Daily Current Affairs Quiz
8 October, 2025
National Affairs
1. People’s Plan Campaign (PPC) 2025–26
Source: PIB
Context:
The People’s Plan Campaign (PPC) is an annual initiative launched by the Ministry of Panchayati Raj to strengthen participatory, transparent, and accountable local governance. It seeks to ensure comprehensive planning and effective delivery of development schemes at the Gram Panchayat, Block Panchayat, and District Panchayat levels. The 2025–26 edition was formally launched on 2nd October 2025 across all States and Union Territories under the theme: “Sabki Yojana, Sabka Vikas”.
Key Features
Gram Panchayat Development Plan (GPDP)
- Gram Panchayats prepare GPDPs for economic development and social justice, reflecting community needs and priorities.
- The planning process is participatory, transparent, and inclusive, involving Gram Sabhas, frontline workers, Self-Help Groups (SHGs), and community organizations.
- Plans align with the 29 subjects in the Eleventh Schedule of the Constitution and are linked to Sustainable Development Goals (SDGs).
Multi-Level Planning
- Block Panchayat Development Plans (BPDPs) and District Panchayat Development Plans (DPDPs) are prepared at intermediate and district levels.
- Integrates Village Prosperity and Resilience Plans (VPRPs) prepared by SHG federations for holistic development.
Objectives of PPC
- Strengthen people’s participation in local development.
- Ensure convergence of Central, State, and local schemes.
- Promote gender-responsive governance through active involvement of Women Elected Representatives (WERs) and women community members.
- Improve transparency and accountability through public information campaigns and disclosure of finances and schemes on Gram Panchayat offices and public boards.
Digital & Monitoring Tools
- Use of digital platforms such as eGramSwaraj, Meri Panchayat App, Panchayat NIRNAY to track progress.
- Planning guided by Panchayat Advancement Index (PAI); deliberations improved using SabhaSaar tool.
Special Focus Areas
- Tribal empowerment under Adi Karmayogi Abhiyaan.
- Efficient utilization of unspent Central Finance Commission grants.
- Strengthening Panchayats’ Own Source Revenue (OSR).
2. PM-SETU (Prime Minister’s Scheme for Empowerment through Technology Upgradation)
Source: PIB
Context:
The Prime Minister of India recently launched the PM-SETU (Prime Minister’s Scheme for Empowerment through Technology Upgradation) — a landmark initiative to modernize India’s Industrial Training Institutes (ITIs) and align skill development with industry and global employment needs.
Overview
- Full Form: Prime Minister’s Scheme for Empowerment through Technology Upgradation (PM-SETU)
- Launched by: Prime Minister of India
- Nodal Ministry: Ministry of Skill Development and Entrepreneurship (MSDE)
- Type: Centrally Sponsored Scheme
- Project Duration: 2025–2028
- Total Outlay: ₹60,000 crore (shared by Centre and States)
Aims & Objectives
- Upgrade 1,000 government ITIs across India with advanced facilities.
- Align vocational training with current and future industrial skill requirements.
- Build a globally competitive and digitally empowered workforce.
- Bridge the gap between classroom learning and industry employability.
Key Features
- Hub-and-Spoke Model:
- 200 ITIs to serve as Hubs, each connected with 4 Spokes (total 800).
- Hubs to function as central innovation and resource centres.
- Modern Infrastructure:
- Integration of smart classrooms, digital learning tools, advanced machinery, and innovation labs.
- Industry Collaboration:
- “Government-owned, Industry-managed (GOIM)” model.
- Partnerships with CII, FICCI, and local industry associations for training, internships, and placement.
- Skill Innovation Ecosystem:
- Hubs to act as centres for trainer training, R&D, production, and start-up incubation.
- Sectoral Coverage:
- Focus on manufacturing, agriculture, hospitality, renewable energy, and new-age technologies like AI, robotics, and green tech.
3. Indian Radio Software Architecture (IRSA) Standard 1.0 Launched
Source: News on Air
Context:
The Defence Research and Development Organisation (DRDO) has launched the Indian Radio Software Architecture (IRSA) Standard 1.0, marking a major step toward standardising and modernising India’s defence communication systems.
The framework aims to promote interoperability, self-reliance, and technological integration across the Army, Navy, and Air Force.
About IRSA Standard 1.0
- IRSA 1.0 is India’s first national software architecture standard for Software Defined Radios (SDRs) used by the Indian Armed Forces.
- It establishes a unified framework for developing, integrating, and upgrading secure and interoperable military communication systems.
