Daily Current Affairs (DCA) 18 April, 2025

Daily Current Affairs Quiz
18 April, 2025

National Affairs

1. Supreme Court Puts Hold on Waqf Appointments and De-Notifications

Context:

The Supreme Court, led by CJI Sanjiv Khanna, recorded the Union government’s assurance that:

• All Waqf properties, including Waqf-by-user, will not be de-notified or undergo any change in character.
• This status will continue until the next hearing on May 5, 2025.

Freeze on Waqf Appointments

• The Centre also assured that no appointments would be made to:
  • The Central Waqf Council,
  • State Waqf Boards, and
  • The Delhi Waqf Board.
• This hold applies to appointments under the amended Sections 9 and 14 of the Waqf Act, 1995, which were changed through the Waqf (Amendment) Act, 2025 to allow non-Muslim members on these bodies.

Supreme Court’s Balanced Approach

• The CJI acknowledged both:
  • Infirmities in Waqf administration, and
  • Positive aspects of the 2025 amendments.
• However, the court emphasized avoiding any drastic changes that could adversely impact communities.

TH

2. India Justice Report 2025

Context:

Indian prisons are grappling with unprecedented overcrowding and a severe shortage of healthcare staff, according to the India Justice Report 2025, which focuses on gaps in staffing and medical care in correctional facilities.

• Issued by: Tata Trust in collaboration with various civil society organizations and data partners
• Edition: Fourth

Overcrowding at Crisis Levels

• National average occupancy stands at 131%, well beyond the recommended capacity.
• Inmate population is projected to rise to 6.8 lakh by 2030, while the estimated capacity will only reach 5.15 lakh.
• The overcrowding intensifies health and hygiene challenges, increases the risk of communicable disease spread, and strains existing infrastructure.

Critical Shortage of Mental Health Professionals

• There are only 25 psychologists for India’s 1,330 prisons and 5.7 lakh inmates.
• The number of prisoners with mental illnesses has more than doubled, from 4,470 in 2012 to 9,084 in 2022.
• Benchmark not met: The Model Prison Manual (2016) recommends 1 psychologist/psychiatrist per 500 inmates, but no State or Union Territory meets this standard.
• Of the 69 sanctioned posts for mental health professionals, less than 50% are filled.
• 25 States/UTs do not even provide for a psychologist or psychiatrist within their correctional staff.

Healthcare Staffing in Deep Deficit

• There is a 43% vacancy in medical officer positions across Indian prisons.
• As per the model guidelines, the ideal doctor-to-prisoner ratio is 1:300, but the national average stands at 1:775.
• The shortage of medical staff puts enormous pressure on the system and compromises timely diagnosis and treatment.

Lack of Disability Data and Systemic Oversight

• There is no national data on:
  • Prisoners entering with a disability
  • Prisoners acquiring disabilities during incarceration
• The lack of this data points to systemic neglect and policy oversight in the care of vulnerable inmates.

Urgent Need for Reform

The India Justice Report 2025 paints a grim picture of public health in Indian prisons, exposing urgent gaps in staffing, infrastructure, and mental health support. With the prison population set to rise, immediate reforms in staffing norms, health monitoring systems, and budget allocations are essential to uphold human rights and public health standards.

TH

3. Flue Gas Desulphurisation (FGD) for Coal Plants in India

Context:

A recent study commissioned by the Office of the Principal Scientific Adviser and conducted by the National Institute of Advanced Studies (NIAS), Bengaluru, has urged the Union Environment Ministry to reconsider its blanket mandate requiring all coal-fired thermal power plants to install Flue Gas Desulphurisation (FGD) systems.

What are Flue Gas Desulphurisation (FGD) systems?

Flue Gas Desulphurisation (FGD) systems are technologies used to remove sulfur dioxide (SO2) from flue gases produced by combustion processes, such as in power plants. This process helps reduce air pollution and mitigates acid rain formation. FGD systems come in various types, including wet and dry systems, each with its own advantages and applications. 

Background: FGD Mandate and Compliance Status

• In 2015, the Environment Ministry mandated all 537 coal-fired power plants in India to install FGD units to control sulphur dioxide (SO₂) emissions.
• The deadline was initially set for 2018, but multiple extensions have pushed full compliance to 2027–2029, depending on the plant category.
• Current compliance status:
  • Only 8% of plants have installed FGD systems.
  • 230 plants are in different stages of installation.
  • 260 plants have not yet placed FGD orders.
• The installation cost is ₹1.2 crore per megawatt (MW).
• With India’s installed coal capacity at 218,000 MW, rising to 283,000 MW by 2032, the cost and logistical burden are substantial.

Key Finding: Most Indian Coal is Low in Sulphur

• The NIAS study highlights that 92% of Indian coal has a low sulphur content (0.3%-0.5%).
• Only plants using imported or high-sulphur coal (>0.5%) pose a significant risk of SO₂ pollution.
• Existing mitigation measures—such as 220-meter tall stacks mandated by the Central Pollution Control Board (CPCB)—combined with Indian atmospheric conditions, effectively disperse SO₂ emissions.
• A 2024 IIT-Delhi study found acid rain not to be a significant concern in India.

Environmental Trade-Offs

• Universal FGD installation could lead to:
  • Higher water consumption
  • Increased power usage
  • An additional 69 million tonnes of CO₂ emissions (2025–2030)
• This would reduce SO₂ emissions by 17 million tonnes, but at a substantial environmental and financial cost.
• The study also references IPCC assessments, noting that SO₂ emissions have a cooling effect, masking global warming by 0.5°C between 2010 and 2019 compared to pre-industrial levels.

Policy Recommendation

• The study strongly recommends:
  • Rolling back the universal FGD mandate
  • Focusing only on plants using imported or high-sulphur coal
• This targeted approach would ensure cost-effective pollution control while minimizing unintended climate impacts.

A Call for Evidence-Based Environmental Regulation

The study challenges the one-size-fits-all FGD policy, arguing that a science-backed, differentiated strategy would better balance air quality concerns, climate implications, and economic feasibility. As India rapidly expands its power generation capacity, policies must evolve in tandem with scientific findings and contextual realities.

TH

4. TruthTell Hackathon

Context:

As part of the government’s ’32 Create in India Challenges’, the TruthTell Hackathon was launched as a global contest to develop AI-based tools that can detect and combat false content in real-time—across live news, social media, and videos.

The initiative is spearheaded by the Ministry of Information & Broadcasting in collaboration with the India Cellular & Electronics Association (ICEA).

Grand Showcase

• The winning innovations will be showcased at the World Audio Visual Entertainment Summit (WAVES) 2025, scheduled to be held in Mumbai from May 1–4, 2025.

Winners

Top 5 Winning Teams and Innovations

1. Team Unicron (Delhi) – Anvesha
   • AI-powered tool to detect falsehoods in text, images, and videos.
2. Team Alchemist (Dehradun) – VeriStream
   • Uses AI and mapping tools to fact-check live broadcasts.
3. Team Whooshing Liars (Bengaluru) – Nexus of Truth
   • Capable of spotting deepfakes and fake news in multiple languages.
4. Team Bug Smashers (Delhi) – Live Truth
   • Generates live credibility scores and alerts using GPS integration.
5. Team Vortex Squad (Bengaluru) – Real-Time Fact-Check System
   • Offers real-time verification during live events.

Objective & Impact

• The hackathon aims to:
  • Promote innovation in AI and misinformation detection.
  • Equip digital platforms and media with tools to maintain content integrity.
  • Foster global collaboration in the fight against fake news and deepfakes.

This initiative aligns with India’s broader efforts to position itself as a global hub for ethical and secure digital innovation, especially in the media-tech and content verification spaces.

The Indian Express

Science & Tech

1. Signs of Life Beyond Our Solar System

Context:

In an exciting breakthrough, scientists utilizing the James Webb Space Telescope (JWST) have detected what they describe as the strongest signs yet of potential life beyond our solar system. The discovery involves the detection of chemical fingerprints in the atmosphere of the exoplanet K2-18 b, which may indicate the presence of biological processes.

Discovery of Gases in K2-18 b’s Atmosphere

• The two gases identified are dimethyl sulfide (DMS) and dimethyl disulfide (DMDS).
• These gases are typically produced on Earth by biological organisms, especially marine phytoplankton (algae), which suggests that microbial life could be present on K2-18 b.

What Does This Mean?

• While this discovery does not confirm the presence of life on K2-18 b, it presents a potential biosignature — a chemical marker that might indicate biological activity.
• The researchers stress that more observations are necessary before any definitive conclusions can be made.

About K2-18 b

• Size & Mass: K2-18 b is 8.6 times as massive as Earth and has a diameter 2.6 times that of Earth.
• The planet is in the habitable zone, which means it could have conditions suitable for liquid water to exist, a crucial factor for life as we know it.

The James Webb Space Telescope (JWST)

The James Webb Space Telescope (JWST) is the largest and most powerful space telescope ever built, designed to observe the universe primarily in the infrared spectrum. Launched in 2021, it aims to probe the universe’s earliest phases, study the formation of galaxies, stars, and planets, and explore the atmospheres of exoplanets, making it a time machine in space. 

TH

2. Kerala Launches Vehicle-to-Grid (V2G) Pilot with IIT Bombay

Context:

The Kerala State Electricity Board (KSEB) and IIT Bombay have partnered on a pilot initiative to test the feasibility of Vehicle-to-Grid (V2G) technology in Kerala. This project could pave the way for Electric Vehicles (EVs) to play a transformative role in grid management and renewable energy integration.

What is Vehicle-to-Grid (V2G) Technology?

V2G is a technology that allows electric vehicle batteries to discharge electricity back into the grid when the vehicle is idle. Key functions of V2G include:

• Bidirectional energy flow: EVs can both draw power from the grid (G2V – Grid to Vehicle) and send power back (V2G).
• Distributed energy storage: EVs act as mobile energy storage units that can support grid stability.
• Smart energy management: Helps in managing peak load, demand response, and renewable energy integration.

Other use cases like Vehicle-to-Home (V2H) and Vehicle-to-Vehicle (V2V) also exist, but V2G remains the most commercially and technically pursued application.

How is V2G Used Globally?

V2G is actively deployed in advanced EV markets such as Europe and the U.S., where:

• EV owners are financially incentivized to send power back to the grid during peak demand.
• In countries like the U.K. and The Netherlands, EVs support the grid during high demand by supplying surplus battery power.
• California’s electricity market encourages EV users to participate in ancillary services, enhancing grid resilience amid renewable energy fluctuations.
• With rising climate-related disasters, EVs also serve as backup power sources in emergencies.

These examples showcase how V2G enhances both grid reliability and sustainability.

What’s the Current Scenario in India?

India is at an early stage of V2G adoption:

• Focus is still on EV charging infrastructure, not bidirectional energy flow.
• A few DISCOMs (distribution companies) have initiated pilot smart charging and V2G experiments.
• The Central Electricity Authority (CEA) is drafting reverse charging guidelines, promoting bidirectional capabilities.

Challenges:

• The current electricity market structure is not conducive to decentralized energy sharing.
• Grid variability, RE integration mismatches, and a lack of regulatory support are key barriers.

To enable full-scale V2G in India, regulatory reforms, tariff mechanisms, and smart grid investments are essential.

Details of the KSEB-IIT Bombay V2G Pilot Project

Kerala is witnessing fast EV adoption and rapid growth in rooftop solar. However, the State faces:

• Surge in evening peak demand due to EV charging needs.
• Mismatch between solar generation (daytime) and high grid demand (evening).

The KSEB-IIT Bombay project aims to:

• Assess EV potential to support Kerala’s power grid during peak hours.
• Explore how EV batteries can offset evening demand when solar power is unavailable.
• Build a foundation for V2G infrastructure in the State’s distribution system.

The Kerala V2G pilot is a pioneering move in India’s journey toward smart, decentralized energy systems. While challenges persist, strategic collaborations like KSEB-IIT Bombay can set the stage for grid-interactive electric mobility, helping the country meet its renewable and sustainability goals.

TH

3. The Lancet Planetary Health

Context:

A new study published in The Lancet Planetary Health has revealed that climate change and extreme weather events are significantly disrupting the global blood donation and transfusion ecosystem, potentially endangering the lives of individuals reliant on timely blood supply.

Key Findings from the Study

1. Disruptions Across the Blood Supply Chain

• Extreme weather events such as floods, bushfires, and storms are increasingly interrupting the ability to collect, test, transport, and store blood.
• These events damage infrastructure and create mobility issues, making it difficult for donors to reach collection sites and for healthcare workers to maintain regular operations.

2. Sensitivity of Blood Products

• Blood and its components have a short shelf life and are highly temperature-sensitive, requiring uninterrupted cold chain logistics.
• Delays caused by weather-related disruptions increase the risk of spoilage, leading to wastage and shortages.

3. Disease Transmission Concerns

• The spread of vector-borne and infectious diseases—exacerbated by climate change—can reduce the donor pool.
• Some infections could potentially be transmitted via transfusions, necessitating more stringent screening and testing protocols.

Implications for Public Health Systems

• Blood banks and healthcare systems must adapt by investing in resilient infrastructure, decentralized collection models, and climate-ready logistics.
• Policymakers need to integrate climate risk assessments into national blood services and disaster preparedness plans.

The study underscores the urgent need for climate-adaptive healthcare strategies, particularly in blood supply management. Without proactive steps, rising global temperatures could jeopardize emergency medical care and routine surgeries, especially in climate-vulnerable regions.

BS

Banking/Finance

1. Parliamentary Panel Pushes for Third-Party Evaluation and Revision of Minimum Pension Under EPS

Context:

A parliamentary panel has urged the Labour Ministry to complete the third-party evaluation of the Employee Pension Scheme (EPS) by end of 2025. This marks the first such evaluation of the scheme since its inception 30 years ago. The review is expected to make the scheme more effective and address issues faced by its beneficiaries.

Key Recommendations from the Parliamentary Standing Committee

• Third-Party Evaluation: The Standing Committee on Labour, led by BJP MP Basavaraj Bommai, emphasized the importance of completing the evaluation within a definite timeframe, aiming for completion by December 2025.
• Increase Minimum Pension: The committee recommended that the Labour Ministry should urgently consider raising the minimum pension under the EPS, which is currently set at ₹1,000 per month. Given the sharp rise in the cost of living, there is a call for an upward revision of this amount to provide better financial support to pensioners.

Background on EPS

• Inception: The Employee Pension Scheme (EPS) was introduced in November 1995 and is administered by the Employees’ Provident Fund Organisation (EPFO).
• Current Minimum Pension: Under the current structure, if a pension is below ₹1,000, the central government provides a grant to cover the gap. The scheme has not undergone a third-party evaluation until now, despite its long-standing operation.

Concerns

• Wages and Contributions: Labour economist KR Shyam Sundar pointed out that the majority of EPS subscribers are low-paid workers, which limits their ability to contribute significantly towards their pension. This results in a low pension despite long years of service.
• Wage Stagnation and Inflation: Sundar highlighted that wage stagnation and rising inflation have significantly reduced the corpus accumulated during the working years of these workers, leading to minimal pensions upon retirement. The timely evaluation is seen as a step to address these shortcomings.

The third-party evaluation of EPS, coupled with discussions on revising the minimum pension, is crucial for addressing the long-standing issues within the scheme. With the cost of living continuing to rise, it has become increasingly important to ensure that EPS pensioners receive adequate support during retirement. The evaluation will provide valuable insights into the scheme’s effectiveness and sustainability, and its recommendations could lead to meaningful reforms.

BS

2. RBI’s 43-Day VRR Auction

Context:

The Reserve Bank of India’s (RBI) 43-day Variable Rate Repo (VRR) auction saw tepid demand, with bids worth ₹25,431 crore received against the notified amount of ₹1.5 trillion. The low demand in the auction reflects a shift in market conditions, particularly the decline in money market rates.

Key Highlights of the VRR Auction

• Tepid Demand: The auction received only ₹25,431 crore in bids, significantly less than the notified ₹1.5 trillion, indicating lower investor interest.
• Reason for Low Demand: Dealers cited that money market rates had fallen below 6%, making it less attractive to pay 6.01% in the VRR auction when overnight rates were trading at 5.80%. This mismatch in rates led to reduced participation.

Liquidity Situation in the Banking System

• The net liquidity in the banking system was in a surplus of ₹1.69 trillion as of April 16, 2025, according to the latest data from the RBI.
• The RBI has already infused ₹3.3 trillion via Open Market Operations (OMO) and ₹2.2 trillion through long-term VRR auctions so far in 2025.

OMO Auction Dynamics

• OMO Purchases: The RBI also conducted an OMO auction, purchasing ₹40,000 crore worth of government securities.
• Auction Cutoff: The cutoff for the OMO auction was set higher than the market price. This reflects market expectations that there might not be further OMO auctions after the RBI dividend is received, leading to profit booking for the first quarter.
• Dealers indicated that the OMO auctions were seen as an opportunity to profit, given the anticipated reduction in future RBI interventions.

Government Bond Market Activity

• The benchmark 10-year government bond yield dropped to its lowest level since December 15, 2021.
• Demand for Bonds: There has been strong demand for government bonds, with traders expecting the benchmark yield to fall to 6.25% by the end of the current quarter.
• Private Banks as Major Buyers: Private banks are the primary buyers, responding to expectations of further rate cuts following the RBI’s 25 basis point (bps) repo rate cut and the shift to an accommodative stance.

The RBI’s VRR auction reflects the current surplus liquidity in the banking system and market conditions where short-term rates are lower than the VRR auction rate. Despite this, strong demand for government securities continues, driven by expectations of future rate cuts and the accommodative stance from the RBI. Traders are actively positioning themselves in anticipation of further policy adjustments, leading to strong demand in gilts and ongoing OMO activity.

BS

3. IDFC First Bank Raises Funds

Context:

IDFC First Bank has announced a ₹7,500 crore equity infusion from global investors Warburg Pincus and the Abu Dhabi Investment Authority (ADIA) to support its next growth phase. The capital raise will be executed through a preferential allotment of compulsorily convertible cumulative preference shares (CCPS).

Strategic Significance

• Capital Adequacy Ratio: Will rise to ~19% from 16.4%, enhancing resilience and growth capacity
• Loan Growth Target: 20% annual growth projected in coming years
• Business Expansion: Funds to be used for scaling:
  • Branch and ATM networks
  • Credit cards, cash management, and wealth management segments
  • Technology infrastructure

Market Context & Impact

• 4th Largest Private Bank Fundraise: After ICICI Bank (₹15,000 crore) and Axis Bank (₹12,500 crore & ₹10,000 crore)
• Recent Fundraises: ₹3,200 crore in Q2FY25, ₹3,000 crore in FY24
• Loan Book (as of Dec 2024): ₹2.31 trillion
• Deposits: ₹2.27 trillion
• Loan Mix: 53% retail-focused (mortgages & consumer loans), 18% wholesale

About IDFC First Bank

IDFC First Bank is an Indian private sector bank based in Mumbai. Founded in 2015 as a banking subsidiary of IDFC Limited, it shifted focus from infrastructure financing to retail banking after its 2018 merger with Capital First. In 2024, the bank took over the parent company IDFC Limited in a reverse merger.

BS

4. ‘One State, One RRB’ Roadmap

Context:

The Finance Ministry is set to convene a high-level meeting on May 6, 2025, to strategize the state-wise amalgamation of Regional Rural Banks (RRBs) under its “One State, One RRB” policy. The session will be led by M Nagaraju, Secretary, Department of Financial Services (DFS), and hosted at Vigyan Bhawan, New Delhi.

Key Highlights

Purpose of the Meeting

• Discuss the execution strategy and implementation roadmap for RRB amalgamation across states
• Review FY25 performance of RRBs
• Address governance, transition challenges, and operational alignment

Objectives

• Operational streamlining and reduction of redundancy
• Improved financial health and capital adequacy
• Enhanced outreach to rural communities with stronger, unified RRBs
• Minimize inter-RRB competition, especially among those sponsored by different public sector banks

Expected Benefits of Amalgamation

• Economies of scale in operations and administration
• Better credit delivery and product innovation for rural areas
• Uniform technology infrastructure and digital banking services
• Stronger alignment with government rural development schemes

Background on RRBs

• Established under the RRB Act, 1976
• Capital contribution structure:
  • Central Government: 50%
  • State Government: 15%
  • Sponsor Banks (PSBs): 35%
• Primarily serve agricultural and rural segments

The May 6 meeting is crucial in setting the tone for one of the most ambitious structural reforms in India’s rural banking sector. The consolidation aims to boost the financial inclusion agenda, provide better services to rural customers, and ensure that RRBs evolve into more resilient and customer-centric banking institutions under the stewardship of major public sector banks.

BS

5. Sebi Proposes Higher MF Investment Limits in Reits & Invits

Context:

The Securities and Exchange Board of India (Sebi) has released a consultation paper proposing significant reforms to mutual fund (MF) investment norms in Real Estate Investment Trusts (Reits) and Infrastructure Investment Trusts (Invits). The changes are intended to enhance diversification, increase liquidity, and attract greater capital inflows into these emerging asset classes.

Key Proposals from Sebi’s Consultation Paper

1. Revised Investment Limits

• Single Issuer Limit: Proposed increase from 5% to 10% of a scheme’s Net Asset Value (NAV).
• Overall Exposure Limit:
  • For equity and hybrid schemes: Proposal to increase from 10% to 20%.
  • For debt schemes: Limit to remain at 10%, due to higher risk and perpetual nature of Reits/Invits.

2. Reclassification of Reits & Invits

• Current Status: Treated as hybrid instruments by MFAC and AMFI due to unique cash flow models and valuation practices.
• Proposed Change: Sebi is seeking public and industry feedback on whether Reits/Invits should be classified as equity instruments, enabling their inclusion in equity indices for MF investment purposes.

3. Rationale Behind the Move

• Global Benchmarking: Internationally, Reits and Invits are often treated as equities and are part of indices like:
  • MSCI India Small Cap Index
  • FTSE India Index
• Sebi aims to align with global best practices, improve market depth, and allow investors broader access through MFs.

Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)

Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are both investment vehicles that allow investors to pool funds for large-scale projects, but they differ in their focus and structure. Here’s a comparative overview:

Key Differences Between REITs and InvITs

Aspect	REITs (Real Estate Investment Trusts)	InvITs (Infrastructure Investment Trusts)
Asset Focus	Income-generating commercial real estate (e.g., offices, malls, hotels)	Infrastructure assets (e.g., roads, power plants, telecom towers)
Revenue Source	Rental income from property leases	Toll collections, tariffs, and user fees from infrastructure usage
Regulatory Mandate	Must distribute at least 90% of taxable income to investors	Must distribute at least 90% of net cash flows to investors
Liquidity	Generally high, especially if publicly traded	Varies; higher liquidity if publicly listed, otherwise may be limited
Investment Risks	Market risks, property value fluctuations, tenant defaults	Project-specific risks, regulatory changes, demand fluctuations

Both REITs and InvITs offer investors opportunities for regular income and portfolio diversification. The choice between them depends on individual investment goals, risk tolerance, and interest in either real estate or infrastructure sectors.

A Step Towards Enhanced Market Participation Sebi’s proposed reforms could:

• Deepen India’s Reit and Invit markets
• Enable more flexible portfolio construction for fund managers
• Offer retail investors broader real asset exposure via MFs

Public comments have been invited, and the proposal could signal a major shift in how MFs allocate capital across asset classes.

BS

6. SIDBI to Partner with Green Climate Fund for $1 Billion Climate-Tech Fund

Context:

The Small Industries Development Bank of India (SIDBI) is set to sign an agreement with the Green Climate Fund (GCF) in mid-May 2025 to mobilize climate-focused investments for small businesses in India.

Key Highlights

1. Objective of the Pact

• To support MSMEs in transitioning to low-emission and climate-resilient technologies.
• Aim to foster innovation in climate-tech and promote green entrepreneurship.

2. Fund Structure

• Total Fund Size: $1 billion
• SIDBI’s Contribution: $800 million
  • Most of this amount will be raised from other sources, with SIDBI anchoring the effort.
• The remaining portion is expected from GCF and other global partners.

3. Strategic Significance

• This fund will:
  • Help green India’s MSME sector
  • Align with India’s climate goals and energy transition targets
  • Create climate resilience in vulnerable business segments

4. Timeline

• Signing of the pact is scheduled for mid-May 2025, marking a significant step toward public-private climate financing collaboration.

The Green Climate Fund (GCF)

The Green Climate Fund (GCF) is a global climate finance fund established by the UN Framework Convention on Climate Change (UNFCCC) in 2010. Its primary goal is to assist developing countries in addressing climate change by supporting both mitigation and adaptation efforts. The GCF aims to mobilize funding at scale to invest in low-emission and climate-resilient development projects and programs. 

Implications for MSMEs

• Easier access to green finance
• Support for clean energy adoption, efficient manufacturing, and sustainable practices
• Potential to unlock global carbon credits and incentives

This initiative marks a milestone in climate finance, positioning SIDBI as a key player in India’s green transition strategy for MSMEs.

Mint

7. RBI Eases Norms for Rupee Accounts of Foreign Branches

Context:

The Reserve Bank of India (RBI) has updated its Master Direction on Deposits and Accounts, offering operational flexibility to banks in handling rupee accounts of their overseas entities.

Key Highlights

1. Relaxation for Foreign Operations

• Banks can now open or close non-interest bearing rupee accounts in the name of their:
  • Overseas branches
  • Correspondent banks
• This can be done without prior approval from the RBI.

2. Exception for Pakistani Entities

• Special approval is still required for:
  • Rupee accounts in the name of branches of Pakistani banks operating outside Pakistan.
• This move reflects India’s heightened regulatory caution regarding cross-border transactions involving Pakistan.

Regulatory Significance

• The relaxation promotes ease of doing business for Indian banks with international operations.
• Aligns with India’s goal of internationalizing the rupee by encouraging its usage in cross-border transactions.
• The Pakistan-specific clause underscores the RBI’s risk-based regulatory approach.

This update simplifies banking arrangements in global trade and remittances, while maintaining national security considerations.

Mint

8. NPCI’s Plan to Enable Saving UPI IDs on Merchant Websites

Context:

The National Payments Corporation of India (NPCI) is considering a feature known as UPI Meta, which would allow users to save their preferred UPI ID on popular merchant websites. This would streamline the checkout process, enabling customers to bypass the step of selecting their UPI ID every time they make a payment.

Key Details

• Current UPI Flow: Presently, customers have to manually select the UPI app and account during the checkout process.
• UPI Meta: This new feature would let users save their UPI ID on merchant websites (e.g., e-commerce platforms, travel apps), reducing friction in the payment process.
• RBI Approval: NPCI will need clearance from the Reserve Bank of India (RBI) before launching this feature.

Benefits of UPI Meta

• Convenience: Users won’t need to input their UPI ID or select a UPI app every time they make a payment, improving the customer experience and transaction success rates.
• Parity with Card Payments: UPI Meta would align with card tokenization, a feature already available for credit/debit cards, which allows for secure and faster payments without re-entering card details.

Concerns Around Concentration Risk

• Impact on Smaller UPI Apps: Some industry insiders have raised concerns that UPI Meta could disproportionately benefit large payment apps like PhonePe and Google Pay, which dominate UPI transactions (over 80% of UPI payments are processed by these two platforms).
  • Smaller apps may struggle to gain market share, as these large apps could secure customer consent first, making it harder for newcomers to establish a foothold.
  • Incentive-driven Acquisition: Smaller UPI apps like Cred, Navi, and Super.Money are already using offers, incentives, and cashback to attract customers, but the new system might limit their ability to compete effectively.

Measures to Address Concerns

• Explicit Consent for New Gateways: To mitigate concentration risk, if a large merchant obtains user consent via one payment gateway, any transaction through a different gateway will require explicit user consent again.
• Focus on Diversification: NPCI has been encouraging smaller UPI apps to enhance their customer acquisition strategies to reduce the dominance of PhonePe and Google Pay in UPI payments.

What is Merchant Website?

A merchant is a seller in other words. A merchant’s website is an online shop or a website where a sole proprietor or a company accepts payments for their products or services.

If you want to accept payments on your website, you need to open a merchant account with a payment institution. What is a merchant account? It is a special bank account used to receive funds transferred by your customers. It is offered together with a payment gateway and many other features.

TET

9. RBI Enforcement Actions in FY25

Context:

In FY25, the Reserve Bank of India (RBI) undertook 79 enforcement actions against regulated financial entities, according to a report by FACE (Fintech Association for Consumer Empowerment), a recognised self-regulatory organisation.

Breakdown of Enforcement Actions

• Total actions: 79
  • NBFCs: 48 actions (60%)
  • Banks: 30 actions (38%)
  • Credit Bureaus: 1 action (2%)
• Total penalties levied: ₹33 crore

Penalty Distribution

• Banks:
  • Accounted for 82% of total penalty amount
  • Faced 38% of cases
• NBFCs:
  • Accounted for 18% of total penalty amount
  • Incurred 60% of cases

Note: Regional Rural Banks and Cooperative Banks were not covered in this report.

Common Reasons for Regulatory Action

• Non-compliance with KYC norms
• Violations of the Fair Practices Code
• Issues related to corporate governance
• Breaches in digital lending guidelines
• Deficiencies in reporting, interest rate disclosure
• Improper conduct in outsourcing arrangements

Major Penalties in FY25

1. J&K Bank – ₹3.31 crore
   • Opened both BSBDA and Savings Accounts for same customers
   • Failed to identify beneficial owners in legal person accounts
   • Allowed non-compliant operations in small accounts
   • Improperly sanctioned working capital loans against government subsidies
2. UCO Bank – ₹2 crore
   • Penalised for violations of several regulatory norms
3. Axis Bank – ₹1.9 crore
   • Also fined for multiple regulatory breaches

BL

10. Zaggle Gets NPCI Approval to Offer UPI Services

Key Highlights:

• Zaggle Prepaid Ocean Services Ltd. has received approval from the National Payments Corporation of India (NPCI) as a Third-Party Application Provider (TPAP).
• This approval empowers Zaggle to integrate UPI-based payment solutions into its digital ecosystem.
• Over 3 million users in Zaggle’s ecosystem will now be able to make seamless UPI payments via Zaggle’s platform.
• The move enhances Zaggle’s positioning in the digital payments and spend management space.
• This aligns with Zaggle’s vision to deliver end-to-end fintech solutions for businesses and consumers.

What is TPAP?

• Third-Party Application Provider (TPAP) refers to companies offering apps that initiate and receive UPI transactions.
• TPAPs improve user experience through features like:
  • Bill payments
  • Mobile recharges
  • User-friendly UPI interfaces

About NPCI:

• Headquarters: Mumbai, Maharashtra
• Founded: 2008
• CEO: Dilip Asbe
• Major Initiatives:
  • Unified Payments Interface (UPI)
  • Immediate Payment Service (IMPS)
  • RuPay card network
  • Bharat Bill Payment System (BBPS)
  • Aadhaar Enabled Payment System (AePS)

Significance

This strategic step by Zaggle strengthens its role in India’s growing fintech ecosystem, especially at a time when UPI is becoming the default digital payment mode for consumers and enterprises alike.

11. Revolut Secures RBI Approval to Launch Digital Wallets and UPI Services in India

Context:

UK-based fintech giant Revolut has received final approval from the Reserve Bank of India (RBI) in April 2025 to operate as a Prepaid Payment Instruments (PPI) issuer. This license enables Revolut to offer digital wallets, prepaid cards, and UPI-based payment services in India.

Key Features of the Approval

• PPI License: Allows Revolut to issue mobile wallets and prepaid instruments.
• UPI Integration: Users can now perform instant fund transfers, merchant payments, and peer-to-peer transactions using UPI through Revolut’s app.
• AD-II License: Already held by Revolut India, this allows multi-currency forex cards and cross-border remittance services.

Strategic Impact

• Competitive Entry: Revolut is now positioned to compete with India’s top fintech players like PhonePe, Google Pay, and Paytm.
• Target Audience: Focus will be on India’s top 10–15% consumers—tech-savvy, frequent travelers seeking integrated domestic and international payment solutions.
• Localization + Global Expertise: Revolut plans to combine global fintech innovation with India-specific services to enhance user convenience.

Market Significance:

• India’s Digital Payments Market: Estimated to reach $2.1 trillion by 2030.
• Revolut’s Global Footprint:
  • 50+ million users in 38 countries.
  • Valued at $45 billion in 2024.
  • Aims to double user base to 100 million globally.

Broader Implications:

• The approval reflects the RBI’s confidence in Revolut’s compliance and innovation potential.
• Enhances India’s financial inclusion goals and push toward a cashless economy.
• Features like low-cost international remittances, real-time expense tracking, and UPI-enabled payments position Revolut as a disruptive entrant in India’s fintech space.

12. FIU-IND and RBI Sign MoU to Strengthen AML/CFT Framework

Context:

The Financial Intelligence Unit – India (FIU-IND) and the Reserve Bank of India (RBI) have signed a Memorandum of Understanding (MoU) to enhance cooperation and coordination in combating money laundering and terrorism financing in the financial sector.

Key Areas of Cooperation

• Appointment of Nodal Officers:
  • Both FIU-IND and RBI will appoint a nodal officer and an alternate nodal officer to facilitate smooth coordination and communication.
• Intelligence Sharing:
  • Exchange of relevant financial intelligence and data available in each party’s database to strengthen surveillance and compliance.
• Reporting Procedures:
  • Joint formulation of reporting procedures for regulated and reporting entities as per the Prevention of Money Laundering (PML) Rules.
• Training & Outreach:
  • Conduct awareness programs, training sessions, and outreach initiatives for regulated entities to enhance understanding of AML/CFT obligations.
• Skill Upgradation:
  • Upgrading AML/CFT capabilities among entities regulated by RBI through collaborative efforts.
• Risk Assessment:
  • Evaluation of money laundering and terror financing (ML/TF) risks and vulnerabilities in various financial sub-sectors.
• Red Flag Indicators:
  • Identification and dissemination of red flag indicators for detecting suspicious transactions.
• Supervision & Monitoring:
  • Joint efforts in supervising compliance of RBI-regulated entities under PMLA, PML Rules, and relevant RBI directives.
• International Standards:
  • Ensuring compliance with global standards on AML/CFT, aligning with FATF recommendations.
• Quarterly Coordination Meetings:
  • Regular quarterly meetings to review and discuss key issues and exchange updates.

This collaboration is expected to significantly enhance the financial sector’s resilience against money laundering and terror financing risks, reinforcing India’s commitment to financial integrity and global AML/CFT standards.

PIB

Economy

1. Union Government Sets MSME Credit Target for FY26 at ₹17.31 Trillion

Context:

In a continued push to support the Micro, Small, and Medium Enterprises (MSME) sector, the Union Finance Ministry has set a target of ₹17.31 trillion for total MSME credit outstanding across Public Sector Banks (PSBs) for the financial year 2025-26 (FY26). This marks a 19.5% increase over the expected outstanding loans of ₹14.49 trillion for FY25.

Current Status and Growth Trajectory

• As of February 28, 2025, the total MSME credit outstanding in PSBs was ₹13.04 trillion, reflecting a year-to-date growth of 11.17% compared to ₹11.73 trillion as of March 31, 2024.
• The target for FY26 reflects the government’s commitment to fostering growth in the MSME sector through increased credit.

Major Credit Providers

• State Bank of India (SBI) leads the way with a target of ₹4.82 trillion in outstanding MSME credit for FY26, which represents a 23% growth over the previous year.
• Punjab National Bank (PNB) follows closely with a target of ₹1.58 trillion, showing a 23.4% growth.

Concerns over Bad Loans

Despite the optimistic projections, bankers are concerned about the potential for bad loans in the MSME sector. However, they acknowledge the government’s efforts to boost credit through various credit guarantee schemes.

• Over the past four years, there has been a significant improvement in asset quality within the sector, with the gross nonperforming assets (GNPA) ratio in MSME loans falling from 11% in FY20 to 4% in FY24.

