Daily Current Affairs (DCA) 18 July, 2025

Daily Current Affairs Quiz
18 July, 2025

National Affairs

1. Swachh Survekshan 2024–25

Context:

President Droupadi Murmu conferred the Swachh Survekshan 2024–25 awards at a national felicitation event organized by the Ministry of Housing and Urban Affairs (MoHUA).

About Swachh Survekshan

Feature	Details
Conducted by	Ministry of Housing and Urban Affairs (MoHUA)
Objective	To promote cleanliness, hygiene, and sanitation through healthy competition
Participation	4,500+ cities; 14 crore citizens engaged via apps, feedback, campaigns
Framework	Based on “One City, One Award” principle
Assessment Parameters	Garbage Free City (GFC) star rating, source segregation, ODF status, public toilets, beautification, citizen feedback

New Initiatives in 2024–25

• Super Swachh League (SSL): A premier category for consistently top-performing cities.
• Revamped Categorization: Cities grouped across five population-based segments for fairness.

Award Winners: Swachh Survekshan 2024–25

Cleanest Big Cities (Population 10 lakh+)

Rank	City
1st	Ahmedabad
2nd	Bhopal
3rd	Lucknow

3–10 Lakh Population Category

Rank	City
1st	Mira-Bhayandar
2nd	Bilaspur
3rd	Jamshedpur

Best Ganga Town: Prayagraj

Best Cantonment Board: Secunderabad Cantonment

SaifaiMitra Surakshit Shehar (Sanitation Worker Safety)

• Visakhapatnam
• Jabalpur
• Gorakhpur

About Super Swachh League (SSL)

Feature	Details
Purpose	Recognizes cities with sustained performance in cleanliness over years
Eligibility	GFC 3-star+ rating, consistent performance in ODF++, segregation, and waste collection
Segments	Based on population: above 10 lakh, 3–10 lakh, below 3 lakh, below 1 lakh
Top Inductees	Indore, Surat, Navi Mumbai, Vijayawada, Chandigarh, Mysuru, etc. (23 cities in total)

PIB

2. Akash Prime Missile System

Context:

India conducted a successful high-altitude trial of the Akash Prime surface-to-air missile in Ladakh, a key step towards strengthening its indigenous air defence capabilities in mountainous terrain.

What is Akash Prime?

Feature	Description
Type	Medium-range Surface-to-Air Missile (SAM)
Developer	DRDO (Defence Research and Development Organisation)
Partners	Bharat Dynamics Ltd (BDL), Bharat Electronics Ltd (BEL)
Purpose	To neutralize aerial threats—drones, aircraft, and cruise missiles—in high-altitude areas

PIB

3. Corporate Social Responsibility (CSR)

Context:

The Ministry of Corporate Affairs (MCA) has introduced stricter registration and disclosure requirements for non-profit entities executing Corporate Social Responsibility (CSR) activities on behalf of companies, aimed at curbing misuse and aligning CSR funding with tax compliance and financial scrutiny.

Key Highlights:

• Revised Form CSR-1 Issued:
  • Effective from 14 July 2025, a new version of Form CSR-1 mandates enhanced disclosures from trusts, societies, and Section 8 companies seeking to implement CSR projects on behalf of corporates.
• Objective:
  • Prevent bogus or shell entities from accessing CSR funds.
  • Ensure alignment with Income Tax Act provisions, particularly Sections 12A, 80G, and 10(23C).
  • Enhance transparency and accountability in the CSR ecosystem.
• Expanded Eligibility:
  • Earlier, only institutions registered under Section 12A of the IT Act were eligible.
  • Now includes universities and hospitals qualifying for exemptions under Section 10(23C), broadening the CSR implementing agency base.
• Mandatory Tax Compliance Documents:
  • Entities must now submit IT registration certificates under 80G and 12A, wherever applicable.
  • Income tax registration is prerequisite for receiving CSR funds from companies.

Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) is a business approach where companies integrate social and environmental concerns into their operations and interactions with stakeholders. It’s a way for businesses to voluntarily contribute to a better society and a cleaner environment, going beyond just profit-making. 

Key Aspects of CSR

• Beyond Profit:
  • Focus on societal good alongside business goals.
  • Addresses the triple bottom line: People, Planet, Profit.
• Stakeholder Engagement:
  • Recognizes interests of employees, customers, communities, suppliers, and the environment.
• Ethical Conduct:
  • Promotes transparency, fair labor standards, anti-corruption, and responsible marketing.
• Environmental Sustainability:
  • Efforts to reduce pollution, energy consumption, and adopt green technologies.
• Community Involvement:
  • Volunteering, financial contributions, and development projects in local communities.

Examples of CSR Activities

Type of CSR Activity	Examples
Philanthropy	Donations to NGOs, funding schools or hospitals
Volunteering	Employees participating in community clean-ups or literacy missions
Environmental Initiatives	Renewable energy use, recycling programs, carbon offsetting
Ethical Supply Chains	Ensuring fair wages and safe working conditions in supplier factories
Community Development	Infrastructure support, skill training, sanitation and healthcare drives

4. Long-Billed Bush Warbler

Context:

A team of seasoned birders has successfully rediscovered the long-billed bush warbler (Locustella major) in the Suru Valley of Ladakh — a species not confirmed in the region since 1979.

Ecological and Scientific Significance

• Habitat Update:
  • For the first time, the warbler was seen perching on a willow tree in terraced fields among rumex and gooseberry shrubs.
• IUCN Status:
  • Classified as ‘Near Threatened’ by the IUCN.
• Population History:
  • Was common in Ladakh and Gilgit-Baltistan in the 1930s; sightings became rare due to sparse expeditions and habitat changes.

TOI

Banking/Finance

1. SEBI Flags Sustainability Concerns in F&O Trading Boom

Context:

SEBI has raised concerns over the excessive trading in ultra-short-term index derivatives, especially expiry-day options, which dominate market activity and pose risks to retail investors and market stability.

Key Highlights:

• Retail Losses in F&O:
  • A SEBI study revealed that 91% of retail individual traders in derivatives incurred net losses in FY25, amounting to losses over ₹1 lakh crore.
• F&O Market Dominance:
  • Derivatives turnover is nearly 350 times that of the cash equity market on some days, mainly driven by weekly index options expiring the same day.
• Regulatory Concerns:
  • SEBI flagged that this trend is not conducive to long-term capital formation and increases systemic risk.
• Recent Regulatory Actions by SEBI:
  • Since October 2024, SEBI imposed curbs such as:
    • Restricting weekly expiries
    • Increasing lot sizes
    • Tightening spread margins
  • Recently acted against US quant firm Jane Street over alleged manipulative practices, which caused a 20–36% drop in options turnover.
• Planned Reforms:
  • Longer-tenure derivatives contracts to reduce speculative churn and encourage genuine hedging.
  • Measures to deepen the cash equity market and promote broader participation.
• Strategic Focus Areas:
  • Reducing excessive speculation
  • Encouraging investment in REITs, InvITs, corporate bonds, municipal bonds, etc.
  • Strengthening capital market integrity and investor protection

Significance

• The move reflects SEBI’s effort to balance innovation with investor safety.
• It aligns with the regulator’s broader strategy to shift focus from speculation to productive capital formation.

TET

2. India’s Mutual Fund Industry Embraces Active Factor-Based Strategies

Context:

The Indian mutual fund industry is witnessing a shift in factor-based investing — from predominantly passive strategies to increasingly active factor fund offerings. With multiple new fund launches and growing investor interest, the active quant investing trend is gaining ground in 2025.

What Are Factor-Based Funds?

Factor funds build portfolios based on specific investment factors such as:

• Momentum (price or earnings-based trends)
• Quality (profitability, ROE, low debt)
• Value (undervalued stocks)
• Size (smaller companies with growth potential)
• Low Volatility (less price fluctuation)

Traditionally, such strategies were implemented through passive index funds or ETFs. However, a new wave of active fund launches is reshaping the space.

Recent Active Factor Fund Launches (2023–2025)

Fund House	Fund Type	Launch Status
ICICI Prudential MF	Active Momentum Fund	NFO open
Bandhan MF	Multi-Factor Fund	NFO open
Sundaram MF	Multi-Factor Fund	NFO closed (July 2025)
Kotak MF	Active Momentum Fund	To be launched (July 2025)
Mirae Asset MF	Multi-Factor Fund (FoF route)	Upcoming
Samco MF	Active Momentum Fund	Launched in 2023
Union MF, Nippon India, Motilal Oswal	Active Momentum Funds	Launched previously
WhiteOak, ICICI Pru	Active Quality Funds	Launched
SBI MF	Quant Fund (Multi-Factor)	Ongoing

Why the Shift from Passive to Active Factor Funds?

