Daily Current Affairs (DCA) 28&29 November, 2025

Daily Current Affairs Quiz
28 & 29 November, 2025

International Affairs

1. G20 Johannesburg Summit 2025

Context:

• The 2025 G20 Summit in Johannesburg, South Africa, highlighted geopolitical divides, with the US, China, and Russia absent.
• South Africa pushed through a Leaders’ Declaration despite US objections, underlining the influence of middle powers and the Global South.

About G20 – Establishment and Evolution

Origin and Purpose:

• Established: 1999, after the Asian Financial Crisis (1997–98).
• Initial Format: Forum of Finance Ministers and Central Bank Governors to stabilize global finance.
• Upgrade: Post-2008 Global Financial Crisis, elevated to Leaders’ Summit to coordinate macroeconomic responses.
• From G8 to G20: Inclusion of emerging economies (China, India, Brazil, Saudi Arabia) created a de facto “economic security council”.
• Mandate Expansion: Over time, G20 covers finance, trade, climate, energy, health, food security, digital governance, and development.
• Platform for Emerging Powers: Provides a voice to countries like India, Brazil, and South Africa amid UNSC stagnation.

Presidency:

• Annual Rotational Presidency: Rotates among member countries, giving the host country agenda-setting power.
• 2025 Host: South Africa, emphasizing Africa-centric development and Global South priorities.

G20 Johannesburg 2025

• UNSC Reform: Calls for representation of Africa, Latin America, and Asia-Pacific, reflecting modern geopolitical realities.
• Climate & Finance Commitments: Scaling climate finance from billions to trillions, ensuring just transitions, and supporting vulnerable economies.
• Debt & Cost of Capital: Launch of a Cost of Capital Commission to address Global South debt burden (USD 1.8 trillion) and unfair borrowing costs.
• Social Targets:
  • Nelson Mandela Bay Target: Reduce NEET youth share by 5% by 2030.
  • Gender parity: 25% labour force participation by 2030.
• Critical Minerals Framework: Secures sustainable and diversified mineral value chains and local beneficiation.
• Mission 300 & Energy Access: Brings electricity to 300 million people in Sub-Saharan Africa by 2030.

Geopolitical Tensions

• Absence of Big Three: US, China, Russia absent → summit influenced by middle powers.
• US–South Africa Clash: US opposed climate and debt language, refused the declaration, accusing South Africa of “weaponising” presidency.
• Other Frictions:
  • Argentina (Milei government) withdrew over Middle East conflict references.
  • Europe focused on Ukraine, while Global South emphasized Gaza and humanitarian issues.

National Affairs

1. IMF Assigns Second-Lowest ‘C’ Rating to India’s National Accounts Statistics (NAS) and Inflation Data

Source: BS

Context

The International Monetary Fund (IMF) currently rates India’s national accounts data at ‘C’, the second-lowest grade in its four-tier Data Adequacy Assessment (DAA) scale. The IMF assesses the adequacy of official statistics for surveillance of a country’s economy. A ‘C’ rating indicates that data shortcomings somewhat hamper economic surveillance.

Following India’s announcement of a new GDP and CPI series, the IMF is expected to upgrade its rating in early 2026.

Key Highlights:

National Accounts Statistics (NAS): Received a ‘C’ grade.

• Implication: Data is available regularly, but methodological weaknesses hinder cross-country comparability and effective economic surveillance.

Consumer Price Index (CPI): Graded ‘B’, meaning it is broadly adequate but with some shortcomings.

Current Status and IMF Assessment

• India’s DAA rating of ‘C’ has persisted for two consecutive years (2024–25).
• Concerns cited by IMF staff include:
  • Outdated base year (2011-12) for GDP
  • Single deflation methods introducing cyclical biases
  • Gaps between production and expenditure approaches
  • Limited coverage of the informal sector
• IMF notes India’s data is broadly adequate, but further improvements would enhance surveillance and policy formulation.

Reasons for ‘C’ Grade – IMF Observations

1. Outdated Base Year:
   • GDP and CPI still rely on 2011–12 consumption and production structures, not reflecting the modern economy.
2. Use of WPI as Deflators:
   • Absence of a comprehensive Producer Price Index (PPI) forces reliance on wholesale prices, weakening real GDP estimates.
3. Production vs Expenditure Gaps:
   • Recurring discrepancies indicate undercoverage of expenditure data and significant informal sector activity.
4. Limited Seasonal Adjustment:
   • Quarterly GDP lacks robust seasonal adjustments, affecting growth trend analysis.
5. Need for Better Statistical Techniques:
   • IMF recommends improved modelling practices for national accounts.

