Context: The National Financial Reporting Authority (NFRA) has furthered its legal endeavor by filing a special leave petition in the Supreme Court against the decision of the Delhi High Court to quash 11 showcause notices because of procedural irregularities. The development occurs in light of increasing scrutiny of audit practice and attempts for reinforcing governance in finance. About National Financial Reporting Authority (NFRA) National Financial Reporting Authority (NFRA) is the auditing and accounting supervision authority of India. The authority oversees the auditing profession and the Indian Accounting Standards under the Companies Act 2013. It was formed in October 2018. The chairperson since March 2022 is Ajay Bhushan Pandey. Important Developments Criticism of NFRA’s Procedure by Delhi High Court NFRA Justification & Supreme Court Appeal Further Empowerment of the NFRA: Government’s Next Steps Its restructuring will enhance NFRA credibility in the face of mounting audit failures and financial mismanagement.
RBI supersedes New India Cooperative Bank
Context: Mumbai-based New India Cooperative Bank has been under the supervision of RBI for 12 months for having issues concerning supervisory concerns and probably funds misuse. Principle Developments Imposition of Operational Restrictions The Reserve Bank of India intervened occasionally to maintain orderly conditions and curb excessive volatility in the foreign exchange market. The RBI’s intervention spells huge trouble over the financial health and governance of cooperative banks. It thus aimed to stabilize, protect depositors, and investigate possible misappropriation of funds.
MAGAnomics
Context: Donald Trump’s comeback to the White House is raising debates again on his economic philosophy, popularly known as MAGAnomics. Because all economic theories have their own internal theories operating within structured frameworks, MAGAnomics instead takes an ideologically mashup, protectionist and deficit spending and deregulation and industrial policy but often in contradictory ways. Some Key Features of MAGAnomics Tariffs and Protection Industrial Policy vs. Deregulation Deficit Spending and Fiscal Contradictions Emotion Beats Economics Coherence The Sociopolitical Foundation of MAGAnomics The Broader Implications It may or may not succeed as an economic strategy, but its political appeal is undeniable. If economists and policymakers hope to counter its rise, th
Inflation in India
Context: This further diminishes consumer price inflation in India to 4.3% in January, close to the 4% target of the Reserve Bank of India (RBI) on a highly favourable winter harvest of vegetables. For cities, it has receded to 3.9%, while rural inflation touches 4.6%, giving much needed relief to households. Imported inflations, edible oils price hikes, and depreciation of currency hold the risks to this progress, though. Key Highlights: Inflation Patterns & Reaction by RBI Rural Among Urban Inflation Risks Concerning the Stability of Inflation Policy & Government Measures
How Earth’s Axis and Orbit Shape Its Seasons
Context: The axial inclination and orbital eccentricity of earth influence its climatic adaptations and seasonal variations. While axial tilt is the primary insolation contributing factor for seasons on earth, a new research is beginning to demonstrate that the elliptical nature of earth’s orbit might cause significant differences in just temperature or precipitation. Earth’s Tilt and Seasonal Changes Orbital Eccentricity on Earth and Climate The Pacific Cold tongue and El Niño Effects on Monsoons Other Planets and Seasonal Changes Thus, axial tilt is the most important factor in maintaining the seasonal cycle on Earth, whereas newer studies suggest the importance of the other aspects such as orbital eccentricity. All these points are good for analyzing past climatic variations, as well as forecasting the coming weather trends. UPSC Civil Services Examination Previous Year Question (PYQ) Prelims Q. Variations in the length of daytime and nighttime from season to season are due to (2013) (a) the earth’s rotation on its axis(b) the earth’s revolution around the sun in an elliptical manner(c) the latitudinal position of the place(d) revolution of the earth on a tilted axis Ans: (d) Source: Times of India
India-U.S. Defence Deals
Context: India finds itself in the most difficult of dilemmas: to accept U.S. President Donald Trump’s invitation to purchase the F-35 fighter jet, a fifth generation stealth fighter. While the Indian Air Force (IAF) would welcome the purchase under the circumstances of Chinese military developments, the decision is clouded by many strategic, financial, and technological considerations. Milestones in India US Defence Cooperation F-35 Offer: Some Basic Considerations Strategic Implications Cost and Technology Transfer Operational Necessity The offer of the F-35 fighter jet lies against a backdrop of maintaining a subtle balance between strategic autonomy, financial viability, and operational necessity. Although the short term acquisition of stealth capabilities may benefit the IAF, India must assess the overall impact on its indigenous fighter programs and long range defence strategy.
