Source: IE Context: The 21st edition of Yudh Abhyas, the annual IndiaâUS joint military exercise, concluded successfully on September 14, 2025, after two weeks of intensive engagement. The exercise highlights deepening IndiaâUS defence cooperation despite ongoing trade frictions. Key Highlights:
NITI Aayog Launches âAI for Viksit Bharat Roadmapâ & Frontier Tech Repository
Source: PIB Context: NITI Aayog launched two transformative initiatives, AI for Viksit Bharat Roadmap: Opportunity for Accelerated Economic Growth and NITI Frontier Tech Repository under its Frontier Tech Hub. Key Highlights of the AI for Viksit Bharat Roadmap Economic Potential: Supporting Initiatives: Frontier Tech Repository Additional Initiatives Significance
Corteva Agriscience Launches New Pesticides for Potato and Grapes
Source: TH Context: Global agri-science company Corteva Agriscience has launched two new pesticides in India targeting Downy Mildew in grapes and Late Blight in potatoes, two of the most destructive crop diseases affecting farmersâ productivity and income. Key Highlights: Implications for Indian Agriculture
Sebi Pushes Capital Market Reforms to Enhance Depth and Investor Participation
Source: TOI Context: The Securities and Exchange Board of India (Sebi) has implemented a series of structural reforms aimed at broadening market participation, improving transparency, and attracting quality securities into the Indian capital market. The reforms target both primary and secondary markets to make the investment ecosystem more appealing for domestic and institutional investors. Key Reforms:
UPI-Based Cash Withdrawals to Expand Through Business Correspondents
Source: BS Context: The National Payments Corporation of India (NPCI) is planning to extend Unified Payments Interface (UPI)-based cardless cash withdrawals beyond ATMs and limited merchant outlets. This initiative aims to make cash access more convenient and accessible, particularly in underbanked and rural areas. Business Correspondent (BC) Key Highlights:
Insurance Amendment Bill
Source: BS Context: Finance Minister Nirmala Sitharaman has indicated that the Insurance Amendment Bill, which proposes 100% foreign direct investment (FDI) in the sector, is likely to be introduced in the upcoming Winter Session of Parliament. Key Proposals of the Bill: Objectives:
Indiaâs Outward Foreign Direct Investment (FDI)
Context: An analysis of RBI data by The Hindu shows that in 2024-25, nearly 56% of Indiaâs outward foreign direct investment (FDI) was routed through low-tax jurisdictions like Singapore, Mauritius, UAE, the Netherlands, UK, and Switzerland. This raises questions on taxation, regulatory arbitrage, and strategic corporate positioning. Key Findings from RBI Data: Indiaâs Outward Foreign Direct Investment (OFDI) Indiaâs Outward Foreign Direct Investment (OFDI) refers to investments made by Indian companies, firms, or residents in foreign countries. Unlike inward FDI, where foreign investors invest in India, OFDI involves Indian entities investing abroad to acquire assets, set up subsidiaries, or participate in joint ventures. Forms of OFDI: Indian companies can invest abroad in several ways: Key Features: Objectives of OFDI: Regulatory Framework in India:
Daily Current Affairs (DCA) 16 September, 2025
Daily Current Affairs Quiz16 September, 2025 National Affairs 1. Centre to Launch âSwasth Nari, Sashakt Parivar Abhiyaanâ & 8th Poshan Maah Source: TH Context: The Central Government will launch the âSwasth Nari, Sashakt Parivar Abhiyaanâ (Healthy Woman, Strong Family Campaign) on 17th September 2025, alongside the 8th Poshan Maah (Nutrition Month). The initiative will be inaugurated by Prime Minister Narendra Modi. Key Highlights: 2. Manki-Munda System Source: IE Context: In Kolhan region of Jharkhand, members of the Ho tribal community protested following the removal of certain Mundas, alleging government interference in their traditional Manki-Munda system of self-governance. The protests underline the sensitivity of tribal autonomy and customary governance structures in India. About Manki-Munda System: 3. Exotic Eustoma Blooms in Odisha Source: TH Context: Scientists at CSIRâNational Botanical Research Institute (NBRI) have successfully cultivated Eustoma (Lisianthus) for the first time in Odisha, in a polyhouse at Sanatanpali, Sambalpur district. Previously, Eustoma flowers were mostly imported from countries like the Netherlands and Kenya for premium events, weddings, and luxury dĂ©cor. About Eustoma (Lisianthus): Key Features: Uses: 4. Defence Procurement Manual (DPM) 2025 Context: The Ministry of Defence (MoD) approved the Defence Procurement Manual (DPM) 2025, replacing the 2009 manual. To accelerate revenue procurement for the Armed Forces and promote Aatmanirbharta (self-reliance) in defence manufacturing. Annual revenue procurement under this manual is worth ~âč1 lakh crore. About DPM 2025: Aims: Banking/Finance 1. SEBI Plans Further Relaxations for Foreign Portfolio Investors (FPIs) Source: BS Context: The Securities and Exchange Board of India (SEBI) is planning additional relaxations to simplify the registration process for Foreign Portfolio Investors (FPIs), including a common know-your-client (KYC) framework and wider adoption of India Digital Signature. These moves build on recent measures aimed at making India a more attractive investment destination. Key Highlights: 2. Rising Digital Fraud and Mule Accounts Source: Mint Context: Indian banks are now more cautious about deposit accounts than loans, driven by the rising misuse of dormant accounts as mule accounts in digital fraud. These accounts, typically inactive, are exploited for low-value, high-volume transactions, often linked to money laundering and cybercrime. What are Mule Accounts? How Fraud is Done: RBIâs rules