Daily Current Affairs Quiz
1 & 2 June, 2025

International Affairs

1. Indus Waters Treaty at UN Glacier Conference

Context

At the first UN Conference on Glaciers in Dushanbe, Tajikistan, India strongly rebutted Pakistan’s claims over the Indus Waters Treaty (IWT), asserting that cross-border terrorism from Pakistan is the real impediment to the treaty’s implementation.

India’s Arguments at the UN Forum

• Changed circumstances since the signing of the treaty in 1960 justify a reassessment:
  • Technological advancements.
  • Demographic pressures.
  • Climate change.
  • Persistent cross-border terrorism.
• The treaty’s preamble emphasized “goodwill and friendship,” but:
  • “Unrelenting terrorism from Pakistan interferes with its provisions.”

Background: India's Suspension of the IWT

• India suspended the IWT on April 22, 2025, following the Pahalgam terrorist attack that killed 26 people.
• Suspension part of broader punitive measures against Pakistan post-Operation Sindoor.

About the Indus Waters Treaty

• Signed in 1960 by India, Pakistan, and the World Bank.
• Governs the distribution of the Indus river system waters.
• Considered one of the most successful transboundary water-sharing agreements.

Significance of the UN Glacier Conference

• Aimed at highlighting the role of glaciers in water security and ecological balance.
• Attended by 2,500 delegates from 80 countries and 70 international organizations.
• India used the platform to integrate climate resilience with geopolitical accountability.

TH

National Affairs

1. Osaka World Expo 2025

Context

At the ongoing World Expo 2025 in Osaka, Japan, India has taken a unique approach by emphasizing its soft power and civilisational heritage rather than solely technological advancements. The Expo runs from April 13 to October 13 under the central theme: “Designing Future Society for Our Lives.”

About the Osaka World Expo 2025

• A global exhibition held every five years to promote cross-cultural exchange and innovation.
• Focuses on addressing global challenges and achieving the UN Sustainable Development Goals (SDGs).
• Intended as a “Living Lab” for collaborative solution-building between nations.

India Pavilion: A Civilisational Experience

• Curated by the Indira Gandhi National Centre for the Arts (IGNCA).
• Described as an “immersive civilisational experience”, focusing on India’s ancient philosophies and global identity rooted in compassion and wisdom.
• IGNCA likened its role to that of a modern-day sutradhar (narrator)—connecting ancient traditions with contemporary aspirations.

Key Themes and Symbolism

• The pavilion’s central inspiration is ‘Bodhisattva Padmapani’ from the Ajanta Caves:
  • Symbol of compassion, enlightenment, and knowledge.
• Reflects India’s fusion of spiritual heritage and modern ambitions.
• Aligns with the sub-theme “Connecting Lives”, promoting values like:
  • Inclusivity
  • Sustainability
  • Progress

Highlights of India’s Soft Power Projection

• Presentation of India’s cultural renaissance through art, heritage, and philosophical storytelling.
• Integration of India’s space programme, showcasing its scientific achievements alongside spiritual legacy.

TH

2. Union Education Ministry Urges Jharkhand and Bihar to Address Unrecognised Schools

Context

The Ministry highlighted the large number of unrecognised private schools in Jharkhand and Bihar during the Project Approval Board (PAB) meetings in March and April 2025. These meetings discussed the Annual Work Plan and Budget for the Samagra Shiksha scheme (2025-26) under the chairmanship of Sanjay Kumar, Secretary (School Education and Literacy).

Data from UDISE+ (Unified District Information System for Education Plus)

• Jharkhand:
  • 5,879 unrecognised schools
  • 8,37,897 students enrolled
  • 46,421 teachers
• Bihar:
  • 4,915 unrecognised schools
  • 7,75,704 students enrolled
  • 42,377 teachers

What is an Unrecognised School?

• A private school operating without official government licence or recognition.

Legal Framework: Right to Education (RTE) Act Provisions

• Section 19 of RTE Act (2009) requires schools established before 2009 to comply with RTE norms within 3 years of the Act’s commencement.
• RTE Norms include:
  • Adequate infrastructure and maintenance
  • Prescribed teacher-student ratio
  • Qualified teachers
  • 25% reservation in Class 1 for economically weaker sections
  • Official government recognition
• Failure to meet norms leads to withdrawal of recognition and cessation of school operations.

What does Article 21A say?

• It guarantees free and compulsory education for children between the ages of 6 and 14
• It prohibits discrimination in education
• It ensures equal opportunities for education
• It removes financial barriers to education
• It provides adequate infrastructure, facilities, and qualified teachers

Right to Education Act (RTE) of 2009

The Right to Education Act (RTE) of 2009 guarantees free and compulsory education for children between the ages of 6 and 14.

• The RTE Act was effective from April 1, 2010.
• The RTE Act prohibits denial of admission to any child, irrespective of the time of year.
• The RTE Act also prohibits holding back or expulsion of any child until he completes elementary education.
• Globally
  • The Abidjan Principles on the Right to Education were adopted in 2019 by a committee of international human rights law experts.
  • The UN‘s Human Rights Council has passed a decision to establish a working group to consider the possibility of including early childhood care and education explicitly within the right to education.

Penalties for Non-Compliance

• Running a school after recognition is withdrawn may attract a fine of up to ₹1 lakh.
• Continuing violations may lead to a further fine of ₹10,000 per day until compliance.

TH

3. "NITI Aayog to Release National Brain Health Blueprint to Combat Rising Cognitive Disorders"

Context

NITI Aayog is in the final stages of drafting a National Brain Health Blueprint to address the rising burden of neurological and cognitive disorders in India. The blueprint will focus on early identification, prevention, and management of conditions like Alzheimer’s, Parkinson’s, epilepsy, and stroke.

Key Objectives

• Improve early diagnosis of cognitive disorders through dedicated brain health clinics.
• Strengthen healthcare delivery across primary, secondary, and tertiary levels.
• Bridge gaps in treatment access and affordability.
• Promote awareness and preventive interventions for dementia and other brain health conditions.

Stakeholders Involved

• NITI Aayog (lead policy maker)
• IBHAS, NIMHANS, AIIMS
• Mental health professionals and psychologists from private sector

Proposed Model

• Creation of a "Brain Health Service Model", similar to physical or digital mental health clinics.
• Professionals will be trained to identify early cognitive decline and reduce risk of dementia.
• Integration of services for lifestyle modification, affordability, and interventions (both digital and in-person).

4. NAKSHA (National Geospatial Knowledge-Based Land Survey of Urban Habitations) Programme

Why in News?

The Department of Land Resources (DoLR) under the Ministry of Rural Development, Government of India, launched the second phase of capacity-building under the NAKSHA (National Geospatial Knowledge-Based Land Survey of Urban Habitations) programme. This training phase begins 2nd June 2025 and will be conducted across five national Centres of Excellence (CoEs).

NAKSHA: Urban Land Records Digitization Initiative

NAKSHA (National Urban Digital Mission for Land Records) is a pioneering initiative launched in 2024 under the Digital India Land Records Modernization Programme (DILRMP). It aims to digitally create and update land records in urban areas, ensuring reliable ownership documentation and enabling transparent, dispute-free governance.

Key Features of NAKSHA

Purpose:

• Modernize urban land records through digital mapping and data integration.
• Provide legal proof of ownership for urban residents.

1. Pilot Programme:
   • Duration: 1 year
   • Coverage: 152 Urban Local Bodies across 26 States and 3 Union Territories
   • Post-Pilot: Nationwide rollout based on pilot's success.
2. Technical & Administrative Framework:
   • Survey of India: Conducts aerial surveys and supplies orthorectified imagery.
   • Madhya Pradesh State Electronics Development Corporation (MPSEDC): Developing an end-to-end web-GIS platform.
   • State-Level Committee (SLC): Formed under the Chief Secretary to monitor implementation.

Highlights of the Second Phase

• Objective: Equip 304 nominated ULB-level and district officers from 157 Urban Local Bodies (ULBs) with practical skills in geospatial technologies for urban land surveys.
• Inauguration:
  • Virtually inaugurated by Shri Manoj Joshi, Secretary, Department of Land Resources,
  • On 2nd June 2025 at 10:00 AM.
• Duration: 1 week of hands-on training.

Training Modules Include

• NAKSHA programme framework and objectives
• GNSS and ETS-based surveying techniques
• Use of Web-GIS applications
• Land parcel mapping
• Legal and administrative protocols for land surveys

About Digital India Land Records Modernization Programme (DILRMP)

• Launch Year: Revamped in 2016 (originally launched in 2008 as NLRMP)
• Type: Central Sector Scheme (100% centrally funded)
• Duration: Extended for 2021–2026

Key Components

• Computerization of land records and property registration
• Integration of land records with Aadhaar (voluntary)
• Digitization of Revenue Court records
• Unique Land Parcel Identification Number (ULPIN or Bhu-Aadhaar)
• BHOOMI SAMMAN initiative to recognize excellence in land record management

Achievements (as of FY25)

• 95% of Records of Rights (RoR) digitized
• 68% of cadastral maps digitized
• 95% of property registrations computerized

Significance of Digitizing Urban Land Records

• Citizen Empowerment: Secure and legal documentation of property ownership.
• Dispute Reduction: Minimizes litigation through verified records.
• Improved Urban Governance: Enhances planning, efficiency, and service delivery.
• Investment Facilitation: Creates transparency and ease of doing business, boosting urban economic growth.

PIB

5. India Emerges as Major Hub for Illegal Online Gambling, Says CUTS Report

Context

Over 5.4 billion visits were recorded in FY25 to the top 15 unauthorised gambling platforms, including 1xBet, Parimatch, Stake, Fairplay, and BateryBet, according to a report by CUTS International.

• Estimated annual deposits on these illegal platforms: $100 billion.
• High direct traffic share (66% of 5.4 billion visits) shows strong brand recall and engagement, largely bypassing search engines or regulated app ecosystems.

Major Policy and Enforcement Gaps

• No central regulator for online betting/gambling in India.
• Lack of:
  • KYC norms
  • Age verification protocols
  • Payment-blocking mechanisms
  • Monitoring of advertising and domain activity
• Minors and young adults have unregulated access due to absence of safeguards.
• Some platforms (e.g., Parimatch) use cash-on-delivery payment models, further easing access for underage users.

National Security & Consumer Harm

• Platforms siphon crores of rupees abroad, raising national security concerns.
• Psychologically manipulative design increases risk of gambling addiction, particularly among:
  • Youth
  • Sensation-seeking and impulsive individuals
• These sites offer high-stakes, immersive experiences designed to promote risky betting behavior.

Alarming Online Visibility

• In March 2025, Parimatch’s traffic surpassed major Indian domains like:
  • amazon.in
  • wikipedia.org
  • google.co.in
  • flipkart.com
  • linkedin.com

Aggressive User Acquisition & Engagement Strategies

• Use of:
  • Mass media advertising (TV, billboards)
  • Celebrity endorsements
  • Private channel link sharing (WhatsApp, Telegram, etc.)
• These platforms create an illusion of credibility, attracting repeat and long-term users.

Recommendations from CUTS International

1. Establish a central gambling regulator
2. Ban advertising of illegal betting platforms
3. Implement payment gateway restrictions
4. Strengthen age and KYC compliance
5. Launch public awareness campaigns

Banking and Finance

1. RBI's Draft Directions on Gold Loans (April 2025)

Context

On April 9, 2025, the Reserve Bank of India (RBI) released draft guidelines on loans against gold collateral.

• Objective: Harmonise gold loan regulations across banks and NBFCs, ensure transparency, and curb irregularities observed in FY24.

Why RBI Intervened

• Alarm over irregular practices and rapid portfolio expansion:
  • Gold loan portfolio of banks and NBFCs grew over 50% in FY24.
  • Bank gold loan books alone surged 104%, raising regulatory concerns.
• Rising gold prices and growing credit demand in the informal economy further complicated risk monitoring.

Key Provisions in the Draft

1. LTV Ratio
   • Cap remains at 75%.
   • For bullet loans (especially for consumption), interest must be included in LTV, reducing disbursable amount.
2. Collateral & Valuation
   • Gold to be valued based on 22 carat price.
   • Mandatory proof of ownership for pledged gold.
   • Uniform standards for gold purity and weight assessment.
3. Loan Structuring & Renewals
   • No concurrent loans for both consumption and income generation.
   • Top-up/renewal allowed only if the existing loan is standard and within LTV.
   • Fresh loan only after complete repayment of principal and interest.
4. Timely Return of Collateral
   • If the lender delays return of gold beyond 7 working days, a ₹5,000/day penalty must be paid to the borrower.

Impact on Regulated Entities

• Reduced borrower flexibility; especially affects rural/agricultural borrowers dependent on gold loans.
• NBFCs face constraints in liquidity due to tougher renewal norms.
• Higher compliance costs from documentation, purity checks, and DSCR norms.
• Smaller NBFCs may face funding issues, leading to industry consolidation.
• Likely interest rate hikes to offset increased operational burden.

Critical Assessment

• Experts suggest the RBI consider differentiated norms:
  • Micro gold loans (used by rural poor) vs. high-ticket urban loans.
  • Blanket regulations may hurt financial inclusion and informal sector liquidity.

TH

2. India’s Crypto Landscape and Regulatory Challenges

Strong Crypto Adoption Amid Regulatory Uncertainty

• India ranks first globally for grassroots crypto adoption for the second year, according to Chainalysis (2024).
• Indian retail investors infused $6.6 billion into crypto assets, with the sector poised to create over 800,000 jobs by 2030 (NASSCOM).
• India also hosts one of the largest and fastest-growing cohorts of web3 developers.

Regulatory Environment and Judicial Remarks

• Despite vibrant market growth, India’s crypto regulation remains fragmented and unclear.
• The Supreme Court in May 2025 criticized the lack of clear crypto policy, stating “Banning may be shutting your eyes to ground reality,” underscoring the disconnect between market realities and policy.

Challenges with Regulatory and Monetary Controls

• RBI expressed early concerns (since 2013) over crypto risks due to lack of central bank authorization.
• A 2018 RBI circular banning financial institutions from crypto dealings was overturned by the Supreme Court in 2020.
• The government introduced stringent tax policies in 2022:
  • 1% TDS on VDA transactions above ₹10,000 (Section 194S).
  • 30% capital gains tax without loss offsetting (Section 115BBH).
• These taxes aimed to improve transparency and limit speculation but have had limited success.

Continued Offshore Trading and Tax Leakage

• From July 2022 to December 2023, over ₹1.03 trillion of VDAs were traded on non-compliant (mostly offshore) platforms.
• Only 9% of VDAs were held on domestic exchanges, resulting in an estimated ₹2,488 crore loss in tax revenue.
• Between December 2023 and October 2024, ₹2.63 trillion was traded offshore, with uncollected TDS exceeding ₹60 billion.
• Efforts to block non-compliant platforms (e.g., URL blocking) failed as users circumvented restrictions via VPNs, mirrors, and platform migration.

Importance of Virtual Asset Service Providers (VASPs)

• Global bodies (IMF, FSB, FATF) advocate for comprehensive, risk-based crypto regulation harmonized with international norms, relying on compliant domestic intermediaries (VASPs).
• VASPs act as regulatory bridges, enabling oversight, enforcement, and risk mitigation.
• India’s current policies push users offshore, eroding regulatory control and tax compliance.
• Indian VASPs are rapidly maturing, collaborating effectively with the Financial Intelligence Unit-India to strengthen AML/CFT controls.
• Post the $230 million crypto hack in 2024, Indian exchanges enhanced cybersecurity, established insurance funds, and implemented industry-wide security standards.

3. FD-Backed Credit Card Launched by ZET in Partnership with SBM Bank

Context

ZET, a fintech platform focused on credit score building, has partnered with SBM Bank (India) to launch a fixed deposit-backed credit card — the SBM ZET Credit Card. The product is aimed at new-to-credit users, individuals without income proof, and those looking to build or repair their credit score.

Key Features

• FD-Linked Credit Limit:
  • Users must open a fixed deposit (FD) starting at ₹5,000 with SBM Bank.
  • The credit limit is up to 90% of the FD amount.
  • FD earns up to 7% annual interest.
• No Credit History or Income Proof Required:
  • Ideal for first-time borrowers or users with poor/no credit history.
• Zero Annual Charges:
  • Lifetime free card with no joining or annual fees.
• UPI-Enabled RuPay Card:
  • Operates on the RuPay network.
  • Fully UPI compatible, can be used on UPI apps like PhonePe, Google Pay, etc.
• Instant Digital Issuance:
  • Virtual credit card issued within minutes after online FD creation and video KYC.

Credit Score Benefits

• Helps users build and maintain a credit score above 750 through responsible usage.
• Credit behaviour is reported to credit bureaus, aiding formal financial inclusion.

Security & Regulation

• FD is insured up to ₹5 lakh under RBI’s DICGC scheme.
• Card transactions are secured and regulated under SBM Bank’s banking license.

User Engagement Benefits

• Offers rewards and discounts on partnered brands and categories.
• Enables disciplined credit usage backed by a collateral FD.

Target Audience

• Students and gig workers with no credit history.
• Salaried/self-employed individuals without formal documentation.
• Users seeking to rebuild a poor credit profile.

4. UPI's Share in India's Digital Transactions

Context

Unified Payments Interface (UPI) continued to dominate India's digital payments landscape in FY25, recording a 41.7% annual growth in volume and expanding its share of total digital transactions to 83.4%, up from 79.4% in FY24.

Regulatory and Policy Developments

• Survey on Digital Payments:
  • RBI to launch a nationwide survey to understand user preferences, behaviour, and challenges.
• Digital Payments Intelligence Platform (DPIP):
  • RBIH (Reserve Bank Innovation Hub) is building a prototype in collaboration with 5–10 banks.
  • Goal: Detect and mitigate frauds, improve ecosystem trust.
• Authorisations Granted by RBI in FY25:
  • 26 Online Payment Aggregators (PAs)
  • 5 Cross-Border Payment Aggregators (PA-CB)
  • 11 Non-bank PPI issuers
  • 1 TReDS platform
  • 84 On-site inspections of payment system operators conducted.

UPI Internationalization

• Led by NPCI International Payments Ltd (NIPL).
• Indian UPI apps now accepted in:
  • France, Nepal, Bhutan, Singapore, Sri Lanka, Mauritius, UAE via QR codes.
• More international tie-ups expected in FY26.
• Goal: Expand UPI presence to more countries by FY29.

Significance

• Reflects India's global leadership in real-time digital payments.
• Enhances financial inclusion, payment system efficiency, and consumer convenience.
• Strong regulatory oversight continues to strengthen trust and security in digital payments.

UPSC PYQ

Consider the following countries:

I. United Arab Emirates

II. France

III. Germany

IV. Singapore

V. Bangladesh

How many countries amongst the above there other than India where international merchant payments are accepted under UPI?

(a) Only two)

(b) Only three

(c) Only four

(d) All the five

5. RBI to Strengthen Liquidity Stress Tests and Assess Climate Risk for Financial Stability

Context

The Reserve Bank of India (RBI) is set to bolster the financial system’s resilience by enhancing stress testing frameworks for Scheduled Commercial Banks (SCBs), NBFCs, and cooperative banks, alongside integrating climate transition risks into regulatory oversight.

Key Initiatives:

1. Liquidity Stress Testing for SCBs:
   • RBI will introduce a cash flow analysis framework.
   • Objective: Simulate extreme but plausible scenarios to test liquidity resilience.
   • Aims to assess:
     • Banks' ability to meet short-term obligations
     • Adequacy of liquidity buffers
     • Depositor protection and systemic risk containment
2. Extension to NBFCs & Co-operative Banks:
   • RBI will develop an in-house liquidity stress test framework for NBFCs.
   • Similar frameworks will be designed for:
     • Rural Co-operative Banks
     • Mid-sized Urban Co-operative Banks (UCBs)
3. Climate Risk Stress Testing:
   • RBI will assess the impact of climate transition risk on:
     • Carbon-intensive sectors
     • Banks’ balance sheets with exposure to high-emission industries
4. Prudential Guidelines on Climate Risk:
   • RBI may issue final guidelines covering:
     • Disclosure of climate-related financial risks
     • Climate scenario analysis
     • Climate stress testing frameworks
5. Market Liquidity Risk Assessment:
   • Development of a framework for liquidity risk stress testing of market portfolios.
   • Will use scenarios based on past market stress events to detect vulnerabilities.
6. ‘Growth-at-Risk’ (GaR) Model:
   • RBI to develop a macrofinancial tool that:
     • Links current economic and financial indicators
     • With probabilities of future adverse economic outcomes

Significance

• Enhances forward-looking risk management in Indian banking.
• Strengthens crisis preparedness for systemic financial institutions.
• Aligns India's financial regulation with global climate and ESG norms.
• Reinforces depositor confidence, financial stability, and macroprudential supervision.

6. Razorpay Relocates Parent Entity to India

Context

Fintech unicorn Razorpay has completed the relocation of its parent company from the United States to India, positioning itself for a domestic Initial Public Offering (IPO) planned by the end of calendar year 2026. The move marks a key milestone in India's growing trend of fintech companies shifting their base back to India.

Key Highlights

• Parent Entity Shift to India:
  • Razorpay has officially reversed flipped its parent entity to India from the US.
  • The move supports regulatory alignment and easier access to Indian capital markets.
• Tax Liability on Domicile Shift:
  • Tax liability estimated at $150 million (₹1,275 crore).
  • Will be paid from internal cash reserves.
  • Earlier speculation pegged the tax burden at $200 million.
• IPO Timeline:
  • Razorpay targets an IPO before December 2026 (end of CY2026).
• Reverse Flip Trend in Fintech Sector:
  • PhonePe: Shifted from Singapore to India in 2022
  • Groww: Relocated from Delaware to Bengaluru in FY24
  • Zepto: Recently completed a reverse flip from Singapore to India

Significance

• Reinforces India as a preferred jurisdiction for high-growth fintech startups planning to list locally.
• Enhances regulatory transparency, governance, and investor confidence.
• Aligns Razorpay with Indian IPO and capital market compliance frameworks ahead of public listing.

7. SBI Research Projects Net Financial Savings to Hit ₹22 Lakh Crore in FY25

Context

According to the SBI Research Report, India’s household sector net financial savings are projected to reach ₹22 lakh crore in FY 2024-25, reflecting growing economic resilience and macroeconomic stability.

Key Highlights

• Household Net Financial Savings:
  • Expected to be ₹22 lakh crore in FY25.
  • Equivalent to 6.5% of Gross National Disposable Income (GNDI).
  • Up from:
    • 5.1% of GNDI in FY24
    • 4.9% of GNDI in FY23
• Macroeconomic Significance:
  • Increased savings provide a vital capital pool for financing government and corporate deficits.
  • Plays a key role in maintaining fiscal and monetary stability.
• RBI Surplus & Balance Sheet Expansion:
  • RBI's balance sheet expanded by 8.19% in FY25, below nominal GDP growth of 9.9%.
  • RBI transferred ₹2.69 lakh crore in surplus to the government, enhancing fiscal space and reducing the need for market borrowing.
• Fraud Statistics in Financial System:
  • Fraud cases fell in number but tripled in value to ₹36,014 crore in FY25.
  • Card & Internet frauds:
    • Declined from 29,802 cases in FY24 to 13,516 cases in FY25, indicating stronger security protocols.
• Systemic Stability:
  • The report underscores that India’s financial system is robust and undergoing a transformative phase, driven by reforms, better risk management, and digital adoption.

8. Fintechs Seek Easier Provisioning Norms for DLG-Backed Loan Pools

Context

Fintech companies and digital lenders are urging the Reserve Bank of India (RBI) to relax provisioning requirements for loan pools backed by Default Loss Guarantees (DLGs). They argue that current norms may result in double provisioning, reducing lending efficiency and capital deployment.

Key Issues Raised by Fintechs

Accounting Interpretation Differences

• Fintechs cite variability in interpreting Ind-AS standards.
• Ind-AS permits factoring in risk mitigants like DLGs while calculating Expected Credit Loss (ECL) provisions.
• RBI, however, insists that ECL provisions must be made in full, regardless of the DLG support.

Double Provisioning Concern

• Both the fintechs (LSPs) and regulated lenders (banks/NBFCs) are required to provision for the same loan pool.
• This redundancy impacts capital efficiency and may crowd out lending due to excess buffers being locked.

Industry Representation

• Unified Fintech Forum (UFF) and Fintech Association for Consumer Empowerment (FACE) have made formal representations to the RBI.
• They highlight the need for data-based regulatory clarity and emphasize that DLGs reduce effective credit risk.

RBI's Stand

• In April, RBI wrote to four major non-bank lenders with high delinquencies in DLG-backed pools.
• Directed full provisioning under ECL norms for all third-party sourced loans, irrespective of DLGs.
• Concerns include:
  • Elevated delinquencies and high DLG payouts
  • Deterioration in asset quality of NBFCs
  • Misuse of FLDG (First Loss Default Guarantee) arrangements as securitisation substitutes

Regulatory Perspective

• RBI supports DLGs as a risk-sharing mechanism, not as a replacement for robust underwriting.
• The aim is to ensure fintechs have ‘skin in the game’ but without compromising asset quality or provisioning discipline.

Mint

Economy

1. India’s Economic Performance in 2025

Credit: TH

Headline Growth vs. Ground Reality

• IMF Projection (2025): India is set to overtake Japan to become the world’s 4th largest economy by absolute GDP, reaching $4.2 trillion.
• Caveat: Absolute GDP size does not reflect individual well-being, development quality, or income distribution.

GDP vs. GDP Per Capita

• Chart 1A: India’s GDP grew from $468 billion (2000) to $4,187 billion (2025).
• Chart 1B: Despite overtaking Japan in GDP size, India’s GDP per capita remains 12 times lower than Japan’s and 9 times lower than Poland’s.
• Implication: Economic size does not equate to broad-based prosperity.

Employment Structure

• Agricultural Dependency (Chart 2A-C):
  • India (2023): ~45% of workforce in agriculture.
  • Japan & Poland: <10%, with majority in industry/services.
• Formal Employment (Chart 3):
  • India: 23.9% in regular wage/salaried work.
  • Japan: 91%, Poland: 80.1% — highlighting better formal job markets abroad.

Education Outcomes

• Gross Enrolment Ratio (Chart 4):
  • India (2022): 32.7% in college-level education.
  • Poland: ~75%, Japan: ~65% — India lags in higher education access.

Health Indicators

• Life Expectancy (Chart 5):
  • India: 72 years, Japan: 84, Poland: 78.5.
• Infant Mortality Rate (IMR):
  • India (2023): 24.5 deaths per 1,000 live births.
  • Japan & Poland: <5 deaths per 1,000 — underscoring healthcare gaps.

Human Development Index (Chart 6)

• India (2023 HDI): 0.685 – Medium human development.
• Japan & Poland: >0.9 – Very high human development.
• HDI incorporates health, education, and standard of living, offering a truer reflection of citizens’ quality of life.

TH

Agriculture

1. Agricultural Households in India Increasingly Rely on Non-Farm Income: PRICE Report

Context

52% of agricultural households now earn additional income from non-agricultural activities, reflecting a growing trend toward income diversification.

• The working paper titled "Reimagining Annadata Households and Their Livelihoods Beyond the Farm" was published by People Research on India’s Consumer Economy (PRICE).
• The shift aims to build financial resilience against farming uncertainties caused by:
  • Market volatility
  • Climate events
  • Economic shocks

Top States by Share of Agricultural Households with Non-Farm Income (2024–25)

• Nagaland: 98%
• Tripura: 94%
• Meghalaya: 85%
• Tamil Nadu: 83%
• Sikkim & Uttarakhand: 80% each

States With Highest Dependence on Farming Alone

• Arunachal Pradesh: 82%
• Punjab: 78%
• Assam: 77%
• Karnataka & Manipur: 73% each

Income Inequality Among Agricultural Households

• Average annual income (2024–25): ₹7.31 lakh
  • Poor farmers: ₹2.03 lakh
  • Rich farmers: ₹26 lakh
• Share of income from farming-related activities: 80% (₹5.77 lakh)
  • Direct farming: 67.1%
  • Allied activities (dairy/livestock): 7.4%
  • Agricultural labour: 4.4%
• Share from non-farm sources:
  • Non-agricultural business: 7.1%
  • Salaried jobs: 3.4%
  • Pension: 1.4%
  • Remittances: Balance

States With Highest Average Annual Income for Agricultural Households

• Punjab: ₹20.1 lakh (₹16.2 lakh from farming alone)
• Haryana: ₹16.7 lakh
• Kerala: ₹11 lakh
• Mizoram & Tamil Nadu: Follow closely

States With Lowest Agricultural Household Income

• Chhattisgarh: ₹3.2 lakh
• Odisha: ₹4.15 lakh
• Jharkhand: ₹4.77 lakh

BS

2. Crystal Crop Launches RICEACT Herbicide and JIVORA Insecticide for Rice and Cotton Farmers

Context

Crystal Crop Protection Limited (CCPL), India’s leading agrochemicals solutions company, today announced the launch of a herbicide and insecticide, both major research-driven products. CCPL has launched RICEACT, a solution tailored specifically for rice cultivation, and JIVORA, a next-generation insecticide, designed to address the rising challenges of sucking pests in cotton, said a statement from the company.

About RICEACT (Herbicide for Rice)

• Composition: Triafamone (20%) + Ethoxysulfuron (10%)
• Mode of Action:
  • Dual-action: Root and foliage absorption
  • Inhibits Acetolactate Synthase (ALS) enzyme
  • Systemic disruption of weed development
• Target Weeds: Grasses, sedges, and broadleaf weeds
• Application Window: Early post-emergence; ideal at 1–3 leaf stage of weeds
• Recommended Dose: 90 grams per acre
• Benefits:
  • Season-long residual weed control
  • Effective in both transplanted and wet direct-seeded rice
  • Reduces labour costs
• Coverage: Expected usage on approx. 3 lakh hectares of paddy
• Available Pack Sizes: 45g, 60g, and 90g

About JIVORA (Insecticide for Cotton)

• Target Pests: Whiteflies, Jassids, and Aphids
• Timing: Designed for 2nd and 3rd spray windows
• Development: Based on extensive field trials and market research
• Coverage: Estimated adoption by 4.5–5 lakh cotton farmers
• Benefits:
  • Strong residual control
  • High efficacy in critical pest attack periods
• Available Pack Sizes: 50g, 100g, 250g, 500g, and 1kg

Strategic Impact

• Portfolio Expansion:
  • Herbicide segment: +8%
  • Insecticide segment: +7%
• Market Outlook:
  • India’s crop protection market expected to grow from $2.59 billion (2025) to $3.21 billion (2030)
  • CAGR: 4.35%
• Target Markets: Maharashtra, Andhra Pradesh, Gujarat, Karnataka, Rajasthan, Haryana, West Bengal

Business Line

3. IRRI Scientists Discover Rice Varieties with Antioxidant and Anti-Cancer Properties

Context

Scientists at the Philippines-based International Rice Research Institute (IRRI) have identified a few rice varieties with anti-oxidant and anti-cancer properties.

• Institute:
  International Rice Research Institute (IRRI), Philippines
• Research Publication:
  Journal – Food Hydrocolloids and Health

Key Research Highlights

• Sample Size:
  • Screened 1.32 lakh rice accessions worldwide.
  • Focused on 800 pigmented (coloured) rice varieties for detailed analysis.
• Discovery:
  • Identified 6 pigmented rice lines with very high antioxidant levels comparable to superfoods like blueberries and chia seeds.
  • These six rice lines exhibited strong anti-cancer effects in laboratory tests on colorectal and breast cancer cell lines.
• Unique Feature:
  • Extracts showed cytotoxicity (killing effect) only in cancer cells, sparing healthy cells, unlike many chemotherapeutic drugs which harm healthy cells too.
  • This suggests a safer treatment profile.

Testing and Supplement Development

• In Vitro Bioavailability:
  • Tests showed antioxidant and anti-cancer biomolecules were absorbed during the gastric phase.
• Rice Bran Extract Supplement:
  • Produced by safe ethanol extraction and microencapsulation, forming a water-soluble multi-nutrient supplement.
  • 7.5 μg/mL dose showed anti-cancer effects comparable to some chemotherapy drugs in cell line tests.
• Retention of Properties:
  • Cooking the rice retains about 70% of antioxidant and anti-cancer benefits.

Notable Rice Varieties Identified

• Ketan Hitam (purple rice): Origin – Indonesia
• Balatino (purple rice): Origin – Philippines
• Kintuman (red rice): Origin – Philippines

Significance

• Potential development of functional foods and nutraceuticals targeting cancer prevention.
• Promotes dietary solutions with fewer side effects compared to traditional chemotherapy.
• Offers new opportunities for agricultural and health sectors to combat cancer through natural foods.

BL

4. Krishi Nivesh Portal

Context

Ministry’s circular requests states and ministries to identify and share agriculture investment schemes for inclusion. Emphasis on regular updates to maintain portal’s effectiveness.

Objective

To consolidate all Central and State government schemes related to agricultural investment into a single digital platform for easy access and streamlined investment.

Background

• Launched in September 2024 by the Ministry of Agriculture & Farmers Welfare.
• Aims to bring schemes from various ministries and states under one window.
• Currently includes schemes from 7 ministries:
  • Agriculture & Farmers Welfare
  • Food Processing Industries
  • Rural Development
  • New and Renewable Energy
  • Jal Shakti
  • Chemicals & Fertilisers
  • Fisheries, Animal Husbandry and Dairying
• Other ministries expected to join:
  • Micro, Small & Medium Enterprises (MSME)
  • Cooperation
  • Panchayati Raj
  • Commerce
  • Development of North Eastern Regions
• States yet to onboard; urged to share scheme details urgently for portal inclusion.

Key Features

• One-Stop Access: Centralized access to investment schemes from multiple government departments.
• Open Source & Standards: Built as an interoperable platform using open-source technology.
• Powered by BI, Analytics, AI/ML: Provides business intelligence, data analytics, and artificial intelligence/machine learning for better decision-making.
• User-Friendly: Helps investors, farmers, and agri-startups to find suitable schemes easily.
• Application Tracking: Stakeholders can track scheme application status and seek guidance digitally.
• Digital DPR Submission: Enables submission of Detailed Project Reports (DPRs) online, streamlining investment proposals.

Significance

• Boosts Private Investment: Encourages private sector participation to enhance productivity, infrastructure, and value chains in agriculture.
• Transparency & Efficiency: Simplifies investment process with greater transparency and timely information updates.
• Supports Modernisation: Aligns with the vision of modernizing Indian agriculture through technology and innovative practices.
• Categorized Investment Opportunities: Sorted by geography and available subsidies for targeted investments.

Science & Tech

1. Polluted Rivers Can Turn Into Airborne Hazards, New Study Warns

Context

A new study published in Science Advances (May 28, 2025) reveals a disturbing environmental link: polluted river water can become aerosolised upon entering the ocean, releasing harmful compounds into the air that humans can inhale. This discovery significantly expands the known risks of river pollution, particularly in urban-industrial regions like parts of India.

Background

• Historically, human settlements grew around rivers for agriculture, water, and sanitation.
• Today, however, many rivers, especially in developing countries, have become channels for untreated sewage and industrial effluents, harming ecosystems and public health.

Study Location and Methodology

• Conducted by scientists in California on the Tijuana River, which flows from Mexico into the Pacific Ocean.
• Timeframe: January to March 2020
• Methods:
  • Daily seawater sampling and 24-hour air filtration using quartz-fibre filters at five locations along 35 km of coast.
  • Special focus during rain events, which intensify pollution flow.

Contaminants Monitored

• 12 common wastewater-related human-made compounds were tracked using high-resolution liquid chromatography–mass spectrometry.
• Substances included:
  • Octinoxate (sunscreen ingredient)
  • Dibenzylamine (tire rubber additive)
  • Methamphetamine, illicit drugs
  • Benzoylecgonine (cocaine metabolite used as sewage proxy)
  • Prescription drugs and agricultural biocides

Key Findings

• 10 out of 12 compounds were more concentrated in river-influenced seawater.
• Aerosols from river-adjacent sites had the highest pollution loads.
• Strong correlations found between benzoylecgonine and levels of methamphetamine, octinoxate, and dibenzylamine, suggesting a common source: untreated wastewater.
• Estimated air emissions per 1 km of coastline:
  • 1 kg of octinoxate
  • 100 g of methamphetamine
  • Several grams of tire additives

Global Implications

• Globally, such coastal pollution could aerosolise and release approximately:
  • 40,000 tonnes of octinoxate
  • 50 tonnes of dibenzylamine into the air each year.
• Chronic inhalation risks remain unquantified, especially for fisherfolk and marginalised communities living near polluted coasts.

India-Specific Relevance

• Many rivers in India, such as the Yamuna, Ganga, and Mithi, are heavily polluted and flow into seas, raising concerns about similar airborne toxic exposure in densely populated coastal zones like Mumbai, Chennai, and Kolkata.
• Environmental justice concerns emerge as the poor bear disproportionate health burdens from both water and now air pollution.

TH

Facts To Remember

1. Opal Suchata Chuangsri of Thailand is Miss World 2025

Miss Thailand Opal Suchata Chuangsri was crowned Miss World 2025 at the 72nd edition of the Miss World pageant at the HITEX Exhibition Centre in Hyderabad.

2. Valmik Thapar, wildlife and tiger conservationist, dies at 73

Valmik Thapar, 73, wildlife and tiger conservationist, died in Delhi on Saturday. He was ailing from cancer.

3. Deepak and Naman punch gold in Thai Open boxing

Deepak (75kg) and Naman Tanwar (90kg) clinched gold medals at the Thailand Open International boxing tournament in Bangkok.

4. RBI Penalties in FY25: ₹54.78 Crore Fines Imposed on 353 Regulated Entities

• Total penalties imposed: ₹54.78 crore
• Number of enforcement actions: 353
• Time period: Financial Year ending March 31, 2025
• Entities penalised: Banks and other RBI-regulated entities (REs)

Daily Current Affairs Quiz
3 June, 2025

National Affairs

1. Union Government Invites Proposals for DDACs in 291 Gap Districts

Context

The Ministry of Social Justice and Empowerment has invited proposals to establish District De-Addiction Centres (DDACs) in 291 “gap” districts across 30 States and Union Territories. This is part of the National Action Plan for Drug Demand Reduction (NAPDDR).

What Are ‘Gap’ Districts?

• Districts without any existing de-addiction infrastructure supported by the Central government.
• These districts currently lack:
  • Integrated Rehabilitation Centres for Addicts (IRCAs)
  • Community-based Peer Led Initiatives (CPLIs)
  • Outreach and Drop-in Centres (ODICs)

Features of Proposed DDACs

• Will serve multiple functions: treatment, rehabilitation, awareness, and community-based support.
• Must include:
  • Treatment & rehabilitation facilities
  • Drop-in centre area
  • CPLI space
  • Office/admin area
• Capacity: Can house 15 or 30 patients, based on specific government norms.

States with Highest Number of Gap Districts

• Chhattisgarh: 31 of 33 districts
• Bihar: 25
• Madhya Pradesh: 23
• Gujarat: 22
• Arunachal Pradesh: 21
• Uttar Pradesh: 18
• Jharkhand & Punjab: 16 each
• Assam: 10

Who Can Apply?

• Eligible NGOs and start-ups with minimum two years of experience in drug de-addiction services.
• Must submit proposals by June 30, 2025.

Objectives of DDACs

• Conduct awareness programmes for prevention.
• Provide treatment and rehabilitation for substance users.
• Enable community participation through CPLIs.
• Support risk mitigation and early intervention at the district level.

2. Periodic Labour Force Survey (PLFS) 2023-24

Context

India's literacy rate has reached 80.9% for individuals aged seven years and above, as reported in the Periodic Labour Force Survey (PLFS) 2023–24. Despite this progress, significant disparities persist across gender and urban-rural lines.

Credit: TOI

National Overview

• Overall literacy rate (7+ years): 80.9%
• Overall literacy rate (5+ years): 79.7%
• Male literacy (7+ years): 87.2%
• Female literacy (7+ years): 74.6%
• Gender gap (7+ years): 12.6 percentage points
• Source: Periodic Labour Force Survey (PLFS) 2023–24, released by NSSO, Ministry of Statistics and Programme Implementation.

Top 5 States/UTs with Highest Literacy (7+ years)

States with Lowest Literacy Rates (7+ years)

Urban-Rural Literacy Divide

• Urban literacy rate (7+ years): 88.9%
• Rural literacy rate (7+ years): 77.5%
• Significant urban-rural gaps:
  • Madhya Pradesh: Rural 71.6%, Urban 85.7%
  • Bihar: Rural 72.1%, Urban 83.2%
  • Rajasthan: Rural 72.5%, Urban 84.7%

Gender Gap

• Highest gender gaps (7+ years):
  • Rajasthan: 20.1% (M: 85.9%, F: 65.8%)
  • Bihar: 16.2% (M: 82.3%, F: 66.1%)
  • Madhya Pradesh: 16.1% (M: 83.1%, F: 67.0%)
• Rural gender gap examples:
  • Rajasthan: M: 83.6%, F: 61.8%
  • Bihar: M: 81.5%, F: 65.0%
  • MP: M: 80.0%, F: 62.6%
• Best performers in gender parity:
  • Mizoram: M: 99.2%, F: 97.0%
  • Kerala: M: 96.7%, F: 94.0%

Key Observations

• Literacy rates are improving but disparities remain stark across regions, especially:
  • In northern and central states
  • Among tribal and rural populations
  • Between genders
• States with higher educational infrastructure and outreach, such as Kerala and Mizoram, report minimal gaps.

TOI

3. Launch of Bharat Gen: India’s First Indigenously Developed Multimodal AI LLM

Context

Union Minister Dr. Jitendra Singh launched Bharat Gen, India’s first indigenously developed, multimodal, AI-based Large Language Model (LLM) for Indian languages, at the BharatGen Summit. The initiative is supported by the Department of Science and Technology (DST) under the National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS) and implemented by TIH Foundation for IoT & IoE at IIT Bombay.

Main Features of Bharat Gen

• Multimodal LLM: Integrates text, speech, and image modalities
• Languages supported: 22 Indian languages
• Use Cases: AI-powered solutions for healthcare, education, agriculture, and governance
• Ethos: Ethical, inclusive, multilingual AI rooted in Indian values and culture

Key Objectives

• Promote region-specific AI solutions with cultural and linguistic relevance
• Enhance digital inclusion and trust, especially in remote areas (e.g., AI telemedicine in local languages)
• Realize the vision of “India’s Techade” through innovation and inclusion

Institutional Framework

• Executed through 25 Technology Innovation Hubs (TIHs); 4 of them upgraded to Technology Translational Research Parks (TTRPs)
• Supported by a consortium of academic institutions, researchers, and startups

Strategic Pillars of BharatGen Mission

1. Technology Development
2. Entrepreneurship
3. Human Resource Development
4. International Collaboration

Highlights from the BharatGen Summit

• Launch of Generative AI Hackathon 2025 to engage students in solving real-world problems using AI
• MoU exchanges among government departments and research organizations to strengthen collaboration

Relevance to Broader Policy Landscape:

• Aligns with NEP 2020 promoting interdisciplinary and multilingual education
• Supports CPGRAMS modernization via multilingual AI-driven grievance redressal
• Complements PM-led initiatives like PM MUDRA Yojana, PM SVANidhi, and PM Vishwakarma Yojana

PIB

Banking and Finance

1. Digital Rupee (e₹)

Context

The digital rupee (e₹), launched as a pilot in late 2022 by the Reserve Bank of India (RBI), has witnessed significant scale-up in just two years. Retail transaction value rose from ₹5.7 crore in March 2023 to ₹1,016.5 crore in March 2025 — a 178x increase. This marks the transition of e₹ from an experimental phase to meaningful retail adoption.

Use-Case Evolution

• Wholesale adoption remains limited, but the retail use-case is expanding rapidly.
• Use of e₹ is supporting India’s core digital goals:
  • Modernizing payment infrastructure
  • Reducing reliance on physical cash
  • Offering a regulated digital alternative to private cryptocurrencies

Strategic Implications

• Rising usage of e₹ reflects growing consumer and merchant trust.
• Focus on large-value transactions signals integration into mainstream financial behavior.
• Demonstrates potential for RBI to reshape currency usage without disrupting existing systems like UPI or NEFT.

Outlook & Policy Relevance

• The success of the digital rupee aligns with:
  • India’s financial inclusion roadmap
  • Global CBDC (Central Bank Digital Currency) developments
  • Need for regulated, traceable digital money in contrast to volatile cryptocurrencies

2. NSE’s IPO Plans Face Regulatory Hurdles

Context

The National Stock Exchange (NSE) has been trying to launch its Initial Public Offering (IPO) since 2016, but the process has faced repeated regulatory and legal delays. With a new SEBI Chairperson in place, the NSE is pushing for progress, but multiple concerns from Securities and Exchange Board of India (SEBI) remain unresolved.

Key Regulatory Hurdles

• Co-location Case:
  • Originates from a 2015 whistleblower complaint alleging preferential access to select brokers via secondary servers.
  • SEBI concluded this enabled some brokers to execute trades faster, creating unfair advantage.
  • SEBI’s orders (2019) against NSE and others are under Supreme Court appeal; the CBI investigation is still ongoing.
• Technology Infrastructure:
  • SEBI flagged frequent technical glitches at NSE and inadequate response systems.
• Governance Issues:
  • Unequal compensation between NSE’s Managing Director and other Key Managerial Personnel (KMP).
  • Absence of a permanent board chairperson—public interest directors currently rotate the chair.
  • Concerns over NSE’s clearing corporation ownership, with SEBI emphasizing independent operation of clearing corporations.

Rationale for Listing

• NSE seeks listing to enhance valuation and address pressure from private equity investors.
• Several investors have exited or shifted holdings due to the lifecycle end of funds.
• NSE shares are actively traded in the unlisted market, with over 1 lakh shareholders.

Potential Listing Platform

• NSE cannot list on its own platform as per SEBI rules to avoid conflict of interest.
• Therefore, the Bombay Stock Exchange (BSE) is the likely listing venue.

NSE’s Response to SEBI Concerns

• NSE has proposed to settle pending cases with SEBI and the courts by paying a fine.
• It has committed to:
  • Disclose clearing corporation risks in its IPO draft.
  • Align KMP compensation with SEBI norms.
  • Rectify tech infrastructure weaknesses as per future regulatory guidance.

TET

3. Fintech Concern Under RBI’s New DLG Guidelines

Context

The Reserve Bank of India (RBI) has mandated that regulated entities (REs) make full provisioning for loans sourced via Loan Service Providers (LSPs), regardless of Default Loss Guarantees (DLGs) offered. RBI has prohibited offsetting DLGs against provisioning requirements for stressed loans.

• Deadline for compliance: September 30, 2025.

Industry Reaction: Risk of Double Provisioning

• Fintech bodies are collecting industry data to present concerns to RBI about double provisioning, which they argue is:
  • Capital-inefficient.
  • Likely to discourage loan origination through LSPs.

DLG Framework Under RBI Norms

• DLG = A contractual guarantee by the LSP to compensate lenders for defaults up to 5% of a loan portfolio.
• Key RBI stipulations:
  • DLG cover on an outstanding portfolio must not exceed 5% of total disbursed amount.
  • Even if DLG exists, provisioning remains solely the RE’s responsibility under existing norms.

Additional Regulatory Requirements for Digital Lenders

• Digital lending platforms must now:
  • Offer multiple loan options to borrowers.
  • Ensure borrowers can make informed choices through transparent digital marketplaces.
• Fintechs claim this may disrupt customer experience and conversion rates.

Way Forward: Industry-RBI Consultative Process

• Fintech bodies intend to:
  • Submit impact data to RBI before the provisioning deadline.
  • Request reconsideration of the provisioning treatment of DLG-covered loans.
• RBI has signaled openness to engagement, but maintains that risk provisioning must rest with REs.

Implications for Digital Lending Ecosystem

• Possible slowdown in loan origination through LSPs.
• Reduced portfolio attractiveness for NBFCs and digital lenders.
• Increased capital requirements, affecting small fintech players more severely.

BS

4. RBI's Pro-Growth Policy Stance

Context

RBI has implemented back-to-back rate cuts since February 2025, reducing policy rates by 50 basis points (bps). Effective easing is ~75 bps, as overnight rates are closer to the Standing Deposit Facility (SDF), the lower end of the policy corridor.

Aggressive Liquidity Infusion

• RBI infused ₹5.23 trillion into the system via government bond purchases (OMOs) between December 2024 and May 2025.
• The speed of infusion outpaced RBI’s response during the COVID-19 crisis, where a similar liquidity infusion took a full year.

Macroprudential Easing

• Regulatory relaxations include:
  • Eased bank lending norms to NBFCs.
  • Deferred implementation of Liquidity Coverage Ratio (LCR) requirements for digital retail deposits.

Inflation Dynamics Supporting Easing

• Headline CPI inflation has stayed below 4% since February 2025.
• Food inflation has eased substantially:
  • Only 14% of CPI food items are showing >6% inflation, down from 57% a year ago.
• Core inflation remains subdued, reflecting a negative output gap and weak demand-side pressures.

External Environment Favorable for Easing

• The “impossible trinity” challenge (strong dollar, capital outflows, domestic easing) has eased.
• Rupee depreciation pressures have abated amid weakening dollar and concerns over US fiscal stability.
• This offers policy space for RBI to focus on domestic growth.

BS

5. Tri-Party Repo Dealing System (TREPS)

Context

Banks are borrowing funds from the Tri-Party Repo (TREPS) market at lower rates and parking them in the RBI’s Standing Deposit Facility (SDF) to earn risk-free arbitrage. The weighted average TREPS rate was 5.66%, while the SDF rate stood at 5.75%, offering a 9 basis points spread.

