Context: The Reserve Bank of India (RBI) has proposed to widen the scope of capital charge for Counterparty Credit Risk (CCR) to include derivatives in equity, precious metals (excluding gold), and other commodities. Key Highlights: Counterparty Credit Risk (CCR) Counterparty Credit Risk (CCR) is the risk that the other party in a financial transaction (the counterparty) may fail to meet its obligations before the final settlement of the transaction. It is most common in derivatives, securities financing, and trading transactions. Key Features of CCR: Why It Matters? BS
Advisory Board for Banking & Financial Frauds (ABBFF)
Context: The Advisory Board for Banking and Financial Frauds (ABBFF) has been reconstituted for a two-year term, effective August 21, 2025. Functions as a ‘Safety Valve’ for bankers, providing advice before criminal investigations in major fraud cases. Advisory Board for Banking and Financial Frauds (ABBFF): The Advisory Board for Banking and Financial Frauds (ABBFF) is a high-level panel set up by the Central Vigilance Commission (CVC) to examine the role of senior officials of Public Sector Banks (PSBs), Public Sector Insurance Companies, and Public Sector Financial Institutions in large fraud cases. Key Points: BS
L&T Finance Partners with Google Pay to Offer Instant Personal Loans
Context: L&T Finance Ltd. (LTF), one of India’s leading non-banking financial companies (NBFCs), has partnered with Google Pay to provide personal loans directly via the digital payments platform. Key Highlights: Mint
SEBI Chief Cautions AMCs on Micro-Cap Investments, Urges Transparency
Context: At the 30th anniversary of the Association of Mutual Funds in India (AMFI), SEBI Chairperson Tuhin Kanta Pandey highlighted key regulatory concerns for the mutual fund industry, focusing on risk management, investor protection, and transparency. Key Highlights: 1. Micro-Cap Investments (Small Companies) 2. Chhoti SIPs (Small Monthly Investments) 3. Investor Confidence (Trust in Markets) BS
NITI Aayog’s Roadmap for Homestays
Context: NITI Aayog has released a report titled “Rethinking Homestays: Navigating Policy Pathways”, outlining a strategic framework to develop an inclusive and sustainable homestay ecosystem in India. The report emphasizes fiscal incentives, streamlined registrations, and digitalization of homestay operations. These steps align with India’s broader aim of leveraging tourism for job creation and regional economic development. Key Highlights of the Report: Significance: ET
Adi Karmayogi Abhiyan
Context: The Ministry of Tribal Affairs has launched the Adi Karmayogi Abhiyan, envisaged as the world’s largest tribal grassroots leadership programme, focusing on empowering tribal communities, building local leadership, and promoting responsive governance. Key Objectives: Major Features & Outcomes: Community Participation: PIB
Daily Current Affairs (DCA) 22 August, 2025
Daily Current Affairs Quiz22 August, 2025 National Affairs 1. India’s Green Hydrogen Potential: FICCI–EY Joint Report Context: A joint report by FICCI and EY emphasizes that India could capture 10% of the global green hydrogen market by overcoming cost and infrastructure barriers, aligning with its net-zero ambitions. What is Green Hydrogen? India’s Current Initiatives: Key Challenges: Recommendations from Report: 2. India’s Need for a National Space Law Context: India is set to celebrate its second National Space Day on 23 August. Despite major milestones like Chandrayaan-3 and the upcoming Gaganyaan mission, the country lacks a comprehensive national space legislation to regulate private participation and commercial use of outer space. What is Space Law? Key Principles of Outer Space Treaty (OST), 1967 Why India Needs a National Space Law Global Practices TH 3. 18th International Earth Science Olympiad (IESO) 2025 Context: Rayansh Gupta from Ludhiana won 1 Gold and 1 Silver medal at the 18th International Earth Science Olympiad (IESO 2025) held in Jining, China. About IESO 2025: India’s Performance: 4. India’s Draft Climate Finance Taxonomy Context: The Ministry of Finance released India’s draft Climate Finance Taxonomy for public consultation in May 2025. About the Draft Taxonomy: Key Features: Banking/Finance 1. SEBI’s Proposal to Regulate Grey Market & Pre-Listing Trading Context: The Securities and Exchange Board of India (SEBI) is exploring the creation of a regulated venue for pre-listing trading of company shares to bring transparency to the grey market and aid in fair price discovery. What is it? A formal SEBI-supervised platform allowing the trading of shares of unlisted companies before their Initial Public Offering (IPO). It aims to replace the opaque grey market with a transparent, legal system. Objectives About the Grey Market Significance of SEBI’s Move ET 2. RBI Discussion Paper on Flexible Inflation Targeting (FIT) Framework Context: The Reserve Bank of India (RBI) has released a discussion paper reviewing India’s Flexible Inflation Targeting (FIT) framework, questioning whether the current 4% inflation target continues to be optimal for balancing growth and price stability in a rapidly growing emerging economy. Background Flexible Inflation Targeting (FIT) Flexible Inflation Targeting (FIT) is a monetary policy framework adopted by central banks, including the Reserve Bank of India (RBI), to control inflation while supporting economic growth. Key Features: Significance: BS 3. Dynamic Asset Allocation Active Fund of Funds (FoF) Context: SBI Mutual Fund (MF) has introduced a new Dynamic Asset Allocation Active Fund of Funds (FoF) to offer investors a diversified investment solution that