Daily Current Affairs Quiz10 January, 2026 International Affairs 1. Greenland Context: The proposal by US President Donald Trump to acquire Greenland has resurfaced, drawing strong opposition from Denmark and European allies due to sovereignty concerns and international law constraints. Geography & Location Political Status Geological Features & Resources Legal Constraints National Affairs 1. US Considers 500% Tariffs on Russian Oil Buyers Source: TH Context: The United States is reviewing a bipartisan proposal—the Sanctioning Russia Act of 2025—that would allow tariffs of up to 500% on countries continuing to import Russian energy, including India. The move follows US President Donald Trump’s support for the bill, aimed at curbing Russia’s revenues funding its war in Ukraine. Background Key Features of the Sanctioning Russia Act, 2025 2. UIDAI Launches Aadhaar Mascot ‘Udai’ Source: News on Air Context: The Unique Identification Authority of India (UIDAI) has introduced ‘Udai’ (उदय), an official mascot for Aadhaar, aimed at making Aadhaar-related information more relatable, human-friendly, and accessible to citizens. Purpose Udai serves as a resident-facing communication companion, simplifying public understanding of Aadhaar services and promoting responsible usage. It is designed to enhance trust, improve clarity, and standardise communication for over a billion residents. Organisation Involved Key Features 3. PANKHUDI Portal Source: TNIE Context: The Union Minister has launched PANKHUDI, an integrated digital platform designed to enhance ease of living for women and children by streamlining CSR partnerships and stakeholder collaboration. Ministry Involved Aim Key Features 4. India–AI Impact Summit 2026 Source: PIB Context: India has announced the India–AI Impact Summit 2026, scheduled for 19–20 February 2026 in New Delhi. This will be the first-ever global AI summit hosted in the Global South, positioning India as a hub for shaping inclusive and development-oriented artificial intelligence governance. Purpose The summit is a high-level multilateral forum, announced by the Prime Minister at the France AI Action Summit, aimed at advancing responsible, equitable, and inclusive AI cooperation, with a particular focus on Global South priorities. Key Features 5. National IED Data Management System (NIDMS) Launched Source: News on Air Context: Union Home Minister Amit Shah inaugurated the National Improvised Explosive Device Data Management System (NIDMS), a first-of-its-kind national digital platform that compiles data on all bomb blasts and IED incidents in India since 1999. What is NIDMS? NIDMS is a secure, centralised database designed to enable systematic analysis of bomb explosion-related incidents across the country. It integrates previously siloed datasets to support counter-terrorism investigations and strategic planning. Key Objectives Institutional Framework Core Features 6. DRDO Conducts Key Test for Hypersonic Missile Programme Source: TOI Context: The Defence Research and Development Organisation (DRDO) has achieved a major milestone in India’s hypersonic missile development programme through a successful long-duration ground test of a critical propulsion component. Key Development Scramjet Technology 7. Battery Energy Storage Systems (BESS) Source: Mint Context: With battery energy storage systems (BESS) emerging as a key pillar of India’s renewable energy transition—covering both grid-scale storage and electric mobility—the government is exploring a ₹500-crore allocation in the FY27 Budget to strengthen domestic testing, certification, and R&D infrastructure. Battery Energy Storage Systems (BESS) Objectives of the Initiative Banking/Finance 1. SEBI Excludes Small Brokers from Technical Glitch Framework Source: Mint Context: The Securities and Exchange Board of India (SEBI) has revised its technical glitch reporting framework, exempting smaller stock brokers from certain compliance requirements. Key Highlights: 1. Scope and Applicability 2. Glitch Classification and Exemptions Not all system issues are reportable: 3. Reporting Requirements 2. Unclaimed Deposits Context: The Finance Ministry will review the progress made by Public Sector Banks (PSBs) in settling unclaimed bank deposits and assets at a high-level meeting scheduled for January 14. Unclaimed Deposits Regulatory Oversight: 3. Offsite Monitoring and Surveillance (OSMOS) Source: TH Context: The Reserve Bank of India (RBI) plans to strengthen offsite supervision of banks in