Daily Current Affairs (DCA) 20 August, 2025

Daily Current Affairs Quiz
20 August, 2025

National Affairs

1. Governor’s Assent to Bills

Context:

The Supreme Court of India delivered a significant judgment reprimanding Tamil Nadu Governor R.N. Ravi for withholding assent or delaying action on 10 state bills re-passed by the state legislature. The Court held that the Governor’s act of reserving these bills for the President’s consideration was unconstitutional.

Key Constitutional Provisions:

• Article 200: Governor’s powers on assent – assent, withhold, or reserve for President.
• Article 201: President’s veto on reserved bills.
• Article 142: SC’s plenary power to ensure complete justice.

Supreme Court’s Observations:

• Governor’s reservation of 10 bills was illegal and arbitrary.
• Bills re-presented are deemed assented from date of re-presentation.
• Governor has no discretion under Article 200; must act on aid & advice of Council of Ministers.
• No “absolute veto” or “pocket veto” possible.
• Delays violate federalism and democracy.

Timelines Fixed by SC (First Time Ever):

Scenario	Maximum Time Allowed
Withhold assent or reserve for President (with CoM’s advice)	1 Month
Withhold assent without CoM’s advice (returning bill)	3 Months
Bill re-passed by Assembly (2nd time)	1 Month

Judicial Oversight:

• Non-compliance with timelines makes Governor’s inaction subject to Judicial Review.
• SC invoked Article 142 to declare the bills as deemed assented.

Reaffirmation of Democratic Principles:

• Governor cannot act as an obstructionist.
• Elected legislators are the true representatives of the people.
• Governor must act as a facilitator, not a political actor.
• Must act as a friend, philosopher, and guide.

Clarification on Reserve Power:

• Once re-passed, Governor cannot again reserve bill for President unless content is materially altered.
• Any delay beyond this violates constitutional oath.

2. Saltwater Crocodile

Context:

The West Bengal Forest Department has reported a notable increase in the population of saltwater crocodiles (Crocodylus porosus) in the Sundarban Biosphere Reserve (SBR), highlighting the success of ongoing conservation efforts.

About:

• The largest of 23 extant crocodilian species (includes true crocodiles, alligators, caimans).
• Also called Estuarine Crocodile, commonly found in brackish waters of estuaries.
• Capable of tolerating saltwater, can travel long distances in the open ocean using tidal currents.

Habitat (India & Global):

• In India: Sundarbans, Bhitarkanika National Park (Odisha), Andaman & Nicobar Islands.
• One of three crocodiles native to India, along with Mugger (Crocodylus palustris) and Gharial (Gavialis gangeticus).

Threats:

• Habitat loss, fragmentation, fishing activities, and illegal use of body parts in traditional medicine.

Protection Status:

• IUCN Red List: Least Concern
• CITES: Appendix I (except Australia, Indonesia & Papua New Guinea populations in Appendix II)
• Wildlife Protection Act, 1972 (India): Schedule I

TH

3. “One Nation, One Election” Bill

Context:

The Joint Parliamentary Committee (JPC), headed by BJP MP P.P. Chaudhary, is reviewing the Constitution (One Hundred and Twenty-Ninth Amendment) Bill, 2024, aimed at enabling simultaneous elections to the Lok Sabha and State Assemblies. Former Chief Justice of India Sanjiv Khanna raised concerns regarding potential constitutional and federal implications of the legislation.

One Nation, One Election:

One Nation, One Election is a proposal under consideration by the Government of India to synchronise all elections in the country either on a single day or within a specific time frame, with an objective of cutting election cost.

Key Legal Concerns:

• Clause 5 of Article 82A: Grants the Election Commission (EC) “unfettered discretion” to postpone Assembly elections, which may be struck down under Article 14 (equality before law) for arbitrariness.
• Indirect President’s Rule Risk: The clause may extend powers beyond Article 356, enabling the Union Government to indirectly assume control of States.
• Limited Impact on Governance: Justice Khanna observed that the Bill fails to fully address policy paralysis, as premature dissolutions would still invoke the Model Code of Conduct, curbing governance efficiency.

Legislative Provisions in the Bill:

• Insertion of a new Article 82A.
• Amendments to Articles 83 and 172 relating to Lok Sabha and State Assembly terms.

Next Steps:

• The Joint Parliamentary Committee (JPC) will meet economists to assess financial implications of holding simultaneous elections.
• The Government’s position: The Bill will reduce election expenditure significantly and improve efficiency.

TH

4. Govt Drafts Bill to Ban Online Real-Money Gaming in India

Context:

The Union Government has finalised a draft legislation to ban all forms of online real-money gaming (RMG) in India. The Promotion and Regulation of Online Gaming Bill, 2025 is scheduled to be introduced in the Lok Sabha.

What is Online Real-Money Gaming (RMG)?

• Online RMG refers to games where players stake real money with the potential to win monetary rewards.
• Includes skill-based games (like rummy, poker, fantasy sports) and chance-based games (betting, gambling).

Key Highlights of the Draft Bill:

• Definition of Online Money Gaming:
  • The Bill defines RMGs as “depositing money or other stakes in expectation of winning which entails monetary or other enrichment in return”.
  • Under this definition, most RMG platforms fall within the prohibited category.
• Total Ban:
  • Prohibits offering, aiding, abetting, inducing, or promoting any online money gaming service.

Rationale:

• Aimed at addressing rising gaming addiction among youth, which has led to mental health issues and financial distress.
• Seeks to safeguard consumers from exploitation while providing clarity on permissible gaming formats.

BS

5. Cloudburst Disasters in India

Context:

In 2025, cloudbursts, flash floods, and landslides have wreaked havoc across Northeast India, Uttarakhand, Himachal Pradesh, and most recently, Jammu and Kashmir. Over 60 lives were lost in J&K in less than a week, underscoring gaps in India’s climate preparedness and early-warning systems.

Background:

• Cloudbursts are intense rainfall events defined as precipitation exceeding 100 mm per hour over ~30 sq. km.
• Common in Himalayan regions due to interaction of monsoon winds, cold winds, and mountain topography.
• Effects are not localized – they cause landslides, flash floods, and downstream destruction.
• Global warming and changing monsoon patterns are increasing frequency and intensity.

Current Challenges:

1. Weak Drainage & Infrastructure:
   • Urban flooding in Delhi, Mumbai, and Bengaluru highlights poor planning and drainage systems.
2. Gaps in Climate Information:
   • Cloudbursts occur in small tracts often without rainfall gauges.
   • IMD lacks dense weather-monitoring networks needed for hyper-local forecasts.
3. Limited Preparedness:
   • Fragile ecosystems in the Himalayas are exposed to unregulated construction and tourism.

Policy Imperatives:

• Strengthen IMD’s Monitoring Capacity: Invest in dense weather instrument networks and computing power.
• Cloudburst-Prone Mapping: Use satellite imagery + historical data to identify vulnerable zones.
• Integrated Coordination: Collaboration among IMD, scientists, planners, and authorities at all levels.
• Climate-Resilient Urban Planning: Upgrade drainage systems and regulate construction in high-risk zones.
• Public Awareness & Communication: Ensure early warnings reach local communities effectively.

IE

Banking/Finance

1. RBI Study: Foreign Liabilities of Indian Mutual Funds Rise 19.9% in FY25

Context:

The Reserve Bank of India (RBI) released a study highlighting the growing foreign investor participation in Indian mutual fund schemes.

Key Highlights:

• Foreign Liabilities: Increased 19.9% YoY, reaching ₹2.6 lakh crore in FY25, up from ₹2.1 lakh crore in FY24.
• Top Investors:
  • UAE: Largest contributor, accounting for 1/5th of total MF investments.
  • U.S. & U.K.: Together contributed ~20% .
  • Australia & Canada: Fastest growth, with investments rising over 40% in FY25.

Implications:

• Positive Side:
  • Enhances capital inflows into domestic mutual funds.
  • Strengthens India’s integration with global financial markets.
• Concerns:
  • Increases exposure to global market volatility and sudden foreign outflows.
  • May affect financial stability during external shocks.
  • Raises regulatory challenges in monitoring cross-border flows.

Regulatory:

• Investments by Foreign Portfolio Investors (FPIs) and non-residents are regulated by SEBI and RBI.
• Governed under Foreign Exchange Management Act (FEMA), 1999.

TH

2. Urban Challenge Fund (UCF)

Context:

India’s rapid urbanisation has highlighted the urgent need for new financing models for city infrastructure. To address this, the Union Budget 2025 announced the creation of an Urban Challenge Fund (UCF) worth ₹1 lakh crore, marking a strategic departure from entitlement-based grants to a competitive, performance-linked funding framework.

What is the Urban Challenge Fund (UCF)?

The Urban Challenge Fund (UCF) is a ₹1 lakh crore financing mechanism announced in the Union Budget 2025–26 to support transformative and bankable urban development projects in India.

Key Features of UCF:

• Corpus: ₹1 lakh crore
• Initial Allocation (FY 2025–26): ₹10,000 crore
• Objective: To promote innovation, competitiveness, and sustainability in urban development.
• Focus Areas:
  1. Cities as Growth Hubs
  2. Creative Redevelopment of Cities
  3. Water and Sanitation

Funding Mechanism:

• UCF will finance up to 25% of project costs.
• At least 50% of funding must come from market sources like:
  • Municipal bonds
  • Bank loans
  • Public–Private Partnerships (PPPs)
• Remaining portion to be managed by local/state governments

BS

3. Nifty Bank Index

Context:

The Securities and Exchange Board of India (SEBI) has proposed a relaxation in index realignment norms to avoid sudden market disruptions, especially in the Nifty Bank index, which is heavily skewed towards HDFC Bank and ICICI Bank.

Background:

SEBI’s May 2025 Norms

• Weight of any single stock in non-benchmark indices capped at 20%.
• Combined weight of top three constituents capped at 45%.
• Indices must have at least 14 stocks (Nifty Bank currently has 12).

What is Nifty Bank Index?

• The NIFTY Bank index is a stock market index that tracks the performance of the Indian banking sector. 
• It comprises the most liquid and large-capitalized banking stocks from both public and private sector banks.

Key Features:

• Introduced by NSE: 2003
• Number of Constituents: 12 banks (free-float market capitalization weighted).
• Weightage Method: Free-float market capitalization.
• Types of Banks Included:
  • Public sector banks (e.g., SBI)
  • Private sector banks (e.g., HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank)

BS

4. SEBI Reconsiders Intraday Limits for Equity Derivatives

Context:

The Securities and Exchange Board of India (SEBI) is reviewing stricter position limits on index derivatives in the Indian markets. This comes in the backdrop of concerns over manipulative trading strategies impacting retail investors.

Proposed Move:

• Stricter intraday position limits for index derivatives.
• Aimed at reducing market volatility, manipulation risks, and protecting retail participation.

Intraday Limits for Equity Derivatives

Intraday limits in equity derivatives are regulatory caps or restrictions on the size of trading positions (open contracts) that an investor, trader, or institution can take within the same trading day in products like index futures and options.

These limits are set by SEBI (Securities and Exchange Board of India) and monitored by stock exchanges to:

• Prevent excessive speculation or over-leveraging.
• Reduce chances of market manipulation.
• Safeguard retail investors from high-risk derivative bets.
• Ensure systemic stability in India’s derivatives-heavy market.

ET

5. InvITs and REITs AUM Cross $94 Billion in FY25

Context:

According to a report by Knight Frank India, the combined Assets Under Management (AUM) of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) in India have shown remarkable growth over the last five years.

InvITs (Infrastructure Investment Trusts)

• InvITs are collective investment vehicles that pool money from investors to invest in infrastructure projects (roads, power transmission lines, renewable energy, pipelines, etc.).
• They provide a way for retail and institutional investors to invest in long-term infrastructure assets that generate stable cash flows.

Key Features:

• Regulated by SEBI (Infrastructure Investment Trusts) Regulations, 2014.
• Investors receive returns from tolls, tariffs, annuities, or usage fees collected from infrastructure assets.
• Units are listed and traded on stock exchanges.

REITs (Real Estate Investment Trusts)

• REITs are pooled investment vehicles that allow investors to invest in commercial real estate properties (office spaces, malls, hotels, warehouses, etc.).
• They help small investors access real estate markets without needing to directly buy property.

Key Features:

• Regulated by SEBI (Real Estate Investment Trusts) Regulations, 2014.
• Like InvITs, REITs must distribute at least 90% of net distributable cash flows.
• Units are listed on exchanges, providing liquidity and transparency.

ET

6. Registered Investment Advisers (RIAs) and Research Analysts

Context:

The Securities and Exchange Board of India (SEBI) has floated a consultation paper to ease compliance for Registered Investment Advisers (RIAs) and Research Analysts, addressing practical challenges in the existing framework. This comes after a decline in the number of RIAs from around 1,300 a few years ago to 967 at present.

Background:

• SEBI introduced fee-based advisory regulations in 2013.
• The RIA model struggled to expand due to high entry barriers and stringent compliance introduced in 2020.
• Reforms since January 2025 have gradually eased these norms.

Registered Investment Advisers (RIAs) and Research Analysts (RAs)

• To protect investors and ensure transparency, SEBI regulates investment advice and research services through two separate categories:
  • Registered Investment Advisers (RIAs)
  • Research Analysts (RAs)
• The aim is to curb conflict of interest, ensure professional standards, and promote investor protection in capital markets.

Registered Investment Advisers (RIAs)

• Individuals or entities registered with SEBI to provide investment advice to clients for a fee.
• Registration with SEBI is mandatory.
• Governed by SEBI (Investment Advisers) Regulations, 2013.

Research Analysts (RAs)

• Professionals/entities that prepare and publish research reports or stock recommendations on listed securities/companies.
• Registration with SEBI is mandatory.
• Governed by SEBI (Research Analysts) Regulations, 2014.

Mint

7. HDFC ERGO and PhonePe Launch Affordable Health Insurance for the “Missing Middle”

Context:

HDFC ERGO General Insurance has partnered with digital payments platform PhonePe to introduce an affordable health insurance plan aimed at India’s “missing middle” — young adults who are typically first-time purchasers of insurance coverage.

Key Highlights:

• Premiums start at ₹12 per day for ₹3 lakh coverage.
• The policy is accessible through the PhonePe app, leveraging its digital reach.
• Target audience: Individuals aged 18–30 years, many new to insurance.

Significance:

• Enhances health insurance penetration among younger, underserved demographics.
• Demonstrates the power of digital platforms in making insurance more accessible and cost-effective.
• Strategic collaboration between a leading insurer and a fintech platform expands financial inclusion in the insurance sector.

ET

8. TaxBuddy Launches AI-Powered Tax Filing System

Context:

TaxBuddy, a leading tax returns filing platform, has unveiled an AI-powered filing system aimed at making income tax filing faster, simpler, and more efficient for Indian taxpayers.

Key Features:

• Speed: Tax returns can now be filed in just three minutes.
• Instant Support: The system offers immediate query resolution, assisting users as they file.
• Empowerment: The initiative is about more than speed it’s designed to provide taxpayers with clarity and confidence during the process.

Significance:

• Marks a significant leap in fintech usability by incorporating AI directly into the user tax-filing workflow.
• Aligns with India’s broader push for digitization in financial services, emphasizing efficiency, accessibility, and user clarity.
• Reduces tax compliance and complexity.

TH

9. Punjab National Bank Becomes First PSU Bank to Migrate to ‘.bank.in’ Domain

Context:

Punjab National Bank (PNB) has successfully migrated its corporate website to www.pnb.bank.in, becoming the first Public Sector Bank in India to adopt the ‘.bank.in’ domain, as per RBI’s recent guidelines.

Key Highlights:

• New Domain: PNB’s corporate website is now www.pnb.bank.in, replacing the old www.pnb.co.in.
• Regulatory Framework: Move made in line with the RBI circular (April 22, 2025) on migration to the ‘.bank.in’ domain.
• Registrar: The Institute for Development and Research in Banking Technology (IDRBT) is the exclusive registrar for this domain.
• Objective:
  • Strengthen cyber security.
  • Prevent frauds and phishing attacks.
  • Enhance public trust in digital banking.
• Future Plans: RBI also proposes an exclusive “fin.in” domain for other non-bank financial entities.

BL

Agriculture

1. Urea and Its Role in Agriculture

Context:

Telangana is witnessing a shortage of urea, a key soil nutrient for crop growth, leading to long queues outside fertilizer shops. The situation has become a political flashpoint between the Central government, the Telangana government, and opposition parties.

What is Urea?

• Urea is a nitrogen-rich chemical fertilizer (46% nitrogen content – the highest among solid nitrogenous fertilizers).
• Chemical formula: CO(NH₂)₂.
• It is white, crystalline, and highly soluble in water.

Relevance in Agriculture

• Essential Nutrient: Provides nitrogen, a key element for plant growth, protein synthesis, and chlorophyll formation.
• Widely Used: India is the world’s second-largest consumer of urea (after China).
• Cost-effective: Due to government subsidies, urea is the cheapest source of nitrogen for farmers.
• Food Security: Crucial for sustaining India’s food grain production and meeting fertilizer needs of small and marginal farmers.

Applications in Agriculture

1. Soil Application: Urea granules are applied directly to soil for crops like wheat, rice, maize, sugarcane, and cotton.
2. Foliar Spray: A diluted urea solution is sprayed on leaves for quick nitrogen absorption.
3. Blending: Mixed with other fertilizers (DAP, MOP) to balance nutrients.
4. Coated Urea: Neem-coated urea reduces nitrogen losses due to volatilization and improves nutrient use efficiency.
5. Liquid Urea: Used in fertigation (applying fertilizers through irrigation).

Challenges with Urea Usage

• Overuse: Leads to soil nutrient imbalance, declining fertility, and lower crop yields.
• Environmental Issues: Nitrogen loss causes water pollution (nitrate leaching) and air pollution (nitrous oxide emissions – a greenhouse gas).
• Subsidy Burden: Heavy government subsidy (₹2 lakh crore+ annually) makes it prone to diversion and black marketing.

Government Measures

• Neem-coated Urea (2015): Made mandatory to reduce misuse and improve efficiency.
• Direct Benefit Transfer (DBT) in Fertilizer Subsidy.
• Promotion of Nano Urea by IFFCO as an eco-friendly, efficient alternative.

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Facts To Remember

1. Kerala High Court Adjourned Due to Palm Civet Infestation

Hearings before a Bench led by the Chief Justice of the Kerala High Court were adjourned to facilitate cleaning after palm civets dirtied the courtroom ceiling and air-conditioning ducts.

2. Rajya Sabha Clears Mines and Minerals (Development and Regulation) Amendment Bill, 2025

The Rajya Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, following its passage in the Lok Sabha on August 12, 2025. The Opposition staged a walkout, citing procedural concerns.

3. Shooters Rashmika, Kanak bag gold medals

Rashmika Sahgal and Kanak won the junior and youth gold medals in air pistol in the 16th Asian shooting championships in Shymkent (Kazakhstan).

4. Acquisition of another 97 Tejas, 6 AEW&C aircraft gets CCS nod

India on Tuesday gave the final nod for acquisition of another 97 indigenous Tejas fighter jets and six advanced airborne early-warning and control (AEW&C) aircraft or “eyes in the sky”, collectively worth around Rs 85,500 crore, which will be crucial to tackle the collusive and ‘fused’ challenge from ChinaPakistan in the years ahead.

5. Pvt Banks Told to Widen Role in Govt Schemes

The government has directed private banks to step up participation in flagship schemes and play a more active role in state level bankers’ committees that address issues concerning MSMEs and credit outreach programmes. Progress will be monitored. 

6. India-China Relations: Positive Signals Ahead of SCO Summit

Chinese Foreign Minister Wang Yi highlighted an “important opportunity” in India-China bilateral relations during the 24th meeting of Special Representatives on the India-China boundary question. The statement comes amid efforts to stabilise ties after setbacks, including the 2020 Galwan clashes.

7. UPI Growth Reduces Debit Card Transactions: SBI Report

The State Bank of India (SBI) Research report has highlighted how the rise of Unified Payments Interface (UPI) transactions is displacing debit card usage in India’s digital payments ecosystem.

8. India Post Launches IT 2.0

India Post today announced that it has entered a new era of digital transformation with the nationwide rollout of IT 2.0 — Advanced Postal Technology (APT).

9. Press Registrar General Launches ‘Press Sewa’ Portal to Simplify Newspaper, Periodical Registration

Press Registrar General of India (PRGI) Yogesh Baweja has said the Press Sewa portal has been introduced as a single-window solution to simplify the registration process for newspapers and periodicals.