Context: Payments banks in India have approached the Union Finance Ministry, requesting an increase in their individual account deposit limit from the current ₹2 lakh to ₹5 lakh. This proposal was discussed in a meeting chaired by Department of Financial Services Secretary M. Nagaraju in New Delhi. Payment Banks Payment banks are specialized financial institutions, introduced by the Reserve Bank of India (RBI), that focus on providing basic banking services like deposits, withdrawals, and remittances, primarily through digital channels, to the unbanked and underbanked populations, but cannot issue loans or credit cards. Key Highlights Small Finance Bank Conversion IPPB Recognized for Financial Inclusion Current Players in the Payments Bank Sector Payments banks are urging the government to increase deposit limits and allow lending to the microfinance sector to strengthen their financial sustainability and broaden income avenues. If approved, these changes could significantly enhanc
SEBI May Raise FPI Disclosure Threshold to â‚ą50,000 Crore
Context: The Securities and Exchange Board of India (SEBI) is likely to increase the investment threshold for granular ownership disclosures by foreign portfolio investors (FPIs) from ₹25,000 crore to ₹50,000 crore. This strategic move is designed to enhance FPI confidence and align disclosure requirements with India’s growing financial markets. Key Highlights Indian Stock Market Continues to Rally Foreign Portfolio Investment Inflows at 1-Year High Possible Relief for Startups and Pre-IPO Founders SEBI’s proactive regulatory measures, including raising FPI disclosure thresholds and easing norms for startups and investment professionals, signal a strong commitment to fostering market growth, encouraging foreign investments, and supporting India’s dynamic financial and startup landscape. These developments are expected to hav
World Happiness Report 2025
Key Highlights How India and Its Neighbours Fared Country Happiness Score (2022–24) Previous Score (2021–23) Change in Rank Change in Score (vs. 2006–10) India 4.39 4.05 Improved from 126th to 118th -0.58 Pakistan 4.77 4.66 Dropped from 108th to 109th -0.37 Nepal 5.31 — — +0.71 Sri Lanka 3.89 — — -0.38 Bangladesh 3.85 — — -0.92 Despite economic challenges, Pakistan outscored India with a happiness score of 4.77 but saw its rank decline marginally. BRICS Happiness Score Comparison Country 2018–20 2019–21 2020–22 2021–23 2022–24 Brazil 6.33 6.29 6.13 6.27 6.49 Russia 5.48 5.46 5.66 5.78 5.95 India 3.82 3.77 4.04 4.05 4.39 China 5.34 5.58 5.82 5.97 5.92 South Africa 4.96 5.19 5.27 5.42 5.21 Factors Affecting Happiness Scores The World Happiness Report bases scores on the Gallup World Poll, asking respondents to rank their current life on a scale from 0 to 10 (worst to best possible life). Key indicators influencing happiness scores: India-Pakistan Economic & Health Comparison: While India’s happiness ranking has improved, it still lags behind Pakistan and several neighbouring countries, highlighting challenges in subjective well-being despite stronger economic metrics. The improvement signals progress but also calls for greater focus on social support, health, and perceived freedom to improve the nation’s happiness quotient.
National Centres of Excellence (CoEs) for Skilling
Key Highlights The planned establishment of five National Centres of Excellence (CoEs) signals a significant boost to India’s skill development ecosystem. By upgrading NSTIs with global expertise, industry collaboration, and advanced curricula, the initiative aims to create a robust skilled workforce for the manufacturing sector and beyond. With a focus on higher NSQF-level courses and international partnerships, these CoEs are set to play a key role in making India a global hub for skilled talent.
SBI Report on Labour Migration
Key Findings Post-Pandemic Inflation Trends (FY21–FY25) Key Contributing Factors Purchasing Power and Inflation Link State-wise Inflation Highlights (February data) Rural vs. Urban Inflation Forecast and Monetary Policy Outlook Source: TH
AI-Based Cloud Solution ‘Vayu’
Product Launch Key Features of Vayu Business Benefits Strategic Vision
Eli Lilly Launches Mounjaro (Tirzepatide) in India for Diabetes and Obesity
Product Launch Medical Benefits Pricing in India Growing Market Landscape in India Market Growth Source: TH
Swadesh Darshan Scheme
Background Key Findings from the CAG Audit PAC Committee Concerns Committee Directives
Global Outstanding Bonds Cross $100 Trillion: OECD
Context: Outstanding government and corporate bonds worldwide exceeded $100 trillion in 2024, according to the OECD‘s annual global debt report. Interest costs as a share of global output rose to their highest level in 20 years, reaching 3.3% of GDP among OECD member countries surpassing defence spending. The surge in borrowing costs poses challenges for governments and corporations, forcing them to prioritize productive, growth-oriented investments. Debt and Interest Trends Key Indicator Data Point Total outstanding sovereign & corporate bonds Exceeded $100 trillion in 2024 (nearly 3x 2007 levels) Government interest spending (OECD members) 3.3% of GDP — higher than defence spending Sovereign & corporate debt maturing by 2027 40% of total debt Share of low-income, high-risk countries’ debt maturing by 2027 50% within 3 years; 20% in 2024 alone Dollar-denominated bond borrowing costs Rose from 4% in 2020 to over 6% in 2024; 8%+ for junk-rated issuers Factors Driving Debt Concerns Risks for Governments and Corporates OECD cautions “If borrowing adds expensive debt without boosting productivity, economies could face more difficult times.” Climate Finance Challenge Global Debt Growth Over Time Year Global Public Debt (USD trillion) 2010 51 2015 62 2020 84 2023 97 2024 Over 100 Sovereign and corporate bond borrowing in 2024 was nearly three times higher than in 2007. The global debt surge, coupled with rising interest costs and refinancing risks, places immense pressure on governments and companies to align borrowing with long-term productivity. The challenge is particularly severe for emerging markets and low-income nations, highlighting the urgent need for capital market development and responsible fiscal management.
India-U.S. Bilateral Trade Agreement (BTA)
Context: A team of U.S. officials, led by Assistant Trade Representative Brendan Lynch, will visit New Delhi next week. The goal is to discuss and shape the proposed Bilateral Trade Agreement (BTA). Both sides aim to finalize the first tranche of the agreement by Fall 2025. Key Highlights: Discussion Points Timeline and Recent Developments Next Steps
