Source: Mint Context: NaBFID (National Bank for Financing Infrastructure and Development) is collaborating with the World Bank and Asian Development Bank (ADB) to set up a $1 billion risk-sharing facility. Purpose of Facility: Regulatory Context: Strategic Importance:
BNPL (Buy-Now-Pay-Later) Platforms
Source: TOI Context: RBI has directed Bengaluru-based BNPL firm Simpl to shut its payments operations immediately. Reason: Operating a payment system without RBI authorisation, which violates the Payment and Settlement Systems Act, 2007. Background on BNPL Regulation BNPL (Buy-Now-Pay-Later) BNPL is a financial service that allows consumers to purchase goods or services immediately and pay for them in instalments over time, often without interest for a short period. How it works RBI Important Acts for BNPL Regulation / Act Applicability to BNPL Providers Reserve Bank of India Act, 1934 Grants RBI authority to regulate both banking and non-banking financial institutions. Banking Regulation Act, 1949 Applicable if the BNPL provider functions as a bank. NBFC Regulations Applicable if the BNPL provider operates as an NBFC: • RBI (NBFC) Directions • Digital Lending Guidelines, 2022 (under RBI supervisory powers over NBFCs and digital lenders). Payment and Settlement Systems Act, 2007 Applicable if the BNPL provider issues prepaid payment instruments (PPIs).
India’s Shift Towards a Diversified Credit Ecosystem
Context: India’s financial system is witnessing a gradual yet profound transformation. While banks remain central to credit delivery, non-bank financial channels — including NBFCs, corporate bonds, equity, and foreign capital — are playing an increasingly important role. Regulatory reforms, digital infrastructure, and evolving borrower preferences are accelerating this shift. The Role of NBFCs: Category Details / Examples Lending Growth – NBFC loans reached â‚ą6.1 lakh crore (20% YoY increase). – Crucial for MSMEs, semi-urban, and underserved segments. Key Advantages – Flexible product design and repayment terms. – Strong local presence and contextual understanding. – Use of alternative data and AI for thin-file customers. – Digital channels enable faster, tailored lending. Funding Diversification – Access to corporate bonds, securitisation, co-lending partnerships, and external borrowings. – Innovations include first-loss default guarantees, API-led digital co-lending, and retail participation in loan pools. Regulatory Support – Rollback of higher risk weights on bank lending to NBFCs lowered borrowing costs. – Enabled competitive expansion of lending portfolios. Forward-Looking Reforms and Embedded Finance: Implications for the Financial System:
Digital Competition Law
Source: Mint Context: India is exploring a standalone Digital Competition Act to regulate Big Tech with upfront rules of conduct, rather than relying solely on the Competition Act, 2002 which acts only after breaches occur. Key Highlights: Policy Approach:
AstroSat Completes 10 Years
Source: IE Date of Launch: September 28, 2015Operator: Indian Space Research Organisation (ISRO)Mission Type: Multi-wavelength space observatoryOrbit: Near-equatorial, low Earth orbitInstruments: UVIT (Ultraviolet Imaging Telescope), LAXPC (Large Area X-ray Proportional Counter), CZTI (Cadmium Zinc Telluride Imager), SXT (Soft X-ray Telescope)Mission Duration: Planned for 5 years; currently operational beyond 10 years Key Highlights Launch Details: AstroSat was launched aboard the PSLV-C30 rocket from the Satish Dhawan Space Centre on September 28, 2015. Scientific Contributions: Over the past decade, AstroSat has enabled significant discoveries in astrophysics, including observations of distant galaxies, black holes, and neutron stars across ultraviolet, visible, and X-ray wavelengths.
Ganga River Experiencing Worst Dry Spell in 1,300 Years
Source: Economic Times Context: The Ganga River supports over 600 million people and contributes around 40% of India’s GDP. Recent studies indicate an unprecedented decline in river flow since the 1990s. About Ganga River Key Findings: Category Details Methodology – Streamflow reconstruction using tree-ring data (Monsoon Asia Drought Atlas) and hydrological models. – Validated against historical droughts, famines, and modern observations. Key Findings – Post-1990s droughts are more frequent and severe than any in the past 1,300 years. – 2004–2010 drought ranks as the worst in over a millennium. – Post-1990s drying ~76% more intense than 16th-century drought. Causes – Weaker summer monsoons due to Indian Ocean warming and aerosol pollution. – Groundwater depletion, reducing baseflows. – Land-use changes and increased human water consumption. Implications – Water security threat for 600+ million people in India, Nepal, and Bangladesh. – Agriculture, irrigation, and livelihoods severely affected. – Reveals limitations of current global climate models in predicting regional drying. Recommendations – Adopt adaptive water management policies considering natural and anthropogenic factors. – Strengthen river basin management and sustainable water-use practices. – Enhance climate and hydrological models for accurate forecasting.
Ethambutol Hydrochloride
Source: TH Context: India has initiated an anti-dumping investigation into imports of Ethambutol Hydrochloride, a drug used in the treatment of tuberculosis. What is Ethambutol Hydrochloride? Why India Initiated the Anti-Dumping Investigation?
Cold Desert Biosphere Reserve (CDBR) Gains UNESCO Recognition
Source: IE Context: India’s Cold Desert Biosphere Reserve (CDBR) in Himachal Pradesh has been included in UNESCO’s World Network of Biosphere Reserves (WNBR). Key Highlights: Location & Area UNESCO’s World Network of Biosphere Reserves (WNBR)
RBI Issues Revised Directions for Settlement of Deceased Customers’ Accounts and Lockers
Source: BL Context: The Reserve Bank of India (RBI) has issued the “Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025”, aiming to streamline and standardise procedures for settling claims on deceased customers’ bank accounts and safe deposit lockers. Key Highlights: Settlement Timeline: Simplified Procedure for Small Deposits: Standardised Documentation: Compensation for Delay:
Nidhi Aapke Nikat
Source: Mint Context: The Employees’ Provident Fund Organisation (EPFO) will organise its monthly outreach initiative, Nidhi Aapke Nikat, on 29 September 2025 across multiple districts in India. The programme aims to provide pensioners and stakeholders with doorstep services and grievance redressal. Objective: Key Details:
