Source: TOI Context: The Securities and Exchange Board of India (SEBI) has clarified that listed companies must disclose information about the relatives of promoters, including: What is the New Proposal? Why is SEBI Doing This? Related-Party Transactions (RPTs)
RBI Launches Scheme to Activate Inoperative Accounts and Settle Unclaimed Deposits
Source: News on Air Context: The Reserve Bank of India (RBI) has launched a one-year incentive scheme (October 2025 – September 2026) to encourage banks to reactivate inoperative accounts and repay unclaimed deposits to rightful claimants. What is an Inoperative Account? Key Highlights:
India’s Fiscal Deficit
Context: The Centre’s fiscal deficit for April–August 2025 stood at 38.1% of the full-year Budget Estimate (BE), as per data released by the Controller General of Accounts (CGA). What is Fiscal Deficit? What to Do When Fiscal Deficit Occurs? Governments adopt a mix of short-term financing measures and long-term structural reforms: Short-term Financing (Bridging the Gap) Long-term Structural Measures Last Resort Types of Deficit Type of Deficit Formula Meaning Implication Fiscal Deficit Total Expenditure – (Revenue Receipts + Non-debt Capital Receipts) Borrowing requirement of govt. Indicates debt burden. Revenue Deficit Revenue Expenditure – Revenue Receipts Govt borrowing to meet daily expenses. Fiscal imprudence. Primary Deficit Fiscal Deficit – Interest Payments Borrowings excluding past debt interest. Shows fresh burden of current policies. Effective Revenue Deficit Revenue Deficit – Grants for capital creation Refines revenue deficit by excluding productive transfers. Used in Budget targets. Monetised Deficit Part of Fiscal Deficit financed by RBI printing new money Direct monetisation of deficit. Highly inflationary, rarely used now.
ADB Downgrades India’s Growth Outlook for FY26
Source: TH Context: The Asian Development Bank (ADB) has lowered India’s economic growth forecast for the current financial year (2025-26) to 6.5% from the earlier 6.7%, mainly due to the impact of 50% U.S. tariffs on imports from India. The growth outlook for 2026-27 has also been revised downward to 6.5% from 6.8%. Key Highlights: Dimension Key Highlights Growth Forecast • Developing Asia’s growth for 2025 revised: 4.9% → 4.8%.• 2026 forecast cut: 4.7% → 4.5%.• Downgrades due to global uncertainty, especially in India & Southeast Asia. Impact of U.S. Tariffs • Elevated tariffs cover ~60% of exports to the U.S.• Key affected sectors: textiles, garments, jewellery, shrimp, chemicals.• Likely to weigh on growth in H2 2025-26 and 2026-27.• Merchandise export growth modest, but services exports remain strong.• Investment growth subdued amid trade uncertainty. Domestic Demand & Consumption • Consumption demand expected to grow faster, aided by lower food prices and tax cuts.• Public investment continues to support growth momentum. Inflation Outlook • FY26 inflation revised down to 3.1% due to low oil & falling food prices.• FY27 inflation projected at 4.2% as food prices normalize.
FPI Outflows from Indian Equities
Context: Foreign Portfolio Investors (FPIs) withdrew â‚ą23,885 crore from Indian stocks in September 2025, marking the third consecutive month of net outflows, according to NSDL data. What are Foreign Portfolio Investors (FPIs)? Characteristics Impact of FPI Flows on Indian Market FPI vs FDI Feature Foreign Portfolio Investment (FPI) Foreign Direct Investment (FDI) Nature Investment in financial assets (stocks, bonds, etc.) Investment in physical assets/companies (factories, infrastructure, JV) Duration Short-term, liquid Long-term, stable Control No control over management Provides management control/ownership Volatility Highly volatile (quick entry & exit) Stable and less volatile Regulation SEBI (Securities market regulator) DPIIT + RBI (FEMA guidelines)
Female Labour Force Participation in India
Context: The Female Labour Force Participation Rate (FLFPR) measures the share of women who are employed or actively seeking work. While India’s FLFPR fell from 31.2% in 2011-12 to 23.3% in 2017-18, it rose sharply to 41.7% in 2023-24, driven mainly by rural women. Female Labour Force Participation Rate (FLFPR) Key Highlights: Dimension Key Findings (2017-18 / 2018-19 vs 2023-24) Earnings vs Participation • Female Labour Force Participation Rate (FLFPR) rose, but real earnings declined for most women (except casual workers).• Increased participation ≠better-paid or secure jobs. Sectoral Composition • Share of rural women in agriculture increased: 71.1% (2018-19) → 76.9% (2023-24).• Decline in women’s employment in secondary (industry) and tertiary (services) sectors. Shift from Domestic Duties • Women reporting domestic duties fell: 57.8% (2017-18) → 35.7% (2023-24).• Helpers in household enterprises: 9.1% → 19.6%.• Own account workers/employers: 4.5% → 14.6%.• Indicates shift mainly to self-employment, not wage employment. Vulnerabilities • Helpers in household enterprises often unpaid/low-paid, blurring line between employment & domestic labour.• Even among self-employed women, real earnings declined, showing persistent income insecurity.