real-time, moving beyond traditional onsite inspections. This was highlighted by RBI Governor Sanjay Malhotra at the Third Annual Global Conference of the College of Supervisors, Mumbai. Current Supervision Framework Offsite Monitoring and Surveillance (OSMOS) Purpose: Key Features of OSMOS 4. SEBI Tightens Merchant Banking Norms Source: Mint Context: The Securities and Exchange Board of India (SEBI) has introduced stringent new regulations for merchant bankers, effective 3 January 2026, aimed at pruning inactive players, strengthening balance sheets, and reducing systemic risk. Merchant Bankers Regulator: New Regulatory Requirements 5. Axis Finance Launches Vyapar Business Loan for MSMEs Source: BL Context: On 8th January 2026, Axis Finance Limited (AFL), a wholly owned NBFC subsidiary of Axis Bank, launched the ‘Axis Finance Vyapar Business Loan’. It is a collateral-free credit solution aimed at Micro and Small Enterprises (MSEs) in semi-urban and rural India. About Vyapar Business Loan Other Initiative by Axis Bank Facts To Remember 1. Varanasi ‘Tent City’ Violated Environmental Norms: NGT Context: The National Green Tribunal (NGT) has ruled that the ‘Tent City’ set up on the Ganga riverbed in Varanasi, Uttar Pradesh, and inaugurated by the Prime Minister in January 2023, was established and operated in violation of environmental laws. About IATA 2. IREDA Secures ‘Excellent’ Rating in MoU Performance with MNRE Organisation: Indian Renewable Energy Development Agency (IREDA), under Ministry of New & Renewable Energy (MNRE)Achievement: “Excellent” rating, score: 96.42/100 for FY25 in MoU performance with MNRE. 3. MeitY Inaugurates ‘Param Shakti’ Supercomputing Facility at IIT Madras Event: Inauguration of Param Shakti, state-of-the-art supercomputing facilityPlace: IIT Madras, Chennai, Tamil NaduInaugurated By: Shri S. Krishnan, Secretary, MeitY 4. Book on Life of President Droupadi Murmu Released Event: Release of biography ‘Agni Sarassulo Vikasinchina Kamalam Droupadi Murmu’Date: January 2026Place: Andhra University, Visakhapatnam, Andhra PradeshAuthor: Former MP Yarlagadda Lakshmi PrasadReleased By: Lakshmamma, a sanitation worker – symbolic of empowerment 5. Pravasi Bharatiya Divas (PBD) – 9 January Event: Observance of Pravasi Bharatiya Divas (PBD)Date: 9th January (biennial)Purpose: Honors contributions of the overseas Indian community; marks Mahatma Gandhi’s return from South Africa in 1915Organizer: Ministry of External Affairs (MEA)Format: Biennial convention since 2015Next Convention: 2027 (19th edition) 6. Ensure All Calls Are from 1600-Series Numbers: IRDAI to Insurers The Insurance Regulatory and Development

Daily Current Affairs Quiz09 January, 2026 National Affairs 1. UN DESA Pegs India’s Growth at 7.2% in FY 2025–26 Source: TH Context: The United Nations Department of Economic and Social Affairs (UN DESA) has projected India’s GDP growth at 7.2% in FY 2025–26, broadly in line with the Union government’s estimate of 7.4%, despite rising global trade uncertainties, particularly from U.S. tariffs. The projection was made in the World Economic Situation and Prospects 2026 report. Key Drivers Supporting India’s Growth According to UN DESA, India’s growth momentum will be sustained by: 1. Resilient Domestic Consumption 2. Robust Public Investment 3. Supply-Side Expansion Medium-Term Growth Outlook The report projects a gradual moderation in growth over the medium term: Period Growth Projection Calendar Year 2025 7.4% FY 2026–27 6.6% FY 2027–28 6.8% 2. Centre to Launch Nationwide Cashless Treatment Scheme for Road Accident Victims Source: TH The Government of India is set to launch a nationwide cashless treatment scheme for road accident victims, aimed at reducing fatalities through timely medical intervention during the critical ‘Golden Hour’. The scheme is expected to be launched soon by Narendra Modi, according to Nitin Gadkari. Key Features of the Scheme 1. Cashless Medical Treatment 2. Funding Mechanism 3. Incentive for ‘Good Samaritans’ 3. Textiles Ministry Signs MoUs with 15 States Under Tex-RAMPS Scheme Source: TH Context: The Ministry of Textiles has signed MoUs with 15 States under a new scheme called Tex-RAMPS (Textiles focused Research, Assessment, Monitoring, Planning and Start-Up). The agreements were signed during a national textile ministers’ conference held in Guwahati, which focused on strengthening India’s textile sector. What is Tex-RAMPS? Tex-RAMPS stands for Textile Research, Advanced Manufacturing, and Processing Scheme.It is a Central Government scheme aimed at strengthening research, innovation, and advanced manufacturing in India’s textile sector. Ministry Implemented by the Ministry of Textiles, Government of India. Objective The scheme aims to: Key Focus Areas 4. 