Context: The Union Cabinet has finally given its nod to the new Income Tax Bill, which is going to be introduced in Parliament next week. The Bill envisages the key issues of simplication, removing complexity, and creating more clarity while retaining the fundamental principles of taxation. Key Highlights: Reducing Complexity Power Distribution & Legislative Control Transparency & Public Consultation Parliamentary Review Process
NDS-OM Platform
Context: The Reserve Bank of India has decided that registered non banking brokers with SEBI would be permitted access to the NDS-OM platform in order to enable them to trade and access government securities. The move is a step to enhance retail participation in government securities and thereby improve liquidity in the secondary market. Key Highlights: What is the NDS OM Platform? RBI New Guidelines …. 3. Expected Impact on Retail Participation Credit: The Hindu
Expected Credit Loss (ECL)
ECL is the technique by which financial institutions and companies predict potential financial loss arising from a customer’s inability to pay. It gives the estimate of expected losses on loans or financial assets based on probabilities.
Liquidity Coverage Ratio (LCR)
Context: The RBI has postponed the implementation of the proposed Liquidity Coverage Ratio (LCR) guidelines to at least March 31, 2026, from April 1, 2025. This gives banks more time to adjust and prevent disruption. In addition, there is no fixed timeline for Expected Credit Loss (ECL) and project finance norms, so it will ensure a more balanced regulatory approach. Liquidity Coverage Ratio (LCR) The LCR is one of the most significant financial metrics that indicates a bank’s ability to meet short term liabilities. It makes sure banks are sufficiently exposed to HQLA in order to survive any form of financial stress for 30 days. The LCR must be at 100% and above. Calculation The formula for Liquidity Coverage Ratio (LCR) is: LCR = ⇒ High Quality Liquid Assets (HQLA) / Total Net Cash Outflows × 100 Where: For example, if a bank’s HQLA is ₹500 crore and its total net cash outflows are ₹400 crore, the LCR would be: LCR = (500 / 400) × 100 = 125% Key Highlights of RBI’s Announcement Sources: Business Standard
RBI Cuts Repo Rate
Context: The Reserve Bank of India (RBI) cut the policy repo rate by 25 basis points to 6.25%, the first cut in almost five years, driven by weakening inflation and slowing economic growth. Key takeaways from the policy announcement, its economic implications, and the market reaction are as follows: Key Takes of the RBI Verdict Why Rate Cut? Key Regulatory Announcements Rate Cut Implications The RBI is actually playing the game of juggling between supporting growth and containing inflation. In doing so, however, the market reaction to the move remains muted in that the market has priced the move, or is careful on future uncertainties regarding the economy. The central bank remains bullish about India’s long term 7%+ growth potential, nonetheless, challenges related to growth are persistent over the near term. Source: Business Standard
Biomanufacturing Under BioE3 Policy
Context: DBT engages in a discussion with States over establishing biomanufacturing facilities for setting up an enterprise under BioE3 policy. Approved by the Union Cabinet in August 2024, BioE3 will develop the Indian scenario in the aspect of biotechnology manufacturing across states. What is Biomanufacturing? Key Highlights from the Consultation Challenges and State Perspectives
Olive Ridley Turtles
Context: A spate of Olive Ridley sea turtle deaths has been witnessed off Tamil Nadu’s coast. Fisherfolk and conservationists have recorded an unusually high number of carcasses stranding along the coast since January 2025. Conservationists had tallied 1,200 dead turtles more than three times the annual average. Olive Ridley Turtles: Ecological and Cultural Importance The second-smallest and most abundant in the Cheloniidae family. Possible Causes of Mass Deaths Government and Conservation Responses Challenges and the Way Forward UPSC Civil Services Examination, Previous Year Questions (PYQs) Prelims Q. Which one of the following is the national aquatic animal of India? (2015) (a) Saltwater crocodile (b) Olive ridley turtle (c) Gangetic dolphin (d) Gharial Ans: C Q. Consider the following statements: (2019) Which of the statements given above are correct? (a) 1 and 3 only (b) 2, 3 and 4 only (c) 2 and 4 only (d) 1, 2, 3 and 4 Ans: (d)
Theatre Level Operational Exercise (TROPEX)
Context: Indian Navy’s biennial capstone Theatre Level Operational Exercise (TROPEX) is under way in the Indian Ocean Region, in which the combined fleet, comprising approximately 65 Indian Navy ships, nine submarines, and over 80 aircraft, are being “put through complex maritime operational scenarios to validate and refine the Navy’s Concept of Operations”. TROPEX 25 TROPEX 25, the Indian Navy’s flagship Theatre Level Operational Exercise is underway in the Indian Ocean Region. It is a biennial exercise that involves all operational Indian Naval units and is participated upon by significant numbers from the IA, IAF, and the ICG to validate core warfighting capabilities and ensure a synchronized response to maritime security threats. Duration & Phases Key Highlights:
AI Technology
Context: It hugely transforms the very nature of the global industries, economies, and geopolitics. So, this field’s proper governance is extremally necessary now. India ranks among the most rapid adopters of AI technology in the entire world. Hence, its vibrant contribution to international initiatives for developing AI safety assures that the high-tech future can be made a safe one. India embraces AI so highly and it has a big population of users in AI and still, no national AI safety institute is in existence and this country hasn’t also joined global efforts to address crucial AI governance issues. Key Highlights: Dangers of Unchecked AI International AI Safety Programs and India’s Lack Cross Border Nature of AI and Necessity of International Collaboration. The Geopolitical Risks of AI Leverage AI governance strengths for India
The Global Trading System
Context: The international trading system has failed America and other trade deficit countries, mainly because free trade doesn’t truly exist. The global economy has become distorted by countries like China, Germany, and Vietnam, which manipulate policies to run chronic trade surpluses. This imbalance has led to massive economic consequences, including job losses, wage stagnation, and declining industrial competitiveness in the US and other deficit nations. Global Trading System The global trading system, also known as the international trading system, is a network of rules and agreements between countries that govern the import and export of goods and services. Key Highlights: The Failure of the Global Trading System The system hasn’t failed because free trade doesn’t work, but because true free trade has never existed. Effects on the US and other Deficit Countries The transfer of US wealth overseas would total $20 trillion over 20 years The Human Cost: Wages, Inequality, and Declining Life Expectancy Millions of good paying jobs lost, leaving workers poorer. Real wages stagnated for two decades in many industries. The Demand for a New Trade Regime A system for democratic nations that are mostly free economies. Should find unity and implement a new fair trade. Proposed Solution: A Two Tier Tariff System