Reconstruction of Teesta-3
Context: In the light of the glacial lake outburst flood (GLOF) that struck the dam in October 2023, an expert committee set up by the Government of India has recommended rebooting the Teesta-3 dam in Sikkim. The dam was earlier seen as an economically viable project, however, climate change, geologic instability, and the risks associated with large hydroelectric schemes in the vulnerable Himalayas have cast doubt on the viability of this recommendation. Disaster of 2023 & Causes Globals Warming Triggers The Risks of Rebuilding Teesta-3 Commercial Viability vs. Human Safety Social & Long Term Impacts Reconstruction of Teesta 3 may resurrect lost power
India U.S. Bilateral Talks
Context:‘ India and the United States have promised to complete the first phase of negotiations of a trade deal that would see energy imports from America into India in an attempt to relieve apprehensions regarding the trade balance by fall 2025. The talks had a multitude of issues on the table including trade, defense, energy, and even extradition. Key Highlights: Trade Deal & Bilateral Trade Expansion Extradition of Tahawwur Rana Trade Disputes & Tariffs Energy & Investment Cooperation Strategic Alignments & Diplomatic Relations Other Key Developments Despite the promise by both heads of state to further consolidate ties, there remain disputes on tariffs in trade. It is a significant milestone in economic cooperation to commit to doubling trade and assuring energy security.
Indian B1/B2 Visa
Context: Indian applicants renewing their U.S. B1/B2 (business/tourism) visas now face increased wait times after the U.S. government reinstated its pre-COVID renewal policy. Key Changes & Implications
Current Affairs 14 February, 2025
Daily Current Affairs Quiz14 February, 2025 International Affairs 1. The Yarlung Zangbo Dam in China Context: Construction of a hydroelectric dam on the Yarlung Zangbo River in Tibet by China has once again put India and the rest of the world on guard. This river, which flows as the Brahmaputra in India before finally emptying into Bangladesh, is a lifeline for millions. Different views are in play, with the Chinese considering the establishment of this dam as another step towards carbon neutrality by 2060, versus other countries’ considerations such as water security, regional stability, and environmental ones. What are Hydroelectric Dams? A hydroelectric dam is a structure that uses water to generate electricity. The turbines in the dam convert the kinetic energy of water into mechanical energy, which is then converted into electricity by generators. About the Dam The Yarlung Zangbo Dam is a planned hydroelectric dam on the Yarlung Zangbo River in Tibet. It’s intended to be the world’s largest hydropower project, capable of producing three times as much electricity as the Three Gorges Dam. Location India’s Strategic Implications Environmental and Seismic Costs Big Challenges on Regional Diplomacy Way Forward China To Build World’s Largest Dam on the Brahmaputra 2. Trump-Putin Talks Context: Former U.S. President Donald Trump has broached further discussions with Russian President Vladimir Putin about ending what they would term the Ukraine war in peace making it yet again the source of hope for peace as well as concern regarding further Russian manipulation. Key Highlights: Is Trump talking to Putin? On the opposite of Biden policy Chances and Concerns over Ukraine Geopolitical Effects 3. Indian B1/B2 Visa Context: Indian applicants renewing their U.S. B1/B2 (business/tourism) visas now face increased wait times after the U.S. government reinstated its pre-COVID renewal policy. Key Changes & Implications H1B Visa Rules National Affairs 1. President’s Rule in India Context: Four days after Manipur Chief Minister N. Biren Singh resigned, President’s Rule was imposed in the northeastern State that has been affected by ethnic violence for the past two years. President’s Rule This article states that President’s Rule can be invoked in any state in India when the constitutional machinery in that state fails. Like the section 93 of Government of India Act 1935, it refers to state emergency or constitutional emergency. Mechanism of Article 356 Effects of Presidents Rule Reasons for Declaring Presidents Rule Revocation of President Rule Political Misuse Recommendations for Reform Article 356 is a strong provision and quite controversial. It is requisite for constitutional order, but misuse thereof has given rise to judicial and commission reforms against arbitrary usage. 