, and supervision.
State Cooperative Societies Act	Registration under respective State Act	Governance, management elections, audit, and administrative control at the state level.
Multi-State Cooperative Societies Act, 2002	Registration if UCBs operate in more than one state	Governance, management elections, audit, and administration under Central Registrar of Cooperative Societies.

6. RBI Eases Bank Lending to Boost Corporate Growth and Capital Markets

Context:

The RBI has introduced its most comprehensive reforms in bank lending, targeting both corporate and individual borrowers. The aim is to reverse disintermediation (where companies bypass banks for funding), strengthen capital markets, and support economic growth.

Key Reforms and Implications

Corporate Lending and Acquisitions

• Banks can now finance mergers and acquisitions, reducing the cost of corporate takeovers.
• This encourages leveraged buyouts and supports a strong pipeline of new issues, improving corporate access to capital.
• Bank credit growth has lagged behind economic growth; these measures aim to expand banks’ corporate lending books.

Lending to Large Companies

• Withdrawal of the 2016 lending cap framework will allow banks to lend more flexibly.
• Freed resources can be directed to productive economic activity, such as infrastructure and MSMEs.

Individual Investor Lending

• Higher caps on loans for individuals investing in IPOs and shares will maintain investor interest in emerging and high-performing companies.
• This also improves liquidity in the equity market.

Risk Management and Prudential Measures

• Lower risk weights for infrastructure loans support ongoing capex projects.
• Ceilings on lending against debt securities removed, allowing banks more flexibility.
• RBI is shifting towards macroprudential regulation, focusing on systemic risk rather than punitive lending limits.
• Phased transition to international credit risk frameworks ensures minimal disruption.

External Commercial Borrowing (ECB) and Export Credit

• Revised ECB norms will expand the pool of eligible borrowers and lenders, relax borrowing limits, and simplify reporting.
• Export credit rules are being eased to improve ease of doing business.

7. Nuvama Wealth Gets SEBI Approval to Set Up Mutual Fund Business

Source: BS

Context:

Nuvama Wealth Management Ltd. (formerly Edelweiss Securities arm) has received regulatory clearance from the Securities and Exchange Board of India (SEBI) to enter the mutual fund (MF) industry as a sponsor.

SEBI Norms: Eligibility of a Mutual Fund Sponsor

The sponsor is the promoter who sets up the mutual fund and AMC. According to SEBI (Mutual Funds) Regulations, 1996, the following conditions must be fulfilled:

Criteria	Key Requirements
Track Record & Reputation	• Minimum 5 years of business track record in financial services. • Positive net worth in each of the last 5 years. • Net worth > ₹50 crore in the immediately preceding year. • Profitability in at least 3 out of 5 years.
Fit & Proper Criteria	• Must satisfy SEBI’s “fit and proper person” norms. • No record of fraud, conviction, or regulatory violations.
Shareholding & Contribution	• Sponsor must contribute ≥ 40% of AMC’s net worth. • Minimum AMC net worth: ₹50 crore (as per latest SEBI amendments). • Contribution ensures “skin in the game”.
Professional Setup	• AMC & Trustee Co. must have ≥ 50% independent directors/trustees. • No conflict of interest with the sponsor.
Regulatory Approval	• SEBI conducts due diligence on financial strength, governance, compliance history, and risk management before granting approval.

8. Fin-Influencers

Context:

The Securities and Exchange Board of India (SEBI) has been actively cracking down on financial influencers (“fin-fluencers”) for spreading misinformation and fraudulent advice. Yet, a recent SEBI-Kantar study shows Indian investors continue to place significant trust in them.

Who Are Finfluencers?

• Finfluencers are social media content creators who provide advice or opinions on stocks, mutual funds, crypto, insurance, trading strategies, and personal finance.
• Platforms: YouTube, Instagram, Telegram, Twitter (X), etc.
• Influence: Large following among young, first-time investors.

SEBI’s Concerns

1. Misinformation: Many finfluencers provide unverified or fraudulent advice.
2. Conflict of Interest: Paid promotions of stocks or schemes without disclosure.
3. Pump-and-Dump Risk: Coordinated stock tips to artificially inflate prices.
4. Lack of Registration: Most are not registered with SEBI as investment advisers (IA) or research analysts (RA).

SEBI’s Crackdown & Regulations

• Registered Advice Mandatory: Only SEBI-registered IAs and RAs can legally provide financial advice.
• Disclosure Norms: Strict rules on disclosure of affiliations, compensation, and risks.
• Finfluencer Ban Proposals:
  • No profit-sharing arrangements between finfluencers and registered intermediaries.
  • No misleading ads or referral models.
• Investor Education: SEBI is strengthening official investor education portals to counter finfluencer misinformation.

