Daily Current Affairs Quiz10 June, 2025 National Affairs 1. India’s First E-Waste Eco Park to be Set Up in Delhi Context: The Delhi Government has announced the development of India’s first electronic waste (e-waste) eco park in Holambi Kalan, North Delhi. This initiative aims to position Delhi as a pioneer in sustainable e-waste management and the circular economy. Processing Capacity & Scope: Key Components of the Eco Park: Significance: TH 2. PM Modi’s Visits to Cyprus and Croatia Context: Prime Minister Narendra Modi is scheduled to visit Cyprus and Croatia en route to and from the G-7 Summit in Canada (June 15–17, 2025). These visits are being seen as an assertion of India’s traditional foreign policy principles with renewed engagement in Europe. Visit to Cyprus: Political and Strategic Significance Visit to Croatia: Cultural and Economic Linkages Geo-Economic Context: Role in IMEC 3. SEZ Rule Amendments to Boost Semiconductor & Electronics Manufacturing (June 2025) Context: The Union government has notified several changes to the regulations for the setting up of special economic zones (SEZs) for the manufacturing of semiconductors or electronic parts. Revisions include reducing minimum plot size for the units and allowing such semiconductor units to also supply to the rest of India, apart from exporting. Key Amendments to SEZ Rules, 2006 Objective of the Amendments New SEZ Approvals: TH 4. India’s Poverty Levels See Sharp Decline Context: India has made significant progress in reducing absolute poverty over the last two decades. However, the absence of updated official poverty estimates continues to hinder accurate measurement and policy targeting. Key Points: Contributing Factors to Poverty Reduction: Challenges and Gaps: Policy Considerations: BS 5. Bhashini & Indian Railways to Revolutionize Multilingual Passenger Services In a major push for linguistic inclusion and AI-driven digital transformation, Digital India Bhashini Division (DIBD) and the Centre for Railway Information Systems (CRIS) signed an MoU to integrate multilingual AI solutions across Indian Railways’ public platforms. Key Highlights of the Partnership:  Technology Integration: Platforms Covered: Source: PIB Banking/Finance 1. Marginal Cost of Funds-Based Lending Rate (MCLR) Context: HDFC Bank, India’s largest private lender, has reduced its Marginal Cost of Funds-Based Lending Rate (MCLR) by 10 basis points (bps) across select tenures, effective June 7, 2025. What is MCLR? MCLR (Marginal Cost of Funds-Based Lending Rate) is the minimum interest rate below which a bank cannot lend (except in special cases approved by the Reserve Bank of India). Introduced by the RBI in 2016, it replaced the older Base Rate system to make loan pricing more transparent and responsive to market changes. Key Features of MCLR What This Means for Borrowers Why the Rate Cut? Who Benefits? Why Did RBI Introduce MCLR? (Source: The Economic Times) 2. RBI Flags Misselling and Microfinance Concerns Context: In a recent address at an HSBC event on financial inclusion, RBI Deputy Governor M. Rajeshwar Rao expressed concerns over widespread misselling by financial institutions and persistent issues in the microfinance sector. His speech was later published on the RBI website. Key Issues Highlighted Misselling of Financial Products High Interest Rates in Microfinance Over indebtedness and Recovery Practices RBI’s Prescription for Responsible Lending Call for Business Model Introspection Regulatory Signal BS 3. RBI Discontinues Daily VRR Auctions Amid Liquidity Surplus Context: The Reserve Bank of India (RBI) has announced it will discontinue daily Variable Rate Repo (VRR) auctions from Wednesday, June 11, 2025, following a review of the improving liquidity conditions in the banking system. Key Highlights: Daily VRR Auctions Discontinued Reason for the Move Shift in RBI’s Monetary Stance Impact on Liquidity TET 4. National Investment and Infrastructure Fund (NIIF) Why in News? The Union Finance Minister recently chaired the 6th Governing Council meeting of NIIF, reviewing its performance, partnerships, and future strategies. Here’s a detailed overview of NIIF and its role in India’s infrastructure growth. What is NIIF? Key Features of NIIF 1. Public-Private Fund Structure 2. SEBI-Registered AIF 3. Professional Management 4. Strong Financial Growth 5. Global & Domestic Partnerships Governing Council of NIIF Functions of NIIF 1. Capital Mobilization 2. Investment Management 3. Strategic Partnerships 4. Policy Alignment Why NIIF Matters? 5. RBI Defends Role in Subvention Scheme Scandal as Supreme Court Probes Builder-Bank Nexus Context: The Supreme Court of India is examining a major financial scandal involving banks, real estate developers, and subvention housing schemes, after hundreds of aggrieved homebuyers alleged harassment and fraud due to misuse of sanctioned home loans. Key Highlights: Current Status: 6. The Digital Rupee (e₹) Context: The Digital Rupee (e₹) is a central bank digital currency (CBDC) issued by the Reserve Bank of India (RBI), functioning as a digital version of cash. Unlike cryptocurrencies, it is a legal tender backed by the RBI. Key Features of e₹: How It Differs from UPI & Cryptocurrencies Current Status (2025) Anonymity & Usage The Digital Rupee aims to modernize payments, reduce cash dependency, and enhance financial inclusion in India’s digital economy. 7. RBI Flags High Interest Rates and Coercive Recovery in Microfinance Sector Context: RBI Deputy Governor M. Rajeshwar Rao, speaking at a Mumbai event on 5 June 2025, raised serious concerns over the deteriorating conditions in India’s microfinance sector. His speech was uploaded to the RBI website on 10 June 2025. Key Highlights: Persistent Sectoral Issues Rising Financial Stress in FY26 Interest Rates and Margins RBI’s Recommendations BS 8. Jana Small Finance Bank Applies to RBI for Universal Bank License Context: Jana Small Finance Bank (Jana SFB) has officially applied to the Reserve Bank of India (RBI) for approval to transition into a universal bank, marking a major step in its growth strategy. Key Highlights: What Is Universal Banking? Universal banking is a system in which banks provide a wide variety of comprehensive financial services, including those tailored to retail, commercial, and investment services. RBI’s Licensing Guidelines Universal Banking Licences in India (2016) The Reserve Bank of India introduced the ‘On Tap’ Licensing Policy in August 2016 for private sector universal banks. This policy allows eligible applicants to seek a banking licence at any time, enhancing dynamism and competition in the Indian banking sector. Eligibility Criteria This move could further strengthen India’s banking sector, promoting competition and inclusion. 9. Finance Ministry Pushes PSBs for Faster Loan Disbursal Context: To enhance credit flow to India’s handloom sector,