2. Climate Risk Index (CRI) Context: India has improved its Climate Risk Index (CRI) ranking significantly, moving from 7th worst affected in 2019 to 49th in 2022. However, in the long-term assessment (1993-2022), it remains 6th most affected globally. Key Findings from CRI 2025 Report Banking/Finance 1. RBI-NBFC Meeting Context: The heads of select NBFCs have put forward several recommendations to the RBI Governor, and senior officials, to enhance their access to funding due to the decline of bank funding to the sector. Discussions included external commercial borrowings (ECBs), liquidity support, debt market deepening, and regulatory changes. Key Highlights: Enhancement of External Commercial Borrowing (ECB) Limits An External Commercial Borrowing (ECB) is a foreign currency loan availed by an Indian company from a non-resident lender. It may be a bank loan, bond, or supplier or buyer credit. National Liquidity Facility for the NBFCs Multipurpose Reclassification of Gold Loan NBFCs Deepening the Domestic Debt Capital Market Deepening the Domestic Debt Capital Market Background and Regulatory Context Dwindling Bank Funding for NBFCs Unified Lending Interface (ULI) Initiatives by the RBI ULI was designed by RBIH and co-designed with the Reserve Bank of India (RBI). ULI is a technological platform designed for easy access to verified data across sources, using standardised APIs to which any lender can attach seamlessly using a ‘plug and play’ strategy. 2. The Income Tax Bill, 2025 introduced in the Lok Sabha Context: The Income Tax Bill, 2025 was introduced in the Lok Sabha by Union Finance Minister Nirmala Sitharaman, who sought the passage to the Speaker to constitute a Select Committee to assess the legislation. The bill seeks to simplify tax laws, regarding reduction of sections, removal of redundancy, and consolidation of key provisions. While opposing members raised doubts about the requirement of a new law, the government stood its ground on its necessity. Key Features: Section Wise Mapping of Old and New Laws Reference to Past Direct Tax Codes 3. RBI Expected to Expand OMO Purchases Context: The bond market anticipates an expansion in the Reserve Bank of India’s (RBI) Open Market Operation (OMO) purchases due to persistent liquidity shortages. The liquidity deficit has remained around â‚ą2 trillion for the past eight weeks, prompting expectations of increased intervention by the central bank. Key Highlights: 4. SEBI Seeks Greater Powers to Curb Unauthorised Financial Advice on Social Media Context: India’s market regulator, SEBI (Securities and Exchange Board of India), has again sought broader powers from the government to remove unauthorised financial advice from platforms like WhatsApp and Telegram and to access call records for investigating market violations. The request, pending since 2022, comes amid increasing concerns over unregulated financial tips and market manipulation circulating on social media. Key Highlights: Economy 1. India’s Economic Strategy Context: The Economic Survey 2024-25 has been quite frank in recognizing the reality of global drift toward geo economic fragmentation (GEF) and how that overseas has actually brought the curtain down on the globalization boom. With a future of slowing international trade and increasing protectionism, India is moving into a domestic driven growth strategy rather than an export led measure for the development of its economy. Key Highlights: Globalization’s Decline and Protectionism’s Rise India Moving Towards Domestic Led Growth Reducing Dependence on China Industrial Policy & Protectionism Making a Comeback Recasting Structural Reforms Uncertain Global Scenario & The Small Need for Increased Public Investment India is now fast moving toward becoming self sufficient and domestic