Tri-Party Repo Dealing System (TREPS)

Definition and Functionality

• Full form: Tri-Party Repo Dealing System (TREPS)
• TREPS is a type of repo (repurchase agreement) involving a third-party agent (Tri-Party Agent) who facilitates:
  • Collateral selection
  • Settlement and payment services
  • Custody and lifecycle management
• In TREPS, securities are sold with an agreement to repurchase at a later date at a predetermined price (including interest).

Key Features

• Short-term arrangement: Overnight to a few weeks
• Central Counterparty: Clearing Corporation of India Ltd. (CCIL), which also acts as the Tri-Party Agent

Why Mutual Funds Use TREPS?

1. Liquidity Management:
   • Ideal for deploying idle cash in the short term
   • Offers quick liquidity with minimal risk
2. Portfolio Diversification:
   • Provides a low-risk fixed-income component
   • Helps balance the fund’s risk-return profile
3. Regulatory Compliance:
   • TREPS investments support SEBI-mandated asset allocation norms
   • Aid in tracking and limiting exposure across asset classes

BS

6. Grameen Credit Score (GCS)

Context

The Grameen Credit Score (GCS) is a new initiative announced in the Union Budget 2025–26 by Finance Minister Nirmala Sitharaman. It aims to strengthen rural financial inclusion, with a special focus on self-help group (SHG) members. The Union government expects to roll out GCS within the next three months, pending final approval from the Reserve Bank of India (RBI).

Purpose and Utility

• The GCS will act as a supplementary credit assessment tool, specifically tailored to rural borrowers.
• It seeks to fill the gap left by existing credit bureaus like CRIF Highmark and CIBIL, whose scoring models are generic and not designed for rural lending profiles.
• Banks, NBFCs, and microfinance institutions will be able to better evaluate creditworthiness of borrowers in underbanked areas.

Institutional Framework

• A dedicated committee has been constituted to design and implement the GCS framework.
• The Ministry of Rural Development and other stakeholders are currently working out operational modalities in consultation with the RBI.

Linkage with SVAMITVA Scheme

• The rollout of GCS is aligned with the SVAMITVA scheme, which provides legal ownership records of residential properties in villages using drone-based mapping.
• As per PM Narendra Modi, the scheme has the potential to unlock over ₹100 trillion in economic activity.
• Property cards issued under SVAMITVA enable rural residents to access formal credit from banks, making GCS highly relevant for enhancing credit penetration.

Current Status and Economic Potential

• Over 6 lakh villages are covered under SVAMITVA; nearly half have already been surveyed.
• Lakhs of rural residents have availed bank loans using their property cards as collateral.
• GCS will further formalize credit assessment and is expected to boost rural lending and reduce dependency on informal sources.

Significance for Rural Credit Ecosystem

• Focus areas:
  • Members of Self-Help Groups (SHGs)
  • Rural borrowers with limited or no traditional credit histories
• Expected outcomes:
  • Improved access to credit
  • Reduced credit risk for lenders
  • More inclusive growth in rural India

BS

7. NITI Aayog Highlights Missing Middle in MSME Policy

Context

Medium enterprises form only 0.3% of India's MSMEs but contribute an outsized 40% of MSME export income. They operate in innovation-driven and globally integrated sectors like pharmaceuticals, auto components, and IT services. Despite their economic importance, they receive limited policy attention, as most schemes are targeted at micro and small enterprises (MSEs), which make up 99% of the MSME base.

Economic Contribution and Characteristics

• Average foreign exchange income per medium enterprise: ₹39 crore.
• Average employment per firm: 90 people.
• Average annual R&D expenditure: ₹2.07 crore.
• Medium enterprises often drive R&D and technology adoption, participating in global value chains.

Policy Asymmetry and Its Consequences

• Current MSME policy structure incentivizes firms to stay small and informal.
• This leads to:
  • Disincentivized scaling up
  • Reduced productivity
  • Missed opportunities in innovation and export competitiveness

NITI Aayog Recommendations: A Multi-Pronged Policy Approach

a. Financial Support

• Launch a credit card facility with ₹5 crore pre-approved limit.
• Introduce a dedicated working capital support scheme tailored to medium firms’ higher capital needs.
• Expand access to concessionary finance, currently available mostly to micro and small units.

b. Innovation and Technology

• Transform existing Technology Centres into SME Competence Centres focusing on Industry 4.0.
• Provide medium enterprises access to:
  • Advanced technologies
  • Skill development programs
  • Technology consultancy services

c. R&D and Cluster-Based Innovation

• Establish a dedicated R&D cell under the Ministry of MSME, inspired by EU funding models.
• Identify cluster-specific innovation needs and invite R&D proposals from medium enterprises.
• Extend the Cluster Development Programme to include medium enterprises for:
  • Product testing
  • Quality certification
  • Regulatory compliance support

d. Digital Access and Awareness

• Develop a centralized digital portal for medium enterprises to:
  • Access government schemes
  • Track compliance requirements
  • Access sectoral market research
• Address the persistent lack of awareness that hampers scheme utilization among medium enterprises.

5. Strategic Significance

• Medium enterprises are crucial to:
  • India’s export growth
  • Manufacturing competitiveness
  • Technological innovation
• Without focused policy support, India's Make in India goals and export expansion plans may fall short.

BS

8. Indian Rupee Asia's Worst Performer

Context

The Indian rupee is Asia’s worst-performing currency this quarter. While other emerging Asian currencies gained ground, the rupee remained broadly flat. The underperformance is linked to the Reserve Bank of India's FX reserve management strategy.

RBI’s Forward Dollar Commitments & FX Reserve Focus

• RBI’s net short forward dollar position (future dollar sales):
  • $73 billion as of April 2025
  • Down from $88.8 billion in February (record high)
• The RBI is letting forward contracts run off while buying spot dollars to rebuild reserves.
• This demand for USD may depress the rupee further in coming months.

Market and Macro Context

• On June 2, the rupee was trading at ₹85.40/USD, up 0.2% following a strong Q4 GDP growth of 7.4%.
• Despite macro strength, foreign portfolio outflows and RBI's intervention strategy are weighing on the currency.

India’s FX Reserve Status

• As of May 23, 2025, FX reserves stood at $693 billion, slightly below the all-time high of $705 billion (Sept 2024).
• RBI’s short-term dollar forward exposures:
  • Up to 3 months: $15 billion
  • 3 months to 1 year: $37.8 billion

Policy Outlook and RBI Strategy

• RBI aims to rebalance reserves while avoiding over-reliance on the forward market.
• The central bank prefers spot market purchases to maintain a strong buffer against global shocks and geopolitical risks.
• RBI Governor Sanjay Malhotra has allowed more market-driven currency movements, but retains active FX management.

Mint

9. RBI Launches Climate Risk Information System (RBI-CRIS)

Context

The Reserve Bank of India (RBI) has launched a dedicated climate risk data platform, RBI-CRIS, aimed at equipping financial institutions with critical tools and information to address risks arising from climate change.

Key Highlights:

• Platform Name: RBI–Climate Risk Information System (RBI-CRIS)
• Objective:
  • To address climate-related financial risks.
  • To support regulated entities in integrating climate risk into decision-making and risk management frameworks.
• Platform Components:
  1. Public Directory:
     • A freely accessible web-based directory.
     • Lists geospatial and meteorological data sources relevant for climate risk assessment.
  2. Restricted Data Portal:
     • Available only to regulated entities.
     • Offers processed, standardized datasets to support climate risk modelling and mitigation.
• Significance:
  • Bridges existing data gaps on climate vulnerability and exposure.
  • Enables banks, NBFCs, and financial institutions to conduct robust climate scenario analysis.
  • Aligns with global central banking efforts to assess financial stability risks linked to environmental factors.
• Regulatory Implication:
  • Reinforces RBI’s focus on sustainable finance and risk-based supervision.
  • Encourages integration of climate considerations in credit appraisal, portfolio management, and capital adequacy planning.

10. RBI Imposes ₹54.78 Crore in Penalties on 353 Regulated Entities

Source: Reserve Bank of India

Context

To uphold regulatory discipline and enhance financial sector integrity, the Reserve Bank of India (RBI) imposed monetary penalties on various regulated entities (REs) for violations of key supervisory norms during FY25.

Key Highlights:

• Total Penalties:
  • ₹54.78 crore imposed through 353 enforcement actions.
• Primary Areas of Violation:
  • Cybersecurity framework lapses
  • Breach of Exposure norms and IRAC (Income Recognition and Asset Classification) guidelines
  • Non-compliance with Know Your Customer (KYC) norms
  • Inaccurate classification/reporting of frauds
  • Non-reporting to CRILC (Central Repository of Information on Large Credits)
  • Delay/Failure in credit data submission to Credit Information Companies (CICs)
• Breakup by Entity Type:
  • 264 Cooperative Banks: ₹15.63 crore
  • 37 NBFCs/ARCs: ₹7.29 crore
  • 13 Housing Finance Companies (HFCs): ₹0.83 crore
  • 8 Public Sector Banks: ₹11.11 crore
  • 15 Private Sector Banks: ₹14.8 crore
  • 6 Foreign Banks: Penalized (amount not specified)

Objective of Enforcement:

• Promote robust compliance culture
• Ensure adherence to RBI’s regulatory framework
• Strengthen sector-wide financial governance and operational discipline

11. RBI to Launch Indigenous 'IFS Cloud'

Source: Reserve Bank of India

Context

The Reserve Bank of India (RBI) has announced a strategic initiative to enhance digital resilience and reduce dependence on global technology infrastructure by rolling out a sovereign cloud solution tailored for the Indian financial sector.

Key Highlights

Indian Financial Services (IFS) Cloud Launch

• Timeline: FY 2025–26
• Developed by: Indian Financial Technology & Allied Services (IFTAS), an RBI subsidiary
• Purpose:
  • Promote data localisation
  • Reduce reliance on foreign cloud service providers
  • Provide cost-effective cloud solutions for small banks and NBFCs
• Ownership: Initially RBI-owned; to be transferred to a financial sector consortium in the future
• Type: Community cloud for RBI and its regulated entities

e-Kuber Upgrade (RBI’s Core Banking System)

• Enhancements Planned:
  • New modules for government auctions, public debt management, and financial literacy
  • Cloud-native and API-first redesign
• Objective: To handle growing digital volumes and improve scalability
• Coverage: Already serves 250+ commercial banks and state governments

Cybersecurity & Digital Trust Measures

• New Internet Domains:
  • Launch of ‘.bank.in’ and ‘.fin.in’ domains
  • Managed by IDRBT (Institute for Development and Research in Banking Technology)
  • Objective: Reduce phishing risks and enhance trust in digital banking platforms

AI Governance Framework

• Focus Areas:
  • Regulate use of AI/ML by RBI staff and partners
  • Emphasize data protection, algorithmic transparency, and operational integrity

Strategic Importance

• Aligns with India’s sovereign digital infrastructure goals
• Supports the financial inclusion of smaller institutions
• Strengthens cyber resilience and consumer trust in digital platforms

Economy

1. India's FDI Trends in FY25

Contrasting Narratives from RBI Bulletin

• Gross FDI inflows: Reported at $81 billion – hailed by government/media as a record high.
• Net FDI: Just $353 million, a steep fall, indicating increased disinvestment and outward FDI.
• Highlights discrepancy between headline numbers and underlying trends.

FDI-to-GDP and GFCF Ratios (Declining Trend)

• Gross FDI-to-GDP ratio: Dropped from 3.1% (FY21) to 2.1% (FY25).
• Net FDI-to-GDP: Declined from 1.6% to 0% over the same period.

Rise in Outward FDI (OFDI) & Disinvestment

• Outward FDI includes investment by Indian firms abroad for:
  • Technology acquisition
  • Market expansion
  • Tax arbitrage via havens like Mauritius and Singapore
• Disinvestment refers to exit of foreign capital, especially during stock market booms.

PE/VC Dominance in FDI Composition

• Private Equity (PE) and Venture Capital (VC) now constitute over 75.9% of FDI (2020-21).
• Mostly brownfield FDI, focused on:
  • Fintech
  • Real estate
  • Healthcare
  • Retail
  • Insurance
• Investments are short-term, exit-oriented, and loosely regulated.
• Examples:
  • Blackstone in Care Hospitals
  • ChrysCapital in Lenskart

Concerns from Global Research Findings

• Blanchard & Acalin (2016): India ranks 6th among 25 EMEs in correlated inward-outward FDI.
• Suggests India is a conduit for hot money and treaty shopping.
• FDI flows may reflect tax optimisation, not real investment in productive assets.

Structural & Policy Implications

• Decline in greenfield FDI → Less contribution to new capacity, tech absorption.
• Rising disinvestment and OFDI → Indicates limited domestic investment appeal.
• FDI’s role in gross capital formation is modest and shrinking.
• Need to reform foreign capital regulations to:
  • Prioritise tech-intensive, long-term investments
  • Minimise tax-arbitrage-led flows
  • Align FDI with domestic industrial policy goals

TH

Agriculture

1. ESG-Driven Architecture in Agri-Food

Introduction

Across industries, sustainability is evolving from an aspiration to a necessity. In the agri-food value chain, where environmental and social stakes are high, ESG (Environmental, Social, and Governance) architecture emerges as the framework that transforms intent into impact. This article unpacks how agri-food businesses can embed ESG principles into operations using a structured architectural approach.

Key ESG Challenges in Agri-Food Value Chains

Agri-food systems are particularly exposed to ESG risks due to their complexity and scale:

• Water Scarcity: Agriculture consumes nearly 70% of global freshwater.
• Deforestation: Land clearing for crops and livestock is a key driver.
• Soil Degradation: Threatens future productivity and food security.
• Labor Rights: Especially among seasonal and migrant workers.
• Food Waste: Affects both environmental and financial performance.
• Supply Chain Emissions: Difficult to track and verify across actors.

What is ESG-Driven Architecture?

ESG-driven architecture is a blueprint that integrates sustainability and governance into core business systems. It includes:

• Data & Analytics Layers: Real-time monitoring of emissions (Scope 1, 2, 3), labor practices, and biodiversity.
• Technology Foundations: IoT sensors, precision farming tools, blockchain for traceability.
• Governance Mechanisms: Embedding ESG into procurement, supplier audits, and reporting workflows.

This structured architecture turns “good intentions” into accountable, measurable results.

Adopting ESG Architecture: Step-by-Step Guide

1. Technology Integration
   • Deploy smart agri-tech tools (e.g., soil health sensors, water optimization).
   • Use ESG analytics platforms for integrated sustainability data.
2. Sustainable-by-Design Framework
   • Design modular, scalable systems with built-in environmental impact considerations.
   • Cut long-term costs and reduce emissions at the development stage.
3. Consolidated ESG Data Systems
   • Combine environmental, social, and governance data across departments.
   • Use real-time dashboards for compliance, performance, and strategy alignment.
4. Investment Alignment
   • Leverage green finance, ESG-linked bonds, and impact investments.
   • Ensure transparent, auditable ESG disclosures to attract capital.
5. Stakeholder Engagement
   • Farmers & Suppliers: Offer tools, training, and incentives for sustainable practices.
   • Consumers: Communicate sourcing, certifications, and eco-claims.
   • Regulators: Maintain proactive engagement on reporting and compliance.

Why ESG Architecture Pays Off

• Risk Mitigation: Reduces exposure to climate disruptions and resource scarcity.
• Capital Access: Attracts ESG-focused investors with credible metrics.
• Brand Differentiation: Enhances trust and loyalty in conscious consumer segments.
• Operational Efficiency: Lowers resource and energy usage, reducing costs.

BL

Science & Tech

1. SHUKR Gene and Flowering Plant Evolution

Background

• Life on Earth depends heavily on plants, particularly for oxygen production and food supply.
• About 130 million years ago, flowering plants diversified rapidly, a phenomenon Charles Darwin called an "abominable mystery."
• Recent research by CSIR-Centre for Cellular and Molecular Biology (CCMB), Hyderabad uncovers a genetic mechanism that may explain this.

Plant Life Cycle Basics

• Plants alternate between two phases:
  • Gametophyte (haploid): produces gametes (sperm/egg)
  • Sporophyte (diploid): produces spores, the dominant phase in flowering plants
• In mosses, the gametophyte phase dominates, and sperm swim in water to fertilize eggs.
• In flowering plants, the sporophyte dominates. Gametophytes are smaller, enclosed, and depend on the sporophyte for development.

Major Finding

• SHUKR gene, newly identified in the sporophyte of Arabidopsis thaliana, plays a critical role in pollen (male gametophyte) development.
• The gene controls a class of F-box genes responsible for removing old proteins and facilitating new protein formation in pollen cells.
• Loss of SHUKR function leads to non-viable pollen, confirming its essential role in reproduction.

Significance of SHUKR

• SHUKR is specific to eudicots, a group that includes 75% of flowering plants.
• Emerged about 125 million years ago, aligning with the rapid rise of flowering plant diversity.
• Both SHUKR and its downstream F-box genes are rapidly evolving, enabling pollen to adapt to varying climatic conditions.

Evolutionary

• Unlike mosses, flowering plants reproduce in diverse, often harsh, conditions (e.g., heat, aridity).
• SHUKR’s evolution may have allowed environmentally tailored pollen development, offering a molecular explanation for Darwin’s mystery.
• It highlights a shift from gametophyte-independent to sporophyte-controlled reproduction in flowering plants.

Relevance to Food Security

• Flowering plants, especially eudicots, form the bulk of global food crops (cereals, pulses, oilseeds).
• Climate change-induced male sterility threatens yields due to stress on pollen development.
• SHUKR could be key to developing climate-resilient crops by manipulating sporophyte-controlled pollen responses.

Future Applications

• Using preconditioned pollen to improve plant adaptation to specific environments.
• Enhancing research into stress-tolerant traits through SHUKR and associated gene networks.

Facts To Remember

1. First victory for Gukesh in a classical game against World No. 1 Carlsen

World champion D. Gukesh got his revenge on Magnus Carlsen as he pounced on a blunder by the World No. 1 to defeat him for the first time in a classical game, leaving the Norwegian superstar so frustrated that he banged his fist on the board after the sixth round of Norway Chess tournament.

2. ₹ 2,000 notes worth ₹ 6,181 crore still in circulation: RBI

The highvalue ₹ 2,000 notes worth ₹ 6,181 crore are still in circulation after two years of the Reserve Bank of India withdrawing the currency, according to data released. On May 19, 2023, the RBI had announced the withdrawal of the ₹ 2,000 denomination banknotes from circulation.

3. UCO Bank appoints Sumit Khandelwal as CFO

State-run UCO Bank has appointed Sumit Khandelwal as its new chief financial officer (CFO) with immediate effect, according to a regulatory filing. Khandelwal, who previously served as the general manager and the zonal head of the bank's New Delhi zone, replaces Sujoy Dutta as CFO.

4. Canara Bank waives minimum balance requirement for all savings accounts

Canara Bank has announced the complete waiver of the Average Monthly Balance (AMB) requirement across all savings bank (SB) account types, which includes savings accounts, salary accounts and NRI SB Accounts.

5. India reaffirms commitment to inclusive digital growth at BRICS meet

India reaffirmed its commitment to inclusive, sustainable, and future-ready digital development during the 11th BRICS Communications Ministers’ Meeting held in Brasília, Brazil.

6. PM Modi invites world’s leading aviation companies to invest in India as country emerges 3rd largest domestic aviation market

Prime Minister Narendra Modi has invited the world’s leading aviation companies to invest in India, saying India has emerged as the world’s third-largest domestic aviation market.

7. World Milk Day 2025

World Milk Day is being celebrated today to highlight the importance of milk as a global food and a key source of livelihood for millions. Globally, milk production is growing steadily at a rate of 2% per year, but India stands out with a remarkable annual growth rate of 5.7%, proudly holding the title of the world’s largest milk producer.

Daily Current Affairs Quiz
4 June, 2025

National Affairs

1. Axiom Mission-4

Context

Launch of Axiom Mission-4 (Ax-4) to the International Space Station postponed from June 8 to June 10, 2025, due to weather and final checks.

Mission Details

• Launch Schedule:
  • New Date: June 10, 2025
  • Time: 8:22 a.m. Eastern Time (ET)
  • Location: Launch Complex 39A, NASA Kennedy Space Center, Florida, USA
• Reason for Delay:
  • Predicted inclement weather affecting SpaceX Falcon 9 rocket and Dragon spacecraft transport.
  • Need for final processing and technical readiness of the spacecraft.
• Docking Timeline:
  • Expected to dock with the ISS at approximately 12:30 p.m. ET on June 11 after ~28 hours in orbit.

TH

2. FGD Units Not Mandatory for Most Coal Power Plants in India

Context

A government-appointed expert panel chaired by Principal Scientific Adviser Ajay Sood recommends exempting most thermal power plants (TPPs) from mandatory installation of Flue Gas Desulphurisation (FGD) units.

What Are FGD Units?

• Devices that remove sulphur dioxide (SO₂) emissions from exhaust flue gases of coal-fired power plants.
• Mandated since 2015 to curb air pollution.
• Only 8% of the 600 coal TPPs in India have installed them to date.

Key Recommendations of the Expert Panel

• FGDs not required for ~80% of TPPs.
• Only 66 “Category A” TPPs, located:
  • Within 10 km of NCR or
  • Cities with 1 million+ population,
    must install FGDs.
• SO₂ stack emission standards may be relaxed, as long as National Ambient Air Quality (NAAQ) Standards are met.

Scientific and Policy Rationale

• Ambient SO₂ levels across India range from 10-20 μg/m³, well below the 80 μg/m³ limit.
• Indian coal is inherently low in sulphur.
• Studies show no significant difference in air quality near plants with vs. without FGDs.
• Mandating FGDs nationwide would:
  • Raise electricity costs,
  • Cause implementation delays, and
  • Be unfeasible due to vendor limitations and past COVID-19 disruptions.

Importance

• Eases cost pressures on India’s energy sector.
• Aims to strike a balance between public health protection and energy affordability.
• Reopens the debate on India’s clean coal strategy and environmental regulation priorities.

3. Election Commission Launches Real-Time Voter Turnout Monitoring via ECINET App

Context

Election Commission of India (EC) introduces a tech-driven system for real-time voter turnout updates, replacing the older manual method.

What’s New?

• ECINET App Integration:
  • Presiding officers at each polling station will directly enter turnout data into the ECINET app every two hours.
  • Data will be automatically aggregated at the constituency level.
• Faster Updates:
  • Real-time or near-real-time updates will replace the previous 4–5 hour delays caused by manual aggregation.
  • Final turnout figures will now be entered before officers leave the polling station after close of polling.

Previous Method

• Data was manually collected by sector officers via:
• Phone calls, SMS, or messaging apps.
• Turnout updates faced long lags due to delayed physical record submissions.

Key Features of the New System

• Every two-hour polling trend updates will continue.
• Constituency-wise data to be made available faster via the updated Voter Turnout app.
• Offline data entry capability included:
• In low-connectivity areas, entries can be made offline and synced later.
• The system will become a permanent part of ECINET infrastructure.

Why It Matters

• Addresses Opposition parties’ concerns over data discrepancies.
• Promotes greater transparency, faster dissemination, and better public trust in electoral data.
• To be implemented starting with the Bihar Assembly election later in 2025.

4. National Polio Surveillance Network (NPSN)

Context

The Government of India, in consultation with WHO, has proposed a phased drawdown of the NPSN, sparking concern among public health experts amidst ongoing global polio risks.

About NPSN

• Established by the World Health Organization (WHO), the National Polio Surveillance Network comprises over 200 field units across India.
• Played a crucial role in India being declared polio-free in 2014.
• Now proposed to be subsumed into the Integrated Disease Surveillance Programme (IDSP).

Government’s Justification:

• Not an abrupt closure — the transition aims to avoid surveillance gaps.
• Surveillance functions will be absorbed by existing government systems.
• Assurance that critical surveillance activities will continue throughout the process.

Risk Assessment

• Global resurgence of polio makes such a move risky.
• Neighbouring countries still report active polio cases.
• Experts warn against destabilizing a “steady state” surveillance mechanism that took decades to build.

Strategic Implications

• Could potentially jeopardize India’s polio-free status if not carefully managed.
• Might affect preparedness for any re-emergence of wild or vaccine-derived poliovirus.
• Raises larger concerns on public health workforce sustainability during transitions.

5. Indian Space Situational Assessment Report (ISSAR)

Context

Compiled annually by IS4OM under ISRO’s Space Situational Awareness (SSA) program. SSA includes monitoring the space environment, assessing threats, and implementing mitigation.

Key Highlights on India’s Space Operations

• Spacecraft Launched: 136 spacecraft launched in 2024.
• Operational Satellites Owned by Government:
  • 22 in Low Earth Orbit (LEO)
  • 31 in Geosynchronous Earth Orbit (GEO)
• Active Deep Space Missions:
  • Chandrayaan-2 Orbiter (CH2O)
  • Aditya-L1 at Sun-Earth Lagrange Point
• Collision Avoidance Manoeuvres (CAM): 10 CAMs executed by ISRO in 2024.
• Atmospheric Re-Entry: 9 Indian satellites, including Cartosat-2, re-entered Earth’s atmosphere.
• Spacecraft Decommissioning:
  • Scatsat-1, INS-2B, EOS-7 de-orbited after mission completion.
• PSLV Orbital Experimental Module (POEM):
  • POEM-3 and POEM-4 upper stages de-orbited to 350 km altitude as part of technology demonstration.

India’s Role in Global Space Governance

• Chairs the UN working group on Long-term Sustainability of Outer Space activities.
• Chaired the Inter-Agency Debris Coordination Committee (IADC) for 2023-24.
• Hosted 42nd annual IADC meeting.
• Contributed to revision of space debris mitigation guidelines.
• Commitment to achieve Debris Free Space Mission (DFSM) by 2030 for all Indian space actors (government and private).

Global Space Environment in 2024

• Launches: 254 successful launches globally.
• Objects Launched: 2,963 objects placed in orbit.
• Major On-Orbit Break-Up Events: 3 significant fragmentation events.
  • Notably, fragmentation of Long March CZ-6A rocket stage produced ~650 catalogued debris objects.

6. C CARES Version 2.0 Launched to Digitally Empower Coal Workers

Event Highlights

• Launched by: Shri G. Kishan Reddy, Union Minister of Coal and Mines
• Developed by: C-DAC (Centre for Development of Advanced Computing)

About CMPFO

• Autonomous body under the Ministry of Coal (established in 1948)
• Administers Provident Fund and Pension schemes for coal sector workers
• Serves 3.3 lakh PF subscribers and 6.3 lakh pensioners

Key Features of C CARES 2.0 Portal

• Unified platform integrating coal workers, coal management, and CMPFO
• Enables real-time tracking of PF/Pension claims
• Reduces settlement time and ensures direct benefit transfer to beneficiaries
• Developed in collaboration with SBI for seamless fund transfer

Technological Advancements:

Mobile App for Members

• View personal and employment profiles
• Track claims and raise grievances
• Access PF balance details
• Features an AI-powered Chatbot assistant

Automated Ledger Update

• PF and pension ledgers update automatically using data from coal companies

Prescriptive Dashboards

• For CMPFO and coal companies
• Generates customized reports, identifies trends, and aids in predictive analytics

7. BharatGen: India’s First Indigenous Multimodal AI Large Language Model (LLM) for Indian Languages

Context

Launched by Union Minister of State (Independent Charge) for Science & Technology, Dr. Jitendra Singh, at the “BharatGen Summit” — India’s largest Generative AI and LLM summit and hackathon. BharatGen is a government-funded, AI-based multimodal Large Language Model specifically designed for Indian languages.

Key Features of BharatGen

• Multimodal AI integrating text, speech, and image processing.
• Supports seamless AI applications in 22 Indian languages.
• Designed to be ethical, inclusive, multilingual, and rooted in Indian cultural values and ethos.

Vision and Objectives

• Empower critical sectors including healthcare, education, agriculture, and governance with region-specific AI solutions.
• Facilitate better service delivery through AI that understands local languages and contexts.
• Aligns with Prime Minister Narendra Modi’s vision of “India’s Techade,” focusing on innovation with inclusion.

Use Cases and Impact

• AI-powered telemedicine enabling doctors to communicate fluently in patient’s native languages, improving trust and healthcare outcomes in remote regions.
• Enhances citizen engagement and grievance redressal through multilingual feedback integration into platforms like CPGRAMS.
• Supports grassroots governance transformation through generative AI technologies.

Related Initiatives and Support

• Anusandhan National Research Foundation (NRF) to boost India’s R&D and innovation ecosystem.
• Flagship government schemes like PM MUDRA Yojana, PM SVANidhi, and PM Vishwakarma Yojana contribute to empowering street vendors, artisans, and micro-entrepreneurs.
• Over 3,000 Agri-tech startups exemplify innovation beyond metro areas, e.g., lavender cultivation in Jammu & Kashmir.

BharatGen Mission Pillars

1. Technology development
2. Entrepreneurship promotion
3. Human resource development
4. International collaboration

Banking and Finance

1. RBI Considers Easing Foreign Ownership Rules to Attract Global Capital in Indian Banks

Context

The Reserve Bank of India (RBI) is reviewing shareholding and licensing norms to potentially ease foreign ownership restrictions in Indian banks.

• The move follows recent developments, including:
  • RBI’s special permission to Sumitomo Mitsui Banking Corp to acquire a 20% stake in Yes Bank
  • Ongoing bids by two foreign institutions for a stake in IDBI Bank

Key Existing Constraints on Foreign Investors

• Foreign ownership ceiling for strategic investors is capped at 15%
• Voting rights cap at 26%
• Mandatory dilution of holdings to 26% within 15 years if foreign investors act as “promoters” with managerial influence
• These are some of the strictest banking ownership norms among major economies

What May Change

• Greater openness to regulated foreign financial institutions acquiring larger stakes
• Case-by-case regulatory approvals for foreign investments
• Possible relaxation of timelines for stake dilution requirements
• Review intended to address disincentives for foreign acquisitions and boost long-term capital mobilisation

Strategic Drivers for Policy Shift

• India’s underpenetrated credit market and strong economic growth demand increased banking capital
• Foreign interest is growing, particularly from Asia and Middle East, amid India’s pursuit of regional trade agreements
• Experts highlight that India lags other large economies in attracting adequate banking capital for sustained growth

Significance

• A policy shift could transform the banking capital ecosystem by inviting strong, long-term foreign partners
• Will also strengthen India’s case as a global investment destination in financial services
• Could promote competitive efficiency, capital adequacy, and innovation in Indian banking

BS

2. Curbing Online Payment Frauds in India

Digital Payment Landscape in India

• UPI Milestone:
  • Monthly UPI transaction volume crossed 18.68 billion
• Other Payment Platforms:
  • Strong growth in IMPS, AePS, and FASTag transactions

Benefits of Digital Adoption

• Financial Inclusion: Brings more citizens into the formal banking system
• Tax Compliance: Supports formalization and reduces the informal economy
• Convenience and Efficiency: Streamlines payments for individuals and businesses

Key Security Initiatives

• RBI’s Regulatory Measures:
  • Mandated two-factor authentication
  • Enabled transaction limit controls
  • Issued Master Directions on Digital Payment Security (Feb 2021)
  • Proposed exclusive internet domain for banks
  • Launched MuleHunter, an AI-based tool to detect mule accounts
• Fraud Response System:
  • Citizen Financial Cyber Fraud Reporting & Management System (2021)
    • Helped prevent fraud of approx. ₹4,386 crore
    • Based on 1.34 million complaints

Rising Incidence of Fraud:

• Reported Cases (2014–2024):
  • 63,315 cases of digital payment fraud (₹1 lakh or more)
  • Total losses: ~₹733 crore

Way Forward:

• Awareness as First Line of Defense:
  • User education critical to reducing vulnerabilities
  • Continuous public campaigns needed
• Security vs. User Experience Balance:
  • Real-time fraud detection + ease of use must coexist
• Role of Stakeholders:
  • Banks and payment service providers must:
    • Strengthen cybersecurity architecture
    • Develop next-gen fraud prevention tools
    • Protect data privacy and ensure regulatory compliance

3. HDB Financial Services Gets SEBI Approval

Context

HDB Financial Services, a subsidiary of India's largest private lender HDFC Bank, has received the approval from Securities and Exchange Board of India (Sebi) for its ₹12,500 crore initial public offering (IPO).

Strategic Importance

• Will be India’s largest-ever NBFC IPO
• Expected to be 5th largest IPO in Indian stock market history
• Despite dilution, HDB Financial Services will remain a subsidiary of HDFC Bank, which currently holds a 94.36% stake

Regulatory & Compliance Highlights

• IPO filing: Draft Red Herring Prospectus (DRHP) submitted in October 2024
• SEBI approval was delayed due to:
  • Compliance irregularities, including:
    • Excess shareholder count (Companies Act violation)
    • Irregularities in ESOP issuances by unlisted companies

About HDB Financial Services

• Incorporated: 2007
• Category: Upper-layer NBFC (non-deposit taking) under RBI norms
• Business: Offers secured and unsecured loans across retail and MSME segments

4. Banks Turn Major Investors in Mutual Funds Amid Surplus Liquidity (FY25 Trend)

Context

Banks, traditionally focused on lending, are now investing heavily in mutual fund schemes, a space that partly competes with them for retail investments. Bank investments in MFs surged 91% YoY to ₹1.19 lakh crore (as of March 21, 2025) vs ₹62,499 crore a year earlier (RBI Bulletin).

Key Reasons Behind the Shift

• Suboptimal credit growth: Bank credit growth slowed to 12.1% in FY25, down from 16.3% in FY24.
• Surplus liquidity: System liquidity stood at ₹1.5 lakh crore surplus as per RBI data.
• Lower loan demand: Due to slower income growth and job market uncertainty.
• Favourable returns: Short-term investments in liquid and money market mutual fund schemes offer higher returns with near-zero risk (e.g. T-bills).
• Ease of execution: Faster deployment via mutual funds than direct lending.

Monetary Policy Context

• The RBI shifted its stance from tight/neutral to accommodative, influencing liquidity trends and short-term returns.
• With inflation moderating, banks no longer need to borrow aggressively.

Behavioural Shifts in Savings

• Households moving away from traditional bank deposits to capital market instruments (e.g. mutual funds, equities).
• As per ex-RBI Governor Shaktikanta Das, bank deposits still dominate but are declining in share within total household financial assets.

Where are banks investing?

• Not in equity schemes or SIPs.
• Focus on liquid and debt mutual fund schemes investing in T-bills and other short-term instruments.

5. RBI Signals Rule Review to Ease Foreign Ownership in Indian Banks

Context:

Rising foreign interest in Indian banking and the country’s need for long-term capital.

Background

India’s banking regulator, the Reserve Bank of India (RBI), is reviewing existing shareholding and licensing rules to potentially ease foreign ownership norms in Indian banks. This comes amid:

• Increased interest from global financial institutions
• The country’s fast-growing economy and need for deep capital mobilization
• A push to enhance capital flows into the banking sector to sustain high growth

Key Developments

• Yes Bank Deal as Precedent:
  • In a notable move, RBI relaxed norms for Japan’s Sumitomo Mitsui Banking Corp to acquire a 20% stake in Yes Bank.
  • This was above the usual 15% cap for strategic foreign investors and is seen as a case-by-case relaxation.
• Ongoing IDBI Bank Bids:
  • Canada’s Fairfax Holdings and Emirates NBD are competing to acquire a 60% stake in IDBI Bank.
  • Emirates NBD recently secured subsidiary status in India, becoming the third major foreign bank to do so after DBS (Singapore) and SBM (Mauritius).
• Current Regulatory Barriers:
  • 15% cap on foreign strategic investor holdings
  • 26% cap on voting rights
  • Mandatory sell-down of promoter stake to 26% within 15 years
  • Complex licensing norms and regulatory disincentives

RBI’s Emerging Approach

• Greater openness to allowing regulated foreign financial institutions to hold larger stakes, subject to:
  • Case-by-case approvals
  • Strong governance record
  • Incorporation as an Indian subsidiary
• Willingness to extend timelines for stake sell-downs
• Internal discussions ongoing; finance ministry may need to amend laws on voting rights

Strategic Implications

• India’s move could:
  • Attract high-quality global investors
  • Improve capital adequacy in the banking sector
  • Bolster FDI in financial services
  • Support government disinvestment plans (e.g., IDBI Bank)
  • Position India as a regional financial hub

6. Moody’s Outlook on India’s Banking Sector – June 2025

Key Highlights:

• Supportive Domestic Economy:
  • India’s strong domestic economic conditions will support overall growth and help preserve banks’ asset quality.
  • Government initiatives such as capital expenditure, middle-class tax cuts, and monetary easing are positive growth drivers.
  • India’s low dependency on goods trade limits exposure to global economic uncertainties.
• Asset Quality Outlook:
  • Systemwide nonperforming loan (NPL) ratio expected to remain stable at 2-3% over the next 12 months (2.5% as of Dec 2024).
  • Asset quality divergence will persist across loan types and banking segments.
• Wholesale Loans:
  • Wholesale loan quality remains healthy due to good corporate profitability and low leverage.
  • Wholesale loans form a significant portion of Indian banks’ loan portfolios alongside retail and agriculture loans.
• Retail Loans:
  • Secured retail loans continue to have low new NPL formation rates.
  • Unsecured retail loans show higher NPL formation, reflecting increased credit risk in this segment.
  • Small private sector banks face weaker asset quality compared to larger private and public sector banks due to unsecured loan exposure.

7. RBI Launches 2024–25 Survey on Foreign Liabilities and Assets (FLA) of Mutual Funds and AMCs

Purpose of the Survey:

• To collect data on external financial liabilities and assets of Mutual Funds (MFs) and Asset Management Companies (AMCs).
• Data reference date: End-March 2025.
• Aims to strengthen India’s external sector statistics and assess financial stability and foreign exposure of the fund management sector.

Utility of the Survey

• Helps RBI monitor foreign liabilities/assets of MFs and AMCs.
• Used in compiling Balance of Payments (BoP) and International Investment Position (IIP) statistics.
• Supports policy formulation and risk assessment in the financial sector.

Recent Related Development

• May 2025: RBI is seeking Union Government approval to allow domestic banks and their foreign branches to lend in Rupees to overseas borrowers — a first-of-its-kind proposal to internationalize the Indian Rupee.

Agriculture

1. ICRISAT Launches Centre of Excellence for South-South Cooperation in Agriculture

Context

The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), in collaboration with Research and Information System for Developing Countries (RIS), has launched the ICRISAT Centre for Excellence for South-South Cooperation in Agriculture (ISSCA). The centre is a landmark initiative to strengthen agricultural collaboration among Global South countries, especially in Asia and Africa.

Key Objectives

• Promote knowledge exchange, innovation sharing, and capacity building across developing nations
• Offer a common platform for non-patented agricultural technologies
• Tackle shared issues like low farm productivity, climate stress, and soil degradation

Significant Features

• Aimed at democratising agricultural research and knowledge for practical policy-making
• Provides access to over 100 technologies across:
  • Crop improvement
  • Natural resource management
  • Digital agriculture
  • Horticulture
  • Farm mechanisation

Founding Partners

• Government of India
• Indian Council of Agricultural Research (ICAR)
• ICARDA
• International Rice Research Institute (IRRI)
• Bill & Melinda Gates Foundation

MoU Signed with DAKSHIN

• ICRISAT also signed an MoU with DAKSHIN, a government initiative to promote development partnerships and technical collaboration in the Global South.

Strategic Importance

• Positions India as a knowledge and innovation hub for Global South agriculture
• Boosts regional diplomacy through agri-tech cooperation
• Supports SDGs through improved food security, climate resilience, and inclusive development

PIB

2. NITI Aayog’s Dual-Track Strategy for India-US Agricultural Trade

Context

• India and the US are in advanced talks for a bilateral trade agreement.
• The US’s “reciprocal tariffs” announcement under Donald Trump’s administration caused global trade uncertainties.

Key Recommendations

Dual-Track Approach

• Selective tariff reductions: Lower high tariffs on non-sensitive agricultural imports from the US.
• Targeted concessions: Offer concessions strategically where India faces domestic supply gaps (e.g., edible oils, nuts).

Safeguards for Indian Agriculture

• Protect price stability for producers and consumers.
• Address market volatility through non-tariff barriers on vulnerable sectors like poultry.

Edible Oil Trade

• India is the largest edible oil importer globally.
• The US has a surplus of GM soybean exports.
• Suggested allowing imports of soybean oil to meet domestic demand and reduce trade imbalance without hurting Indian farmers.
• Import duty on crude edible oils (including soybean oil) was cut from 27.5% to 16.5%.

Enhancing India’s Agri-Exports to the US

• Push for increased US market access for key exports: shrimp, fish, spices, rice, tea, coffee, rubber.
• Use duty waivers or tariff rate quotas (TRQs) to expand exports, currently at ~$5.75 billion annually.
• Diversify export portfolio beyond traditional items like basmati rice and frozen shrimp, including processed cereals and value-added products.

Medium-Term Structural Reforms Suggested

• Boost farm sector competitiveness via:
  • Adoption of new technologies
  • Market reforms and private sector participation
  • Better logistics and supply chain development
  • Competitive value chain building

Trade Balance

• India maintains an agricultural trade surplus with the US.
• US exports to India mostly consist of high-value commodities like almonds, pistachios, and walnuts.

3. India’s First International Agri Hackathon Concludes in Pune

Key Announcements & Themes

Technology in Agriculture

• CM Fadnavis emphasized the need to adopt modern technology to overcome climate-related agricultural challenges.
• Called for incubation and field deployment of technologies from the Hackathon.
• Highlighted potential for increased agricultural productivity through agri-tech innovations.

Horticulture Leadership & Crop Achievements

• Maharashtra recognized as a horticultural hub, excelling in grapes, oranges, pomegranates, chickpeas, and vegetables.
• Union Minister applauded farmer-government collaboration in the state’s success.

‘Clean Plant’ Programme Launched

• Objective: Ensure availability of disease-free and productive plants to farmers.
• Total Projects: 9 across India; 3 in Maharashtra
  • Pune: Grapes
  • Nagpur: Oranges
  • Solapur: Pomegranates
• Budget: ₹300 crore
• Nursery Support:
  • ₹3 crore for large nurseries
  • ₹1.5 crore for medium nurseries
  • Target: Production of 8 crore disease-free seedlings annually

International Collaboration

• Partnerships with Israel and the Netherlands for implementing best practices in horticulture.

Government’s Agricultural Vision

• Resolution of Developed India: Cannot be realized without developed agriculture and prosperous farmers.
• Action Points:
  • Increase yield per hectare
  • Reduce input costs
  • Ensure fair market prices
  • Provide compensation for losses

‘Lab to Land’ Initiative

• Aim: Bridge the gap between research and field application.
• Rollout:
  • 16,000 agricultural scientists will work directly with farmers.
  • Supported by Agriculture Department and Agricultural Universities.

Facts To Remember

1. Royal Challengers Bengaluru lift maiden IPL title in 18 years

Virat Kohli and Royal Challengers Bengaluru won their maiden title with a six-run victory over Punjab Kings in the final, ending an 18-year wait for the coveted trophy.

2. PM to flag off Vande Bharat train between Katra and Srinagar

Prime Minister Narendra Modi will flag off the first Vande Bharat train service to Kashmir on June 6, railway officials said.

3. Govt to conduct Population Census- 2027 in two phases with caste enumeration

The Government has decided to conduct the Population Census – 2027 in two phases, along with the enumeration of castes.

4. India wins presidency of International Institute of Administrative Sciences

India has won the presidency of the International Institute of Administrative Sciences (IIAS) in the election, which was held between India and Austria yesterday. India’s candidacy received widespread support from across the membership with 87 votes out of 141 votes. India, through the Department of Administrative Reforms, is a member state of the IIAS.

5. RBI MPC begins; repo rate likely to be cut further

Reserve Bank of India’s Monetary Policy Committee (MPC) meeting began today to decide on the repo rate cut. Chaired by RBI Governor Sanjay Malhotra, the committee’s decision will be announced on Friday.

6. President Murmu promulgates amendment reserving one-third seats for women in Ladakh Hill Councils

President Droupadi Murmu has promulgated the Ladakh Autonomous Hill Development Council (Amendment ) Regulation Rules, 2025 for further amendment in the Ladakh Autonomous Hill Development Council Act, 1997 to reserve one-third of the total seats for women.

Daily Current Affairs Quiz
5 June, 2025

International Affairs

1. Nicaragua Becomes 101st Country to Ratify WTO Fisheries Subsidies Agreement

Why in News?

• On June 2, 2025, Nicaragua formally accepted the WTO Agreement on Fisheries Subsidies, becoming the 101st WTO member to do so.
• The move places the landmark sustainability agreement just 10 ratifications away from the required 111 for its entry into force.
• The acceptance was officially submitted to WTO Director-General Ngozi Okonjo-Iweala by Ambassador Rosalía Bohorquez Palacios.

Background of the Agreement

• Adopted at: 12th WTO Ministerial Conference (MC12), Geneva – June 2022.
• First WTO agreement focused explicitly on marine sustainability and conservation.
• Culmination of two decades of negotiations to tackle harmful subsidies causing global fish stock depletion.

Objectives of the Agreement

• Ban harmful fisheries subsidies that promote:
  • Illegal, Unreported, and Unregulated (IUU) fishing
  • Overfishing of depleted fish stocks
  • Unregulated fishing on the high seas
• Enhance global marine biodiversity and support the blue economy.
• Support developing and least-developed countries (LDCs) with technical assistance.
• Align trade practices with sustainable marine resource management.

Key Provisions

Prohibited Subsidies

• Subsidies for:
  • IUU fishing
  • Fishing of overfished stocks
  • High seas fishing not under regional or international regulation

WTO Fish Fund

• Supports member countries (especially LDCs) with:
  • Legal and technical assistance
  • Capacity-building for implementation and compliance

UPSC Civil Services Examination, Previous Year Questions (PYQs)

Prelims:

Q1. The terms ‘Agreement on Agriculture’, ‘Agreement on the Application of Sanitary and Phytosanitary Measures’ and ‘Peace Clause’ appear in the news frequently in the context of the affairs of the (2015)

(a) Food and Agriculture Organization

(b) United Nations Framework Conference on Climate Change

(c) World Trade Organization

(d) United Nations Environment Programme

Ans: C

Q2. In the context of which of the following do you sometimes find the terms ‘amber box, blue box and green box’ in the news? (2016)

(a) WTO affairs

(b) SAARC affairs

(c) UNFCCC affairs

(d) India-EU negotiations on FTA

Ans: A

Mains:

Q1. What are the key areas of reform if the WTO has to survive in the present context of ‘Trade War’, especially keeping in mind the interest of India? (2018)

Q2. “The broader aims and objectives of WTO are to manage and promote international trade in the era of globalisation. But the Doha round of negotiations seem doomed due to differences between the developed and the developing countries.” Discuss in the Indian perspective. (2016)

National Affairs

1. UNESCO Global Education Monitoring (GEM) Report 2024–25

Context

The UNESCO Global Education Monitoring (GEM) Report 2024–25 has revealed a significant disconnect between high enrolment levels and poor learning outcomes in India, while also highlighting global gender and leadership disparities in education.

Key Findings of India's Position

India-Specific Insights

• High Enrolment, Low Learning:
  • India has achieved >95% enrolment in primary education, but foundational learning gaps persist.
  • ASER 2023: Only 43% of Class 3 students can read a Class 2-level text.
  • NAS 2021: Only 25% of Class 8 students showed math proficiency.
• Gender Imbalance in Leadership:
  • 60% of elementary teachers are women.
  • But only 13% of central university vice-chancellors were women as of 2022.
• Weak Principal Training Framework:
  • NEP 2020 mandates 50 hours/year of professional development for school leaders.
  • Many states have not fully implemented this reform.
• Success Stories:
  • Delhi’s Middle Leadership Pilot improved teacher collaboration and trust through peer mentorship and decentralized leadership.

Global Trends

• Gender Disparities in Learning:
  • Globally, only 87 boys per 100 girls achieve minimum reading proficiency.
  • In middle-income countries, the number drops to 72 boys per 100 girls.
  • Post-COVID reversal: Girls underperforming in math in countries like Brazil, UK, and Italy.
• Women in Education Leadership:
  • Globally, only 19% of education ministers are women.
  • Female-led schools in Africa showed up to 1 year of additional learning gain.
• Leadership Accountability Gaps:
  • Less than 50% of countries require formal leadership training before appointing school heads.

Positive Trends

• Rising Female Workforce: India’s teaching force is becoming more gender-inclusive.
• Policy Recognition: NEP 2020 links leadership training with learning outcomes.
• Evidence-Based Monitoring: UNESCO’s expanded dataset enhances performance tracking.
• Peer-Led Mentorship Models: Successful pilots in Delhi showcase scalable leadership pathways.
• Global Dialogue: Over 100 countries participated in UNESCO’s education leadership surveys.

Negative Trends

• Enrolment ≠ Learning: Access to schooling has not translated into learning gains.
• Persistent Gender Gap in Leadership: Women remain underrepresented in decision-making roles.
• Post-Pandemic Digital Divide: Girls in developing nations faced greater learning loss.
• Uneven Reform Execution: NEP goals for leadership training remain inconsistently implemented.
• Opaque Promotions: Merit-based selection in educational leadership is still lacking in many systems.

Way Forward

• Build Leadership Pipelines:
  • Launch mandatory certification programs for principals and heads of schools.
• Empower Women Leaders:
  • Create fast-track leadership pathways for women in school and education governance.
• Focus on Learning Outcomes:
  • Use assessments like NAS and ASER to track foundational skills, not just enrolment.
• Embed Leadership in Teacher Education:
  • Integrate school governance modules in both pre-service and in-service training.
• Scale Local Mentorship Initiatives:
  • Replicate successful decentralized models (e.g., Delhi’s pilot) in other states for effective school transformation.

UPSC PYQ

Q1. Discuss the main objectives of Population Education and point out the measures to achieve them in India in detail. (2021)

2. India’s Draft National Policy on Senior Citizens

Context

A new National Policy for Senior Citizens is under preparation by the Union Ministry of Social Justice and Empowerment. The draft was discussed in the 4th meeting of the National Council for Senior Citizens, chaired by Social Justice Minister Virendra Kumar. Stakeholder suggestions have been received, and the policy aims to align with India’s evolving demographic profile.

Demographic Shift: Ageing Population Trends

• Senior citizens constituted 8.23% of India’s population in the 2011 Census.
• The share is expected to rise to 12.16% by 2026 and 20% by 2047, according to official projections.
• The next Census reference period is scheduled for March 2027, which will provide updated data for policy recalibration.

Key Focus Areas in the Draft Policy

Digital Inclusion of the Elderly

• Emphasis on promoting digital literacy among senior citizens to ensure equitable access to digital services.
• The council discussed creating programs to bridge the digital divide for the ageing population.

Elder Abuse and Grievance Redress

• Proposal to establish a dedicated grievance redress mechanism for reporting and addressing elder abuse and neglect.

Institutional Reforms

• Suggestions to institutionalise the role of NGOs and senior citizen associations in:
  • Policy formulation
  • Implementation
  • Feedback and monitoring

Progress Under Existing Schemes

Rashtriya Vayoshri Yojana (RVY)

• Over 5 lakh senior citizens have received free assisted living devices under RVY.
• The Council reviewed follow-up mechanisms and measures to improve the quality of distributed devices.

Integrated Programme for Senior Citizens (IPSrC)

• Reviewed for its effectiveness in providing shelter, care, and support to indigent older persons.

Senior Citizen Portal

• Focus on enhancing service delivery through the Senior Citizen Portal, ensuring better tracking and feedback mechanisms.

2. India’s 2027 Digital Census

Context

The Union Ministry of Home Affairs has announced that India will conduct its next population Census by March 1, 2027. This will be conducted after a 16-year gap, making it the first Census since 2011.

What is Census in India?

A Census is the official enumeration of the population, providing comprehensive statistics on:

• Demographic details (age, sex, marital status)
• Economic indicators (occupation, income, employment)
• Socio-cultural data (language, religion, literacy, migration)

It serves as the primary source of population data used for planning, policy-making, and administrative governance at national, state, district, and local levels.

Key Features

• Decennial Process: Conducted once every 10 years
• Mandatory Exercise: Under Census Act, 1948
• Authority: Conducted by the Office of the Registrar General and Census Commissioner of India (RGI)
• Nodal Ministry: Ministry of Home Affairs, Government of India
• Coverage: Every household, village, ward, town, and city in India

2027 Digital Census

• First-ever digital Census in India.
• First post-Independence Census to include caste enumeration.
• Census to be conducted in two phases; completion target: February 28, 2027.

Improving Representativeness of Sample Surveys

• Current National Statistics Office (NSO) surveys rely on sample frames based on the 2011 Census, making them less reliable today due to demographic changes.
• The 2027 Census data will update sampling frames, improving the representativeness of surveys tracking key economic indicators such as consumption, health, and labour markets.
• Experts agree this will lead to more accurate reflections of the Indian economy’s realities.

Better Understanding of Urbanisation and Population Dynamics

• Census data will provide a clearer picture of India’s true urbanisation rate, which has been underestimated since 2011 due to rapid growth.
• Improved urban-rural classification will help policy design targeting infrastructure, services, and development.
• It will also clarify the gender composition across regions, aiding social planning.

Constitutional Significance

• Census Act, 1948 and Census Rules, 1990.
• It falls under Union List Entry 69, Seventh Schedule of the Constitution.
• As per the Constitution, the first Census after 2026 will be used to:
  • Redraw Lok Sabha constituencies
  • Replace the current delimitation based on 1971 Census data

2. World Environment Day 2025

Context

• Date: 5 June 2025
• Global Host: Republic of Korea (South Korea)
• Theme: Beat Plastic Pollution
• India Highlight: PM plants a Banyan sapling under “Ek Ped Maa Ke Naam” at the Aravalli Green Wall Project site.

About World Environment Day (WED)

• Established: By UN General Assembly in 1972
• First Observed: 1973, led by UNEP
• Origin: Coincides with the Stockholm Conference on the Human Environment
• Purpose: Raise global awareness and encourage action for environmental protection

Plastic Pollution – Key Facts

• Global Impact:
  • 11 million tonnes enter oceans annually
  • Microplastics contaminate soil and water
  • Global economic loss: USD 300–600 billion/year
• India-Specific Data:
  • Annual plastic waste: ~9.3 million tonnes
  • Single-use plastics (2023): 4.07 million tonnes (43%)
  • Plastic burnt yearly: ~5.8 million tonnes
  • Rivers (Ganga, Indus, Brahmaputra): Among top 10 global plastic waste carriers

Major Causes of Plastic Pollution in India

• High Consumption: 11 kg per capita annually
• Weak Waste Management: Only 15–20% recycled; informal sector dominates
• Urbanization: Tier-1 cities produce 72.5% of daily plastic waste
• River-Ocean Spillover: 0.6 million tonnes enter oceans each year
• Poor Alternatives: Biodegradable substitutes expensive/unavailable
• Limited Awareness: Especially among consumers and MSMEs

Impacts of Mismanaged Plastic Waste

Environmental

• Toxins (BPA, phthalates) leach into soil and food chain
• Harm to wildlife and aquatic species via ingestion and entanglement
• Burning releases dioxins and heavy metals

Public Health

• Open burning releases carcinogens (dioxins, furans)
• Microplastics detected in salt, seafood, drinking water
• Blocked drains increase vector-borne diseases

Economic

• Potential loss: USD 133 billion by 2030 (FICCI)
• Municipal cost for drain clearance: ₹1,500–2,000 crore/year
• Coastal tourism and fisheries affected

Government Regulations

• Plastic Waste Management Rules: 2016, 2022, 2024
• Extended Producer Responsibility (EPR): Mandatory for brands
• India Plastics Pact
• Swachh Bharat Mission: Includes solid waste management initiatives

Steps to Strengthen Plastic Waste Management

Policy & Enforcement

• Strictly enforce 2022 ban on single-use plastics
• Monitor EPR compliance for FMCG/e-commerce sectors

Infrastructure

• Set up Material Recovery Facilities (MRFs)
• Formalize & incentivize waste pickers (e.g., Pune’s SWaCH)

Sustainable Alternatives

• Promote bamboo, millet-based cutlery, biodegradable packaging
• Impose taxes on SUPs to discourage use

Awareness & Behavioural Change

• Campaigns: “Plastic Lao, Thaila Pao” (Delhi), Plastic-Free Schools (Gujarat)
• Integrate 3Rs in school curriculum and community programs

Technology & Innovation

• Pyrolysis: Converts plastic waste to fuel (e.g., Pune’s Rudra plant)
• Plastic Roads: Over 1 lakh km built using plastic waste across 11+ states

UPSC Mains PYQ

Mains

Q. What are the impediments in disposing of the huge quantities of discarded solid waste which are continuously being generated? How do we safely remove the toxic wastes that have been accumulating in our habitable environment? (2018)

3. IRCTC Deactivates 2.5 Crore Fake User IDs to Curb Bot Booking

Context

Indian Railway Catering and Tourism Corporation (IRCTC) has launched a major digital drive, deactivating 2.5 crore suspicious user accounts to crack down on automated bot-based ticket bookings and enhance accessibility for genuine users.

Key Features of IRCTC’s Digital Drive

• Mass Deactivation:
  • 2.5 crore suspicious/fake user IDs deactivated.
  • Aimed at eliminating accounts used by touts and scalpers.
• Advanced Tech Integration:
  • AI-powered Anti-Bot Systems to stop auto-booking software.
  • CDN (Content Delivery Network) to manage high server load during Tatkal hours.
• Verification Push:
  • 20 lakh user IDs sent for mobile/email revalidation.
  • Aadhaar-linked authentication introduced:
    • Aadhaar-verified users: Immediate Tatkal booking access.
    • Non-Aadhaar users: 3-day wait period for Tatkal bookings.
• Cybercrime Action:
  • 131 complaints registered against users engaging in ticket black marketing.

Need for the Initiative

• Curb Black Marketing:
  • Bots were being used to block high-demand tickets and sell them at premium rates.
• Improve Booking Experience:
  • Reduces traffic congestion on IRCTC servers during peak hours (e.g., Tatkal bookings).
• Strengthen Cybersecurity:
  • Protects the platform and its users from fraudulent activities and data misuse.

Significance of the Digital Drive

• Fair Access to Tickets:
  • Ensures that genuine passengers can book tickets without competing against bots.
• Modernization of Ticketing:
  • IRCTC’s adoption of AI, Aadhaar authentication, and CDN technology reflects a shift towards secure and inclusive e-governance.

4. India Adds Menar & Khichan as Ramsar Sites; Total Rises to 91

Context

India has designated Menar (Udaipur) and Khichan (Phalodi) as Ramsar Sites just before World Environment Day (June 5, 2025).
With this, India's total Ramsar Sites reach 91, making it:

• 1st in Asia
• 3rd globally, after the UK (175) and Mexico (142)

About the New Ramsar Sites

Menar Wetland – Udaipur, Rajasthan

• Nickname: Bird Village
• Size: 104 hectares
• Biodiversity: Over 200 bird species – Eurasian coot, herons, spot-billed ducks, etc.
• Community Role: Hunting/fishing is locally banned; declared Important Bird Area (IBA) in 2016.
• Eco-Tourism: Growing tourist site on Udaipur–Chittorgarh route

Khichan Wetland – Phalodi, Rajasthan

• Known For: Hosting migratory Demoiselle Cranes in large numbers
• Ecological Importance: A vital stopover along the Central Asian Flyway
• Community Participation: Bird protection deeply rooted in local customs

About Ramsar Sites & India’s Status

What is a Ramsar Site?

• A wetland of international importance under the Ramsar Convention (1971) held in Ramsar, Iran (UNESCO framework)
• Recognizes wetlands critical to ecosystems, biodiversity, and livelihoods

India and Ramsar Convention

• Signed: February 1, 1982
• First Sites (1981): Chilika Lake (Odisha) & Keoladeo NP (Rajasthan)
• Current Count (as of June 2025): 91 Ramsar Sites
• Total Area Covered: ~13.59 lakh hectares

India’s Ramsar Rankings (2025)

• 1st in Asia
• 3rd Globally
• Top States by Number of Ramsar Sites:
  • Tamil Nadu: 20
  • Uttar Pradesh: 10
  • Rajasthan: 4 (with Menar & Khichan)

Eligibility Criteria (Any One of 9 Required)

• Habitat for rare or endangered species
• Supports large populations of birds/fish
• Crucial for breeding, migration, or life cycle stages
• Unique hydrological or ecological characteristics

5. Investment Friendliness Index – NITI Aayog

Context

Government think-tank NITI Aayog’s upcoming Investment Friendliness Index to rank states on dimensions of opportunity and risk will likely have four or more sub-indicators for a deeper assessment of performance, said two people aware of the development.Launch Timeline.

Purpose

• Guide investors in choosing optimal Indian states for setting up businesses
• Promote competitive cooperative federalism
• Support the National Manufacturing Mission by improving overall investment climate in India

Index Design

Primary Evaluation Dimensions

• Opportunity (65% weightage)
  • State policies & incentives
  • Infrastructure quality
  • Business environment & innovation ecosystem
  • Resource availability (land, talent, logistics)
• Risk (35% weightage)
  • Natural risk (e.g., disaster vulnerability)
  • Regulatory risk (policy stability, compliance)
  • Financial risk (fiscal health of states)
  • Institutional effectiveness (governance, dispute redressal)

Perception-Based Metrics

• Based on industry consultations across sectors
• Measures investor sentiment, experience, and ease of regulatory compliance

Strategic Relevance

• Identifies high-performing states to incentivize best practices
• Encourages lagging states to improve investor support infrastructure
• Enables data-driven decision-making for foreign and domestic investors
• Aligns with India’s goal of becoming a global manufacturing and innovation hub

Regional Investment Trends

• Southern States (Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, Kerala):
  • Account for ~30% of India’s GDP (FY24)
  • Lead in automobile, electronics, and mobile manufacturing
• Western States (Maharashtra, Gujarat):
  • Continue to dominate in industrial infrastructure and FDI inflows

Banking and Finance

1. SEBI Eases IPO Rules for Firms with Large Public Shareholder Base

Context

The Securities and Exchange Board of India (SEBI) has relaxed its stance on approving initial public offerings (IPOs) by companies that already have a large number of public shareholders. This move resolves a regulatory ambiguity that had previously stalled high-profile IPOs, including those by HDB Financial Services and Hero FinCorp.

Background of the Issue

• The delay in approvals stemmed from uncertainty around compliance with the Companies Act, particularly whether having a large public shareholder base—without prior public fundraising—constituted a violation.
• Companies with thousands of shareholders from employee stock ownership plans (ESOPs), private placements, or share transfers were caught in this grey area.

SEBI’s Clarification and Resolution

• Not a Violation if No Public Fundraising
  • If a company has not raised capital through a public offer, a large public shareholder base alone is not a regulatory breach.
• Most cases involve
  • ESOP conversions
  • Unlisted market trades
• ESOP allotments, even when resulting in 200+ shareholders, are exempt from the private placement threshold under Companies Act, 2013.

With this clarification, the regulatory bottleneck has been resolved, paving the way for IPO approvals.

Impact and Market Implications

• Five companies, including HDB Financial Services and Hero FinCorp, have recently received SEBI approval for IPOs following the clarification.
• This development is expected to reignite IPO activity, especially for NBFCs and fintech firms with widespread shareholder bases.
• It also enhances regulatory predictability, encouraging more private firms to prepare for public listing.

BS

2. Rethinking India's Monetary Policy in 2025

Current Economic Context

• CPI-based inflation fell to 3.16% in April 2025, and could dip below 3% in May.
• Despite this sharp fall, RBI has maintained a high repo rate of 6.0%, following only two 25 bps cuts in February and April 2025.
• Real repo rate now stands at +2.84%—one of the highest levels in recent history.

Historical Parallels & Policy Missteps

• Between 2015 and 2019, the RBI kept real rates excessively high (avg. +2.2%), damaging growth.
• RBI’s inflation projections were consistently higher than actual inflation, leading to policy over-tightening.
• This mirrors the current situation, where inflation is well below RBI’s FY26 forecast of 4%, yet rate cuts remain timid.

Lessons from Past Monetary Policy Cycles

• During 2009–2013, the RBI kept repo rates too low for too long, fueling double-digit inflation.
• In contrast, 2015–2019 saw excessively tight policy, which curbed inflation but stifled growth.

Critique of Current RBI Approach

• The RBI has become over-cautious, risking another episode of prolonged tight monetary policy.
• Current inflation drivers (low global oil prices, improved agri output, strong INR) suggest FY26 inflation could be well below 4%.
• Despite a robust Q4FY25 GDP growth of 7.4%, future risks (global slowdown, trade tensions) necessitate stronger domestic demand support.

Policy Recommendations

• Lower the repo rate more aggressively—by at least 50 basis points in June 2025.
• Recognize the long lags in monetary policy transmission; waiting too long could harm investment and consumption recovery.
• Reform inflation forecasting models, which have repeatedly overestimated inflation.
• Balance the dual mandate—price stability and growth—not just inflation control.

BS

3. Indian Bank Launches New NRE Account Variants and Premium Debit Cards for NRIs

Why in News?

• Indian Bank has introduced new NRE Savings Account variants and premium debit cards tailored for Non-Resident Indians (NRIs).
• The initiative aims to enhance banking convenience, security, and global accessibility for the Indian diaspora.

Key Features of New NRE Savings Accounts

• Designed to meet the evolving financial needs of NRIs.
• Linked with three premium debit cards:
  • IND D’Elite
  • IND Premium
  • IND Plus

Benefits Offered:

• Domestic and international airport lounge access
• Personal accident insurance coverage
• Exclusive loyalty rewards
• Seamless digital banking experience

4. Canara Bank Abolishes Average Monthly Balance Requirement for SB Accounts

Context

Canara Bank has announced the elimination of Average Monthly Balance (AMB) requirements across all types of Savings Bank (SB) accounts.

Key Highlights

• Policy Change: Minimum balance charges removed for:
  • Regular savings accounts
  • Salary accounts
  • NRI (Non-Resident Indian) accounts
• Previous Rule: Customers were required to maintain an Average Monthly Balance (AMB) or pay penalties.
• Current Impact: Greater financial flexibility and customer relief from service charges.
• First in PSU Category: Canara Bank becomes the first major PSU bank to implement a blanket waiver on AMB penalties for all savings account types.

Implications for Customers

• No penalty for non-maintenance of monthly balance.
• Encourages broader usage of formal banking services among rural, salaried, and overseas account holders.

About Canara Bank

• Founded: 1906
• Headquarters: Bengaluru, Karnataka, India
• MD & CEO: K. Satyanarayana Raju

Agriculture

1. National Agriculture-Renewable Energy Conference 2025 Highlights

Why in News?

Union Minister of Agriculture and Farmers Welfare, Shri Shivraj Singh Chouhan, attended the National Agriculture-Renewable Energy Conference 2025 organized by the National Solar Energy Federation of India (NSEFI) in New Delhi. He released NSEFI’s annual reference book and report on agriculture and renewable energy, and emphasized integrated strategies to boost farmers' prosperity through clean energy adoption.

Key Highlights

• Six-Fold Strategy for Farmer Prosperity:
  1. Increase agricultural production
  2. Reduce cost of production
  3. Ensure fair market prices
  4. Provide compensation for crop loss
  5. Promote diversification in agriculture
  6. Encourage balanced fertilizer use and organic farming
• Viksit Krishi Sankalp Abhiyan:
  • Ongoing 15-day campaign (since May 29, 2025)
  • Minister has visited Odisha, Jammu, Haryana, Uttar Pradesh, Patna, Maharashtra
  • Aim: Direct engagement with farmers across the country
• Agricultural Growth:
  • 40% rise in overall agricultural production since 2014-15
  • Major gains in wheat, rice, maize, groundnut
  • Need to further improve pulses and oilseeds production

Focus on Renewable Energy in Agriculture

• Solar Energy as a Game-Changer:
  • PM-KUSUM Scheme is supporting energy security for farmers
  • Encouraged installation of elevated solar panels over farmland to:
    • Co-generate food and energy
    • Enhance income of small and marginal farmers
• Proposal for Agrivoltaics:
  • Solar panels above crops can maximize land use
  • Government open to support modern, effective models of this system

Broader Vision

• Integrated Farming Systems: Recommended for optimal land utilization, especially by marginal farmers
• Environment Focus: On the eve of World Environment Day (June 5), the Minister stressed that solar energy is key to sustainable farming and environmental conservation

Daily Current Affairs Quiz
6 June, 2025

National Affairs

1. Ayush Nivesh Saarthi Portal

Why in News?

• On 29th May 2025, the Government of India launched the Ayush Nivesh Saarthi portal at the Ayush Stakeholder/Industry Interaction Meet at Vanijya Bhawan, New Delhi.
• Jointly unveiled by:
  • Shri Piyush Goyal, Union Minister of Commerce & Industry
  • Shri Prataprao Jadhav, MoS (IC), Ministry of Ayush

About Ayush Nivesh Saarthi Portal

• Purpose: A digital, investor-focused platform for promoting investments in India's Ayush (Ayurveda, Yoga, Unani, Siddha, and Homeopathy) sector.
• Developed by: Ministry of Ayush in collaboration with Invest India
• Target Users: Domestic and global investors interested in the traditional medicine and wellness ecosystem

Key Features

• Investor Facilitation: Provides real-time support and streamlined interface for project guidance
• Policy Access: Consolidates central and state-level policy frameworks, incentives, and approval procedures
• Investment Opportunities: Lists investment-ready Ayush projects
• Transparency & Ease of Doing Business: Offers real-time data, policy clarity, and a unified interface for approvals and schemes

Significance

• Economic Growth:
  • Supports 100% FDI in Ayush via automatic route
  • Catalyzes job creation, MSME participation, and startup incubation
• Global Wellness Leadership:
  • Positions India as a hub for natural and holistic health systems
  • Aligns with the growing global demand for preventive, natural healthcare
• Support to Medical Value Travel (MVT):
  • Ayush is a key contributor to India’s $13 billion MVT sector
• Sectoral Growth:
  • Ayush sector recorded 17% CAGR (2014–2020)
  • Leverages India’s biodiversity: over 8,000 medicinal plant species

2. Ek Ped Maa Ke Naam 2.0

Why in News?

• On World Environment Day 2025, Union Education Minister Dharmendra Pradhan launched Ek Ped Maa Ke Naam 2.0, along with:
  • Eco Clubs for Mission LiFE Web Portal
  • Microsite for Ek Ped Maa Ke Naam 2.0
  • Special Environmental Education Modules for schoolchildren

Key Highlights

Launch Details

• Venue: New Delhi

Objectives of the Campaign

• Inspire tree plantation in honour of mothers
• Promote environmental consciousness among school students
• Integrate climate awareness and sustainable living into the curriculum through NEP 2020

Special Modules

• Launched for Preparatory, Middle, and Secondary stages
• Focus on:
  • Parallels between mothers and Mother Earth
  • Establishing Eco Clubs for Mission LiFE
  • QR Codes for flora and School Nutrition Gardens
  • Activity-based learning: puzzles, field assignments, hands-on tasks

Eco Clubs for Mission LiFE

• Align with 7 key themes of Mission LiFE (e.g., energy, waste, water, biodiversity)
• Target: Coverage in 14.7 lakh schools
• Mandate to establish Eco Clubs in all schools by 29th July 2025 (NEP 2020 anniversary)

Web Portal & Microsite Features

• Portal: https://ecoclubs.education.gov.in
• Features:
  • Multilingual interface
  • School-specific dashboards to track activities
  • Upload selfies of tree plantation with mothers
  • E-certificate generated upon participation
  • Real-time monitoring & impact analysis

3. Waste Picker Enumeration App Launched under NAMASTE Scheme (MoSJE)

Why in News?

• On World Environment Day 2025, the Ministry of Social Justice & Empowerment (MoSJE) launched the Waste Picker Enumeration App under the NAMASTE Scheme in New Delhi.
• Aimed at ensuring dignity, inclusion, and safety for India’s informal waste workforce.

Major Announcements & Features

Waste Picker Enumeration App

• Digital profiling of 2.5 lakh waste pickers across India
• Enables:
  • Formal occupational ID cards
  • Ayushman Bharat (PM-JAY) health insurance
  • PPE kits, skill training & capital subsidies
  • Integration into urban waste management systems

About the NAMASTE Scheme

Full Form: National Action for Mechanised Sanitation Ecosystem
Launch Year: July 2023
Type: Central Sector Scheme

Purpose:

• Eliminate manual scavenging and hazardous sanitation work
• Promote mechanized, safe, and skilled sanitation services
• Extend coverage to sewer workers, septic tank cleaners, and now waste pickers

Expanded NAMASTE Scheme Scope

• Earlier focus: Sewer and Septic Tank Workers (SSWs)
• Expanded in June 2024 to include Waste Pickers
• Implemented jointly by MoSJE & MoHUA
• Executing agency: NSKFDC (National Safai Karamcharis Finance & Development Corporation)

Objectives of Expanded NAMASTE Scheme

• Recognize Waste Pickers as critical agents of India’s circular economy
• Ensure:
  • Occupational safety & health
  • Social protection & entitlements
  • Livelihood security
  • Collective empowerment through management of 750 Dry Waste Collection Centers (DWCCs)

Significance

• Promotes environmental justice, inclusive urban governance & formalization of informal workers
• Supports Mission LiFE, Swachh Bharat Mission 2.0, and Sustainable Development Goals (SDGs):
  • SDG 1 (No Poverty)
  • SDG 3 (Good Health & Wellbeing)
  • SDG 8 (Decent Work)
  • SDG 11 (Sustainable Cities)

4. India-U.S. Bilateral Trade Agreement (BTA)

Context

India is actively negotiating an early tranche of the proposed Bilateral Trade Agreement (BTA) with the United States to protect key export sectors from punitive tariffs. This move is driven by a scheduled 26% reciprocal tariff hike on July 9, 2025, and the need to restore competitiveness for Indian goods affected by previous US trade actions.

Key Objectives of India’s Proposal

• Tariff Reversal Commitment: India seeks a binding US commitment to revert to pre-April 2 tariff levels on key labour-intensive products.
• Affected Product Categories:
  • Apparel
  • Leather
  • Footwear
  • Gems and jewellery
• These goods were subjected to an additional 10% tariff under former US President Donald Trump's administration, raising effective duties from low single digits to double digits.

India’s Strategic Proposal

• Since the US administration currently lacks Congressional mandate to implement tariff cuts, India is proposing a “post-dated cheque” clause:
  • The BTA should include a paragraph stating that once Congressional authorisation is granted, the US will reduce tariffs to zero on labour-intensive goods, subject to future negotiations.
  • This will help lock in intent and provide policy predictability for exporters.

