Daily Current Affairs Quiz5 December, 2025 National Affairs 1. DHRUVA (Digital Hub for Reference and Unique Virtual Address) Source: TH Context: The Department of Posts has released a draft amendment in 2025 proposing DHRUVA (Digital Hub for Reference and Unique Virtual Address), a UPI-like digital addressing system. This system aims to digitise, standardise, and virtualise physical addresses across India, allowing users to share secure, consent-based address “labels” such as name@entity. Key Features of DHRUVA UPI-Like Address Labels Consent-Based Access DIGIPIN Backbone Address-as-a-Service (AaaS) Framework Aim of DHRUVA 2. Shift in Stubble-Burning Timing in Punjab and Haryana: ISRO Source: IE Context: A new ISRO study has revealed that peak stubble-burning activity in Punjab and Haryana has shifted from early afternoon to early evening between 2020 and 2024, resulting in possible underestimation of farm-fire incidents by government data that rely mainly on polar-orbiting satellites. Key Findings from the ISRO Study Government Monitoring and Enforcement Impact on Farm-Fire Incidence 3. BNHS to Release Critically Endangered Vultures in Assam Source: TH Context: The Bombay Natural History Society (BNHS) will release six critically endangered vultures—slender-billed (Gyps tenuirostris) and white-rumped (Gyps bengalensis)—into the wild in Assam in January 2026. This is part of India’s ongoing vulture recovery programme, aimed at conserving these species that have faced severe population declines over the past two decades. Slender-billed Vulture (Gyps tenuirostris) White-rumped Vulture (Gyps bengalensis) 4. New Flight Duty Time Limitations (FDTL) Rules Source: TOI Context: The Indian aviation sector is witnessing large-scale flight cancellations and delays, particularly at IndiGo, following the implementation of Flight Duty Time Limitations (FDTL) rules. The new norms, aimed at reducing pilot fatigue, have led to crew shortages and stricter compliance requirements for airlines. What Are Flight Duty Time Limitations (FDTL)? Key Features of FDTL Rules 5. Exercise Garuda and Exercise Garuda Shakti Context: Two major military exercises were recently in focus: These exercises aim to strengthen bilateral defence cooperation, enhance interoperability, and expose forces to advanced operational tactics. Exercise Garuda 25 Exercise Garuda Shakti 2025 Banking/Finance 1. RBI Cuts Repo Rate to 5.25% Source: Mint Context: The Reserve Bank of India (RBI) reduced the repo rate by 25 basis points (bps) to 5.25%, citing a rare macroeconomic situation where growth is strong and inflation is exceptionally low. The move surprised sections of the market that expected the Monetary Policy Committee (MPC) to hold rates. Why the Repo Rate Was Cut 1. Benign and Rapidly Falling Inflation 2. Robust GDP Growth 3. Policy Space + Low Inflation = Opportunity Governor Sanjay Malhotra termed this a “rare goldilocks period” where inflation is low and growth is stable, enabling policy action to support momentum. Impact of the Repo Rate Cut 1. Impact on Banks 2. Impact on Borrowers 3. Impact on Economy 4. Impact on Inflation What is Repo Rate? Repo Rate is the rate at which the RBI lends short-term money to commercial banks against government securities. Why Repo Rate Matters What is Reverse Repo Rate? Reverse Repo Rate is the rate at which commercial banks park their surplus funds with RBI. Why It Matters 2. LIC Launches New Insurance Plans: Protection Plus and Bima Kavach Source: TNIE Context: The Life Insurance Corporation of India (LIC) has launched two new life insurance plans aimed at providing savings and risk coverage to individuals and their families. Key Features: 3. Fino Payments Bank Receives RBI Nod to Convert into Small Finance Bank (SFB) Source: BS Context: Fino Payments Bank Ltd. has received ‘in-principle’ approval from the Reserve Bank of India (RBI) to convert into a Small Finance Bank (SFB). First Payments Bank to Secure SFB Conversion Nod What Conversion to SFB Enables After full authorization, Fino will be able to: Eligibility to Become a Small Finance Bank (SFB) As per RBI’s “on-tap” licensing guidelines, the following criteria must be met: 1. Existing Entity Requirements 2. Operations & Compliance Track Record 3. Capital Requirements 4. Priority Sector & Financial Inclusion Focus 5. Branch Expansion Rules 4. Bank Net Interest Margins (NIMs) Source: BS Context: Following the RBI’s repo rate cut of 25 bps in December 2025, scheduled commercial banks are expected to experience further compression in Net Interest Margins (NIMs). This comes amid a high credit-deposit (CD) ratio and slower adjustment of deposit rates compared to lending rates. Net Interest Margins (NIMs) Net Interest Margin (NIM) is a key financial metric used in banking that measures how profitable a bank is in terms of generating income from its lending activities relative to the interest it pays on deposits and borrowings. It tells how effectively a bank is earning from its core business — lending and investing, compared to what it pays out as interest to depositors and lenders. Formula NIM = (Interest Earned – Interest Expended) ÷ Average Interest-Earning Assets × 100 Why NIMs Matter 1. Indicator of Bank Profitability Higher NIM means the bank earns more margin from lending versus what it pays on deposits. 2. Reflects Efficiency of Banking Operations Shows how well a bank manages its interest rate risk, asset–liability mix, and pricing strategy. 3. Impacts Overall Net Profit A bank with stronger NIMs usually reports better Net Interest Income (NII) and stronger bottom-line growth. 5. RBI Tightens Rules for Foreign Banks to Reduce Concentration Risk Source: Mint Context: The Reserve Bank of India (RBI) has introduced stricter norms for foreign banks operating in India by tightening exposure rules under the Large Exposures Framework (LEF). The amendments aim to curb concentration risk, ensure greater transparency, and strengthen the risk management practices of foreign lenders. Key Changes: No More Exemptions for Overseas Branch Exposures Stricter Intragroup Exposure Rules Gross Basis Calculation for All Transactions Effective Date and Early Adoption Why RBI Tightened the Rules 6. Large Exposures Framework (LEF) Large Exposures Framework (LEF) is an RBI regulation designed to limit the concentration of credit risk in the banking system. It ensures that banks do not take excessively large exposures to a single borrower or a group of connected borrowers. It aligns India with the Basel