Context: The Reserve Bank of India (RBI) has proposed a ban on prepayment penalties on retail and small business loans. The visions behind this proposal are expected to hamper lenders’ fee income and profitability. Impact of the Provisions Provisions of Draft Circular Expected Impact on NBFCs & Banks Sector-Wise Exposure of Major Lenders (SME Loans, LAP, Business Loans in %) Lender SME Loans LAP Business Loans State Bank of India 12% NA NA HDFC Bank 19% NA 14% ICICI Bank NA NA 19% Axis Bank 11% 7% 6% Bank of Baroda 11% 2% NA Bajaj Finance 12% 3% NA Aditya Birla Finance 29% 26% NA Cholamandalam 4% 22% NA LIC Housing Finance NA 12% NA Mahindra & Mahindra Financial Services 5% NA NA It is expected that NBFCs and banks will submit feedback to the draft by March 21. Adjustments to lending strategies may follow to avert loss of revenue. Increase in lending rates or processing fees may be affected.
India’s Carbon Trading Scheme
Context: Government to announce emissions intensity targets for nine industrial sectors by February end. Industries will have one year to implement compliance measures before carbon trading may commence.Trading in carbon credits expected to start by October 2026. The Trading Framework of Carbon Credits India’s Carbon Market Strictly speaking, India has set up carbon markets to trade carbon credits to reduce greenhouse emissions. These markets are meant to help India attain its target of net-zero carbon emissions. India’s Carbon Credit Trading Scheme (CCTS) India’s Carbon Credit Trading Scheme (CCTS) is a market-based system that aims to reduce greenhouse gas emissions. The scheme will help India meet its climate goals. How does the CCTS work? What are the benefits of the CCTS? Carbon Market Mechanisms at the Global and Indian Levels Introduction of Voluntary Carbon Offsets and Expanding the Market India Promised Climate Change Efforts
Internet Shutdowns Report
Context: India did not impose the highest number of Internet shutdowns last year, with Myanmar seeing one additional disruption in 2024, according to a report by advocacy body Access Now. However, the number of shutdowns imposed by the government in charge the Union and State Governments here, and the military junta in Myanmar is still higher in India. India No Longer the Highest in Shutdowns Shutdown Trend in India Global Internet Shutdowns’ Highest Records Shutdowns for Exams in India These include five shutdowns concerning exams: some examples include Jharkhand on September 22, 2024, shutting down the Internet for 5.5 hours during the government exam, Assam in September 2024 with shutdowns in several districts concerning state job exams, and Rajasthan in January 2024 to cut the Internet for the Rajasthan Public Service Commission exam. Shutdowns have been criticized by advocacy groups, including AccessNow, terming them disproportionate and unnecessary to prevent cheating. Source: The Hindu
Tribal Rights vs. Tiger Conservation
Context: Under conservation activities, the Munda tribal families of Jamunagarh village in Similipal Tiger Reserve have been displaced from their native land. This has been done against the will of its members more than once in 2015 and in 2022. Traditional performances and rituals till date have been banned, including rituals involving visits to sacred groves and burial grounds. Cause of Recent Conflict Tribal Voices and Protests Conservation vs. Human Rights: A Growing Debate The Munda Tribes The Munda are an ethnic group of people in India who primarily live in the Chhotanagpur Plateau region. They are one of India’s largest scheduled tribes. The conflict in STR brings to light the wildlife conservation challenges posed by indigenous traditions. With the ever-increasing mosaic of legal and ethical debates surrounding any form of displacement, the need to find an avenue that is acceptable and productive for tribal heritage versus conservation is pressing. Source: The Hindu
America Peak Ajustment in a Bubble?
