Daily Current Affairs Quiz
14 August, 2025
National Affairs
1. Ministry of Panchayati Raj Launches AI-Powered ‘SabhaSaar’ Tool
Context:
The Ministry of Panchayati Raj (MoPR) has launched SabhaSaar, an Artificial Intelligence (AI) and Natural Language Processing (NLP)-based tool to automatically generate structured Minutes of Meetings (MoM) from Gram Sabha and other Panchayat meetings’ audio and video recordings.
Key Features:
– AI & NLP Integration: Transcribes spoken content, identifies key decisions and action points, and produces formatted meeting minutes
– Multi-Language Support: Currently supports 13 Indian languages, with plans to expand gradually
– Integration with Bhashini: Ensures translation and accessibility across linguistic backgrounds
– Automated Summarization: Highlights key decisions, resolutions, and action points
– Structured Output: Generates well-formatted, official-ready minutes
Significance:
– Participatory Governance: Strengthens local democracy by standardizing meeting records
– Efficiency: Reduces manual documentation time, allowing Panchayat officials to focus on governance and service delivery
– Transparency & Accountability: Ensures accurate, structured, and tamper-proof records
2. Export Promotion Mission
Context:
The Government of India is set to launch a ₹2,250 crore Export Promotion Mission aimed at safeguarding Indian industries from global trade shocks, including recent US tariff hikes on Indian goods.
Background:
- Announced in the Union Budget 2025 on 1st February 2025
- Presented by the Directorate General of Foreign Trade (DGFT) to export councils
- Developed in response to high tariffs affecting sectors such as textiles, chemicals, leather, and footwear
- Nodal Ministry: Ministry of Commerce and Industry
Objectives:
- Protect Indian exports from global market volatility and protectionist measures
- Expand India’s presence in new international markets and strengthen supply chains
- Enhance the competitiveness of MSMEs and e-commerce exporters
Key Features:
- Two Broad Components:
- NIRYAT PROTSAHAN – Trade finance support for exporters
- NIRYAT DISHA – Driving international holistic market access
- Financial Support: Easy credit schemes for MSMEs and e-commerce exporters
- Market Expansion: Assistance for exploring untapped markets and product diversification
- Overseas Warehousing: Facilitation of storage facilities abroad for supply efficiency
- Global Branding: International campaigns to promote Indian goods
- Ease of Doing Business: Simplification of trade procedures and GST rationalisation
3. India’s First Private EO Satellite Constellation under PPP Model
Context:
The Indian National Space Promotion and Authorization Center (IN-SPACe) has selected a PixxelSpace India-led consortium to design, build, and operate India’s first fully indigenous commercial Earth Observation (EO) satellite constellation under a Public-Private Partnership (PPP) model.
About the Initiative:
- What It Is: A landmark space project deploying 12 advanced EO satellites built and operated by the private sector in collaboration with the government
- Lead Partner: PixxelSpace India
- Consortium Members: Piersight Space, Satsure Analytics India, Dhruva Space
Key Features:
- Constellation Size: 12 state-of-the-art EO satellites
- Applications:
- Climate change monitoring
- Disaster management
- Agriculture analytics
- Marine surveillance
- National security
- Urban planning
- Global Reach: Data will cater to international demand for geospatial intelligence
- Data Output: Provides Analysis Ready Data (ARD) and Value-Added Services (VAS)
- PPP Model: First of its kind under IN-SPACe’s private sector promotion framework
4. National Sports Governance Bill & National Anti-Doping (Amendment) Bill
Context:
Parliament has passed the National Sports Governance Bill and the National Anti-Doping (Amendment) Bill, marking a landmark moment in India’s sports administration. Both bills now await the President’s assent to become law.
National Sports Governance Bill
- National Sports Bodies (NSBs):
- National Olympic Committee (NOC): The only official body for Olympic sports in India
- National Paralympic Committee (NPC): The sole authority for Paralympic sports
- Other Bodies: National Sports Federations (NSF) and Regional Sports Federations (RSF)
- National Sports Board (NSB):
- Can recognize any sports organization as a National Sports Body
- Chairperson and members appointed by the Central Government
- National Sports Tribunal:
- Handles sports-related disputes quickly
- Civil courts cannot interfere in cases under the Tribunal
- Oversight of Elections:
- Central government to set up a panel of electoral officers to supervise elections of national sports bodies
- Central Government Powers:
- May exempt a national body or its affiliates from any part of the Bill if it is necessary to promote the sport
National Anti-Doping (Amendment) Bill, 2025
- Appeal Panel:
- Central government can set up an Appeal Panel to hear appeals against decisions of the Disciplinary Panel
- Operational Independence:
- Both the Appeal Panel and National Anti-Doping Agency will have more autonomy in decision-making
- Alignment with International Standards:
- Provisions of the World Anti-Doping Code will now have the force of law in India
Banking/Finance
1. RBI Report on Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI)
Context:
The Reserve Bank of India (RBI) has released a report by its committee on the Framework for Responsible and Ethical Enablement of AI (FREE-AI) to guide safe, fair, and transparent adoption of AI in banking and finance. Objective: To encourage the responsible and ethical adoption of Artificial Intelligence (AI) in the financial sector.
Why AI is Important for the Financial Sector?
- Efficiency & Automation – Faster transactions, loan approvals, fraud detection, compliance checks.
- Better Decisions – Advanced analytics for credit scoring, risk assessment, and investments.
- Improved Customer Experience – Chatbots, voice assistants, personalized services.
- Fraud Prevention – Real-time anomaly detection and cybersecurity enhancement.
- Regulatory Compliance – Automated monitoring for RBI/SEBI norms.
Challenges in AI Adoption
- Data Privacy Risks – Possible misuse or breaches of sensitive financial data.
- Bias & Discrimination – Poor-quality data can lead to unfair outcomes.
- High Costs – Infrastructure and skilled workforce are expensive.
- Regulatory Gaps – No universal AI governance standards yet.
- Cybersecurity Threats – AI systems may be manipulated or hacked.
- Lack of Explainability – Complex “black box” AI decisions are hard to understand.
RBI’s 7 Sutras (Guiding Principles) for AI in Finance:
- Trust is the foundation – Build transparency and reliability.
- People first – AI should support, not replace, human decision-making.
- Innovation over restraint – Encourage responsible innovation.
- Fairness and equity – Prevent bias and ensure equal access.
- Accountability – Financial institutions must own AI decisions.
- Understandable by design – Models must be explainable to users.
- Safety, resilience, sustainability – AI must be secure, adaptable, and long-term focused.
Key Recommendations:
- Shared AI Infrastructure – Common data & computing platforms for regulated entities.
- AI Innovation Sandbox – Safe testing space for AI applications in finance.
- Indigenous AI Models – India-specific tools for local banking needs.
- Board-Approved AI Policy – Governance framework for AI use in each institution.
- Risk Assessment for AI Products – Include AI-specific checks before launch.
- Consumer Protection & AI Audit – Integrate AI into grievance redressal and compliance reviews.
- Cybersecurity Strengthening – Robust response plans for AI-related cyber incidents.
About the FREE-AI Committee:
- Constituted as per RBI’s December 6, 2024 policy statement.
- Chairperson – Dr. Pushpak Bhattacharyya.
- Objective – Promote innovation in AI while safeguarding transparency, fairness, accountability, and customer protection in financial services.
2. RBI’s Revised Co-Lending Guidelines to Boost NBFC Growth – Crisil
Context:
RBI has issued revised co-lending guidelines, expected to create more growth opportunities for Non-Banking Financial Companies (NBFCs), as per Crisil Ratings. The changes broaden regulatory oversight and lending flexibility while reducing funding constraints for smaller NBFCs.
Key Highlights:
- Applicability – Extended to all arrangements between all Regulated Entities (REs) and all forms of loans (secured and unsecured).
- Minimum Retention Requirement – REs must retain at least 10% of loans on their books, down from the 20% requirement for NBFCs earlier.
- Benefit for Smaller NBFCs – Lower retention eases funding pressure for mid- and small-sized NBFCs.
- Direct Lending Guarantee (DLG) – Originating REs can now provide DLG of up to 5% of loans across all lending forms, earlier limited to digital lending.
- Uniform Asset Classification – All co-lending partners must follow consistent classification for a given loan exposure, ensuring transparency and standard risk assessment.
Impact Analysis by CRISIL
- Growth Catalyst – Broader scope and reduced retention norms likely to expand NBFC loan books.
- Risk Sharing – DLG expansion strengthens collaboration between banks and NBFCs.
- Regulatory Uniformity – Common asset classification promotes fair borrower profiling and reduces disputes.
3. Overseas Direct Investments (ODIs)
Context:
Indian companies investing funds abroad through Overseas Direct Investments (ODIs) are facing heightened scrutiny from banks, which are increasingly questioning the business rationale, viability, and end-use of funds.
Regulatory Background:
- A company can invest up to four times its net worth in ODIs.
- The move comes amid a dramatic 96% fall in net foreign direct investment (FDI) in 2024-25, partly due to increased outward investment and repatriation by foreign investors.
- Since mid-2022, regulations allow companies more freedom to write off unviable overseas investments, prompting banks to adopt a cautious approach.
Overseas Direct Investment (ODI)
Overseas Direct Investment (ODI) is when Indian companies or individuals invest in businesses outside India. This can be done in two main ways – by setting up a Joint Venture (JV) with a foreign partner or by creating a Wholly-Owned Subsidiary (WOS) in another country.
Purpose – To expand their operations, access new markets, benefit from resources, or diversify risks.
For example – An Indian car company opens a factory in another country to take advantage of lower labour costs. However, sectors like real estate and banking are not allowed for ODI.
4. SEBI Proposes Definitions for Algorithmic and Proprietary Trading in Broker Regulations
Context:
The Securities and Exchange Board of India (SEBI) has proposed to revise stock brokers’ regulations by including definitions for algorithmic trading and proprietary trading, which are currently not defined under existing rules.
Proposals
Algorithmic Trading:
Proposed Definition: Defined as any order generated or placed using automated execution logic.
What is Algorithmic Trading?
A process where trades are executed automatically using computer programs based on predefined rules like price, time, or volume thresholds far faster than a human could.
Proprietary Trading:
Proposed Definition: To be formally incorporated in the broker regulations, aligning with current market practices.
What is Proprietary Trading?
Proprietary trading refers to the practice where a brokerage firm, investment bank, or financial institution trades stocks, bonds, derivatives, currencies, or other financial instruments using its own capital rather than client funds. The goal is to earn direct profits from market opportunities instead of earning only commissions from client trades.
Other Proposals:
- Execution Only Platform: Proposed to mean any digital/online platform facilitating transactions such as subscription, redemption, and switch transactions in direct mutual fund plans.
- Access to NDS-OM Platform: Stock brokers may be allowed access to the Negotiated Dealing System-Order Matching (NDS-OM) platform, currently used by banks and primary dealers for government securities trading.
- Regulatory Alignment: Transactions by stock brokers on other platforms will remain under the purview of the respective regulators or authorities.
5. RBL Bank Partners with CAMSPay to Launch Digital Payment Gateway for Enterprises
Context:
RBL Bank has partnered with CAMSPay, the payments arm of CAMS, to introduce a new digital payment gateway platform catering to Indian enterprises.
Key Highlights:
- Partnership Role: RBL Bank will act as the merchant acquiring settlement service partner, while CAMSPay provides payment technology innovation.
- Platform Features:
- Real-time settlement capabilities
- Secure card processing
- Real-time analytics
- Automated reconciliation
- Open API–based settlement services
Digital Payment Gateway Platforms
- A Digital Payment Gateway is an online service that acts as a bridge between a merchant’s website/app and the bank/payment network to process electronic transactions securely.
- It authorizes and facilitates the transfer of funds from the customer’s account to the merchant’s account.
6. SBI Launches Special Personal Loan Scheme for Agniveers
Context:
State Bank of India (SBI) has introduced a special personal loan scheme for Agniveers serving under the Government’s Agnipath recruitment programme, launched on the occasion of India’s 79th Independence Day.
Key Highlights:
- Loan Amount – Up to ₹4 lakh for Agniveers with an SBI salary account.
- Collateral – No collateral required.
- Repayment Tenure – Matches the term of the Agnipath scheme for flexibility.
Objective
- To provide financial support and convenience to Agniveers during and after their service, easing their transition to civilian life.
Agriculture
1. NABARD, APGB Partner with Aqua Exchange for IoT-Enabled Shrimp Farming Loans
Context:
The National Bank for Agriculture and Rural Development (NABARD) and Andhra Pradesh Grameen Bank (APGB) have signed a Memorandum of Understanding (MoU) with Aqua Exchange Agritech Pvt. Ltd. to pilot an innovative financing model for shrimp farmers in Andhra Pradesh.
Key Highlights:
- Pilot Project: Introduces IoT-enabled loans for shrimp farmers to monitor water quality, feed usage, and disease control in real time.
- Objective: Bring farmers into the formal credit system, reduce reliance on informal lenders, and enhance productivity and sustainability.
- Loan Disbursement: Loan sanction letters worth ₹1.25 crore were issued to five farmers, along with IoT devices.
- Participants: NABARD, APGB, Union Bank of India, and Aqua Exchange officials attended the signing in Vijayawada.
Significance:
- Promotes sustainable aquaculture practices and risk mitigation through technology.
- If successful, the model could be scaled across Andhra Pradesh, supporting India’s shrimp export industry.
Parallel Initiative – Tribal Development:
- NABARD sanctioned ₹3.46 crore for a six-year tribal development project in Buttayagudem and Polavaram mandals, Eluru district.
- Targets families from Particularly Vulnerable Tribal Groups (PVTGs).
- Focus on mango and cashew orchards with supplementary border crops.
Facts To Remember
1. RBI permits transition to continuous cheque clearance
The Reserve Bank of India (RBI) has decided to transition the Cheque Truncation System (CTS) from the current approach of batch processing to continuous clearing with settlement on realisation in two phases.
2. ICICI Bank trims S/B minimum balance to ₹15,000 from ₹50,000
In a U-turn, ICICI Bank has slashed the minimum monthly average balance (MAB) requirement to ₹15,000 from the earlier steep hike to ₹50,000, citing “valuable feedback” from customers.
3. Rohit rises to second, Gill retains top spot in ODI rankings
Rohit Sharma has risen to the No. 2 spot in the latest ICC ODI rankings for batters released. With 756 rating points, Rohit sits just behind India’s Test captain Shubman Gill (784 points). Babar Azam slipped to No. 3 while Virat Kohli held the fourth position with 736 points.
4. Rohith Krishna is India’s 89th GM
Rohith Krishna S. has always been good in academics. He, however, felt the pursuit of excellence in education slowed down his quest to become a chess Grandmaster.
5. SEBI Bars Wadhawan Brothers and Others, Imposes ₹120 Crore Penalty
The Securities and Exchange Board of India (SEBI) has barred Kapil Wadhawan, former chairman of Dewan Housing Finance Corporation Ltd (DHFL), his brother Dheeraj Wadhawan, and four others from accessing the securities market for five years. A cumulative penalty of ₹120 crore has also been imposed.