India’s National Accounts Statistics (NAS)

Publisher: Ministry of Statistics and Programme Implementation (MoSPI)

Purpose:

• Provides a comprehensive macroeconomic database of India’s economy, including GDP, GVA, consumption, investment, savings, and related aggregates.

Methodology:

• System Followed: UN System of National Accounts (SNA-2008)
• Income Approach (Primary): GDP estimated using incomes of households, enterprises, and government.
• Expenditure Approach (Supplementary): GDP estimated via consumption, investment, government spending, and net exports.
• Sectoral GVA Method: Value added computed across agriculture, industry, services at current and constant (2011–12) prices.

Key Indicators Published:

• GDP & GVA: Sector-wise and aggregate
• Consumption Expenditure: Private and government
• Gross Capital Formation (GCF): Machinery, construction, valuables
• Savings & Investment Rates across sectors
• National Income, Disposable Income, Per-Capita Indicators

Upcoming Revisions in India’s Data

• GDP base year: Updated to 2022-23, first revision since 2015.
• CPI base year: Updated to 2024 to better reflect consumption patterns.
• Methodological improvements:
  • Better volume estimates using double deflation techniques with producer price indices
  • Inclusion of new data sources and improved statistical methods for quarterly GDP
• Expected launch: February 2026

Other Improvements Highlighted by Indian Officials

• Balance of Payments (BoP):
  • Released with a 2-month lag from Q1 FY26
  • RBI plans monthly BoP statistics (lag ~40 days, more aggregate level)
• National accounts compilation: Uses data from private corporate and government accounts, improving coverage and granularity
• Suggested regular benchmark revisions for national accounts, prices, and other data sets in line with international best practices

IMF Recommendations for Further Improvements

• Conduct population census to ensure survey representativeness (last in 2011–12)
• Provide timely consolidated government fiscal accounts
• Expand data coverage for NBFCs
• Improve timeliness and granularity of systemic financial linkages

2. Samudrayaan Mission

Context:

India’s first manned deep-sea mission, Samudrayaan, has hit a timeline setback due to delays in receiving syntactic foam cladding from France. The foam is essential for providing buoyancy to the submersible MATSYA 6000, which is designed to dive 6,000 metres into the ocean. The mission is led by the National Institute of Ocean Technology (NIOT), Chennai under the Ministry of Earth Sciences.

What is Samudrayaan?

• India’s first crewed submersible mission to explore the deep ocean.
• Objective: Aims to reach 6,000 metres (Hadopelagic zone), a depth accessed by only a few countries.
• Submersible: MATSYA 6000
• Lead Agency: National Institute of Ocean Technology (NIOT), Chennai
• Governing Body: Ministry of Earth Sciences
• Three crew members will descend to the ocean floor to collect soil, rock, and mineral samples — critical for future deep-sea mining of polymetallic nodules and rare metals.

3. Tex-RAMPS Scheme

Source: TOI

Context:

• Strengthen research, innovation, and data systems in India’s textiles and apparel sector.
• Future-proof the sector through technology adoption, data-driven decision-making, capacity building, and entrepreneurship support.

Implementing Ministry:

• Ministry of Textiles, Government of India
• Type: Central Sector Scheme (fully funded by the Centre)

Financial Outlay:

• ₹305 crore for 2025–31, aligned with the next Finance Commission cycle for continuity

Key Components

• Research & Innovation:
  • Support for advanced R&D in:
    • Smart textiles
    • Sustainable textile technologies
    • Process efficiency
    • Emerging textile innovations
• Data, Analytics & Diagnostics:
  • Development of robust data systems for:
    • Employment mapping
    • Supply chain studies
    • India-Size project for sector-specific analysis
• Integrated Textiles Statistical System (ITSS):
  • Real-time analytics platform
  • Enables structured monitoring and evidence-based decision-making
• Capacity Development:
  • Enhances State-level planning
  • Knowledge sharing via workshops, best practices, and training programs
• Start-up & Innovation Support:
  • Funding for incubators, hackathons, and academia–industry partnerships
  • Boosts textile entrepreneurship and innovation ecosystem

Key Features

• Smart & Sustainable Focus: Aligns with global technology trends and green manufacturing.
• Structured Monitoring: ITSS ensures real-time visibility into sector performance nationwide.
• Uniform Implementation: Fully funded Central Sector Scheme ensures consistency across states.

4. India’s Revised Earthquake Design Code – 2025

Source: TOI

Context:

• India released a radically updated seismic zonation map under the revised Earthquake Design Code (IS 1893:2025).
• Entire Himalayan arc (J&K–Ladakh to Arunachal Pradesh) placed in a newly created highest-risk Zone VI, reflecting extreme tectonic stress for the first time.

