Daily Current Affairs Quiz29 October, 2025 National Affairs 1. Cloud-Seeding Source: TOI Context: Amid rising pollution levels in the national capital, the Delhi Government, in collaboration with the Indian Institute of Technology (IIT) Kanpur, conducted cloud-seeding trials to induce artificial rain and reduce air pollution. Cloud Seeding in India Key Features: Key Terms 2. India and the ASEAN Summit Source: News on Air Context: The recent ASEAN and East Asia Summits provided key platforms for regional cooperation and dialogue. However, Prime Minister Narendra Modi’s absence from the ASEAN-India Summit — for the second consecutive year — was seen as a missed diplomatic opportunity for India to reinforce its strategic and economic engagement with Southeast Asia. Background Key Developments at the 2025 Summit ASEAN (Association of Southeast Asian Nations) Member Countries (10): 3. Climate Inequality Report 2025 Source: IE Context: Key Findings: Policy Recommendations: 4. 8th Central Pay Commission Context: The Union Cabinet has formally approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC), which will recommend revisions in salaries, allowances, and pension benefits for Central government employees. The announcement marks a crucial step in India’s periodic pay rationalisation framework, last implemented through the 7th CPC in 2016. 8th Central Pay Commission (CPC) Terms of Reference (ToR): The 8th CPC will make recommendations keeping in view: 5. UN Report Warns Global Emission Reductions are Insufficient for Paris Goals Context: Ahead of COP30 in Belem, Brazil, the United Nations released a synthesis report assessing countries’ updated nationally determined contributions (NDCs) for emission reductions. The report finds that current commitments are far below the levels needed to meet the Paris Agreement’s temperature targets. Key Highlights: Banking/Finance 1. Sebi Seeks Details After MCX Trading Disruption Source: BS Context: The Multi Commodity Exchange of India (MCX) faced a four-hour trading disruption on October 28, 2025, prompting the Securities and Exchange Board of India (SEBI) to seek details. This marks the second opening delay in four months at the largest commodities exchange in India. About Multi Commodity Exchange of India (MCX) 2. Small Finance Banks (SFBs) Context: Crisil Ratings projects that advances of Small Finance Banks (SFBs) will exceed ₹2 trillion in FY26, marking a 16–17% year-on-year growth, up from 13% in FY25. The growth is driven by non-microfinance segments and a gradual recovery in microfinance loans. Small Finance Banks (SFBs) Purpose Regulatory Framework Functions Key Features 3. SEBI Proposes Overhaul of Mutual Fund Regulations Context: The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing sweeping changes to mutual fund (MF) regulations. The reforms aim to revamp the Total Expense Ratio (TER) structure, enhance transparency in investor charges, and ease business restrictions on Asset Management Companies (AMCs). Key Highlights: TER Structure and Transparency Open-Ended Scheme Adjustments Relaxation of AMC Business Restrictions Differential Expense Ratio and Operational Reforms Review of Mutual Fund Structure Objective and Expected Impact Key Terms Explained Term One-Line Explanation TER (Total Expense Ratio) Annual percentage of fund assets charged to cover management and operational costs. AMC (Asset Management Company) Entity that manages mutual fund schemes and investor money. AUM (Assets Under Management) Total market value of assets a fund manages on behalf of investors. Basis Point (bps) One-hundredth of a percent (0.01%), used for precise fee or rate measurement. Chinese Wall Internal barrier preventing conflict of interest between two business units. Non-Pooled Fund Investment vehicle serving large, specific clients rather than public investors. NFO (New Fund Offer) Initial launch phase of a mutual fund scheme to raise capital from investors. 4. RBI Eases Rules for External Commercial Borrowings Source: Mint Context: The Reserve Bank of India (RBI) recently proposed sweeping relaxations in rules for Indian companies to borrow overseas through External Commercial Borrowings (ECBs). ECBs are foreign currency or rupee-denominated loans raised from non-resident lenders, used for capital expenditure, refinancing, and working capital. Key Relaxation Measures Explained 1. Increased Per-Tranche Borrowing Limits 2. Removal of Cost Caps on ECB Interest Rates 3. Flexibility in Currency Usage 4. Simplified Procedures for Accessing Overseas Funds Key Terms Term Explanation ECB (External Commercial Borrowing) Loans in foreign currency raised by Indian entities from non-resident lenders (like banks, institutions, or capital markets). Automatic Route Borrowing mechanism where no prior RBI approval is required if conditions are met. Tranche A portion or installment of a total borrowing amount raised at one time. SOFR (Secured Overnight Financing Rate) Benchmark interest rate replacing LIBOR for US dollar loans. Currency Conversion The process of switching loan denomination from one currency (e.g., USD) to another (e.g., INR). 5. Bank Merger Context: The Union Finance Ministry is preparing a new blueprint for consolidation of public sector banks (PSBs) as part of ongoing banking reforms. The aim is to increase scale, operational efficiency, and capital deployment, not merely size. The timeline is expected to follow FY27, with due diligence and cost-benefit analysis underway. Key Proposed Mergers: Banks Under Consideration Rationale / Notes Union Bank of India + Bank of India Would create the second-largest PSB with assets of ₹25.67 trillion, just behind SBI; focus on scale and efficiency. Indian Overseas Bank + Indian Bank Operational synergies, complementary geographies, similar customer base and product portfolio, rationalization of branches and back-end functions. What is a Bank Merger? A bank merger is the consolidation of two or more banks into a single entity to improve financial stability, efficiency, and competitiveness.In such cases, one bank (the acquiring bank) absorbs the other(s), and all assets, liabilities, and operations of the merged bank(s) are transferred to it. Purpose of Bank Mergers RBI’s Role and Norms in Bank Mergers The Reserve Bank of India (RBI) acts as the regulatory authority overseeing all bank mergers in India to ensure financial stability and depositor protection. 1. Legal Framework 2. RBI Approval Process RBI follows a multi-step approval process for bank mergers: Stage Process a. Proposal Stage The banks submit a merger proposal to RBI with details of valuation, capital structure, and synergy plan. b. Due Diligence RBI evaluates the financial health, governance standards,