Daily Current Affairs (DCA) 12 June, 2025

Daily Current Affairs Quiz
12 June, 2025

National Affairs

1. SpaceX Postpones Axiom Space Ax-4 Mission

Context:

The Axiom Mission 4 (Ax-4), a private crewed mission to the International Space Station (ISS), has been postponed by SpaceX due to a liquid oxygen (LOx) leak detected during post-static fire inspections of the Falcon 9 booster.

Key Details:

• The mission was scheduled to launch on June 11, 2025, from Launch Complex 39A at NASA’s Kennedy Space Center, Florida.
• The crew includes India’s Group Captain Shubhanshu Shukla, alongside:
  • Peggy Whitson, former NASA astronaut (Mission Commander)
  • Sławosz Uznański-Wiśniewski, ESA astronaut from Poland
  • Tibor Kapu, ESA astronaut from Hungary

Significance for India

• This mission marks the first time an Indian astronaut will fly to the ISS under the Axiom Space mission program, in collaboration with ISRO, NASA, and SpaceX.
• Group Captain Shubhanshu Shukla, referred to as the first Indian “Gaganyatri” to the ISS, is set to pave the way for future Indian human spaceflight missions.

2. Microfinance Sector in India

Context:

The Reserve Bank of India (RBI) Deputy Governor has flagged a deepening crisis in the Indian microfinance sector, citing a:

• 13.9% fall in Gross Loan Portfolio (GLP)
• Surge in NPAs crossing ₹55,000 crore
• Rise in credit stress across microloan accounts

About Microfinance in India

• Definition: Microfinance involves providing small loans, savings, and insurance to low-income individuals excluded from formal banking.
• Objective: Empower entrepreneurship, ensure financial inclusion, and alleviate poverty without collateral requirements.
• Timeline:
  • 1974: First MFI – SEWA Bank, Ahmedabad
  • 1976: Grameen Bank model (Bangladesh)
  • 2010: Malegam Committee introduced norms for NBFC-MFIs
• Regulator: Reserve Bank of India (RBI)

Challenges

• Over-indebtedness: Multiple borrowings without credit assessment
• High Interest Rates: Lending margins remain high, bordering on usury
• Coercive Recovery: Harassment and ethical issues in collection practices
• Weak Credit Appraisal: Incentive-based lending promotes risky portfolios
• Regulatory Disruptions: State interventions (e.g., Karnataka) affecting even compliant MFIs

Way Forward

• Credit Risk Reforms: Improve profiling, limit borrower exposure
• Recovery Code: RBI must ensure respectful, ethical recovery norms across MFIs
• Rate Controls: Cap interest rates and regulate margins to prevent exploitation
• Empathy-Centric Lending: Shift from profit-led to community-centric microfinance
• Technology Integration: Use AI/data tools for real-time repayment monitoring and predictive risk alerts

3. India and Biodiversity Beyond National Jurisdiction (BBNJ) Agreement

Context:

India is unlikely to ratify the Biodiversity Beyond National Jurisdiction (BBNJ) agreement, also known as the High Seas Treaty, during the UN Ocean Conference in Nice, France (June 2025), despite having signed the agreement in September 2024.

• Key Reasons for Delay
  • Amendments to existing laws, particularly the Biological Diversity Act, are required before formal ratification.

About the BBNJ Agreement

• Aim: To govern the conservation and sustainable use of marine biodiversity in the high seas, which lie beyond national EEZs.
• Status: As of June 10, 2025, 49 countries have ratified the treaty. It will come into legal force once 60 countries ratify.
• Controversy: Disagreements persist over sharing benefits from marine genetic resources, with developing nations demanding equitable frameworks.

India’s Position and Activities at the Conference

• Union Minister Jitendra Singh stated that India is in the “process of ratifying” the treaty.
• India emphasized:
  • Samudrayaan: A manned submersible mission aiming to explore depths up to 6,000 metres with a trial dive in 2026.
  • A nationwide ban on single-use plastics.
  • $80+ billion in investments under the Blue Economy initiative.
  • Advocacy for a legally binding Global Plastics Treaty.
  • Launch of SAHAV, a new digital ocean data portal, highlighting India’s commitment to marine data sharing and governance.

4. India Pushes for Dysprosium and Terbium Imports

Context:

With China reportedly close to granting rare earth mining licenses to at least 10 applicants, India is urgently seeking to secure imports of dysprosium and terbium—two critical heavy rare earth elements (HREEs) used in EV motors and industrial magnets. These elements are not available in extractable quantities in India, making imports essential.

Dysprosium and Terbium: Critical Rare Earth Elements

Dysprosium (Dy) and Terbium (Tb) are essential heavy rare earth elements (HREEs) used as additives in Neodymium-Iron-Boron (NdFeB) magnets. These magnets are integral to clean energy technologies like wind turbines and electric vehicle (EV) motors due to their superior magnetic strength and thermal stability.

Key Properties and Industrial Significance

• Magnetic Enhancement:
  • Both Dy and Tb boost the magnetic strength and coercivity of NdFeB magnets, making them more durable and efficient.
• High-Temperature Stability:
  • These elements prevent demagnetization at elevated temperatures, critical for high-performance machinery like EV motors and wind turbines.
• Optimized Composition:
  • Extracted together with other rare earths, Dy and Tb are added in specific ratios to tailor magnet performance for diverse applications.
• Strategic Role in Energy Transition:
  As key components in clean technologies, they are classified as critical materials supporting global decarbonization efforts.

Major Applications

• NdFeB Permanent Magnets:
  • Used across high-demand sectors for their powerful and compact magnetic capabilities.
• Wind Turbines:
  • Essential in generator systems where thermal resilience ensures consistent performance.
• Electric Vehicles (EVs):
  • Integral to the functionality and energy efficiency of modern EV drive systems.
• Other Uses:
  • Found in air conditioners, elevators, and robotics due to their compact size and strong magnetic properties.

5. Social Security Coverage in India Rises to 64.3% in 2025: ILO Report

Context:

The International Labour Organization (ILO) has reported a significant rise in India’s social protection coverage, stating that nearly 64.3% of the population—around 950 million people—are now covered under at least one social security scheme in 2025, up from 19% in 2015.

Key Highlights:

Social Security Expansion Over a Decade:

• 2015: 19.0%
• 2019: 24.4%
• 2022: 48.8%
• 2025: 64.3%
• This marks a more than threefold increase in coverage over 10 years.

Coverage Estimation Based on ILO Criteria:

• Data sourced from 32 central and state-level schemes.
• Schemes included must be:
  • Legislatively backed
  • Provide cash benefits
  • Be currently active
  • Have verified time-series data for the last three years

Key Welfare Schemes Considered

• Atal Pension Yojana
• PM-Kisan Samman Nidhi
• MGNREGA
• Janani Suraksha Yojana
• PM POSHAN
• Other pension, maternity, and child benefit schemes

Impact on Global Labour Relations:

• Stronger domestic coverage is expected to:
  • Enhance India’s ability to negotiate Social Security Agreements (SSAs) with developed countries
  • Improve portability of social protection for Indian professionals abroad
  • Boost India’s standing in trade and labour mobility negotiations

National Data Pooling Effort:

• Government conducted a national-level social protection data pooling exercise
• Phase-I covered central schemes and women-centric schemes across 8 major states (e.g., UP, Rajasthan, Maharashtra, MP, TN)
• This initiative allowed the ILO to incorporate fresh and verified data in its 2025 assessment

6. India Needs a Balanced Framework for Gig Workers

Context:

India’s gig and platform economy is projected to become a significant employment generator. A recent VV Giri National Labour Institute (VVGNLI) study estimates that the sector may employ 61 million workers by 2047, comprising 15% of the non-agricultural workforce.

What is a Gig Worker?

A gig worker is an individual who undertakes short-term, flexible jobs, often facilitated by digital platforms, without a traditional employer-employee relationship. These workers are typically independent contractors, providing services for various clients on a project-by-project or task-by-task basis. Examples include ride-sharing drivers, food delivery workers, freelance writers, and graphic designers. 

Key Challenges

• Gig workers lack formal employment status, falling between contract and permanent workers.
• Excluded from key welfare benefits:
  • No access to health insurance, paid leave, or provident fund.
• Often worse off than informal workers under the Unorganised Workers Social Security Act.
• Surveys since 2020 show:
  • 1 in 7 gig workers earn below minimum wage.
  • Precarious working conditions are common.

e-Shram Portal

• Launched by: Ministry of Labour & Employment, Government of India
• Launch Date: August 26, 2021
• Objective: To build a National Database of Unorganised Workers (NDUW) to ensure delivery of social security schemes
• Target Group: 38 crore unorganised workers including migrant labourers, gig workers, street vendors, construction workers

Key Features of the e-Shram Portal

• Universal Account Number (UAN): Unique 12-digit number for each worker
• e-Shram Card: Identity + Portability + Access to multiple government schemes
• Aadhaar-linked Registration: Single sign-up for access to central benefits
• Data Captured: Name, occupation, skill set, income, education, etc.
• Scheme Linkage: Integrated with major central schemes like:
  • PM-SYM (Pension Yojana)
  • PM-JAY (Ayushman Bharat)
  • Future linking planned with ESI, EPFO

Objectives

• Provide universal social protection for informal workers
• Enable Direct Benefit Transfer (DBT) across schemes
• Create a live database to guide national policy and crisis relief

Banking/Finance

1. SEBI Introduces Mandatory @valid UPI Handles to Curb Financial Fraud

Context:

To strengthen investor protection and curb rising cases of fraud and impersonation in capital markets, the Securities and Exchange Board of India (SEBI) has introduced a mandatory UPI handle format – @valid – for all registered intermediaries.