Publishing Authority:

• Bureau of Indian Standards (BIS)
• Methodology: Probabilistic Seismic Hazard Assessment (PSHA) based on international standards

Key Features of the Revised Seismic Zonation Map

• Zone VI – Highest Risk:
  • Entire Himalayan arc classified as Zone VI, recognizing consistent tectonic stress along the Indian–Eurasian plate boundary.
• Wider Hazard Coverage:
  • 61% of India now falls under moderate to high seismic hazard zones, reflecting scientific modelling rather than just past earthquake epicentres.
• Boundary Towns Upgrade:
  • Cities on the boundary of two zones automatically assigned the higher-risk zone, emphasizing geological realities over administrative boundaries.
• Rupture Propagation Southwards:
  • Himalayan Frontal Thrust ruptures may extend south to foothill regions like Dehradun, influencing design codes there.
• Mandatory Structural & Non-Structural Safety:
  • Anchoring of parapets, ceilings, tanks, façades, HVAC units if weight exceeds 1% of total load.
  • Buildings near active faults must resist pulse-like ground motions typical of near-fault earthquakes.
• Soil & Ground Response Requirements:
  • Detailed provisions for liquefaction, soil flexibility, site-specific shaking spectra.
  • Encourages geotechnical investigations before major construction.
• Exposure Mapping – PEMA Method:
  • Integrates population density, infrastructure concentration, and socioeconomic vulnerability.
  • Focus on impact-based hazard assessment, linking geological hazard with societal exposure.

5. S-500 Prometey Air Defence System

Context:

PM of India and President of Russia to meet during the India–Russia Summit. Defence ministers expected to discuss India’s potential acquisition of Russia’s next-generation S-500 air defence system.

S-500 Prometey Air Defence System

Purpose:

• Russia’s most advanced long-range surface-to-air and anti-space defence system.
• Capable of intercepting:
  • Aircraft
  • Ballistic missiles
  • Hypersonic weapons
  • Low-orbit satellites

Key Features

• Ultra-long Range: Intercepts targets up to 600 km away.
• Near-Space Interception: Operates at altitudes up to 200 km, including low-Earth-orbit objects.
• Hypersonic Interceptors: Missiles 77N6-N / 77N6-N1 travel at Mach 5–7 using hit-to-kill accuracy.
• Multi-Target Engagement: Can neutralize stealth jets, ballistic missiles, hypersonic glide vehicles, and drones.
• Advanced Radar Suite: 91N6A(M) & 96L6-TsP radars detect threats up to 800 km, including stealth aircraft.

Banking/Finance

1. RBI Issues 244 Consolidated Master Directions to Simplify Compliance

Source: ET

Context:

The Reserve Bank of India (RBI) has issued 244 Consolidated Master Directions (MDs) to streamline and rationalise decades of regulatory instructions for Regulated Entities (REs). This step follows a review of around 3,500 prior directions, circulars, and guidelines and aims to reduce compliance burden.

Key Highlights:

Customer Consent and Choice

• Banks must obtain explicit consent from customers for providing digital banking services, which should be recorded/documented.
• Mandatory opt-in prohibited: Customers cannot be forced to use digital channels to avail banking facilities like debit/credit cards.
• Banks may collect mobile numbers for transaction alerts and KYC compliance.
• Customers retain the sole right to apply for digital banking services.

Risk Mitigation Requirements

• Banks must implement risk-based controls, including:
  • Transaction limits (per transaction, daily, weekly, monthly)
  • Transaction velocity checks
  • Fraud detection systems
• Compliance with RBI and payment system operator guidelines (e.g., NPCI, VISA, Mastercard) is mandatory, applying the stricter standard when requirements differ.
• Continuous adherence to DPSS instructions under the Payment and Settlement Systems Act, 2007.

Accessibility and Network Independence

• Mobile banking services (excluding mobile apps) must be accessible across all mobile networks.
• Ensures network independence, promoting financial inclusion.

Monitoring and Surveillance

• Banks must have transaction monitoring systems to track unusual patterns.
• Outlier transactions may require prior confirmation from the customer.
• Fraud Risk Management Policy should guide these risk assessment protocols.

Restrictions on Third-Party Offerings

• Third-party products and services, including subsidiaries, JV partners, or promoter group entities, cannot be displayed on digital channels unless RBI permits.

Communication Guidelines

• Banks must clearly communicate that SMS/email alerts will be sent only to registered mobile numbers/emails.

