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