Market Dynamics Are Evolving

• Passive factor indices like Nifty 200 Momentum 30, Nifty 200 Quality 30, Nifty 50 Value 20, and Nifty 100 Low Volatility 30 have been tracking performance for over three years.
• However, factor performance cycles shift with:
  • Macroeconomic conditions
  • Valuation changes
  • Investor sentiment

Advantages of Active Factor Strategies

• Dynamic allocation: Switch between factors based on prevailing trends.
• Risk control: More nimble in avoiding underperforming sectors.
• Qualitative filters: Incorporate corporate governance, future outlook, etc.
• Customized factor models: Unlike index-based passive funds.

Example: The ICICI Pru Active Momentum Fund combines price and earnings momentum, unlike passive funds that only consider price.

3. Equity-Linked Savings Scheme (ELSS)

Context:

The once-popular Equity-Linked Savings Scheme (ELSS) is witnessing a decline in investor interest as taxpayers increasingly shift to the new tax regime, which does not offer tax deductions under Section 80C.

What are ELSS Funds?

Equity Linked Savings Schemes (ELSS) are tax-saving mutual funds that primarily invest in equities and offer tax deductions under Section 80C of the Income Tax Act, 1961.

Key Features of ELSS Mutual Funds

• Equity-Oriented Investment:
  • Invests majorly in equity and equity-related instruments (across large-cap, mid-cap, and small-cap stocks).
• Tax Deduction Under Section 80C:
  • Investments up to ₹1.5 lakh annually qualify for income tax deduction, offering potential tax savings up to ₹46,800 (for highest tax slab).
• Mandatory Lock-in Period:
  • ELSS has the shortest lock-in among all 80C instruments — 3 years. The funds cannot be withdrawn before this tenure.
• Capital Gains Taxation:
  • Gains after 3 years are treated as Long-Term Capital Gains (LTCG).
  • LTCG up to ₹1 lakh/year is tax-exempt.
  • LTCG above ₹1 lakh is taxed at 10% without indexation.

How ELSS Funds Work

• Managed by professional fund managers.
• Portfolio includes diversified stocks selected after detailed research.
• Goal is long-term capital appreciation while providing tax savings.
• Can be invested via lump sum or Systematic Investment Plans (SIPs).

Modes of Investment in ELSS Funds

• Lump Sum Investment: One-time investment with a 3-year lock-in per transaction.
• SIP (Systematic Investment Plan): Regular monthly investments — each SIP has its own 3-year lock-in.
• Online Mutual Fund Platforms or via Asset Management Companies (AMCs) directly.

4. RBI Set to Finalise Climate Risk Disclosure Norms for Banks

Context:

The Reserve Bank of India (RBI) is in the final stages of framing guidelines that will mandate banks and financial institutions to disclose climate-related risks in their lending portfolios. This move aligns with global climate finance norms, even as several major global banks roll back similar commitments.

Key Highlights:

Scope of RBI’s Climate Risk Framework

• Mandatory Disclosure Timeline:
  • Voluntary climate risk disclosures: From FY 2026–27
  • Mandatory compliance: From FY 2027–28
• Disclosures Will Include:
  • Climate-related risks in loan portfolios
  • Mitigation strategies and decarbonisation targets
  • Gross emissions data of borrowers, segmented by asset classes and industries
  • Stress testing to assess impact of physical risks (like floods, heatwaves) and transition risks (policy shifts, tech changes)

Draft Framework and Progress

• Draft climate disclosure norms were released in February 2024 for public feedback.
• RBI shared a 52-page draft guidance note with large banks outlining:
  • Methodologies for assessing physical and transition risks
  • Stress-testing borrowers’ loan repayment capacity under climate-related scenarios

Preparation by Banks

• Major banks have started:
  • Hiring climate risk consultants
  • Collecting granular climate-related financial data
  • Developing internal strategies to comply with RBI’s evolving framework

Significance of the Move

• India becomes part of a growing list of countries (e.g., UK, Japan) requiring climate finance transparency from financial institutions.
• Supports India’s Net Zero by 2070 goal and its upcoming national emissions-reduction target to be announced at COP30 in Brazil (Nov 2025).
• Enhances systemic resilience to climate-induced financial shocks, especially in a country vulnerable to frequent extreme weather events.

BL

5. NPCI Expands UPI–PayNow India-Singapore Payment Linkage

Context:

NPCI International Payments Ltd. (NIPL), the global subsidiary of NPCI, has announced the inclusion of 13 more Indian banks into the UPI–PayNow linkage between India and Singapore, effective July 17, 2025.

What is the UPI–PayNow Linkage?

• A real-time, cloud-based cross-border remittance system connecting India’s UPI (Unified Payments Interface) with Singapore’s PayNow.
• Launched in collaboration with RBI and Monetary Authority of Singapore (MAS).
• Enables seamless fund transfer using UPI IDs (India) and mobile numbers/VPAs (Singapore).

Total Indian Banks Now Part of UPI–PayNow: 19

Newly Added Banks (13):

1. Bank of Baroda
2. Bank of India
3. Canara Bank
4. Central Bank of India
5. Federal Bank
6. HDFC Bank
7. IDFC FIRST Bank
8. IndusInd Bank
9. Karur Vysya Bank
10. Kotak Mahindra Bank
11. Punjab National Bank
12. South Indian Bank
13. UCO Bank

Existing Banks (6):

• Axis Bank
• DBS Bank India
• ICICI Bank
• Indian Bank
• Indian Overseas Bank
• State Bank of India

UPI–PayNow Linkage Benefits

Feature	Description
Type	Real-time, cloud-based remittance system
Cost	Low-cost, ideal for small-value transactions
Security	High-level security infrastructure
Interoperability	Between Indian UPI and Singapore’s PayNow platforms
Utility	Person-to-person remittances, retail purchases (QR in SG)

BS

Agriculture

1. Cooperative Sugar Mills Shift to Grain-Based Ethanol

Context:

Amid limitations in seasonal sugarcane processing, several cooperative sugar mills are planning to convert molasses-based ethanol distilleries to grain-based or multi-feedstock systems. The move is aimed at enhancing efficiency, operational days, and ethanol output.

Grain-based ethanol

Grain-based ethanol is a biofuel produced by fermenting the starch in grains like corn, rice, or wheat. It’s a renewable energy source used to blend with gasoline, reducing reliance on fossil fuels and potentially lowering carbon emissions.

Need for Conversion

• Molasses Limitation:
  • Molasses is a byproduct of sugarcane processing, which only occurs for 4–5 months a year.
  • This restricts molasses-based ethanol production to ~200 operational days.
• Grain Advantage:
  • Grains like maize and damaged food grains are available year-round.
  • Ensures continuous ethanol production, boosting profitability and efficiency.

Broader Sectoral Implications

• Strategic Move for Ethanol Blending Goals:
  • Supports India’s target of 20% ethanol blending with petrol (E20).
• Boosts Rural Employment & Income:
  • Year-round operations lead to higher employment stability in rural areas.
• Improves Feedstock Diversification:
  • Aligns with policy push towards multi-feedstock ethanol production, reducing over-dependence on sugarcane.

Mint

Facts To Remember

1. India Successfully Tests Akash Prime in Ladakh and Ballistic Missiles in Odisha

India’s defence preparedness received a boost with two major developments:

1. Successful high-altitude trials of the Akash Prime air defence system by the Indian Army in Ladakh.
2. Test-firing of short-range ballistic missiles Prithvi-II and Agni-I by the Strategic Forces Command in Odisha.

2. U.K., Germany sign friendship treaty, deepening ties amid threats

Britain and Germany signed a wide-ranging friendship treaty on Thursday, deepening cooperation in defence, transport, and migration. The pact includes joint weapons exports, a new AI defence factory in Britain, and a mutual assistance clause, reflecting increased cooperation amid U.S. policy uncertainties. 

3. Yuliia Svyrydenko, appointed as Ukraine’s new Prime Minister

Ukraine’s Economy Minister and the key negotiator in the mineral deal with the U.S, Yuliia Svyrydenko, was appointed as its new Prime Minister, becoming the country’s first new head of government since the start of Russia’s full-scale invasion in 2022.

4. PGIM India MF gets new CEO

PGIM India Asset Management said Abhishek Tiwari has been elevated as the fund house’s CEO. Tiwari succeeds Ajit Menon, who had been PGIM MF’s CEO for the past seven years.

5. IRDAI Approves 26% Equity Share Transfer in Bajaj Allianz Insurance Arms

On July 15, 2025, the Insurance Regulatory and Development Authority of India (IRDAI) approved the transfer of 26% equity stake held by Allianz SE in its two Indian joint ventures—Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance—to Indian shareholders of the Bajaj group.