Context: The Union Finance Ministry has announced the discontinuation of the medium- and long-term government deposit (MLTGD) components of the Gold Monetisation Scheme (GMS), effective March 26, 2025. This decision follows a comprehensive review of the scheme’s performance and changing market dynamics. Medium Term Government Deposit (5-7 years), and. Long-Term Government Deposit (12 – 15 years) The Gold Monetisation Scheme The Gold Monetisation Scheme was announced on September 15, 2015, with the objective to reduce country’s reliance on the import of gold in the long run and mobilise gold held by households. Advertisement. Till November 2024, approximately 31,164 kilograms of gold have been mobilised under GMS. Background of the GMS Key Policy Change What Continues? Reason for Discontinuation Implications for Stakeholders Stakeholder Impact Households/Institutions Limited to short-term deposits, reducing long-horizon monetisation opportunities. Banks Continued participation through STBDs, subject to profitability. RBI Will issue revised guidelines on short-term deposit handling. The government is shifting its focus to shorter-term gold deposits, possibly due to higher efficiency and bank interest in that segment. The move aligns with market feedback and aims to enhance commercial viability. Continued gold mobilisation will depend on bank adoption and RBIās revised guidance. Source: BS
RBIās Revised Priority Sector Lending Norms
Context: The Reserve Bank of India (RBI) has announced revised Priority Sector Lending (PSL) norms, effective April 1, 2025, aimed at increasing credit flow to sectors such as housing, clean energy, and weaker sections. These regulations are expected to benefit banks with lower organic PSL generation, notably HDFC Bank, RBL Bank, Federal Bank, and IndusInd Bank. Key Highlights of Revised PSL Guidelines: Enhanced Housing Loan Limits (Based on City Population) To improve access to affordable housing, RBI has revised upward the PSL-eligible loan ceilings: City Population Maximum Housing Loan Eligible under PSL Above 50 lakh ā¹50 lakh 10ā50 lakh ā¹45 lakh Below 10 lakh ā¹35 lakh Expanded Renewable Energy Lending Farm Produce Hypothecation Loans These changes are aimed at supporting post-harvest financing and reducing farmersā reliance on informal credit. Higher Limits for Educational and Social Sector Loans Revised PSL Targets for Urban Co-operative Banks (UCBs) Expanded Definition of āWeaker Sectionsā The definition now includes: Differential Weight System for Regional Credit Flow To incentivize banks to lend in underserved areas: District Type PSL Weightage Lower per capita credit districts 125% Higher per capita credit districts 90% This weighting mechanism encourages balanced regional development and more equitable credit distribution. Strategic Impact of the Revised PSL Norms What is Priority Sector Lending (PSL)? Priority Sector Lending refers to mandatory credit allocation by banks to certain critical sectors of the economy that face difficulty accessing credit. These include: PSL Targets by Bank Category Category Domestic Commercial Banks & Foreign Banks (ā„20 branches) Foreign Banks (<20 branches) Regional Rural Banks (RRBs) Small Finance Banks (SFBs) Total Priority Sector 40% 40% (upto 32% in form of Export Credit) 75% 75% Agriculture 18% Not applicable 18% (Same as DCB) 18% (Same as DCB) Micro Enterprises 7.5% Not applicable 7.5% (Same as DCB) 7.5% (Same as DCB) Advances to Weaker Sections 12% Not applicable 15% 12% (Same as DCB) Instruments for PSL Compliance 1. Direct Lending 2. Investments in Eligible Instruments 3. Priority Sector Lending Certificates (PSLCs) What Happens If PSL Targets Are Missed? Banks failing to meet PSL obligations must contribute to designated funds such as: About RIDF (Rural Infrastructure Development Fund) Benefits of PSL Challenges in PSL Implementation
BHIM 3.0
Context: The Bharat Interface for Money (BHIM) app will continue to function as a sandbox for digital payment innovations in India, enabling industry-wide adoption of new features as UPI use cases continue to grow. Key Announcements New Features in BHIM 3.0 BHIMās Strategic Innovations Current Market Metrics Key Takeaways BS
SEBI Raises FPI Disclosure Threshold to ā¹50,000 Crore
Context: Key Decision Rationale Behind the Move Previous Norms Expected Impact SEBIās revision of disclosure norms is seen as a pro-growth and investor-friendly move. The decision is expected to strengthen capital inflows, foster market stability, and make India more competitive among global emerging markets. Mint
How Global Warming Is Impacting Mountain Regions Across the World
Context: The UNESCO report titled āMountains and Glaciers: Water Towersā, released on the first World Day for Glaciers (March 21, 2025), highlights the rapid and largely irreversible impacts of global warming on mountain ecosystems. Major Environmental Changes in Mountain Regions Glacier Melting Accelerates Permafrost Thaw Intensifies Declining Snow Cover Erratic Snowfall Patterns Increased Risk of Glacial Lake Outburst Floods (GLOFs) Why This Matters Water Security Threatened Rising Sea Levels Policy Urgency Global warming is drastically reshaping mountain regions, causing faster glacier melting, permafrost thaw, snow cover reduction, and erratic snowfall patterns. These changes endanger global water security, accelerate sea-level rise, and increase climate-related hazards. Immediate action and strong international policy frameworks are crucial to protect these fragile ecosystems and the billions who depend on them. The Indian Express
