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:
Daily Current Affairs (DCA) 27 September, 2025
Daily Current Affairs Quiz27 September, 2025 National Affairs 1. Ek Din Ek Ghanta Ek Saath Source: PIB Context: As part of the Swachhata Hi Seva (SHS) 2025 campaign (17 Sept. – 2 Oct.), Prime Minister Shri Narendra Modi called citizens to participate in Ek Din, Ek Ghanta, Ek Saath, a one-hour nationwide voluntary cleanliness drive at 8:00 AM. Led by the Ministry of Housing & Urban Affairs (MoHUA) and the Department of Drinking Water & Sanitation (DDWS), MoJS. Aim: Features: 2. Ministry of Ayush Launches “Prayas” Integrated Neuro-Rehabilitation Centre at AIIA Goa Source: PIB Context: The Ministry of Ayush launched “Prayas”, India’s first integrated Neuro-Rehabilitation Centre at the All India Institute of Ayurveda (AIIA), Goa. About Prayas: Aim and Function: 3. The Foreign Contribution (Regulation) Act, 2010 (FCRA) Source: IE Context: The Ministry of Home Affairs (MHA) cancelled the FCRA license of climate activist Sonam Wangchuk’s NGO following a violent protest in Leh, citing that his statements “incited” unrest. About FCRA: Key Features: 4. Sabki Yojana, Sabka Vikas Source: News on Air Context: The Ministry of Panchayati Raj (MoPR) will launch the People’s Plan Campaign (PPC) “Sabki Yojana, Sabka Vikas” from 2nd October 2025 to kickstart the preparation of Panchayat Development Plans (PDPs) for FY 2026–27. Objective: Key Features: Banking/Finance 1. RBI Stops Dollar Purchases in July 2025 Amid Rupee Depreciation Context: The Reserve Bank of India (RBI) refrained from purchasing US dollars in July 2025, marking the first zero-dollar purchase month since February 2014. Instead, the central bank sold dollars to stabilise the rupee. Key Highlights: Reason for Refraining from Dollar Purchases Reason Details Stabilise the Rupee Rupee depreciated 2.23% in July 2025; RBI sold $2.54 billion to curb volatility. Policy Priority Shift RBI prioritized currency stability over reserve accumulation to prevent inflation, investor panic, and rising import costs. External Pressures US tariffs, foreign capital outflows, and geopolitical tensions contributed to rupee depreciation, RBI’s dollar sales eased market panic. Impact Impact Details Rupee Stability Reduces short-term volatility and restores market confidence. Forex Reserves Dip Reserves fell by $10.87B, continued interventions could weaken buffers. Imported Inflation Helps limit costlier imports, especially crude oil. Trade Competitiveness Moderate depreciation supports exporters while avoiding extreme volatility. Market Sentiment Signals RBI’s proactive stance, reassuring investors and curbing panic outflows. 2. Weakness of Rupee Context: Right through September, every passing week, the Indian rupee (INR) has been hitting all-time lows in its exchange value with the US dollar (USD). On September 23, the lowest level of 88.6 rupees to a US dollar was recorded. Causes of INR Weakness Cause Details / Explanation Trade Imbalance – Exports stagnant due to global protectionism. – High imports of oil (~85% dollar-priced), electronics, fertilizers → worsens current account deficit (CAD). Investment Slowdown – Weak corporate earnings and global uncertainty → FPI and FDI inflows sluggish or negative. – Example: Net FPI outflows of $1.5 bn recently, reducing dollar supply. Relative Currency Demand – Higher global demand for USD over INR, especially amid global financial tightening. Growth Concerns – Subdued GDP growth (~6.1% in Q1 FY26) lowers investor confidence. Global Financial Tightening – Attractive US asset returns pull capital out of India. Read more>> 3. Bank of Baroda Gains Approval for Bullion Exchange Operations at GIFT City Source: TH Context: Bank of Baroda has been authorised by the International Financial Services Centres Authority (IFSCA) to operate as a Trading-Cum-Clearing Member (TCM) on the India International Bullion Exchange IFSC Limited (IIBX) at GIFT City. Bullion Exchange A Bullion Exchange is a marketplace where precious metals such as gold, silver, platinum, and other metals are traded in standardized forms. These exchanges facilitate buying, selling, and price discovery for bullion, usually in the form of bars, coins, or certificates. Key Features of a Bullion Exchange: 4. RBI Survey on International Trade in Banking Services (ITBS) 2024–25 Source: RBI Annual Survey (2025) Context: The Reserve Bank of India (RBI) released its annual Survey on International Trade in Banking Services (ITBS) for 2024–25, highlighting the performance of Indian banks’ overseas operations and foreign banks in India. Key Highlights: Category Indian Banks Abroad Foreign Banks in India Branch / Employee Growth – Overseas branches ↑ 1.9%– Employee strength ↑ 6.1% — Consolidated Balance Sheet Growth – Branches ↑ 9.1%– Subsidiaries ↑ 4.2% ↑ 17.5% Credit Growth Lending ↑ 5.6% ↑ 8.4% Deposit Growth Deposit mobilisation ↑ 9.4% ↓ 6.8% (vs. 16.4% last year) Income & Profitability – Overseas branches: • Interest income ↑ 8% (vs. 72% last year) • Interest expenses ↑ 9% (vs. 87.5% last year) • Income-to-assets ratio ↓ 5.9% – Subsidiaries:• Income-to-assets ratio ↑ 7.4% – Subsidiaries:Income-to-assets ratio ↓ 7.1% Fee Income Trends ↑ 4.3% ↑ 9.4% Main Fee Income Drivers Credit-related services, trading, payments, trade finance Same (credit-related, trading, payments, trade finance) Top Locations for Indian Banks’ Fee Income (2024–25): Significance 5. NPCI International & QNB Enable UPI Payments for Indian Travellers in Qatar Source: BS Context: In September 2025, NPCI International Payments Limited (NIPL), a wholly owned subsidiary of NPCI, in partnership with Qatar National Bank (QNB), launched QR-based Unified Payments Interface (UPI) services for Indian travelers in Qatar. Key Highlights: 6. RBI Renews Statement of Commitment to FX Global Code Source: BS Context: In September 2025, the Reserve Bank of India (RBI) reaffirmed its commitment to global best practices in the foreign exchange (FX) market by renewing its Statement of Commitment (SoC) to the FX Global Code. The Foreign Exchange (FX) Market, also called the Forex Market, is a global marketplace for buying, selling, and exchanging currencies. It is the largest and most liquid financial market in the world. Key Highlights: About FX Global Code: 7. SEBI Raises Custodian Net Worth Requirement to â‚ą75 Crore Source: ET Context: In September 2025, the Securities and Exchange Board of India (SEBI) increased the minimum net worth requirement for custodians from â‚ą50 crore to â‚ą75 crore to strengthen risk management systems. Key Highlights: Custodian Responsibilities: 8. Societe Generale expands in India with the launch of the GIFT City branch Source: BL Context: Paris-based Societe
Sabki Yojana, Sabka Vikas
Source: News on Air Context: The Ministry of Panchayati Raj (MoPR) will launch the People’s Plan Campaign (PPC) “Sabki Yojana, Sabka Vikas” from 2nd October 2025 to kickstart the preparation of Panchayat Development Plans (PDPs) for FY 2026–27. Objective: Key Features:
