Daily Current Affairs Quiz15 May, 2025 International Affairs 1. India–U.S.–Pakistan Relations Background: India’s Official Position Key Concerns for India Geopolitical Implications TH National Affairs 1. Sample Registration System (SRS) Statistical Report 2021 Source:Sample Registration System (SRS) Statistical Report 2021, released by the Registrar General of India Context: The annual crude birth rates (live births per 1,000 people in the population) for Tamil Nadu, Delhi and Kerala are declining at twice the rate of the national average, showed data from the Sample Registration System (SRS) Statistical Report 2021, released by the Registrar General of India last week.   National-Level Trends Key Definitions Progress Report (2014–2021) Global Comparison (UN Reports 2023–24) Government Interventions Behind the Gains SDG 2030 Alignment Fastest Declining Birth Rates (Annual % Decline) State/UT Annual Decline Rate (%) Tamil Nadu 2.35% Delhi 2.23% Kerala 2.05% Telangana 1.67% Karnataka 1.68% Andhra Pradesh 1.26% Maharashtra 1.57% J&K 1.47% Himachal Pradesh 1.29% Odisha 1.34% Gujarat 1.24% Haryana 1.21% States with Slowest Decline in Birth Rates State Annual Decline Rate (%) Rajasthan 0.48% Bihar 0.86% Chhattisgarh 0.98% Jharkhand 0.98% Assam 1.05% Madhya Pradesh 1.05% West Bengal 1.08% Uttar Pradesh 1.09% Civil Registration System (CRS) 2021 Insights Fertility Indicators (SRS 2021) TH 2. Sustainable Transport Mission Added to India’s Climate Agenda Context: The Government of India has decided to add a new “Sustainable Transport” mission under the National Action Plan on Climate Change (NAPCC) — the first such inclusion in over a decade. Scope of the Sustainable Transport Mission Sectoral Emission Landscape Key Challenges & Priorities 1. Lack of International Roadmap for Road Sector 2. Railway Freight Optimization 3 Charging Infrastructure Deficit Power Source Paradox 3. National Action Plan on Climate Change (NAPCC) Eight National Missions under NAPCC Salient Features of NAPCC Greenhouse Gases (GHGs) Banking/Finance 1. Section 7 of the Insolvency and Bankruptcy Code (IBC) Context: The Indian Renewable Energy Development Agency (IREDA), a government-owned financier, has filed an insolvency petition under Section 7 of the Insolvency and Bankruptcy Code (IBC)  against Gensol Engineering over a ₹510 crore loan default. Section 7 of the Insolvency and Bankruptcy Code (IBC) Section 7 of the Insolvency and Bankruptcy Code (IBC) outlines the process for initiating a Corporate Insolvency Resolution Process (CIRP) by a financial creditor. It allows a financial creditor, either individually or jointly with others, to file an application with the Adjudicating Authority (NCLT) when a corporate debtor defaults on a financial debt.  Key Provisions of Section 7 IBC Significance of Section 7 IBC 2. Market Capitalization Context: Investor sentiment is shifting away from small cap and mid cap (SMID) funds towards largecap-oriented schemes, particularly flexicap funds, amid ongoing market volatility and correction in the SMID space. Understanding Market Capitalization SEBI’s Classification of Market Capitalization (2017 Guidelines) Category Market Cap Range Ranking by Market Cap Large-cap ₹20,000 crores and above Top 1 to 100 companies Mid-cap ₹5,000 crores to ₹20,000 crores 101st to 250th companies Small-cap Below ₹5,000 crores 251st company onwards Large-Cap Companies Mid-Cap Companies Small-Cap Companies Comparison: Large-cap vs Mid-cap vs Small-cap Funds Parameter Large-cap Funds Mid-cap Funds Small-cap Funds Risk Profile Low risk, ideal for conservative investors Moderate risk High risk Volatility & Liquidity Low volatility, high liquidity Moderate volatility and liquidity High volatility, low liquidity Returns & Growth ~7% average returns (last 5 years), steady ~10.28% average returns, moderate growth ~14.74% average returns, high growth 3. Small and Medium Real Estate Investment Trust (SM Reit) Context: Securities and Exchange Board of India (Sebi) has issued a public warning to investors about Strata, a commercial real estate investment platform, after it voluntarily surrendered its Small and Medium Real Estate Investment Trust (SM Reit) licence. SEBI’s Guidelines on Small and Medium Real Estate Investment Trusts (SM REITs) The Securities and Exchange Board of India (SEBI) has introduced new regulations to facilitate the creation of Small and Medium Real Estate Investment Trusts (SM REITs), providing greater access to real estate investments for smaller investors. What is an SM REIT? Key Features of SM REITs Significance of SM REITs Infrastructure Investment Trust (InvIT) Key Components of an InvIT 4. Fund Manager Survey (FMS): BofA Securities Context: India is now the most preferred equity market in the Asia-Pacific (APAC) region, according to BofA Securities’ May 2025 Fund Manager Survey (FMS), outperforming Japan, China, and other regional peers. Key Survey Findings Focus Themes in India Market Sentiment and Economic Outlook Survey Methodology BS 5. SEBI Eases Internal Audit Team Norms for Credit Rating Agencies Context: On May 15, 2025, the Securities and Exchange Board of India (SEBI) relaxed eligibility norms for the composition of internal audit teams of Credit Rating Agencies (CRAs) to expand the pool of qualified professionals. Key Changes Introduced Objective of the Change Impact BS 6. Systematic Investment Plan (SIP) Context: The number of Systematic Investment Plan (SIP) cancellations in India more than tripled to 162.3 lakh in April 2025 compared to March. Contrary to perceptions of investor panic amid market volatility, this spike was primarily due to a SEBI circular enforcing stricter rules on failed SIP payments. Systematic Investment Plan (SIP) A Systematic Investment Plan (SIP) is a disciplined method of investing in mutual funds, allowing investors to invest a fixed amount at regular intervals instead of a lump sum. SIPs help investors build wealth gradually through consistent and automated investments. What is SIP in Mutual Funds? How Does SIP Work? Example: SIP vs Lump Sum Suppose you want to invest ₹1 lakh in a mutual fund: Types of Systematic Investment Plans Key Benefits of SIP SEBI Circular on SIP Invalidations BS 7. RBI Proposal to Add Nominee Email and Phone Numbers in Bank Nomination Forms TET 8. Co-Lending Rules for NBFCs and Banks Context: FICCI Urges RBI to Retain Existing Co-Lending Rules for NBFCs and Banks: NBFCs originate loans and then sell up to 80% of the loan to partner banks via direct assignment. This model provides NBFCs operational flexibility and benefits from a waiver on minimum holding period for the loans sold to banks. As per ICRA (April 2025), co-lending

Daily Current Affairs Quiz14 May, 2025 International Affairs 1. IMF Disburses $1 Billion to Pakistan Under Extended Fund Facility (EFF) What is EFF? The Extended Fund Facility is an IMF lending program designed to assist countries facing long-term balance of payments issues stemming from structural economic weaknesses. Key Features of EFF Eligibility Criteria EFF Loan Approval Process Context in Pakistan’s Case (May 2025): National Affairs 1. India’s Proposed Repairability Index Context: The Department of Consumer Affairs (DoCA) has received a committee report recommending a Repairability Index (RI) for mobile phones and electronic appliances in India. This framework seeks to promote transparency, sustainability, and consumer rights by scoring products on how easily they can be repaired. What Is the Repairability Index (RI)? TH 2. EPIC (Elector Photo Identity Card) Numbers Context: The Election Commission of India (ECI) has addressed and resolved the issue of duplicate EPIC (Elector Photo Identity Card) numbers, a problem flagged by political leaders including West Bengal CM Mamata Banerjee. All affected voters have now been issued fresh and unique EPICs, reinforcing the credibility and integrity of the voter identification process. What is the EPIC Number? Nature of the Duplication Problem Resolution Process Key Implications 3. DigiYatra Context DigiYatra is India’s national digital traveller identity platform, offering biometric-based, paperless boarding at airports. It is the world’s first federated, voluntary, and privacy-preserving system for digital passenger identity. As of May 2025, it is operational at 13 Indian airports, with plans to cover 50+ airports by 2026. Digi Yatra: Seamless Contactless Travel Using Facial Recognition Technology (FRT) Overview: Key Features of DigiYatra Institutional Framework Implementation Timeline Objectives of Digi Yatra BS 4. PM SHRI (Pradhan Mantri Schools for Rising India) Scheme Context: The Kerala government on Tuesday announced it will pursue a legal course, along with protests on ground, to recover over Rs 1,500 crore allegedly withheld by the Centre. The funds, linked to centrally sponsored schemes, have reportedly been held back after Kerala refused to sign the PM SHRI scheme memorandum. PM-SHRI Scheme: Transforming Schools into