Context: The National Payments Corporation of India (NPCI) has introduced new Unified Payments Interface (UPI) rules, effective from August 1, 2025, to enhance system efficiency, user experience, and fraud prevention. Key Highlights: Balance Enquiry Auto Payment Processing Bank Details Access Transaction Status Updates Recipient Details Before Payment Compliance & Penalties About NPCI TOI
UPI’s ‘Free Payments’ Model Under Strain as ICICI Bank Imposes Charges on Payment Aggregators
Context: ICICI Bank has begun charging payment aggregators (PAs) for processing UPI transactions, raising concerns over the long-term viability of the zero-cost digital payments ecosystem. Key Highlights: TOI
RBI’s MuleHunter Platform to Tackle Bank Frauds Gains Traction
Context: The Reserve Bank of India (RBI) is scaling up the deployment of its AI-driven MuleHunter platform across more banks to curb fraud involving mule accounts. Key Highlights: Significance BS
SEBI Plans Major Reforms for Mega IPOs
Context: The Securities and Exchange Board of India (SEBI) is considering regulatory reforms to streamline large Initial Public Offerings (IPOs) and improve market efficiency, especially for high-value companies like NSE, Reliance Jio, and Flipkart. Key Highlights: BS
Govt Expands PM SVANidhi Scheme
Context: The Union Government has approved the second phase of the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme with enhanced loan limits and the introduction of UPI-linked credit cards to deepen financial inclusion for urban street vendors. Key Highlights: TOI
ISRO to Launch U.S.-Developed BlueBird Satellite Aboard LVM3
Context: ISRO is set to launch the Block 2 BlueBird communication satellite, developed by U.S.-based AST SpaceMobile, in the next 3–4 months, ISRO Chairman V. Narayanan announced on Friday. Key Highlights: TH
ISRO Identifies Cause of PSLV-C61/EOS-09 Mission Failure
Context: The Indian Space Research Organisation (ISRO) has concluded its investigation into the PSLV-C61/EOS-09 mission failure that occurred on May 18, 2025. ISRO Chairman V. Narayanan confirmed that the Failure Analysis Committee has pinpointed the cause. Key Highlights: Significance TH
Daily Current Affairs (DCA) 1 August, 2025
Daily Current Affairs Quiz1 August, 2025 National Affairs 1. India Justice Report 2025 Context: The India Justice Report 2025 has flagged persistent gaps in India’s legal aid system. Despite over 80% of the population being eligible, only 15.5 lakh individuals accessed free legal aid in FY 2023–24, highlighting deficiencies in reach, quality, and resource utilisation under NALSA. About Legal Aid and NALSA Key Responsibilities Major Initiatives by NALSA Key Challenges Identified Issue Details Budget Constraints Legal aid accounts for <1% of the justice budget; funds fell to ₹169 crore (2022–23) from ₹207 crore (2017–18). Fund Underutilisation Utilisation rate dropped from 75% to 59%, hampering service delivery. Decline in PLV Workforce 38% drop in Para-Legal Volunteers between 2019–24; poor honorarium payments in many States. Rural Inaccessibility Just 1 legal aid clinic per 163 villages; per capita legal aid spending as low as ₹2. Service Quality Gap Widespread perception that legal aid quality is inferior to private counsel. Centralised Fund Control State Legal Services Authorities need central clearance for hiring and logistics, delaying implementation. Significance TH 2. Indian Navy Inducts Indigenous Stealth Frigate Himgiri under Project-17A Context: India’s naval defence capabilities received a boost with the delivery of Himgiri, a second indigenous stealth frigate in July 2025, built under Project-17A. The move aligns with India’s long-term strategy of aatmanirbharta (self-reliance) in warship manufacturing. About Himgiri Part of Project-17A Advanced Capabilities TET 3. Mangrove Restoration Initiatives Across States Context: India has launched large-scale mangrove restoration drives across Tamil Nadu, Gujarat, and Mumbai to enhance coastal security, biodiversity, and climate resilience in the face of escalating ecological threats. What Are Mangroves? Ecological and Climate Importance Major Threats to Mangroves State-Led Restoration Efforts Strategic and Socioeconomic Benefits TH 4. Kavach 4.0 Context: Indian Railways has successfully commissioned the indigenous train protection system, Kavach 4.0, on the Mathura-Kota section of the high-density Delhi–Mumbai route. This marks a significant leap in modernizing railway safety systems in India. Key Highlights: Significance PIB Banking/Finance 1. ICICI Bank to Begin Charging Payment Aggregators for UPI Transactions Context: From August 1, 2025, ICICI Bank will start levying charges on payment aggregators (PAs) for processing Unified Payments Interface (UPI) transactions, becoming the latest major private bank to tap into this cost recovery mechanism. Key Highlights: Reason Behind the Move Impact on PAs and Merchants Growing UPI Volumes and Monetisation Pressure Operational Structure of PAs BS 2. Bank Credit Growth Slows Sharply in June 2025 – RBI Data Context: According to the Reserve Bank of India (RBI), non-food bank credit growth slowed to 10.2% year-on-year (Y-o-Y) as of the fortnight ended June 27, 2025, down from 13.8% during the same period in 2024. The slowdown was driven by weaker demand across agriculture, services, retail, NBFCs, and industrial sectors. Key Highlights: 1. Agriculture and Allied Activities 2. Services Sector 3. NBFCs and Trade 4. Retail Lending Trends Personal loans, housing finance, and vehicle loans—once pillars of credit growth—have all recorded slower expansion. This signals a shift in household borrowing behaviour, possibly due to higher interest rates, inflationary pressures, and reduced discretionary spending. 5. Industrial Credit Reasons Behind the Slowdown BS 3. Standing Committee on Finance Flags Gaps in PMIS and IBC Context: On July 31, 2025, the Standing Committee on Finance, chaired by MP Bhartruhari Mahtab, submitted a report in Parliament highlighting key issues and recommendations related to the Prime Minister’s Internship Scheme (PMIS), Insolvency and Bankruptcy Code (IBC), and rising direct and indirect tax disputes. Key Highlights: Prime Minister’s Internship Scheme (PMIS) Insolvency and Bankruptcy Code (IBC) 4. Insurance Brokers Association of India (IBAI) Report on Insurance in India Context: The Insurance Brokers Association of India (IBAI) released a comprehensive report titled “Leading the Path to Insurance for All: Broker of the Future”, in collaboration with McKinsey & Company, to mark its 24th Foundation Day in Mumbai (August 2025). Key Highlights: About IBAI (Insurance Brokers Association of India) BS 5. IRDAI Issues Master Circular to Raise Minimum Insurance Coverage Requirements Context: On 25 July 2025, the Insurance Regulatory and Development Authority of India (IRDAI) released its latest Master Circular. This circular lays out enhanced regulatory obligations for all life, general, and standalone health insurers for FY2025–26 and FY2026–27, superseding the 2024 version of the regulations. Key Obligations for Insurers Rural Sector Coverage Social Sector Coverage Motor Third-Party (TP) Insurance Obligations are based on an insurer’s market share in the TP segment: Market Share FY26 Increase FY27 Increase ≤ 2% 12.5% 13.75% 2%–5% 10% 11% 5%–10% 7.5% 8.25% > 10% 5% 5.5% Insurers must verify compliance using vehicle registration data and the Insurance Information Bureau (IIB) database to identify uninsured vehicles. Key Changes Introduced About IRDAI 6. SEBI Proposes Changes in IPO Allocation Norms for Large Issues Context: The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing major reforms to the allocation structure of Initial Public Offerings (IPOs), particularly for large issues exceeding ₹5,000 crore. The move aims to better align IPO allocation with investor interest and institutional appetite. Proposed Changes in IPO Allocation Structure Rationale Behind the Proposal Anchor Investor Reforms Enhanced Reservation for Long-term Institutions Objective of the Reform To align IPO structures with: Mint Agriculture 1. Reassessing India’s Agricultural Protectionism and the Need for Market Reforms Context: India’s post-Independence tariff policy has been centred on protecting agriculture, citing food security and farm livelihoods. However, over the decades, this protectionist model has resulted in inefficiencies, uncompetitive farming, and persistent food insecurity. A recent opinion piece reconsiders the long-standing rationale for this policy, highlighting the market distortions and the need for structural reforms. Key Highlights: 1. Protectionism in Agriculture: An Outdated Strategy 2. Food Security Paradox 3. Stagnant Farm Productivity and Wages 4. Need for Market-Based Reforms 5. Policy Contradictions 6. Long-Term Economic Risk TET 2. Cabinet Approves “Grant-in-Aid to National Cooperative Development Corporation (NCDC)” Scheme Context: The Union Cabinet has approved a new Central Sector Scheme titled “Grant-in-Aid to NCDC”, with a total outlay of ₹2,000 crore for four years (FY 2025–26 to FY 2028–29). Key Features Expected
Cabinet Approves “Grant-in-Aid to National Cooperative Development Corporation (NCDC)” Scheme
Context: The Union Cabinet has approved a new Central Sector Scheme titled “Grant-in-Aid to NCDC”, with a total outlay of ₹2,000 crore for four years (FY 2025–26 to FY 2028–29). Key Features Expected Benefits About NCDC
Reassessing India’s Agricultural Protectionism and the Need for Market Reforms
Context: India’s post-Independence tariff policy has been centred on protecting agriculture, citing food security and farm livelihoods. However, over the decades, this protectionist model has resulted in inefficiencies, uncompetitive farming, and persistent food insecurity. A recent opinion piece reconsiders the long-standing rationale for this policy, highlighting the market distortions and the need for structural reforms. Key Highlights: 1. Protectionism in Agriculture: An Outdated Strategy 2. Food Security Paradox 3. Stagnant Farm Productivity and Wages 4. Need for Market-Based Reforms 5. Policy Contradictions 6. Long-Term Economic Risk TET
