Daily Current Affairs Quiz7 May, 2025 International Affairs 1. India-UK Sign Historic Free Trade Agreement (FTA) Context: Prime Ministers Narendra Modi and Keir Starmer jointly announced the successful conclusion of a landmark India-UK Free Trade Agreement (FTA). The deal includes a Double Contribution Convention, aimed at boosting bilateral investment and economic cooperation. Key Trade Benefits for Both Nations Landmark Social Security Pact (Double Contribution Convention) Key Beneficiary Sectors Projected Economic Impact TH National Affairs 1. Operation Sindoor Context: The Indian government confirmed that ‘Operation Sindoor’ was carried out in response to the terrorist attack in Pahalgam, J&K, where 26 civilians were killed. The operation, aimed to hold accountable those responsible for the attack. Operation Highlights TOI 2. India’s HDI Ranking 2025 Context: India ranks 130th out of 193 countries and territories in the 2025 Human Development Index (HDI) released by the United Nations Development Programme (UNDP) Long-Term Gains and Recovery Criteria The Human Development Index (HDI) uses three main criteria to assess a country’s progress in human development: life expectancy, education, and standard of living. These criteria are then quantified into a single index value between 0 and 1, with higher values indicating greater development.  Elaboration: Challenges and Inequality Concerns Regional Comparison: India vs. Neighbours Country HDI Rank (2025) HDI Value China 75 Not specified Sri Lanka 78 Not specified Bhutan 127 Not specified India 130 0.685 Bangladesh 130 (tied) Not specified Nepal 145 Not specified Myanmar 149 Not specified Pakistan 168 Not specified Global HDI Leaders (2023) Rank Country HDI Value 1 Iceland 0.972 2 Norway 0.970 2 Switzerland 0.970 4 Denmark 0.962 5 Germany 0.959 5 Sweden 0.959 7 Australia 0.958 8 Hong Kong (China SAR) 0.955 8 Netherlands 0.955 17 United States 0.938 3. Satluj Yamuna Link (SYL) Canal Dispute Context: The Supreme Court criticized Punjab’s decision to denotify land acquired for the Sutlej-Yamuna Link (SYL) canal project, calling it an act of “high-handedness”. The project stems from the 1981 water-sharing agreement among Punjab, Haryana, and Rajasthan, aiming to reallocate Ravi-Beas river waters in the national interest. Satluj Yamuna Link (SYL) Canal Dispute: Historical Overview and Current Status Overview of the SYL Canal Project Historical Context Legal and Tribunal Proceedings Supreme Court Clarification and Warning TH 4. India Tightens Satellite Internet Rules Context: Starlink, owned by Elon Musk’s SpaceX, is still awaiting operational clearances in India. These include a unified licence (UL) and a GMPCS (Global Mobile Personal Communications by Satellite) authorisation, both necessary for providing satellite-based internet services. New DoT Amendments Key New Requirements for Satellite Internet Providers Implications 5. India to Launch ‘Sustainable Transport Mission’ Under National Action Plan for Climate Change (NAPCC) Context: The Government of India will soon introduce a new mission for “sustainable transport” under the National Action Plan for Climate Change (NAPCC). This marks the first new mission addition in over a decade and aims to tackle emissions from one of India’s most polluting sectors. Key Focus Area Objective Scope and Structure Current Status and Planning TH & BS 6. ISRO Targets Early 2027 for Crewed Gaganyaan Launch Why in News? Vyommitra and Uncrewed Mission Axiom-4 Axiom Mission 4 (Ax‑4): Launch Details: Spacecraft Information: India & Axiom-4 Strategic Importance TH 7. Sacred Buddhist Relics from Piprahwa Context: The Indian Ministry of Culture has issued a legal notice to Sotheby’s Hong Kong demanding the immediate halt of the planned auction of sacred Buddhist relics scheduled. Ivy Wong, Associate General Counsel at Sotheby’s, responded stating that the matter is receiving full attention from the auction house. Piprahwa Piprahwa is a village near Siddharthnagar city in Siddharthnagar district of the Indian state of Uttar Pradesh. Kalanamak rice, a scented and spicy variety of rice is grown in this area. It lies in the heart of the historical Buddha’s homeland and is 9 miles from the world heritage site of Lumbini that is believed to be the place of Gautama Buddha’s birth. Historical and Spiritual Significance Legal and Cultural Claims TOI 8. Russian-Made SA-24 Igla-S Air Defense Systems Overview of SA-24 Igla-S Strategic Deployment in Northern India Strengthening India-Russia Defense Ties 9. India’s First AI-Based Data Centre Park to Rise in Nava Raipur, Chhattisgarh Project