Daily Current Affairs (DCA) 19 March, 2025

Daily Current Affairs Quiz
19 March, 2025

International Affairs

1. Israel Launches Air Strikes on Gaza

Context:

Air strikes were carried out by Israel across the entirety of the Gaza Strip. At least 400 Palestinians dead, majority of them women and children, according to local health officials. These are considered the deadliest attacks on the Gaza since the outbreak of the 17 month war.

Reason for Attack

• Trigger
  • As Hamas reportedly refused Israel’s demands to alter the ceasefire agreement of January, Israel responded.
• Action Taken by Israel
  • Prime Minister Benjamin Netanyahu ordered the air strikes.
  • He declared that the operation was now open ended, with a plan to expand it.

Military Developments

• Evacuation Orders
  • Residents of eastern Gaza (Beit Hanoun and other areas to the south) were being evacuated.
  • It signals preparation for renewed Israeli ground operations.

International Reaction

• United States
  • Confirmed by the White House that there had been discussions with Israel.
  • It also expressed support for the actions of Israel.

Possible Consequences

• Total War Restart
  • This Ramzan attack shows potential huge escalation.
  • War has already witnessed tens of thousands of deaths of Palestinians with wide scale destruction.
• Hostage Crisis
  • About two dozen Israeli hostages are thought to remain alive.
  • Hamas warning: The return of war by Netanyahu will be a “ death sentence” for the surviving hostages.

Source: TH

2. NASA Astronauts Butch Wilmore and Sunita Williams Return After 286 Days in Space

Context:

NASA astronauts Butch Wilmore and Sunita Williams returned to Earth on March 18, 2025, after an extended 286-day mission in space.

Key Highlights

• Their return was facilitated by a SpaceX Crew Dragon capsule, which splashed down in the Gulf of Mexico, off the Florida coast.
• The astronauts were originally launched on Boeing’s Starliner capsule on June 5, 2024, for a brief mission. However, technical failures forced Starliner’s early return, leaving the astronauts stranded aboard the International Space Station (ISS).
• SpaceX took over their return mission, but delays pushed their homecoming back by several months.

Mission Details

• The astronauts traveled 121 million miles, completing 4,576 orbits around Earth.
• Wilmore and Williams became active members of the ISS crew, conducting experiments, repairs, and spacewalks.
• Sunita Williams set a record with 62 hours of spacewalking across nine missions, the highest for a female astronaut.
• Williams also served as ISS commander for part of the mission.

Challenges and Political Backdrop

• Their return was further delayed by spacecraft readiness issues.
• In January, political pressure from former President Donald Trump urged SpaceX to expedite their return.
• Despite political tensions, the astronauts maintained professionalism and expressed full support for NASA’s decisions.

Post-Return Process

• After splashdown, the astronauts were extracted from the capsule for routine medical checks.
• They will be flown to Houston, undergo further observation by NASA’s flight surgeons, and then reunite with their families.

The return of Wilmore and Williams marks the end of an unexpected and extended mission that tested both technology and human endurance. Their resilience, professionalism, and adaptability highlight the unpredictable nature of space exploration and the unwavering spirit of astronauts in facing challenges with composure.

Source: TH

3. Global Shifts in Financial Systems and the Rise of Dollar Alternatives

Context:

Written by Shyam Saran, former Foreign Secretary, highlighting China‘s and Brics+ initiatives to promote alternatives to the US dollar-dominated financial system.

Key Developments

China’s Efforts in Cross-Border Digital Currency Systems

• mBridge Project
  • A cross-border CBDC payment platform, initially driven by China, Thailand, Hong Kong, and UAE, with support from the BIS.
  • Recently strengthened by Saudi Arabia’s membership in June 2024.
  • BIS exited after the pilot phase; speculation suggests US pressure.
• The Reserve Bank of India (RBI) and the US Federal Reserve are also partner observers in mBridge.

Brics+ Initiatives

• Brics Bridge
  • A parallel, somewhat informal project to mBridge within Brics+ (now expanded to include Iran, UAE, Saudi Arabia, Egypt, Ethiopia, Venezuela, Indonesia).
  • Mentioned informally in Russian readouts, though absent in official Brics declarations.
• Brics Clear
  • An officially discussed payment and clearing system for Brics+ countries on a voluntary basis.
• Connection: mBridge and Brics Bridge are likely to converge over time, with Saudi participation boosting their momentum.

Growth of the Petroyuan

• Shanghai International Energy Exchange
  • Handles 10.5% of global oil trade; oil futures quoted in Shanghai make up 14.4% of global volume.
  • Compared to Brent (29%) and West Texas Intermediate (56%).
• Saudi Arabia and the UAE
  • Have started settling oil trades in currencies other than the US dollar, expanding the petroyuan market.
• India has also purchased oil from the UAE in rupees, signaling currency diversification in trade.

Proposed Brics Currency – “The Unit”

• Announced at the Kazan Brics Summit (October 2024) by the New Development Bank (NDB).
• Backed by:
  • 40% gold
  • 60% local currencies of member states.
• Gold will be minted domestically and held in an escrow account, recorded on the Brics Bridge ledger, not affecting central bank balance sheets.
• The gold-currency mix is intended to address concerns over yuan dominance and add credibility.

Broader Geopolitical and Economic Context

• Central banks worldwide are increasing gold reserves and repatriating gold due to fears of US financial sanctions.
• India has repatriated $800 billion from the Bank of England.
• The proposal for the Unit has not yet been officially adopted due to caution and potential US backlash.

India’s Position

• India has been participating in discussions but remains cautious.
• External Affairs Minister S. Jaishankar recently stated that India has “no interest in undermining the US dollar” and sees it as a source of global stability.
• However, with US economic disruptions and trade weaponization (particularly under Donald Trump), India may need to keep its options open and avoid overdependence on the dollar.

With the rise of mBridge, Brics Bridge, Brics Clear, and the petroyuan market, the global financial system is evolving. India must stay flexible and strategic, participating without overcommitment, ensuring it is not marginalized as the global economy shifts.

