Daily Current Affairs (DCA) 21 June, 2025

Daily Current Affairs Quiz
21 June, 2025

National Affairs

1. BSNL Soft Launches India’s First Indigenous SIM-less 5G FWA Service

Context:

Bharat Sanchar Nigam Limited (BSNL) has unveiled Quantum 5G Fixed Wireless Access (FWA) in a soft launch held at its Ameerpet Exchange in Hyderabad. This milestone marks India’s first indigenous, SIM-less 5G FWA service, designed to deliver fibre-like broadband speeds over wireless 5G networks without trenching or physical fibre installation.

Key Highlights of Quantum 5G FWA

Technological Firsts

• SIM-less Authentication: Powered by BSNL’s proprietary Direct-to-Device (D2D) platform, eliminating the need for a physical SIM card. Customer premises equipment (CPE) self-authenticates automatically.
• Fully Indigenous Stack: Developed entirely by Indian vendors under the Atmanirbhar Bharat initiative—comprising core, RAN (radio access network), and CPE.

TH

2. Direct-to-Device (D2D) Satellite Connectivity in India

Context:

Direct-to-Device (D2D) satellite connectivity is an emerging technology enabling direct communication between smartphones and satellites—bypassing traditional cell towers or terrestrial infrastructure. This innovation is critical for enhancing connectivity in remote, disaster-prone, or underserved regions.

What is D2D Satellite Connectivity?

D2D allows regular smartphones, wearables, and IoT devices to connect directly to satellites, using built-in antennas or minor software enhancements. This eliminates the need for satellite-specific hardware like bulky terminals or external receivers.

How It Works

• Utilizes Low-Earth Orbit (LEO) satellites for low latency and high data rates.
• Sends signals directly between satellite transponders and mobile devices.
• Operates in licensed spectrum bands, ensuring compatibility with existing telecom standards (e.g., 4G/5G).

Recent Developments in India

• Bharat Sanchar Nigam Limited (BSNL) has unveiled Quantum 5G Fixed Wireless Access (FWA) in a soft launch held at its Ameerpet Exchange in Hyderabad.
• SIM-less Authentication: Powered by BSNL’s proprietary Direct-to-Device (D2D) platform, eliminating the need for a physical SIM card. Customer premises equipment (CPE) self-authenticates automatically.

Key Features of D2D Services

• SIM-less Operation: Some models offer direct satellite authentication without a physical SIM.
• Global Coverage: Ensures internet and communication access in forests, deserts, seas, mountains, and disaster zones.
• Emergency Resilience: Ideal during natural calamities when terrestrial networks collapse.
• Minimal Infrastructure Needs: No towers, trenches, or fibre lines required.
• UPI Compatibility: Enables secure digital transactions in remote areas.

Non-Terrestrial Network (NTN)

NTNs are networks based on non-ground platforms—including:

• LEO/MEO/GEO Satellites (e.g., Starlink, OneWeb, Viasat)
• High-Altitude Platforms (drones, balloons)
• Maritime/Airborne Systems (ships, aircraft)
• Hybrid 4G/5G Networks combining terrestrial and satellite links

Applications of D2D Satellite Connectivity

• UPI Payments in Rural India
• Disaster Management and SOS Services
• Military and Border Communication
• Telemedicine in Remote Villages
• Real-time IoT for Smart Agriculture
• Logistics and Maritime Navigation

Banking/Finance

1. India Plans 100% FDI in Insurance with Eased Norms for Foreign Board Representation

Context:

The Union government is preparing to introduce amendments to the Insurance Act in the upcoming Monsoon Session, enabling 100% foreign direct investment (FDI) in the insurance sector—up from the current 74%. The reforms will also allow foreign insurers to appoint a majority of nonresident board members and key managerial personnel (KMPs).

Key Highlights:

• Policy Shift:
  • Foreign insurers may soon be permitted to have a majority of nonresident board members, including foreign nationals in top leadership roles (e.g., CEO, MD).
  • This aligns with long-standing demands from the U.S. government and insurance lobbies such as the USTR and the Coalition of Services Industry (CSI).
• Government Stance:
  • The government emphasized that IRDAI regulation will continue to ensure operational safeguards and compliance.

Background (FDI in Insurance)

Year	FDI Cap	Key Safeguards Introduced
2021	Raised from 49% to 74%	– 50% board must be resident Indian citizens – At least one resident Indian KMP (CEO/MD) required – Restrictions on dividend payouts and repatriation – Enhanced regulatory disclosures
2025 (proposed)	100%	Eased residency rules for board and KMPs; safeguards under review

BS

2. RBI Lowers Priority Sector Lending Norms for Small Finance Banks

Context:

The Reserve Bank of India (RBI) has revised its Priority Sector Lending (PSL) guidelines for Small Finance Banks (SFBs), reducing their mandatory lending target from 75% to 60% of Adjusted Net Bank Credit (ANBC) or credit equivalent of off-balance sheet exposures, whichever is higher. The new norms will be effective from FY26 (2025–26).

What is Priority Sector Lending (PSL)?

Priority Sector Lending refers to the mandatory lending by banks to sectors deemed important for the overall development of the economy, particularly in terms of inclusive growth. These sectors include:

• Agriculture
• Micro, Small and Medium Enterprises (MSMEs)
• Education
• Housing
• Renewable energy
• Export credit
• Social infrastructure
• Weaker sections

The RBI mandates specific PSL targets for different types of banks to ensure adequate credit flow to these sectors, which might otherwise be underserved by commercial lending.

Key Highlights of the New PSL Norm for SFBs:

• New Target:
  • 60% of ANBC or credit equivalent of off-balance sheet exposure, whichever is higher
• Earlier Target:
  • 75% under existing norms
• Effective Date:
  • Applicable from Financial Year 2025–26

Implications of the Revision

• Brings regulatory relief and greater flexibility to SFBs
• Allows for more diversified loan portfolios and better credit risk management
• Expected to improve capital efficiency while still supporting critical development sectors

Background

• When launched, SFBs were required to meet a higher PSL obligation (75%) compared to 40% for scheduled commercial banks, due to their focus on financial inclusion.
• This revision reflects RBI’s intent to balance inclusion mandates with operational sustainability of these newer banking entities.

BL

3. Parametric Insurance Gains Momentum in India Amid Rising Climate Risks

Context:

Amid increasing frequency of extreme weather events, parametric insurance—a product that pays out automatically based on predefined environmental thresholds—is gaining traction in India. While still nascent, insurers expect its growth to accelerate due to climate change’s growing impact on livelihoods and public health.

What is Parametric Insurance?

Parametric insurance provides automatic payouts when predefined parameters (such as temperature, rainfall, wind speed, or seismic magnitude) are met or exceeded.
Unlike traditional insurance, it does not require claim filing or damage assessment, ensuring quick and transparent disbursement.

Key Features:

• Insured Events: Heatwaves, excessive rainfall, earthquakes, tropical cyclones, and floods
• Trigger Parameters:
  • Heat Index (temperature threshold)
  • Rainfall (in mm/day or cumulative over days)
  • Wind speed, water depth, or Richter scale magnitude
• Policy Benefits:
  • Daily payout: ₹500–₹2,000 depending on severity and policy
  • Hospitalization allowance: Up to ₹5,000 for weather-related injuries or illness
  • Payouts triggered automatically using IMD (India Meteorological Department) data

BS

4. RBI Imposes ₹29.6 Lakh Penalty on Fino Payments Bank for Licensing Norm Breach

Context:

The Reserve Bank of India (RBI) has levied a monetary penalty of ₹29.6 lakh on Fino Payments Bank Ltd for non-compliance with its licensing guidelines applicable to payments banks.

Key Highlights:

• Regulatory Action:
  • Penalty imposed under the RBI’s powers to ensure adherence to licensing conditions
  • Arising from findings during the Statutory Inspection for Supervisory Evaluation (ISE 2024), based on the bank’s financials as on March 31, 2024
• Nature of Violation:
  • The bank exceeded the regulatory ceiling on end-of-day balances in customer accounts— a specific restriction applicable to payments banks, which are designed to hold smaller, transaction-focused balances
• Due Process:
  • RBI issued a show-cause notice to Fino Payments Bank
  • Considered the bank’s written and oral submissions before concluding that the violation was sustained, necessitating the imposition of the penalty

Regulatory Context

• Payments banks in India operate under limited banking licenses, with restrictions such as:
  • No lending activity
  • Maximum balance limit of ₹2 lakh per customer (subject to periodic revision)
  • Focus on financial inclusion, especially low-income households and migrant workers

TET

5. Yield Spread Between 3-Year and 10-Year G-Secs Widens Sharply Amid RBI’s Liquidity Easing

Context:

The yield spread between India’s 3-year and 10-year government bonds has widened to 48 basis points (bps) in FY26, up from 15 bps at the start of the fiscal and just 4 bps in January 2025. This reflects the RBI’s monetary easing, liquidity infusion, and a 100 bps CRR cut.

Key Highlights:

• Latest Bond Yields:
  • 3-year G-sec: 5.83%
  • 10-year G-sec (benchmark): 6.31%
  • Yield spread: 48 bps (up 12x in CY25)

About Government Bonds

Government Securities (G-Secs) are sovereign debt instruments issued by the RBI on behalf of the Government of India.

• Short-term G-Secs: <5 years maturity
• Long-term G-Secs: Typically 10 years or more
• Used to fund fiscal deficits and manage public debt

6. SEBI Proposes Framework for Responsible Use of AI/ML in Securities Market

Context:

The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing a structured framework to govern the responsible use of Artificial Intelligence (AI) and Machine Learning (ML) technologies in the Indian securities market. The proposals aim to safeguard investor interests, promote fairness, and ensure cybersecurity compliance amid rising adoption of AI/ML tools in trading, advisory, and surveillance.

Key Features of SEBI’s Five-Point Plan

1. Model Governance
   • Establish clear accountability for AI/ML model development, validation, and deployment.
   • Mandate independent oversight and documentation to track model decisions and updates.
2. Investor Protection & Disclosure
   • Ensure transparency in use of AI/ML tools in client-facing services like robo-advisory.
   • Require clear disclosures about AI-driven processes, including limitations and risks.
3. Testing Framework
   • Implement rigorous pre-deployment testing for accuracy, robustness, and reliability of AI/ML models.
   • Emphasize back-testing, scenario analysis, and monitoring of outcomes to avoid systemic risks.
4. Fairness & Bias
   • Propose checks to prevent algorithmic bias in customer profiling or market strategies.
   • Encourage adoption of ethical AI practices and inclusive datasets to maintain market integrity.
5. Data Privacy & Cybersecurity
   • Strengthen data protection norms in line with the Digital Personal Data Protection Act.
   • Impose cybersecurity standards to secure sensitive financial and personal information used by AI/ML systems.

Background and Next Steps

• The proposals stem from a SEBI-constituted working group of AI/ML experts and industry stakeholders.
• The consultation paper, titled “Guidelines for Responsible Usage of AI/ML in the Indian Securities Market”, is open for public and industry feedback.

TOI

7. Bajaj Allianz Launches India’s First State-wise Health Insurance Policy Tailored to Local Healthcare Needs

Context:

Bajaj Allianz General Insurance has introduced a first-of-its-kind ‘State-wise Health Insurance Policy’, offering region-specific health insurance solutions across 25 states and 5 Union Territories. This initiative marks a pioneering step in customising healthcare protection in alignment with the unique medical infrastructure, affordability, and disease profiles of each state in India.

Key Features of the State-wise Health Insurance Policy

Regionally Customised Coverage

• Each policy is tailored to reflect the distinct healthcare ecosystem of a specific state.
• Factors considered include: local hospital infrastructure, prevalent health concerns, treatment costs, and affordability levels.
• Policies carry locally inspired names (e.g., “AapKe Liye” in Hindi-speaking states).

Lifetime Renewability

• No age restrictions for policy renewal, ensuring long-term security for individuals and families.

About Bajaj Allianz General Insurance

Bajaj Allianz is a joint venture between Bajaj Finserv Ltd and Allianz SE, offering a broad portfolio of insurance solutions including health, motor, home, cybersecurity, and even niche segments like pet and film insurance. The company holds an [ICRA]AAA rating, ensuring high trust and timely claims servicing across over 1,500 cities and towns in India.

BS

8. CCI’s 2025 Cost Norms

Context:

The Competition Commission of India (CCI) has notified the Determination of Cost of Production Regulations, 2025, marking a major reform in how predatory pricing is assessed and regulated in India. These reforms aim to reinforce competition safeguards, especially in digital and capital-intensive markets, by introducing clear, consistent benchmarks based on Average Total Cost (ATC).

What is Predatory Pricing?

Definition:
Predatory pricing involves a dominant firm deliberately setting prices below cost to eliminate competitors, eventually gaining monopoly power.

Example:
NSE vs. MCX case—NSE deployed zero-pricing strategies in currency derivatives, leading to allegations of market exclusion and regulatory scrutiny.

Key Features of Predatory Pricing

• Prices below production costs
• Intent to eliminate competitors
• Short-term consumer benefits followed by long-term monopoly harms
• Reduced market choice and innovation

Types:

1. Direct Predation – Prices deliberately kept below cost.
2. Cross-subsidisation – Using profits from one business segment to undercut rivals in another.
3. Discriminatory Pricing – Targeting specific segments with lower prices to squeeze out competition.

Factors Encouraging Predatory Pricing

• Dominant Market Power with deep reserves
• Network Externalities in digital markets (e.g., data lock-ins)
• Weak Enforcement Record (only one predatory pricing case upheld pre-2025)
• Lack of Metric Clarity (older rules didn’t define “cost” benchmarks)
• Jurisdiction Gaps in cross-border e-commerce
• Short-Term Myopia in consumer response

Challenges in Regulation

• Proof of Intent: Predatory motive is difficult to establish under Section 4 of the Competition Act.
• Chilling Effect: Startups in AI, FinTech often avoid competitive segments due to fear of capital-intensive predation.
• Fragmented Market Surveillance: Absence of dynamic monitoring tools delays early detection.
• Judicial Delays: Legal battles often outlast the market cycle they intend to correct.

9. RBI Issues Master Circular to Enhance Credit Access for SC/ST Communities

Context:

The Reserve Bank of India (RBI) has issued a Master Circular on Credit Facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs) aimed at enhancing credit access, promoting financial inclusion, and ensuring effective implementation through structured monitoring and policy measures.

Key Highlights of the Master Circular

Streamlined Procedures and Special Reservations

• Simplified loan application and processing norms for SC/ST applicants.
• Banks are required to reserve specific portions of their credit for SC/ST borrowers.
• Enhanced supervisory frameworks for implementation.

Centrally Sponsored Schemes Supporting SC/ST Credit Access

DAY-NRLM (Deendayal Antyodaya Yojana – National Rural Livelihoods Mission)

• Launched: April 1, 2013 (replacing Swarnajayanti Gram Swarozgar Yojana).
• Mandate: At least 50% of beneficiaries should belong to SC/ST communities.

Differential Rate of Interest (DRI) Scheme

• Provides loans up to ₹15,000 at 4% interest per annum to the economically weaker sections.
• 40% of DRI advances must go to SC/ST borrowers.
• Landholding restrictions (1 acre irrigated / 2.5 acres unirrigated) do not apply to SC/ST applicants.
• Additional housing loan of ₹20,000 available under the scheme.

Credit Enhancement Guarantee Scheme for Scheduled Castes (CEGSSC)

• Launched: May 6, 2015 by Ministry of Social Justice & Empowerment.
• Nodal Agency: IFCI Ltd.
• Objective: Promote SC entrepreneurship via credit enhancement guarantees.
• Eligibility: SC individuals/firms with >51% SC ownership and 6+ months management control.
• Guarantee cover: ₹0.15 crore to ₹5 crore.
• Tenure: Up to 7 years or loan repayment term, whichever is earlier.

10. RBI Issues Master Direction on Electronic Trading Platforms (ETPs)

Context:

The Reserve Bank of India (RBI) released a new Master Direction on Electronic Trading Platforms (ETPs) on June 16, 2025, aimed at strengthening the regulatory framework for digital financial market infrastructure. This direction replaces the 2018 guidelines and takes immediate effect.

Definition of ETP

An Electronic Trading Platform (ETP) is defined as:

“Any electronic system (excluding recognised stock exchanges) where transactions in eligible financial instruments are contracted electronically.”

Eligible Instruments include:

• Securities (non-stock exchange)
• Money market instruments
• Foreign exchange instruments
• Derivatives

Scope and Applicability

Not applicable to:

• Scheduled Commercial Banks (including foreign bank branches in India)
• Standalone Primary Dealers
  —where the bank/dealer is the sole quote/price provider and a party to all trades.

Key Regulatory Provisions

Eligibility to Operate an ETP

Entities must:

• Be incorporated in India
• Have a minimum net worth of ₹5 crore
• Maintain robust technological infrastructure that ensures:
• High reliability
• Availability
• Scalability
• Strong cybersecurity

Approval Process

• Applications must be submitted via the PRAVAAH portal of RBI.
• RBI has discretion to grant, reject, or cancel authorisations based on compliance and public interest considerations.

Operational and Compliance Requirements

Data Retention:

• Maintain detailed transaction records for a minimum of 10 years.

Reporting Obligations:

• Submit quarterly reports on the platform’s operations to RBI by the 15th day of the month following the reporting quarter.

Monitoring and Enforcement:

• RBI retains enforcement powers including:
  • Inspections
  • Penalties
  • Licence revocation for non-compliance.

