Daily Current Affairs Quiz
14 June, 2025
International Affairs
1. Iran-Israel Conflict Triggers Oil Price
Context:
The latest escalation in tensions between Israel and Iran has sparked fears of oil supply disruptions and rising inflation in India. Though India does not import significant oil volumes directly from Iran, analysts warn of ripple effects across global markets.
Key Economic Risks for India
Crude Oil Import Cost Surge
- India imports over 80% of its crude oil requirements.
- Global oil prices surged 8% in a day following the Israeli attack on Iran.
Strategic Supply Route at Risk
- 20% of global oil supply passes through the Strait of Hormuz.
- Located between Iran and the Arabian Peninsula, any blockade or tension here could impact oil shipments from key Indian suppliers like Iraq, Saudi Arabia, and the UAE.
Implications for Indian Exports
Route Disruptions
- Conflict in the Middle East could block access to the Suez Canal and Red Sea.
- Indian exporters may be forced to reroute via the Cape of Good Hope, adding:
- 15–20 days transit time
- $500–1,000 per container
National Affairs
1. India’s Gaza Ceasefire Abstention at UNGA
Context:
India abstained from a United Nations General Assembly (UNGA) vote on June 13, 2025, that called for an immediate ceasefire in Gaza. The resolution passed overwhelmingly, but India chose not to support it — marking its fourth abstention on Gaza-related votes in three years. This move contrasts with India’s vote in favour of a ceasefire resolution just six months earlier, in December 2024.
United Nations General Assembly (UNGA)
The United Nations General Assembly (UNGA) is one of the six principal organs of the United Nations (UN), acting as its main deliberative, policymaking, and representative body. The Assembly is currently in its 79th session, with its authority defined in Chapter IV of the UN Charter.
- Formation:1945
- President: Philémon Yang
Composition and Voting Rights
- Comprises all 193 UN member states, each with one equal vote, ensuring equitable representation.
- Most matters are decided by a simple majority.
- Two-thirds majority is required for:
- Budgetary decisions
- Recommendations on peace and security
- Membership issues (election, admission, suspension, expulsion)
Key Functions and Responsibilities
- Approves the UN budget
- Appoints non-permanent members to the Security Council
- Appoints the UN Secretary-General
- Receives reports from other UN organs
- Adopts non-binding resolutions on global issues
- Creates subsidiary bodies for specialized mandates
- Can recommend collective measures under the Uniting for Peace resolution when the Security Council is deadlocked
Banking/Finance
1. Cryptocurrency or Virtual Digital Asset (VDA)
Context:
In a significant move to tighten compliance, the Income Tax Department has issued notices to thousands of taxpayers who failed to disclose income from cryptocurrency or Virtual Digital Asset (VDA) transactions.
What is Virtual Digital Asset (VDA)?
According to the Finance Act 2022 (India), a Virtual Digital Asset (VDA) is defined as:
- Any form of digital representation of value that is generated using cryptographic methods.
- A store of value or a unit of exchange, transferred electronically.
- Includes cryptocurrencies like Bitcoin, Ethereum, and stablecoins.
- Includes NFTs (Non-Fungible Tokens), which represent ownership of unique digital or physical assets.
- Excludes digital representations of traditional currencies regulated by governments (like CBDCs – Central Bank Digital Currencies).
Cryptocurrency (or virtual currency)
Crypto assets are assets issued or transferred using distributed ledger technology (DLT) or blockchain technology. They are a wide range of digital instruments that can represent value or ownership. Crypto assets include cryptocurrencies.
Cryptocurrency (or virtual currency) is likely the most well-known type of crypto asset. Cryptocurrency is a digital currency or medium of exchange. It can be used To exchange for products or services, like fiat currency (such as Canadian dollars or US dollars)
Background
- Growing Scrutiny of Crypto
- The move follows increased monitoring of crypto exchanges and wallet transactions.
- VDA income is taxable under Section 115BBH of the Income Tax Act, effective from April 2022.
- It attracts a flat 30% tax rate without deductions (except cost of acquisition) and 1% TDS under Section 194S.
2. External Benchmark Lending Rate (EBLR)
Context:
The country’s largest lender, State Bank of India (SBI), reduced its External Benchmark Lending Rate (EBLR) and home loan rate by 50 basis points, keeping with Reserve Bank of Indias half per cent cut in policy repo rate. The revised EBLR would be 8.15 per cent as against the old rate of 8.65 per cent.
External Benchmark Lending Rate (EBLR)
The External Benchmark Lending Rate (EBLR) represents a paradigm shift in India’s banking landscape, aiming to ensure better transmission of monetary policy to end borrowers. Initiated by the Reserve Bank of India (RBI), EBLR replaced internal benchmarks like IBLR and MCLR, which were found ineffective in ensuring fair and timely rate transmission.
Background: Evolution from IBLR and MCLR
Before EBLR, Indian banks relied on two major benchmarks:
- Internal Benchmark Lending Rate (IBLR)
- Marginal Cost of Funds Based Lending Rate (MCLR)
Despite RBI’s policy rate cuts, banks often failed to pass on the benefits to borrowers, citing factors like internal spreads, operational costs, and non-performing assets. This inefficiency led RBI to constitute an Internal Study Group (ISG), whose recommendations culminated in the adoption of EBLR from October 1, 2019.
What is EBLR?
EBLR stands for External Benchmark Lending Rate, a rate linked to an external reference such as:
- RBI’s Repo Rate
- 3-month or 6-month Treasury Bill yield
- Any other benchmark published by Financial Benchmarks India Pvt. Ltd (FBIL)
Key Regulatory Instructions by RBI
- All floating-rate retail and MSME loans must be linked to EBLR.
- A bank must adopt a single benchmark for each loan category.
- The interest rate must be reset at least once every 3 months.
- Spread over EBLR is permitted, but any increase must be based on material changes in the borrower’s creditworthiness.
Why the Shift to EBLR?
The transition to EBLR was driven by key shortcomings of IBLR and MCLR:
- Poor transmission of RBI’s rate cuts to borrowers.
- Lack of transparency in internal benchmark setting.
- Limited influence of monetary policy on actual lending rates.
- Variability in spreads and subjective decisions across banks.
Impact of a Reduction in External Benchmark Lending Rate (EBLR) on Borrowers
When the External Benchmark Lending Rate (EBLR) is reduced, borrowers with EBLR-linked loans—such as home loans, personal loans, and loans to small businesses—generally benefit from lower interest rates. This mechanism ensures faster and more transparent monetary transmission compared to older internal benchmark systems like MCLR (Marginal Cost of Funds Based Lending Rate).
3. RBI Issues New Guidelines to Ease Reactivation of Dormant Bank Accounts and Access to Unclaimed Deposits
Context
The Reserve Bank of India (RBI) has issued revised guidelines aimed at simplifying the process for customers and heirs to reactivate inoperative bank accounts and claim unclaimed deposits. The move is designed to improve access to forgotten funds and reduce bureaucratic hurdles, particularly for senior citizens and rural customers.
What Are Inoperative Accounts and Unclaimed Deposits?
- According to RBI norms:
- A savings or current account becomes inoperative if there has been no customer-initiated transaction for 10 years.
- Term deposits, too, become unclaimed if not withdrawn within 10 years of maturity.
- Such funds are transferred to the Depositor Education and Awareness (DEA) Fund, maintained by the RBI.
Challenges Faced Earlier
- Physical visits to the home branch were mandatory.
- Process involved lengthy documentation, especially for legal heirs.
- Lack of digital support hindered accessibility, particularly in semi-urban and rural areas.
Key Changes Under the New RBI Guidelines
- Flexible KYC Update Options
- Customers can now update KYC at any branch of their bank, not just the home branch.
- Video-Based Customer Identification
- Banks have been directed to offer video KYC services for reactivating dormant accounts.
- Use of Business Correspondents
- Banks may authorise their business correspondents (BCs) to assist customers in completing KYC formalities in remote areas.
Expected Impact
- Faster reactivation of dormant accounts.
- Improved customer convenience, especially for elderly and rural users.
- Likely increase in the number of claims for unclaimed deposits lying with banks and the DEA Fund.
- Enhanced financial inclusion and trust in the banking system.
BS
4. Scapia Partners with Federal Bank to Launch Dual-Network RuPay Credit Card
Context:
Scapia, a Bengaluru-based travel fintech startup, has partnered with Federal Bank to launch the Scapia Federal RuPay Credit Card, featuring a dual-network architecture (VISA + RuPay). The card is designed for seamless integration of credit and UPI payments, catering especially to frequent travelers and digital-savvy users.
Key Features of the Scapia Federal RuPay Credit Card
- Dual-Network Support:
- Works on both VISA and RuPay, allowing for online, offline, UPI, and international transactions from a single credit card account.
- Integrated Spend Management:
- Users can track both credit card and UPI expenses (via RuPay) in one consolidated platform.
- Zero Forex Markup:
- No foreign exchange markup fees on international purchases, enhancing value for global travelers.
- Exclusive Airport Privileges:
- Unlimited domestic airport lounge access
- Complimentary dining, shopping, and spa benefits at airport outlets.
About Scapia
- Founded: 2022
- Headquarters: Bengaluru
- Founder & CEO: Anil Goteti
5. RBI Permits STRIPS Trading in State Government Bonds to Deepen Market Liquidity
Context:
The Reserve Bank of India (RBI) has expanded its STRIPS (Separate Trading of Registered Interest and Principal of Securities) framework to include State Government Securities (SGSs), aligning it with the existing facility for Central Government Securities (G-Secs). The move aims to boost liquidity, price discovery, and retail investor participation in the state bond market.
What is STRIPS?
STRIPS allows the principal and interest components of fixed-coupon securities to be traded separately as individual zero-coupon instruments. This promotes flexibility in trading and widens the investor base.
Key Highlights of the STRIPS Facility for State Bonds
- Eligible Securities Criteria:
- Fixed-coupon state government bonds only
- Residual maturity up to 14 years
- Outstanding issuance size of at least ₹10 billion (~$116.93 million)
- Must be SLR-eligible securities (Statutory Liquidity Ratio)
- Purpose & Benefits:
- Facilitates independent trading of interest and principal components
- Enhances market liquidity and pricing efficiency
- Offers banks and investors more options for portfolio and risk management
- Implementation:
- Introduced after consultations with state governments and market participants
- Effective immediately as per RBI’s circular
- Aligned with existing guidelines for central government STRIPS trading
Agriculture
1. NABARD Gets Government Nod to Raise ₹19,500 Crore via Deep-Discount Bonds
Context:
The National Bank for Agriculture and Rural Development (NABARD) has received central government approval to raise ₹19,500 crore (approximately $2.3 billion) through deep-discount zero-coupon bonds, the largest such approval among state-run entities this fiscal year. The bond issuance will remain open for subscription until March 31, 2027.
What Is a Zero-Coupon Bond?
A Zero-Coupon Bond (ZCB) is a type of debt security that does not pay periodic interest (coupons). Instead, it is sold at a deep discount and redeemed at full face value (par value) upon maturity. The investor’s return is the difference between the purchase price and maturity value.
Also known as: Accrual Bond
Key Features of Zero-Coupon Bonds:
- No periodic interest payments (coupons)
- Issued at a discount, repaid at full face value at maturity
- Return = Par Value – Purchase Price
- Subject to interest rate risk if sold before maturity
- Longer maturity = deeper discount = more price volatility
Who Issues ZCBs?
- Government entities
- Corporations
- Financial institutions (which may strip coupons and repackage bonds)
How Zero-Coupon Bonds Work:
- Investor buys a ZCB at a low price (e.g., ₹6,855)
- At maturity, the investor receives full face value (e.g., ₹20,000)
- The implied yield (e.g., 5.5%) is compounded semiannually
- No interim payments; interest is “imputed” or “phantom” interest
Strategic Implications for NABARD
- Supports long-tenure fundraising for rural credit and infrastructure projects.
- Deepens the long-term debt market with more structured offerings.
- Government backing may improve market confidence in upcoming tranches.
BS
2. National Conference on Agri Stack
Context:
The Ministry of Agriculture & Farmers’ Welfare (MoA&FW) organized the National Conference on Agri Stack: Turning Data into Delivery on June 14, 2025, at Sushma Swaraj Bhawan, New Delhi. The event marked a significant milestone in advancing India’s Digital Agriculture Mission (DAM), bringing together senior officials from the Centre and States, experts, and stakeholders to deliberate on progress, challenges, and the digital future of Indian agriculture.
Agri Stack Framework and Integrations
- Shri Pramod Kumar Meherda, Additional Secretary (Digital), outlined Agri Stack’s scope:
Major Announcements and Collaborations
- MoUs signed with Maharashtra, Kerala, Bihar, Odisha, and the PSB Alliance for enabling credit access via Farmer Registry-linked authentication.
- Launch of Special Central Assistance (SCA) Guidelines:
- Total allocation: ₹6,000 crore
- For Farmer Registry (including legal heir integration)
- For Digital Crop Survey (DCS)
- Disbursement on first-come-first-served basis.
Key Technological Innovations
- DVC/Kisan Pehchan Patra:
- Digitally authenticated land and crop credentials, linked with DigiLocker, revocable on land mutation.
- Launch of Unified Grievance Redressal Portal:
- OTP login, multilingual support, and audio upload
- Representative-based grievance lodging enabled
- Introduction of AI-powered Chatbot (trained on Agri Stack data via Google Gemini) for multilingual farmer support.
- Pilots underway for:
- Crop recognition via AI
- Facial authentication of surveyors
- AI-based backend optimization
State-Level Best Practices and Feedback
- Maharashtra:
- Enrolment in Farmer Registry across districts
- Request for Data Provisioning Engine (DPE) and Mahavistaar AI sandbox
- Uttar Pradesh:
- Use of Agri Stack in MSP e-procurement (2024)
- Field feedback on DCS challenges
- Karnataka:
- Integration of FRUITS platform with banks
- Use in disaster relief, soil health integration
Technical Discussions and Challenges Identified
- Emphasis on:
- Remote sensing, AI/ML, and auto-validation tools
- DCS compliance and data standardization
- Challenges:
- Outdated tribal land records
- Errors in photo-based crop surveys
- Data gaps and inconsistencies across States
Facts To Remember
1. Hat-trick of World Cup gold medals for Suruchi Phogat
Suruchi Phogat won the women’s air pistol gold with a 0.2 point margin over Camille Jedrzejewski of France in the shooting World Cup in Munich.
2. RBI gives Yes Bank MD & CEO Prashant Kumar 6-month extension: Lender
Prashant Kumar has got a six-month extension from the Reserve Bank of India (RBI) as Yes Bank’s managing director (MD) and chief executive officer (CEO), the lender said.
3. K Ramachandran appointed part-time chairman of Tamilnad Mercantile Bank
The board of Thoothukudi-headquartered Tamilnad Mercantile Bank (TMB) has appointed veteran banker K Ramachandran as an Additional Director (Non-Executive Independent) and also cleared his name as the Non-Executive Part-Time Chairman of the bank.
4. Ministry of Ayush to Host Global Yoga Summit ‘Yoga Connect’ Ahead of International Day of Yoga 2025
The Ministry of Ayush is set to host ‘Yoga Connect’, a hybrid global summit, on 14th June 2025 at Vigyan Bhawan, New Delhi, as a flagship event in the lead-up to the 11th International Day of Yoga (IDY).
5. Gensol Engineering and Gensol EV Lease Admitted to Insolvency: NCLT Acts on IREDA’s Plea
Gensol Engineering Ltd, known for managing the electric vehicle ride-hailing platform BluSmart, has entered insolvency proceedings after the Indian Renewable Energy Development Agency (IREDA) initiated action citing a ₹510 crore default. In a separate but related move, Gensol EV Lease Ltd was also admitted into insolvency on a ₹219 crore default.
6. Israel’s Operation Rising Lion
In pre-dawn strikes termed Operation Rising Lion, dozens of Israeli jets launched a sweeping aerial assault across Iranian territory on Friday, hitting multiple high-value nuclear and military targets.