Source: BS

4. US Building on Strong Security Partnership with India: Tulsi Gabbard

Context:

US Director of National Intelligence Tulsi Gabbard affirmed commitment to strengthening the security partnership with India.

• Key focus areas include cyber security, emerging technology, and artificial intelligence (AI).

• Collaborative Approach
  • Emphasized “America first is not America alone.”
  • During her visit to New Delhi, Gabbard met Indian counterparts and acknowledged India’s serious security concerns.
• Future Opportunities
  • Highlighted the intention to build on the existing strong partnership.
  • Stressed leveraging the new US administration’s momentum for expanding collaboration.
• Intelligence Sharing
  • Underscored the importance of timely and relevant intelligence reporting to support informed decision-making by leadership.
  • Mentioned strengthening both security and economic partnerships as outlined in the compact statement by President Donald Trump and Prime Minister Narendra Modi.
• Cybersecurity and Emerging Tech
  • Identified rapidly evolving cyber threats and vulnerabilities as key challenges.
  • Called for maximizing capabilities in emerging tech and AI to enhance mutual security.
• Trump’s Vision
  • Reiterated President Trump’s commitment to achieving peace through realism, pragmatism, and strength.
  • Emphasized the need for strong leadership with a clear understanding of global challenges and opportunities.

Gabbard noted vast potential for continued growth and investment in shared security and economic interests between the US and India.

National Affairs

1. Supreme Court on Lokpal’s Jurisprudence

Context:

A Bench led by Justice B.R. Gavai decided to examine whether constitutional court judges (including High Court and Supreme Court judges) come under the jurisdiction of the Lokpal.

Key Highlights:

• The case arises from a suo motu proceeding.
• Triggered by a January 27 order from the Lokpal, which claimed authority to investigate complaints against serving High Court judges.

Lokpal’s Stand

• The Lokpal classified High Court judges as public servants, similar to
  • The Prime Minister
  • Union Ministers
  • Members of Parliament
  • Central government officials
  • Hence, asserting that judges fall under the Lokpal and Lokayuktas Act, 2013.

Supreme Court’s Observation

• Justice Gavai remarked
  • “We will consider the issue of the jurisdiction of the Lokpal.”
  • The court therefore will examine the legal validity of the Lokpal’s claims.

Significance

The ruling could provide clarity as to whether serving High Court and Supreme Court judges are answerable to the Lokpal. It has serious ramifications for judicial independence and accountability in India.

Lokpal and Lokayukta

2. The Future of Free Speech Global Survey

Context:

A new global survey by The Future of Free Speech, an independent U.S.-based think tank, has ranked India 24th out of the 33 countries surveyed on the question of support for free speech. Its report, titled ‘Who in the World Supports Free Speech?’ states that “while abstract support for free speech remains strong, commitment to protecting controversial speech is eroding in many parts of the world.”

Global Context

The survey ranks 33 countries on public support for free speech.

• Scandinavia leads
  • Norway (87.9) and Denmark (87.0) at the top.
• Trend:
  • Support for free speech declining since 2021, especially in democratic countries (notably U.S., Israel, Japan).
  • Some authoritarian-leaning countries show strong popular support, despite restrictive governments.

India’s Ranking and Score

• India placed 24th out of 33, with a score of 62.6.
• Positioned between South Africa (66.9) and Lebanon (61.8).
• Countries with most improvement: Indonesia (56.8), Malaysia (55.4), and Pakistan (57.0) — though still lower in rankings.

Key Findings on India

a) Contradictions and Disconnect

• High public support for free speech in theory, but
• Support for protecting controversial speech (especially criticism of government policies) is very low.
• 37% of Indians agree that governments should be able to prevent criticism of government policies — the highest among all surveyed nations.
  • By contrast:
    • U.K. (5%) and Denmark (3%) showed minimal support for such restrictions.

b) Disconnect Between Public Sentiment and Reality

• Although Indians believe free speech conditions have improved, international observers and rankings indicate worsening conditions in India.
• India joins Hungary (85.5) and Venezuela (81.8) in showing high public support but low actual protection of free speech.
• The report identifies these countries as examples of democratic backsliding, where public attitudes are disconnected from actual freedom levels.

Public Perception vs. Observers’ Assessment

• Many Indians report feeling that their ability to speak freely on political matters has improved.
• Observers and global freedom indexes, however, contradict this, pointing to increasing restrictions and censorship in India.

Conclusions from the Report

• Abstract support for free speech remains strong globally, but the willingness to defend controversial or dissenting speech is weakening.
• In India, the paradox is most evident:
  • People express support for free speech but simultaneously endorse government censorship of criticism.
  • This indicates growing authoritarian tendencies and political polarisation, with freedom of expression becoming conditional rather than absolute.
• Overall, the findings raise concerns over democratic erosion and the sustainability of free expression in India and similar nations.

Source: TH

3. India AI Mission

Context:

The India Artificial Intelligence (AI) Mission has signed an MoU with the Parliament to access its data for training indigenous large language models (LLMs). Other datasets from Doordarshan and All India Radio will be used.

Computational Infrastructure

• A common compute facility under the India AI Mission is made available with 14,000 GPUs.
• India aims to create domestic facilities for the manufacture and deployment of GPUs in the next 3–5 years.
• The government is assessing two competing instruction set architectures for indigenous GPU development, the decision will ultimately rest in the hands of experts.

Focus on Indigenous and Proprietary Tech

• The Minister emphasized the need for India’s own LLMs and expressed concerns that “open source today may not remain open source tomorrow,” citing examples from the world stage such as OpenAI.
• Priority will be given to the development of proprietary technology and AI models so as to realize self reliance.

Collaboration and Talent Development

• The government is planning to collaborate with industry, professors, and startups in developing indigenous LLMs.
• Following the success of setting up 100 labs for 5G training in universities, a similar approach will be taken for AI skill development.

India U.S. Tech Partnership

• Despite trade tensions and export controls, Mr. Vaishnaw highlighted the India U.S. technology partnership based on trust and mutual respect for IP rights.
• He emphasized the decade long co development and co creation efforts as a strength for both countries in the AI race.

Strategic Vision

• The overall vision should be such that India is not merely a consumer but is also a producer of cutting edge AI technology.
• Building indigenous models along with compute infrastructure will be crucial for maintaining strategic autonomy and global competitiveness.

4. Chandrayaan-3 Data About Water on Moon

Context:

As countries like the US, China, Russia, and India develop plans for long-term stations on the moon, water available on the moon itself is emerging as a vital resource. Aside from meeting the drinking and sanitary needs of astronauts, scientists are also working on using moon water as fuel for rockets launched from the natural satellite.

Key Highlights:

• Water will be a major resource for the long term space missions postulated by the US, China, Russia, and India on the moon.
• Water is vital for astronauts’ drinking and hygiene, besides being useful in the form of rocket fuel from the moon.

Study and Findings

• PRL scientists in Ahmedabad have found that larger places on the moon than thought before may be available for water ice.
• The study is founded upon the local ground level observations made by the Chandrayaan-3 Vikram lander, which set down on the lunar surface in August 2023.

Temperature Measurements

• The team measured ambient surface temperatures and sub surface temperatures at Shiv Shakti Point (69.373° south, 32.319° east) on the south pole of the moon using Chandra’s Surface Thermophysical Experiment (ChaSTE).
• This experiment used 10 high accuracy platinum resistance temperature detector (RTD) sensors on board to monitor surface temperatures for approximately 10 days on Earth during the lunar day (around 8 hours).
• Highest temperatures achieved during the lunar days were 82ºC while nighttime temperatures plummeted to about 181ºC.

Key Insights

• The temperatures recorded on the surface vary on a meter scale from 82ºC on the sun facing slope to 58.85ºC just a meter away on the flat ground.
• The slopes facing away from the sun (more than 14°) remained cold and may serve as pathways for water ice migration and stabilization beneath the surface.

Significance

• This is the first time that temperature on the high latitude of the Moon has been in situ measured.
• Findings support the theory that water ice is not limited to only the poles, there is a possibility of it existing at higher latitudes, which will make extraction easier.
• Near term exploration in these areas can be less technically demanding than at the poles, which will serve for the success of future missions and possibly human settlements.

Next Steps

• The PRL team plans to use this data to model the thermophysical properties of the moon and the stability of water ice at different representative sites on it.
• Such research would serve as a guiding insight to future exploration strategies and development of lunar infrastructure.

By documenting the thermal environment and ice distribution of the moon, this PRL study represents a large step forward. It opens up several opportunities for utilizing lunar water resources outside the poles, which will be a great boost to future exploration, habitation, and resource utilization on the Moon.

Source: TH

5. Election Commission to Start Aadhaar-Voter Card Linkage Process

Context:

The Election Commission (EC) announced that the linkage of voter ID cards with Aadhaar will be carried out as per existing laws and Supreme Court directions. The EC confirmed that technical consultations between its experts and UIDAI (Unique Identification Authority of India) will start soon.

High-Level Meeting Held

• The EC met with key officials:
  • Union Home Secretary
  • Legislative Secretary (Law Ministry)
  • MeitY Secretary (Ministry of Electronics and IT)
  • UIDAI CEO
• Discussions focused on voter card-Aadhaar seeding.

Clarifications from the Government

• In April 2023, the government informed Rajya Sabha that: Citizens who do not link Aadhaar with voter ID will not have their names removed from electoral rolls.

Constitutional Standpoint

• The EC reiterated: Voting rights are guaranteed only to citizens of India (Article 326 of the Constitution).
• Aadhaar helps establish identity, but not citizenship.

Supreme Court Development

• The Supreme Court noted the EC’s submission that it is open to discussions on publishing booth-wise voter turnout data.
• The SC directed petitioners to submit representations to the EC within 10 days.

Key Takeaways

• Aadhaar linkage will proceed cautiously and legally, with attention to privacy and non-discrimination.
• There will be no automatic deletion of voter names for non-linkage.
• The EC is showing openness to transparency, including potential booth-wise data publication discussions.
• Political and judicial oversight will continue to shape the process.

Banking/Finance

1. S&P upgrades ratings for Shriram Finance, Muthoot & Sammaan Capital

Context:

Following the regulatory changes by RBI, S&P Ratings upgraded the ratings of Muthoot Finance, Shriram Finance, and Sammaan Capital. The newly adopted regulatory provisions strengthened the financial stability and also promoted sustainable growth.

RBI’s Scale based Regulation Framework

• Established in October 2022.
• Progressively regulation based on size and risk profile of the NBFCs.
• Upper layer: for stricter supervision of large NBFCs.

Key Regulatory Measures

• Minimum 9% Common equity Tier 1 capital to risk weighted assets as per capital adequacy norms.
• Standard Assets Provisioning to be at par with that of banks.
• More details on large exposure framework to monitor closely.

Effects on Financial Companies

• More sounder and stable financial position.
• Improved practice of risk management.
• Higher market and investor confidence with large NBFCs.

What is S&P?

The Standard and Poor’s 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States.

S&P’s Observation

• RBI measures have further helped in making the sector more resilient.
• The rating upgrade is a reflection of increased stability and better governance in these major NBFCs.

Indeed, the scale based regulation approach of the RBI has forged a stronger and more stable financial ecosystem for large NBFCs. As a result, Muthoot Finance, Shriram Finance, and Sammaan Capital among the institutions are well positioned to sustain growth and long term trust in the market.

Source: BS

2. Moody’s Review of IndusInd Bank’s Ratings

Context:

Moody’s is reviewing the Baseline Credit Assessment (BCA) of IndusInd Bank for possible downgrade.
The review is in line with the recent revelation of an accounting discrepancy amounting to ₹2,100 crore, which could impact the net worth of the bank to the extent of 2.35%.

What is Baseline Credit Assessment (BCA)?

Baseline credit assessments are based on the entity’s standalone financial health, without considering any support it might get from related companies. 

Current Ratings

• Moody’s affirms the following ratings with a stable outlook
  • Long term and short term foreign currency bank deposits: Ba1/NP
  • Local currency bank deposits and issuer ratings: Ba1/NP
  • Counterparty risk ratings: Ba1/NP

Bearer Meaning of BCA

• The BCA represents the financial health of the bank when it stands on its own, and does not take into consideration external support by related or affiliated companies.

Fundraising Move

• Even amidst the accounting controversy, IndusInd Bank raised Rs 110 billion ($1.27 billion) through short term notes (Certificates of Deposit).
• It also marks the first move after the fine since the financing was done at marginally higher rates.
• The maturity profile of the CDs issued ranges from three months to one year.

IndusInd bank is undergoing the microscope of judgments along with the potential downgrade review from Moody. However, it believes it can raise funds shortly after the accounting discrepancy disclosure, which demonstrates resilience and continued market confidence but with a higher cost of borrowing.

Source: BS

3. Paytm Money Receives Certification to Work as a Research Analyst by SEBI

Context:

Paytm Money has received a registration certificate from SEBI to operate as a research analyst, as disclosed by an exchange filing.

Implications

• The certification permits Paytm Money to publish research reports.
• This development will help the company to grow its offerings in the investment ecosystem.
• It endeavors to enrich the user experience with insights based on expert opinions for retail and institutional investors alike.

The SEBI certification is a remarkable milestone for Paytm Money that strengthens its foothold in the financial services sector and thus provide high end research and insights to the investor, consequently increasing user engagement and trust.

Source: The Economic Times

4. Income Tax Bill 2025 Expands AMT Scope

Key Changes in the Income Tax (IT) Bill, 2025

• The Bill broadens the scope of the Alternative Minimum Tax (AMT) for taxpayers other than companies, notably LLPs and partnership firms.
• Currently, LTCG (Long-Term Capital Gains) is taxed at a preferential rate of 12.5% under AMT calculation.
• The new Bill proposes removal of this special treatment, potentially raising the effective tax rate to 18.5%, increasing tax liability.

Omission in the New Bill

• The Bill omits a provision from the IT Act, 1961, which limited AMT applicability to those claiming Chapter VIA deductions (such as donations, infrastructure profits, employment generation incentives).
• This omission means AMT may now apply to all LLPs and partnership firms, regardless of whether they claim deductions, including those with pure capital gains.

Consolidation and Applicability

• In the new IT Bill, AMT and MAT (Minimum Alternate Tax) have been merged into Section 206.
• Section 206 states: AMT applies if tax payable by an LLP on adjusted income is less than 18.5%, with no specific carve-outs.

Implications

• LLPs and partnerships investing in capital assets could face a significant tax hike.
• Particularly impacts investment-focused LLPs and structures holding long-term assets.

Government Response

• The Central Board of Direct Taxes (CBDT) has invited suggestions from stakeholders regarding the Bill’s provisions and rules.
• Stakeholder input will be compiled and forwarded to the Select Committee for review.

Quick Reference: Current vs Proposed AMT Treatment

Aspect	Current Law (IT Act, 1961)	Proposed (IT Bill, 2025)
LTCG tax rate under AMT	12.5% preferential rate	Special treatment removed; likely taxed at 18.5%
Applicability limited to	Entities claiming Chapter VIA deductions	No limitation; likely applies to all LLPs and partnership firms
Relevant section	Separate provisions, with carve-outs (like Section 115JEE)	Consolidated under Section 206, without clear carve-outs

The Income Tax Bill, 2025, if passed without amendments, could raise taxes on LLPs and partnership firms, especially those earning LTCG. Industry stakeholders are calling for clarification or correction to avoid unintended taxation consequences.

Source: BS

5. The National Asset Reconstruction Company Limited (NARCL)

Context:

The National Asset Reconstruction Company Limited (NARCL) under the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act is pleased to announce that most of the lenders have assigned loan accounts of India’s biggest bulk tea producer, McLeod Russel India, to NARCL.
This should streamline and speed up the debt resolution process concerning the troubled tea producer.

The National Asset Reconstruction Company Limited (NARCL)

The National Asset Reconstruction Company Ltd or NARCL is the name of the asset reconstruction company incorporated to take over and dispose of the stressed assets of commercial banks. Stressed assets of commercial banks worth Rs 2 lakh crore have been identified to be taken up in the first phase by the NARCL.

Another Assignment Explained

• The results of an Assignment Agreement executed on March 12, 2025, signify that ICICI Bank as lead bank and seven other banks (SBI, HDFC Bank, Axis Bank, PNB, UCO Bank, Indian Bank, RBL Bank) have assigned their loan accounts to NARCL.
• Thus, NARCL has now become the lender and secured creditor for the loans, with full rights, securities, and guarantees associated with them.
• IndusInd Bank is the only member in the consortium that has not taken part in the assignment.

Modified Debt Settings

• Total principal outstanding: ₹1,461.06 crore.
• Earlier, Yes Bank had assigned its loan to JC Flowers ARC, now holding a 24.39% share of McLeod’s debt.
• IndusInd Bank holds 4.90% shares.

Swiss Challenge to Bid Process Attempt

• Debt assignment/expression of interest was invited by lenders in December 2024 for selling/assigning debts aggregating to ₹1,104.69 crore, with a reserve price of ₹700 crore.
• This process did not attract any bids.

Restructuring Prospects

• With fewer lenders (NARCL, JC Flowers ARC, and IndusInd Bank), this might give McLeod Russel room for a detailed restructuring roadmap.
• The talks for a debt restructuring arrangement have been going on for almost six years but with no visible progress.

Legal Roadblocks and Circumstances Surrounding Previous Attempts

• Lenders and creditors have had cases here in the Debt Recovery Tribunal (DRT) and under the Insolvency and Bankruptcy Code, National Company Law Tribunal (NCLT), Kolkata.
• Supported by Carbon Resources, McLeod had submitted four proposals, one of which included a settlement on a one off basis, but these did not go forward.

Future Prospects

As the tea season starts, fresh restructuring ought to be in tune with the market and strive for long term viability. The consolidation of the various lender accounts under NARCL is considered a favourable sign for resolution, potentially bringing closure to a long standing six year battle.

