Daily Current Affairs Quiz2 & 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 Achievements of BBBP 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 Key Features 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 Macro Outlook Rationale Key Regulatory & Structural Announcements Implications For Economy For Banks & Financial Institutions For Borrowers & Investors 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: 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 Macro Outlook GDP Growth (FY26) CPI Inflation (FY26) External Sector Key Regulatory & Structural Announcements Implications For the Economy: For Banks & Financial Institutions: For Borrowers & Investors: Key Terms for RBI Grade B / Exams 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: Market and Banking Impact 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. Key Highlights Scope of Proposal Expected Impact Risks & Cautions 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 What are UCBs? 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 Lending to Large Companies Individual Investor Lending Risk Management and Prudential Measures External Commercial Borrowing (ECB) and Export Credit 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? SEBI’s Concerns SEBI’s Crackdown & Regulations Key Terms Agriculture 1. National Pulses Mission (2025–31) Source:
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:
National Pulses Mission (2025–31)
Source: PIB Introduction Key Objectives Major Features
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? SEBI’s Concerns SEBI’s Crackdown & Regulations Key Terms
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.
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 Lending to Large Companies Individual Investor Lending Risk Management and Prudential Measures External Commercial Borrowing (ECB) and Export Credit
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 What are UCBs? 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.
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. Key Highlights Scope of Proposal Expected Impact Risks & Cautions
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: Market and Banking Impact
RBI MPC October 2025 – Key Takeaways
Context: 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 Macro Outlook GDP Growth (FY26) CPI Inflation (FY26) External Sector Key Regulatory & Structural Announcements Implications For the Economy: For Banks & Financial Institutions: For Borrowers & Investors: Key Terms for RBI Grade B / Exams
