Daily Current Affairs Quiz9 & 10 May, 2025 National Affairs 1. India’s Maternal Mortality Ratio Context: The Maternal Mortality Ratio (MMR) in India declined to 93 per lakh live births in 2019-21 from 97 in 2018-20, and 103 in 2017-2019, according to the latest data released by the Office of the Registrar General and Census Commissioner of India. National MMR Trend (India): State-wise MMR (High Burden States): Age Groups with Highest MMR: Definition and Importance of MMR Global Context (WHO Data, 2023) National Health Mission (NHM) and Maternal Health in India The National Health Mission (NHM) plays a vital role in India’s efforts to reduce maternal mortality and improve maternal health outcomes. Under the comprehensive RMNCAH+N strategy (Reproductive, Maternal, Newborn, Child, Adolescent Health, and Nutrition), the NHM integrates various schemes and initiatives targeting maternal well-being. Key NHM Schemes for Maternal Health 1. Janani Suraksha Yojana (JSY) 2. Pradhan Mantri Matru Vandana Yojana (PMMVY) 3. Janani Shishu Suraksha Karyakaram (JSSK) 4. Surakshit Matritva Aashwasan (SUMAN) 5. Pradhan Mantri Surakshit Matritva Abhiyan (PMSMA) 6. LaQshya Programme Supporting Initiatives and Systems TH & PIB 2. India’s Climate Finance Taxonomy Context: To direct investment towards clean-energy projects and infrastructure better adapted to weather threats from climate change, the Finance Ministry has made public a draft document, ‘Framework of India’s Climate Finance Taxonomy‘. Objective of the Draft Taxonomy Key Features Categories of Climate-Aligned Activities Global Context: TH 3. Cost Framework to Regulate Predatory Pricing in 2025 Objective of the New Notification Definition of Predatory Pricing (as per Competition Act, 2002) Key Cost Definition Introduced Importance for the Digital Economy: 4. South Asia Press Freedom Report 2024–25 Context: The 23rd Annual South Asia Press Freedom Report, titled “Frontline Democracy: Media and Political Churn”, offers a sobering view of the deteriorating state of press freedom across South Asia, with India facing systemic threats to journalistic independence. Key Findings on Press Freedom in India Publisher: Asia Press Freedom GroupCoverage: India, Pakistan, Afghanistan, Sri Lanka, Bangladesh, Nepal, Bhutan, Maldives Key Regional Findings India: Worsening Press Freedom Amid Legal and Digital Suppression 1. Legal & Institutional Harassment 2. Disinformation and IT Cells 3. Digital Media Censorship Emerging Threats: AI and Precarious Labour Conditions 1. AI-Driven Challenges 2. Gig Economy & Job Insecurity Gender Disparities in Media Way Ahead To reverse the growing threats to media freedom and ensure a robust democratic discourse, the following strategic reforms are recommended: Media Law Reforms Independent Regulatory Framework Protection of Journalists’ Rights Strengthen Fact-Checking Infrastructure Promote Digital Pluralism 5. India vs UK Carbon Border Tax Context: India has strongly opposed the United Kingdom’s plan to introduce a Carbon Border Adjustment Mechanism (CBAM) from January 1, 2027, warning of reciprocal action if Indian exports are taxed under this system. What is CBAM? India’s Objections Strategic and Trade Implications for India Banking/Finance 1. IndusInd Bank’s Crisis: RBI and Financial Stability Context: CRISIL Ratings has put IndusInd Bank’s long-term debt instruments on ‘watch with negative implications’, citing the private-sector lender’s review of its microfinance (MFI) business and the resignation of two top executives. RBI and Financial Stability Context:Over the years, the Reserve Bank of India (RBI) has stepped in at critical moments to calm markets and reassure the public about the stability of India’s banking system. The latest instance involves IndusInd Bank, where RBI’s timely intervention helped prevent depositor panic. Recent Example: IndusInd Bank Accounting Error Key Financial Metrics (as of March 9): RBI’s Historical Assurance Actions RBI’s Lender of Last Resort (LOLR) Function Significance of RBI’s Stability Role 2. RBI Removes Investment Limits for FPIs in Corporate Debt Market Context: The Reserve Bank of India (RBI) has withdrawn two major restrictions on foreign portfolio investors (FPIs): What Has Changed? New Regulatory Directions: Previous Restrictions (Now Withdrawn) RBI’s Objective and Market Impact Objective of the Move Broader Implications BS & BL 3. Startup Founders Seek Sebi Relaxation on Esops Amid Dilution Ahead of IPOs Context: Several pre-IPO startups have requested the Securities and Exchange Board of India (Sebi) to allow issuance of employee stock options (Esops) to founders whose equity holdings have diluted substantially due to multiple funding rounds. What Is an Employee Stock Ownership Plan (ESOP)? An Employee Stock Ownership Plan (ESOP) is a qualified retirement benefit plan that gives employees ownership interest in the company via company stock. It is commonly used for succession planning in closely held firms and as a corporate finance tool to align employee incentives with shareholder interests. Key Features of ESOP How Does an ESOP Work? Advantages of ESOPs For Employees: For Employers: 4. RBI Surplus Transfer to Government Context: The Reserve Bank of India (RBI) is expected to transfer a surplus between ₹ 2.2 trillion and ₹ 3.1 trillion to the government for the financial year 2024-25 (FY25), against record ₹ 2.1 trillion in FY24,aBusiness Standard snap poll of six participants said. How the RBI Determines the Allocation of Dividends The Reserve Bank of India (RBI) determines its annual dividend transfer to the Government of India based on the Economic Capital Framework (ECF). This framework balances fiscal support to the government with the need to maintain adequate financial buffers for monetary and financial stability. Key Determinants of Dividend Allocation Economic Capital Framework (ECF) Dividend Calculation Process Sources of RBI’s Income Primary Revenue Streams Interest from Government Securities Open Market Operations (OMOs) Foreign Exchange Operations Liquidity Adjustment Facility (LAF) earnings Interest on loans and advances to banks Recent Trends Expenditure Components RBI’s Key Expenses Operational costs Interest on deposits/borrowings Cost of currency issuance Provisioning for contingencies and revaluation losses Bimal Jalan Committee: Key Recommendations Historical Context 5. Pass-Through Certificates (PTCs) Context: India achieved a financial milestone with the listing of its first mortgage-backed Pass-Through Certificates (PTCs) on the National Stock Exchange (NSE). Structured by RMBS Development Company Ltd. and backed by LIC Housing Finance’s home loans, this ₹1,000 crore issue marks a pivotal step in deepening India’s housing finance and securitization market. What Are Pass-Through Certificates (PTCs)? Definition How They Work Features of Mortgage-Backed PTCs Significance of India’s First Mortgage-Backed PTC Listing
Sa-Dhan and Bank of India Collaborate to Boost Financial Inclusion for Small, Micro, and Women-Led Businesses
Memorandum of Understanding (MoU) Signed Focus on National Financial Inclusion and SDGs Key Areas of Collaboration The MoU outlines the following key areas of collaboration:
SEBI Introduces Regulations for Securitised Debt Instruments (SDIs)
Context: The Securities and Exchange Board of India (SEBI) has introduced a new set of regulations for securitised debt instruments (SDIs), focusing on enhancing transparency, risk management, and investor confidence. The regulations, announced through a gazette notification, mandate key changes in the issuance, transfer, and management of SDIs. What are SDIs? Key Highlights of SEBI’s New Rules on Securitisation Minimum Investment Threshold (Ticket Size) Issue Process and Form Originator Eligibility & Track Record Risk Retention and Holding Period Asset Eligibility & Definitions
SEBI Tightens Disclosure Norms for REITs and InvITs
Overview of SEBI’s New Disclosure Norms Key Changes in Offer Document Disclosures TET
RBI’s Co-lending Framework
Context: The Reserve Bank of India (RBI) has proposed a new co-lending model requiring simultaneous loan disbursal by both banks and non-bank financial companies (NBFCs). The existing model, which allows NBFCs to originate and assign loans to banks, may be phased out. The Finance Industry Development Council (FIDC) is preparing to represent NBFC concerns formally to the RBI. RBI to Expand Co-Lending Framework Beyond NBFCs and PSL The Reserve Bank of India (RBI) is set to roll out a new, more inclusive co-lending framework, expanding the scope beyond existing arrangements between banks and NBFCs and beyond Priority Sector Lending (PSL). Current Co-Lending Framework (Status Quo) Why Change is Needed Related Developments Implications of Expanded Co-Lending Framework The RBI’s Co-lending Framework The RBI’s Co-lending Framework allows two financial institutions, like a bank and a non-banking financial company (NBFC), to jointly fund a loan portfolio in a pre-agreed proportion, with both sharing revenue and risk. This framework aims to improve credit flow to underserved sectors by combining the low-cost funding of banks with the reach of NBFCs and other financial entities. Key Aspects: Benefits of the Co-lending Framework RBI’s Role: TET