Key Highlights:

New UPI Handle Format: @valid

• All SEBI-registered intermediaries (e.g. stockbrokers, mutual funds, research analysts, investment advisors) must use the @valid UPI ID (e.g., abc.bkr@validhdfc, xyz.mf@validhdfc).
• Implementation deadline: October 1, 2025.
• Green thumbs-up icon will accompany verified UPI IDs to help users, especially non-English speakers, identify legitimate entities.

Purpose and Impact

• Ensures that investors transfer funds only to verified intermediaries.
• Aims to reduce fraud, phishing, and impersonation risks in financial transactions.
• No impact on existing SIPs (Systematic Investment Plans); however, all new investments must use the new UPI handles.

Verification and Rollout

• UPI handles will be issued only after verification on SEBI’s portal.
• An estimated 8,000–9,000 intermediaries will migrate to the new system.
• Old UPI handles to run in parallel temporarily before full phase-out.

SEBI Check-Supporting Measures

• SEBI will launch a tool called “SEBI Check” for real-time verification of UPI IDs and bank details of intermediaries.
• NPCI (National Payments Corporation of India) will issue operational guidelines soon.
• Use of the @valid handle for non-payment purposes will be prohibited.

UPI Transaction Limit

• The ₹5 lakh daily UPI limit for capital market transactions remains unchanged.

BS & TH

2. NSE Gets SEBI Nod to Launch Monthly Electricity Futures Contracts

Context:

The National Stock Exchange of India (NSE) has received regulatory approval from the Securities and Exchange Board of India (SEBI) to launch monthly electricity futures contracts. The move aligns with efforts to deepen India’s energy markets and improve risk management tools for power sector stakeholders.

What are They?

The new monthly electricity futures contracts aim to provide market participants with tools to hedge against price volatility, enabling more transparent and efficient price signals in the power sector. They are expected to spur investments across the electricity value chain, from generation to retail.

Objectives and Benefits

• Price Risk Management: Provides a structured hedging tool for electricity market participants to manage price volatility
• Transparent Price Discovery: Facilitates accurate and market-driven pricing signals
• Encourages Investment: Supports capital flow into power generation, transmission, distribution, and retail segments
• Energy Market Development: Enhances liquidity and financial depth in India’s electricity market

Strategic Importance

• Complements reforms in the energy and power sector
• Aligns with India’s broader strategy of promoting market-based mechanisms in electricity trade

Implications

• Likely to benefit DISCOMs, power generators, industrial consumers, and energy traders
• Promotes a shift towards financial instruments-based electricity trading
• Could help stabilize long-term contracts and project financing in the power sector

3. MTNL Loan Default

Context:

State-run Mahanagar Telephone Nigam Ltd (MTNL) has defaulted on over ₹8,300 crore worth of bank loans. A meeting has been called by Cabinet Secretary T.V. Somanathan to find a resolution, amid mounting pressure from public sector banks (PSBs) seeking repayment assurances.

Key Highlights:

• No Haircut, But Open to Restructuring
  • Bankers have categorically ruled out any haircut on MTNL’s defaulted loans.

Willing to explore options such as

• Debt-to-equity conversion:
  • A debt-to-equity conversion (also known as a debt-equity swap) is a financial restructuring process where a company’s debt obligations are exchanged for ownership interests (equity) in the company. 
• Asset monetisation:
  • To monetise something means to ‘express it or convert it into the form of currency’. Basically, monetising is ‘to utilise (something of value) as a source of profit,’ or ‘to convert an asset into money or a legal tender.’ For example, a government can monetise the nation’s debt by acquiring debt treasuries, which increases the supply of money. 
• Structured debt restructuring plans:
  • Structured debt restructuring is a process where a business negotiates with its lenders to modify the terms of its existing debt obligations to make repayment more manageable. 

Banks’ Expectations

• Demand Central Government’s assurance on repayment.
• Seek transparency on MTNL’s asset monetisation plans, including its partnership with NBCC.
• Stress on not setting a precedent by taking losses on government-backed entities.

NPA Status and Provisions:

• All seven PSBs have classified MTNL loans as NPAs.
• Full 100% provisioning has already been done by the banks.

4. RBI Hikes LTV on Gold Loans to 85%

Context:

The Reserve Bank of India (RBI) has issued final guidelines increasing the Loan-to-Value (LTV) ratio for gold loans from 75% to 85% for loans below ₹2.5 lakh. The regulatory move is aimed at enhancing access to small-ticket loans, especially in rural areas, and supporting liquidity in the NBFC and MFI sectors.

Key Highlights:

Impact of LTV Hike on Gold Loans

• Small-ticket loans (below ₹2.5 lakh) are set to rise significantly in share of total gold loan AUM.
• Experts estimate 30–40% of AUM currently comprises larger loans, suggesting a reshuffle towards smaller loans in the coming quarters.
• NBFCs and gold loan providers are expected to expand lending in this segment, improving credit access in rural India.

Boost for NBFC-MFIs

• RBI has relaxed qualifying asset norms for NBFC-MFIs:
  • Minimum qualifying assets (microfinance loans) lowered from 75% to 60%.
  • Allows up to 40% of AUM in non-MFI assets, up from 25%.
• The move gives MFIs greater portfolio flexibility, enabling them to diversify into secured products like gold loans and LAP (loan against property).

What is Loan-to-Value (LTV) Ratio?

The Loan-to-Value (LTV) ratio is a crucial metric in lending, particularly for home loans. It represents the percentage of the property’s value that is financed by the loan. A higher LTV ratio means a larger portion of the property is financed, indicating a higher risk for the lender. 

BS

5. RBI Plans to Tighten LRS Rules to Curb Foreign Currency Deposits by Resident Indians

Context:

The Reserve Bank of India (RBI) is set to tighten overseas remittance rules under the Liberalised Remittance Scheme (LRS) to prevent misuse through foreign fixed deposits and passive capital export, according to a Reuters report.

Key Highlights:

New Restrictions on Use of LRS Funds

• RBI plans to amend LRS guidelines to prohibit funds from being used for:
  • Foreign currency fixed deposits
  • Other interest-earning accounts abroad
• Aimed at stopping passive wealth shifting outside India, which is inconsistent with India’s current capital control regime.

Regulatory Concerns and Capital Control

• RBI is concerned about the impact of rising remittances on:
  • Foreign exchange reserves
  • Rupee stability and currency volatility
• Officials flagged this trend as a threat to monetary and macroeconomic stability.

Misuse and Loopholes

• The RBI wants to block:
  • Deposits made under proxy names
  • Indirect use of fintech platforms or private bank channels for passive remittances
• Described by officials as misuse of LRS for capital export under the guise of investment.

Scope of the LRS

• Under current rules, Indian residents can remit up to $250,000 per financial year for:
  • Education, travel, foreign investments (stocks, bonds)
  • Property purchase, medical expenses
• Proposed tightening will not affect legitimate investments like buying shares, mutual funds, or property abroad.

7. Financial Regulators to Implement Universal KYC and Strengthen Cyber Resilience

Context:

In the 2025 meeting of the Financial Stability and Development Council (FSDC) chaired by Finance Minister Nirmala Sitharaman in Mumbai, key decisions were taken to enhance financial sector efficiency and consumer protection through a universal KYC framework, improved cybersecurity, and faster refund of unclaimed financial assets.

Key Highlights:

Universal KYC Framework Proposed

• All major financial regulators — RBI, SEBI, IRDAI, PFRDA, MCA — will coordinate with the Central KYC Registry (CKYCR).
• Goal: Inter-usability of KYC records across the financial system to eliminate multiple verifications.
• Special focus on digital onboarding for NRIs, PIOs, and OCIs in capital markets.

KYC Simplification and Digitisation

• FSDC aims to:
  • Prescribe common KYC norms across regulators
  • Promote full digitisation of onboarding and verification
  • Improve user experience and compliance transparency

Strengthening Cyber Resilience

• Council discussed a sector-specific cybersecurity strategy for:
  • Financial institutions and intermediaries
  • Mitigating cyber risks from increasing digital transactions
  • Ensuring financial system stability

Push for Refund of Unclaimed Funds

• Special district-level refund camps to be organized for:
  • Bank deposits (via RBI)
  • Unclaimed dividends and shares (via IEPFA, MCA)
  • Insurance and pension funds (via IRDAI, PFRDA)
• Aim: Protect consumer interest and ensure rightful owners receive dues promptly.

Vigilance on Macro-Financial Risks

• FSDC reviewed domestic and global financial trends.
• Emphasized proactive risk management to safeguard financial stability.
• Called for timely implementation of past policy decisions and Union Budget announcements.

TET

8. RBI Increases Scrutiny of Newly Licensed Payment Aggregators Amid Fraud Concerns

Context:

The Reserve Bank of India (RBI) is tightening regulatory oversight on newly licensed payment aggregators (PAs) to ensure systemic integrity and prevent misuse of the digital payments ecosystem. This move follows the RBI’s broader effort to secure the digital financial space post-licensing of over 50 PAs.

Key Highlights:

Enhanced Regulatory Scrutiny

• RBI has initiated regular audits and field inspections of newly licensed payment aggregators.
• Focus areas include:
  • KYC compliance for merchant onboarding
  • Validation of genuine online business operations
  • Payout mechanisms such as vendor payments, cashback, and refunds.

Mandatory Full KYC for Merchants (Proposed)

• RBI is working on a draft circular mandating full KYC for every merchant before onboarding.
• Some field verifications are already underway to assess adherence by agents and staff.

Payout Processing Under Review

• RBI is concerned about payout flows, particularly whether these must be processed only through settlement accounts to ensure traceability.
• This affects businesses handling cashbacks, returns, or B2B payouts.

Governance Reforms Mandated

• RBI has directed fintechs to:
  • Adopt board-approved internal controls
  • Strengthen management compliance systems
  • Appoint independent directors to ensure regulatory hygiene
• Examples:
  • PhonePe appointed ex-Standard Chartered India CEO Zarin Daruwala as independent director.
  • PayU named ex-HDFC MD Renu Sud Karnad as chairperson.

Shift from Bank-led Audits to Direct RBI Oversight

• Earlier audits were largely procedural and bank-conducted.
• Now, RBI audits are direct and more rigorous, examining operational and risk frameworks across departments.

TET

9. RBI Plans Frequent Use of CRR to Manage Liquidity and Strengthen Policy Transmission

Context:

The Reserve Bank of India (RBI) is planning to use the Cash Reserve Ratio (CRR) more proactively as a regular liquidity management tool rather than reserving it for emergency interventions. The move follows a surprise 100-bps reduction in CRR, announced in four equal tranches, bringing it down to 3%, which will infuse ₹2.5 trillion into the banking system.

Key Highlights:

• CRR cut from 4% to 3% in phased manner to release ₹2.5 trillion ($29.25 billion) into the banking system.
• RBI intends to use CRR more frequently to manage liquidity, not just during crises.
• This strategy would reduce reliance on open market operations (OMOs) and FX swaps that can distort bond market yields.
• Shift aims to improve policy rate transmission and align the weighted average overnight call rate closer to the repo rate (currently 5.5%).

Why It Matters?

• Deposit Base Growth: India’s banking sector has seen a significant rise in total deposits, giving RBI greater flexibility to lower CRR without risking liquidity stability.
• Efficient Liquidity Absorption: CRR is seen as a more efficient tool for managing systemic liquidity compared to repeated OMOs or FX interventions.
• Between December and May, RBI injected $100 billion via OMOs and FX swaps — the largest such infusion in a similar timeframe.

Additional Tools Considered

• Variable Rate Reverse Repo (VRRR) auctions may be used to absorb excess liquidity as required.
• CRR may also be raised if sustained foreign inflows lead to excessive liquidity.

Mint

10. Insurance Laws (Amendment) Bill

Context:

The Insurance Laws (Amendment) Bill, proposing major sectoral reforms including 100% foreign direct investment (FDI) and composite licensing, is expected to be tabled in the Monsoon Session of Parliament starting 21 July 2025. The bill aims to modernize India’s insurance laws and attract global capital, while enhancing industry efficiency and regulatory autonomy.

Key Proposals in the Bill:

• 100% FDI in Insurance:
  • Currently capped at 74%, the bill proposes allowing full foreign ownership, potentially unlocking global capital inflows.
• Composite Licensing Regime:
  • A composite licence will permit insurers to offer both life and non-life products under one entity.
  • Proposed capital requirement: ₹150 crore (higher than existing ₹100 crore for insurers and ₹200 crore for reinsurers).
  • Inspired by models in Singapore, Malaysia, UK.
• Liberalization for Foreign Reinsurers:
  • Net owned fund requirement cut from ₹5,000 crore to ₹1,000 crore, easing entry and operations.
• Legislative Changes Proposed:
  • Amendments to the Insurance Act, 1938, LIC Act, 1956, and IRDA Act, 1999.
  • Will provide greater operational autonomy to IRDAI and LIC for appointments, staffing, and infrastructure.
• Simplified Regulatory Structure:
  • Designed to minimize the need for future amendments to LIC-related laws.
  • Focus on regulatory clarity, ease of doing business, and market preparedness.

Status of Other Legislations

• Income Tax Bill, 2025:
  • Final report from Parliament select committee (led by Baijayant Panda) expected on Day 1 of Monsoon Session.
  • Introduction likely in Winter Session (Nov-Dec 2025).
• IBC and Companies Act Amendments:
  • Not expected in the Monsoon Session due to pending internal reviews.

Mint

11. Stock Brokers Can Now Offer Insurance, Credit – MoF Amends Securities Rules

Context:

The Ministry of Finance (MoF) has amended provisions of the Securities Contracts (Regulation) Rules (SCRR), 1957, enabling stock brokers to invest surplus capital in non-capital market businesses such as insurance, credit, real estate, and NBFCs, provided such activities don’t involve client funds or create liabilities.

This reform significantly broadens the scope of services brokers can offer, transforming them into one-stop platforms for a range of financial needs.

Key Highlights of the Amendment:

• Expanded Investment Freedom for Brokers:
  • Brokers may now deploy their surplus funds in non-capital market businesses without being deemed to have violated SCRR, provided:
    • The activity does not involve client funds/securities.
    • The broker does not assume any personal financial liability.
• Amendment to Rule 8 of SCRR, 1957:
  • Previously, brokers could only act as agents, not principals, and were restricted from engaging in other businesses.
  • The amendment removes ambiguity and lifts the ban on brokers investing in sectors like NBFCs and real estate, so long as they maintain ring-fencing of client assets.
• Impact of the Amendment:
  • Brokers can now offer insurance, credit, wealth management, and even manufacture financial products outside SEBI’s regulatory ambit.
  • Promotes the rise of integrated fintech platforms serving the full spectrum of retail financial needs.
• Example of Platform Strategy:
  • Angel One, India’s 3rd largest retail broker, plans to leverage the rule to evolve into a comprehensive digital finance provider.
  • The amendment enables brokers to scale beyond distribution into manufacturing financial solutions.

Mint

12. Qualified Institutional Placement (QIP)

Context:

Indian Renewable Energy Development Agency Ltd. (IREDA) has successfully completed a Qualified Institutions Placement (QIP) to raise capital for expanding its clean energy financing capacity.

Qualified Institutional Placement (QIP)

Qualified Institutional Placement (QIP) is a mechanism through which listed companies in India can raise capital by issuing equity shares, fully and partly convertible debentures, or any other security convertible into equity shares (other than warrants) to Qualified Institutional Buyers (QIBs). Introduced by the Securities and Exchange Board of India (SEBI) in 2006, QIP provides companies with an alternative to global depository receipts (GDRs) and American depository receipts (ADRs) for capital raising.

Why QIP?

QIP was introduced to help Indian companies raise funds quickly and efficiently while reducing their dependence on foreign capital markets. Some of the key advantages of QIP include:

Advantages	Details
Faster Process	QIP is quicker than an Initial Public Offering (IPO) or Follow-on Public Offering (FPO), as it involves only institutional investors.
Less Regulatory Compliance	Compared to public offerings, QIPs require fewer regulatory approvals, making the process more streamlined.
Cost-Effective	The cost of raising capital via QIP is lower than an IPO due to reduced underwriting and marketing expenses.
Avoids Dilution of Promoter Holding	Unlike rights issues, where retail investors participate, QIP allows companies to strategically allocate shares to institutional investors.

Who are Qualified Institutional Buyers (QIBs)?

Qualified Institutional Buyers (QIBs) are institutional investors with financial expertise and the ability to evaluate investment risks. SEBI defines QIBs as:

Category	Examples
Mutual Funds	SBI Mutual Fund, HDFC Mutual Fund
Scheduled Commercial Banks	ICICI Bank, HDFC Bank
Foreign Portfolio Investors (FPIs)	BlackRock, Vanguard
Insurance Companies	LIC, ICICI Prudential
Pension Funds	EPFO, NPS Trust
Alternative Investment Funds (AIFs)	Private Equity, Venture Capital Funds
Public Financial Institutions (PFIs)	IFCI, SIDBI
Sovereign Wealth Funds	Abu Dhabi Investment Authority, Temasek

13. CreditAccess Grameen Secures $100 Million Multi-Currency Social Loan

Context:

CreditAccess Grameen, India’s largest NBFC-MFI, has raised a $100 million multi-currency syndicated social loan, marking a significant development in India’s microfinance and external borrowing landscape.

Key Highlights:

• Loan Size: $100 million
• Loan Type: External Commercial Borrowing (ECB)
  • RBI Automatic Route
  • First-of-its-kind ECB in India’s microfinance sector
• Currency Mix: Japanese Yen and US Dollar
• Participating Banks: 7 banks, mainly from South Asia and Far East
• Borrowing Cost: Highly competitive
  • Lower than the company’s average cost of borrowing
  • Comparable to domestic borrowing rates

Strategic Implications

• Use of Funds: To support social impact and financial inclusion through microloans
• Foreign Debt Target: Raise share of foreign borrowings to 25–30% by FY28
• Institutional Support: Second syndicated social loan led by Standard Chartered Bank
  • Earlier, a $200 million ECB was raised in 2023 with the same lead arranger

About CreditAccess Grameen

• Founded: 1999
• Headquarters: Bangalore, Karnataka, India
• MD: Udaya Kumar Hebbar
• CEO: Ganesh Narayanan
• Stock Listings: NSE and BSE

14. Paytm Launches Custom UPI ID Feature

Context:

Paytm has launched a custom UPI ID feature to enhance privacy and security while attracting new users to its platform. This follows NPCI’s approval allowing Paytm to onboard new UPI users after prior restrictions.

Key Highlights:

• Custom UPI IDs:
  • Users can now create personalised UPI handles
  • Eliminates the need to link UPI IDs with mobile numbers
  • Currently available for Yes Bank and Axis Bank users; more banks to be added soon
• Recent UPI Features Introduced by Paytm:
  • Transaction hide/unhide option for privacy
  • Monthly spending summaries
  • Downloadable UPI statements in PDF and Excel formats
  • Unified bank balance view across all linked accounts
  • Spending categorisation to manage finances
  • Receive Money widget for real-time payment alerts
  • Scan & Pay widget for instant QR payments
  • Auto top-up for UPI Lite (up to ₹5,000)
• Global Expansion:
  Paytm is enabling international UPI payments for Indian travellers in:
  • UAE, Singapore, France, Mauritius, Bhutan, Sri Lanka, and Nepal

About Paytm:

• Founded: 2010
• Headquarters: Noida, Uttar Pradesh
• Chairman & CEO: Vijay Shekhar Sharma

15. DFCC Bank Becomes First Foreign Corporate to List Green Bond at GIFT IFSC

Context:

Sri Lanka’s DFCC Bank PLC has become the first foreign corporate issuer to list green bonds on the NSE International Exchange (NSE IX) at GIFT City, India’s International Financial Services Centre (IFSC). This marks a significant step in promoting cross-border sustainable finance in South Asia.

Key Highlights:

• Issuer: DFCC Bank PLC, Sri Lanka’s oldest development bank
• Bond Size: LKR 2.5 billion (~USD 8 million)
• Green Bond Listing Date: June 10, 2025
• Location: NSE International Exchange, GIFT City, Gujarat
• Inauguration Ceremony: Attended by IFSCA Chairperson K. Rajaraman and DFCC Bank officials
• Green Use of Proceeds: Funding solar energy projects (ground-mounted and rooftop PV systems) in Sri Lanka
• Compliance Framework: Aligned with ICMA’s Green Bond Principles and Sri Lanka’s Green Finance Taxonomy

Strategic Significance:

• Pioneering Status: First green bond from a foreign corporate at GIFT IFSC
• Dual Listing: Also listed on Luxembourg Stock Exchange (LuxSE)
• Environmental Focus: Contributes to Sri Lanka’s target of 70% renewable energy by 2030
• SDG Contribution: Supports SDG 7 (Affordable & Clean Energy) and SDG 13 (Climate Action)
• Regional Integration: Encourages more cross-border ESG-aligned issuances from BIMSTEC and South Asian countries

Agriculture

1. India to Use Satellite Technology for Kharif Acreage

Context:

For the first time, India’s first advance estimates of kharif crop acreage, scheduled for September 2025, will be based entirely on satellite data, replacing the traditional manual girdawari system. The move marks a major leap in the digitization of agricultural statistics.

Key Highlights:

Digital Transformation of Crop Estimation:

• Satellite-based data will replace the girdawari system, where village accountants manually recorded crop data.
• The Ministry of Agriculture and Farmers Welfare is spearheading this shift across all districts.
• This initiative aligns with India’s broader Digital Agriculture Mission.

Expanded Crop Coverage:

• Current methods cover only 25–26 major kharif crops (e.g., rice, maize, jowar).
• Satellite data enables estimation for new and emerging crops such as:
  • Dragon fruit
  • Kiwi
  • Avocado
  • Berries

Strategic Benefits:

• Enhances data-driven policy making.
• Reduces dependency on manual processes prone to errors and delays.
• Improves timely interventions, especially during crop failures or climate-related disruptions.

2. CROPIC (Collection of Real-Time Observations and Photos of Crops) scheme

Context:

The Ministry of Agriculture and Farmers Welfare has launched the to integrate artificial intelligence in crop monitoring and crop insurance under the Pradhan Mantri Fasal Bima Yojana (PMFBY).

Key Objectives:

• Use AI to identify crop types, growth stages, and detect crop stress or damage.
• Support faster, data-backed decisions for insurance claims and agricultural planning.
• Build a real-time, geo-tagged crop image repository across India.

How CROPIC Works

• Photo Collection: Farmers take and upload 4–5 photos of their crops per season using the CROPIC mobile app.
• AI-Powered Analysis: A cloud-based platform analyzes images to classify crop condition, type, and health.
• Official Dashboard: Visual insights and crop health status are made available to government officials via dashboards.
• Insurance Integration: Enables automated and transparent claim verification under PMFBY, reducing manual assessment delays.

Rollout Plan

• Pilot Phase: Implemented in 50 districts starting Kharif 2025, covering three notified crops per district.
• Technology Support: Images linked with coordinates; analysis supported by AI to minimize human bias.
• Funding: Backed by the Fasal Bima Yojana’s Innovation and Technology Fund (FIAT) with a corpus of ₹825 crore.
• Full Launch: Pan-India rollout planned post Rabi 2025–26 for all major PMFBY crops.

Benefits

• Speeds up claim settlement under crop insurance.
• Enhances transparency and data credibility.
• Helps government build a centralized agri-image database for future use in research and policy.
• Empowers farmers by giving real-time visibility into crop performance and insurance.

3. Govt Plans Region-Wise Fertilizer Allocation, Capping Subsidies Based on Crop Needs

Context:

The Union government is considering capping subsidized fertilizer distribution and aligning soil nutrient allocation with region-specific crop requirements and sowing patterns. The proposal, currently under inter-ministerial consultation, aims to improve soil health, promote efficient nutrient use, and reduce the rising fertilizer subsidy burden.

Key Features of the Proposed Plan

• Subsidized fertilizer distribution to be capped based on scientific assessment.
• Nutrient allocation will be linked to specific crops and regional sowing patterns.
• Point-of-sale (PoS) units in villages/panchayats will allocate fertilizers accordingly.
• Policy to be aligned with India’s agri-export quality norms and soil sustainability goals.

Objectives

• Reduce excessive and unbalanced fertilizer use, particularly urea.
• Lower the government’s subsidy bill, which has declined:
• Ensure compliance with global residue and quality standards in Indian agri-exports.

4. Inland Fisheries & Aquaculture Meet 2025

Event Overview:

• Event Name: Inland Fisheries & Aquaculture Meet 2025
• Organised by: Department of Fisheries, Ministry of Fisheries, Animal Husbandry & Dairying (MoFAH&D)

Major Announcements and Launches

• PMMSY Pradhan Mantri Matsya Sampada Yojana (PMMSY) Projects Launched/Funded:
  • Inauguration and foundation laying of fisheries projects in 7 inland states and UTs
  • Total Outlay: ₹52 crore under Pradhan Mantri Matsya Sampada Yojana (PMMSY)
  • Launch of Reservoir Fisheries Cluster at Halali Dam, MP
• Distribution of Benefits:
  • Kisan Credit Cards (KCC) to fishers
  • Aquaculture Insurance for risk mitigation
  • Certificates for Fisheries Cooperatives, FFPOs, and Start-ups

Technical Sessions Focus Areas

• Reservoir leasing policies
• Sustainable riverine and wetland fisheries
• Strengthening supply of quality inputs
• Cold-water fisheries development

Facts To Remember

1. Fire on Cargo Ship ‘Wan Hai 503’ Off Kerala Coast: Major Salvage Efforts Underway Amid BLEVE Risk

The cargo vessel mv Wan Hai 503 caught fire off the coast of Kerala, between Beypore and Azhikkal ports, triggering a multi-agency emergency response involving the Indian Coast Guard (ICG) and MERC Salvage Master.

2. SBI hires 13,455 clerical staff to boost customer experience

State Bank of India (SBI) said it has hired 13,455 juaior associates (clerical staff) to enhance customer experience at it’s branches across the country.

3. Brazil and Ecuador book World Cup berths, Uruguay on the verge

Brazil booked its place at the 2026 World Cup in North America on Tuesday with a lacklustre 1-0 home victory over Paraguay, the first win of Carlo Ancelotti’s reign.

4. Netherlands thrashes Malta, Poland stumbles at Finland and Australia bests Saudi Arabia, punches ticket to big event

Netherlands maintained its winning start to European 2026 World Cup qualifying by dismissing Malta and Australia qualified for next year’s World Cup in North America.

5. Union Bank , Canara Bank, IOB cut retail loan rates by 50 bps

Union Bank of India, Canara Bank, and Indian Overseas Bank have cut the external benchmarkk lending rate by 50 basis points after the Reserve Bank of India announceda 50 bps cut in the policy rate.