Daily Current Affairs Quiz28 May, 2025 International Affairs 1. EU’s Carbon Border Tariff Context: European Union (EU) countries have agreed to significantly scale back the EU’s carbon border levy. The tariff will now cover only about 10% of firms previously targeted under the scheme. These 10% of companies account for over 99% of the emissions covered by the policy. Background of the Carbon Border Tariff Key Changes and Impact BS 2. Japan Loses Status as World’s Largest Creditor Nation to Germany in 2024 Context: Japan lost its position as the world’s largest creditor nation for the first time in 34 years. Germany surpassed Japan with net external assets of 569.7 trillion yen compared to Japan’s 533.05 trillion yen at the end of 2024. Key Highlights: Background Net Foreign Assets National Affairs 1. Early Onset of Southwest Monsoon 2025 — Causes and Uncertainties Context: The India Meteorological Department (IMD) declared the monsoon onset over Kerala on May 24, 2025, eight days ahead of its normal date schedule of June 1. Earliest monsoon onset in over a decade (last such early arrival in 2009) What is the Southwest Monsoon? Criteria for Monsoon Onset Over Kerala (IMD) Causes of Early Monsoon in 2025 Meteorological Factor Impact Madden-Julian Oscillation (MJO) Boosted convection; observed from May 13 over south Andaman Sea Mascarene High Intensification Directed strong moist winds from southern Indian Ocean Convection Surge Enhanced cloud buildup and early rainfall Somali Jet Strengthening Strengthened cross-equatorial flow towards Kerala Heat Low Formation Persistent low pressure over NW India drew in moist air Monsoon Trough Activation Triggered rainfall across central and northeast India Implications of Early Monsoon Onset Positive Outcomes: Challenges/Risks: TH 2. Draft Registration Bill, 2025 Context: To replace the 117-year-old Registration Act, 1908 with a modern, digital-first legal framework that enhances transparency, accessibility, and ease of property registration in India. Key Highlights: Administrative Context Implications TH 3. RoDTEP (Remission of Duties and Taxes on Exported Products) Context: Government Restores RoDTEP Scheme Benefits for AA, EOU, and SEZ Units. Key Announcement Background Impact on Export Ecosystem 4. World Dugong Day 2025: Conservation of India’s Gentle Marine Grazer Context: World Dugong Day is observed every year on May 28 to raise awareness about dugongs (Dugong dugon), marine herbivores known as “sea cows”. Dugongs are the only herbivorous marine mammals in India, found in shallow coastal waters rich in seagrass meadows. Dugong: India’s Sea Grazer Conservation Status and Threats Major Threats: Conservation Initiatives in India 5. 5th-Generation Fighter Jet – AMCA Programme Context: Defence Minister Rajnath Singh has formally approved the execution model for the Advanced Medium Combat Aircraft (AMCA) programme. The move marks a critical step in India’s quest to develop an indigenous fifth-generation stealth fighter jet, reinforcing strategic autonomy and military self-reliance. Execution Model and Industry Participation About the AMCA Fighter Jet 6. Panchayat Advancement Index (PAI) 2.0 Context: The two-day National Writeshop on Panchayat Advancement Index (PAI) Version 2.0 for FY 2023–24 commenced at Dr. Ambedkar International Centre, New Delhi.  During the inaugural, the PAI 2.0 Portal was launched  https://pai.gov.in/ . Local Indicator Framework (LIF) Booklet for FY 2023–24 along with the Standard Operating Procedure (SOP) was also released on this occasion. What is PAI 2.0? What’s New in PAI Version 2.0? Feature PAI 1.0 PAI 2.0 Indicators 516 147 (↓ 72%) Data Points 794 227 (↓ 71%) Usability High complexity Streamlined, focused Coverage 2.16 lakh GPs Over 2.5 lakh GPs Nine Thematic Areas in PAI 2.0 (LSDG-aligned) Significance PIB Banking/Finance 1. MoSPI to Monitor Impact of Mudra Loan Scheme Context: The Ministry of Statistics and Programme Implementation (MoSPI) aims to track the utilization and impact of credit access programmes such as the Pradhan Mantri Mudra Yojana (PMMY). This initiative is part of efforts to support enterprise formalisation and financial inclusion. Surveys Involved Objectives Collaboration and Data User Engagement Significance 2. FM Nirmala Sitharaman Signals Boost for Fintech Sector Context: Finance Minister Nirmala Sitharaman visited Pine Labs’ Noida office. Acknowledged fintech‘s role in enabling secure, inclusive financial services, especially for merchants and MSMEs. Push for Digitisation Across States Supportive Policy Plans for Fintech