Daily Current Affairs Quiz31 August & 1 September, 2025 International Affairs 1. State Energy Efficiency Index (SEEI) 2024 Source: PIB Context: On 29 August 2025, the Bureau of Energy Efficiency (BEE) released the State Energy Efficiency Index (SEEI) 2024, in collaboration with the Alliance for an Energy Efficient Economy (AEEE). This is the sixth edition since its launch in 2018. About SEEI: Performance Bands: Top Performers (SEEI 2024): Read more>> 2. Shanghai Cooperation Organisation (SCO) Context: Prime Minister Narendra Modi met Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin, China (hosting for the 5th time). Theme of the summit is “Upholding the Shanghai Spirit: SCO on the Move”. The meeting comes amid gradual improvement in bilateral engagement after recent disengagement along the India-China border. About Shanghai Cooperation Organization (SCO) Objectives: Read more>> 3. Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) Announced by: PM Narendra Modi during his 12th Independence Day address (15 August 2025, Red Fort)Outlay: Nearly ₹1 lakh croreTarget: 3.5 crore jobs in two yearsAim: Bridge the journey from Swatantra Bharat to Samriddha Bharat by supporting massive employment generation. Key Features of the Scheme Part A – Support to First-Time Employees Part B – Incentives for Employers Incentive Payment Mechanism 4. Govt to Launch AI-Based Adivasi Language Translation App ‘Aadi Vaani’ Context: The Ministry of Tribal Affairs will launch the beta version of ‘Aadi Vaani’, an AI-based translation model for Adivasi languages, on Monday. The app will be tested under the Adi Karmayogi initiative for capacity-building in tribal districts. Key Highlights: Adi Karmayogi Initiative The Ministry of Tribal Affairs has launched the Adi Karmayogi initiative under the Dharti Aba Janjatiya Gram Utkarsh Abhiyaan to create a cadre of 20 lakh “change leaders” for last-mile delivery of welfare schemes in tribal villages. The Adi Karmayogi Initiative was officially launched on August 19, 2025, by the Ministry of Tribal Affairs. About the Initiative Banking/Finance 1. RBI Data Shows Slow Credit and Deposit Growth in Rural India Source: BL Context: RBI’s latest data highlights that Scheduled Commercial Banks (SCBs) have struggled to mobilise deposits and expand lending in rural India (“Bharat”) compared to semi-urban, urban, and metropolitan areas over the last 25 years. Key Highlights: Credit Growth (2000–2025) Deposit Growth (2000–2025) Credit-Deposit Ratio (CDR) Urbanisation Trends Important Concept You Should Know for RBI Exam About Scheduled Commercial Banks (SCBs) Aspect Details Meaning Banks listed in the Second Schedule of the RBI Act, 1934. Facilities Available Eligible to borrow from RBI, use clearinghouse facilities, and access liquidity support. Types Included 1. Public Sector Banks 2. Private Sector Banks 3. Foreign Banks in India 4. Regional Rural Banks (RRBs) Eligibility (Section 42(6), RBI Act, 1934) – Capital Requirement: Minimum paid-up capital & reserves of ₹5 lakh (practically higher required). – Depositor Safety: Should not conduct business harmful to depositors. – Affairs Management: Must be in the interest of depositors and the public. – Compliance: Must satisfy RBI that it can follow RBI Act & Banking Regulation Act. 2. RBI Likely to Approve Fino Payments Bank’s Conversion to Small Finance Bank Context: The Reserve Bank of India (RBI) is likely to approve Fino Payments Bank’s request for conversion into a Small Finance Bank (SFB) by March 2026, sources confirmed. This development comes after RBI recently approved AU Small Finance Bank’s (AU SFB) application to become a Universal Bank on August 7, 2025. Fino Payments Bank is a type of Scheduled Commercial Bank.  Scheduled Commercial Bank (SCB) vs Small Finance Bank (SFB) Feature Scheduled Commercial Banks (SCBs) Small Finance Banks (SFBs) Definition Banks listed in the Second Schedule of RBI Act, 1934; includes Public, Private, Foreign, and RRBs. A type of Scheduled Bank focused on financial inclusion for underserved sections. Scope of Operations Universal banking – can serve all segments (corporates, retail, MSMEs, rural, urban, international). Primarily serve small borrowers, MSMEs, farmers, low-income groups. Priority Sector Lending (PSL) Must lend at least 40% of ANBC to PSL. Must lend at least 75% of ANBC to PSL. Branch Requirement No specific rural mandate (but regulated by RBI norms). At least 25% of branches must be in unbanked rural areas. Examples SBI, HDFC Bank, ICICI Bank, RRBs, etc. AU SFB, Equitas SFB, Ujjivan SFB, Jana SFB, etc. Capital Requirement Higher; varies depending on bank type (Private, Public, RRBs). Minimum ₹200 crore paid-up capital (at licensing). Nature Broad-based, covers the entire economy. Specialized, focused on financial inclusion. Eligibility to Become a Small Finance Bank (SFB) 3. RBI Imposes Penalty on Bandhan Bank Source: ET Context: The Reserve Bank of India (RBI) imposed a penalty of ₹44.70 lakh on Bandhan Bank following a supervisory inspection related to its financial position as of March 31, 2024. This highlights the regulator’s continued vigilance over banks’ adherence to compliance norms. Key Highlights: Important Sections For Exams 4. SEBI’s Cybersecurity Framework to Ease Burden Source: ET Context: The Securities and Exchange Board of India (SEBI) has issued clarifications on its Cybersecurity and Cyber Resilience Framework (CSCRF), introducing graded compliance norms to reduce the burden on smaller market intermediaries. Key Highlight: Objectives: Cybersecurity and Cyber Resilience Framework (CSCRF) – SEBI The CSCRF is a regulatory framework introduced by the Securities and Exchange Board of India (SEBI) to safeguard the securities market from cybersecurity risks and ensure that intermediaries can withstand, respond to, and recover from cyberattacks. Objectives: 5. Unit Linked Insurance Plans (ULIPs) Context: The government has recently revised the tax treatment of Unit Linked Insurance Plans (ULIPs), removing earlier ambiguities and bringing them in line with other market-linked investment products like mutual funds. What are ULIPs? Recent Update Section 10(10D) Exemption Conditions To qualify for tax exemption under this section: Significance of the Amendment 6. Foreign Investors Pull Out ₹34.99 Crore from Indian Equities Source: TOI Context: Foreign Portfolio Investors (FPIs) withdrew ₹34,993 crore (~$4 billion) from Indian equities in August 2025, the sharpest sell-off in six months. The move was triggered by steep US tariffs on Indian exports, high domestic valuations, and disappointing Q1 corporate