Daily Current Affairs (DCA) 13 May, 2025

Daily Current Affairs Quiz
13 May, 2025

International Affairs

1. U.S.-China Agree to 90-Day Tariff Truce

Key Highlights:

• Major Tariff Rollback Announced:
  • U.S. and Chinese officials confirmed a deal to roll back most recent tariffs.
  • Both sides agreed to a 90-day truce to allow further trade negotiations.
• Tariff Reduction Details:
  • U.S. to reduce its tariff on Chinese goods from 145% to 30% (a 115 percentage point cut).
  • China to reduce its tariff on U.S. goods from 125% to 10% (matching 115 percentage point cut).
  • China’s Commerce Ministry stated that 91% of tariffs will be cancelled, with another 24% suspended for 90 days.

Current Tariff Structure:

• US Tariff on Chinese Imports: 30%
  • Includes a 10% base tariff + 20% extra due to fentanyl-related concerns
• China’s Tariff on US Imports: 10% (base tariff only)

Key Policy Shifts:

• China suspended all non-tariff barriers introduced after April 2, including export restrictions and corporate investigations.

Reasons Behind the Truce:

• Tariff Burden on Consumers: Raised prices disproportionately, hurting households more than helping producers.
• Rising Costs: Major retailers like Walmart faced inventory issues; general cost of living surged.
• Economic Slowdown: US GDP contracted in Q1 2025; economists warned of recession.
• Stagflation Risk: Tariffs contributed to inflation amid economic stagnation, raising fears of stagflation.

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National Affairs

1. E-Waste Management in India

Context:

India’s digital growth is driving massive use of electronic devices, leading to a dramatic rise in electronic waste (e-waste). As India moves toward its Viksit Bharat goal, managing this waste stream through sustainable mechanisms such as Extended Producer Responsibility (EPR) and fair floor pricing for recycling certificates becomes crucial.

E-Waste Growth in India

• E-waste generation rose 151.03% from 2017-18 to 2023-24.
• Volume increased from 7,08,445 metric tonnes to 17,78,400 metric tonnes.
• Annual increase of over 1.69 lakh metric tonnes signals an urgent need for systemic reform.

What is EPR and Why It Matters?

• Extended Producer Responsibility (EPR): Mandates producers, importers, and brand owners to manage their products’ end-of-life impacts.
• Encourages:
  • Sustainable design and pricing strategies
  • Lifecycle accountability
  • Reduction in municipal waste burden
  • Promotion of formal recycling systems

Consequences of Improper E-Waste Disposal

• Economic losses:
  • Over $10 billion/year due to water, air, and soil pollution
  • Over ₹80,000 crore/year in lost critical metals (gold, copper)
  • $20 billion/year in lost tax revenue from informal, unaccounted recycling
• Social costs:
  • Health hazards and exploitation of informal recyclers (mainly women and children)
  • Average lifespan of workers in this sector is less than 27 years

International Conventions on E-Waste Management

• Basel Convention (1989): Controls transboundary movement of hazardous waste; India is a signatory.
• Bamako Convention (1991): Bans import of hazardous waste into Africa.
• Minamata Convention on Mercury (2013): Regulates mercury use; India ratified it in 2018.
• Stockholm Convention on POPs (2001): Restricts persistent organic pollutants; India is a party.

National Framework for E-Waste Management in India

• E-Waste (Management) Rules, 2022: Focus on Extended Producer Responsibility (EPR) and recycling through registered entities.
• Hazardous and Other Wastes Rules, 2016: Regulate import, storage, and handling of hazardous waste.
• National Action Plan for Chemical and Waste Management: Aligns with Stockholm and Rotterdam Conventions.

Common E-Waste Disposal Methods

• Landfilling: Cheap but causes soil and water contamination.
• Incineration: Reduces waste volume, but emits toxic gases.
• Recycling: Safely recovers metals, plastics, and reduces environmental risks.

