Daily Current Affairs Quiz
28 & 29 November, 2025

International Affairs

1. G20 Johannesburg Summit 2025

Context

• The 2025 G20 Summit in Johannesburg, South Africa, highlighted geopolitical divides, with the US, China, and Russia absent.
• South Africa pushed through a Leaders’ Declaration despite US objections, underlining the influence of middle powers and the Global South.

About G20 – Establishment and Evolution

Origin and Purpose:

• Established: 1999, after the Asian Financial Crisis (1997–98).
• Initial Format: Forum of Finance Ministers and Central Bank Governors to stabilize global finance.
• Upgrade: Post-2008 Global Financial Crisis, elevated to Leaders’ Summit to coordinate macroeconomic responses.
• From G8 to G20: Inclusion of emerging economies (China, India, Brazil, Saudi Arabia) created a de facto “economic security council”.
• Mandate Expansion: Over time, G20 covers finance, trade, climate, energy, health, food security, digital governance, and development.
• Platform for Emerging Powers: Provides a voice to countries like India, Brazil, and South Africa amid UNSC stagnation.

Presidency:

• Annual Rotational Presidency: Rotates among member countries, giving the host country agenda-setting power.
• 2025 Host: South Africa, emphasizing Africa-centric development and Global South priorities.

G20 Johannesburg 2025

• UNSC Reform: Calls for representation of Africa, Latin America, and Asia-Pacific, reflecting modern geopolitical realities.
• Climate & Finance Commitments: Scaling climate finance from billions to trillions, ensuring just transitions, and supporting vulnerable economies.
• Debt & Cost of Capital: Launch of a Cost of Capital Commission to address Global South debt burden (USD 1.8 trillion) and unfair borrowing costs.
• Social Targets:
  • Nelson Mandela Bay Target: Reduce NEET youth share by 5% by 2030.
  • Gender parity: 25% labour force participation by 2030.
• Critical Minerals Framework: Secures sustainable and diversified mineral value chains and local beneficiation.
• Mission 300 & Energy Access: Brings electricity to 300 million people in Sub-Saharan Africa by 2030.

Geopolitical Tensions

• Absence of Big Three: US, China, Russia absent → summit influenced by middle powers.
• US–South Africa Clash: US opposed climate and debt language, refused the declaration, accusing South Africa of “weaponising” presidency.
• Other Frictions:
  • Argentina (Milei government) withdrew over Middle East conflict references.
  • Europe focused on Ukraine, while Global South emphasized Gaza and humanitarian issues.

National Affairs

1. IMF Assigns Second-Lowest ‘C’ Rating to India’s National Accounts Statistics (NAS) and Inflation Data

Source: BS

Context

The International Monetary Fund (IMF) currently rates India’s national accounts data at ‘C’, the second-lowest grade in its four-tier Data Adequacy Assessment (DAA) scale. The IMF assesses the adequacy of official statistics for surveillance of a country’s economy. A ‘C’ rating indicates that data shortcomings somewhat hamper economic surveillance.

Following India’s announcement of a new GDP and CPI series, the IMF is expected to upgrade its rating in early 2026.

Key Highlights:

National Accounts Statistics (NAS): Received a ‘C’ grade.

• Implication: Data is available regularly, but methodological weaknesses hinder cross-country comparability and effective economic surveillance.

Consumer Price Index (CPI): Graded ‘B’, meaning it is broadly adequate but with some shortcomings.

Current Status and IMF Assessment

• India’s DAA rating of ‘C’ has persisted for two consecutive years (2024–25).
• Concerns cited by IMF staff include:
  • Outdated base year (2011-12) for GDP
  • Single deflation methods introducing cyclical biases
  • Gaps between production and expenditure approaches
  • Limited coverage of the informal sector
• IMF notes India’s data is broadly adequate, but further improvements would enhance surveillance and policy formulation.

Reasons for ‘C’ Grade – IMF Observations

1. Outdated Base Year:
   • GDP and CPI still rely on 2011–12 consumption and production structures, not reflecting the modern economy.
2. Use of WPI as Deflators:
   • Absence of a comprehensive Producer Price Index (PPI) forces reliance on wholesale prices, weakening real GDP estimates.
3. Production vs Expenditure Gaps:
   • Recurring discrepancies indicate undercoverage of expenditure data and significant informal sector activity.
4. Limited Seasonal Adjustment:
   • Quarterly GDP lacks robust seasonal adjustments, affecting growth trend analysis.
5. Need for Better Statistical Techniques:
   • IMF recommends improved modelling practices for national accounts.

India’s National Accounts Statistics (NAS)

Publisher: Ministry of Statistics and Programme Implementation (MoSPI)

Purpose:

• Provides a comprehensive macroeconomic database of India’s economy, including GDP, GVA, consumption, investment, savings, and related aggregates.

Methodology:

• System Followed: UN System of National Accounts (SNA-2008)
• Income Approach (Primary): GDP estimated using incomes of households, enterprises, and government.
• Expenditure Approach (Supplementary): GDP estimated via consumption, investment, government spending, and net exports.
• Sectoral GVA Method: Value added computed across agriculture, industry, services at current and constant (2011–12) prices.

Key Indicators Published:

• GDP & GVA: Sector-wise and aggregate
• Consumption Expenditure: Private and government
• Gross Capital Formation (GCF): Machinery, construction, valuables
• Savings & Investment Rates across sectors
• National Income, Disposable Income, Per-Capita Indicators

Upcoming Revisions in India’s Data

• GDP base year: Updated to 2022-23, first revision since 2015.
• CPI base year: Updated to 2024 to better reflect consumption patterns.
• Methodological improvements:
  • Better volume estimates using double deflation techniques with producer price indices
  • Inclusion of new data sources and improved statistical methods for quarterly GDP
• Expected launch: February 2026

Other Improvements Highlighted by Indian Officials

• Balance of Payments (BoP):
  • Released with a 2-month lag from Q1 FY26
  • RBI plans monthly BoP statistics (lag ~40 days, more aggregate level)
• National accounts compilation: Uses data from private corporate and government accounts, improving coverage and granularity
• Suggested regular benchmark revisions for national accounts, prices, and other data sets in line with international best practices

IMF Recommendations for Further Improvements

• Conduct population census to ensure survey representativeness (last in 2011–12)
• Provide timely consolidated government fiscal accounts
• Expand data coverage for NBFCs
• Improve timeliness and granularity of systemic financial linkages

2. Samudrayaan Mission

Context:

India’s first manned deep-sea mission, Samudrayaan, has hit a timeline setback due to delays in receiving syntactic foam cladding from France. The foam is essential for providing buoyancy to the submersible MATSYA 6000, which is designed to dive 6,000 metres into the ocean. The mission is led by the National Institute of Ocean Technology (NIOT), Chennai under the Ministry of Earth Sciences.

What is Samudrayaan?

• India’s first crewed submersible mission to explore the deep ocean.
• Objective: Aims to reach 6,000 metres (Hadopelagic zone), a depth accessed by only a few countries.
• Submersible: MATSYA 6000
• Lead Agency: National Institute of Ocean Technology (NIOT), Chennai
• Governing Body: Ministry of Earth Sciences
• Three crew members will descend to the ocean floor to collect soil, rock, and mineral samples — critical for future deep-sea mining of polymetallic nodules and rare metals.

3. Tex-RAMPS Scheme

Source: TOI

Context

• Strengthen research, innovation, and data systems in India’s textiles and apparel sector.
• Future-proof the sector through technology adoption, data-driven decision-making, capacity building, and entrepreneurship support.

Implementing Ministry:

• Ministry of Textiles, Government of India
• Type: Central Sector Scheme (fully funded by the Centre)

Financial Outlay:

• ₹305 crore for 2025–31, aligned with the next Finance Commission cycle for continuity

Key Components

• Research & Innovation:
  • Support for advanced R&D in:
    • Smart textiles
    • Sustainable textile technologies
    • Process efficiency
    • Emerging textile innovations
• Data, Analytics & Diagnostics:
  • Development of robust data systems for:
    • Employment mapping
    • Supply chain studies
    • India-Size project for sector-specific analysis
• Integrated Textiles Statistical System (ITSS):
  • Real-time analytics platform
  • Enables structured monitoring and evidence-based decision-making
• Capacity Development:
  • Enhances State-level planning
  • Knowledge sharing via workshops, best practices, and training programs
• Start-up & Innovation Support:
  • Funding for incubators, hackathons, and academia–industry partnerships
  • Boosts textile entrepreneurship and innovation ecosystem

Key Features

• Smart & Sustainable Focus: Aligns with global technology trends and green manufacturing.
• Structured Monitoring: ITSS ensures real-time visibility into sector performance nationwide.
• Uniform Implementation: Fully funded Central Sector Scheme ensures consistency across states.

4. India’s Revised Earthquake Design Code – 2025

Source: TOI

Context

• India released a radically updated seismic zonation map under the revised Earthquake Design Code (IS 1893:2025).
• Entire Himalayan arc (J&K–Ladakh to Arunachal Pradesh) placed in a newly created highest-risk Zone VI, reflecting extreme tectonic stress for the first time.

Publishing Authority:

• Bureau of Indian Standards (BIS)
• Methodology: Probabilistic Seismic Hazard Assessment (PSHA) based on international standards

Key Features of the Revised Seismic Zonation Map

• Zone VI – Highest Risk:
  • Entire Himalayan arc classified as Zone VI, recognizing consistent tectonic stress along the Indian–Eurasian plate boundary.
• Wider Hazard Coverage:
  • 61% of India now falls under moderate to high seismic hazard zones, reflecting scientific modelling rather than just past earthquake epicentres.
• Boundary Towns Upgrade:
  • Cities on the boundary of two zones automatically assigned the higher-risk zone, emphasizing geological realities over administrative boundaries.
• Rupture Propagation Southwards:
  • Himalayan Frontal Thrust ruptures may extend south to foothill regions like Dehradun, influencing design codes there.
• Mandatory Structural & Non-Structural Safety:
  • Anchoring of parapets, ceilings, tanks, façades, HVAC units if weight exceeds 1% of total load.
  • Buildings near active faults must resist pulse-like ground motions typical of near-fault earthquakes.
• Soil & Ground Response Requirements:
  • Detailed provisions for liquefaction, soil flexibility, site-specific shaking spectra.
  • Encourages geotechnical investigations before major construction.
• Exposure Mapping – PEMA Method:
  • Integrates population density, infrastructure concentration, and socioeconomic vulnerability.
  • Focus on impact-based hazard assessment, linking geological hazard with societal exposure.

5. S-500 Prometey Air Defence System

Context

PM of India and President of Russia to meet during the India–Russia Summit. Defence ministers expected to discuss India’s potential acquisition of Russia’s next-generation S-500 air defence system.

S-500 Prometey Air Defence System

Purpose:

• Russia’s most advanced long-range surface-to-air and anti-space defence system.
• Capable of intercepting:
  • Aircraft
  • Ballistic missiles
  • Hypersonic weapons
  • Low-orbit satellites

Key Features

• Ultra-long Range: Intercepts targets up to 600 km away.
• Near-Space Interception: Operates at altitudes up to 200 km, including low-Earth-orbit objects.
• Hypersonic Interceptors: Missiles 77N6-N / 77N6-N1 travel at Mach 5–7 using hit-to-kill accuracy.
• Multi-Target Engagement: Can neutralize stealth jets, ballistic missiles, hypersonic glide vehicles, and drones.
• Advanced Radar Suite: 91N6A(M) & 96L6-TsP radars detect threats up to 800 km, including stealth aircraft.

Banking and Finance

1. RBI Issues 244 Consolidated Master Directions to Simplify Compliance

Source: ET

Context

The Reserve Bank of India (RBI) has issued 244 Consolidated Master Directions (MDs) to streamline and rationalise decades of regulatory instructions for Regulated Entities (REs). This step follows a review of around 3,500 prior directions, circulars, and guidelines and aims to reduce compliance burden.

Key Highlights:

Customer Consent and Choice

• Banks must obtain explicit consent from customers for providing digital banking services, which should be recorded/documented.
• Mandatory opt-in prohibited: Customers cannot be forced to use digital channels to avail banking facilities like debit/credit cards.
• Banks may collect mobile numbers for transaction alerts and KYC compliance.
• Customers retain the sole right to apply for digital banking services.

Risk Mitigation Requirements

• Banks must implement risk-based controls, including:
  • Transaction limits (per transaction, daily, weekly, monthly)
  • Transaction velocity checks
  • Fraud detection systems
• Compliance with RBI and payment system operator guidelines (e.g., NPCI, VISA, Mastercard) is mandatory, applying the stricter standard when requirements differ.
• Continuous adherence to DPSS instructions under the Payment and Settlement Systems Act, 2007.

Accessibility and Network Independence

• Mobile banking services (excluding mobile apps) must be accessible across all mobile networks.
• Ensures network independence, promoting financial inclusion.

Monitoring and Surveillance

• Banks must have transaction monitoring systems to track unusual patterns.
• Outlier transactions may require prior confirmation from the customer.
• Fraud Risk Management Policy should guide these risk assessment protocols.

Restrictions on Third-Party Offerings

• Third-party products and services, including subsidiaries, JV partners, or promoter group entities, cannot be displayed on digital channels unless RBI permits.

Communication Guidelines

• Banks must clearly communicate that SMS/email alerts will be sent only to registered mobile numbers/emails.

Regulated Entities Covered

The consolidation covers the following 11 types of entities:

1. Commercial Banks
2. Small Finance Banks
3. Payments Banks
4. Local Area Banks
5. Regional Rural Banks
6. Urban Cooperative Banks
7. Rural Cooperative Banks
8. All India Financial Institutions
9. Non-Banking Financial Companies (NBFCs)
10. Asset Reconstruction Companies (ARCs)
11. Credit Information Companies

Objective

• Reduce compliance complexity and duplication.
• Make it easier for REs to interpret and implement regulatory instructions.
• Strengthen transparency and governance by organising directives systematically.

2. IMF Gives ‘C’ Grade to India’s National Accounts Statistics

Source: IE

Context

The International Monetary Fund (IMF), in its Annual Article IV Review, has assigned a ‘C’ grade to India’s national accounts statistics, including GDP and GVA. This grade is significant as India is set to release the Q2 FY25 national accounts data on Friday.

Meaning of ‘C’ Grade

• A ‘C’ grade indicates that data have shortcomings which hamper effective surveillance.
• Four grading categories exist: A, B, C, and D.
• For overall data quality across all categories, India received a ‘B’ grade.

Weaknesses Cited by IMF

1. Outdated Base Year (2011–12)

• The national accounts still rely on the 2011–12 base year, making GDP estimates less reflective of current economic structure.
• The IMF recommends updating it to capture changes in consumption, production, and technological shifts.

2. Use of Wholesale Price Index (WPI) for Deflators

• Due to the absence of Producer Price Indices (PPI), India uses WPI as a deflator.
• This affects the accuracy of real GDP estimates, especially in a services-led economy.

3. ‘Sizeable Discrepancies’ in GDP Estimates

• The IMF flagged periodic mismatches between:
  • Production approach, and
  • Expenditure approach of GDP.
• These discrepancies suggest:
  • Inadequate coverage of the expenditure-side data, and
  • Limited reflection of the informal sector, which is a major part of India's economy.

Approaches to GDP Measurement in India

1. Income Approach (Primary method used by India)

Measures GDP by adding up incomes earned by:

• Government
• Households
• Companies

2. Expenditure Approach (Supplementary estimate)

Measures GDP by calculating spending by:

• Households
• Businesses
• Government
• External sector

Differences frequently arise due to:

• Different data sources
• Coverage gaps
• Limited visibility of informal sector activities

3. FinMin and RBI Developing Unified Portal for Unclaimed Financial Assets

Source: ET

Context

The Ministry of Finance, in collaboration with the Reserve Bank of India (RBI), is developing a single unified digital portal to help individuals locate and claim unclaimed financial assets across multiple asset classes. The announcement was made by M. Nagaraju, Secretary, Department of Financial Services, during a PNB-led investor awareness event under Aapki Poonji Aapka Adhikar.

Unclaimed Financial Assets

Unclaimed Assets refer to money or financial instruments that legally belong to an individual but remain untouched, unwithdrawn, or unclaimed for a long period.
These assets typically become “unclaimed” because the owner:

• Forgot about the investment or deposit,
• Moved without updating contact details,
• Passed away and the heirs were unaware,
• Lost access due to inactive accounts or documentation issues.

Banks must transfer unclaimed bank deposits (10+ years) to the Depositors Education and Awareness Fund (DEAF) maintained by RBI.

Unified Portal for All Unclaimed Assets

• The portal will consolidate information on unclaimed bank deposits, pension funds, shares, dividends, and other financial instruments.
• Objective: To make it easier for savers and retail investors to identify, verify, and claim long-dormant or forgotten assets.
• This eliminates the need to visit multiple platforms maintained by banks, EPFO, insurance companies, or corporate registrars.
• The portal is being jointly developed by the Ministry of Finance and the Reserve Bank of India, ensuring regulatory integration and verified data flow.

What Is an Inoperative Account?

An Inoperative Account is a bank account that has seen no customer-initiated transaction for a fixed period.

• A savings/current account becomes inoperative if there is no customer-initiated transaction for 2 consecutive years.
• Automatic entries like interest credit, service charges, or penalty deductions do NOT count as customer-initiated transactions.

4. IMF Report: Zombie Firms Highlight Inefficient Insolvency Resolution in India

Source: BS

Context

The International Monetary Fund (IMF), in its recent staff report on the Indian economy, highlighted structural inefficiencies in India’s business environment, low business dynamism, and issues in the insolvency resolution framework under the Insolvency and Bankruptcy Code (IBC) Amendment Bill. The report emphasised the prevalence of zombie firms and gaps in operational creditor rights.

Low Business Dynamism

• Entry and exit rates of firms in India are below 1%, far lower than 8–13% in US, Europe, Korea, and Chile.
• Low entry rates partly reflect high regulatory compliance burdens.
• Overall, India shows structural rigidities, discouraging formal sector participation.

Persistence of Zombie Firms

Zombie Firms are businesses that continue to operate but are financially weak and unable to generate enough profits to cover their interest payments for a prolonged period.

• 15% of continuously operating firms qualify as zombie firms:
  • Do not generate enough earnings to cover interest expenses.
  • Operate at low productivity levels.
• Causes include:
  • Forbearance lending
  • Inefficient insolvency resolution
  • Limited exit mechanisms for non-viable firms.

IBC Amendment Bill Gaps

• Operational creditors still lack the right to vote on resolution plans.
• No rules for executory contracts, limiting the possibility of restructuring ongoing business operations instead of outright sale.
• Anticipated to expedite bankruptcy resolution, but gaps remain in governance and operational efficiency.

Recovery Rates and Pre-admission Delays

• Recovery rates for financial creditors declined:
  • From 43% in March 2019 → 33% in June 2025.
• Pre-admission delays (filing to case opening) worsened:
  • Operational creditors face an average wait of 650 days in 2022 vs 450 days in 2019.

Recommendations by IMF

• Complement legislative reforms with:
  • Strengthened judicial capacity via dedicated tribunal benches.
  • Adequate funding for tribunals.
  • Operationalisation of the personal insolvency regime.
• Improve credit allocation to redirect resources from low-productivity to high-productivity firms.

5. Bandhan Bank to Sell Unsecured Non-Performing Assets (NPAs)

Source: IE

Context

Kolkata-headquartered Bandhan Bank has announced plans to sell unsecured retail non-performing assets (NPAs), including written-off accounts, worth ₹6,931.31 crore to Asset Reconstruction Companies (ARCs) and other permitted entities. This marks one of the largest retail NPA sales by a private sector bank in India, primarily from its microfinance portfolio.

What is an NPA (Non-Performing Asset)?

A Non-Performing Asset (NPA) is a loan or advance where the borrower has stopped making scheduled payments (principal or interest) for a certain period.
As per RBI norms:

When does a loan become NPA?

A loan is classified as NPA after 90 days of overdue in the case of:

• Term loans
• Cash credit/overdraft accounts that remain out of order
• Bills purchased and discounted
• Agricultural loans (with seasonal norms)

Categories of NPAs

1. Sub-standard Asset: NPA for ≤ 12 months
2. Doubtful Asset: NPA for > 12 months
3. Loss Asset: Identified as uncollectable (but not fully written off)

In simple words:
If a borrower does not pay for 90 days, the bank stops recognising income from that loan and marks it as NPA.

Norms to Sell NPAs (As per RBI Guidelines)

Banks can sell NPAs to:

• Asset Reconstruction Companies (ARCs),
• Other Banks,
• NBFCs,
• Financial Institutions,
  as permitted by RBI.

Eligibility for Sale

• Only stressed assets classified as NPA or
• Standard assets under stress (SMA accounts)
  can be sold.
• Written-off accounts can also be sold.

6. RBI Final Guidelines on Digital Banking Channels

Source: TH

Context

The Reserve Bank of India (RBI) has issued its final instructions for banks on digital banking channels, emphasizing customer consent, risk management, and operational compliance.

The guidelines clarify that digital banking cannot be made mandatory for accessing other services, such as debit cards.

Key Provisions

Explicit Customer Consent

• Banks must obtain clear and documented consent from customers before activating any digital banking channel.
• Customers’ choice to opt for digital banking is voluntary.

Mobile Number Collection

• Banks can collect and record customers’ mobile numbers for:
  • Transaction alerts
  • KYC compliance at account opening

Risk Mitigation Measures

• Banks may implement internal risk controls such as:
  • Transaction limits (per transaction, daily, weekly, monthly)
  • Transaction velocity limits
  • Fraud checks
• These measures must align with the bank’s Fraud Risk Management Policy.

Risk-Based Monitoring

• Banks must have transaction surveillance mechanisms:
  • Study customer transaction patterns
  • Flag unusual transactions
  • Seek prior confirmation for outlier transactions

Network-Independent Mobile Banking

• Mobile banking services must be accessible across all mobile network operators.

Restrictions on Third-Party Products

• Banks cannot display third-party or group-company products on digital channels unless explicitly permitted by RBI.

Policy and Oversight

• Banks must have a comprehensive digital banking policy covering:
  • Liquidity management
  • Operational risk management
• Senior management remains responsible for overseeing risks.

Launch of Transaction Banking Facilities

• Banks require RBI approval before launching fund-based or non-fund-based transaction banking services.

7. RBI Imposes ₹91 Lakh Penalty on HDFC Bank

Source: TOI

Context

The Reserve Bank of India (RBI) has imposed a penalty of ₹91 lakh on HDFC Bank following violations detected during its Statutory Inspection for Supervisory Evaluation (ISE 2024), which assessed the bank’s financial position as on March 31, 2024.

The penalty is for non-compliance with the Banking Regulation (BR) Act, RBI directions, and related guidelines.

Key Findings

1. Interest Rate Benchmark Violations

• The bank adopted multiple interest rate benchmarks within the same loan category, contrary to RBI norms.

2. Unauthorized Business Activities

• A wholly-owned subsidiary engaged in business activities not permitted under Section 6 of the BR Act.

3. KYC Outsourcing Non-Compliance

• The bank outsourced compliance with KYC norms for certain customers to agents, which violated RBI regulations requiring banks to maintain oversight and accountability.

Norms / Provisions Violated by HDFC Bank

When RBI carried out its Statutory Inspection for Supervisory Evaluation (ISE 2024) — as of 31 March 2024 — it found multiple violations by HDFC Bank. The key norms breached were:

• Violation of certain provisions of the Banking Regulation Act, 1949 (BR Act), especially Section 19(1)(a) and Section 6(1).
• Non-compliance with RBI’s regulatory directions regarding:
  1. Interest Rate on Advances (i.e. lending/loan interest rate norms).
  2. Code of Conduct and Risk Management Guidelines for Outsourcing of Financial Services by banks (i.e. improper outsourcing).
  3. Know Your Customer (KYC) norms — regulatory standards on customer identification, due diligence, and ongoing compliance.

8. SEBI Proposes Social Media Disclosure Norms for Regulated Entities

Context

The Securities and Exchange Board of India (SEBI) has proposed new guidelines for regulated entities and their agents regarding social media usage. The move aims to enhance transparency and protect investors from misleading content.

Key Proposals

1. Mandatory Display of Registration Details

• All SEBI-regulated entities and their agents (e.g., mutual fund distributors, PMS distributors) must prominently display:
  • Registered name
  • SEBI registration number
• Display must be on:
  • The home page of their social media platforms
  • Alongside each video or content posted

2. Content Standards and Restrictions

• Social media posts must not contain:
  • Promises of guaranteed returns
  • Statements prohibited under law
  • False, misleading, biased, or investor-misguiding content

3. Purpose of the Guidelines

• Differentiate content posted by registered SEBI entities from unregistered individuals.
• Prevent investors from being misled by unverified or illegal financial content.
• Ensure accountability and transparency of content shared on social media.

9. Accredited Investors in India

Context

The Securities and Exchange Board of India (Sebi) recently amended rules to allow Alternative Investment Funds (AIFs) to launch accredited investor-only schemes. Accredited investors (AIs) are sophisticated investors with high financial capacity and understanding, eligible for high-risk, high-return instruments.

Despite regulatory support, the accredited investor base in India remains small, raising questions about the impact of these reforms.

What Are Accredited Investors?

Accredited Investors (AIs) are financially sophisticated individuals or entities recognized by SEBI as having high financial capacity and risk-taking ability. They are allowed to invest in complex, high-risk, or customized investment products not typically available to retail investors.

The AI framework was introduced by SEBI in 2021 to deepen India’s capital markets and give flexibility to wealthy investors.

Sebi’s Definition of Accredited Investors (2021)

• Individuals, family trusts, sole proprietorships, partnerships with:
  • Annual income ≥ ₹2 crore, or
  • Net worth ≥ ₹7.5 crore with financial assets ≥ ₹3.75 crore
• Corporate bodies & non-family trusts: Net worth ≥ ₹50 crore

Recent Sebi Amendments (Nov 19, 2025)

• AIFs can now:
  • Launch AI-only funds/schemes
  • Convert existing AIFs into AI-only schemes
  • Shift trustee responsibilities to fund managers
• 1,000-investor cap: No longer applies to AI-only funds
• Investment threshold: Removed for AIs, allowing smaller, diversified investments

Agriculture

1. India Pushes for Mutual Recognition of Agri Goods Testing

Source: Mint

Context

India is seeking to align its inspection, testing, and certification systems for agricultural exports with major trading partners including the US, EU, UK, Singapore, Switzerland, ASEAN countries, and Australia.
Objective: Reduce non-tariff barriers such as rejections and delays caused by sanitary and phytosanitary (SPS) inspections, and facilitate low-friction trade for farm produce.

Mutual Recognition Agreements (MRAs)

• MRAs allow trading partners to mutually accept each other’s testing and certification systems.
• Example: India-Australia MRA (Sept 2025) on organic products enables cross-recognition of certification for a range of organic goods.
• Expected benefits:
  • Faster market access for Indian agricultural exports.
  • Reduced rejection rates due to SPS compliance issues.
  • Lower compliance costs, making products more price-competitive internationally.

Targeted Agricultural Exports

MRAs aim to boost trade in key sectors:

• Staple crops: Basmati rice, spices
• Beverages: Tea, coffee
• Marine products
• Fruits and vegetables

Approximately 45–50% of India’s agricultural export basket could be covered under these MRAs.

2. Indian Seed Sector

Source: BS

Context

India’s seed sector, valued at over ₹35,000 crore, is at the cusp of significant regulatory and policy changes through:

1. A draft Seeds Bill (2025)
2. Proposed amendments to PPVFRA (Protection of Plant Varieties and Farmers Rights Authority)
3. Global negotiations under the International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA / Plant Treaty)

These reforms aim to enhance quality, investment, and innovation in the sector while balancing farmer rights and food security.

1. Draft Seeds Bill, 2025

• Purpose: Replace the Seeds Act, 1966 and Seeds (Control) Order, 1983 to regulate seed quality, facilitate production and supply of high-quality seeds, and improve traceability.
• Key Features:
  • Centralised accreditation system, replacing state-level seed licences.
  • Focus on traceability and quality inspection.
  • Permits foreign organisations to conduct Value of Cultivation and Use (VCU) trials and certify seeds, though final certification remains with ICAR.
• Criticism:
  • Farmer rights, compensation, and price regulation are minimally addressed.
  • Penal provisions are emphasized, but compensation for substandard seeds is missing.
  • States’ powers are curtailed, raising concerns about federal balance in seed governance.
• Positive aspects:
  • Penal provisions and inspection powers are expected to improve compliance.

2. Proposed Amendments to PPVFRA

• Purpose: Protect Intellectual Property Rights (IPR) of plant varieties and safeguard farmers’ rights.
• Key Features / Changes:
  • Provisional registration of plant varieties allowed while final certification is pending, reducing risk for breeders.
  • “Innocent infringement” clause preserved to protect farmers using registered varieties unknowingly.
• Industry feedback:
  • Cosmetic and definitional changes only; core structure remains unchanged.
  • Demand to include genetic modification/gene editing under PPVFRA not accepted, remains under environment ministry regulation.
• Concerns:
  • Transparency of committee composition and process questioned by civil society groups.

3. Plant Treaty (ITPGRFA) Negotiations

• Overview:
  • Multilateral treaty for conservation, sustainable use, and equitable sharing of plant genetic resources for food and agriculture.
  • India is a signatory since 2004; currently, only 9 crops (26,563 accessions) notified under the Multilateral System (MLS).
• Key Issues:
  • Civil society claims India has shared over 400,000 samples, contradicting government statements.
  • Expansion of MLS could provide Indian farmers access to developed varieties, e.g., South American corn.
  • Data on utilization of MLS accessions for breeding in India remains unclear.
• Potential Impact:
  • Improved access to high-quality foreign genetic material for breeding and hybrids.
  • Could enhance farmer productivity and incomes, contributing to food security.

3. 37,000-Year-Old Thorny Bamboo Fossil – Manipur

Source: TOI

Context

A team of scientists from the Birbal Sahni Institute of Palaeosciences (BSIP) has discovered a 37,000-year-old fossilized bamboo stem in the Imphal Valley of Manipur. This rare fossil provides the earliest evidence of thorny bamboo in Asia and offers important insights into Ice Age climate conditions and plant evolution.

Discovery:

• Found in silt-rich deposits of the Chirang River, Manipur.
• Conducted by Botanical Survey of India – BSIP (under DST).
• Species Identified: Chimonobambusa manipurensis
• Fossil retains thorn scars, nodes, and buds, features rarely preserved due to bamboo’s hollow, fragile structure.

Significance of the Discovery

• Earliest Evidence of Thorniness in Asian Bamboo:
  • Shows that herbivore-defense traits in bamboo evolved before or during the Ice Age.
• Palaeobotanical Milestone:
  • Exceptional preservation of delicate structures aids reconstruction of ancient ecosystems.
• Palaeoclimate Insights:
  • Confirms Northeast India as a climatic refugium, while harsh Ice Age conditions wiped bamboo out in regions like Europe.
• Evolutionary and Biodiversity Implications:
  • Provides rare insights into plant evolution, resilience, and biodiversity in the Indo-Burma biodiversity hotspot.
• Modern Linkage:
  • Fossil traits are similar to modern thorny bamboos like Bambusa bambos.

Facts To Remember

1. Kerala’s Population to Grow Till 2041, Then Decline: New IIMAD–PFI Demographic Report

A new national-level report by the International Institute of Migration and Development (IIMAD) and the Population Foundation of India (PFI) projects Kerala’s demographic trajectory up to 2051. The State will continue ageing rapidly, eventually becoming India’s oldest State, with population growth peaking around 2041 before entering a slow decline.

2. India launches ‘Operation Sagar Bandhu’ to provide relief supplies to Sri Lanka

India on Friday delivered essential relief supplies to cyclone-battered Sri Lanka with Prime Minister Narendra Modi conveying to the island nation that New Delhi stands ready provide more aid to it to deal with the situation.

3. Portugal wins its maiden FIFA u-17 World Cup title

Portugal won the FIFA u-17 World Cup title on Thursday, beating Austria 1-0 in the final. Anisio Cabral scored into an empty net in the 32nd minute. It was Portugal’s first u-17 title.

4. PM Modi’s Visit to Goa and Udupi – Highlights

Unveiled a 77-feet bronze statue of Lord Rama at Shree Samsthan Gokarn Partagali Jeevottam Math.

Udupi:

• Paid homage to Jagadguru Madhvacharya, highlighting Udupi’s spiritual and cultural heritage.
• Emphasized Madhvacharya’s contribution to India’s cultural unity.

Madhvacharya:

• Era: 13th century CE
• Philosophy: Founder of Dvaita (dualism) Vedanta
• Significance: Major Vaishnava acharya; traditionally considered an incarnation of Vayu, the Wind God

5. Blind Women’s T20 World Cup 2025

Indian Women’s Blind Cricket Team won the first-ever Blind Women’s T20 World Cup, defeating Nepal by 7 wickets in the final.

• Hosts & Venues: Co-hosted by India and Sri Lanka
  • India: Delhi, Bengaluru
  • Sri Lanka: Colombo (Final at P. Sara Oval Stadium)
• Champion: India (Unbeaten campaign)
• Final Match Player of the Final: Phula Saren
• Captain of India: Deepika TC (Deepika Gaonkar)

6. Jakarta becomes the world’s largest city – UN urbanisation report

According to the latest United Nations World Urbanisation Prospects 2025 report, Jakarta has overtaken Tokyo to become the world’s largest city by population.

key findings:

• Jakarta (Indonesia) now has an estimated population of around 42 million people.
• Dhaka (Bangladesh) is the second-largest city, with nearly 37 million residents.
• Tokyo (Japan), which held the top position for decades, now ranks third with about 33 million people.
• The shift reflects rapid demographic growth in Asian megacities, especially in South and Southeast Asia.

7. Operation Sagar Bandhu

Rapid Humanitarian Assistance and Disaster Relief (HADR) mission by India to support Sri Lanka after Cyclone Ditwah, which caused severe floods and over 80 deaths. Reflects India’s Neighbourhood First and Vision MAHASAGAR maritime cooperation frameworks.

8. India Records 8.2% Q2 GDP Growth

India’s GDP grew 8.2% in Q2 (July–September) of FY26, marking the highest growth in six quarters, driven by strong manufacturing and services sector performance.

9. India’s First Private Orbital Rocket Vikram-1 Unveiled by Skyroot Aerospace

Hyderabad-based space startup Skyroot Aerospace unveiled Vikram-1, India’s first private commercial orbital rocket, capable of launching satellites into Low Earth Orbit (LEO). The Infinity campus, Skyroot’s new 2 lakh sq ft facility, was virtually inaugurated by PM Narendra Modi.

10. India secures third rank in Asia Power Index 2025

India has secured third ranking in the Asia Power Index 2025, while the U.S. and China occupy the first and second spots.

11. Rohit Sharma named Men's T20 World Cup tournament

Rohit Sharma named Men's T20 World Cup tournament ambassador.

12. Minister Dr. Jitendra Singh Unveils Hansa-3 (NG) Trainer Aircraft in Bengaluru

Union Minister for Science and Technology Dr. Jitendra Singh inagurated SARAS MK II Iron Bird Test facility, HAP Airframe Fabrication facility, NaviMet and unveiled Hansa-3 (NG) production standard aircraft at CSIR-NAL campus in Bengaluru.

13. India Re-Elected to UNESCO Executive Board for 2025–29 Term

India has been re-elected to the UNESCO Executive Board for the 2025-29 term.

14. India Crushes Canada 14-3 in Dominant Hockey Show at Sultan Azlan Shah Cup

India put on an absolute masterclass, storming to a 14-3 victory over Canada in a relentless display of attacking hockey at Sultan Azlan Shah Stadium in Ipoh, Malaysia.

15. India Ranks 2nd in Global Tea Exports; Govt Rolls Out ₹1,000 Crore Support for Tea Workers: Goyal

Union Commerce and Industry Minister Piyush Goyal said, India is the second largest exporter of tea in the world, with production of approximately 255 million tonnes of tea annually.

16. Cyclone Ditwah moves toward Tamil Nadu Coast at 7–10 kmph

Cyclonic Storm Ditwah has moved towards the Tamil Coast with a speed ranging from 7 to 10 kmph.

17. International Conference on Preserving Rural Buddhist Heritage inaugurated in New Delhi

The Academy for Preservation of Rural Buddhist Heritage today inaugurated an International Conference in New Delhi focused on the preservation of rural Buddhist heritage.

Daily Current Affairs Quiz
30 November, 2025

National Affairs

1. CSIR-NAL Launches Production Version of Hansa-3 Trainer Aircraft

Source: TH

Context

The CSIR-National Aerospace Laboratories (NAL), Bengaluru has unveiled the production version of the Hansa-3(NG) trainer aircraft, a fully indigenous two-seater designed to meet India’s growing demand for pilot training. This initiative strengthens India’s self-reliance in aerospace technology and reduces dependence on foreign trainer aircraft.

Hansa-3(NG)

• Type: Two-seater trainer aircraft
• Airframe: All-composite (lighter and more durable than metal)
• Purpose: Private Pilot Licence (PPL) and Commercial Pilot Licence (CPL) training
• Origin: Developed by CSIR-NAL in the early 1990s; latest iteration features significant upgrades

Related Developments – SARAS Mk-2

• CSIR-NAL is developing SARAS Mk-2, a 19-seater Light Transport Aircraft for civilian and military use.
• Features: Pressurized cabin, digital avionics, glass cockpit, autopilot, command-by-wire flight controls, weight and drag reduction
• Aim: Strengthen regional connectivity and meet short-haul passenger aircraft needs
• Iron Bird Facility: Inaugurated for full-system integration, ground testing, and subsystem validation

2. Brown Butterflies Cause Flutter in Kolkata, Experts Cite Rains

Context

Kolkata has recently witnessed an unusual surge in brown butterflies, sparking curiosity and mild concern among residents. Experts confirm that this rise is a seasonal, climate-driven natural phenomenon, primarily influenced by prolonged monsoon rains and favourable ecological conditions. The species responsible for this sudden appearance is the Common Evening Brown (Melanitis leda).

Source: TOI

Common Evening Brown (Melanitis leda)

• Species: Common Evening Brown (Melanitis leda) — small, leaf-like butterflies with wingspan around 2.5–3 inches.
• Weight: A few milligrams
• Appearance: Brown wings that mimic dry or dead leaves, helping them blend into forest floors and grassy patches.
• Behaviour: Active during dusk and night; often attracted to artificial lighting.
• Extent: Swarming balconies, homes, gardens, pavements and common urban open spaces.

3. Dynamic Ground Water Resources of India, 2025 Report

Source: TOI

Context

The Dynamic Ground Water Resources of India, 2025 report released by the Central Ground Water Board (CGWB) shows a slight improvement in India’s groundwater recharge. However, 25% of assessed units remain stressed, indicating persistent over-extraction and regional vulnerabilities.

Key Findings of the 2025 Report

Marginal Increase in Annual Recharge

• 2024: 446.9 BCM
• 2025: 448.52 BCM
• Still lower than the 2023 level of 449.08 BCM.

Assessment Coverage

• Total units assessed (blocks/mandals/talukas): 6,762.

Stress Categories (2025)

• Over-exploited units: 730 (10.8% of total).
• Combined Semi-critical + Critical + Over-exploited: Over 25% of all units.
• Indicates extraction exceeding recharge in many regions.

Regions Showing Decline in Recharge

Significant drop in groundwater recharge recorded in:

• Andhra Pradesh
• Arunachal Pradesh
• Assam
• Jharkhand
• Kerala
• Punjab
• Jammu & Kashmir

Hotspots of Over-Exploitation

States/UTs with highest concentration of over-exploited and critical units:

• Punjab
• Haryana
• Delhi
• Western Uttar Pradesh
• Rajasthan
• Gujarat
• Karnataka
• Tamil Nadu
• Telangana
• Andhra Pradesh

Causes

• Indiscriminate groundwater withdrawal
• Climatic factors, especially irregular rainfall
• High dependence on groundwater for irrigation

States Showing Improvement in 2025

Significant increase in groundwater recharge seen in:

• Bihar
• Chhattisgarh
• Madhya Pradesh
• Karnataka
• Maharashtra
• Rajasthan
• Tamil Nadu
• Telangana
• Uttar Pradesh

Why Did Recharge Improve?

• Rainfall contributes nearly 60% of India’s total groundwater recharge.
• A better monsoon in 2025 than in 2024 boosted recharge.
• Good rains reduced groundwater pumping for agriculture.
• Central and state initiatives for rainwater harvesting, aquifer recharge, and conservation have shown positive impact in many regions.

Agriculture

1. Scientists Raise Concerns Over ITPGRFA “Compromise Proposal”

Source: TH

Context

A coalition of scientists, Scientists for Genetic Diversity, has voiced strong opposition to a “compromise proposal” discussed during the 11th session (GB11) of the International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA) in Lima, Peru. The proposal aims to enhance the Multilateral System (MLS), which governs global sharing of plant genetic resources.

Key Highlights:

• Event: 11th Session (GB11) of ITPGRFA
• Location: Lima, Peru
• Stakeholders Concerned: Scientists for Genetic Diversity
• Focus: “Compromise proposal” to strengthen Multilateral System (MLS)

Multilateral System (MLS)

• Purpose: Facilitates access and benefit-sharing of plant genetic resources for food and agriculture globally
• Scope: Covers agronomic crops and forages listed in the treaty
• Key Objective: Promote food security, sustainable agriculture, and equitable sharing of benefits

Scientists’ Concerns

• The “compromise proposal” may undermine genetic diversity protections
• Risks limiting access or imposing restrictive conditions on plant genetic resources
• Potentially affects research, breeding programs, and global food security initiatives
• Calls for greater transparency and inclusive decision-making in treaty negotiations

Facts To Remember

1. Crisil raises GDP growth forecast to 7% in FY26

Crisil has raised its forecast for the country's GDP growth to 7% from 6.5% for the current financial year, following the first-half growth of 8% that exceeded expectations.

2. Arunachal Pradesh’s Traditional ‘Dao’ Blade and Yak Churpi Receive GI Tag

Arunachal Pradesh secured two new Geographical Indication (GI) tags in November 2025 for its traditional blade ‘Dao’ and the high-altitude dairy product Yak Churpi. The recognition by the GI Registry (DPIIT, Ministry of Commerce & Industry) highlights the rich craftsmanship, indigenous food heritage and cultural identity of tribal communities in the state.

Daily Current Affairs Quiz
1 December, 2025

National Affairs

1. NITI Aayog's Fiscal Health Index (FHI), 2025

Purpose of the Report

The Fiscal Health Index (FHI) evaluates the fiscal performance of 18 major Indian states.
It focuses on key indicators such as contribution to GDP, public expenditure, revenues and fiscal stability to assess statelevel fiscal health.

Top Performing States Achievers

• States
  • Odisha, Chhattisgarh, Goa and Jharkhand.
• Success Factors
  • Strong capital investment up to 4% of Gross State Domestic Product or GSDP.
  • Successful mobilization of non-tax revenue.
  • Revenue surplus with low interest payment up to 7% of revenue receipts.
  • Highest overall index score 678 for Odisha with a lead in debt index 990 and in debt sustainability at 640.

Front Runners

• States
  • Maharashtra, Uttar Pradesh ,Telangana, Madhya Pradesh and Karnataka.
• Strengths
  • Developmental expenditure very high up to 73 percent.
  • Own tax revenues growth has been consistent.
  • Improved fiscal management and the debt to GSDP ratio 24 per cent.

Moderate Performers

• States
  • Tamil Nadu, Bihar, Rajasthan and Haryana.
  • These States have performed moderately but have areas of improvement in the parameter of debt and also on expenditure management.

Aspirational States

• States
  • Punjab, Andhra Pradesh, West Bengal and Kerala.
• Challenges
  • Low revenue mobilization and the fiscal deficits are high.
  • Increasing debt burdens and bad debt sustainability.
• Quality of Expenditure and Debt management
  • Quality of expenditure and debt management is a concern for the States of Kerala and Punjab. West Bengal has problems with revenue mobilization and debt index issues.
  • Andhra Pradesh is plagued with a very high fiscal deficit.
  • The debt profile of Haryana is bad.

Fiscal Health Index (FHI) 2025 – Methodology & Key Indicators

Data Sources & Scope

• Source: Comptroller and Auditor General (CAG)
• Period Covered:
  • 2022-23 (for index calculation and analysis)
  • 2014-15 to 2021-22 (historical trends provided in the report appendix)

Five Major Sub-Indices & Their Minor Sub-Indices

Detailed Explanation of Key Indicators

1. Quality of Expenditure

• Developmental Expenditure: Spending on long-term economic growth & infrastructure (schools, hospitals, roads, etc.)
• Non-Developmental Expenditure: Routine government expenses like salaries and operational costs
• Key Ratios:
  • Developmental Expenditure/Total Expenditure → Shows government’s spending priorities
  • Capital Outlay/GSDP → Measures investment in infrastructure & long-term assets

2. Revenue Mobilisation

• State Own Revenue: Income from state taxes & non-tax revenue sources
• Key Ratios:
  • State Own Revenue/GSDP → Reflects state’s financial self-sufficiency
  • State Own Revenue/Total Expenditure → Measures the extent to which a state funds its own expenses

3. Fiscal Prudence

• Gross Fiscal Deficit: Gap between total expenditure & total revenue, indicating borrowing needs
• Revenue Deficit: When government income is insufficient to cover operational costs
• Key Ratios:
  • Gross Fiscal Deficit/GSDP → High ratio signals unsustainable borrowing
  • Revenue Deficit/GSDP → High ratio shows reliance on borrowing to fund basic expenses

4. Debt Index

• Key Ratios:
  • Interest Payments/Revenue Receipts → High ratio means more revenue is spent on debt servicing, reducing funds for development
  • Outstanding Liabilities/GSDP → Measures overall debt burden relative to state’s economy

5. Debt Sustainability

• Key Indicator:
  • Growth Rate of GSDP – Growth Rate of Interest Payments → Positive gap shows healthy economic management; negative gap signals financial distress

Key Takeaways

• Higher rankings in FHI indicate strong fiscal health, sustainable debt, and efficient resource allocation.
• Lower rankings highlight high deficits, excessive borrowing, and poor revenue generation.
• Interstate disparities in expenditure quality, debt management, and revenue mobilisation underline the need for targeted fiscal reforms.

Fiscal_Health_Index_24012025_Final

Download

Importance of the Report

• For better understandings of state level fiscal policy and practice.
• Proves necessity in revamping revenue mobilization and debt management issues in states.
• It encourages achievers and frontrunners to continue and build upon fiscal discipline and developmental spending.

This report provides a guide for states to enhance the stability of their finances and efficiently use their resources to achieve sustainable economic growth.

2. World Social Protection Report (WSPR) 2024-26: ILO

Source: PIB

Context

According to the International Labour Organization’s (ILO) World Social Protection Report 2024–26, India’s social protection coverage has increased from 24.4% in 2021 to 48.8% in 2024, marking a significant expansion in welfare reach. The report credits key government initiatives for extending benefits such as health insurance, pensions, employment support, and food security to millions of citizens.

As per the Ministry of Labour and Employment, nearly 920 million people (65% of the population) are now covered by at least one form of social protection through central government schemes. India’s progress has also contributed to a 5-percentage point rise in global social protection coverage, highlighting its international significance.

Overview of the ILO Report

• The World Social Protection Report is published periodically by the ILO, a UN agency focused on labour rights and social justice.
• The 2024–26 edition emphasizes universal social protection for climate action and a just transition.
• For the first time, it incorporates trend data and offers regional companion reports, including Asia-Pacific, detailing unique socio-economic and environmental conditions.

Key Government Initiatives Expanding Social Security

1. Ayushman Bharat (AB-PMJAY)

• As of March 26, 2025: 39.94 crore Ayushman Cards issued.
• Offers health coverage up to ₹5 lakh per family.
• Accessible at 24,810 empanelled hospitals nationwide.

2. Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

• Provides free food grains to vulnerable populations.
• As of December 2024: 80.67 crore beneficiaries, close to the intended 81.35 crore.

3. eShram Portal

• Launched August 26, 2021 to create National Database of Unorganised Workers (NDUW).
• Offers Universal Account Number (UAN) for social security access.
• As of March 3, 2025: 30.68 crore unorganised workers registered, 53.68% women.

4. Atal Pension Yojana (APY)

• Launched May 9, 2015, targeting unorganised sector workers.
• Along with PMJJBY and PMSBY, strengthens social security.
• As of December 31, 2024: 7.25 crore enrolled with total corpus ₹43,369.98 crore.

5. Poverty Reduction Impact

• Over the past decade, 24.8 crore people have escaped multi-dimensional poverty due to social security measures.

Social Protection Data Pooling Exercise

• Launched March 19, 2025 by the Ministry of Labour & Employment.
• Aims to consolidate data across major central schemes to provide a holistic assessment of welfare coverage.
• Phase 1: Ten states targeted, including Uttar Pradesh, Rajasthan, Maharashtra, Madhya Pradesh, Tamil Nadu, Odisha, Andhra Pradesh, Telangana, Karnataka, Gujarat.
• Over 200 crore records processed using encrypted Aadhaar IDs across schemes like MGNREGA, EPFO, ESIC, APY, PM POSHAN.
• Collaboration with ILO ensures that housing, food security, and other in-kind benefits are incorporated in future evaluations.

Quick Takeaways

3. Asia Power Index 2025

Source: News on Air

Context

In the 2025 Asia Power Index (API) published by the Australia-based Lowy Institute, India has been elevated from a “middle power” to a “major power”, ranking 3rd overall behind the United States and China. This milestone reflects India’s growing economic strength, military capability, and regional influence.

Key Highlights:

• Ranking & Major Power Status: India crosses the API-defined threshold for “major power” in 2025.
• Power Growth: Both India and China have improved across multiple metrics, but a significant gap remains between them.
• Scope of Assessment: The 7th edition of API evaluates 27 Asian countries/territories across 131 indicators in 8 thematic measures:
  1. Military Capability & Defence Networks
  2. Economic Capability & Relationships
  3. Diplomatic Influence
  4. Cultural Influence
  5. Resilience
  6. Future Resources
     7–8. Other indicators assessing technology, governance, and soft power contributions

Strategic Implications

• India’s rise to a major power reflects growing economic clout, military strength, and diplomatic influence.
• The ranking enhances India’s geopolitical leverage in the Indo-Pacific region.
• Despite improvements, India still faces the challenge of converting capability into sustained influence at regional and global levels.

Banking and Finance

1. Crisil & AMFI Develop Market-Making Framework for AA–BBB Corporate Bonds

Source: FE

Context

India’s corporate bond market is heavily skewed toward AAA-rated securities, leaving AA–BBB segments illiquid and unattractive despite their higher yields. To address this structural gap, Crisil and the Association of Mutual Funds in India (AMFI) are preparing a detailed proposal for a market-making framework for sub-AAA corporate bonds. The initiative aligns with consultations launched by the Department of Economic Affairs (DEA) under the Ministry of Finance.

Why a Market-Making Framework Is Needed

• About 66–67% of bond market trading is in AAA-rated securities.
• Nearly 33–34% involves AA-rated papers.
• BBB and other lower-rated segments see negligible trading, leading to low liquidity and high exit risk.
• MSMEs, mid-tier companies, NBFCs, HFCs, and startups—most of which do not enjoy AAA ratings—struggle to raise debt capital.
• A liquid market for AA–BBB bonds can unlock funding, reduce borrowing costs, and improve credit transmission.

DEA’s Proposed Models

The Department of Economic Affairs is reviewing two possible market-making structures:

1. Government-Backed Market Maker

• A government-sponsored entity will provide continuous two-way quotes (buy & sell).
• Ensures stability and market confidence.
• Useful for kick-starting liquidity in the AA–BBB space.

2. Private Entities as Market Makers

• Large institutions with high capital and net worth may act as market makers.
• Could be supported by a government backstop facility to mitigate risk.
• Encourages private sector innovation and competitive spreads.

What the Framework Will Cover

• Spread management for lower-rated papers
• Inventory handling rules for market makers
• Transparency and reporting norms
• Risk-mitigation safeguards to avoid concentration of exposure
• Mechanisms for price discovery in illiquid segments

Why This Matters?

According to industry participants:

For Investors

• Offers greater liquidity and better exit options.
• Encourages participation in higher-yielding sub-AAA bonds.
• Standardisation ensures better rate transmission and transparency.

For Issuers

• Expands access to debt financing, especially for:
  • MSMEs
  • NBFCs
  • Housing finance companies
  • Startups
• Reduces overdependence on AAA-dominated markets.
• Supports economic resilience by giving mid-tier companies new funding pathways.

Agriculture

1. Puducherry Launches NABARD-Supported Smart Farmer ID Cards

Source: PIB

Context

On 27 November 2025, the Puducherry Agriculture and Farmers’ Welfare Minister, Thiru K. Djeacoumar, launched Smart Farmer Identification Cards (SFIC) at the State Level Bankers’ Committee (SLBC) meeting. Supported by NABARD under its Farm Sector Promotion Fund, the initiative aims to digitize farmers’ records, streamline access to government schemes, and enhance transparency in agricultural financing.

