Context: In a significant move to tighten compliance, the Income Tax Department has issued notices to thousands of taxpayers who failed to disclose income from cryptocurrency or Virtual Digital Asset (VDA) transactions. What is Virtual Digital Asset (VDA)? According to the Finance Act 2022 (India), a Virtual Digital Asset (VDA) is defined as: Cryptocurrency (or virtual currency) Crypto assets are assets issued or transferred using distributed ledger technology (DLT) or blockchain technology. They are a wide range of digital instruments that can represent value or ownership. Crypto assets include cryptocurrencies. Cryptocurrency (or virtual currency) is likely the most well-known type of crypto asset. Cryptocurrency is a digital currency or medium of exchange. It can be used To exchange for products or services, like fiat currency (such as Canadian dollars or US dollars) Background
External Benchmark Lending Rate (EBLR)
Context: The country’s largest lender, State Bank of India (SBI), reduced its External Benchmark Lending Rate (EBLR) and home loan rate by 50 basis points, keeping with Reserve Bank of Indias half per cent cut in policy repo rate. The revised EBLR would be 8.15 per cent as against the old rate of 8.65 per cent. External Benchmark Lending Rate (EBLR) The External Benchmark Lending Rate (EBLR) represents a paradigm shift in India’s banking landscape, aiming to ensure better transmission of monetary policy to end borrowers. Initiated by the Reserve Bank of India (RBI), EBLR replaced internal benchmarks like IBLR and MCLR, which were found ineffective in ensuring fair and timely rate transmission. Background: Evolution from IBLR and MCLR Before EBLR, Indian banks relied on two major benchmarks: Despite RBI’s policy rate cuts, banks often failed to pass on the benefits to borrowers, citing factors like internal spreads, operational costs, and non-performing assets. This inefficiency led RBI to constitute an Internal Study Group (ISG), whose recommendations culminated in the adoption of EBLR from October 1, 2019. What is EBLR? EBLR stands for External Benchmark Lending Rate, a rate linked to an external reference such as: Key Regulatory Instructions by RBI Why the Shift to EBLR? The transition to EBLR was driven by key shortcomings of IBLR and MCLR: Impact of a Reduction in External Benchmark Lending Rate (EBLR) on Borrowers When the External Benchmark Lending Rate (EBLR) is reduced, borrowers with EBLR-linked loans—such as home loans, personal loans, and loans to small businesses—generally benefit from lower interest rates. This mechanism ensures faster and more transparent monetary transmission compared to older internal benchmark systems like MCLR (Marginal Cost of Funds Based Lending Rate).
RBI Issues New Guidelines to Ease Reactivation of Dormant Bank Accounts and Access to Unclaimed Deposits
Context: The Reserve Bank of India (RBI) has issued revised guidelines aimed at simplifying the process for customers and heirs to reactivate inoperative bank accounts and claim unclaimed deposits. The move is designed to improve access to forgotten funds and reduce bureaucratic hurdles, particularly for senior citizens and rural customers. What Are Inoperative Accounts and Unclaimed Deposits? Challenges Faced Earlier Key Changes Under the New RBI Guidelines Expected Impact BS
Scapia Partners with Federal Bank to Launch Dual-Network RuPay Credit Card
Context: Scapia, a Bengaluru-based travel fintech startup, has partnered with Federal Bank to launch the Scapia Federal RuPay Credit Card, featuring a dual-network architecture (VISA + RuPay). The card is designed for seamless integration of credit and UPI payments, catering especially to frequent travelers and digital-savvy users. Key Features of the Scapia Federal RuPay Credit Card About Scapia
RBI Permits STRIPS Trading in State Government Bonds to Deepen Market Liquidity
Context: The Reserve Bank of India (RBI) has expanded its STRIPS (Separate Trading of Registered Interest and Principal of Securities) framework to include State Government Securities (SGSs), aligning it with the existing facility for Central Government Securities (G-Secs). The move aims to boost liquidity, price discovery, and retail investor participation in the state bond market. What is STRIPS? STRIPS allows the principal and interest components of fixed-coupon securities to be traded separately as individual zero-coupon instruments. This promotes flexibility in trading and widens the investor base. Key Highlights of the STRIPS Facility for State Bonds
NABARD Gets Government Nod to Raise ₹19,500 Crore via Deep-Discount Bonds