Source: BS

6. Augmented Banking Services

Context:

Governor Sanjay Malhotra stated in his address at the RBI’s annual conference of ombudsmen that all banks and NBFCs need to enhance their customer services. Complaints under the RBI’s Integrated Ombudsman Scheme have increased at an extraordinarily CAGR of 50 per cent in the last two years up to FY24, with RBI capacity to process the complaints rising a mere 25 per cent, thus leading to sizeable backlogs.

Augmented Reality (AR)

Augmented reality (AR) within the banking industry is rapidly changing how financial institutions engage with customers and manage their day-to-day operations. As technology evolves, augmented reality banking tools are becoming indispensable, offering new ways to elevate customer experiences and improve the efficiency of financial services. These tools enable banks to create immersive, interactive experiences that were once thought impossible.

Augmented reality in banking includes applications like visualizing financial data through AR dashboards for enhanced decision-making and customer interactions. Banks use AR to overlay relevant account information during client consultations and to interactively demonstrate banking products and various services.

RBI Recommendations

• Senior bank officials must dedicate some time every week to the grievances of customers.
• Systems and mechanisms under banks must be built so that the volume of complaints is reduced.
• He referred to the grave concern that competitive banks cannot survive in really providing excellent customer service, particularly now in the era of digital payments.

Challenges

• Awareness
  • A significant chunk of customers, especially from the disadvantaged income groups, may not file a complaint due to simply not knowing its existence.
• Urbanization
  • More than 70% of complaints for about FY24 are coming from urban and metro centers, leading to the conclusion that the rural and semi urban customers are still underserved.
• Decline in Manpower
  • Public Sector Banks (PSBs) have seen a reduction of over 150,000 clerks and a decrease in total employees from 2013 to 2024.
  • There is therefore a threat to the quality of customer service regarding staff scarcities.

Operational Concerns

• Leadership Vacancies
  • Some 40% of the director level positions at the PSBs have remained unfilled, according to details given by the government in Parliament.
  • It threatens governance, strategic decisions, and customer centric operations.
• PSBs vs. Private Banks
  • Although PSBs continue to register complaint records, private banks are required to construct redressal systems, regardless of workforce increases.

Quality customer centricity is important in the banking and financial services industry, particularly where financial inclusion and customer trust are important.

Source: BS

7. SEBI May Reconsider Gross Limit Proposal for Index Options

Context:

The Securities and Exchange Board of India (SEBI) might reconsider its proposal on the basis of the gross limit for all clients trading in index options after receiving overwhelming market feedback against it.

Main Points of SEBI’s Proposal

• Gross Limit on Index Options
  • Is proposed to combat any manipulation and formulate better risk exposure.
  • Is a summation of both long and short option positions’ deltas, gross instead of net.
  • Aim: To restrict large manipulative positions mainly in individual stocks and index derivatives.
• Delta Based Calculation of Open Interest (OI)
  • SEBI also suggested changing the basis of calculation of open interest to delta.
  • Delta measures how much an option’s price changes with a change in the underlying index/stock.
  • In this connection, the change has received positive feedback from market operatives.

What Is Open Interest?

Open interest is the total number of outstanding derivative contracts for an asset such as options or futures that have not been settled. Open interest keeps track of every open position in a particular contract rather than tracking the total volume traded.

Concerns Raised by the Market

• Liquidity Concerns
  • Brokers, proprietary desks, and institutional traders are fearing that the market will become less liquid and wider bid/ask spreads would greatly inflate the cost and inefficiency of trading.
  • Most directly affected would be large trading desks (prop desks, HFTs, FPIs).
• Impact on Hedging
  • A gross limit protocol might enfeeble the hedging program of big funds on their portfolios, which in turn could jeopardize market operation.
• Risk Management Being Contradictory
  • Itself, buying and selling of options across different strike levels is another way of reducing risk.
  • By instead summing long and short deltas separately, this gross limit proposal will actively contravene this risk reducing principle.

SEBI’s Response & Next Steps:

• SEBI is willing to accept that risks are not covered only by delta, and pointed out volatility and time decay as some other variables.
• Instead of having different limits on many parameters, it sees gross limit setting as a simplified risk management device.
• It seems that a review is on the way and is likely to amend the proposal depending on the feedback from the industry.

Gross limit proposes a tremendous concern in the direction of liquidity in the market, cost of transactions, and flexibility to hedge on index options trading.
SEBI intends to curb manipulation and control systemic risk; however, the intricacies of market dynamics and unforeseen ramifications could be pushing the regulator toward a redoing of the proposal.

Source: Mint

8. SEBI’s Settlement Mechanism Faces Criticism

Purpose of the Settlement Mechanism

• Designed to offer a faster route to resolve securities law violations and reduce prolonged court litigation.
• Intended to streamline enforcement and lower the burden on the legal system.

Current Issues Highlighted

• Growing delays and inefficiencies in processing applications.
• Increasing perception of discretionary and inconsistent practices.
• Inflated settlement amounts and strict non-monetary terms causing concern.

Key Data Points

• Settlement amounts collected in FY25 (till 15 March): ₹851 crore.
• Comparatively higher than ₹125 crore in FY23 and ₹94 crore in FY24.
• Excluding the ₹643-crore NSE case, collections are still significantly higher.
• Pending settlement applications at the end of FY24: 289 (up from 137 in FY23).
• New applications in FY24: 434 (up from 386 in FY23).

Issues with Settlement Amount Calculations

• SEBI has a formula based on base amounts, base values, proceeding conversion factors, and regulatory action factors.
• Critics argue SEBI uses tangentially relevant base values, leading to inflated amounts.
• Lack of negotiation flexibility during internal committee meetings.

Settlement Process Structure

• Internal Committee: Officer not below chief general manager rank.
• High-Powered Advisory Committee: Includes a former Supreme Court or high court judge and three external securities market experts.
• Final approval by a panel of SEBI whole-time members.

Upcoming Changes

• SEBI whole-time member Kamlesh Chandra Varshney mentioned final discussions are underway to draft a standard operating procedure (SOP) for settlements.

Other Concerns

• Settlement process often more expensive than litigation.
• Enforcement orders coming for settlement increased from 10% to 45% in the past five years.
• Rising use of non-monetary terms (compliance undertakings, voluntary debarment) beyond the original show cause notices.
• Potential legal risks for applicants, including suspension of business activities or forced management exit.