Regulated Entities Covered

The consolidation covers the following 11 types of entities:

1. Commercial Banks
2. Small Finance Banks
3. Payments Banks
4. Local Area Banks
5. Regional Rural Banks
6. Urban Cooperative Banks
7. Rural Cooperative Banks
8. All India Financial Institutions
9. Non-Banking Financial Companies (NBFCs)
10. Asset Reconstruction Companies (ARCs)
11. Credit Information Companies

Objective

• Reduce compliance complexity and duplication.
• Make it easier for REs to interpret and implement regulatory instructions.
• Strengthen transparency and governance by organising directives systematically.

2. IMF Gives ‘C’ Grade to India’s National Accounts Statistics

Source: IE

Context:

The International Monetary Fund (IMF), in its Annual Article IV Review, has assigned a ‘C’ grade to India’s national accounts statistics, including GDP and GVA. This grade is significant as India is set to release the Q2 FY25 national accounts data on Friday.

Meaning of ‘C’ Grade

• A ‘C’ grade indicates that data have shortcomings which hamper effective surveillance.
• Four grading categories exist: A, B, C, and D.
• For overall data quality across all categories, India received a ‘B’ grade.

Weaknesses Cited by IMF

1. Outdated Base Year (2011–12)

• The national accounts still rely on the 2011–12 base year, making GDP estimates less reflective of current economic structure.
• The IMF recommends updating it to capture changes in consumption, production, and technological shifts.

2. Use of Wholesale Price Index (WPI) for Deflators

• Due to the absence of Producer Price Indices (PPI), India uses WPI as a deflator.
• This affects the accuracy of real GDP estimates, especially in a services-led economy.

3. ‘Sizeable Discrepancies’ in GDP Estimates

• The IMF flagged periodic mismatches between:
  • Production approach, and
  • Expenditure approach of GDP.
• These discrepancies suggest:
  • Inadequate coverage of the expenditure-side data, and
  • Limited reflection of the informal sector, which is a major part of India’s economy.

Approaches to GDP Measurement in India

1. Income Approach (Primary method used by India)

Measures GDP by adding up incomes earned by:

• Government
• Households
• Companies

2. Expenditure Approach (Supplementary estimate)

Measures GDP by calculating spending by:

• Households
• Businesses
• Government
• External sector

Differences frequently arise due to:

• Different data sources
• Coverage gaps
• Limited visibility of informal sector activities

3. FinMin and RBI Developing Unified Portal for Unclaimed Financial Assets

Source: ET

Context:

The Ministry of Finance, in collaboration with the Reserve Bank of India (RBI), is developing a single unified digital portal to help individuals locate and claim unclaimed financial assets across multiple asset classes. The announcement was made by M. Nagaraju, Secretary, Department of Financial Services, during a PNB-led investor awareness event under Aapki Poonji Aapka Adhikar.

Unclaimed Financial Assets

Unclaimed Assets refer to money or financial instruments that legally belong to an individual but remain untouched, unwithdrawn, or unclaimed for a long period.
These assets typically become “unclaimed” because the owner:

• Forgot about the investment or deposit,
• Moved without updating contact details,
• Passed away and the heirs were unaware,
• Lost access due to inactive accounts or documentation issues.

Banks must transfer unclaimed bank deposits (10+ years) to the Depositors Education and Awareness Fund (DEAF) maintained by RBI.

Unified Portal for All Unclaimed Assets

• The portal will consolidate information on unclaimed bank deposits, pension funds, shares, dividends, and other financial instruments.
• Objective: To make it easier for savers and retail investors to identify, verify, and claim long-dormant or forgotten assets.
• This eliminates the need to visit multiple platforms maintained by banks, EPFO, insurance companies, or corporate registrars.
• The portal is being jointly developed by the Ministry of Finance and the Reserve Bank of India, ensuring regulatory integration and verified data flow.

What Is an Inoperative Account?

An Inoperative Account is a bank account that has seen no customer-initiated transaction for a fixed period.

• A savings/current account becomes inoperative if there is no customer-initiated transaction for 2 consecutive years.
• Automatic entries like interest credit, service charges, or penalty deductions do NOT count as customer-initiated transactions.

4. IMF Report: Zombie Firms Highlight Inefficient Insolvency Resolution in India

Source: BS

Context:

The International Monetary Fund (IMF), in its recent staff report on the Indian economy, highlighted structural inefficiencies in India’s business environment, low business dynamism, and issues in the insolvency resolution framework under the Insolvency and Bankruptcy Code (IBC) Amendment Bill. The report emphasised the prevalence of zombie firms and gaps in operational creditor rights.

Low Business Dynamism

• Entry and exit rates of firms in India are below 1%, far lower than 8–13% in US, Europe, Korea, and Chile.
• Low entry rates partly reflect high regulatory compliance burdens.
• Overall, India shows structural rigidities, discouraging formal sector participation.