Developed By
- Defence Research and Development Organisation (DRDO)
- Integrated Defence Staff (IDS)
- Tri-Services (Army, Navy, Air Force)
Objectives
- Ensure interoperability among Software Defined Radio (SDR) platforms across all three services.
- Enable waveform portability — allowing communication waveforms to be reused or transferred across systems.
- Support future-readiness through scalable architecture adaptable to new technologies.
Key Features
- Unified Standard:
- Common software framework for all military SDR platforms.
- Waveform Portability:
- Enables reuse of existing communication waveforms across platforms and services.
- Scalability:
- Designed to integrate advanced technologies like AI, 5G, and cognitive radio systems for next-generation warfare.
- Interoperability:
- Ensures seamless communication across Army, Navy, and Air Force networks.
- Certification Framework:
- Establishes testing, validation, and security conformance standards to ensure reliability and robustness.
Awards & Recognitions
1. Nobel Prize in Physics 2025
Context:
The 2025 Nobel Prize in Physics has been awarded to John Clarke, Michel Devoret, and John Martinis for their pioneering experiments that deepened scientific understanding of the quantum world, particularly the phenomenon of quantum tunnelling.
About the Nobel Prize in Physics
- The Nobel Prize in Physics, first awarded in 1901, recognises outstanding contributions to the field of physical sciences that deepen our understanding of the universe.
- It is awarded annually by the Royal Swedish Academy of Sciences.
- The 2025 prize includes a monetary award of 11 million SEK (≈ ₹8.5 crore).
2025 Laureates
| Name | Institution | Country | Key Contribution |
|---|---|---|---|
| John Clarke | University of California, Berkeley | USA | Developed experimental methods to detect quantum effects in macroscopic systems |
| Michel H. Devoret | Yale University | USA | Advanced understanding of superconducting circuits and quantum coherence |
| John Martinis | University of California, Santa Barbara | USA | Built one of the first practical superconducting qubits for quantum computation |
Scientific Contribution
- The trio demonstrated macroscopic quantum tunnelling — a quantum phenomenon observable not just in atomic particles, but in large-scale electrical circuits.
- Their research established that energy in superconducting circuits can be quantised, behaving according to quantum mechanical laws rather than classical ones.
About Quantum Tunnelling
- Quantum tunnelling is a phenomenon where particles such as electrons can pass through energy barriers that they cannot cross under classical physics.
- Example: In classical terms, a ball rolling up a hill without enough energy would roll back — but in quantum mechanics, part of the ball’s wave function tunnels through the barrier, appearing on the other side.
- This principle is critical in semiconductors, nuclear fusion, and quantum devices.
Banking/Finance
1. RBI Holds Back Nationwide Launch of CBDC
Source: ET
Context:
The Reserve Bank of India (RBI) has stated it is in no hurry to roll out the Central Bank Digital Currency (CBDC) nationwide for retail users, preferring to observe how other countries implement their digital currencies first. The announcement was made by Deputy Governor Rabi Sankar during the Global Fintech Fest 2025 in Mumbai.
About CBDC (Central Bank Digital Currency)
- CBDC is a digital form of the Indian Rupee, issued and regulated by the Reserve Bank of India.
- It represents legal tender in electronic form, backed by the sovereign, and can be used for payments and settlements just like physical cash.
- It is broadly classified into:
- Retail CBDC (e₹-R): For individual consumers and merchants.
- Wholesale CBDC (e₹-W): For interbank and institutional settlements.
RBI’s Current Stance
- Cautious Approach: RBI will continue with limited pilot testing to study user behaviour, technology reliability, and cybersecurity implications.
- Learning from Others: The Bank intends to observe how other central banks — such as the People’s Bank of China (Digital Yuan) and European Central Bank (Digital Euro) — manage implementation challenges.
- Focus Areas: Interoperability with UPI, offline transactions, scalability, and fraud prevention.
Background
- The CBDC pilot project was launched by RBI in December 2022, beginning with wholesale and retail trials in select cities.
- The RBI has since expanded pilots to include offline payments, programmable transactions, and cross-border settlement testing.
2. World Bank Upgrades India’s Growth Outlook to 6.5%
Source: ET
Context:
The World Bank, in its South Asia Development Update (October 2025), has revised India’s GDP growth forecast upward to 6.5% for FY2025-26, up from the earlier 6.3%, citing strong domestic demand and the positive impact of GST rate cuts.
Key Highlights:
- Revised Projection: India’s growth for FY26 raised to 6.5% (from 6.3% earlier).
