Daily Current Affairs (DCA) 20 September, 2025

Daily Current Affairs Quiz
20 September, 2025

International Affairs

1. H-1B Visas

Source: TH

Context:

US President Donald Trump signed a proclamation imposing a $100,000 fee on each H-1B visa sponsorship, significantly raising the cost for US firms hiring foreign skilled workers.

Key Highlights:

• Policy Objective:
  • Prevent misuse of H-1B visas.
  • Ensure hiring of highly skilled professionals.
  • Protect American jobs and wages.
• Fee Impact: Increase from a few thousand dollars to $100,000 per applicant.

Implications for India

• Indian IT Companies: Major H-1B users (Infosys, Wipro, TCS) face higher compliance costs.
• Brain Drain: May reduce opportunities for mid-level Indian professionals.
• Business Shifts: Could encourage nearshoring to Canada/Mexico or strengthen domestic outsourcing.
• Tech Adoption: US companies may accelerate automation & AI to cut reliance on foreign talent.

About H-1B Visa

• Non-immigrant visa allowing US employers to hire foreign workers in specialty occupations.
• Eligibility: At least a Bachelor’s degree in relevant field.
• Validity: 3 years, extendable to 6 years.
• Quota: 65,000 visas + 20,000 for US Master’s holders.
• Employer-Sponsored: Requires petition by a US-based employer.
• Equal Pay Mandate: Employers must pay prevailing wages.

India & H-1B

• Beneficiary: India accounts for ~71% of H-1B visa holders.
• Major Users: Amazon, Microsoft, Google, Meta.
• Economic Impact: Supports India’s $150+ billion IT export sector and remittance inflows.
• Concerns: Long Green Card backlogs (>10 years).

National Affairs

1. India Re-elected to UPU Councils at 28th Congress

Source: News on Air

Context:

India has been re-elected to the Council of Administration and the Postal Operations Council (POC) of the Universal Postal Union (UPU) during the 28th UPU Congress held in Dubai.

About Universal Postal Union (UPU)

• Definition: Specialized UN agency and the primary forum for international postal cooperation.
• Members: 192 countries, ensuring a universal postal network.
• Founded: 1874 (Treaty of Bern)
• Headquarters: Berne, Switzerland
• Significance: Second oldest international organization after ITU.

Aim & Objectives

• Promote global postal cooperation and smooth international mail exchange.
• Develop modern, reliable, and affordable postal services.
• Facilitate growth in parcel, mail, and postal financial services.

Governance Structure

Body	Role
Congress	Supreme authority; meets every 4 years; sets strategy & policies
Council of Administration (CA)	Policy, regulatory, legal, and administrative issues between Congress sessions
Postal Operations Council (POC)	Technical & operational body (48 elected members); drives postal service modernization
International Bureau	Secretariat; provides logistical and technical support

Key Functions of UPU

• Rule-Setting: Establishes global postal regulations and standards.
• Advisory & Mediation: Resolves disputes, promotes international cooperation.
• Technical Assistance: Helps member countries modernize postal services.
• Capacity Building: Improves quality, efficiency, and financial sustainability.
• Global Integration: Supports interoperability, e-commerce, and cross-border logistics.

2. Indian Navy Inducts ‘Androth’ Anti-Submarine Warfare Ship

Context:

Indian Navy inducted ‘Androth’, the second Anti-Submarine Warfare Shallow Water Craft (ASW-SWC).

• Builder: Garden Reach Shipbuilders & Engineers (GRSE), Kolkata.
• Series: Part of an 8-ship series being inducted to enhance India’s coastal and maritime security.

About Androth ASW Ship

• Type: Indigenously built Anti-Submarine Warfare Shallow Water Craft (ASW-SWC).
• Role:
  • Coastal security and surveillance
  • Anti-submarine patrols in shallow waters, including Lakshadweep and strategic sea lanes
  • Strengthening maritime border protection

Key Features

Feature	Details
Length	~77 metres; among largest Indian naval warships with diesel engine–waterjet propulsion
Weapon Systems	Indigenous lightweight torpedoes, anti-submarine rockets
Indigenous Content	>80% of components made in India
Maneuverability	Optimized for littoral and shallow coastal waters
Surveillance	Equipped with advanced sonar and sensors for submarine detection

3. INSPIRE Awards 2025

Context:

National Innovation Rankings under INSPIRE Award-MANAK (Million Minds Augmenting National Aspiration and Knowledge) 2025.