Persistence of Zombie Firms

Zombie Firms are businesses that continue to operate but are financially weak and unable to generate enough profits to cover their interest payments for a prolonged period.

• 15% of continuously operating firms qualify as zombie firms:
  • Do not generate enough earnings to cover interest expenses.
  • Operate at low productivity levels.
• Causes include:
  • Forbearance lending
  • Inefficient insolvency resolution
  • Limited exit mechanisms for non-viable firms.

IBC Amendment Bill Gaps

• Operational creditors still lack the right to vote on resolution plans.
• No rules for executory contracts, limiting the possibility of restructuring ongoing business operations instead of outright sale.
• Anticipated to expedite bankruptcy resolution, but gaps remain in governance and operational efficiency.

Recovery Rates and Pre-admission Delays

• Recovery rates for financial creditors declined:
  • From 43% in March 2019 → 33% in June 2025.
• Pre-admission delays (filing to case opening) worsened:
  • Operational creditors face an average wait of 650 days in 2022 vs 450 days in 2019.

Recommendations by IMF

• Complement legislative reforms with:
  • Strengthened judicial capacity via dedicated tribunal benches.
  • Adequate funding for tribunals.
  • Operationalisation of the personal insolvency regime.
• Improve credit allocation to redirect resources from low-productivity to high-productivity firms.

5. Bandhan Bank to Sell Unsecured Non-Performing Assets (NPAs)

Source: IE

Context:

Kolkata-headquartered Bandhan Bank has announced plans to sell unsecured retail non-performing assets (NPAs), including written-off accounts, worth ₹6,931.31 crore to Asset Reconstruction Companies (ARCs) and other permitted entities. This marks one of the largest retail NPA sales by a private sector bank in India, primarily from its microfinance portfolio.

What is an NPA (Non-Performing Asset)?

A Non-Performing Asset (NPA) is a loan or advance where the borrower has stopped making scheduled payments (principal or interest) for a certain period.
As per RBI norms:

When does a loan become NPA?

A loan is classified as NPA after 90 days of overdue in the case of:

• Term loans
• Cash credit/overdraft accounts that remain out of order
• Bills purchased and discounted
• Agricultural loans (with seasonal norms)

Categories of NPAs

1. Sub-standard Asset: NPA for ≤ 12 months
2. Doubtful Asset: NPA for > 12 months
3. Loss Asset: Identified as uncollectable (but not fully written off)

In simple words:
If a borrower does not pay for 90 days, the bank stops recognising income from that loan and marks it as NPA.

Norms to Sell NPAs (As per RBI Guidelines)

Banks can sell NPAs to:

• Asset Reconstruction Companies (ARCs),
• Other Banks,
• NBFCs,
• Financial Institutions,
  as permitted by RBI.

Eligibility for Sale

• Only stressed assets classified as NPA or
• Standard assets under stress (SMA accounts)
  can be sold.
• Written-off accounts can also be sold.

6. RBI Final Guidelines on Digital Banking Channels

Source: TH

Context:

The Reserve Bank of India (RBI) has issued its final instructions for banks on digital banking channels, emphasizing customer consent, risk management, and operational compliance.

The guidelines clarify that digital banking cannot be made mandatory for accessing other services, such as debit cards.

Key Provisions

Explicit Customer Consent

• Banks must obtain clear and documented consent from customers before activating any digital banking channel.
• Customers’ choice to opt for digital banking is voluntary.

Mobile Number Collection

• Banks can collect and record customers’ mobile numbers for:
  • Transaction alerts
  • KYC compliance at account opening

Risk Mitigation Measures

• Banks may implement internal risk controls such as:
  • Transaction limits (per transaction, daily, weekly, monthly)
  • Transaction velocity limits
  • Fraud checks
• These measures must align with the bank’s Fraud Risk Management Policy.

Risk-Based Monitoring

• Banks must have transaction surveillance mechanisms:
  • Study customer transaction patterns
  • Flag unusual transactions
  • Seek prior confirmation for outlier transactions

Network-Independent Mobile Banking

• Mobile banking services must be accessible across all mobile network operators.

Restrictions on Third-Party Products

• Banks cannot display third-party or group-company products on digital channels unless explicitly permitted by RBI.

Policy and Oversight

• Banks must have a comprehensive digital banking policy covering:
  • Liquidity management
  • Operational risk management
• Senior management remains responsible for overseeing risks.

Launch of Transaction Banking Facilities

• Banks require RBI approval before launching fund-based or non-fund-based transaction banking services.