- FY27 Outlook: Trimmed to 6.3%, reflecting tariff uncertainties and weaker external demand.
- Current Momentum: India’s GDP grew 7.8% in Q1 FY26, supported by robust consumption and investment.
- Export Risks: U.S. tariffs—up to 50% on nearly 75% of Indian goods exports—may weigh on manufacturing and external growth.
- Regional Outlook: South Asia’s growth projected to moderate from 6.6% (2025) to 5.8% (2026).
- Positive Drivers: Better rural demand, agricultural recovery, GST simplification, and improved compliance have strengthened domestic resilience.
- Structural Outlook: World Bank emphasized that AI adoption, trade liberalization, and productivity reforms can unlock higher long-term growth potential.
3. RBI Proposes Granular Risk Weighting Norms for Bank Exposures
Source: BS
Context:
The Reserve Bank of India (RBI) has released a draft framework revising risk weights for bank exposures to corporates, MSMEs, retail portfolios, and real estate. The move aligns with Basel Committee on Banking Supervision (BCBS) reforms and aims to make capital requirements more risk-sensitive while reducing capital pressure on banks.
Key Highlights:
- Effective Date: April 1, 2027
- Objective: Implement Basel III credit risk reforms in the Indian context, encouraging prudent lending and better capital management.
Risk Weight:
Risk weight refers to the percentage of a bank’s loan or asset value that is considered “risky” for the purpose of calculating how much capital the bank must hold as a safeguard against potential losses.
Risk Weight = How risky an asset is for the bank.
- A higher risk weight means the loan is riskier — so the bank must keep more capital aside.
- A lower risk weight means the loan is safer — so the bank can lend more freely.
Example:
Suppose a bank gives:
- ₹100 crore loan to a central government → Risk weight = 0%
- Bank need not keep any capital because sovereign debt is considered risk-free.
- ₹100 crore loan to a corporate → Risk weight = 100%
- Bank must keep capital against the full ₹100 crore exposure.
If the capital adequacy ratio (CAR) requirement is 9%, then:
- For 0% risk weight → Required capital = 0
- For 100% risk weight → Required capital = ₹9 crore
Retail & MSME Portfolio
- Risk Weight: 75% for fund-based and non-fund-based exposures to individuals, groups, or MSMEs.
- Eligibility Criteria:
- Consolidated group annual sales ≤ ₹500 crore.
- Individual borrower exposure ≤ ₹7.5 crore.
- Portfolio must be well-diversified—no single exposure > 0.2% of the retail portfolio.
- Impact: Lower capital requirements for banks’ MSME and retail exposures, encouraging credit flow to small businesses.
Corporate Exposure
- AAA & AA-rated entities: 20% risk weight (lower capital charge).
- BB-rated entities: 100% risk weight.
- Unrated exposures: Higher capital requirements based on the nature of lending.
Specialised Lending
Includes Object Finance, Commodity Finance, and Project Finance categories.
- Unrated exposures:
- Object/Commodity Finance – 100%
- Project Finance (pre-operational phase) – 130%
- Project Finance (operational phase) – 80% (high-quality) / 100% (non-high-quality)
Housing & Real Estate Loans
- Primary Residence Loans:
- Up to two housing loans per borrower treated as primary.
- Risk weight based on Loan-to-Value (LTV) ratio:
- LTV < 50% → 20% risk weight
- LTV 80–90% → 40% risk weight
- Third Housing Loan: Higher risk weight applied.
- Commercial Real Estate: 150% risk weight.
- Residential Real Estate (construction/development): 100% risk weight.
4. RBI Draft Frameworks on Bank Provisioning and Capital Requirements
Source: BS
Context:
On 7 October 2025, the Reserve Bank of India (RBI) released two important draft frameworks aimed at strengthening prudential regulation and improving credit risk management in banks:
- Expected Credit Loss (ECL)-based provisioning norms for stressed loans and securities.
- Frameworks are proposed to take effect from April 1, 2027.
Expected Credit Loss (ECL) Framework
Objective
To replace the current incurred-loss-based provisioning system with a more forward-looking ECL-based model, aligning Indian banking standards with IFRS 9 and global best practices.
Key Features
- Implementation timeline: Begins April 1, 2027; banks get four years (till March 31, 2031) to make additional provisions on the existing book.
- Model Components:
- Probability of Default (PD)
- Loss Given Default (LGD)
- Exposure at Default (EAD)
- Three-stage Classification for Credit Risk:
- Stage 1: No significant increase in credit risk (SICR); 12-month ECL.