adapts to changing market conditions. Objective: Provide investors with a convenient one-fund solution by leveraging multiple actively managed equity and debt strategies. Dynamic Asset Allocation Active Fund of Funds (FoF) Dynamic Asset Allocation Active Fund of Funds (FoF) is a type of investment strategy in the mutual fund space that dynamically manages investments across different asset classes (equity, debt, gold, etc.) by investing primarily in other mutual funds rather than directly in securities. Key Features: BS 4. SEBI Looks to Promote Long-Tenure Derivatives Context: The Securities and Exchange Board of India (SEBI) is considering measures to extend the tenure of derivative (Futures & Options – F&O) contracts. This move comes amid growing concerns that weekly options trading has become excessively speculative, with data showing that nearly 90% of retail traders incur losses in this segment. Key Highlights: Long-Tenure Derivatives Long-Tenure Derivatives are financial contracts in the derivatives market with a longer duration until expiry, as opposed to short-term or weekly contracts. These derivatives allow investors and institutions to hedge risks or make investments over a longer horizon, rather than engaging in rapid speculative trades. A derivative is a financial contract whose value is derived from an underlying asset, such as a stock, commodity, bond, or currency. Key Features: TOI 5. AU Small Finance Bank Launches UPI Services for NRE/NRO Accounts Context: AU Small Finance Bank (AU SFB) has enabled UPI services for NRE and NRO account holders using international mobile numbers, in line with NPCI’s directive. NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts are bank accounts for Non-Resident Indians (NRIs) to manage their finances in India. Key Highlights: About AU Small Finance Bank (AU SFB) BL 6. IndiGo & IDFC FIRST Bank Launch Dual-Network IndiGo IDFC FIRST Credit Card Context: IndiGo and IDFC FIRST Bank have jointly introduced the IndiGo IDFC FIRST Credit Card, a premium co-branded product offering both Mastercard and RuPay networks under one application. This innovation aims to democratise premium travel benefits, improve payment flexibility, and strengthen IndiGo’s BluChip loyalty program. Key Features & Benefits: Mint Facts To Remember 1. Dal Lake hosts first-ever Khelo India water games with eye on Olympics The picturesque and iconic Dal Lake in Srinagar on Thursday hosted the first-ever races under rowing, kayaking, and canoeing categories under the Khelo IndiaWater Sports Festival, with an eye on improving the rank in water sports at the Olympics in the coming years. 2. SpaceX took oxygen leak in rocket ‘lightly’: ISRO chief The Chairman of the Indian Space Research Organisation (ISRO), V. Narayanan, Sweden will host a NATO logistics headquarters in Enkoping, northwest of Stockholm, to troop movements in Northern Europe, the government said said the Falcon 9 rocket team that launched Indian astronaut Group Captain Shubhanshu Shukla to the International Space Station (ISS) took the pre-launch leak in the oxidiser line to one of the engines “lightly”. 3. Sweden to host NATO troops, logistics base Sweden will host a NATO logistics headquarters in Enkoping, northwest of Stockholm, to troop movements in Northern Europe, the government said. 4. Tapsya showcases her potential to clinch gold Tapsya Gahlawat is proud to have fulfilled her late grandfather’s wish as she gave a good account of her potential to clinch a gold medal in the World under-20 wrestling championships at Samokov, Bulgaria. 5. Maharashtra Tops Payouts Under PMFBY (2022-25) Maharashtra has emerged as the top recipient of payouts under the Centre’s flagship crop insurance scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY), highlighting the continuing importance of agriculture in India’s most industrialized state. 6. World Orangutan Day August 19th World
IndiGo & IDFC FIRST Bank Launch Dual-Network IndiGo IDFC FIRST Credit Card
Context: IndiGo and IDFC FIRST Bank have jointly introduced the IndiGo IDFC FIRST Credit Card, a premium co-branded product offering both Mastercard and RuPay networks under one application. This innovation aims to democratise premium travel benefits, improve payment flexibility, and strengthen IndiGo’s BluChip loyalty program. Key Features & Benefits: Mint
AU Small Finance Bank Launches UPI Services for NRE/NRO Accounts
Context: AU Small Finance Bank (AU SFB) has enabled UPI services for NRE and NRO account holders using international mobile numbers, in line with NPCI’s directive. NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts are bank accounts for Non-Resident Indians (NRIs) to manage their finances in India. Key Highlights: About AU Small Finance Bank (AU SFB) BL
SEBI Looks to Promote Long-Tenure Derivatives
Context: The Securities and Exchange Board of India (SEBI) is considering measures to extend the tenure of derivative (Futures & Options – F&O) contracts. This move comes amid growing concerns that weekly options trading has become excessively speculative, with data showing that nearly 90% of retail traders incur losses in this segment. Key Highlights: Long-Tenure Derivatives Long-Tenure Derivatives are financial contracts in the derivatives market with a longer duration until expiry, as opposed to short-term or weekly contracts. These derivatives allow investors and institutions to hedge risks or make investments over a longer horizon, rather than engaging in rapid speculative trades. A derivative is a financial contract whose value is derived from an underlying asset, such as a stock, commodity, bond, or currency. Key Features: TOI
