Daily Current Affairs Quiz2 July, 2025 National Affairs 1. RailOne App Launched by Railways Context: On July 2, 2025, Railway Minister Ashwini Vaishnaw launched RailOne, a new all-in-one mobile application developed by CRIS (Centre for Railway Information Systems), the IT arm of Indian Railways. Key Features of the RailOne App RailOne is a comprehensive, all-in-one platform integrating a variety of services in a single app: Technologies TH 2. Employment-Linked Incentive (ELI) Scheme Context: The Union Cabinet has approved a major employment incentive scheme titled Employment-Linked Incentive (ELI) with a total outlay of ₹99,446 crore, aimed at boosting job creation, especially in the manufacturing sector. Key Features TH Banking/Finance 1. RBI’s New Project Finance Norms Context: The Reserve Bank of India (RBI), on June 19, 2025, released its final guidelines on project finance provisioning, increasing general provisions for loans extended during the construction phase. The new norms will take effect from October 1, 2025, and will apply only to new projects. What is RBI’s New Project Finance Norms? RBI’s new project finance norms, effective October 1, 2025, aim to streamline lending to infrastructure and other projects by banks and NBFCs, promoting stability and growth. The revised framework introduces a principle-based approach for resolving stress in project finance, allows flexibility in extending the date of commencement of commercial operations (DCCO), and reduces provisioning requirements during the construction phase.  Key Norms Concerns Raised TET 2. Saraswat Bank Seeks RBI Nod to Merge New India Cooperative Bank Context: Saraswat Cooperative Bank has formally approached the Reserve Bank of India (RBI) seeking approval to merge the troubled New India Cooperative Bank (NICB) with itself, provided both institutions receive shareholder approval. The move aims to rescue NICB, which is facing financial distress and regulatory restrictions. Background on NICB’s Crisis Saraswat Bank’s Proposal BS 3. RBI’s Role in Bank Mergers and Amalgamations Context: The Reserve Bank of India (RBI) plays a central role in regulating and approving mergers, ensuring systemic stability, depositor protection, and adherence to financial norms under the Banking Regulation Act, 1949, particularly Section 44A. Key Highlights: 4. NBFC Credit Growth Slows Despite RBI Support Context: Bank lending to non-banking financial companies (NBFCs) has continued to decline, despite the RBI’s rollback of stricter risk-weight norms in April 2025. The sector is facing cautious bank sentiment, growing reliance on bond markets, and delinquencies in microfinance and unsecured loan segments. Sectoral Challenges Stress in Key Loan Segments Slow Transmission of Policy Rates Funding Pressure on Lower-Rated NBFCs Mint 5. Financial Conditions Index (FCI) Why in News? The Reserve Bank of India’s (RBI) June 2025 Financial Stability Report presents a positive outlook on India’s financial system, noting that financial conditions have eased, aided by accommodative monetary policy. However, assessing financial conditions remains complex due to the interplay of multiple variables. What is the Financial Conditions Index (FCI)? The RBI’s June bulletin proposed an experimental Financial Conditions Index (FCI) to better track the overall state of financial markets at high frequency. While not yet an official tool, it reflects RBI’s interest in building a composite gauge for financial market conditions. Structure of the Proposed FCI The proposed FCI includes 20 indicators from five key financial market segments: These segments are chosen for their direct link to monetary policy transmission and systemic stability. Why FCI Matters Mint 6. AI in Indian Banking Context: The banking experience in India is undergoing a rapid and intelligent transformation. From account upgrades to auto loan closures, what once took days is now being completed in minutes — thanks to Artificial Intelligence (AI). Key Areas of AI Adoption in Banking AI Infrastructure and Regulatory Oversight Key Benefits & Current Limitations Benefits Challenges BS 7. Slice Launches India’s First UPI-Based Credit Card and UPI-Focused Bank Branch Context: Fintech startup Slice has launched a new UPI-powered credit card, called the Slice Super Card, along with India’s first physical UPI-centric bank branch and ATM in Bengaluru. The initiative aims to revolutionize how Indians access and use credit through digital platforms. Key Features of the Slice Super Card India’s First UPI-Focused Bank Branch & ATM This marks a significant shift in traditional banking infrastructure toward cashless and frictionless digital banking, focused on ease and inclusion. Objective: Financial Inclusion Through UPI Credit BS 8. AU Small Finance Bank Partners with LIC to Boost Life Insurance Access Context: On July 2, 2025, AU Small Finance Bank (AU SFB) entered into a strategic partnership with the Life Insurance Corporation of India (LIC) to expand life insurance distribution across rural and semi-urban India. Key Highlights About AU Small Finance Bank (AU SFB) BS 9. SEBI Proposes New IT Capacity Guidelines for Commodity Exchanges and Clearing Corporations Context: The Securities and Exchange Board of India (SEBI) has released a draft proposal to revise the IT capacity planning norms for commodity exchanges and clearing corporations, aiming for a more efficient and realistic approach in managing technological infrastructure. Key Highlights of the Proposal IT System Capacity Norms Planning and Monitoring Mechanism Utilisation Threshold Scope of the Framework Agriculture 1. Government to Develop ‘Co-operative Stack’ Through PACS for Rural Scheme Delivery Context: In a move akin to the Agri Stack initiative, the Government of India is developing a “Co-operative Stack” to streamline rural scheme delivery via Primary Agricultural Credit Societies (PACS). This is part of a broader effort to digitise and strengthen the rural cooperative ecosystem. What is the Co-operative Stack? Key Developments Use of Emerging Technologies Institutional Shift What is Primary Agricultural Credit Societies (PACS)? BL Facts To Remember 1. SBI celebrates 70th foundation day, felicitates students State Bank of India celebrated its 70th foundation day on Tuesday and felicitated 18 children of its staff for their exemplary academic performance and selection into prestigious institutions and organisations. 2. INS Tamal, the last of foreign-built Navy ships, commissioned The Indian Navy on Tuesday commissioned INS Tamal (F71), a multi-role stealth, guided missile frigate, at the Yantar Shipyard in Kaliningrad, Russia. 3. INS Udaygiri Delivered: Boost to India’s Naval Power & Indigenous Shipbuilding Project 17A is a successor to the earlier Project 17 (Shivalik-class)