RBI Surplus Transfer
Context: The Reserve Bank of India (RBI) is likely to transfer a record ₹3 lakh crore surplus to the central government for FY25. This is 50% higher than FY24’s ₹2.1 lakh crore transfer and well above the budget estimate of ₹2.3 lakh crore. What is RBI Surplus? Key Expenditure Items of RBI Provisions & Legal Basis Economic Capital Framework (ECF) – Key Metrics Why Was the Surplus So High? Historical RBI Surplus Payouts (₹ Cr) Fiscal Year Surplus Transferred FY16 65,876 FY17 30,659 FY18 50,000 FY19 1,75,987 FY20 57,128 FY21 99,122 FY22 30,307 FY23 87,416 FY24 2,10,874 Benefits to the Government TET
Weighted Average Lending Rate (WALR)
Context: The overall spread between the weighted average lending rate (WALR) and weighted average domestic term deposit rate fell to 2.71% in March 2025, a 10-year low, down 5 bps month-on-month (M-o-M). Spread on fresh loans fell sharply by 22 bps to 2.7% during the same period. Weighted Average Lending Rate (WALR) The Weighted Average Lending Rate (WALR) is a key financial metric that reflects the average interest rate at which a bank lends to its borrowers, adjusted for the size of each loan. Key Features of WALR Definition and Purpose Calculation Characteristics Applications Regulatory Relevance Implications The weighted average domestic term deposit rate (WADTDR) The weighted average domestic term deposit rate (WADTDR) is a metric that reflects the average interest rate paid on term deposits by commercial banks, adjusted for the size of the deposits. It essentially provides a weighted average of the interest rates on different deposit maturities and amounts, considering the relative importance of each deposit in the bank’s overall deposit portfolio. BS
RBI Introduces New Framework for Regulation Formulation and Public Consultation
Context: The Reserve Bank of India (RBI) has introduced a new framework aimed at standardizing the process of regulation-making to ensure greater transparency, accountability, and stakeholder participation. The framework will involve publishing draft regulations on the RBI’s website along with a statement of particulars, inviting public comments before finalizing any new regulations. Key Highlights of the Framework Scope of Regulations Draft Publication Requirements Objective To create a consistent, participatory, and evidence-based regulatory process, improving the quality and legitimacy of RBI’s regulatory instruments. BS
Electricity Derivatives
Context: The National Stock Exchange (NSE) has received in-principle approval from the Securities and Exchange Board of India (SEBI) to launch electricity derivatives. The announcement was made during the NSE’s fourth-quarter earnings analyst call. Key Features of Electricity Markets and Derivatives This chapter outlines the unique characteristics of electricity, the structure of electricity markets, and introduces market-specific derivatives, focusing on features that directly affect pricing and trading. Key Properties of Electricity Affecting Markets Electricity Market Microstructure Electricity Derivatives How Derivatives Exchanges Work Trading Electricity vs. Financial Markets Understanding the electricity wholesale market requires recognizing how electricity trading differs from traditional financial asset trading. Key Differences Between Electricity and Financial Market Trading BS
Bank Bonds
Context: Bank bonds are a type of debt security issued by banks and financial institutions to raise funds, manage risk, and offer investment opportunities to individuals and institutions. They offer structured returns and are considered relatively safe financial instruments. What Are Bank Bonds? Typical Features of Bank Bonds Bank Bonds vs. Other Instruments For Consumers Investment Value and Benefits Key Difference: Bank Bonds vs. Stocks Feature Bank Bonds Stocks Ownership No ownership rights Ownership stake in a company Risk Lower, fixed return Higher, variable return Return Interest payments Dividends + potential capital gains Maturity Fixed-term No maturity; held as long as desired Control/Influence No voting rights Shareholders may vote on corporate matters Bank bond