Key Issues and Challenges in E-Waste Management

• Informal Sector Dominance: 50–80% of global e-waste handled informally; causes toxic exposure.
• Infrastructure Deficit: Limited authorized collection and recycling facilities.
• Public Unawareness: Consumers and institutions often dispose of e-waste improperly.
• Environmental Hazards: Toxic leachates and air pollution from improper disposal.

Strategies to Strengthen E-Waste Management in India

• Formalize Informal Sector: Train and integrate informal recyclers.
• Adopt Technological Innovations: Use AI/IoT for tracking and efficient recycling.
• Refurbishing Programs: Incentivize reuse and repair (as seen in Germany, EU).
• Public Awareness Campaigns: Educate citizens about safe disposal.
• International Collaboration: Partner with ITU and other global bodies for tech and capacity building.

Global Best Practices to Learn From

• EU: WEEE Directive, EPR compliance, eco-design rules, and “right to repair.”
• Japan: EPR under Home Appliance Recycling Law; nationwide recycling fee system.
• China: Formalized informal sector via training and incentives under WEEE regulations.

The Need for a National Recycling Vision

• India’s e-waste management must align with its sustainability goals
• EPR floor pricing is central to formalising the sector and unlocking its full potential
• Urgent action is necessary — a 73% rise in five years is a stark warning
• A stable, well-funded system can lead India to global leadership in sustainable waste management

2. WHO’s State of the World’s Nursing 2025

Key Global Findings:

• Worsening Shortage: WHO warns of an intensifying global nursing shortfall.
• Regional Burden: Africa and the Eastern Mediterranean are projected to account for 70% of the global nursing shortage by 2030.

Status of Nursing in India

• Nurse-to-Population Ratio:
  • ~30 nurses per 10,000 population
  • Below WHO’s recommended 44.5 health workers per 10,000 people
• Nursing Education:
  • Increased graduate output
  • Quality issues, faculty shortages, and inconsistent regulation persist
• Global Migration Trend:
  • India is a top exporter of nurses to the UK, Gulf, and Australia
  • Outmigration is driven by low wages, limited career paths, and poor working conditions
• Workforce Retention Challenges:
  • Nurses often leave due to:
    • Wage delays
    • Unsafe work environments
    • Lack of mental health support
    • Minimal leadership opportunities

Key Challenges in India’s Nursing Sector

• Inadequate Workforce Supply
  • Falls short of WHO’s benchmark
  • Acute shortages in Primary Health Centres (PHCs) and Community Health Centres (CHCs), especially in rural areas
• Urban-Rural Disparity
  • Workforce heavily concentrated in urban private hospitals
  • Rural and public health systems remain understaffed
• Poor Working Conditions
  • Long hours, delayed payments, unsafe conditions
  • Mental and physical burnout among nurses
• Lack of Leadership Representation
  • Scarce presence of Chief Nursing Officers (CNOs) at state/national level
  • Limits nurse-led input into health policy
• Low Public Investment
  • Inadequate infrastructure, limited training capacity
  • Restricted budget allocations for nursing sector development
• Unbalanced International Migration
  • No standardized returns or compensations for exported talent
  • Bilateral migration agreements lack equity

3. Mission D3

What is Mission D3?

Mission D3 is a community-led social movement launched in November 2024 by Bhil and Bhilala tribal youths in Alirajpur and Jhabua districts of Madhya Pradesh. The campaign aims to eliminate three major financial and cultural burdens from tribal weddings:

• Dahej (Dowry)
• Daroo (Liquor)
• DJ Music

Core Objective

To promote simple, debt-free, and culturally authentic tribal weddings, protecting poor families from exploitative customs and post-marriage indebtedness.

Key Features of Mission D3

• Grassroots Initiative
  • Led by social activist Nitesh Alawa
  • Mobilized tribal youth and community elders
  • Backed by local police, MLAs, and sarpanches
• Rapid Community Adoption
  • Gaining traction across villages in Jhabua and Alirajpur
  • Seen as a youth-driven cultural revival movement
• Economic Relief
  • Families now save ₹1–5 lakh by avoiding dowry, liquor
  • Reduces dependency on moneylenders and high-interest loans
• Cultural Revival
  • DJs replaced with traditional musical instruments like dhols and madals
  • Emphasis on tribal heritage and community values
• Curbing Migration
  • By reducing wedding-related debt, the movement helps prevent seasonal migration for debt repayment

Social Impact

• Improved financial stability for tribal households
• Enhanced community cohesion and pride
• Strengthened women’s dignity by rejecting dowry customs

4. MY Bharat (Mera Yuva Bharat)

Context:

Mera Yuva Bharat (MY Bharat) is an autonomous institution under the Ministry of Youth Affairs and Sports, designed to empower young Indians through technology-driven engagement and youth-led development.
It was officially launched on October 31, 2023, to commemorate the birth anniversary of Sardar Vallabhbhai Patel.

Primary Objectives

• Promote inclusive youth participation in nation-building and governance.
• Develop the youth as catalysts of change for Amrit Kaal and Viksit Bharat@2047.
• Ensure equal access to opportunities for learning, volunteering, and mentorship.

Key Features of MY Bharat

• Volunteer Mobilisation
  • Engages youth in activities like public service, disaster relief, and awareness drives.
• Digital Youth Profiles
  • Youth can create profiles showcasing their skills, interests, and past activities.
  • Helps them connect with government initiatives, NGOs, and private sector projects.
• Experiential Learning
  • Provides on-ground project experience with Panchayats, Urban Local Bodies (ULBs), and businesses.
• Mentorship & Peer Networking
  • Builds a national mentorship ecosystem through sector experts and youth icons.
  • Encourages peer-to-peer learning and collaboration.
• Government Scheme Awareness
  • Mobilizes youth as ‘Vikas Ambassadors’ to spread awareness about flagship government schemes at the grassroots.

Significance for Youth and Nation

• Encourages active civic engagement and leadership.
• Builds a pipeline of skilled, aware, and empowered citizens ready for 2047.
• Bridges the gap between government programs and youth aspirations.

5. Geotubing

What is Geotubing?

Geotubing involves the use of large, cylindrical geotextile tubes (commonly called geotubes) filled with sand, slurry, or dredged material. These are strategically placed underwater or along shorelines to act as submerged barriers, reducing wave energy and preventing erosion.

Key Features of Geotubes

• Submerged Breakwater Effect:
  • Geotubes dissipate incoming wave energy before it reaches the coast, reducing shoreline erosion.
• Sand Trapping & Deposition:
  • Acts as a mechanism for natural beach nourishment by trapping sand and promoting sediment build-up.
• Modular Design:
  • Tubes can be customized in size and shape to match diverse terrains and project requirements.

Materials Used in Geotubing:

• High-Performance Geotextiles such as:
  • Polypropylene (PP)
  • Polyester (PET)
• Characteristics:
  • Permeable for water drainage
  • Resistant to UV rays, chemicals, and biological degradation
  • High tensile strength for structural durability

Advantages of Geotubing

• Durability: Long lifespan even in harsh marine environments
• Cost-Effective: Cheaper and easier to install than concrete or steel seawalls
• Eco-Friendly: Non-toxic and used in wetland restoration projects
• Multi-functional: Applications go beyond coastal protection to industrial and environmental uses

Applications of Geotubing:

1. Coastal Protection
   • Seawalls, submerged breakwaters, sand dune reinforcements
   • Example: Poonthura, Kerala – three-layer geotube barrier installed perpendicular to coast
2. River & Lake Management
   • Stabilising eroding riverbanks, sediment control in lakes
3. Wastewater & Industrial Use
   • Dewatering of sludge in treatment plants, dredging operations
4. Infrastructure Projects
   • Foundation stabilization for roads, railways, ports, reservoirs
5. Environmental Remediation
   • Site isolation, leachate containment, and pollution prevention

Banking/Finance

1. Special-Purpose Vehicle (SPV)

Context:

Bengaluru Smart Infrastructure Limited (B-SMILE) is a special-purpose vehicle (SPV) set up by the Karnataka government to manage large urban infrastructure projects.

• The initial government commitment is ₹7,000 crore.
• Though open to private investment, B-SMILE will be fully state-owned.
  • 90% equity: Government of Karnataka
  • 10% equity: Bruhat Bengaluru Mahanagara Palike (BBMP)

What is a Special Purpose Vehicle (SPV)?

• An SPV is a legally separate subsidiary formed by a parent company to isolate financial risk.
• It is also called a Special Purpose Entity (SPE) and is bankruptcy-remote, meaning it remains unaffected if the parent company collapses.

Purpose and Uses of SPVs

• Risk Isolation: Limits financial exposure from risky ventures.
• Asset Securitization: Packages assets (e.g., loans, receivables) for resale to investors.
• Joint Ventures: Facilitates specific projects with external partners.
• Property or Infrastructure Projects: Used in real estate, renewable energy, and public-private partnerships (PPPs).
• Venture Capital: Investors pool money via an SPV for a single startup investment.

Legal Forms of SPVs

• SPVs can be formed as LLCs, trusts, corporations, or limited partnerships.
• May operate independently with their own management and finances.

Accounting and Financial Risks

• SPVs are off-balance sheet entities—their debts and assets may not appear in the parent company’s accounts.
• This can obscure the actual financial position of the parent company.
• Investors should always review SPV financials to understand hidden risks.

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2. Bank Mitras

Context:

The Business Correspondent Resource Council (BCRC) has submitted a formal appeal to the Parliamentary Committee on Finance, urging a review of Bank Mitras’ commission structure and seeking infrastructure subsidies to support rural banking operations. The representation was made during a meeting with Bhartruhari Mahtab, Chairperson of the Committee.

What is the Bank Mitra Program?

The Bank Mitra program is an initiative under the Pradhan Mantri Jan Dhan Yojana (PMJDY) launched on August 28, 2014, that aims to extend banking services to unbanked and underbanked rural areas through appointed individuals called Bank Mitras, who act as business correspondents of banks.

The Department of Financial Services (DFS) within the Ministry of Finance of India is responsible for the scheme. 

Objectives of the Bank Mitra Program

• Last-mile banking access in remote locations
• Facilitation of account opening and KYC procedures
• Promotion of financial literacy and awareness of banking products

Key Benefits

• Access to basic banking services (deposits, withdrawals, fund transfers) near customers’ homes
• Employment generation for local youth
• Cost-effective financial inclusion model
• Encourages saving and digital payments through AEPS (Aadhaar Enabled Payment System)

Impact on Financial Inclusion

• Boost in bank account penetration in rural and tribal belts
• Smooth disbursal of welfare schemes via Direct Benefit Transfer (DBT)
• Reduction in informal financial practices and frauds due to formal system presence

3. AI-Based Training in PSBs

Context:

Government-run banks in India are increasingly leveraging artificial intelligence (AI), augmented reality (AR), and virtual reality (VR) to enhance customer service quality and boost employee soft skills, especially at the front desk. The move follows surprise inspections by the Department of Financial Services (DFS) that revealed gaps in professionalism, responsiveness, and behavior among branch-level staff.

Key Developments:

• AI-Powered Employee Training:
  • PSBs like Punjab National Bank (PNB) are using conversational AI to conduct 30-minute mock sessions.
  • These sessions assess communication skills, etiquette, and body language.
  • Employees receive a performance matrix and rankings to identify improvement areas.
• Immersive Learning via AR/VR:
  • AR and VR modules are being introduced to simulate real-life banking scenarios.
  • This provides employees with realistic, immersive training experiences.
• Real-Time Customer Feedback:
  • A quick response (QR)-based feedback system has been deployed.
  • Customers rate their experience post-transaction, with data sent to the head office for real-time monitoring.
• Soft Skills Pilot Programs:
  • Pilots are underway in several districts to train staff in empathy, active listening, and service etiquette.
  • Preliminary feedback shows higher customer satisfaction and employee confidence.

Structural Issues

• The push for AI training comes as deposit growth stagnates and customer service inconsistencies grow in PSBs.
• Staff shortages and heavy administrative workloads continue to undermine service delivery.
• In rural branches, a single officer often manages multiple functions (cash, compliance, etc.), leaving little time for customer interaction.

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4. RBI Surplus Transfer

Context:

India’s banking system is expected to see surplus liquidity rise to ₹5.5–6 lakh crore in the coming weeks, following a substantial dividend payout by the Reserve Bank of India (RBI) to the Central Government. This is likely to exert downward pressure on short-term interest rates, influencing bond markets and monetary policy outlook.

How the RBI Determines the Allocation of Dividends

The Reserve Bank of India (RBI) determines its annual dividend transfer to the Government of India based on the Economic Capital Framework (ECF). This framework balances fiscal support to the government with the need to maintain adequate financial buffers for monetary and financial stability.

Under Which Section RBI Transfers It’s Surplus To Central Government?

• Section 47, RBI Act, 1934: RBI must transfer surplus to the Central
  Government after risk provisions.
• Section 48: RBI is exempt from income and super tax.
• Section 49 deals with the publication of the bank rate.
• Section 50 outlines the provisions regarding the National Housing Credit
  (Long Term Operations) Fund.

Key Determinants of Dividend Allocation

Economic Capital Framework (ECF)

• Based on recommendations by the Bimal Jalan Committee (2018).
• RBI must maintain a Contingent Risk Buffer (CRB) of 5.5%–6.5% of its balance sheet.
• CRB covers risks such as:
  • Market volatility
  • Credit defaults
  • Operational and financial system disruptions

Dividend Calculation Process

• Surplus = Total income – Total expenditure – CRB provisioning
• Only the remaining surplus, after provisioning, is transferred to the Government of India under Section 47 of the RBI Act, 1934.

Sources of RBI’s Income

Primary Revenue Streams
Interest from Government Securities
Open Market Operations (OMOs)
Foreign Exchange Operations
Liquidity Adjustment Facility (LAF) earnings
Interest on loans and advances to banks

Recent Trends

• As of March 2024:
  • Forex reserves: USD 646 billion (with USD 409 billion in top-rated sovereign assets)
  • Lower dollar sales in FY24 (USD 153 bn) than FY23 (USD 213 bn), yet income remained strong
  • LAF operations significantly boosted earnings

Expenditure Components

RBI’s Key Expenses
Operational costs
Interest on deposits/borrowings
Cost of currency issuance
Provisioning for contingencies and revaluation losses

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5. AMEX and HSBC Lead Foreign Banks in Credit Card Growth in FY25

Context:

American Express (AmEx) and HSBC emerged as the top-performing foreign banks in net credit card additions in FY25, bucking the broader industry trend of decelerating growth in the credit card segment. The industry added over 8 million credit cards in total, reflecting a year-on-year slowdown.

American Express (AmEx)

American Express (AmEx) is a global payments company and financial services corporation known for its credit cards and other financial products. It offers a wide range of services, including credit cards, charge cards, payment processing, and travel-related benefits to individuals, businesses, and corporations. AmEx is headquartered in New York and operates in over 200 countries and territories, serving a global customer base. 

HSBC

HSBC, formally known as The Hongkong and Shanghai Banking Corporation Limited, is a global financial institution founded in 1865 with the purpose of facilitating trade between Europe and Asia. As described by HSBC, they aim to open up opportunities for their customers by leveraging their expertise, capabilities, and perspectives. Today, HSBC serves a global network of customers, including individuals, corporations, and governments, across 58 countries and territories. 

6. RBI Imposes Penalties on SBI and Jana Small Finance Bank for Regulatory Non-Compliance

Context:

The Reserve Bank of India (RBI) has levied monetary penalties on State Bank of India (SBI) and Jana Small Finance Bank for violations of regulatory norms, highlighting the central bank’s continued focus on supervisory enforcement in the banking sector.

Penalty on State Bank of India (SBI):

• Amount: ₹1.73 crore (₹1,72,80,000)
• Regulatory Violations:
  • Breach of “Loans and Advances – Statutory and Other Restrictions”
  • Non-compliance with “Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions”
  • Violation of “Opening of Current Accounts by Banks – Need for Discipline”

Penalty on Jana Small Finance Bank:

• Amount: ₹1 crore
• Reason: Contravention of certain provisions under the Banking Regulation Act, 1949

Clarification by RBI

• These penalties are related to deficiencies in regulatory compliance.
• The penalties do not impact the validity of any customer transactions or agreements with the concerned banks.

Contextual Update

• In March 2025, the RBI had also penalized:
  • HSBC Bank: ₹66.60 lakh
  • IIFL Samasta Finance: ₹33.10 lakh

7. Bhutan Launches World’s First National Cryptocurrency Tourism Payment System

Context:

Bhutan has become the first country globally to launch a national-level cryptocurrency payment system for tourism, in partnership with Binance Pay, a subsidiary of Binance Holdings Ltd, and DK Bank, Bhutan’s first fully digital bank.

Key Features of the Crypto Tourism Payment System

• Cashless Travel Experience
  • Tourists can pay using 100+ cryptocurrencies, including Bitcoin (BTC), Binance Coin (BNB), and USD Coin (USDC)
  • Payments accepted for:
    • Airline tickets
    • Tourist visas & SDF
    • Hotel bookings
    • Monument entry
    • Tour guides
    • Local shopping
• QR Code-Based Transactions
  • Utilizes static and dynamic QR codes for real-time payments
  • Eliminates need for card terminals or cash
• Automatic Currency Conversion
  • Crypto payments are instantly converted to Bhutanese Ngultrum (BTN)
  • Handled by DK Bank, ensuring stable payouts to merchants
• Promotes Financial Inclusion
  • Adopted by 100+ Bhutanese businesses, including remote and rural vendors
  • Enables participation in the $3 trillion global cryptocurrency market

About Binance Pay

A crypto payment platform by Binance Holdings Ltd, the world’s largest cryptocurrency exchange by trading volume, supporting secure, gas-free transfers and payments.

Agriculture

1. Dvara Solutions – Kissandhan Agri Financial Services partnership

Strategic Partnership

• Parties Involved: Dvara Solutions and Kissandhan Agri Financial Services Pvt Ltd (an NBFC subsidiary of SLCM)
• Objective: To digitize and streamline Kissandhan’s loan lifecycle using Perdix, Dvara’s core lending technology platform

Key Features of the Integration

• Adoption of Perdix’s full stack:
  • Loan Origination System (LOS)
  • Loan Management System (LMS)
  • Reports and Analytics
  • Co-lending Module
• Perdix supports over ₹15,000 crore in AUM across 20+ institutions

Expected Benefits for Kissandhan

• Enhanced operational efficiency and regulatory compliance
• Faster and more customized loan disbursal across various products like:
  • Micro Loan Against Property (Micro LAP)
  • Group Loans
  • Farmer Loans
  • Medium-Term Loans
• Improved customer experience and scalability in rural credit delivery

Impact So Far (as of April 30, 2025)

• ₹3,263.99 crore in disbursed loans
• 7+ lakh farmers reached
• 37,185 women beneficiaries in agri and allied sectors

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