Models of NEP 2020 Implementation Overview Objective Funding Pattern Duration Key Features of PM SHRI Schools Eligible Schools Selection Process (Challenge Mode) Monitoring Mechanism 5. India Identifies Priority Corridors for Zero-Emission Trucking (ZET) What is Zero-Emission Trucking (ZET)? Zero-Emission Trucking refers to freight transport using battery electric or hydrogen fuel cell trucks that produce no tailpipe emissions, unlike traditional diesel-powered vehicles. Key Features of ZET Significance of ZET in India Banking/Finance 1. Fitch Upgrades Shriram Finance to ‘BB+’ Context: Fitch Ratings upgraded Shriram Finance Ltd.’s (SFL) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) from ‘BB’ to ‘BB+’, with a ‘Stable’ outlook, reflecting the company’s consistent improvements across key operational and financial parameters. Key Drivers of the Upgrade Ratings Details TH 2. Challenges Faced by Indian MSMEs: SIDBI Report Context: A new report by the Small Industries Development Bank of India (SIDBI), titled “Understanding the Indian MSME Sector: Progress and Challenges”, reveals that access to timely credit and shortage of skilled manpower are among the most pressing challenges faced by MSMEs. The study is based on a survey of 2,000 MSMEs across 19 sectors. Key Highlights: Credit Access: A Persistent Bottleneck Digital Finance Adoption Workforce Challenges Policy Recommendations TH 3. Treasury Bills (T-Bills): A Key Short-Term Government Instrument Context: India has extended its financial support to the Maldives by rolling over a $50 million Treasury Bill, continuing a practice that began in 2019. The move comes amid the island nation’s struggle with high public debt, a widening fiscal deficit, and billion-dollar debt servicing commitments in 2025 and 2026. Currency Swap Support Treasury Bills (T-Bills): A Key Short-Term Government Instrument What are Treasury Bills? Purpose of Issuance: Key Features: How Investors Benefit: Monetary Policy Tool – RBI’s Use of T-Bills: Types of Treasury Bills in India (Based on Tenure): Who Can Invest? Advantages of Treasury Bills (T-Bills) Limitations of Treasury Bills: Taxation of Treasury Bills: 4. Payment Aggregator Context: Prosus-backed fintech firm PayU Payments Pvt. Ltd. has received final authorisation from the Reserve Bank of India (RBI) to function as an online payment aggregator, marking a major regulatory milestone after over a year since securing in-principle approval. Key Highlights What is a Payment Aggregator? A Payment Aggregator (PA) is a third-party service provider that enables merchants to accept digital payments through multiple methods such as UPI, credit/debit cards, e-wallets, bank transfers, and EMIs. They are licensed by the Reserve Bank of India (RBI) and manage the entire payment process on behalf of merchants via a nodal account. How Payment Aggregators Work: A Step-by-Step Process Types of Payment Aggregators in India Key Features & Benefits of Payment Aggregators Payment Aggregator vs Payment Gateway: Key Differences Parameter Payment Aggregator (PA) Payment Gateway (PG) Function Handles funds and settlements Facilitates data encryption and transaction routing License Requirement Must be RBI-authorised (non-bank entities) No RBI license needed MID Requirement PA provides its own Merchant ID (MID) Requires merchant to have its own MID Examples Razorpay, Mobikwik, Airpay Razorpay, CC Avenue, PayU What is a Payment Aggregator License and How to Get One? A Payment Aggregator License is issued by the Reserve Bank of India (RBI) to entities that facilitate online payments on behalf of businesses. These entities enable merchants to accept digital payments through various methods like cards, UPI, and net banking, without the need for a separate payment infrastructure. Eligibility Criteria: To obtain this license, a firm must fulfill the following requirements: Application Requirements: The application submitted to RBI must include: Compliance Obligations: Payment aggregators are required to: This license ensures that only qualified and responsible entities are permitted to handle digital payments in India, fostering secure and efficient payment ecosystems. BS 5. Expression of Interest (EOI) Context: A consortium of banks led by Union Bank of India has received 17–18 expressions of interest (EoIs) for the sale of ₹728.58 crore in stressed loans of Sahara Hospitality Ltd, which operates the Sahara Star Hotel in Mumbai. What is an Expression of Interest (EOI)? An Expression of