Current Affairs August 2025

Daily Current Affairs Quiz
1 August, 2025

National Affairs

1. India Justice Report 2025

Context:

The India Justice Report 2025 has flagged persistent gaps in India’s legal aid system. Despite over 80% of the population being eligible, only 15.5 lakh individuals accessed free legal aid in FY 2023–24, highlighting deficiencies in reach, quality, and resource utilisation under NALSA.

About Legal Aid and NALSA

• Full Form: National Legal Services Authority
• Established: Statutory body under the Legal Services Authorities Act, 1987
• Operational Since: 1995
• Patron-in-Chief: Chief Justice of India
• Mandate: To provide free and competent legal services to eligible persons, especially marginalised communities.

Key Responsibilities

• Lays down policies and supervises State (SLSAs) and District Legal Services Authorities (DLSAs).
• Organises Lok Adalats, awareness drives, and promotes Alternative Dispute Resolution (ADR).
• Offers legal aid to SCs, STs, women, children, disabled persons, poor individuals, and prisoners under Section 12.

Major Initiatives by NALSA

1. Legal Aid Defence Counsel (LADC) Scheme (2022):
   • Institutional legal defence for accused persons in 610 districts.
2. Para-Legal Volunteers (PLVs):
   • Grassroots legal workers trained for community outreach, awareness, and mediation.
3. Permanent Lok Adalats:
   • Conciliation-based resolution for pre-litigative and pending disputes.
4. Legal Literacy Clubs:
   • Created in schools and colleges to improve early legal awareness.
5. Jail Legal Aid Clinics:
   • Dedicated legal services for undertrial and convicted prisoners.
6. Special Schemes:
   • Tailored legal aid for transgender persons, disaster victims, industrial workers, and custodial populations.

Key Challenges Identified

Issue	Details
Budget Constraints	Legal aid accounts for <1% of the justice budget; funds fell to ₹169 crore (2022–23) from ₹207 crore (2017–18).
Fund Underutilisation	Utilisation rate dropped from 75% to 59%, hampering service delivery.
Decline in PLV Workforce	38% drop in Para-Legal Volunteers between 2019–24; poor honorarium payments in many States.
Rural Inaccessibility	Just 1 legal aid clinic per 163 villages; per capita legal aid spending as low as ₹2.
Service Quality Gap	Widespread perception that legal aid quality is inferior to private counsel.
Centralised Fund Control	State Legal Services Authorities need central clearance for hiring and logistics, delaying implementation.

Significance

• The report underscores the urgent need for decentralisation, better budgeting, and frontline legal workforce strengthening.
• Legal aid is vital for ensuring access to justice, a constitutional right under Article 39A.
• NALSA’s role is pivotal in achieving inclusive justice, especially for India’s vulnerable populations.

TH

2. Indian Navy Inducts Indigenous Stealth Frigate Himgiri under Project-17A

Context:

India’s naval defence capabilities received a boost with the delivery of Himgiri, a second indigenous stealth frigate in July 2025, built under Project-17A. The move aligns with India’s long-term strategy of aatmanirbharta (self-reliance) in warship manufacturing.

About Himgiri

• Builder: Garden Reach Shipbuilders & Engineers (GRSE), Kolkata.
• Type: Multi-role stealth frigate.
• Commissioning: Slated for end-August 2025, along with sister ship Udaygiri (delivered July 1 by Mazagon Dock Ltd).

Part of Project-17A

• Project Objective: Construction of 7 advanced stealth frigates for the Indian Navy.
• Distribution:
  • 4 frigates by MDL, Mumbai.
  • 3 frigates by GRSE, Kolkata.
• Total Project Cost: ₹45,000 crore.
• First Commissioned Ship: INS Nilgiri (January 2024).
• Remaining frigates expected to be delivered by end-2026.

Advanced Capabilities

• Weaponry:
  • Equipped with BrahMos supersonic cruise missiles (now extended to 450 km).
  • Barak-8 surface-to-air missiles (range: 70 km) for air defence.
• Technology Highlights:
  • High-end automation, sensor integration, and stealth features.
  • Designed to tackle multi-dimensional maritime threats.

TET

3. Mangrove Restoration Initiatives Across States

Context:

India has launched large-scale mangrove restoration drives across Tamil Nadu, Gujarat, and Mumbai to enhance coastal security, biodiversity, and climate resilience in the face of escalating ecological threats.

What Are Mangroves?

• Mangroves are salt-tolerant coastal forests thriving in tropical and subtropical tidal zones.
• India’s Mangrove Coverage: ~4,900 sq. km.
• Major Regions: Sundarbans (West Bengal), Pichavaram (Tamil Nadu), Mahanadi & Godavari deltas (Odisha & Andhra), Gulf of Kutch (Gujarat).

Ecological and Climate Importance

• Disaster Mitigation: Natural barriers against cyclones, floods, and tidal surges.
• Blue Carbon Sink: High carbon storage in roots and sediments.
• Biodiversity Hotspot: Habitat for flamingos, herons, mudskippers, and crustaceans.

Major Threats to Mangroves

• Urbanisation: Encroachment for roads, ports, and housing.
• Pollution: Waste and plastics reduce regeneration capacity.
• Aquaculture: Shrimp farms replacing native mangrove belts.
• Climate Change: Salinity shifts, sea-level rise, and erratic rainfall patterns.
• Invasive Species: Prosopis juliflora displacing native vegetation.

State-Led Restoration Efforts

• Tamil Nadu – Green Tamil Nadu Mission:
  • Mangrove cover doubled from 4,500 ha to 9,000 ha (2021–24).
  • Canal desiltation and Avicennia seed planting in Muthupettai Estuary (115 ha).
• Maharashtra – Thane Creek Project:
  • ₹10.3 crore budget to plant 3.75 lakh saplings and remove 150 tonnes of plastic in 3 years.
  • Women-led workforce ensures sustainability and employment.
• Gujarat – MISHTI Scheme Front-runner:
  • Over 19,000 ha restored in two years, surpassing national targets.

Strategic and Socioeconomic Benefits

• Disaster Resilience: Mitigated tsunami impact (2004) and recent cyclone damages.
• Livelihood Source: Supports fishing, honey gathering, crab farming.
• Carbon Efficiency: Absorbs CO₂ at higher rates than terrestrial forests.
• Eco-Tourism Potential: Sites in Sundarbans and Gujarat attract tourists and promote conservation awareness.

TH

4. Kavach 4.0

Context:

Indian Railways has successfully commissioned the indigenous train protection system, Kavach 4.0, on the Mathura-Kota section of the high-density Delhi–Mumbai route. This marks a significant leap in modernizing railway safety systems in India.

Key Highlights:

• What is Kavach 4.0?
  • Kavach 4.0 is an Automatic Train Protection (ATP) system developed indigenously by Indian Railways. It ensures safe train operations by automatically controlling speed and applying brakes in emergency situations.
• Development and Approval
  • Developed under Atmanirbhar Bharat vision.
  • Approved by RDSO in July 2024.
  • First operationalized in South Central Railway (2018).
  • Kavach 4.0 approved in May 2025 for trains up to 160 km/h.
• Features
  • Designed with Safety Integrity Level 4 (SIL 4) – the highest global safety rating.
  • Works in fog and low visibility conditions—information visible on loco dashboard.
  • Integrated with train braking systems.
  • Uses RFID tags, telecom towers, optical fibre network, and station-based controls.
• Scale and Complexity
  • Described as equivalent to setting up a telecom company.
  • Requires high-end hardware like RFID tags (every 1 km), telecom towers, and OFC connectivity.
  • Real-time communication between Loco Kavach and Station Kavach ensures safety and speed regulation.

Significance

• First such indigenous train safety initiative post-Independence.
• Enhances passenger safety across high-traffic corridors.
• Supports Make in India and Digital India missions.
• Aims to commission Kavach 4.0 on major national routes within 6 years.

PIB

Banking/Finance

1. ICICI Bank to Begin Charging Payment Aggregators for UPI Transactions

Context:

From August 1, 2025, ICICI Bank will start levying charges on payment aggregators (PAs) for processing Unified Payments Interface (UPI) transactions, becoming the latest major private bank to tap into this cost recovery mechanism.

Key Highlights:

Reason Behind the Move

• ICICI joins Yes Bank and Axis Bank, which already levy similar charges on PAs.
• Banks invest heavily in UPI infrastructure (switches, APIs, fraud monitoring, etc.).
• With no Merchant Discount Rate (MDR) applicable on UPI, banks currently earn minimal or no revenue per transaction.
• Banks also pay NPCI for access to the UPI switch.

Impact on PAs and Merchants

• PAs often charge merchants platform fees, convenience charges, or integration costs.
• With this move, PAs may:
• Pass on the charges to merchants to maintain margins.
• Absorb the cost depending on contractual terms with merchants.

Growing UPI Volumes and Monetisation Pressure

• Peer-to-merchant (P2M) UPI volumes are rising sharply.
• Credit card–linked UPI transactions are also growing, creating new opportunities for monetisation.

Operational Structure of PAs

• PAs act as intermediaries between the customer’s bank (debit side) and merchant’s bank (credit side).
• Typically maintain escrow accounts with their banking partner.
• Once funds are received, they are transferred to the merchant’s account.

BS

2. Bank Credit Growth Slows Sharply in June 2025 – RBI Data

Context:

According to the Reserve Bank of India (RBI), non-food bank credit growth slowed to 10.2% year-on-year (Y-o-Y) as of the fortnight ended June 27, 2025, down from 13.8% during the same period in 2024. The slowdown was driven by weaker demand across agriculture, services, retail, NBFCs, and industrial sectors.

Key Highlights:

1. Agriculture and Allied Activities

• Credit flow to the agriculture sector has witnessed a marked decline.
• After a strong performance last year, banks are reporting a reduced pace of disbursement—likely due to high base effects and tightening liquidity in rural areas.

2. Services Sector

• One of the strongest performers in recent years, the services sector has also experienced a notable dip in credit offtake.
• Key sub-segments like trade and NBFCs have seen especially muted growth, indicating restrained working capital demand and cautious lending by banks.

3. NBFCs and Trade

• Non-Banking Financial Companies are facing limited credit flow from the banking system, partly due to regulatory tightening and increased scrutiny.
• The trade sector too has cooled off, with wholesalers and retailers showing lesser appetite for fresh credit amid subdued consumer demand.

4. Retail Lending Trends

Personal loans, housing finance, and vehicle loans—once pillars of credit growth—have all recorded slower expansion. This signals a shift in household borrowing behaviour, possibly due to higher interest rates, inflationary pressures, and reduced discretionary spending.

• Personal loans: Witnessed sluggish growth, especially in the unsecured segment.
• Housing loans: Demand continues but at a softer pace, possibly due to high property prices and cautious consumer sentiment.
• Vehicle and credit card loans: Reflect weakened urban consumption.

5. Industrial Credit

• Credit flow to industries, including infrastructure and manufacturing, has slowed.
• Despite strong government capex, private investment remains tentative, reflecting continued uncertainty and cautious business sentiment.

Reasons Behind the Slowdown

• Seasonal Factors: The April–June quarter typically sees lower demand, especially post financial year-end reconciliations.
• Compliance Overhang: Banks have been focused on audits, provisioning, and regulatory compliance during the start of the new fiscal.
• Borrower Caution: With macroeconomic volatility, both corporates and individuals are adopting a wait-and-watch approach to fresh borrowing.

BS

3. Standing Committee on Finance Flags Gaps in PMIS and IBC

Context:

On July 31, 2025, the Standing Committee on Finance, chaired by MP Bhartruhari Mahtab, submitted a report in Parliament highlighting key issues and recommendations related to the Prime Minister’s Internship Scheme (PMIS), Insolvency and Bankruptcy Code (IBC), and rising direct and indirect tax disputes.

Key Highlights:

Prime Minister’s Internship Scheme (PMIS)

• Budget Allocation:
  • ₹2,000 crore allocated in BE FY25; revised to ₹380 crore in RE FY25.
  • Current funds sufficient for the pilot phase, but require dynamic reassessment for scaling.
• Issues Identified:
  • Exclusion of families of govt. employees deemed excessive.
  • No support for living expenses hinders participation by candidates from remote or economically weak backgrounds.
  • Poor monitoring of internship-to-employment conversion rates.
  • Limited engagement with SMEs, startups, and regional organisations.
• Recommendations:
  • Periodic and independent evaluation for transparency.
  • Relax eligibility norms for marginalised and poor candidates.
  • Establish a robust monitoring framework to track internship outcomes.
  • Expand participation to diverse sectors and regions.

Insolvency and Bankruptcy Code (IBC)

• Issues:
  • Delays in resolution and growing case backlog at NCLTs.
• Recommendations:
  • Set up fast-track tribunals with strict timelines for high-priority IBC cases.
  • Strengthen NCLT infrastructure and explore public-private partnership models, inspired by the success of Seva Kendras.
  • Ministry of Corporate Affairs agreed to initiate reforms and expand tribunals to improve case disposal speed.

4. Insurance Brokers Association of India (IBAI) Report on Insurance in India

Context:

The Insurance Brokers Association of India (IBAI) released a comprehensive report titled “Leading the Path to Insurance for All: Broker of the Future”, in collaboration with McKinsey & Company, to mark its 24th Foundation Day in Mumbai (August 2025).

Key Highlights:

• Low Insurance Penetration in India:
  • Health insurance: Only 2 in 5 Indians are covered.
  • If government schemes are excluded, this falls to just 1 in 4.
  • Life insurance: Only 1 in 2 adults has any life insurance.
• Rural Access Gap:
  • 65% of India’s population resides in rural areas.
  • Yet, only 2% of life insurance branches are located in rural India.
  • Rural India contributes 45% of GDP but remains underserved.
• Projected Market Growth:
  • Insurance market to grow from ₹11 lakh crore (2024) to ₹25 lakh crore (2030).
  • Insurance penetration to rise from 3.7% to 5%, closing the gap with the global average of 6.8%.
  • Retail Gross Written Premiums (GWP) expected to double to ₹21 lakh crore by 2030.
• Life Insurance Challenges:
  • Penetration rate: 2.8%.
  • Large protection gap due to limited adoption of pure term insurance products.
• Broker Ecosystem:
  • Only 735 licensed insurance brokers in India.
  • Top 36 brokers account for 85% of insurance broking revenue.
  • Many small brokers have failed to scale or digitize.

About IBAI (Insurance Brokers Association of India)

• Status: Statutory trade body under Section 25 of the Companies Act, 1956.
• Headquarters: Mumbai, Maharashtra
• President: Sumit Shantilal Bohra
• Role: Represents and regulates all licensed insurance brokers in India.

BS

5. IRDAI Issues Master Circular to Raise Minimum Insurance Coverage Requirements

Context:

On 25 July 2025, the Insurance Regulatory and Development Authority of India (IRDAI) released its latest Master Circular. This circular lays out enhanced regulatory obligations for all life, general, and standalone health insurers for FY2025–26 and FY2026–27, superseding the 2024 version of the regulations.

Key Obligations for Insurers

Rural Sector Coverage

• FY26: Insurers must collectively cover lives, dwellings, and vehicles in 25,000 designated Gram Panchayats. Each insurer must ensure 15% coverage in their allocated panchayats.
• FY27: Target increased to 50,000 Gram Panchayats. Insurers must achieve 25% coverage in earlier allocated areas and 10% in newly assigned panchayats.

Social Sector Coverage

• Insurers must ensure that 10% of the total insured lives are from the social sector in FY26, rising to 12% in FY27.
• Where documentation is lacking, up to 20% of beneficiaries may be included based on self-certification.

Motor Third-Party (TP) Insurance

Obligations are based on an insurer’s market share in the TP segment:

Market Share	FY26 Increase	FY27 Increase
≤ 2%	12.5%	13.75%
2%–5%	10%	11%
5%–10%	7.5%	8.25%
> 10%	5%	5.5%

Insurers must verify compliance using vehicle registration data and the Insurance Information Bureau (IIB) database to identify uninsured vehicles.

Key Changes Introduced

• A consolidated framework replaces separate regulations for rural, social, and motor TP insurance obligations.
• The definition of rural areas is now tied to Gram Panchayat jurisdiction, promoting better local targeting.
• The social sector definition has been broadened to include:
• Unorganised workers
• Informal sector employees in small establishments (fewer than 10 workers)
• Beneficiaries of government-sponsored schemes
• Emphasis placed on saturation-based coverage: insurers are encouraged to comprehensively cover dwellings, lives, livelihoods, and vehicles in each assigned area.
• Incentives proposed for insurers who exceed minimum targets or adopt innovative approaches.

About IRDAI

• Full Name: Insurance Regulatory and Development Authority of India
• Founded: 1999
• Headquarters: Hyderabad, Telangana
• Current Chairperson: Ajay Seth

6. SEBI Proposes Changes in IPO Allocation Norms for Large Issues

Context:

The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing major reforms to the allocation structure of Initial Public Offerings (IPOs), particularly for large issues exceeding ₹5,000 crore. The move aims to better align IPO allocation with investor interest and institutional appetite.

Proposed Changes in IPO Allocation Structure

• For IPOs above ₹5,000 crore, SEBI proposes:
  • Retail investor quota to be reduced from 35% to 25%.
  • Institutional quota (Qualified Institutional Buyers – QIBs) to be increased from 50% to 60%.
  • A graded approach will be applied based on IPO size.

Rationale Behind the Proposal

• SEBI noted that:
  • IPO sizes have grown, but retail participation has remained flat over the last three years.
  • In large IPOs, retail subscription levels have often been muted or underutilized, while institutional demand remains strong.

Anchor Investor Reforms

• SEBI proposes to increase the number of permissible anchor investor allottees for allocations exceeding ₹250 crore.
  • This will make participation easier for large FPIs managing multiple funds.
• Inclusion of insurance companies and pension funds in the reserved anchor investor category is suggested.

Enhanced Reservation for Long-term Institutions

• Within the anchor investor portion, the reservation for:
  • Life insurers, pension funds, and domestic mutual funds to increase from 30% to 40%.
    • One-third of this (approx. 13.3%) remains for domestic mutual funds.
    • 7% is earmarked specifically for insurance companies and pension funds.

Objective of the Reform

To align IPO structures with:

• Market demand and mutual fund flows
• Ground realities of retail application limits
• The goal of maintaining long-term investor confidence in India’s capital markets

Mint

Agriculture

1. Reassessing India’s Agricultural Protectionism and the Need for Market Reforms

Context:

India’s post-Independence tariff policy has been centred on protecting agriculture, citing food security and farm livelihoods. However, over the decades, this protectionist model has resulted in inefficiencies, uncompetitive farming, and persistent food insecurity. A recent opinion piece reconsiders the long-standing rationale for this policy, highlighting the market distortions and the need for structural reforms.

Key Highlights:

1. Protectionism in Agriculture: An Outdated Strategy

• Tariff protections, originally meant to shield farmers, have become counterproductive:
  • Created concentric rings of protection across agriculture, manufacturing, and services.
  • Result: Uncompetitive agriculture, low farm wages, and inefficient food systems.

2. Food Security Paradox

• Selective price support policies (like MSPs) distort cropping patterns in favour of government-stocked staples (e.g., rice, wheat).
• Leads to:
  • Surpluses in some crops → necessitating exports.
  • Deficits in others → requiring imports.
• India becomes a simultaneous importer and exporter of food—indicative of a flawed security model.

3. Stagnant Farm Productivity and Wages

• Factory jobs in a protected economy haven’t expanded fast enough to absorb surplus rural labour.
• Result: Persistently low agricultural productivity and incomes.

4. Need for Market-Based Reforms

• Farmers are entrepreneurs, yet denied fair access to markets.
• Protection should focus on:
  • Risk reduction, not market insulation.
  • Higher productivity through:
    • Investment in GM crops.
    • Sustainable land and water use.
    • Enhanced logistics, warehousing, and marketing infrastructure.

5. Policy Contradictions

• Current gains in productivity rely heavily on imported fertilisers, worsening dependence.
• The state continues to dominate food policy, despite clear signs of market failure and inefficiencies.

6. Long-Term Economic Risk

• Shielding half of India’s population (farmers) from market forces is unsustainable.
• Agriculture must evolve into a mature industry if it is to secure food supply and contribute to growth.

TET

2. Cabinet Approves “Grant-in-Aid to National Cooperative Development Corporation (NCDC)” Scheme

Context:

The Union Cabinet has approved a new Central Sector Scheme titled “Grant-in-Aid to NCDC”, with a total outlay of ₹2,000 crore for four years (FY 2025–26 to FY 2028–29).

Key Features

• Nature of Scheme: Central Sector Scheme
• Total Outlay: ₹2,000 crore (₹500 crore annually)
• Implementing Agency: National Cooperative Development Corporation (NCDC)
• Funding Purpose:
  • Grant to be used by NCDC to mobilize ₹20,000 crore from open markets.
  • Loans to be provided to cooperatives for:
    • Setting up new projects
    • Expansion, modernization, and tech upgradation
    • Working capital support

Expected Benefits

• Financial Empowerment of Cooperatives: Enables cooperatives to run profitably with improved liquidity and infrastructure.
• Capacity Building: Supports modernization, diversification, and scaling-up of cooperative enterprises.
• Social Impact: Aims to reduce socio-economic disparities and enhance women’s participation in the workforce.
• Asset Creation: Facilitates income-generating capital asset creation across cooperative sectors.

About NCDC

• Established: 1963
• Type: Statutory Corporation
• Headquarters: New Delhi
• Administrative Ministry: Ministry of Cooperation
• Mandate: Planning and promoting production, processing, marketing, and storage of agricultural produce and related activities under cooperative principles.

Facts To Remember

1. PM Modi invites citizens to share ideas for Independence Day

Prime Minister Narendra Modi has invited all citizens to contribute their thoughts and ideas for his Independence Day address. In a social media post, Mr Modi urged citizens to share their thoughts on the open forums on MyGov and the NaMo App.

2. HM Amit Shah pays tribute to Lokmanya Bal Gangadhar Tilak on his death anniversary

Union Home Minister Amit Shah paid tribute to Lokmanya Bal Gangadhar Tilak on his death anniversary today. In a social media post, Mr Shah stated that Tilak transformed Swaraj into a mass movement, made Swadeshi a matter of public consciousness, and elevated culture as a source of national pride. 

3. PM Modi to disburse ₹20,500 cr under PM-KISAN scheme in Varanasi

Prime Minister Narendra Modi will visit his parliamentary constituency, Varanasi, tomorrow to lay the foundation stone and inaugurate the development projects worth around 2,200 crore rupees. On this occasion, PM Modi will also address a public gathering.

4. Cabinet approves ₹6,520 crore outlay for Pradhan Mantri Kisan Sampada Yojana

The Cabinet has approved a total outlay of 6520 crore rupees, including additional outlay of 1920 crore rupees for ongoing Central Sector Scheme “Pradhan Mantri Kisan Sampada Yojana” during 15th Finance Commission Cycle.

5. Starlink receives license to launch satellite internet service in India

Union Communications Minister Jyotiraditya Scindia today said that Elon Musk-led Starlink has received a license to launch satellite internet service in India and a framework for spectrum allocation is also in place for a smooth rollout.

6. PM Modi condoles passing away of former RSS Chief Pramila Medhe

Prime Minister Narendra Modi today condoled the passing of Pramukh Sanchalika of Rashtra Sevika Samiti, Pramila Tai Medhe.

Daily Current Affairs Quiz
2 August, 2025

National Affairs

1. Apna Ghar Initiative

Context:

The Ministry of Petroleum and Natural Gas has launched a national-level initiative titled ‘Apna Ghar’ in 2025, designed to provide dignified resting facilities for truck drivers across highways in India.

About Apna Ghar Initiative:

• What It Is:
  • A resting infrastructure scheme for long-haul truck drivers to promote health, hygiene, and well-being.
• Nodal Ministry:
  • Ministry of Petroleum and Natural Gas
• Operated By:
  • Public Sector Oil Marketing Companies (OMCs) at fuel retail outlets located along national and state highways
• Launch Year: 2025

Objectives:

• Enhance road safety by reducing driver fatigue
• Provide inclusive, welfare-oriented infrastructure for truckers
• Support India’s logistics and transport ecosystem
• Align with SDG 8 (Decent Work and Economic Growth)

Key Features:

• Nationwide Coverage:
  • 368 rest houses with 4,611 beds now operational
• Facilities Provided:
  • Dormitories (10–30 beds each)
  • Clean toilets and Houdas (bathing areas)
  • Self-cooking spaces and dining facilities
  • Restaurants/Dhabas
  • Access to purified drinking water
• Technology Integration:
  • ‘Apna Ghar’ mobile app launched for online booking, feedback, and service improvement
• Public-Private Model:
  • Infrastructure built and managed by OMCs in collaboration with private stakeholders
• User-Centric Design:
  • Facilities tailored to the actual needs of truck drivers using feedback and data analytics

PIB

2. ISRO Identifies Cause of PSLV-C61/EOS-09 Mission Failure

Context:

The Indian Space Research Organisation (ISRO) has concluded its investigation into the PSLV-C61/EOS-09 mission failure that occurred on May 18, 2025. ISRO Chairman V. Narayanan confirmed that the Failure Analysis Committee has pinpointed the cause.

Key Highlights:

• Mission Objective: To place EOS-09, an Earth Observation Satellite, into a sun-synchronous polar orbit.
• Launch Vehicle: PSLV-C61, launched from Satish Dhawan Space Centre, Sriharikota.
• Launch Outcome: Lift-off and performance were normal until the second stage; an anomaly in the third stage led to mission failure.

Significance

• This failure is notable as PSLV is ISRO’s most trusted and reliable launch vehicle, with a strong track record over multiple decades.
• The incident is a rare setback for ISRO’s operational record.

TH

3. ISRO to Launch U.S.-Developed BlueBird Satellite Aboard LVM3

Context:

ISRO is set to launch the Block 2 BlueBird communication satellite, developed by U.S.-based AST SpaceMobile, in the next 3–4 months, ISRO Chairman V. Narayanan announced on Friday.

Key Highlights:

• Launch Details
  • Satellite: BlueBird (Block 2)
  • Developer: AST SpaceMobile (USA)
  • Launch Vehicle: LVM3 (formerly GSLV Mk III)
  • Launch Site: Satish Dhawan Space Centre, Sriharikota
• Significance
  • Marks another key India–U.S. space collaboration, following the successful launch of the NISAR satellite on July 30, 2025.
  • Highlights India’s role as a trusted launch partner for global heavy payloads.

TH

4. Govt Expands PM SVANidhi Scheme

Context:

The Union Government has approved the second phase of the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme with enhanced loan limits and the introduction of UPI-linked credit cards to deepen financial inclusion for urban street vendors.

Key Highlights:

• Expanded Coverage:
  • The revamped scheme will cover 50 lakh more beneficiaries, in addition to the already existing street vendors.
• Enhanced Loan Amounts:
  • First loan: Increased from ₹10,000 to ₹15,000
  • Second loan: Increased from ₹20,000 to ₹25,000
  • Third loan: Unchanged at ₹50,000
  • All loans continue to carry an interest subsidy of 7%.
• UPI-Linked Credit Cards Introduced:
  • Approved for 11 lakh street vendors who have successfully repaid the first two loans.
  • These cards will have a limit of ₹30,000, enabling vendors to access rolling working capital through digital payments.
  • Banks will frame repayment rules for the credit card facility.
• Improved Financial Behaviour:
  • Out of over 68 lakh street vendors who took the initial ₹10,000 loan, around 38.4 lakh have repaid, indicating growing credit discipline.
• Objective of Reforms:
  • The changes aim to boost creditworthiness, formalisation, and digital financial access among street vendors.
  • Helps build confidence and improve capital availability for micro urban entrepreneurship.

TOI

Banking/Finance

1. SEBI Plans Major Reforms for Mega IPOs

Context:

The Securities and Exchange Board of India (SEBI) is considering regulatory reforms to streamline large Initial Public Offerings (IPOs) and improve market efficiency, especially for high-value companies like NSE, Reliance Jio, and Flipkart.

Key Highlights:

• Retail Quota to be Reduced:
  • For IPOs above ₹5,000 crore, the retail investor reservation (applications below ₹2 lakh) may be reduced from 35% to 25%.
  • This is in response to low retail participation in jumbo IPOs like Hyundai Motor India (₹27,859 crore issue).
• Increased Institutional Quota:
  • The allocation for Qualified Institutional Buyers (QIBs) is proposed to be raised from 50% to 60%.
  • Aims to enhance stability and pricing efficiency in large public issues.
• Lower Minimum Public Dilution:
  • Currently, companies valued over ₹1 trillion must dilute at least 5% stake.
  • SEBI may reduce this to 2.5%, enabling companies to raise smaller sums initially while maintaining public market access.
  • Example: NSE (₹6 trillion valuation) currently needs a ₹30,000 crore issue; with relaxed norms, it could reduce the IPO size significantly.
• Operational Challenges Noted:
  • Mobilising large volumes of retail investors has proven difficult.
  • Institutions already manage much of retail capital through mutual funds and pension schemes.
• Additional Suggestions Under Review:
  • Reserved portions in anchor books for pension funds and insurance companies.
  • Enhanced regulatory discretion in unique listing scenarios.

BS

2. RBI’s MuleHunter Platform to Tackle Bank Frauds Gains Traction

Context:

The Reserve Bank of India (RBI) is scaling up the deployment of its AI-driven MuleHunter platform across more banks to curb fraud involving mule accounts.

Key Highlights:

• MuleHunter Deployment:
  • Already implemented by 5 banks: Canara Bank, PNB, BoI, BoB, and AU Small Finance Bank.
  • Federal Bank to adopt it shortly.
  • At least 15 more banks expected to onboard in the next 1–2 months.
• What is MuleHunter?
  • Developed by RBI Innovation Hub.
  • Uses AI/ML algorithms to detect mule accounts (fraudulent accounts used for money laundering or scams).
  • Currently being provided to banks free of cost.
• Functionality & Efficiency:
  • Detects 90% true positives, significantly better than traditional systems with 80% false positives.
  • Identified 90 fraud patterns, such as frequent night-time transactions (esp. between 11 PM–1 AM).
  • Used for both savings and current accounts.
• Implementation Requirements:
  • Banks need infrastructure and data science teams for full adoption.
  • Platform will learn and adapt better as more banks join.
• RBI’s Broader Strategy:
  • AI Committee Report to be released soon.
  • RBI is also evaluating threats from quantum computing to preempt future cyber risks.

Significance

• Enhances the cybersecurity framework for Indian banks.
• Aims to curb digital financial frauds more effectively.
• Supports real-time fraud prevention and inter-bank intelligence sharing.

BS

3. UPI’s ‘Free Payments’ Model Under Strain as ICICI Bank Imposes Charges on Payment Aggregators

Context:

ICICI Bank has begun charging payment aggregators (PAs) for processing UPI transactions, raising concerns over the long-term viability of the zero-cost digital payments ecosystem.

Key Highlights:

• Impact on Payment Aggregators:
  • Affects fintechs like Razorpay, PayU, Pine Labs, Innoviti, Worldline.
  • These firms operate on thin margins, collecting merchant discount rates (MDR) on cards and platform fees on UPI.
  • Banks handle backend infrastructure and transaction processing under UPI without charging users.
• Wider Industry Shift:
  • Other banks like Axis Bank and Yes Bank reportedly also levy UPI processing charges on PAs.
  • Indicates a broader pushback by banks against uncompensated costs of scale.
• Regulatory and Policy Tensions:
  • Government insists UPI is a public good and must remain free for users and small merchants.
  • However, RBI officials, including Governor Sanjay Malhotra, caution that UPI must be financially sustainable, and “someone will have to bear the cost”.
• Current Aggregator Strategy:
  • Most PAs continue to subsidise UPI costs internally instead of burdening merchants.
  • Business models now under review as sustainability concerns mount.

TOI

4. NPCI Introduces Revised UPI Rules

Context:

The National Payments Corporation of India (NPCI) has introduced new Unified Payments Interface (UPI) rules, effective from August 1, 2025, to enhance system efficiency, user experience, and fraud prevention.

Key Highlights:

• Scope of New Rules
  • Applicable to all UPI-based payment service providers like Google Pay, PhonePe, Paytm, etc.
  • Covers operations like balance enquiry, autopayments, bank detail access, transaction status, and recipient verification.

Balance Enquiry

• Users can check their bank balance up to 50 times per day on each UPI app.
• During peak hours, UPI apps may restrict balance checks to reduce system load.
• Starting August, available balance will be displayed with every transaction.

Auto Payment Processing

• Autopayments (recurring debits) will be processed only during non-peak hours:
  • Before 10:00 am
  • Between 1:00 pm – 5:00 pm
  • After 9:30 pm
• If scheduled during peak time, the payment may be processed before or after.
• Retries will be attempted; failure after retries leads to auto-cancellation.

Bank Details Access

• Users can view the list of banks linked to their mobile number.
• Limited to 25 access requests per day.
• Bank detail requests must be initiated after selecting the issuer bank.

Transaction Status Updates

• During peak hours, pending payment status will now be updated instantly.
• Users can check the status only 3 times, with a 90-second gap between checks.

Recipient Details Before Payment

• Sender will see the recipient’s registered name and transaction ID before completing the transaction.
• Aims to prevent fraud and mistaken transfers.

Compliance & Penalties

• NPCI may impose penalties or restrictions in case of non-compliance:
  • UPI API restrictions
  • Onboarding suspension
  • Fines and other regulatory actions

About NPCI

• Founded: 2008
• Headquarters: Mumbai, Maharashtra
• CEO: Dilip Asbe

TOI

5. MCX Relaunches Cardamom Futures Trading Contracts

Context:

The Multi-Commodity Exchange of India (MCX) has reintroduced cardamom futures contracts, initially launching for August, September, and October 2025. The relaunch comes after a regulatory pause initiated in 2021.

Key Highlights:

• Relaunch Date:
  • Trading resumes from Tuesday, July 29, 2025.
• Reason for Previous Suspension:
  • SEBI had discontinued cardamom futures in 2021 via regulatory circular.
• New Contracts Introduced:
  • Futures contracts for August, September, and October 2025 will be available.

Cardamom Futures Contract Specifications

• Trading Symbol: CARDAMOM
• Trading Unit: 100 kg
• Tick Size (Minimum Price Movement): ₹1 per kg
• Delivery Location: Vandanmedu warehouse, Idukki district, Kerala
• Demat Account: Mandatory for participation

Significance of Relaunch

• Market Stability: Promotes structured trading and reduces price volatility in the spot market
• Price Discovery: Transparent and regulated pricing mechanism
• Farmer Empowerment: Ensures better pricing and risk hedging for growers
• Export Facilitation: Enables exporters to source quality produce via a national platform

This initiative is expected to benefit the entire cardamom value chain, from farmers to global buyers, aligning with broader goals of agricultural market modernization.

BS

6. Finance Ministry Notifies 0.1% Concessional Government Guarantee Fee for NaBFID

Context:

The Ministry of Finance has set a 0.1% concessional guarantee fee for the National Bank for Financing Infrastructure and Development (NaBFID) to enable access to low-cost foreign capital for infrastructure development.

Key Highlights:

• Concessional Rate Details:
• The 0.1% concessional fee applies to government guarantees for borrowings from:
  • Multilateral development banks
  • Sovereign wealth funds
  • Other notified foreign financial institutions
  • The fee is payable at the time of guarantee issuance and annually every April 1 thereafter.
• Objective:
  • To enable NaBFID to raise offshore funding at reduced costs.
  • Supports funding of critical infrastructure projects aligned with India’s growth agenda.
• Credit Ratings for NaBFID:
  • Moody’s: Baa3 (Stable)
  • Fitch Ratings: BBB- (Stable)
  • Both are at par with India’s sovereign credit rating, facilitating investor trust.

About NaBFID

• Established in 2021 through an Act of Parliament.
• Functions as a specialized Development Finance Institution (DFI).
• Aims to:
• Bridge long-term infrastructure financing gaps
• Promote bond market and derivatives market development in India

BL

Agriculture

1. AI in Indian Agriculture

Context:

India’s agriculture sector, which supports over 42% of the population and contributes 18.2% to GDP, faces persistent challenges like low yields, high post-harvest losses (up to 15%), and limited access to irrigation, credit, and market linkage. Emerging digital solutions like artificial intelligence (AI) are now being deployed to address these gaps.

AI’s Transformative Impact

• Decision Support Tools: AI is enabling smarter crop planning, pest control, and irrigation.
• Water Efficiency: AI-based irrigation systems can cut water usage by 80% and boost yields by 20–30%.
• Digital Integration: Over 15 million farmers now use AI-enabled platforms that provide personalized insights based on crop, soil, and climate data.
• Post-Harvest Efficiency: AI helps reduce wastage and improves price discovery by directly linking farmers with buyers.

Challenges in Adoption

• Data Gaps: Most land records remain undigitised and crop datasets are limited.
• Digital Literacy: Many farmers are unaware or lack skills to use AI-based tools.
• Regulatory Issues: Absence of standardized frameworks for testing and validating AI solutions in agriculture.

Policy and Structural Reforms Needed

• Agri-Stack Development: Consolidating land, crop, and climate data for targeted interventions.
• IoT and Precision Tech: Use of farm-level monitoring tools to aid in real-time decision-making.
• Training & Capacity Building: Farmer training programs, curriculum reforms in agri-universities, and mentorship for agri-tech startups.
• Supportive Policy Framework: Need for AI validation centers, privacy rules, and AI-linked credit policies.

BL

Awards

1. 71st National Film Awards 2023

Context:

The 71st National Film Awards, recognising excellence in Indian cinema for the year 2023, were announced. The honours celebrated both seasoned actors and emerging talent across multiple languages and genres, reflecting the depth and diversity of Indian filmmaking.

Top Awards and Major Highlights

Best Feature Film

• Winner: 12th Fail (Hindi)
• Lead Actor: Vikrant Massey (also shared Best Actor award)

Best Actor (Male) (Shared)

• Shah Rukh Khan for Jawan (Hindi)
• Vikrant Massey for 12th Fail (Hindi)
• Note: First National Award for both actors

Best Actor (Female)

• Rani Mukerji for Mrs Chatterjee vs Norway (Hindi)
• Note: First National Award for Rani Mukerji

Best Director

• Sudipto Sen for The Kerala Story (Hindi)
• Also won: Best Cinematography (Prasantanu Mohapatra)

Best Popular Film Providing Wholesome Entertainment

• Rocky Aur Rani Kii Prem Kahaani (Hindi), directed by Karan Johar

Best Film on National, Social and Environmental Issues

• Sam Bahadur (Hindi), directed by Meghna Gulzar

Read more>>

Facts To Remember

1. Trump to deploy nuclear submarines in response to Medvedev’s comments

U.S. President Donald Trump said on Friday that he had ordered the deployment of two nuclear submarines in response to “highly provocative” comments by a senior Russian official.

2. SAI felicitates young medal-winning archers Jadhav and Bhardwaj

World University Games champion archer Sahil Jadhav said coach Rahul Banerjee’s pep talk helped him clinch the gold medal in the keenly-contested compound men’s individual final in Essen, Germany, recently.

3. Federal Reserve Governor Kugler resigns, giving Trump key vacancy to fill

The Federal Reserve announced Friday that governor Adriana Kugler will step down next week, opening up a spot on the central bank’s powerful board that President Donald Trump will be able to fill.

4. 4 astronauts from US, Japan, Russia successfully dock at space station: NASA

Four astronauts from the United States, Japan, and Russia have successfully reached the International Space Station (ISS) as part of NASA’s Crew-11 mission. 

5. India launches projects under India-UN Global Capacity Building Initiative to aid Global South

India launched the first set of four development projects under the “India-UN Global Capacity Building Initiative,” aimed at supporting countries of the Global South in meeting Sustainable Development Goals.

Daily Current Affairs Quiz
3&4 August, 2025

National Affairs

1. LVM3 Rocket with Semi-Cryogenic Engine

Context:

The Indian Space Research Organisation (ISRO) is preparing for a landmark technological advancement with the scheduled launch of an LVM3 rocket powered by a semi-cryogenic propulsion stage by early 2027. This will significantly enhance India’s space launch capability and reduce dependency on foreign engines.

Key Developments:

• Rocket Upgrade:
  • The LVM3 (formerly GSLV Mk III), India’s most powerful rocket, will be upgraded with a semi-cryogenic engine stage, replacing the current L110 liquid propellant stage.
• Propellant Details:
  • The new stage will use refined kerosene (RP-1) and liquid oxygen (LOX), a shift from the traditional hypergolic propellants.
• Engine Specification:
  • The SE2000 semi-cryogenic engine is under testing. It will provide 200 tonnes of thrust, compared to 80 tonnes by the current Vikas engine.

TH

2. National Child Survey to Develop Child Index Under Mission Vatsalya

Context:

To strengthen child rights protection and enhance evidence-based policymaking, the Ministry of Statistics and Programme Implementation (MoSPI), in collaboration with the Ministry of Women and Child Development (MoWCD), is set to conduct a National Child Survey.

Objective of the Survey

• Mission Vatsalya is the core focus of the survey.
• The survey aims to map the needs of children:
  • In need of care and protection
  • In conflict with law
• The ultimate goal is to develop a Child Index to guide welfare policies.

Mission Vatsalya Portal

The Ministry of Women and Child Development (MWCD) has launched the revamped Mission Vatsalya Portal, a unified digital platform designed to streamline child protection services and integrate earlier services like Khoya-Paya and TrackChild.

Objective

• To create a secure, centralized, and tech-enabled system for monitoring and managing child protection efforts across India, improving coordination among various stakeholders and ensuring real-time data-driven decision-making.

Key Features of the Mission Vatsalya Portal

• Integrated platform combining Khoya-Paya and TrackChild under a single portal.
• Multi-stakeholder access, including:
  • State level: State Child Protection Society (SCPS), State Adoption Resource Agency (SARA)
  • District level: District Child Protection Unit (DCPU), Child Welfare Committee (CWC), Juvenile Justice Board (JJB), Special Juvenile Police Unit (SJPU), and Child Care Institutions (CCIs)
• Real-time Monitoring: MIS dashboards enhance monitoring, evaluation, and reporting.
• Avoids duplication of data entry and services at the grassroots level.
• Ensures resource optimization and efficient implementation of child welfare schemes.
• Provides a digital workflow system for case tracking and inter-agency coordination.

Significance of the Child Index

• Will provide a data-driven foundation for policies under Mission Vatsalya.
• May serve as a tool to monitor child welfare outcomes across states.
• Addresses a major statistical gap in understanding vulnerable children’s conditions.

BS

3. India to Launch Climate Finance Taxonomy

Context and Background:

India is set to launch its first comprehensive Climate Finance Taxonomy in August 2025, providing clear definitions for investments that qualify as climate-aligned. The move aims to mobilize both domestic and international capital towards clean energy, adaptation, and achieving India’s net-zero targets.

This taxonomy is aligned with India’s obligations under the Paris Agreement and was first announced in the Union Budget 2024 by Finance Minister Nirmala Sitharaman.

What is Climate Finance Taxonomy?

A climate finance taxonomy is a structured classification system that helps identify:

• Green and climate-resilient assets
• Eligible economic activities and projects
• Sectoral priorities consistent with climate mitigation, adaptation, and financing goals

Key Features of India’s Climate Finance Taxonomy

As per the final draft prepared by the Department of Economic Affairs:

• Hybrid Classification System: Includes both climate-supportive and transition-supportive investments
• Phased Rollout: A two-stage implementation—starting with a foundational taxonomy, followed by detailed sector-wise annexures
• Support for MSMEs: Strong emphasis on channeling finance towards micro, small and medium enterprises for green transitions
• Adaptation Focus: Equal weight on adaptation finance along with mitigation
• Guardrails against Greenwashing: Strong eligibility standards and verification criteria
• Alignment with National Targets: Fully integrated with India’s net-zero by 2070 goal and the Viksit Bharat 2047 development vision

Why This Matters

• Offers investors and financial institutions clarity and confidence about what qualifies as green finance
• Enables targeted policy incentives and resource allocation
• Helps India meet its Nationally Determined Contributions (NDCs)
• Boosts private sector participation in climate financing
• Positions India as a responsible and data-driven actor in global sustainable finance markets

Mint

Banking/Finance

1. Choice International Gets SEBI Approval to Launch Mutual Fund Business via Choice AMC

Context:

Mumbai-based financial services company Choice International Ltd has received the final approval from the Securities and Exchange Board of India (SEBI) for its subsidiary, Choice AMC, to operate as a full-fledged Asset Management Company (AMC). This marks the company’s entry into India’s ₹50 lakh crore mutual fund industry.

Key Highlights:

• Regulator: SEBI has granted the final nod to Choice AMC to commence mutual fund operations.
• Initial Strategy: The AMC will adopt a phased rollout, beginning with passive investment products, such as:
  • Index Funds
  • Exchange Traded Funds (ETFs)

Significance

• Investor Accessibility: Passive products offer low-cost, diversified investment options ideal for retail participation.
• Holistic Financial Platform: With this move, Choice Group strengthens its position as an integrated player across broking, lending, investment banking, and now mutual funds.
• Governance Focus: The AMC aims to operate within a strong regulatory and governance framework to ensure investor protection and long-term scalability.

BS

2. Quant Mutual Fund Becomes First AMC in India to Launch Specialized Investment Fund (SIF)

Context:

Quant Mutual Fund has received final approval from the Securities and Exchange Board of India (SEBI) to launch India’s first Specialized Investment Fund (SIF), marking a major regulatory and strategic milestone in the evolution of the country’s asset management industry.

Key Highlights:

• First-of-its-Kind Approval: Quant MF will launch the QSIF Equity Long-Short Fund, India’s first fund under the newly created SIF category.
• Strategy: The fund will use long-short investment strategies across:
  • Equity
  • Debt
  • Hybrid categories
• Launch Timeline: The fund is expected to be launched in August 2025.

What is a Long-Short Fund?

A long-short fund allows the fund manager to:

• Take long positions in securities expected to rise.
• Take short positions in securities expected to fall.
  This approach seeks to reduce portfolio volatility while enhancing potential returns, especially useful in uncertain or volatile markets.

About Specialized Investment Funds (SIFs)

SIFs are a new fund category under SEBI’s framework allowing mutual funds to offer advanced investment strategies. These funds can be launched as:

• Open-ended, close-ended, or interval schemes.
• Designed to expand product diversity and deepen India’s mutual fund ecosystem.

SEBI’s Compliance Mechanism for SIFs

• Minimum Investment Threshold: ₹10 lakh per investor.
• Breach Handling:
  • If threshold falls below ₹10 lakh due to any transaction, all SIF units of the investor will be frozen for debit.
  • The investor will be given a 30-day notice to rebalance and comply.
  • If rebalanced in time, units will be unfrozen.
  • If not, the units will be automatically redeemed at the prevailing NAV by the AMC.

Mint

3. RBI Approves Merger of New India Co-operative Bank with Saraswat Co-operative Bank

Context:

The Reserve Bank of India (RBI) has approved the amalgamation of fraud-hit New India Co-operative Bank (NICB) with Saraswat Co-operative Bank (SCB), under its voluntary merger framework for Urban Co-operative Banks (UCBs).

Key Highlights:

• What Happened
  • Saraswat Co‑operative Bank, India’s largest urban cooperative bank, has secured RBI approval to merge with the fraud-hit New India Co‑operative Bank (NICB).
  • The merger is effective from August 4, 2025, and all NICB branches will operate as Saraswat Bank branches from that day onward.
• Reason for the Merger
  • NICB was placed under RBI moratorium in February 2025 following governance failures and a ₹122 crore fraud by senior officials, which resulted in frozen withdrawals and deposit restrictions
  • Saraswat Bank voluntarily proposed to absorb NICB to safeguard investors’ interests and stabilize the bank’s operations.
• Initiation
  • India’s largest UCB, Saraswat Bank, had voluntarily proposed the merger to RBI.

Significance

• Strengthens Saraswat Bank’s presence in Maharashtra, especially Mumbai.
• Enhances stability in the UCB sector by protecting depositors and resolving distressed bank assets.
• Reinforces RBI’s strategy of consolidation and clean-up in the co-operative banking space through voluntary amalgamations.

TOI

4. India Post Payments Bank Rolls Out Aadhaar-Based Face Authentication for Digital Banking

Context:

India Post Payments Bank (IPPB), under the Ministry of Communications, has launched Aadhaar-based face authentication for customer transactions nationwide, making it the first large-scale deployment of facial recognition-based banking in India.

Objective

To promote inclusive, contactless, and accessible banking for all citizens, especially the elderly, differently-abled, and those facing challenges with fingerprint or OTP-based authentication.

Key Features of the Face Authentication Facility

• Developed under UIDAI framework using Aadhaar’s facial recognition capabilities.
• Enables secure, OTP-free and fingerprint-free Aadhaar authentication for transactions.
• Ensures fast, contactless, and seamless customer experience, especially during health-related emergencies.
• Available for a range of services:
  • Account opening
  • Balance inquiry
  • Fund transfers
  • Utility payments

Significance

• Strengthens IPPB’s mission of “Aapka Bank, Aapke Dwaar”.
• Supports Digital India and Financial Inclusion goals by increasing last-mile banking access.
• Particularly beneficial for rural and semi-urban populations, aged individuals, and citizens with worn-out fingerprints.

About India Post Payments Bank (IPPB)

• Established: September 1, 2018
• Parent Ministry: Department of Posts, Ministry of Communications
• Ownership: 100% Government of India
• Headquarters: New Delhi
• MD & CEO: Shri R. Viswesvaran
• Network:
  • ~1.65 lakh post offices (including ~1.4 lakh in rural areas)
  • ~3 lakh postal employees acting as banking service agents
• Technological Pillars: Based on India Stack for paperless, cashless, presence-less banking
• Customer Base: 11 crore+ customers across 5.57 lakh villages and towns
• Languages Supported: Banking available in 13 regional languages

TET

Agriculture

1. Bio-Fortified Iron-Rich Potatoes to Enter Indian Markets Soon

Context:

India is set to introduce bio-fortified potatoes enriched with iron, aimed at combating nutritional deficiencies. The initiative is led by the International Potato Center (CIP), a global leader in tuber crop research, which is currently setting up its South Asia Regional Centre in Agra.

Key Highlights:

• Bio-Fortified Potato
  • Bio-fortified potatoes are a new variety enriched with higher iron content aimed at addressing iron deficiency and hidden hunger.
  • These are developed using conventional breeding and biotechnology without altering taste or yield.
• New Bio-Fortified Potato Variety:
  • Developed by CIP with added iron content to address widespread iron deficiency and anaemia.
  • The germplasm has been shared with ICAR’s Central Potato Research Institute (CPRI) in Shimla.
  • The first iron-rich variety has already been released in Peru and is now under evaluation for Indian agro-climatic conditions.
• Bio-Fortified Sweet Potatoes Already in India:
  • Vitamin A-enriched sweet potatoes, also developed by CIP, are currently cultivated and distributed in:
    • Karnataka
    • Assam
    • West Bengal
    • Odisha
• Scaling Access to Farmers:
  • CIP plans to expand seed access to Indian farmers to promote wider adoption of nutrient-rich tuber crops.
  • Focus on integrating agronomic suitability with nutritional value in local crop development.
• Ideal Location
  • The potato research and seed multiplication centre will be located in the Indo-Gangetic plains, the world’s largest potato-producing region, making it strategically important for national and global potato supply chains.

TH

2. Agri-Influencers in India

Context:

India is on track to reach over 900 million internet users by 2025, with the majority from rural areas, according to IAMAI-Kantar. This digital expansion has given rise to a new category of content creators—agri-influencers—who are reshaping perceptions of rural life and agriculture through authentic, grassroots digital content.

Key Highlights:

• Who Are Agri-Influencers?
  • Real-life farmers sharing their experiences on YouTube, Instagram, ShareChat, and similar platforms.
  • Content includes crop techniques, pest control, equipment demos, and daily farm life.
  • Videos are in local languages, making them relatable and culturally relevant.
• Impact on Public Perception
  • Farming is now seen as aspirational and innovative, especially by rural youth.
  • Content is creating peer-to-peer agricultural education, replacing the need for formal training in many areas.
  • Influencers are becoming rural role models and fostering community pride.
• Commercial Potential
  • Agri-influencers are trusted product endorsers, especially for seeds, tools, and agri-fintech products.
  • Brands are partnering with these creators for vernacular, targeted marketing.
  • A new niche industry has emerged around managing agri-influencer campaigns, content strategies, and performance analytics.
• Challenges and Risks
  • Patchy internet access and limited monetisation models hinder growth.
  • The influx of commercial interests may dilute authenticity.
  • Emphasis must remain on education, community service, and truthful storytelling.
• Policy and Industry Implications
  • Rural India is no longer a passive consumer base but an active creator ecosystem.
  • Policymakers, platforms, and brands must invest in digital literacy, content infrastructure, and transparent partnerships.
  • Supporting agri-influencers can drive inclusive rural growth and entrepreneurship.

Why It Matters?

This is more than a digital trend it’s a social transformation. Agri-influencers are helping India rethink agriculture through the lens of community, resilience, and innovation. Their stories are not only changing how farming is practiced but also how it is valued and celebrated.

BL

Facts To Remember

1. China, Russia start three-day joint naval drills in Sea of Japan

China and Russia began joint naval drills in the Sea of Japan on Sunday as they seek to reinforce their ties and counterbalance what they see as a U.S.-led global order. 

2. Four Somalis and three Ethiopians among 8 executed by Saudi Arabia

Saudi Arabia executed eight people in a single day, state media said, amid a surge in the use of the death penalty in the Gulf monarchy particularly over drug-related convictions. 

3. Norris wards off Piastri to win Hungarian GP

Lando Norris held off McLaren teammate Oscar Piastri to win the Hungarian Grand Prix on a one-stop strategy and slash the Australian’s Formula One lead to nine points going into the August break.

4. Sreeshankar leaps to title in Kazakhstan

Long jumper Murali Sreeshankar clinched his third straight title at the Qosanov Memorial Athletics Meet in Almaty, Kazakhstan, on Saturday after coming back from a long injury lay-off.

5. PM to Launch Bengaluru’s Yellow Line Metro on Aug 10

Prime Minister Narendra Modi will open the long-delayed Yellow Line of Bengaluru Metro on August 10, connecting Rashtriya Vidyalaya Road in South Bengaluru to Bommasandra on the east with 16 stations.

6. India Misses AIP Upgrade for Kalvari-Class Submarines Amid DRDO Delays

India’s attempt to enhance the underwater endurance and stealth of its Kalvari-class (Scorpene) conventional submarines has suffered another setback. The indigenous Air Independent Propulsion (AIP) system being developed by DRDO is still not operational, causing delays in retrofitting submarines with this key strategic capability.

Daily Current Affairs Quiz
5 August, 2025

National Affairs

1. Matri Van Initiative

Context:

Union Ministers of Environment launched the ‘Matri Van’ initiative in Gurugram as part of the broader environmental movement ‘Ek Ped Maa Ke Naam’.

About Matri Van Initiative

A 750-acre theme-based urban forest project being developed in the Aravalli Hills, Gurugram (Haryana), under the Union Ministry of Environment.

Objective

• Ecological restoration of the degraded Aravalli landscape.
• Promotion of community-led plantation, biodiversity conservation, and creation of urban green lungs.

Key Features

• Multi-Stakeholder Participation
  • Involves CSR bodies, RWAs, MNCs, NGOs, schools, and government agencies for collaborative execution.
• Native Flora Restoration
  • Plantation of Aravalli-specific species like Peepal, Dhak, Amaltash, Neem, Bargad, Pilkhan, and Gullar.
• Eco-Friendly Amenities
  • Includes nature trails, cycle tracks, yoga zones, gazebos, water bodies, treated water irrigation, and flood-control systems.
• Environmental Impact
  • Acts as a carbon sink, reduces urban heat islands, and improves air quality—serving as the “Heart and Lung” of NCR.
• Alignment with National Campaigns
  • Integrated with Ek Ped Maa Ke Naam, Mission LiFE, and Van Mahotsav 2025.

News on Air

2. India Electric Mobility Index (IEMI) 2024

Context:

NITI Aayog has launched the India Electric Mobility Index (IEMI) 2024, India’s first national-level benchmarking tool to assess the performance of States and UTs in transitioning to electric mobility.

About India Electric Mobility Index (IEMI)

A composite index developed by NITI Aayog to score all States/UTs on a 0–100 scale based on their progress in EV adoption, infrastructure development, and innovation ecosystems.

Objective

• To evaluate, compare, and guide States/UTs in their EV transition journey.
• To align sub-national actions with India’s net-zero target by 2070.

Evaluation Criteria

IEMI evaluates performance on 16 indicators under 3 major pillars:

• Transport Electrification Progress
  • Tracks EV adoption across passenger, freight, and public transport segments.
• Charging Infrastructure Readiness
  • Measures deployment of public and private charging stations, and supporting policy frameworks.
• EV Research and Innovation Ecosystem
  • Assesses manufacturing base, R&D, and technological advancements in EV components.

Top Performing States/UTs:

• 1st: Delhi
• 2nd: Maharashtra
• 3rd: Chandigarh

National Trends:

• EV Share in Total Vehicle Sales: Increased.
• Karnataka leads in terms of station count.
• EV Policies:
  • 29 States/UTs have notified EV policies.
  • 4 more are in the draft stage—indicating pan-India engagement.

Significance of IEMI

• Establishes a national benchmark for EV transition.
• Enhances data transparency and accountability.
• Facilitates climate-resilient transport planning.
• Acts as a tool for targeted interventions and resource allocation.

PIB

3. PAN 2.0 Project

Context:

The Income Tax Department has awarded LTIMindtree Ltd the contract for upgrading India’s PAN and TAN management infrastructure under the PAN 2.0 Project, a significant leap in digitizing public tax services. The project was approved by the Cabinet Committee on Economic Affairs (CCEA) in November 2024 and aligns with the Digital India mission.

What is PAN 2.0?

PAN 2.0 is a next-generation technology upgrade that will modernize and secure the issuance, management, and grievance redressal systems for:

• Permanent Account Number (PAN) – PAN (Permanent Account Number) is a 10-character alphanumeric identifier issued by the Income Tax Department of India to individuals, companies, and other entities. It is essential for tracking financial transactions and ensuring tax compliance under the Income Tax Act, 1961.
• Tax Deduction and Collection Account Number (TAN) – TAN (Tax Deduction and Collection Account Number) is a 10-digit alphanumeric number issued by the Income Tax Department of India to entities responsible for deducting or collecting tax at source (TDS/TCS) under the Income Tax Act, 1961.

Key Features and Objectives

• Eco-friendly and paperless systems
• Faster and secure digital issuance of PAN and TAN
• Improved public grievance redressal mechanisms
• Seamless interoperability with other government systems, positioning PAN as a universal digital identifier

Mint

4. Global Artificial Intelligence (AI) City Index 2025

Context:

Bengaluru has been ranked 26th globally in the Global AI City Index 2025, making it the top-ranked city in India for AI research, innovation, and data centre development.

About Global AI City Index 2025

• Published by: Counterpoint Research (market intelligence firm)
• Objective: To benchmark global cities on their AI ecosystem strength including R&D, investments, infrastructure, and real-world applications.
• Scope: Evaluates emerging and established urban centres leading artificial intelligence development.

Key Highlights:

• Bengaluru:
  • Ranked 26th globally, India’s #1 AI city
  • Strong AI R&D network, vibrant startup ecosystem, and expanding data centre capacity
• Other Indian Cities:
  • Mumbai and Delhi utilize AI for traffic management and public security.
  • Chennai and Kolkata recognized among top emerging Indian AI hubs.
• India-Wide Recommendations:
  • The report suggests India needs a stronger national AI policy roadmap and robust regulatory frameworks.

Top 5 Global AI Cities (2025)

1. Singapore
2. Seoul
3. Beijing
4. Dubai
5. San Francisco

Banking/Finance

1. Phygital Banking in India

Context:

Banks are adapting to a hybrid “phygital” model to serve both urban and underserved rural customers effectively. This trend reflects a strategic balance between physical expansion and tech-driven optimization.

What is Phygital Banking?

Phygital Banking is a blended model that combines the physical presence of traditional banking (branches, ATMs, in-person services) with digital banking (mobile apps, internet banking, UPI, chatbots). It aims to deliver a seamless, efficient, and personalized customer experience by integrating the best of both physical and digital worlds.

Key Components of Phygital Banking

• Mobile and internet banking
• Interactive kiosks in branches
• Video KYC and remote onboarding
• QR-based and UPI payments
• Physical branch services with digital enhancements
• Customer Relationship Managers (CRMs)

Pros of Phygital Banking in India

• Wider Reach: Merges branch and mobile access, aiding rural and senior users.
• Financial Inclusion: Boosts JAM trinity with BCs and mobile tech.
• Customer Experience: Offers 24/7 digital service with human support for complex needs.
• Cost Efficiency: Cuts branch and transaction costs.
• Personalization: Enables tailored services via combined physical-digital data.

Cons of Phygital Banking in India

• Infra Gaps: Connectivity and device issues in rural areas.
• Cyber Risks: Increased exposure to fraud and data breaches.
• Complex Operations: Needs major backend integration.
• User Reluctance: Older users favor traditional methods.
• Staff Upskilling: Requires training in digital tools and soft skills.

Examples of Phygital Initiatives in India

• SBI’s YONO: Combines digital services with branch-assisted support.
• HDFC’s Phygital Branches: Offers digital tablets, smart ATMs, and assisted onboarding.
• Airtel Payments Bank & India Post Payments Bank: Leverage mobile tech with doorstep services.

TH

2. SEBI Proposes Turnover-Based Framework for Related Party Transactions (RPTs)

Context:

The Securities and Exchange Board of India (SEBI) released a consultation paper proposing turnover-based thresholds for determining material Related Party Transactions (RPTs). The move aims to ease compliance for large listed entities while ensuring transparency and shareholder protection.

What is Related Party Transactions (RPTs)?

Related Party Transactions (RPTs) are transactions between a company and parties that have a pre-existing relationship with it, such as promoters, subsidiaries, key managerial personnel (KMP), or close family members of these individuals.

Examples

• Sale/purchase of goods or property between the company and its subsidiary.
• Payment of managerial remuneration to directors.
• Loans or guarantees given to related entities.

Material Related Party Transactions (Material RPTs)

Material RPTs are those transactions between a company and its related parties that cross a specified monetary threshold, making them significant enough to require stricter regulatory scrutiny and mandatory shareholder approval.

Current Rule

• Material RPT:
  • A transaction exceeding ₹1,000 crore or 10% of annual consolidated turnover, whichever is lower, is currently classified as “material” and requires shareholder and audit committee approval.
• Requires shareholder approval if deemed material.

SEBI’s Proposed Turnover-Based Materiality Thresholds:

Company Turnover	Proposed RPT Materiality Threshold
Up to ₹20,000 crore	10% of annual turnover
₹20,001–₹40,000 crore	₹2,000 crore + 5% of amount exceeding ₹20,000 crore
Above ₹40,000 crore	₹3,000 crore + 2.5% of amount exceeding ₹40,000 crore OR ₹5,000 crore (whichever is lower)

Purpose of Regulating Material RPTs

• To safeguard the interests of minority shareholders.
• To ensure corporate governance and accountability in dealings with promoters or related entities.
• To prevent conflict of interest or diversion of funds under the guise of internal arrangements.

BS

3. Irdai Imposes Penalty on Policybazaar for Regulatory Violations

Context:

The Insurance Regulatory and Development Authority of India (Irdai) has imposed a ₹5 crore fine on Policybazaar Insurance Brokers for multiple regulatory violations, marking one of the more serious enforcement actions in the online insurance space.

Key Regulatory Violations

1. Misleading Promotion: Marketed select ULIPs and health plans as “Top Plans” without objective criteria, misleading consumers and implying false IRDAI endorsement.
2. Governance Conflicts: Senior executives held undisclosed roles in other insurance firms, breaching IWA Guidelines on neutrality.
3. Delayed Premium Remittance: Failed to transfer collected premiums to insurers on time, risking policy delays.
4. Outsourcing & Commission Breach: Paid unregulated commissions to third parties without formal agreements, violating IRDAI norms.
5. Policy Mapping & Call Record Lapses: Around 1 lakh telemarketed policies were unmapped; call records were incomplete, breaching compliance rules.

IRDAI Guidelines Violated

1. Biased Promotions
   • IRDAI Web Aggregators Regulations, 2017: Prohibits ranking products as “top” without objective criteria.
2. Governance Conflicts
   • IRDAI Guidelines, 2017: Prior approval required for Key Management Personnel (KMPs) holding directorships in other insurance entities.
3. Premium Remittance Delays
   • Web Aggregators Regulation 10(2): Premiums must be remitted to insurers within stipulated timelines.
4. Outsourcing Violations
   • Outsourcing Guidelines, 2017: Requires written agreements; prohibits unauthorized payouts or commissions.
5. Policy Mapping & Call Recording
   • Web Aggregators Regulation 13(5): All sales calls must be recorded and mapped to authorized personnel.
6. Unauthorized Commissions
   • Commission Regulations, 2023: Caps on commission payments; deviations need IRDAI approval.
7. Corporate Governance Lapses
   • Governance Guidelines, 2020: Mandates disclosure of related party transactions, conflict-of-interest norms.

BS

Agriculture

1. Shifts in India’s Pesticide Market

Context:

India’s pesticide market is undergoing a significant transformation, driven by changing pest profiles, labour shortages, evolving cropping patterns, and environmental concerns. Herbicide use is growing rapidly, signalling a shift from traditional insecticide-centric use to labour-saving, weed-control strategies.

Types of Crop Protection Chemicals

Pesticides, also known as crop protection chemicals, are classified into:

• Insecticides: Target insect pests (e.g., white-backed plant hopper in paddy).
• Fungicides: Control fungal infections (e.g., blast, sheath blight).
• Herbicides: Eliminate or suppress weeds.

While pesticide use in India remained low till the mid-20th century, the Green Revolution catalyzed its expansion. Regulatory bans (e.g., DDT, endosulfan) and rising labour costs have further influenced the market in recent decades.

Composition of India’s Crop Protection Market

• Total Organised Market: ₹24,500 crore
• Insecticides: ₹10,700 crore
• Herbicides: ₹8,200 crore (growing >10% annually)
• Fungicides: ₹5,600 crore
• Global Use: Over 3.7 million tonnes of pesticides were used globally in 2022, double the 1990 levels (FAO).
• Regional Leaders: Asia dominates in production and usage, led by China and India.

Herbicides are the fastest-growing segment due to mechanisation needs and labour substitution.

Growth Drivers for Herbicide Use in India

• Labour Shortage & Cost:
  • Manual weeding takes 8–10 hours/acre.
  • Average daily wage for agricultural labour rose to ₹447.6 in Dec 2024 (Labour Bureau), from ₹326.2 in 2019.
• Erratic Labour Availability: Due to migration and rising opportunity costs.
• Herbicides as Labour Substitutes: Function like mechanised tools (e.g., tractors, harvesters).

Regulatory Framework

• Insecticides Act, 1968: Governs all aspects of pesticide lifecycle.
• Banned Pesticides: India has banned 46 pesticides; others like Paraquat and Glyphosate are under review.
• CIB&RC: Central Insecticide Board & Registration Committee approves and regulates pesticide usage.
• Anupam Verma Committee: Reviewed 66 pesticides still registered in India but banned globally.

Government Initiatives Promoting Sustainable Pesticide Use

• National Mission on Sustainable Agriculture (NMSA): Promotes Integrated Pest Management (IPM).
• Paramparagat Krishi Vikas Yojana (PKVY): Encourages organic and biopesticide-based farming.
• Kisan Drone Scheme (2022): Subsidizes drone-based precision pesticide application.
• Kisan Kavach Protective Kit: Developed by DBT to ensure applicator safety.

Key Concerns

• Environmental & Health Hazards: Overuse leads to water/soil contamination, pest resistance, and health risks.
• Weak Regulatory Oversight: Absence of a robust approval mechanism like the EPA (USA) or EFSA (EU).
• Import Dependence: India relies on MNCs for active ingredients and formulations due to weak domestic R&D.

Way Forward

1. Promote Biopesticides: Accelerate approvals, provide incentives, and strengthen production systems.
2. Strengthen Enforcement: Ensure state-level regulatory compliance and curb spurious pesticide sales.
3. Farmer Training & Awareness: Expand extension outreach on rational, need-based pesticide use.
4. Digital Traceability: Use QR codes for real-time tracking of pesticide origin and authenticity.
5. Boost R&D: Invest in green chemistry, nano-formulations, and IPM innovation.
6. Ban Hazardous Chemicals: Gradually phase out Class I pesticides per FAO-WHO standards.

The Indian Express

2. Ethanol Blending in India

Context:

India has successfully achieved its E20 target 20% ethanol blended with petrol by early 2025, well ahead of its 2025–26 target. This milestone under the Ethanol Blended Petrol (EBP) Programme marks a significant stride towards cleaner fuels and energy self-reliance. However, it has also raised technical, consumer, and infrastructural concerns that merit urgent attention.

What is Ethanol Blending?

Ethanol blending involves mixing ethanol, a biofuel derived from biomass (sugarcane, maize, rice, etc.), with petrol in varying proportions—such as E10 (10%), E20 (20%), or higher blends.

Advantages

• Cuts GHG emissions and urban air pollution.
• Reduces import dependency and saves foreign exchange.
• Supports agro-industries and rural incomes.

India’s Ethanol Blending Journey

• EBP Programme launched: 2003.
• E10 target achieved: 2022.
• E20 achieved: March 2025.
• Next milestone: E30 blending by 2030.

Supporting Policy Framework

• National Policy on Biofuels (2018): Allowed diverse feedstocks, including sugarcane juice, FCI surplus grains, rotten potatoes, etc.
• Price & Tax Incentives:
  • Fixed ethanol prices by OMCs for supply certainty.
  • GST reduction from 18% to 5%.
  • Capital support and interest subvention for ethanol distilleries.
• Infrastructure Push:
  • PM-JI-VAN promotes 2G ethanol from rice straw and agri-residues.
• Global Role:
  • India leads the Global Biofuels Alliance (GBA) to harmonise standards and cooperation globally.

Technical and Environmental Concerns

• Engine Corrosion & Material Degradation:
  • Ethanol is hygroscopic (absorbs water), which increases internal moisture, leading to corrosion of metal parts, degradation of rubber/plastic components, and fuel system clogging due to residue loosening.
• Reduced Fuel Efficiency:
  • Ethanol has lower energy density than petrol. This leads to a mileage drop, raising consumer costs per kilometer without a matching drop in fuel prices.
• Vehicle Compatibility Issues:
  • Most existing vehicles in India are designed for E10. Lack of widespread flex-fuel vehicles or retrofit guidelines makes higher blends (E20+) unsuitable for the majority fleet, especially two-wheelers.
• Cold Start & Engine Performance Problems:
  • Ethanol-rich blends have lower volatility and higher ignition temperatures, causing difficulty in starting vehicles in colder climates, rough idling, and sluggish engine response in older engines.

Systemic Gaps

• Auto Industry (SIAM): Seeks regulatory clarity and incentives for E20+ compatible engines.
• Fuel Retailers: Need upgraded storage, pumps, and pipelines for ethanol-blended fuels.
• Feedstock Concerns:
  • Over-reliance on sugarcane and maize risks food security.
  • Scaling up 2G bioethanol (from crop waste) is vital.

BS

Facts To Remember

1. Shibu Soren, key tribal voice and former Chief Minister of Jharkhand, dies aged 81

Former Jharkhand Chief Minister and Jharkhand Mukti Morcha (JMM) co-founder Shibu Soren popularly known as “Dishom Guru” passed away in Delhi. He was 81.

2. Largest Asian tortoise back in Nagaland community reserve

The critically endangered Asian giant tortoise, the largest in mainland Asia, has been reintroduced into the Zeliang Community Reserve in Nagaland’s Peren.

3. PM’s Pariksha Pe Charcha sets Guinness World Record

Union Ministers Dharmendra Pradhan, Ashwini Vaishnaw, and Jitin Prasada received the Guinness World Record for the latest edition of “Pariksha Pe Charcha”, an annual event led by Prime Minister Narendra Modi.

4. TN, Karnataka teams win freestyle relays

Tamil Nadu and Karnataka emerged the boys’ and girls’ Group-III freestyle relay (4x50m) champions respectively on the opening day of the 41st National sub-junior Aquatic Championships here.

5. Philippines President Begins 5-Day India Visit Amid Strategic Engagements

Philippines President Ferdinand R. Marcos Jr. began his five-day state visit to India on Monday, marking a significant diplomatic and strategic engagement between the two Indo-Pacific nations.

6. Low Empanelment of Hospitals under Ayushman Bharat – PMJAY in 2024–25

The Ministry of Health has released updated data on the number of hospitals empanelled under the Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), India’s flagship health insurance scheme.

7. Less than 15% Youth Skilled under PMKVY Secured Jobs, Reveals Govt Data

Despite sustained efforts under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to address youth unemployment in India, the latest government data indicates that less than 15% of those trained since 2015 have secured job placements. The data was shared by Skill Development Minister Jayant Chaudhary in a written reply to the Lok Sabha.

8. Former J&K Governor Satya Pal Malik Passes Away

Former Jammu and Kashmir Governor Satya Pal Malik has passed away this afternoon at the age of 79 after a prolonged illness. He also served as the Governor of Goa and the Governor of Meghalaya.

9. PM Modi to Inaugurate Kartavya Bhavan on August 6 as Part of Central Vista Project

Prime Minister Narendra Modi will inaugurate Kartavya Bhavan at Kartavya Path in New Delhi tomorrow. Mr Modi will also address a public programme on the occasion. Kartavya Bhavan is part of the broader transformation of the Central Vista. It is the first among several upcoming Common Central Secretariat buildings that aim to streamline administrative processes and enable agile governance.

10. PM Matru Vandana Yojana Registration Drive Extended Till August 15

The Ministry of Women and Child Development has extended the special registration drive for the Pradhan Mantri Matru Vandana Yojana (PMMVY) till the 15th of this month. 

Daily Current Affairs Quiz
6 August, 2025

National Affairs

1. Cloudburst

Context:

The recent tragic cloudburst in Uttarkashi (Uttarakhand), which devastated the village of Dharali and surrounding areas, is a stark reminder of how climate change is intensifying natural disasters in India.

What is a Cloudburst?

A cloudburst is an extremely intense rainfall event over a small area within a short duration. As per the India Meteorological Department (IMD), it is defined as rainfall exceeding 100 mm per hour across an area of 20–30 sq km. However, a 2023 study by IIT Jammu and the National Institute of Hydrology (NIH) redefined this as rainfall of 100–250 mm/hour concentrated in just 1 sq km, making it one of the most hyper-local and destructive meteorological phenomena.

Why Are Himalayan Regions More Vulnerable?

1. Steep Terrain: Hilly slopes accelerate water runoff, triggering landslides and flash floods.
2. Orographic Effect: Moist monsoon winds are forced upwards by mountains, leading to rapid condensation and heavy rainfall.
3. Poor Soil Absorption: Rocky terrains reduce infiltration, increasing surface water accumulation.
4. Fragile Ecosystems: High-altitude settlements (1,000–2,000m) are ecologically sensitive and structurally unprepared for such events.

Scientific Causes and Climate Link

• Moisture Build-Up and Collapse: Towering storm clouds (cumulonimbus) rapidly store moisture due to vertical air currents. A sudden collapse of these currents releases massive rainfall in minutes.
• Climate Change: Warmer air holds more water vapor. For every 1°C temperature rise, the atmosphere retains 7% more moisture, increasing the likelihood of intense short-duration rainfall events.
• Aerosols and Black Carbon: Pollution from forest fires, diesel vehicles, and stubble burning adds cloud condensation nuclei (CCN) to the atmosphere, altering cloud formation and intensifying rainfall episodes.

Impacts of Cloudbursts

• Sudden Flash Floods: Rapid overflow of streams and nullahs, sweeping away people, property, and vehicles.
• Landslides and Mudslides: Water-saturated slopes lose cohesion, causing devastating earth movements.
• Infrastructure Collapse: Roads, bridges, and electricity poles fail under the pressure of debris and water.
• High Casualty Rates: The unpredictable and sudden onset leaves communities with no time to respond.

Challenges in Forecasting Cloudbursts

• Short Duration & Micro-scale: The extremely localized nature makes it nearly impossible to predict using conventional forecasting tools.
• Lack of Dense Monitoring Network: Hilly regions lack sufficient Doppler radar and weather stations.
• Limited Local Alert Systems: Remote villages often receive alerts too late, if at all.
• High Cost of Modern Tech: AI-based early warning systems and high-resolution radars remain underfunded.

IE

2. Moldova Becomes 107th Member of International Solar Alliance (ISA)

Context:

The Republic of Moldova has officially joined the International Solar Alliance (ISA), becoming its 107th member country.

Key Highlights:

• Moldova’s Ambassador to India, Ana Taban, handed it over to P. S. Gangadhar, Joint Secretary (Economic Diplomacy) and Head of Depository, ISA.
• Significance: Moldova’s inclusion is expected to boost global cooperation in solar energy adoption and sustainable development efforts.

About the International Solar Alliance (ISA)

• Founded: Joint initiative of India and France at COP-21 (2015).
• Headquarters: Gurugram, India.
• Objective: Promote affordable, reliable, and sustainable solar energy worldwide, especially in:
• Least Developed Countries (LDCs)
• Small Island Developing States (SIDS)

Key Focus Areas of ISA

1. Analytics & Advocacy:
   • Publishes solar market reports and trends
   • Supports member countries in policy and regulation
2. Capacity Building:
   • Runs STAR-C centres for training and standard-setting
   • Develops local solar ecosystems
3. Programmatic Support:
   • Implements solar projects
   • Aggregates demand and enables funding and risk mitigation

3. Ayurveda Aahara Preparations

Context:

The Food Safety and Standards Authority of India (FSSAI), in collaboration with the Ministry of Ayush, has released a detailed list of food items classified under Ayurveda Aahara. This development aligns traditional Ayurvedic wisdom with modern food safety regulations.

What is Ayurveda Aahara?

• Ayurveda Aahara refers to food products prepared in accordance with Ayurvedic principles emphasizing balance, seasonal alignment, natural ingredients, and therapeutic herbs.
• Regulatory Framework: Governed by the Food Safety and Standards (Ayurveda Aahara) Regulations, 2022.
• Objective: To integrate Ayurvedic dietary wisdom with contemporary nutritional standards, promoting preventive health and sustainable lifestyles.

Significance and Impact

• Bridging Tradition and Regulation: Brings structured clarity to Ayurvedic food products, paving the way for innovation and expansion in the nutraceutical and health food market.
• Consumer Confidence: Aids informed dietary choices for health-conscious individuals seeking natural, preventive health approaches.
• Global Positioning: Strengthens India’s positioning as a source of time-tested traditional wellness practices within a regulatory framework.

TH

4. BrahMos Supersonic Cruise Missile

Context:

Following the operational success of Operation Sindoor, the Indian Navy and Air Force are moving ahead with large-scale acquisition of BrahMos supersonic cruise missiles. The move highlights the missile’s exceptional performance, precision strike capabilities, and deterrence value particularly in the context of cross-border engagements.

About BrahMos Supersonic Cruise Missile:

Joint Development

• A joint venture between India’s DRDO and Russia’s NPOM.
• Named after the Brahmaputra (India) and Moskva (Russia) rivers.

Key Features

• Speed: Supersonic (Mach 2.8–3.0) throughout its trajectory.
• Range: ~290 km (with extended versions under development).
• Launch Platforms: Compatible with land-based launchers, ships, submarines, and aircraft.

What is Supersonic? (Mach 1 to Mach 5)

• Speed faster than sound but less than 5 times the speed of sound.
• Speed Range: Mach 1 to Mach 5 (1,235 km/h to ~6,174 km/h).

What is Hypersonic?

• Speeds greater than Mach 5.
• Speed Range: Above 6,174 km/h

TOI

Banking/Finance

1. Bank of Baroda Unveils bob FxOne

Context:

Bank of Baroda has launched “bob FxOne”, a digital foreign exchange platform, for its corporate and MSME customers.

Key Features

• Real‑time forex and derivative trading: Live rates, instant deal confirmations, downloadable tickets, and a personalized dashboard with alerts
• One-Click Trade (1CT) and Request‑For‑Quote (RFQ) options enable streamlined execution of bookings across cash, tom, spot, forward, bills, and options
• User-friendly, secure, and branchless interface, eliminating manual intervention and reducing dependency on bank visits

What is a Foreign Exchange Platform?

A foreign exchange platform is:

• An online or electronic interface that facilitates currency trading.
• Used to access real-time exchange rates, execute trades, and analyze market trends.
• Also known as a forex trading platform.

Key Functions

• Currency Conversion: Instantly convert one currency to another.
• Trading & Speculation: Allows traders to profit from currency price movements.
• Hedging: Helps businesses or investors protect against currency risk.
• Real-Time Market Access: Live price feeds, analytics, and charting tools.

TET

2. RBI Removes Prior Approval Requirement for Special Rupee Vostro Accounts (SRVAs)

Context:

The Reserve Bank of India has amended the procedure for opening Special Rupee Vostro Accounts (SRVAs), aiming to promote trade settlement in INR and ease compliance for banks.

Key Highlights:

• RBI has eliminated the requirement for prior approval to open SRVAs.
• Authorised Dealer (AD) banks can now open SRVAs for foreign correspondent banks without seeking RBI’s permission.
• This move is part of India’s strategy to promote rupee-based international trade settlements.

About Special Rupee Vostro Accounts (SRVAs)

• SRVAs are INR-denominated accounts held by overseas banks with Indian AD banks.
• These accounts facilitate invoicing, payment, and settlement of exports/imports in Indian Rupees.
• Introduced as part of the RBI’s 2022 framework for international trade settlement in INR.

Significance

• Enhances ease of doing business in cross-border trade.
• Boosts internationalisation of the Indian Rupee.
• Strengthens India’s bilateral trade relationships, especially with nations facing dollar liquidity issues.

BS

3. PFRDA Launches Modernized Website Under ‘PFRDA CONNECT’ Initiative

Context:

The Pension Fund Regulatory and Development Authority (PFRDA) unveiled its revamped and modernized website under the PFRDA CONNECT initiative.

Key Highlights:

• Launched by: Shri S. Ramann, Chairperson, PFRDA
• Objective: Enhance transparency, accessibility, and efficiency in pension sector governance through digital transformation.

Features of the New Website

• Design Features:
  • Fully responsive design with improved navigation and content structure.
  • Centralised access to pension schemes, regulatory updates, and announcements.
  • Incorporates a modern Content Management System (CMS) for streamlined updates.
• Compliance:
  • Adheres to GIGW (Guidelines for Indian Government Websites).
  • Follows WCAG (Web Content Accessibility Guidelines) for global accessibility standards.
• Integration & Functionality:
  • Enhanced search capabilities and system integration.
  • Aligned with other regulatory digital platforms for seamless service delivery.

Significance

• Aligns with Digital India goals and inclusive governance
• Reinforces PFRDA’s commitment to a proactive, tech-driven pension administration model

PIB

4. IDFC FIRST Bank and IndiGo Launch Dual Credit Card with Shared Limit

Context:

IDFC FIRST Bank and IndiGo Airlines have jointly launched the IndiGo IDFC FIRST Dual Credit Card, featuring two cards (Mastercard and RuPay) under one shared credit limit.

Key Highlights:

• Dual Card Format: Two physical cards Mastercard and RuPay issued together with a single credit limit and a single statement.
• Application Options:
  • With credit eligibility (standard)
  • Without credit checks via FD-backed option
• PIN and transaction preferences must be set separately for each card.
• All spends contribute to IndiGo BluChips and milestone benefits.

Significance

• India’s first dual-network credit card combining Mastercard and RuPay
• Integrates fintech innovation with loyalty

Mint

5. Promoting Financial Literacy and Borrower Protection in Rural India: Initiatives by NABARD and RBI

Context:

To foster financial inclusion and literacy among rural populations, including microfinance borrowers, the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (NABARD) have launched several targeted initiatives. These efforts aim to improve digital and financial awareness, ensure borrower protection, and streamline access to credit, especially in underserved areas.

Key Financial Literacy Initiatives

1. Financial & Digital Literacy Camps (NABARD):

• NABARD supports financial literacy camps across rural areas through rural bank branches and Financial Literacy Centres (FLCs).
• Focus areas include:
  • Digital banking
  • Government social security schemes
  • Cyber security
  • Mobile banking awareness

2. Centre for Financial Literacy (CFL) Project (RBI):

• Launched in 2017, CFLs use community-led and participatory methods for financial literacy.
• As of March 2025, 2,421 CFLs have been established, with one CFL serving three blocks on average.

3. Village Level Programmes (VLPs):

• NABARD organizes VLPs with the support of banks and State Rural Livelihood Missions (SRLMs).
• Objectives:
  • Facilitate SHG account openings
  • Strengthen credit linkage
  • Encourage regular loan repayment
  • Boost financial inclusion in villages

Microfinance Sector Reforms and Credit Access

1. Revised Definition of Microfinance Loan (RBI):

• Loans to households with annual income ≤ ₹3 lakh are now classified as microfinance loans.
• Removed:
  • Loan amount caps per cycle
  • Minimum tenure requirements

2. Greater Flexibility in Loan Usage:

• Borrowers can now use microfinance loans for:
  • Health expenses
  • Education
  • Income smoothing
• Earlier restriction of 50% loan usage for income-generating purposes has been lifted.

Borrower Protection Measures

1. Repayment Cap to Prevent Over-Indebtedness:

• Monthly loan repayments are capped at 50% of household income.

2. Recovery Safeguards:

• RBI-mandated ethical recovery guidelines for Regulated Entities (REs).
• REs must have dedicated grievance redressal mechanisms for recovery-related complaints.

3. Interest Rate Regulation and Transparency:

• On March 14, 2022, RBI:
  • Deregulated microfinance interest rates.
  • Mandated board-approved policies to ensure non-usurious lending.
  • Encouraged market-driven competitive rates.

Role of Industry SROs and Credit Information Systems

1. Self-Regulatory Organizations (SROs):

• Sa-Dhan and Microfinance Institutions Network (MFIN) ensure:
  • Regulatory compliance among MFIs and NBFC-MFIs.
  • Policy consultation with RBI.
  • Monitoring of borrower indebtedness and lender caps.

2. Credit Information Reporting:

• Credit Institutions (CIs) are required to submit:
  • Household income data
  • Loan information
• This helps Credit Information Companies (CICs) assess borrower exposure and prevent over-indebtedness by enforcing the 50% repayment ceiling.

TET

Agriculture

1. Farmers’ Library Inaugurated in Ludhiana

Context:

In a significant step to empower farmers with scientific knowledge and improve farm productivity, a Farmers’ Library was inaugurated at Mushkabad FAM Dairy Producer Company Limited in Ludhiana, Punjab. The initiative is part of a NABARD-funded research project aimed at promoting Farmer Producer Organizations (FPOs) in the dairy sector.

Key Highlights:

• Inaugurated by Dr J P S Gill, Vice-Chancellor of Guru Angad Dev Veterinary and Animal Sciences University (GADVASU).
• The library aims to disseminate the latest scientific farming practices, bridging the knowledge gap among farmers.
• Visitors can access farm literature aligned with university recommendations to boost livestock productivity and sustainable farming.

Project Details

• Implemented under the project: “Promotion of FPO on Dairy Farming in Ludhiana”.
• NABARD provides financial and technical support, enhancing market linkages and improving farmers’ economic status.

What is a Farmer Producer Organization (FPO)?

A Farmer Producer Organization (FPO) is a legal entity formed by farmers to collectively engage in agricultural and allied activities, aiming to improve their income, market access, and bargaining power.

Key Features of FPOs

• An FPO is a registered collective of farmers (usually small and marginal) who come together to improve production, processing, and marketing of their agricultural produce.
• FPOs are generally set up under:
  • Companies Act, 2013 as Producer Companies
  • Cooperative Societies Act
  • Societies Registration Act, etc.

Objective

• To enhance farmers’ income by leveraging economies of scale, value addition, and better market access.
• To act as a bridge between farmers and buyers, including processors, exporters, and retailers.

IE

2. TraceX Technologies Launches Agentic AI Tool

Context:

With the European Union’s Deforestation Regulation (EUDR) set to come into effect from December 2025, TraceX Technologies, a Bengaluru-based agrifood and climate tech start-up, has launched an Agentic AI-powered tool to automate compliance processes for exporters.

What is the EU Deforestation Regulation (EUDR)?

• Applies to products such as coffee, cocoa, palm oil, soy, rubber, cattle products, wood, and wood-based items.
• Mandates that all such products exported to the EU must be legally sourced and deforestation-free.

Core Features of TraceX’s Agentic AI Tool

• Automated Supplier Onboarding & KYC
  • Captures supplier credentials, land ownership documents, and verifies plots using AI-based document and email parsing.
• Plot-Level Geolocation & GeoJSON Validation
  • Maps exact farm locations and verifies spatial data (GeoJSON) to ensure plot-level traceability.
• Satellite-Based Risk Assessment
  • Uses global satellite datasets (like Hansen and JRC) to check if land was deforested after the 2020 cut-off date under EUDR.
• AI-Driven Risk Scoring
  • Provides dynamic risk scoring of suppliers and plots and recommends corrective actions before shipment.
• One-Click DDS Generation & TRACES Integration
  • Automates the creation of Due Diligence Statements (DDS) and prepares them in formats compatible with the EU’s TRACES platform.
• Audit-Ready Dashboard
  • Offers a centralized system for accessing all compliance data, including supplier details, risk status, location files, and DDS history.

BL

Facts To Remember

1. Govt. can issue national IDs to citizens: Centre

The Lok Sabha was recently informed that the Citizenship Act, 1955 provides that the Union government should compulsorily register every citizen of India and issue national Identity Cards to them.

2. Rajiv Anand appointed MD and CEO of IndusInd Bank

IndusInd International Holdings Ltd. (IIHL), the holding company of IndusInd Bank, has appointed Rajiv Anand as the Managing Director and CEO of the bank, according to a statement from the company’s Chairman Ashok Hinduja. 

3. Lok Sabha Passes Bill for ST Quota in Goa Assembly

Amid a prolonged protest by Opposition MPs over the Special Intensive Revision (SIR) of electoral rolls in Bihar, the Lok Sabha passes bill for ST Quota in Goa Assembly. The aim is to provide reservations to Scheduled Tribes (STs) in the Goa Legislative Assembly.

4. Doordarshan Aims to Promote Regional Languages and Culturally Rich Programs

Prasar Bharati Chairman, Navneet Kumar Sehgal, said that the endeavour of Doordarshan is to promote regional languages and produce culturally rich family programs. 

5. India-New Zealand hold inaugural defence strategic dialogue in New Delhi to strengthen bilateral cooperation

The inaugural ‘India-New Zealand Defence Strategic Dialogue’ was held in New Delhi to discuss security perspectives and further bolster bilateral cooperation. 

6. UPSC launches new email alert system for institutions on recruitment advertisements

The Union Public Service Commission- UPSC has enabled a new facility for educational and professional institutions to receive direct email alerts about UPSC recruitment advertisements relevant to their domains. 

7. Gajendra Singh Shekhawat inaugurates 64th National exhibition of art, celebrating India’s diverse artistic heritage

Culture and Tourism Minister Gajendra Singh Shekhawat inaugurated the 64^th National Exhibition of Art by the Lalit Kala Akademi in New Delhi.

Daily Current Affairs Quiz
7 August, 2025

National Affairs

1. Carriage of Goods by Sea Bill, 2025

Context:

India has enacted the Carriage of Goods by Sea Bill, 2025, replacing the Carriage of Goods by Sea Act, 1925, a colonial-era legislation. This reform aims to align Indian maritime trade laws with international conventions and boost the ease of doing business in the shipping sector.

Key Features

• Repeal of 1925 Act: Eliminates outdated provisions rooted in colonial law.
• Incorporation of Hague–Visby Rules:
  • Standardizes bills of lading.
  • Defines carrier obligations and liabilities clearly.
• Codified Carrier Responsibilities:
  • Includes liability for loss/damage, exceptions, and time limits for claims.
• Government Empowerment:
  • Centre can adopt emerging international maritime rules via notification.
  • Enables faster alignment with future global standards.
• Parliamentary Oversight:
  • Ensures executive decisions on international conventions are subject to legislative review.
• Trade Facilitation:
  • Supports India’s ambition to become a global maritime logistics hub.

Objectives of the Bill

• Modernisation of Maritime Law: Replaces the 1925 Act with a contemporary legal framework.
• Global Alignment: Adopts Hague–Visby Rules, widely accepted international norms on cargo carriage by sea.
• Ease of Doing Business: Simplifies legal language, reduces ambiguities, and makes India more attractive for maritime trade.
• Future-readiness: Enables India to adopt future international maritime conventions via government notifications.
• Dispute Reduction: Clarifies the roles, responsibilities, and liabilities of carriers, reducing litigations and trade delays.

About Hague–Visby Rules

• A set of international rules that regulate the carriage of goods by sea.
• Originated from the Hague Rules (1924) and revised by the Visby Protocol (1968) and SDR Protocol (1979).
• Formal Title: “International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading.”
• Adopted by many maritime nations to ensure uniformity in carrier liability.

IE

2. Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme

Context:

India has achieved a record-low Green Ammonia price of ₹55.75/kg in the first SECI auction under Mode-2A of the SIGHT Scheme, marking a milestone in India’s clean energy transition.

About SIGHT Scheme

What is it?

A key financial mechanism under the National Green Hydrogen Mission (NGHM) designed to:

• Scale up production and usage of green hydrogen and its derivatives.
• Reduce costs to make green hydrogen competitive with fossil fuels.
• Create domestic demand across sectors like fertilizer, shipping, steel, and refining.

Nodal Ministries

• Ministry of New & Renewable Energy (MNRE) – Lead implementing agency.
• Ministry of Petroleum & Natural Gas (MoPNG) – Supports demand creation and offtake.

Modes of Implementation

Mode	Description
Mode 1	Incentive awarded to lowest incentive seeker (reverse auction model).
Mode 2A	Fixed incentive for Green Ammonia procurement via demand aggregation.
Mode 2B	Fixed incentive for Green Hydrogen procurement via demand aggregation.

Budgetary Outlay

• ₹17,490 crore out of ₹19,744 crore (total NGHM budget) allocated to SIGHT.
• Covers production incentives, infrastructure, and offtake support.

What is Green Ammonia?

• Green Ammonia is produced using Green Hydrogen, generated through electrolysis powered by renewable energy.
• It is crucial for:
  • Fertilizer production
  • Marine fuel (low-carbon shipping)
  • Clean energy storage and chemicals manufacturing

TET

3. Merchant Shipping Bill, 2024

Context:

The Lok Sabha passed the Merchant Shipping Bill, 2024 on August 6, 2025, amidst ongoing opposition protests. The Bill is a major step toward modernizing India’s maritime legislation and aligns with the government’s broader agenda to strengthen the blue economy and maritime governance.

Why the Bill Matters?

• Repeals the outdated Merchant Shipping Act, 1958, reducing complexity—from 561 sections to 16 parts and 325 clauses.
• Modernizes maritime law to align with global conventions (MARPOL, Wreck Removal, ILO–MLC, STCW).
• Enables India to emerge as a credible and competitive maritime hub.

Key Provisions:

1. Expanded Ownership Criteria

• Allows NRIs, OCIs, body corporates, and joint ventures to own Indian-flagged vessels.
• Permits bareboat charter cum demise (BBCD) vessels to be registered before full ownership transfer.
• Helps increase Indian tonnage, cut foreign outflows, and grow the domestic fleet.

2. Detaining Stateless Vessels

• Government empowered to seize or detain vessels deemed to be without nationality within Indian waters.

3. Marine Casualty Inquiry Mechanism

• Framework for investigation of marine incidents, including pollution, ship wrecks, and emergencies.
• Enables enforcement of IMO conventions for environmental protection.

4. Seafarer Welfare & Training

• Introduces statutory obligations aligned with the Maritime Labour Convention (MLC, 2006).
• Oversees health, repatriation, skill training, and accountability of Recruitment & Placement Agencies (RPS).
• Aligns ship crew training with STCW Convention norms, boosting employability.

5. Safety, Salvage & Environmental Protection

• Adopts provisions from Nairobi Wreck Removal (2007), Salvage Convention (1989), and Bunker Oil Convention.
• Grants statutory powers for pollution control, inspection, wreck removal, and effective emergency response—critical for India’s 95% trade reliance on shipping.

ET

4. Biochar

Context:

As India advances its commitment toward net-zero emissions by 2070, scalable and cost-effective carbon removal technologies are essential. Among these, biochar—a charcoal-like substance produced from biomass—is emerging as a high-potential tool for carbon sequestration, soil health enhancement, and waste management.

What is Biochar?

Biochar is produced through pyrolysis, a process that heats organic material (like crop residues, forest waste, or manure) in the absence of oxygen. Unlike combustion, pyrolysis preserves the carbon content in a stable form that can remain in soil for centuries.

Benefits of Biochar in the Indian Context

1. Carbon Sequestration

• Biochar can store carbon for hundreds to thousands of years.
• According to the IPCC, biochar has the potential to sequester up to 2.6 gigatonnes of CO₂ annually globally.
• In India, with abundant agricultural waste, the technical potential could reach 100–150 Mt CO₂ per year by 2050.

2. Waste Management Solution

• India generates over 500 million tonnes of crop residues annually.
• Biochar offers an alternative to stubble burning, particularly in Punjab and Haryana, reducing air pollution and black carbon emissions.

3. Soil Health and Productivity

• Enhances soil fertility, water retention, and microbial activity.
• Particularly useful in degraded or arid soils found across central and peninsular India.
• Reduces the need for chemical fertilizers, thus supporting sustainable agriculture.

4. Livelihood Opportunities

• Rural entrepreneurs, farmers, and SHGs can establish decentralized biochar units.
• Encourages green jobs and circular economy practices.
• Supports India’s Startup India and Atmanirbhar Bharat missions.

Current Gaps:

• No national policy framework for biochar in carbon markets or agriculture.
• Lack of standardized certification and verification mechanisms for carbon credits.
• Low awareness among farmers and limited R&D support.

Emerging Opportunities:

• Voluntary carbon markets increasingly recognize biochar as a durable carbon removal solution.
• India can monetize biochar projects under Article 6 of the Paris Agreement through bilateral or international cooperation.
• Government initiatives like PM-PRANAM, National Mission on Sustainable Agriculture, and GOBARdhan can integrate biochar incentives.

International Examples for India to Learn From

• Australia and the U.S. have developed strong biochar protocols under voluntary carbon standards like Verra and Puro.Earth.
• Kenya and Ghana use biochar for both carbon credits and soil restoration, especially in degraded lands.

TH

Banking/Finance

1. RBI Holds Repo Rate at 5.5%

Context:

Despite speculation of a 25 bps rate cut, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) opted for a status quo, unanimously holding the policy repo rate at 5.5%. The decision was guided by inflation risks, global uncertainty, and the need for forward-looking monetary policy.

Why RBI Held the Repo Rate?

1. Global Trade Uncertainty
   • New 25% US tariffs on Indian exports created instability; RBI chose caution to safeguard external sector.
2. Real Estate Weakness
   • Housing sales fell 20% YoY in Q2 2025; buyer sentiment remains weak amid uncertainty.
3. Low Inflation
   • Inflation dropped to 2.1% in June 2025, but RBI avoided further cuts to prevent demand overheating.
4. Past Rate Cuts Still Working
   • 100 bps cut since Feb 2025 is still being transmitted; RBI is allowing time for full impact.

Impact on the Indian Economy

• Short-Term Effects
  • Loan EMIs remain unchanged for home, auto, and personal loans.
  • Deposit rates stay attractive, benefiting savers, especially seniors.
• Consumption & Investment
  • Consumer demand may remain muted due to still-high borrowing costs.
  • Private investment could slow in interest-sensitive sectors like real estate and manufacturing.
• Inflation
  • A steady rate supports ongoing disinflation and avoids premature demand-driven price spikes.
• Financial Markets
  • Bond yields remain stable; the move signals RBI’s policy caution.
  • Equity markets may stay range-bound unless clear cues on future rate cuts emerge.

What is Repo Rate and Reverse Repo Rate?

Repo Rate

• The Repo Rate (short for Repurchase Rate) is the rate at which RBI lends money to commercial banks against government securities.
• It is the main policy tool for controlling liquidity, inflation, and growth.

Current Repo Rate (as of August 2025): 5.5%

Reverse Repo Rate

• The Reverse Repo Rate is the rate at which RBI borrows money from commercial banks by offering them government securities.
• It is used to absorb excess liquidity from the banking system.

Current Reverse Repo Rate: 3.35%

What Happens When RBI Changes Repo/Reverse Repo Rates?

When RBI Cuts Repo Rate:

• Cheaper loans: Banks borrow at lower cost → reduce lending rates → boost consumption and investment.
• Lower EMIs: Home, auto, personal loan EMIs fall → consumer spending rises.
• Boosts growth: Encourages borrowing and capital expenditure.
• May raise inflation if done during high demand or supply constraints.

When RBI Raises Repo Rate:

• Costlier loans: Banks pass on higher borrowing costs → lending rates rise.
• Tames inflation: Reduces demand in the economy by discouraging excessive borrowing.
• Supports rupee: Higher rates attract foreign capital → stabilizes currency.
• May slow growth if borrowing becomes too expensive.

BS & ET

2. RBI Panel Recommends Retaining WACR as Operating Target for Monetary Policy

Context:

Amid global uncertainties and market volatility, the Reserve Bank of India’s internal working group has reaffirmed the Weighted Average Call Rate (WACR) as the most suitable operational target for monetary policy, citing its alignment with policy stance and regulatory control.

Key Recommendations of the RBI Working Group:

1. Retain WACR as the Operating Target

• WACR (Weighted Average Call Rate):
  • The average interest rate at which banks borrow money from each other overnight in the unsecured market.
• Why Retain?
  • It accurately reflects the RBI’s liquidity stance and transmits policy changes effectively as it includes credit and counterparty risk, unlike collateralized instruments.

2. Discontinue 14-Day VRR/VRRR as Main Liquidity Operation

• VRR/VRRR (Variable Rate Repo/Reverse Repo):
  • Auctions where the interest rate is determined by market bids; used to inject (repo) or absorb (reverse repo) liquidity.

3. Use 7-Day or Shorter-Tenor Operations for Fine-Tuning

• Tenor:
  • The duration or term of a financial contract or instrument.
• Why Shorter Tenors?
  • Operations of up to 7 days offer greater flexibility to manage day-to-day liquidity pressures efficiently.

4. No New Tools Required

• FX Swap Auctions:
  • RBI buys or sells foreign currency while agreeing to reverse the transaction later to adjust rupee liquidity.

5. Current Instruments Are Adequate:

• Open Market Operations (OMOs):
  • RBI buys/sells government securities to manage money supply.
• Long-term VRR/VRRR:
  • Used for durable liquidity adjustments with longer tenors (e.g., 1 month, 3 months).

BS

3. RBI Introduces SIP Facility for Treasury Bills via Retail Direct Platform

Context:

The Reserve Bank of India (RBI) has launched a Systematic Investment Plan (SIP) facility for Treasury Bills (T-bills) under its Retail Direct scheme, marking a major expansion in direct access to government securities for retail investors.

Key Highlights:

• New Auto-Bidding Functionality:
  • Retail investors can now automatically place bids in primary T-bill auctions.
  • Facility covers both investment and reinvestment, enabling SIP-like investment planning in short-term government instruments.
• Retail Direct Portal:
  • Launched in November 2021.
  • Allows retail participation in:
    • Primary auctions of G-Secs, T-bills
    • Secondary market trading of government securities.
  • Investors can open a Retail Direct Gilt (RDG) account directly with the RBI.

What Is a SIP in T-bills?

A Systematic Investment Plan (SIP) allows retail investors to invest fixed amounts at regular intervals (e.g., weekly, monthly) into Treasury Bills, just like SIPs in mutual funds.

What Are Treasury Bills (T-bills)?

• Short-term Government Securities with maturities of 91, 182, or 364 days.
• Issued at a discount and redeemed at face value, offering risk-free returns.
• Backed by the Government of India.

Key Features of SIP in T-bills:

• Available via RBI Retail Direct platform.
• Allows automatic periodic investment into T-bills.
• Ideal for conservative investors, including senior citizens and risk-averse savers.
• Offers liquidity, capital safety, and returns better than bank savings accounts.

Impact on Financial Markets:

• Boosts Retail Participation in sovereign debt market.
• Encourages financial literacy and discipline in retail investing.
• Supports market depth and broadens the investor base for government securities.

Mint

4. RBI Revises Co-Lending Framework to Enhance Transparency and Risk Sharing

Context:

The Reserve Bank of India (RBI) issued revised guidelines to strengthen the co-lending framework between banks and non-bank financial companies (NBFCs). The new rules mandate that all regulated entities (REs) involved in co-lending arrangements (CLAs) must retain at least 10% of each individual loan on their own books.

Objectives

• Strengthen the co-lending partnership framework between banks and non-bank lenders.
• Improve risk alignment, ensure uniform asset classification, and protect borrower interests.
• Expand co-lending applicability beyond priority sector lending (PSL) to non-priority sector loans.

Key Features of the Revised Co-Lending Norms:

1. Minimum Loan Retention Requirement:

• All regulated entities (REs) must retain at least 10% of each loan on their own books.
• Promotes risk participation and skin in the game for both partners.

2. Default Loss Guarantee (DLG) Provision:

• Originating lender may offer a first-loss guarantee up to 5% of the outstanding loan amount.
• Aligns with existing FLDG norms under digital lending.

3. Uniform Asset Classification:

• If one partner classifies a loan as an SMA (Special Mention Account) or NPA, the same must be adopted by the co-lender for their portion.
• A Special Mention Account (SMA) is a classification used by banks to identify potentially stressed loan accounts before they officially become Non-Performing Assets (NPAs).

4. Credit Policy Alignment:

• All REs must explicitly incorporate co-lending provisions in their internal credit policies.

5. Mandatory Disclosures in Loan Agreement:

• Loan agreements must clearly define roles of each partner (e.g., sourcing, servicing).
• Must mention the single point of contact for the borrower.

6. Blended Interest Rate Mechanism:

• Borrowers will be charged a blended rate, calculated based on the weighted average of each lender’s internal rate in proportion to their contribution.

7. Annual Percentage Rate (APR) Transparency:

• All additional fees or charges beyond the blended rate must be factored into the APR and disclosed.

8. Escrow-Based Transaction Handling:

• All loan disbursements and repayments must flow through an escrow account maintained with a bank.
• An Escrow Account is a temporary, third-party account where funds are held safely until all conditions of a transaction are fulfilled by the involved parties.
• Ensures real-time settlement, audit trail, and greater transparency.

9. Timely Loan Recognition:

• Loan portions must be reflected on each partner’s books within 15 days of origination.

10. Expanded Applicability:

• Framework now covers:
  • Non-priority sector lending
  • Co-lending between any regulated entities (not just bank-NBFC partnerships)

ET

5. RBI Unveils Three Consumer-Focused Schemes to Boost Financial Inclusion

Context:

In a major push towards inclusive financial growth, Reserve Bank of India Governor Sanjay Malhotra announced three key consumer-centric initiatives following the August 2025 MPC meeting. These schemes target ease of access, simplified procedures, and broader retail participation, especially benefiting those at the bottom of the financial pyramid.

1. Doorstep Re-KYC for Jan Dhan Account Holders

Objective: To simplify KYC compliance for financially underserved sections.

• Method: Banks will organize Re-KYC camps at the Panchayat level.
• Additional Services:
  • Opening of new bank accounts.
  • Enrolment in micro-insurance and pension schemes.
  • Redressal of customer grievances.
• Significance: Supports 10-year milestone of Pradhan Mantri Jan Dhan Yojana (PMJDY) and promotes last-mile connectivity in banking.

2. Simplified Claims Process for Deceased Customers

Objective: To relieve families of procedural burdens after the death of a bank account holder.

• Key Features:
  • Standardized and streamlined process across all banks.
  • Uniform timelines and documentation requirements.
  • Applies to both account funds and locker contents.
• Impact:
  • Reduces legal and administrative hassles.
  • Offers faster and fairer access to rightful claimants.

3. Systematic Investment Plans (SIPs) in Government Securities via Retail Direct

Objective: To promote retail investor participation in sovereign debt markets.

• New Feature: Enables SIP functionality for Treasury Bills (T-Bills).
• Platform: RBI’s Retail Direct portal, launched in 2021.
• Benefits:
  • Encourages automated, disciplined investing.
  • Makes short-term G-Sec instruments accessible to small investors.
• Outcome Expected: Enhanced financial literacy, greater depth in the G-Sec market, and improved household savings discipline.

Why It Matters?

These reforms underline the RBI’s commitment to:

• Financial inclusion and consumer empowerment.
• Streamlining legacy banking processes.
• Democratizing access to investment instruments.

BS & Mint

6. Axis Bank Launches ‘Lock FD’ Feature

Context:

Axis Bank has launched a ‘Lock FD’ feature for safeguarding customers’ Fixed Deposits (FDs) from rising digital frauds by allowing them to restrict FD closures through digital means.

Objective

To enhance the security of fixed deposits (FDs) by restricting premature closure through digital platforms, thereby protecting customers from online fraud.

What are Fixed Deposits (FDs)?

A Fixed Deposit (FD) is a savings and investment instrument offered by banks and NBFCs where you deposit a lump sum for a fixed tenure at a predetermined interest rate. It’s one of the most popular low-risk investment options in India.

Key Features of ‘Lock FD’

• Security Layer: Once the ‘Lock FD’ option is enabled, FDs cannot be prematurely closed via internet or mobile banking.
• Branch-only Closure: Closure of such locked FDs requires physical branch visit, ensuring identity verification.

BL

7. Tata AIA Launches ‘Shubh Shakti’

Context:

On August 6, 2025, Tata AIA Life Insurance launched “Shubh Shakti”, a term insurance plan exclusively designed for women. The initiative targets rising female workforce participation and the persistent gender gap in financial planning and insurance coverage in India.

Read more>>

8. Gro Digital Platforms and IDFC FIRST Bank Partner to Launch FASTag Services for Fleet Operators

Context:

Gro Digital Platforms, a logistics services platform jointly promoted by Ashok Leyland and Hinduja Leyland Finance, has signed a Memorandum of Understanding (MoU) with IDFC FIRST Bank to launch FASTag services for fleet operators across India.

FASTag Services

FASTag is an electronic toll collection (ETC) system in India, operated by the National Payments Corporation of India (NPCI) under the National Electronic Toll Collection (NETC) program, mandated by the Ministry of Road Transport and Highways (MoRTH). It uses Radio Frequency Identification (RFID) technology for automatic toll deduction without stopping at toll plazas.

Read more>>

Agriculture

1. Punjab: First State to Upgrade Cooperative Banks to Finacle 10

Context:

Punjab has become the first state in India to complete the upgrade of its cooperative banks’ Core Banking Solution (CBS) from Finacle 7 to Finacle 10, marking a major leap in digital transformation for the rural banking sector.

Key Highlights:

• Banks Upgraded:
  • SAS Nagar Central Cooperative Bank
  • Ropar Central Cooperative Bank
• Under Aegis of: NABARD (National Bank for Agriculture and Rural Development)
• Significance of Upgrade:
  • Faster, more secure, and customer-friendly banking services at grassroots level.
  • Enhances transparency, operational efficiency, and security.
  • Strengthens rural banking infrastructure to better serve farmers, self-help groups, and rural entrepreneurs.

What is Finacle?

Finacle is a core banking solution developed by Infosys used by banks for digital banking operations, including account management, deposits, loans, payments, and customer relationship management.

About Finacle 7

• Era: Older version (legacy system), widely used in early 2000s–2010s.
• Architecture: Primarily client-server based, less modular.
• Interface: Text-based UI, required bank staff to remember transaction codes.
• Features: Basic core banking functionalities like savings accounts, deposits, loans, and fund transfers.

About Finacle 10

• Developed by Infosys, Finacle is a Core Banking Solution (CBS) widely used by banks worldwide.
• Finacle 10 offers:
  • Cloud-ready architecture for scalability.
  • Advanced cybersecurity features.
  • AI-powered analytics for customer service.
  • Faster transaction processing compared to earlier versions.
  • Support for digital channels like mobile & internet banking seamlessly.

Why This Matters for Cooperative Banks

• Cooperative banks operate deeply in rural and semi-urban areas, often serving as the primary banking touchpoint for millions.
• Upgrading to Finacle 10 enables them to:
  • Provide real-time transactions and digital services.
  • Integrate UPI, AEPS, and other payment systems.
  • Meet RBI compliance more efficiently.
  • Offer personalised financial products based on customer data.

NABARD

Facts To Remember

1. PM Modi inaugurates Kartavya Bhavan in Delhi

The Prime Minister inaugurated Kartavya Bhavan at Kartavya Path in the National Capital. This development is part of the ongoing Central Vista Redevelopment Project. 

2. IRCTC Receives RBI Nod to Operate as Payment Aggregator

On 4 August 2025, the Reserve Bank of India (RBI) granted in-principle authorization to IRCTC Payments Limited—a wholly-owned subsidiary—to operate as an online payment aggregator (PA) under the Payment and Settlement Systems Act, 2007.

3. Donald Trump doubles India tariff to 50% over Russian oil purchase

US President Donald Trump on Wednesday signed an executive order doubling India tariff to 50 per cent, announcing an additional 25 per cent duties over Russian oil purchase, according to the White House website.

Daily Current Affairs Quiz
8 & 9 August, 2025

National Affairs

1. India Releases Joint Doctrines for Cyberspace and Amphibious Operations

Context:

The Chief of Defence Staff (CDS) has declassified and released India’s Joint Doctrines for Cyberspace Operations and Amphibious Operations to enhance interoperability, strengthen national defence strategy, and guide integrated multi-domain warfare. These doctrines outline operational principles, strategic objectives, and coordination mechanisms for the armed forces in two critical domains.

About Cyberspace

• A global domain of interconnected information systems, networks, and data infrastructures (internet, intranets, satellites, control systems).
• Characteristics:
  • Borderless Domain – Operates beyond physical boundaries.
  • Dual-use Nature – Serves both civilian and military needs.
  • Real-time Impact – Actions can have immediate global effects.
  • Anonymity Challenges – Attribution of attacks is difficult.
  • Constantly Evolving Threats – Adapts with technology.

Components of Cyberspace Operations

1. Defensive Cyber Operations: Protects networks from hacking, malware, and breaches.
2. Offensive Cyber Operations: Disrupts enemy systems and critical infrastructure.
3. Cyber Intelligence & Reconnaissance: Analyses threat data and vulnerabilities.
4. Cyber Support Operations: Provides tools for land, air, sea, and space missions.
5. Resilience & Recovery Systems: Ensures continuity via backups and redundancies.

About Amphibious Operations

• Coordinated military actions from sea to shore using naval, air, and land forces.
• Uses: Warfare, humanitarian assistance, disaster relief (HADR), force projection.
• Features:
  • Tri-service integration.
  • Rapid mobilisation from sea to shore.
  • Flexible mission profiles (combat to HADR).
  • Strategic reach over islands and coasts.
  • Maritime–land operational linkage.

Significance of the Doctrines

• National Security: Safeguards critical infrastructure from cyber threats.
• Force Multiplier: Integrates cyber capabilities with conventional warfare.
• Maritime Superiority: Strengthens littoral zone dominance.
• Jointness: Enhances Army–Navy–Air Force coordination.
• Hybrid Warfare Preparedness: Counters combined cyber, sea, and land threats.

PIB

2. Kartavya Bhavan-03 under Central Vista Redevelopment

Context:

Prime Minister inaugurated Kartavya Bhavan-03, the first of ten planned Common Central Secretariat (CCS) buildings under the Central Vista redevelopment project in New Delhi. This marks a major step towards modernising government infrastructure, enhancing administrative efficiency, and integrating green and digital governance systems.

About Kartavya Bhavan-03

• Type: Common Central Secretariat building.
• Purpose: Consolidates offices of over 50 Union ministries (spread across Delhi) into centralised, modern buildings.
• Objective:
  • Improve administrative efficiency.
  • Reduce rental and maintenance costs.
  • Integrate sustainable infrastructure and digital work systems.
• Location: New Delhi.

BS

3. Election Commission of India (ECI)

Context:

The Opposition party has accused the Election Commission of India (ECI) of large-scale voter list manipulation in Karnataka, Maharashtra, and other states, alleging bias and “vote theft” in favour of the ruling party.

About the Election Commission of India (ECI)

The Election Commission of India (ECI) is an autonomous constitutional authority responsible for conducting and regulating elections to the Lok Sabha, Rajya Sabha, State Legislative Assemblies, and the offices of the President and Vice President in India. It was established on 25 January 1950 (celebrated as National Voters’ Day), with its headquarters in New Delhi.

It does not conduct elections to Panchayats and Municipalities, as these fall under the jurisdiction of the State Election Commissions.

Constitutional Provisions (Part XV: Articles 324–329)

• Article 324 – Superintendence, direction, and control of elections vested in the Election Commission.
• Article 325 – No discrimination in electoral rolls on grounds of religion, race, caste, or sex.
• Article 326 – Elections based on adult suffrage (18 years and above).
• Article 327 – Parliament’s power to legislate on elections.
• Article 328 – State Legislature’s power to legislate on elections.
• Article 329 – Bar on judicial interference in electoral matters.

Structure of ECI

• Initially a single-member body, but became a multi-member body after the Election Commissioner Amendment Act, 1989.
• Presently consists of:
  • Chief Election Commissioner (CEC)
  • Two Election Commissioners (ECs)
• At the state level, assisted by the Chief Electoral Officer.

Appointment & Tenure

• Appointed by the President of India under the CEC and Other ECs (Appointment, Conditions of Service and Term of Office) Act, 2023.
• Tenure: 6 years or up to 65 years of age, whichever is earlier.
• Salary and service conditions are equivalent to a Supreme Court Judge.

Removal

• CEC: Can only be removed in the same manner as a Supreme Court judge (by Parliament).
• ECs: Can be removed on the recommendation of the CEC.
• All can resign before the expiry of their term.

Limitations

• No constitutional prescription of qualifications (legal, educational, administrative, or judicial).
• No specific term fixed in the Constitution.
• Retiring commissioners are not barred from future government appointments.

5. Pradhan Mantri Ujjwala Yojana (PMUY)

Context:

Government approved continuation of ₹300 per LPG cylinder subsidy for PMUY beneficiaries in FY 2025–26.

About PMUY

• Type: Flagship social welfare scheme for deposit-free LPG connections.
• Launch: May 2016, Ballia, Uttar Pradesh.
• Nodal Ministry: Ministry of Petroleum & Natural Gas (MoPNG).
• Goal: Replace hazardous traditional cooking fuels with clean LPG for health, environment, and women empowerment.

Key Features

1. Deposit-Free LPG Connection – No initial security deposit.
2. Financial Support for Stove Purchase – Ensures ready-to-use connections.
3. ₹300 Subsidy per 14.2 kg Cylinder – Proportional for 5 kg cylinders, max 9 refills/year.
4. Direct Benefit Transfer (DBT) – Subsidy directly credited to beneficiary bank accounts.
5. Swachh Indhan Behtar Jeevan – Clean fuel for women’s health, reduced indoor air pollution, and sustainable cooking.

Objectives

• Universal access to clean cooking fuel.
• Reduce indoor air pollution & related health hazards.
• Empower rural women by reducing drudgery.
• Promote environmental conservation (reduce deforestation & carbon emissions).

Eligibility

• Adult women from BPL households.
• Identified via SECC 2011 data.
• PMUY 2.0: Includes migrant families without address proof.

TH

Banking/Finance

1. AU Small Finance Bank Gets RBI Nod to Become Universal Bank

Context:

On 8 August 2025, the Reserve Bank of India (RBI) granted in-principle approval to AU Small Finance Bank (AU SFB) to transition into a universal bank. AU becomes the first SFB to receive such approval and the first universal bank approval in over 11 years. It currently commands about 40% market share among SFBs.

Eligibility Criteria for SFB to Transition into a Universal Bank

Criterion	Requirement
Scheduled Status	Must have been in the RBI’s Scheduled Banks list for at least 5 years
Stock Listing	Shares must be listed on a recognised stock exchange
Net Worth	Minimum net worth of ₹1,000 crore
Financial Health – Profitability	Net profits in each of the last 2 Financial Years (FYs)
Financial Health – Asset Quality	G-NPA ≤ 3% and N-NPA ≤ 1% over the last 2 FYs
Promoter Requirements	No addition or change in promoters during the transition period
Portfolio Preference	Preference given to SFBs with diversified loan portfolios

About Small Finance Banks (SFBs)

Parameter	Details
Genesis	Announced in Union Budget 2014–15
Objective	Promote financial inclusion by serving small businesses, marginal farmers, micro industries, and unorganised sector entities
Registration	Public limited company under Companies Act, 2013
Licensing	Licensed & governed under Banking Regulation Act, 1949
Capital Requirement	Minimum paid-up voting equity capital of ₹200 crore (except in certain cases)
Eligible Promoters	Resident individuals/professionals with ≥10 years experience in banking & finance

Difference Between Small Finance Banks and Universal Banks

Parameter	Small Finance Banks (SFBs)	Universal Banks
Primary Objective	Financial inclusion by providing credit to unserved/underserved segments like small businesses, farmers, low-income households	Provide a wide range of banking services to all segments of the economy
Customer Focus	Primarily rural and semi-urban customers, small borrowers	Both retail and corporate clients
Product Range	Savings accounts, fixed deposits, small business loans, microfinance	All banking products including corporate loans, international banking, investment banking
Priority Sector Lending	75% of net loans	40% of net loans
Regulatory Capital	Minimum capital requirement: ₹200 crore	Minimum capital requirement: ₹1,000 crore
Branch Expansion	At least 25% branches in unbanked rural areas	No such mandatory rural branch requirement
Scope of Operations	Restricted geographical and lending scope	Full-scale domestic and international operations

BS

2. IDFC FIRST Bank Launches RemitFIRST2India Digital Remittance Platform

Context:

IDFC FIRST Bank has launched RemitFIRST2India, a next-generation digital remittance platform enabling Non-Resident Indians (NRIs) to send money to India quickly, securely, and at zero transfer fees. Developed in partnership with SingX, the platform aims to provide a transparent, compliant, and customer-friendly cross-border payment experience.

About RemitFIRST2India

• Purpose: Simplify and speed up NRI remittances to India with competitive forex rates and full transparency.
• Availability:
  • For IDFC FIRST Bank NRI customers – direct transfer via Mobile Banking App without extra registration.
  • For non-customers – quick, paperless onboarding via a dedicated web portal.
• Current Coverage: Transfers from Singapore and Hong Kong; expansion planned to more countries.
• Partnership: SingX (licensed by Monetary Authority of Singapore) for regulatory compliance and operational efficiency.

About IDFC FIRST Bank

• Type: Private sector universal bank in India.
• Branch Network: 1,016 branches; digital-first approach with highly rated mobile app.
• Core Banking Principles: Ethical banking, customer-friendly products, financial inclusion, ESG focus, and transparent zero-fee services.

BS

3. IFC Commits $150M to H-DREAM Fund for Green Affordable Housing

Context:

The International Finance Corporation (IFC), a member of the World Bank Group, has committed USD 150 million to HDFC Capital Affordable Real Estate Fund – 3 (H-CARE 3). The investment aims to boost the supply of green-certified affordable housing in India and advance climate-friendly construction practices.

Key Highlights:

• Investment Details: IFC will act as an anchor investor with a USD 150 million commitment to H-CARE 3.
• Fund Objective: Promote affordable, green-certified housing projects in India, supporting low- and middle-income homebuyers.
• Environmental Impact: Encourages sustainable construction and resource efficiency, aligning with India’s climate goals.
• Economic Impact: Supports real estate developers with long-term funding for environmentally responsible affordable housing.
• Partnership: This is IFC’s third investment with HDFC Capital’s H-CARE platform, reinforcing a long-standing collaboration.

About IFC

• A member of the World Bank Group.
• Focuses on private sector development in emerging markets through investments, advisory, and asset management services.

About H-CARE

• Managed by HDFC Capital Advisors Ltd.
• Focuses on financing affordable and mid-income housing projects in India.

ET

4. FSSAI and Bank of Baroda Collaborate to Enhance Digital Payments

Context:

The Food Safety and Standards Authority of India (FSSAI) has partnered with Bank of Baroda to promote digital payment adoption in the food business sector. The initiative aims to improve financial transparency, reduce cash-based transactions, and encourage small food businesses to transition to secure, traceable payment methods.

Key Highlights:

• Partnership Objective: To integrate digital payment solutions for food business operators (FBOs) across India.
• Target Audience: Street vendors, small eateries, and micro food enterprises.
• Services Offered:
  • QR code-based payment systems.
  • Training and awareness campaigns for digital literacy.
  • Access to simplified banking solutions.
• Implementation Plan: Nationwide roll-out through FSSAI’s regional offices and Bank of Baroda’s branch network.
• Expected Benefits: Enhanced financial inclusion, transparency in transactions, and faster payment processing for small vendors.

ET

5. DSP Mutual Fund Launches India’s First Flexi-Cap Index Fund

Context:

DSP Mutual Fund has introduced the DSP Nifty500 Flexicap Quality 30 Index Fund, marking it as India’s first-ever flexi-cap index fund. The fund is designed to offer a low-cost, rules-based investment strategy that adapts dynamically to market conditions.

Flexi-Cap Index Fund

A Flexi-Cap Index Fund is a type of equity mutual fund that invests across large-cap, mid-cap, and small-cap stocks, offering diversification and flexibility. Unlike pure large-cap or small-cap funds, its allocation changes dynamically based on market conditions and index composition.

Key Features:

• Quality-Only Stock Selection: The fund tracks the Nifty500 Flexicap Quality 30 Index, comprising 30 fundamentally strong companies 10 each from large-cap, mid-cap, and small-cap segments, all equally weighted within each category.
• Dynamic Allocation: Fund manager can shift portfolio weightage between large, mid, and small caps depending on valuation and market trends.
• Index-Based: Tracks a specific benchmark index (e.g., Nifty 500, Nifty Flexi Cap Index) passively, ensuring low costs compared to actively managed flexi-cap funds.
• Risk-Return Profile: Balanced risk due to diversification; can capture growth opportunities in smaller companies while maintaining stability from large-cap exposure.
• SEBI Regulation: Categorised under “Flexi Cap Fund” with the mandate to invest at least 65% in equities across all caps.

ET

6. Kotak Mahindra Bank Launches ‘Solitaire’ Programme

Context:

Kotak Mahindra Bank has introduced ‘Solitaire’, an exclusive, invitation-only programme designed for affluent customers, offering premium banking privileges and personalised services.

Eligibility

• Salaried individuals: Minimum relationship value of ₹75 lakh.
• Self-employed individuals: Minimum relationship value of ₹1 crore.

Key Benefits

• Pre-approved credit lines: Up to ₹8 crore across home loans, personal loans, and credit cards.
• Solitaire Credit Card perks:
  • Zero annual fees
  • Unlimited lounge access
  • Zero forex markup
  • Access to advanced investment tools and top-tier personalised banking services.

About Kotak Mahindra Bank:

• Founded: 2003
• Headquarters: Mumbai, Maharashtra, India
• Managing Director & CEO: Ashok Vaswani
• Tagline: Let’s Make Money Simple
• Merger: ING Vysya Bank merged with Kotak Mahindra Bank in 2015.

Agriculture

1. AI and Satellite Intelligence Transforming Indian Agriculture

Context:

India’s agriculture sector, employing ~150 million farmers and contributing 18% to GDP, faces climate change, soil degradation, and pest attack challenges. Traditional farming methods are increasingly inadequate, pushing the need for technology-driven, proactive solutions.

Key Challenges

• Climate Volatility: Irregular monsoons affect ~70% of farmland.
• Delayed Information: Crop stress, pests, and nutrient gaps often detected too late.
• Debt Cycle: Losses push farmers into repeated borrowing.
• Declining Soil Health: Excessive and inefficient input use.

Tech-Based Solutions

Artificial Intelligence (AI) + Satellite Intelligence:

• Soil Analysis: Done in hours instead of weeks.
• Hyperlocal Advisories: Based on soil moisture, weather history, and crop growth models.
• Weather & Pest Prediction: Advance alerts for rainfall, heat waves, and infestations.
• Yield Gains: AI-driven advisories have boosted yields by 15–20%.
• Input Efficiency: Fertiliser use reduced by up to 30% without affecting yield.

Example:

• Telangana chilli crop losses avoided via predictive advisories.

Impact Beyond Farming

• Credit & Insurance:
  • AI + satellite data create verifiable farm records.
  • Faster loan approvals and claim settlements.
  • PM Fasal Bima Yojana: Using AI and space tech for better yield estimation and dispute resolution.
• Risk Management: Early warnings allow proactive, targeted interventions.

Policy & Vision

• Vision 2030 for Agriculture: Focus on sustainability and resilience.
• Need for Scale: Moving from pilot projects to nationwide implementation to make proactive, data-driven farming standard.

BL

Facts To Remember

1. ChatGPT 5

OpenAI has officially launched ChatGPT 5, the newest version of its advanced AI chatbot, bringing significant upgrades that are already generating buzz.

2. India’s 3rd Launch Pad in Sriharikota by 2029

India’s space program is preparing for its next giant leap. The Indian Space Research Organisation (ISRO) has officially begun work on its Third Launch Pad (TLP) at the Satish Dhawan Space Centre in Sriharikota. 

Daily Current Affairs Quiz
10 & 11 August, 2025

National Affairs

1. PM E-Drive Subsidy Scheme

Context:

The Central Government has extended the PM E-Drive subsidy scheme by two years, now running until the fiscal year 2027-28. This comes as nearly half of the allocated ₹10,900 crore budget remains unutilized. Subsidies for electric two- and three-wheelers under the scheme will end by March 31, 2026.

About PM E-Drive Subsidy Scheme

• Launch & Administration:
  • Launched on 1 October 2024, replacing the Electric Mobility Promotion Scheme (EMPS-2024).
  • Administered by the Ministry of Heavy Industries.
• Duration:
  • Extended till March 31, 2028, or until the funds are fully utilized.
• Budget Allocation:
  • Total outlay: ₹10,900 crore.
  • Demand incentives for EVs: ₹3,679 crore.
  • E-buses, charging infrastructure, and testing facilities: ₹7,171 crore.

Objectives

• Accelerate penetration of electric vehicles in public transport and logistics sectors.
• Reduce upfront cost of EVs for consumers to boost adoption.
• Strengthen charging infrastructure to mitigate range anxiety.
• Support domestic EV manufacturing under the Atmanirbhar Bharat initiative.

Coverage

• Electric two-wheelers, three-wheelers, trucks, ambulances, and buses.
• Charging infrastructure across urban areas and highways.

PIB

2. Khelo India ASMITA Football League 2025-26

Context:

The Khelo India ASMITA Football League 2025-26 was launched in Jalgaon, Maharashtra, marking a significant step toward affirmative action in sports aimed at boosting women’s participation, especially from underrepresented communities.

About Khelo India ASMITA

• What It Is:
  • A focused affirmative action initiative under the broader Khelo India programme designed to increase women’s participation in sports, primarily by developing grassroots talent among marginalized groups.
• Launch:
  • Initiated in 2025–26 with the inaugural football league held in Jalgaon.
• Administering Ministry and Partners:
  • Ministry of Youth Affairs and Sports, supported by the Sports Authority of India (SAI), All India Football Federation (AIFF), and Western India Football Association (WIFA).

Aim

• Provide a dedicated platform for young girls to showcase and develop sporting skills.
• Promote social inclusion by engaging tribal, rural, and minority community talent.

PIB

3. India to Launch 6,500 kg U.S. Communication Satellite After NISAR Mission

Context:

Following the successful launch of the NISAR satellite on July 30, 2025, the Indian Space Research Organisation (ISRO) is preparing to launch a 6,500 kg U.S.-built communication satellite, Block-2 BlueBird, in the coming months. This mission underscores India’s growing capabilities in handling large-scale international payloads.

Key Details:

• Satellite Specifications:
  • Block-2 BlueBird is equipped with a large 64.38 m² communication array.
  • Provides direct broadband connectivity to smartphones without needing any special ground terminals.
  • Supports data speeds up to 12 Mbps, enabling clear voice calls, fast data, and video communication for users.
• Launch Vehicle:
  • Scheduled to be launched on ISRO’s heaviest rocket, the LVM-3-M5.
  • Launch site: Sriharikota spaceport.
• Technology Provider:
  • Uses patented technology from AST & Science.
  • Enables reliable cellphone connectivity directly from space as part of the SpaceMobile network.
• International Collaboration:
  • Strengthens Indo-U.S. cooperation in space exploration and technology.
  • Builds on the success of the previous NISAR mission, showcasing strong bilateral partnership.

TOI

Banking/Finance

1. ICICI Bank Hikes Minimum Balance Requirement for New Savings Accounts

Context:

ICICI Bank, one of India’s leading private sector banks, has revised the minimum average balance (MAB) requirements for new savings accounts opened on or after August 1, 2025. This move marks a significant increase in the MAB norms for urban and semi-urban branches, reflecting a strategic shift in customer segmentation.

Key Highlights:

• Revised MAB Limits:
  • Urban branches: ₹50,000 (previously ₹10,000)
  • Semi-urban branches: ₹25,000
  • Rural branches: ₹10,000 (unchanged)
• RBI’s Stance:
  • The Reserve Bank of India clarified that MAB policies fall under the discretion of individual banks, and RBI does not regulate minimum balance requirements.

Minimum Average Balance (MAB)

Minimum Average Balance (MAB) is the minimum amount of money that a bank requires a customer to maintain in their savings or current account over a specified period (usually a month or quarter). It is the average of the daily closing balances during that period.

Purpose

• The increased MAB is seen as a move to prioritize high-value customers and optimize operational efficiency.
• Ensures that customers maintain a certain level of funds in their accounts to cover bank operational costs.
• Helps banks manage liquidity and operational expenses.

TOI

2. LIC Enters Bond Forward Rate Agreements (FRA) Market

Context:

State-owned Life Insurance Corporation of India (LIC) has officially entered the bond Forward Rate Agreements (FRAs) market through transactions with over 10 major banks, both domestic and foreign, marking a strategic move to manage interest rate risks associated with its portfolio.

Why This Move Matters?

• Purpose: To hedge against interest rate volatility, particularly for its growing share of non-participating (non-par) insurance products, which require stable long-term returns.
• Impact: Expected to increase demand for long-term government securities (30 years+), but may narrow forward spreads, affecting profitability of smaller market players.

Forward Rate Agreements (FRA)

A Forward Rate Agreement (FRA) is a financial contract between two parties to lock in an interest rate for a specified future period on a notional principal amount. The contract settles in cash based on the difference between the agreed-upon forward rate and the actual market interest rate on the settlement date.

Purpose

• FRAs are primarily used by institutions like banks and insurers to hedge against fluctuations in interest rates.
• By fixing a rate in advance, they manage the risk of rates rising or falling in the future, which impacts borrowing costs or investment returns.

Difference Between FRAs and Bond Forwards

Aspect	Forward Rate Agreements (FRAs)	Bond Forwards
Nature of Contract	Agreement to lock in an interest rate on a notional amount for a future period.	Agreement to buy/sell a specific bond at a predetermined price on a future date.
Settlement	Settled in cash based on the difference between agreed rate and market rate.	Physical delivery of the bond at contract maturity (no cash settlement).
Underlying Asset	Interest rates (no actual bond or loan is exchanged).	Specific government bond or security.
Risk Mitigation	Hedge interest rate fluctuations without bond ownership.	Hedge interest rate risk with actual bond delivery, reducing procurement risk.
Market Usage	Commonly used by banks, insurers to hedge interest rate risk on liabilities or assets.	Used by insurers and investors to lock in bond prices and ensure delivery.
Settlement Risk	Requires sourcing bonds at settlement for hedging if needed, adding market risk.	Eliminates settlement risk as bond delivery is contractually guaranteed.
Regulatory Status in India	Allowed and widely used for interest rate risk management.	Recently permitted by RBI and IRDAI, expanding hedging tools.

BS

3. RBI Proposes Standardised Forms and 15-Day Settlement for Deceased Customers Claims

Context:

The Reserve Bank of India (RBI) has issued a draft circular titled Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025 to standardise and simplify the process for settling claims on bank accounts and safe deposit lockers of deceased customers.

Key Proposals

• Standardised Forms: Banks will be mandated to use uniform claim forms and document checklists for processing claims.
• Settlement Timeline: Banks are required to settle claims within 15 calendar days of receiving all necessary documents.
• Compensation for Delay: If banks fail to settle claims within the stipulated time, they must pay compensation to nominees at a rate of Bank Rate + 4% per annum on the settlement amount for the delay period. For locker-related claims, a penalty of ₹5,000 per day of delay is proposed.

Documents and Procedures

• If Nominee Exists: Nominee must submit the claim form, deceased’s death certificate, and valid identity/address proof.
• If No Nominee:
  • Banks will fix a threshold limit, with a minimum of ₹15 lakh, for simplified claim settlements.
  • Claims up to threshold require bond of indemnity/surety and disclaimer/no objection letters from other legal heirs (if applicable).
• Objective
  • To reduce inconvenience and undue hardship to claimants/legal heirs, and improve the efficiency and transparency of claim settlements post customer’s demise.

BS

4. NSE & BSE Introduced new Standard Operating Procedure (SOP)

Context:

The National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE) have introduced a new Standard Operating Procedure (SOP), effective from August 1, 2025, to expedite regulatory approvals for mergers and demergers involving listed companies. The Securities and Exchange Board of India (SEBI) has mandated this framework to bring predictability and speed to an otherwise lengthy process.

Key Features of the SOP for Scheme Processing

• Faster Processing: Applications with complete documents processed within 7 working days, down from 3-5 months earlier.
• Digital Filing Only: Physical paperwork abolished; submissions must be through NSE’s or BSE’s digital platforms.
• Strict Timelines: Draft schemes to be filed within 15 days of board approval; only two opportunities to respond to exchange queries.
• Sequential Approvals: Exchanges issue NOC/observation letters to SEBI; post-SEBI approval, companies approach NCLT for final sanction.

Challenges

• NCLT Approval Still Required: Lengthy NCLT process remains a bottleneck.
• Sequential Steps Cause Delays: Stepwise approvals extend deal timelines.
• No Fixed SEBI Deadline: Lack of statutory timeline for SEBI clearance creates uncertainty.
• Procedural Rigidity Risks: Strict rules and limited responses risk delays or rejections, with no clear appeal mechanism.

Mint

5. SEBI Proposes Separate Category of Alternative Investment Fund (AIF) Schemes

Context:

The Securities and Exchange Board of India (SEBI), the capital markets regulator, has proposed creating a new category of Alternative Investment Fund (AIF) schemes exclusively for accredited investors, offering a lighter regulatory framework compared to regular AIF schemes.

Alternative Investment Fund (AIF)

An Alternative Investment Fund (AIF) is a privately pooled investment vehicle that collects funds from investors for investing in accordance with a defined investment policy, other than traditional securities like stocks or bonds.

Categories:

SEBI classifies AIFs into three categories based on their investment strategy and risk profile:

• Category I: Funds investing in socially or economically desirable sectors (e.g., venture capital, SME funds, infrastructure).
• Category II: Funds employing diverse or complex strategies without leverage (e.g., private equity funds, debt funds).
• Category III: Funds employing diverse or complex trading strategies with leverage (e.g., hedge funds).

BS

6. RBI Imposes Rs 75 Lakh Penalty on ICICI Bank for Regulatory Violations

Context:

The Reserve Bank of India (RBI) levied a monetary penalty of Rs 75 lakh on ICICI Bank Limited for non-compliance with specific regulatory guidelines.

Key Highlights:

• Valuation of Properties:
  • The bank failed to ensure property valuations were conducted by independent valuers for certain mortgage loans, violating RBI’s norms on empanelment of valuers.
• Opening and Maintenance of Current Accounts:
  • ICICI Bank opened or maintained current accounts without adhering to RBI’s prescribed discipline and regulatory requirements.
• RBI’s Position:
  • The penalty is levied solely on grounds of regulatory non-compliance.
  • It does not challenge the legitimacy of any customer transactions carried out by the bank.
  • This action does not rule out further enforcement or supervisory measures by RBI.

BS

Agriculture

1. Soil Health: The Cornerstone of Sustainable Food Security in India

Context:

India’s food security debate has progressed beyond simply increasing food production to focusing on the quality and sustainability of food. Central to this evolving discourse is the critical but often overlooked factor of soil health.

Global and Local Challenges

• Dependence on Soil: Over 99.7% of global food relies on soil, yet degradation undermines productivity, water resources, ecosystems, and nutrition.
• Undernourishment: 735 million people face chronic hunger, linked to declining soil fertility.
• India’s Soil Crisis: Intensive farming, fertilizer overuse, and monocropping have degraded ~30% of soils (147 million ha).
• Erosion: Soil erosion and sediment loss reduce yields, crop quality, and climate resilience.
• Nutrient Deficiency: Depleted soils lower crop nutrition, worsening rural malnutrition.

Restoration Pathways:

• Beyond Land Preservation: Restoring soil health is vital not only to halt land degradation but also to enhance the nutrient content and quality of food crops.
• Sustainable Practices: Sustainable farming practices such as organic farming, cover cropping, biofertilizers, and crop rotation naturally rebuild soil fertility.
• Regenerative Agriculture:
  • Soil Organic Carbon (SOC) Build-up: Increasing SOC through composting organic waste and mulching.
  • Crop Diversification: Promoting pulses, vegetables, and traditional grains to replenish soil nutrients, control pests, and break disease cycles.
  • Natural Inputs and Indigenous Seeds: Encouraging use of indigenous seed varieties and natural inputs, reducing reliance on synthetic chemicals.

Impact on Food Security and Livelihoods:

• Improved Productivity and Nutrition: Healthy soils boost agricultural productivity and crop nutritional value while fostering resilient ecosystems and climate adaptation.
• Economic and Livelihood Threat: With agriculture employing a majority of India’s workforce and contributing significantly to GDP, soil degradation threatens both food availability and the livelihoods of millions of farmers.
• Urgency for Sustainable Management: Emphasizing sustainable soil management is crucial to feeding India’s 1.4 billion people nutritious food and ensuring long-term health and well-being.

BL

Facts To Remember

1. CPI inflation at record low in July: Poll

India’s retail inflation likely fell to a record low in July due to a sustained decline in food inflation, according to a Mint poll.

2. India’s First State-of-the-Art Animal Stem Cell Biobank and Laboratory

The Union Minister inaugurated India’s first advanced Animal Stem Cell Biobank and Laboratory at the National Institute of Animal Biotechnology (NIAB) in Hyderabad. This cutting-edge facility represents a landmark development in India’s biotechnology capabilities, aimed at advancing livestock health and agricultural productivity.

3. Calcutta High Court Tops in Cases Pending for Over 50 Years

The Union Law Ministry released data revealing that Calcutta High Court (HC) has the highest number of cases pending disposal for over five decades among all High Courts in India.

4. Centre Plans to Reduce Ownership in LIC and Public Sector Banks Beyond Sebi Mandate

The Government of India is preparing to further reduce its stake in Life Insurance Corporation of India (LIC) and several public sector banks (PSBs), going beyond Securities and Exchange Board of India (Sebi) requirements. This move is aimed at raising capital while retaining majority ownership and control.

Daily Current Affairs Quiz
12 August, 2025

National Affairs

1. Revised Income Tax Bill, 2025

Context:

Finance Minister Nirmala Sitharaman tabled the Revised Income Tax Bill, 2025 in the Lok Sabha, incorporating most of the 566 recommendations from the Parliamentary Select Committee. The Bill aims to replace the six-decade-old Income Tax Act, 1961.

Key Features of the Revised Bill

1. Single ‘Tax Year’ Concept
   • Replaces “Previous Year” and “Assessment Year” with a single term Tax Year to simplify understanding and compliance.
2. Income Tax Refunds
   • Removal of clause denying refunds for late ITR filing, taxpayers can now claim refunds even after the due date.
3. Corporate & MSME Relief
   • ₹80 million deduction for inter-corporate dividends restored.
   • MSME definition aligned with the MSME Act for uniformity across laws.
4. Rationalised Property Taxation
   • Notional rent on vacant property removed.
   • Clear deductions for municipal taxes and interest on rented property.
5. Compliance & Governance Reform
   • Unnecessary provisions removed.
   • CBDT empowered for framing digital-era rules.
   • NIL-TDS option available for zero-liability taxpayers.
6. Charitable Trust & LLP Relief
   • Relaxation in transfer pricing rules.
   • Alternate Minimum Tax (AMT) removed for LLPs.
7. Enhanced Digital Alignment
   • Structured section numbering, improved terminology, and better cross-referencing for easier navigation.
8. Section 80M Deduction
   • Retained deduction for intercorporate dividends for companies under special tax rate of Section 115BAA.

About MAT & AMT

• Minimum Alternate Tax (MAT):
  • A tax levied on companies that show low or zero taxable income after availing various deductions and exemptions, ensuring they pay a minimum amount of tax.
• Alternate Minimum Tax (AMT):
  • Similar to MAT but applicable to non-corporate taxpayers like LLPs, individuals, and firms claiming certain deductions, to ensure they pay a minimum level of tax.

What is Section 80M?

Section 80M allows a domestic company receiving dividends from another domestic company to claim deduction for the amount it distributes as dividends in the same financial year. This provision prevents taxation of the same income at multiple corporate levels.

Mint & TH

2. Jal Jeevan Mission

Context:

The Jal Jeevan Mission (JJM) has achieved a significant milestone with rural tap water coverage reaching 81% in 2025, up from 17% in 2019, benefiting over 15.68 crore households.

About Jal Jeevan Mission (JJM)

• Launch: August 2019 by the Government of India.
• Objective: Provide Functional Household Tap Connections (FHTCs) to every rural household.
• Key Features:
  • Safe, adequate, and regular potable water supply.
  • Use of Aadhaar-linked monitoring, geo-tagged assets, IoT-based sensors, and third-party inspections for transparency.

Banking/Finance

1. Minimum Alternate Tax & Alternate Minimum Tax

Context:

The Income Tax (No. 2) Bill, 2025, passed by the Lok Sabha, introduces a key structural change in India’s alternative tax regime. It now formally separates Minimum Alternate Tax (MAT) applicable to companies from Alternate Minimum Tax (AMT) applicable to certain non-corporate taxpayers.

Key Highlights of the Amendment:

1. Minimum Alternate Tax (MAT)

• Applicability: Only for companies (including foreign companies) that report low taxable income due to exemptions or deductions.
• Objective: Ensures companies pay a minimum tax even if their regular taxable income is reduced by incentives or exemptions.

2. Alternate Minimum Tax (AMT)

• Applicability: Only for non-corporate taxpayers, including LLPs, partnerships, and individuals, who claim specified deductions under sections such as 10AA or Chapter VI-A.
• Objective: Ensures these taxpayers also contribute a minimum level of tax despite deductions.

3. New Exemption for LLPs

• LLPs whose income consists only of capital gains and who do not claim any specified deductions will now be exempt from AMT.
• Significance: Resolves earlier ambiguity that unintentionally subjected investment-holding LLPs to AMT liability.

What is MAT (Minimum Alternate Tax)?

It ensures that companies paying minimal or no income tax due to exemptions still contribute a base level of tax, typically calculated on their book profits.

• Full Form: Minimum Alternate Tax
• Applicability: Companies (domestic & foreign)
• Purpose: Ensures companies that report low or zero taxable income (after using deductions) still pay a minimum percentage of book profits as tax.
• Current Rate: Around 15% of book profits plus surcharge & cess.

What is AMT (Alternate Minimum Tax)?

Applies to non-corporate taxpayers who claim significant deductions. It ensures they pay a minimum tax preventing complete erosion of their tax liability despite deductions and exemptions.

• Full Form: Alternate Minimum Tax
• Applicability: Non-corporate taxpayers (LLPs, partnerships, individuals, HUFs) who claim specified deductions under the Income Tax Act.
• Purpose: Prevents non-corporates from completely avoiding tax liability by claiming certain deductions; ensures they pay a minimum tax on adjusted total income.
• Current Rate: Around 18.5% plus surcharge & cess.

ET

2. SEBI Proposes FPI Reforms to Boost Investment and Ease Compliance

Context:

The Securities and Exchange Board of India (SEBI) has issued two major proposals to enhance investment flows and simplify compliance in the Indian securities market. These aim to widen resident Indians’ participation in international investment schemes and streamline market entry for trusted foreign investors.

Key Highlights:

Expanding Resident Indian Participation in FPIs

• SEBI proposes allowing retail schemes based in International Financial Services Centres (IFSCs), sponsored or managed by resident Indian non-individuals or mutual funds, to register as Foreign Portfolio Investors (FPIs).
• Terminology Update:
  • Replace “sponsor or manager” with Fund Management Entity (FME) or its associate.
  • A Fund Management Entity (FME) is a legal entity registered with the International Financial Services Centres Authority (IFSCA) to carry out fund management activities in an IFSC, such as GIFT City in India.
• Investment Limit:
  • Resident Indian non-individual FMEs or their associates can contribute up to 10% of a retail scheme’s corpus.
• Constituent Expansion:
  • Overseas mutual funds/unit trusts registered as FPIs can include Indian mutual funds as constituents.

Single-Window Framework for Low-Risk Foreign Investors (SWAGAT-FI)

• The SWAGAT-FI framework will offer a single-window, unified registration process for eligible foreign investors, enabling them to invest through multiple routes without having to undergo separate compliance procedures for each.
• Introduction of SWAGAT-FI:
  • Single Window Automatic & Generalised Access for Trusted Foreign Investors.
• Target Investors:
  • Sovereign wealth funds, pension funds, central banks, multilateral agencies, highly regulated public retail funds, regulated insurance companies.
• Proposed Changes:
  1. Single Registration: Automatic FPI + FVCI status without extra documentation.
  2. Longer Validity: KYC and registration review extended from 3–5 years to 10 years.
  3. Single Demat Account: Option to hold all securities in one account with regulatory tagging.
  4. Cap Removal: No 50% contribution cap for NRIs/OCIs/RIs in SWAGAT-FI entities.
• Impact: Faster market entry, reduced costs, and improved investment flexibility for large institutional investors.

Mint

3. Large Value Funds (LVFs)

Context:

The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing major reforms to Large Value Funds (LVFs) under the Alternative Investment Fund (AIF) framework to widen participation and ease compliance. Public comments are open until 29 August 2025.

What Are Large Value Funds (LVFs)?

Large Value Funds are a special category of Alternative Investment Funds (AIFs) in India where the minimum investment per investor is ₹70 crore. They are designed for sophisticated and ultra-high-net-worth investors who can commit substantial capital.

Key Features

• Minimum Investment Ticket Size: ₹70 crore per investor.
• Lower Diversification Norms: LVFs can invest more capital in a single investee company compared to standard AIFs.
• Reduced Regulatory Overhead: Fewer restrictions on investment limits and related-party transactions.
• Eligible Investors: Typically institutions, large family offices, sovereign wealth funds, and ultra-HNIs.

Key SEBI Proposals:

1. Lower Entry Threshold
   • Minimum investment cut from ₹70 crore → ₹25 crore per investor.
   • Rationale: ₹70 crore was too high for many domestic institutions; ₹25 crore keeps sophistication but broadens access.
2. Scrapping Certain Compliance Rules
   • No need to follow SEBI’s standard Private Placement Memorandum (PPM) template.
   • No NISM certification needed for managers’ key investment teams (if running only LVFs).
3. Removing Investor Cap
   • Current 1,000-investor limit for AIF schemes removed for LVFs.
   • Justification: High ticket size & accredited status are already safeguards.
4. Conversion Option
   • Existing AIFs can convert into LVFs if all investors meet criteria and give unanimous consent.
5. Categorical Exemptions
   • Automatic relief from certain disclosure & audit requirements — no need for individual waivers.
   • Accredited investors already sign risk acknowledgments.
6. Committee Member Liability Relief
   • Investment committee members in LVFs not personally responsible for compliance; accountability remains with fund & managers.

ET

Agriculture

1. NABARD Marks National Handloom Day

Context:

The National Bank for Agriculture and Rural Development (NABARD) celebrated National Handloom Day on 7 August 2025 in Guwahati under the theme “Handloom for Reinvigorating the Rural Economy of Assam”. The event aimed to highlight the role of the handloom sector in driving rural development and women’s empowerment.

Key Highlights:

• Significance of Assam’s Handloom Sector:
  • Assam has 12.83 lakh weavers, over 90% of whom are women.
  • Known for products like the Assamese phulam gamosa.
  • Key initiatives include Swanirbhar Naari portal, Integrated Handloom Park at Kaziranga, and Silk Tourism projects in Sualkuchi.
• NABARD’s Contribution:
  • Over 8,000 weavers benefited from skill training, enterprise promotion, marketing support, and formation of Weavers Producer Organisations (WPOs).
  • GI registration support for handloom products.
• Focus Areas Discussed:
  • Eco-friendly weaving practices.
  • Enhanced access to institutional credit.
  • Convergence with government schemes.
  • Marketing and export opportunities.

Weavers Producer Organisations (WPOs)

Weavers Producer Organisations are collective entities formed by handloom weavers to pool resources, improve bargaining power, access finance, and market their products collectively. They function similarly to Farmer Producer Organisations (FPOs) but are dedicated to the handloom and weaving sector.

Objectives

• Strengthen the collective capacity of weavers.
• Enable direct market linkages to reduce dependence on middlemen.
• Facilitate bulk procurement of raw materials at lower costs.
• Provide access to government schemes, credit, and training.

NABARD

Facts To Remember

1. PM inaugurates new housing complex for parliamentarians

Prime Minister Narendra Modi on Monday inaugurated a complex of multi-storey flats for parliamentarians in New Delhi.

2. Australia ‘will recognise’ Palestinian state at UNGA

Australia will recognise a Palestinian state at the UN General Assembly in September, Prime Minister Anthony Albanese

3. India’s bid to host 2036 Olympics in ‘continuous dialogue’ phase

India’s bid to host the 2036 Olympics is in the “continuous dialogue” phase with the International Olympic Committee’s Future Host Commission, Sports Minister Mansukh Mandaviya told the Lok Sabha.

4. Banks free to set minimum balance

RBI Governor Sanjay Malhotra said banks are free to decide the minimum balance for savings accounts and that it does not fall under the regulatory domain of the RBI.

5. Operation Falcon saves Assam rhinos, says CM Himanta Biswa Sarma

The Assam government has achieved a significant success in protecting the one-horned rhinos – the pride of the state – from poachers since it launched ‘Operation Falcon.

6. IIST–KAU Post-Flight Seed Study after ISS Mission

The Indian Institute of Space Science and Technology (IIST) and Kerala Agricultural University (KAU) have initiated research on crop seeds sent to the International Space Station (ISS) during the Axiom-4 mission. The study aims to assess the effects of space exposure on seed germination, growth, and productivity.

Daily Current Affairs Quiz
13 August, 2025

National Affairs

1. India Semiconductor Mission (ISM)

Context:

The Union Cabinet, chaired by PM Narendra Modi, has approved four new semiconductor manufacturing projects under the India Semiconductor Mission (ISM). These will involve a cumulative investment of ₹4,600 crore, generate 2,034 skilled jobs, and boost India’s electronics manufacturing ecosystem.

Details of the New Projects

1. SiCSem Pvt. Ltd. – Odisha (Bhubaneswar)

• Partner: Clas-SiC Wafer Fab Ltd., UK
• Focus: India’s first commercial Silicon Carbide (SiC) compound semiconductor fab.
• Applications: Missiles, defence, EVs, railways, fast chargers, data centres, consumer appliances, solar inverters.

2. 3D Glass Solutions Inc. – Odisha

• Focus: Vertically integrated advanced packaging & embedded glass substrate unit.
• Technologies: Glass interposers, silicon bridges, 3D Heterogeneous Integration (3DHI) modules.
• Applications: Defence, AI, high-performance computing, RF & automotive, photonics.

3. Advanced System in Package (ASIP) Technologies – Andhra Pradesh

• Partner: APACT Co. Ltd., South Korea.
• Applications: Mobile phones, set-top boxes, automobiles, and other electronics.

4. Continental Device India Pvt. Ltd. (CDIL) – Punjab

• Type: Brownfield expansion in Mohali.
• Products: High-power discrete semiconductors — MOSFETs, IGBTs, Schottky diodes, transistors.
• Applications: EVs, renewable energy, industrial power conversion, telecom.

About India Semiconductor Mission (ISM)

• Launched: 2021
• Nodal Ministry: Ministry of Electronics & IT (MeitY)
• Vision: Make India a global hub for semiconductor design, manufacturing, and innovation.
• Support:
  • Funding for fabs, ATMP/OSAT units, and display fabs.
  • Design ecosystem aid for startups, MSMEs, academia.
  • Talent development — 60,000+ students trained.

PIB

2. Mines and Minerals (Development and Regulation) Amendment Bill 2025

Context:

A new Bill has been passed to boost India’s mineral sector, ensure secure supply chains for critical minerals, and align with the National Critical Mineral Mission. This comes amid global supply disruptions and India’s heavy import dependence for key resources.

Key Amendments

1. Renaming and Expanding NMEDT

• National Mineral Exploration Trust (NMET) renamed to National Mineral Exploration and Development Trust (NMEDT).
• New mandate includes offshore and international exploration for critical minerals.
• Funding boost: Contribution from mining leaseholders increased from 2% → 3% of royalty payable.

2. Setting Up Mineral Exchanges

• Establishment of electronic trading platforms for minerals, concentrates, processed forms, and metals.
• Goal: Transparent, dynamic price discovery and more efficient market operations.

3. Incentives for Critical Mineral Extraction

• Easier inclusion of new critical minerals in existing mining leases.
• No extra royalty for critical minerals listed in the Seventh Schedule or Part D of the First Schedule if added to an existing lease.

4. One-Time Lease Area Extension

• Deep-seated minerals (below 200m): Up to 10% extension.
• Composite licences: Up to 30% extension.

5. Removal of Captive Mine Sale Cap

• Earlier: Only up to 50% of minerals from captive mines could be sold.
• Now: No limit — companies can sell 100% surplus minerals.
• Extra measure: States allowed to authorise sale of old mineral dumps.

PIB

3. Indian Ports Bill, 2025

Context:

Lok Sabha passed the Indian Ports Bill, 2025, replacing the Indian Ports Act, 1908. Aims to modernise port rules, improve trade efficiency, and promote green and safe port practices.

Main Features:

1. Modern Port Governance

• Old colonial law replaced with modern regulations.
• Easier and faster port procedures through digital systems.
• Ports get more autonomy to set tariffs with transparent rules.
• Long-term planning for cargo growth and better connectivity.

2. Green and Safe Ports

• Waste handling facilities mandatory at all ports.
• Pollution control as per global standards (MARPOL, Ballast Water rules).
• Promotion of renewable energy and eco-friendly operations.
• All ports must have disaster and security response plans.

3. Boost to Trade and Jobs

• Promote coastal shipping and link with waterways & road-rail networks.
• Support public-private partnerships (PPP) and foreign investments.
• Faster cargo movement to cut logistics costs.
• Create jobs in ports, logistics, and warehousing.

4. New Institutions

• Maritime State Development Council (MSDC) for Centre–State coordination.
• State Maritime Boards to manage non-major ports.
• Dispute Resolution Committees for quick settlement of issues.

PIB

4. State Health Regulatory Excellence Index Launched (SHRESTH)

Context:

The Union Ministry of Health & Family Welfare, through the Central Drugs Standard Control Organization (CDSCO), has launched SHRESTH – the State Health Regulatory Excellence Index, India’s first national framework to benchmark and strengthen state drug regulatory systems via transparent, data-driven evaluation.

Key Highlights:

• What is SHRESTH?
  • A virtual gap assessment tool to evaluate, rank, and improve state/UT drug regulatory authorities.
  • Ensures medicine safety, quality, and efficacy in line with WHO standards.
• Objectives
  • Benchmark state drug regulatory systems.
  • Target improvements in human resources, infrastructure, and digitisation.
  • Enhance public trust in medicines made and distributed in India.
• Evaluation Criteria
  • Manufacturing States: 27 indicators under 5 themes – Human Resources, Infrastructure, Licensing, Surveillance, Responsiveness.
  • Distribution States/UTs: 23 indicators under the same themes.
  • Monthly: States submit data to CDSCO → scored → feedback loop.
• Key Features
  • Two-tier categorisation: Manufacturing States & Distribution States/UTs.
  • Continuous improvement via monthly rankings and updates.
  • WHO-aligned to move towards ML3-equivalent global standards.
  • Cross-learning platform for sharing success stories.
  • Regulatory harmonisation for uniform Drugs & Cosmetics Act enforcement across India.

News on Air

Banking/Finance

1. RBI Grants In-Principle Approval to Paytm Payments Services as Online Payment Aggregator

Context:

The Reserve Bank of India (RBI) has granted Paytm Payments Services Ltd (PPSL), a wholly-owned subsidiary of One 97 Communications Ltd, an in-principle approval to operate as an online payment aggregator. This lifts earlier restrictions and allows the company to onboard new merchants.

What is a Payment Aggregator (PA)?

• A Payment Aggregator is a service provider that allows merchants to accept digital payments (credit/debit cards, UPI, net banking, wallets) without creating their own direct relationship with banks.
• The PA collects payments from customers and settles them to the merchant’s account.
• Example: Razorpay, PayU, CCAvenue, Paytm Payments Services.

RBI Norms for Becoming a Payment Aggregator

Eligibility & Licensing

• Must be a company registered in India under the Companies Act.
• Requires RBI authorisation under the Payment and Settlement Systems Act, 2007.

Capital Requirements

• Minimum net worth:
  • ₹15 crore at the time of application.
  • Must increase to ₹25 crore by the end of the third financial year.

Read more>>

2. IBC Amendment Bill

Context:

On 12 August 2025, Finance Minister Nirmala Sitharaman introduced the Insolvency and Bankruptcy Code (IBC) Amendment Bill in the Lok Sabha. The Bill proposes major reforms, including group insolvency, cross-border insolvency, and pre-packaged insolvency for large corporations, aimed at speeding up admission, resolution, and liquidation processes.

What is IBC?

Insolvency and Bankruptcy Code (IBC)

• Introduced – 2016
• Purpose – To provide a time-bound process for resolving insolvency (when individuals or companies can’t repay debts) and, if necessary, liquidation.
• Nodal Ministry – Ministry of Corporate Affairs
• Regulator – Insolvency and Bankruptcy Board of India (IBBI)

Key Highlights:

New Concepts Introduced

• Group Insolvency – Allows joint resolution of multiple companies in the same group to avoid loss of value.
• Cross-Border Insolvency – Creates rules for dealing with cases involving foreign creditors or overseas assets.
• Pre-Packaged Insolvency for Large Corporates – Enables faster, cheaper, and less disruptive resolutions.
• Personal Guarantor Assets – Lets lenders take over personal guarantors’ assets during insolvency proceedings.
• Secured Claims Clarification – Government or state claims will be “secured” only if there is a contract; statutory claims won’t get automatic priority.

Read more>>

BS

3. NPCI to Discontinue UPI ‘Pull’ Transactions from October 31, 2025

Context:

The National Payments Corporation of India (NPCI), operator of the Unified Payments Interface (UPI), will discontinue ‘pull’ transactions (recipient-initiated person-to-person digital payments) from October 31, 2025 to curb rising cases of online payment fraud.

Key Highlights:

• Feature Being Removed:
  • ‘Pull’ or ‘collect’ payment method, where the beneficiary initiates the transaction and the payer approves it by entering a UPI PIN.
  • Introduced to simplify bill-splitting or payment requests among peers.
• Reason for Removal:
  • Increasing misuse by fraudsters posing as merchants or friends to deceive users into approving unintended payments.
  • Linked to a surge in online scams and unauthorised fund transfers.

National Payments Corporation of India (NPCI)

• Type: Not-for-profit company under the Companies Act, 2013.
• Established: 2008.
• Ownership: Owned by a consortium of major banks; promoted by Indian Banks’ Association (IBA) under the guidance of RBI and Payment and Settlement Systems Act, 2007.
• Headquarters: Mumbai, Maharashtra.

Unified Payments Interface (UPI)

• Launched: April 2016 by NPCI.
• Nature: Instant real-time payment system for inter-bank transactions.
• Based on: IMPS (Immediate Payment Service) infrastructure

TOI

4. Parliament Passes New Income Tax Bill

Context:

Parliament passed the new Income Tax Bill, replacing the six-decade-old Income Tax Act, 1961, aiming to simplify India’s direct tax law. The Rajya Sabha returned the legislation to the Lok Sabha with a voice vote, completing the parliamentary procedure.

Key Highlights:

• Simplified Tax Framework:
  • Introduces the concept of a “tax year” replacing the financial year and assessment year to reduce confusion.
  • Makes the law easier to read, understand, and implement.
• Digital Asset Definition Expanded:
  • Broader definition of ‘virtual digital assets’ to include crypto-assets, NFTs, and other government-specified digital assets.
• Search Operation Compliance:
  • Taxpayers must provide access to virtual spaces like social media accounts, email servers, and cloud storage during search operations.
  • CBDT to issue SOPs for handling digital data to protect taxpayer privacy.
• Related Taxation Laws (Amendment) Bill, 2025:
  • Passed alongside the main bill.
  • Key provisions:
    • Tax exemption to public investment funds of Saudi Arabia and its subsidiaries.
    • Tax exemption for partial withdrawal under Unified Pension Scheme.
    • Revised definition of ‘income’ in block assessments during search/seizure cases.

Direct Tax & Indirect Tax

Basis	Direct Tax	Indirect Tax
Who Pays	Paid directly by taxpayer to government	Paid indirectly via sellers/service providers
Burden Shift	Cannot be shifted	Can be shifted to another person
Examples	Income Tax, Corporate Tax	GST, Customs Duty
Nature	Progressive	Regressive
Collection	Direct from taxpayer	Collected by intermediaries and remitted to government

ET

5. RBI Allows ‘Vostro’ Accounts to Invest Surplus in Government Securities

Context:

The Reserve Bank of India (RBI) has permitted foreign investors to invest the entire surplus balance in their Vostro accounts into central government securities. This move is expected to deepen trade settlement in rupees and provide better returns on idle funds.

Key Highlights:

• What is a Vostro Account?
  • An account held by a domestic bank on behalf of a foreign bank.
  • Used for holding rupee-denominated balances arising from trade transactions between India and other countries.
• New Investment Permission
  • Foreign investors can now invest entire surplus balances in central government securities.
  • Aims to promote international trade settlement in INR.
• Expected Benefits
  • Boosts the attractiveness of rupee trade arrangements.
  • Provides a secure and interest-bearing option for surplus funds.
  • Supports RBI’s strategy to internationalise the rupee.

BS

6. Retail Inflation (Consumer Price Index – CPI)

Context:

In July 2025, retail inflation in India dropped to 1.55% – the lowest in 8 years. This is well below the RBI’s target range of 2% to 6% and has now stayed under 4% for six months in a row. The main reason is the fall in food prices.

What is Retail Inflation (Consumer Price Index – CPI)?

Retail inflation measures the average change over time in the prices that consumers pay for a basket of goods and services. It reflects the cost of living and purchasing power of households.

• In India, we measure it through the Consumer Price Index (CPI).
• It includes items like food, clothes, housing, transport, and fuel.
• It shows how much our cost of living is changing.
• Base Year: Currently 2012 (in India).

Wholesale Inflation (Wholesale Price Index – WPI)

Wholesale inflation measures the average change in prices of goods at the wholesale level (bulk transactions between businesses), before they reach the retail market.

• Base Year: Currently 2012 (in India).
• Categories Covered in CPI:
  • Food & Beverages
  • Clothing & Footwear
  • Housing
  • Fuel & Light
  • Miscellaneous (education, healthcare, transport, etc.)

What is Inflation?

Inflation is the rate at which prices rise in the economy, which reduces the value of money.

• Demand-pull inflation: When demand for goods is more than supply.
• Cost-push inflation: When production costs go up and prices rise.

How RBI Controls Inflation (Monetary Policy Tools)

1. Repo Rate: Increases loan interest rates to reduce spending.
2. Reverse Repo Rate: Makes banks keep more money with RBI, reducing market cash.
3. Cash Reserve Ratio (CRR): Forces banks to keep more money with RBI, limiting lending.
4. Open Market Operations (OMO): RBI sells government securities to absorb extra cash from the market.
5. Policy Stance: Tightening monetary policy to focus on controlling prices.

ET

Facts To Remember

1. Bond Market Selloff Continues Despite Retail Inflation Hitting 8-Year Low

The Indian bond market witnessed continued selling pressure on 12 August 2025, even as retail inflation hit its lowest level in eight years. Government bond yields surged due to stop-loss triggers and higher-than-expected state development loan (SDL) cut-off yields.

2. PM addresses the 18th International Olympiad on Astronomy and Astrophysics

India is hosting the 18th International Olympiad on Astronomy and Astrophysics (IOAA) in 2025, welcoming over 300 young astronomers from 64 countries.

3. Toda Tribe Leads Endangered Language Preservation in Nilgiris

The Toda tribe of the Nilgiri Hills, Tamil Nadu, who speaks the Toda Language a proto-South Dravidian language with no native script, is spearheading efforts to safeguard their native language under the Scheme for Protection and Preservation of Endangered Languages (SPPEL), implemented by the Central Institute of Indian Languages (CIIL), Ministry of Education.

4. Private Sector Likely to Get Limited Access to PM GatiShakti Portal

The government is finalising rules for private sector access to the PM GatiShakti National Master Plan (NMP) portal — a digital platform aimed at transforming infrastructure planning and execution in India.

Daily Current Affairs Quiz
14 August, 2025

National Affairs

1. Ministry of Panchayati Raj Launches AI-Powered ‘SabhaSaar’ Tool

Context:

The Ministry of Panchayati Raj (MoPR) has launched SabhaSaar, an Artificial Intelligence (AI) and Natural Language Processing (NLP)-based tool to automatically generate structured Minutes of Meetings (MoM) from Gram Sabha and other Panchayat meetings’ audio and video recordings.

Key Features:

– AI & NLP Integration: Transcribes spoken content, identifies key decisions and action points, and produces formatted meeting minutes

– Multi-Language Support: Currently supports 13 Indian languages, with plans to expand gradually

– Integration with Bhashini: Ensures translation and accessibility across linguistic backgrounds

– Automated Summarization: Highlights key decisions, resolutions, and action points

– Structured Output: Generates well-formatted, official-ready minutes

Significance:

– Participatory Governance: Strengthens local democracy by standardizing meeting records

– Efficiency: Reduces manual documentation time, allowing Panchayat officials to focus on governance and service delivery

– Transparency & Accountability: Ensures accurate, structured, and tamper-proof records

PIB

2. Export Promotion Mission

Context:

The Government of India is set to launch a ₹2,250 crore Export Promotion Mission aimed at safeguarding Indian industries from global trade shocks, including recent US tariff hikes on Indian goods.

Background:

• Announced in the Union Budget 2025 on 1st February 2025
• Presented by the Directorate General of Foreign Trade (DGFT) to export councils
• Developed in response to high tariffs affecting sectors such as textiles, chemicals, leather, and footwear
• Nodal Ministry: Ministry of Commerce and Industry

Objectives:

• Protect Indian exports from global market volatility and protectionist measures
• Expand India’s presence in new international markets and strengthen supply chains
• Enhance the competitiveness of MSMEs and e-commerce exporters

Key Features:

• Two Broad Components:
  1. NIRYAT PROTSAHAN – Trade finance support for exporters
  2. NIRYAT DISHA – Driving international holistic market access
• Financial Support: Easy credit schemes for MSMEs and e-commerce exporters
• Market Expansion: Assistance for exploring untapped markets and product diversification
• Overseas Warehousing: Facilitation of storage facilities abroad for supply efficiency
• Global Branding: International campaigns to promote Indian goods
• Ease of Doing Business: Simplification of trade procedures and GST rationalisation

ET

3. India’s First Private EO Satellite Constellation under PPP Model

Context:

The Indian National Space Promotion and Authorization Center (IN-SPACe) has selected a PixxelSpace India-led consortium to design, build, and operate India’s first fully indigenous commercial Earth Observation (EO) satellite constellation under a Public-Private Partnership (PPP) model.

About the Initiative:

• What It Is: A landmark space project deploying 12 advanced EO satellites built and operated by the private sector in collaboration with the government
• Lead Partner: PixxelSpace India
• Consortium Members: Piersight Space, Satsure Analytics India, Dhruva Space

Key Features:

• Constellation Size: 12 state-of-the-art EO satellites
• Applications:
  • Climate change monitoring
  • Disaster management
  • Agriculture analytics
  • Marine surveillance
  • National security
  • Urban planning
• Global Reach: Data will cater to international demand for geospatial intelligence
• Data Output: Provides Analysis Ready Data (ARD) and Value-Added Services (VAS)
• PPP Model: First of its kind under IN-SPACe’s private sector promotion framework

Read more>>

TH

4. National Sports Governance Bill & National Anti-Doping (Amendment) Bill

Context:

Parliament has passed the National Sports Governance Bill and the National Anti-Doping (Amendment) Bill, marking a landmark moment in India’s sports administration. Both bills now await the President’s assent to become law.

National Sports Governance Bill

• National Sports Bodies (NSBs):
  • National Olympic Committee (NOC): The only official body for Olympic sports in India
  • National Paralympic Committee (NPC): The sole authority for Paralympic sports
  • Other Bodies: National Sports Federations (NSF) and Regional Sports Federations (RSF)
• National Sports Board (NSB):
  • Can recognize any sports organization as a National Sports Body
  • Chairperson and members appointed by the Central Government
• National Sports Tribunal:
  • Handles sports-related disputes quickly
  • Civil courts cannot interfere in cases under the Tribunal
• Oversight of Elections:
  • Central government to set up a panel of electoral officers to supervise elections of national sports bodies
• Central Government Powers:
  • May exempt a national body or its affiliates from any part of the Bill if it is necessary to promote the sport

National Anti-Doping (Amendment) Bill, 2025

• Appeal Panel:
  • Central government can set up an Appeal Panel to hear appeals against decisions of the Disciplinary Panel
• Operational Independence:
  • Both the Appeal Panel and National Anti-Doping Agency will have more autonomy in decision-making
• Alignment with International Standards:
  • Provisions of the World Anti-Doping Code will now have the force of law in India

News on Air

Banking/Finance

1. RBI Report on Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI)

Context:

The Reserve Bank of India (RBI) has released a report by its committee on the Framework for Responsible and Ethical Enablement of AI (FREE-AI) to guide safe, fair, and transparent adoption of AI in banking and finance. Objective: To encourage the responsible and ethical adoption of Artificial Intelligence (AI) in the financial sector.

Why AI is Important for the Financial Sector?

• Efficiency & Automation – Faster transactions, loan approvals, fraud detection, compliance checks.
• Better Decisions – Advanced analytics for credit scoring, risk assessment, and investments.
• Improved Customer Experience – Chatbots, voice assistants, personalized services.
• Fraud Prevention – Real-time anomaly detection and cybersecurity enhancement.
• Regulatory Compliance – Automated monitoring for RBI/SEBI norms.

Challenges in AI Adoption

• Data Privacy Risks – Possible misuse or breaches of sensitive financial data.
• Bias & Discrimination – Poor-quality data can lead to unfair outcomes.
• High Costs – Infrastructure and skilled workforce are expensive.
• Regulatory Gaps – No universal AI governance standards yet.
• Cybersecurity Threats – AI systems may be manipulated or hacked.
• Lack of Explainability – Complex “black box” AI decisions are hard to understand.

RBI’s 7 Sutras (Guiding Principles) for AI in Finance:

• Trust is the foundation – Build transparency and reliability.
• People first – AI should support, not replace, human decision-making.
• Innovation over restraint – Encourage responsible innovation.
• Fairness and equity – Prevent bias and ensure equal access.
• Accountability – Financial institutions must own AI decisions.
• Understandable by design – Models must be explainable to users.
• Safety, resilience, sustainability – AI must be secure, adaptable, and long-term focused.

Key Recommendations:

• Shared AI Infrastructure – Common data & computing platforms for regulated entities.
• AI Innovation Sandbox – Safe testing space for AI applications in finance.
• Indigenous AI Models – India-specific tools for local banking needs.
• Board-Approved AI Policy – Governance framework for AI use in each institution.
• Risk Assessment for AI Products – Include AI-specific checks before launch.
• Consumer Protection & AI Audit – Integrate AI into grievance redressal and compliance reviews.
• Cybersecurity Strengthening – Robust response plans for AI-related cyber incidents.

About the FREE-AI Committee:

• Constituted as per RBI’s December 6, 2024 policy statement.
• Chairperson – Dr. Pushpak Bhattacharyya.
• Objective – Promote innovation in AI while safeguarding transparency, fairness, accountability, and customer protection in financial services.

IE & ET

2. RBI’s Revised Co-Lending Guidelines to Boost NBFC Growth – Crisil

Context:

RBI has issued revised co-lending guidelines, expected to create more growth opportunities for Non-Banking Financial Companies (NBFCs), as per Crisil Ratings. The changes broaden regulatory oversight and lending flexibility while reducing funding constraints for smaller NBFCs.

Key Highlights:

• Applicability – Extended to all arrangements between all Regulated Entities (REs) and all forms of loans (secured and unsecured).
• Minimum Retention Requirement – REs must retain at least 10% of loans on their books, down from the 20% requirement for NBFCs earlier.
• Benefit for Smaller NBFCs – Lower retention eases funding pressure for mid- and small-sized NBFCs.
• Direct Lending Guarantee (DLG) – Originating REs can now provide DLG of up to 5% of loans across all lending forms, earlier limited to digital lending.
• Uniform Asset Classification – All co-lending partners must follow consistent classification for a given loan exposure, ensuring transparency and standard risk assessment.

Impact Analysis by CRISIL

• Growth Catalyst – Broader scope and reduced retention norms likely to expand NBFC loan books.
• Risk Sharing – DLG expansion strengthens collaboration between banks and NBFCs.
• Regulatory Uniformity – Common asset classification promotes fair borrower profiling and reduces disputes.

BS

3. Overseas Direct Investments (ODIs)

Context:

Indian companies investing funds abroad through Overseas Direct Investments (ODIs) are facing heightened scrutiny from banks, which are increasingly questioning the business rationale, viability, and end-use of funds.

Regulatory Background:

• A company can invest up to four times its net worth in ODIs.
• The move comes amid a dramatic 96% fall in net foreign direct investment (FDI) in 2024-25, partly due to increased outward investment and repatriation by foreign investors.
• Since mid-2022, regulations allow companies more freedom to write off unviable overseas investments, prompting banks to adopt a cautious approach.

Overseas Direct Investment (ODI)

Overseas Direct Investment (ODI) is when Indian companies or individuals invest in businesses outside India. This can be done in two main ways – by setting up a Joint Venture (JV) with a foreign partner or by creating a Wholly-Owned Subsidiary (WOS) in another country.

Purpose – To expand their operations, access new markets, benefit from resources, or diversify risks.

For example – An Indian car company opens a factory in another country to take advantage of lower labour costs. However, sectors like real estate and banking are not allowed for ODI.

Read more>>

ET

4. SEBI Proposes Definitions for Algorithmic and Proprietary Trading in Broker Regulations

Context:

The Securities and Exchange Board of India (SEBI) has proposed to revise stock brokers’ regulations by including definitions for algorithmic trading and proprietary trading, which are currently not defined under existing rules.

Proposals

Algorithmic Trading:

Proposed Definition: Defined as any order generated or placed using automated execution logic.

What is Algorithmic Trading?

A process where trades are executed automatically using computer programs based on predefined rules like price, time, or volume thresholds far faster than a human could.

Proprietary Trading:

Proposed Definition: To be formally incorporated in the broker regulations, aligning with current market practices.

What is Proprietary Trading?

Proprietary trading refers to the practice where a brokerage firm, investment bank, or financial institution trades stocks, bonds, derivatives, currencies, or other financial instruments using its own capital rather than client funds. The goal is to earn direct profits from market opportunities instead of earning only commissions from client trades.

Other Proposals:

• Execution Only Platform: Proposed to mean any digital/online platform facilitating transactions such as subscription, redemption, and switch transactions in direct mutual fund plans.
• Access to NDS-OM Platform: Stock brokers may be allowed access to the Negotiated Dealing System-Order Matching (NDS-OM) platform, currently used by banks and primary dealers for government securities trading.
• Regulatory Alignment: Transactions by stock brokers on other platforms will remain under the purview of the respective regulators or authorities.

ET

5. RBL Bank Partners with CAMSPay to Launch Digital Payment Gateway for Enterprises

Context:

RBL Bank has partnered with CAMSPay, the payments arm of CAMS, to introduce a new digital payment gateway platform catering to Indian enterprises.

Key Highlights:

• Partnership Role: RBL Bank will act as the merchant acquiring settlement service partner, while CAMSPay provides payment technology innovation.
• Platform Features:
  • Real-time settlement capabilities
  • Secure card processing
  • Real-time analytics
  • Automated reconciliation
  • Open API–based settlement services

Digital Payment Gateway Platforms

• A Digital Payment Gateway is an online service that acts as a bridge between a merchant’s website/app and the bank/payment network to process electronic transactions securely.
• It authorizes and facilitates the transfer of funds from the customer’s account to the merchant’s account.

BL

6. SBI Launches Special Personal Loan Scheme for Agniveers

Context:

State Bank of India (SBI) has introduced a special personal loan scheme for Agniveers serving under the Government’s Agnipath recruitment programme, launched on the occasion of India’s 79th Independence Day.

Key Highlights:

• Loan Amount – Up to ₹4 lakh for Agniveers with an SBI salary account.
• Collateral – No collateral required.
• Repayment Tenure – Matches the term of the Agnipath scheme for flexibility.

Objective

• To provide financial support and convenience to Agniveers during and after their service, easing their transition to civilian life.

BL

Agriculture

1. NABARD, APGB Partner with Aqua Exchange for IoT-Enabled Shrimp Farming Loans

Context:

The National Bank for Agriculture and Rural Development (NABARD) and Andhra Pradesh Grameen Bank (APGB) have signed a Memorandum of Understanding (MoU) with Aqua Exchange Agritech Pvt. Ltd. to pilot an innovative financing model for shrimp farmers in Andhra Pradesh.

Key Highlights:

• Pilot Project: Introduces IoT-enabled loans for shrimp farmers to monitor water quality, feed usage, and disease control in real time.
• Objective: Bring farmers into the formal credit system, reduce reliance on informal lenders, and enhance productivity and sustainability.
• Loan Disbursement: Loan sanction letters worth ₹1.25 crore were issued to five farmers, along with IoT devices.
• Participants: NABARD, APGB, Union Bank of India, and Aqua Exchange officials attended the signing in Vijayawada.

Significance:

• Promotes sustainable aquaculture practices and risk mitigation through technology.
• If successful, the model could be scaled across Andhra Pradesh, supporting India’s shrimp export industry.

Parallel Initiative – Tribal Development:

• NABARD sanctioned ₹3.46 crore for a six-year tribal development project in Buttayagudem and Polavaram mandals, Eluru district.
• Targets families from Particularly Vulnerable Tribal Groups (PVTGs).
• Focus on mango and cashew orchards with supplementary border crops.

IE

Facts To Remember

1. RBI permits transition to continuous cheque clearance

The Reserve Bank of India (RBI) has decided to transition the Cheque Truncation System (CTS) from the current approach of batch processing to continuous clearing with settlement on realisation in two phases.

2. ICICI Bank trims S/B minimum balance to ₹15,000 from ₹50,000

In a U-turn, ICICI Bank has slashed the minimum monthly average balance (MAB) requirement to ₹15,000 from the earlier steep hike to ₹50,000, citing “valuable feedback” from customers.

3. Rohit rises to second, Gill retains top spot in ODI rankings

Rohit Sharma has risen to the No. 2 spot in the latest ICC ODI rankings for batters released. With 756 rating points, Rohit sits just behind India’s Test captain Shubman Gill (784 points). Babar Azam slipped to No. 3 while Virat Kohli held the fourth position with 736 points.

4. Rohith Krishna is India’s 89th GM

Rohith Krishna S. has always been good in academics. He, however, felt the pursuit of excellence in education slowed down his quest to become a chess Grandmaster. 

5. SEBI Bars Wadhawan Brothers and Others, Imposes ₹120 Crore Penalty

The Securities and Exchange Board of India (SEBI) has barred Kapil Wadhawan, former chairman of Dewan Housing Finance Corporation Ltd (DHFL), his brother Dheeraj Wadhawan, and four others from accessing the securities market for five years. A cumulative penalty of ₹120 crore has also been imposed.

Daily Current Affairs Quiz
15 & 16 August, 2025

National Affairs

1. Mission Sudarshan Chakra

Context:

On India’s 79th Independence Day (15th August 2025), the Prime Minister announced the launch of Mission Sudarshan Chakra, a landmark defence initiative to safeguard India’s strategic, civilian, and religious sites from potential enemy attacks.

About Mission Sudarshan Chakra

• What it is?
  • A national security mission to build an advanced, multi-layered shield protecting vital installations across India.
  • Inspired by the mythological Sudarshan Chakra of Lord Krishna, blending cultural ethos with modern defence technology.
  • Nodal Ministry: Ministry of Defence.
• Objectives:
  • Develop indigenous, research-based security systems for multi-domain threats (air, land, sea, cyber).
  • Promote self-reliance (Aatmanirbhar Bharat) in advanced defence technology.
  • Provide integrated protection for critical infrastructure, urban centres, and sacred sites.
• Key Features:
  • Multi-Layered Defence: Surveillance, interception, and counter-attack capabilities.
  • Comprehensive Coverage: Security shield for strategic, civilian, and religious places.
  • Advanced Technology: AI-enabled radar tracking, cyber defence, and physical protection.
  • Indigenous Development: Fully designed, developed, and manufactured in India.
  • Long-Term Plan: Gradual expansion and upgradation of the system till 2035.

IE

2. National Deep Water Exploration Mission

Context:

On the occasion of the 79th Independence Day, the Prime Minister of India announced the launch of the National Deep Water Exploration Mission to accelerate the discovery of offshore oil and gas reserves. The initiative will focus on areas such as the Andaman Sea and deep waters off the Andhra coast, with the goal of achieving energy self-reliance.

About the Mission

• What it is:
  • A flagship energy security initiative to explore untapped oil and gas reserves beneath India’s seabed.
  • Designed to operate in mission mode for accelerated offshore exploration.
• Nodal Ministry: Ministry of Petroleum and Natural Gas.
• Supporting Agencies: Directorate General of Hydrocarbons (DGH) and allied research institutions.

Key Features:

• Deep-Water Focus: Targeting unexplored offshore zones like the Andaman-Nicobar basin and Andhra coast.
• Policy Reforms Backing: Linked with the Open Acreage Licensing Policy (OALP) and recent exploration-friendly legislative changes.
• Large-Scale Bidding: Opening over 1 million sq km of erstwhile ‘No-Go’ areas for exploration.
• Advanced Technology: Use of seismic surveys, modern drilling techniques, and AI-enabled exploration tools.
• Public-Private Collaboration: Encouraging both domestic and global players to invest.

PIB

3. Next-Generation GST Reform

Context:

On 79th Independence Day, the Prime Minister of India announced a major restructuring of the Goods and Services Tax (GST) to be rolled out by Diwali 2025. The reform is aimed at simplifying tax slabs and reducing the burden on common citizens while enhancing economic growth.

About GST Revamp – Next-Gen Reform

• What It Is?
  • A complete restructuring of the GST framework.
  • Replaces the current multi-slab system with a simplified two-slab regime (5% & 18%), plus a special 40% rate for select goods.
• Objectives
  • Reduce tax burden on essential and standard goods.
  • Boost consumption and demand in the economy.
  • Simplify compliance for MSMEs and small businesses.
  • Stimulate long-term growth by creating a more predictable tax regime.

Proposed Features

• Two Core Rates:
  • 5% → Merit goods & essential items.
  • 18% → Standard goods & services.
• Special 40% Rate: For 7 items (tobacco, alcohol, pan masala, online betting, etc.).
• Slab Adjustments:
  • 99% of current 12% slab items to move to 5%.
  • ~90% of current 28% slab items to move to 18%.
• Zero Rate: Continued exemption for essential food items.
• Sectoral Considerations: Labour-intensive exports (e.g., diamonds) to retain present rates.
• GST Council Review: Proposal circulated to states & Group of Ministers (GoM) for final approval before rollout.

Mint

Banking/Finance

1. Payment Aggregator (PA) vs. Third-Party Payment Aggregator (TPA)

Context:

The Indian Railway Catering and Tourism Corporation (IRCTC), India’s largest online ticketing platform, is set to expand into the fintech space. Its wholly-owned arm, IRCTC Payments Limited, has received an in-principle approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator (PA). Currently, IRCTC uses multiple third-party aggregators and its in-house gateway iPay.

1. Payment Aggregator (PA)

• An entity that facilitates e-commerce sites and merchants to accept payment instruments (credit cards, debit cards, UPI, wallets, etc.) from customers.
• Role:
  • Collects funds from customers.
  • Pools the money into an escrow/nodal account.
  • Settles it to the respective merchants after a set time.
• Regulation:
  • Must obtain RBI authorisation under the Payment and Settlement Systems Act, 2007 (PSS Act).
  • Example: Razorpay, PayU, Cashfree, BillDesk.
• Direct Handling of Funds: Yes, they directly handle customer funds before settlement.

2. Third-Party Payment Aggregator (TPA / Third-Party PA)

• An intermediary that provides technology infrastructure to connect merchants with banks/payment gateways but does not handle funds directly.
• Role:
  • Acts as a technology service provider.
  • Payment flow is routed directly to the bank/authorised PA’s nodal account.
  • Does not pool or settle funds.
• Regulation:
  • Since they don’t handle funds, RBI does not mandate separate PA authorisation.
  • They must, however, comply with outsourcing & IT security guidelines issued by RBI.
• Examples: Some fintech companies that only provide APIs/SDKs to merchants without touching the money.

Key Difference

Feature	Payment Aggregator (PA)	Third-Party PA (TPA)
Handles Funds?	Yes, collects & settles merchant payments	No, only provides tech platform
RBI Authorisation	Mandatory under PSS Act	Not required (but subject to IT/outsourcing norms)
Nodal/Escrow Account	Must maintain	Not applicable
Examples	Razorpay, PayU, BillDesk	Juspay (tech layer), Pine Labs (when acting only as API)

BS

2. Participating (Par) Products in Insurance

Context:

Indian life insurers are rebalancing their product mix towards participating (par) insurance products, moving away from unit-linked (ULIPs) and aggressively priced non-participating (non-par) products. This comes in response to volatile equity markets, falling interest rates, and pricing competition, which have increased balance sheet risks.

What are Par Products?

• Par Products (Participating Policies) are life insurance policies where the policyholder is eligible to receive a share in the profits (surplus) of the insurer, in the form of bonuses or dividends.
• These are called “with-profit policies”.
• Surplus depends on investment returns, expenses, and claims experience.
• Unlike non-par products (which offer fixed guaranteed returns but expose insurers to risk in low-rate environments) or ULIPs (where the policyholder bears full market risk), par products balance security with growth potential.

Key Features

• Profit Sharing
  • Policyholders share in the insurer’s distributable surplus, usually declared annually.
  • Bonuses are not guaranteed and depend on the insurer’s financial performance.
• Types of Bonuses
  • Reversionary Bonus: Declared annually, added to the sum assured.
  • Cash Bonus: Paid out immediately.
  • Terminal Bonus: Paid at maturity or death.
• Premium
  • Slightly higher than non-par products, since part of the premium funds the bonus pool.
• Returns
  • Combines guaranteed benefits (like sum assured) with non-guaranteed bonuses.
  • Provides long-term savings + protection.

BS

3. Peer-to-Peer (P2P) Collect in Payments

Context:

The National Payments Corporation of India (NPCI) has announced that it will discontinue the peer-to-peer (P2P) collect request feature on UPI starting October 1, 2025. The decision comes amid rising cases of fraud and misuse linked to this feature.

What is Changing?

• Collect Request Feature:
  • Allowed a UPI user to send a payment request to another user (e.g., to split bills or remind someone to repay money).
  • The recipient could accept or decline the request.
• Problem: Fraudsters increasingly misused this feature by tricking unsuspecting users into approving bogus payment requests.

Peer-to-Peer (P2P) Collect

• P2P Collect is a feature in UPI (Unified Payments Interface) that allows a user to request money from another user, instead of sending it.
• Unlike a normal transfer (where the payer initiates), here the receiver initiates a “collect request” and the payer just needs to approve it.

Peer-to-Peer (P2P) in Payments

• Peer-to-Peer (P2P) payments are digital money transfers between two individuals without involving cash or physical instruments.
• Transactions happen using mobile apps, UPI IDs, QR codes, phone numbers, or bank accounts.

ET

4. Credit-to-Deposit Ratio Remains Below 80%: CareEdge Ratings

Context:

According to CareEdge Ratings, the credit-to-deposit (CD) ratio in Indian banks remains below 80% as credit offtake continues to lag deposit growth.

Credit-to-Deposit (CD) Ratio

• The Credit-to-Deposit (CD) Ratio shows the proportion of a bank’s deposits that have been lent out as credit.
• Formula:

Purpose / Importance

• Measures how efficiently a bank is using its deposits.
• Indicates the health and liquidity of the banking system.
• Used by RBI as a key financial stability indicator.

TOI

5. RBI to Introduce Continuous Cheque Clearing System

Context:

The Reserve Bank of India (RBI) has announced a major reform in cheque processing by shifting from batch-based Cheque Truncation System (CTS) to continuous cheque clearing, aimed at faster settlements and enhanced customer convenience.

Current Process:

• Cheques are cleared in batches with a T+1 day cycle (up to 2 working days).
• Banks collect, scan, and process cheques in scheduled clearing sessions.

New System – Continuous Clearing:

• Cheques will be scanned, presented, and processed throughout business hours (10 AM – 4 PM).
• Clearing time: reduced to a few hours within the same day.
• Drawee bank will give positive/negative confirmation in real time.

Post-Settlement Rules:

• Clearing house shares results with presenting bank.
• Funds to be released to customers immediately, max within 1 hour after settlement.

Objectives:

• Faster cheque clearance (closer to digital payments).
• Lower settlement risks.
• Enhanced operational efficiency for banks.
• Improved customer convenience.

TOI

6. SBI Life Launches “Smart Shield Plus” Term Insurance

Context:

SBI Life Insurance has launched a new term insurance product—Smart Shield Plus—to meet the evolving protection needs of modern consumers.

Key Features

• Type of Plan: Individual, non-linked, non-participating, pure risk life insurance offering life cover without an investment component.
• Plan Options (3 Choices):
  1. Level Cover: Fixed sum assured throughout.
  2. Increasing Cover: Sum assured increases annually by 5%, up to a maximum of 200%.
  3. Level Cover with Future Proofing: Option to increase cover at key life stages (marriage, childbirth, etc.) without medical underwriting.
• Flexibility & Coverage:
  • Whole-life protection (coverage up to age 100) and limited-term options.
  • Multiple premium payment term options.
  • Flexible payouts: lump sum, installments, or a combination.
• Accessibility & Innovation:
  • Available through both digital and offline channels with simplified documentation.
  • Affordable premiums with discounted rates for female lives.
• Objective: To provide a future-ready plan that adapts to changing responsibilities across life stages.

ET

7. Punjab & Sind Bank Launches ‘PSB Naari Shakti’ Savings Account

Context:

Punjab & Sind Bank (PSB) has launched a special savings account named “PSB Naari Shakti” to empower women by offering financial as well as health-related benefits.

Key Features:

• Variants: Two options – PSB Pink and PSB Smile.
• Health Coverage:
  • Cancer cover
  • Group accidental insurance
  • Free annual preventive health check-ups
• Financial Benefits:
  • Complimentary Platinum RuPay debit card for seamless digital transactions
  • Exclusive savings account privileges tailored for women customers
• Objective: To strengthen women’s financial independence while addressing their healthcare needs.

About Punjab & Sind Bank

• Founded: 24 June 1908
• Headquarters: New Delhi, India
• MD & CEO: Swarup Kumar Saha

Facts To Remember

1. Nagaland Governor L. Ganesan no more

L. Ganesan, 80, Governor of Nagaland and former senior BJP leader from Tamil Nadu, passed away in Chennai.

2. Keymer remains undefeated; Pranesh wins Challengers crown

German Vincent Keymer capped a memorable triumph in the Quantbox Chennai Grandmasters chess tournament 2025 with a convincing win in the final round of the Masters section over American GM Ray Robson.

3. AU Small Finance Bank to open 51 branches on Independence Day ahead of universal bank transition

AU Small Finance Bank is expanding its branch network in preparation for its conversion into a Universal Bank. It will launch 51 branches across the country on August 15, 2025, coinciding with India’s 79th Independence Day.