Astronomers Unveil New Theory on the Origins of Water in the Universe
Context: Astronomers may be closer to solving one of scienceās oldest mysteries: how did water originate in the universe? A groundbreaking study published in Nature Astronomy on March 3 suggests that the universeās earliest stars produced water through colossal supernova explosions, challenging existing theories and potentially reshaping our understanding of lifeās earliest possibilities. The Birth of the First Stars Star Populations Explained 3D Simulations and Key Discoveries The Infant Universe and Abundant Water Addressing Limitations This study revolutionizes our understanding of waterās origins, suggesting that life-supporting conditions may have existed far earlier than previously imagined. If proven, it could drastically reshape theories on planetary formation and the timeline for lifeās emergence in the cosmos. Source: TH
JSW Steel Becomes Worldās Most Valuable Steelmaker
Context: JSW Steel, led by Sajjan Jindal, has emerged as the worldās most valuable steel company with a market capitalisation (mcap) of $30.31 billion, according to Bloomberg data. The company has surpassed major global steel producers like ArcelorMittal and Nucor Corporation. Top Global Steelmakers by Market Capitalisation Rank Company Country Mcap ($ bn) TTM Revenue ($ bn) Profit ($ bn) 1 JSW Steel India 30.31 21.1 1.1 2 Nucor Corporation United States 29.40 30.7 2.0 3 ArcelorMittal Luxembourg 27.14 62.4 1.3 4 Nippon Steel Japan 24.43 58.0 3.1 5 Tata Steel India 23.09 27.5 -0.5 6 Tenaris Luxembourg 22.98 12.5 2.0 7 Baoshan Iron & Steel China 22.72 46.1 1.3 8 Steel Dynamics United States 18.99 17.5 1.5 9 Posco Holdings South Korea 17.35 53.3 0.8 10 Inner Mongolia BaoTou Steel China 11.54 9.3 -0.1 Source: Bloomberg, compiled by BS Research Bureau Key Comparisons Indian Steelmakers Rising Contextual Industry Trend The rise of JSW Steel as the worldās most valuable steelmaker signifies Indiaās growing influence in global manufacturing and highlights the shift in global steel market dynamics. The combination of strong valuations, aggressive expansion, and policy support is positioning Indian steel companies as key players in shaping the future of the global
SAHYOG Portal
What is the SAHYOG Portal? Mission of SAHYOG Portal Who runs it? How does the SAHYOG Portal work? What does it block? Why is it important? Current Use The SAHYOG portal is Indiaās centralized platform for blocking unlawful online content, designed to bring government agencies and online platforms together to fight cybercrime ā but its use is raising debates about transparency, legal boundaries, and freedom of expression.
Collegium System
Context: The Vice-President and Rajya Sabha Chairman, Jagdeep Dhankhar, chaired a meeting of Rajya Sabha floor leaders in the context of the recovery of half-burnt Indian currency notes at the official residence of the High Court judge Justice Yashwant Varma on March 14, building ground for another intervention by Parliament in judicial appointments. What is the Collegium System? The Collegium System is how judges are chosen and transferred in Indiaās higher courts (the Supreme Court and High Courts).Interestingly, this system wasnāt created by the Constitution or by Parliament ā it slowly took shape through decisions made by the Supreme Court itself. How Did the Collegium System Come About? First Judges Case (1981) Second Judges Case (1993) Third Judges Case (1998) Whoās in the Collegium? How are Judges Appointed in India? For the Chief Justice of India For other Supreme Court judges For High Court Chief Justices Problems with the Collegium System Too Secretive Risk of Nepotism and Favoritism No Checks and Balances Lack of Diversity What was done to fix it? The collegium system is how judges are chosen in India, but itās criticized for being secretive and lacking accountability. While efforts to reform it have been made, such as the NJAC, they havenāt succeeded ā leaving this system at the center of ongoing debates about fairness, transparency, and balance of power. UPSC Civil Services Examination Previous Year Question (PYQ) Prelims Q. Consider the following statements: (2019) Which of the statements given above is/are correct? (a) 1 only(b) 2 only(c) Both 1 and 2 (d) Neither 1 nor 2 Ans: (b) Mains Q. Critically examine the Supreme Courtās judgement on āNational Judicial Appointments Commission Act, 2014ā with reference to appointment of judges of higher judiciary in India. (2017) TH
Russia and Ukraine Agree to Cease Black Sea
Context: In a significant diplomatic development, Russia and Ukraine have agreed to suspend military strikes in the Black Sea and refrain from targeting energy infrastructure. The agreement was reached after three days of negotiations brokered by the United States in Riyadh, Saudi Arabia. Key Agreements Conditions Set by Russia U.S. Incentives Reactions from Leaders While this agreement signals a potential turning point in the conflict, both sides have conditions that could complicate full implementation. The global community will closely watch the next steps, particularly around sanctions and compliance with the agreed terms. TH