Context: The National Bank for Agriculture and Rural Development (NABARD) has received central government approval to raise ₹19,500 crore (approximately $2.3 billion) through deep-discount zero-coupon bonds, the largest such approval among state-run entities this fiscal year. The bond issuance will remain open for subscription until March 31, 2027. What Is a Zero-Coupon Bond? A Zero-Coupon Bond (ZCB) is a type of debt security that does not pay periodic interest (coupons). Instead, it is sold at a deep discount and redeemed at full face value (par value) upon maturity. The investor’s return is the difference between the purchase price and maturity value. Also known as: Accrual Bond Key Features of Zero-Coupon Bonds: Who Issues ZCBs? How Zero-Coupon Bonds Work: Strategic Implications for NABARD BS
National Conference on Agri Stack
Context: The Ministry of Agriculture & Farmers’ Welfare (MoA&FW) organized the National Conference on Agri Stack: Turning Data into Delivery on June 14, 2025, at Sushma Swaraj Bhawan, New Delhi. The event marked a significant milestone in advancing India’s Digital Agriculture Mission (DAM), bringing together senior officials from the Centre and States, experts, and stakeholders to deliberate on progress, challenges, and the digital future of Indian agriculture. Agri Stack Framework and Integrations Major Announcements and Collaborations Key Technological Innovations State-Level Best Practices and Feedback Technical Discussions and Challenges Identified PIB
United Nations General Assembly (UNGA)
The United Nations General Assembly (UNGA) is one of the six principal organs of the United Nations (UN), acting as its main deliberative, policymaking, and representative body. The Assembly is currently in its 79th session, with its authority defined in Chapter IV of the UN Charter. Composition and Voting Rights Key Functions and Responsibilities
Iran-Israel Conflict Triggers Oil Price Surge
Context: The latest escalation in tensions between Israel and Iran has sparked fears of oil supply disruptions and rising inflation in India. Though India does not import significant oil volumes directly from Iran, analysts warn of ripple effects across global markets. Key Economic Risks for India Crude Oil Import Cost Surge Strategic Supply Route at Risk Implications for Indian Exports Route Disruptions
Daily Current Affairs (DCA) 13 June, 2025
Daily Current Affairs Quiz13 June, 2025 National Affairs 1. World Economic Forum’s Global Gender Gap Report 2025 Context: India ranked 131 out of 148 countries in the World Economic Forum’s Global Gender Gap Report 2025. India’s parity score stood at 64.1%, a marginal improvement of 0.3 points over last year, yet it slipped two ranks from 129 in 2024. The report emphasizes persistent structural gender gaps in India despite progress in education and health indicators. South Asia Rankings 2025 Global Context India’s Performance by Subindex 2. Finance Ministry Guidelines Central and Centrally Sponsored Schemes (CSS) Context: Finance Ministry’s New Guidelines on Continuation and Funding of Government Schemes to enhance outcome-based budgeting and ensure fiscal discipline across all Central and Centrally Sponsored Schemes (CSS) through mandatory evaluations, sunset clauses, and fund ceilings during the 16th Finance Commission cycle (FY26–FY31). Conditional Continuation of Schemes Special Provision for MGNREGS and Demand-Driven Schemes 3. RUDRASTRA Vertical Take-Off and Landing (VTOL) Drone Context: The Indian Army has successfully conducted trials of indigenous Vertical Take-Off and Landing (VTOL) drones capable of striking enemy artillery positions across the border, marking a major leap in India’s drone warfare capabilities. RUDRASTRA UAV by Solar Aerospace and Defence Ltd (SDAL) Features and Capabilities TET 4. Swadeshi Jagran Manch Launches ‘Swadeshi Suraksha evam Swavlamban Abhiyan’ Context: Following revelations under Operation Sindoor, which reportedly exposed threats posed by China and Türkiye to India’s sovereignty and trade interests, the Swadeshi Jagran Manch (SJM) has intensified its economic nationalism campaign. Launch of Nationwide Campaign Swadeshi Movement (1905) Key Objectives and Aspects 5. World Bank’s State and Trends of Carbon Pricing 2025 Context: The World Bank’s State and Trends of Carbon Pricing 2025 report comes at a pivotal moment when carbon pricing mechanisms cover nearly 28% of global greenhouse gas (GHG) emissions, generating over $100 billion in public revenues. What is Carbon Pricing? Carbon pricing is a market-based tool that assigns a cost to emitting greenhouse gases (GHGs), incentivizing industries and individuals to reduce emissions and internalizing the environmental and health costs of climate change. Major Carbon Pricing