7. RBI Imposes ₹91 Lakh Penalty on HDFC Bank

Source: TOI

Context:

The Reserve Bank of India (RBI) has imposed a penalty of ₹91 lakh on HDFC Bank following violations detected during its Statutory Inspection for Supervisory Evaluation (ISE 2024), which assessed the bank’s financial position as on March 31, 2024.

The penalty is for non-compliance with the Banking Regulation (BR) Act, RBI directions, and related guidelines.

Key Findings

1. Interest Rate Benchmark Violations

• The bank adopted multiple interest rate benchmarks within the same loan category, contrary to RBI norms.

2. Unauthorized Business Activities

• A wholly-owned subsidiary engaged in business activities not permitted under Section 6 of the BR Act.

3. KYC Outsourcing Non-Compliance

• The bank outsourced compliance with KYC norms for certain customers to agents, which violated RBI regulations requiring banks to maintain oversight and accountability.

Norms / Provisions Violated by HDFC Bank

When RBI carried out its Statutory Inspection for Supervisory Evaluation (ISE 2024) — as of 31 March 2024 — it found multiple violations by HDFC Bank. The key norms breached were:

• Violation of certain provisions of the Banking Regulation Act, 1949 (BR Act), especially Section 19(1)(a) and Section 6(1).
• Non-compliance with RBI’s regulatory directions regarding:
  1. Interest Rate on Advances (i.e. lending/loan interest rate norms).
  2. Code of Conduct and Risk Management Guidelines for Outsourcing of Financial Services by banks (i.e. improper outsourcing).
  3. Know Your Customer (KYC) norms — regulatory standards on customer identification, due diligence, and ongoing compliance.

8. SEBI Proposes Social Media Disclosure Norms for Regulated Entities

Context:

The Securities and Exchange Board of India (SEBI) has proposed new guidelines for regulated entities and their agents regarding social media usage. The move aims to enhance transparency and protect investors from misleading content.

Key Proposals

1. Mandatory Display of Registration Details

• All SEBI-regulated entities and their agents (e.g., mutual fund distributors, PMS distributors) must prominently display:
  • Registered name
  • SEBI registration number
• Display must be on:
  • The home page of their social media platforms
  • Alongside each video or content posted

2. Content Standards and Restrictions

• Social media posts must not contain:
  • Promises of guaranteed returns
  • Statements prohibited under law
  • False, misleading, biased, or investor-misguiding content

3. Purpose of the Guidelines

• Differentiate content posted by registered SEBI entities from unregistered individuals.
• Prevent investors from being misled by unverified or illegal financial content.
• Ensure accountability and transparency of content shared on social media.

9. Accredited Investors in India

Context:

The Securities and Exchange Board of India (Sebi) recently amended rules to allow Alternative Investment Funds (AIFs) to launch accredited investor-only schemes. Accredited investors (AIs) are sophisticated investors with high financial capacity and understanding, eligible for high-risk, high-return instruments.

Despite regulatory support, the accredited investor base in India remains small, raising questions about the impact of these reforms.

What Are Accredited Investors?

Accredited Investors (AIs) are financially sophisticated individuals or entities recognized by SEBI as having high financial capacity and risk-taking ability. They are allowed to invest in complex, high-risk, or customized investment products not typically available to retail investors.

The AI framework was introduced by SEBI in 2021 to deepen India’s capital markets and give flexibility to wealthy investors.

Sebi’s Definition of Accredited Investors (2021)

• Individuals, family trusts, sole proprietorships, partnerships with:
  • Annual income ≥ ₹2 crore, or
  • Net worth ≥ ₹7.5 crore with financial assets ≥ ₹3.75 crore
• Corporate bodies & non-family trusts: Net worth ≥ ₹50 crore

Recent Sebi Amendments (Nov 19, 2025)

• AIFs can now:
  • Launch AI-only funds/schemes
  • Convert existing AIFs into AI-only schemes
  • Shift trustee responsibilities to fund managers
• 1,000-investor cap: No longer applies to AI-only funds
• Investment threshold: Removed for AIs, allowing smaller, diversified investments

Agriculture

1. India Pushes for Mutual Recognition of Agri Goods Testing

Source: Mint

Context:

India is seeking to align its inspection, testing, and certification systems for agricultural exports with major trading partners including the US, EU, UK, Singapore, Switzerland, ASEAN countries, and Australia.
Objective: Reduce non-tariff barriers such as rejections and delays caused by sanitary and phytosanitary (SPS) inspections, and facilitate low-friction trade for farm produce.

Mutual Recognition Agreements (MRAs)

• MRAs allow trading partners to mutually accept each other’s testing and certification systems.
• Example: India-Australia MRA (Sept 2025) on organic products enables cross-recognition of certification for a range of organic goods.
• Expected benefits:
  • Faster market access for Indian agricultural exports.
  • Reduced rejection rates due to SPS compliance issues.
  • Lower compliance costs, making products more price-competitive internationally.

