Daily Current Affairs Quiz14 June, 2025 International Affairs 1. Iran-Israel Conflict Triggers Oil Price 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 National Affairs 1. India’s Gaza Ceasefire Abstention at UNGA Context: India abstained from a United Nations General Assembly (UNGA) vote on June 13, 2025, that called for an immediate ceasefire in Gaza. The resolution passed overwhelmingly, but India chose not to support it — marking its fourth abstention on Gaza-related votes in three years. This move contrasts with India’s vote in favour of a ceasefire resolution just six months earlier, in December 2024. 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 Banking/Finance 1. Cryptocurrency or Virtual Digital Asset (VDA) 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 2. 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). 3. 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 4. 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 5. 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 Agriculture 1. 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