and Digital Exports BS 3. CBDT Extends Income Tax Return Filing Deadline for AY 2025-26 to September 15 Context: The Central Board of Direct Taxes (CBDT) has extended the last date for filing Income Tax Returns (ITR) for Assessment Year (AY) 2025-26 from July 31, 2025 to September 15, 2025. The extension responds to significant revisions in ITR forms and new reporting requirements introduced by the Finance Act, 2024. Reasons for Extension Key Changes in ITR Forms BS 4. Reserve Bank of India (Digital Lending) Directions, 2025 Issued by RBI Context: The Reserve Bank of India (RBI) released new digital lending norms earlier this month impacting credit guarantee schemes for MSME loans. Most MSME loans are currently covered under credit guarantee schemes which offer zero risk weight and encourage lending at competitive interest rates. RBI Directions on Digital Lending The Reserve Bank of India (RBI) issued comprehensive directions to regulate the digital lending ecosystem with the aim of enhancing borrower protection, promoting transparency, and ensuring responsible digital lending practices. Key Objectives Definition of Digital Lending Entities Covered The directions apply to: Key Features and Provisions Mandatory Reporting of Digital Lending Apps (DLAs) Due Diligence on Lending Service Providers (LSPs) Role of LSPs Mandatory Disclosures to Borrowers Grievance Redressal Mechanism Significance Key Regulatory Change Implications for NBFCs and MSME Lending 5. Deposit Insurance and Credit Guarantee Corporation (DICGC) Context: The Union government is considering increasing the bank deposit insurance limit from the current ₹5 lakh to potentially ₹10 lakh. Deposit insurance is provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC), covering deposits in commercial and cooperative banks. DICGC and the Deposit Insurance Amendment Background The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of the RBI, has initiated verification and certification of claims from 55 insured Urban Co-operative Banks (UCBs) placed under All Inclusive Directions (AID). This is to ensure that depositors receive insured amounts (up to ₹5 lakh) within

Daily Current Affairs Quiz26 & 27 May, 2025 National Affairs 1. U.S. DIA Report 2025: India’s Strategic Posture and Security Outlook Context: The US Defense Intelligence Agency (DIA), in its 2025 worldwide threat assessment, has stated that India views China as its primary adversary, while treating Pakistan more as an ancillary security problem to be managed, despite the recent escalation of cross-border hostilities. India’s Key Security Assessments Recent Conflict Highlights India’s Defence and Foreign Policy Priorities Military Modernisation Highlights Geostrategic Engagement India–China Relations India-Russia RelationsIndia–Russia Relations Pakistan’s Strategic Posture TH 2. Bharat Forecasting System (BFS) Context: The Bharat Forecast System (BFS) is an indigenously developed high-precision weather forecasting model, officially launched by the Ministry of Science and Technology in May 2025. Developed by the Indian Institute of Tropical Meteorology (IITM), Pune, BFS is now operational after three years of rigorous testing since its inception in 2022. Core Features and Technology What Makes BFS Superior? Speed: Accuracy: Granular Localised Predictions: Strategic Impact 3. Centre-State Relations in Focus at 10th NITI Aayog Governing Council Meeting Overview Current Challenges in Centre-State Relations Notable State Interventions Fiscal Concerns Raised by States Implications TH 4. Government Restores RodTEP Benefits for SEZs and EOUs Context: The Government of India has reinstated the benefits under the Remission of Duties and Taxes on Exported Products (RodTEP) scheme for goods manufactured in: The restoration will be effective from June 1, 2025. Background Special Economic Zones (SEZs) The main objectives of the SEZ Scheme is generation of additional economic activity, promotion of exports of goods and services, promotion of investment from domestic and foreign sources, creation of employment opportunities along with the development of infrastructure facilities. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules. Each Zone is headed by a Development Commissioner and is administered as per the SEZ Act, 2005 and SEZ Rules, 2006. Units may be set up in the SEZ for manufacturing, trading or for service activity. Export-Oriented Units (EOUs) The Export Oriented Unit (EOU) Scheme started in 1981 to promote exports and thus increase net foreign exchange earnings. What is the EOU or export-oriented units scheme? EOUs are those units that undertake to export their entire goods and services. Any entity engaged in the below-mentioned activities can obtain the status of EOU: BS 5. NITI Aayog Proposes Support Measures to Transform Medium Enterprises into Global Businesses Key Recommendations Background and Rationale Proposed Financing Scheme Details Global Best Practices BS 6. Kerala Oil Spill Incident: MSC ELSA 3 Capsizes off Kochi Coast Context: A Liberian-flagged cargo vessel, MSC ELSA 3, sank 38 nautical miles off the Kochi coast, raising concerns of a hazardous oil spill and environmental threat. What Happened? What is an Oil Spill? Impacts of Oil Spills Marine Life Damage Ecosystem Disruption Economic Impact Legal & Regulatory Framework International Conventions Indian Regulations Oil Spill Management Techniques 7. NITI Aayog Report: Designing a Policy for Medium Enterprises Context: NITI Aayog has launched a visionary policy report focused on medium enterprises as a key pillar for achieving Viksit Bharat @2047, proposing targeted reforms to unlock their industrial potential. What Are Medium Enterprises? Sectoral Overview Indicator Value/Impact GDP Contribution MSMEs contribute 29%, with medium enterprises as the manufacturing core Job Creation 89 jobs/unit (vs. 5.7 in micro, 19.1 in small) Export Income ~₹50,562 crore annually R&D Spend 81% of MSME R&D comes from medium enterprises Positive Insights from the Report Key Challenges Identified Strategic Recommendations (Way Forward) Finance Support Tech & Industry 4.0 Adoption Skilling & Talent Reform R&D Infrastructure Digital Governance Banking/Finance 1. Loans Against Property (LAP) Context: Banks and Non-Banking Financial Companies (NBFCs) are increasingly promoting Loans Against Property (LAP), a secured retail lending product, due to rising stress in unsecured loan segments. Key Highlights: What is a Loan Against Property? A Loan Against Property (LAP) lets you tap into your property’s value by using it as collateral to secure funds. With benefits like low-interest rates and flexible repayment options, LAP can be a suitable financial solution. To qualify, lenders typically assess factors like property value, your income and credit score. Why LAP is Preferred Challenges in the Unsecured Loan Segment 2. Complaint Filed Against IndusInd Bank Over Accounting Lapses Context: The National Financial Reporting Authority (NFRA) has received a complaint via the CPGRAMS portal regarding alleged accounting lapses at IndusInd Bank. The issue centers on accounting discrepancies in IndusInd Bank’s derivatives portfolio, which the bank disclosed on March 10, 2025. RBI-NFRA Coordination SEBI’s Involvement Implications 3. Finance Ministry’s Directives for RRB Integration and Expansion IT Integration Deadline Profitability & Road Map for Loss-Making RRBs Post-Amalgamation Support Human Resource & Customer-Centric Measures HR Sensitivity Jan Dhan Account Re-Activation Strategic Operational Guidance Product and Branch Differentiation Background: RRB Restructuring Objective To ensure that RRBs: One State-One RRB BS 4. Revised Economic Capital Framework (ECF) of RBI Context: To provide the Reserve Bank of India (RBI) with greater flexibility in determining surplus transfers to the government. Aimed at smoothing transfers across years without distorting the government’s fiscal math. Contingency Risk Buffer (CRB): Revised Range Increasing the Contingency Risk Buffer (CRB) provides the RBI with greater flexibility, enabling it to smoothen surplus transfers to the government and prevent significant volatility in fiscal calculations Period CRB (%) FY19–FY22 5.5 FY23 6.0 FY24 6.5 FY25 7.5 (max of revised range) Record Surplus Transfer in FY25 Objective of Revised ECF BS 5. Liberalised Remittance Scheme (LRS) The Liberalised Remittance Scheme (LRS) is an initiative by the Reserve Bank of India (RBI) that allows Indian residents to remit (send) money abroad for various purposes such as education, travel, medical expenses, investments, and more. Since its introduction in 2004, LRS has played a crucial role in facilitating seamless international transactions for individuals. What is the Liberalised Remittance Scheme (LRS)? The Liberalised Remittance Scheme (LRS) was introduced by the RBI in 2004 to simplify foreign remittances for Indian residents. Under this scheme, individuals can send up to USD 250,000 per financial year (April–March) outside India for permissible transactions without requiring prior approval from the RBI. This means that Indian residents can freely remit funds