and guidelines to curb digital fraud: 3. SEBI Reclassifies REITs as Equity for Mutual Fund Investments Source: ET Context: The Securities and Exchange Board of India (SEBI) has reclassified Real Estate Investment Trusts (REITs) as equity securities for mutual fund (MF) investments. Earlier, they were treated as hybrid securities, which restricted fund exposure. What This Means? Difference Between Hybrid and Equity Securities: Feature Hybrid Securities Equity Securities Definition Financial instruments combining debt and equity features (e.g., convertible debentures, preference shares) Represents ownership in a company, value fluctuates with the companyâs stock price Risk Profile Moderate; partially fixed returns from debt component High; returns depend on market performance Mutual Fund Treatment Exposure limits often restricted to reduce risk Treated like stocks; higher exposure allowed in equity funds Income Type Fixed interest + potential capital gains Dividends + capital gains from price appreciation Examples Convertible bonds, certain preference shares Equity shares, now REITs under SEBIâs classification Significance: 5. Securitisation Source: BS Context: Securitisation activity (sale of loans through structured transactions) is projected to remain subdued in Q2FY26 (JulyâSeptember 2025), with estimated volumes of âč63,000 crore, compared to âč70,000 crore in the same quarter last year. What is Securitisation? Securitisation is a financial process in which illiquid assets such as loans, receivables, or mortgages are pooled together and converted into tradable securities. These securities are then sold to investors, allowing the originator (bank or financial institution) to raise funds immediately. Key Objective: Securitisation Process Key Features of Securitisation 6. Offshore Non-Deliverable Forward (NDF) Market Context: The Reserve Bank of India (RBI) has intensified its activity in the offshore non-deliverable forward (NDF) market to stabilize the Indian rupee amid volatility caused by shifting demand-supply dynamics. Key Highlights: Offshore Non-Deliverable Forward (NDF) An offshore Non-Deliverable Forward (NDF) is a forward contract to buy or sell a currency at a predetermined rate on a future date without actual delivery of the underlying currency. Instead, the net difference between the contracted rate and the prevailing spot rate is settled in a convertible currency (usually USD). Key Features: How NDFs Help Stabilize INR 7. Prepaid Payment Instrument (PPI) Context: The Reserve Bank of India (RBI) has levied a fine of âč21 lakh on PhonePe for non-compliance with regulations governing Prepaid Payment Instruments (PPIs). Key Highlights: Prepaid Payment Instrument (PPI) A Prepaid Payment Instrument (PPI) is a financial instrument that allows a person to load money in advance and use it for making payments to merchants or transferring funds. PPIs are issued by banks or non-banking financial companies (NBFCs) and are regulated by the Reserve Bank of India (RBI). Types of PPIs: Key Features: Under Which Act RBI Did So? The RBI action against PhonePe for its escrow account balance falling below the mandated minimum was done under the Payment and Settlement Systems Act, 2007 (PSS Act, 2007). 8. ICICI Bank Extends Amazon Pay Co-Branded Credit Card Partnership Context: ICICI Bank has renewed its partnership with Amazon Pay for the co-branded âAmazon Pay ICICI Credit Cardâ for another 7 years. Key Highlights: Agriculture 1. Union Government Announces Annual Opium Licensing Policy 2025-26 Source: PIB Context: The Union Government today announced the annual licensing policy for crop year 2025-26 during the Opium Crop Year from 1st October, 2025 to 30th September, 2026, of license for cultivation of opium poppy, for the farmers in the states of Madhya Pradesh, Rajasthan and Uttar Pradesh. What is Opium? States Where Cultivated in India: Legal Framework: Applications of Opium Key Points from the 2025-26 Licensing Policy: Objectives of the Policy Facts To Remember 1. Vaishali retains Grand Swiss title, qualifies for Candidates R. Vaishali is the champion once again at the FIDE Grand Swiss. In one of the most prestigious events in the chess calendar, the 24-year-old from Chennai showed her class. 2. UPI daily payment limit set at âč10 lakh Indiaâs UPI system has enabled high-value transactions, allowing users
Offshore Non-Deliverable Forward (NDF) Market
Context: The Reserve Bank of India (RBI) has intensified its activity in the offshore non-deliverable forward (NDF) market to stabilize the Indian rupee amid volatility caused by shifting demand-supply dynamics. Key Highlights: Offshore Non-Deliverable Forward (NDF) An offshore Non-Deliverable Forward (NDF) is a forward contract to buy or sell a currency at a predetermined rate on a future date without actual delivery of the underlying currency. Instead, the net difference between the contracted rate and the prevailing spot rate is settled in a convertible currency (usually USD). Key Features: How NDFs Help Stabilize INR
Prepaid Payment Instrument (PPI)
Context: The Reserve Bank of India (RBI) has levied a fine of âč21 lakh on PhonePe for non-compliance with regulations governing Prepaid Payment Instruments (PPIs). Key Highlights: Prepaid Payment Instrument (PPI) A Prepaid Payment Instrument (PPI) is a financial instrument that allows a person to load money in advance and use it for making payments to merchants or transferring funds. PPIs are issued by banks or non-banking financial companies (NBFCs) and are regulated by the Reserve Bank of India (RBI). Types of PPIs: Key Features: Under Which Act RBI Did So? The RBI action against PhonePe for its escrow account balance falling below the mandated minimum was done under the Payment and Settlement Systems Act, 2007 (PSS Act, 2007).