Government Initiatives and Schemes

The finance ministry has been actively promoting several schemes to support MSMEs:

• Credit Guarantee Scheme (CGS): Provides collateral-free loans of up to ₹5 crore with 90% guarantee coverage.
• Prime Minister’s Employment Generation Programme (PMEGP): Supports the establishment of new micro-enterprises.
• PM Vishwakarma Yojana: Focuses on the development of traditional crafts and skills.
• Pradhan Mantri Mudra Yojana (PMMY): Provides loans to small businesses to foster entrepreneurship.

Upcoming Discussion on MSME Credit

A meeting will be held on April 24, 2025, with MSME industry bodies, banks, and regional rural banks to discuss key credit-related matters, including:

• Grievance redressal mechanisms.
• Special Mention Accounts (SMAs) and other related issues.
• The proposed credit cards for micro-enterprises as outlined in the Union Budget for FY26.

PSBs Performance for FY26

Here are some of the targets set for major PSBs in FY26:

Bank Name	Outstanding Credit for FY26 (₹ Trn)
Bank of Baroda	1.77
Bank of India	1.26
Bank of Maharashtra	0.58
Canara Bank	1.84
Central Bank of India	0.75
TOTAL	17.31

The Union Finance Ministry’s target of ₹17.31 trillion for MSME credit outstanding in FY26 underscores the government’s strong focus on fostering growth in the MSME sector. However, the sector faces challenges related to bad loans, and the banking performance should be carefully monitored to ensure sustained growth while managing risks effectively.

BS

2. Fitch Cuts India FY25 GDP Growth Forecast

Context:

Fitch Ratings has lowered India’s economic growth forecasts for both FY25 and FY26 by 10 basis points each, citing the ripple effects of a worsening global trade war.

Updated India Growth Forecasts:

• FY25 (ended March 2025): Revised to 6.2% (from 6.3%)
• FY26 (current fiscal): Revised to 6.4% (from 6.5%)
• FY27 (next fiscal): Retained at 6.3%

Inflation and Interest Rate Outlook

• CPI-based inflation is projected at 3.9% for calendar year 2025 (down from 4% earlier).
• RBI policy rate is forecast to fall to 5.5% by end-2025, following this month’s 25 bps rate cut to 6%.

Global Factors Driving the Revision

Fitch highlighted that the escalation in the US-China trade war—especially following the US administration’s “Liberation Day” tariff hikes—was a significant shock:

• US imposed near-universal 10% tariffs (now paused for 90 days).
• Bilateral tariffs between US and China have surged above 100%.
• US average effective tariff rate (ETR) has risen to 23%, the highest since 1909 (compared to 18% assumed earlier by Fitch).
• As a result, global growth forecast for 2025 has been cut by 40 basis points.

Implications for India

• Despite strong domestic fundamentals, India is not insulated from global headwinds, especially those affecting exports and trade flows.
• Lower inflation projections give the RBI headroom to maintain an accommodative stance to support growth.
• Continued geopolitical and trade tensions could pressure India’s trade balance and currency stability going forward.

Mint

Facts To Remember

1. Suruchi-Saurabh pair shoots gold

Suruchi Singh and Saurabh Chaudhary beat qualification toppers Yao Qianxun and Hu Kai (585) of China 17-9 to clinch the mixed air pistol gold in the World Cup in Lima, Peru.

2. Govt appoints ICRISAT scientist ML Jat as new ICAR Director-General 

The government has appointed Mangi Lal Jat as Director-General of Indian Council of Agricultural Research (ICAR) for a period of three years. He will also be ex-officio Secretary of the Department of Agricultural Research and Education (DARE) under the Ministry of Agriculture and Farmers Welfare.

3. U.S. tells WTO steel, Aluminum tariffs are national security measures

The United States told the World Trade Organisation (WTO) that its tariffs on steel and aluminium are based on national security concerns, not safeguard measures as India claims.

4. PM Modi hails global recognition of Gita, Natyashastra in UNESCO’s Memory of the World Register

Prime Minister Narendra Modi has hailed the inclusion of the Gita and Natyashastra in UNESCO’s Memory of the World Register. 

5. Bihar Govt launches Mahila Samvad campaign to reach 2 crore women

In a move to reach out to women beneficiaries and other stakeholders, the Bihar government today launched the Mahila Samvad campaign, which will continue till next two months. Chief Minister Nitish Kumar inaugurated the campaign cum outreach programme from his residence at Patna.

6. India showcases digital innovations at GITEX Africa 2025

India participated in Africa’s largest tech and startup show, GITEX Africa 2025, held in Morocco. The event provided a platform for policy leaders, changemakers, and visionaries to collectively discuss and deliberate on opportunities for collaboration and to advance the imperative of inclusive and equitable growth in the global economy. 

7. India’s Shourya Ambure wins bronze in U-18 100m Hurdles

In Athletics, India’s Shourya Ambure clinched the bronze medal in the Under-18 Women’s 100 metre Hurdles at the Asian Youth Championships in Dammam, Saudi Arabia. The 15-year-old clocked 13.80 seconds to secure a spot on the podium, marking her second consecutive personal best in as many days.

8. World Heritage day 2025 celebrated globally

World Heritage Day is being celebrated today across the globe. It is also called the International Day for Monuments and Sites. This year, the theme of the day is Heritage Under Threat from Disaster and Conflicts. Our Correspondent reports that this day is celebrated every year on 18th April to honour and protect cultural and natural heritage