Key Highlights:

• Launched By: Thiru K. Djeacoumar, Agriculture & Farmers’ Welfare Minister
• Supporting Agency: NABARD (Grant: ₹9.50 lakh)
• Program: AgriStack — part of India’s digital agriculture framework
• Attendance: Finance Secretary, Agriculture Secretary, NABARD GM, RBI GM, Indian Bank ED, senior officials, and farmers

About Smart Farmer ID Cards (SFIC)

• Format: QR code-enabled, replacing traditional booklet-style ID cards
• Purpose: Provides single digital identity for farmers
• Key Benefits:
  • Availing crop loans, subsidies, and government schemes
  • Authorized as valid alternative to traditional land documents
  • Real-time verification and paperless transactions
  • Prevents duplication and enhances transparency
  • Enables future services like digital Kisan Credit Cards (KCC), crop insurance, and online benefit delivery

Significance

• Digital Agriculture: Supports India’s move towards paperless, transparent, and secure agricultural financing
• Farmer Empowerment: Simplifies access to loans, subsidies, and schemes
• Financial Inclusion: Reduces delays, ensures real-time verification, and prevents fraud
• Replication Potential: Serves as a model for other states

2. Saras Food Festival 2025

Source: News on Air

Context

Union Minister for Rural Development and Panchayati Raj, Shivraj Singh Chouhan, will inaugurate the Saras Food Festival 2025 in Delhi. The festival showcases India’s diverse rural cuisine, women-led enterprises, and traditional food culture under the DAY-NRLM (Deendayal Antyodaya Yojana – National Rural Livelihoods Mission).

Key Objectives

• Promote rural entrepreneurship and women-led SHGs.
• Provide urban consumers access to authentic regional cuisines.
• Enable market linkages for SHG food businesses.
• Boost the visibility of traditional Indian foods and local ingredients.

Key Highlights:

• The Saras Food Festival brings together Self-Help Groups (SHGs) from various states to present regional dishes.
• Organised by the Ministry of Rural Development under DAY-NRLM.
• Venue: Delhi (specific location to be announced or covered in the event schedule).
• Participants: Women SHGs representing multiple states and UTs.
• Focus: Traditional recipes, local ingredients, millet-based dishes, tribal foods, and state-specific culinary varieties.
• The festival is expected to attract strong footfall from Delhi NCR, supporting rural livelihoods.

Facts To Remember

1. Indira Gandhi International Airport becomes first in India to achieve “water-positive” status

Indira Gandhi International Airport (IGIA) has become the first airport to achieve water positive status in the country with a capacity of more than 40 million passengers per annum.

2. India–ADB Sign Over $800 Million in Loans for Key Infrastructure & Skills Projects

The Government of India and the Asian Development Bank (ADB) signed three major loan agreements worth over $800 million, along with a $1 million Technical Assistance grant, to support infrastructure, renewable energy, metro rail development, and skills enhancement across Maharashtra, Madhya Pradesh, Gujarat, and Assam.

3. Government Sanctions ₹17 Crore Under PM Janjatiya Unnat Gram Abhiyan for Tribal Homestays and Development

Over 17 crore rupees have been approved under Pradhan Mantri Janjatiya Unnat Gram Abhiyan to provide funding support for development and renovation of Tribal Homestays and village community requirements.

4. 14th edition of India-Maldives bilateral exercise EKUVERIN to take place tomorrow in Kerala

The 14th edition of the annual India-Maldives bilateral exercise EKUVERIN is set to take place from tomorrow till the 15th of this month in Thiruvananthapuram, Kerala.

5. World AIDS Day

Health and Family Welfare Minister Jagat Prakash Nadda highlighted the need for greater understanding of HIV and AIDS on the occasion of World AIDS Day today.

6. India finishes strong at World Skills Asia Competition 2025, Secures 8th Rank in first-ever participation

India marked a significant milestone on the global skills stage by securing 8th rank in its first-ever participation at the World Skills Asia Competition 2025, competing against 29 nations.

7. Union Minister Piyush Goyal Inaugurates MP Krida Mahotsav for Divyang Children in Mumbai

Union Commerce and Industry Minister Piyush Goyal today inaugurated the MP Krida Mahotsav for divyang children at Borivali in North Mumbai.

Daily Current Affairs Quiz
2 December, 2025

National Affairs

1. Fourth Edition of Kashi-Tamil Sangamam Begins in Varanasi

Source: News on Air

Context

The fourth edition of Kashi-Tamil Sangamam commenced today in Varanasi, Uttar Pradesh, with Union Education Minister Dharmendra Pradhan and Chief Minister Yogi Adityanath jointly inaugurating the event. The grand opening ceremony is scheduled at Namo Ghat this evening.

Theme and Objective:

• The edition’s theme: “Let Us Learn Tamil – Tamil Karkalam”
• Focuses on Tamil language learning, emphasizing the shared Bharatiya Bhasha heritage across India
• Aims to strengthen cultural and linguistic ties between North and South India

2. Hornbill Festival 2025

Context

The 26th edition of the Hornbill Festival began on Monday in Nagaland, amid renewed friction between the state and the Centre over the Protected Area Regime (PAP). Organised by the state tourism department with a budget of ₹7 crore, this is the first festival since the re-imposition of the PAP last December.

Background:

• The PAP was reinstated in Nagaland, Manipur, and Mizoram following volatility in Manipur and neighbouring Myanmar.
• The regime requires foreign nationals to obtain a special permit from the Ministry of Home Affairs to enter protected areas.
• Nagaland had previously enjoyed relaxed restrictions since 2011 to promote tourism.

Cultural Importance

• The festival is Nagaland’s flagship cultural event, showcasing traditional music, dance, handicrafts, and local cuisine.
• Acts as a tourism booster, attracting both domestic and foreign tourists.

3. Government Pushes for Food Safety with Labs and Irradiation Units

Source: News on Air

Context

The Government of India is taking proactive measures to enhance food safety and quality across the country by promoting the establishment of food testing laboratories and irradiation units.

Food Testing Laboratories

• The Ministry of Food Processing Industries (MoFPI) is inviting proposals for setting up 100 NABL-accredited food testing laboratories.
• A financial outlay of ₹500 crore has been earmarked to support industry stakeholders in establishing these labs.
• Interested applicants can submit proposals via the Kisaan Sampada Portal until 20th January 2026.
• Objective: Ensure accurate testing and monitoring of food quality to maintain safety standards.

Food Irradiation Units

• The government has launched a scheme to set up 50 food irradiation units across India.
• Purpose:
  • Eliminate harmful bacteria and insects in food
  • Maintain the physical and nutritional integrity of food
  • Aid longer preservation of organically produced commodities
• So far, 14 irradiation units have been approved.
• Assurance: The technique is safe and does not make food radioactive.

Key Benefits

• Strengthens food hygiene and safety standards nationwide
• Supports the agri-food sector and organic food industry
• Promotes consumer confidence in processed and fresh food products

4. Central Excise Amendment Bill 2025

Context

The Union government has introduced the Central Excise (Amendment) Bill, 2025, alongside a companion cess bill, to overhaul the taxation of tobacco, pan masala, gutkha, and other “sin goods.” This legislative step comes as the GST compensation cess regime, introduced post-GST to compensate states for revenue losses, nears its end.

Key Proposals

• Tobacco Products: Cigarettes, cigars, chewing tobacco, and hookah will now attract central excise duty instead of the compensation cess.
• Pan Masala & Gutkha: A new Health Security and National Security Cess will replace the existing cess framework.
• The government intends to maintain high tax incidence, ensuring revenue continuity and discouraging harmful consumption.

Tax Structure Highlights

• Cigarettes and related products may face duties ranging from ₹5,000–₹11,000 per 1,000 sticks based on specifications.
• Other tobacco products could see 60–70% duty, with nicotine and inhalation products taxed up to 100%.

5. Heron Mk II UAVs

Source: TH

Context

India is expanding its unmanned aerial surveillance and reconnaissance capabilities in the backdrop of Operation Sindoor. The armed forces have initiated emergency procurement of Heron Mk II UAVs, a move aligned with strengthening high-altitude and maritime situational awareness.

Heron Mk II UAV

• The Heron Mk II is a satellite-linked MALE UAV (Medium Altitude Long Endurance).
• Known for:
  • Long endurance missions
  • High-altitude performance
  • Real-time intelligence, surveillance and reconnaissance (ISR)
  • All-weather operational capability

6. Sanchar Saathi App

Source: TH

Context

The Department of Telecommunications (DoT) has mandated that all new smartphones sold in India from March 2026 must come with the Sanchar Saathi app pre-installed, with functionalities fully enabled. The directive aims to prevent the circulation of non-genuine and stolen handsets and strengthen telecom security.

About the Sanchar Saathi App

Sanchar Saathi is a government-developed mobile application aimed at telecom security and consumer protection. It helps:

• IMEI verification: Helps detect spoofed or tampered IMEIs, which can operate in multiple devices simultaneously.
• SIM and device management:
  • Identify SIMs registered in a user’s name.
  • Remotely disable stolen phones.
• Fraud reporting: Similar to TRAI’s DND app, allows reporting of scam calls.
• Security impact: Assists in tackling cross-border digital frauds and SIM-related scams.

Banking and Finance

1. SEBI to Revamp Master Circular for Stock Exchanges

Source: Mint

Context

The Securities and Exchange Board of India (Sebi) is set to revise the master circular for stock exchanges in the coming months. The move aims to simplify regulations, improve clarity, and enhance the ease of doing business in India’s capital markets.

Objective Simplify regulations, improve clarity, and enhance ease of doing business

Key Features of Proposed Revamp

• Consolidation & Simplification
  • Merge separate master circulars for equity and commodity-derivatives exchanges into a single unified circular
  • Issue a distinct master circular for clearing corporations
  • Rationalize circulars chapter by chapter
• Removal of Outdated Provisions
  • Exchange-code requirements
  • Other obsolete norms to reduce compliance burden
• Investor Protection & Claims
  • Introduce a three-year lookback period for claims against defaulting brokers
  • Merge separate Investor Protection Funds for equity and commodity derivatives segments into a single fund per exchange
• Stakeholder Consultation
  • Public feedback on the consultation paper concluded on 29 October 2025
  • SEBI plans wide consultation for balanced outcomes

Broader Regulatory Agenda

• Part of SEBI’s push for “optimum regulation” – leaner but effective rules that safeguard investors while easing compliance
• Recent regulatory reviews include:
  • Mutual fund regulations
  • Stockbroker norms
  • Listing Obligations and Disclosure Requirements (LODR) framework
  • Settlement rules

2. Banking Correspondent (BC) Sakhis

Source: Mint

Overview

• BC Sakhis are women banking correspondents linked to Self-Help Groups (SHGs) under the Deendayal Antyodaya Yojana–NRLM.
• They bring banking services to rural India, enabling doorstep access to accounts, loans, pensions, digital payments, and government schemes.
• Example: Sarika Arjun Chauhan from Madhya Pradesh handles ₹1.5–2 crore monthly, completing 62,000+ transactions worth ₹65 crore.

The Need

• Credit gap: Rural areas receive only 7.7% of bank credit, while urban metros get 60.6%.
• Access barrier: Women face travel and wage loss challenges, which BC Sakhis mitigate.
• Ambition: One BC agent in each of 150,000 Gram Panchayats to ensure comprehensive rural coverage.

Selection & Training

• Eligibility: Aadhaar enrolment, clean financial history, smartphone literacy.
• Training: Six-day residential programme, certification by Indian Institute of Banking and Finance.
• Success: 96.5% of trainees pass, becoming certified BC Sakhis.

Services Offered

• Account opening, cash handling, digital payments
• Loans, pensions (PMJJBY, PMSBY, Atal Pension Yojana)
• Aadhaar seeding, financial literacy guidance
• Over 375 million transactions worth ₹1.42 trillion conducted
• Vital during crises: disbursed ₹6,000 crore during COVID lockdown

Community Impact

• Promotes financial independence and leadership for rural women
• Boosts savings, financial planning, and trust in digital finance
• Facilitates agricultural credit, business expansion, and entrepreneurship

Benefits for Banks

• Increased customer acquisition and engagement
• Reduced branch footfall
• Expanded utility payment services

Challenges

• Low transactions → lower earnings in poorer regions
• Outdated tech and infrastructure
• Resistance from some banks to deploy women BCs

Recommendations for Strengthening

• Advanced Training: Digital banking, cybersecurity, entrepreneurship, financial literacy.
• Service Expansion: Micro-insurance, loan facilitation, digital payments, government programme support.
• Infrastructure Upgrade: Biometric devices, POS terminals, better internet connectivity.
• Coordination & Engagement: Between BC Sakhis, banks, NRLM staff, and communities.
• Incentive Model: Reward higher transaction volumes and service diversity, with focus on aspirational districts.

3. India’s Current Account Deficit

Source: IE

Context

The Reserve Bank of India (RBI) reported that the country’s current account deficit (CAD) moderated to $12.3 billion, or 1.3% of GDP, in July–September 2025 (Q2 FY26), down from $20.8 billion, or 2.2% of GDP, in the year-ago period.

Current Account Deficit (CAD)

The Current Account Deficit occurs when a country’s total imports of goods, services, and transfers exceed its total exports over a specific period. In simpler terms, it means the country is spending more on foreign trade than it is earning.

Components of the Current Account:

• Trade Balance (Goods & Services): Exports minus imports of goods and services.
• Net Income from Abroad (Primary Income): Earnings on investments, wages, and dividends from foreign sources minus payments to foreign investors.
• Net Transfers (Secondary Income): Remittances sent by citizens working abroad, foreign aid, and other unilateral transfers.

Significance:

• A moderate CAD can indicate healthy investment inflows and growth opportunities.
• A high CAD may signal excessive dependence on foreign capital, risk of currency depreciation, and potential balance of payments stress.

4. National Strategy for Financial Inclusion 2025–30

Source: ET

The Reserve Bank of India (RBI), led by Governor Sanjay Malhotra, released the National Strategy for Financial Inclusion (NSFI) 2025–30. The strategy, approved by the Sub-Committee of the Financial Stability and Development Council, sets out a roadmap to deepen financial inclusion in India over the next five years.

Strategic Objectives (“Panch-Jyoti”)

The framework identifies five key strategic objectives supported by 47 action points:

1. Universal Access to Financial Services
   • Provide an equitable, affordable, and responsible suite of financial products — including savings, credit, insurance, pensions, and payments — for households and micro-enterprises, ensuring financial safety and security.
2. Gender-Sensitive & Resilience-Oriented Inclusion
   • Promote financial inclusion with special focus on women-led households and vulnerable segments, strengthening their resilience against economic shocks.
3. Synergy with Livelihoods and Skills
   • Integrate financial services with livelihood promotion, skill development, and support ecosystems so that financial inclusion drives sustainable economic participation.
4. Financial Education & Responsible Usage
   • Leverage financial literacy programs to encourage informed decision-making, disciplined financial behavior, and responsible credit use, especially for first-time users and micro-entrepreneurs.
5. Customer Protection & Grievance Redressal
   • Strengthen consumer protection mechanisms and ensure efficient grievance redressal, building trust in the formal financial system and minimizing misuse.

Implementation

• The strategy is framed under the Technical Group on Financial Inclusion and Financial Literacy.
• Developed through nationwide consultations with stakeholders, including government agencies, financial institutions, and civil society.

Significance

• Aims to bridge financial gaps for the underserved, especially women and vulnerable households.
• Supports inclusive growth, enabling households and micro-enterprises to gain access to formal financial services and protections.

5. Sebi Management Pushes Back Against Public Disclosure of Assets

Source: ET

Context

The senior management of the Securities and Exchange Board of India (Sebi) has expressed opposition to a proposed rule requiring top officials to publicly declare their assets and liabilities, citing privacy concerns and potential speculation.

Key Details:

• A panel led by former Chief Vigilance Commissioner Pratyush Sinha had recommended that officials at the rank of Chief General Manager (CGM) and above publicly disclose their financial details to strengthen transparency and accountability.
• Sebi officers, both individually and through the employees’ association, have raised concerns about:
  • Loss of privacy
  • Unnecessary public scrutiny
  • Potential pressure from relatives seeking financial assistance
• Officers are reportedly comfortable sharing information internally but oppose making it public.

Current Disclosure Norms:

• Executive board members must internally disclose conflicts of interest, which are kept confidential.
• Non-executive Sebi board members from the Finance Ministry, Corporate Affairs Ministry, and RBI are exempt if their parent organisations already require disclosures.

Global Context:

• In the UK, the Financial Conduct Authority keeps board members’ disclosures confidential but publicly shares broad details such as financial interests, directorships, and holdings in regulated entities.

Facts To Remember

1. Italian tennis icon Pietrangeli passes away at the age of 92

Nicola Pietrangeli, a two-time winner of the French Open, died aged 92, Italy’s tennis federation announced.

2. RBI appoints Usha Janakiraman executive director

The Reserve Bank of India (RBI) said that it has appointed Usha Janakiraman Executive Director (ED) with effect from December 1.

3. PMJAY Expansion for 70+ Age Group Covers 700K Treatments Since Launch

The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (ABPMJAY), India’s flagship health insurance scheme, was expanded in October 2024 to include people aged 70 years and above. As of October 2025, the scheme has authorised over 700,000 treatments worth ₹1,471 crore for this age group, significantly reducing out-of-pocket expenses for elderly beneficiaries.

4. Lok Sabha Passes Manipur GST Bill

On the first day of the Winter Session 2025, the Lok Sabha passed the Manipur Goods and Services Tax (Second Amendment) Bill, 2025, which replaces an Ordinance implementing GST reforms in Manipur. The passage occurred amid disruptions by Opposition members demanding a debate on the Special Intensive Revision (SIR) of electoral rolls.

Daily Current Affairs Quiz
3 & 4 December, 2025

National Affairs

1. Nationally Determined Contributions (NDCs)

Context

India is preparing to submit its next round of Nationally Determined Contributions (NDCs) for the 2035 horizon under the Paris Agreement. Experts emphasise the need for a clear, economy-wide transition plan to meet long-term net-zero goals while sustaining growth.

About NDCs

• Definition: Country-specific climate commitments under the Paris Agreement, updated every five years (Article 4).
• Scope: Emissions reduction, renewable energy deployment, adaptation, climate finance, and technology deployment.

India’s Current NDC Targets

Key Challenges

2. National Commission for Backward Classes (NCBC)

Source: TH

Context

The NCBC recently recommended excluding 35 communities, mostly Muslim, from West Bengal’s Central OBC list, after reviewing inclusions made in 2014.

Constitutional & Legal Basis

• Constitutional Status: Article 338B of the Constitution.
• Established: Originally under NCBC Act, 1993; gained constitutional status through the 102nd Constitutional Amendment Act, 2018 (Articles 338B & 342A).
• Aim: Safeguard rights and welfare of Socially and Educationally Backward Classes (SEBCs).

Composition

• Members: 5 (Chairperson, Vice-Chairperson, 3 Members)
• Appointment: By the President of India via warrant.
• Rank & Pay: Equivalent to Secretary, Government of India.

Functions

• Monitoring & Investigation: Ensure constitutional safeguards for SEBCs are implemented.
• Complaint Inquiry: Examine rights violations or misuse of reservation benefits.
• Socio-Economic Evaluation: Assess backward class welfare programs and advise governments.
• Consultation: Mandatory consultation by Union & State Governments on policy affecting SEBCs.
• Reporting: Submit annual and special reports to the President, tabled in Parliament and State Legislatures.

Powers

• Civil Court Powers:
  • Summon witnesses
  • Examine under oath
  • Demand documents and evidence
• Advisory Role: Recommend inclusion/exclusion of communities in the Central OBC list.
• Final Authority: Parliament enacts changes to the Central OBC list under Article 342A.

3. PM-WANI (Prime Minister’s Wi-Fi Access Network Interface)

Source: PIB

Context

• As of November 2025, over 3.9 lakh Wi-Fi hotspots have been deployed across India under PM-WANI, showing rapid nationwide expansion.
• The government updated Parliament on this progress.

Overview

• What it is: A national public Wi-Fi framework aimed at affordable, widespread broadband access through decentralized Wi-Fi hotspots operated by small entrepreneurs.
• Implementing Ministry: Department of Telecommunications (DoT), Ministry of Communications.
• Launch: Approved by the Union Cabinet on 9 December 2020.
• Aim:
  • Democratize internet access
  • Promote digital inclusion
  • Support the goals of the National Digital Communications Policy (NDCP) 2018)

Key Features

• No License Required:
  • Small businesses and shops can operate Wi-Fi hotspots without a licence, fee, or formal registration.
• Four-Tier Architecture:
  • PDOs (Public Data Office): Provide Wi-Fi access
  • PDOAs (Aggregators): Handle authentication and accounting
  • App Providers: Enable user access
  • Central Registry (C-DoT): Maintains records of all entities

4. WHO Issues First Global Guideline on Infertility

Source: TH

Context

• WHO has released its first-ever global guideline on infertility.
• Objective: Ensure safer, fairer, and affordable fertility care worldwide.
• Relevance: Infertility affects 1 in 6 people globally, yet care remains expensive, inequitable, and fragmented in many countries.

About the Guideline

• Purpose: Standardize the prevention, diagnosis, and treatment of infertility.
• Scope: Integrates infertility care into public health systems and aligns with Universal Health Coverage (UHC) frameworks.
• Focus: Evidence-based, cost-effective, accessible, and equitable fertility care.

Key Features

• Comprehensive Recommendations:
  • 40 recommendations covering:
    • Prevention
    • Early diagnosis
    • Counselling
    • Advanced treatment options
• Integration into Health Systems:
  • Encourages countries to include infertility services in national health strategies.
  • Promotes cost-effective care that reduces financial barriers.
• Fertility Awareness:
  • Programs in schools, primary health centres, and reproductive health facilities.
• Risk Factor Management:
  • Addresses untreated STIs, tobacco use, and poor lifestyle habits.
  • Recommends healthy diet, regular exercise, and tobacco cessation for individuals trying to conceive.
• Clinical Guidance:
  • Evidence-based diagnostic pathways for infertility in men and women.
• Psychosocial Support:
  • Recognizes emotional stress, stigma, and mental health challenges associated with infertility.
• Rights-Based Approach:
  • Promotes gender equality and reproductive rights in infertility care.

5. India Re-elected to IMO Council

Source: News on Air

Context

• India has been re-elected to the International Maritime Organization (IMO) Council, Category B, for the 2026–27 term.
• Votes received: 154 out of 169, the highest in Category B.
• Significance: Marks India’s second consecutive highest vote tally, reinforcing its growing maritime influence.

About the IMO Council

• The executive body of the IMO responsible for supervising its work between Assembly sessions.
• Makes policy decisions on global maritime governance.

Formation & Role

• Constituted under the IMO Convention (1958).
• Elected every two years by the IMO Assembly.
• Category B: 10 nations with the largest interest in international seaborne trade.
  • Members: Australia, Brazil, Canada, France, Germany, India, Netherlands, Spain, Sweden, UAE.

About the International Maritime Organization (IMO)

History

• Established by a UN Convention in 1948, came into force in 1958.
• First session held in 1959.
• Headquarters: London, UK.

Aim

• Ensure safe, secure, efficient, and environmentally responsible shipping.
• Maintain uniform global maritime standards to prevent unfair advantage.

Major Functions

• Formulates and updates global maritime conventions (e.g., SOLAS, MARPOL, STCW).
• Regulates ship design, construction, operation, and disposal.
• Develops rules to prevent marine and air pollution from ships.
• Oversees global norms on seafarer training and certification.
• Promotes sustainable maritime transport aligned with SDG-14 (Life Below Water).

6. WorldSkills Asia Competition (WSAC) 2025

Source: PIB

Context

• India participated in WSAC for the first time in 2025, held in Chinese Taipei.
• Achievement: India secured 8th rank among 29 participating nations.
• Medals won:
  • 1 Silver
  • 2 Bronze
  • 3 Medallions for Excellence

About WorldSkills Asia Competition

• A premier continental skill competition under the WorldSkills movement.
• Promotes excellence in technical and vocational education and training (TVET) across Asia.
• Brings together youth to compete in traditional, digital, and emerging trades.

History

• WorldSkills Asia (WSA) organizes regional contests within Asia.
• First WSAC: 2018, Kuala Lumpur, Malaysia.
• India’s debut: 2025.

India’s Performance

• Overall Rank: 8th among 29 nations.
• Team Composition:
  • 23 competitors in 21 skills
  • Supported by 21 experts
  • Led by Ministry of Skill Development & Entrepreneurship (MSDE) and National Skill Development Corporation (NSDC)
• Medals:
  • Silver: Painting & Decorating – Muskan
  • Bronze: Industrial Design Tech – Komal Panda
  • Bronze: Robot System Integration – Shivam Singh & Dinesh R.
  • 3 Medallions for Excellence awarded to other participants

7. Bioremediation

Context

• India’s growing pollution burden and industrial contamination has increased the need for sustainable cleanup methods.
• Bioremediation is highlighted as an eco-friendly, cost-effective, and scalable solution for soil, water, and waste contamination.

What is Bioremediation?

• Use of living organisms—bacteria, fungi, algae, or plants—to break down, transform, or detoxify pollutants.
• Mechanism: Microbes metabolize contaminants as food, converting them into harmless by-products such as water, CO₂, organic acids, or non-leachable metals.

Types of Bioremediation

1. In-situ Bioremediation (On-site)

• Treats pollutants directly at the contaminated location.
• Techniques:
  • Bioventing: Air and nutrients injected to stimulate microbes in soil.
  • Air Sparging: Oxygenates groundwater to degrade volatile pollutants.
  • Biobarriers/Biowalls: Microbes in trenches degrade contaminants in flowing groundwater.
  • Water Recirculation: Contaminated water is treated and reinjected to enhance biodegradation.

2. Ex-situ Bioremediation (Off-site)

• Contaminated soil or water is removed, treated in reactors, and returned.
• Used when pollution levels are high or on-site conditions cannot be controlled.

8. India Re-Elected to UNESCO Executive Board (2025–29)

Context

• India has been re-elected to the UNESCO Executive Board for the 2025–29 term.
• Re-election reflects global confidence in India’s role in multilateral governance.

UNESCO Executive Board

• One of UNESCO’s three constitutional organs.
• Responsible for supervising programme implementation and providing strategic direction.

Establishment & Headquarters

• UNESCO established: 1945
• Executive Board: Operational since 1946
• Headquarters: Paris, France

Composition & Membership

• Members: 58 Member States
• Term: 4 years
• Election: By UNESCO General Conference via regional electoral groups to ensure equitable representation

9. INS Aridaman – India’s Third Indigenous SSBN

Source: ET

Context

• India is set to commission INS Aridaman, the third indigenously built nuclear-powered ballistic missile submarine (SSBN).
• Navy Chief Admiral Dinesh K. Joshi to oversee the commissioning.
• Part of India’s Arihant-class, under the Strategic Forces Command, to ensure assured second-strike capability under the no-first-use nuclear doctrine.

Construction & Indigenous Content

• Built under the Advanced Technology Vessel (ATV) Project by the Ship Building Centre, Visakhapatnam.
• Integrates over 90% indigenous components, including nuclear reactor and propulsion systems.

Historical Milestones

• INS Arihant: Launched 2009, commissioned 2016 – India became 6th country with operational SSBNs.
• INS Arighat: Commissioned 2024.
• INS Aridaman: Third operational SSBN, enabling minimum rotation fleet for continuous at-sea deterrence.

10. INS Taragiri – Fourth Nilgiri-Class Advanced Stealth Frigate

Source: TH

Context

• Indian Navy received INS Taragiri, the fourth Project 17A Nilgiri-class stealth frigate, delivered by Mazagon Dock Shipbuilders Ltd (MDL), Mumbai.
• Designed as a multi-mission combat platform with enhanced stealth, firepower, automation, and survivability.

Project 17A Ship List

• INS Nilgiri
• INS Himgiri
• INS Udaygiri
• INS Taragiri
• INS Dunagiri (upcoming)

Key Features

• Stealth Design: Reduced radar, acoustic, and infrared signatures.
• Propulsion: Combined Diesel or Gas (CODOG) – diesel engines + gas turbines; controllable pitch propellers (CPP).
• Sensors & Weapons:
  • BrahMos supersonic cruise missiles
  • MF-STAR multifunction radar
  • MRSAM air defence missile complex

Banking and Finance

1. Masala Bond

Source: TH

Context

• The Enforcement Directorate (ED) has issued show-cause notices to:
  • Kerala Chief Minister
  • Former Finance Ministry officials
  • KIIFB (Kerala Infrastructure Investment Fund Board) officials
• Alleged violations pertain to FEMA and RBI regulations related to KIIFB’s 2019 Masala Bond issuance.

What is a Masala Bond?

• Definition: Rupee-denominated bonds issued overseas by Indian entities to raise funds.
• Currency Risk: Borne by the investor, not the Indian issuer.

Introduction & Regulation

• First issued by IFC in 2014 (~₹1,000 crore).
• Officially allowed by RBI in 2015 under the rupee-denominated bond framework.

Objectives

• Enable Indian corporates, NBFCs, and infrastructure trusts to raise global capital in INR.
• Reduce reliance on External Commercial Borrowings (ECBs).
• Shift forex/currency risk to investors.
• Promote internationalisation of the Indian rupee and deepen offshore rupee markets.

Key Features

• Rupee-denominated: Priced and redeemed in INR, but subscribed overseas.
• Investor bears currency risk: Unlike ECBs, where the borrower assumes forex risk.
• Eligible Issuers: Indian corporates, NBFCs, REITs, InvITs.
• Global Listing: Can be listed on exchanges like London and Singapore.
• Usage Restrictions: Cannot fund:
  • Capital market investments
  • Real estate (except affordable housing)
  • Land purchase
  • FDI-prohibited sectors
• Maturity: Initially 5 years, later reduced to 3 years.
• Tax Incentives:
  • 5% withholding tax on interest
  • Capital gains from rupee appreciation exempt

2. Big Banks or More Agile Banks?

Source: BS

Context

India’s banking sector is witnessing a major shift driven by digital innovation, competition from fintechs, evolving customer needs, and heightened regulatory expectations. This has sparked an important policy and market question: Are large banks better suited for future challenges, or are smaller, more agile banks the real drivers of innovation?

Big Banks: Strengths and Limitations

Big Banks in India include institutions such as SBI, HDFC Bank, ICICI Bank, and Bank of Baroda, known for their nationwide presence and large balance sheets.

Strengths

• High Capital Strength & Systemic Stability: Ability to absorb shocks due to diversified loan books and strong capital buffers.
• Trust & Brand Equity: Long-standing customer relationships and high public confidence.
• Comprehensive Product Suite: Retail, corporate, international banking, treasury, insurance, and wealth management.
• Risk Diversification: Exposure across geographies and sectors minimises concentration risk.

Limitations

• Slower Decision-Making due to layers of hierarchy.
• Legacy Technology Systems that make modernization expensive and time-consuming.
• High Operating Costs due to branches, staff, and compliance requirements.
• Limited Flexibility to adopt niche, experimental business models.

More Agile Banks: Strengths and Limitations

Agile banks include small finance banks (SFBs), payments banks, digital-first banks, and tech-driven NBFCs/neo-banks.

Strengths

• Rapid Innovation with digital-native operations, AI-based underwriting, and customer-centric products.
• Lower Operational Costs due to limited branch presence and automated systems.
• Niche Focus on underserved segments like MSMEs, gig workers, rural markets, and young consumers.
• Faster Credit Delivery using alternative data and real-time analytics.

Limitations

• Smaller Capital Buffers, making them vulnerable to credit shocks.
• Limited Product Range compared to universal banks.
• Lower Trust Levels, especially during financial stress episodes.
• Compliance Burden, as smaller institutions have less capacity for regulatory complexity.

RBI Norms for Bank Mergers in India

The Reserve Bank of India (RBI) plays a central role in approving, regulating, and supervising all bank mergers. RBI ensures that mergers strengthen systemic stability, protect depositors, and maintain financial discipline.

Key RBI Norms & Requirements for Bank Mergers

• Prior Approval Under the Banking Regulation Act
  • RBI approval is mandatory under Sections 44A, 45, and related provisions of the Banking Regulation Act, 1949.
  • Both boards must approve the proposal before seeking RBI’s consent.
• Fit-and-Proper Criteria for Management
  • Post-merger boards and senior management must meet RBI’s “fit and proper” standards concerning integrity, experience, and financial soundness.
• Financial Health Assessment
  RBI evaluates:
  • Capital adequacy (CRAR),
  • Asset quality (NPA ratios),
  • Liquidity profile,
  • Exposure concentration,
  • Governance track record, and
  • Compliance history.
• Customer & Branch Integration Guidelines
  • The merged entity must ensure seamless transition of:
    • Accounts
    • IFSC codes
    • Loan servicing
    • Digital platforms
  • No disruption to essential banking services is permitted.
• Compliance With Prudential Norms
  • The merged bank must meet regulatory requirements on:
    • Capital adequacy
    • Priority sector lending
    • Statutory Liquidity Ratio (SLR)
    • Cash Reserve Ratio (CRR)
    • Exposure norms
    • Corporate governance standards
• Special Cases: RBI-Directed Mergers
  • Under Section 45 of the BR Act, RBI may force mergers to protect depositors (e.g., Global Trust Bank with Oriental Bank of Commerce, 2004).
  • In such cases, the acquiring bank gets regulatory flexibility for a transition period.

3. RBI’s Annual Report of the Ombudsman Scheme 2024-25

Source: Mint

Context

The Reserve Bank of India’s (RBI) 2024-25 Integrated Ombudsman Scheme (IOS) report highlights a steep rise in customer grievances—driven largely by private banks’ aggressive retail expansion. The data signals systemic weaknesses in grievance redressal, customer onboarding, and credit discipline within the rapidly growing retail loan ecosystem.

Key Highlights:

Surge in Complaints

• Total complaints (2024-25): 13.34 lakh, up 13.5% from the previous year.
• 87% of all complaints came from individual retail customers.

Private Banks Now Lead in Complaints

• Private sector banks accounted for 37.5% of all grievances—the highest among bank groups.
• Complaints against Public Sector Banks (PSBs) fell by 9%, countering the common perception that PSBs are the worst on customer service.
• The shift is linked to private banks’ intense push into:
  • Unsecured personal loans,
  • Small-ticket loans,
  • Aggressive credit card enrolments.

Why Are Complaints Rising?

• Rapid retail growth since corporate lending slowed.
• Faulty or hasty loan appraisals leading to disputes over dues.
• Aggressive collection practices, especially in unsecured lending.
• Poor onboarding, resulting in confusion over interest, charges, and repayment schedules.
• Weak grievance redressal mechanisms despite higher retail exposure.

What Is the Ombudsman Scheme of RBI?

The Ombudsman Scheme is a complaint redressal mechanism created by the Reserve Bank of India (RBI) to resolve customer grievances related to banking, NBFCs, and digital payments. It provides cost-free, fair, and speedy resolution of complaints against regulated financial service providers.

Purpose of the Scheme

• To offer an accessible platform for customers to lodge complaints.
• To ensure transparent, timely, and impartial resolution of disputes.
• To enhance consumer protection in the banking and financial ecosystem

Regulatory Gaps Revealed

Inefficiencies in Redressal

• Many complaints remain unaddressed or inadequately resolved, revealing cracks in banks’ customer-service architecture.
• RBI Governor Sanjay Malhotra previously flagged the poor allocation of resources for customer grievance management.

Credit Bureaus: A New Flashpoint

• Complaints against credit bureaus increased four-fold.
• Structural issue:
  • Credit bureaus rely financially on banks,
  • They often accept bank-reported data without verification,
  • Consumers receive secondary priority, even when ratings are disputed.

Larger Implications for Banking

Retail Customers Still Seen as “Depositors First”

• Despite relying on retail customers to drive profits, many banks continue treating them merely as deposit sources, not as service-entitled clients.
• As depositors increasingly explore mutual funds, gold, bonds, and market-linked products, banks risk facing weaker deposit inflows and pressure on their net interest margins (NIMs).

Financial Stability Angle

• Rising unsecured loan exposure + weak consumer protection = systemic risk.
• RBI’s concerns signal potential tightening in:
  • Digital lending rules,
  • Credit card governance,
  • Customer-protection norms.

Way Forward

• RBI must strengthen the regulatory framework, especially around:
  • Retail onboarding quality,
  • Collection practices,
  • Accuracy of credit bureau reporting,
  • Banks’ spending on grievance-handling systems.
• Banks need to invest in service architectures that match their retail ambitions.
• If ignored, customer dissatisfaction could erode trust and revenue, undermining the very retail strategy banks are betting on.

Agriculture

1. Cluster-Based Natural Farming

Source: The Tribune

Context

At a recent meet hosted by NABARD at Chaudhary Sarwan Kumar Himachal Pradesh Krishi Vishvavidyalaya, Palampur, agricultural experts highlighted the importance of cluster-based natural farming models. The approach promotes collective adoption of sustainable, chemical-free farming practices among geographically proximate farmers, enhancing productivity, resilience, and market linkages.

What is Cluster-Based Natural Farming?

• Cluster-based natural farming involves a group of farmers in a defined area (typically 50+ hectares) adopting natural farming practices together.
• Key Features:
  • Shared bio-input production and resources
  • Joint training and extension support
  • Collective marketing and value-chain integration
  • Risk sharing through diversified cropping and livestock integration
• Objective: Make natural farming economically viable, scalable, and sustainable.

Benefits of Cluster-Based Natural Farming

• Sustainability and Ecological Balance
  • Reduces dependency on chemical fertilizers and pesticides
  • Improves soil health, biodiversity, and water conservation
• Economies of Scale
  • Shared resources and pooled inputs reduce costs per farmer
  • Enables bulk procurement and production of bio-inputs
• Knowledge Sharing & Capacity Building
  • Farmers access training, demonstrations, and expert guidance collectively
  • Encourages adoption of scientific and indigenous practices
• Market Linkages & Income Security
  • Aggregated produce helps secure better prices and market access
  • Promotes value addition and supply-chain integration
• Risk Mitigation
  • Diversified crops and livestock reduce climate and market risks
  • Strengthens resilience of small and marginal farmers

Key Highlights from the NABARD Meet

• Promotion of Indigenous Practices: Experts stressed integrating indigenous cattle breeds and local crop varieties.
• Holistic Approach: Focus on crop-livestock integration, fodder production, and sustainable water management.
• Institutional Support: Collaboration between agricultural universities, NABARD, and extension services is crucial for farmer training, cluster setup, and supply-chain support.
• Replication Potential: Cluster-based models are scalable and adaptable for diverse agro-climatic zones, including Himachal Pradesh, Punjab, and Jharkhand.

Policy Alignment

Challenges Identified

• Initial Yield Uncertainty: Farmers may face short-term yield dips during transition from conventional farming.
• Resource Requirements: Need for bio-input production units, training centers, and seed banks.
• Market Linkages: Effective aggregation, certification, and access to buyers are essential to ensure economic sustainability.

Relevance to Jharkhand and Other States

• Jharkhand has identified 12 districts for 88 natural farming clusters, demonstrating the scalability and replicability of this model.
• Cluster-based natural farming can empower smallholders, enhance livelihoods, reduce input costs, and strengthen local ecosystems.
• Provides a pathway for sustainable and climate-resilient agriculture, especially in regions dependent on rainfed or marginal lands.

Economy

1. Top-Three Quantum Economy by 2047

Source: News on Air

Context

The Frontier Tech Hub of NITI Aayog, in collaboration with IBM, has released a national roadmap aimed at transforming India into one of the world’s top-three quantum economies by 2047. The plan focuses on developing homegrown quantum computing hardware and software, nurturing at least 10 globally competitive quantum start-ups, and capturing a significant share of the global quantum software and services market.

Strategic Goals

• Technological Leadership:
  • Build domestic quantum computing hardware and software capabilities.
  • Establish globally competitive quantum enterprises.
• Sectoral Applications:
  • Deploy quantum technologies across defence, energy, healthcare, logistics, and finance.
  • Enhance security, operational efficiency, and innovation nationwide.
• Ecosystem Development:
  • Accelerate R&D, commercialization, and talent development.
  • Promote collective ownership across policymakers, scientists, entrepreneurs, investors, and states.

Roadmap Highlights

• Leverages the National Quantum Mission as the foundation for quantum initiatives.
• Identifies India’s current capabilities, strategic strengths, and critical gaps.
• Provides actionable pathways to accelerate innovation, research, and global market presence.
• Emphasizes building a globally trusted, competitive, and self-reliant quantum economy.

Facts To Remember

1. Former England batter Robin Smith passes away

Former England batter Robin Smith passed away aged 62, English county side Hampshire announced. The South Africa-born Smith, who played 62 Tests between 1988 and 1996, died unexpectedly on Monday in Australia, where he lived, his family said.

2. Sanchar Saathi App Can Be Deleted from Devices, Says Minister Scindia

The Union government has issued new directions requiring smartphone manufacturers to pre-install the Sanchar Saathi app on all devices sold in India from March 2026. The move has drawn concerns regarding privacy, surveillance, and app permissions. Responding to these concerns, Union Communications Minister Jyotiraditya Scindia clarified that the app neither snoops on users nor monitors their calls, and it can be deleted if a user does not want it.

3. Parliament Passes Central Excise (Amendment) Bill, 2025 to Raise Tobacco Duties

The Parliament today passed the Central Excise (Amendment) Bill, 2025 with the Rajya Sabha approving and returning it to the Lok Sabha.

4. Union Minister Annpurna Devi launches 100-Day Intensive Awareness Campaign for Child Marriage Free Bharat

Union Minister of Women and Child Development (WCD) Annpurna Devi today launched the 100-Day Intensive Awareness Campaign for a Child Marriage Free Bharat in New Delhi, marking the first anniversary of the Bal Vivah Mukt Bharat campaign.

5. India celebrates Navy Day with Spectacular Maritime Display in Kerala

Navy Day is being celebrated today. The day is celebrated on the 4th of December every year to recognise the achievements and role of the Indian Navy.

6. Operation Sagar Bandhu strengthens Sri Lanka’s relief efforts against Cyclone Ditwah

India’s Operation Sagar Bandhu continues to bolster Sri Lanka’s struggle against the devastation caused by Cyclone Ditwah.

Daily Current Affairs Quiz
5 December, 2025

National Affairs

1. DHRUVA (Digital Hub for Reference and Unique Virtual Address)

Source: TH

Context

The Department of Posts has released a draft amendment in 2025 proposing DHRUVA (Digital Hub for Reference and Unique Virtual Address), a UPI-like digital addressing system. This system aims to digitise, standardise, and virtualise physical addresses across India, allowing users to share secure, consent-based address “labels” such as name@entity.

Key Features of DHRUVA

UPI-Like Address Labels

• Each user can obtain a virtual address label, e.g., name@entity, which acts as a proxy for their physical address.
• Reduces the need to repeatedly fill address forms in government and private services.

Consent-Based Access

• Users control who can access their geocoded or textual addresses.
• Access is time-bound and consent-driven, ensuring strong privacy protections.

DIGIPIN Backbone

• DIGIPIN is a 10-character alphanumeric geocode representing latitude–longitude coordinates.
• Maps every 14 sq m patch of India (~228 billion unique pins).
• Open-sourced, precise, and particularly useful for rural and hard-to-map areas.

Address-as-a-Service (AaaS) Framework

• Secure APIs enable integration of address data across:
  • Government agencies
  • Logistics companies
  • E-commerce platforms
  • Fintech and other private-sector services

Aim of DHRUVA

• Create a unified, secure, and user-controlled digital address ecosystem.
• Treat address data as core public infrastructure, similar to Aadhaar, UPI, and DigiLocker.
• Enable Address-as-a-Service (AaaS) for seamless integration across public and private services.

2. Shift in Stubble-Burning Timing in Punjab and Haryana: ISRO

Source: IE

Context

A new ISRO study has revealed that peak stubble-burning activity in Punjab and Haryana has shifted from early afternoon to early evening between 2020 and 2024, resulting in possible underestimation of farm-fire incidents by government data that rely mainly on polar-orbiting satellites.

Key Findings from the ISRO Study

• Satellites Used:
  • Geostationary: Meteosat Second Generation (MSG) satellites with SEVIRI instrument.
  • Polar-Orbiting (for comparison): NOAA’s Suomi NPP, NASA’s Terra MODIS, Aqua MODIS.
• Significance of Geostationary Satellites:
  • Orbit at ~36,000 km above equator, constantly monitoring the same region.
  • Can detect fire events every half-hour, capturing altered burning times.
• Shift in Burning Practices:
  • Peak burning moved from early afternoon to late afternoon/early evening (3:30–6 pm) since 2022.
  • Shift likely aimed at avoiding detection by polar-orbiting satellites, which monitor fields only at fixed times.
• Implications:
  • Possible undercounting of fire incidents in official records.
  • Affects air quality assessments, emission inventories, and mitigation strategies.
• Publication: “Evidence of shift in stubble burning timing over northwest India from geostationary satellite observations,” Current Science, November 25, 2025.

Government Monitoring and Enforcement

• CAQM Actions:
  • Communicated to Punjab and Haryana for effective elimination of stubble-burning.
  • Requested reports on undetected fire locations, stocktaking methods, and punitive measures.
• State-Level Measures:
  • Punjab deployed 10,500 personnel for round-the-clock monitoring.
  • Supplemented by flying squads from CPCB and CAQM.
  • Created a 1,700-member Parali Protection Force to identify fires escaping satellite detection.
  • Late-evening patrols to catch farmers burning stubble at night.
• Penalties for Violations (CAQM 2025):
  • Small landholders (≤2 acres): ₹5,000 per incident
  • Medium landholders (2–5 acres): ₹10,000 per incident
  • Large landholders (>5 acres): ₹30,000 per incident
• FIRs and Compensation:
  • 1,963 FIRs registered under Section 223 of Bharatiya Nyaya Sanhita, 2023.
  • Environmental compensation imposed: ₹1.26 crore.

Impact on Farm-Fire Incidence

• Punjab (Sep 15–Nov 30):
  • 2020: 83,002 incidents → 2025: 5,114 incidents
• Haryana (Sep 15–Nov 30):
  • 2021: 6,987 incidents → 2025: 662 incidents
• Government Statement: Union Environment Minister Bhupender Yadav reported ~90% reduction in fire incidences in Punjab and Haryana compared to 2022.

3. BNHS to Release Critically Endangered Vultures in Assam

Source: TH

Context

The Bombay Natural History Society (BNHS) will release six critically endangered vultures—slender-billed (Gyps tenuirostris) and white-rumped (Gyps bengalensis)—into the wild in Assam in January 2026. This is part of India’s ongoing vulture recovery programme, aimed at conserving these species that have faced severe population declines over the past two decades.

Slender-billed Vulture (Gyps tenuirostris)

• Status: Critically Endangered (IUCN) with fewer than ~870 mature individuals.
• Habitat: Gangetic plains, Assam, northern Bangladesh, southern Nepal, Myanmar, and Cambodia. Nests on tall trees near human settlements, slaughterhouses, and riverine areas.
• Key Characteristics:
  • Dark head, slender narrow bill, long bare neck
  • Grey plumage with pale rump; juveniles have white neck down

White-rumped Vulture (Gyps bengalensis)

• Status: Critically Endangered; population declined rapidly due to diclofenac poisoning in livestock carcasses.
• Habitat: Cities, villages, plains, and open fields; nests on large trees or cliffs; often roosts near human habitation.
• Key Characteristics:
  • Dark plumage with white neck ruff and distinct white rump patch
  • White underwing coverts visible in flight

4. New Flight Duty Time Limitations (FDTL) Rules

Source: TOI

Context

The Indian aviation sector is witnessing large-scale flight cancellations and delays, particularly at IndiGo, following the implementation of Flight Duty Time Limitations (FDTL) rules. The new norms, aimed at reducing pilot fatigue, have led to crew shortages and stricter compliance requirements for airlines.

What Are Flight Duty Time Limitations (FDTL)?

• Definition: Regulatory limits on pilot duty hours, flight hours, night operations, and mandatory rest periods to prevent fatigue.
• Issuing Authority: Directorate General of Civil Aviation (DGCA) under the revised framework notified in January 2024.
• Objective: Align Indian aviation with global safety standards, reduce fatigue-related risks, and ensure safer flight operations.

Key Features of FDTL Rules

• Weekly Rest:
  • 48 hours of continuous rest to allow pilots adequate recovery and reduce cumulative fatigue.
• Night Operations:
  • Night period extended to 00:00–06:00, covering high-fatigue biological windows for early-morning and late-night flights.
  • Limit of two-night landings and two consecutive night duties to prevent performance decline during critical flight phases.
• Roster & Fatigue Management:
  • Airlines must redesign schedules to comply with FDTL.
  • Pilots can formally report fatigue, enhancing transparency and safety.
• Phased Implementation:
  • Fully enforced by November 1, 2025, requiring airlines to expand crew capacity and overhaul existing scheduling practices.

5. Exercise Garuda and Exercise Garuda Shakti

Context

Two major military exercises were recently in focus:

1. Exercise Garuda 25 between India and France concluded in France.
2. Exercise Garuda Shakti 2025 between India and Indonesia commenced in Himachal Pradesh.

These exercises aim to strengthen bilateral defence cooperation, enhance interoperability, and expose forces to advanced operational tactics.

Exercise Garuda 25

• Host: Air Base 118, Mont-de-Marsan, France
• Participating Nations: India (Indian Air Force – IAF) and France (French Air & Space Force – FASF)
• Key Features:
  • Deployment of Su-30MKI, IL-78 air-to-air refuellers, and C-17 Globemaster III by IAF.
  • Complex missions including strike, escort, air refuelling, and coordinated operations.
  • Joint mission planning, tactical execution, and familiarisation with each other’s standard operating procedures (SOPs).
  • High aircraft serviceability ensured through IAF maintenance teams.

Exercise Garuda Shakti 2025

• Host: Special Forces Training School, Bakloh, Himachal Pradesh
• Participating Nations: India (PARA SF) and Indonesia (Indonesian Special Forces)
• Key Features:
  • Training on counter-terrorism tactics, unarmed combat, combat shooting, sniping, and heliborne operations.
  • Focus on drone warfare, counter-UAS, and loiter-munition planning in semi-mountainous terrain.
  • Exchange of expertise on weapons, equipment, and operational procedures.
  • Culminates in a validation exercise simulating real-operation scenarios to test readiness.

Banking and Finance

1. RBI Cuts Repo Rate to 5.25%

Source: Mint

Context

The Reserve Bank of India (RBI) reduced the repo rate by 25 basis points (bps) to 5.25%, citing a rare macroeconomic situation where growth is strong and inflation is exceptionally low. The move surprised sections of the market that expected the Monetary Policy Committee (MPC) to hold rates.

Why the Repo Rate Was Cut

1. Benign and Rapidly Falling Inflation

• Average CPI inflation for July–September fell to 1.7%, dipping below the 2% lower tolerance band for the first time since India adopted the inflation-targeting framework.
• October CPI was at 0.3%, signalling sharp disinflation.
• RBI revised FY26 inflation forecast downward to 2% (earlier 2.6%).

2. Robust GDP Growth

• GDP grew 8.2% in Q2 FY26 — the fastest in six quarters.
• RBI raised FY26 GDP forecast to 7.3% from 6.8%.
• Growth is resilient though some indicators like PMI and IIP show early moderation.

3. Policy Space + Low Inflation = Opportunity

Governor Sanjay Malhotra termed this a “rare goldilocks period” where inflation is low and growth is stable, enabling policy action to support momentum.

Impact of the Repo Rate Cut

1. Impact on Banks

• NIM Compression:
  • 63% of floating loans are linked to repo/external benchmarks.
  • Loan rates fall immediately, but deposit rates reprice slowly → NIM squeezes.
• Weak deposit growth means banks may need to raise deposits, not cut rates.
• Bond portfolios gain as yields fall.

2. Impact on Borrowers

• Cheaper EMIs on:
  • Home loans
  • Auto loans
  • Personal loans
• Corporates benefit from lower working capital and long-term borrowing costs.

3. Impact on Economy

• Lower borrowing costs boost consumption and investment.
• Liquidity infusion supports credit flow, especially MSMEs and housing.
• Helps revive sectors showing early signs of slowdown (PMI, IIP softening).

4. Impact on Inflation

• Minimal near-term risk because inflation is already at multi-year lows.
• Some demand-led price pressure may emerge by mid-FY27.

What is Repo Rate?

Repo Rate is the rate at which the RBI lends short-term money to commercial banks against government securities.

Why Repo Rate Matters

• It is the key monetary policy rate.
• Determines borrowing costs for banks → influences loan rates (home, auto, personal loans).
• Used to control inflation:
  • High repo = expensive loans = lower inflation
  • Low repo = cheaper loans = support growth

What is Reverse Repo Rate?

Reverse Repo Rate is the rate at which commercial banks park their surplus funds with RBI.

Why It Matters

• Helps RBI absorb excess liquidity from the banking system.
• Used during high liquidity periods to stabilise money markets.
• A higher reverse repo encourages banks to deposit more with RBI rather than lend in the market.

2. LIC Launches New Insurance Plans: Protection Plus and Bima Kavach

Source: TNIE

Context

The Life Insurance Corporation of India (LIC) has launched two new life insurance plans aimed at providing savings and risk coverage to individuals and their families.

Key Features:

• LIC Protection Plus (Plan 886)
  • A linked savings plan that combines life cover with investment options.
  • Policyholders can pick from investment funds, adjust the sum assured, make top-up payments, and avail partial withdrawals after five years.
  • Entry age: 18 to 65 years; policy term up to 25 years.
  • Type: Non-par, linked, life, individual savings plan
• Bima Kavach
  • A pure risk, non-linked plan offering fixed death benefits.
  • Offers either a level or increasing sum assured, depending on preference.
  • Premium payment options: single, limited, or regular — with coverage potentially lasting up to 100 years.
  • Type: Non-par, non-linked, life, individual, pure risk plan
  • Special Features: Offers lower premium rates for women and non-smokers.

3. Fino Payments Bank Receives RBI Nod to Convert into Small Finance Bank (SFB)

Source: BS

Context

Fino Payments Bank Ltd. has received ‘in-principle’ approval from the Reserve Bank of India (RBI) to convert into a Small Finance Bank (SFB).

First Payments Bank to Secure SFB Conversion Nod

• Fino becomes the first-ever payments bank eligible for SFB transformation.
• Eligibility achieved after completing five years of operations, as mandated by RBI.
• Fino launched its payments bank services in 2017.

What Conversion to SFB Enables

After full authorization, Fino will be able to:

• Accept higher-value deposits without payments bank limits.
• Start lending activities to individuals, MSMEs, and small businesses.
• Offer loans such as microcredit, agri-loans, business loans, and retail loans.
• Expand branch network—25% must be in unbanked rural centres.
• Operate like mainstream commercial banks but with a focus on underserved segments.

Eligibility to Become a Small Finance Bank (SFB)

As per RBI’s “on-tap” licensing guidelines, the following criteria must be met:

1. Existing Entity Requirements

• Eligible applicants include:
  • Existing Payments Banks,
  • NBFCs,
  • Microfinance Institutions (MFIs),
  • Local area banks,
  • And other resident-owned entities.
• The applicant must be promoted by residents (Indian citizens/companies).
• Foreign shareholding allowed up to 49% automatically, higher requires approval.

2. Operations & Compliance Track Record

• Payments banks must complete minimum 5 years of operations.
• Must show sound financials, profitability path, and clean compliance history.

3. Capital Requirements

• Minimum paid-up capital: ₹200 crore.
• Promoter must contribute at least 40% of the paid-up capital (to be diluted to 26% in 12 years).
• Minimum CRAR of 15% is required post-conversion.

4. Priority Sector & Financial Inclusion Focus

• At least 75% of Adjusted Net Bank Credit (ANBC) must be towards priority sectors.
• At least 50% of loans must be up to ₹25 lakh ticket size.

5. Branch Expansion Rules

• At least 25% of branches must be in unbanked rural centres.

4. Bank Net Interest Margins (NIMs)

Source: BS

Context

Following the RBI’s repo rate cut of 25 bps in December 2025, scheduled commercial banks are expected to experience further compression in Net Interest Margins (NIMs). This comes amid a high credit-deposit (CD) ratio and slower adjustment of deposit rates compared to lending rates.

Net Interest Margins (NIMs)

Net Interest Margin (NIM) is a key financial metric used in banking that measures how profitable a bank is in terms of generating income from its lending activities relative to the interest it pays on deposits and borrowings.

It tells how effectively a bank is earning from its core business — lending and investing, compared to what it pays out as interest to depositors and lenders.

Formula

NIM = (Interest Earned – Interest Expended) ÷ Average Interest-Earning Assets × 100

• Interest Earned: Income from loans, advances, government securities, investments, etc.
• Interest Expended: Interest paid on deposits, borrowings, and other funding sources.
• Interest-Earning Assets: Loans + advances + investments that generate interest.

Why NIMs Matter

1. Indicator of Bank Profitability

Higher NIM means the bank earns more margin from lending versus what it pays on deposits.

2. Reflects Efficiency of Banking Operations

Shows how well a bank manages its interest rate risk, asset–liability mix, and pricing strategy.

3. Impacts Overall Net Profit

A bank with stronger NIMs usually reports better Net Interest Income (NII) and stronger bottom-line growth.

5. RBI Tightens Rules for Foreign Banks to Reduce Concentration Risk

Source: Mint

Context

The Reserve Bank of India (RBI) has introduced stricter norms for foreign banks operating in India by tightening exposure rules under the Large Exposures Framework (LEF). The amendments aim to curb concentration risk, ensure greater transparency, and strengthen the risk management practices of foreign lenders.

Key Changes:

No More Exemptions for Overseas Branch Exposures

• Indian branches of foreign banks can no longer exclude exposures to their head office, overseas branches, or subsidiaries under earlier exemption interpretations.
• These exposures must now be treated as regular counterparty exposures and brought fully under LEF limits.

Stricter Intragroup Exposure Rules

• Foreign banks must comply with tighter intragroup exposure limits, preventing excessive reliance on the parent entity or overseas network.
• This ensures that Indian branches maintain independent risk buffers and avoid concentrated exposures.

Gross Basis Calculation for All Transactions

• All transactions between Indian branches of foreign banks and their overseas affiliates must be calculated on a gross basis, regardless of central clearing.
• No netting will be allowed, making risk assessment more conservative and transparent.
• This change reduces the possibility of understating counterparty risk.

Effective Date and Early Adoption

• The revised norms will come into effect on 1 April 2026.
• RBI has allowed foreign banks to voluntarily adopt the framework earlier if they wish.

Why RBI Tightened the Rules

• To curb concentration risk arising from heavy dependence on head-office funding.
• To align with global best practices in cross-border banking risk management.
• To ensure foreign institutions maintain strong local buffers and risk discipline within Indian operations.

6. Large Exposures Framework (LEF)

Large Exposures Framework (LEF) is an RBI regulation designed to limit the concentration of credit risk in the banking system. It ensures that banks do not take excessively large exposures to a single borrower or a group of connected borrowers.

It aligns India with the Basel Committee on Banking Supervision (BCBS) global standards on large exposures.

Objectives of LEF

• Reduce systemic risk from large borrower defaults
• Prevent excessive concentration of lending
• Ensure banks diversify their credit portfolios
• Strengthen overall financial stability

Key Definitions

Exposure

Includes funded, non-funded credit limits, derivatives exposure, off-balance-sheet items, and investments in securities.

Connected Counterparties

Two or more borrowers treated as a single counterparty if they are interconnected through:

• Control (ownership, voting rights, management)
• Economic interdependence (common sources of funds, guarantees, group dependence)

Exposure Limits under LEF

1. Single Counterparty Exposure Limit

• 20% of a bank’s Tier-1 capital
• RBI may allow up to 25% for certain banks in specific conditions.

2. Group of Connected Counterparties

• 25% of a bank’s Tier-1 capital
• Can be raised to 30% by RBI in exceptional cases.

3. Exposure to NBFCs

• Banks may have exposure up to 25% of Tier-1 capital (Prudential norms announced earlier).

4. Exceptions

Certain exposures are exempt from LEF, such as:

• Exposure to Government of India
• Exposure backed by equivalent cash margins or government guarantees
• Intraday interbank exposures

Recent Update: Withdrawal of 2016 Large Borrower Framework

In December 2025, RBI scrapped the old 2016 guidelines that required large borrowers to raise a portion of their borrowings through the corporate bond market.

• Industry feared bond market volumes would fall.
• RBI clarified volumes are strong due to broader reforms; old rules added costs.

This affects how banks manage exposures under LEF but does not dilute LEF limits, which remain fully in force.

LEF Applicability to Foreign Banks

Foreign banks operating in India (branches of overseas banks) must also comply with LEF based on their India operations only.

1. Exposure Limit Calculation

For foreign banks, the limit is calculated using:

• Tier-1 capital / net owned funds in India, not the global balance sheet.

2. Group-Level Limits

Even if the global parent finances the same borrower elsewhere, only India books count towards LEF.

3. No Exemptions for Foreign Banks

Foreign banks must follow the same exposure caps as domestic banks, except for:

• Foreign sovereign exposures (e.g., home-country government bonds) are exempt outside India but not relevant for India books.
• Branch-level exposures in India cannot exceed LEF limits even if the parent guarantees it.

4. Exposure Aggregation

All Indian branches of a foreign bank are treated as a single entity.
Example:
If a foreign bank has 3 branches in India, their combined exposure to Reliance Group must stay within the 25% group exposure limit.

5. Special Case: Interbank Exposures

Foreign banks with large corporate treasuries often rely on:

• Interbank exposure
• Nostro/Vostro balances
• Forex derivatives

Intraday exposures are exempt, but end-of-day exposures are counted.

Agriculture

1. World Soil Day 2025

Source: TH

Context

World Soil Day, observed annually on December 5, highlights the importance of soil—a critical yet often overlooked foundation of life and human civilisation. The 2025 theme, “Healthy Soils for Healthy Cities”, shifts focus from rural agriculture to urban environments, underlining the essential role of soil in building resilient cities.

Why Urban Soil Matters:

With over 56% of the global population living in cities, urban soils provide indispensable ecosystem services:

1. Climate Regulation: Soils under vegetation reduce heat in urban “heat islands,” sequester carbon, and mitigate climate change.
2. Flood Management: Healthy soils absorb rainwater, prevent flooding, and recharge groundwater, unlike impervious surfaces.
3. Urban Food Systems & Biodiversity: Fertile soils support rooftop gardens, parks, and community farms while sustaining microbes, pollinators, and earthworms.
4. Mental & Physical Health: Exposure to soil-rich green spaces reduces stress and promotes physical activity.

Challenges:

Urban soils are among the most degraded natural resources. They face:

• Contamination from industrial waste
• Compaction from construction
• Loss of organic matter
• Sealing by concrete and asphalt

These issues threaten food safety, urban ecosystems, and city livability.

Blueprint for Action:

The 2025 campaign emphasizes community and institutional engagement to restore and protect urban soils:

• Soil Restoration: Rehabilitate degraded lands with compost, organic amendments, and soil testing; limit further soil sealing.
• Green Infrastructure: Integrate soils in parks, rain gardens, and tree belts to combat flooding and heat stress.
• Urban Agriculture: Encourage community, backyard, and container gardening.
• Responsible Soil Management: Minimise chemical inputs, plant native species, and protect topsoil with mulching.
• Soil Literacy & Composting: Schools and households can conduct soil workshops and compost organic waste to enrich urban soil.

Facts To Remember

1. Ex-Mizoram Governor Swaraj Kaushal dies

Swaraj Kaushal, former Governor of Mizoram and and a senior advocate, passed away on Thursday afternoon. He was 73.

2. India in Talks with Eight More Countries to Expand UPI Acceptability

India is expanding the global footprint of its Unified Payments Interface (UPI). Currently, UPI is accepted in eight countries: Bhutan, Singapore, Qatar, Mauritius, Nepal, UAE, Sri Lanka, and France.

3. India to Host 20th UNESCO Intangible Cultural Heritage Committee Session at Red Fort

India will host the 20th session of the Inter-governmental Committee for the Safeguarding of the Intangible Cultural Heritage-ICH from 8th till 13th of this month at Red Fort in New Delhi.

4. Indian Army Hosts Inno-Yoddha 2025 to Promote Soldier-Led Innovation

The Indian Army today conducted its annual Idea and Innovation Competition and Seminar, Inno-Yoddha 2025 in New Delhi.

5. Lok Sabha Passes Health & National Security Cess Bill

The Lok Sabha has passed the Health Security se National Security Cess Bill, 2025.

6. 14th round of India-Oman Strategic Consultative Group meeting takes place in Muscat, Oman

The 14th round of the India-Oman Strategic Consultative Group meeting was held on December 4, 2025, in Muscat, Oman.

Daily Current Affairs Quiz
6 December, 2025

National Affairs

1. India–Russia Annual Summit 2025

Source: PIB

Context

The 23rd India–Russia Annual Summit concluded with both nations reaffirming their Special & Privileged Strategic Partnership, marking 25 years of the Strategic Partnership (2000–2025). The Summit remains the highest-level institutional dialogue between the two countries, led by the Prime Minister of India and the President of Russia.

What is the India–Russia Annual Summit?

• It is the apex bilateral mechanism where top leadership reviews the full spectrum of cooperation.
• The Summit sets long-term strategic directions across defence, energy, technology, and global geopolitics.
• The 2025 edition underscored the maturity and resilience of ties amid a rapidly evolving global order.

Key Outcomes of the Joint Statement

1. Strategic Partnership Reaffirmed

• Both sides reiterated commitment to a time-tested, trust-based partnership.
• Emphasis on respecting each other’s core national interests.
• Shared focus on shaping a multipolar and stable global order.

2. Programme of Cooperation 2030 Adopted

A comprehensive roadmap till 2030 covering:

• Trade & investment
• Defence & technology
• Energy & nuclear
• Space cooperation
• Connectivity corridors
• Digital and financial systems

3. Trade & Payments: Major Push Towards USD 100 Billion

• Target of USD 100 billion bilateral trade by 2030.
• Strengthening national currency settlements to reduce dollar-dependence.
• Enhancing interoperability of payment systems and exploring CBDC (central bank digital currency) mechanisms.

4. Upgraded Defence & Military-Technical Cooperation

• Shift from buyer–seller model to joint R&D, co-development, and co-production under Make in India.
• Support for spare-part manufacturing in India for Russian-origin military platforms.
• Continued momentum in INDRA-2025 exercises and possible trilateral military engagements.

5. Energy Partnership Deepened

Focus areas include:

• Oil, gas, LNG, and hydrocarbons
• Petrochemicals and coal gasification
• Long-term fertilizer supply
• Resolution of pending investment issues between companies

India and Russia aim to build a secure and diversified energy partnership.

6. Connectivity Corridors: Strong Boost

Commitment to scale up infrastructure for:

• International North-South Transport Corridor (INSTC)
• Chennai–Vladivostok Eastern Maritime Corridor
• Northern Sea Route (Arctic)

These corridors aim to reduce logistics costs, shorten transit time, and integrate Eurasian markets.

7. Civil Nuclear & Space Cooperation Strengthened

• Progress on Kudankulam Nuclear Power Plant (Units 3–6).
• Discussions on identifying a second nuclear site in India.
• Cooperation in nuclear fuel cycle, localization of components, and advanced reactors.
• Enhanced collaboration between ISRO and Roscosmos.
• Plans on human spaceflight, satellite navigation, and rocket engine technologies.

2. India Hosts 20th UNESCO Inter-Governmental Committee on Intangible Cultural Heritage

Source: News on Air

About the Intergovernmental Committee for Safeguarding of ICH

The Intergovernmental Committee for the Safeguarding of Intangible Cultural Heritage is a 24-member UNESCO body established under the 2003 ICH Convention. Its core purpose is to promote, supervise, and operationalize safeguarding measures for living cultural heritage across the world.

Venue for 2025 Session

Red Fort (Lal Qila), New Delhi
A UNESCO World Heritage Site, symbolising India’s rich civilisational heritage and cultural leadership.

Structure of the Committee

Composition

• 24 Member States elected by the General Assembly of States Parties.
• Seats distributed across six UNESCO regional groups ensuring equitable geographical representation.
• Member States nominate experts with specialised knowledge in intangible cultural heritage.

Term Rules

• Four-year term for each Member State.
• Staggered renewal: Half the Committee is replaced every two years to blend continuity with new perspectives.

Functions of the Committee

Promote Objectives of the 2003 ICH Convention

• Ensures global cooperation for the preservation of living heritage, community traditions, and cultural expressions.

Offer Technical Guidance

• Advises States Parties on best safeguarding practices, capacity-building, and integration of communities in heritage preservation.

Prepare Operational Directives

• Drafts rules, procedures, and financial plans for effective implementation of the Convention, including management of the ICH Fund.

Examine Nominations for ICH Lists

• Evaluates entries for the Representative List of the Intangible Cultural Heritage of Humanity.
• Reviews the eligibility of cultural elements for the Urgent Safeguarding List.

Assess Good Safeguarding Practices

• Identifies and approves successful community-led safeguarding initiatives for the Register of Good Safeguarding Practices.

About Intangible Cultural Heritage (ICH)

Intangible Cultural Heritage refers to living traditions and knowledge systems transmitted across generations, including:

• Performing arts
• Rituals and festivals
• Oral traditions
• Craftsmanship
• Social practices
• Traditional knowledge and skills

Origin of the Concept

• Institutionalised under the 2003 UNESCO Convention for the Safeguarding of Intangible Cultural Heritage.
• Came into force in 2008.
• Established global ICH lists to protect traditions through community participation and international cooperation.

UNESCO’s ICH Lists

• Representative List of the Intangible Cultural Heritage of Humanity
• List of Intangible Cultural Heritage in Need of Urgent Safeguarding
• Register of Good Safeguarding Practices

India’s Position

India currently has 15 elements inscribed on UNESCO’s Representative List, reflecting its deep cultural diversity.

3. Exercise Harimau Shakti 2025

Source: PIB

Context

India and Malaysia have commenced the 5th edition of Exercise Harimau Shakti 2025 at the Mahajan Field Firing Range, Rajasthan, focusing on enhancing coordination in counter-insurgency and peacekeeping operations.

What is Exercise Harimau Shakti?

Exercise Harimau Shakti is a bilateral military training exercise between the Indian Army and the Royal Malaysian Army. The exercise aims to strengthen cooperation, tactical coordination, and operational readiness in sub-conventional warfare and UN peacekeeping missions.

Participating Nations

• India: Troops primarily from the DOGRA Regiment
• Malaysia: Troops from the 25th Battalion, Royal Malaysian Army
• Host Location: Mahajan Field Firing Range, Rajasthan

Key Features of the Exercise

Focus on Sub-Conventional Operations

• Conducted under the framework of UN Chapter VII mandates
• Simulation of real-world peacekeeping challenges

Joint Tactical Drills

• Cordon and search operations
• Heliborne insertion and extraction
• Search-and-destroy missions
• Securing landing zones and helipads

Operational Readiness & Combat Skills

• Casualty evacuation drills
• Counter-terrorism tactical responses
• Small-team coordinated manoeuvres
• Army Martial Arts Routine (AMAR)
• Combat reflex shooting
• Yoga and physical conditioning

Exchange of Best Practices

Both armies share tactical knowledge and warfighting techniques to enhance collective proficiency and mission preparedness.

Banking and Finance

1. Open Market Operation (OMO)

Context

The RBI announced a ₹1 trillion Open Market Operation (OMO) purchase along with a $5 billion dollar–rupee swap to inject durable rupee liquidity as the rupee slipped past 90 per dollar amid foreign outflows. The move aims to stabilise liquidity, interest rates, and currency markets.

What is an OMO Purchase?

An Open Market Operation (OMO) purchase is an action where the RBI buys government securities from banks and financial institutions to inject durable liquidity into the financial system.
Key outcomes:

• Increases bank reserves
• Lowers short-term interest rates
• Smoothens monetary policy transmission across the economy

Purpose of OMO Purchases

• Inject long-term, durable liquidity into the banking system
• Smoothen monetary transmission after policy rate changes
• Stabilise money-market rates such as the Weighted Average Call Rate (WACR)
• Counter liquidity shortages caused by capital outflows or currency volatility

Types of Open Market Operations

Expansionary OMO (Liquidity Injection)

• RBI buys government securities
• Bank reserves rise
• Interest rates fall
• Lending and investment activity increases

Contractionary OMO (Liquidity Absorption)

• RBI sells government securities
• Money supply reduces
• Market interest rates rise
• Helps control inflation

Special OMOs / Operation Twist

• RBI buys long-term bonds and sells short-term bonds simultaneously
• Adjusts the yield curve without altering overall liquidity
• Used to ease long-term borrowing costs

How OMO Purchases Work

Step 1: Assess Liquidity

RBI monitors:

• Currency pressures
• Capital flows
• Call money rates
• Banking system liquidity

Step 2: Announce OMO Auction

RBI specifies:

• Amount (e.g., ₹1 trillion)
• Type and maturity of government securities

Step 3: Banks Sell Bonds

Banks sell government securities to the RBI through the auction mechanism.

Step 4: Settlement

• RBI pays banks
• Bank reserves increase
• System liquidity expands

Step 5: Market Effects

• Overnight rates fall
• Bond yields soften
• Rupee money markets stabilise
• Monetary transmission improves

Significance of the OMO Purchase

• Strengthens Rupee Liquidity During Currency Pressure
  • Foreign outflows reduce rupee liquidity; OMO purchases replenish it to prevent market stress.
• Improves Monetary Transmission
  • Ensures lending rates ease in line with repo rate cuts.
• Stabilises Bond Markets
  • Prevents abrupt spikes in bond yields, supporting government borrowing.
• Boosts Banking Sector Liquidity
  • Provides banks with durable liquidity, enabling greater credit flow to businesses and households.

2. RBI Examining Bank Participation in Non-Agricultural Commodity Derivatives

Source: BS

Context

The Reserve Bank of India (RBI) is reviewing a proposal by SEBI to allow banks to participate in non-agriculture commodity derivatives markets. RBI Governor Sanjay Malhotra clarified that current regulations under the Banking Regulation Act prohibit banks from such activities.

Key Points

• Regulatory Requirement:
  • bAllowing banks to trade in non-agri commodity derivatives would require amendments to the Banking Regulation Act.
  • RBI emphasized that this is not limited to a single regulatory change; broader implications need study.
• SEBI’s Initiative:
  • SEBI aims to enable banks, insurance companies, and pension funds to invest in non-agriculture commodity derivatives.
  • Discussions with the government may also follow to allow institutional participation in this market.

What Are Non-Agricultural Commodity Derivatives?

Non-agricultural commodity derivatives are exchange-traded financial contracts whose value is derived from non-farm commodities such as metals, energy products, and bullion. These instruments allow participants to hedge price risks, speculate, or manage exposures in non-agri commodities.

They are traded on Indian commodity exchanges such as:

• MCX (Multi Commodity Exchange of India)
• ICEX (Indian Commodity Exchange)

3. RBI Allows Multiple Bank-Group Entities to Undertake Same Business, With Board Approval

Source: BS

Context

The Reserve Bank of India (RBI) has allowed multiple entities within a bank group to undertake the same line of business, provided they cater to different customer segments and obtain mandatory board approval to justify any overlap.

Key Announcement

RBI has modified its earlier proposal to restrict a bank group to one entity per business activity. Now:

• Multiple entities in a bank group can undertake the same business,
• But only if they target different segments (e.g., geography, ticket size, customer profile),
• And they must have board-approved justification for overlaps.

This change provides greater operational flexibility to banks while ensuring governance discipline.

Why Did RBI Make This Change?

• Banking industry argued that customers and markets differ widely.
• Different group entities often specialise in distinct sectors/regions.
• A blanket restriction would have hampered business models, especially in retail lending, wealth management, payments, and credit subsidiaries.

RBI accepted the suggestion but added a governance check through mandatory board approval.

Background: 2024 Draft Circular

The draft regulatory framework (2024) had proposed:

• Only one entity per bank group may engage in a specific permissible business.
  This has now been dropped.

New Relief for NBFC Group Entities of Banks

Exemption from Listing Requirement

RBI accepted industry demand to ease listing norms.

• NBFC group entities of banks that are not independently identified by RBI as NBFC-Upper Layer (NBFC-UL)
  → Are now exempt from mandatory listing.

Why This Matters

Under the Scale-Based Regulatory (SBR) framework:

• NBFCs classified as Upper Layer must list within 3 years of identification.
• Many bank-owned NBFCs feared unnecessary listing burdens.
• RBI has now clarified: only NBFCs explicitly identified as NBFC-UL have to list.

Anti-Circumvention Clause

To prevent banks from bypassing regulations by shifting activities to NBFC subsidiaries:

• Restrictions applicable to banks for specific loan segments
  → will also apply to NBFC group entities of banks.

Current NBFC-Upper Layer (NBFC-UL)

Largest NBFCs regulated similar to banks. Examples include:

• Bajaj Finance
• Shriram Finance
• Tata Capital
• HDB Financial Services
• 11 others (total 15)

Facts To Remember

1. Niger becomes 1st African country to eliminate onchocerciasis

Niger becomes the first country in the African Region to eliminate onchocerciasis. Niger’s Minister of Public Health, Population and Social Affairs Garba Hakimi officially declared at a ceremony that the country is free of onchocerciasis.

2. Govt Plans RRB Listings in FY27: Two Regional Rural Banks Set for Market Debut

The Government of India has instructed state-run banks to begin preparations for listing selected Regional Rural Banks (RRBs) on the stock market in FY27. This move follows the recent consolidation under the ‘One State, One RRB’ framework and aims to deepen rural credit access while improving financial discipline.

3. Mahaparinirvan diwas observed across India in tribute to Dr B.R. Ambedkar

The Mahaparinirvan Diwas, which commemorates the death anniversary of the Bharat Ratna Dr Bhimrao Ramji Ambedkar, was observed in various parts of the country.

4. 11th India International Science Festival Begins in Panchkula

The 11th India International Science Festival - IISF, organised by the Union Ministry of Science and Technology, started today at Dussehra Ground, Panchkula.

5. 11th India International Science Festival begins at Dussehra Ground, Panchkula

The first session of the 11th India International Science Festival - IISF, organised by the Union Ministry of Science and Technology, started today at Dussehra Ground, Panchkula.

4. MyGov launches nationwide competition ahead of 9th edition of ‘Pariksha Pe Charcha’

A nationwide competition is underway on the MyGov portal in the run-up to the ninth edition of Prime Minister Narendra Modi’s unique interactive program Pariksha Pe Charcha.

Daily Current Affairs Quiz
7&8 December, 2025

National Affairs

1. The Evolution of Pension Reforms in India

Context

India’s rapidly ageing population poses a growing pension challenge. Over 153 million Indians are aged 60+, projected to rise to 347 million by 2050. Despite formal sector provisions, 88% of senior citizens work in the informal economy, lacking pensions or reliable social security. The government has progressively revised pension schemes to enhance financial inclusion, social protection, and long-term savings behaviour.

Key Pension Schemes and Evolution

a) Social Assistance Schemes

• Indira Gandhi National Old Age Pension Scheme (IGNOAPS), 1995:
  • Targets BPL individuals aged 65+.
  • Provides direct, regular income for older adults in the informal sector.
• Old Pension Scheme (OPS):
  • Covered formal sector government employees.

b) Contributory Pension Schemes

• Atal Pension Yojana (APY), 2015:
  • Contributory scheme for individuals aged 18-40.
  • Flexible monthly, quarterly, or half-yearly contributions to accommodate informal sector income variability.
  • Government guarantees minimum pension if returns are insufficient.
• New Pension Scheme (NPS), 2004:
  • Replaced OPS for formal sector employees.
  • Corporate sector model extends coverage to private employees.
  • NPS 2.0: Allows 100% equity allocation and a flexible multiple scheme framework (MSF) for younger, high-risk investors.

Policy Reforms and Labour Codes

• Labour Codes redefine ‘wages’ to ensure basic pay ≥50% of total earnings.
• Pension, gratuity, and social security benefits are now calculated on a higher wage base, strengthening financial protection for workers.

Bridging Informal Sector Gaps

• Informal sector coverage: APY and e-SHRAM portal integrate informal workers into the social protection system.
  • e-SHRAM: National database for workers; facilitates registration and awareness of eligible schemes.
  • Challenges: Aadhaar-bank account linkage, digital literacy, and registration errors.
• Awareness gap: LASI data (2017-18) shows 42% of individuals aged 55+ unaware of NPS eligibility.

Challenges

• Digital literacy barriers: 63% of elderly unable to use the Internet.
• Fragmented access: Procedural requirements risk excluding the most vulnerable.
• Awareness and disbursement gaps: Limit full potential of social security schemes.

2. Indian Statistical Institute (ISI) Bill, 2025

Source: TH

Context

On September 25, 2025, the Ministry of Statistics and Programme Implementation (MoSPI) released the draft Indian Statistical Institute Bill, 2025, proposing to repeal the Indian Statistical Institute Act, 1959. The draft Bill has sparked widespread protests among students and academicians, who argue that it threatens ISI’s academic autonomy and governance framework.

About the Indian Statistical Institute (ISI)

• Founded in 1931 by P.C. Mahalanobis in Kolkata.
• Originally a registered society, later declared an Institution of National Importance under the 1959 Act.
• Key contributions:
  • Creation of the National Sample Survey Organisation (NSSO).
  • Produced eminent statisticians like C.R. Rao and S.R.S. Varadhan.
• Academic offerings: Statistics, Mathematics, Quantitative Economics, Computer Science, Cryptology, Library Science, Operations Research.
• Current strength: six centres across India.

Key Changes Proposed in the Draft ISI Bill, 2025

• ISI would transition from a registered society to a statutory body corporate.
• Governance changes: Authority shifts to a Board of Governors (BoG) dominated by government nominees.
• Revenue generation powers (Section 29): Fees, consultancy, sponsored research, and other sources.
• All appointments will now be controlled by the Union Government, raising concerns of political interference.

Banking and Finance

1. Rupee Breaches 90 Against US Dollar Amid External Pressures

Source: IE

Context

• The Indian rupee (₹) fell past the psychological 90 mark against the US dollar, hitting an intra-day low of ₹90.29 and settling at ₹90.19, marking a 5.5% depreciation since April 2025.
• The decline coincides with US reciprocal tariffs, high commodity prices, and foreign outflows.
• Foreign Portfolio Investors (FPIs) have pulled out $17.3 billion from the Indian equity market in 2025.

Key Drivers of Depreciation

• Trade and Tariff Pressures:
  • High 50% US tariffs on select Indian goods.
  • Rising gold and silver prices driving record imports, widening the trade deficit.
• Capital Outflows:
  • Net FPI sale of $800 million in the first three days of December.
  • Large private equity divestments during marquee IPOs.
• Commodity Imports:
  • Expensive fuel, metals, and electronics imports increase external demand for dollars.

Economic Implications

• Imports costlier: Fuels, electronics, and metals become more expensive, raising inflationary pressures.
• Overseas expenses rise: Education, travel, and medical costs increase.
• Exports and remittances benefit: Depreciation makes Indian exports more competitive and foreign remittances more valuable.
• Current Account Deficit management: Controlled depreciation can help RBI conserve reserves and support trade competitiveness.

Policy and Market Response

• RBI intervention: Limited action to cap sharp fall; rupee managed at ₹90.21.
• Controlled depreciation strategy: Authorities appear to allow the currency to find its equilibrium, prioritizing export competitiveness over short-term stabilization.
• Near-term volatility expected: Clarity on India–US trade talks and commodity price trends will determine the rupee’s trajectory.

2. Sebi Grants In-Principle Approval to Raajmarg Infra InvIT

Source: BS

Context

• Securities and Exchange Board of India (Sebi) has granted in-principle approval to Raajmarg Infra Investment Trust (RIIT) as an Infrastructure Investment Trust (InvIT).
• Final registration will be granted after RIIT meets specific conditions over the next six months.

Purpose and Objectives

• RIIT is designed to monetise National Highway assets.
• It aims to create a high-quality, long-term investment vehicle, primarily targeting retail and domestic investors.
• Focus on transparency, investor protection, and compliance standards under Sebi’s public InvIT framework.

Infrastructure Investment Trust (InvIT)

• An InvIT is a financial instrument that enables investment in income-generating infrastructure assets such as highways, power plants, ports, and renewable energy projects.
• It allows investors to earn returns from infrastructure projects without directly owning the physical assets.

Types of InvITs

1. Public InvITs: Accessible to retail investors; must comply with SEBI’s disclosure and governance norms.
2. Private InvITs: Limited to qualified institutional buyers (QIBs).

SEBI Criteria For InvITs:

Agriculture

1. World Soil Day: Grasslands, Not Trees, Are Key to India’s Climate Resilience

Source: TH

Context

India’s semi-arid grasslands and savannahs, often termed “wastelands” since colonial times, are now recognised as critical ecosystems for biodiversity, pastoral livelihoods, and climate resilience. Grasslands differ from forests as most biomass is underground, concentrated in deep, fibrous root systems that stabilize soils, enhance structure, and store carbon.

Historical Undervaluation

• During British colonial rule, policy favoured woody forests for timber, neglecting grasslands.
• Post-independence, the National Wastelands Development Board (1985) continued this framing, classifying diverse ecosystems—scrublands, degraded pastures, barren areas—as “wastelands.”
• Policy missteps led to afforestation of grasslands, often with invasive species like mesquite, degrading soil and pastoral livelihoods.

Soil and Carbon Benefits

• Grasslands enhance soil fertility through organic matter deposition and support diverse microbial communities.
• Below-ground carbon storage in grasslands is more stable than above-ground biomass in forests and resilient to fires.
• Studies from Malshiras (Maharashtra) and Banni Grassland (Gujarat) show:
  • CAMPA-funded grassland restoration increased soil organic carbon (SOC) by 21% in two years, 50% by three years.
  • Banni Grasslands store 27 metric tonnes of carbon per hectare up to 30 cm depth, making them among the most carbon-rich arid ecosystems globally.

Livelihoods and Community Role

• Grasslands provide pastoral livelihoods; rotational grazing, biomass management, and local stewardship maintain ecosystem health.
• Community-led restoration, as seen in Banni, demonstrates that sustainable governance and local involvement are critical to ecological and climate outcomes.

Policy Implications

• Afforestation initiatives alone cannot ensure climate resilience in drylands.
• Restoration and management of native grasslands should be prioritized, focusing on:
  • Removing invasive woody species
  • Reintroducing native perennial grasses
  • Supporting pastoralist communities in governance

2. Pesticides Management Bill

Source: BS

Context

The government has reopened consultations on the long-pending Pesticides Management Bill (PMB), aimed at modernising India’s pesticide regulatory framework.

About Pesticides Management Bill (PMB)

Objective

• To regulate the import, manufacture, sale, transport, distribution, and use of pesticides.
• Ensure safe, effective, and environmentally responsible pesticide management.

Key Focus Areas

• Registration & Licensing: Mandatory registration of all pesticides; licensing for manufacturers, distributors, and dealers.
• Labeling & Packaging: Clear instructions, safety warnings, and hazard information.
• Safety & Compliance: Regular inspections, monitoring, and strict penalties for violations.
• Ban & Restrictions: Authority to prohibit hazardous pesticides.
• Promotion of Eco-friendly Pesticides: Support for bio-pesticides and integrated pest management practices.

Key Industry Concerns:

Licensing and Regulatory Control

• The draft gives excessive discretion to state licensing officers, without uniform central guidelines.
• Potential issues include arbitrary or inconsistent implementation across states.
• Suggestions:
  • Define powers clearly.
  • Mandate uniform licensing terms.
  • Introduce a centralised digital system for issuing and renewing licences.
  • Allow interstate sales without new licences.
  • E-commerce sales to be regulated via licence verification and PIN-code restrictions.

Sampling and Inspection

• Section 40(1)(d) allows inspectors to take samples without representative or randomised selection, potentially enabling selective enforcement and corruption.
• Recommendation: Use rotational/randomised sampling, maintain digital records, and ensure disciplinary action for lapses.

Company Bans

• Section 35 permits bans on companies on vague grounds without scientific investigation, possibly for over a year.
• Proposal: Time-bound temporary bans (60–90 days) strictly based on scientific evidence; avoid bans triggered by trade disputes.

Data Protection and Innovation

• Regulatory Data Protection (RDP), allowing 5-year protection for new molecules, was present in the 2008 draft but dropped in current PMB.
• Absence of RDP may discourage research and development in new pesticides.

3. e-NAM 2.0

Source: BS

Context

The Centre’s electronic National Agriculture Market (e-NAM) 2.0, aimed at enhancing mandi operations, is facing data migration challenges in Rajasthan. Rajasthan and Tamil Nadu were selected as pilot states for the new platform.

electronic National Agriculture Market (e-NAM)

• e-NAM is a pan-India electronic trading platform for agricultural commodities, launched to create a unified national market for farmers.
• It connects mandis (agricultural markets) across states, enabling transparent price discovery and easier trade.

Objectives

1. Improve farmer income by providing better prices through competitive bidding.
2. Reduce intermediation and market fragmentation across states.
3. Facilitate direct access to buyers, assayers, and logistics providers.
4. Promote digital trading, transparency, and efficiency in agricultural markets.

Key Features (e-NAM 2.0)

• Bank account validation and e-KYC for farmers and traders using Aadhaar.
• Integration of assaying, logistics, and value-added services.
• Designed to be robust, scalable, user-friendly, and open-network compliant.
• Supports real-time trading, price discovery, and data-driven market insights.

Features of e-NAM 2.0

• Designed to be efficient, robust, user-friendly, inclusive, scalable, and open-network compliant.
• Key functionalities include:
  • Bank account validation
  • eKYC via Aadhaar
  • Onboarding of assaying, logistics, and other value-added service providers
• Objective: overcome logistical gaps, enable faster trade, reduce wastage, and improve mandi efficiency.

Facts To Remember

1. Suruchi and Sainyam make it a gold-silver finish for India

Suruchi Singh (245.1) clinched the women’s 10m air pistol gold, while compatriot Sainyam (243.3) took the silver as India made a big splash on the opening day of the season-ending ISSF World Cup Final in Doha.

2. Simranpreet Kaur claims women’s 25m pistol gold

Young Simranpreet Kaur overcame a challenging field to win the women’s 25m pistol gold, while men’s 50m rifle 3-position exponent Aishwary Pratap Tomar bagged a silver on ISSF World Cup Final debut.

3. ICAR Urges Universities to Launch Courses in Natural Farming

The Indian Council of Agricultural Research (ICAR) has urged all State and Central agricultural universities, as well as universities with agriculture departments, to introduce undergraduate and postgraduate courses and research programmes in natural farming.

4. UMEED Portal for Waqf Properties Officially Closed After Six-Month Window

The UMEED Central Portal for management of Waqf Properties has been officially closed for uploads on the 6th of this month.

5. Vice-President C P Radhakrishnan Launches Silver Jubilee Celebrations of Brahma Kumaris’ Om Shanti Retreat Centre

Vice President C P Radhakrishnan today launched Rajat Rashmiyan, formally marking the commencement of the silver jubilee celebrations of Brahma Kumaris’ Om Shanti Retreat Centre (ORC) in Gurugram, Haryana.

6. MNRE Denies Reports of Halting Renewable Energy Financing in India

The Ministry of New and Renewable Energy (MNRE) has clarified that no advisory has been issued to pause or halt new renewable energy financing, refuting reports of lending restrictions amid overcapacity concerns.

7. Rajnath Singh Inaugurates 125 Infrastructure Projects

Defence Minister, Rajnath Singh inaugurated 125 strategically significant infrastructure projects including Shyok Tunnel, across 7 States and 2 Union Territories constructed by The Border Roads Organisation (BRO).

8. Veteran actor Kalyan Chattopadhyay passes away at 82

Veteran actor Kalyan Chattopadhyay passed away at the age of 82. Recently, he had been hospitalised due to age‑related illness and breathed his last on Sunday night.

Daily Current Affairs Quiz
9 December, 2025

National Affairs

1. BNHS Scientist Parveen Shaikh Wins Sanctuary Wildlife Service Award 2025

Context

Parveen Shaikh, a scientist at the Bombay Natural History Society (BNHS), has been awarded the Sanctuary Wildlife Service Award 2025 for her innovative, community-led conservation efforts for the endangered Indian Skimmer in the National Chambal Sanctuary.

About the Sanctuary Wildlife Service Award

• Purpose: Recognises outstanding contributions to wildlife conservation in India.
• Instituted by: Sanctuary Nature Foundation
• Scope: Awards field practitioners, scientists, and community leaders who protect ecosystems and threatened species.

Parveen Shaikh’s Key Contributions

• Scientific Research & Monitoring
  • Conducted long-term studies (since 2016) on Indian Skimmer populations.
  • Documented nesting behaviour, survival challenges, and threats from river-level fluctuations and predators.
• ‘Nest Guardian’ Model
  • Developed a community-led protection system for nesting colonies on sandbars.
  • Trained locals to fence colonies, monitor nests, and deter predators.
  • Result: Nest survival increased from near zero to ~60%.
• Habitat & Threat Assessment
  • Analysed impacts of dams, altered river flows, and sandbar accessibility on nesting.
  • Proposed adaptive conservation measures aligned with river dynamics.

2. Defence Minister Inaugurates 125 BRO Projects Worth ₹5,000 Crore

Source: TH

Context

• The Defence Minister of India inaugurated 125 infrastructure projects of the Border Roads Organisation (BRO), marking the largest single-day launch in the organisation’s history.
• Total investment: ₹5,000 crore.

About Border Roads Organisation (BRO)

• Type: Premier road construction executive force under the Ministry of Defence.
• Established: 7 May 1960
• Parent Body: Border Roads Development Board (BRDB)
• Headquarters: New Delhi

Objectives

• Strategic: Meet the infrastructure needs of the Armed Forces efficiently and in a time-bound manner.
• Socio-economic: Support the development of remote border regions.

3. Vande Mataram

Source: PIB

Context

Special discussion in Lok Sabha commemorating 150 years of the National Song, Vande Mataram. PM Modi highlighted its role in inspiring India’s freedom struggle, uniting citizens, and promoting national pride.

Overview

• Meaning: “Vande Mataram” translates to “I bow to thee, Mother”.
• Origin: A poem written in Sanskrit and Bengali by Bankim Chandra Chatterjee in 1876, later included in his novel Anandamath (1882).
• Significance: Became a symbol of Indian nationalism and resistance during the freedom movement.

History

• Anandamath: Set during the Sannyasi Rebellion (18th century) in Bengal, portraying the struggle against oppressive rulers.
• Adoption in Freedom Movement: The song inspired revolutionaries and freedom fighters across India; sung in protests, rallies, and secret meetings.
• Emerged as a clarion call for freedom, especially during:
  • Partition of Bengal (1905)
  • Swadeshi Movement

Cultural & Legal Status

• National Song of India: Officially designated in 1950, distinct from the National Anthem (Jana Gana Mana).
• Themes: Personifies India as a mother goddess, emphasizing patriotism, unity, and devotion.
• Controversies: Only the first two stanzas are recognized as the National Song; some other verses faced objections for religious connotations.

4. India Plans Unified National Customs Platform

Source: BS

Context

• The Union Finance Ministry is planning to digitise and integrate India’s Customs systems to simplify processes and reduce delays.
• Current systems—ICEGATE, RMS, and ICES—operate on different software platforms and do not communicate fully, causing duplication and inefficiency.

Existing Systems

• ICEGATE (Indian Customs Electronic Gateway): Enables e-filing and online customs payments for traders.
• RMS (Risk Management System): Automates risk-based scrutiny of shipments.
• ICES (Indian Customs Electronic Data Interchange System): Handles backend assessment and clearance workflows at Customs locations.

Proposed Integration

• All three systems will be merged into a single unified national Customs platform.
• Expected benefits:
  • Streamlined customs clearance processes
  • Reduced paperwork and duplication
  • Faster and more transparent trade procedures
  • Improved Ease of Doing Business and global trade rankings

4. National Intelligence Grid (NATGRID)

Source: TH

Context

NATGRID is receiving around 45,000 data requests per month, reflecting increased reliance by Central agencies and State police for real-time intelligence.

About NATGRID

• Type: Real-time integrated intelligence platform under the Ministry of Home Affairs (MHA).
• Conceptualised: 2009, in the aftermath of the 26/11 Mumbai attacks.
• Operationalised: 2023, platform opened to a wider range of agencies.

Aim

1. Provide seamless, real-time intelligence by integrating diverse datasets.
2. Eliminate delays caused by agencies requesting data separately from multiple sources.

Functions

• Data Integration Across Databases: Connects Aadhaar, driving licences, bank records, telecom data, airline PNRs, immigration logs, and social media activity.
• Secure Access for Investigative Agencies: Now allows access up to SP-rank officers, ensuring confidentiality.
• Supports Intelligence & Investigation: Enables predictive intelligence, tracking suspicious behaviour, and analysing crime patterns without needing an FIR.
• Inter-Agency Coordination: Facilitates cooperation among IB, RAW, NIA, ED, FIU, DRI, NCB, and State police.
• Data Security & Cyber Protection: Employs advanced cybersecurity protocols to protect sensitive information.

5. Eturnagaram Wildlife Sanctuary to Launch Safari Services in Telangana

Source: TNIE

Context

Telangana’s Mulugu forest officials are set to introduce safari services inside Eturnagaram Wildlife Sanctuary, creating new eco-tourism and livelihood opportunities for local communities.

About Eturnagaram Wildlife Sanctuary

• Location: Mulugu District, Telangana, along the Godavari River, near the Telangana–Maharashtra–Chhattisgarh tri-border region.
• Established: 30 January 1952; Notified: 7 July 1999 under wildlife protection rules.
• Cultural Heritage: Hosts Asia’s largest tribal congregation, the Medaram Jatara, every two years at Tadvai. Also contains ancient human dwellings and Stone Age sites like Rakshasa Gullu.

Biodiversity

• Fauna: Tigers, leopards, gaurs, sambar, chital, blackbuck, nilgai, wolves, pythons, antelopes.
• Flora: Dominated by Teak (Tectona grandis) and mixed dry deciduous forests.
• Landscape: Deccan dry deciduous forest zone with dense forest patches, riverine tracks, and undulating terrain.

6. Corporate Average Fuel-Efficiency (CAFE)

Source: Mint

Two global transport and road-safety organisations—the International Council on Clean Transportation (ICCT) and the International Road Federation (IRF)—have separately asked the Indian government to reassess further concessions under the upcoming Corporate Average Fuel-Efficiency (CAFE-III) norms.
The auto industry has argued that the revised norms remain too stringent and may affect sectoral viability.

What Are CAFE Norms?

• Corporate Average Fuel-Efficiency (CAFE) norms set mandatory limits on average CO₂ emissions per kilometre across an automaker’s entire fleet.
• It is a regulatory standard aimed at improving the average fuel efficiency of vehicles produced by an automaker.
• Primarily used to reduce fuel consumption, lower greenhouse gas emissions, and promote energy efficiency in the transport sector.
• Stricter norms push manufacturers toward cleaner technologies, including EVs, hybrids, and more efficient ICE models.
• India: Implemented through Bharat Stage (BS) emission norms and CAFE regulations, effective from April 2022 for passenger cars and commercial vehicles.

Purpose

• Energy Security: Reduces dependence on fossil fuels by lowering fuel consumption.
• Environmental Protection: Cuts greenhouse gas (GHG) emissions from vehicles.
• Technological Advancement: Encourages automakers to invest in fuel-efficient technologies, hybrid and electric vehicles.
• Economic Benefits: Lower fuel consumption reduces costs for consumers.

Banking and Finance

1. RBI Directs Weekly Updates of Credit Information Reports

Source: ET

Context

• The Reserve Bank of India (RBI) has proposed that Credit Institutions (CIs) and Credit Information Companies (CICs) update their records weekly instead of the existing fortnightly schedule.
• This move aims to improve the accuracy and timeliness of credit information for lending and risk assessment.

Key Directives

• Frequency of Updates
  • Weekly submissions on: 7th, 14th, 21st, 28th, and the last day of each month.
  • Previously, updates were made fortnightly.
• Type of Data for Weekly Submissions
  • Incremental data only, including:
    • Newly opened accounts
    • Accounts with a change in classification of assets (e.g., standard, SMA, or NPA)
    • Other updates impacting credit assessment
• Full Credit Report Submission
  • CIs must submit the complete credit information record within three days after the end of each month.

Rationale

• Enhanced Accuracy: Reflects the most recent credit activity, supporting better credit decisions.
• Timely Risk Assessment: Ensures CIs have up-to-date data for underwriting loans and monitoring risk.
• System Efficiency: Facilitates faster error rectification and data submission.

2. RBI Monetary Policy Outlook: December 2025

Policy Action

• Repo Rate: Reduced by 25 basis points → 5.25%
• Standing Deposit Facility (SDF) Rate: 5.00%
• Marginal Standing Facility (MSF) Rate: 5.50%
• Bank Rate: 5.50%
• Fixed Reverse Repo Rate: 3.35%

Purpose of Policy Action:

• Boost liquidity in the banking system
• Support economic growth amid benign inflation
• Maintain flexibility for future rate adjustments

Explanation of Key RBI Rates

3. IDFC FIRST Bank Launches Upgraded “FIRST WOW! Credit Card”

Source: BL

Overview

• Product: Upgraded version of FIRST WOW! Credit Card, backed by a fixed deposit (FD).
• Eligibility: Individuals aged 18 and above
• FD Requirement: Minimum ₹20,000

Key Features

• Dual Card Facility:
  • Physical Mastercard + UPI-enabled RuPay virtual credit card
  • Both cards share the same credit limit and a single consolidated statement
• International Usage:
  • Zero foreign exchange (Fx) markup on all international transactions

4. SEBI Launches PaRRVA to Strengthen Investor Protection

Source: Mint

Context

On 8 December 2025, the Securities and Exchange Board of India (SEBI) launched the Past Risk and Return Verification Agency (PaRRVA) to curb mis-selling of financial products and enhance supervision of intermediaries, including social media “finfluencers.”

About PaRRVA:

• Full Form: Past Risk and Return Verification Agency
• Purpose: To provide verified performance records of investment products and services for investors and ensure accountability of intermediaries.
• Mechanism: Uses digital audit trails and standardised reporting to validate historical returns and risks of financial products.
• Scope: SEBI-regulated intermediaries and social media-based financial advisors.

Key Features:

• Ensures credible and consistent performance reporting.
• Enables investors to access verified track records of products and services.
• Provides regulators with digital audit trails for monitoring and enforcement.
• Standardises reporting to reduce misrepresentation and exaggeration of returns.
• Allows intermediaries to present genuine historical data, strengthening transparency.

Significance:

• Investor Protection: Prevents mis-selling and misleading claims by finfluencers or unregistered entities.
• Market Integrity: Strengthens accountability of brokers, mutual funds, and other intermediaries.
• Digital Regulation: Enables SEBI to monitor online financial advice and take corrective action.
• Responsible Investing: Encourages informed investment decisions based on verified data.

Background:

• SEBI has directed brokers and mutual funds to discontinue ties with unauthorised social media advisors.
• The initiative aligns with SEBI’s broader mandate to enhance transparency, reduce fraud, and promote fair practices in financial markets.

5. SEBI Introduces Framework for AI-Only Funds and Large Value Funds (LVFs)

Source: Mint

Context

On 8 December 2025, the Securities and Exchange Board of India (SEBI) issued a circular formalising the process for existing Alternative Investment Funds (AIFs) to convert into Accredited Investor-only funds (AI-only funds) or Large Value Funds (LVFs). The move follows amendments to the SEBI (AIF) Regulations, 2012, notified on 19 November 2025.

Key Highlights of the Circular:

• Conversion & Launch: Existing AIFs can convert schemes into AI-only or LVF schemes; new schemes can be launched under these categories.
• Naming Requirement: All schemes must explicitly include ‘AI-only fund’ or ‘LVF’ in their name.
• Investor Consent: Existing schemes must obtain consent from all investors to migrate.
• Effective Date: Immediate; mandatory for all fresh launches and conversions.

About LVFs and AI-only Funds:

• Accredited Investor (AI) Status: Investors must qualify as accredited at onboarding; once accredited, status remains for the life of the scheme even if criteria are later lost.
• LVF Specifics:
  • Minimum investment: ₹25 crore
  • Lightened regulatory requirements and greater operational flexibility compared to regular AIFs
  • Exempt from standard placement memorandum template
  • Exempt from annual audit of placement memorandum
  • No investor waiver required for these exemptions
• Operational Cap: Maximum scheme extension for AI-only funds and LVFs is five years, including prior extensions.

Significance:

• Provides regulatory sandbox for AIFs to experiment with new fund structures.
• Enhances operational flexibility for large and sophisticated investors.
• Encourages accreditation and investor sophistication in the AIF ecosystem.
• Reduces delays in fund placement and audit processes, especially for high-value funds.

Agriculture

1. Food Inflation Dips

Source: IE

Context

The sowing of rabi crops—including wheat, mustard, chana, masoor, and maize—has been around 10% higher than last year. This reflects positive developments in rainfall, government support, and crop price incentives.

Key Drivers of Increased Rabi Sowing

• Surplus Rainfall & Soil Moisture
  • Extended southwest monsoon filled reservoirs and recharged aquifers.
  • Bolstered soil moisture, facilitating timely sowing.
• Recovery from Kharif Losses
  • Farmers who faced crop damage in kharif are compensating by planting more rabi crops.
• Government MSP Incentives
  • Increased minimum support prices, especially for wheat, have incentivized higher sowing.
• Favourable Weather Outlook
  • World Meteorological Organisation predicts a 55% chance of a weak La Niña, potentially causing a colder and longer winter, beneficial for rabi crops.

Implications for Food Inflation and Economy

• Food inflation relief:
  • Retail food inflation has remained in negative or low single digits since April 2025.
  • Eases household spending pressure and boosts consumption.
• Monetary policy impact:
  • Facilitates RBI rate cuts from 6.50% to 5.25% since February 2025.
  • Along with income tax and GST cuts, contributes to improved economic sentiment.
• Supply stabilization:
  • Bumper rabi harvest expected to prevent supply-induced price spikes in essential commodities like wheat and sugar.

Challenges: Farm Income and Price Volatility

• Deflationary pressures:
  • Agriculture GDP growth at constant prices: 3.7% (Apr-Jun) and 3.5% (Jul-Sep) 2025.
  • At current prices: 3.2% and 1.8%, indicating price declines.
• Impact on farmers:
  • Low/negative inflation discourages planting and long-term investments.
  • Extreme price volatility harms both producers and consumers.
• Structural concerns:
  • Agriculture has lagged behind other sectors in reforms, contributing to persistent instability in farm incomes.

Significance

• Positive rabi sowing trends support food security and stabilize inflation.
• Policymakers must balance price stability and farmer incentives to ensure sustainable agricultural growth.
• Highlights the need for structural reforms in the farm sector to mitigate volatility and encourage investment.

2. Agri Business Summit 2025

Context

At the Agri Business Summit 2025, NITI Aayog and the Ministry of Agriculture shared projections and policy priorities for India’s agricultural sector. The focus was on farm growth, soil health, and sustainable farming practices essential for achieving Viksit Bharat targets.

Farm Growth Outlook for 2025-26

1. NITI Aayog Projects 4% Agricultural Growth

• Farm sector expected to grow 4% in FY 2025-26, up from 3.5% in FY 2024-25.
• Growth driven primarily by:
  • Fisheries
  • Livestock sector
• Agriculture continues to anchor rural employment and food security.

2. Growth Needed for Viksit Bharat Goal

NITI Aayog Member Ramesh Chand highlighted:

• India needs 5% annual agricultural growth to become Viksit Bharat (Developed Nation) by 2042.
• If agricultural growth remains around 4.6%, the target shifts to 2047–48.
• Sustained higher farm growth is essential for:
  • raising farmer incomes
  • strengthening rural demand
  • supporting overall GDP expansion

Soil Health & Fertiliser Use

1. Balanced Fertiliser Use to Prevent Soil Degradation

Agriculture Minister Shivraj Singh Chouhan stressed:

• Overuse and imbalanced application of fertilisers (high urea dependence) are degrading soil quality.
• Balanced N-P-K ratio is vital for:
  • maintaining soil fertility
  • ensuring long-term productivity
  • preventing nutrient mining

2. Implications of Soil Degradation

• Declining soil health threatens:
  • crop yields
  • food security
  • sustainability of small and marginal farmers
• Excessive nitrogen use also leads to:
  • groundwater contamination
  • greenhouse gas emissions (nitrous oxide)

Sustainable Farming Practices

1. Integrated Farming Systems (IFS)

Chouhan emphasised promoting integrated farming, especially for small farmers:

• Combines crops, livestock, fisheries, horticulture.
• Enhances:
  • income diversification
  • risk resilience
  • resource recycling (e.g., manure, crop residues)
• Particularly suitable for small landholdings, which dominate Indian agriculture.

2. Long-Term Vision

• Strengthening soil health + integrated farming = foundation for:
  • climate-resilient agriculture
  • improved productivity
  • reduced input costs for farmers

Facts To Remember

1 Renowned socialist leader Baba Adhav, 95, passes away

Renowned socialist leader Baba Adhav, 95, passed away at a hospital in Pune night.

2. Bangladesh downs Austria, wins Challenger Trophy

Bangladesh secured the Challenger Trophy at the FIH Junior Men’s World Cup 2025 after a 5-4 win over Austria.

3. Zoravar finishes seventh in India’s best-ever campaign

Zorawar Singh Sandhu finished seventh in the men’s trap final with seven hits in first 10 targets as India concluded an impressive campaign at the ISSF World Cup Final with six medals, including two gold.

4. Declining MGNREGA Dependence Signals Improving Rural Economy

Demand for work under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has shown a sharp and sustained decline, suggesting improving economic conditions in rural India. In October 2025, households seeking MGNREGA work fell 35.3% year-on-year, marking one of the steepest mid-year drops in recent years.

5. Kashi Tamil Sangamam 4.0 delegates engage students at Bangali Tola Inter College

As part of this year’s theme, Tamil Karkalam, the delegates of Kashi Tamil Sangamam 4.0 yesterday taught Tamil and engaged with the students at Bangali Tola Inter College in Varanasi - strengthening the bridge of language and culture between Tamil Nadu and Kashi.

6. President Droupadi Murmu confers National Handicrafts Awards in New Delhi

President Droupadi Murmu has conferred the National Handicrafts Awards for 2023 and 2024 in New Delhi. These prestigious national accolades celebrate exceptional artistic mastery and underscore the Government’s commitment to preserving and promoting India’s rich and diverse handicraft heritage.

7. MoS Kirti Vardhan Singh to attend UNEA in Kenya

Minister of State for Environment, Forest and Climate Change, Kirti Vardhan Singh, will attend the 7th session of the United Nations Environment Assembly (UNEA) in Nairobi, Kenya.

8. 8th Edition of Smart India Hackathon 2025 Begins: MIC

The 8th edition of the Smart India Hackathon (SIH) 2025, announced by the Ministry of Education’s Innovation Cell (MIC), Government of India, in collaboration with AICTE, began today across 60 nodal centres in the country.

9. PM Modi Welcomes 20th UNESCO Session on Intangible Cultural Heritage in India

Prime Minister Narendra Modi today expressed happiness at the commencement of the 20th session of UNESCO’s Committee on Intangible Cultural Heritage in the country.

Daily Current Affairs Quiz
10 December, 2025

National Affairs

1. Aditya‑L1

Source: TH

Context

The May 2024 solar storm, called Gannon’s storm, was unusually powerful due to collision of two coronal mass ejections (CMEs) en route to Earth. These collisions caused a rare internal magnetic reconnection within the CMEs, intensifying their impact on Earth’s magnetosphere.

About Aditya‑L1

• Launch & Mission: Launched by ISRO in September 2023, Aditya‑L1 is India’s first dedicated mission to study the Sun.
• Launch Vehicle: PSLV‑XL (Polar Satellite Launch Vehicle – XL configuration).
• Launch Site: Satish Dhawan Space Centre, Sriharikota, Andhra Pradesh.
• Position: Placed at Lagrange Point 1 (L1), about 1.5 million km from Earth towards the Sun, providing an uninterrupted view of solar activity.
• Objective: Understand solar activity and its impact on space weather, climate, and Earth’s magnetosphere.

Key Findings

• Magnetic reconnection: Twisted magnetic field lines inside the CMEs snapped and rejoined in new configurations, increasing storm intensity.
• Scale: The reconnection region measured 1.3 million km across — nearly 100 times the Earth’s diameter.
• Multi-satellite observation: Aditya‑L1, alongside six U.S. spacecraft, provided 3‑D magnetic field mapping, confirming the reconnection process.
• Energetic particle bursts: Recorded by Aditya‑L1’s instruments, these bursts explained the storm’s unexpected strength.

2. India, France & UAE Launch Trilateral Air Drill Over Arabian Sea

Source: TOI

Context

On 10 December 2025, the Indian Air Force (IAF), in partnership with the French Air and Space Force and the UAE Air Force, commenced a trilateral air combat exercise over the Arabian Sea, continuing through 11 December. The exercise zone spans roughly 200 nautical miles from Karachi, as per official Notices to Airmen (NOTAMs).

Participating Assets

• India: Sukhoi‑30MKI, Jaguar fighter jets, IL‑78 mid‑air refuellers, AEW&C aircraft, operating from western airbases including Jamnagar and Naliya (Gujarat).
• France: Rafale fighter jets.
• UAE: Mirage fighter jets, operating from Al Dhafra Airbase.

Objectives & Significance

• Military Interoperability: Enhance joint operations, coordination, and combat readiness across air and maritime domains.
• Strategic Signaling: Demonstrates collective preparedness in the Indo-Pacific and Indian Ocean region.
• Strengthened Partnerships: Reinforces the trilateral defence framework established in 2022, covering defence, technology, energy, and environment cooperation.
• Historical Context: Builds on previous trilateral exercises, including Desert Knight 2024, underscoring continuity in joint operational engagements.

3. India-Nepal Joint Army Exercise SURYAKIRAN-XIX

Source: TH

Context

The 19th edition of the India-Nepal joint military exercise, SURYAKIRAN-XIX, concluded at Pithoragarh, Uttarakhand. The exercise reflects long-standing military cooperation and aims to enhance regional security and counter-terrorism preparedness.

Key Highlights of the Exercise

• Validation Exercise: A two-day battalion-level exercise at the Foreign Training Node, witnessed and validated by DGMOs of India and Nepal, Lieutenant General Manish Luthra and Major General Anup Jung Thapa.
• Focus Areas: Joint tactics, techniques, and procedures for counter-terrorism operations under Chapter VII of the UN Charter.
• Technological Integration: Utilised ISR drones, precision-targeting systems, advanced day/night weapon sights, AI-enabled surveillance feeds, unmanned operational/logistics platforms, and secure battlefield communication systems.

4. EARTH Summit 2025

Source: TNIE

Context

Union Home and Cooperation Minister Amit Shah inaugurated the EARTH Summit 2025 at Mahatma Mandir, Gandhinagar. The summit unveiled over 13 digital services under the Sahakar Sarathi initiative, aimed at strengthening rural economy, cooperatives, and farmer empowerment.

Key Highlights:

New Digital Services under Sahakar Sarathi

• Digi KCC: Digital Kisan Credit Card for easy credit access to farmers.
• Campaign Sarathi & Website Sarathi: Tools for cooperative campaigns and information dissemination.
• Cooperative Governance Index: Assessing performance of cooperative institutions.
• ePACS: Digital platform for PACS operations.
• World’s Largest Grain Storage Application: For real-time storage tracking.
• Shiksha Sarathi & Sarathi Technology Forum: Education and technology support for cooperatives.
• Sahakar Taxi: Cooperative taxi network with 51,000 registered drivers.
• Cooperative Insurance: Coverage in health, life, agriculture, and accident sectors.

Strategic Objectives

• Establish cooperative institutions in every Panchayat.
• Expand cooperative membership to 50 crore people.
• Increase cooperatives’ contribution to India’s GDP.
• Develop a three-part summit series culminating in a national policy framework addressing rural development.

Key Models & Initiatives

• Gujarat’s ‘Cooperation Among Cooperatives’ model:
  • Integrated credit, markets, dairies, PACS under district-level umbrellas.
  • Strengthened cooperative credit fivefold; serves as a model for Priority Sector Lending.
• Digital & Technological Integration:
  • NABARD initiatives for modern banking, real-time tracking, e-KYC, and appraisal services.
  • e-KCC enables farmer credit similar to international standards.
• Circular Economy in Dairy: Gujarat model to be replicated nationwide.
• Organic Farming Promotion: 49 lakh farmers engaged in certified organic production; 40+ products available online with lab support for exports and direct payments.

Banking and Finance

1. RBI Finalises Bank‑Group Guidelines

Source: ET

Context

The Reserve Bank of India (RBI) has released its final guidelines for bank groups, aiming to strengthen structural supervision while allowing business flexibility. These apply to commercial banks and their subsidiaries, NBFCs, and other group entities. The rules are a revision of the October 2024 draft, which had been criticized for being overly restrictive.

Key Highlights

• Overlapping Business Allowed: Unlike the draft, banks and their group entities can now engage in overlapping lending activities, subject to board approval.
• Prudential Safeguards Retained: Scale-based norms for NBFCs, limits on loans and exposures, and a 20% cap on ARC holdings ensure risk management.
• Compliance Timeline: Bank groups must comply by 31 March 2028, giving time to adjust structures and governance.

Regulatory Framework

• An NBFC is required to register with RBI if:
  • Financial assets constitute more than 50% of total assets, and
  • Income from financial assets is at least 50% of gross income.
• Core investment companies with ≥90% of net assets in group companies are also treated as NBFCs.
• RBI has historically recommended one business per entity to ensure clear ownership and accountability, easing supervisory and compliance burdens.

Why It Matters

• Reduces Disruption: Avoids forced restructuring of large groups, protecting ~55% of sectoral advances.
• Maintains Flexibility: Groups can leverage synergies across banking, NBFC, and housing finance arms.
• Controls Systemic Risk: Prudential norms ensure uniform supervision across all group entities.

2. Airpay Gets RBI Nod for International Payments

Source: BS

Context

Airpay Payment Services has received RBI approval to operate as a cross-border payment aggregator, completing its authorizations under the unified Payment Aggregator (PA) framework.

Full-stack PA License: Airpay can now operate as a payment aggregator across:

• Online payments
• Physical (POS) payments
• Cross-border transactions

What Are International Payments?

International payments (cross-border payments) refer to money transfers between entities in different countries. These transactions can be:

• Business-to-Business (B2B): Companies paying suppliers abroad.
• Business-to-Consumer (B2C): Companies paying freelancers or employees overseas.
• Consumer-to-Business (C2B): Individuals paying foreign merchants (e.g., online shopping).
• Remittances: Money sent by individuals to family in another country.

International payments are more complex than domestic ones due to foreign exchange regulations, currency conversion, settlement systems, anti-money-laundering (AML) norms, and compliance with international banking standards.

RBI Criteria to Operate as an International Payments Aggregator

To provide cross-border payment services, the RBI requires entities to:

• Obtain PA License: Must already be licensed as a Payment Aggregator (PA) under the Unified Payments Interface (UPI) / PA framework.
• Foreign Exchange Compliance: Adhere to Foreign Exchange Management Act (FEMA), 1999 for currency conversion and outward/inward remittances.
• Risk & AML Framework: Implement robust fraud detection, anti-money laundering (AML), and Know Your Customer (KYC) systems.
• Capital Adequacy & Governance: Maintain adequate capital buffers, net-worth requirements, and strong corporate governance.
• Technology & Security Standards: Ensure secure, real-time, and interoperable payment infrastructure, protecting sensitive financial data.

3. IMF Recognises India’s UPI as World’s Largest Real-Time Payment System

Source: FE

Context

The International Monetary Fund (IMF) has officially recognised India’s Unified Payments Interface (UPI) as the world’s largest real-time retail payment system by transaction volume, highlighting India’s leadership in digital payments.

About UPI

• What It Is:
  • India’s instant, real-time, interoperable payments system enabling bank-to-bank transfers via mobile phones.
• Operator & Regulator:
  • Operated by NPCI (National Payments Corporation of India)
  • Regulated by RBI (Reserve Bank of India)
• Origin:
  • Conceptualised to unify fragmented payment systems into a single platform.
  • Launched as a pilot in April 2016 under RBI Governor Raghuram Rajan.

Key Features of UPI

• Real-time Payments: Transfers completed in under 5 seconds, 24×7.
• Interoperability: Works across banks, apps, QR codes, and merchants.
• Low-cost / Zero MDR: Encourages mass adoption among consumers and small businesses.
• Scalable Architecture: Handles billions of transactions per month.
• Versatility: Supports P2P, P2M, autopay, credit lines, RuPay linkage, and international acceptance.

4. Sebi Overhauls Merchant Banker Rules

Source: BS

Context

The Securities and Exchange Board of India (Sebi) has introduced a comprehensive overhaul of merchant banker (MB) regulations, focusing on capital adequacy, net worth, revenue requirements, and operational flexibility. The reforms aim to strengthen financial stability, enhance risk management, and improve ease of doing business in India’s capital markets.

What is a Merchant Banker?

A merchant banker (MB) is a financial intermediary or institution that provides specialized services to corporates, governments, and high-net-worth clients in raising capital and managing financial transactions. Unlike commercial banks, merchant bankers primarily focus on capital market activities, advisory, and corporate finance, rather than deposit-taking.

Key Changes in Merchant Banker Regulations

1. Capital Adequacy Framework
   • Merchant bankers must maintain a minimum net worth based on their activity category:
     • Category 1: Minimum Rs 50 crore net worth; can undertake all permitted activities.
     • Category 2: Minimum Rs 10 crore net worth; can undertake all activities except managing main-board equity issues.
   • Liquid Net Worth Requirement: At least 25% of the minimum net worth must be liquid at all times.
   • Underwriting Limit: Capped at 20 times the merchant banker’s liquid net worth.
2. Revenue Requirements
   • Category 1 MBs: Minimum Rs 12.5 crore cumulative revenue from permitted activities over the last three financial years.
   • Category 2 MBs: Minimum Rs 2.5 crore cumulative revenue.
   • Exemptions: Revenue criteria do not apply to MBs managing only issuance of non-convertible securities, securitized debt instruments, security receipts, municipal debt, commercial papers, REITs, and InvITs.
3. Flexibility to Undertake Non-Regulated Activities
   • MBs can engage in fee-based, non-fund activities in sectors not regulated by Sebi or any other financial sector regulator (FSR), subject to conditions.
   • Initial Sebi plan to hive off non-regulated activities into a separate legal entity was relaxed after market feedback.
4. Enhanced Transparency in ESOP & Sweat Equity Valuation
   • Sebi replaced merchant bankers with independent registered valuers for employee compensation-linked valuations, including ESOPs and sweat equity shares.
   • Aims to strengthen fairness and transparency in employee reward mechanisms.

Rationale Behind the Changes

• Risk Management: Ensure MBs are financially strong to manage underwriting and other market risks.
• Financial Stability: Limit over-leveraging and exposure of MBs to capital market volatility.
• Ease of Doing Business: Allow MBs operational flexibility to diversify into permissible financial services activities.
• Market Confidence: Strengthen investor protection and reliability of ESOP/share-linked valuations.

Implications for Market Participants

• Large MBs (Category 1): Greater autonomy and ability to manage multiple capital market activities.
• Smaller MBs (Category 2): Limited scope for main-board equity issuances but can expand into other permitted activities.
• Investors & Employees: More reliable and transparent valuation of ESOPs and sweat equity.
• Market Dynamics: Expected to encourage consolidation, improved compliance, and stronger financial performance of MBs.

Agriculture

1. Tamil Nadu Launches Invasive-Species Eradication Drive: Senna spectabilis

Source: TNIE

Context

Tamil Nadu has launched one of India’s largest invasive-species eradication initiatives aimed at completely removing Senna spectabilis from all forest divisions by March 2026. The drive targets restoration of forest biodiversity and ecosystem health.

About Senna spectabilis

• What It Is:
  • A fast-growing, yellow-flowering tree from the legume family (Fabaceae). Widely planted as an ornamental or shade tree but now considered a highly invasive alien species in India, Africa, and parts of Asia.
• Origin:
  • Native to South & Central America – Brazil, Argentina, Paraguay, Bolivia, Peru, Venezuela.
    In India, invasive in Nilgiris, Mudumalai, Sathyamangalam, Anaikatty, and other Western Ghats ecosystems.
• Habitat:
  • Thrives in dry to moist deciduous forests, disturbed woodlands, and savannahs.
    Prefers full sunlight, adapts to poor soils, and spreads easily through prolific seeds.
• Key Characteristics:
  • Height: 7–18 m, forming dense canopies
  • Bright yellow flowers and long pods (15–30 cm) with hard-coated seeds
  • Leaves exhibit nyctinasty – close at night, open at dawn
  • Traditionally used for fuelwood, shade, ornamental planting, and small implements
  • IUCN Status: Least Concern

Ecological Implications

• Forms dense monocultures, suppressing native vegetation and reducing biodiversity.
• Reduces fodder availability for elephants, deer, and herbivores, impacting wildlife movement.
• Increases forest fire risk due to accumulation of dry biomass.
• Delays natural forest regeneration, threatening long-term ecosystem resilience.

2. India–Brazil MoU on Dairy Cattle & Buffalo Genomics

Source: BL

Context

India and Brazil signed a tripartite MoU to advance dairy cattle and buffalo genomics through a first-of-its-kind cross-continental genetic improvement program. The agreement was signed at the Embassy of India in Brasília between:

• Brazil: Embrapa (state-owned agricultural research under MAPA), Fazenda Floresta & DNAMark
• India: Leads Genetics Pvt. Ltd, B.L. Kamdhenu Farms Ltd, Leads Connect Services Pvt. Ltd

This marks Embrapa’s first private partnership in India, highlighting strategic convergence in livestock innovation, food security, and cattle genetics leadership.

Objectives

• Establish a state-of-the-art Cattle & Buffalo Genomics Laboratory in India.
• Combine Brazil’s advanced genetic technologies with India’s dairy ecosystem, indigenous breeds, and modern agri-tech infrastructure.
• Focus on key species: Bos indicus, Bos taurus, Bubalus bubalis.
• Enhance milk production, reproductive efficiency, and climate resilience of Indian livestock.

Key Features

• First B2G (Business-to-Government) Collaboration between India and Brazil in bovine genomics.
• Initial implementation in Uttar Pradesh, India’s largest milk-producing state.
• Integration of tropical dairy genetics and climate-resilient breeds.
• Scientific infrastructure:
  • B.L. Kamdhenu Farms’ 10,000-head Integrated Model Dairy Farm, Bareilly
  • Multi-location Centre of Excellence for Indigenous Cattle Genetics & Circular Dairy Economy
  • Genomics labs, IVF facilities, and farmer networks

Significance

• Livestock Productivity: Improved milk yield and reproductive performance.
• Farmer Empowerment: Data-driven breeding and circular dairy economy practices.
• Scientific Excellence: Strengthens India’s capacity in genomics and sustainable dairy innovation.
• Global Collaboration: Positions India and Brazil as leaders in tropical dairy genetics.

3. Draft Seeds Bill 2025

What Is the Draft Seeds Bill 2025?

The Draft Seeds Bill 2025 aims to modernize India’s seed sector by replacing the outdated Seeds Act, 1966. It proposes a unified national framework for regulating seed production, distribution, and quality, ensuring that farmers receive certified, high-quality seeds. Key features include:

• Centralized Licensing & Registration: Seed producers must obtain a pan-India registration, replacing separate state-level approvals.
• Quality Assurance: Mandatory labelling with germination rates, purity, and seed health.
• Penalties for Violations: Fines and imprisonment for sale of substandard or spurious seeds.
• National Seed Register: Creation of a central database of registered seed varieties.

The Bill intends to ensure traceability, eliminate fake seeds, and promote uniform standards acrouss India.

Key Concerns Raised by Experts and States

• Weakening of State Powers
  • States traditionally oversee seed registration, licensing, and quality control.
  • Centralized accreditation may override state authority, ignoring local agro-climatic needs and biodiversity.
• Lack of Farmer Compensation
  • While penalties apply to seed companies, the Bill does not guarantee farmers compensation for crop losses due to defective seeds.
  • Farmers may have to rely on courts, which is time-consuming and costly.
• Impact on Traditional & Farmer-Saved Seeds
  • Farmer-saved and community seeds may face restrictions if sold commercially under brand names.
  • Could marginalize indigenous seed varieties and reduce agrobiodiversity.
• Corporate Dominance
  • Pan-India licensing benefits large seed companies, potentially sidelining small and regional producers.
  • Risk of oligopolies in the seed market.
• Weak Price Regulation
  • Seed pricing intervention is limited to emergency situations, leaving farmers vulnerable to price spikes.
• Inadequate Grievance Mechanisms
  • No statutory mechanism for traceability, recall, or compensation for seed failures, limiting accountability.

Implications for Farmers and Agriculture

• Increased Vulnerability: Farmers may face losses from substandard seeds without guaranteed compensation.
• Erosion of Seed Sovereignty: Traditional, local, and farmer-saved seeds may lose relevance.
• Risk to Biodiversity: Dependence on corporate seeds could reduce crop diversity.
• State Autonomy Undermined: Uniform central rules may ignore local agro-ecological conditions.
• Higher Seed Costs: Emergency-only price regulation may increase financial burden on farmers.

Suggestions by Experts for Improvement

• Introduce a time-bound compensation mechanism for farmers affected by seed failures.
• Restore state-level regulatory powers to maintain federal balance.
• Protect community and farmer-saved seeds to preserve biodiversity.
• Ensure permanent price regulation mechanisms, not just emergency controls.
• Implement a traceability and recall framework for defective seeds.

Facts To Remember

1. 2nd WHO Global Summit on Traditional Medicine, 2025

India has officially started the countdown to the 2nd WHO Global Summit on Traditional Medicine, scheduled from 17–19 December 2025 at Bharat Mandapam, New Delhi. The summit aims to promote the scientific validation, policy integration, and global collaboration in traditional and complementary medicine.

2. PFC and SIDBI Scraps ₹11,500-Crore Bond Issuances Amid Rising Yields

State-run lenders Power Finance Corporation (PFC) and Small Industries Development Bank of India (SIDBI) withdrew planned bond issuances totaling ₹11,500 crore after investor bids came at yields higher than expected. This comes despite the 25-bps rate cut announced by the Reserve Bank of India (RBI) in its December 5 policy review.

3. President Murmu meets India’s 2025 women’s World Boxing Champions

Indian women boxers who won the 2025 World Boxing Championships in Liverpool called on President Droupadi Murmu at Rashtrapati Bhavan.

4. Swahid Diwas: PM Modi recalls the valour of those involved in Assam Movement

Prime Minister Narendra Modi today recalled the valour of all those who were a part of the Assam Movement on the occasion of Swahid Diwas.

5. Human Rights Day

President Droupadi Murmu today said that India is committed to being a nation where Human Rights are not only protected but also celebrated.

6. Deepavali, included in UNESCO Representative List of Intangible Cultural Heritage of Humanity; Nation hails global recognition

Deepavali, one of India’s foremost cultural and spiritual festivals, has been included in the United Nations Educational, Scientific and Cultural Organisation’s (UNESCO) Representative List of Intangible Cultural Heritage of Humanity.

7. Andrej Babiš appointed as PM of Czech Republic

Prime Minister Narendra Modi has congratulated Andrej Babiš on being appointed as Prime Minister of the Czech Republic.

8. IIT Bombay’s SINE Launches India’s First Incubator-Linked Deep Tech VC Fund

IIT Bombay’s Society for Innovation and Entrepreneurship (SINE) today launched India’s first incubator-linked deep tech venture capital fund.

Daily Current Affairs Quiz
11 December, 2025

International Affairs

1. UNESCO Safeguards Pakistan’s Boreendo

Source: HT

Context

A clay flute tradition from Pakistan’s Sindh region – with echoes stretching back to the Indus Valley and faint parallels in Gujarat – became the early focal point of the 20th session of UNESCO’s Intergovernmental Committee for Safeguarding Intangible Cultural Heritage.

Boreendo at a Glance

• What it is: A spherical clay vessel-flute producing soft, breathy tones, used in folk music, pastoral songs, and winter gatherings in Sindh.
• Origin: Keti Mir Muhammad Lund, Sindh; roots trace back to Mohenjo-daro, linking it to the Indus Valley Civilization (3300–1300 BCE).
• Design & Craftsmanship:
  • Handmade from sun-dried, kiln-fired clay.
  • Egg-shaped body with 1 inlet and 3–5 holes; pitch changes by tilting the mouthpiece.
  • Decorated by women with natural motifs, reflecting local aesthetics.
• Acoustic Features:
  • Produces haunting, mellow notes.
  • Size-dependent tones: Large = deep resonance; small = sharper tones.
• Transmission: Skills passed orally in artisan families; only one maestro and one potter survive, making preservation urgent.
• Cultural Significance: Symbolizes Thari pastoral identity, community cohesion, and nature connection.

National Affairs

1. World Inequality Report 2026

Source: IE

Context

The World Inequality Report 2026, released by the World Inequality Lab and edited by Lucas Chancel, Ricardo Gómez-Carrera, Rowaida Moshrif and Thomas Piketty, highlights worsening income, wealth, gender and climate inequality across the world.
The report draws on research by over 200 global scholars and follows earlier editions published in 2018 and 2022.

Income Inequality in India

• Top 10% earners capture 58% of national income
• Bottom 50% receive only 15% of national income
• India ranks among the most unequal countries globally in income distribution

Comparison with 2022 report

• Top 10% share (2021): 57%
• Bottom 50% share (2021): 13%
• Indicates persistent and worsening inequality

Wealth Inequality in India

• Top 10% own ~65% of total wealth
• Top 1% alone hold ~40% of national wealth
• Wealth inequality is sharper than income inequality

Average levels (PPP terms)

• Average annual income per capita: €6,200
• Average wealth per capita: €28,000

Gender Inequality in India

• Female labour force participation: only 15.7%
• No meaningful improvement over the past decade
• Reflects deep-rooted structural and social constraints

Global Inequality

Extreme Wealth Concentration

• Top 0.001% (fewer than 60,000 people) own 3 times more wealth than the bottom 50% of humanity
• Their wealth share rose from ~4% (1995) to over 6% today
• Top 1% control 37% of global wealth
• Top one-in-a-million hold 3% of global wealth, more than the entire bottom half

Global Distribution of Wealth

• Top 10% own 75% of global wealth
• Bottom 50% own just 2%

Shifting Global Income Positions (1980–2025)

• China: Significant upward mobility; large share now in middle 40%
• India: Relative decline
  • In 1980, more Indians were in the global middle 40%
  • Today, almost the entire population lies in the global bottom 50%
• Sub-Saharan Africa: Remains largely in the lower half

Gender Inequality (Global)

• Women earn 61% of men’s wages per hour (excluding unpaid work)
• Including unpaid labour, earnings fall to 32%
• Women receive only ~25% of global labour income
• Regional shares:
  • Middle East & North Africa: 16%
  • South & Southeast Asia: 20%
  • Sub-Saharan Africa: 28%
  • East Asia: 34%
  • Europe/North America/Oceania: ~40%

Climate Inequality

• Bottom 50% account for 3% of emissions linked to private capital ownership
• Top 10% account for 77%
• Top 1% alone generate 41%, nearly double the bottom 90%
• Highlights strong linkage between wealth concentration and climate damage

Policy Concerns Highlighted

Failure of Tax Systems

• Effective tax rates rise for most people but fall sharply for billionaires
• Ultra-rich often pay proportionally less tax than middle-income households
• Results in reduced public spending on:
  • Education
  • Healthcare
  • Climate action

Recommended Policy Responses

• Progressive taxation targeting ultra-rich
• Strong public investment in:
  • Education
  • Universal healthcare
  • Nutrition and childcare
• Redistributive measures:
  • Cash transfers
  • Pensions
  • Social security and targeted welfare

2. India and Brunei Launch First Defence Joint Working Group

Source: TH

Context

India and Brunei Darussalam held the inaugural meeting of the Joint Working Group (JWG) on Defence Cooperation in New Delhi on 9 December 2025. This marks a milestone in bilateral defence relations, providing a structured platform to coordinate and deepen security and defence ties.

Areas of Cooperation

• Military Exchanges & Training: Officer exchanges, joint exercises, and professional military education to enhance interoperability.
• Maritime Security: Collaboration for safeguarding sea lanes and ensuring stability in the Indo-Pacific.
• Humanitarian Assistance & Disaster Relief (HADR): Coordinated response to natural and man-made disasters.
• Capacity Building & Technology: Defence industry partnerships, technology sharing, and training initiatives.

Strategic Importance

• Institutionalised Defence Ties: Moves India–Brunei engagement from occasional interactions to a formal, sustained mechanism.
• Regional Stability: Reinforces a rules-based order in the Indo-Pacific.
• Industry & Technology: Opens avenues for collaboration between Indian Defence Public Sector Units (DPSUs) and Brunei’s defence sector.
• Diplomatic Engagement: Highlights India’s commitment to strengthening ties with Southeast Asian nations.

3. Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2026

Source: PIB

Context

The Ministry of Statistics and Programme Implementation (MoSPI) has released the draft questionnaire for the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2026. The survey aims to capture critical data on the health and dynamics of unincorporated, non-agricultural enterprises across India.

Key Features of ASUSE

• Coverage: Unincorporated non-agricultural establishments in manufacturing, trade, and services.
• Data Collected:
  • Economic: Number of workers, gross value added, wages, fixed assets, outstanding loans.
  • Operational: Ownership type, nature of operation, registration status, use of ICT.
• Frequency: Conducted annually since 2021-22.
• Quarterly Bulletin: MoSPI has also launched QBUSE (Quarterly Bulletin of Unincorporated Sector) from Jan–Mar 2025, with Q2 (July–Sep 2025) available online.

Objectives of ASUSE 2026

• Improve Policy Relevance: Align survey design with stakeholder requirements for informed, data-driven decisions.
• Enhance Data Quality: Incorporate feedback from Data User Conferences, expert groups, and ministries.
• Generate Insights: Support national accounts statistics and policymaking in sectors like MSME, trade, and services.

4. India Launches First Indigenous Hydrogen Fuel Cell Vessel in Varanasi

Source: TH

Context

On 11 December 2025, Union Minister Sarbananda Sonowal inaugurated India’s first fully indigenous hydrogen fuel-cell vessel at Namo Ghat, Varanasi. The vessel is a pilot project by Cochin Shipyard Limited (CSL) aimed at promoting clean energy in inland water transport and advancing India’s net-zero emission goals.

Key Features:

• Type & Size: Hydrogen fuel-cell powered passenger vessel, ~24 metres long
• Capacity: 50 passengers, air-conditioned
• Propulsion: Low-Temperature Proton Exchange Membrane (LT-PEM) hydrogen fuel cells combined with lithium-ion phosphate batteries
• Emissions: Zero-emission; water and heat are the only byproducts
• Performance: Silent operation, energy-efficient compared to conventional diesel vessels
• Builder: Cochin Shipyard Limited – fully designed and constructed in India

5. CITES Marks 50 Years at CoP20 in Samarkand

About CITES

• Full Form: Convention on International Trade in Endangered Species of Wild Fauna and Flora.
• Purpose: Legally binding treaty regulating international trade in wild animals and plants to prevent threats to species survival.
• History:
  • Proposed by IUCN in 1963; text finalized in 1973, Washington D.C.
  • Entered into force on 1 July 1975.
• Membership: 185 Parties (2025), one of the largest global conservation agreements.
• Mechanism: Three Appendices provide graded protection and trade restrictions.
• Key Functions:
  • Permits and certificates for regulated wildlife trade.
  • Enforcement against illegal trade.
  • Promotion of sustainable use, scientific assessments, and global cooperation.

CoP20(Samarkand, Uzbekistan, 2025)

• Significance: 20th Conference of the Parties; marks CITES’ 50th anniversary.
• First CoP in Central Asia, fostering regional conservation dialogue.

Major Outcomes

• Species Additions & Uplistings:
  • 77 species added to Appendices.
  • Appendix I (strictest protection):
    • Sharks & rays: oceanic whitetip, whale shark, all manta & devil rays.
    • Iguanas: Galápagos land iguanas (3 species), marine iguana.
    • African reptiles: Home’s hinge-back tortoise.
• Downlistings due to Conservation Success:
  • Saiga antelope (Kazakhstan): moved from Appendix II with export flexibility.
  • Guadalupe fur seal (Mexico): downlisted from Appendix I to II.
• India’s Role:
  • Successfully opposed EU proposal to list guggul (Commiphora wightii) in Appendix II, citing lack of scientific assessment.

6. ISRO to Launch US Commercial Satellite BlueBird-6

Source: TOI

Context

In a major boost to Indo-US space collaboration, the Indian Space Research Organisation (ISRO) is set to launch its heaviest American commercial satellite, BlueBird-6, on December 15, 2025, from the Sriharikota spaceport. The launch vehicle LVM3 (Bahubali) will place the 6.5-tonne satellite into low-Earth orbit (LEO).

Key Highlights

• Satellite Name: BlueBird-6
• Country of Origin: United States
• Operator: AST SpaceMobile (Texas-based)
• Launch Vehicle: LVM3 (Bahubali)
• Orbit: Low-Earth Orbit (LEO)
• Purpose: Commercial communication, direct-to-device mobile broadband

About BlueBird-6

• Block-2 Satellite: Part of AST SpaceMobile’s next-generation series
• Phased Array Antenna: Nearly 2,400 sq ft — 3.5× larger than BlueBird 1-5
• Service Objective: Bridge the digital divide by offering fast mobile broadband in areas lacking terrestrial network coverage
• Launch Vehicle – LVM3 (Bahubali):
  • Configuration: Three-stage launch vehicle
  • Recent Launches: Carried India’s heaviest CMS-3 satellite (4.4 tonnes) on November 2, 2025

Banking and Finance

1. ADB Raises India’s FY26 Growth Forecast to 7.2%

Source: TOI

Context

The Asian Development Bank (ADB) raised India’s GDP growth forecast for FY26 to 7.2%, up 70 basis points from its earlier estimate of 6.5%, citing strong domestic consumption supported by recent tax cuts. The growth projection for FY27 remains unchanged at 6.5%.

Key Highlights:

• Q2FY26 GDP Growth: 8.2% (July–September 2025), fastest in six quarters.
• Drivers: Robust private consumption; moderate government spending.
• FY26 Upgrade: 0.7 percentage points to 7.2% due to strong domestic demand and tax reductions.
• Global Sentiment: Aligns with other agencies:
  • IMF: Praised India’s growth momentum and fiscal discipline.
  • Fitch Ratings: Upgraded FY26 growth forecast to 7.4% from 6.9%, citing stronger consumer spending and GST reforms.
• Inflation Outlook:
  • FY26: 2.6% (down from 3.1%)
  • FY27: Expected to rise near RBI target of 4.2%
  • Retail inflation in October fell to 0.3%, lowest since 2012
• Factors Behind Low Inflation: GST cuts, food price deflation, strong agricultural output, favourable weather.

FY26 Growth Forecast Comparisons

2. RBI Talks to Banks on Uniform Fee Disclosure and Removal of Overlaps

Source: ET

Context

The Reserve Bank of India (RBI) has initiated discussions with authorised banks to ensure uniform disclosure of fees and to address overlaps in retail foreign exchange (forex) services. This move aims to enhance transparency for retail users in transactions involving forex cash, tom (next-day settlement) and spot contracts.

Key Highlights:

• Objective:
  • Full disclosure of transaction costs, including:
    • Remittance fees
    • Foreign exchange rates
    • Currency conversion charges
  • Removal of overlaps and inconsistencies across banking services
• Scope: Retail customers using foreign exchange cash, tom, and spot contracts

Previous Norms

• Banks were free to charge and disclose fees differently for forex services.
• Fee structures varied across banks and products, including cash, TOM, and spot contracts.
• No standardised format or mandatory transparency requirement, leading to:
  • Hidden or overlapping charges.
  • Difficulty for customers to compare costs across banks.

Proposed Measures

• Banks must provide a breakdown of total transaction costs before executing forex contracts with retail users.
• Details must be included in deal confirmations or term sheets.
• Prior RBI guidance (January 2024) already mandated disclosure of:
  • Mid-market rates
  • Bid-ask quotes for forex or foreign currency derivative contracts

3. PFRDA Expands Investment Universe for Pension Funds

Source: BS

Context

The Pension Fund Regulatory and Development Authority (PFRDA) has revised investment norms for private pension funds, allowing broader diversification to optimize returns. The changes came into effect immediately with the circular issued on December 10, 2025.

Previous Norms

• Private pension funds were allowed to invest in only 200 approved stocks under the National Pension System (NPS).
• Investments in commodities or ETFs were restricted.
• Limited flexibility in portfolio diversification, which could constrain returns.

Key Changes

• Equity Investments:
  • Private pension funds can now invest in the top 250 stocks by market capitalization listed on Indian exchanges, up from the previous 200-stock limit.
• Commodity Exposure:
  • Investments in gold and silver ETFs are now permitted, enabling funds to diversify beyond equities.
• Objective:
  • Enhance portfolio diversification, manage risk, and improve long-term returns for subscribers.

Implications

• For Pension Funds:
  • Broader equity universe and commodity exposure reduce concentration risk and improve portfolio flexibility.
• For Subscribers:
  • Access to diversified investment options, including top-performing equities and commodity ETFs.
• For Markets:
  • Likely increased demand for top 250 stocks and gold/silver ETFs, supporting market depth.

4. RBI Likely to Maintain Repo Rate at 5.25% Through FY27: Fitch

Source: ET

Context

The Reserve Bank of India is expected to keep its policy repo rate unchanged at 5.25% through the next fiscal year after a 25-basis-point cut earlier this month, according to BMI, part of Fitch Solutions.

Key Highlights:

• Rate Outlook: Fitch Solutions’ BMI expects the RBI policy repo rate to remain at 5.25% through FY2026‑27, following the recent 25 bps cut. The current rate is considered near its terminal level.
• Currency Forecast: The rupee is projected to trade around ₹90/USD by end‑2025 and ₹90.5/USD in 2026, reflecting a modest depreciation amid stable monetary policy.
• Policy Context: The RBI cut rates cumulatively by 125 bps in 2025 after aggressive hikes in 2022‑23, aiming to support growth while inflation remains subdued.

Economic Rationale

• Inflation: CPI inflation has fallen significantly, giving the RBI scope for continued accommodative policy.
• Growth: India’s GDP is forecast to remain robust, with strong domestic consumption and investment trends.
• Fitch notes that the current environment reflects a “Goldilocks” phase: low inflation and resilient growth, reducing the need for further rate adjustments.

Risks and Considerations

• External Risks: Prolonged trade disputes with the US may:
  • Hurt exports due to tariffs
  • Pressure GDP growth and currency value
• Domestic Risks: Inflation rebound and currency depreciation may influence future rate decisions.
• Growth vs Inflation: RBI balances resilient economic growth with expectations of softening momentum.

5. SEBI Plans Consolidated Financial Asset Statement

Source: Mint

Context

The Securities and Exchange Board of India (SEBI) is exploring the creation of a consolidated statement of all financial assets of an individual, in collaboration with other financial sector regulators. The move is aimed at simplifying access to investment information and empowering households with a holistic view of their financial holdings.

Key Highlights:

• Consolidated Statement:
  • SEBI chairman Tuhin Kanta Pandey proposed a single statement reflecting all financial assets across markets.
  • The initiative will be taken forward through the inter-regulatory forum, involving other financial regulators.
• Current Scenario:
  • Investors can currently access consolidated holdings within securities markets (equities, debt, mutual funds) through depositories.
• Simplifying Investor Onboarding:
  • SEBI is considering allowing intermediaries access to supplementary account opening form (AOF) data via KYC registration agencies (KRAs).
  • Objective: Reduce repetitive document submission and ensure clean, verified, and consistent data across intermediaries.
• Regulatory Strengthening:
  • SEBI has enhanced governance and risk-management oversight for top 2,000 listed firms.
  • A review of regulations for mutual funds, stockbrokers, and listing obligations is underway.

6. SEBI Eases Re-KYC Process for NRIs

Source: Mint

Context

The Securities and Exchange Board of India (SEBI) has relaxed the re-KYC process for Non-Resident Indians (NRIs), making it easier for them to update their KYC details without being physically present in India.

Key Highlights:

• Modification:
  • Physical presence in India is no longer required for digital re-KYC of existing NRI clients.
  • The move follows references and requests from multiple stakeholders.
• Digital Verification Requirements:
  • Tools such as random prompts, time-stamping, and geo-tagging will continue to ensure authenticity of the interaction.
  • Note: New onboarding still requires the client to be physically located in India.
• Definition:
  • Re-KYC (Re-Know Your Customer): Process of updating or revalidating customer KYC details with financial institutions or intermediaries.

7. RBI Urges MFIs to Diversify Asset Classes for Stability

Source: ET

Context

The Reserve Bank of India (RBI) has called on microfinance institutions (MFIs) to expand their lending beyond the traditional joint liability group (JLG) model, in order to strengthen financial stability and enhance contribution to the economy.

This was highlighted at a seminar in Kolkata organized by the Association of Microfinance Institutions (AMFI)-West Bengal, where senior RBI officials and industry experts discussed the future of MFI lending.

Key Recommendations

• Diversify Lending Products:
  • Move from mono-product lending (entrepreneurial loans) to micro-enterprise finance.
  • Explore new asset classes such as:
    • Inventory financing – short-term loans to manage cash flows between purchase and sale of goods.
    • Capital asset financing – long-term loans for acquiring machinery and productive assets.
    • Basic payments support – financial products that support operational liquidity.
• Progressive Lending Approach:
  • Design products to match small business growth, starting with working-capital loans and gradually moving to larger financing solutions.
• Leverage Regulatory Relaxation:
  • RBI reduced the qualifying microfinance asset ratio from 75% to 60%, allowing NBFC-MFIs to diversify into MSME loans, gold loans, and loans against property.

8. RBI Proposes Full Disclosure of Forex Transaction Costs for Retail Users

Context

The Reserve Bank of India (RBI) has issued a draft circular requiring banks and authorised dealers to provide complete disclosure of all fees and charges for retail foreign exchange (forex) transactions. The objective is to improve transparency and enable informed decision-making by individual customers.

Scope

• Applicable Transactions:
  • Forex cash
  • TOM (next-day settlement) contracts
  • Spot contracts

Current Scenario

• Retail forex users often face hidden or unclear charges while transacting in cash, TOM, or spot markets.
• Overlaps and inconsistent disclosure across banks create confusion and limit price comparability.

Proposed Change

• Banks must clearly disclose all transaction costs, including service charges, margins, and conversion fees.
• Standardised reporting will allow retail users to make better-informed choices when engaging in forex transactions.

9. Banks Increase Borrowing via Certificates of Deposit

Source: BS

Context

Indian banks have stepped up borrowing through certificates of deposit (CDs) as deposit growth lags behind rising credit demand. In the fortnight ended November 28, 2025, banks raised nearly ₹ 78,000 crore via CDs, reflecting tight liquidity conditions in the banking system. This trend is expected to continue as credit growth accelerates while deposit accretion remains slow.

Certificates of Deposit (CDs)

• A Certificate of Deposit (CD) is a short- to medium-term financial instrument issued by banks or financial institutions to raise funds. It is a negotiable, fixed-income security that promises to pay the holder a specified interest rate for a predetermined period.
• Purpose:
  • Alternative to bulk term deposits
  • Replenish maturing deposits
  • Ensure smooth liquidity management
• Impact: Provides banks with short-term funding to meet credit demand and regulatory requirements

Drivers of CD Borrowing

• Credit-Deposit Mismatch
  • Credit growth: 11.4% (fortnight ended Nov 14, 2025)
  • Deposit growth: 10.2%
  • Gap: 120 basis points
• Tight Liquidity
  • Sluggish retail deposit inflows post-RBI rate cuts
  • Need for short-term borrowing to maintain Liquidity Coverage Ratio (LCR)
• Policy Rate Cuts & Margin Pressure
  • Cumulative 125 bps RBI rate cuts
  • Banks cautious about lowering deposit rates too sharply
  • Need to safeguard margins while meeting credit demand
• Economic Recovery Signals
  • GST rationalisation and income tax relief supporting credit demand
  • Pickup in credit expected in H2 FY26

Agriculture

1. Green Revolution 2.0: Climate Action in India’s Food Sector

Source: Mint

Context

India’s food sector is a major economic contributor, employing millions and encompassing food processing, agriculture, cold chains, and retail. Globally, food systems contribute about one-third of greenhouse gas (GHG) emissions, driven by land use, fertilizers, livestock, and transport. As India scales its food sector, integrating climate action into supply chains is increasingly critical for both economic resilience and environmental sustainability.

Key Challenges

• Complexity of Emissions Measurement:
  • Farm emissions are hard to measure due to variations in soil type, weather, farming practices, fodder quality, and livestock breed.
  • Current tools rely on estimates, producing high error margins, making companies hesitant to set strict targets.
• Weak Consumer Incentives:
  • While Indian consumers express interest in sustainability, price and taste often drive decisions.
  • Uncertainty around willingness to pay green premiums discourages investment in cleaner supply chains.
• Supplier Constraints:
  • Majority of Indian farms are small-scale, with limited credit, irrigation, or advisory support.
  • Adoption of climate-friendly practices is slow unless costs are shared or incentives are provided.
• Supply Chain Complexity:
  • Ensuring resilience requires influencing millions of producers, each facing urgent daily risks beyond climate concerns.

Drivers for Action

• Climate Risks: Volatile weather affects procurement, input costs, and product quality across dairy, cereals, and spices.
• Market Expectations: Large buyers, commodity traders, and financial institutions increasingly demand evidence of emissions management.
• Science-Based Guidance: The Science Based Targets Initiative provides norms for emissions from forests, land, and farming, allowing companies to align with global standards.

Recommended Steps

• Efficiency Improvements:
  • Reduce energy use in processing plants.
  • Shift to renewable energy.
  • Improve cold-chain and transport efficiency to cut emissions and costs.
• Targeted Trials in Sourcing Regions:
  • Rice: Alternate wetting and drying to reduce methane and water use.
  • Dairy: Enhanced animal feed, livestock health, and manure management for higher productivity.
• Collaboration & Measurement:
  • Partner with research institutions and agricultural centers.
  • Use satellite mapping and standardized records to monitor emissions collectively.
• Policy Support:
  • Publish emission standards for crops.
  • Provide open land-use datasets and expand extension networks.
  • Reward suppliers in public procurement schemes for cleaner production.
  • Establish a national framework for private supply chain emissions, with clear baselines and verification norms.

Facts To Remember

1. “Rage-Bait” Named OED Word of the Year

The Oxford English Dictionary (OED) has named “rage-bait” as its Word of the Year 2025, reflecting the growing influence of manipulative tactics used to drive online engagement. Its usage reportedly tripled in 2025, surpassing contenders “aura farming” and “biohack”.

• Rage-bait: Content (articles, videos, social media posts, etc.) deliberately created to provoke anger, outrage, or strong emotional reactions from an audience.
• Aura Farming: Cultivating an air of confidence, mystique, or coolness to attract attention online
• Biohack: Using diet, exercise, tech, or drugs to enhance physical or mental performance for social validation

2. MoS Kirti Vardhan Singh attends Diwali UNESCO recognition ceremony at Sri Ram Temple in Kenya

Union Minister of State for External Affairs Kirti Vardhan Singh joined the celebrations at the historic Sri Ram Temple in Kenya to mark Diwali's inclusion in UNESCO's Representative List of the Intangible Cultural Heritage of Humanity.

4. Rajya Sabha hails UNESCO inscription of Deepawali as Intangible Cultural Heritage

The Rajya Sabha today hailed the inscription of Deepawali in the UNESCO’s Intangible Cultural Heritage List.

5. ACS Supriya Sahu of Tamil Nadu wins UNEP 2025 Champions of the Earth Award

The Additional Chief Secretary of the Department of Environment, Climate Change and Forests of Tamil Nadu, Ms Supriya Sahu, has won the UN Environment Programme's 2025 Champions of the Earth Award.

6. NABARD survey indicates rising incomes and improved household well-being in rural India

The Ministry of Finance said that the latest NABARD Rural Economic Conditions and Sentiments Survey shows a strong and broad-based revival in rural demand.

Daily Current Affairs Quiz
12 December, 2025

National Affairs

1. Working Paper on Generative AI & Copyright

Source: IE

Context

The Government of India released a Working Paper on Generative AI & Copyright, introducing the country’s first structured framework for regulating AI training on copyrighted works. The model aims to balance creator rights with AI innovation, addressing disputes such as ANI vs OpenAI (Delhi HC, 2024–25) over unauthorized use of Indian content.

Key Issues Identified

• Unlicensed Use of Creative Works
  • Generative AI models train on Indian books, articles, films, music, and news without permission, violating Section 14 of the Copyright Act.
  • Example: ANI alleged OpenAI used its news content without consent.
• Legal Ambiguity
  • No explicit Text & Data Mining (TDM) exception exists.
  • Section 52 exceptions do not cover commercial AI training, leaving foreign AI developers in a legal grey zone.
• Absence of Compensation Mechanisms
  • Creators gain nothing from AI usage despite their works enhancing model quality.
  • Example: India’s informal music sector (~1.4 crore people) earns no royalties from AI training.
• Cultural and Economic Risks
  • AI outputs may overshadow or replace Indian folk art, local music, and regional storytelling, eroding cultural diversity.
  • Large AI firms benefit commercially, while small and independent creators remain disadvantaged.

Objectives of the Framework

• Protect India’s creative economy and safeguard livelihoods in entertainment, media, design, and folk sectors.
• Foster AI innovation aligned with IndiaAI Mission, enabling startups to access high-quality, lawful datasets.
• Preserve cultural diversity and human creativity.
• Ensure fair revenue sharing for Indian creators whose works train AI models.
• Simplify licensing for AI developers, especially MSMEs and smaller players.

Key Recommendations

• Mandatory Blanket License
  • One license grants AI developers access to all lawfully acquired copyrighted works without individual permissions.
  • Enables Indian LLMs (e.g., Sarvam, Gan AI, Soket) to train on diverse content across languages and formats.
• Statutory Royalty Payments
  • Creators receive revenue-proportional royalties.
  • Provides organized income streams to informal sectors such as music and journalism.
• Copyright Royalties Collective for AI Training (CRCAT)
  • Central government-designated body to collect license fees and distribute royalties to creators.
• Royalty Rate-Setting Committee
  • Government-appointed committee ensures fair, transparent, and periodically reviewed royalty rates with judicial oversight.
• Single-Window Licensing & Compliance
  • One license → One payment → Nationwide coverage.
  • Reduces transaction costs, especially for startups and smaller AI developers.