Daily Current Affairs Quiz10 July, 2025 National Affairs 1. Starlink Receives IN-SPACe Approval to Operate in India Context: On July 9, 2025, IN-SPACe (Indian National Space Promotion and Authorisation Centre), under the Department of Space, granted authorisation to Starlink to operate its satellite broadband services in India. This marks a significant regulatory step for Elon Musk’s SpaceX-owned Starlink, which has long awaited full clearance to launch operations in the country. IN-SPACe (Indian National Space Promotion and Authorisation Centre) Importance of IN-SPACe Authorisation What Is Starlink? TH 2. National Population Register (NPR) Context: The Government of India has initiated preparatory discussions for Census 2027, but no final decision has been taken yet on updating the National Population Register (NPR) during this exercise, according to senior Home Ministry officials. What is NPR? The National Population Register (NPR) is a comprehensive database of “usual residents” of India. A usual resident is defined as someone who has stayed in a local area for at least 6 months or intends to stay for the next 6 months. It includes both Indian citizens and foreign nationals. Background and Legal Framework Features and Process 3. Petroleum & Natural Gas Rules, 2025 Context: The Ministry of Petroleum & Natural Gas has released a draft policy framework to modernise India’s upstream oil and gas sector. The draft rules aim to replace outdated regulations and align with evolving energy, environmental, and investment needs. Key Features: Implications Banking/Finance 1. SEBI Proposes Expanded Role for Credit Rating Agencies Context: The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing to expand the permitted activities of Credit Rating Agencies (CRAs) beyond securities listed or proposed to be listed on stock exchanges. The draft is open for public comments until 30 July 2025. Credit Rating Agencies (CRAs) Credit Rating Agencies (CRAs) are organizations that assess the creditworthiness of borrowers, like companies or governments, and assign ratings to their debt instruments. These ratings reflect the agency’s opinion on the likelihood that the borrower will repay its debts, including principal and interest, on time. Investors use these ratings to gauge the risk associated with investing in those debt instruments. Current Regulatory Gap Key Proposals in the Consultation Paper Current Norms: SEBI’s Key Proposal: Conditions: TH & Mint 2. Catastrophe Bonds (Cat Bonds) Context: India faces increasing exposure to climate-induced disasters such as floods, cyclones, forest fires, and earthquakes. Despite this, disaster risk insurance penetration is low, leaving much of India’s population and property uninsured and financially vulnerable. In this context, catastrophe bonds (cat bonds) offer an innovative risk-transfer mechanism that India could adopt. What are Catastrophe Bonds (Cat Bonds)? Cat Bonds are specialized financial instruments that combine insurance and debt features, used to transfer disaster-related risks (like earthquakes, cyclones) from governments or insurers to capital market investors. Key Features How Cat Bonds Work Element Description Sponsor Sovereign nations or insurers who issue cat bonds to transfer risk. Premium Paid by the sponsor; the principal equals the insured amount. Intermediary Institutions like the World Bank, ADB, or reinsurance firms to issue and manage risk. Investors Pension funds, hedge funds, and family offices who take on risk in return for higher coupon rates. Coupon Rates Higher than standard bonds due to risk; varies by hazard (e.g., 1–2% for earthquakes, higher for hurricanes). Loss of Principal Investors may lose part of the principal if a catastrophe occurs. Benefits of Cat Bonds Why India Needs Cat Bonds TH 3. RBI’s Whitelist and Key Safety Guidelines Context: The Reserve Bank of India (RBI) has published a list of authorised digital lending apps (DLAs) on its website to help borrowers distinguish between regulated and fraudulent apps. This move is part of its ongoing effort to safeguard digital lending in India and ensure consumer protection. Why This Matters Risks of Using Unauthorised Loan Apps BS 4. RBI Issues Draft Guidelines on Novation of OTC Derivative Contracts Context: On July 10, 2025, the Reserve Bank of India (RBI) released draft guidelines proposing a structured mechanism for novation of over-the-counter (OTC) derivative contracts. This move aims to enhance transparency, fairness, and legal certainty in OTC derivatives markets. What is Novation? Novation is a legal process that replaces an existing contract with a new one by substituting one counterparty while maintaining identical contractual terms (except the party change). Key Features of the RBI Draft Guidelines TET 5. Non-Performing Assets (NPAs) in India Context: India’s large stockpile of Non-Performing Assets (NPAs) is often seen as a reflection of inefficiency in the banking sector. However, it also presents a significant investment opportunity due to the steep discounts offered in bank-led property auctions—often 20–30% below market value. Despite this, real estate investors have largely stayed away from this sector due to multiple structural and regulatory challenges. What are NPAs? NPAs are loans or advances where the borrower has stopped making interest or principal repayments for a specified period, typically 90 days. When a loan turns into an NPA, it is classified into different categories based on its aging and recoverability. Banks are required to maintain provisions for such assets, which can affect their overall profitability and lending capacity. Classification of NPAs Banks classify NPAs into different categories based on the time elapsed since the due date: SARFAESI & IBC Challenges remain Technology-Driven Solutions BS 6. CAMS Launches CAMSPay Gateway for Secure Digital Transactions Context: Computer Age Management Services (CAMS), a key fintech infrastructure provider in India, has launched a new CAMSPay Payment Gateway tailored to meet the evolving regulatory and technological needs of the digital payments landscape. Key Highlights: Economy 1. India’s Gini Index of 25.5 Context: A recent World Bank Poverty and Equity Brief pegged India’s Gini index at 25.5 for 2022–23, making it appear among the most equal countries globally. However, the figure—based on consumption inequality, not income or wealth—has raised eyebrows among economists and policymakers alike. Understanding the Gini Coefficient Data Highlights Why the Debate Matters Wage Inequality Regional & Spatial Inequality Wealth and Intergenerational Inequality BS Agriculture 1. Indian Astronaut Shubhanshu Shukla