SEBI’s settlement mechanism, despite its original intent to reduce litigation, is currently seen as opaque, expensive, and time-consuming. Reforms and a well-defined SOP are expected to address these growing concerns.

Mint

9. SEBI’s Proposal of a Gross Limit for Index Options

What Is an Index Option?

An index option is a financial derivative that gives the holder the right (but not the obligation) to buy or sell the value of an underlying index, such as the S&P 500 index, at the stated exercise price. No actual stocks are bought or sold. Often, an index option will utilize an index futures contract as its underlying asset.

Key Highlights:

• Concerns of the Brokers
  • Dryness of the limit would reduce liquidity in the market.
  • Costliness to trade as the bid ask spread is likely to widen.
• Bid ask spread
  • Difference between highest price, the buyer is willing to pay (bid), and lowest price, a seller accepts (ask).
• Loss of liquidity is what brokers expect, leading to costs that clients suffer from.

Responses and Feedback from SEBI

• SEBI received close to 1,000 responses, most against the gross limit proposal.
• Regarding market raving, those changes welcomed carrying delta measurement into open interest (OI) based calculations.
• It shall review the comments received and consider the possibility of amending the gross limit proposal from its current form.

Delta Based Open Interest Calculation

• Delta is a measure of change in an option price for every one point change in the underlying asset.
• For example: If the Nifty moves by Re.1 and the price of the option moves by 50 paise, then delta = 0.5.

SEBI’s Justification

• SEBI justifies that risk from options derives not just from delta but also from volatility and time.
• SEBI wishes it would not complicate matters putting limits to each parameter.
• Impact on Large Traders
  • A broking firm official noted that large funds could not hedge their portfolios effectively under the gross limit rule.
  • Reportedly, most brokers opposed a gross limit of ₹1,500 crore at the end of the day.
• Impact on Trading Desks and Institutions
  • Gross limits would put an obstacle in the way of proprietary trading desks (prop), of high frequency trading (HFT) firms and foreign portfolio investors (FPIs).
  • This could lead to a huge dip in volumes of trades, though estimates differ regarding that impact.

Thus, strong feedback from the industry would lead SEBI to amend its position regarding gross limits.
This debate brings to light the conflicting principles of preventing market manipulation against the interests of market liquidity and efficiency.

10. Canara Bank Launches Digital Balance Confirmation Certificate

Key Highlights

• Objective
  To eliminate manual processes and improve efficiency in obtaining Balance Confirmation Certificates.
• Platform
  Launched through the PSB Alliance Pvt. Ltd portal.

Previous Process (Manual)

• Auditors were required to:
  • Approach each bank individually.
  • Provide authority letters to request Balance Confirmation Certificates.
  • Wait for manual verification and processing — a time-consuming and tedious task.

New Digital Process

• Auditors will now receive direct confirmations via the online portal.
• Confirmation is sent after online consent from the customer.
• No manual intervention is needed.

Benefits of the Digital Initiative

• Time-saving: Significantly reduces auditing turnaround time.
• Streamlined process: No paperwork or manual follow-ups required.
• Transparency: Ensures accuracy and traceability in confirmations.
• Customer involvement: Online consent from customers adds a layer of security and authorization.

Canara Bank’s digital balance confirmation initiative through the PSB Alliance platform marks a significant step toward simplifying auditor-bank interactions, fostering transparency, and enhancing operational efficiency in financial audits.

Source: BL

Economy

1. India’s Decline in Goods Trade

Trade Performance

• Exports had shrunk by 10.9% to cross $36.91 billion.
• Imports dropped by 16.3% to $50.96 billion.
• The deficit stood at $14 billion the narrowest in 42 months.

Causes for Alarming Trend

• The narrowing trade deficit has not resulted from an increase in exports; both exports and imports have decreased.
• An unusually high base effect prevailing during February 2023 (which happened to be a leap year with greater trade numbers) has also contributed to this steep fall in percentages.

External Challenges

• U.S. Tariff Ambiguity
  • Reportedly, U.S. importers are holding back on orders ahead of the application of reciprocal tariffs from April 2.
  • The pronouncement of President Donald Trump on February 13, just before meeting Prime Minister Modi, has injected some hesitation into the markets.
  • They discussed the intention to scale bilateral trade to $500 billion by 2030 and finalize the BTA, however, nobody seems to be making any real substantive progress.
  • There was limited success in resolving the issue despite recent high profile interventions by Commerce Minister Piyush Goyal, who states that a commitment will be made for further negotiations.
• Dependency on U.S. Trade
  • U.S. is India’s second largest trading partner after trade amounting to $118.3 billion last fiscal year.
  • Further, it is their only top five trading partner with which India maintains a trade surplus, thus a critical market for exporters.

Import Trends

• Gold Imports
  • Because of domestic prices hitting an all time high of ₹87,886 per 10 grams, consumer demand was significantly dampened as gold imports plummeted by 62%.
• Oil Imports
  • Near to a decline of one third following India reducing supplies in response to latest U.S. sanctions on Russian oil producers and tankers in January 2024.
• Future Risks
  • Should the U.S. take concrete measures to reduce its trade deficit with India, India’s overall trade deficit could be widened by 15%, referencing last year’s $241 billion shortfall.
  • This gives added weight to India’s need to lessen its reliance on U.S. trade.

Diversification Strategy

• China
  • While China dominates as India’s largest contributor in the trade deficit, providing for nearly one third of the total gap, trade rebalancing seems arduous.
• United Kingdom
  • Given the relatively low shrinkage of trade with the U.K., it contributes less than 3% to the overall deficit.
  • Opportunities to fix trade relations and decrease vulnerability to trade risks greatly arise in the courses of FTA negotiations with the U.K..

2. India-New Zealand FTA

Context:

India and New Zealand plan to sign a full fledged and comprehensive Free Trade Agreement (FTA) within the next 60 days. The proposed FTA is expected to increase bilateral trade 10 fold over the next 10 years.

Areas of Cooperation

• Agritech
• Dairy and Food Processing
• Pharmaceuticals
• Renewable Energy
• Critical Minerals
• Forestry and Horticulture
• Travel and Tourism
• Sports

FTA Negotiation Timeline

• Negotiations started 14 years back and after 10 rounds have remained stalled with no formal discussions since February 2015.
• Resumption of negotiations after 10 years was announced during the visit of PM Luxon to India from March 16 to 20, 2025.

Geopolitical Significance

• Timeliness is essential as international trade has begun a reset owing to geopolitical shifts and countries are now focusing on bilateral agreements.
• India is also negotiating FTAs with the US, UK, EU, Australia, and Oman and is hoping to conclude an agreement with the US, EU, and New Zealand by the end of this year.

Challenges and Sensitivities

• Demands from New Zealand: More access to the market for agricultural products and wines.
• Stand of India:
  • Protecting agriculture from any imports by imposing a high import tariff.
  • Dairy imports (milk, butter, cheese) have extremely strong political sensitivities and are a ‘red line.’
  • India should get eased mobility for professionals and better access for its IT sector and services.
  • According to the GTRI think tank, India will hardly buy New Zealand dairy ($0.57 million), thus showing limited existing trade in this sensitive sector.

After years of talks stalled, both countries are now pushing for swift FTA conclusion, utilising each other’s economic complementarity while being carefully sensitive to long standing issues. By boosting trade relations and strategic cooperation, the agreement would bring two countries farther along the path of engagement.

Agriculture

1. Government Initiatives to Promote Organic Farming

Key Schemes

1. Paramparagat Krishi Vikas Yojana (PKVY) — implemented across all States/UTs.
2. Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) — focused on the North Eastern Region.

Objectives of PKVY & MOVCDNER

• Promote natural resource-based, climate-resilient sustainable farming systems.
• Focus on:
  • Soil fertility maintenance
  • On-farm nutrient recycling
  • Natural resource conservation
  • Reducing dependence on external inputs
  • End-to-end farmer support: from production to post-harvest management, training, and marketing.

Coverage & Progress

• Since 2015–16, 59.74 lakh hectares have been covered under organic farming.
• Coverage includes:
  • National Programme for Organic Production (NPOP)
  • Participatory Guarantee System (PGS) under PKVY
  • MOVCDNER areas
• State-wise details available in official annexure till 2023–2024.

Financial Assistance

Scheme	Total Assistance (3 years)	Direct Benefit Transfer (DBT)	Other Support Areas	Max. Eligible Area
PKVY	₹31,500/ha	₹15,000/ha for organic inputs	– ₹4,500/ha for marketing, branding, packaging, value addition – ₹3,000/ha for certification & residue analysis – ₹9,000/ha for training & capacity building	2 hectares
MOVCDNER	₹46,500/ha	₹15,000/ha (within ₹32,500/ha input support)	– Support for creating FPOs – Training, certification, and capacity building assistance of ₹10,000/ha over 3 years	2 hectares

Organic Certification Systems

• Third-Party Certification
  • Under NPOP, managed by the Ministry of Commerce and Industry for export market development.
• PGS-India Certification
  • Under Ministry of Agriculture & Farmers Welfare,
  • Involves farmer participatory assessment and verification.

Marketing & Market Support

• States facilitate market access through:
  • Seminars, conferences, and workshops
  • Buyer-seller meetings
  • Exhibitions, trade fairs, and organic festivals in key domestic and interstate markets.

The government is steadily promoting organic farming with focused schemes and financial assistance. Training, certification, capacity building, and marketing efforts aim to ensure long-term sustainability and market viability for organic farmers.

Source: PIB

2. Per Drop More Crop (PDMC)

Overview

• Launched: 2015–16
• Focus: Enhance water use efficiency at the farm level through Micro Irrigation (Drip and Sprinkler systems).
• Scheme evolution:
  • 2015–16 to 2021–22: Implemented under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY).
  • Since 2022–23: Implemented under Pradhan Mantri Rashtriya Krishi Vikas Yojana (PMRKVY).

Key Achievements (2015–16 till date)

Type of Irrigation	Area Covered (lakh hectares)
Drip Irrigation	46.37
Sprinkler Irrigation	50.60
Total	96.97 lakh hectares

Financial Assistance to Farmers

Farmer Category	Subsidy (% of unit cost)
Small & Marginal Farmers	55%
Other Farmers	45%

Study & Evaluation

• Conducted by: NITI Aayog in 2020
• Key Findings:
  • Scheme is highly relevant to national priorities.
  • Helps improve on-farm water use efficiency.
  • Enhances crop productivity.
  • Creates employment opportunities.
  • Contributes to overall income enhancement for farmers.

Financial Support (Current Year)

Scheme	Central Assistance (₹ crore)
PMRKVY (total)	₹ 5711.55 crore
Out of which, for PDMC scheme alone	₹ 2232.30 crore

The PDMC scheme continues to play a pivotal role in promoting micro-irrigation, leading to efficient water use, higher productivity, and better livelihoods for farmers — in alignment with national agricultural and resource management goals.

Source: PIB

3. National Mission on Edible Oils – Oilseeds (NMEO-OS)

Objective

• Enhance domestic oilseed production and achieve self-reliance (Atmanirbhar Bharat) in edible oils.

Mission Structure

• Creation of 600 Value Chain Clusters across India.
• Coverage of more than 10 lakh hectares annually through these clusters.

Research & Development Initiatives

• Consortia Research Platform on Hybrid Technology (since 2014–15)
  • Focus on development of hybrids for higher productivity in selected crops, including:
    • Oilseeds (Indian Mustard)
    • Pulses (Pigeonpea)
• Revival of Sunflower Cultivation Project
  • Production and distribution of 15,000 quintals of certified seeds of 10 hybrids.
  • Focused on major sunflower-growing regions.
• National Food Security Mission (NFSM)
  • Supports Front-Line Demonstrations (FLDs) on:
    • Pigeonpea
    • Sunflower
    • Castor hybrids
• Network Project on Pigeonpea
  • Aimed at enhancing production and productivity using short-duration, high-yielding varieties and hybrids.

Seed Quality & Distribution

• Establishment of Seed Hubs:
  • 34 Oilseeds Seed Hub Centres at ICAR institutes and State Agricultural Universities (SAUs).
  • 150 Pulses Seed Hub Centres for distribution and availability of quality seeds to farmers.

Research Coordination and Hybrid Release

• All India Coordinated Research Projects (AICRP) on oilseeds and pulses are the nodal agencies for:
  • Assessing yield performance and stability of hybrid technology.
  • Making final recommendations for release at the national level.
  • After notification, hybrids/varieties are included in the seed multiplication chain.

Field-Level Promotion

• Front-Line Demonstrations (FLDs) conducted:
  • To showcase production potential.
  • To estimate benefit-cost ratio of technologies.
  • Carried out under direct supervision of scientists on farmers’ fields for first-time demonstrations.

The NMEO-OS, along with focused hybrid research and seed distribution initiatives, is a comprehensive step towards boosting India’s oilseed productivity, ensuring seed quality, and promoting sustainable self-reliance in edible oil production.

Source: PIB

4. Farmers’ Distress Index (FDI)

Overview

• Systemic nationwide assessment of Farmers’ Distress Index (FDI) is not yet available.
• A pilot study titled “Agrarian Distress and PM Fasal Bima Yojana: An Analysis of Rainfed Agriculture” was conducted for Telangana and Andhra Pradesh during 2020–21 and 2021–22.

Purpose of FDI

• Developed as a multidimensional tool to:
  • Forewarn stakeholders of impending farm distress.
  • Provide policy support for addressing distress severity.
  • Identify distressed areas and enable timely preventive actions.

Scope of the Study

• Conducted at the sub-district level to build an early warning system.
• Focused on rainfed agriculture, which is more vulnerable to climate and price shocks.

Key Parameters of FDI

FDI assesses distress based on seven key parameters:

1. Exposure to risk (climate variability, price fluctuations, pests, etc.)
2. Adaptive capacity (ability to cope with changing conditions)
3. Sensitivity (degree to which farmers are affected by stress factors)
4. Mitigation and adaptation strategies (steps taken to manage risks)
5. Triggers (events causing sudden distress)
6. Psychological factors (mental health and perception of distress)
7. Impacts (consequences on income, livelihood, and well-being)

Functionality of FDI

• Forewarning System:
  • Provides alerts three months in advance to take preventive measures.
• Planning Tool:
  • Assists government and local communities in identifying causes of distress.
  • Supports the formulation of location-specific distress management packages.
• Scalable Framework:
  • Designed to be scaled for wider implementation across the country.
  • Aims to ensure efficient delivery of government support to the most affected regions.

Potential Benefits

• Helps prioritize action points for intervention by government agencies.
• Enhances preparedness and resilience against climate and market risks.
• Improves coordination between local and national authorities for distress mitigation.
• Contributes to psychosocial support measures for farmers along with financial and structural solutions.

The Farmers’ Distress Index (FDI) pilot study is a significant step toward creating a data-backed, proactive framework for identifying and addressing farm distress. It has the potential to become an essential tool for policy-making, resource allocation, and long-term distress management in Indian agriculture.

Source: PIB

Facts To Remember

1. PM-JAY to be implemented in Delhi from April 10: Minister

Delhi Health Minister Pankaj Kumar Singh said a Memorandum of Understanding will be signed with the Centre on April 10 to extend the Union government’s health insurance scheme Ayushman Bharat Pradhan Mantri Jan Arogya Yojana to the city residents. 

2. Sidbi Venture Cap Leads ₹16cr Round in Nourish You

Superfood and plant-based nutrition startup Nourish You has raised ₹16 crore in its Series A funding round, led by Sidbi Venture Capital.

3. Book on India’s historic Hockey World Cup triumph releases

India won its maiden Hockey World Cup in 1975 and a book about the historic triumph was released on Tuesday to commemorate the Golden Jubilee of the rare feat.

4. Djokovic-led player union launches legal blitz against tennis governing bodies

A tennis union co-founded by Novak Djokovic announced a series of legal actions aimed at the sport’s governing bodies, alleging “anti-competitive restraints and abusive practices”.

5. India, World Bank may sign $ 500 mn housing project

The World Bank is in talks with the Union government to provide nearly $500 million in funding for the Sustainable Housing Integrated Efficient Living and DisasterResilience initiative under the Pradhan Mantri Awas Yojana Gramin (PMAYG).

6. Alphabet to acquire cybersecurity firm Wiz for $ 32 billion

Alphabet said on Tuesday it would buy Wiz for about $32 billion in its biggest deal as the Google parent doubles down on cybersecurity to sharpen its edge in the cloudcomputing race against Amazon and Microsoft.

7. India aims for own space station by 2035, astronaut on moon by 2040

India has planned to have its space station namely Bharat Antariksh Station and if all plan goes well an Indian astronaut will be on the Moon by 2040.

8. Great One-Horned Rhinoceros population in West Bengal increases to 392

The Great One-horned Rhinoceros population in West Bengal has increased to 392 from 229. The Rhino census was conducted on the 5th and 6th of March, across Jaldapara National Park, Gorumara National Park, Chapramari Wildlife Sanctuary and parts of Jalpaiguri Reserve Forests, covering an area of 396 square kilometres.

9. India, Maldives to settle bilateral trade in local currencies

Settlement of Bilateral trade transactions between India and the Maldives will be allowed in local currencies of Indian Rupees and Maldivian Rufiyaa in addition to the existing Asian Clearing Union mechanism.

10. Khelo India Para Games 2025 launches anthem, mascot, logo

Khelo India Para Games 2025 has launched its anthem, mascot and logo. The launch was done in the presence of Minister for Youth Affairs and Sports Dr. Mansukh Mandaviya in New Delhi yesterday. 

11. SaaS Firm Icertis Steps Up AI Play with Agentic Platform

Icertis, a digital platform for contract management, is enhancing its AI strategy. The company has been developing an agentic AI platform for the past six months.

• Partnerships and Integration:
  • Collaborating with other companies and new-age AI startups.
  • Aims to integrate AI solutions directly into enterprise workflows.