Urgency of an Early Tranche

• A 26% reciprocal tariff by India is scheduled to come into effect on July 9, 2025, which would further escalate trade costs.
• India is pushing for an early phase of the BTA to be finalised before this date to prevent tariff retaliation and maintain trade momentum.

Challenges and US Position

• The US has clarified that it cannot immediately cut tariffs due to the lack of Congressional approval.
• However, ongoing negotiations aim to build consensus around a future commitment, conditional on Congressional support.

Strategic and Economic Significance

• Restoring pre-2018 tariff regimes would reinforce bilateral trust and address India’s trade imbalance with the US.
• It would also contribute to inclusive and sustainable economic growth by supporting labour-intensive, export-oriented industries in India.

5. EnviStats India 2025

Released by: Ministry of Statistics and Programme Implementation (MoSPI)
Framework Used: Framework for the Development of Environment Statistics (FDES 2013)

Why in News?

8th edition of EnviStats India 2025: The 8th edition of EnviStats India 2025 was released by MoSPI on 5 June 2025, reflecting a structured statistical profile of India’s environment.

Key Environmental Indicators and Trends

Energy Generation Trends

• Thermal Power: Increased from 7.92 lakh GWh (2013–14) to 13.26 lakh GWh (2023–24)
• Renewable Energy: Rose from 65,520 GWh to 2.25 lakh GWh in the same period

Fisheries Production

• Inland Fish Output: Increased from 61.36 lakh tonnes to 139.07 lakh tonnes
• Marine Fish Output: Reached 44.95 lakh tonnes by 2023–24

Temperature and Rainfall Patterns

• Mean Annual Temperature: Rose from 25.05°C (2001) to 25.74°C (2024)
• Rainfall: High inter-annual variability, no clear rising/falling trend

Biodiversity Snapshot

• Total Faunal Species: 1,04,561 species
  • Soil: 22,404 | Freshwater: 9,436 | Mangroves: 5,023

Public Expenditure on Environment (2021–22)

• Highest Allocation: ₹2,433 crore for Environmental Sustainability
• Lowest Allocation: Agroforestry

New Additions in 2025 Edition

• Ramsar Sites
• Sanitation Coverage
• Transport Infrastructure
• Electricity Access

Strengths of the Report

• Data-Driven Policy Support: Enhances climate action, resource planning, and biodiversity protection
• Energy Transition Tracking: Captures clear shift toward renewables
• Inclusive Indicator Set: Socio-environmental factors now covered for holistic sustainability view
• Biodiversity Highlight: Documents India’s rich ecological footprint with species-level data

Key Gaps and Challenges

• No Regional Break-Up: Rainfall/temperature trends not disaggregated by state or district
• Lacks Policy Impact Evaluation: Purely descriptive, no assessment of intervention outcomes
• Delayed Data: Several datasets are retrospective, limiting real-time response utility
• No Vulnerability Assessment: Rising climate risks not mapped to adaptive capacity or risks

Banking and Finance

1. RBI Cuts Repo Rate to 5.5%

Context

In a bid to boost economic growth and ease borrowing costs, the Reserve Bank of India (RBI) announced a 50 basis points (bps) cut in the repo rate, lowering it from 6.00% to 5.50%. This is the third rate cut in 2025 and the largest single cut in over two years. The decision was made following a three-day Monetary Policy Committee (MPC) meeting chaired by RBI Governor Sanjay Malhotra.

Key Rates Announced

Why Did RBI Cut Rates?

• Inflation Outlook: CPI inflation eased to 3.2% in April 2025, the lowest in nearly six years, driven by falling food prices, moderate fuel costs, and stable core inflation.
• Growth Prospects: India’s GDP growth is steady at a projected 6.5% for 2025–26, but RBI sees scope to stimulate consumer demand and private investment.
• Global Risks: Ongoing global uncertainties and trade tensions prompted a supportive monetary stance.

What Does the Rate Cut Mean for You?

Lower EMIs for Borrowers

• Home loans, car loans, and personal loans linked to repo rate or external benchmarks are expected to become cheaper.
• Banks and NBFCs will likely pass on the benefits in the coming weeks.

Cheaper Credit for Businesses

• Small businesses and startups may benefit from lower working capital costs, potentially encouraging hiring and investment.

Impact on Fixed Deposits (FDs)

• FD interest rates are expected to decline, impacting savers, especially senior citizens.
• Investors are advised to consider government-backed schemes, debt mutual funds, or other targeted saving instruments.

Loan and Investment

• For Borrowers:
  • Floating rate loans are favorable in the current environment.
  • Borrowers with repo-linked home loans will benefit immediately.
  • Existing borrowers with older loans tied to MCLR or base rates should evaluate refinancing to secure lower rates.
• For FD Investors:
  • Lock in higher FD rates now for longer tenures (3-5 years) before rates drop.
  • Consider 2-3 year corporate bonds, which may offer better spreads than FDs.

Policy Stance and Outlook

• RBI shifted its policy stance from "accommodative" to "neutral", signaling that future rate cuts depend on inflation and growth trends.
• The next MPC meeting is scheduled for August 4–6, 2025.

Impact on Affordable Housing and Real Estate

• Home Loan Affordability: Lower repo rates reduce EMIs, improving home loan affordability, particularly for mid-income and affordable housing segments.
• Real Estate Demand:
  • Expected boost in buyer sentiment, enquiries, and sales volumes, especially in affordable and mid-segment housing.
  • Banks may lower home loan interest rates, enhancing developer and buyer confidence.
• Liquidity Support: Reduction in the Cash Reserve Ratio (CRR) will release more funds for banks to lend, helping developers access capital and accelerate project timelines.

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2. Insolvency and Bankruptcy Code (IBC)

Why in News?

• As of 2024, creditors have realised ₹3.89 lakh crore under IBC with a recovery rate of 32.8% (IBBI data).
• The IBC is now a major instrument for corporate debt resolution and economic discipline.

Background

• Enacted in 2016 as India’s first comprehensive bankruptcy law.
• Objective: Provide a time-bound, creditor-driven resolution process for insolvency.
• Resolution timeline capped at 330 days, beyond which liquidation follows.

Role in Debt Recovery

• IBC = 48% of all bank recoveries (FY24) – RBI Trends & Progress Report 2024.
• Preferred over SARFAESI, Lok Adalats, and DRTs.

Key Impacts

• Credit Culture Shift: Debtors now more disciplined in repayments.
• Improved Credit Allocation: IIM Bangalore study indicates:
  • Decline in Gross NPAs from 11.2% (Mar 2018) → 2.8% (Mar 2024).
  • Cost of debt for distressed firms down by 3% post-IBC.
• Corporate Governance Reforms: More independent directors on resolved firms’ boards.
• Early Distress Resolution: Significant pre-admission settlements.

Key Challenges

Suggestions for Reform

• Strengthen NCLT/NCLAT infrastructure and expand benches.
• Pre-packaged insolvency for faster, informal resolution (especially for MSMEs).
• Legal sanctity of approved resolution plans to avoid post-facto judicial reversals.
• Codify commercial wisdom protection to avoid excessive litigation.
• Update valuation, workforce, and IP treatment frameworks.

3. Flipkart Gets NBFC Licence from RBI

Context

Flipkart has received a Non-Banking Financial Company (NBFC) licence from the Reserve Bank of India (RBI). This marks the first instance of a large e-commerce player in India being permitted to lend directly. The licence was officially granted on March 13, 2025, as per RBI documents reviewed by Reuters.

What This Means

• Flipkart can now offer loans directly to:
  • Consumers shopping on its platform
  • Sellers operating in its marketplace
• It cannot accept deposits, as per NBFC regulations.
• Direct lending is a more profitable model compared to existing partnerships with third-party banks and NBFCs.

Implications

• Flipkart Finance Pvt Ltd applied for this licence in 2022.
• This move aligns Flipkart more closely with fintech operations, helping Walmart (Flipkart’s majority owner with 80%+ stake) deepen its footprint in India’s digital financial ecosystem.
• Could trigger a broader shift in how e-commerce and embedded finance converge in India.

4. IndusInd Bank Accounting Irregularities

Context

On March 10, 2025, IndusInd Bank disclosed accounting discrepancies in its derivatives portfolio, with an estimated adverse impact of 2.35% on its net worth as of December 2024.

NFRA Investigation

• National Financial Reporting Authority (NFRA) received a complaint via CPGRAMS on suspected accounting lapses.
• NFRA is coordinating with the RBI to access the forensic audit conducted by Grant Thornton, commissioned by the central bank.
• NFRA's focus is on determining the role of the auditors of IndusInd Bank, as it falls within NFRA's mandate for all listed entities.

Internal Red Flags

• IndusInd Bank’s board suspects fraud involving certain employees who played significant roles in accounting and financial reporting.

ICAI Oversight

• On May 29, ICAI's Financial Reporting Review Board initiated a review of IndusInd’s financial statements for FY24 and FY25.
• If serious noncompliance is detected, it will be referred to Director (Discipline) and reported to relevant regulators.

SEBI Action

• The Securities and Exchange Board of India (SEBI) initiated a suo motu UPSI probe into possible insider trading linked to the derivatives disclosure.
• SEBI asked five senior IndusInd officials, including:
  • Former CEO Sumant Kathpalia
  • Former Deputy CEO Arun Khurana
    to disgorge ₹20 crore for alleged insider trading.

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5. RBI Data: Bank Credit and Deposit Trends in FY2024–25

Overall Bank Credit Growth

• Total Credit Growth (FY25): Slowed to 11.1%, compared to 15.3% in FY24.
• Private Sector Banks: Witnessed the steepest slowdown, with March 2025 credit growth dipping to 9.5%, after maintaining over 15% growth for three consecutive years.

Retail Lending Trends

• Retail Credit Share: Increased to 31% of total bank credit in FY25 (up from 24.1% in FY20).
• Retail Credit Growth: Eased to 13.2%, but still outpaced overall credit expansion.
• Key Segments: Consumer durable loans and other personal loans accounted for nearly one-third of retail credit.

Borrower Profile Shifts

• Individual Borrowers: Contributed 47.8% of total credit as of March 2025, up from 41.5% in March 2020.
• Women Borrowers: Share rose gradually to 23.8% in FY25, up from 22.0% five years ago—indicating improved credit access for female borrowers.

Deposit Composition and Interest Rate Trends

• Savings Deposits: Share declined to 29.1% in March 2025 (from 30.8% in 2024 and 33.0% in 2023).
  • Cause: Banks lowered savings deposit rates to protect net interest margins.
• Fixed Deposits (FDs): Gained preference among savers.
  • Term Deposits ≥7%: Accounted for 72.7% of all FDs in March 2025—signaling depositor shift toward higher returns.

Key Takeaways

• Private banks are witnessing a notable slowdown in credit growth, post a multi-year boom.
• Retail lending remains the main driver, despite some moderation in pace.
• A clear shift in depositor behavior is visible, with high-return FDs gaining against low-yielding savings accounts due to interest rate differentials.

6. Motilal Oswal BSE 1000 Index Fund Launched

Context

Motilal Oswal Mutual Fund has launched India’s first index fund tracking the BSE 1000 Total Return Index, offering investors access to a broad-based, passive equity portfolio covering 1,000 companies across large, mid, small, and micro-cap segments. The New Fund Offer (NFO) is open from June 5 to June 19, 2025.

Key Highlights

Fund Objective & Benchmark

• Objective: Generate returns that mirror the BSE 1000 Total Return Index, subject to tracking error.
• Benchmark: BSE 1000 TRI, representing ~94% of India’s listed market cap across 22 sectors.

Investment Features

• Type: Passive Index Fund
• Market Coverage: Large, mid, small, and micro-cap companies
• Top 10 Weight Cap: 33% to mitigate concentration risk
• Rebalancing: Semi-annual
• Weighting Method: Free-float market cap weighted

Why Invest in the Motilal Oswal BSE 1000 Index Fund?

Broad Diversification

• Exposure to 1,000 companies across 22 sectors
• Includes India’s top-performing emerging businesses and industry leaders

Passive & Cost-Effective

• No active stock picking
• Reduces fund manager bias and lowers cost

Aligned with India’s Growth Story

• Reflects India’s evolving economy across tech, infra, manufacturing, and consumption
• Linked to Viksit Bharat 2047 vision (target: $23–$35 trillion GDP)

Lower Risk via Index Cap

• 33% cap on top-10 stocks reduces overexposure to market heavyweights

7. SEBI Notifies Framework for ESG Debt Securities Including Social, Sustainability, and Linked Bonds

Notified by: Securities and Exchange Board of India (SEBI)
Effective From: June 5, 2025
Purpose: To standardize the issuance and monitoring of Environmental, Social, and Governance (ESG)-linked debt instruments in India

Context

Markets regulator Sebi came out with an operational framework for issuance of social bonds, sustainability bonds and sustainability-linked bonds, which together will be known as Environment, Social and Governance (ESG) debt securities.

What are ESG Debt Securities?

Financial instruments issued to raise funds exclusively for projects with positive environmental, social, or governance (ESG) outcomes.

Types of ESG Debt Instruments:

• Green Bonds: Focus on environmental benefits (e.g., renewable energy)
• Social Bonds: Target social impact (e.g., affordable housing, healthcare)
• Sustainability Bonds: Blend of green and social objectives
• Sustainability-Linked Bonds: Linked to the issuer’s ESG performance targets

Key Features of ESG Debt Securities

• Use of Proceeds:
  Funds must be used for eligible ESG projects only
  Clear allocation for financing or refinancing
• Accurate Labelling:
  Bonds must be labelled (green, social, etc.) based on the primary project objective
• Global Compliance:
  Must adhere to international ESG norms and best practices
• Third-Party Validation:
  Mandatory engagement of independent reviewers/certifiers
• Issue Scope:
  Applies to both public issues and private placements

Highlights of SEBI’s Operational Framework

1. Classification Criteria

• Issuers must clearly classify debt as green, social, sustainability, or sustainability-linked
• Each issuance must demonstrate how the primary objective aligns with ESG goals

2. Mandatory Disclosures

• Initial (in offer documents):
  • Eligibility of projects
  • Selection & evaluation process
  • Indicative use of proceeds (financing vs refinancing)
• Ongoing/Annual:
  • Fund utilization reports
  • Quantified ESG impact metrics
  • Deviation statements (if any)

3. Independent Review

• Requirement to appoint external reviewers/certifiers for:
  • Validating project eligibility
  • Ensuring ESG claims are credible and measurable

4. Impact Monitoring & Transparency

• Issuers must monitor, measure, and disclose the ongoing impact of funded projects
• Ensures funds are not misused or greenwashed

Significance & Impact

• Promotes Responsible Capital: Aligns India’s capital markets with sustainable finance standards
• Boosts Investor Confidence: Transparent reporting and third-party audits reduce ESG risks
• Strengthens ESG Ecosystem: Encourages Indian corporates to adopt long-term ESG strategies
• SDG Alignment: Supports India’s commitments to UN Sustainable Development Goals, Paris Climate Agreement, and G20 green finance roadmap

Agriculture

1. FAIFA Report Urges Action on Climate-Resilient Agriculture

Context

The Federation of All India Farmer Associations (FAIFA) released a report titled “Nourishing the Future: A Report on Climate-Resilient Agriculture” during a seminar in New Delhi on June 5, 2025. The study underscores the growing threats climate change poses to Indian agriculture and outlines key interventions needed to build resilience.

Key Climate Risks Identified

• Erratic Rainfall
• Unseasonal Droughts
• Temperature Spikes
• Rising Pest Incidence

These factors are disrupting crop cycles in major producing States and threatening farm productivity and rural incomes.

Barriers to Sustainable Farming Adoption

• High Initial Costs of sustainable and climate-resilient technologies
• Fragmented Infrastructure, especially in irrigation and storage
• Low Awareness among farmers about climate-smart practices

Recommendations from FAIFA Report

Policy and Institutional Actions

• Bridge implementation gaps in existing climate-resilient schemes
• Strengthen collaboration among government bodies, research institutions, and private sector players
• Promote integrated farming systems and conservation agriculture

Public Investment and Research

• Scale R&D in climate-resilient seed varieties
• Promote precision agriculture tools with higher subsidies
• Expand farmer training programmes on sustainable practices

Targeted Subsidies

• Focus on:
  • Renewable energy solutions
  • Micro-irrigation infrastructure
  • Organic and bio-based inputs

Commendation for Existing Central Schemes

The report appreciated government initiatives such as:

• Pradhan Mantri Fasal Bima Yojana (PMFBY)
• Micro-irrigation and drip irrigation schemes

However, it urged greater targeting and flexibility to meet local needs more effectively.

Equity and Adaptation Needs

• Small and marginal farmers are the most affected due to low adaptive capacity
• There is growing urgency to balance food security with climate mitigation
• A shift is needed from a “grow more” approach to a “grow better” mindset, according to FAIFA General Secretary Murali Babu

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Facts To Remember

1. Kaziranga National Park to be expanded to promote tourism

The Assam Cabinet, headed by Chief Minister Himanta Biswa Sarma, approved the expansion of the Kaziranga National Park and Tiger Reserve.

2. PM Modi to inaugurate Kashmir’s first all-weather rail link with Delhi today

Kashmir is set to finally have a rail link with the rest of the country, as Prime Minister Narendra Modi will inaugurate the Srinagar-Jammu-Delhi rail link on Friday at Katra in Udhampur district of Jammu.

3. Tata Capital IPO Likely to Receive SEBI Nod Soon: Set to be India’s Fourth-Largest Public Issue

Tata Capital, a key non-banking financial company (NBFC) under the Tata Group umbrella, is poised to receive regulatory clearance from the Securities and Exchange Board of India (SEBI) for its ₹17,200 crore ($2 billion) Initial Public Offering (IPO). The approval is expected within the next few weeks.

Daily Current Affairs Quiz
7 June, 2025

National Affairs

1. 800-Year-Old Shiva Temple from Pandya Era Unearthed in Tamil Nadu

Context

An 800-year-old Shiva temple dating back to the later Pandya period has been unearthed in Udampatti village, Melur taluk, Madurai district, Tamil Nadu. The discovery sheds light on the region’s lost religious architecture and socio-economic systems during the 13th century.

Key Highlights

• Period: 1217–1218 CE during the reign of Maravarman Sundara Pandya
• Location: Udampatti village, previously known as Attur
• Deity: Dedicated to Lord Shiva, known as Thennavanisvaram
• Discovery: Unearthed by local children; confirmed by experts after clearing the site
• Remains: Only the temple’s stone foundation is intact, with inscriptions providing key historical details

Archaeological Significance

• Inscriptions: Two Tamil inscriptions found on the stone base
• Translation: The temple was financially supported through land and waterbody revenues
• Transaction: A waterbody named Nagankudi and surrounding land sold for 64 kasu (coins) by chieftain Alagaperumal to a man named Nambi Perambala Kuthan alias Kangeyan
• Revenue Usage: Taxes from the land were dedicated to the temple’s daily operations, indicating its financial independence

Cultural Importance

• The temple's name, Thennavanisvaram, reflects the Pandya ruler’s title "Thennavan"
• The inscriptions validate ancient references to Attur village and its significance in the local temple economy
• The findings align with 1974–75 reports by the Tamil Nadu State Department of Archaeology about ancient temples in the region

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2. UMEED Portal

Context

Union Minister for Minority Affairs Kiren Rijiju launched the Unified Waqf Management, Empowerment, Efficiency and Development (UMEED) portal, a centralized digital platform aimed at modernizing and improving the management of Waqf properties across India.

Key Highlights

• Launched by: Union Minister for Minority Affairs, Kiren Rijiju
• Platform Name: UMEED (Unified Waqf Management, Empowerment, Efficiency and Development)
• Objective: To ensure real-time uploading, verification, and monitoring of Waqf properties
• Significance: Aims to enhance transparency, accountability, and community participation in Waqf asset administration

Features of the UMEED Portal

• Digital Inventory: Creation of a centralized database with geotagging of all Waqf properties
• GIS Integration: Mapping of properties using GIS for improved oversight and spatial planning
• Public Access: Availability of verified property records and reports for citizens
• Online Grievance Redressal: Responsive digital system to address public concerns and disputes
• E-Governance Tools: Seamless integration with government systems for efficient monitoring and decision-making

PIB

3. Bharatiya Bhasha Anubhag

Context

Union Home Minister Amit Shah launched the Bharatiya Bhasha Anubhag (BBA)—Indian Languages Section—to institutionalize the use of Indian languages in official administration and reduce dependence on foreign languages. The initiative aims to empower governance processes by rooting them in the linguistic diversity of India.

Key Highlights

• Launched by: Union Home Minister Amit Shah
• Initiative Name: Bharatiya Bhasha Anubhag (BBA) – Indian Languages Section
• Objective: To promote use of Indian languages in government communication and decision-making
• Budget Allocation (2024–25): ₹56 crore

Policy Context and Implementation

• The BBA will provide a platform to translate documents across Indian languages and Hindi, facilitating bilingual governance
• Linked to the Official Languages Rules, which govern communication between the Centre and States
• For Region C States (Tamil Nadu, Kerala, Karnataka), the rules mandate correspondence in English, which the BBA now aims to supplement with local language support

4. India Hosts 4th India-Central Asia Dialogue

Overview

• Event: 4th India-Central Asia Dialogue
• Venue: New Delhi, India
• Chair: Dr. S. Jaishankar, External Affairs Minister of India
• Participants: Foreign Ministers of Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, Uzbekistan

About the India-Central Asia Dialogue

• Initiated: 2019 (Samarkand)
• Nature: Multilateral forum to strengthen political, strategic, economic, and cultural engagement between India and the five Central Asian nations.
• Key Focus Areas: Trade, transport, energy, IT, health, security, and people-to-people connections.

Key Outcomes of the 4th Dialogue

• Counter-Terrorism & Regional Security
  • Condemned the Pahalgam terror attack.
  • Reiterated demand for early adoption of UN Comprehensive Convention on International Terrorism.
• Critical Minerals & Rare Earth Cooperation
  • Agreed to enhance collaboration on exploration, processing, and trade of rare earth elements.
  • Second India-Central Asia Rare Earth Forum to be organized soon.
• Connectivity & Trade Facilitation
  • Called for full operationalization of the International North-South Transport Corridor (INSTC).
  • Supported inclusion of Uzbekistan and Turkmenistan in INSTC framework.
  • Promoted usage of Chabahar Port for regional trade.
• Digital and Financial Integration
  • Emphasized development of digital payment systems, interbank cooperation, and trade in local currencies.
• Health & Traditional Medicine
  • Discussed progress on Universal Health Coverage (UHC) and medical tourism.
  • Promoted integration of traditional medicine systems.
• Energy and Technology Partnerships
  • Committed to collaborating on India Stack, biofuels, and the International Solar Alliance.
  • Joint emphasis on digital public infrastructure and clean energy initiatives.
• Multilateral Support
  • Central Asian countries reaffirmed support for:
    • India’s permanent membership in UNSC
    • Enhanced Indian role in SCO and UN-led platforms

Challenges in India–Central Asia Relations

• Geographical Isolation: No direct land border; transit limitations via Pakistan.
• China’s Dominance: China’s BRI investments overshadow India’s initiatives.
• Afghanistan Instability: Disrupts trans-regional connectivity.
• Low Trade Volume: Under $2 billion trade (2022–23).
• Bureaucratic & Language Barriers: Slow execution of agreements.

Way Forward

• Enhance INSTC & Chabahar Utilization: Use TIR Convention to streamline customs and multimodal transit.
• Boost Digital Diplomacy: Implement India Stack for governance and fintech cooperation.
• Accelerate Critical Mineral Ties: Encourage joint R&D, value chain development, and green energy collaboration.
• Strengthen Soft Power: Expand ITEC programs, cultural exchanges, and scholarship schemes.
• Establish Functional Mechanisms: Regular Joint Working Groups on health, fintech, climate, and security.

5. National e-Vidhan Application (NeVA)

Overview

• Event: Inauguration of National e-Vidhan Application (NeVA)
• Date: June 9, 2025
• Location: Puducherry Legislative Assembly
• Inaugurated By: Union Minister for Parliamentary Affairs

What is NeVA?

• NeVA is a digital legislative platform that enables paperless functioning of State and Union Territory legislatures across India.
• Anchored in the vision of ‘One Nation – One Application’, it provides a single digital interface for conducting legislative business.

Development & Implementation

• Developed by: Ministry of Parliamentary Affairs (MoPA)
• Technological Partners:
  • Supported by MeitY
  • Integrated with BHASHINI for AI/ML-powered multilingual translation
• Approval Date: January 15, 2020 (by Public Investment Board)
• Project Cost: ₹673.94 crore (centrally sponsored scheme)

Aims and Objectives

• To digitize legislative processes and ensure paperless governance in all Houses of legislature.
• To create a national repository of legislative data, enhancing transparency and real-time information access.

Key Features of NeVA

1. Complete Paperless Workflow
   • Digitally manages agendas, bills, questions, debates, and replies.
2. Real-Time AI Translation
   • Powered by BHASHINI, enabling instant multilingual translation of debates and documents.
3. Unified Digital Workspace
   • Seamlessly connects legislators, Assembly staff, and government departments on a single platform.
4. Secure Legislative Archives
   • Stores all documents in a searchable digital format with role-based secure access.
5. Capacity Building
   • Offers training modules for MLAs and Assembly staff to support user-friendly adoption.

Impact and Benefits

• Reduces the carbon footprint by eliminating paper usage.
• Enhances transparency, efficiency, and institutional memory in law-making.
• Promotes interoperability between various legislative bodies.
• Empowers citizens through real-time access to legislative data via the NeVA mobile app and website.

TH

6. 12th BRICS Parliamentary Forum to Be Held in 2026

Overview

• Event: India takes over as Chair of the 12th BRICS Parliamentary Forum
• Timeline: Chairmanship tenure from 2025 to 2026
• Previous Host: Brazil (11th Forum)
• Key Development: Forum condemned the Pahalgam terror attack, highlighting unified parliamentary voice against terrorism

About BRICS Parliamentary Forum

• Established: First held in 2015 to complement BRICS summits with inter-parliamentary engagement
• Nature: A multilateral platform for parliaments of BRICS nations to engage on key global challenges
• Rotational Chairmanship: Changes annually among BRICS countries

Objectives and Functions

• Strengthen Parliamentary Diplomacy: Promotes collaboration on global governance, terrorism, and sustainable development
• Promote Legislative Synergy: Encourages harmonization in lawmaking, democratic practices, and oversight mechanisms
• Voice of the Global South: Positions the forum as a parliamentary bloc for emerging economies and underrepresented regions
• Discuss Contemporary Challenges: Including AI governance, climate resilience, digital economy, and equitable growth

Focus Areas for India’s Chairmanship (2025–26)

• Terrorism and Global Security: Push for legislative consensus against terrorism
• Digital Democracy and AI Governance: Foster frameworks on AI regulation and ethical tech use
• Parliamentary Innovation: Promote e-Parliament tools, paperless lawmaking, and public engagement
• Inclusive Growth and SDGs: Align parliamentary policies with Sustainable Development Goals (SDGs)
• Civil Society and Youth Participation: Broaden outreach to non-state actors and youth in democratic governance

About BRICS

• What is BRICS?
  • A multilateral coalition of 11 emerging economies working towards reforming global institutions and promoting inclusive growth
• Founded:
  • Term ‘BRIC’ coined in 2001
  • First Summit: 2009, Ekaterinburg (Russia)
• No Permanent HQ: Chair rotates yearly
• Original Members: Brazil, Russia, India, China, South Africa
• New Members (2024 expansion): Egypt, Ethiopia, Iran, Indonesia, Saudi Arabia, UAE

Core Functions of BRICS

• Promote economic cooperation and multilateral reforms
• Strengthen South-South partnerships and global digital inclusion
• Collaborate on climate change, energy transition, fintech, and health infrastructure
• Support technology-driven governance and civil society engagement

7. INS Arnala

Overview

• Event: Commissioning of INS Arnala, the first of 16 Anti-Submarine Warfare Shallow Water Crafts (ASW-SWC)
• Location: Visakhapatnam naval base
• Significance: Boosts India’s coastal and sub-surface maritime security capabilities

About INS Arnala

• Type: Indigenously-built Anti-Submarine Warfare Shallow Water Craft
• Builder: Garden Reach Shipbuilders & Engineers (GRSE), Kolkata, in partnership with L&T Shipbuilders
• Operational Area: Coastal waters and the Indian Ocean Region (IOR)
• Primary Roles: Coastal surveillance, mine-laying, sub-surface operations, Low-Intensity Maritime Operations (LIMO), and Search and Rescue (SAR)
• Propulsion: First Indian naval warship powered by a Diesel Engine–Waterjet combination
• Indigenization: Approximately 80% indigenous systems from Bharat Electronics Limited (BEL), Mahindra Defence, MEIL, and L&T
• Advanced Systems: AI-driven combat systems, sonar arrays, and mine-laying equipment

About Arnala Fort (Namesake of INS Arnala)

• Location: Arnala village, Vasai taluka, Maharashtra, near Mumbai’s northern coast
• Other Names: Jaldurg or Janjire Arnala
• Historical Background:
  • Built by Sultan Mahmud Begda in 1516
  • Later controlled by Portuguese, Marathas, Mughals, and Peshwas
• Architecture: Rectangular structure with three main entrances and multiple bastions
• Cultural Features: Houses temples such as Tryambakeshwar, Bhavani Mata, Kalika Mata, and Mahadev
• Sustainability: Despite scarcity of food on the fort, water was available in wells, reflecting coastal defense ingenuity

TET

Banking and Finance

1. RBI Cuts Repo Rate to 5.5% and CRR

Key Policy Announcements

• Repo Rate: Reduced by 50 basis points to 5.50%
• Cash Reserve Ratio (CRR): Slashed by 100 basis points in a staggered manner
  • Final CRR to be 3% of NDTL
  • Four phased cuts of 25 bps each on:
    • Sept 6, Oct 4, Nov 1, Nov 29
• Other Rates:
  • Standing Deposit Facility (SDF): 5.25%
  • Marginal Standing Facility (MSF) & Bank Rate: 5.75%
• Policy Stance: Shifted from ‘accommodative’ to ‘neutral’
  • Offers flexibility for future tightening if inflation trends reverse

Why Did RBI Cut Rates and CRR

• Inflation under control:
  • CPI inflation for FY26 projected at 3.7% (revised down from 4%)
    • Q1: 2.9%, Q2: 3.4%, Q3: 3.9%, Q4: 4.4%
• Stable growth outlook:
  • FY26 GDP growth retained at 6.5%
  • Supported by:
    • Private consumption recovery
    • Rural activity revival
    • Government capex
    • Above-normal monsoon forecast
• Liquidity and transmission goals:
  • CRR cut to release ₹2.5 lakh crore in primary liquidity
  • Aims to reduce cost of funds and enhance credit flow
• Growth Concerns:
  • Growth remains below aspirational levels amid global challenges
  • Emphasis on stimulating domestic private consumption and investment

Impact on Borrowers, Banks, and Depositors

a. For Borrowers:

• Home, auto, and personal loans likely to get cheaper
• Repo-linked borrowers to benefit faster
• Potential for home loan rates <8%, last seen in 2022

b. For Banks and NBFCs:

• Cost of funds to decline
• More lending capital available
• Expected to strengthen policy transmission

c. For Savers and FD Investors:

• FD rates may decline
• Consider:
  • Locking in long-term FDs now
  • Exploring debt mutual funds and corporate bonds

Sectoral & Macroeconomic Outlook

• Real estate: Boost for affordable and mid-income housing
  • Lower EMIs to improve buyer affordability
  • Developer borrowing costs to decline
• Rural economy: Supported by above-normal monsoon, aiding farm output and demand
• Services sector: Momentum expected to continue
• Corporate sector: Improved balance sheets, rising capacity utilisation to support investment

2. RBI’s Monetary Policy Shift Prioritizes Growth Amid Low Inflation

Context

The Reserve Bank of India’s Monetary Policy Committee (MPC) decisively chose growth over inflation concerns in its latest policy stance. The MPC cut the repo rate by 50 basis points to 5.5%, marking the third rate cut since February 2025. This move follows retail inflation hitting a 69-month low, allowing the RBI to deprioritize price stability in favor of stimulating economic activity.

Change in Policy Stance

• The RBI reverted its stance from accommodative (in April) back to neutral, signaling limited scope for further rate cuts unless growth weakens sharply.
• Neutral stance allows flexibility to hike rates if inflation unexpectedly surges, considering ongoing uncertainties including the monsoon outcome.

Rationale and Timing

• Inflation is currently subdued and unlikely to rise soon if prevailing conditions persist.
• Absence of major elections removes the need for pre-emptive monetary tightening.
• Growth remains moderate, with GDP projected at 6.5% for FY 2025-26, similar to last year’s provisional estimate.

Fiscal-Monetary Coordination

• Government’s fiscal stimulus has reached a plateau with capital expenditure maintained but unlikely to increase significantly due to developmental and defense commitments.
• Monetary policy is expected to take the lead in driving growth momentum, reflecting alignment between RBI and government priorities.

BS

3. RBI Revises Loan-to-Value (LTV) Ratios for Loans Against Gold Collateral

Context

The Reserve Bank is all set to raise the loan-to-value (LTV) ratio for lending against gold to 85% for loans under ₹2.5 lakh from the present 75%, Governor Sanjay Malhotra announced.

Key Changes

• Increased LTV for Small Loans:
  • For loans up to ₹2.5 lakh, the LTV ratio has been raised from 75% to 85%, allowing borrowers to get a higher loan amount against the same gold collateral.
• LTV Ratios for Larger Loans:
  • Loans between ₹2.5 lakh and ₹5 lakh have an LTV ratio fixed at 80%.
  • Loans above ₹5 lakh have an LTV ratio capped at 75%.
• LTV Calculation Method:
  • The LTV ratio on any given day is the ratio of the outstanding loan amount to the market value of the pledged gold on that day.
  • For bullet repayment loans, the entire amount payable at maturity is considered in the LTV calculation.
• Collateral Weight Limits:
  • Maximum weight of gold ornaments pledged should be 1 kilogram or less.
  • Maximum weight of silver pledged is limited to 10 kilograms.

What Is the Loan-to-Value (LTV) Ratio?

• The Loan-to-Value (LTV) Ratio is a key financial metric used by lenders to assess the risk level of a mortgage or loan.
• It compares the loan amount to the appraised value of the property.

LTV Formula:

• Example: If you borrow ₹90,00,000 for a home appraised at ₹1,00,00,000, your LTV is 90%.

Why LTV Matters:

• Lower LTVs (<80%): Preferred by lenders, leads to lower interest rates and no PMI (Private Mortgage Insurance).
• Higher LTVs (>80%): Considered riskier, usually results in higher interest rates and may require PMI.

Where LTV Is Used:

• Home purchases
• Mortgage refinancing
• Home equity loans or lines of credit

Impact on Borrowers:

• A high LTV (e.g., 95%) may still get approved, but:
  • Comes with higher interest rates
  • Requires PMI
• A low LTV (e.g., 75%):
  • Enhances approval chances
  • Reduces borrowing cost

4. RBI Lowers Qualifying Asset Threshold for NBFC-MFIs to 60%

Background

• Previously, NBFC-MFIs were required to maintain qualifying assets at 75% of their total assets (net of intangible assets).
• Qualifying assets are microfinance loans that NBFC-MFIs must hold to be classified under the sector.

Key Change

• RBI has reduced the qualifying asset threshold from 75% to 60%.
• The 60% threshold must be maintained on an ongoing basis.

Compliance Requirement

• NBFC-MFIs failing to meet the 60% qualifying asset requirement for four consecutive quarters must submit a remediation plan to the RBI for review and approval.

Implications for NBFC-MFIs

• Enables NBFC-MFIs to diversify their asset portfolio beyond microfinance loans.
• Improves financial strength and operational flexibility.
• Allows the sector to expand services and serve a broader borrower base.
• Supports the design of loans with more adaptive terms.

5. RBI to Review Bank Licensing Norms, Ownership Structure Amid Economic Expansion

Context

The Reserve Bank of India (RBI) is reassessing its framework for bank licensing and ownership to align with India’s growing economic needs. Governor Sanjay Malhotra stated the need for more banks and trustworthy promoters, owners, and managers in the banking system. Review triggered by increasing demand for financial intermediation and international investor interest in Indian banks.

Ownership and Eligibility Norms Under Review

• Existing caps:
  • Foreign ownership allowed up to 74% (including portfolio investors).
  • 15% cap on strategic foreign investor ownership.
  • 5% or more stake requires prior RBI approval.
  • 26% voting rights cap for large shareholders.
• Malhotra: “We allow 15% for non-residents, but on a case-by-case basis it can go above.”
• Example: Fairfax was permitted to acquire 51% in Catholic Syrian Bank.

Recent Developments in Foreign Bank Investment

• Sumitomo Mitsui Banking Corporation (SMBC) plans to buy 20% in Yes Bank from SBI and seven private banks for ₹13,482 crore.
• Emirates NBD (Dubai-based) received approval to establish a wholly owned subsidiary in India and is exploring a majority stake in IDBI Bank.
• IDBI Bank Disinvestment:
  • Government to sell 30.48% stake.
  • LIC to sell 30.24% stake.
• RBI is evaluating the ‘fit and proper’ criteria of prospective investors.

RBI to Review Type I NBFC Regulatory Framework

• RBI plans to evaluate and potentially revise regulations for Type I NBFCs (non-deposit-taking NBFCs with no public interface).
• Governor: “If a separate framework is necessary based on risk profile, we will introduce one.”

Implications and Sectoral Impact

• Policy Modernisation: Move reflects RBI’s intent to adapt licensing and ownership rules for a more dynamic financial ecosystem.
• Increased Foreign Participation: Case-by-case flexibility may attract long-term foreign capital while preserving regulatory oversight.
• Opportunity for SFBs: Opens the door for larger roles by well-performing small finance banks.
• Customized Oversight: Tailored regulation for low-risk NBFCs expected to reduce compliance burden.

BS

6. RBI Imposes Monetary Penalties on Three Financial Institutions for Regulatory Violations

Context

The Reserve Bank of India (RBI) has levied monetary fines on three financial institutions for breaches of regulatory guidelines related to deposit acceptance, KYC compliance, and supervisory norms.

Details of Penalties

• PayMe India Financial Services Pvt Ltd
  • Fine: ₹2 lakh
  • Violations:
    • Unauthorized acceptance of public deposits, prohibited under its Certificate of Registration (CoR) conditions per Section 45IA(5) of the RBI Act, 1934.
    • Failure to obtain prior RBI approval for a change in shareholding exceeding 26% of its paid-up equity capital.
• Ratanchand Shah Sahakari Bank Ltd, Mangalwedha (Maharashtra)
  • Fine: ₹2 lakh
  • Violations:
    • Lapses in Know Your Customer (KYC) compliance and breach of supervisory norms under the RBI’s Supervisory Action Framework (SAF).
    • Offering interest rates on deposits higher than SAF guidelines permit.
    • Exceeding single borrower exposure limits.
    • Issuing multiple Customer Identification Codes (CICs) instead of the mandated Unique Customer Identification Code (UCIC).
• Poornawadi Nagarik Sahakari Bank Maryadit, Beed (Maharashtra)
  • Fine: ₹1 lakh
  • Violations:
    • Non-compliance with advanced management and KYC norms.
    • Sanctioning gold loans exceeding permissible Loan-to-Value (LTV) ratios.
    • Delayed uploading of KYC records to the Central KYC Registry.

Recent Related Enforcement:

• In May 2025, RBI fined:
  • State Bank of India (SBI): ₹1.72 crore
  • Jana Small Finance Bank: ₹1 crore
    for similar regulatory violations.

7. SEBI Attaches Mehul Choksi’s Bank, Demat, and MF Holdings to Recover ₹2.1 Crore in Insider Trading Case

Context

The Securities and Exchange Board of India (SEBI) has attached the bank accounts, demat holdings, and mutual funds of absconding businessman Mehul Choksi.

• Objective: Recover dues worth ₹2.1 crore linked to insider trading violations in Gitanjali Gems shares.

Background of the Case

• Mehul Choksi, former CMD and promoter of Gitanjali Gems, was fined ₹1.5 crore by SEBI in January 2022.
• Penalty included interest of ₹60 lakh, taking total dues to ₹2.1 crore.
• A demand notice was issued on May 15, 2025, giving Choksi 15 days to pay, failing which SEBI would proceed with asset attachment.

SEBI's Attachment Order (Dated 4 June 2025)

• Directed CDSL, NSDL, mutual fund houses, and all banks to:
  • Block all debit transactions from Choksi’s accounts
  • Attach all accounts and lockers in his name
  • Permit credits but restrict fund movements to protect asset value
• SEBI noted a risk of asset disposal and potential obstruction to recovery if urgent action wasn’t taken.

Facts To Remember

1. PM inaugurates rail projects in J&K, reminds Pakistan of ‘massive defeat’

Describing the Pahalgam terror attack as “an attack on Kashmiriyat and insaniyat (humanity)”, Prime Minister Narendra Modi on Friday said that India’s response, Operation Sindoor, had served a humiliating defeat to Pakistan.

2. PM Modi to Attend G-7 Summit in Canada Amid Signs of Diplomatic Reset

Prime Minister Narendra Modi will represent India at the upcoming G-7 summit in Kananaskis, Alberta, Canada next week. The invitation was extended by newly elected Canadian Prime Minister Mark Carney during a recent phone call, and Modi confirmed his participation on Friday. The visit is expected to signal a potential thaw in strained Indo-Canadian relations.

3. PNB, Indian Bank, BoI, UCO Bank, KVB tweak interest rates

Punjab National Bank (PNB), Indian Bank, UCO Bank, Bank of India (BoI) and Karur Vysya Bank (KVB) announced reduction in certain key rates in the backdrop of RBI slashing the repo rate by 50 basis points (bps).

Daily Current Affairs Quiz
8 & 9 June, 2025

National Affairs

1. Civil Registration System’s (CRS) Vital Statistics 2022 Report

Context

Bihar has recorded the lowest sex ratio at birth for 2022 among all States and Union Territories, reporting just 891 girls born for every 1,000 boys, according to the Civil Registration System’s vital statistics report, released this week by the Office of the Registrar General of India.

Key Finding: Bihar’s Declining Sex Ratio at Birth (SRB)

• Lowest in India: Bihar reported an SRB of 891 girls per 1,000 boys in 2022 — the lowest among all States and Union Territories.
• Three-Year Decline:
  • 2020: 964
  • 2021: 908
  • 2022: 891
• Bihar is the only State with consistent SRB decline since 2020, when sex ratio at birth data became available.

States with Low SRB in 2022

• Maharashtra: 906
• Telangana: 907
• Gujarat: 908

States/UTs with High SRB in 2022

• Nagaland: 1,068 (Highest in India)
• Arunachal Pradesh: 1,036
• Ladakh: 1,027
• Meghalaya: 972
• Kerala: 971
• Assam: 933 (Improved from 863 in 2021)

CRS 2022: National Birth and Death Trends

Registered Births

• Total Registered Births: 254.4 lakh (↑ from 242 lakh in 2021)
• Gender Distribution:
  • Males: 52.4%
  • Females: 47.6%
• Urban-Rural Split:
  • Urban: 56.5%
  • Rural: 43%

State-wise Birth Registration Trends (2013–2022)

• Increasing Birth Registrations:
  • Uttar Pradesh
  • Bihar
  • Madhya Pradesh
  • Telangana
  • Uttarakhand
• Declining or Fluctuating Trends:
  • Tamil Nadu
  • Kerala
  • Himachal Pradesh
  • Punjab
  • Delhi

Stillbirths

• 2022: 1.15 lakh
• 2021: 1.24 lakh (↓ Decline in stillbirths)

Registered Deaths in 2022

• Total: 86.5 lakh (↓ from 102.2 lakh in 2021; back to near pre-pandemic levels)
• COVID-19 Undercount in 2021: CRS 2021 had revealed possible under-reporting of COVID deaths.
• Gender Share:
  • Men: 60.4%
  • Women: 39.6%
• Urban-Rural Split:
  • Rural: 59.5%
  • Urban: 40.5%

Delayed Reporting and Status of Demographic Surveys

• The government released CRS and MCCD reports for 2022, but Sample Registration System (SRS) 2022 is still pending.
• SRS: Provides annual estimates for fertility and mortality rates — crucial for population planning and policy.

TH

2. The World Bank Revised Global Poverty Line

Context

The World Bank revised the global poverty line to $3/day (PPP 2021) from $2.15/day (PPP 2017).

Key Findings:

Sharp Decline in Poverty (2011–2023)

• Extreme Poverty Rate fell from 27.1% in 2011–12 to 5.3% in 2022–23, based on the revised $3/day threshold.
• Earlier estimate (using $2.15/day benchmark) had pegged poverty at 2.3% in 2022–23.
• Lower-Middle Income Poverty Line saw a 33.7 percentage point decline over the same period.

Why This Matters

• The adjustment reflects changes in purchasing power parity (PPP) and global inflation.
• Even after accounting for inflation, $2.15 is a real increase in the poverty threshold.
• More people globally will now be classified as living in extreme poverty, as they fall below this new standard.

Revised Poverty Benchmark

• The World Bank updated its extreme poverty line to $3/day, adjusted for 2021 purchasing power parity (PPP).
• This represents a 15% higher threshold compared to the previous $2.15/day line (2021 PPP).
• The revision accounts for inflation in developing countries, particularly India’s inflation trends between 2017–2021.

India’s Poverty Rate in 2024

• At the $3/day threshold:
  • Poverty Rate: 5.44% of the population
  • Absolute Numbers: 54.7 million people lived on less than $3/day in 2024.

Trend Summary (Poverty Reduction in India)

What is Poverty Line?

The poverty line represents the minimum income level needed to meet basic needs like food, shelter, and clothing. It's a benchmark used to identify individuals and households struggling to afford these necessities and are thus eligible for government assistance.

• Definition:
  • The poverty line is a monetary threshold below which an individual or family is considered to be living in poverty.
• Purpose:
  • It helps governments understand the extent of poverty and identify those who need support.
• Measurement:
  • Different countries and regions may have different methods for calculating the poverty line, often considering factors like the cost of food, housing, and other essential items.

Implications and Insights

• Poverty Alleviation Progress: India has achieved a substantial decline in poverty across all global benchmarks, reflecting improved access to basic services, economic mobility, and rural development.
• Revised Standards: The $3/day benchmark offers a more realistic picture of poverty in the Global South, better aligned with rising living costs.
• Policy Focus Areas:
  • Sustained inflation control,
  • Rural employment,
  • Social safety nets (e.g., PDS, MGNREGA),
  • Access to education and healthcare remain critical to maintaining the pace of poverty reduction.

TH & Mint

3. MGNREGS Job Demand Rises in May–June 2025

Context

Demand for unskilled jobs under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) surged in May and early June 2025, but economists emphasize this is not necessarily a sign of rural distress. Rather, it reflects a seasonal pattern before the monsoon-led sowing begins.

What is MGNREGA ?

• MINISTRY
  • Ministry of Rural Development

About

• MGNREGA was launched in the year 2005 as one of the largest work guaranteed program by the Ministry of Rural Government .
• The basic objective of MGNREGA was providing 100 days guaranteed employment in every financial year to any rural or adult people who are willing to do public work – related which is unskilled manual work.

Legal Right to Work

• Women should be at least one-third of the beneficiaries of this scheme .
• Wages should be paid as prescribed under the Minimum Wages Act,1948 as specified for the agricultural labourers in state.

Demand Driven Scheme

• The most crucial and important part of MGNREGA is that work should be provided to any rural or adult person within 15 days when demanded and if he/she did not get the work on proper time “unemployment allowance” must be paid to them.
• The demand-driven program allows the self-selection of work .

Decentralized Planning

• Through giving significant roles to Panchayati Raj Institutions there is a focus on strengthening the way or process of decentralization .
• Now this act is mandating the Gram Sabha for recommending the works which are to be undertaken and a minimum of 50% work should be performed by them.

4. DRUM App

About the DRUM App:

• Full Form: Dynamic Route Planning for Urban Green Mobility
• Developer: Researchers from IIT-Kharagpur
• Stage: Successfully simulated in Delhi; real-world trials starting soon

Core Objective:

• To minimize commuters’ exposure to air pollution through real-time, environment-sensitive route suggestions.

Key Features of DRUM:

• Route Types Offered:
  • Shortest Route
  • Fastest Route
  • LEAP (Least Exposure to Air Pollution)
  • LECR (Least Energy Consumption Route)
  • Balanced Suggested Route (combines multiple criteria)
• Technology Stack:
  • Based on GraphHopper and Mapbox platforms
  • Integrated with real-time air quality data from CPCB and World AQI
  • Works even in data-sparse urban zones
  • Allows vehicle-specific customization for route selection
• Advanced Functionalities:
  • Uses exposure time as the principal metric
  • Crowdsourced sensor data integration planned for DRUM 2.0
  • Will support AI/ML-powered time-based route suggestions in the next phase

Why DRUM Matters:

• Health Impact: Can reduce exposure to pollution by up to 50%, especially in high-density areas like Central Delhi
• Sustainability: Encourages eco-friendly route choices, energy conservation, and smart traffic management
• Target Users: Cyclists, pedestrians, and public transport commuters—groups most vulnerable to urban pollution
• Policy Implication: Enables data-driven urban planning and enhances decision-making for environmental sustainability

5. India Reaffirms Global Leadership in Climate-Resilient Infrastructure at ICDRI 2025

Event Overview

• Conference: International Conference on Disaster Resilient Infrastructure (ICDRI) 2025
• Location: First time hosted in Europe
• Theme: “Shaping a Resilient Future for Coastal Regions”
• Addressed by: Prime Minister of India

About the Coalition for Disaster Resilient Infrastructure (CDRI)

• Launch: Initiated by India in 2019
• Nature: Global multilateral coalition
• Headquarters: New Delhi, India
• Membership:
  • 46 countries
  • 8 partner organizations (UN agencies, multilateral banks, private sector)
• Primary Goal:
  • Mobilize global efforts to make infrastructure climate- and disaster-resilient by 2050
  • Target 3+ billion people for improved livelihood and environmental resilience

Funding and Support

• Voluntary contributions model
• Major supporters: India (lead contributor), USA, UK, France, Japan, Germany, Australia, Canada, and World Bank

Core Functions of CDRI

• Facilitate global knowledge sharing and research
• Promote capacity building and training
• Support resilient infrastructure financing
• Lead 10 thematic initiatives, including:
  • Urban resilience
  • SIDS (Small Island Developing States)
  • Africa-focused infrastructure
  • Critical infrastructure resilience

India’s 5 Global Priorities at ICDRI 2025

1. Education & Skill Development
   • Embed disaster resilience in higher education to build a future-ready workforce.
2. Global Digital Repository
   • Launch a knowledge-sharing platform for best practices and post-disaster reconstruction models.
3. Innovative Financing for Developing Nations
   • Create accessible funding mechanisms for infrastructure resilience in vulnerable and developing countries.
4. Support for Small Island Developing States (SIDS)
   • Recognize SIDS as Large Ocean Countries
   • Address their unique climate vulnerability with tailored infrastructure strategies.
5. Early Warning & Last-Mile Connectivity
   • Strengthen real-time alert systems and community-level disaster response networks

Banking and Finance

1. RBI’s 2025 Gold and Silver Lending Guidelines

Context

The Reserve Bank of India (RBI) has notified the Lending Against Gold and Silver Collateral Directions, 2025, introducing comprehensive reforms to regulate and standardize gold and silver-backed lending across financial institutions.

Key Features of the Directions

• Maximum LTV Ratio:
  • Up to 85% for loans ≤ ₹2.5 lakh, benefiting small-ticket borrowers.
  • Aims to enhance credit access for individuals and micro-enterprises.
• Scope of Applicability:
  • Applicable to all RBI-regulated entities, including:
    • NBFCs
    • Commercial and Cooperative Banks
    • Urban Cooperative Banks
• Collateral Eligibility:
  • Gold jewellery, ornaments, and coins continue to remain eligible as collateral.
  • Recognizes the role of gold loans in meeting short-term liquidity needs.
• Standardised Assaying & Valuation:
  • Assaying must be done in the borrower’s presence.
  • Use of reference prices from IBJA or SEBI-regulated exchanges to ensure pricing transparency.
• Objective:
  • Promote transparency, ethical lending practices, and prudential discipline.
  • Encourage responsible lending while expanding formal credit to underserved segments.

Implications for India’s Lending Ecosystem

• Improved Consumer Protection through transparent valuation practices.
• Level playing field for NBFCs, banks, and cooperative lenders.
• Greater financial inclusion by easing access to credit secured by household assets like gold and silver.
• Reduced regulatory ambiguity by consolidating multiple earlier circulars.

BS

2. RBI Frontloads Monetary Support Amid Uncertainty – Is This the Terminal Rate?

Context

In an effort to anchor economic confidence amid global uncertainties, the Reserve Bank of India (RBI), through its Monetary Policy Committee (MPC), delivered a bigger-than-expected policy stimulus in June 2025.

Key Policy Announcements (June 2025)

• Repo Rate Cut: 50 basis points (bps) cut to 5.5% (market expected 25 bps)
• Total rate cuts in FY26: 100 bps (25 bps in February & April, 50 bps in June)
• Cash Reserve Ratio (CRR): Reduced by 100 bps to 3%, in four tranches
  • Adds ₹2.5 trillion in durable liquidity
• Policy Stance Changed: From accommodative to neutral

RBI’s Recent Liquidity Measures

• ₹9.5 trillion liquidity infused since the start of 2025
• Weighted Average Call Rate (WACR): Hovering near the lower end of the LAF corridor, reflecting ample liquidity
• Monetary transmission to lending rates is expected to improve further

Has the RBI Reached the Terminal Rate?

Key Arguments

• The frontloaded rate cut and CRR reduction suggest RBI has done most of the heavy lifting.
• The shift to a neutral stance signals limited room for future rate cuts.
• Inflation Projections:
  • April 2025 CPI inflation eased to 3.2%
  • FY26 revised inflation forecast: 3.7% (from 4%)
  • H2FY26 inflation expected to average slightly above 4%
• RBI’s estimated neutral real rate: 1.4%–1.9%
  • With projected inflation at 3.7%, current policy rate aligns with neutral zone

Growth Outlook:

• FY26 GDP growth estimate: Retained at 6.5%
• FY25 GDP growth was also 6.5%, indicating monetary policy alone may not lift potential growth.
• Medium-term challenge: Boost potential GDP beyond 7%, which will require non-monetary interventions (e.g., structural reforms, capex boost)

3. Banks’ Proposal for Tax Relief on NPA Interest Under Review

Context

The Indian government is reviewing a proposal from banks to amend the Income Tax Act and align the definition and treatment of Non-Performing Assets (NPAs) with the Reserve Bank of India’s (RBI) regulatory norms. This move aims to provide relief from taxation on unrealised interest income.

Key Regulatory Divergence

• RBI Definition of NPA:
  • Loan becomes NPA if interest or principal is overdue for more than 90 days.
• Income Tax Act Definition:
  • Loan is considered NPA only if overdue for more than 6 months.

Proposed Changes Under Consideration

1. Exemption of Interest on NPAs:
   • Amendment of Section 43D to prevent taxation of notional interest on NPAs unless realised or credited.
   • Would align tax treatment with RBI’s prudential norms.
2. Enhanced Provisioning Deduction:
   • Lenders have proposed raising tax-deductible provisioning for NPAs from 8.5% to 15% of gross income.
   • Relevant under Section 36(1)(viia) of the Income Tax Act.
   • Applicable to banks, NBFCs, and housing finance companies.

Government Review Process:

• Inter-ministerial Consultations:
  • Suggestions submitted to the Department of Financial Services (DFS) in May 2025.
  • DFS has flagged the issue to the Department of Revenue, Ministry of Finance.
• Stakeholder Committee:
  • Includes tax officials, industry representatives, and the Institute of Chartered Accountants of India (ICAI).
  • Reviewing changes to the draft Income Tax law, including NPA taxation norms.

Current Status of NPAs:

• Gross NPAs (GNPAs) of Scheduled Commercial Banks (SCBs) stood at ₹4.16 lakh crore as of Q4 FY25.

Implications if Accepted:

• Boost to Bank Profits:
  • Prevents tax outgo on unrealised income.
  • Encourages more realistic income reporting aligned with prudential norms.
• Reduced Litigation:
  • May lower tax-related disputes in courts over NPA-related interest income.

BS

4. RBI Launches Scheme to Promote Original Hindi Books on Economics, Banking, and Finance

Context

To encourage original Hindi-language writing and research in the fields of economics, banking, and finance by Indian academicians.

Key Features of the Scheme

• Launched by: Reserve Bank of India (RBI)
• Target Group: Working or retired professors (including Assistant and Associate Professors) from UGC-recognized Indian universities
• Prize Amount: ₹1,25,000 each for three best entries
• Eligible Publications:
  • Books must be originally written in Hindi
  • Subject: Economics, Banking, or Finance
  • Minimum 200 pages
  • Publication window: April 1, 2024 to March 31, 2025
• Submission Deadline: June 30, 2025
• Cooling Period: Awardees for two consecutive years must observe a one-year gap before reapplying

Evaluation Process

• Assessment Criteria:
  • 60% weightage for content quality
  • 40% for language and style
• Evaluation Committee Composition:
  • 2 Professors in Economics/Banking/Finance
  • 1 Professor in Hindi Literature or Linguistics
  • RBI officials

Significance

• Promotes financial literacy and academic contributions in Hindi
• Encourages regional language inclusion in high-level economic discourse
• Aligns with RBI's vision to increase vernacular scholarship in finance and economics

Related Development:

• In June 2025, RBI also launched the 2024–25 round of its annual survey on Foreign Liabilities and Assets (FLA) of Mutual Funds and Asset Management Companies (AMCs).

This scheme not only supports language diversity in financial education but also fosters an environment for academic innovation in Hindi.

Economy

1. India’s Apparel Export Growth Challenge

Current Status and Challenges

• Stagnant Global Share: India’s apparel export share remains at 3%, despite being the second-largest employment sector after agriculture.
• Export Volume: Apparel exports are at $37.8 billion, while the global textile and apparel (T&A) market is worth $897.8 billion.
• MSME Dominance: Over 80% of apparel units are small-scale, leading to fragmentation, low scalability, and poor global integration.

Significance of the Textile and Apparel Sector

• Mass Employment Driver: Employs 45+ million people, especially in Tamil Nadu, Gujarat, and West Bengal.
• High Value Addition: Generates higher returns via full supply chain integration—from raw cotton to finished apparel.
• Export Potential: Key to India’s ambition to reach $40 billion in apparel exports by 2030.
• Boosts Ancillary Industries: Supports growth in dyes, logistics, chemicals, machinery, and retail.
• Women-Led Workforce: Nearly 70% of apparel workers are women, promoting gender-inclusive growth (e.g. Shahi Exports employs 70,000+ women).

Key Government Initiatives

• Textile-Focused:
  • PM MITRA Parks: 7 mega integrated textile parks to lower logistics costs and enhance scale.
  • Amended TUFS: Financial aid for technology upgradation in textile units.
• Apparel-Focused:
  • RoSCTL: Refund of embedded taxes on exports.
  • SAMARTH Scheme: Skill development for workers in the apparel value chain.
  • PLI Scheme (Textiles): Incentivizes investment in MMF and technical textiles; PLI 2.0 aims to include large garment units.

Structural Bottlenecks

• Fragmented Ecosystem: MSMEs lack scale, affecting productivity and global competitiveness.
• Costly Capital: India’s high 9% interest rate limits expansion (vs. 3–4.5% in China/Vietnam).
• Labour Rigidity: Double overtime pay and complex regulations deter formal hiring and scalability.
• Inefficient Supply Chain: Dispersed production increases turnaround times and costs.
• Underutilized Female Labour: Despite high demand, female labour force participation (FLFP) remains low.

Policy Recommendations – The Way Forward:

• Subsidized Capital Expansion:
  • Provide 25–30% capex subsidy and 5–7 years tax holiday for large units with 1,000+ machines.
• Flexible Labour Reforms:
  • Align overtime payments to ILO standard (1.25x) and simplify compliance norms for apparel factories.
• MGNREGA-Wage Linkage:
  • Use 25–30% of MGNREGA funds to subsidize wages in garment units to boost formal employment and cost competitiveness.
• Strategic MITRA Garment Hubs:
  • Develop 2 integrated apparel-focused parks in Uttar Pradesh and Madhya Pradesh to reduce migration, enable clustering, and attract investment.
• Export-Linked Incentives (ELI):
  • Transition from production-linked to export-linked incentives, rewarding global competitiveness and sustained market expansion.

Agriculture

1. Community-Led Seed Ball Plantation for Forest Regeneration in India

Context

India’s forests, long considered the lungs of the nation, are under increasing pressure. Between 2001 and 2023, the country lost a staggering 2.33 million hectares of forest cover due to deforestation. Mineral-rich states like Jharkhand, Chhattisgarh, and Odisha are most affected due to mining-driven deforestation.

Key Initiative: Seed Ball Plantation

• What It Is: Encasing native seeds in a mix of soil and natural compost to protect and aid germination.
• How It Works: Balls are scattered in degraded forests; with rain, the seed germinates as the coating dissolves.
• Advantages:
  • Low-cost, scalable, and eco-friendly
  • Effective in remote and inaccessible forest areas
  • Promotes natural reforestation with minimal human intervention

Role of PRADAN

• A 43-year-old grassroots organization, PRADAN is the Centre of Excellence – Forest.
• Mobilized women, youth, and village communities for forest regeneration.
• Delivered hands-on training for seed ball preparation and dissemination.
• Employed IEC (Information, Education, Communication) tools such as posters, videos, and forest dialogues to build public awareness.

Impact & Progress

• Seed Balls Sown:
  • 2023: 1.3 million
  • 2024: 1.6 million (23% YoY increase)
• Benefits:
  • Enhanced soil health and biodiversity
  • Boosted agricultural resilience
  • Strengthened climate adaptation capacity

Collaborative Model

• Implemented through partnerships among:
  • Local communities
  • Panchayati Raj Institutions (PRIs)
  • State Forest Departments
  • Civil Society Organizations (CSOs)

Significance

• Encourages eco-citizenship and community stewardship
• Integrates traditional knowledge with sustainable development
• Supports India’s commitment to forest restoration, climate resilience, and rural empowerment

BL

2. Bayer Launches BICOTA to Protect Rice Crops from Stem Borer Pests

Context

Bayer has announced the launch of BICOTA, a new product designed to help rice farmers manage stem borer pests effectively. BICOTA, which combines Bayer’s exclusive innovation to provide strong protection against these damaging pests, will be available across key rice-growing states, including Punjab, Haryana, Uttarakhand, Western UP, West Bengal, Chhattisgarh, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, and Telangana, starting in June 2025.

Key Features of BICOTA

• Fast-acting: Quickly halts pest feeding behavior.
• Extended Protection: Single application offers longer-lasting control than conventional options.
• Enhanced Crop Health:
  • Promotes stronger root and tiller development
  • Ensures higher yields even under unpredictable weather conditions
• Granular Formulation: Easy to apply, reduces time and labor costs.
• Eco-Friendly:
  • Safe for beneficial insects
  • Compatible with Integrated Pest Management (IPM) systems

Significance

• Targets one of the most damaging rice pests—stem borers
• Enhances climate-resilient agriculture by adapting to pest resurgence under changing weather
• Supports sustainable agriculture through safer, farmer-friendly crop protection technologies

3. India’s Ethanol Blending Policy Faces Delays

Context

India’s plan to expand ethanol blending in petrol beyond the current 19% (E19) to 27–100% is facing significant supply-side, demand-side, and geopolitical headwinds, slowing the rollout of the new ethanol policy.

What is Ethanol?

It is obtained by feeding various raw materials or agricultural products through fermentation, and ethanol is used as a fuel. Ethanol is renewable fuel as it can be used in the pepping of gasoline, or it can work as an octane enhancer. This is also called grain alcohol, ethyl alcohol, or simply EtOH.

These are some applications of ethanol in agriculture:

• Fuel-Ethanol
  • This is a high-octane fuel, which could be used for automobiles. Having lower evaporative emissions, it is less flammable compared with gasoline.
• Economic development
  • Ethanol production is turning into an economic engine in India creating value from such agricultural commodities as corn and sugar beets.
• Feedstock
  • Under various feedstocks such as corn, sorghum, barley, sugar cane, sugar beets, crop residues, wood, and grasses, various feedstocks produce ethanol.
• Byproducts
  • Some byproducts include corn oil, protein feeds, and distillers dried grains (DDG). These are produced from processes of ethanol production. The last one is treated as part of animal feed.

Role of Ethanol in India

• Powers vehicles, aids the spirits industry, and cuts India’s imports of crude oil.
• Harmful emissions are reduced, air quality is improved, and ₹1.1 trillion has been saved in foreign exchange because of ethanol blending.
• In the last decade, from savings of 50 million carbon dioxide equivalent in a year, the increase in ethanol use has consistently been ahead of this target.
• New trade avenues to farmers would create a more even marketplace for their crops such as sugarcane.

The Ethanol Blended Petrol (EBP) Programme

The Ethanol Blended Petrol (EBP) Programme is a government initiative to increase the amount of ethanol blended with petrol in India:

• Goals:
  • Blending 10% ethanol with petrol by 2021-22
  • Blending 20% ethanol with petrol by 2025

What is Ethanol blending?

• It is the process of mixing ethanol with gasoline to reduce the use of fossil fuels.

Facts To Remember

1. Mcdonald and Tagger win French Open junior titles

Germany’s Niels Mcdonald and Austrian Lilli Tagger won the boys and girls titles respectively at the French Open.

2. Six-star show by India in Taiwan Open athletics

Asian champion Jyothi Yarraji won the women’s 100m hurdles race with yet another impressive time as India won six gold medals in the Taiwan Athletics Open here.

3. Carlsen clinches record-extending seventh title after draw with Arjun

World champion D. Gukesh committed a costly blunder against American Grandmaster Fabiano Caruana in the final round to finish third as five-time World champion Magnus Carlsen clinched a record-extending seventh Norway Chess title.

4. India, Mongolia hold joint military exercise 'Nomadic Elephant' in in Ulaanbaatar

Under institutionalized military collaboration to strengthen India–Mongolia relations, the 17th edition of the joint exercise “Nomadic Elephant 2025” is underway at the Special Forces Training Centre in Ulaanbaatar.

5. Delhi CM Rekha Gupta launches ‘Ek Ped Maa Ke Naam 2.0’

Delhi Chief Minister Rekha Gupta said that Delhi government has set a target of planting 70 lakh trees this season to improve the city’s environment.

6. From Isolation to innovation – A decade of transformation under Seva, Sushasan, Garib Kalyan

India has undergone a decade of remarkable transformation, driven by the principles of Seva, Sushasan, and Garib Kalyan.

7. Historic Axiom-4 mission to launch with Subhanshu Shukla among 4 astronauts headed to ISS

Indian astronaut and group captain of the Indian Air Force, Shubhanshu Shukla, is all set for his first journey to space aboard SpaceX’s Axiom-4 mission tomorrow evening for a two-week stay on the International Space Station.

8. Voice across India: Indian State Broadcasting Service becomes AIR on 8th June 1936

89 years ago, the Indian State Broadcasting Service was renamed All India Radio (AIR) on 8th June 1936. This red-letter day marks a special moment in the cultural, information and broadcasting history of the country, where a voice was born that would echo through generations.

Daily Current Affairs Quiz
10 June, 2025

National Affairs

1. India’s First E-Waste Eco Park to be Set Up in Delhi

Context

The Delhi Government has announced the development of India’s first electronic waste (e-waste) eco park in Holambi Kalan, North Delhi. This initiative aims to position Delhi as a pioneer in sustainable e-waste management and the circular economy.

• Objective: To establish a world-class e-waste processing ecosystem and promote green technology adoption

Processing Capacity & Scope:

• Annual E-Waste Capacity: 51,000 tonnes
• Regulatory Compliance: Will handle all 106 waste categories as per E-Waste Management Rules, 2022

Key Components of the Eco Park:

• Dedicated Zones For:
  • Dismantling units
  • Refurbishing facilities
  • Plastic recovery plants
  • Second-hand electronics market
• Training & Inclusion:
  • Skilling centres for informal sector workers
  • Formalization of unregulated e-waste handlers
  • Focus on health, safety, and improved livelihoods

Significance

• Environmental Benefit: Cleaner, safer e-waste handling
• Social Impact: Inclusion of informal recyclers into the formal economy
• Minister’s Quote: “The eco park will not just manage waste. It will be the symbol of Delhi’s transition into a circular economy, where no resource is wasted and no worker left behind.”

TH

2. PM Modi’s Visits to Cyprus and Croatia

Context

Prime Minister Narendra Modi is scheduled to visit Cyprus and Croatia en route to and from the G-7 Summit in Canada (June 15–17, 2025). These visits are being seen as an assertion of India’s traditional foreign policy principles with renewed engagement in Europe.

Visit to Cyprus: Political and Strategic Significance

• Message to Turkiye:
  • Cyprus visit signals displeasure towards Turkiye's support to Pakistan during Operation Sindoor (May 2025).
  • Reinforces India’s solidarity with Cyprus amid its territorial dispute with Turkiye over Northern Cyprus.
• Diplomatic Alignment:
  • Cyprus to hold the EU Council Presidency in H1 2026.
  • Cyprus has supported India on:
    • Kashmir issue
    • Cross-border terrorism concerns
    • UN Security Council reform
    • Nuclear Suppliers Group (NSG) membership
    • International Atomic Energy Agency (IAEA) roles
• Indian Reciprocity:
  • India supports Cyprus’ reunification based on UNSC resolutions, international law, and EU regulations.
• Key Meeting:
  • PM Modi is expected to meet President Nikos Christodoulides.

Visit to Croatia: Cultural and Economic Linkages

1. Cultural Diplomacy:
   • Croatia has a strong Indology tradition, especially at the University of Zagreb.
   • Presence of ISKCON and widespread cultural interest in Indian philosophy and Sanskrit.
2. Defence and Tech Cooperation:
   • MoU on defence cooperation signed during Raisina Dialogue 2023.
   • Visit strengthens India’s ties with smaller yet strategic European partners.
3. Non-Alignment Legacy:
   • Tribute to Josip Broz Tito, Croatian founder of Non-Aligned Movement (NAM).
   • Reflects India’s continued engagement with NAM-origin countries in evolving multipolar world.

Geo-Economic Context: Role in IMEC

1. India-Middle East-Europe Economic Corridor (IMEC):
   • Announced at G20 Summit, New Delhi (2023).
   • Cyprus and Croatia seen as potential investors and participants in corridor projects.
2. Strategic Geography:
   • Cyprus: Gateway to the Eastern Mediterranean and EU platforms.
   • Croatia: Maritime infrastructure on the Adriatic Sea, key for logistics and trade under IMEC.

3. SEZ Rule Amendments to Boost Semiconductor & Electronics Manufacturing (June 2025)

Context

The Union government has notified several changes to the regulations for the setting up of special economic zones (SEZs) for the manufacturing of semiconductors or electronic parts. Revisions include reducing minimum plot size for the units and allowing such semiconductor units to also supply to the rest of India, apart from exporting.

Key Amendments to SEZ Rules, 2006

• Rule 5 (Minimum Land Area Requirement)
  • Previous requirement: 50 hectares
  • Revised requirement: 10 hectares (for SEZs in semiconductors and electronic component manufacturing)
• Rule 18 (Domestic Supply Allowed)
  • Change: SEZ units in semiconductors and electronics can now supply products within India (i.e., Domestic Tariff Area) after paying applicable duties
  • Earlier: Only export-oriented operations were permitted
• Rule 7 (Encumbrance Relaxation)
  • Change: The Board of Approval may now relax the "encumbrance-free land" requirement
  • Applies where land is mortgaged or leased to government or authorized agencies

Objective of the Amendments

• Promote pioneering, high-tech investments
• Address capital intensity and long gestation challenges in semiconductor manufacturing
• Build India’s semiconductor ecosystem and reduce import dependency

New SEZ Approvals:

1. Micron Semiconductor Technology India
   • Location: Sanand, Gujarat
   • Purpose: Semiconductor manufacturing SEZ
2. Hubballi Durable Goods Cluster Pvt Ltd (Aequs Group)
   • Location: Dharwad, Karnataka
   • Purpose: Electronic components SEZ

TH

4. India’s Poverty Levels See Sharp Decline

Context

India has made significant progress in reducing absolute poverty over the last two decades. However, the absence of updated official poverty estimates continues to hinder accurate measurement and policy targeting.

Key Points

• Decline in Extreme Poverty (Based on World Bank Thresholds):
  • Under $3/day (new low-income line):
    • Down from 27.1% in 2011–12 to 5.3% in 2023–24
  • Under $4.20/day (for lower middle-income countries):
    • Down from 57.7% to 23.9% over the same period
• World Bank Poverty Line Revisions:
  • The World Bank has updated its thresholds in 2022:
    • From $2.15 to $3.00 for low-income nations
    • From $3.65 to $4.20 for lower middle-income countries like India
  • This offers a new basis to evaluate India’s poverty trajectory

Contributing Factors to Poverty Reduction:

• Sustained economic growth
• Targeted welfare and poverty alleviation programs
• A reformist consensus on inclusive development strategies

Challenges and Gaps:

• Urban-Rural Disparities:
  • Poverty remains significantly higher in rural areas
  • Differences may be overstated due to price-level variations, needing clarification via consumer surveys
• Data Limitations and Policy Needs:
  • India’s last official poverty estimate was nearly a decade ago
  • Despite two recent household consumption surveys, the government has not produced updated poverty statistics
  • There's an urgent need for a revised poverty line tailored to India’s current socioeconomic reality
• Fragility of Poverty Gains:
  • Lessons from the pandemic underscore that many who escaped poverty remain vulnerable to economic shocks
  • The “last mile” in poverty elimination is the hardest, requiring precise targeting

Policy Considerations:

• Avoid overstating success (triumphalism); instead, build on gains with accurate data
• Evaluate how schemes like free food provision align with actual poverty numbers
• Rely on domestic, evidence-based poverty estimates rather than international proxies

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5. Bhashini & Indian Railways to Revolutionize Multilingual Passenger Services

In a major push for linguistic inclusion and AI-driven digital transformation, Digital India Bhashini Division (DIBD) and the Centre for Railway Information Systems (CRIS) signed an MoU to integrate multilingual AI solutions across Indian Railways’ public platforms.