- Stage 2: Significant increase in credit risk; lifetime ECL.
- Stage 3: Credit-impaired assets; lifetime ECL.
- Transitional Adjustment:
- The difference between new ECL-based provisions and current provisions (as of March 31, 2027) will be added back to Common Equity Tier 1 (CET1) capital.
- Asset Classification:
- NPAs will continue to be classified under existing norms.
- Provisions, however, will follow ECL calculations.
- Model Risk Management:
- Banks must adopt model governance principles to ensure accuracy and consistency in ECL computation.
5. RBI Prioritises Use Cases Over Mass Rollout of Digital Rupee
Source: Mint
Context:
At the Global Fintech Fest 2025, Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar said that the central bank is prioritising the development of new use cases for the Central Bank Digital Currency (CBDC), or e-rupee, rather than expanding its user base immediately.
Key Highlights:
- Focus on Programmable Use Cases:
RBI aims to make the e-rupee programmable for specific uses — such as merchant category, geography, or time period.
The goal is to ensure ease of use even for individuals unfamiliar with technology. - Government Scheme Integration:
Programmable CBDC features are being designed to enable direct digital payouts for government schemes and subsidies. - No Mass Rollout Yet:
The e-rupee currently has around 7 million users.
The RBI will wait for other countries to advance their own CBDC systems to ensure cross-border interoperability before scaling up. - Cross-Border Focus:
RBI emphasised that the “basic use case” for CBDC will be in cross-border payments, enhancing global settlement efficiency.
New Functionalities Announced
- Mobile-Linked Wallet Payments:
CBDC wallets can now be linked to mobile numbers, allowing users to make peer-to-peer payments without a bank account. - Integrated CBDC Access Platform:
A unified platform under NPCI allows users to access CBDC wallets across multiple banks in one place. - Solar Credit Trading via e-Rupee:
Retail users of solar rooftops can now trade energy credits directly through the e-rupee ecosystem. - Multi-Signatory Accounts on UPI:
RBI launched a multi-signatory/joint account feature for the Unified Payments Interface (UPI), improving flexibility for households and small businesses.
6. SEBI to Review ‘Fit and Proper Person’ Rule
Context:
The Securities and Exchange Board of India (SEBI) informed the Bombay High Court that it will review a controversial provision in its ‘fit and proper person’ criteria that disqualifies key managerial personnel (KMPs) and directors at market intermediaries merely for having a chargesheet filed against them.
This development follows petitions filed in 2023 by leading brokerage firms, including Motilal Oswal Financial Services and Anand Rathi Shares and Stock Brokers, challenging the rule as unconstitutional.
About the ‘Fit and Proper Person’ Criteria
- The rule determines eligibility and integrity standards for entities and individuals associated with SEBI-regulated intermediaries such as brokers, mutual funds, investment advisers, and rating agencies.
- It ensures that those managing or controlling intermediaries are of sound reputation, integrity, and competence.
Background
- The ‘fit and proper person’ framework was first introduced in 2004, and later subsumed under the SEBI (Intermediaries) Regulations, 2008.
- In November 2021, SEBI amended the regulations, introducing automatic trigger-based disqualifications in place of case-by-case assessments.
- Under the new clause (Clause 6, Schedule II), any individual named in a chargesheet or accused of an economic offence is automatically deemed “not fit and proper”.
The Controversial Clause
- Presently, filing of a chargesheet — even without conviction — can automatically disqualify an individual from being considered fit and proper.
- This has raised concerns about fairness and due process, as it penalises individuals before judicial determination of guilt.
SEBI’s Stand
- SEBI told the court that it will re-examine and review the provision to ensure it aligns with principles of natural justice and proportionality.
- The review will balance market integrity with individual rights, preventing misuse while maintaining investor confidence.
7. RBI Draft Ombudsman Scheme 2025
Source: TOI
Context:
The Reserve Bank of India (RBI) has released the draft Ombudsman Scheme 2025, aimed at strengthening grievance redressal mechanisms for customers of regulated entities. The draft seeks to provide a cost-effective, non-adversarial, and comprehensive platform for resolving disputes.
Key Highlights:
- Broader powers: The RBI ombudsman will have authority to handle complaints related to any deficiency in service by regulated entities, without any cap on the financial value of disputes.
- Compensation limits:
- Up to ₹30 lakh for consequential loss.
- Up to ₹3 lakh for harassment, time lost, or mental anguish.
- Shift in scope: The ombudsman’s role will expand from a primarily advisory and facilitative function to a decisive authority with high compensation powers.