Targeted Agricultural Exports

MRAs aim to boost trade in key sectors:

• Staple crops: Basmati rice, spices
• Beverages: Tea, coffee
• Marine products
• Fruits and vegetables

Approximately 45–50% of India’s agricultural export basket could be covered under these MRAs.

2. Indian Seed Sector

Source: BS

Context:

India’s seed sector, valued at over ₹35,000 crore, is at the cusp of significant regulatory and policy changes through:

1. A draft Seeds Bill (2025)
2. Proposed amendments to PPVFRA (Protection of Plant Varieties and Farmers Rights Authority)
3. Global negotiations under the International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA / Plant Treaty)

These reforms aim to enhance quality, investment, and innovation in the sector while balancing farmer rights and food security.

1. Draft Seeds Bill, 2025

• Purpose: Replace the Seeds Act, 1966 and Seeds (Control) Order, 1983 to regulate seed quality, facilitate production and supply of high-quality seeds, and improve traceability.
• Key Features:
  • Centralised accreditation system, replacing state-level seed licences.
  • Focus on traceability and quality inspection.
  • Permits foreign organisations to conduct Value of Cultivation and Use (VCU) trials and certify seeds, though final certification remains with ICAR.
• Criticism:
  • Farmer rights, compensation, and price regulation are minimally addressed.
  • Penal provisions are emphasized, but compensation for substandard seeds is missing.
  • States’ powers are curtailed, raising concerns about federal balance in seed governance.
• Positive aspects:
  • Penal provisions and inspection powers are expected to improve compliance.

2. Proposed Amendments to PPVFRA

• Purpose: Protect Intellectual Property Rights (IPR) of plant varieties and safeguard farmers’ rights.
• Key Features / Changes:
  • Provisional registration of plant varieties allowed while final certification is pending, reducing risk for breeders.
  • “Innocent infringement” clause preserved to protect farmers using registered varieties unknowingly.
• Industry feedback:
  • Cosmetic and definitional changes only; core structure remains unchanged.
  • Demand to include genetic modification/gene editing under PPVFRA not accepted, remains under environment ministry regulation.
• Concerns:
  • Transparency of committee composition and process questioned by civil society groups.

3. Plant Treaty (ITPGRFA) Negotiations

• Overview:
  • Multilateral treaty for conservation, sustainable use, and equitable sharing of plant genetic resources for food and agriculture.
  • India is a signatory since 2004; currently, only 9 crops (26,563 accessions) notified under the Multilateral System (MLS).
• Key Issues:
  • Civil society claims India has shared over 400,000 samples, contradicting government statements.
  • Expansion of MLS could provide Indian farmers access to developed varieties, e.g., South American corn.
  • Data on utilization of MLS accessions for breeding in India remains unclear.
• Potential Impact:
  • Improved access to high-quality foreign genetic material for breeding and hybrids.
  • Could enhance farmer productivity and incomes, contributing to food security.

3. 37,000-Year-Old Thorny Bamboo Fossil – Manipur

Source: TOI

Context:

A team of scientists from the Birbal Sahni Institute of Palaeosciences (BSIP) has discovered a 37,000-year-old fossilized bamboo stem in the Imphal Valley of Manipur. This rare fossil provides the earliest evidence of thorny bamboo in Asia and offers important insights into Ice Age climate conditions and plant evolution.

Discovery:

• Found in silt-rich deposits of the Chirang River, Manipur.
• Conducted by Botanical Survey of India – BSIP (under DST).
• Species Identified: Chimonobambusa manipurensis
• Fossil retains thorn scars, nodes, and buds, features rarely preserved due to bamboo’s hollow, fragile structure.

Significance of the Discovery

• Earliest Evidence of Thorniness in Asian Bamboo:
  • Shows that herbivore-defense traits in bamboo evolved before or during the Ice Age.
• Palaeobotanical Milestone:
  • Exceptional preservation of delicate structures aids reconstruction of ancient ecosystems.
• Palaeoclimate Insights:
  • Confirms Northeast India as a climatic refugium, while harsh Ice Age conditions wiped bamboo out in regions like Europe.
• Evolutionary and Biodiversity Implications:
  • Provides rare insights into plant evolution, resilience, and biodiversity in the Indo-Burma biodiversity hotspot.
• Modern Linkage:
  • Fossil traits are similar to modern thorny bamboos like Bambusa bambos.