79th Foundation Day of the Bureau of Indian Standards (BIS) Context: The 79th Foundation Day of the Bureau of Indian Standards (BIS) was celebrated recently.On the occasion, the Union Minister highlighted that BIS is moving from a purely regulatory role to a more facilitative approach, in line with: About Bureau of Indian Standards (BIS) Establishment & Legal Framework New Initiatives Launched by BIS 1. BIS Standardisation Portal (Beta Launch) 2. SHINE – Standards Help Inform & Nurture Empowered Women 3. BIS–SAKSHAM 5. Uttarakhand Police Tops ICJS 2.0 Rankings Source: BS Context: Uttarakhand Police secured first rank in the ICJS 2.0 national rankings, while the Uttarakhand State Disaster Response Force (SDRF) was commended for its exemplary service during Prayagraj Mahakumbh-2025. About ICJS 2.0 Key Points: Banking/Finance 1. RBI Cancels Registration of 35 NBFCs Source: News on Air Context: The Reserve Bank of India (RBI) has cancelled the Certificate of Registration (CoR) of 35 Non-Banking Financial Companies (NBFCs) for non-compliance with regulatory requirements. Key Details: Reasons for Cancellation: About NBFCs: 2. GDP Likely to Grow 7.4% in FY26 Source: IE Context: India’s economy is expected to grow by 7.4% in FY 2025–26, according to the National Statistics Office (NSO).This is higher than FY25’s growth of 6.5%, showing that the economy remains strong despite global challenges. Real vs Nominal GDP The gap between the two is very small (0.6%), which means inflation is extremely low. In fact, the GDP deflator is just 0.5%, the lowest in nearly 50 years.Because of this low inflation, nominal growth is the slowest since the COVID year (FY21). Why Growth May Slow in the Second Half The estimates assume: This slowdown is mainly due to: What Is Driving the Economy? 1. Investment Is Improving 2. Consumption Is Mixed 3. EPFO to Allow Instant PF Advance Withdrawal via BHIM App Source: ET Context: The Employees’ Provident Fund Organisation (EPFO) will soon allow its members to withdraw provident fund (PF) advances instantly through the BHIM app, likely within the next 2–3 months. This move is part of EPFO’s digital overhaul to improve ease of access for its 30+ crore members and manage its large corpus of over ₹26 lakh crore more efficiently. How Will the New Facility Work? 4. SEBI Introduces New Compliance Reporting Format for SIFs Source: ET Context: The Securities and Exchange Board of India (SEBI) has introduced a new compliance reporting format to ensure uniform and stricter reporting for Specialised Investment Funds (SIFs) managed by mutual funds and asset management companies (AMCs). What Has Changed? What AMCs Must Now Report AMCs managing SIFs must disclose additional details, including: What are Specialised Investment Funds (SIFs)? Key Features of SIFs Agriculture 1. Government Proposes New Law to Regulate Pesticides Source: TH Context: The Ministry of Agriculture and Farmers Welfare has asked the public for feedback on a draft Pesticides Management Bill, which will replace the old Insecticides Act of 1968. The aim of the new Bill is to make sure that pesticides used in India are safe, effective, and environmentally responsible Why Is a New Law Needed? The existing law is over 55 years old and does not fully address: The new Bill updates regulation to suit current scientific and agricultural needs. What Does the Draft Bill Cover? The Bill will regulate every stage of a pesticide’s life cycle, including: The goal is to ensure that only safe and effective pesticides are available to farmers and consumers. What Is a ‘Pesticide’ Under the New Bill? The Bill defines pesticides very broadly. It includes: This wide definition helps close loopholes in regulation. Focus on Safety and Environment The Bill aims to: New Regulatory Bodies Proposed 1. Central Pesticides Board 2. Registration Committee Strict Punishment for Serious Harm If a pesticide causes death or grievous injury, the Bill provides for: This is meant to improve accountability and deterrence. Facts To Remember 1. Trump Clears Bill Allowing Up to 500% Tariffs on Buyers of Russian Oil In a significant escalation of pressure on countries importing Russian energy, Donald Trump has cleared a bipartisan Russia Sanctions Bill that would empower the U.S. President to impose punitive tariffs of up