Overview Infrastructure and Investment Technological and Sectoral Impact Digital Inclusion and Social Impact Broader Vision and Complementary Initiatives The Indian Express Banking/Finance 1. RBI May Extend Call Money Market Hours to 7 PM Context: The Reserve Bank of India (RBI) proposes to extend call money market trading hours from 5 PM to 7 PM. The goal is to enhance interbank liquidity to meet the demands of 24×7 real-time payment systems. What is the Call Money Market? Purpose and Participants Call Rate Relationship with Other Money Market Instruments Importance in Financial Markets Problem Statement: Liquidity Mismatch Broader Implications BS 3. India’s Digital Public Infrastructure Digital Foundations: Aadhaar and UPI PMWANI (Public WiFi Access) eRUPI: Targeted Digital Vouchers Ayushman Bharat Digital Mission (ABDM) Key Issues Behind Delays BS 4. RBI’s OMO Bond Purchase Draws Strong Demand Context: Key Highlights What Are OMOs? How OMOs Work? Why Are OMOs Important? Overall, OMOs are crucial for the RBI to manage the economy’s liquidity effectively, ensuring stability in the financial system and helping achieve broader economic goals. BS 5. Fino Payments Bank Prepares to Transition into a Small Finance Bank (SFB) Context: Fino Payments Bank is actively preparing to upgrade to a Small Finance Bank (SFB), having already applied for the licence with the Reserve Bank of India (RBI) in November 2024. Small Finance Banks (SFBs) in India: Role, Features, and Impact on Financial Inclusion What Are Small Finance Banks? Background and Evolution Objectives of SFBs Key Features Operations and Offerings BS 6. Small Finance Banks vs Payments Banks Both Small Finance Banks and Payments Banks are licensed and regulated by the Reserve Bank of India (RBI). They operate under specific RBI guidelines and are monitored for compliance with financial regulations. Purpose Feature/Aspect Small Finance Banks (SFBs) Payments Banks (PBs) Definition Niche banks that serve underserved, unbanked populations with full banking services. A new banking model offering limited banking services without credit risk. Objective Provide credit and deposit services to small

Daily Current Affairs Quiz6 May, 2025 National Affairs 1. Escalating Geopolitical Tensions Pose Risks for Pakistan’s Economy, Moody’s Analysis Context: Moody’s Ratings warns that escalating tensions between India and Pakistan will severely impact Pakistan’s economy and hinder its access to external financing. In contrast, India’s economic outlook remains relatively stable, despite the geopolitical risks. Impact on Pakistan’s Economic Outlook Economic Struggles and Financial Vulnerability Geopolitical Risks for Pakistan India’s Economic Outlook Amid Geopolitical Risks Limited Impact from Tensions Defense and Fiscal Strength Geopolitical Developments Post-Attacks Growth Projections and Future Outlook India’s Economic Growth Pakistan’s Fiscal Struggles BS 2. Indigenous Rights and Conservation Exclusionary Conservation: The Global and Indian Context IPLCs: Biodiversity Custodians International Legal Frameworks: CBD and KMGBF India’s Legal and Constitutional Landscape FRA: A Legal Tool for Inclusive Conservation India’s 2025 Biodiversity Strategy Moving Beyond Protected Areas: OECMs TH 3. Finance Minister to Attend ADB Annual Meeting in Milan Context: Union Finance Minister Nirmala Sitharaman is leading the Indian delegation to the 58th Annual Meeting of the ADB Board of Governors in Milan, Italy. About ADB (Asian Development Bank): About Ministry of Finance: Banking/Finance 1. What is Digital Rupee (e₹)? Key Features of Digital Rupee e₹ Wallet How to Use Participating Banks (Retail CBDC) Some of the major banks include: Difference Between e₹ and UPI Feature e₹ UPI Nature Digital form of ₹ (currency) Payment interface Settlement Direct between wallets Routed through bank accounts Store of Value Yes No Advanced Features Wholesale CBDC (e₹-W) Participants in e₹-W The Digital Rupee (e₹) represents a significant step in India’s financial digitalization, aimed at enhancing payment efficiency, financial inclusion, and monetary innovation. With pilots in place for both retail and wholesale use, RBI is testing its scalability, security, and usability across diverse segments. 