Daily Current Affairs Quiz23 October, 2025 National Affairs 1. Global Forest Resources Assessment (GFRA) 2025 Source: PIB Context: India has made remarkable strides in forest conservation. According to the Global Forest Resources Assessment (GFRA) 2025 by the FAO, India now ranks 9th in total forest area globally and 3rd in annual forest gain. This reflects decades of policy-driven efforts to restore and expand forests across the country. What is GFRA 2025? Global Forest Trends Global Challenges: land conversion, forest degradation, biodiversity loss, and uneven funding. India’s Forest Achievements Challenges for India Way Forward 2. India’s Critical Mineral Recycling Scheme Source: ET Context: The Union Ministry of Mines has stated that feedstock availability for the ₹1,500 crore Critical Mineral Recycling Incentive Scheme will be ensured through the formalisation of collection under the Extended Producer Responsibility (EPR) framework. This step aims to strengthen India’s domestic recycling ecosystem and support local critical mineral recyclers. Key Highlights: 3. Water ATM Initiative Context: Innovative projects in Jharkhand and Maharashtra are turning coal mine discharge from a waste concern into a resource for clean drinking water and sustainable livelihoods. Initiatives such as Water ATMs by ACIC IIT-ISM Dhanbad and mine-water fisheries are leading the way. Water ATM Initiative Automated water-vending machines that purify and dispense treated mine water to communities at nominal costs, ensuring affordable access to clean drinking water. Launch & Collaboration: Developed under the Atal Community Innovation Centre (ACIC) at IIT-ISM Dhanbad in partnership with the Dhanbad Municipal Corporation (DMC). Purpose: Key Features: 4. Draft Labour Policy ‘Shram Shakti Niti’ Source: TH Context: The Ministry of Labour and Employment has released a draft national labour policy, titled Shram Shakti Niti, which seeks to modernize India’s labour framework by building a fair, inclusive, and future-ready employment ecosystem. Key Objectives and Vision The draft policy envisions a system where every worker—formal, informal, or gig-based—has access to dignity, protection, and opportunity. It aims to transform the Ministry’s role from a regulator to a facilitator of employment, using digital tools and artificial intelligence (AI) to seamlessly connect workers, employers, and skill-training institutions. Digital and Data-Driven Employment Ecosystem A central feature of the draft is the expansion of the National Career Service (NCS) into a Digital Public Infrastructure for Employment.This initiative represents a shift towards a data-driven and worker-centric approach, aimed at reducing information asymmetry in the labour market and improving matching efficiency between job seekers and employers. AI and Labour Market Transformations According to the World Bank’s South Asia Development Update (October 2025): The Shram Shakti Niti aims to bridge these gaps through targeted skilling and reskilling programmes, especially in semi-urban and rural areas, aligning skills with industry needs. Skill Development and Education Initiatives The draft encourages: Social Security and MSME Support The draft proposes: Banking/Finance 1. WACR Now Better Aligned with Repo Rate: RBI Report Source: BS Context: The Reserve Bank of India (RBI) has noted that the Weighted Average Call Rate (WACR) showed improved alignment with the policy repo rate during the period September 16–October 16, according to its State of the Economy report released on Monday. Weighted Average Call Rate (WACR) Secured Overnight Rupee Rate (SORR) Money Market Yield Developments Difference Between WACR and SORR Feature WACR SORR Type of Market Uncollateralised (Call Money Market) Collateralised (Repo Market) Security No collateral Backed by government securities Administered by RBI FBIL Use Operating target of monetary policy Benchmark reference rate Risk Level Higher (credit risk involved) Lower (secured by collateral) 2. Mutual Funds Seek Wider Operational Flexibility from SEBI Source: BS Context: India’s mutual fund (MF) industry has urged the Securities and Exchange Board of India (SEBI) to relax restrictive clauses in its regulations governing asset management companies (AMCs). The move comes amid a broader review of Regulation 24(b) of the SEBI (Mutual Fund) Regulations, which limits AMCs’ participation in non-core businesses. Regulation 24(b) of SEBI (Mutual Fund) Regulations, 1996 Regulation 24 of the SEBI (Mutual Fund) Regulations, 1996 governs the general responsibilities and obligations of Asset Management Companies (AMCs) — the entities responsible for managing mutual fund schemes in India.Sub-clause (b) specifically outlines restrictions on business activities of AMCs to ensure investor protection and prevent conflicts of interest. Industry’s Key Demands Top mutual fund houses have made submissions to SEBI as part of its ongoing consultation, seeking greater operational and strategic freedom to expand both domestically and globally. Key relaxations sought include: Background: SEBI’s July 2025 Consultation In July 2025, SEBI released a consultation paper proposing limited relaxations under Regulation 24(b). The proposals included: However, the industry’s latest representations go beyond these proposals, urging a comprehensive overhaul of the Mutual Fund Regulations to reflect the evolution of asset management. Industry’s Broader Rationale AMCs in India have evolved from managing traditional mutual fund schemes to also handling: 3. RBI Allows Banks to Cut Home Loan Spreads for Existing Borrowers Source: BS Context: The Reserve Bank of India (RBI) has introduced a major relief for existing home loan borrowers, allowing banks to reassess and reduce the spread component of floating-rate home loans when a borrower’s credit profile improves. The move aims to bring parity between new and existing borrowers, ensuring fairer pricing of home loans. What Has Changed Earlier Regime: New RBI Rule (Effective October 1, 2025): Why This Matters to Borrowers 4. Banking Laws (Amendment) Act, 2025 Source: News on Air Context: The Finance Ministry has announced that key provisions related to nomination under the Banking Laws (Amendment) Act, 2025 will come into effect from November 1, 2025. These measures are designed to enhance flexibility, transparency, and efficiency in claim settlements for depositors. Key Highlights: 5. RBI Proposes to Mandate Unique Transaction Identifier (UTI) for All OTC Derivative Transactions Source: The Economic Times Context: The RBI has released a draft circular proposing that all over-the-counter (OTC) derivative transactions in India—specifically those related to rupee interest rate derivatives, foreign currency derivatives, forward contracts in government securities, foreign currency interest rate derivatives, and credit derivatives—should carry a Unique Transaction Identifier (UTI) from the next financial year (beginning 1