Daily Current Affairs Quiz08 January, 2026 National Affairs 1. ISRO to Launch EOS-N1 Earth Observation Satellite Source: TH Context: The Indian Space Research Organisation (ISRO) is set to carry out its first mission of 2026 with the launch of the PSLV-C62 / EOS-N1 mission on January 12, 2026, at 10:17 AM IST. The launch will take place from the Satish Dhawan Space Centre, Sriharikota. About the EOS-N1 Satellite Launch Vehicle & Mission Profile 2. India’s Progress on its Climate Targets Source: TH Context: Recent analyses show that India is doing well on some climate promises, but big challenges remain, especially on coal use and total emissions. What are India’s climate targets? India’s climate goals come from its Nationally Determined Contribution (NDC) under the Paris Agreement.They are based on the idea that developing countries need space to grow while still acting on climate change. India’s main targets (by 2030): Where India is doing well 1. Emissions intensity reduction — On track 2. Non-fossil power capacity — Target achieved early 3. Renewable energy growth — Strong but uneven Where the real problems lie 1. Absolute emissions are still rising 2. Heavy dependence on coal continues 3. Weak storage & grid infrastructure 4. Forest carbon sink quality is questionable 3. New Species Discovered in India (2025) Context: In December 2025, Indian scientists announced the discovery of several new species across diverse ecosystems, ranging from the Eastern Himalayas to the Western Ghats and Northeast India. These findings highlight India’s rich biodiversity and the importance of habitat conservation. Key New Species Discovered 1. Bridgeoporus kanadii – Colossal Fungi 2. Rhinophis siruvaniensis – Siruvani Shieldtail Snake 3. Neelus sikkimensis – High-Altitude Springtail 4. Parasynnemellisia khasiana – Bamboo Forest Fungus 5. Dolomedes indicus – Indian Fishing Spider 6. Ophiorrhiza mizoramensis – Coffee Family Plant 4. National Intelligence Grid (NATGRID) Context: Recent reports point to a major expansion of the National Intelligence Grid (NATGRID), including its integration with the National Population Register (NPR) and wider access for State police, reviving debates on privacy, oversight, and surveillance in India. What is NATGRID? National Intelligence Grid (NATGRID) is a technology-based intelligence-sharing platform created after the 26/11 Mumbai terror attacks to overcome information silos among security agencies. Core Idea Key Features of NATGRID Recent Expansion of NATGRID 1. Integration with NPR 2. Wider State-Level Access 3. AI Tool – GANDIVA 5. India becomes first country to commercially produce bio-bitumen Source: News on Air Context: India has become the first country in the world to commercially produce bio-bitumen for road construction, marking a major milestone in green infrastructure and sustainable transport. What is Bio-bitumen? Bio-bitumen is a bio-based alternative to conventional petroleum bitumen, used as a binding material in road construction. Institutions involved Key features of Bio-bitumen 6. ISRO’s EOS-N1 (Anvesha) Mission Source: TOI Context: The Indian Space Research Organisation (ISRO) will begin 2026 with the PSLV-C62 mission, which will launch the advanced Earth Observation Satellite EOS-N1, also known by its codename “Anvesha”, along with 18 co-passenger payloads. The launch will take place from Sriharikota in January 2026. What is EOS-N1 (Anvesha)? Launch Details 7. Union Minister Dharmendra Pradhan Releases 55 Literary Works in Classical Indian Languages Source: TH Context: On 6 January 2026, Dharmendra Pradhan, Union Minister for Ministry of Education, released 55 scholarly literary works in classical Indian languages at an event in New Delhi.The initiative aims to promote India’s rich linguistic heritage and ensure wider and more inclusive access to classical knowledge. Languages Covered The released works include texts in: In addition, an Indian Sign Language (ISL) interpretation of the Tirukkural was also launched. Publications by CIIL Out of the 55 works, 41 books were prepared by the Centres of Excellence for Classical Languages under the Central Institute of Indian Languages (CIIL), Mysuru, an autonomous body under the Ministry of Education. These books focus on Classical Kannada, Telugu, Malayalam, and Odia.Notable releases include: These translations aim to make classical literature accessible to a wider audience. 