2. SC Orders Liquidation of Bhushan Power & Steel Context: The Supreme Court of India declared the 2021 resolution plan for Bhushan Power and Steel Ltd (BPSL) illegal. The court cited serious lapses by Resolution Professional (RP) Mahender Kumar Khandelwal, including failure to: Legal Basis for Liquidation Material Lapses Identified Implications for IBC Framework Background BS 3. RBI Winds Down Short Dollar Positions While Managing Liquidity Through OMOs Context: The Reserve Bank of India (RBI) has begun unwinding its short dollar forward positions after a seven-month pause, while infusing rupee liquidity through open market operations (OMOs) to neutralize the liquidity drain. This strategic move coincides with a weakening dollar and stable rupee, allowing the central bank to simultaneously build foreign exchange reserves and maintain surplus banking liquidity. Key Developments Short Dollar Forward Position Decline Sterilization via OMOs Foreign Exchange Reserve Management RBI Builds Reserves Amid Dollar Weakness Rupee Performance and Market Trends Rupee Strengthens Against the Dollar Favorable External Factors The RBI’s current strategy reflects a dynamic and proactive approach to managing foreign exchange exposure and banking system liquidity. By allowing short positions to mature, purchasing spot dollars, and sterilizing liquidity through OMOs, the central bank is reinforcing its accommodative stance while bolstering forex reserves amid a stable external environment. BS 4. SBI Research Forecasts Up to 125 bps Rate Cuts by RBI Context: SBI Research predicts that the Reserve Bank of India (RBI) may cut policy rates by up to 125 basis points in FY26, following a multi-year low inflation reading of 3.34% in March. This forecast is based on expectations of continued benign inflation and the need for accommodative monetary policy. Key Forecasts and Rationale Policy Rate Cut Expectations Inflation Outlook Liquidity Management and Open Market Operations (OMOs) Macroeconomic Implications BS 5. Stricter SEBI Rules Slow SME to Mainboard Migration in 2024–25 Sharp Drop in Migrations Key Regulatory Changes Revised Eligibility Criteria Widened Transition Timelines Impact on SMEs BS 6. RBI Slows Gold Repatriation Amid Rising Share in Forex Reserves Minimal Gold Repatriation in H2 FY25 Current Composition of RBI’s Gold Holdings Gold as a Hedge and Diversification Tool Breakup of Foreign Currency Assets (as of March-end 2025) TET 7. SEBI Probes Mahadev Betting App Firms for FPI Violations and Stock Manipulation Context: SEBI has initiated a formal investigation into firms linked to the Mahadev Betting App case. Link with Ongoing Enforcement Directorate (ED) Investigation Market Manipulation Allegations Scale of Action Taken So Far Next Steps and Regulatory Implications BL 8. ₹600 Crore Discrepancy in IndusInd Bank’s Microfinance Accounting Triggers Audit Probe Context: Statutory auditors flagged a ₹600 crore discrepancy after reviewing IndusInd Bank’s microfinance income. Regulatory Scrutiny and RBI Involvement Leadership Crisis at IndusInd Bank Background on Microfinance Exposure Audit Concerns and Industry Implications Mint 9. MSEI’s Revival Faces Hurdle as SEBI Plans to Cap Derivative Expiries to Two Days Background SEBI’s Proposed Derivatives Cap Market Impact and Liquidity Challenge Institutional Support & Governance Efforts Operational and Licensing Hurdles Mint 10. Aditya Birla Capital Digital Launches Digital Gold SIP Product Overview: Key Features: Additional Offering – Digital Silver: Key Executive: 11. RBI Grants Online Payment Aggregator License to Zaakpay (MobiKwik) Context: Zaakpay, the business payments arm of MobiKwik, has received final RBI approval to operate as a licensed Online Payment Aggregator in India. This approval allows Zaakpay to legally process digital payments for businesses under Indian law. Why This Approval Matters Regulatory Significance: Strategic Impact for MobiKwik What Zaakpay Offers Payment Services: Key Partnerships: Market Reaction & Share Performance Share Movement: Future Growth Plans for Zaakpay Business Expansion Focus: Long-Term Outlook: Agriculture 1. Coalition for GM-Free India Opposes Genome-Edited Paddy Varieties Context: Coalition for GM-free India demands withdrawal of two genome-edited rice varieties announced by the Centre. The group is currently fighting a Supreme Court case against genetically modified (GM) crops Health and Environmental Concerns Criticism of Government and Research Bodies Regulatory Allegations Details of Released Varieties TH Facts To Remember 1. Namo Bharat Stations Integrated with Electric City Buses for Last-Mile Connectivity  To enhance last-mile connectivity and provide smoother travel for Namo Bharat commuters, the National Capital Region Transport Corporation (NCRTC) has collaborated with the Delhi Transport Corporation (DTC) to integrate air-conditioned electric city buses with the Namo Bharat stations. 2. India well-positioned to