Bull Case: AI Mediated Growth Supplemented by Demand Drivers Final Thoughts: “Peak America”? The US markets may not be in a bubble, but conditions are likely to lead to poor returns forward.If a bubble should burst, markets could see a decline of 40–50% that would greatly affect global risk appetite.Gradual US asset de rating is more desirable than a sudden correction.Signs are, the US is likely to underperform relative to global markets in years to come. Source: Business Standard
India-U.K. Resumes Trade & Investment Talks
Context: India and the U.K. have formally restarted negotiations after a year long pause. Discussions cover Key Highlights of the Talks Background & Challenges Investment and Social Security Issues The negotiators have been instructed to settle the outstanding issues.Both sides seek to conclude a comprehensive and fair deal enhancing trade and investment relations.
Friedrich Merz’s To Become Germany’s 10th Chancellor
Context: Friedrich Merz, on course to become post-World War II Germany’s 10th chancellor after the country’s election, has vowed to prioritize European unity and the continent’s security as it grapples with the new Trump administration and Russia’s war on Ukraine. Internal Effects: Change towards Conservative Rule European Implications: Status Quo versus New Dynamics Germany’s Strategy Amid Potential Trump Presidency Friedrich Merz’s leadership will represent a progressive shifting of the political spectrum in Germany to the right direction, emphasizing instead on economic policies, tougher immigration policies, and pro business strategies. His success will depend on handling all of these political affairs, such as trying to manage European alliances, responding to shifts in U.S. foreign policy, and raising the issues of domestic voters concerned with the rise of the far right. Source: The Hindu
Ukraine and U.S. Negotiations on Mineral Agreement
Context: This is the context Ukraine and the U.S. are concluding a deal which would allow access of Washington to Ukrainian natural resources in return for continued U.S. support. This agitation has put American officials under pressure to sign the agreement with Kyiv, given that Ukraine has been apprehensive about the absence of security guarantees. Key Highlights:
Current Affairs 23 & 24 February, 2025
Daily Current Affairs Quiz23 & 24 February, 2025 International Affairs 1. New Trump Era Context: Trump’s said to have symptoms of a second term that will worsen instability all over the world. The world will no longer have any illusions on the fact that the post war basis of governance is being dismantled. It means a shift away from collective security to power politics and more U.S. withdrawal from global institutions. From Stability to Chaos: Decay of a System Isolation From International Agreements A World Power Politics Redrawn What It Means for India? A world ruled by power replaces the now vanished rules or even laws based order. India visible in the world itself should quickly prepare for a much different era of strategic uncertainty. National Affairs 1. Submarine Developments in India Project 75 (The Foreign Procurement Route) Project 76 (Indigenous Submarine Development) Capable of launching Land Attack Cruise Missiles (LACMs) Scorpene Class Expansion Indigenous SSN (Nuclear Attack Submarine) Programme Present Status of the Submarine Fleet of the Indian Navy 2. New Legal Framework for Digital Content Regulation Context: The Information and Broadcasting Ministry is examining the existing statutory provisions and the need for a new legal framework to regulate “harmful” content amid complaints of “obscenity and violence” being shown on digital platforms. What is Freedom of Speech? Concern of Misuse of Free Speech Parliamentary Committee’s Interventions Current Regulatory Gap Govt Advises OTT Platforms With increasing concern about digital content, the government is inching toward increased surveillance but still balancing concerns about possible censorship. 3. Three-Language Policy: Tamil Nadu vs NEP 2020 Context: The Union Government has withheld â‚ą2,152 crore in the Samagra Shiksha due to Tamil Nadu’s refusal to join the PM Schools for Rising India initiative. The State opposes the National Educational Policy (NEP) 2020, particularly the three language formula. What Does NEP 2020 Say? Political Stand Potential Solutions On the other hand, the Centre Tamil Nadu standoff brings to the fore linguistic and federal tensions, which require collaborative solutions rather than policy ultimatums. 