Petroleum & Natural Gas Rules, 2025
Context: The Ministry of Petroleum & Natural Gas has released a draft policy framework to modernise India’s upstream oil and gas sector. The draft rules aim to replace outdated regulations and align with evolving energy, environmental, and investment needs. Key Features: Implications
National Fish Farmers Day 2025
Context: National Fish Farmers Day 2025 was celebrated on 10th July to acknowledge the vital contribution of India’s fish farmers in ensuring food security, enhancing employment, and promoting sustainable aquaculture as part of the country’s growing Blue Economy. Key Highlights: Key Announcements Govt. Schemes PIB
Indian Astronaut Shubhanshu Shukla Conducts Agri-Biotech Experiments on ISS
Context: Indian astronaut Shubhanshu Shukla, during the final leg of his mission aboard the International Space Station (ISS), participated in several cutting-edge biological and agricultural experiments under India’s collaborative space science programme with Axiom Space and ISRO. Key Scientific Experiments Conducted: Space Germination of Indian Crop Seeds Microalgae Deployment Space Crop Breeding Stem Cell Research Significance of the Research TH
CAMS Launches CAMSPay Gateway for Secure Digital Transactions
Context: Computer Age Management Services (CAMS), a key fintech infrastructure provider in India, has launched a new CAMSPay Payment Gateway tailored to meet the evolving regulatory and technological needs of the digital payments landscape. Key Highlights:
Non-Performing Assets (NPAs) in India
Context: India’s large stockpile of Non-Performing Assets (NPAs) is often seen as a reflection of inefficiency in the banking sector. However, it also presents a significant investment opportunity due to the steep discounts offered in bank-led property auctions—often 20–30% below market value. Despite this, real estate investors have largely stayed away from this sector due to multiple structural and regulatory challenges. What are NPAs? NPAs are loans or advances where the borrower has stopped making interest or principal repayments for a specified period, typically 90 days. When a loan turns into an NPA, it is classified into different categories based on its aging and recoverability. Banks are required to maintain provisions for such assets, which can affect their overall profitability and lending capacity. Classification of NPAs Banks classify NPAs into different categories based on the time elapsed since the due date: SARFAESI & IBC Challenges remain Technology-Driven Solutions BS
RBI Issues Draft Guidelines on Novation of OTC Derivative Contracts
Context On July 10, 2025, the Reserve Bank of India (RBI) released draft guidelines proposing a structured mechanism for novation of over-the-counter (OTC) derivative contracts. This move aims to enhance transparency, fairness, and legal certainty in OTC derivatives markets. What is Novation? Novation is a legal process that replaces an existing contract with a new one by substituting one counterparty while maintaining identical contractual terms (except the party change). Key Features of the RBI Draft Guidelines TET
India’s Gini Index of 25.5
Context: A recent World Bank Poverty and Equity Brief pegged India’s Gini index at 25.5 for 2022–23, making it appear among the most equal countries globally. However, the figure—based on consumption inequality, not income or wealth—has raised eyebrows among economists and policymakers alike. Understanding the Gini Coefficient Data Highlights Why the Debate Matters Wage Inequality Regional & Spatial Inequality Wealth and Intergenerational Inequality BS
Catastrophe Bonds (Cat Bonds)
Context: India faces increasing exposure to climate-induced disasters such as floods, cyclones, forest fires, and earthquakes. Despite this, disaster risk insurance penetration is low, leaving much of India’s population and property uninsured and financially vulnerable. In this context, catastrophe bonds (cat bonds) offer an innovative risk-transfer mechanism that India could adopt. What are Catastrophe Bonds (Cat Bonds)? Cat Bonds are specialized financial instruments that combine insurance and debt features, used to transfer disaster-related risks (like earthquakes, cyclones) from governments or insurers to capital market investors. Key Features How Cat Bonds Work Element Description Sponsor Sovereign nations or insurers who issue cat bonds to transfer risk. Premium Paid by the sponsor; the principal equals the insured amount. Intermediary Institutions like the World Bank, ADB, or reinsurance firms to issue and manage risk. Investors Pension funds, hedge funds, and family offices who take on risk in return for higher coupon rates. Coupon Rates Higher than standard bonds due to risk; varies by hazard (e.g., 1–2% for earthquakes, higher for hurricanes). Loss of Principal Investors may lose part of the principal if a catastrophe occurs. Benefits of Cat Bonds Why India Needs Cat Bonds TH
SEBI Proposes Expanded Role for Credit Rating Agencies
Context: The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing to expand the permitted activities of Credit Rating Agencies (CRAs) beyond securities listed or proposed to be listed on stock exchanges. The draft is open for public comments until 30 July 2025. Credit Rating Agencies (CRAs) Credit Rating Agencies (CRAs) are organizations that assess the creditworthiness of borrowers, like companies or governments, and assign ratings to their debt instruments. These ratings reflect the agency’s opinion on the likelihood that the borrower will repay its debts, including principal and interest, on time. Investors use these ratings to gauge the risk associated with investing in those debt instruments. Current Regulatory Gap Key Proposals in the Consultation Paper Current Norms: SEBI’s Key Proposal: Conditions: TH & Mint