• Highlight: Muzaffarpur, Bihar submitted 7,403 innovative student ideas, topping the national list.
• Organisers: Department of Science & Technology (DST), Ministry of Science & Technology (MoS&T), and National Innovation Foundation (NIF).

About INSPIRE Award-MANAK

• Scheme: Part of the Innovation in Science Pursuit for Inspired Research (INSPIRE) flagship initiative.
• Objective: Tap 10 lakh original science- and society-based ideas from school children.
• Eligibility: Students of Class VI to X (public & private schools).
• Recognition & Support:
  • Financial assistance of ₹10,000 for model development
  • Ideas first showcased at district level, then progress to state and national levels
  • Top 60 innovations displayed at Rashtrapati Bhavan, with awards conferred by the President of India

National Innovation Rankings 2025: Top Performers

Rank	District	State	Ideas Submitted
1	Muzaffarpur	Bihar	7,403
2	Bengaluru Urban	Karnataka	7,306
3	Bagalkot	Karnataka	6,826
6	Jaipur	Rajasthan	6,311
6	Vaishali	Bihar	6,182
6	Lucknow	UP	6,182
7	Hardoi	Uttarakhand	5,544
8	Allahabad	UP	5,380
9	Pratapgarh	UP	5,380
10	Unnao	UP	5,051

4. Japan’s R&I Upgrades India’s Sovereign Credit Rating to BBB+

Source: News on Air

Context:

India’s Sovereign Rating has been upgraded to BBB plus rating by a Japanese credit rating agency namely ‘Rating and Investment Information (R&I)’. BBB plus rating indicates stability.

Key Highlights:

• Economic Drivers:
  • Domestic consumption and policy reforms anchor growth despite global uncertainties.
  • India remains one of the world’s best-performing economies.
• Global Context:
  • Upgrade comes amid uncertain global economic environment.
  • US tariffs on India (up to 50%) noted as a risk, but limited impact due to low dependence on US exports.
• Policy Reforms Supporting Upgrade:
  • GST Rate Rationalisation: Moved from four slabs to two main rates.
  • Expected revenue loss is partially offset by higher private consumption stimulated by lower tax rates.
• India’s Rating Momentum (2025):
  • S&P Global: Upgraded to BBB from BBB– in August 2025.
  • Morningstar DBRS: Upgraded to BBB from BBB(low) in May 2025.
  • R&I: Third sovereign upgrade in the year, reflecting investor confidence in India’s macroeconomic stability.

Banking/Finance

1. SEBI and RBI Push for Corporate Bond Index Derivatives

Source: ET

Context:

The Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are in discussions to introduce corporate bond index derivatives, aiming to enhance trading activity in corporate debt securities.

Key Highlights:

SEBI cleared the way for Cash-Settled Corporate Bond Index Futures (CBIF) in January 2023 for corporate debt securities rated AA+ and above. Talks with RBI aim to reinvigorate this initiative.

Cash-Settled Corporate Bond Index Futures (CBIF)

• CBIF are derivative contracts based on a corporate bond index, allowing investors to take positions on the performance of a basket of high-quality corporate bonds.
• Cash-settled: No physical delivery of bonds occurs; settlements are made in cash based on the difference between contract price and the final index value at maturity.

Eligibility Criteria:

• SEBI allows CBIF contracts only on indices comprising corporate bonds rated AA+ and above.

Purpose & Significance:

• Provides investors with a tool to hedge interest rate risk and credit risk in corporate bonds.
• Helps improve liquidity and participation in the corporate bond market.
• Supports price discovery and strengthens India’s debt market infrastructure.

Regulatory Context:

• SEBI cleared CBIF in January 2023 for launch by stock exchanges.
• Discussions with RBI aim to revive and promote trading in these contracts to deepen India’s corporate debt market.

2. PFRDA in Talks with SEBI to Allow Pension Funds in Commodity Derivatives

Source: BS

Context:

The Pension Fund Regulatory and Development Authority (PFRDA) is in discussions with the Securities and Exchange Board of India (SEBI) to allow pension funds to participate in select commodity derivatives.

Key Highlights:

• Objective: Enable pension funds to access gold, silver, and potentially other metals for investment, aiming for long-term stable returns.
• Exclusions: Agricultural commodities may remain off-limits due to higher vulnerabilities.
• Regulatory Requirement: Implementation would require new PFRDA investment guidelines and board approval.
• Industry Signals:
  • SEBI has indicated interest in permitting banks, insurers, and pension funds to access non-agricultural commodity markets.
  • A working group may be formed to develop trading in metals and other non-agri commodities to help India shift from being a price taker to a price setter.
  • Insurance regulators may take a cautious approach before allowing insurers to participate.

Significance:

• Expands the investment avenues for pension funds and other long-term institutional investors.
• Supports the development of a domestic commodities market and promotes price discovery in non-agricultural commodities.
• Aligns with India’s broader objective to enhance financial market depth and diversification.

3. PFRDA Introduces Multiple Scheme Framework for NPS

Source: BS

Context:

Pension Fund Regulatory and Development Authority (PFRDA) announced a Multiple Scheme Framework (MSF) for non-government NPS subscribers.

Key Features of MSF

• Multiple Schemes per Subscriber:
  • Non-government subscribers can hold multiple schemes under a single PRAN across various CRAs (Central Record Keeping Agencies).
  • Earlier, subscribers were limited to one investment choice per tier and one CRA.
• Tailored Schemes:
  • Pension Funds (PFs) can design schemes for specific subscriber groups such as:
    • Digital economy workers
    • Self-employed professionals
    • Corporate employees with employer co-contributions
• Variants & Equity Allocation:
  • Each scheme must have at least two variants: moderate-risk and high-risk.
  • Equity allocation in high-risk schemes can now go up to 100% (previously 75%).

About PFRDA

• Establishment: Initially set up as a regulatory body for pension sector; made statutory under PFRDA Act, 2013 (notified on Feb 1, 2014).
• Jurisdiction: Department of Financial Services (DFS), Ministry of Finance (MoF).
• Chairman: Sivasubramanian Ramann
• Headquarters: New Delhi, Delhi
• Mandate: Promote, develop, and regulate the pension sector in India, including NPS.

4. RBI Authorizes DBS Bank India as Agency Bank

Context:

DBS Bank India became the first wholly owned subsidiary of a foreign bank in India to be authorized by the Reserve Bank of India (RBI) as an agency bank.

Purpose: Collect Goods and Services Tax (GST) payments on behalf of the Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance (MoF).

Key Features of Authorization

• Payment Channels:
  • DBS IDEAL (enterprise digital banking platform)
  • NEFT (National Electronic Funds Transfer)
  • RTGS (Real Time Gross Settlement)
  • OTC payments at bank branches
• DBS IDEAL Platform Capabilities:
  • Real-time transaction updates
  • Instant payment acknowledgements
  • Downloadable payment advice for recordkeeping
  • Dedicated client support for GST compliance queries

What is an Agency Bank?

• An Agency Bank is a commercial bank that is authorized by the Reserve Bank of India (RBI) to carry out certain banking functions on behalf of the Central and State Governments.
• These functions include collection and disbursement of government funds, tax collections, pension payments, and issuance of savings instruments.

Key Functions of Agency Banks

• Revenue Collection
  • Collects direct taxes (Income Tax, Corporate Tax).
  • Collects indirect taxes (GST, Customs Duty, Excise Duty).
• Payments
  • Makes pension payments to retired government employees.
  • Disburses subsidies, scholarships, and government payments.
• Government Transactions
  • Handles government receipts and payments through RBI’s accounts.
  • Issues and redeems government securities, savings bonds, etc.

Why Agency Banks Exist?

• RBI cannot directly handle millions of government-related financial transactions.
• So, it appoints selected scheduled commercial banks as its agents = Agency Banks.
• This improves reach (through bank branches) and efficiency in government-related payments/collections.

5. SEBI Reintroduces B-30 Incentives and Caps Mutual Fund Exit Load

Context:

The Securities and Exchange Board of India (SEBI) has revised the mutual fund (MF) distribution incentive structure to boost financial inclusion in smaller cities and among women investors. The regulator has also capped the maximum exit load on MF schemes at 3 per cent.

Key Highlights:

Reintroduction of B-30 Incentives

• What? SEBI will provide incentives to distributors for bringing new individual investors (new PAN) from beyond top-30 (B-30) cities.
• Structure:
  • Lumpsum investment: Incentive = 1% of the first application amount.
  • SIP investment: Incentive = 1% of total investment in the first year.
  • Cap: Maximum ₹2,000 per new investor.
• Purpose: Encourage mutual fund penetration in Tier-2, Tier-3, and smaller towns.

Incentives for Women Investors

• Gender Inclusion: Distributors will earn an additional commission for bringing new women investors (new PAN).
• Calculation: Same as B-30 incentive structure (up to ₹2,000 cap).
• Objective: Promote women’s participation in the mutual fund industry.

Background

• Suspension in 2023: B-30 incentives were suspended after SEBI found misuse — transaction splitting and portfolio churning to claim higher incentives.
• Revamped Framework: Now system-driven checks and tighter controls to prevent irregularities.

Reduction in Exit Load

• Earlier: MF schemes could charge up to 5% exit load (though most charged 1–2%).
• Now: Maximum cap reduced to 3%, aligning with industry practice.
• Rationale: Balances investor protection with scheme flexibility, especially for funds investing in less liquid securities.

Agriculture

1. BASAI Seeks Clarity on GST for Biostimulants

Source: BL

Context:

The Biological Agri Solutions Association of India (BASAI) has urged the government to clarify GST applicability on biostimulants, which are vital for sustainable agriculture and climate resilience.

What Are Biostimulants?

• Definition: Substances or microorganisms that enhance plant growth, nutrient uptake, and stress tolerance.
• Regulation: Brought under the Fertiliser (Control) Order (FCO), 1985 since 2021.
• Approved Products: As of August 2025, the government has officially notified and approved 146 biostimulant products under FCO.

Key Issues Highlighted by BASAI

• GST Confusion
  • At present, some authorities classify biostimulants under 5% GST, while others under 18% GST.
  • Notices have recently been issued to some companies, asking them to pay 18% GST.
  • BASAI argues they should be taxed at 5%, similar to fertilizers, to make them affordable for farmers.
• HSN Code Ambiguity
  • Lack of clarity on the correct Harmonized System of Nomenclature (HSN) code for biostimulants is causing compliance issues.
• Invalidation of Provisional Registrations
  • Government recently invalidated 8,000+ provisional registrations of biostimulants.
  • Only notified products remain valid; others must align with standards to re-enter the market.

Significance

• Promotes sustainable farming and reduces dependency on chemical fertilizers.
• Helps farmers combat climate change challenges (heat, drought, soil degradation).
• A GST clarification will boost industry growth and farmer adoption.

Facts To Remember

1. Zeel downs Shruti in the final

Top seed Zeel Desai recovered from being down 2-4 in the decider to beat first-time finalist Shruti Ahlawat 2-6, 6-1, 6-4 in the $15,000 ITF women’s tennis tournament at the Tennis Project, Baliawas.

2. Indian Railways Launches Scheduled Commodity-Specific Cargo Services in North

Indian Railways has enhanced in freight logistics by launching scheduled, commodity-specific, time-tabled cargo services, connecting key production and consumption centres across the northern region. 

3. Over 2.83 Lakh Health Camps Held Across India Under Swasth Nari Sashakt Parivar Abhiyaan

The Ministry of Health and Family Welfare has said over 2.83 lakh health camps have been organized across the country under the Swasth Nari Sashakt Parivar Abhiyaan till 20th of this month. Launched on September 17th.

4. Union minester Piyush Goyal Unveils Guidebook on HSN Code Mapping in New Delhi

Commerce and Industry Minister Piyush Goyal today unveiled the Guidebook on Mapping of Harmonised System of Nomenclature (HSN) Codes in New Delhi. 

5. PM Modi to Inaugurate Upgraded Mata Tripura Sundari Temple Complex on 22 Sep

In Tripura, preparations are complete for the visit of Prime Minister Narendra Modi, who is scheduled to inaugurate the newly developed infrastructure and beautification works at the Mata Tripura Sundari Temple complex under the PRASHAD scheme tomorrow.

6. BIRC 2025 to Be Held at Bharat Mandapam, New Delhi

Bharat International Rice Conference-BIRC 2025 will be held in New Delhi at Bharat Mandapam on 30th and 31st October. It is the world’s largest rice event with farmers, global buyers and stakeholders.