Context: The Reserve Bank of India (RBI) has cautioned NBFCs, Microfinance Institutions (MFIs), and Housing Finance Companies (HFCs) against aggressive expansion without strong risk management frameworks and sustainable business practices. Key Highlights: Significance:
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; violations can lead to capital-raising bans, board prohibitions, and monetary penalties. Investor Protection SEBI can direct recovery of misused funds; companies must refund diverted funds to investors.
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
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
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
Sidbi net profit rises by 19.5% to record high of â‚ą4,811 cr in FY25
Context: Small Industries Development Bank of India (Sidbi) said its net profit rose by 19.5 per cent to hit an all-time high of Rs 4,811 crore in the 2024-25 financial year. Key Highlights: Parameter FY24 FY25 Change / Remarks Net Profit ₹4,026 crore ₹4,811 crore ↑ 19.5% (highest ever) Balance Sheet Size ₹5.22 lakh crore (approx.) ₹5.68 lakh crore ↑ 8.7% Loans & Advances Portfolio ₹4.56 lakh crore (approx.) ₹4.96 lakh crore ↑ 8.8% Total Income ₹31,941 crore (approx.) ₹38,511 crore ↑ 20.6% EPS (Earnings Per Share) ₹70.74 (approx.) ₹84.62 Significant growth Dividend Declared 20% 20% Maintained Gross NPA 0.05% (approx.) 0.04% Improved Net NPA Nil Nil Maintained strong asset quality
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
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)
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:
Daily Current Affairs (DCA) 28&29 September, 2025
Daily Current Affairs Quiz28&29 September, 2025 National Affairs 1. 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) 2. 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? 3. 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. 3. 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. 4. 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: 5. Ivermectin Context: What is Ivermectin? Banking/Finance 1. 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: 2. 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). 3. NaBFID Partners with World Bank & ADB for $1 Billion Credit Enhancement Facility 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: 4. Multi-Commodity Exchange of India (MCX) & Gold and Silver Exchange-Traded Funds (ETFs) Context: India Bullion & Jewellers Association (IBJA) urges regulators to allow Indian-refined gold and silver bars (“India Good Delivery”) for: About MCX Current Scenario: Gold & Silver ETFs in India What are ETFs? Gold ETFs Silver ETFs 5. National Pension System (NPS) Reforms Source: FE Context: The National Pension System (NPS), which became available for the non-government sector in 2009, has evolved over the last 16 years, and today it is considered one of the most reliable retirement investment options. Objective: Reduce rigidity, expand investor choice, and make NPS more appealing, especially to private-sector employees and optional subscribers. Major Reforms: Benefits: Challenges / Tax Wrinkles: 6. SBI Card & IndiGo Co-Branded Credit Card Source: ET Context: Domestic carrier IndiGo on Thursday announced the launch of a co-branded premium credit card in collaboration with SBI Card, offering a host of benefits to the customers of the two companies. Program: Part of IndiGo BluChip loyalty program Card Variants: Platform Availability:
