Current Affairs September 2025

Daily Current Affairs Quiz
31 August & 1 September, 2025

International Affairs

1. State Energy Efficiency Index (SEEI) 2024

Source: PIB

Context:

On 29 August 2025, the Bureau of Energy Efficiency (BEE) released the State Energy Efficiency Index (SEEI) 2024, in collaboration with the Alliance for an Energy Efficient Economy (AEEE). This is the sixth edition since its launch in 2018.

About SEEI:

• What it is: A composite index to measure, track, and compare the progress of Indian states and UTs on energy efficiency.
• Objective:
  • Drive data-backed policy action.
  • Encourage inter-state competition.
  • Support India’s net-zero 2070 vision.
• Coverage: 36 States/UTs, evaluated using 66 indicators across 7 sectors — Buildings, Industry, Transport, Agriculture, DISCOMs, Municipal Services, and Cross-sector initiatives.

Performance Bands:

• Front Runners: >60% score
• Achievers: 50–60%
• Contenders: 30–50%
• Aspirants: <30%

Top Performers (SEEI 2024):

• >15 MToE category: Maharashtra
• 5–15 MToE category: Andhra Pradesh
• 1–5 MToE category: Assam
• <1 MToE category: Tripura

Read more>>

2. Shanghai Cooperation Organisation (SCO)

Context:

Prime Minister Narendra Modi met Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin, China (hosting for the 5th time). Theme of the summit is “Upholding the Shanghai Spirit: SCO on the Move”. The meeting comes amid gradual improvement in bilateral engagement after recent disengagement along the India-China border.

About Shanghai Cooperation Organization (SCO)

• Nature: Regional intergovernmental organisation for political, economic, and security cooperation.
• Established: 2001 (Shanghai), evolved from the Shanghai Five (1996).
• Headquarters: Beijing, China.
• Membership:
  • Permanent Members (8): China, Russia, India, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan.
  • Observers: Afghanistan, Belarus, Mongolia, Iran (progressing to full membership).
  • Dialogue Partners: Turkey, Sri Lanka, Nepal, Egypt, Saudi Arabia, Qatar, etc.

Objectives:

• Promote regional peace and stability.
• Cooperate against terrorism, extremism, and separatism.
• Strengthen trade, energy, and connectivity.
• Encourage cultural and people-to-people exchanges.
• Uphold multipolarity and non-interference in internal affairs.

Read more>>

3. Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY)

Announced by: PM Narendra Modi during his 12th Independence Day address (15 August 2025, Red Fort)
Outlay: Nearly ₹1 lakh crore
Target: 3.5 crore jobs in two years
Aim: Bridge the journey from Swatantra Bharat to Samriddha Bharat by supporting massive employment generation.

Key Features of the Scheme

Part A – Support to First-Time Employees

• Eligibility: First-time employees registered with EPFO, with salary up to ₹1 lakh.
• Benefit: One month’s EPF wage, up to ₹15,000, given in two instalments.
  • 1st instalment: After 6 months of service.
  • 2nd instalment: After 12 months of service + completion of a financial literacy programme.
• Savings Incentive: A portion of the benefit will be locked in a savings instrument/deposit account.

Part B – Incentives for Employers

• Eligibility: Employers hiring new employees with salaries up to ₹1 lakh.
• Benefit: Up to ₹3,000 per month per employee for 2 years.
• Special Focus: Manufacturing sector, where incentives will extend to the 3rd and 4th years.

Incentive Payment Mechanism

• Employees (Part A): Payment via DBT using Aadhaar Bridge Payment System (ABPS).
• Employers (Part B): Direct credit into PAN-linked accounts.

4. Govt to Launch AI-Based Adivasi Language Translation App ‘Aadi Vaani’

Context:

The Ministry of Tribal Affairs will launch the beta version of ‘Aadi Vaani’, an AI-based translation model for Adivasi languages, on Monday. The app will be tested under the Adi Karmayogi initiative for capacity-building in tribal districts.

Key Highlights:

• Languages Covered (Phase-1):
  • Bhil, Santal, Gond, Munda, Kui, Garo.
• Features of Aadi Vaani:
  • Translates speech and text between Hindi/English and the six Adivasi languages (both ways).
  • Built on a database of 1 lakh+ sentences per language with the help of experts.
  • Incorporates Adivasi folklore, traditional songs, and public speeches (including those of PM Modi) for training.

Adi Karmayogi Initiative

The Ministry of Tribal Affairs has launched the Adi Karmayogi initiative under the Dharti Aba Janjatiya Gram Utkarsh Abhiyaan to create a cadre of 20 lakh “change leaders” for last-mile delivery of welfare schemes in tribal villages. The Adi Karmayogi Initiative was officially launched on August 19, 2025, by the Ministry of Tribal Affairs.

About the Initiative

• Aims to build a cadre of 20 lakh “change leaders” in tribal villages.
• Focus on self-driven community solutions instead of dependency on external support.
• Each tribal village will prepare a “Village Vision 2030” plan as an aspirational roadmap.
• Adi Seva Kendras to be set up in 1 lakh villages as single-window service centres for welfare schemes.

Banking/Finance

1. RBI Data Shows Slow Credit and Deposit Growth in Rural India

Source: BL

Context:

RBI’s latest data highlights that Scheduled Commercial Banks (SCBs) have struggled to mobilise deposits and expand lending in rural India (“Bharat”) compared to semi-urban, urban, and metropolitan areas over the last 25 years.

Key Highlights:

Credit Growth (2000–2025)

• Rural loans increased 30 times but still less than the overall 41 times average.
• Cities and metros saw faster loan growth, mostly due to retail loans like housing, vehicles, and personal credit.
• Meaning: How much bank lending (loans) has grown in rural, semi-urban, urban, and metro areas.

Deposit Growth (2000–2025)

• Rural deposits rose 20 times, lower than the overall 28 times average.
• Semi-urban deposits grew 22 times, urban 26 times, while metros grew the fastest at 36 times.
• Meaning: How much money people and businesses keep in banks as savings, current accounts, or fixed deposits.

Credit-Deposit Ratio (CDR)

• Went up from 56% in 2000 to 80% in 2025.
• Meaning: Shows how much of the deposits collected by banks are being given out as loans.
• Higher ratio means banks are lending more compared to the deposits they get.

Urbanisation Trends

• Urban population increased from 28% in 2000 to 37% in 2024.
• Rural population reduced from 72% to 63% in the same period.
• Meaning: More people are moving to cities, fewer people live in villages compared to before.

Important Concept You Should Know for RBI Exam

About Scheduled Commercial Banks (SCBs)

Aspect	Details
Meaning	Banks listed in the Second Schedule of the RBI Act, 1934.
Facilities Available	Eligible to borrow from RBI, use clearinghouse facilities, and access liquidity support.
Types Included	1. Public Sector Banks 2. Private Sector Banks 3. Foreign Banks in India 4. Regional Rural Banks (RRBs)
Eligibility (Section 42(6), RBI Act, 1934)	– Capital Requirement: Minimum paid-up capital & reserves of ₹5 lakh (practically higher required). – Depositor Safety: Should not conduct business harmful to depositors. – Affairs Management: Must be in the interest of depositors and the public. – Compliance: Must satisfy RBI that it can follow RBI Act & Banking Regulation Act.

2. RBI Likely to Approve Fino Payments Bank’s Conversion to Small Finance Bank

Context:

The Reserve Bank of India (RBI) is likely to approve Fino Payments Bank’s request for conversion into a Small Finance Bank (SFB) by March 2026, sources confirmed. This development comes after RBI recently approved AU Small Finance Bank’s (AU SFB) application to become a Universal Bank on August 7, 2025. Fino Payments Bank is a type of Scheduled Commercial Bank. 

Scheduled Commercial Bank (SCB) vs Small Finance Bank (SFB)

Feature	Scheduled Commercial Banks (SCBs)	Small Finance Banks (SFBs)
Definition	Banks listed in the Second Schedule of RBI Act, 1934; includes Public, Private, Foreign, and RRBs.	A type of Scheduled Bank focused on financial inclusion for underserved sections.
Scope of Operations	Universal banking – can serve all segments (corporates, retail, MSMEs, rural, urban, international).	Primarily serve small borrowers, MSMEs, farmers, low-income groups.
Priority Sector Lending (PSL)	Must lend at least 40% of ANBC to PSL.	SFBs must allocate at least 60% of their ANBC (or Credit Equivalent of Off-Balance Sheet Exposures, whichever is higher) to priority sectors.
Branch Requirement	No specific rural mandate (but regulated by RBI norms).	At least 25% of branches must be in unbanked rural areas.
Examples	SBI, HDFC Bank, ICICI Bank, RRBs, etc.	AU SFB, Equitas SFB, Ujjivan SFB, Jana SFB, etc.
Capital Requirement	Higher; varies depending on bank type (Private, Public, RRBs).	Minimum ₹200 crore paid-up capital (at licensing).
Nature	Broad-based, covers the entire economy.	Specialized, focused on financial inclusion.

Eligibility to Become a Small Finance Bank (SFB)

• Promoters: Individuals or professionals with at least 10 years’ experience in banking/finance, and entities like NBFCs, MFIs, and Local Area Banks (LABs).
• Resident Requirement: Only resident individuals or entities owned and controlled by residents can promote an SFB.
• Foreign Shareholding: Allowed as per FDI policy for private banks (up to 74%).
• Minimum Capital: ₹200 crore paid-up capital at the time of licensing.
• Promoter Contribution: Minimum 40% of paid-up capital (locked for 5 years), to be brought down to 26% within 12 years.
• Fit & Proper: Promoters must meet RBI’s “fit and proper” norms – integrity, sound track record, and financial health.
• Activities Allowed: Can accept deposits and lend, but mainly to underserved groups like small businesses, farmers, MSMEs, and low-income households.
• Branch Rule: At least 25% of branches must be in unbanked rural centres.
• Priority Sector Lending (PSL): 75% of adjusted net bank credit must go to PSL categories.

3. RBI Imposes Penalty on Bandhan Bank

Source: ET

Context:

The Reserve Bank of India (RBI) imposed a penalty of ₹44.70 lakh on Bandhan Bank following a supervisory inspection related to its financial position as of March 31, 2024. This highlights the regulator’s continued vigilance over banks’ adherence to compliance norms.

Key Highlights:

• Reason for Penalty:
  • Payment of commission-based remuneration to certain employees—contrary to RBI regulations.
  • Manual interventions in backend account data without properly capturing audit trails/logs with user details.
• Statutory Basis:
  • Penalty imposed under powers conferred by Section 47A(1)(c) read with Section 46(4) of the Banking Regulation Act, 1949.
  • Violations included breach of Section 10(1)(b)(ii) of the Act and RBI’s September 14, 2020 circular on automation of income recognition, asset classification and provisioning.

Important Sections For Exams

• 47A(1)(c): RBI’s power to impose penalty on banks for non-compliance.
• 46(4): Defines the maximum penalty amount (₹1 crore + ₹50,000/day for continuing default).
• Section 10(1)(b)(ii): Bars banks from employing persons convicted of serious offences or found unfit to protect depositor/public interest.
• RBI’s role: Ensures banks comply with this, safeguarding governance and depositor confidence.

4. SEBI’s Cybersecurity Framework to Ease Burden

Source: ET

Context:

The Securities and Exchange Board of India (SEBI) has issued clarifications on its Cybersecurity and Cyber Resilience Framework (CSCRF), introducing graded compliance norms to reduce the burden on smaller market intermediaries.

Key Highlight:

• Large entities (e.g., top brokers, clearing members, depositories): Must comply with stringent cybersecurity controls and strict timelines due to their higher systemic risk.
• Mid-sized entities: Moderate compliance requirements with some relaxations.
• Small entities (small brokers, portfolio managers, RIAs, etc.): Simplified norms and extended timelines to reduce operational burden.

Objectives:

• Ensure robust cyber resilience across the securities ecosystem.
• Apply “proportional regulation” so that smaller intermediaries are not overburdened.
• Strengthen investor confidence by protecting against cyber threats.

Cybersecurity and Cyber Resilience Framework (CSCRF) – SEBI

The CSCRF is a regulatory framework introduced by the Securities and Exchange Board of India (SEBI) to safeguard the securities market from cybersecurity risks and ensure that intermediaries can withstand, respond to, and recover from cyberattacks.

Objectives:

• Protect investors’ data and market infrastructure.
• Ensure continuity of critical market operations despite cyber incidents.
• Enhance trust and resilience in India’s securities market.

5. Unit Linked Insurance Plans (ULIPs)

Context:

The government has recently revised the tax treatment of Unit Linked Insurance Plans (ULIPs), removing earlier ambiguities and bringing them in line with other market-linked investment products like mutual funds.

What are ULIPs?

• ULIPs combine life insurance cover + investment in equity, debt, or hybrid funds.
• A portion of the premium provides life insurance, while the remaining is invested.
• They have a lock-in period of 5 years, but long-term holding is advised for wealth creation.

Recent Update

• ULIPs not meeting exemption conditions are now treated as capital assets.
• A capital asset is a long-term property, held for personal or investment purposes, including tangible assets like land, buildings, and machinery.
• Gains from such ULIPs will be taxed as capital gains, instead of enjoying blanket exemptions.
• This applies uniformly to ULIPs, including those issued before February 1, 2021, ending earlier confusion over tax treatment.

Section 10(10D) Exemption Conditions

To qualify for tax exemption under this section:

1. Premium ≤ 10% of the sum assured (for policies issued after April 1, 2012).
2. Annual premium ≤ ₹2.5 lakh.
3. If conditions are not met:
   • ULIP policy gains → Capital gains tax
   • Non-ULIP policies → Taxed as income from other sources

Significance of the Amendment

• Brings uniformity in taxation of ULIPs regardless of issuance date.
• Simplifies tax compliance and enables accurate computation of liabilities.
• Aligns ULIPs with modern investment norms, making them comparable with mutual funds.
• Encourages investors to make informed financial planning decisions.

6. Foreign Investors Pull Out ₹34.99 Crore from Indian Equities

Source: TOI

Context:

Foreign Portfolio Investors (FPIs) withdrew ₹34,993 crore (~$4 billion) from Indian equities in August 2025, the sharpest sell-off in six months. The move was triggered by steep US tariffs on Indian exports, high domestic valuations, and disappointing Q1 corporate earnings in some sectors.

Foreign Portfolio Investors (FPIs) in India

Who are they?

• FPIs are overseas investors who invest in Indian stocks, bonds, or mutual funds for short- to medium-term gains.
• They don’t control or manage companies; their investments are purely financial and easily reversible.

FPI vs FDI (Key Difference)

• FPI (Foreign Portfolio Investment):
  • Short-term, in stocks/bonds.
  • No control over companies.
  • Highly volatile and quick entry/exit.
• FDI (Foreign Direct Investment):
  • Long-term, in factories, infrastructure, or companies.
  • Gives ownership and management control.
  • Stable and less affected by short-term market swings.

Why do FPIs Pull Out Money?

• Global factor: US tariffs of up to 50% on Indian exports hurt sentiment.
• Domestic factor: High Indian valuations compared to cheaper global markets.
• Corporate earnings: Weaker-than-expected Q1FY26 results in some sectors.

Impact of FPI Outflows on Indian Market

• Stock Market: Heavy selling leads to market correction or volatility.
• Currency: Rupee tends to weaken as dollars move out.
• Liquidity: Outflows reduce liquidity in capital markets.
• Investor Sentiment: Domestic investors may panic, worsening the sell-off. Also highlights FPIs’ shift towards primary markets (IPOs) and debt instruments.

Agriculture

1. Krishi Nivesh 2.0

Source: Mint

Context:

The government is expanding digital technology use in agriculture by integrating public-private partnership (PPP) schemes into the Krishi Nivesh portal, launched in September 2024. This move aims to streamline agricultural investments, improve service efficiency, and attract private sector participation.

Krishi Nivesh Portal

Launched by the Ministry of Agriculture & Farmers’ Welfare to improve ease of doing agri-business and attract private investments in Indian agriculture.

What it is:

• A single-window digital platform for investors, agri-entrepreneurs, FPOs (Farmer Producer Organisations), and start-ups.
• Helps in exploring investment opportunities, government schemes, subsidies, and state-level incentives in the agriculture sector.

Objectives:

• Bring transparency and efficiency in agri-investments.
• Encourage private sector participation in agriculture and allied sectors.
• Support rural employment and farmer incomes through agri-infrastructure growth.

Public-Private Partnership (PPP)

• A Public-Private Partnership (PPP) is a collaboration between the government and the private sector to finance, build, and operate projects that serve the public.

Reason for Integration

• Agriculture faces post-harvest losses of 6% annually (~₹1.2 trillion) due to gaps in storage, processing, and logistics.
• PPP expected to mobilize private capital and expertise to bridge infrastructure deficits.

2. India Produces Mono-Floral Lavender Honey in Kashmir

Source: TH

Context:

The Council of Scientific and Industrial Research – Indian Institute of Integrative Medicine (CSIR-IIIM), Pulwama (J&K), has for the first time produced mono-floral lavender honey, positioning India among a select group of countries like France, Spain, Italy, Bulgaria, England, and Turkey in the global premium lavender honey market.

What is Mono-Floral Honey?

• Honey derived majorly from nectar of a single flower type (≥80% of nectar source).
• Has distinct flavor, aroma, and medicinal properties based on the flower source.

Why Lavender Honey in Kashmir?

• Kashmir’s climatic conditions favor lavender cultivation, promoted under the “Aroma Mission” of CSIR-IIIM, Jammu.
• Confirmed with 61% lavender pollen concentration through scientific testing.
• Validated using advanced technologies like fluorescence and scanning electron microscopy.
• Beekeepers place hives near lavender farms to ensure bees collect nectar mainly from lavender.

Purple Revolution

• Lavender cultivation introduced in Kashmir in the 1970s (from Bulgaria).
• Expanded significantly since 2014, now spread over 750 hectares across J&K.
• Over 3,000 families involved; featured in 2024 Republic Day Parade tableaux.
• Farmers, especially women from Self Help Groups, are being trained in cultivation and beekeeping.

Benefits of Lavender Cultivation

• Pest-repellent due to antifungal, antimicrobial, and antibacterial properties.
• Enhances pollination in apple and plum orchards by supporting bee ecosystems.
• Provides farmers with high-value returns and boosts rural bio-enterprises.

Government’s Role

• National Beekeeping & Honey Mission (NBHM): Provides training, quality testing, and market linkages.
• CSIR Aroma Mission: Expanding lavender cultivation (“Purple Revolution”) in J&K.

Facts To Remember

1. WHO & India Collaborate to Standardise Yoga Training

In a first-of-its-kind initiative, the World Health Organization (WHO), in collaboration with India, is working to standardise yoga training practices to ensure it serves as a preventive, promotive, and rehabilitative intervention.

2. Union Minister Jyotiraditya Scindia launches India Mobile Congress- IMC 25 application

Union Communications Minister Jyotiraditya Scindia, today launched the India Mobile Congress- IMC 25 application in New Delhi. With AI-based suggestions, improved networking, and interactive elements, the app aims to enhance users’ experience at the Expo.

3. Educate Girls NGO wins Ramon Magsaysay Award 2025, becomes first Indian organisation to get the honour

An Indian non-profit organisation, ‘Foundation to Educate Girls Globally’, dedicated to mobilise community and government resources for girls’ education in rural and educationally disadvantaged areas of India, has been named a 2025 Ramon Magsaysay Awardee.

4. NeGD Achieves Pan-India Integration of Nearly 2,000 e-Government Services on DigiLocker and e-District Platforms

The National e-Governance Division (NeGD), under the Ministry of Electronics and Information Technology (MeitY), has achieved the digital India milestone by enabling Pan-India integration of nearly two thousand e-Government services on DigiLocker and e-District platforms.  

Daily Current Affairs Quiz
2 September, 2025

National Affairs

1. Unified District Information System for Education Plus (UDISE+) Report 2024-25

Source: PIB

Context:

The Ministry of Education has released the Unified District Information System for Education Plus (UDISE+) 2024-25 report, presenting the latest status of school education in India. While basic infrastructure like toilets and drinking water has achieved near-universal coverage, serious concerns remain around digital access, teacher shortages, and uneven enrolment trends.

What is UDISE+?

• Annual school data system (Grades I–XII) launched in 2018 to replace UDISE.
• Collects data from all government, aided, and private schools.
• Tracks infrastructure, enrolment, pupil-teacher ratio (PTR), training, digital readiness, health facilities, and the overall learning environment.

Key Findings of UDISE+ 2024-25

Digital Divide

• Computers available: 65% of schools, but only 58% functional.
• Internet access: 63% schools overall.
  • Govt. schools: 58.6%
  • Private schools: 77.1%
• Digital inequality persists, especially in rural and government schools.

Infrastructure

• Toilets: 98.6% schools
• Hand-wash facilities: 95.9%
• Drinking water: 99%
• However, 25,000+ schools still lack electricity, limiting digital learning.

Read more>>

2. DBT–BIRAC Launch High-Performance Biomanufacturing Platforms

Source: ET

Context:

The Department of Biotechnology (DBT) and Biotechnology Industry Research Assistance Council (BIRAC) launched High-Performance Biomanufacturing Platforms in New Delhi, under the BioE3 Policy. The initiative was inaugurated by Union Minister of State for Science & Technology, Jitendra Singh.

About High-Performance Biomanufacturing Platforms

• Nature: National network of advanced bio-foundries and biomanufacturing hubs.
• Purpose: Provides world-class tools, technologies, and infrastructure to scale bio-based innovations from lab to production.
• Policy Base: Part of the BioE3 (Bio-manufacturing to Bio-Economy by 2047) Policy.

Aims & Objectives

• Accelerate biomanufacturing and commercialization of innovations.
• Reduce import dependence in critical bio-based products.
• Foster green growth and contribute to a multi-trillion-dollar bioeconomy by 2047.
• Empower startups, SMEs, academia, and industry in biotechnology R&D.

Key Features

• 21 bio-enablers supported under BioE3 Policy.
• Priority Areas:
  • Microbial strains & smart proteins.
  • Probiotics & bio-based chemicals.
  • Cell therapies & mRNA-based medicines.
  • Marine bio-innovations & sustainable biofuels.
• Focus on climate alignment, Atmanirbhar Bharat, and Viksit Bharat 2047.
• Capacity building and employment generation across biotech value chains.

3. SEMICON India 2025

Source: TOI

Context:

At SEMICON India 2025, Prime Minister Narendra Modi unveiled India’s first homegrown semiconductor chip, named ‘Vikram’, marking a landmark step in India’s semiconductor ecosystem.

India Semiconductor Mission (ISM)

• Launched in December 2021 with an outlay of ₹76,000 crore, now nearly fully committed.
• Approvals granted for:
  • 1 chip fabrication unit
  • 1 compound semiconductor fabrication unit
  • 8 OSAT/ATMP units (Outsourced Semiconductor Assembly and Testing / Assembly, Testing, Marking, and Packaging).

• Participation in SEMICON India 2025 expected to double compared to the previous edition.

About Vikram Chip

The Vikram Chip is India’s first indigenously manufactured semiconductor chip, developed under the government’s Semicon India initiative to strengthen the domestic electronics manufacturing ecosystem. It was unveiled in 2025, marking a historic milestone for India’s entry into the global semiconductor value chain.

Key Features of Vikram Chip

• Developed at Micron’s Sanand facility in Gujarat, India’s first commercial semiconductor fabrication unit.
• Named after Dr. Vikram Sarabhai, the father of India’s space program.
• Built using 28nm technology node in the initial phase, with a roadmap toward advanced nodes.
• Designed for use in consumer electronics, telecom, automotive, and defense applications.
• Aligns with India’s vision of becoming a global semiconductor hub by 2030.

4. India–US Yudh Abhyas Army Exercise 2025

Source: PIB

Context:

India and the United States have begun their largest-ever edition of the Yudh Abhyas Army exercise at Fort Wainwright, Alaska, despite recent tariff-related trade tensions between the two nations.

About Yudh Abhyas:

• Type: Annual bilateral military exercise between the Indian Army and US Army.
• Focus Areas: Joint training in counter-terrorism, peacekeeping, high-altitude, and extreme cold climate warfare.
• Host (2025): United States, conducted in Alaska’s subarctic conditions.

Participants (2025):

• India: Soldiers from the Madras Regiment.
• United States: 5th Infantry Regiment “Bobcats” of the Arctic Wolves Brigade Combat Team, 11th Airborne Division.

Banking/Finance

1. Deutsche Bank Plans to Exit Indian Retail Banking

Source: Mint

Context:

Deutsche Bank is reportedly exploring the sale of its Indian retail banking assets, inviting bids from domestic and foreign lenders. This comes as part of its global strategy to make retail operations more profitable and streamline branch presence.

Retail Banking Assets

Retail banking assets are the loans, deposits, and services that a bank provides directly to individual customers (not businesses or corporates). Think of it as the part of a bank’s business that deals with “common people”—your savings account, home loan, credit card, etc.

Examples: Deposits + Loans + Cards + Services = Retail Banking Assets

Difference from Corporate Banking

Retail Banking	Corporate Banking
Serves individuals and households	Serves companies, firms, large institutions
Products: savings accounts, home loans, credit cards	Products: business loans, working capital, trade finance, treasury services
Many small customers	Few large customers

RBI Guidelines and Legal Provisions

When a bank (foreign or Indian) wants to sell its retail assets in India, RBI’s approval is mandatory. Key laws and rules:

• Banking Regulation Act, 1949
  • Section 44A → Deals with voluntary amalgamation/transfer of banking business.
  • Section 35B → Requires RBI’s prior approval for certain management decisions (including transfers).
  • Section 12B → RBI approval needed for acquisition of more than 5% stake in a bank.
• Foreign Exchange Management Act (FEMA), 1999
  • Foreign banks must comply with FEMA norms while selling/disposing assets in India.
• RBI Guidelines on Amalgamation of Private Sector Banks (2016)
  • Even if only a portfolio or branch is transferred, the acquiring bank must satisfy RBI’s “fit and proper” criteria.
• Customer Protection Rules
  • RBI ensures no disruption to depositors/loan customers.
  • Buyer bank must guarantee seamless transfer of accounts, cards, and services.

About Deutsche Bank in India

• Presence: Since 1980s.
• Employees: 22,000+ in India (largest base outside Germany, mostly back-office/tech).
• Operations: Retail, corporate banking, investment banking, treasury, derivatives, wealth management.

2. RBI Update on Withdrawal of ₹2000 Banknotes

Source: RBI

Context:

The Reserve Bank of India (RBI) announced the withdrawal of ₹2000 denomination banknotes on May 19, 2023. RBI periodically updates the status of returned notes. As of August 31, 2025, almost all ₹2000 notes have been returned.

Background

₹2000 note was introduced in November 2016 (post-demonetisation) to quickly meet currency needs.

RBI’s Clean Note Policy

RBI Act, 1934

• Section 24: RBI’s power to determine denominations.
• Section 26(2): Central Government, on RBI’s recommendation, can declare any banknote to cease as legal tender.

Impact

• On Public: Minimal impact since deposits/exchanges were allowed widely.
• On Economy: Improved currency management, reduced hoarding of high-value notes.
• On Banks: Temporary workload during deposit/exchange phase, now shifted to RBI Issue Offices.

Sources of Income of RBI

Source of Income	Explanation	Example
Seigniorage (Currency Issuance)	Profit earned from issuing currency at face value higher than printing cost	Printing a ₹500 note costs ~₹5, but RBI issues at ₹500 → profit = ₹495
Investment in Foreign Assets	Earnings from interest on foreign exchange reserves invested in safe securities	US Treasury bonds, Euro Govt bonds
Government Securities (Domestic)	Interest income from GoI bonds & Treasury bills held by RBI	Holding G-Secs bought during OMO operations
Lending to Banks (Repo/MSF)	Interest earned from short-term lending to commercial banks	Repo rate lending to SBI, HDFC Bank
Government Debt Management Fees	Commission for managing central & state govt borrowings	Issuing and servicing G-Secs on behalf of Govt
Banking Services Fees	Charges for providing settlement and payment systems	RTGS/NEFT transactions, cheque clearing
Other Investments (Gold, Bonds)	Returns from gold reserves & other financial instruments	Income from RBI’s gold holdings

3. India’s Current Account Deficit

Source: ET

Context:

The Reserve Bank of India (RBI) reported that India’s current account deficit (CAD) fell sharply to $2.4 billion (0.2% of GDP) in Q1FY26 (April–June 2025), compared to $8.6 billion (0.9% of GDP) in Q1FY25. This came after a current account surplus of $13.5 billion (1.3% of GDP) in Q4FY25.

What is Current Account Deficit?

• The Current Account records a country’s trade in goods & services, net income from abroad, and net transfers (remittances).
• Current Account Deficit (CAD) means India’s import of goods, services, and transfers > export earnings + remittances.
• Formula:
  CAD = (Imports + Net Income Payments + Net Transfers) – (Exports + Remittances)

Key Components of Current Account

• Merchandise Trade Balance → Exports vs Imports of goods (e.g., oil, gold, machinery).
• Services Balance → IT, BPO, tourism, shipping.
• Primary Income → Interest, dividends, profits paid to foreign investors.
• Secondary Income (Transfers) → Remittances by Indians abroad.

Causes of CAD in India

• High Import Bill: Crude oil, gold, electronics.
• Weak Export Growth: Low competitiveness in manufacturing.
• Global Slowdown: Weak demand for IT/services exports.
• Rupee Depreciation: Raises cost of imports.
• High Outward Investment Returns: Profits repatriated by foreign companies.

Impact of CAD on India

Positive (Short-term)	Negative (Long-term)
Can support domestic consumption & growth via imports (oil, machinery)	Weakens rupee (depreciation pressure)
Indicates demand for capital goods (industrial growth)	Higher external debt as CAD financed by borrowing
May attract FDI/FPI to finance gap	Rising inflation (imported oil & goods)
Shows integration with global economy	Reduces forex reserves if persistent

RBI and Government Role

• RBI Tools:
  • Use of forex reserves to stabilize rupee.
  • Monetary policy (repo rate changes).
  • Managing external debt flows.
• Government Measures:
  • Boost exports via Foreign Trade Policy.
  • Reduce gold imports (higher duties, gold bonds).
  • Incentives for manufacturing (PLI scheme).
  • Atmanirbhar Bharat push for domestic production.

Acts & Provisions

• FEMA, 1999 (Foreign Exchange Management Act) → Governs foreign exchange and external payments.
• RBI Act, 1934 → RBI manages forex reserves & balance of payments.
• Customs Act, 1962 → Governs import duties affecting trade balance.

4. India’s Path to Universal Health Care (UHC)

Source: TH

Context:

The debate on India’s Universal Health Care (UHC) has intensified with rising budgets for Ayushman Bharat–PMJAY and State Health Insurance Programmes (SHIPs). The Bhore Committee Report (1946) laid the foundation for Universal Health Care (UHC) in India, advocating a publicly funded, comprehensive health system.

Growth of Health Insurance in India:

• PMJAY (2018): Provides ₹5 lakh cover per household annually, covering 58.8 crore individuals (2023–24).
• State Health Insurance Programmes (SHIPs): Parallel state schemes cover a similar population with ~₹16,000 crore budget.
• Combined Annual Expenditure: ~₹28,000 crore, rising 8–25% (2018–2024).
• Utilisation Gap: Despite wide coverage, only 35% of insured hospital patients could use schemes (HCES 2022–23).

Fault Lines in Insurance Expansion:

• For-Profit Bias: Nearly two-thirds of PMJAY funds flow to private hospitals, leading to overcharging and unnecessary procedures.
• Neglect of Primary Care: Focus on hospitalisation diverts funds from PHCs, diagnostics, and preventive care.
• Utilisation Barriers: Awareness gaps, low reimbursement rates, and hospital reluctance restrict access.
• Discrimination: Public hospitals prefer insured patients; private hospitals prefer uninsured ones for higher billing.
• Financial Strain: Pending dues under PMJAY (₹12,161 crore) exceed budget; over 600 hospitals exited due to delayed reimbursements.
• Fraud Risks: NHA flagged 3,200 hospitals for fraudulent claims, ghost patients, and inflated bills.

Structural Risks for UHC:

• Public health expenditure remains 1.3% of GDP (vs global average 6.1%).
• Insurance reinforces private dominance without solving systemic quality gaps.
• Out-of-pocket (OOP) spending in India remains among the highest globally.

International Comparisons:

• Thailand, Canada: Successful UHC relies on non-profit providers, universal funding, and strong regulation.
• India’s Model: Targeted, profit-oriented, with weak regulatory oversight.

Way Forward:

• Strengthen public health infrastructure (PHCs, diagnostics, rural workforce).
• Prioritise preventive and primary care over hospitalisation-focused funding.
• Regulate private sector with price caps, standard treatment protocols, and strict audits.
• Improve beneficiary awareness, digital literacy, and grievance redressal.
• Ensure timely reimbursements and explore direct budgetary allocations.
• Raise public health spending to 2.5% of GDP as per National Health Policy 2017 target.

5. External Commercial Borrowings (ECBs) in India

Source: BS

Context:

The net inflows of foreign resources via External Commercial Borrowings (ECBs) rose to $4.6 billion in April-June period of the financial year 2025-26 (Q1FY26) from $ 2.8 billion in the same period previous year, the Reserve Bank of India data showed.

What are ECBs?

• Loans raised by Indian corporates from foreign lenders in foreign currency, regulated under FEMA, 1999.
• Sources include international banks, multilateral institutions, export credit agencies, and global bond markets.

RBI’s Role in Managing ECBs

The Reserve Bank of India (RBI) is the main regulator of ECBs. Its role includes:

• Policy Framework under FEMA, 1999
  • Issues ECB Master Directions.
  • Decides which sectors, borrowers, and lenders are eligible.
• Approval Mechanism
  • Automatic Route: Within prescribed limits, no prior RBI approval needed.
  • Approval Route: Sensitive sectors/large amounts require RBI clearance.
• Monitoring End-Use
  • Restricts ECBs for speculative activities like real estate, land purchase, or stock market investment.
  • Allows ECBs for infrastructure, manufacturing, innovation, and green projects.
• Hedging & Risk Management
  • Mandates hedging for certain categories of borrowers to reduce currency risk.
• Cost & Tenor Regulations
  • Prescribes all-in-cost ceilings (interest + fees) linked to international benchmarks (SOFR, etc.).
  • Sets minimum maturity periods for short-term vs. long-term borrowings.
• Reporting & Transparency
  • Borrowers must file ECB returns (Form ECB-2) to RBI for monitoring.
  • RBI tracks inflows, repayments, and outstanding foreign debt.
• Macro-Prudential Regulation
  • RBI uses ECB caps and conditions as tools to manage external sector stability, capital flows, and rupee volatility.

Impact of ECB Inflows

• Net inflows rose to $4.6 billion in Apr–Jun 2025 vs $2.8 billion in Q1FY25.
• Shows strong corporate demand for global capital.

Implications

• Boosts investment and industrial growth.
• Strengthens forex reserves temporarily.
• Raises India’s exposure to global interest rate cycles and currency risks.
• Heavy reliance may worsen external debt sustainability if rupee depreciates.

Acts & Provisions (Important for RBI Exam)

• Foreign Exchange Management Act (FEMA), 1999 – Legal basis for ECB regulation.
• RBI Act, 1934 – Empowers RBI to regulate external borrowings and foreign exchange.
• Companies Act, 2013 – Governs corporate borrowing and disclosure norms.

Facts To Remember

1. Earthquake Strikes Afghanistan

A strong earthquake and multiple aftershocks collapsed homes onto sleeping families in a remote, mountainous region in Afghanistan, killing more than 800 people and injuring at least 2,800.

2. Ajay Seth takes charge as Irdai chief

Ajay Seth, former secretary of the Department of Economic Affairs (DEA), assumed charge as the chairman of the Insurance Regulatory and Development Authority of India (Irdai) Ajay Seth has assumed charge as Chairman, Insurance Regulatory and Development Authority of India on 1st September, 2025.

3. Govt appoints Kalyani as new Controller General of Accounts

The government has appointed T.C.A. Kalyani, a 1991-batch officer of the Indian Civil Accounts Service, as the country’s new Controller General of Accounts, the finance ministry said in a statement.

4. ISRO’s Announcement of Opportunity (AO) for Chandrayaan-3 Data Utilisation

Chandrayaan-3 successfully achieved a soft landing on the Moon’s southern high latitudes on August 23, 2023, making India the first country to land near the lunar south pole. ISRO has invited proposals from the Indian scientific community for the scientific analysis and utilisation of Chandrayaan-3 lander and rover data.

5. India MedTech Expo 2025

The second edition of the India MedTech Expo 2025 will be held in New Delhi from Thursday to showcase the country’s MedTech strength and innovation. 

6. 12-Day All India Thal Sainik Camp Inaugurated in New Delhi

A twelve-day All India Thal Sainik Camp was inaugurated today in New Delhi. Ministry of Defence said that about 15 hundred cadets, from 17 National Cadet Corps (NCC) Directorates representing all states and union territories, will participate in the camp.

Daily Current Affairs Quiz
3 September, 2025

National Affairs

1. Global Peace Index (GPI) 2025

Source: ET

Context:

In the 19th edition of the Global Peace Index (GPI) 2025, released by the Institute for Economics and Peace (IEP), Singapore has been ranked the safest country in Asia and 6th globally. India is ranked at 115th position with a score of 2.229. The index evaluates 163 countries based on safety, ongoing conflicts, and militarisation.

What is the Global Peace Index (GPI)?

• Definition: An annual ranking of countries on peacefulness.
• Coverage: 163 states and territories, representing 99.7% of the world’s population.
• Published by: Institute for Economics and Peace (IEP), an international think tank headquartered in Sydney, Australia.

Indicators and Methodology

GPI evaluates countries on 23 indicators grouped into 3 domains:

1. Societal Safety & Security – crime rates, political stability, refugee/displacement impact.
2. Ongoing Domestic & International Conflict – terrorism, civil unrest, war involvement.
3. Militarisation – defence expenditure, weapons imports/exports, size of armed forces.

GPI 2025 – Global Trends and Rankings

• Most Peaceful Nations:
  • 1st – Iceland (retains top spot).
  • Followed by Ireland, New Zealand, Finland, Austria, Switzerland, Singapore, Portugal, Denmark, Slovenia.
• Least Peaceful Nations:
  • Russia, Ukraine, Sudan, DR Congo, Yemen.
• Regional Highlights:
  • Europe dominates the top 10.
  • South America shows improvements (Argentina, Peru).
  • Sub-Saharan Africa & Middle East remain the least peaceful regions.
  • Global average peacefulness declined due to militarisation, wars, and geopolitical divides.

India in GPI 2025

• Rank: 115th out of 163 countries.
• Score: 2.229 (improved by 0.58% compared to 2024).
• Positives:
  • Decline in domestic violence and community disputes.
  • Better societal stability indicators.
• Challenges:
  • High militarisation levels.
  • Ongoing cross-border tensions.
  • Sporadic internal unrest and protests.

2. Semiconductor & India’s Vision

Context:

At the 4th SEMICON India Conference (Sept 2025), PM Narendra Modi outlined India’s ambition to emerge as a “full-stack semiconductor nation”, covering the entire chip value chain from design and fabrication to packaging and innovation.

What are Semiconductors?

• Materials with conductivity between conductors (like copper) and insulators (like glass).
• Their electrical properties can be controlled by doping, temperature, and voltage.
• Key material: Silicon (others: gallium arsenide, germanium).

Applications of Semiconductors

• Electronics: Smartphones, laptops, televisions.
• Automotive: EVs, ADAS (driver-assistance systems), navigation, batteries.
• Telecom: 5G infrastructure, optical communication.
• Defense & Aerospace: Radars, satellites, navigation systems.
• Healthcare: Medical imaging, diagnostics, wearables.
• Artificial Intelligence (AI) & Cloud: High-performance computing, data centers.

India’s Current Status

• Strengths:
  • Strong in chip design – major firms (Intel, Qualcomm, AMD, NVIDIA) have R&D centers in India.
  • Skilled workforce in electronics & IT.
• Weaknesses:
  • No large-scale commercial semiconductor fab (fabrication plant) yet.
  • Heavy import dependence (India imports >90% of chips).
• Government Push:
  • Semicon India Programme (2021): $10B incentive scheme for fabs, ATMP (assembly, testing, marking & packaging), and design.
  • India Semiconductor Mission (ISM): Launched in December 2021 with an outlay of ₹76,000 crore. First semiconductor project cleared within 18 months of Cabinet approval.
• Micron Technology: Setting up a semiconductor assembly & test facility in Gujarat.
  • Partnerships: Vedanta-Foxconn, ISMC, and others in talks.
  • Target: India to become a global hub for semiconductor manufacturing & design by 2030.

Banking/Finance

1. Government’s Draft Norms Ease Compliance for Foreign Investment in Insurance Sector

Source: BS

Context:

The government has issued draft amendments to the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2015, aimed at reducing compliance hurdles and making India’s insurance sector more attractive to global investors.

Key Highlights:

Relaxed Residency Requirement

• Proposal to remove the clause mandating a majority of directors and key management persons (KMPs) be resident Indian citizens in companies with significant foreign investment.
• Retained clause: At least one among the Chairperson, Managing Director, or CEO must be a resident Indian.

Board and Governance Conditions

• If foreign investment exceeds 49%, then:
  • 50% of the board must comprise independent directors.
  • Companies must maintain higher net profit and solvency safeguards.
• These conditions, experts noted, had earlier deterred global investors even after the FDI cap was raised from 49% to 74% in 2021.

Capital and Dividend-Related Changes

• Proposed wording change:
  • Replace “to exceed 74% of paid-up equity capital” with “to exceed the limit as stipulated by the Insurance Act, 1938.”
  • Seen as a precursor to raising the FDI cap to 100%, as announced in the Union Budget.
• Dividend Retention Clause Removed:
  • Earlier, insurers with foreign investment had to retain dividends in reserves if solvency margin was <1.2x the control level.
  • Now, no such restriction, companies can repatriate dividends freely without regulator’s approval.

2. SEBI Introduces Intraday Position Framework for Equity Index Options

Source: Mint

Context:

On September 2, 2025, SEBI announced a new entity-level framework to monitor intraday positions in equity index options, effective October 1, 2025. The move aims to curb risky expiry-day bets and enhance market stability.

What are Equity Index Options?

• Equity Index Options are derivative contracts that allow traders to take positions on stock indices (like Nifty 50, Bank Nifty) without buying or selling the actual stocks.
• They are widely used for hedging, speculation, and arbitrage.

What are Intraday Positions?

• Intraday position means the exposure a trader or entity builds within a single trading day.
• Positions are squared off (closed) before the end of the day, but during the day, they can be very large.
• Intraday monitoring is critical because sharp moves on expiry days (when contracts expire) can create volatility risks.

Key Features of the Framework

• Net Intraday Position Limit: ₹5,000 crore (up from existing end-of-day ₹1,500 crore).
• Earlier Rule: No intraday cap; only an end-of-day limit of ₹1,500 crore applied.
• Gross Intraday Position Limit: ₹10,000 crore per side (buy and sell separately), same as end-of-day.
• Monitoring: Exchanges to capture at least four random snapshots daily, including one between 2:45 pm–3:30 pm (peak volatility).
• Penalties: Breaches on expiry days will attract penalties or additional surveillance deposits from December 6, 2025.
• Exemptions: Higher limits for entities with underlying exposure above ₹5,000 crore.
• Implementation: Joint SOP for intraday monitoring to be issued by exchanges within 15 days.

Parameter	Net Intraday Position Limit	Gross Intraday Position Limit
Definition	Overall directional exposure (long or short) after adjusting for offsetting positions	Total exposure on both buy and sell sides without netting opposite positions
How Calculated	Long positions – Short positions	Long positions + Short positions
Example	₹7,000 cr long – ₹2,000 cr short = ₹5,000 cr net long	₹7,000 cr long + ₹2,000 cr short = ₹9,000 cr gross
SEBI Cap	₹5,000 crore per entity (on Futures Equivalent / delta basis)	₹10,000 crore per side (buy and sell separately)
Status from Oct 1, 2025	Newly introduced, effective October 1, 2025	Already applicable, remains unchanged

Monitoring Framework

• Calculation Method: FutEq (delta-based) open interest method, introduced via Sebi’s May circular.
• Snapshots: Minimum four random intraday checks by exchanges, including one between 2:45 pm and 3:30 pm when volatility peaks.
• Additional Oversight: Exchanges to review trading patterns of entities breaching limits and seek explanations.
• SOP Timeline: Exchanges and clearing corporations to publish a joint standard operating procedure (SOP) within 15 days.

Keywords

• Net Position: Overall directional bet (long minus short).
• Gross Position: Total exposure (buy + sell sides combined).
• Delta-Based Monitoring: Measures sensitivity of option price to index movement. (But misses risks from gamma and vega).

Why It Matters

• Market Stability: Prevents sudden large expiry-day positions causing volatility.
• Investor Protection: Shields retail participants from manipulation and abrupt swings.
• Expiry Day Changes: Comes as NSE shifted weekly index option expiry to Tuesday, BSE to Thursday, altering trading dynamics.
• Regulatory Vigilance: Triggered by Jane Street case, where SEBI alleged market manipulation in Bank Nifty options worth ₹4,843.57 crore gains.

3. No Insurance Licence to VC-backed Fintechs: IRDAI

Source: ET

Context:

The Insurance Regulatory and Development Authority of India (Irdai) has toughened its stance against granting insurance manufacturing licences to venture capital-backed fintech startups. The regulator believes such startups are better suited for insurance distribution, not manufacturing.

Venture Capital-backed Fintech Startups

• Fintech startups = Young companies that use technology to provide financial services (like payments, lending, insurance, wealth apps, etc.). Example: PhonePe, Razorpay, Policybazaar.
• Venture capital (VC) = Money invested by professional investors or funds into startups that show high growth potential. These investors take risk early in the business in return for possible high profits later.
• So, a VC-backed fintech startup is a young financial technology company that runs on money raised from venture capital funds.

Why IRDAI is Concerned?

• Making (manufacturing) insurance means creating and underwriting insurance products—this needs big capital, long-term stability, and risk management skills.
• VC-backed startups usually:
  • Focus on fast growth.
  • Depend on external funding.
  • May not have long-term stability (since VCs often exit in a few years).

4. Suryoday Small Finance Bank Launches Secured Credit Cards

Source: Mint

Context:

Suryoday Small Finance Bank (SSFB) has introduced secured credit cards designed to expand credit accessibility for first-time users by leveraging fixed deposits as collateral. The offering targets homemakers, retirees, and individuals new to credit, encouraging responsible credit habits.

Key Features:

• Card Variants:
  • Suryoday SFB RuPay Select Credit Card
  • Suryoday SFB RuPay Platinum Credit Card
• Collateral & Credit Limit:
  • Cards are secured against fixed deposits.
  • Minimum fixed deposit:
    • Platinum: ₹1,000
    • Select: ₹1,11,500
• Digital Integration:
  • Linked with RuPay and UPI platforms
  • Instant virtual card issuance available

About Suryoday Small Finance Bank (SSFB)

• Founded: 2008 as Suryoday Micro Finance in Chennai, Tamil Nadu.
• Transition: Became a Small Finance Bank in 2017 to promote financial inclusion.
• Headquarters: Mumbai, Maharashtra; serves over 2.8 million customers.
• Services: Savings accounts, fixed deposits, MSME loans, rural financing, and digital banking.

5. The Council of Insurance Ombudsman (CIO) 2023-24 Report

Source: ET

Context:

The Council of Insurance Ombudsman (CIO) 2023-24 report highlights rising complaints against health insurers in India. Policyholders have increasingly approached the Ombudsman due to claim delays, partial or complete repudiations, and other service issues.

Key Highlights:

• Top Insurers by Complaints:
  • Star Health & Allied Insurance – 13,308 complaints (10,000+ related to claim rejections)
  • CARE Health Insurance – 3,718 complaints
  • Niva Bupa Health Insurance – 2,511 complaints
  • Public Sector Insurers in Top 5:
    • National Insurance Co. Ltd – 2,196 complaints
    • The New India Assurance Co. Ltd – 1,602 complaints
• Observation:
  • The top three insurers with the most complaints are all stand-alone health insurers.

IRDAI Internal Ombudsman Initiative

• Objective: Resolve complaints for claims up to Rs 50 lakh internally within insurers.
• Scope: Handles complaints unresolved within 30 days or partially/wholly rejected complaints.
• Limitations:
  • Excludes pending court, consumer forum, or Ombudsman cases.
  • IO reports to the MD/CEO administratively, raising concerns about impartiality.

Agriculture

1. BHARATI Initiative

Source: News on Air

Context:

The Agricultural and Processed Food Products Export Development Authority (APEDA) has launched the BHARATI initiative to support 100 agri-food startups and enhance India’s agri-food export potential.

What is BHARATI?

• Bharat’s Hub for Agritech, Resilience, Advancement and Incubation for Export Enablement.
• Type: A national startup-support and export-acceleration platform for India’s agri-food and agri-tech ecosystem.
• Launch Authority: APEDA (Agricultural and Processed Food Products Export Development Authority) under the Ministry of Commerce & Industry.
• Support: Backed by the Ministry of Food Processing Industries, aligned with Startup India and Atmanirbhar Bharat.

Objectives

• Support and empower 100 agri-food and agri-tech startups.
• Achieve $50 billion agri-food exports by 2030.
• Foster innovation in production, processing, packaging, and logistics.

Key Features

• Startup Cohort: Selection of 100 startups through APEDA’s website (applications open September 2025).
• Acceleration Programme: 3-month training on product development, export readiness, compliance, and global market access.
• Innovation Focus: High-value GI products, organic foods, superfoods, livestock products, AYUSH-linked foods.
• Technology Integration:
  • AI-based quality checks.
  • Blockchain-enabled traceability.
  • IoT-driven cold chain solutions.
  • Agri-fintech tools for export financing.
• Problem Solving: Tackles key export barriers—perishability, wastage, logistics, packaging, and quality assurance.
• Awareness Campaign: National-level outreach to engage startups, investors, and agri-export stakeholders.

2. Horticulture as a Growth Engine

Source: BS

Context:

A recent RBI Bulletin research article highlights that India’s agricultural debate is shifting from staples (rice, wheat) to high-value crops such as fruits and vegetables. Horticulture is emerging as a key pathway to higher incomes, rural employment, and nutritional security, especially for small and marginal farmers.

Why Horticulture Matters

• India’s Position: World’s second-largest producer of fruits and vegetables (after China).
• Higher Returns: Horticulture provides greater value realisation per hectare compared to cereals.
• Employment: Labour-intensive, supporting rural jobs.
• Changing Diets: Rising demand for fruits and vegetables due to higher incomes, health awareness, and dietary diversification.

Challenges in Diversification

• Productivity Concerns
  • Stagnant or declining yields in crops like grapes and sapota (1992–93 to 2021–22).
  • Vulnerability to climate variability (e.g., unseasonal rains damaging perishable crops).
• Market Volatility
  • Boom-bust cycles of tomatoes, onions, and potatoes harm farmers and consumers alike.
  • Weak price discovery and absence of collective bargaining worsen distress sales.
• Post-Harvest Losses
  • Annual food wastage and inefficiencies valued at ₹1.5 trillion.
  • Inadequate cold chains, storage, refrigerated transport, and agro-processing facilities.
• Trade Risks
  • Horticultural exports face tariff barriers (e.g., recent US tariffs).
  • Limited market diversification exposes India to global policy shocks.

Solutions and Policy Pathways

• Technology and Innovation
  • Weather prediction tools, better advisories, and intercropping techniques from global research institutions (CGIAR).
  • Public investment in R&D and extension services to boost productivity.
• Market Reforms
  • Strengthen Farmer Producer Organisations (FPOs) for aggregation and price negotiation.
  • Expand digital platforms for transparent price discovery.
  • Encourage fair contract farming for assured pricing.
• Post-Harvest & Supply Chain
  • Investment in cold storage, transport, and processing units to cut wastage.
  • Adopt World Resources Institute’s Target–Measure–Act framework to reduce food loss.
• Trade & Branding
  • Diversify exports to West Asia, Africa, Southeast Asia.
  • Build premium value through GI tags (e.g., Alphonso mango, Nagpur orange).
  • Upgrade food safety and quality standards to enhance competitiveness.

Facts To Remember

1. PM Modi receives first Made in India Vikram 32-bit chip

Union Minister for Electronics & Information Technology Ashwini Vaishnaw presented Prime Minister Narendra Modi a memento containing the ‘Made in India’ Vikram 32-bit Processor Launch Vehicle Grade chip at the Semicon India 2025.

2. Bima Sugam Phase-I likely in December

The first phase of Bima Sugam the insurance regulators ambitious project to create an Amazon-likeone-stop digital platform for insurance policies is likely to be launched in December, according to people familiar with the development.

3. India Post Payments Bank (IPPB) Marks 8th Foundation Day

On 1st September 2025, India Post Payments Bank (IPPB) marked its 8th Foundation Day, celebrating its role in delivering inclusive, accessible, and affordable banking services across rural, semi-urban, and remote regions.

Daily Current Affairs Quiz
4 September, 2025

National Affairs

1. GST 2.0 Reforms

Source: Indian Express & Economic Times

Context:

On September 3, 2025, the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, held its 56th meeting which lasted over 10 hours. The meeting marked the biggest overhaul of the eight-year-old Goods and Services Tax (GST) regime, approving the much-awaited GST 2.0 reforms.

Slab Rationalisation

• Previous Structure: 5%, 12%, 18%, 28%
• New Structure (from 22 Sept 2025):
  • 5% (Merit rate) – essential/common goods & services
  • 18% (Standard rate) – general goods & services
  • 40% (Demerit rate) – sin/super luxury goods (tobacco, cigarettes, pan masala, big cars, etc.)

Rate Reductions for Common & Middle-Class Items

0% (Exempted)

• Food items: Ultra-high temperature (UHT) milk, paneer, Indian breads (roti, chapati, paratha), pizza bread, khakra.
• Education item: Erasers.
• Insurance: All life insurance & health insurance policies (individual, family floater, senior citizens, ULIPs, endowment).
• Healthcare: 33 life-saving medicines.

5% (Reduced from 12–18%)

• Household essentials: Hair oil, soaps, shampoos, toothbrush, toothpaste, bicycles, tableware, kitchenware.
• Food & FMCG: Packaged juices, butter, cheese, condensed milk, pasta, coconut water, soya milk drinks, nuts, sausages, namkeens, sauces, noodles, chocolates, coffee.
• Medical: Medical oxygen, gauze, bandages, diagnostic kits.
• Others: Bio-pesticides, bio-menthol, handicrafts, leather goods, granite & marble blocks.
• Electric Vehicles (EVs): retained at 5%.
• Gyms, salons, barbers, yoga centres: reduced to 5% from 18%.

18% (from 28% or 12%)

• White goods: Air conditioners, TVs, dishwashers.
• Cement.
• Automobiles:
  • Small cars (≤1200cc petrol / ≤1500cc diesel, ≤4m length).
  • Motorcycles (<350cc).
  • Automotive parts.

40% (Demerit Rate)

• Tobacco, cigarettes, pan masala.
• Big cars/Super luxury vehicles.

Structural Reforms

• Inverted Duty Structure corrected:
  • Manmade fibre: 18% → 5%
  • Manmade yarn: 12% → 5%
  • Fertiliser inputs (sulphuric acid, nitric acid, ammonia): 18% → 5%
• Ease of Doing Business:
  • Automated GST refunds.
  • Simplified MSME registration.

Fiscal Impact

• Net revenue implication: ₹48,000 crore (FY24 base).
• Consensus-based decision despite states’ revenue loss concerns (~₹80,000 cr – ₹1.5 lakh cr).

Significance

• Major move towards simplified GST 2.0.
• Relief for common man, MSMEs, labour-intensive industries, farmers.
• Boosts compliance, reduces disputes & litigation.
• Corrects duty structure distortions.
• Encourages demand growth while ensuring fiscal sustainability.

2. ARTHA Financing Framework

Source: ET

Context:

The government is set to launch ARTHA, a financing framework for repurposing de-coaled mines. Launch will take place during the Star Rating Awards Ceremony for Coal and Lignite Mines in Mumbai.

About ARTHA

• Full Form: Yet to be officially expanded, but referred to as a green financing framework.
• Purpose: To facilitate reuse and repurposing of de-coaled mines.
• Approach: Aims to support sustainable, responsible mine closure and post-mining land use.

Significance

• Environmental: Promotes green transition and responsible land reuse.
• Economic: Unlocks potential for new industries and livelihood opportunities on repurposed mine land.
• Policy: Part of India’s broader sustainability and energy-transition goals.

Banking/Finance

1. Long-Duration Debt Mutual Funds Hit by Rising G-Sec Yields

Source: BS

Context:

Long-duration debt mutual funds (MFs) have seen a sharp fall in returns due to a surge in government securities (g-sec) yields. Investors in dynamic bond funds and g-sec funds with exposure to long-maturity papers bore the maximum impact.

What are Long-Duration Debt Mutual Funds (MFs)?

• Debt mutual funds that invest primarily in long-term fixed-income instruments like government securities (G-secs), corporate bonds, debentures, etc., with a maturity period of more than 7 years.
• Objective: They aim to generate stable, predictable returns over the long term, mainly through interest income and potential capital gains from bond price appreciation.
• Risk Profile: These funds are highly sensitive to interest rate changes (measured by duration). A small movement in interest rates can cause significant changes in their Net Asset Value (NAV).

What are Government Securities (G-secs)?

• Debt instruments issued by the Government of India to borrow money.
• Types:
  • Treasury Bills (T-bills) – short-term (<1 year).
  • Government Bonds – long-term (5–40 years).
• Safety: Considered risk-free as they carry a sovereign guarantee.
• Yield: The return an investor earns from holding the security (interest/coupon + capital appreciation).

Current Situation?

• Recently, g-sec yields have surged (gone up) due to:
  • Higher inflation concerns.
  • RBI’s monetary stance (less chance of rate cuts soon).
  • Higher government borrowing needs.
• When bond yields rise, bond prices fall. Since long-duration funds are most sensitive to yield changes, their returns have dropped sharply.

Impact of Rising G-sec Yields on Long-Duration Debt MFs

On Investors

• NAV Decline: The market value of bonds in these funds falls, leading to lower NAV and poor short-term returns.
• Higher Volatility: Long-term funds face larger mark-to-market (MTM) losses.
• Better Entry Opportunity: For new investors, higher yields mean future potential returns improve, as funds can reinvest at higher interest rates.

On Economy

• Higher Borrowing Cost: Government pays more to borrow, which may crowd out private sector credit.
• Bond Market Adjustment: Investors may prefer safer g-secs over risky debt, tightening liquidity for corporates.

On Mutual Fund Industry

• Possible redemptions from risk-averse investors.
• Fund managers may adjust portfolios by reducing duration to limit volatility.

2. Variable Rate Reverse Repo (VRRR) Auction

Context:

The Reserve Bank of India (RBI) plans to conduct an eight-day variable rate reverse repo (VRRR) auction on Thursday aimed to drain ₹ 1.5 trillion from the banking system.

What is Variable Rate Reverse Repo (VRRR)?

• A short-term liquidity absorption tool used by the RBI to take out excess liquidity from the banking system.
• Mechanism: Banks park their surplus funds with the RBI for a specified period (e.g., 7 or 14 days). The interest rate is determined through an auction (hence “variable rate”).
• Objective: To manage liquidity, control inflationary pressures, and align short-term rates with the policy repo rate.

Difference Between VRR and VRRR

Feature	VRR (Variable Rate Repo)	VRRR (Variable Rate Reverse Repo)
Purpose	Inject liquidity into system	Absorb liquidity from system
Flow of Money	RBI → Banks	Banks → RBI
Collateral	Banks give G-secs to borrow funds	Banks deposit surplus cash
Impact	Eases shortage, reduces interest rates	Controls excess, supports inflation control

Why is RBI Conducting this Auction?

• To drain ₹1.5 trillion excess liquidity from the banking system.
• Context:
  • Banks currently have surplus liquidity due to government spending, deposit inflows, or RBI’s previous operations.
  • Excess liquidity can lead to lower short-term interest rates, fueling inflation or creating asset bubbles.
• RBI conducts VRRR auctions to stabilize money market rates close to the repo rate.

Impact of VRRR Auction

On Banks

• Surplus liquidity gets parked with RBI → less cash for lending in short-term markets.
• Short-term money market rates (like call money rate, TREPS) may rise closer to policy repo rate.

On Economy

• Helps control inflationary pressures by reducing excess money supply.
• May tighten short-term liquidity, making borrowing slightly costlier for corporates and NBFCs.

On Investors

• Higher short-term rates → better yields on money market instruments (CPs, CDs, T-bills).
• Bond market may see some pressure if liquidity tightness continues.

3. Bank of Baroda Launches ‘bob Digi Udyam’ Collateral-Free Digital Financing Scheme

Source: BL

Context:

State-owned Bank of Baroda (BoB) announced the launch of bob Digi Udyam – a digital, collateral-free lending platform offering Micro and Small Enterprises (MSEs) quick access to working capital loans above ₹10 lakh to ₹50 lakh.

Purpose

• To provide working capital support through Cash Credit (CC) and Overdraft (OD) facilities.

Loan Features

• Loan Amount: ₹10 lakh – ₹50 lakh
• Tenure: 1 year
• Collateral: Not required (collateral-free).
• Coverage: Loans secured under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Digital Process

• Fast Sanction: Provisional sanction letter issued within minutes of application.
• Final Approval: Processed through TEJAS Loan Origination & Processing System (BoB’s digital platform).
• Modes of Application:
  • Do-It-Yourself (DIY) online application.
  • Assisted mode at bank branches.

Agriculture

1. Kapas Kisan App

Source: PIB

Context:

On 2 September 2025, Union Minister of Textiles Shri Giriraj Singh launched the Kapas Kisan mobile app, developed by the Cotton Corporation of India (CCI) under the Ministry of Textiles, in New Delhi. The app aims to digitize cotton procurement under the Minimum Support Price (MSP) scheme, empowering farmers with transparency and efficiency in the procurement process.

About Kapas Kisan App

• Developer: Cotton Corporation of India (CCI), Ministry of Textiles
• Launched by: Union Minister of Textiles, Shri Giriraj Singh
• Purpose: To streamline cotton procurement under the MSP scheme and protect farmers from distress sales.

Features

• Self-Registration: Farmers can securely register to sell cotton under MSP.
• Slot Booking: Digital scheduling at procurement centres to reduce waiting time & crowding.
• Payment Tracking: Real-time status updates on payments directly linked with Aadhaar & NACH.
• Quality & Quantity Updates: Farmers get updates on quality assessment and accepted quantity.
• User-Friendly Interface: Supports multiple Indian languages for easy access.

Benefits

• Ensures timely payments and transparency.
• Reduces manual paperwork and waiting time at procurement centres.
• Safeguards farmers from distress sales through assured MSP procurement.
• Aligns with the Digital India vision by digitizing agricultural procurement.

Facts To Remember

1. India defeats Bahrain in AFC u-23 Asian Cup qualifiers

India began its AFC under-23 Asian Cup qualifiers on a winning note with a 2-0 victory over Bahrain at the Suheim bin Hamad Stadium in Doha.

2. Elavenil Valarivan 

Elavenil Valarivan was one of the star performers in the recent Asian shooting championship in Kazakhstan, as she won the women’s air rifle gold, and the mixed air rifle gold with Arjun Babuta.

3. Citibank gets new co head for investment banking in Apac

US-based Citibank on Wednesday said it has appointed Kaustubh Kulkarni asco-head of its investment banking coverage for Japan, Asia North and Australia, and Asia South (Asia Pacific, or Apac).

4. RBI clears reappointment of R Gandhi as Yes Bank Chairman till 2027

Private sector lender Yes Bank on Tuesday said the Reserve Bank has approved the reappointment of former RBI Deputy Governor R Gandhi as non-executive chairman of the bank.

5. Union Cabinet Approves ₹1,500-Crore Incentive Scheme for Recycling of Critical Minerals

The Union Cabinet on Wednesday approved a ₹1,500 crore incentive scheme to promote recycling of e-waste and battery waste for the extraction of critical minerals, a move aimed at strengthening India’s supply chain resilience in the sector.

Daily Current Affairs Quiz
5 & 6 September, 2025

National Affairs

1. Cabinet Clears ₹1,500 Crore Incentive Scheme for E-Waste & Battery Waste Recycling

Source: ET

Context:

The Union Cabinet has approved a ₹1,500 crore incentive scheme (2025–26 to 2030–31) to promote recycling of e-waste and battery waste, aimed at strengthening India’s critical mineral supply chain under the National Critical Mineral Mission (NCMM). The initiative will serve as a bridge solution until domestic mining and exploration projects yield results, given the long gestation of mining operations.

Key Features of the Scheme

• Duration: 6 years (FY 2025-26 to 2030-31).
• Objective: Extract critical minerals from secondary sources like e-waste, lithium-ion battery scrap, catalytic converters from end-of-life vehicles.
• Target Beneficiaries: Both large recyclers and SMEs/startups. One-third of the outlay is earmarked for small/new players.

About National Critical Mineral Mission (NCMM)

Approved by the Union Cabinet in January 2025, the NCMM is a flagship initiative under Atmanirbhar Bharat aimed at making India self-reliant in critical minerals—vital for high-tech manufacturing, clean energy, and defense. Its roots trace back to the Union Budget of 2024–25, when the mission was first announced.

Scope & Value-Chain Coverage

NCMM covers all critical mineral lifecycle stages, including:

• Exploration (onshore and offshore)
• Mining and beneficiation
• Processing
• Recovery/ Recycling from end-of-life products

Objective:

• Set up a fast-track regulatory approval mechanism for critical mineral projects
• Offer financial incentives for exploration and recovery from overburden/tailings
• Encourage PSUs and private players to acquire critical mineral assets abroad
• Develop a metal stockpile for resource security

2. NITI Aayog Report on Path to Atmanirbharta in Millets

Source: PIB

Context:

NITI Aayog released its report “Strategies and Pathways for Accelerating Growth in Pulses towards the Goal of Atmanirbharta”. While focused on pulses, the report provides key insights applicable to millets, highlighting strategies for productivity, sustainability, and self-reliance.

Current Status & Trends of Millets in India

• Global Share: India produces ~41% of global millets (~16 MT annually), making it the world’s largest producer.
• Regional Spread: Rajasthan, Maharashtra, Karnataka, Uttar Pradesh, and Madhya Pradesh account for over 80% of production.
• Decline in Consumption: Per capita millet consumption has dropped from 32 kg/year (1960s) to ~4 kg/year today, replaced by rice and wheat in PDS and diets.
• Policy Recognition: Union Budget 2023–24 renamed millets as “Shree Anna”, with funds for research, processing, and market linkages.

Importance of Millets

• Nutritional Security: Rich in iron, calcium, fiber, and protein; helps combat malnutrition and anemia.
• Climate Resilience: Require 70% less water than rice; suitable for drought-prone and arid regions.
• Farmer Benefits: Low-input crop, reducing dependence on fertilizers and irrigation.
• Food Security: Integrated into Mid-Day Meal, ICDS, and PDS to benefit vulnerable groups.
• Global Positioning: Marketed as a superfood under India’s Shree Anna branding, boosting exports and agri-diplomacy.

Read more>>

3. India Rankings 2025 by NIRF

Source: TOI

Context:

The Ministry of Education announced the India Rankings 2025 based on the National Institutional Ranking Framework (NIRF). The annual exercise benchmarks higher education institutions across categories and disciplines.

About India Rankings (NIRF)

• Introduced: 2015
• Published by: Ministry of Education, Govt. of India
• Data Support from: Scopus, Web of Science, Derwent Innovation
• Aim:
  • Promote accountability, transparency, and quality benchmarking among HEIs.
  • Help students, parents, and policymakers with credible performance indicators.
  • Align higher education with NEP 2020 and India’s vision of a knowledge superpower by 2047.

Criteria & Weightage (5 Parameters)

1. Teaching, Learning & Resources (30%) – faculty quality, student strength, financial resources.
2. Research & Professional Practice (30%) – publications, citations, patents.
3. Graduation Outcomes (20%) – placements, higher studies, median salary.
4. Outreach & Inclusivity (10%) – gender balance, regional diversity, inclusivity.
5. Perception (10%) – academic & public reputation.

Key Highlights of India Rankings 2025

• IIT Madras – No. 1 in Overall category (7th year) & Engineering (10th year).
• IISc Bengaluru – No. 1 in Universities (10th year) & Research Institutions (5th year).
• Domain Leaders (unchanged):
  • Management: IIM Ahmedabad
  • Medical: AIIMS Delhi
  • Architecture: IIT Roorkee
  • Law: NLSIU Bengaluru
• Delhi Colleges’ dominance: Hindu College ranked 1st (2nd year); 6 of top 10 colleges from Delhi.
• Expansion of Categories: 9 categories & 8 subject domains; SDG-based rankings introduced, topped by IIT Madras.
• Participation Growth: 7,692 institutions applied; 14,163 submissions (297% rise since 2016).
• Emerging Diversity:
  • Pharmacy: Jamia Hamdard
  • Open Universities: IGNOU
  • Skill Universities: Symbiosis
  • Agriculture: IARI Delhi

4. India’s First Vulture Conservation Portal Launched in Assam

Source: TH

Context:

On September 2, 2025 (International Vulture Awareness Day), India’s first vulture conservation knowledge portal was launched in Assam to boost awareness, data-sharing, and stakeholder collaboration in saving endangered vulture species.

Key Highlights:

• Launched by: We Foundation India (Assam-based NGO) in collaboration with Gauhati University’s Department of Zoology, supported by Assam Bird Monitoring Network, LASA Foundation, Suraksha Samitee, and independent conservationists.
• Portal Name: The Vulture Network.
• Features:
  • Cloud-based knowledge hub.
  • Awareness materials in local languages (starting with Assamese).
  • Information on vulture ecology, threats (carcass poisoning, diclofenac, electrocution, food scarcity).
  • Scientific data + downloadable outreach content.
  • Platform to connect researchers, NGOs, citizens, and policymakers.
• Focus species: Slender-billed Vulture (only ~800 mature individuals left in India).
• India’s vulture diversity: 9 species, of which White-rumped, Indian, and Slender-billed are Critically Endangered.

5. Angikaar 2025 Campaign

Source: News on Air

Context:

The Ministry of Housing and Urban Affairs (MoHUA) launched Angikaar 2025, a nationwide outreach campaign under PMAY–Urban 2.0 to accelerate housing delivery and strengthen beneficiary awareness.

About Angikaar 2025

• What it is?
  • A last-mile outreach initiative under Pradhan Mantri Awas Yojana – Urban (PMAY-U 2.0) aimed at bridging implementation gaps and ensuring that housing benefits reach intended beneficiaries.
• Aim:
  • To create mass awareness of PMAY-U 2.0.
  • To facilitate verification of applications and expedite completion of sanctioned houses.

Features

• Duration: Two-month campaign across 5,000+ Urban Local Bodies (ULBs).
• Activities: Door-to-door campaigns, loan melas, cultural events, and PM Awas Mela – Shehri.
• Focus: Special outreach to vulnerable groups and convergence with other social welfare programmes (health, sanitation, finance, etc.).
• Target: Completion of pending houses and delivery of 1 crore additional houses sanctioned under PMAY-U 2.0.

About PMAY-U 2.0

• Launched to provide “Housing for All” in urban areas by 2025.
• Focus on affordable housing, beneficiary-led construction, and technology-driven solutions.
• Integrates housing with welfare initiatives like Jal Jeevan Mission, Ujjwala, Ayushman Bharat for holistic urban living.

5. India’s First Port-Based Green Hydrogen Pilot Project

Source: ET

Context:

The Union Minister inaugurated India’s first port-based Green Hydrogen Pilot Project at V.O. Chidambaranar (VOC) Port, Tamil Nadu, making it the first port in the country to produce green hydrogen.

About the Project

• What it is?
  • A pilot facility to produce green hydrogen at VOC Port, Tuticorin.
• Capacity: 10 Nm³ per hour.
• Cost: ₹3.87 crore.
• Under: Coastal Green Shipping Corridor Project (Kandla–Tuticorin).
• Aligned with: Viksit Bharat 2047 and the Sagarmala Programme.

Aim

• Promote green shipping and clean energy transition.
• Reduce dependence on fossil fuels in port operations.
• Develop VOC Port as a green bunkering and refuelling hub for South India.

Key Features

• Green hydrogen to power streetlights and EV charging stations in the port colony.
• Linked with a proposed Green Methanol Bunkering & Refuelling Facility (₹35.34 crore, 750 m³ capacity).

About V.O. Chidambaranar (VOC) Port

• One of India’s 13 major ports, located in Tuticorin, Tamil Nadu on the Coromandel Coast.
• Formerly called Tuticorin Port, renamed in 2011 after freedom fighter V.O. Chidambaranar, known as Kappalottiya Tamizhan.
• Plays a big role in coal handling, container movement, and South India’s maritime trade.
• Has seen heavy investment (₹16,000+ crore) under the Sagarmala Programme for modernisation.

6. India Joins Health AI Global Regulatory Network (Health AI GRN)

Source: TH

Context:

On 4 September 2025, the Ministry of Electronics and Information Technology (MeitY) announced that India joined the Health AI Global Regulatory Network (Health AI GRN) to strengthen oversight of Artificial Intelligence (AI) in healthcare. The signing took place in New Delhi.

About Health AI GRN

• What it is?
  • A global platform launched by HealthAI (Global Agency for Responsible AI in Health) to bring together regulators, policymakers, and experts to ensure safe, ethical, and effective use of AI in healthcare.
• Mission:
  • Strengthen global collaboration in AI governance.
  • Promote safety, equity, and trust in medical AI.
  • Develop early warning systems and safety protocols.
• Objectives:
  • Share best practices & regulatory experiences.
  • Ensure ethical deployment of AI tools.
  • Support innovation while protecting data privacy & patient safety.
• Headquarters: Geneva, Switzerland.
• Established: 2023.
• CEO: Dr. Ricardo Baptista Leite.
• Existing Members: United Kingdom (UK) and Singapore.

Read more>>

Banking/Finance

1. Axis Bank Launches ‘Sparsh Week 2025’

Context:

On September 1, 2025, Axis Bank Limited launched the 3rd edition of Sparsh Week (September 1–5, 2025) under the theme “Raise the Bar”. The initiative brought together over 1 lakh employees across 5,868 branches in 40 cities to strengthen customer experience, employee engagement, and leadership visibility.

Sparsh Week 2025

• Theme: Raise the Bar.
• Core Principles:
  1. Own the Brand
  2. Own the Customer
  3. Act with Speed
  4. Zero Pendency

Segment-Specific Initiatives

• Students: “Piggy to Prodigy Day” – Bank tours, fun learning sessions, and engagement with Axis Bank Young Bankers (ABYB).
• Women: Financial awareness sessions via ARISE; Nari Shakti Diwas with panel discussions and discounts.
• Senior Citizens: Awareness drives on digital banking, fraud prevention, and will creation.
• Startups: Startup Sangam – showcasing ventures, CX roundtables, and networking.
• MSMEs: Expert sessions and loan facilitation.
• Farmers & Agri-entrepreneurs: Krishi Diwas advisory sessions, soil-testing kits, and rural outreach programs.
• NRIs: Client engagement across UAE, Singapore, and U.S. with homecoming meets.
• LGBTQ+ Community: Pink Economy event and inclusion-focused interactions.

About Axis Bank

• MD & CEO: Amitabh Chaudhry
• HQ: Mumbai, Maharashtra
• Established: 1993
• Tagline: Badhti Ka Naam Zindagi

2. PhonePe Introduces Loans Against Mutual Funds (LAMF) with DSP Finance

Source: BS

Context:

PhonePe, a leading Indian fintech platform, has partnered with DSP Finance, an NBFC backed by DSP Group, to launch Loans Against Mutual Funds (LAMF). The product allows individuals to unlock liquidity from their mutual fund investments without redeeming them.

Key Highlights:

• Loan Amount: Up to ₹2 crore, secured against pledged mutual fund units.
• Repayment Structure:
  • No EMIs or mandatory monthly principal repayment.
  • Borrowers only pay interest on the amount withdrawn.
• Target Audience: Retail investors and HNIs seeking flexible liquidity solutions.

About PhonePe

• Headquarters: Bengaluru, Karnataka
• Founded: 2015
• CEO: Sameer Nigam

3. Bandhan AMC Gets SEBI Nod to Launch ‘Arudha SIF’ Platform

Source: ET

Context:

In September 2025, Bandhan Asset Management Company (Bandhan AMC) received approval from the Securities and Exchange Board of India (SEBI) to launch Specialised Investment Funds (SIFs) under a new platform named ‘Arudha SIF’. This marks Bandhan AMC’s expansion beyond traditional Mutual Funds (MFs) into more flexible and regulated investment products.

Key Highlights:

• Platform Name: Arudha SIF
• Target Group: Sophisticated investors seeking differentiated risk-return profiles
• Strategies Offered:
  • Equity
  • Debt
  • Hybrid
  • Unhedged Short Derivatives

About Specialised Investment Funds (SIFs)

• Introduced by: SEBI to bridge the gap between Mutual Funds (MFs) and Portfolio Management Services (PMS).
• Key Features:
  • Flexibility in portfolio construction.
  • Enable non-traditional investment strategies.
  • Offer sophisticated yet accessible solutions for both retail investors and High-Net-worth Individuals (HNIs).

About Arudha SIF

• Meaning of ‘Arudha’: Symbolises “ascent” and “progress.”
• Objective: To provide investors with advanced investment options beyond conventional MFs.
• Offerings: Equity, Debt, Hybrid, and Unhedged Short Derivatives positions.

4. REITs and InvITs Cross ₹9 Lakh Crore AUM in India

Context:

Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have gained traction in India. According to industry bodies Indian REITs Association (IRA) and Bharat InvITs Association (BIA), their combined Assets Under Management (AUM) have crossed ₹9 lakh crore in just nine years.

Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in India

To provide alternative investment avenues and deepen capital markets, SEBI introduced Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in India in 2014. These are collective investment vehicles that pool investor money to invest in income-generating real estate or infrastructure assets.

Real Estate Investment Trusts (REITs)

• An investment vehicle that owns and operates income-generating commercial real estate assets (like office buildings, malls, hotels).
• Structure:
  • Sponsor: Promoter who sets up the REIT.
  • Trustee: Ensures compliance and safeguards investor interests.
  • Manager: Manages the assets and operations.
• Regulatory Body: SEBI (REIT Regulations, 2014).
• Minimum Public Offer: At least ₹250 crore issue size, with minimum public float of 25%.
• Unit Listing: Units are listed and traded on stock exchanges, like shares.

Examples in India

1. Embassy Office Parks REIT (launched 2019, India’s first REIT)
2. Mindspace Business Parks REIT
3. Brookfield India Real Estate Trust REIT

What Are SM REITs?

Introduced by the Securities and Exchange Board of India (SEBI) in March 2024 as a sub-category under the broader REIT framework, SM REITs enable investors to pool funds to co-own real estate assets valued between ₹50 crore and ₹500 crore much smaller than traditional REIT thresholds.

Asset Size –> Minimum asset value of ₹500 crore (Regular REITs) || Asset value between ₹50 crore and ₹500 crore (SM REITs (Small & Medium REITs)).

Infrastructure Investment Trusts (InvITs)

• Investment vehicle that owns and operates infrastructure assets like roads, power transmission lines, telecom towers, gas pipelines.
• Structure: Similar to REITs – Sponsor, Trustee, and Investment Manager.
• Regulatory Body: SEBI (InvIT Regulations, 2014).
• Minimum Public Offer: At least ₹250 crore issue size, with minimum public float of 25%.
• Unit Listing: Listed on stock exchanges, providing liquidity.

Examples in India

1. IRB InvIT Fund (first InvIT in India, 2017)
2. PowerGrid InvIT (launched 2021)
3. IndiGrid InvIT (focused on power transmission assets)

5. Bank of Baroda Launches ‘bob Digi Udyam’

Source: BL

Context:

Bank of Baroda (BoB) has launched bob Digi Udyam, a fully digital collateral-free lending platform designed exclusively for Micro and Small Enterprises (MSEs). The platform aims to provide faster, seamless, and paperless loans to support MSME growth.

Key Highlights:

• Loan Range: Working capital loans from ₹10 lakh to ₹50 lakh.
• Facilities Offered: Cash Credit and Overdraft (OD) with a 12-month tenure.
• Collateral-Free: Loans are covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
• Technology Backbone: Uses digital footprints of MSEs for faster credit assessment.
• Alignment with Policy: Initiative is aligned with the Union Budget 2024–25 announcement for in-house MSME credit assessment by public sector banks.

About Bank of Baroda (BoB)

• Founded: 1908
• Headquarters: Vadodara, Gujarat
• MD & CEO: Debadatta Chand
• Tagline: India’s International Bank

6. NSE and BSE Penalise MTNL for Non-Compliance with SEBI Board Norms

Source: BS

Context:

The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have imposed penalties on Mahanagar Telephone Nigam Limited (MTNL) for violating SEBI’s board composition norms.

Reason for Non-Compliance: Improper constitution of the following committees:

SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR Regulations, 2015).

Nomination & Remuneration Committee (NRC)

• Relevant Regulation: Regulation 19 of SEBI LODR, 2015
• Requirement:
  • NRC must have at least 3 directors, all non-executive.
  • At least 50% must be independent directors.
  • The Chairperson of NRC must be an independent director.

Stakeholders’ Relationship Committee (SRC)

• Relevant Regulation: Regulation 20 of SEBI LODR, 2015
• Requirement:
  • Committee must consist of a chairperson (non-executive) and such other members as decided by the board.
  • Looks after redressal of grievances of security holders (shareholders, debenture holders, etc.).

Risk Management Committee (RMC)

• Relevant Regulation: Regulation 21 of SEBI LODR, 2015
• Requirement:
  • Mandatory for top 1,000 listed entities by market cap.
  • Committee must have a majority of board members.
  • Chairperson must be a board member.
  • At least one independent director must be a member.

Nature of Violation

• Failure to properly constitute NRC, SRC, and RMC = Violation of SEBI LODR, 2015 (Regulations 19, 20, 21).
• It is treated as non-compliance with corporate governance norms.
• SEBI may levy fines under SEBI Circular SEBI/HO/CFD/CMD/CIR/P/2018/77 (May 2018) prescribing standardized penalties for LODR violations.

About MTNL

• Full Form: Mahanagar Telephone Nigam Limited
• Status: Wholly owned subsidiary of Bharat Sanchar Nigam Limited (BSNL)
• Headquarters: New Delhi
• Sector: State-run telecom service provider

Agriculture

1. SLCM Partners with IDBI Bank and Punjab & Sind Bank

Source: BL

Context:

In September 2025, Sohan Lal Commodity Management Limited (SLCM), India’s largest post-harvest logistics and agri-solutions company, entered into a partnership with IDBI Bank Limited and Punjab & Sind Bank to provide unified collateral management services across India.

This marks Punjab & Sind Bank’s first venture into collateral management services.

About the Partnership

• Objective: To enable farmers, traders, and SMEs to use their stored agri-produce as collateral for loans.
• Supported Commodities: Cotton, pulses, maize, spices, and other staples.
• Technology Backbone: SLCM’s patented Agri Reach platform, offering real-time monitoring of agri-commodities.
• Farmer & Trader Benefits: Access to credit, efficient storage, better price realization, and enhanced trust due to SLCM’s strong warehousing and audit framework.

Expansion of SLCM’s Network

• With this collaboration, SLCM now has 27 banking partners across India and Myanmar.
• Strengthens SLCM’s role in bridging the gap between agri-finance and post-harvest solutions.

About SLCM

• Full Form: Sohan Lal Commodity Management Limited
• Core Business: Post-harvest logistics, warehousing, and agri-solutions.
• Flagship Technology: Agri Reach (real-time monitoring & scientific storage of agri-produce).

Facts To Remember

1. Nepal bans Facebook, X, YouTube, and 23 other social media platforms

The K.P. Sharma Oli government decided to ban as many as 26 social media platforms, including Facebook, X (formerly Twitter), Instagram, and YouTube, citing their failure to meet the deadline to comply with registration requirements in Nepal.

2. Amit Mishra retires from all formats

Veteran India leg-spinner Amit Mishra announced his retirement from all forms of cricket, ending a career spanning more than two decades.

3. Tata Capital’s $2 Billion IPO to Meet RBI Listing Mandate

Tata Capital, the NBFC arm of Tata Group, is set to launch its ₹17,500 crore ($2+ billion) IPO in the third week of September 2025.

4. SEBI Launches Formal Investigation into Jane Street

The Securities and Exchange Board of India (SEBI) launched a formal investigation into U.S.-based high-frequency trading firm Jane Street, despite its own surveillance department earlier recommending closure of the probe.

5. Karnataka Grameena Bank Adopts Common Logo for Amalgamated RRBs

On 5th September 2025, Karnataka Grameena Bank (KGB), headquartered in Ballari, Karnataka, adopted the common logo designed for all 11 amalgamated Regional Rural Banks (RRBs) in India.

Daily Current Affairs Quiz
7 & 8 September, 2025

National Affairs

1. Bodoland Territorial Region (BTR)

Source: TH

Context:

In Assam’s Bodoland Territorial Region (BTR), 21 traditional products — including textiles, musical instruments, beverages, cuisine, and medicinal plants have received Geographical Indication (GI) tags. This youth-led initiative, supported by the BTR government, has created enthusiasm among 26 indigenous communities to preserve and promote their cultural heritage through GI registration.

Bodoland Territorial Region (BTR)

The Bodoland Territorial Region (BTR) in Assam is a special administrative area created under the Bodo Peace Accord of January 2020, replacing the earlier Bodoland Territorial Area Districts (BTAD). It is administered by the Bodoland Territorial Council (BTC) and aims to ensure political, economic, and cultural rights of the Bodo community while maintaining territorial integrity of Assam.

Bodo Tribes of Assam

The Bodos are the largest plains tribe of Assam and an integral part of the Bodo-Kachari group, considered one of the oldest Indo-Mongoloid ethnolinguistic groups in Northeast India.

About BTR

• What it is:
  • A territorial region in Assam governed under the Sixth Schedule of the Constitution.
    It represents a political settlement between the Government of India, Government of Assam, and Bodo groups.
• Headquarters: Kokrajhar, Assam.
• Administered by: Bodoland Territorial Council (BTC).
• Constituent Districts (earlier BTAD): Kokrajhar, Baksa, Chirang, Udalguri.

Background

• The Bodo movement was among the most prolonged ethnic struggles in Northeast India, demanding autonomy and recognition of Bodo identity.
• Multiple accords were signed:
  • 1993 Accord: Created Bodoland Autonomous Council.
  • 2003 Accord: Established Bodoland Territorial Area Districts (BTAD) under Sixth Schedule.
  • 2020 Accord: Created Bodoland Territorial Region (BTR) with greater autonomy, economic packages, and recognition of Bodo language.

2. National Industrial Classification (NIC-2025)

Source: BS

Context:

The government is preparing an update to the National Industrial Classification (NIC-2025), a standardised system maintained by the National Statistics Office (NSO). The revision aims to better capture new-age sectors like digital services, gig economy, and green industries, ensuring India’s economic data remains accurate and internationally comparable.

Background:

• Industrial classification first introduced in 1962, updated in 1970, 1987, 1998, 2004, and 2008.
• NIC codes are used in national accounts, surveys, investment data, and policymaking.
• With the rise of OTT platforms, EV charging, AI, and gig work, the existing 2008 codes risk becoming outdated.

Key Highlights of NIC-2025 Draft:

• Recognition of new sectors – OTT platforms, EV charging stations, AI, circular economy, and green jobs explicitly included.
• Better representation of gig economy – NITI Aayog estimates gig workforce to grow from 7.7 million (2020-21) to 23.5 million (2029-30).
• Policy relevance – Updated codes ensure policymakers capture where jobs and investments are flowing.
• Global alignment – NIC-2025 to align with International Standard Industrial Classification (ISIC), improving comparability and investor confidence.
• Use of digital data – Integration of GST filings and other digital platforms for more accurate classification.
• Continuity challenge – Need for concordance tables to match old and new codes, ensuring comparability with past datasets.

3. Operation Guddar

Context:

An encounter broke out in the Guddar forest of Kulgam, J&K, after terrorists opened fire on security forces during a search operation under Operation Guddar.

About Operation Guddar

• What it is:
  • A counter-terrorism operation launched jointly by J&K Police, Army (Chinar Corps), and CRPF in Kulgam district.
• Name Origin:
  • Named after the Guddar forest area, known for being a suspected militant hideout.

4. Sample Registration System (SRS) Statistical Report 2023

Source: BS

Context:

The Sample Registration System (SRS) Bulletin 2023 (Vol. 58 No.1) by the Office of the Registrar General of India highlights sharp declines in birth rate, death rate, infant mortality, and fertility compared to 1971 levels. While overall trends show progress in maternal-child health, family planning, and healthcare access, disparities persist across rural-urban regions and states.

Key Findings from SRS 2023:

Birth Rate (per 1,000 population)

• India (2023): 18.4 (↓ from 36.9 in 1971, 21.4 in 2013).
• Rural: 20.3 | Urban: 14.9.
• Highest: Bihar (25.8) | Lowest: Andaman & Nicobar Islands (10.1).

Top 5 States – Highest Birth Rates

1. Bihar – 25.8
2. Uttar Pradesh – 23.6
3. Rajasthan – 22.9
4. Madhya Pradesh – 22.5
5. Chhattisgarh – 22.3

Bottom 5 States – Lowest Birth Rates

• Andaman & Nicobar – 10.1
• Tamil Nadu – 12.0
• Kerala – 12.3
• Punjab – 13.8
• Maharashtra/West Bengal – 14.0

Death Rate (per 1,000 population)

• India (2023): 6.4 (↓ from 14.9 in 1971, 7.0 in 2013).
• Gender gap: Men – 7.2 | Women – 5.7.
• Rural: 6.8 | Urban: 5.7.
• Highest: Chhattisgarh (8.3) | Lowest: Chandigarh (4.0).

Top 5 States – Highest Death Rates

1. Chhattisgarh – 8.3
2. Odisha – 7.7
3. Kerala – 7.2
4. Punjab – 7.3
5. Andhra Pradesh/Karnataka – 6.9/6.8

Bottom 5 States – Lowest Death Rates

• Chandigarh – 4.0
• Delhi – 4.5
• Manipur – 4.5
• Nagaland/Sikkim – 5.5
• J&K – 5.6

Read more>>

5. CoWIN Portal

Source: The Hindu

Context:

India’s flagship CoWIN digital vaccination portal has been unavailable since early August 2025, disrupting access to COVID-19 vaccination certificates. Citizens who require vaccination records for travel, employment, and medical purposes are facing difficulties.

About CoWIN Portal

• CoWIN (COVID Vaccine Intelligence Network) is a government digital platform for:
  • Registration
  • Scheduling
  • Tracking
  • Certification of COVID-19 vaccinations.
• Serves as an end-to-end public health management tool from the national to the vaccinator level.

Launch & Ministry

• Launched: January 2021 (during India’s vaccination drive).
• Nodal Ministry: Union Ministry of Health and Family Welfare (MoHFW).

Aim

• Provide a transparent, efficient, and real-time system for vaccination delivery.
• Ensure equitable access, identity verification, dose tracking, and certification for every beneficiary.

Key Features

• Five Modules:
  1. Orchestration module (overall management).
  2. Vaccination cold-chain module (logistics).
  3. Citizen registration module (self & bulk registration).
  4. Vaccinator module (session management).
  5. Certificate, feedback & adverse-event reporting module.
• Integration: Available via CoWIN website, Aarogya Setu app, UMANG app, DigiLocker.
• Authentication: OTP, biometric, and demographic verification.
• Real-Time Tracking: Beneficiaries, doses, wastage, and coverage monitored at national, state, district, sub-district levels.

Banking/Finance

1. Bima Sugam

Source: BS

Context:

The Insurance Regulatory and Development Authority of India (IRDAI) has announced the launch of Bima Sugam, a digital one-stop insurance marketplace, scheduled to debut in December 2025. The initiative is part of IRDAI’s broader “Bima Trinity” strategy to boost financial inclusion and achieve “Insurance for All by 2047.”

Key Highlights:

• Platform Features:
  • Unified marketplace for life, health, and general insurance.
  • e-KYC enabled digital onboarding.
  • End-to-end policy management and comparison tools.
  • Real-time claim tracking and dispute resolution integration.
• Objective:
  • Improve India’s insurance penetration (currently 3.7% vs global average of 7%).
  • Lower transaction costs and improve consumer trust.
  • Ensure transparency and efficiency in a sector often criticized for complexity.
• Challenges:
  • Multiple launch delays due to insurer alignment and tech integration.
  • Risk of market concentration, with smaller insurers fearing reduced visibility.
  • Low financial literacy in rural areas could limit adoption without targeted outreach and multilingual support.
  • Privacy and data security risks—a breach could erode trust.
  • Need for robust grievance redressal, especially around claim settlement.
• Bima Trinity – IRDAI Initiative
  • Purpose: Boost insurance penetration, inclusion, and digital adoption in India.
  • Three Pillars:
    • Bima Sugam – Unified digital platform for comparing, buying, and managing insurance.
    • Bima Vistaar – Development of affordable, inclusive, and composite insurance products.
    • Bima Vahak – Last-mile outreach through women entrepreneurs and community agents.

Significance:

If implemented effectively, Bima Sugam can:

• Democratize insurance coverage.
• Act as an equalizer, much like UPI in digital payments.
• Help India move towards universal risk protection and financial resilience.

2. RBI’s New Co-Lending Guidelines

Context:

On 6 August 2025, the Reserve Bank of India (RBI) issued revised guidelines on co-lending arrangements, expanding the framework to all regulated entities and beyond priority sector lending. The move aims to strengthen governance, transparency, and risk-sharing in co-lending but is expected to cause short-term disruptions, particularly for smaller NBFCs and fintechs.

Key Highlights:

• Mandatory Retention: Each lender must retain at least 10% of the loan on its own books.
• 15-Day Transfer Rule: Loan originator must transfer the loan to the co-lender within 15 days of origination, failing which it won’t qualify as co-lending.
• Escrow Accounts: Disbursements and collections must be routed through escrow-based mechanisms.
• Audit Inclusion: Loans under co-lending arrangements will now be subject to audits.
• Blended Rate: Clarification needed on calculation; lenders fear ambiguity could impact competitiveness.
• Deadline: Guidelines take effect from January 2026. Smaller NBFCs have requested an extension.

Operational Challenges:

• Increased compliance and operational costs due to escrow accounts, stricter KYC norms, and tech integration.
• Smaller NBFCs and microfinance players face hurdles in segments with cash-based collections.
• Risk of short-term moderation in co-lending volumes as lenders recalibrate systems.
• Fintechs warn of higher costs, slower deal execution, and need for process overhauls.

Long-Term Outlook

• Guidelines expected to improve transparency, governance, and lender confidence.
• Greater scope for partnerships beyond priority sector lending.
• With proper tech integration, co-lending books of banks, NBFCs, and fintechs expected to expand.
• Improved compliance frameworks may attract more structured capital into NBFC segments.

3. Deposit-Backed Credit Cards

Context:

Banks in partnership with fintechs are introducing secured credit cards backed by customer deposits, targeting first-time borrowers and financially underserved sections.

What are Deposit-Backed Credit Cards (Secured Credit Cards)?

A Deposit-Backed Credit Card, also known as a Secured Credit Card, is a type of credit card where the cardholder provides a fixed deposit (FD) as collateral with the issuing bank. The credit limit of the card is usually equal to or slightly less than the deposited amount.

These cards are primarily designed for:

• Individuals who are new to credit (no prior credit history).
• Those who have a low credit score or past credit challenges

Example:

• Customer: Ramesh, new to credit.
• FD with Bank: ₹50,000 at 6% interest.
• Credit Card Limit: ₹50,000 (secured against FD).
• Usage: Shops online for ₹10,000 and pays full bill on time.
• Benefits:
  • FD continues earning interest.
  • Builds credit score.
  • Can be upgraded to an unsecured card after 12 months.

RBI / Regulatory Perspective

• RBI categorizes deposit-backed credit cards as secured credit cards.
• Banks must report usage and repayment activity to credit bureaus.
• In case of default, banks can adjust the outstanding amount from the FD.

4. India’s Central Bank Digital Currency (e-Rupee)

Source: Mint

Context:

With UPI crossing 700 million daily transactions, questions arise on the need for a Central Bank Digital Currency (CBDC). Experts argue that the e-rupee can achieve financial inclusion, compliance, and efficiency in ways that UPI cannot.

e-Rupee (Digital Rupee)

e-Rupee is the digital version of India’s fiat currency (INR), issued and guaranteed by the Reserve Bank of India (RBI). It is legal tender and functions like physical cash but exists in electronic form.

Key Features:

• Issuer:
  • Issued by RBI, ensuring trust and stability.
• Forms:
  • e-Rupee for Retail (e-R): For individuals and businesses.
  • e-Rupee for Wholesale (e-W): For interbank transactions and large-value settlements.
• Purpose:
  • Reduce cash dependency.
  • Promote financial inclusion and digital payments.
  • Lower transaction costs and improve efficiency.
• Technology:
  • Can be held in digital wallets or bank accounts.
  • Supports peer-to-peer (P2P) and merchant payments.
• Legal Status:
  • Fully backed by the Government of India and RBI, making it equivalent to physical rupees.
• Benefits:
  • Faster, secure, and traceable payments.
  • Reduces black money circulation.
  • No interest on holdings, but minimal transaction costs.

Cryptocurrency vs e-Rupee

Feature	Cryptocurrency	e-Rupee (Digital Rupee)
Issuer	Decentralized, created by private entities	Centralized, issued by RBI
Legal Status in India	Not legal tender; investment allowed	Legal tender, backed by RBI
Value Stability	Highly volatile; depends on market demand	Stable; 1 e-Rupee = 1 INR
Underlying Technology	Blockchain, decentralized ledger	Digital ledger, controlled by RBI (CBDC)
Purpose	Investment, trading, peer-to-peer transfer	Digital payments, financial inclusion, faster settlements
Regulation	Partially regulated; no government guarantee	Fully regulated; government-backed
Interest / Incentives	None inherently	FD or bank account may earn interest (depends on storage method)
Risk	High (market risk, fraud, scams)	Low (regulated, government-backed)

Agriculture

1. NABARD Takes Steps to Secure GI Tag for Jharkhand’s Traditional Products

Source: TOI

Context:

The National Bank for Agriculture and Rural Development (NABARD) has initiated efforts to secure Geographical Indication (GI) tags for nine traditional products from Jharkhand. The move aims to protect local products, prevent imitation, and enhance market opportunities both nationally and internationally.

Key Highlights:

• Products Identified for GI Tag:
  • Atthe Mutton – Deoghar
  • Sweet Tamarind – Simdega
  • Biru Gamcha – Simdega
  • Kuchai Silk Sarees – Seraikela Kharsawan
  • Kuchai Turmeric – Seraikela Kharsawan
  • Bhagaiyya Silk Sarees – Godda
  • Tribal Jewellery – Ranchi
  • Bamboo Crafts – Ranchi and Deoghar
  • Karni Shawl – Khunti
• Objective of GI Tagging:
  • Prevent imitation and ensure authenticity.
  • Enhance market credibility for traditional products.
  • Open national and global market opportunities for artisans.
• NABARD’s Promotion Strategy:
  • Authorized user enrollment for GI products.
  • Branding and marketing support.
  • Market linkages and participation in fairs.

2. 5th Farmer Producer Organisation (FPO) Conclave by Samunnati & NABARD

Context:

Samunnati, in partnership with NABARD, organized the 5th National FPO Conclave at the Hyderabad International Convention Centre, themed “Partnerships for Sustainability towards a Future-Ready FPO Ecosystem.” The conclave brought together policymakers, industry leaders, and farmer collectives to discuss strategies for strengthening India’s FPO movement.

Key Highlights:

• Launch of ACCESS SAP Report on Social Procurement:
  • Focused on responsible procurement practices.
  • Aimed to integrate smallholder farmers into mainstream markets and promote rural entrepreneurship.
• Panel Discussions:
  • Inclusive Digital Advisory Services: Showcased farmer-centric technologies improving access to knowledge, finance, and markets.
  • Policy-Finance Linkages for Sustainable Horticulture: Highlighted the alignment of policy with financial mechanisms for innovation and investment.
  • Perspectives on Agri Marketing: Discussed the evolution from local haats to global value chains.

Facts To Remember

1. Japan PM resigns after party’s loss in July polls

Japan’s Prime Minister Shigeru Ishiba announced on Sunday that he will resign, following growing calls from within his party to take responsibility for a historic defeat in parliamentary election in July.

2. Anuparna Roy wins best director award at Venice festival

Filmmaker Anuparna Roy, who made her debut with Songs of Forgotten Trees, has bagged the best director award at the Venice International Film Festival.

3. Thailand tycoon takes office as new PM after royal endorsement

Thai tycoon Anutin Charnvirakul took office as Prime Minister on Sunday, after an endorsement from the King. 

4. India rules Asia, books a World Cup spot

India ended an eight year wait to be crowned the continental champion, winning 4-1 against defending champion Korea in the final of the Asia Cup here on Sunday and assuring itself of a spot at the 2026 World Cup.

5. Indian men shoot gold in the compound event

The Indian compound men’s team held its nerve to beat France and claim its maiden gold medal at the World archery championships in Gwangju, Korea.

6. PSBs Shut 1.5 Million Inoperative Jan Dhan Accounts

Public-sector banks (PSBs) closed nearly 1.5 million inoperative zero-balance accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) in April 2025 as a one-time exercise.

7. Nepal PM KP Oli Resigns!

Nepal’s Prime Minister KP Oli resigned , officials confirmed, stepping down amid mounting pressure after one of the deadliest crackdowns in years left at least 19 people dead and reignited nationwide protests.

Daily Current Affairs Quiz
9 September, 2025

National Affairs

1. Two-Factor Authentication (2FA) and TOTP

Source: TH

Context:

With rising cyber threats, passwords alone are no longer secure. Many online services now rely on Two-Factor Authentication (2FA), often implemented through apps like Google Authenticator, which generate time-based one-time passwords (TOTPs).

What is 2FA?

• Two-Factor Authentication requires two proofs of identity:
  1. Something you know → Your password.
  2. Something you have → An authenticator app or hardware token.
• This makes attacks harder because both your password and your device are needed.

What are OTPs and TOTPs?

• OTP (One-Time Password): A short numeric code valid for a single use, expiring within seconds.
• TOTP (Time-based OTP): A special form of OTP that changes every 30 seconds.
• Defined under an open standard, ensuring compatibility across services and apps.

How Does TOTP Work?

• Secret Key Sharing: During setup, the service gives your app a secret key (often via QR code). Both sides store it.
• Time Counter: Time is divided into 30-second intervals, each with a unique counter value.
• HMAC Function:
  • Inputs: secret key + current time counter.
  • Process: Run through HMAC-SHA-256, a secure cryptographic function.
• Dynamic Truncation: Extract part of the HMAC output.
• Final OTP: Reduce it to a 6-digit code (000000–999999).

Because both your phone and the server share the secret key and use the same time slice, they generate identical codes.

Read more>>

2. Bhil Tribe

Source: TH

Context:

The Union government’s new translation initiative for tribal languages has enabled the publication of Anuvad, a Hindi collection of Bhil folk tales from Madhya Pradesh. The e-booklet will be made available on the Tribal Affairs Ministry’s Adi Vaani website and app.

Bhil Tribe:

• One of India’s oldest tribal communities, name derived from Dravidian word billu/villu (bow).
• The largest tribes in India, according to the 2011 Census, are the Bhil tribe, followed by the Gond tribe and the Santhal tribe. 
• Habitats: Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Bihar; smaller populations in Tripura, Chhattisgarh, and Jharkhand.
• Culture: Patriarchal yet community-centric, rich oral traditions, folk tales, music, theatre, and worship of local/natural deities.

Adi Vaani Platform:

• Launched by the Ministry of Tribal Affairs for translation between Adivasi languages and Hindi/English.
• Currently supports Gondi, Bhili, Mundari, and Santali; support for Kui and Garo planned.
• Available on Android and iOS with a feedback mechanism for improving accuracy.
• Developed as a cost-effective, frugal innovation using linguistic data from State Tribal Research Institutes.

3. Vice President of India Election

Context:

Prime Minister of India cast the first vote in the Vice Presidential election, where CP Radhakrishnan and Justice B. Sudershan Reddy are contesting.

Electoral Process:

• Electoral College:
  • Composed of all elected and nominated members of Lok Sabha and Rajya Sabha.
  • Unlike the President’s election, State Legislatures are excluded.
• Equal Value of Votes:
  • Each MP’s vote = 1 (no weighted value like in Presidential election).
• Ballot Paper & Preferences:
  • Ballot paper is pink, bilingual (Hindi & English).
  • MPs mark preferences numerically (1, 2, 3…).

Quota Calculation (Winning Threshold):

• Formula: (Total Valid Votes ÷ 2) + 1
• Example: If 780 MPs vote, quota = 391 votes.

Counting & Transfer of Votes (Single Transferable Vote – STV):

• First Preference Count: Candidate reaching quota is declared elected.
• If no one reaches quota → lowest candidate eliminated, votes transferred based on next preference.
• Process repeats until a candidate crosses the quota.

Constitutional Provisions:

• Article 63: Establishes the office of the Vice President as the second-highest constitutional authority.
• Article 64: Vice President is ex-officio Chairperson of the Rajya Sabha; cannot hold any other office of profit.
• Article 65: Acts as President in the event of death, resignation, removal, or incapacity of the President, until a new election is held (within 6 months).

Eligibility Criteria:

• Citizenship: Must be a citizen of India.
• Age: Minimum 35 years.
• Qualification: Must be eligible for election as a member of the Rajya Sabha.
• Office of Profit: Cannot hold any office of profit under the Union, State, or local authority, except as Vice President, Governor, or Union/State Minister.

Key Features of the Office:

• Tenure: 5 years; continues until successor assumes office.
• Vacancy & Removal:
  • Can resign to the President.
  • Can be removed by a Rajya Sabha resolution, agreed to by Lok Sabha (14-day notice required).
• Acting President: Assumes all powers, privileges, and emoluments of the President during absence or vacancy.
• Chairperson Role:
  • Presides over Rajya Sabha debates and maintains order.
  • Does not vote, except in case of a tie.

4. Pallas’s Cat

Source: TOI

Context:

A wildlife survey by WWF-India in collaboration with the Arunachal Pradesh Forest Department has provided the first-ever photographic evidence of Pallas’s cat in the state, reaffirming the eastern Himalayas’ position as a global biodiversity hotspot.

About Pallas’s Cat:

• Scientific name: Otocolobus manul.
• Small wild cat, adapted to cold, arid environments.
• Known for its dense fur, stocky build, and flattened face.
• Habitat: Central Asia, Mongolia, Tibet, and Himalayan regions.
• IUCN Status: Near Threatened

Banking/Finance

1. SEBI Postpones Settlement for Cash and SLBM Segments

Source: BS

Context:

The Securities and Exchange Board of India (SEBI) announced changes in the settlement schedule for cash and securities lending and borrowing mechanism (SLBM) market segments due to clearing corporation holidays.

Key Highlights:

• Reason for Revision: Clearing corporation holidays impacting normal settlement cycles.
• Affected Segments:
  • Cash market
  • SLBM market
• Objective: Ensure smooth settlement operations, avoid disruptions, and maintain market integrity.
• Cash Market: Trades in the regular stock market where shares are bought/sold for immediate delivery (T+2).
• SLBM: A market that allows investors to lend or borrow securities temporarily, facilitating activities like short selling and enhancing liquidity.
• Settlement Schedule: The timeline for transfer of money and securities post-trade.

2. SAT Asks Sebi to Explain Non-Disclosure of Documents in Jane Street Case

Source: ET

Context:

On 10 September 2025, the Securities Appellate Tribunal (SAT) directed Sebi to file a reply within three weeks explaining why it has not disclosed certain documents to US-based trading firm Jane Street in the ongoing derivatives market manipulation case.