8. NITI Aayog Launches 5th Edition of Trade Watch Quarterly Source: News on Air Context: In January 2026, NITI Aayog released the 5th edition of the Trade Watch Quarterly (TWQ) report for Q1 (April–June 2025) of FY26.The report was launched in New Delhi by Arvind Virmani, Member, NITI Aayog. The report provides a data-driven assessment of India’s trade performance amid changing global economic conditions. Key Highlights of the Report Focus Area: Automotive Exports Auto-Components Market Automotive Exports Performance Global Trade Trends India’s Trade Numbers (Q1 FY26) Banking/Finance 1. Federal Bank Unveils Refreshed Brand Identity ‘The Fortuna Wave’ Context: On January 7, 2026, Federal Bank launched a refreshed brand identity called ‘The Fortuna Wave’ in Mumbai, Maharashtra.The launch took place in the presence of Vidya Balan, the brand ambassador of the bank. The rebranding reflects the bank’s focus on modernisation, digital readiness, and future growth. About ‘The Fortuna Wave’ About Federal Bank 2. RBI Proposes 3-Year Cooling-Off Period for Co-operative Bank Directors Context: The Reserve Bank of India (RBI) has proposed that directors of co-operative banks must take a 3-year break after completing 10 continuous years on the board. Key Points Legal Background 3. RBI Considering New Relief Measures for Exporters Context: The Reserve Bank of India (RBI) is thinking about new ways to support Indian exporters who are facing losses due to high U.S. import tariffs. This comes after an earlier RBI relief measure — a loan repayment moratorium — saw very low participation. What Is the Problem Exporters Are Facing? Recently, Donald Trump also warned that tariffs could rise further if India does not reduce Russian oil imports. What Relief Did RBI Offer Earlier? Why Didn’t It Work? Earlier Measure (November) Outcome What New Options Is RBI Considering? RBI is now exploring: Bankers have also suggested that: 4. SEBI Extends Timeline for Mutual Fund Distributor Incentives Source: Mint Context: The Securities and Exchange Board of India (SEBI) has extended the deadline to 11 March for implementing an additional incentive structure for mutual fund (MF) distributors. Earlier, this new incentive system was supposed

Daily Current Affairs Quiz06 & 07 January, 2026 National Affairs 1. Unlawful Activities (Prevention) Act – UAPA Source: The Hindu Context: The Supreme Court refused bail to Umar Khalid and Sharjeel Imam in the 2020 Delhi riots case. Unlawful Activities (Prevention) Act – UAPA The Unlawful Activities (Prevention) Act (UAPA) is India’s main anti-terror law.Its purpose is to protect the sovereignty, unity, and security of India by preventing activities linked to terrorism, secession, and unlawful organizations. Why was UAPA made? What does UAPA do? 1. Defines “Unlawful Activities” Any action that: 2. Deals with Terrorist Activities UAPA covers: 3. Bans Organizations 4. Individuals Can Be Declared Terrorists (After 2019 amendment) 5. Special Powers to Investigating Agencies Legal basis used 2. ICGS Samudra Pratap Commissioned Source: TH What is the news? The Indian Coast Guard (ICG) has commissioned ICGS Samudra Pratap, the first of two indigenously designed Pollution Control Vessels (PCVs), significantly enhancing India’s maritime pollution response and safety capabilities. Key highlights Built by Goa Shipyard Limited, it is: Capabilities of ICGS Samudra Pratap 3. India launches e-Production Investment Business Visa (e-B-4) for Chinese nationals Source: TH What is the news? India has introduced a new e-Production Investment Business Visa (e-B-4 Visa) for Chinese nationals, allowing them to travel to India for specific business and investment-related activities. Key features of the e-B-4 Visa Permitted activities The e-B-4 Visa allows travel for: The visa is tailored for manufacturing and production ecosystems, rather than general tourism or employment. 4. Aditya-L1 Solar Mission Source: The Hindu What is the news? On the second anniversary of Aditya-L1 reaching the Sun–Earth Lagrange Point-1 (L1), the Indian Space Research Organisation (ISRO) has released an Announcement of Opportunity (AO) inviting Indian scientists to submit proposals for the first AO cycle observations using Aditya-L1 data About Aditya-L1 mission Why is the L1 point important? What is the Announcement of Opportunity (AO)? 