Dugong Conservation in India
Source: IE Context: The International Union for Conservation of Nature (IUCN) has recognised Tamil Nadu’s Dugong Conservation Reserve in Palk Bay as a global model for marine biodiversity conservation during the IUCN World Conservation Congress 2025. Key Highlights:
India–EFTA Trade and Economic Partnership Agreement (TEPA)
Source: News on Air Context: The India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) came into effect on 1st October 2025. It is India’s first FTA with four developed European countries, promising $100 billion investments and 1 million jobs in the next 15 years. About TEPA Key Features Key Area Provisions / Highlights 1. Investment & Employment • $100 billion FDI commitment over 15 years• 1 million direct jobs in manufacturing & services 2. Market Access for Goods • EFTA offers zero-duty access on 92.2% tariff lines• Covers 99.6% of India’s exports 3. Services & Mobility • Commitments in 100+ sub-sectors (IT, education, audiovisual, business services)• Mutual Recognition Agreements (MRAs) in nursing, architecture, chartered accountancy• Facilitates: Mode 1 (Digital delivery), Mode 3 (Commercial presence), Mode 4 (Personnel mobility) 4. Intellectual Property Rights (IPR) • TRIPS+ standard with safeguards for generic medicines• Prevents patent evergreening while protecting innovation 5. Sustainable Development • Focus on green growth, social inclusion, and environmental protection• Encourages technology collaboration in renewable energy, precision engineering, and health sciences
Daily Current Affairs (DCA) 30 September, 2025
Daily Current Affairs Quiz30 September, 2025 National Affairs 1. India’s Industrial Growth Slows to 4% in August 2025 Source: Mint Context: India’s industrial output, measured by the Index of Industrial Production (IIP), grew 4% in August 2025, easing slightly from July’s upwardly revised 4.3% growth. The slowdown was led by weaker manufacturing activity, despite a recovery in mining and electricity. Key Highlights: Category July 2025 August 2025 Remarks Overall IIP Growth 4.3% (revised from 3.5%) 4% Slight slowdown, but rebound from Jan–Jun weakness Manufacturing 5.38% 3.8% Slowed due to postponed purchases before Sept GST cuts Mining Contracted (monsoon impact) 6% Strong recovery Electricity Negative (May–June contraction) 4.15% Continued recovery Capital Goods 6.8% 4.4% Moderation in investment activity Infrastructure/Construction Goods 13.7% 10.6% Still robust despite slowdown Consumer Durables 7.2% 3.5% GST wait-and-watch sentiment hit demand Consumer Non-durables Negative trend -6.3% Continued contraction since start of FY25 Policy & Market Factors: 2. India Adds Two New Ramsar Sites in Bihar Source: PIB Context: India has designated two new wetlands in Bihar Gokul Jalashay (Buxar) and Udaipur Jheel (West Champaran) as Ramsar sites, raising the national tally to 93 wetlands of international importance. With this, India retains its top position in Asia for the number of Ramsar sites. Key Highlights: Gokul Jalashay (Buxar, 448 ha): Udaipur Jheel (West Champaran, 319 ha): About Ramsar Sites India’s Ramsar Sites – Current Status (Sept 2025) 3. Sahyog Portal Context: The Karnataka High Court upheld the validity of the Union government’s Sahyog portal, which enables police and authorised agencies to send content takedown requests directly to social media platforms. X (formerly Twitter) had challenged this mechanism, arguing it amounted to censorship without judicial oversight. What is the Sahyog Portal? How Sahyog Portal Works 4. NCRB Crime in India Report 2023 Source: IE Context: The National Crime Records Bureau (NCRB) released its annual Crime in India 2023 report, revealing a significant rise in overall crime, a shift in crime patterns, and growing concerns over cybercrime and crimes against vulnerable sections. Key Findings (Compared to 2022) About NCRB Banking/Finance 1. RBI Revised Liquidity Management Framework Source: BS Context: The Reserve Bank of India (RBI) has retained the overnight weighted average call rate (WACR) as the operating target of monetary policy, under a revised liquidity management framework, ahead of its upcoming monetary policy decision. Key Announcements: Changes in Operational Tools Policy Corridor Liquidity Alignment & Transparency Cash Reserve Ratio (CRR) Key Definitions Term Definition Significance WACR Weighted Average Call Rate — average overnight interbank lending rate Operating