Background:

• Jane Street had approached SAT alleging that SEBI failed to provide key documents related to its investigation into derivatives market manipulation, which they claimed were necessary to defend themselves effectively.
• The case pertains to alleged trading irregularities in the derivatives segment, potentially involving misuse of market positions, insider trading, or other manipulative practices.

SEBI Norms Potentially Invoked:

• SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 – Prevents market manipulation, deceptive practices, or artificial price movements.
• SEBI (Prohibition of Insider Trading) Regulations, 2015 – Addresses trading based on unpublished price-sensitive information.
• SEBI (Procedure for Holding Inquiry and Imposing Penalties) Regulations, 2014 – Governs how SEBI conducts investigations and shares documents with parties under inquiry.
• SEBI Act, 1992 (Sections 11, 11B, 11C) – Provides SEBI the authority to regulate securities markets and take action against manipulative practices.

Securities Appellate Tribunal (SAT)

The Securities Appellate Tribunal (SAT) is a quasi-judicial body in India that adjudicates disputes and appeals arising from decisions of the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA).

Establishment:

• Constituted under Section 15K of the Securities and Exchange Board of India Act, 1992.
• Located in Mumbai, but can hold hearings at other places if necessary.

3. Reinsurance India

Context:

Jio Financial Services Ltd (JFSL) and Allianz Germany have incorporated a joint venture company named Allianz Jio Reinsurance Ltd (AJRL) to operate in the Indian reinsurance sector, reflecting the growing demand for risk management solutions in the country.

What is a Reinsurer?

• A reinsurer is an insurance company that provides insurance to other insurance companies.
• It helps share or transfer risk, especially for large or catastrophic exposures, so that no single insurance company bears the entire risk.
• Example: If an insurance company covers a huge industrial project, it may cede a portion of the premium and risk to a reinsurer like Allianz Re.

Key Functions of a Reinsurer:

1. Risk diversification for insurers.
2. Protection against huge claims.
3. Financial stability of insurance companies.
4. Capacity building for large-scale insurance coverage.

Types of Insurance

Type of Insurance	Description	Examples
Life Insurance	Covers death, disability, or survival risks. Provides financial security to dependents.	Term insurance, Endowment plans, ULIPs
General (Non-Life) Insurance	Covers property, health, vehicles, liability, etc.	Health insurance, Motor insurance, Home insurance, Travel insurance
Reinsurance	Insurance for insurance companies to share/transfer risk. Can be treaty-based (portfolio) or facultative (specific risk).	Allianz Re, Swiss Re, GIC Re (Only Indian reinsurer company in India)
Microinsurance	Low-cost insurance for low-income populations.	Crop insurance for small farmers, Livestock insurance

Who Regulates Insurance in India?

• Regulator: Insurance Regulatory and Development Authority of India (IRDAI)
• Established: 1999 (under IRDA Act, 1999)

4. Ujjivan Small Finance Bank Awaits RBI Nod for Universal Bank Licence

Source: Mint

Context:

Ujjivan Small Finance Bank (SFB) is awaiting the Reserve Bank of India’s (RBI) decision on its application for a universal banking licence, which could come by December 2025, according to CEO Sanjeev Nautiyal.

About Universal Bank:

A universal bank in India is a financial institution that provides the entire spectrum of banking services, including:

• Retail banking
• Corporate banking
• Investment banking
• Treasury services
• Asset management

Criteria to Become a Universal Bank in India (RBI Guidelines):

• Net Worth: The applicant bank must have a minimum paid-up capital of ₹500 crore (may vary as per RBI directions).
• Profitability & Track Record: The bank should have a strong financial track record and operational performance (for SFBs or other applicants).
• Corporate Governance: Robust governance, risk management, and compliance framework.
• Capital Adequacy: Must meet the Capital to Risk-Weighted Assets Ratio (CRAR) requirements as per Basel norms (minimum 9% for Indian banks).
• Promoter Eligibility: Promoters must meet RBI criteria regarding integrity, experience, and financial soundness.
• Business Plan: Must submit a credible business plan outlining financial projections, growth strategy, and risk management.

5. SBI Launches “Dream2Demo” Startup Pitch Fest

Context:

State Bank of India (SBI), through its Start-up Branch, hosted its first-ever Startup Pitch Fest called “Dream2Demo” to provide a platform for entrepreneurs to showcase their business ideas directly to leading investors. The event was held to promote innovation and strengthen India’s startup ecosystem.

Key Highlights:

• Financial Products: SBI showcased customized offerings for startups, including equity-linked funding solutions.
• Collaborations: The bank highlighted its partnerships with Startup TN and IIT Madras Incubation Cell.
• Objective: Facilitate startup growth from grassroots to global stages, ensuring mentorship, funding, and exposure.

Related Initiatives:

• In August 2025, SBI established a Centre of Excellence (CoE) for Micro, Small and Medium Enterprises (MSMEs) at the State Bank Academy (SBA) in Gurugram to further support business development and financial inclusion.

About SBI:

• Founded: 1 July 1955
• Headquarters: Mumbai, Maharashtra, India
• Chairman: Challa Sreenivasulu Setty

Economy

1. Small Business Spotlight Report

Context:

The Small Industries Development Bank of India (SIDBI), in collaboration with CRIF High Mark, released the Small Business Spotlight report, providing insights into lending trends, borrower segments, and geographic distribution of small business credit in India.

Key Highlights:

Credit Growth

• Total outstanding credit: ₹15.3 lakh crore (YoY growth 19.3%)
• Active loans: 6.9 crore (YoY growth 8.7%)
• Small business definition: Businesses with aggregate credit exposure ≤ ₹5 crore

Top Borrower Segments

Segment	Contribution / Growth	Key Insight
Enterprises	Portfolio growth 24.7% YoY	Highest growth in outstanding credit
Sole Proprietors with Entity Presence	Borrower count growth 9.3% YoY	Fastest increase in number of borrowers
Sole Proprietors	>75% of outstanding credit, >85% of active loans	Dominant segment in terms of volume

Geographic Distribution

Top States by Portfolio Outstanding:

Rank	State	Outstanding (₹ Thousand cr)	YoY Growth (%)	% Share
1	Maharashtra	606.2	16.4	13.4%
2	Tamil Nadu	421.9	15.7	9.3%
3	Gujarat	369.2	17.8	8.2%
4	Uttar Pradesh	361.7	20.7	8.0%
5	Karnataka	318.6	15.3	7.0%

Read more>>

Facts To Remember

1. Sankarshan Thakur, senior journalist, passes away

Sankarshan Thakur, Editor of The Telegraph, passed away in a Gurgaon hospital on Monday. He was 63.

2. Macron Appoints Defence Minister Lecornu, 39, as France’s New PM

French President Emanuel Macron late on Tuesday appointed defence minister Sébastien Lecornu (in pic) as France’s new Prime Minister, the country’s fourth in about a year.

3. Doctors to bat for Healthcare League cancer awareness

In a unique initiative to promote cancer awareness, doctors, including former Director General of ICMR Prof Balram Bhargava, will swap their stethoscopes for cricket bats.

Daily Current Affairs Quiz
10 September, 2025

National Affairs

1. Swachh Vayu Sarvekshan Awards & Wetland Cities Recognition Ceremony 2025

Source: PIB

Context:

The Ministry of Environment, Forest and Climate Change (MoEFCC) organised the Swachh Vayu Sarvekshan Awards 2025 & Wetland Cities Recognition Ceremony to honour the best-performing cities under the National Clean Air Programme (NCAP) and recognise cities safeguarding wetlands.

About Swachh Vayu Sarvekshan (SVS) 2025

• Conducted in 130 NCAP cities to promote competition for improving air quality.
• Structured as a multi-tier evaluation mechanism based on due diligence.
• Awards given in three population categories.

Winners:

• Category 1 (population >10 lakh):
  • 1st – Indore (₹1.5 crore prize, Guinness record tree plantation, EV public transport).
  • 2nd – Jabalpur (₹1 crore, 11 MW waste-to-energy plant).
  • 3rd – Agra & Surat (₹25 lakh each; Agra – legacy waste remediation, Surat – EV policy & 38% green cover).
• Category 2 (population 3–10 lakh):
  • 1st – Amravati (₹75 lakh, 340 km road infrastructure, urban forests).
  • 2nd – Jhansi & Moradabad (₹25 lakh each; greening & C&D waste management).
  • 3rd – Alwar (₹25 lakh, legacy waste remediation).
• Category 3 (population <3 lakh):
  • 1st – Dewas (₹37.5 lakh, industries shifted to cleaner fuels).
  • 2nd – Parwanoo (₹25 lakh, road infrastructure).
  • 3rd – Angul (₹12.5 lakh, public outreach & C&D waste management).

National Clean Air Programme (NCAP)

• Launched: 15 August 2020 with target cities.
• Funding:
  • ₹20,130 crore allocated to 130 cities.
  • ₹13,237 crore performance-linked grants released.
  • Total mobilization of ₹1.55 lakh crore (Centre, states, local bodies).
• Achievements:
  • 103 cities improved PM10 levels.
  • 64 cities achieved 20% reduction in PM10 levels (2017–25).
  • 25 cities achieved 40% reduction by 2025.
• Initiatives:
  • Circular economy approach (recycle & reuse).
  • PRANA portal for monitoring progress.
  • Ward-level Swachh Vayu Sarvekshan guidelines released.
  • Compendium of best practices launched.

Wetland Cities Recognition

• Ramsar Wetland City Accreditation scheme recognises exceptional urban wetland management.
• 2025 Recognition: Indore and Udaipur were certified as Wetland Cities by Ramsar Convention.
• India now has 91 Ramsar sites covering 1.36 million hectares (highest in Asia, 3rd globally).
• Linked to Mission Amrit Sarovar and Mission LiFE to rejuvenate water bodies and promote sustainable living.

2. Exercise Zapad 2025

Source: PIB

Context:

An Indian Armed Forces contingent has left for Russia to participate in Zapad 2025, a multilateral military exercise at the Mulino Training Ground, Nizhniy.

About Exercise Zapad 2025:

• Purpose: Designed to simulate high-intensity conventional warfare and counter-terrorism operations in a multinational setting.
• Host & Participants: Hosted by Russia, with participation from India and other partner nations.
• History: Zapad (meaning “West” in Russian) exercises have been conducted since the Soviet era, with modern iterations held quadrennially since 2009. India also participated in Zapad 2021.

3. U.K.–India Infrastructure Financing Bridge (UKIIFB)

Source: TH

Context:

The U.K.–India Infrastructure Financing Bridge (UKIIFB), launched in September 2024, completed its first year. On its anniversary in London, the initiative released a report recommending policy reforms to de-risk investments in India’s infrastructure sector.

About UKIIFB

• A bilateral platform to mobilise global private capital for India’s sustainable infrastructure.
• Launched in September 2024 during the India–UK Economic and Financial Dialogue.
• Lead institutions: NITI Aayog (India) & City of London Corporation (U.K.).

Objectives:

• Mobilise international private sector investments into Indian infrastructure.
• Align Indian procurement with global best practices (UK’s Five Case Model).
• Ensure compliance with ESG standards.
• Address barriers like revenue risks, taxation, and capital repatriation issues.

Functions:

• Provide policy recommendations for transparency and competitiveness in project financing.
• Develop knowledge frameworks for sustainable and climate-resilient infrastructure.
• Support joint planning & structuring of projects (roads, metros, renewable energy).
• Promote green finance and climate-resilient models.

Banking/Finance

1. Sebi Focuses on Easing FPI Investments Amid Global Uncertainties

Source: TOI

Context:

Since March 2025, Tuhin Kanta Pandey, Sebi Chairman, has been engaging with Foreign Portfolio Investors (FPIs), offshore strategic investors, and PE funds to encourage capital inflows critical for India’s balance of payments and currency stability. This comes amid choppy equity markets, cautious corporate capex, volatile bond prices, and US tariff pressures affecting the current account deficit.

Key Investor Proposals Under Consideration:

• FPI License Tenure
  • Proposal: Extend tenure from 3 years to 5 years.
  • Current SEBI Norm: As per SEBI (FPI) Regulations, 2019, FPI registration is valid for 3 years (renewable).
• KYC Reforms
  • Proposal: Simplify onboarding.
  • Current Norm: FPIs must comply with KYC norms under SEBI Master Circular on KYC (April 2023), including PAN, beneficial ownership disclosure, and FATF compliance.
• Disclosure Norms
  • Proposal:
    • Exempt large private funds from granular disclosures.
    • Review the rule mandating disclosure of all natural persons owning >10% in FPIs.
  • Current Norm: Under SEBI (FPI) Regulations, 2019 & August 2023 circular, FPIs must disclose all beneficial owners (BOs) per Prevention of Money Laundering (PMLA) rules.
• Primary Market Measures
  • Proposal:
    • Shorten approval time for IPOs.
    • Allow low-risk FPIs to raise funds from NRIs.
    • Permit domestic institutions to act as sponsors/managers for FPIs in GIFT City.
  • Current Norm:
    • IPO approval follows SEBI (ICDR) Regulations, 2018—minimum public shareholding (MPS) of 25% within 3 years.
    • FPIs are barred from pooling NRI money unless through regulated routes.
• Mega IPOs
  • Proposal: Allow longer timelines to meet MPS of 25%.
  • Current Norm: Under SEBI (LODR) & ICDR Regulations, companies must achieve 25% public shareholding within 3 years of listing (exceptions possible for large issues).

2. Suryoday SFB Launches RuPay Secured Credit Cards Backed by FDs

Source: Mint

Context:

Suryoday Small Finance Bank (SSFB) launched two secured credit cards – RuPay Select and RuPay Platinum, backed by fixed deposits (FDs) as collateral.

Credit Cards Backed by FDs (Fixed Deposits)

• A secured credit card issued against a customer’s Fixed Deposit (FD) kept with the bank.
• The FD acts as collateral, reducing risk for the bank.
• Useful for people with no credit history, low income, or bad credit score.

About Suryoday Small Finance Bank Ltd:

• Incorporated: 2008; began SFB operations in 2017
• MD & CEO: Mr. Baskar Babu Ramachandran
• Focus: Financial inclusion and innovative credit solutions for underserved segments

Agriculture

1. NCEL and APEDA Sign MoU to Boost Cooperative-Led Agricultural Exports

Source: ET

Context:

National Cooperative Exports Limited (NCEL) and Agricultural and Processed Food Products Export Development Authority (APEDA) signed a Memorandum of Understanding (MoU) to enhance agricultural exports driven by cooperatives.

About National Cooperative Exports Limited (NCEL)

What it is?

• A national-level multi-state cooperative society serving as an umbrella organisation for all cooperative exports.
• Established: 25 January 2023, under the Multi-State Cooperative Societies Act, 2002.
• Headquarters: New Delhi.

Objectives:

• Facilitate export opportunities for Indian cooperatives.
• Strengthen farmers’ income through international market access.
• Realise the cooperative vision of “Sahakar se Samriddhi.”

Facts To Remember

1. ‘Anti-conversion’ Bill passed in Rajasthan

The Rajasthan Assembly on Tuesday passed a Bill to prevent religious conversions. Those returning to their “ancestral religion” are exempted from its stringent penal provisions. 

2. Ethiopia Inaugurates Grand Ethiopian Renaissance Dam (GERD)

Egypt lodged a protest at the UN, citing the dam as an existential threat to its water security. Ethiopia inaugurated the Grand Ethiopian Renaissance Dam (GERD), Africa’s largest hydroelectric project.

3. Ministry of Statistics Invites Feedback on Draft National Industrial Classification (NIC) 2025

The Ministry of Statistics and Programme Implementation has invited feedback on the draft National Industrial Classification (NIC) 2025. 

Daily Current Affairs Quiz
11 September, 2025

International Affairs

1. NASA Rover Finds Potential Sign of Ancient Life in Martian Rocks

Context:

On 10 September 2025, scientists reported that a rock sample collected by NASA’s Perseverance rover from Mars’ Jezero Crater shows potential signs of ancient microbial life, though non-biological processes cannot be ruled out. The findings were published in Nature journal.

Key Highlights:

• Sample Name: Sapphire Canyon sample.
• Location: Bright Angel rock formation in Jezero Crater, believed to be an ancient lake basin formed ~3.5 billion years ago.
• Rock Type: Sedimentary rocks – mudstones and conglomerates.
• Detected Minerals (Potential Biosignatures):
  • Vivianite (iron phosphate).
  • Greigite (iron sulfide).

About Perseverance Rover

• Landed: February 2021.
• Mission Goal: Explore Jezero Crater, collect rock and regolith samples, and seek signs of ancient microbial life.
• Long-Term Plan: Samples may be returned to Earth in future NASA–ESA missions for deeper analysis.

National Affairs

1. Adi Sanskriti” Digital Platform

Source: TH

Context:

On 10 September 2025, the Union Ministry of Tribal Affairs launched the beta version of “Adi Sanskriti”, a digital platform designed to preserve, promote, and commercialize tribal artforms and heritage. Officials highlighted that it is envisioned to evolve into the world’s first Digital University dedicated to tribal culture and knowledge.

Key Features of Adi Sanskriti:

• Three Core Components:
  • Adi Vishwavidyalaya – Digital Tribal Art Academy, aimed at teaching, preserving, and promoting tribal artforms.
  • Adi Sampada – A socio-cultural repository, serving as a digital archive of tribal traditions, folklore, knowledge systems, and heritage.
  • Adi Haat – A digital marketplace for tribal artisans, providing direct online access to consumers and helping expand tribal entrepreneurship.
• Marketplace Integration:
  • Will open digital markets for tribal products, boosting income and reducing middlemen exploitation.
  • Enables global reach for tribal handicrafts, textiles, and art.
• Digital University Vision:
  • Designed to become a first-of-its-kind Digital University globally.
  • Offers knowledge-sharing, training modules, and certification in tribal arts and crafts.

2. Small Satellite Launch Vehicle (SSLV)

Source: TH

Context:

On 10 September 2025, the Indian Space Research Organisation (ISRO) signed a formal agreement with Hindustan Aeronautics Ltd. (HAL) to transfer technology for the production of Small Satellite Launch Vehicles (SSLVs). The deal marks a major milestone in industry participation in India’s space sector.

About Small Satellite Launch Vehicle (SSLV):

• What it is:
  • A 3-stage, cost-effective launch vehicle designed to deploy small satellites
  • Equipped with three solid propulsion stages and a liquid-based Velocity Trimming Module (VTM) for final orbital adjustments
  • Developed by ISRO
• Objective:
  • Meet growing global demand for small satellite launches
  • Provide low-cost, quick-turnaround, launch-on-demand capability with minimal infrastructure
• Specifications:
  • Size: ~2 meters wide, 34 meters tall (≈11-storey building)
  • Engines & Propulsion:
    • First Stage: Solid fuel
    • Second Stage: Solid fuel
    • Third Stage: Solid fuel
    • VTM: Small liquid-fuel engines (MMH + MON-3) with 16 thrusters for precise orbit placement

3. Unicef Report: “Feeding Profit: How Food Environments Are Failing Children”

Source: ET

Context:

Unicef released its report “Feeding Profit: How Food Environments Are Failing Children”, highlighting the role of the ultra-processed food (UPF) and beverage industry in worsening childhood obesity and unhealthy diets.

Key Highlights of the Report:

• Industry Influence
  • UPF industry has disproportionate control over children’s food environments.
  • Uses financial resources, lobbying, and marketing to resist healthier food policies.
  • Targets schools and communities where regulation is weak.
• Rising Childhood Obesity
  • Low and middle-income countries face the steepest rise in overweight children.
  • UPFs are cheap, widely available, and aggressively marketed in homes, schools, and retail markets.
• Case Studies
  • In Tanzania & Zimbabwe, UPF companies entered schools via public-private partnerships.
  • Built brand loyalty among children and improved corporate image at the cost of health.
• Global Trends
  • Overweight vs. Underweight (2000 vs. 2022):
    • 2000: 13% underweight vs. 11% overweight.
    • 2022: 10% underweight vs. 20% overweight.
  • Being overweight has overtaken underweight as the dominant form of malnutrition in children aged 5–19.

Recommendations by UNICEF

• Robust Safeguards: Protect policy-making from UPF industry interference.
• Conflict-of-Interest Measures: Prevent industry actors from influencing health and nutrition policies.
• Limit Availability & Marketing: Restrict UPFs in schools and children’s environments.
• Promote Healthy Food Environments: Ensure affordable and accessible nutritious foods.

4. Fast Track Immigration – Trusted Traveller Program (FTI–TTP)

Source: ET

Context:

On 12 September 2025, Union Home Minister Amit Shah launched the FTI–TTP facility at Lucknow, Thiruvananthapuram, Kozhikode, Tiruchirappalli, and Amritsar international airports through videoconferencing.

About FTI–TTP

• Launched on: 22 June 2024 at Delhi’s IGI Airport.
• Objective: To provide faster, seamless, and secure immigration using biometric authentication at automated e-gates.
• Vision Alignment: Part of ‘Viksit Bharat @2047’ mission for world-class infrastructure.

5. New Fungal Species Discovered in the Western Ghats

Context:

Indian scientists from MACS–Agharkar Research Institute (Pune), under the Department of Science & Technology (DST), have discovered two new species of Aspergillus section Nigri in the Western Ghats, along with the first reports of two other species in India.

About Aspergillus Section Nigri

• Commonly called black aspergilli.
• Widely found in soil and plants.
• Industrial and agricultural uses: citric acid production, fermentation, food industry, soil nutrient support.
• Known as “workhorses of biotechnology” due to their versatile applications.

Newly Identified Species

• Aspergillus dhakephalkarii
  • Location: Western Ghats.
  • Features: Rapid growth, brown spores, orange sclerotia.
  • Spores: Smooth and oval-shaped (distinct from spiny spores in other species).
• Aspergillus patriciawiltshireae
  • Location: Western Ghats.
  • Features: Fast-growing, abundant sclerotia, moderate spore production.
  • Spores: Spiny with branching structures splitting into many columns.

6. India’s First Overseas Atal Innovation Centre Inaugurated

Source: PIB

Context:

The Union Education Minister of India inaugurated India’s first overseas Atal Innovation Centre at the IIT Delhi–Abu Dhabi campus during his UAE visit in September 2025.

About the Atal Innovation Centre (Overseas)

• What it is: Premier innovation hub established outside India under the Atal Innovation Mission (AIM).
• Objective:
  • Promote innovation, research, and entrepreneurship among students and young professionals.
  • Strengthen India–UAE collaboration in education, sustainability, and technology-driven solutions.
• Functions:
  • Incubate start-ups and mentor innovators.
  • Provide infrastructure and labs for advanced research.
  • Encourage student exchange, teacher training, and skill-building programs.
  • Serve as a bridge for global knowledge-sharing and innovation networks.

About Atal Innovation Mission (AIM)

• What it is: Flagship initiative by the Government of India to create a culture of innovation and entrepreneurship.
• Implementing Agency: NITI Aayog.
• Key Features:
  • Atal Tinkering Labs (ATLs):
    • Labs in schools for Classes 6–12 to learn robotics, IoT, 3D printing, electronics.
    • Over 10,000 labs established across India.
  • Atal Incubation Centres (AICs):
    • Business incubators at universities and corporates.
    • Provide mentoring, funding, networking, and infrastructure.
    • 72 AICs supporting 3,500+ start-ups, generating 32,000+ jobs.
  • Entrepreneurial Ecosystem:
    • Focus on sectors like HealthTech, FinTech, AgriTech, EdTech, Food Processing, Drone & Space Tech, AR/VR.
    • Supported over 1,000 women-led start-ups.

Banking/Finance

1. RBI Launches New Microsite for Banknote Information

Source: RBI

Context:

The Reserve Bank of India (RBI) has launched a dedicated microsite for banknotes: indiancurrency.rbi.org.in. The platform is designed to provide the public with comprehensive information on Indian banknotes, replacing the earlier microsite paisaboltahai.rbi.org.in.

Key Highlights:

• Purpose:
  • To offer an interactive platform for accessing detailed information about Indian banknotes.
  • Enhances public awareness of banknote design, security features, and circulation.
• Features:
  • 360-degree view of banknotes.
  • Multimedia content: videos, audios, animations.
  • Interactive games to educate users about currency.
  • Dedicated section on the exchange of banknotes.
  • Simple and efficient navigation for users of all ages.
• Replacement:
  • Supersedes the earlier microsite paisaboltahai.rbi.org.in with improved user interface and content.

Significance:

• Promotes financial literacy and awareness about currency security features.
• Helps in preventing counterfeiting by educating the public.
• Provides a user-friendly platform for learning about banknotes and their circulation.

2. PhonePe Partners with MSME Ministry & SIDBI to Boost Udyam Registrations

Source: TH

Context:

Digital payments platform PhonePe has announced a partnership with the Ministry of MSMEs and the Small Industries Development Bank of India (SIDBI) to help onboard more small merchants onto the Udyam registration facility. This move aims to increase formalisation of MSMEs, enabling them to access credit and government schemes.

Key Highlights:

• Objective
  • To register more small merchants with Udyam, the government’s official platform for MSME recognition.
  • Formalisation will help merchants become eligible for credit, subsidies, and welfare schemes.
• Role of SIDBI
  • Has already developed an “Assist Platform” to simplify Udyam registration.
  • Works as a facilitator for MSME access to finance and formalisation.
• PhonePe’s Role
  • Will leverage its large merchant base and digital reach to promote Udyam registration.
  • Acts as a digital enabler for small businesses to join the formal economy.

Udyam Registration (MSME Registration in India)

• What: Official online registration for Micro, Small, and Medium Enterprises (MSMEs), replacing Udyog Aadhaar.
• Eligibility: Manufacturing or service MSMEs, classified by investment and turnover:

• Process: Fully digital; requires Aadhaar, PAN, and GSTIN; issues unique Udyam Registration Number.
• Benefits: Access to government schemes, priority sector lending, protection under MSME policies, ease of doing business, export incentives.
• Recent Update: Platforms like Udyam Assist (PhonePe + SIDBI) help informal micro-enterprises formalize digitally.

3. SEBI Eases Rules for Foreign Investors in Government Bonds

Context:

The Securities and Exchange Board of India (SEBI) announced that its revised regulations for foreign investors investing exclusively in Indian government securities will come into effect from 8 February 2026. The rules were initially approved at SEBI’s board meeting in June 2025.

Key Highlights:

• Applicability:
  • Applies to Foreign Portfolio Investors (FPIs) who invest only in Indian government bonds under the fully accessible route.
• Relaxed Disclosure Requirements:
  • FPIs under this route need not disclose their investor group details, unlike regular FPIs investing in equity or other debt instruments.
  • Exemptions also cover certain reporting requirements applicable to regular FPIs.

About Fully Accessible Route (FAR)

• Introduced by the RBI in April 2020.
• Permits non-resident investors to invest in specified categories of government securities without restrictions.
• Aimed at attracting global capital flows into India’s bond market.

Role of FPIs:

• FPIs are foreign entities or individuals allowed to invest in Indian securities (equities, corporate debt, or government bonds).
• They bring foreign capital, enhance liquidity, and contribute to market depth.
• Under the FAR, FPIs can invest in government securities with fewer compliance burdens, promoting ease of access and long-term investments.

4. EPFO 3.0 Initiative

Context:

The Employees’ Provident Fund Organisation (EPFO) is expected to deliberate on the EPFO 3.0 initiative at its Central Board of Trustees (CBT) meeting scheduled for October 10–11, 2025. The meeting will be chaired by Labour and Employment Minister Mansukh Mandaviya.

Key Highlights:

What is EPFO 3.0: EPFO 3.0 is a proposed upgrade to the Employees’ Provident Fund Organisation’s digital ecosystem aimed at enabling seamless, bank-like services for subscribers.

Key Features:

• Digital Withdrawals: Allows partial withdrawal of provident fund (PF) balances via ATMs or UPI without extensive paperwork.
• Enhanced Pension: The central board may consider raising the minimum monthly pension from ₹1,000 to ₹1,500–2,500, addressing a long-pending demand from trade unions.
• User Convenience: Subscribers can access and manage their PF accounts more like a regular bank account, improving financial flexibility.

Objective:

• To modernize EPFO services and provide instant access to funds while maintaining retirement savings security.
• Boost consumption by enabling PF withdrawals ahead of major festivals or events.

5. RBI Approves Yes Bank Board Changes for SMBC Nominee Directors

Source: BL

Context:

Yes Bank announced that the Reserve Bank of India (RBI) has approved proposed changes in the Articles of Association (AoA) to facilitate the appointment of nominee directors on its board. This follows the planned stake acquisition by Sumitomo Mitsui Banking Corporation (SMBC) and involvement of SBI.

Key Highlights:

• Nominee Directors Appointment:
  • 2 directors to be nominated by SMBC.
  • 1 director to be nominated by SBI.

What is Articles of Association (AoA)?

• AoA is a legal document that defines the internal rules, powers, and governance structure of a company.
• Purpose:
  1. Specifies how the company is managed and run.
  2. Outlines roles and responsibilities of directors, shareholders, and management.
  3. Regulates decision-making, meetings, and board appointments.
• Relevance to Banks:
  • Any change in board structure, capital, or powers of directors in a private bank requires RBI approval via AoA amendments.

6. Decentralised Finance (DeFi)

Context:

The DeFi boom has raised national security concerns, with experts warning about potential misuse for terror financing and money laundering.

About Decentralised Finance (DeFi)

• What it is: A blockchain-based financial system enabling saving, borrowing, investing, and transacting without traditional banks.
• Origin:
  • Rooted in Bitcoin (2009) philosophy of decentralisation and transparency.
  • Expanded with Ethereum (2015) and DAOs (Decentralised Autonomous Organisations).
• Aim:
  • Democratise financial access by removing intermediaries.
  • Offer inclusive, low-cost, borderless financial services.

How it Works?

• Users create crypto wallets (no KYC needed).
• Transactions occur via smart contracts on the blockchain.
• Services include:
  • Decentralised exchanges (DEXs)
  • Lending & borrowing
  • Payments & derivatives
  • Insurance & stablecoins creation
• Governance is managed by token holders in DAOs, not central authorities.

Key Features:

• Disintermediation: Direct peer-to-peer transactions without banks.
• Transparency: Transactions recorded on a public ledger.
• Anonymity: No identity verification required.
• Interoperability: Works across multiple blockchain applications.
• Low-cost & Fast: Avoids interbank or international fees.

7. Mutual Fund–Voluntary Retirement Account (MF-VRA) Scheme

Source: ET

Context:

The Association of Mutual Funds in India (AMFI) has proposed the Mutual Fund–Voluntary Retirement Account (MF-VRA), a retirement savings scheme inspired by the U.S. 401(k) plan, to boost long-term retirement planning in India.

Key Highlights:

• Voluntary Participation: Individuals can opt-in, with or without employer involvement.
• Employer Contributions: Employers can contribute a portion of employees’ salaries, which can be matched by employees.
• Tax Benefits: Contributions may qualify for deductions under Section 80C of the Income Tax Act.
• Investment Flexibility: Participants can invest in mutual fund schemes, including lifecycle funds that adjust asset allocation with age.
• Portability: Accounts can be transferred across jobs, ensuring continuity in retirement savings.

Comparison with U.S. 401(k):

• Both are employer-linked, tax-advantaged retirement savings schemes.
• Both aim to encourage long-term retirement planning and supplement existing retirement options.

Significance for India:

• Addresses the challenge of a rapidly aging population, projected to reach 21% of the population by 2050.
• Channels household savings into financial markets, enhancing market depth and long-term stability.
• Promotes a culture of retirement savings among individuals, particularly the working population.

8. Sebi Eases Rules for Privately Placed InvITs, REITs, and Portfolio Managers

Source: BS

Context:

The Securities and Exchange Board of India (Sebi) has notified a set of amendments to simplify regulations for Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs), and portfolio managers, aiming to improve ease of doing business and align primary and secondary market norms.

Key Highlights:

• Minimum Allotment Lot for Privately Placed InvITs
  • Reduced to Rs 25 lakh (earlier Rs 1–25 crore depending on asset mix).
  • Aligns primary market allotment with the secondary market trading lot size.
• Classification of Related Parties
  • Units held by related parties of REIT/InvIT sponsors, investment/project managers not counted as “public” unless they are Qualified Institutional Buyers (QIBs).
  • Units held by QIB-related parties now counted as public, enhancing transparency.
• Holdco Cash Flow Adjustments
  • Earlier: Holding company had to distribute 100% of SPV cash flows to REIT/InvIT.
  • Now: Holdco can offset its own negative cash flows before distribution, with proper disclosure to unitholders.
• Reporting Timelines Harmonization
  • Quarterly reports to stock exchanges, trustees, and boards, along with valuation reports, are now aligned with financial results timelines.
  • Replaces previous varied schedules.
• Portfolio Manager Disclosure
  • Simplified format for disclosure documents.
  • Must provide Board-specified format along with Form C certificate before client agreement.
  • Ensures clients get essential information for informed investment decisions.
  • A Portfolio Manager is a professional or firm responsible for managing investments on behalf of clients.

Agriculture

1. FPO Ecosystem in India

Source: BL

Context:

Farmer Producer Organisations (FPOs) have matured into key institutions empowering Indian farmers by aggregating volumes and enhancing bargaining power. Digital technologies and agri-tech startups have improved efficiencies in production, distribution, and services over the last two decades.

Farmer Producer Organisation (FPO)

An FPO is a collective of farmers mainly small and marginal who pool their resources (land, produce, labour) to improve bargaining power, access inputs, and market their produce efficiently. FPOs are registered as producer companies under the Companies Act, or sometimes as cooperatives.

Objectives:

• Aggregate produce to achieve economies of scale.
• Increase farmers’ bargaining power in the market.
• Facilitate access to institutional credit, inputs, and technology.
• Promote sustainable farming and better income for members.

Challenges:

• Low equity capital: Only 387 FPOs have paid-up capital exceeding ₹15 lakh.
• Inactive FPOs: Many remain dormant post-registration due to weak governance, inadequate capital, and lack of business avenues.
• Operational issues: Filing returns, conducting AGMs, and maintaining records remain challenging.
• Human resources gap: Shortage of skilled staff for compliance and day-to-day operations.

Opportunities and Recommendations:

• Strengthen FPOs to function as formal institutions.
• Develop mechanisms to ensure organizational stability.
• Encourage farmers to contribute equity capital to fund infrastructure and generate additional income.
• Digital platforms and agri-tech services are enhancing production efficiency, market access, and overall distribution.

Facts To Remember

1. India’s Nupur, Jaismine assured of medals

Paris Olympian Jaismine Lamboria (57kg) and Nupur Sheoran (80+kg) booked berths in the semifinals to ensure medals for India at the World boxing championships in Liverpool.

2. Double delight for Tamil Nadu in National junior basketball championships

The Tamil Nadu boys’ and girls’ teams bagged the titles in the 75th National junior basketball in Ludhiana.

3. MCD Launches Integrated Property Tax Module Portal for Factory Owners

The Municipal Corporation of Delhi (MCD) has launched an integrated property tax module portal to simplify and speed up the licensing process for factory owners. The unified single-window application was inaugurated at the Civic Centre by Mayor Raja Iqbal Singh.

4. IARC appoints Abhishek Maheshwari as MD & CEO

International Asset Reconstruction Company has appointed Abhishek Maheshwari as Managing Director & Chief Executive Officer.

5. India Likely to Avoid Legislation on Cryptocurrencies, Prefers Partial Oversight

A recent government document (Sept 2025) indicates that India is unlikely to bring a dedicated law to regulate cryptocurrencies. Instead, the country will maintain partial oversight, given the risks of granting legitimacy to crypto assets and the challenge of regulating decentralised transactions.

6. ICRA Flags Risks from SME Exposure

Credit rating agency ICRA has raised concerns over lenders’ exposure to the small and medium enterprise (SME) sector, highlighting it as a potential risk area for the banking system. At the same time, ICRA noted that bank deposit rates have bottomed out, and further reductions are unlikely if the RBI maintains current policy rates.

7. Bank of Baroda Launches ‘bob Aspire NRE Savings Account’ for Prospective NRIs

Bank of Baroda has introduced the bob Aspire NRE Savings Account, a savings product aimed at Indian citizens planning to move abroad for employment, business, education, or other long-term purposes. The initiative allows prospective Non-Resident Indians (NRIs) to open an NRE account from India before departure.

Daily Current Affairs Quiz
12 September, 2025

National Affairs

1. Vultures and Pandemic Preparedness in India

Source: TH

Context:

Vultures, once abundant in India (40+ million in the 1980s), have declined by 95% since the 1990s mainly due to diclofenac (a veterinary drug) use. Their disappearance poses ecological and public health risks, linking biodiversity decline to zoonotic disease spillovers. They are part of the Central Asian Flyway (CAF), connecting migratory ecosystems across 30+ countries.

About Vultures in India

• Species Diversity: India is home to 9 species of vultures, out of which 3 are Critically Endangered:
  • White-rumped Vulture (Gyps bengalensis)
  • Indian Vulture (Gyps indicus)
  • Slender-billed Vulture (Gyps tenuirostris)
• Role in Ecosystem:
  • Vultures are scavengers — they feed on carcasses of dead animals, preventing the spread of diseases.
  • They are often called “nature’s cleanup crew” for their crucial role in maintaining ecological balance and public health.

Importance of Vultures for Public Health

• Act as nature’s waste managers by consuming carcasses.
• Prevent spread of deadly pathogens like anthrax, rabies, and botulinum toxin.
• Reduce risk of zoonotic spillovers that could trigger pandemics.
• Provide early surveillance opportunities at carcass sites.

Read more>>

2. Border Wing Home Guards (BWHG)

Source: TH

Context:

Ministry of Home Affairs (MHA) is considering raising BWHGs along the China border, similar to their deployment on the India-Pakistan border.

Aim: Assist ITBP & Army in intelligence gathering, presence, and local engagement.

About BWHG

• Civilian volunteer force drawn from border populations.
• Functions as an ancillary to Border Guarding Forces and Army during emergencies.
• Authorised in 7 States: Meghalaya, Tripura, Assam, West Bengal, Punjab, Rajasthan, Gujarat.
• Currently operational only in Rajasthan (2,279 active members).
• Role: Perform constable-level duties; enlistment for 3–4 years.
• Funding: 25% training & support borne by Government of India.

3. Great Nicobar Island Project

Source: TH

Context:

The Government of India has approved the Great Nicobar Island Project, a multi-component development plan aimed at boosting India’s strategic and economic presence in the Indian Ocean Region.

Project Overview:

• A mega integrated development project to transform Great Nicobar into a logistics, trade, and defence hub.
• Compliant with environmental safeguards under EIA Notification 2006 and Shompen Policy 2015 to protect ecology and tribal welfare.

Major Components:

• International Container Transhipment Terminal (ICTT): Capacity of 14.2 million TEU, reducing reliance on Colombo/Singapore and positioning India as a global shipping hub.
• Greenfield International Airport: Enhances connectivity, promotes tourism, and allows rapid troop/supply deployment.
• 450 MVA Gas + Solar Power Plant: Ensures uninterrupted energy supply combining conventional and renewable sources.
• Integrated Township: Spanning 16,610 hectares, providing modern housing and infrastructure.
• Phased Development (2025–2047): Spread over three phases to minimise ecological stress and allow adaptive planning.

Read more>>>

4. India Flags Off ‘Samudra Pradakshina’

Source: Indian Expree

Context:

The Defence Minister of India virtually flagged off Samudra Pradakshina from the Gateway of India, Mumbai. This expedition marks India’s first tri-service all-women circumnavigation sailing mission, demonstrating women empowerment, maritime skill, and strategic outreach.

About the Expedition:

• India’s first-ever tri-service (Army, Navy, Air Force) all-women circumnavigation.
• Voyage meets World Sailing Speed Record Council norms for a full circumnavigation.
• Follows India’s circumnavigation legacy:
  • Capt. Dilip Donde (2009–10) – first solo Indian circumnavigation.
  • Cmde. Abhilash Tomy (2012–13) – first Indian non-stop circumnavigation.
  • INSV Tarini – Navika Sagar Parikrama (2017–18) & (2024–25).
• Scientific Research:
  • Collaborate with National Institute of Oceanography (NIO) on micro-plastics, ocean biodiversity, and marine health.

Key Features:

• Vessel: IASV Triveni, a 50-foot indigenous yacht (Class A) built in Puducherry.
• Route: ~26,000 nautical miles, crosses the Equator twice, rounds Capes Leeuwin, Horn, and Good Hope.
• Crew: 10 women officers, led by Lt Col Anuja Varudkar (Army) & Sqn Ldr Shraddha P Raju (IAF).
• Timeline: September 2025 – May 2026.

5. All India Debt and Investment Survey (AIDIS) & Situation Assessment Survey (SAS) of Agricultural Households

Source: PIB

Context:

The National Statistical Office (NSO) under Ministry of Statistics & Programme Implementation (MoSPI) announced that the All India Debt and Investment Survey (AIDIS) and the Situation Assessment Survey (SAS) of Agricultural Households will be conducted between July 2026 and June 2027. These surveys are part of the 81st round of the National Sample Survey (NSS) and aim to provide comprehensive insights into household finances and agricultural livelihoods.

All India Debt and Investment Survey (AIDIS):

• What it is: India’s flagship survey on household finance, capturing debt, assets, and investments across rural and urban households.
• Origin: Began as All India Rural Credit Survey (1951-52); expanded in 1961-62 to include urban households and investments.
• Conducted by: NSO (MoSPI).
• Objectives:
  • Measure household indebtedness and asset ownership.
  • Inform national accounts and credit policies.
  • Aid RBI, MoSPI, NITI Aayog in financial inclusion and inequality studies.
• Key Features:
  • Decadal survey; last conducted in 77th NSS round (2019).
  • Covers institutional & non-institutional credit sources.
  • Provides disaggregated data by state, sector, income group, and asset class.
  • Supports policymaking for financial literacy, credit penetration, and asset creation.

Situation Assessment Survey (SAS) of Agricultural Households:

• What it is: Nationally representative survey assessing economic well-being of farm households.
• Origin: Launched in 2003, expanded in 2013, strengthened in 2019.
• Conducted by: NSO (MoSPI) in coordination with Ministry of Agriculture & Farmers Welfare (MoA&FW).
• Objectives:
  • Assess income, expenditure, and debt of farm households.
  • Track livelihood patterns, crop & livestock production, access to government schemes, and crop insurance.
  • Support agriculture and rural development policies for inclusive growth.
• Key Features:
  • Covers all agricultural households, including landless farmers.
  • Collects data on land, livestock, technology adoption, and market access.
  • Monitors institutional finance, crop loans, and insurance coverage.
  • Used by NITI Aayog, MoA&FW, research bodies, and banks for policy design.

6. PM to Launch ‘Gyan Bharatam’ Portal

Source: TOI

Context:

Prime Minister Narendra Modi will address the International Conference on India’s Manuscript Heritage on Friday and launch the ‘Gyan Bharatam’ portal—a dedicated digital platform for manuscript digitisation, preservation, and public access.

Key Highlights:

• Event Theme: “Reclaiming India’s Knowledge Legacy through Manuscript Heritage.”
• Conference: A three-day event bringing together scholars, conservationists, technologists, and policy experts.
• Objective of Portal:
  • Accelerate digitisation of India’s vast manuscript collections.
  • Ensure preservation of ancient knowledge resources.
  • Provide public access to manuscripts for global knowledge exchange.
• Government Role: The Ministry of Culture is leading the initiative.

7. Capacity of Dams Halved Due to Sedimentation: IISER Report

Source: ET

Context:

A study by the Indian Institute of Science Education and Research (IISER) Bhopal has revealed that dams and reservoirs across India have lost nearly 50% of their storage capacity due to heavy sedimentation build-up, significantly reducing their effectiveness in flood control, irrigation, and power generation.

Key Highlights of the Study:

• Scope: Examined government records of 300+ large reservoirs with storage capacity exceeding 100 million cubic metres.
• Findings:
  • Several dams have already lost more than half of their designated storage.
  • By 2050, many more—especially in the Himalayan region, Narmada-Tapi basin, Western Ghats, and Indo-Gangetic Plains—will face severe capacity loss.
• Causes of Sedimentation:
  • Agriculture-driven soil erosion
  • Deforestation
  • Flooding and catchment degradation

Implications:

• Water Security: Reduced storage affects irrigation and drinking water supply.
• Energy Security: Declining hydroelectric power generation.
• Flood & Drought Risks: Lower resilience to extreme weather events.
• Investment Risk: Decades of infrastructure investment could be undone without corrective measures.

Recommended Measures:

• Catchment afforestation and upstream soil conservation
• Construction of check dams and sediment flushing systems
• Regular hydrographic surveys to assess storage capacity loss
• Integrated reservoir sediment management policies

Banking/Finance

1. Nabfid to Submit Infra Financing Report

Source: BS

Context:

National Bank for Financing Infrastructure and Development (Nabfid) will prepare a report on infrastructure financing challenges. To be submitted to the Department of Financial Services (DFS), Ministry of Finance within 15 days.

Key Issues Discussed

• Financing Gaps – Shortfall in availability of long-term infra finance.
• Municipal Bonds – Barriers in issuance, low investor appetite.
• Capacity Building – Need to strengthen institutions and skill base for infra financing.
• Data Gaps – Better availability of information on defaults and recoveries required for risk assessment.

About Nabfid

• Established under NABFID Act, 2021 as a Development Finance Institution (DFI).
• Objective: Provide long-term infrastructure financing and develop the bond/loan market.
• Functions as a catalyst for private investment in infra through credit enhancement, guarantees, and innovative financing.

2. RBI to Allow Lenders to Remotely Lock Phones for Defaulted Loans

Source: Mint

Context:

The Reserve Bank of India (RBI) plans to permit lenders to remotely lock mobile phones purchased on credit if borrowers default, aiming to reduce non-performing assets (NPAs) in small-ticket consumer loans.

Key Proposal:

• Banks and Non-Banking Financial Companies (NBFCs) may be allowed to remotely lock or disable mobile phones purchased on credit if the borrower defaults on repayments.
• This mechanism would act as a collateral-like security without physical repossession, helping lenders recover dues efficiently.

What you need to know from exam point of view?

This initiative would fall under RBI’s guidelines for secured lending and asset-backed financing, specifically:

• Master Directions on Fair Practices Code for Lenders – ensuring transparency, borrower consent, and grievance redressal.
• Master Directions on Non-Performing Assets (NPAs) Classification and Provisioning – providing norms for recognition, recovery, and enforcement of small-ticket loans.
• Digital Lending Guidelines 2023 – governing use of technology in lending, including device-based tracking or locking mechanisms, while protecting borrower data and privacy.
• Secured Credit Regulations under the RBI Act, 1934 – allowing secured lending where the collateral can be digitally controlled or monitored.

What are Non-Performing Assets (NPAs)?

A Non-Performing Asset (NPA) is a loan or advance where the borrower has stopped making interest or principal repayments for a specified period, indicating the asset is not generating income for the lender.

Criteria (as per RBI):

• A loan is classified as an NPA if interest or principal remains overdue for more than 90 days.
• Applies to banks, NBFCs, and other lending institutions.

Read more>>

3. NABARD to Launch Centralised Digital Lending Platform for RRBs

Source: BL

Context:

The National Bank for Agriculture and Rural Development (NABARD) is developing a centralised digital lending platform for Regional Rural Banks (RRBs) to strengthen their competitiveness against non-banking financial companies (NBFCs) and microfinance institutions (MFIs). This initiative is part of a broader strategy following the One State-One RRB policy, which came into effect on May 1, 2025, consolidating 43 RRBs into 28 banks.

Key Highlights:

• Centralised Digital Credit Infrastructure (CDCI):
  • Designed for end-to-end automation of credit processing and management.
  • Aims to enhance operational efficiency, transparency, and agility in loan delivery.
  • Expected rollout: end of September 2025.
  • Will support a range of loan products, including housing loans with first-loss default guarantees and MSME-focused products.
• Strategic Objectives:
  • Reposition RRBs as competitive alternatives to NBFCs and MFIs.
  • Leverage scale efficiencies and cost rationalisation post-consolidation.
  • Support innovation in loan product design for diversified portfolios.
• RRB Overview:
  • Established in 1975 under an Ordinance and Regional Rural Banks Act, 1976.
  • Aimed at developing rural economies and supplementing the Cooperative Credit Structure.
  • Shareholding pattern: Government of India 50%, State Government 15%, Sponsoring Bank 35%.
  • Network: 28 RRBs, 22,158 branches across 26 states and 3 Union Territories.
  • 92% branches in rural or semi-urban areas, highlighting their role in financial inclusion.

Facts To Remember

1. Veteran Congress leader P.P. Thankachan passes away

Kerala’s veteran Congress leader and former Speaker P.P. Thankachan, 87, passed away at a hospital in Ernakulam.

2. C.P. Radhakrishnan to take oath as Vice-President today

C.P. Radhakrishnan will take the oath of office as Vice-President at the Rashtrapati Bhavan.

3. Pooja ensures third medal for India

Olympian Pooja Rani rallied to edge past Poland’s Emilia Koterska 3-2 in a hard-fought quarterfinal bout to move into the women’s 80kg semifinals and secure a third medal for India at the World boxing championships in Liverpool.

4. Govt Likely to Refocus on Marketing, Credit Support in PM Vishwakarma Scheme

The PM Vishwakarma Scheme, launched by the Ministry of MSME to formalise and support traditional artisans and craftspeople, has already enrolled 3 million beneficiaries, surpassing its target three years ahead of FY28. The government is now shifting focus to the marketing and credit support components for the scheme’s next phase.

5. Public Sector Banks Manthan Summit 2025

Public Sector Banks (PSBs) will hold a two-day Manthan Summit from September 12, 2025, focusing on strategies to transform into globally competitive institutions aligned with the vision of Viksit Bharat 2047.

6. RBI Governor to hold open house for staff to boost functioning

Reserve Bank of India (RBI) Governor Sanjay Malhotra has introduced an open house for current and retired employees on improving the central bank’s functioning.

Daily Current Affairs Quiz
13 September, 2025

National Affairs

1. PM Launches Gyan Bharatam Portal

Source: PIB

Context:

Prime Minister Narendra Modi addressed the International Conference on Gyan Bharatam on the theme “Reclaiming India’s Knowledge Legacy Through Manuscript Heritage”. He stressed the importance of preserving India’s manuscript heritage and preventing intellectual piracy, as much of India’s traditional knowledge has historically been copied and patented abroad.

Gyan Bharatam Portal

• Launched as a digital repository of ancient manuscripts.
• Aims to accelerate digitisation, preservation, and wider access to India’s traditional knowledge systems.
• Supports the vision of Swadeshi and Aatmanirbhar Bharat.

India’s Manuscript Heritage

• India holds the world’s largest manuscript collection: nearly one crore manuscripts.
• Manuscripts reflect advancements in science, philosophy, medicine, mathematics, astronomy, and culture.
• PM called it a “renaissance of India’s golden past”, highlighting continuity of preservation, innovation, addition, and adaptation.

2. PSB Manthan 2025

Source: IE

Context:

At the PSB Manthan 2025 conclave (two-day event), the government set a long-term vision to make at least two public sector banks (PSBs) enter the world’s top 20 by 2047, aligning with the Viksit Bharat 2047 roadmap.

Global Positioning of Indian Banks

• Currently, only State Bank of India (SBI) and HDFC Bank feature in the top 100 global lenders by assets.
• Target: At least two PSBs in top 20 by 2047.

Focus Areas of PSB Manthan 2025

• Corporate Governance: Strengthening oversight and autonomy.
• Customer Experience: Personalised banking and service quality.
• Future-readiness: Adoption of AI, digital transformation, and modernisation.
• Cybersecurity & Workforce Transformation.
• Risk Management & Financial Stability: Part of EASErise agenda for FY26.
• CASA Ratio: Discussions on improving declining current account–savings account ratios.

Banking/Finance

1. SEBI Approves Key Reforms in Public Issues, FPIs, and Mutual Funds

Source: ET

Context:

The Securities and Exchange Board of India (SEBI), under Chairman Tuhin Kanta Pandey, has introduced a set of reforms across IPO norms, foreign portfolio investors (FPIs), real estate investment trusts (REITs), and mutual funds. The aim is to deepen capital markets, boost primary issuance, and ease compliance.

IPO and Market Capitalisation Norms

• For companies with market capitalisation between ₹1 trillion and ₹5 trillion:
  • Minimum Public Offer (MPO) set at ₹6,250 crore + 2.75% of post-issue market cap.
  • If public shareholding <15% at listing:
    • 5 years to reach 15% public shareholding.
    • 10 years to achieve mandated 25% Minimum Public Shareholding (MPS).
• Public issue norms for issues below ₹50,000 crore remain unchanged.
• Anchor Investors:
  • An anchor investor is an institutional investor. They enter the game right before an IPO (Initial Public Offering) and they are seen as a booster for companies looking for a successful listing. 
  • Overall reservation raised from 33.33% → 40%.
  • One-third reserved for domestic mutual funds, remainder for life insurers & pension funds.
  • Number of permissible anchor investor allottees increased for allocations above ₹250 crore.

Foreign Portfolio Investors (FPIs)

• Launch of SWAGAT-FI (single-window framework) for easier registration of low-risk FPIs (e.g., sovereign wealth funds, government-related investors).
• Eligible entities include regulated public funds (mutual funds, insurance cos., pension funds).
• Relaxations:
  • Reduced documentation.
  • One-time KYC fee of $2,500 for a 10-year block (instead of 3-year cycle).
  • Exemption from 50% aggregate contribution cap for NRIs and OCIs.
• Expected to cover 70%+ of FPIs.

REITs and InvITs

• Re-classified as equity for mutual funds → eligible for equity index inclusion.
• Expanded scope of strategic investors to include:
  • Provident funds
  • Public financial institutions
  • Alternative Investment Funds (AIFs)
  • State industrial development corporations

Mutual Funds

• Maximum exit load reduced from 5% to 3%, benefiting retail investors.
• Incentives reintroduced for distributors for inflows from beyond top 30 cities (B-30 regions).

Related Party Transactions (RPTs)

• RPT transactions, or Related Party Transactions, are business dealings between a company and its related entities or individuals, such as a parent company and its subsidiary, or a company and the immediate family of its director. 
• Scale-based thresholds (based on turnover of listed companies) approved to determine material RPTs.

Other Announcements

• SEBI to consult further on derivatives curbs—no immediate changes.
• Report on conflict-of-interest code expected by end of the month.

2. SEBI Stresses Transparency on Family Settlements

Context:

The Securities and Exchange Board of India (SEBI) clarified before the Bombay High Court that:

• Deeds of Family Settlement (DFS) and similar family agreements must be disclosed by listed companies under LODR Regulations.
• However, such disclosures do not impose binding obligations on the company itself.

Deeds of Family Settlement (DFS)

• A legal agreement between family members concerning family-owned businesses, properties, or shares.
• Purpose:
  • Resolve disputes among family members without litigation.
  • Divide assets, shares, or responsibilities among heirs.

Listing Obligations and Disclosure Requirements (LODR)

• SEBI regulations that require listed companies to maintain transparency, accountability, and fair treatment of investors.
• Purpose:
  • Protect investors’ interests.
  • Ensure disclosure of material information affecting company performance or share price.
• Examples of Disclosures under LODR:
  • Financial results, corporate governance reports.
  • Changes in shareholding, promoter pledges, and agreements like DFS.

SEBI’s Stand on DFS Disclosure

• Disclosure is Mandatory:
  • DFS agreements are considered material information under LODR.
  • Shareholders must be informed to ensure transparency.
• No Binding Effect on the Company:
  • Disclosure under Regulation 30A does not create or enforce private contractual obligations.
  • Companies are not restricted or liable due to DFS disclosures.
  • Management or control of the company is unaffected by these disclosures.

In short:

• DFS → Family agreement on assets/shares.
• LODR → SEBI rules requiring disclosure of material information.
• SEBI clarification → Disclose DFS for transparency, but it doesn’t bind or limit the company.

3. SEBI Eases FPI Entry with Automatic Registration Window

Source: The Economic Times

Context:

The Securities and Exchange Board of India (SEBI) has approved the introduction of an ‘automatic window’ to simplify the registration process for Foreign Portfolio Investors (FPIs). The move aims to boost capital inflows into India by reducing procedural hurdles and enhancing ease of doing business.

Key Highlights:

• Automatic Window for Registration: SEBI will allow certain FPIs to register through a simplified, largely automated process, minimizing documentation and compliance requirements.
• Unified Access: The new framework provides a single registration route, replacing multiple existing compliance channels for FPIs.
• Eligibility Criteria: FPIs that are at least 75% owned by foreign governments or are regulated in their home jurisdictions can avail of this facility.
• Objective: The reform seeks to attract more foreign capital, particularly after significant equity outflows of over ₹83,000 crore since July 2025.

Agriculture

1. FPOs Critical to Agtech Adoption in Rural India

Source: BL

Context:

Farmer Producer Organizations (FPOs) are increasingly being recognised as vital platforms to accelerate the adoption of agricultural technologies (agtech) among small and marginal farmers in rural India. By consolidating farmers, FPOs help address key structural and financial challenges, enabling technology-driven productivity improvements.

Key Highlights:

• Collective Bargaining and Affordability:
  • FPOs allow farmers to pool resources, making modern inputs, machinery, and digital agtech tools more affordable and accessible.
• Knowledge and Training:
  • FPOs function as knowledge hubs, facilitating demonstrations, workshops, and training programs on precision agriculture, crop monitoring, and climate-resilient practices.
• Access to Finance and Credit:
  • Through FPOs, farmers gain better access to credit, subsidies, and financial products necessary for technology adoption. FPOs also help engage with banks, NBFCs, and government schemes.
• Shared Infrastructure Development:
  • FPOs invest in common assets like storage facilities, processing units, and transport logistics, which are critical for implementing agtech effectively across the supply chain.
• Data-Driven Decision Making:
  • Aggregated data from member farmers allows FPOs to implement precision farming, monitor soil health, and optimise crop planning.
• Policy Advocacy:
  • FPOs represent collective farmer interests, advocating for supportive policies, regulatory frameworks, and government programs promoting agtech.

Challenges:

• Low digital literacy among rural farmers.
• Infrastructure gaps such as poor internet and power supply.
• High initial investment costs for new technologies.
• Fragmented land holdings limiting large-scale agtech adoption.

2. AI-Powered Monsoon Forecasts Transform Kharif Farming in India

Source: PIB

Context:

Millions of Indian farmers depend on rainfall for Kharif crops, which form the backbone of their income and livelihood. Accurate and timely monsoon forecasts are crucial for decisions on crop selection, sowing schedules, irrigation, and risk management. In a first-of-its-kind initiative, the Ministry of Agriculture and Farmers’ Welfare (MoAFW) has harnessed artificial intelligence (AI) to deliver advanced, farmer-centric monsoon forecasts across India.

Key Highlights:

• AI-Based Forecasting Models:
  • The MoAFW integrated Google’s Neural GCM and ECMWF’s AI Forecasting System (AIFS) to create highly accurate predictions of monsoon onset, intensity, and progression, outperforming conventional weather models.
• Targeted Dissemination:
  • Forecasts were sent via m-Kisan SMS platform to 3.8 crore farmers across 13 states, providing region-specific guidance up to four weeks in advance.
• Real-Time Monitoring:
  • Weekly updates informed farmers of mid-season variations, such as pauses in rainfall, enabling timely agricultural interventions.
• Farmer-Centric Design:
  • Teams from Development Innovation Lab – India and Precision Development ensured that information was understandable, actionable, and tailored to local farming needs.

Significance and Impact:

• Enhances farmers’ ability to plan Kharif crops efficiently and reduce climate-related risks.
• Strengthens resilience against climate variability, supporting sustainable agricultural practices.
• Positions India as a global leader in applying AI for real-world agricultural challenges.
• Empowers informed decisions on sowing, irrigation, and crop management, potentially improving yields and farmer incomes.

Facts To Remember

1. Karki is Nepal’s first woman PM

Nepal President Ram Chandra Poudel appointed former Chief Justice Sushila Karki as the country’s new Prime Minister and dissolved Parliament, as days of political turmoil showed signs of abating in the Himalayan nation. 

2. C.P. Radhakrishnan takes oath as 15th Vice-President of India

Chandrapuram Ponnusamy Radhakrishnan was sworn in as the 15th Vice-President of India. President Droupadi Murmu administered the oath of office at the Rashtrapati Bhavan in the presence of several dignitaries.

3. Jagdeep Chhokar, co-founder of ADR, passes away at 81

Jagdeep S. Chhokar, co-founder of the non-governmental organisation Association for Democratic Reforms (ADR), passed away in Delhi. He was 81.

4. Navy’s latest base INS Aravali commissioned in Gurugram

The Indian Navy commissioned its latest Naval Base, INS Aravali, at Gurugram on Friday, marking a major boost to its information and communication infrastructure. 

5. Kerala capital to host two-day blue economy conclave

Representatives from 29 European countries are expected to attend a two-day blue economy conclave in the State capital on September 18 and 19, Minister for Fisheries Saji Cherian has said.

6. Albania PM appoints AI-generated ‘minister’ to tackle corruption

Albania’s Prime Minister Edi Rama on Friday tapped an Artificial Intelligence-generated ‘minister’ for his cabinet to take on corruption.

7. Mehuli Ghosh places 23rd in rifle 3-position event

Mehuli Ghosh shot 583 and placed 23rd in the 50-metre rifle 3-position event in the World Cup in Ningbo, China.

Daily Current Affairs Quiz
14 & 15 September, 2025

National Affairs

1. 2nd National Conference of Anti-Narcotics Task Force (ANTF) Heads

Source: PIB

Context:

Union Home Minister Amit Shah will inaugurate the 2nd National Conference of Anti-Narcotics Task Force (ANTF) Heads of States and Union Territories in New Delhi on September 16–17, 2025.

Key Highlights:

• Inauguration: By Union Home Minister Amit Shah.
• Participants: ANTF Heads from all 36 States/UTs + representatives from other government departments.
• Key Releases & Launches:
  • NCB Annual Report 2024 (Narcotics Control Bureau).
  • Online Drug Disposal Campaign (digital platform for safe & transparent disposal of seized drugs).
• Objective:
  • Strategic platform to strengthen coordination against drug trafficking and abuse.
  • Reinforce PM Narendra Modi’s vision of a drug-free India.

2. PM Modi Inaugurates India’s First Bamboo-Based Ethanol Plant in Assam

Source: TH

Context:

Prime Minister Narendra Modi inaugurated the country’s first bamboo-based bioethanol plant in Golaghat, Assam, and laid the foundation stone for a ₹7,230-crore polypropylene plant at the Numaligarh Refinery. The initiative is part of India’s broader push for energy self-sufficiency, clean energy, and rural development.

What is a Bamboo-Based Bioethanol Plant?

A bamboo-based bioethanol plant is an industrial facility that converts bamboo into ethanol, a type of biofuel that can be blended with petrol or used as a renewable energy source.

Process:

• Feedstock Collection: Bamboo is harvested and transported to the plant.
• Pretreatment: Bamboo biomass is broken down into simpler components, mainly cellulose, hemicellulose, and lignin.
• Hydrolysis: Cellulose and hemicellulose are converted into fermentable sugars using enzymes or acids.
• Fermentation: Microorganisms (like yeast) ferment the sugars into ethanol.
• Distillation & Purification: Ethanol is separated and purified to make fuel-grade bioethanol.
• By-products: Lignin and other residues can be used for energy production, compost, or industrial applications.

Applications of Ethanol Produced:

• Can be blended with petrol (E5, E10, or higher) for vehicles.
• Used in industrial and chemical processes as a green solvent.
• Potential use in pharmaceutical and cosmetic industries.

3. Purple Fest 2025

Source: PIB

Context:

The Indian Sign Language Research and Training Centre (ISLRTC), in collaboration with Amity University, Noida, organized Purple Fest 2025, a national-level festival focused on the empowerment and inclusion of persons with disabilities (Divyangjan).

Key Highlights:

• Objective:
  • Promote inclusion, awareness, and accessibility for persons with disabilities.
  • Empower Divyangjan through entrepreneurship, skill-building, cultural participation, and education.
  • Celebrate creativity and talent while strengthening capacity through Indian Sign Language (ISL)-focused training.
• Core Activities:
  • Art & Craft Exhibition: Showcasing products created by Divyangjan artisans.
  • Entrepreneurship Stalls: 22 stalls highlighting businesses led by persons with disabilities.
  • Cultural & Sports Events: Encouraging participation, representation, and talent celebration.
  • Continuing Rehabilitation Education (CRE): Focused on ISL and professional knowledge sharing.

Banking/Finance

1. India’s Outward Foreign Direct Investment (FDI)

Context:

An analysis of RBI data by The Hindu shows that in 2024-25, nearly 56% of India’s outward foreign direct investment (FDI) was routed through low-tax jurisdictions like Singapore, Mauritius, UAE, the Netherlands, UK, and Switzerland. This raises questions on taxation, regulatory arbitrage, and strategic corporate positioning.

Key Findings from RBI Data:

• Total outward FDI (2024-25): ₹3,488.5 crore.
• Top destinations:
  • Singapore – 22.6%
  • Mauritius – 10.9%
  • UAE – 9.1%

India’s Outward Foreign Direct Investment (OFDI)

India’s Outward Foreign Direct Investment (OFDI) refers to investments made by Indian companies, firms, or residents in foreign countries. Unlike inward FDI, where foreign investors invest in India, OFDI involves Indian entities investing abroad to acquire assets, set up subsidiaries, or participate in joint ventures.

Forms of OFDI:

Indian companies can invest abroad in several ways:

• Greenfield Investment: Establishing a new business unit, subsidiary, or plant in a foreign country.
• Mergers & Acquisitions (M&A): Acquiring or merging with existing foreign companies.
• Joint Ventures: Forming partnerships with foreign firms to share capital, technology, and management.
• Portfolio OFDI: Sometimes, Indian firms invest in foreign financial assets, though this is more regulated under capital flows.

Key Features:

• Long-term commitment: Indian investors acquire significant ownership or control.
• Cross-border: Capital flows from India to other countries.
• Regulated: The Reserve Bank of India (RBI) and the Ministry of Commerce & Industry regulate OFDI through frameworks like the Foreign Exchange Management Act (FEMA), 1999.

Objectives of OFDI:

• Market Access: Entering new consumer markets abroad.
• Resource Access: Acquiring raw materials, technology, or skilled manpower.
• Diversification: Reducing dependency on domestic market or risks.
• Strategic Advantage: Acquiring global brands, intellectual property, or global supply chain integration.

Regulatory Framework in India:

• Automatic Route: No prior approval required if investment is within prescribed limits.
• Government Route: Requires approval for sensitive sectors or higher amounts.
• RBI Guidelines: Investments must comply with FEMA regulations and reporting requirements.

2. Insurance Amendment Bill

Source: BS

Context:

Finance Minister Nirmala Sitharaman has indicated that the Insurance Amendment Bill, which proposes 100% foreign direct investment (FDI) in the sector, is likely to be introduced in the upcoming Winter Session of Parliament.

Key Proposals of the Bill:

• FDI Enhancement:
  • Raise the foreign investment limit from the current 74% to 100%.
  • Applicable to companies investing the entire premium in India.
  • Review and simplify existing guardrails and conditionalities for foreign investment.
• Amendments Across Insurance Laws:
  • Insurance Act, 1938: Principal framework for insurance operations in India.
  • Life Insurance Corporation Act, 1956: Empower LIC board for operational decisions (branch expansion, recruitment).
  • Insurance Regulatory and Development Authority Act, 1999: Align regulatory provisions with the amended FDI policy.
• Other Provisions:
  • Reduction in paid-up capital requirements.
  • Provision for a composite licence to streamline operations.

Objectives:

• Promote policyholders’ interests and financial security.
• Encourage entry of new players, increasing competition.
• Boost insurance penetration to achieve the goal of ‘Insurance for All by 2047’.
• Enhance ease of doing business and create employment opportunities.

3. UPI-Based Cash Withdrawals to Expand Through Business Correspondents

Source: BS

Context:

The National Payments Corporation of India (NPCI) is planning to extend Unified Payments Interface (UPI)-based cardless cash withdrawals beyond ATMs and limited merchant outlets. This initiative aims to make cash access more convenient and accessible, particularly in underbanked and rural areas.

Business Correspondent (BC)

• A Business Correspondent (BC) is an individual or entity engaged by banks to provide basic banking services in areas where bank branches are not easily accessible.
• BCs act as the bank’s agents, bridging the gap between banks and customers, particularly in rural and semi-urban areas.

Key Highlights:

• Expansion Scope:
  • Currently, UPI-driven cash withdrawals are available only at UPI-enabled ATMs and certain merchants (₹1,000 per transaction in urban areas; ₹2,000 in rural areas).
  • Plans are underway to extend the facility to over 2 million Business Correspondents (BCs) across India.
• Mechanism:
  • Users can scan a QR code at BC outlets with any UPI app to withdraw cash.
  • The user’s account is debited and the BC’s account credited in real-time.
  • This complements existing modes like biometric Aadhaar-enabled cash withdrawals and micro-ATMs.
  • Proposed withdrawals via UPI at BCs could allow up to ₹10,000 per transaction, similar to micro-ATM limits.

4. Sebi Pushes Capital Market Reforms to Enhance Depth and Investor Participation

Source: TOI

Context:

The Securities and Exchange Board of India (Sebi) has implemented a series of structural reforms aimed at broadening market participation, improving transparency, and attracting quality securities into the Indian capital market. The reforms target both primary and secondary markets to make the investment ecosystem more appealing for domestic and institutional investors.

Key Reforms:

• Public Shareholding and Anchor Investors:
  • Listed companies now have more time to meet the minimum public shareholding requirement post-IPO.
  • The share reserved for anchor investors during IPO listing has been increased, incentivising early participation by large investors.
• Mutual Fund and FII Adjustments:
  • Exit load thresholds for mutual funds have been lowered, providing greater flexibility for investors.
  • Low-risk Foreign Institutional Investors (FIIs) now face relaxed disclosure requirements, reducing compliance burdens.
• REITs and Institutional Participation:
  • Real Estate Investment Trusts (REITs) have been reclassified as equity for mutual fund investments.
  • A wider group of institutional investors can now act in a strategic capacity in REITs, enhancing liquidity and market depth.
• Corporate Governance Tweaks:
  • Shareholder approvals for related-party transactions will now be based on company turnover, lowering compliance burden for mid-sized and large companies.

Agriculture

1. Corteva Agriscience Launches New Pesticides for Potato and Grapes

Source: TH

Context:

Global agri-science company Corteva Agriscience has launched two new pesticides in India targeting Downy Mildew in grapes and Late Blight in potatoes, two of the most destructive crop diseases affecting farmers’ productivity and income.

Key Highlights:

• Diseases Targeted:
  • Downy Mildew (Grapes) – a fungal disease causing leaf damage, reduced photosynthesis, and crop loss.
  • Late Blight (Potatoes) – the same pathogen that caused the Irish famine; still a major global threat.
• Technology Used:
  • Based on Corteva’s Zorvec technology, known worldwide for effective control of oomycete plant diseases.
  • Product: Zorvec Entecta.
• Features of the New Pesticide:
  • Fast action: Protected from wash-off within 20 minutes of spraying.
  • Consistent protection: Active ingredients provide strong, long-lasting control.
  • Crop benefits: Healthier crops, higher yields, and improved quality of produce.
• Company Claim:
  • Expected to transform potato and grape cultivation in India by reducing crop losses and boosting farmer profitability.

Implications for Indian Agriculture

• Farmer Benefits: Reduced dependency on repeated spraying, lower crop losses, improved income stability.
• Market Impact: Grapes (important export crop) and potatoes (staple food crop) will see better disease management.
• Agri-Tech Adoption: Example of how advanced agri-chemicals are complementing India’s efforts in crop protection and food security.

Facts To Remember

1. Former Meghalaya CM D.D. Lapang passes away

Former Meghalaya Chief Minister Donwa Dethwelson Lapang passed away at a hospital in Shillong. He was 93.

2. Fiji ant numbers plunged after humans came

Researchers sequenced the DNA of more than 4,000 specimens preserved in museums, representing over 120 species, and found that 79% of Fiji’s endemic ant species are now in decline, with losses starting soon after humans arrived about 3,000 years ago.

3. Minakshi, Jaismine punch gold at Worlds

Minakshi Hooda and Jaismine Lamboria, both aged 24, upset two Paris Olympics medallists and top seeds in their respective weight classes to emerge as champions in the World boxing championships in Liverpool.

4. Meghana clinches bronze medal in air rifle

Meghana Sajjanar clinched bronze in women’s air rifle in the World Cup in Ningbo.

5. Delhi Govt to Launch ‘Seva Pakhwada’ from Sept 17

To mark Prime Minister Narendra Modi’s birthday, the Delhi government will roll out a series of welfare and development initiatives over a 15-day period, called ‘Seva Pakhwada’ (Fortnight of Service).

6. Retail Inflation Inches Up in August, Remains Below RBI Target

Retail inflation, as measured by the Consumer Price Index (CPI), rose marginally to 2.07% in August 2025, up from 1.61% in July, according to the National Statistics Office (NSO). The second-quarter average (July-August) stands at 1.84%, lower than the RBI’s earlier projection of 2.1%. Since February 2025, inflation has remained below the RBI’s 4% target.

Daily Current Affairs Quiz
16 September, 2025

National Affairs

1. Centre to Launch ‘Swasth Nari, Sashakt Parivar Abhiyaan’ & 8th Poshan Maah

Source: TH

Context:

The Central Government will launch the ‘Swasth Nari, Sashakt Parivar Abhiyaan’ (Healthy Woman, Strong Family Campaign) on 17th September 2025, alongside the 8th Poshan Maah (Nutrition Month). The initiative will be inaugurated by Prime Minister Narendra Modi.

Key Highlights:

• Objective: To strengthen women’s health as a foundation for family well-being and national development.
• Joint Initiative: Led by the Ministry of Health & Family Welfare and the Ministry of Women & Child Development.
• Poshan Maah 2025: Part of the ongoing POSHAN Abhiyaan, focusing on nutrition awareness, women’s health, and child development.
• Approach: Promotes the idea that empowering women through better health ensures healthier families and stronger communities.

2. Manki-Munda System

Source: IE

Context:

In Kolhan region of Jharkhand, members of the Ho tribal community protested following the removal of certain Mundas, alleging government interference in their traditional Manki-Munda system of self-governance. The protests underline the sensitivity of tribal autonomy and customary governance structures in India.

About Manki-Munda System:

• A traditional, decentralized tribal governance system of the Ho community, where Mundas (village heads) and Mankis (pidh heads overseeing clusters of villages) collectively maintain social order and resolve disputes.
• Historical Background:
  • Pre-British Era: Operated as a fully community-driven governance model without external interference or land tax obligations.
  • British Era Codification: Following early Ho and Kol revolts, the British codified the system under Wilkinson’s Rules (1833), implemented in Kolhan Government Estate (1837). Mankis and Mundas acted as intermediaries, preserving local autonomy while integrating Kolhan into British India.
• Functioning:
  • Munda: Heads a single village; resolves local socio-political disputes.
  • Manki: Supervises multiple villages (pidh); handles appeals when Munda-level resolution fails.
• Key Features:
  • Hereditary Leadership: Positions traditionally pass from father to son.
  • Community Participation: Decisions rely on collective consultation, akin to Gram Sabha.
  • Cultural Autonomy: Safeguards tribal identity, customs, and land rights.
  • Legal Recognition: Wilkinson’s Rules continue to be upheld by courts, acknowledging the absence of alternative governance structures.

3. Exotic Eustoma Blooms in Odisha

Source: TH

Context:

Scientists at CSIR–National Botanical Research Institute (NBRI) have successfully cultivated Eustoma (Lisianthus) for the first time in Odisha, in a polyhouse at Sanatanpali, Sambalpur district. Previously, Eustoma flowers were mostly imported from countries like the Netherlands and Kenya for premium events, weddings, and luxury décor.

About Eustoma (Lisianthus):

• Type: Herbaceous annual flower from the Gentianaceae family.
• Native Habitat: Mexico, southern USA, Caribbean, and northern South America; thrives in grasslands and warm climates.
• Growth in India: First successful polyhouse cultivation in Odisha shows adaptability to hot Indian conditions.

Key Features:

• Premium Ornamental Value: Large, funnel-shaped blooms in pink, purple, white, blue, with long vase life (2+ weeks).
• Economic Potential: Two harvests per year; potential income of up to ₹2 lakh per acre per season for farmers.
• Diversity: Single and double-flowered varieties, including bicolored types, suitable for weddings, décor, and exports.
• Sustainability: Reduces dependence on imported flowers, promotes local floriculture, and supports CSIR-NBRI’s 400+ farmer clusters.

Uses:

• Cut Flower Industry: Bouquets, floral décor, premium events.
• Exports: Offers a new high-value floriculture export option.
• Retail & Hospitality: Ideal for hotels, weddings, and events due to long vase life.
• Gardening & Landscaping: Dwarf varieties suitable for pots, balconies, and landscaping projects.

4. Defence Procurement Manual (DPM) 2025

Context:

The Ministry of Defence (MoD) approved the Defence Procurement Manual (DPM) 2025, replacing the 2009 manual. To accelerate revenue procurement for the Armed Forces and promote Aatmanirbharta (self-reliance) in defence manufacturing. Annual revenue procurement under this manual is worth ~₹1 lakh crore.

About DPM 2025:

• Policy framework guiding all revenue procurement of goods and services for the Armed Forces and MoD organizations.
• First update in 16 years, aligning with public procurement norms, technology adoption, and modern warfare requirements.

Aims:

• Streamline & Simplify procurement to reduce red tape and file movement delays.
• Support Industry by addressing working capital issues, easing penalties, and providing order assurance.
• Boost R&D & Innovation through collaborations with IITs, IISc, academia, and industry for indigenisation.

Banking/Finance

1. SEBI Plans Further Relaxations for Foreign Portfolio Investors (FPIs)

Source: BS

Context:

The Securities and Exchange Board of India (SEBI) is planning additional relaxations to simplify the registration process for Foreign Portfolio Investors (FPIs), including a common know-your-client (KYC) framework and wider adoption of India Digital Signature. These moves build on recent measures aimed at making India a more attractive investment destination.

Key Highlights:

• Digital Ease:
  • SEBI to integrate India Digital Signature with the Common Application Form (CAF) for FPIs.
  • Expected to reduce paperwork and streamline documentation.
• Common KYC:
  • Discussions underway with the Reserve Bank of India (RBI) for a common KYC requirement across banks and FPIs.
  • Aimed at reducing duplication and easing compliance for low-risk FPIs.
• Swagat-FI Framework:
  • Applies to trusted FPIs (sovereign wealth funds, pension funds, government-related entities).
  • Registration renewal cycle extended to 10 years (earlier 3 years).
  • One-time KYC fee of $2,500 for a 10-year block instead of the three-year cycle.
  • Exemptions from the 50% aggregate contribution cap for NRIs and OCIs.
• Boost to Investments:
  • Combination of FVCI (Foreign Venture Capital Investor) and FPI registration expected to boost unlisted investments.
  • SEBI now reaches out directly to FPIs/custodians if application processing exceeds a month.
  • Surge seen in FPI registrations; the US, Singapore, Luxembourg, and Ireland dominate assets under custody.
• New Platform:
  • SEBI to launch India Market Access, a platform for FPIs to seek regulatory information.

2. Rising Digital Fraud and Mule Accounts

Source: Mint

Context:

Indian banks are now more cautious about deposit accounts than loans, driven by the rising misuse of dormant accounts as mule accounts in digital fraud. These accounts, typically inactive, are exploited for low-value, high-volume transactions, often linked to money laundering and cybercrime.

What are Mule Accounts?

• Dormant or inactive bank accounts used to transfer illicit funds.
• Account holders may be unaware or complicit.
• Typically involved in low-value, high-volume transactions to avoid detection.

How Fraud is Done:

• Fraudsters transfer illegally obtained money through mule accounts to obscure its origin.
• Used in scams like fake investment schemes, lottery frauds, or unauthorized digital payments.
• Often involves identity theft or misuse of KYC documents.

RBI’s rules and guidelines to curb digital fraud:

• Section 35A of the Banking Regulation Act, 1949 – Empowers RBI to issue directions to banks for controlling banking operations, including KYC, monitoring, and risk management.
• Prevention of Money Laundering Act (PMLA), 2002 – Obligates banks to maintain KYC, report suspicious transactions, and prevent misuse for money laundering.
• RBI (Know Your Customer (KYC)) Directions – Issued under the above acts to ensure proper customer identification, verification, and monitoring of accounts.
• RBI Master Circulars / Notifications – Provide operational instructions for dormant accounts, reporting to FIU-IND, and transaction monitoring.

3. SEBI Reclassifies REITs as Equity for Mutual Fund Investments

Source: ET

Context:

The Securities and Exchange Board of India (SEBI) has reclassified Real Estate Investment Trusts (REITs) as equity securities for mutual fund (MF) investments. Earlier, they were treated as hybrid securities, which restricted fund exposure.

What This Means?

• Mutual funds can now invest in REITs without the previous restrictions that applied to hybrid securities.
• This could boost liquidity and inflows into the REIT market, making real estate investment more accessible to retail investors via MFs.

Difference Between Hybrid and Equity Securities:

Feature	Hybrid Securities	Equity Securities
Definition	Financial instruments combining debt and equity features (e.g., convertible debentures, preference shares)	Represents ownership in a company, value fluctuates with the company’s stock price
Risk Profile	Moderate; partially fixed returns from debt component	High; returns depend on market performance
Mutual Fund Treatment	Exposure limits often restricted to reduce risk	Treated like stocks; higher exposure allowed in equity funds
Income Type	Fixed interest + potential capital gains	Dividends + capital gains from price appreciation
Examples	Convertible bonds, certain preference shares	Equity shares, now REITs under SEBI’s classification

Significance:

• By classifying REITs as equity, equity mutual funds can now invest more freely, improving the capital inflow into commercial real estate.
• Supports the growth of REITs in India and encourages retail participation in real estate markets.

5. Securitisation

Source: BS

Context:

Securitisation activity (sale of loans through structured transactions) is projected to remain subdued in Q2FY26 (July–September 2025), with estimated volumes of ₹63,000 crore, compared to ₹70,000 crore in the same quarter last year.

What is Securitisation?

Securitisation is a financial process in which illiquid assets such as loans, receivables, or mortgages are pooled together and converted into tradable securities. These securities are then sold to investors, allowing the originator (bank or financial institution) to raise funds immediately.

Key Objective:

• To free up capital for banks and NBFCs.
• To transfer credit risk to investors.
• To improve liquidity in the financial system.

Securitisation Process

• Originator/Asset Holder
  • Typically a bank, NBFC, or financial institution holding assets such as mortgages, car loans, or credit card receivables.
  • These are assets expected to generate future cash flows.
• Pooling of Assets
  • Similar loans or receivables are grouped together into a pool to diversify risk.
  • Example: Pooling 1,000 home loans of ₹30 lakh each.
• Special Purpose Vehicle (SPV)
  • The originator sells the asset pool to a Special Purpose Vehicle (SPV).
  • SPV is a separate legal entity created solely for this transaction to isolate the assets from originator’s balance sheet risk.
• Issuance of Securities
  • SPV issues securities backed by the cash flows of the asset pool (called Asset-Backed Securities (ABS) or Mortgage-Backed Securities (MBS)).
  • These securities are rated by credit rating agencies and sold to investors.
• Investors
  • Institutional investors like mutual funds, insurance companies, banks, or high-net-worth individuals purchase these securities.
  • They receive periodic interest payments and principal repayment as per the underlying assets’ cash flows.
• Servicing
  • The originator or a third-party servicer collects payments (EMIs, interest, principal) from the borrowers of the pooled assets.
  • Payments are then transferred to the SPV, which distributes them to investors.

Key Features of Securitisation

• Liquidity Creation: Converts illiquid loans into cash.
• Risk Transfer: Credit risk is shifted from the originator to investors.
• Diversification: Investors gain exposure to diversified loan pools, reducing idiosyncratic risk.
• Capital Relief: Helps banks comply with regulatory capital requirements.
• Structured Instruments: Can be structured into tranches based on risk-return preferences (senior, mezzanine, junior).

6. Offshore Non-Deliverable Forward (NDF) Market

Context:

The Reserve Bank of India (RBI) has intensified its activity in the offshore non-deliverable forward (NDF) market to stabilize the Indian rupee amid volatility caused by shifting demand-supply dynamics.

Key Highlights:

• Reasons for Rupee Pressure:
  • Exporters delaying dollar sales, reducing liquidity in the forex market.
  • Importers increasing hedging activity due to US tariff risks.
• RBI’s Response:
  • Resumed intervention in NDF market after a period of reduced activity.
  • Interventions primarily visible during local trading hours, indicating a targeted approach to manage volatility.

Offshore Non-Deliverable Forward (NDF)

An offshore Non-Deliverable Forward (NDF) is a forward contract to buy or sell a currency at a predetermined rate on a future date without actual delivery of the underlying currency. Instead, the net difference between the contracted rate and the prevailing spot rate is settled in a convertible currency (usually USD).

Key Features:

• Used for currencies with restricted convertibility like the Indian rupee.
• Trades occur outside India, typically in financial centers like Singapore, London, and Dubai.
• Only the profit or loss (settlement amount) is exchanged, not the actual currency.
• Popular among exporters, importers, and speculators to hedge currency risk.

How NDFs Help Stabilize INR

• Hedging Tool for Corporates:
  • Indian exporters and importers use NDFs to lock exchange rates, reducing uncertainty in trade transactions.
  • Lower volatility in demand and supply for USD-INR reduces pressure on the rupee.
• RBI Intervention Mechanism:
  • RBI can buy/sell USD contracts offshore to influence expectations and stabilize INR indirectly.
  • Visible interventions signal central bank support, deterring speculative attacks.
• Smoothens Market Volatility:
  • By participating in the NDF market, RBI balances excess demand or supply of USD offshore without impacting domestic FX reserves.
• Market Confidence:
  • Enhances investor confidence that INR volatility will be managed, which stabilizes capital flows.

7. Prepaid Payment Instrument (PPI)

Context:

The Reserve Bank of India (RBI) has levied a fine of ₹21 lakh on PhonePe for non-compliance with regulations governing Prepaid Payment Instruments (PPIs).

Key Highlights:

• RBI observed that on certain days, PhonePe’s escrow account balance fell below the mandated minimum.
• PhonePe allegedly did not report the shortfall promptly as required under PPI regulations.
• Escrow Account: A secure account where PPI operators must maintain user funds to ensure their safety and proper usage in line with RBI rules.

Prepaid Payment Instrument (PPI)

A Prepaid Payment Instrument (PPI) is a financial instrument that allows a person to load money in advance and use it for making payments to merchants or transferring funds. PPIs are issued by banks or non-banking financial companies (NBFCs) and are regulated by the Reserve Bank of India (RBI).

Types of PPIs:

1. Closed System PPIs – Usable only for merchant-specific transactions (e.g., gift cards).
2. Semi-Closed System PPIs – Can be used at multiple merchants but cannot be redeemed for cash. Examples: PhonePe, Paytm wallet.
3. Open System PPIs – Can be used for all merchant payments, ATM withdrawals, and fund transfers.

Key Features:

• Preloaded Value: Users load money into the instrument before use.
• Cashless Payments: Enables digital payments without directly using bank accounts.
• RBI-Regulated: Issuers must follow KYC norms, limits, and operational guidelines to prevent misuse.

Under Which Act RBI Did So?

The RBI action against PhonePe for its escrow account balance falling below the mandated minimum was done under the Payment and Settlement Systems Act, 2007 (PSS Act, 2007).

• PSS Act, 2007: Provides the legal framework for regulating payment systems in India.
• Escrow Account Requirement: Prepaid Payment Instrument (PPI) issuers are required to maintain a minimum balance in a designated escrow account, ensuring that customer funds are always secured.

8. ICICI Bank Extends Amazon Pay Co-Branded Credit Card Partnership

Context:

ICICI Bank has renewed its partnership with Amazon Pay for the co-branded “Amazon Pay ICICI Credit Card” for another 7 years.

Key Highlights:

• Launch: The card was first launched in 2018.
• Market Position: ICICI Bank is the third-largest credit card issuer in India, after HDFC Bank and SBI.
• Co-Branded Trends: Axis Bank, the fourth-largest issuer, partners with Flipkart for its co-branded credit card.

Agriculture

1. Union Government Announces Annual Opium Licensing Policy 2025-26

Source: PIB

Context:

The Union Government today announced the annual licensing policy for crop year 2025-26 during the Opium Crop Year from 1^st October, 2025 to 30^th September, 2026, of license for cultivation of opium poppy, for the farmers in the states of Madhya Pradesh, Rajasthan and Uttar Pradesh.

What is Opium?

• Opium is a narcotic substance derived from the latex (sap) of the opium poppy plant (Papaver somniferum).
• It contains alkaloids such as morphine, codeine, and thebaine, which have potent analgesic (pain-relieving) and medicinal properties.
• In India, opium cultivation is strictly regulated under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985.

States Where Cultivated in India:

• Madhya Pradesh
• Rajasthan
• Uttar Pradesh

Legal Framework:

• Farmers require a license from the Central Government to cultivate opium.
• Cultivation is primarily for medical, pharmaceutical, and research purposes.

Applications of Opium

• Medical Uses: Pain relief (morphine), cough suppression (codeine), antidiarrheal medications.
• Pharmaceutical Industry: Processed in licensed factories to produce essential narcotic drugs; base for opioids like morphine, codeine, oxycodone.
• R&D: Development of new painkillers; studies on opioid receptors, analgesia, and addiction.
• Economic/Export: Provides livelihood for licensed farmers; supports India’s supply of medical opiates globally.

Key Points from the 2025-26 Licensing Policy:

• Approximately 1.21 lakh farmers eligible for licenses – 23.5% increase from previous year.
• Focus on high-yield cultivators, incentivizing quality production.
• Digitization ensures transparency and inclusivity for marginal farmers.
• Goal: Balance domestic medical requirements and global compliance while promoting self-reliance in alkaloid production.

Objectives of the Policy

• Ensure adequate supply of essential narcotic drugs for healthcare needs.
• Support farmer participation and income generation through regulated cultivation.
• Encourage high productivity and yield optimization while maintaining compliance.
• Promote indigenous and self-reliant production of alkaloids.
• Strengthen India’s pharmaceutical export potential through regulated supply chains.

Facts To Remember

1. Vaishali retains Grand Swiss title, qualifies for Candidates

R. Vaishali is the champion once again at the FIDE Grand Swiss. In one of the most prestigious events in the chess calendar, the 24-year-old from Chennai showed her class.

2. UPI daily payment limit set at ₹10 lakh

India’s UPI system has enabled high-value transactions, allowing users to pay up to ₹10 lakh a day for investments, insurance, travel, credit cards and jewellery, starting today.

3. Only 45% of Students Feel Ready for Life Beyond School: Cambridge Global Survey

Source: TOI

A global survey by Cambridge University Press and Assessment titled “Preparing Learners to Thrive in a Changing World: The View from International Education” highlights gaps in student preparedness for future education and life. The survey covered 3,840 students and 3,021 teachers across 150 countries, including India.

4. Unemployment Rate Slows to 4-Month Low: Govt Data

According to the Periodic Labour Force Survey (PLFS) – August 2025, India’s unemployment rate for those aged 15 years and above fell to a four-month low, with male unemployment dipping to a five-month low, reflecting improved labour market conditions.

5. PM Modi shares Mansukh Mandaviya’s article

Prime Minister Narendra Modi today shared an article by Union Minister Mansukh Mandaviya on social media, showcasing how the vision of Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas is now part of everyday life.

6. Union Home Minister Amit Shah Inaugurates 2nd ANTF National Conference of Heads of States and UTs in New Delhi

Union Home Minister Amit Shah today inaugurated the 2nd National Conference of Anti-Narcotics Task Force (ANTF) Heads of States and Union Territories in New Delhi. 

7. India Emerges as Global Climate Champion Under PM Modi’s Vision of Seva and Sushasan

Guided by the mantra of Seva and Sushasan, that is, Public Service and Good Governance, the Government, under Prime Minister Narendra Modi, has been working tirelessly to bring transformation and progress.

Daily Current Affairs Quiz
17 September, 2025

National Affairs

1. Sentient Launches Open-Source AGI Network

Source: BS

Context:

Artificial intelligence (AI) startup Sentient has launched the world’s first open-source artificial general intelligence (AGI) network, opening access to over 2 million waitlisted users. The platform enables 40+ AI agents, models, and 50+ data sources to collaborate in real time, offering India and allied nations an alternative to closed AI ecosystems.

Key Highlights:

• Open AGI Launch: First open AGI network where multiple AI agents collaborate in real time.
• Consumer Interface: Access through Sentient Chat for tasks like financial reporting, news briefings, research, and travel planning.
• Capabilities: Generates outputs such as comprehensive investment reports, personalised daily briefings, and multi-step workflows.

What it is?

• Artificial General Intelligence (AGI): Refers to AI systems capable of performing any intellectual task that a human can do, with adaptability, reasoning, and learning across domains. Unlike narrow AI, AGI is not limited to specific tasks.
• Open-Source AGI Network: A decentralized platform where AGI models, tools, and datasets are publicly accessible, allowing global collaboration, transparency, and innovation.

Relevance:

• Democratization of AI: Allows small organizations, startups, and researchers to access cutting-edge AGI tools without prohibitive costs.
• Innovation Acceleration: Facilitates collaboration across countries, sectors, and disciplines.
• Transparency & Trust: Open access reduces the “black-box” problem, allowing scrutiny for bias, fairness, and ethical compliance.
• AI Safety: Enables shared development of guardrails and standards to mitigate misuse risks.
• Applications: Healthcare, Education, Agriculture, Climate & Environment etc.

2. NITI Aayog Launches ‘AI for Viksit Bharat Roadmap’ & Frontier Tech Repository

Source: PIB

Context:

NITI Aayog launched two transformative initiatives, AI for Viksit Bharat Roadmap: Opportunity for Accelerated Economic Growth and NITI Frontier Tech Repository under its Frontier Tech Hub.

Key Highlights of the AI for Viksit Bharat Roadmap

• Objective: Harness AI to bridge 30–35% of India’s growth gap and achieve sustained 8%+ GDP growth by 2035.
• Focus Areas: Productivity enhancement, sector-specific AI adoption, and innovation-driven R&D.
• Approach:
  • Accelerate AI adoption in industries like banking, manufacturing, pharma, and automobiles.
  • Transform R&D using generative AI for faster, cost-efficient innovation.
  • Strengthen infrastructure in data, compute, talent, and governance for inclusive growth.

Read more>>

3. Yudh Abhyas 2025

Source: IE

Context:

The 21st edition of Yudh Abhyas, the annual India–US joint military exercise, concluded successfully on September 14, 2025, after two weeks of intensive engagement. The exercise highlights deepening India–US defence cooperation despite ongoing trade frictions.

Key Highlights:

• Origins & Evolution:
  • Started in 2002, initially focused on platoon-level peacekeeping operations.
  • Has grown into one of the largest and most advanced bilateral exercises conducted by India.
  • Conducted alternately in India and the US.
• Location & Duration (2025):
  • Fort Wainwright & Yukon Training Area, Alaska, USA
  • Sept 1–14, 2025

Banking/Finance

1. RBI Issues Final Guidelines for Payment Aggregators (PAs)

Source: ET & Mint

Context:

The Reserve Bank of India (RBI) has released its comprehensive final guidelines for Payment Aggregators (PAs), aimed at enhancing transparency, security, and governance in the digital payments ecosystem. These norms cover authorization, capital requirements, fund management, data security, and consumer protection.

Key Highlights:

• Authorization & Net Worth:
  • Non-bank PAs must obtain RBI authorization under the Payment and Settlement Systems Act, 2007.
  • Minimum net worth: ₹15 crore at application, rising to ₹25 crore by the end of the 3rd financial year.
  • Banks providing PA services as part of regular operations are exempt.
• Governance & Compliance:
  • PAs must be professionally managed, promoters and directors must meet ‘fit and proper’ criteria.
  • Any acquisition or management change must be reported to RBI within 15 days.
  • Appointment of a nodal officer for regulatory compliance and grievance handling is mandatory.
• Merchant Agreements & Escrow:
  • Agreements must clearly define responsibilities, dispute resolution, refunds, and grievance redressal.
  • Funds collected must be held in an escrow account with a scheduled commercial bank.
  • An escrow account is a neutral bank account where funds are temporarily held by a third party (the escrow agent) until specific conditions of a transaction are fulfilled by the parties involved.
• Risk Management & Security:
  • Mandatory background checks of merchants to prevent fraud or prohibited sales.
  • Compliance with Payment Card Industry Data Security Standards (PCI-DSS).
  • Robust IT and data security infrastructure required; annual security audits by CERT-In empanelled auditors.
  • Cyber incidents must be reported immediately to RBI and CERT-In.
• Customer Protection:
  • Card credentials must not be stored by PAs or merchants.
  • Refunds must go to the original payment method unless agreed otherwise.
• Payment Gateways (PGs):
  • Treated as technology providers; adherence to recommended security standards is encouraged.
  • A Payment Gateway (PG) is a technology service that facilitates online payment transactions between customers, merchants, and banks.

Payment Aggregators (PAs)

A Payment Aggregator (PA) is a financial entity that facilitates online payments by collecting money from customers on behalf of merchants and transferring it to the merchant after settlement. PAs do not hold a banking license but act as intermediaries between customers, merchants, and banks.

Regulatory Framework:

• Governed by the Reserve Bank of India (RBI) under the Payment and Settlement Systems Act, 2007.
• Non-bank PAs must obtain RBI authorization to operate in India.
• Required to maintain a minimum net worth of ₹15 crore initially, increasing to ₹25 crore by the end of the 3rd financial year.

2. SEBI Launches Swagat-FI

Source: Mint

Context:

The Securities and Exchange Board of India (SEBI) unveiled the Single Window Automatic & Generalised Access for Trusted Foreign Investors (Swagat-FI) on 12 September 2025 the most comprehensive reform of foreign investment rules to date. The framework is designed to simplify onboarding, unify investment routes, and attract long-term global capital into India.

Key Features of SWAGAT-FI

• Targeted Investors: The framework is designed for “low-risk” foreign investors, including sovereign wealth funds, central banks, pension funds, global insurance companies, and large mutual funds. These entities are typically government-owned or have a strong track record of stable investments.
• Simplified Registration: SWAGAT-FI offers a single-window registration process, reducing the complexity and time required for foreign investors to enter the Indian market.
• Extended Validity: Registered entities under this framework will benefit from an extended registration validity of 10 years, providing greater stability and predictability for long-term investments.
• Streamlined Compliance: The framework aims to ease ongoing compliance requirements, making it more efficient for trusted foreign investors to operate within India’s regulatory environment.

Objectives and Implications

• Stabilizing FII Flows: By attracting long-term, stable foreign investments, SWAGAT-FI seeks to mitigate the impact of short-term capital outflows and enhance the resilience of Indian capital markets.
• Boosting Market Confidence: The initiative is expected to bolster investor confidence in India’s financial markets, signaling a commitment to fostering a conducive environment for foreign investments.

Challenges & Considerations

• Heightened Scrutiny: Single demat accounts improve transparency but may increase regulatory monitoring of fund flows.
• Complex Tax Landscape: Layered tax compliances, multiple treaty interpretations, and withholding tax regimes continue to create ambiguity and compliance costs.
• Next Steps: Experts suggest harmonising tax processes with the Income Tax Department and RBI to fully realize the framework’s benefits.

3. PFRDA Allows Bespoke Pension Plans

Source: ET

Context:

The Pension Fund Regulatory and Development Authority (PFRDA) has announced that individual pension fund houses can now launch tailor-made investment plans, marking a potential overhaul for India’s $175 billion pension industry.

Previously, subscribers under the National Pension System (NPS) could operate only one pension program with a predefined asset allocation set by PFRDA. This limited flexibility restricted pensioners’ ability to align investments with personal goals and risk preferences.

Key Changes:

• Multiple Pension Programs Per Subscriber
  • Account holders can now operate multiple pension programs simultaneously, giving greater flexibility to diversify across risk profiles and retirement goals.
  • Fund houses can offer bespoke products tailored to investor preferences, moving away from uniform, regulator-defined plans.
• Expanded Personalisation & Product Innovation
  • Pension managers can now design plans targeting specific customer segments, advertising a broader range of potential returns.
  • Subscribers can choose investments across four asset classes:
    • Equity
    • Corporate debt
    • Government bonds
    • Alternative investment funds
  • Fund managers gain flexibility to innovate within these asset classes to meet diverse investor demands.

4. RBI, NPCI Set to Launch Netbanking 2.0

Context:

At least four major banks HDFC Bank, Axis Bank, SBI, and AU Small Finance Bank along with several online payment aggregators are preparing to go live on Netbanking 2.0, a new interoperable netbanking switch developed by NPCI Bharat BillPay Ltd. (NBBL). The official launch is expected by RBI Governor Sanjay Malhotra at the Global Fintech Fest 2025 (Oct 7–9).

Netbanking 2.0 Features:

• Aims to standardise and simplify netbanking transactions.
• Functions as a new independent switch, not reliant on existing payment rails.
• Enables interoperability across banks — merchants and aggregators won’t need separate bank tie-ups.
• Expected to resolve issues of settlement delays, chargebacks, reconciliations, and lack of visibility in the current system.
• Objective: Standardize netbanking services and improve customer experience across banks.
• Distinctiveness: Unlike existing systems, it removes the need for individual payment aggregators to integrate separately with each bank.

Benefits:

• Enhanced Interoperability: Simplifies settlements, reconciliations, and chargeback processes across banks.
• Dynamic QR Codes: Supports multi-device transactions, allowing initiation on laptops/desktops and authorization via mobile devices.
• Streamlined User Experience: Standardized processes reduce friction for end-users and financial service providers.

5. Viyona Fintech Approved as Third-Party Application Provider (TPAP) by NPCI

Context:

Hyderabad-based Viyona Fintech, a digital payments platform, has been granted approval by the National Payments Corporation of India (NPCI) to operate as a Third-Party Application Provider (TPAP), enabling support for UPI-based transactions.

Key Details:

• Approved Applications:
  • GraamPay – flagship platform targeting rural India.
  • Viyona Pay – supports UPI-based collections and payments.
• Objective: Expand digital payment access in Tier II, Tier III cities and rural areas.
• Target Users: Farmers, shopkeepers, and households.
• Services Offered:
  • UPI transactions
  • Digital collections
  • Payouts and financial transfers

Third-Party Application Provider (TPAP)

A Third-Party Application Provider (TPAP) is a regulated intermediary that facilitates digital payments (like UPI) between customers and banks through mobile apps or web platforms, without holding the customers’ funds.

Key Features:

• Intermediary Role:
  • Acts as a bridge between banks and end-users for payment initiation.
  • Enables customers to make UPI-based transactions via third-party apps.
• Regulation:
  • Authorized by the National Payments Corporation of India (NPCI).
  • Must comply with security, data privacy, and operational standards prescribed by NPCI.
• No Fund Handling:
  • Unlike Payment Aggregators, TPAPs cannot hold or settle customer funds; the transaction settlement happens directly between the bank accounts of payer and payee.
• Customer Experience:
  • Provides user-friendly interfaces, such as mobile apps, for easy UPI payments, bill payments, and collections.
  • Supports multi-bank interoperability, eliminating the need for users to install multiple bank apps.

6. RBI Approves Amendments to Yes Bank’s Articles of Association for Nominee Directors

Context:

The Reserve Bank of India (RBI) has approved changes to Yes Bank’s Articles of Association (AoA) regarding the appointment of nominee directors following a stake acquisition by Sumitomo Mitsui Banking Corporation (SMBC), Japan.

Articles of Association (AoA)

The Articles of Association (AoA) is a legal document that defines the internal rules, regulations, and management structure of a company. It governs the relationship between the company, its shareholders, and its directors.

Key Features:

• Internal Governance:
  • Specifies how the company will be managed and controlled.
  • Lays down powers, duties, and responsibilities of directors and officers.
• Relationship Rules:
  • Governs the relationship between shareholders and the company.
  • Includes rights, privileges, and obligations of shareholders.
• Operational Provisions:
  • Rules regarding share issuance, dividend distribution, meetings, voting rights, and appointment/removal of directors.
  • Can include provisions for nominee directors when a company receives investment from specific investors (like in Yes Bank case with SMBC).
• Legal Requirement:
  • Required under the Companies Act, 2013 in India.
  • Works alongside the Memorandum of Association (MoA), which defines the company’s objectives and scope of operations.

Examples of AoA Provisions:

• Appointment and removal of directors
• Rights of shareholders in voting and dividends
• Conduct of board and general meetings
• Borrowing powers and issuance of shares
• Rules for nominee directors from investor agreements

Agriculture

1. Agriculture Must Adapt to Changing Weather Patterns

Context:

The 2025 southwest monsoon has started withdrawing a little earlier than usual, after recording about 7% excess rainfall. Forecasts indicate La Niña conditions by October and a colder-than-normal winter ahead. These shifting weather patterns bring both opportunities and risks for Indian agriculture.

Opportunities for Agriculture

• Strong monsoon impact: Reservoirs are filled, and soil moisture is high, which supports Kharif harvests and sets a good base for Rabi sowing.
• Cold weather benefits: Farmers in Rajasthan and North India expect better yields of wheat, barley, and mustard, which thrive in cooler conditions.
• Food security & price stability: A strong Rabi harvest of wheat, pulses, and mustard will strengthen food security, stabilise domestic prices, and may even support higher farm exports.

Risks & Challenges

• Unseasonal Rain: Downpours at harvest can damage crops, reduce quality, and trigger food inflation (notably for perishables like fruits and vegetables).
• Cold Waves: Early chill aids sowing, but prolonged or extreme cold can harm flowering and grain development (e.g., frost concerns in Kutch, Gujarat).
• Lingering La Niña Rains: If rains persist, delayed withdrawal may waterlog fields, hurting yields—especially for perishable crops.

Policy & Farmer-Centric Solutions

• Weather Advisory & Insurance:
  • Strengthen weather forecasting services and disseminate frequent advisories.
  • Promote wider adoption of crop insurance to protect farmers from unseasonal rain and frost damage.
• Price & Market Stabilisation:
  • Monitor food prices, especially perishables.
  • Use cold storage, buffer stocking, and transport support to prevent shortages and inflation.
• Water & Infrastructure Management:
  • Use reservoir water strategically for irrigation if rains fade.
  • Maintain drainage systems in flood-prone zones to prevent waterlogging.
• Export Support:
  • Encourage exports of wheat, pulses, and mustard to boost farmer incomes while maintaining domestic stability.
• Long-Term Climate Adaptation:
  • Invest in climate-resilient seed varieties, local storage facilities, and advanced forecasting systems.
  • Shift from a reactive approach to proactive planning in agriculture policy.

Facts To Remember

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2. ICMR licences multi-stage malaria vaccine ‘AdFalciVax’ to five companies

The Indian Council of Medical Research (ICMR) has granted non-exclusive rights for its multi-stage malaria vaccine, AdFalciVax, to five pharmaceutical companies.

3. PM Modi Launches ‘Swasth Nari Sashakt Parivar’ Abhiyan and Rashtriya Poshan Maah from Dhar in Madhya Pradesh

Prime Minister Narendra Modi today launched the nationwide Swasth Nari, Sashakt Parivar Abhiyaan and the 8th  Rashtriya Poshan Maah camping from Dhar in Madhya Pradesh.

4. Swachhata Hi Seva Campaign 2025 Launched by Minority Affairs Ministry

The Ministry of Minority Affairs has organised the Swachhata Hi Seva Campaign 2025 from today, which will continue till the 2nd of October on Gandhi Jayanti. 

5. ISRO to Invite Private Companies Specialising in On-Orbit Servicing and Refuelling

The Indian Space Research Organisation (ISRO) Chairman, Dr. V. Narayanan, has said that companies specialising in on-orbit servicing and refuelling tech will be invited to work with it. Speaking at the inauguration of the new R&D facility of OrbitAID Aerospace, India’s first space-tech startup in Bengaluru today.