5. Ministry Proposes Doubling Auto PLI Allocation to ₹5,800 Crore Source: TH What is the news? The Ministry of Heavy Industries (MHI) has proposed doubling the allocation for the Production Linked Incentive (PLI) scheme for automobiles and auto components to ₹5,800 crore in the upcoming financial year. About the Auto PLI Scheme Key features 6. Somnath Temple Context: The Prime Minister of India highlighted the thousand-year survival of the Somnath Temple, marking 1,000 years since the 1026 CE attack by Mahmud of Ghazni, underscoring the temple’s civilisational resilience and cultural continuity. About the Somnath Temple The Somnath Temple is one of the 12 sacred Jyotirlingas of Lord Shiva, revered across Hindu traditions. It is popularly known as the “Eternal Shrine” due to its repeated destruction and reconstruction over centuries. Location Historical Evolution Ancient Origins 1026 CE: Mahmud of Ghazni’s Attack Medieval Reconstructions This repeated cycle reinforced Somnath’s image as a symbol of resilience and faith. Modern Reconstruction Architectural Features 7. India Inaugurates National Environmental Standard Laboratory (NESL) Source: PIB Context: India has inaugurated the world’s second National Environmental Standard Laboratory (NESL) at CSIR–National Physical Laboratory (NPL), New Delhi, strengthening the country’s environmental monitoring and standards ecosystem. Alongside, India also operationalised the world’s fifth National Primary Standard Facility for Solar Cell Calibration. About National Environmental Standard Laboratory (NESL) The National Environmental Standard Laboratory (NESL) is an apex national facility for: of air pollution monitoring instruments, specifically validated under Indian climatic and environmental conditions. Location Institutions Involved 8. PM Inaugurates Grand International Exposition of Sacred Piprahwa Relics Source: News on Air Context: On January 3, 2026, Prime Minister Narendra Modi inaugurated the Grand International Exposition of Sacred Piprahwa Relics titled “The Light and the Lotus: Relics of the Awakened One” in New Delhi. What are the Piprahwa Relics? The Piprahwa relics are believed to be mortal remains of Lord Buddha, discovered in 1898 at Piprahwa (present-day Uttar Pradesh). 9. India Develops 3D-Printed Automatic Weather Stations under Mission Mausam Context: In January 2026, Indian scientists led by Indian Institute of Tropical Meteorology (IITM), Pune, developed India’s first 3D-printed Automatic Weather Stations (AWS) under Mission Mausam. What is Mission Mausam? Mission Mausam is a national initiative led by the India Meteorological Department (IMD) to: What are Automatic Weather Stations (AWS)? AWS are unmanned systems that automatically measure and transmit: They send real-time data to weather centres for forecasting and alerts. Banking/Finance 1. TMB Partners with TechFini to Strengthen UPI Infrastructure Context: On January 5, 2026, Tamilnad Mercantile Bank (TMB) entered into a strategic partnership with TechFini to enhance its UPI acquiring and issuing capabilities. UPI (Unified Payments Interface) UPI is a real-time digital payment system developed by the National Payments Corporation of India (NPCI) that allows instant bank-to-bank money transfers using a mobile phone. Who launched UPI? UPI Autopay & Lending Automation TechFini UPI Platform – Features 2. SEBI Proposes New Norm for Sharing Price Data for Educational Use Source: The Hindu What is the news? The Securities and Exchange Board of India (SEBI) has proposed a revised framework for sharing price data for educational purposes, introducing a 30-day time lag to balance data security with academic relevance. What is the proposed change? New proposal Current regulation Why is SEBI proposing this change? SEBI cited stakeholder feedback and internal deliberations: 3. RBI Draft Rules to Tighten Dividend Payouts by Banks Source: TOI What is the news? The Reserve Bank of India (RBI) has issued draft rules to tighten dividend payouts by banks, linking distributions to capital adequacy, asset quality, and profit quality. The uniform prudential framework will be effective from FY27. Why has RBI moved this proposal? Who will be covered? Included Excluded Key Elements of the Draft Framework 1. Capital Adequacy-Based Restrictions Capital Adequacy Ratio is a measure of a bank’s financial strength. It shows how much capital a bank has to absorb losses compared to the risk in its assets (mainly loans). Banks will be permitted to distribute dividends only if they meet minimum regulatory capital ratios, including buffers, both before and after dividend payout. This ensures that capital levels are not weakened due to shareholder distributions. 2. Asset