Mechanisms Why Carbon Pricing Matters Key Trends in 2025 Sectoral Trends Challenges in Carbon Pricing Policy Recommendations Banking/Finance 1. RBI Allows Separate Trading of Principal and Interest in State Bonds Context: In a significant step towards deepening the bond market, the Reserve Bank of India (RBI) has permitted the separate trading of principal and interest components of State Government Loans (SGLs). This move aligns with similar facilities already available for select Government of India (GoI) securities. Objective Scope of the Facility What are Fixed-Coupon Bonds? Fixed-coupon bonds are a type of bond where the interest rate, or coupon, remains constant throughout the bond’s life. This means investors know exactly what interest payments they will receive at regular intervals. Unlike floating-rate bonds where the interest rate can change, fixed-coupon bonds offer a predictable income stream. 2. RBI Issues Fresh Guidelines on KYC Updation for Low-Risk Customers Context: To address widespread pendency in periodic KYC updation, especially for Direct Benefit Transfer (DBT) and PMJDY accounts, the Reserve Bank of India (RBI) has issued revised norms for regulated entities (REs), ensuring continued access to banking services while setting a firm timeline for compliance. What is Direct Benefit Transfer (DBT) Direct Benefit Transfer (DBT) is a system where government subsidies and benefits are directly transferred into the bank accounts of eligible beneficiaries. This eliminates intermediaries, ensuring benefits reach the intended recipients efficiently and effectively. DBT aims to reduce fraud, improve transparency, and enhance the accuracy of benefit targeting, ultimately improving the efficiency of government welfare programs. What is PMJDY? Launched on 28th August 2014, the Pradhan Mantri Jan-Dhan Yojana (PMJDY) by the Ministry of Finance is one of the globe’s most ambitious financial inclusion schemes. The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a financial inclusion scheme launched by the Government of India that allows anyone without a bank account to open a Basic Savings Bank Deposit (BSBD) account at a bank branch or from a Business Correspondent (Bank Mitra) facility. 3. SEBI-NPCI Launch @valid UPI Context: To combat rising cases of fraudulent entities collecting investor funds, SEBI, in collaboration with the National Payments Corporation of India (NPCI), is launching a verified UPI handle system called @valid for SEBI-registered intermediaries. What Is the @valid UPI Handle? Applicability (Who Can Register for @valid) 10 categories of SEBI-registered investor-facing intermediaries, including: Role of NPCI and Banks What Changes for Investors? Fraud Prevention Measures 4. Government Bonds in India Context: The Reserve Bank of India (RBI) successfully conducted its second government bond buyback auction of FY26, infusing substantial liquidity while managing public debt maturities. Implications and Market Reaction What Are Government Bonds? Key Features Access to Investors Types of Government Bonds in India Fixed-Rate Bonds Floating Rate Bonds (FRBs) Sovereign Gold Bonds (SGBs) Inflation-Indexed Bonds (IIBs) 7.75% GOI Savings Bond Bonds with Call or Put Options Zero-Coupon Bonds 5. RBI Plans Curbs on Foreign Currency Deposits Under Liberalised Remittance Scheme (LRS) Context: The Reserve Bank of India (RBI) is planning to amend the Liberalised Remittance Scheme (LRS) to prevent resident Indians from parking funds in overseas time deposits or other interest-bearing foreign currency accounts, two government sources revealed. Objective Behind the Move What Will Change? What is the Liberalised Remittance Scheme (LRS)? The Liberalised Remittance Scheme (LRS) was introduced by the RBI in 2004 to simplify foreign remittances for Indian residents. Under this scheme, individuals can send up to USD 250,000 per financial year (April–March) outside India for permissible transactions without requiring prior approval from the RBI. This means that Indian residents can freely remit funds for purposes like foreign travel, overseas education, investments, gifts, donations, medical treatment, and more—as long as they comply with RBI guidelines. 6. Groww Nifty India Internet ETF Context: Groww Mutual Fund has introduced the Groww Nifty India Internet ETF, India’s first exchange-traded fund (ETF) designed to track the Nifty India Internet Index (TRI). The fund aims to offer investors exposure to India’s fast-growing internet-based companies. What Is the Groww Nifty India Internet ETF? Key Features Government Support 7. Urban Cooperative Bank in India Context: In a historic move, Vishweshwar Sahakari Bank, a leading Urban
