Daily Current Affairs Quiz2 May, 2025 International Affairs 1. U.S.-Ukraine Finalize Rare Earth Minerals Agreement Context: The U.S. and Ukraine signed a strategic agreement called the United States-Ukraine Reinvestment Fund. The deal grants the U.S. access to Ukraine’s rare earth mineral resources. Seen as a move to secure long-term military and economic cooperation between Washington and Kyiv Strategic Importance of the Deal Message to Russia and Global Observers Implications for Global Markets and Defense TH 2. India’s Diplomatic Efforts Amidst the Pahalgam Terror Attack Context: The Pahalgam terror attack shocked India, with fears of an escalation in military tensions and a diplomatic fallout with Pakistan. However, India has strategically used this moment to bolster its diplomatic ties with three of Pakistan’s closest allies: Saudi Arabia, the UAE, and the Taliban regime in Afghanistan. Strengthening Ties with Saudi Arabia Partnership with the UAE Engagement with the Taliban Implications of these Diplomatic Moves TH National Affairs 1. PM Modi Dedicates Vizhinjam International Seaport Context: Vizhinjam International Seaport officially commissioned by PM Narendra Modi in Thiruvananthapuram, Kerala. Billed as India’s first all-weather deepwater transshipment port. Designed to reduce India’s reliance on foreign ports and boost maritime trade competitiveness. Strategic Importance Technology and Innovation Challenges Faced Expected Impact The Indian Express 2. Private Member’s Bills in India Context: Private Member’s Bills (PMBs) are proposed by Members of Parliament (MPs) who are not part of the government. Most legislation in India is introduced by the government, but PMBs allow MPs to propose laws based on personal convictions or constituency needs. Fridays in Parliament sessions are typically reserved for PMB discussions, providing MPs an opportunity for independent thought and legislative contribution. Declining Relevance of PMBs Significant Private Member’s Bills Challenges to the PMB Process Reforms Needed for PMBs Potential Impact and the Value of PMBs TH 3. India’s Suspension of the Indus Waters Treaty (IWT) Background: The Indus Waters Treaty (IWT) Is Unilateral Suspension of the IWT Permissible? Potential Impacts on Pakistan TH Banking/Finance 1. GST Collections Reach Record ₹2.09 Trillion in April 2025 Context: India’s net goods and services tax (GST) receipts grew 9.1 per cent in April to hit a fresh monthly record of over ₹2.09 trillion, making a significant improvement over the mild 7.3 per cent uptick in revenues this March, despite a 40 per cent sequential surge in refunds. Key Highlights Drivers Behind the Growth Automobile Sector Performance Passenger Vehicle Sales Digital Payments Trend UPI Transactions BS 2. UPI Transactions: Temporary Dip IMPS: Losing Ground to UPI AePS: Volatile and Region-Dependent BS 3. Policy Direction and Strategic Vision Context: The Finance Minister reinforced the government’s commitment to simplifying regulations and enhancing ease of doing business. This aligns with India’s larger ambition of becoming a global economic powerhouse. The emphasis on building domestic efficiencies highlights a strategy of internal consolidation amidst global uncertainties. Trust in the Private Sector Institutional Strengthening and Service Delivery Skill Development and Internships BS 4. Jana Small Finance Bank Set to Seek Universal Banking Licence in May 2025 Context: Jana Small Finance Bank (SFB) plans to apply to the Reserve Bank of India (RBI) for a universal banking licence in May 2025, according to MD & CEO Ajay Kanwal. Eligibility Criteria Met The bank qualifies under RBI norms, having achieved: Strategic Objectives What Is Universal Banking? Universal banking is a system in which banks provide a wide variety of comprehensive financial services, including those tailored to retail, commercial, and investment services. RBI’s Licensing Guidelines Universal Banking Licences in India (2016) The Reserve Bank of India introduced the ‘On Tap’ Licensing Policy in August 2016 for private sector universal banks. This policy allows eligible applicants to seek a banking licence at any time, enhancing dynamism and competition in the Indian banking sector. Eligibility Criteria 2. Corporate Structure 3. Capital Requirements 4. Foreign Shareholding 5. Corporate Governance Norms 6. Financial Inclusion Mandate 7. Listing Obligation BS 5. NABFID Plans to Raise ₹70,000 Crore in FY26 Context: NABFID aims to raise up to ₹70,000 crore in FY26, significantly higher than the ₹23,000 crore raised in FY25. Outstanding Debt and Borrowing Growth Asset Growth Projections This strategy reflects NABFID’s ambition to expand its financial capacity to support infrastructure development across India. BS 6. Large Cap, Mid Cap, And Small Cap Funds Context: After a period of underperformance, largecap funds are seeing a resurgence. They have outperformed smallcap funds in the two-year Systematic Investment Plan (SIP) returns chart. SIP investments in largecap funds have generated an average annualized return of 11.3% over the past two years. In comparison, smallcap funds have provided 7.2% annualized returns. Midcap Funds What Is The Difference Between Large Cap, Mid Cap, And Small Cap Funds? Mutual funds are among the most effective investment options for wealth creation, especially for beginners. One of the key ways mutual funds are classified is based on market capitalization—the total market value of a company’s outstanding shares. What is Market Capitalization? Market capitalization (or market cap) is the total value of a company’s outstanding shares, calculated as:Market Cap = Current Market Price per Share × Total Number of Outstanding SharesBased on this value, SEBI categorizes companies into three main types: Large-cap Companies Mid-cap Companies Small-cap Companies Large-cap vs Mid-cap vs Small-cap Funds Factor Large-cap Funds Mid-cap Funds Small-cap Funds Risk Profile Low Moderate High Volatility Low Medium High Liquidity High Medium Low Average 5-Year Return ~7% ~10.28% ~14.74% Investment Horizon Short to medium-term Medium to long-term Long-term only Ideal For Conservative investors Balanced investors Aggressive investors with high-risk tolerance 7. BSE Seeks Approval for Monthly Derivative Contracts on New Indices Context: The Bombay Stock Exchange (BSE) has sought approval from the Securities and Exchange Board of India (Sebi) to offer monthly derivative contracts for two to three additional indices, including several thematic indices. Regulatory Process and Timeline Recent Developments and Index Launches Current Market Offerings and Performance Future Prospects BS 8. SEBI Proposes Enhanced Role for Credit Rating Agencies in Equity Market Context: The Securities and Exchange Board of India (SEBI) has proposed