Daily Current Affairs (DCA) 10&11 August, 2025

Daily Current Affairs Quiz
10&11 August, 2025

National Affairs

1. PM E-Drive Subsidy Scheme

Context:

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

About PM E-Drive Subsidy Scheme

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

Objectives

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

Coverage

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

PIB

2. Khelo India ASMITA Football League 2025-26

Context:

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

About Khelo India ASMITA

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

Aim

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

PIB

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

Context:

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

Key Details:

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

TOI

Banking/Finance

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

Context:

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

Key Highlights:

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

Minimum Average Balance (MAB)

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

Purpose

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

TOI

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

Context:

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

Why This Move Matters?

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

Forward Rate Agreements (FRA)

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

Purpose

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

Difference Between FRAs and Bond Forwards

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

BS

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

Context:

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

Key Proposals

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

Documents and Procedures

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

BS

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

Context:

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

Key Features of the SOP for Scheme Processing

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

Challenges

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

Mint

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

Context:

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

Alternative Investment Fund (AIF)

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

Categories:

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

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

BS

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

Context:

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

Key Highlights:

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

BS

Agriculture

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

Context:

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

Global and Local Challenges

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

Restoration Pathways:

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

Impact on Food Security and Livelihoods:

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

BL

Facts To Remember

1. CPI inflation at record low in July: Poll

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

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

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

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

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

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

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