Key Terms

• Investment Adviser (IA) – Registered with SEBI to provide personalised financial advice for a fee.
• Research Analyst (RA) – Provides research reports/stock recommendations with mandatory disclosures.
• Pump-and-Dump – Fraud where promoters/finfluencers artificially inflate stock prices, then sell at a profit, leaving retail investors at a loss.

Agriculture

1. National Pulses Mission (2025–31)

Source: PIB

Introduction

• Approval: Union Cabinet, October 2025
• Nodal Ministry: Ministry of Agriculture & Farmers’ Welfare
• Duration: Six years (2025–26 to 2030–31)
• Budget: ₹11,440 crore
• Objective: To achieve Aatmanirbharta (self-reliance) in pulses, enhance food and nutritional security, and reduce import dependency.

Key Objectives

• Boost Domestic Production: Raise production from 242 lakh tonnes (2024–25) to 350 lakh tonnes (2030–31).
• Expand Cultivation Area: Bring pulses area under cultivation to 310 lakh hectares.
• Enhance Productivity: Increase yield to 1,130 kg/ha.
• Reduce Imports: Cut dependency by 15–20%, saving foreign exchange.

Major Features

• Seed Security:
  • Distribution of 126 lakh quintals of certified seeds.
  • 88 lakh free seed kits for farmers.
  • Tracking via SATHI digital portal for transparency.
• Assured Procurement:
  • 100% procurement of Tur (Arhar), Urad, and Masoor at MSP for 4 years.
• Infrastructure Support:
  • Establishment of 1,000 post-harvest processing units.
  • Subsidy support up to ₹25 lakh per unit.
• Research & Innovation:
  • Multi-location trials for climate-resilient and pest-resistant varieties.
• Farmer Training & Capacity Building:
  • Programmes for adoption of modern, sustainable pulse cultivation techniques.

2. Crop Insurance Premiums Fall 34% in FY26

Source: BS

Context:

India’s crop insurance sector is witnessing a sharp decline in premium collections in FY26 due to structural reforms, aggressive pricing, and re-tendering by states. The trend raises concerns about the sustainability of insurers under the current loss-sharing models.

Key Highlights:

• Major Insurer Performance:
  • Agriculture Insurance Company of India (segment leader): ₹2,539 crore, down 4% YoY.
• State Trends:
  • Maharashtra’s crop insurance premium dropped sharply from ₹9,000 crore earlier to ~₹3,000 crore.
  • Other states may follow re-tendering practices, further reducing premiums.
• Pricing & Models:
  • Farmers’ share of premiums remains capped under PMFBY:
    • Kharif crops: max 2% of sum insured.
    • Rabi crops: max 1.5%.
    • Commercial/horticultural crops: max 5%.
  • Balance subsidised by Centre & states.
  • Risk-sharing frameworks include:
    • Cup & cap model (80:110 / 60:130) – refunds to state treasury if claims < threshold; Centre/state share burden if claims exceed upper cap.
    • Profit-loss sharing model – government subsidy partly refunded to state if claims below a certain level.

Facts To Remember

1. Thumri loses its voice as Pandit Chhannulal Mishra passes away leaving a musical legacy

Thumri fell silent on Thursday as Pandit Chhannulal Mishra, the most mellifluous exponent of the semi-classical art form, passed on from age-related ailments.

2. Dharambir, Atul add to India’s medal tally

On a day the retreating monsoon decided to turn up in full force in the city, Dharambir Nain proved he was still one of the best, winning silver in the club throw F51 category on the fifth day of the 2025 World Para Athletics Championships.

3. Top seed Iniyan crowned National chess champion

GM P. Iniyan of Tamil Nadu won the 62nd National chess championships, remaining undefeated over 11 rounds in Guntur. 

4. India tops the table with 26 medals in Junior WC

Aleksandra Tikhonova beat Tejaswani 33-30 for the sports pistol gold in the Junior World Cup that concluded at the Dr. Karni Singh Range, Tughlakabad.

5. Global Agency Projections for India (FY26)

• CII: 6.4–6.7%
• IMF: 6.4%
• Fitch: 6.9% (FY26), 6.3% (FY27)
• S&P Global: 6.5%
• UN: 6.3% (FY26), 6.4% (FY27)
• OECD: 6.7%