target of RBI’s monetary policy Policy Repo Rate Rate at which RBI lends to banks for short term against government securities Benchmark for market rates; controls inflation & growth SDF Standing Deposit Facility — banks can park excess funds without collateral Floor of policy corridor; absorbs liquidity MSF Marginal Standing Facility — banks borrow overnight from RBI against securities Ceiling of policy corridor; lender of last resort VRR / VRRR Variable Rate Repo / Reverse Repo — liquidity operations with variable interest rate Discontinued as main tools 7-day Liquidity Operations RBI injects or absorbs liquidity for 7 days New primary tool for short-term liquidity management OMOs Open Market Operations — buying/selling government securities Manages durable liquidity Forex Swap Auctions RBI swaps rupees for foreign currency with banks Manages forex liquidity & market stability CRR Cash Reserve Ratio — % of NDTL banks must maintain with RBI Ensures liquidity & financial stability 2. RBI Revises Guidelines for Small Business Loans Source: BS Context: The Reserve Bank of India (RBI) has announced new guidelines for small business loans, giving banks greater flexibility in adjusting the additional interest or spread charged over the loan term. Previously, banks could revise the spread linked to a borrower’s credit risk only once every three years. Key Highlights: Greater Flexibility in Loan Spreads Expanded Lending Using Gold Other Directions for Strengthening Lending Key Definitions Term Definition Significance Spread Additional interest rate charged over the base/reference rate based on borrower credit risk Determines cost of borrowing; now adjustable before 3-year period Fixed-rate loan Loan with interest rate fixed for the tenure Provides interest stability to borrowers Working Capital Loan Short-term loan to meet daily operational expenses Supports liquidity needs of businesses Additional Tier 1 (AT1) Capital Capital instruments that absorb losses while the bank remains a going concern Helps banks meet regulatory capital requirements; can be raised via foreign/overseas-rupee bonds CKYC (Central Know Your Customer) Centralized database of customer identity information Ensures accurate borrower data and faster reporting Urban Co-operative Banks Local banks serving urban areas, often MSMEs Expanded role increases credit access for small businesses 3. Moody’s Affirms India’s Sovereign Rating Source: FE Context: Moody’s Ratings affirmed Government of India’s long-term local and foreign-currency issuer ratings at Baa3 (lowest investment grade). The outlook remains stable. Key Rating Decisions: Rationale Behind Rating: Aspect Details Strengths – Large, fast-growing economy– Sound external position (adequate forex reserves, manageable external debt)– Stable domestic financing base for fiscal deficits– Resilience against external shocks (e.g., high U.S. tariffs, global trade headwinds) Weaknesses – High government debt burden– Weak debt affordability– Slow fiscal consolidation; revenue base eroded by measures to boost private consumption– Long-standing structural fiscal weaknesses Exam-Oriented Points: 4. Sebi Bars Man Industries & Top Executives Over Fund Diversion Source: BS Context: India’s market regulator barred Man Industries and three of its top executives, including the chairman, from accessing the securities markets for two years over alleged fund diversion, according to an order issued. Reason for Action: SEBI Guidelines on Misuse of Funds Aspect Key Points Prohibition on Misuse Funds raised via IPO, preferential allotment, or debt must be used as disclosed; diverting to promoters/directors without approval is banned. Disclosure Requirements All material transactions and related-party dealings must be reported to stock exchanges and in annual financial statements; deviations in fund usage must be disclosed promptly. Corporate Governance Independent directors oversee fund use and approve related-party transactions; audit committees review fund allocation and financial statements. SEBI Investigation & Enforcement SEBI can inspect, audit, and requisition data;
Arya.ag Wins SmartAG Award 2025
Source: BL Context: Arya.ag, an integrated grain commerce platform, has been recognized with the SmartAG Award 2025 for its solutions promoting climate resilience and sustainable agriculture for smallholder farmers. About SmartAG Award: Arya.ag’s Winning Initiative Smart Farm Centre Model: Key Features:
