Daily Current Affairs (DCA) 17 December, 2025

Daily Current Affairs Quiz
17 December, 2025

National Affairs

1. FSSAI Launches Egg Safety Drive After ‘Nitrofurans’ Controversy

Source: TNIE

Context:

India’s food safety regulator, Food Safety and Standards Authority of India (FSSAI), has started collecting egg samples of a popular brand to test its quality following uproar over a viral video that claimed that it contained traces of a banned, potentially cancer‑linked substance.

About Nitrofurans

• Nature: Synthetic antimicrobial agents used historically in veterinary medicine.
• Common Compounds: Nitrofurantoin, Furazolidone, Nitrofurazone, Furaltadone.
• Reason for Ban:
  • Carcinogenic risk and potential toxicity in humans.
  • Banned in India, the European Union, and several other countries.
• Health Implications:
  • May cause neurological symptoms, gastrointestinal issues, and long-term cancer risk.
  • Violates food safety standards and undermines consumer trust.

Human Health Implications

• Carcinogenic risk: Linked to cancer, prompting global bans.
• Toxicity: Excess exposure can cause neurological issues, gastrointestinal distress, and hypersensitivity.
• Food safety concern: Residues in eggs violate safety standards and erode consumer trust.
• Public health risk: Long-term low-level exposure may accumulate and pose health hazards.

2. India–France Pact on HAMMER (AASM) Precision‑Guided Weapon

Source: TOI

Context:

India has signed an agreement with France’s Safran to jointly manufacture, customise, supply and maintain the HAMMER (AASM) precision‑guided air‑to‑ground weapon. Manufacturing will be done in India through a 50:50 joint venture between Safran and Bharat Electronics Limited (BEL). The pact strengthens defence indigenisation, Make in India, and India–France strategic defence cooperation.

What is HAMMER (AASM)?

• Full form: Highly Agile Modular Munition Extended Range (AASM).
• Type: Stand‑off, precision‑guided air‑to‑ground weapon system.
• Function: Converts conventional “dumb” bombs into high‑accuracy smart munitions using modular guidance and propulsion kits.

Developer and Manufacturing

• Original developer: Safran Electronics & Defense, France.
• Indian production: Jointly manufactured by BEL–Safran JV (50:50).
• Scope of JV: Manufacturing, customisation, supply, maintenance, and lifecycle support in India.

Objective and Strategic Aim

• Provide the Indian Air Force with:
  • High‑precision strike capability
  • Stand‑off attack ability (launch from outside enemy air defence zones)
  • Controlled escalation in conflict scenarios
  • Reduced collateral damage and aircraft risk

3. India–Maldives Joint Military Exercise EKUVERIN

Source: TH

Context:

The bilateral military exercise EKUVERIN between the Indian Army and the Maldives National Defence Forces (MNDF) concluded after two weeks of joint training, reinforcing defence cooperation between the two countries.

Key Details

• Conclusion marked by: Joint validation exercise
• Location: Thiruvananthapuram
• Duration: Two weeks

Focus Areas of the Exercise

• Counter Insurgency operations
• Counter Terrorism operations
• Training tailored to contemporary operational environments
• Emphasis on joint drills, tactical coordination, and mission execution

4. IBC Amendment Bill, 2025

Source: Mint

Context:

A Lok Sabha select committee reviewed the IBC (Amendment) Bill, 2025 and is set to table its report in the lower house.

Objective: Overhaul the Insolvency and Bankruptcy Code (IBC), 2016, to make the distressed-assets market more attractive and reduce delays in corporate turnaround.

Key Provisions Proposed in the Bill

• Faster tribunal admissions to accelerate insolvency resolution.
• Creditor-led, mostly out-of-court bankruptcy resolution scheme for quick corporate turnaround.
• Group insolvency scheme to address insolvency of multiple companies in a corporate group simultaneously.
• Cross-border insolvency resolution regime to manage international insolvencies efficiently.

Purpose and Rationale

• Address systemic gaps in IBC implementation, including:
  • Delays due to shortage of judges.
  • Uncertainty in resolution plan finality.
  • Accountability issues among insolvency professionals.
• Goal: Strengthen creditor confidence and improve outcomes, while maintaining the jurisprudential balance evolved through judicial interpretation.

What is Insolvency and Bankruptcy Code (IBC)?

The Insolvency and Bankruptcy Code (IBC), 2016 is India’s comprehensive law for resolving insolvency and bankruptcy in a time-bound and structured manner.

• A single, unified law replacing multiple old laws related to corporate and personal insolvency.
• Provides a legal framework to resolve the financial distress of companies, limited liability partnerships, partnerships, and individuals.
• Ensures creditors can recover dues efficiently, while also giving businesses a chance for revival.

Banking/Finance

1. Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025

Source: TH

Objective

The Lok Sabha passed an amendment bill to raise foreign direct investment (FDI) limit in India’s insurance sector to 100% from 74% earlier, in a move that is likely to boost competition and spur capital inflows.

Key Provisions

• FDI Limit
  • FDI in insurance companies increased from 74% to 100%.
  • Indian citizenship requirement: At least one of the top executives (Chairperson, MD, or CEO) must be an Indian citizen.
• Regulatory and Governance Reforms
  • Establishment of the Policyholders’ Education and Protection Fund to safeguard policyholder interests.
  • Chairperson and whole-time members of IRDAI or insurance boards to have a five-year term or until age 65, whichever is earlier (current limit: 62 for members, 65 for Chairperson).
  • Transparency in regulation-making and enhanced supervisory powers for regulators.
• Corporate Structure Flexibility
  • Permits the merger of non-insurance companies with insurance companies, facilitating corporate restructuring and expansion.
  • Empowers boards of insurance companies, including LIC, to make operational decisions like branch expansion and recruitment.
• Policyholder Protection & Market Development
  • Promotes financial security of policyholders.
  • Encourages entry of additional players to boost competition, economic growth, and employment generation.
  • Enhances ease of doing business for insurers, intermediaries, and stakeholders.

Foreign Direct Investment (FDI)

Foreign Direct Investment is a long-term investment made by a foreign entity (company or individual) in the equity capital or business operations of a company in another country, with the intent to have significant control or influence over its management.

Key Features of FDI:

• Ownership & Control: Investor typically acquires 10% or more of voting shares or management control.
• Long-term Investment: FDI is intended for strategic involvement in the business.
• Forms:
  • Greenfield investment (building new facilities)
  • Mergers & acquisitions (acquiring existing firms)
  • Joint ventures or strategic alliances
• Impact: Enhances employment, technology transfer, infrastructure development, and economic growth.

Key Differences Between FDI and FPI

Feature	FDI (Foreign Direct Investment)	FPI (Foreign Portfolio Investment)
Ownership & Control	Significant (≥10% stake, management control)	Minimal (<10% stake, no control)
Investment Horizon	Long-term	Short-term
Forms	Equity in business, M&A, joint ventures	Stocks, bonds, mutual funds
Influence on Management	Yes	No
Impact on Economy	Jobs, technology transfer, infrastructure	Liquidity, capital inflow, market depth
Risk & Stability	Lower volatility, more stable	Higher volatility, market-sensitive

2. Rupee Breaches 91 per Dollar, Becomes Weakest Asian Currency in 2025

Source: TH

Context:

The Indian rupee depreciated beyond the 91 mark against the U.S. dollar during intraday trade, touching 91.14, before closing at 90.93. This marks a fresh all-time low, making the rupee the weakest Asian currency in 2025 and among the weakest globally this year.

Factors Driving Rupee Weakness

Factor	Details / Impact
Trade & Geopolitical Uncertainty	– Uncertainty over India–U.S. trade deal affecting investor sentiment. – Global trade tensions increasing risk aversion in financial markets.
Capital Outflows	– FPIs withdrew ~$2.7 billion in first two weeks of December. – One of the largest monthly outflows of 2025, pressuring the rupee.
Global Macro Pressures	– Rising U.S. bond yields and expected Bank of Japan rate hike triggering yen carry trade unwinding. – Leads to sell-off in emerging-market assets, including the rupee.

RBI’s Stance and Policy Interpretation

Limited Intervention

• Experts suggest the RBI’s restrained intervention appears deliberate rather than reactive.
• With India’s growth strong and inflation under control, policymakers may be comfortable allowing gradual depreciation.

Strategic Considerations

• A weaker rupee can support export competitiveness, especially in a trade-war environment.
• Economists note that the RBI is allowing the currency to adjust within limits, rather than defend a fixed level aggressively.

Past Policy Legacy

• Analysts argue that earlier attempts to keep the rupee tightly pegged (around ₹83 per dollar) have constrained flexibility and contributed to current pressures.

3. PFRDA Allows Loans Against Pension Savings Under NPS

Source: BS

Context:

The Pension Fund Regulatory and Development Authority (PFRDA) has notified amendments to the PFRDA (Exits and Withdrawals under the NPS) Regulations, 2025, introducing significant reforms to enhance flexibility for National Pension System (NPS) subscribers, especially in withdrawals, exits, and retirement options.

Major Reform: Loan Against NPS Corpus

Financial Assistance Against Pension Savings

• NPS subscribers can now avail loans from regulated financial institutions by using their NPS account as collateral.
• Lenders are allowed to mark a lien or charge on the individual pension account.

Safeguards

• Lien/charge limited to 25% of the subscriber’s own contribution, in line with partial withdrawal limits.
• Earlier blanket prohibition on pledge or assignment of NPS benefits has been partially relaxed.
• Detailed operational guidelines will be issued separately by PFRDA and record-keeping agencies.

Rationalisation of Partial Withdrawal Rules

Housing

• Partial withdrawal for purchase or construction of a house (if the subscriber does not already own one, except ancestral property) is retained.
• Explicitly clarified as a one-time withdrawal.

Medical Needs

• Scope significantly widened.
• Allowed for medical treatment or hospitalisation of the subscriber, spouse, children, or parents.
• Earlier restriction to a specified list of critical illnesses removed.

Removed Eligible Purposes

• Skill development, re-skilling, and self-development
• Setting up a start-up or own venture

New Eligible Purpose

• Partial withdrawal allowed for settlement of a financial obligation taken from a regulated financial institution against a lien on the NPS account.

Changes in Exit and Withdrawal Structure (Non-Government Sector)

Lock-in and Vesting

• Five-year minimum subscription period removed under the All Citizen Model and Multiple Scheme Framework (MSF).
• Vesting period revised to:
  • 15 years, or
  • Any higher period specified under a scheme, or
  • Till 60 years of age, whichever is earlier.

Lump Sum vs Annuity at Retirement

• Lump sum withdrawal limit increased to 80% of corpus.
• Minimum annuity requirement reduced to 20%, from earlier 40%.

Special Provisions for Smaller Pension Corpus

Corpus up to ₹8 lakh

• Subscriber may opt for:
  • 100% lump sum, or
  • Systematic Lump Sum Withdrawal (SLW), or
  • Systematic Withdrawal Request (SUR), or
  • Other approved options.

Corpus between ₹8 lakh and ₹12 lakh

• Up to ₹6 lakh can be withdrawn as lump sum.
• Remaining amount to be invested in:
  • SUR for a minimum of six years, or
  • Annuity, or
  • Other approved instruments.

4. Unclaimed Bank Deposits in India More Than Double in Five Years

Source: BS

Context:

India’s unclaimed bank deposits have risen sharply, highlighting growing challenges in financial awareness, account dormancy, and beneficiary identification, even as the government has launched targeted recovery initiatives.

What are Unclaimed Bank Deposits?

An unclaimed bank deposit refers to money that has been deposited in a bank account but has not been accessed, withdrawn, or claimed by the account holder for a specified period. These can be in the form of savings accounts, fixed deposits (FDs), recurring deposits, or other bank instruments.

Key Features of Unclaimed Bank Deposits

• Dormancy:
  • Accounts with no transactions for a prolonged period (usually 24–36 months) are classified as dormant.
  • Once dormant, the balance is considered unclaimed until the account holder or nominee claims it.
• Types of Unclaimed Deposits:
  • Savings account balances
  • Fixed deposits and recurring deposits
  • Interest accrued but unpaid
  • Matured deposits not withdrawn
• Regulatory Guidelines:
  • In India, the Reserve Bank of India (RBI) requires banks to transfer unclaimed deposits to a designated fund if not claimed for a long period.
  • Banks must also attempt to inform and locate the account holder or nominee.
• Claiming Process:
  • Account holders or their nominees can claim unclaimed deposits by submitting KYC documents and proof of ownership.

Recovery Efforts by the Government

‘Your Money, Your Right’ Initiative

• Announced by Prime Minister Narendra Modi on December 10
• Amount returned to rightful owners: Nearly ₹2,000 crore
• This represents about 3% of total unclaimed deposits as of June 30, 2025

Special Recovery Campaign

• Launched by: Finance Minister Nirmala Sitharaman
• Duration: Three months (starting October)
• Objective:
  • Facilitate identification of rightful claimants
  • Speed up recovery of dormant and unclaimed balances

Why Unclaimed Deposits Are Rising

• Increase in number of bank accounts due to financial inclusion drives
• Dormant accounts with no transactions over long periods
• Lack of nominee details or updated KYC
• Death of account holders without timely claim by heirs

5. India Needs Indian Banks

Source: BS

Context:

The Reserve Bank of India’s (RBI) approach to bank ownership and promoter control has evolved significantly over the past two decades. Recent approvals allowing foreign regulated institutions to take large stakes in Indian private banks indicate a renewed regulatory preference that raises important questions about India’s long-term banking capacity and financial sovereignty.

Evolution of RBI’s Bank Ownership Policy

Phase 1: Emphasis on “Skin in the Game” (Early 2000s)

• Promoters were encouraged to hold significant equity stakes to ensure commitment and accountability
• Example: Kotak Mahindra Bank (2001)
  • Promoter holding: 61% at conversion from NBFC to bank
  • RBI required reduction only to 49%, not dispersed ownership

Phase 2: Shift Towards Diversified Ownership (2005–2016)

• RBI began advocating dispersed shareholding to reduce promoter dominance
• 2013 Guidelines introduced:
  • Mandatory Non-Operative Financial Holding Company (NOFHC) structure
  • Promoter stake capped at 40% initially, to be reduced to 15% within 12 years
  • Five-year lock-in on promoter stake
• 2016 Master Direction reinforced this approach
  • Applied even to existing banks
  • Target promoter holding: 15%

Core Concern: Over-Reliance on Foreign Capital

• India has too few banks for the size and credit needs of its economy
• Domestic entrepreneurs with patient, long-term capital are scarce
• Private equity-backed professional teams cannot meet systemic scale requirements
• Foreign capital alone cannot sustain India’s long-term credit growth

Policy Recommendations

• Reconsider frameworks on:
  • Bank ownership norms
  • Voting rights caps
  • Blanket restrictions on industrial houses entering banking
• Encourage large, well-governed NBFCs to convert into banks
  • Already possess:
    • Advanced technology platforms
    • Digital onboarding and data-driven credit assessment
    • Robust risk management systems

6. Sebi Board to Review MF Fee Structure and Stock Broker Rules

Source: BS

Context:

The Securities and Exchange Board of India (Sebi) is set to consider a wide-ranging set of regulatory reforms at its upcoming board meeting, aimed at reducing investor costs, modernising market regulations, improving disclosures, and streamlining capital market processes.

Key Regulatory Proposals Under Review

Overhaul of Stock Broker Regulations

• Review of three-decade-old Stock Brokers Regulations
• Objective:
  • Ease compliance burden
  • Align regulations with the Companies Act, 2013
• Key proposed changes:
  • Formal definitions for:
    • Algorithmic trading
    • Proprietary trading
    • Execution-only platforms
• Significance:
  • Provides regulatory clarity amid growing use of automation and advanced trading strategies

Revamp of Mutual Fund Fee Structure (TER)

• Sebi to revisit Total Expense Ratio (TER) norms
• Background:
  • Earlier proposal (2023) faced strong industry resistance
  • Revised proposal floated in October 2025
• Key proposals:
  • Reduction in brokerage and transaction costs:
    • Cash market: 12 bps → 2 bps
    • Derivatives: 5 bps → 1 bp
  • Reduction in overall TER caps by 15–20 bps
• Policy intent:
  • Lower investor costs
  • Enhance long-term returns and transparency

IPO Process and Pledged Shares

• Amendments to ICDR Regulations proposed
• Focus area:
  • Treatment of pledged shares held by non-promoters in IPO-bound companies
• Likely measures:
  • Such pledged shares to be treated as locked-in
  • Depositories to revise frameworks accordingly
• Objective:
  • Prevent misuse and improve disclosure integrity in IPOs

Simplification of Offer Documents

• Sebi may:
  • Rationalise offer document summaries
  • Remove mandatory requirement for an abridged prospectus
• Aim:
  • Improve investor comprehension
  • Reduce complexity and repetition in IPO disclosures

Conflict of Interest Disclosure Norms

• Review of recommendations by a high-level committee constituted in March
• Key recommendations:
  • Expanded disclosures of:
    • Assets and liabilities
    • Trading activities
    • Relevant relationships
  • Disclosure timelines:
    • At appointment
    • During annual reviews
• Objective:
  • Strengthen governance and credibility of market institutions

Debt Market and Dematerialisation Measures

• Sebi may explore:
  • Incentives for debt issuances
  • Easing dematerialisation of physical shares
• Proposed change:
  • Allow higher coupon rates or discounts for select investors in debt issues
• Rationale:
  • Boost depth and participation in corporate bond markets

7. RBI Injects $5 Billion via Currency Swap to Boost Liquidity

Source: ET

Context:

The Reserve Bank of India (RBI) is facing early signs of liquidity strain among banks. Surplus funds with lenders have fallen sharply from ₹4 trillion in early August to about ₹1.3 trillion ($14.3 billion) in December 2025.The 10-year government bond yield has risen by ~10 basis points since RBI cut policy rates on 5 December, signaling tightening market conditions.

Currency Swap

A currency swap is a financial agreement between two parties to exchange principal and interest payments in different currencies over a specified period. Central banks, like the Reserve Bank of India (RBI), often use it as a tool to manage liquidity and stabilize the currency.

Key Features of a Currency Swap

• Exchange of Currencies:
  • One party provides a certain amount in its currency (e.g., rupees), while the other provides an equivalent amount in a foreign currency (e.g., U.S. dollars).
• Reversal Agreement:
  • At the end of the swap period, the parties re-exchange the principal amounts at a pre-agreed rate.
• Interest Payments:
  • During the swap, interest may be paid in the respective currencies according to the terms of the agreement.

Why RBI Uses Currency Swaps

• Inject Liquidity: When RBI buys dollars from banks against rupees, it injects rupee cash into the banking system, increasing liquidity.
• Support the Rupee: Helps stabilize the exchange rate by managing the supply of foreign currency in the market.
• Manage Market Rates: Helps control short-term interest rates and credit availability.

Facts To Remember

1 Indian Army receives final batch of Apache helicopters

The Indian Army on Tuesday received the final batch of three AH-64E Apache attack helicopters, completing its six-unit fleet at the 451 Army Aviation Squadron based in Jodhpur, Rajasthan. The helicopters landed at the Air Force Station, Hindon, in Ghaziabad before being inducted into the service.

2. B. Sairam named chief of Coal India

State-owned miner Coal India appointed B. Sairam as their new chairman and managing director.

3. Aishwary wins 3P gold with world record

Aishwary Pratap Singh Tomar delivered a landmark performance at the 68th Shooting Nationals on Tuesday, firing a world record 470.5 to clinch gold in the men’s 50m rifle 3 positions final.

4. AFMS launches India’s first AI-driven community screening programme for diabetic retinopathy

The Armed Forces Medical Services (AFMS) has launched India’s first Artificial Intelligence-driven community screening programme for Diabetic Retinopathy. 

5. PM Modi says, Global South is writing its own destiny; Addresses Joint Session of Ethiopia’s Parliament in Addis Ababa

Prime Minister Narendra Modi today said that India and Ethiopia stand together as members of one family to work for a more just, more equal and more peaceful world. 

6. Indian film ‘Homebound’ shortlisted for Best International Feature Film at Oscars 2026

The Indian movie ‘Homebound’, directed by Neeraj Ghaywan, has been shortlisted for the 98th Academy Awards in the Best International Feature Film category. 

7. Survey of India hosts National Workshop on Strengthening Geospatial Ecosystem to advance technologies for Viksit Bharat

The Survey of India, Department of Science & Technology, is hosting the National Workshop on Strengthening of Geospatial Ecosystem, “Geospatial Mission: An Enabler of Viksit Bharat” at Yashobhoomi, in the national capital.

8. Indian Navy commissions second MH-60R helicopter squadron INAS 335 at INS Hansa, Goa

The Indian Navy will commission its second MH-60R helicopter squadron, INAS 335 (Ospreys), at INS Hansa in Goa.

9. Second WHO Global Summit on Traditional Medicine to begin in New Delhi

The Second WHO Global Summit on Traditional Medicine will begin today in New Delhi.