RBI Launches Offline Digital Rupee (e₹) at Global Fintech Fest 2025
Context: The Reserve Bank of India (RBI) launched the offline digital rupee (e₹) at the Global Fintech Fest 2025, marking a significant step in the digital finance ecosystem of India. The e₹ is a form of Central Bank Digital Currency (CBDC), combining the convenience of digital payments with the characteristics of physical cash. Key Highlights: Significance for India:
PFRDA Proposes Dual Valuation Framework for NPS and APY Portfolios
Source: ET Context: The Pension Fund Regulatory and Development Authority (PFRDA) has issued a discussion paper proposing a dual valuation approach for securities held in the portfolios of the National Pension System (NPS) and the Atal Pension Yojana (APY). The move aims to make pension wealth accumulation more transparent and stable while strengthening the long-term investment character of pension funds. Key Highlights:
SEBI Tightens Insider Trading Oversight as Unlawful Gains Surge
Source: Mint Context: The Securities and Exchange Board of India (SEBI) has intensified its crackdown on insider trading after detecting a surge in illicit stock market gains. The move follows a major case involving a Central Electricity Regulatory Commission (CERC) official and trades in Indian Energy Exchange Ltd (IEX) shares, where SEBI ordered the impounding of over ₹173 crore in unlawful gains — one of the largest such actions in recent years. Key Highlights: About Insider Trading Insider trading refers to buying or selling securities of a listed company by individuals who have access to unpublished price-sensitive information (UPSI). Legal Framework:
Indian Banks’ Profitability and NIM Improvement Amid RBI Rate-Cut Cycle
Source: ET Context: Indian banks are showing stronger profitability and expanding Net Interest Margins (NIMs) as the Reserve Bank of India (RBI) begins its rate-cut cycle, signaling a shift in the monetary policy stance to support growth. Key Highlights: What is NIM (Net Interest Margin)? Net Interest Margin (NIM) measures a bank’s profitability from lending operations.It is the difference between the interest earned on loans and investments and the interest paid on deposits and borrowings, expressed as a percentage of earning assets. Formula: Higher NIM = More efficient and profitable bank.
RBI Study Flags Overvaluation Risks in SME IPO Segment
Source: BS Context: A recent RBI Bulletin study authored by Bhagyashree Chattopadhyay and Shromona Ganguly has highlighted significant volatility in India’s Small and Medium Enterprises (SME) IPO market, marked by sharp listing gains followed by swift price reversals. The findings point to signs of overvaluation in several SME stocks listed during FY24 and FY25, raising regulatory concerns for the segment. Key Findings of the RBI Study Background: SME IPO Boom in India About SME IPOs
PFRDA Releases Draft Framework on Pension Wealth Accumulations
Source: PIB Context: The Pension Fund Regulatory and Development Authority (PFRDA) has issued a consultation paper proposing a revised framework for valuation and disclosure of pension wealth accumulations. The move aims to enhance transparency for subscribers and ensure the long-term financial stability of India’s pension ecosystem. Objective of the Consultation Paper The initiative aims to: Key Proposal: Dual Valuation Framework The paper proposes a dual valuation approach — combining accrual-based and fair market-based valuation for long-term Government Securities held by pension funds. Purpose of Dual Valuation Framework About PFRDA
New Tax Rules on Share Buybacks
Source: Mint Context: From 1 October 2024, India’s share buyback tax regime underwent a major transformation as per amendments in the Finance Act, 2024. The change aligns the tax treatment of buybacks with dividends, thereby impacting investor returns and corporate payout decisions. What is a Buyback of Shares? A buyback (or share repurchase) is a corporate action where a company buys back its own shares from existing shareholders, usually at a price higher than the market value. After the buyback, the number of outstanding shares decreases, which can increase the earnings per share (EPS) and ownership percentage of remaining shareholders. Legal Basis in India: Earlier Framework (Before 1 October 2024) New Regime (From 1 October 2024 Onwards) Implications
India Records Net FDI Outflow in August 2025
Source: TH Context: The Reserve Bank of India (RBI) reported a 159% decline in net Foreign Direct Investment (FDI) in August 2025, indicating that more money left India than entered it. This marks the second time in FY26 that outflows have exceeded inflows, signaling volatility in foreign investment trends. What is FDI? Foreign Direct Investment (FDI) refers to long-term capital investment by a foreign entity (company or individual) in another country’s business or assets, typically to gain a controlling interest.It is different from Foreign Portfolio Investment (FPI), which involves short-term financial assets like stocks or bonds. Types of FDI: FDI Components: Possible Causes of FDI Outflow: Consequences of FDI Outflow: Short-Term Impact: Long-Term Implications:
RBI’s Expected Credit Loss (ECL) Model
Context: The Reserve Bank of India (RBI) has proposed a shift from the current incurred loss model of provisioning to a forward-looking Expected Credit Loss (ECL) framework for scheduled commercial banks. This move aims to enhance the early recognition of credit stress and strengthen the resilience of the banking system. Current Model – Incurred Loss Proposed Model – Expected Credit Loss (ECL) Benefits of ECL Framework Implications for Banks