4. Majorana 1 Context: Microsoft recently announced the Majorana 1 chip in a bold gesture toward practical quantum computing, which they now claim remains “years, not decades” away. In fact, Microsoft is now in good company with Google and IBM, which have also made large strides in the area. Highlights of Majorana 1 Impact on Quantum Computing Majorana 1 from Microsoft could serve as a ”game changer,” but its full possible performance remains uncertain due to www open source independent verification. Should that prove possible, Microsoft would then be placed in the forefront of the quantum computing race along with Google and IBM.n the fence for now, and Microsoft has everything to prove. 5. Quantum Computing Quantum Computing Becomes Even More Important What Is a Quantum Chip? Qubit Quality vs. Quantity Research Advances in Quantum Error Correction Quantum Supremacy and Future Applications What Is Happening in 2025? This year 2025 is poised to mark a watershed moment in quantum computing, with predictions of breakthroughs being made in scalability, error correction, and applicable real-world uses.The fully functioning quantum computer is still a distant goal, but the imminent preparations for it will build the foundation for tomorrow’s computers. Source: The Hindu 6. India’s TB Eradication Context: The PM’s ambition of eradicating TB by 2025 is stymied due to lackluster bureaucratic action.TB screening AI chest X ray tools have been evaluated and approved by health agencies but are not being used in any capacity by the national programme.Central TB Division (CTD) of the Health Ministry is supporting an unverified AI tool DeepCXR while neglecting two highly researched, effective, and affordably priced avenues qXR and Genki. AI Options for TB Screening DeepCXR (Institute for Plasma Research, Gandhinagar) Bureaucratic Delays and Inconsistencies Importance of AI Assisted TB Screening The Central TB Division must take urgent action on validated AI tools; that is, qXR and Genki must be rolled out for immediate acceleration in TB detection.Clear policy guidelines are needed to avoid bureaucratic red tapes.Ensuring AI solutions undergo independent validation prior to their adoption into national programmes. Banking/Finance 1. Rupee Swap by RBI Context: The Reserve Bank of India (RBI) has introduced a dollar denominated rupee swap auction to inject $10 billion into the economy. This is done to meet long term liquidity concerns of domestic banks. Comparison with Earlier Swap Auctions Reason Behind the Action Existing Economic Drags Long Term Economic Effect This newest dollar rupee swap isn’t a proactive measure, just like the first; rather, it’s stabilization of the rupee with possible liquidity constraints. How well the additional liquidity gets put to use by Indian banks would determine how effective the change proves to be. 2. Qualified Institutional Buyers (QIB) Context: Markets regulator Sebi is looking to expand the definition of qualified institutional buyers (QIB) and remove the 200-investor cap, allowing angel funds to access a broader pool of accredited investors. What is Qualified Institutional Buyers (QIB)? Key Highlights: Why It Is Important? It is expected that before implementation of such changes SEBI would first issue a consultation paper where it would adopt a more balanced strategy between protecting the investors and expanding the market. 3. Current Deposit Insurance Framework Context: Deposit Insurance and Credit Guarantee Corporation of India (DICGC) covers every depositor up to â‚ą5 lakh in all banks. Challenges and Considerations Is a Shift to Risk Based Deposit Insurance Needed? Should Deposit Insurance Cover NBFCs? Global Context: Where India Stands The Road Ahead An appropriately calibrated deposit insurance program shall prove imperative for financial stability and depositor confidence. 4. Tough Days for Banking Sector Context: Some banks of which City Union Bank, Karnataka Bank, Bandhan Bank, South Indian Bank, DCB Bank, and Punjab & Sind Bank have net NPAs over 1%. Key Highlights: NPAs Trend Analysis The Effect of RBI’s Unsecured Loan Measures Interest Income & Profits CASA Ratio (Current & Saving Accounts Deposits) Declining Net Interest Margin (NIM) Under Stress Keeping aside investments, banks will brighten up the bad loans while facing challenges from low cost funding and with
Soil Nutrient Management
Advance in a Decade Through SHC Schemes Issues Attached to SHC Implementation Technological Innovations for Soil Testing The Way Forward Thus, India will march towards sustainable agriculture and increased productivity by matching advances in technology with soil specific programs.