- Comparison with current scheme: The Integrated Ombudsman Scheme currently has a dispute value limit of ₹50 lakh, which will be removed under the new draft.
Significance
- Enhances consumer protection in the financial sector.
- Provides a more robust mechanism for addressing complaints, including high-value disputes.
- Aligns with RBI’s objective of strengthening accountability and trust in regulated entities.
8. PhonePe and Utkarsh Small Finance Bank Launch “Wish Credit Card”
Context:
Digital payments platform PhonePe and Utkarsh Small Finance Bank (SFB) have jointly launched the “Wish Credit Card”, aimed at providing affordable and accessible credit to a wider section of users, especially those new to formal credit.
About the “Wish Credit Card”
Issuer: Utkarsh Small Finance Bank
Powered by: Visa Network
Distributed through: PhonePe app
Objective:
To expand credit inclusion by offering customised, flexible, and digital-first credit card solutions for both urban and semi-urban users.
Key Features
- Instant Digital Issuance: Customers can apply and get the card instantly through the PhonePe app with 100% digital onboarding.
- Customised Credit Limits: Based on user profile and spending behaviour.
- Rewards and Cashback: Offers reward points and cashback on digital payments, shopping, and bill payments.
- Secure Transactions: Enabled with advanced Visa security protocols and real-time transaction alerts.
- Accessibility: Targeted at first-time credit users, helping them build credit history.
9. PayPal Launches “PayPal World” – Global Interoperable Wallet Platform
Context:
At the Global Fintech Fest 2025 in Mumbai, PayPal CEO Alex Chriss announced the launch of “PayPal World”, a globally interoperable digital wallet platform that connects domestic digital wallets across countries. The platform’s first payments partner is India’s Unified Payments Interface (UPI).
About PayPal World
A cross-border payment interoperability platform that links domestic digital wallets (like UPI in India, Alipay in China, Venmo in the US, etc.) with PayPal’s global network, enabling seamless international transactions.
10. Fino Payments Bank Settles SEBI Case for ₹5.8 Lakh
Context:
Fino Payments Bank has settled a securities law violation case with the Securities and Exchange Board of India (SEBI) by paying a settlement amount of ₹5.8 lakh.
Details of the Case
- Issue:
- The case pertained to non-disclosure of material information regarding fraudulent activities committed by certain employees, which is a violation under SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations.
- Violation:
- Fino Payments Bank allegedly failed to promptly inform the stock exchanges about incidents of internal fraud — a material event that could impact investor decisions.
Facts To Remember
1. IAF Celebrates 93rd Anniversary with Aerial Display at Hindan Airbase
The 93rd anniversary of the Indian Air Force (IAF) was commemorated at Air Force Station Hindan in Uttar Pradesh’s Ghaziabad today. This Air Force Day celebration included a spectacular aerial display by the Heritage Flight.
2. India to Host 8th International Solar Alliance Assembly in New Delhi from Oct 27–30
India is set to host the 8th Session of the International Solar Alliance Assembly from 27th to 30th October at Bharat Mandapam in New Delhi.
3. India Wins Global Social Security Award; Mandaviya Unveils Draft ‘Shram Shakti Niti 2025’
India has been conferred with the Outstanding Achievement in Social Security Award 2025 by the International Social Security Association.
4. Union Minister Nitin Gadkari Inaugurates India’s First Electric Truck Battery Swapping Station in Sonipat
Union Minister of Roads, Transport and Highways Mr Nitin Gadkari today inaugurated India’s first commercial electric truck battery swapping and charging station at the Delhi International Cargo Terminal Private Limited (DICT) in Panchi Gujran village on the GT Road near Ganaur in Sonipat.
5. IT Secretary S Krishnan Launches Smart Agri Quality and Environmental Monitoring Tech
Secretary, Ministry of Electronics and Information Technology, S Krishnan today launched the products on Smart Quality Analysis of Agri Produces and Environmental Monitored Technologies.
6. PM Modi Inaugurates 9th India Mobile Congress; Says Digital Connectivity is no Longer a Luxury
Prime Minister Narendra Modi today inaugurated the ninth edition of the India Mobile Congress 2025, Asia’s largest telecom, media, and technology event at Yashobhoomi in New Delhi.
7. PM Modi hails ₹24,000 Cr rail projects to boost connectivity across four states
Prime Minister Narendra Modi has said that Union Cabinet approval for four key multi-tracking projects of the Indian Railways worth over 24,000 crore across Maharashtra, Madhya Pradesh, Gujarat and Chhattisgarh