Facts To Remember

1. Kerala’s Population to Grow Till 2041, Then Decline: New IIMAD–PFI Demographic Report

A new national-level report by the International Institute of Migration and Development (IIMAD) and the Population Foundation of India (PFI) projects Kerala’s demographic trajectory up to 2051. The State will continue ageing rapidly, eventually becoming India’s oldest State, with population growth peaking around 2041 before entering a slow decline.

2. India launches ‘Operation Sagar Bandhu’ to provide relief supplies to Sri Lanka

India on Friday delivered essential relief supplies to cyclone-battered Sri Lanka with Prime Minister Narendra Modi conveying to the island nation that New Delhi stands ready provide more aid to it to deal with the situation.

3. Portugal wins its maiden FIFA u-17 World Cup title

Portugal won the FIFA u-17 World Cup title on Thursday, beating Austria 1-0 in the final. Anisio Cabral scored into an empty net in the 32nd minute. It was Portugal’s first u-17 title.

4. PM Modi’s Visit to Goa and Udupi – Highlights

Unveiled a 77-feet bronze statue of Lord Rama at Shree Samsthan Gokarn Partagali Jeevottam Math.

Udupi:

• Paid homage to Jagadguru Madhvacharya, highlighting Udupi’s spiritual and cultural heritage.
• Emphasized Madhvacharya’s contribution to India’s cultural unity.

Madhvacharya:

• Era: 13th century CE
• Philosophy: Founder of Dvaita (dualism) Vedanta
• Significance: Major Vaishnava acharya; traditionally considered an incarnation of Vayu, the Wind God

5. Blind Women’s T20 World Cup 2025

Indian Women’s Blind Cricket Team won the first-ever Blind Women’s T20 World Cup, defeating Nepal by 7 wickets in the final.

• Hosts & Venues: Co-hosted by India and Sri Lanka
  • India: Delhi, Bengaluru
  • Sri Lanka: Colombo (Final at P. Sara Oval Stadium)
• Champion: India (Unbeaten campaign)
• Final Match Player of the Final: Phula Saren
• Captain of India: Deepika TC (Deepika Gaonkar)

6. Operation Sagar Bandhu

Rapid Humanitarian Assistance and Disaster Relief (HADR) mission by India to support Sri Lanka after Cyclone Ditwah, which caused severe floods and over 80 deaths. Reflects India’s Neighbourhood First and Vision MAHASAGAR maritime cooperation frameworks.

7. India Records 8.2% Q2 GDP Growth

India’s GDP grew 8.2% in Q2 (July–September) of FY26, marking the highest growth in six quarters, driven by strong manufacturing and services sector performance.

8. India’s First Private Orbital Rocket Vikram-1 Unveiled by Skyroot Aerospace

Hyderabad-based space startup Skyroot Aerospace unveiled Vikram-1, India’s first private commercial orbital rocket, capable of launching satellites into Low Earth Orbit (LEO). The Infinity campus, Skyroot’s new 2 lakh sq ft facility, was virtually inaugurated by PM Narendra Modi.

9. India secures third rank in Asia Power Index 2025

India has secured third ranking in the Asia Power Index 2025, while the U.S. and China occupy the first and second spots.

10. Minister Dr. Jitendra Singh Unveils Hansa-3 (NG) Trainer Aircraft in Bengaluru

Union Minister for Science and Technology Dr. Jitendra Singh inagurated SARAS MK II  Iron Bird Test facility, HAP Airframe Fabrication facility, NaviMet and unveiled Hansa-3 (NG) production standard aircraft at CSIR-NAL campus in Bengaluru.

11. India Re-Elected to UNESCO Executive Board for 2025–29 Term

India has been re-elected to the UNESCO Executive Board for the 2025-29 term. 

12. India Crushes Canada 14-3 in Dominant Hockey Show at Sultan Azlan Shah Cup

India put on an absolute masterclass, storming to a 14-3 victory over Canada in a relentless display of attacking hockey at Sultan Azlan Shah Stadium in Ipoh, Malaysia. 

13. India Ranks 2nd in Global Tea Exports; Govt Rolls Out ₹1,000 Crore Support for Tea Workers: Goyal

Union Commerce and Industry Minister Piyush Goyal said, India is the second largest exporter of tea in the world, with production of approximately 255 million tonnes of tea annually. 

14. Cyclone Ditwah moves toward Tamil Nadu Coast at 7–10 kmph

Cyclonic Storm Ditwah has moved towards the Tamil Coast with a speed ranging from 7 to 10 kmph. 

15. International Conference on Preserving Rural Buddhist Heritage inaugurated in New Delhi

The Academy for Preservation of Rural Buddhist Heritage today inaugurated an International Conference in New Delhi focused on the preservation of rural Buddhist heritage.