Agriculture

1. Nabcons Deploys AI to Monitor Water Bodies, Carbon Credits and Boosts Digital Agriculture

Context:

Nabcons, the consultancy arm of NABARD, is leveraging Artificial Intelligence (AI), GIS, and open-source technologies to promote sustainable agriculture, monitor water bodies, and help smallholder farmers monetise carbon credits. The firm has also exceeded its annual business and revenue targets in FY25.

Key Technological Interventions

AI for Water Body Monitoring – Tamil Nadu

• Nabcons has developed an AI-based Hawk-Eye system for the Tamil Nadu Single Window for Integrated Waterbody Protection.
• Functions:
  • Real-time health monitoring of water bodies around Chennai.
  • Detection of encroachments using satellite imagery.
  • Alerts authorities about violations and flood threats due to sudden rainfall.

Digital Dairy Receivables – Bihar

• A SaaS model is being developed for Bihar State Milk Cooperative Federation Ltd (COMFED).
• Aim: To digitise dairy receivables and operations of milk farmer unions and collection units.

Kathir Platform – Kerala

• Nabcons built Kathir (earlier Kerala Krishi Hub), a digital agriculture platform for the state.
• Features:
  • Integrates services for farmers, agri departments, vendors, and surveyors.
  • Supports data-driven decision-making across the agricultural value chain.

Carbon Credit Programme – Karnataka (Kolar District)

• A pilot initiative in partnership with Rabobank, targeting small and marginal agroforestry farmers.
• Utilises satellite imagery and ground-truthing to calculate Carbon Removal Units (CRUs).
• CRUs are sold to global corporations via Rabobank’s ACORN platform.
• No secondary market exists for these CRUs, ensuring direct farmer-to-buyer transactions.

BL

2. National Seminar on ‘Prosperity through Cooperatives’

Context:

On the backdrop of the UN declaring 2025 as the ‘International Year of Cooperatives’, Union Agriculture and Farmers Welfare Minister Shri Shivraj Singh Chouhan addressed a national-level seminar on the theme ‘Prosperity through Cooperatives’ in Mumbai. The seminar aimed to highlight the transformative role of cooperatives in India’s socio-economic framework, particularly in the agriculture sector.

Cooperatives

A cooperative (or co-op) is a business or organization owned and run jointly by its members, who share in its profits and benefits. It’s a form of self-governed group where individuals with common needs come together to meet their economic, social, and cultural needs through a collectively owned and democratically managed enterprise.

Key Highlights

• Importance of Cooperatives in Indian Ethos
  • Cooperatives are ingrained in India’s cultural and socio-economic traditions.
  • The model is ideal for inclusive growth and community development.
• Agriculture Sector: Backbone of the Economy
  • Agriculture contributes 18% to India’s GDP and supports 46% of the population.
  • Under PM Modi’s leadership, foodgrain production has risen by 44% in the last 11 years.

Strategic Roadmap for Agricultural Prosperity

Focus on:

• Higher yield per hectare
• Cost reduction
• Fair price for produce
• Crop-loss compensation
• Diversification
• Sustainable use of fertilizers and soil health

Major Government Initiatives and Announcements

Viksit Krishi Sankalp Abhiyan

• Connects scientific research to farming practice.
• 2,170 KVK scientist teams engaged with farmers to understand local issues.
• Issues identified: Poor quality seeds and pesticides.
• Government to enact stringent laws against manufacturers of substandard agri-inputs.

Market Intervention Scheme (MIS) for TOP Crops

• Tomato, Onion, Potato (TOP) farmers to receive transport cost support if selling outside their home state for better prices.
• Ensures price stability for both farmers and consumers.

Procurement Expansion

• Government to procure toor, masoor, and urad post farmer registration.
• Record procurement of pulses, oilseeds, and soybean already achieved.
• Plans for financial aid for storage facilities.

PIB

3. NABARD Launches ₹10,000 Crore Green Lending Facility for FY25

Context:

The National Bank for Agriculture and Rural Development (NABARD) has announced plans to disburse around ₹10,000 crore in FY25 under its newly introduced Green Lending Facility, aimed at supporting projects aligned with India’s Sustainable Development Goals (SDGs).

Green Lending Facility

A Green Lending Facility is a financial mechanism that provides loans specifically for projects with positive environmental impacts, promoting sustainable development and reducing carbon footprint. 

Key Highlights:

• Eligibility & Scope:
  • Borrowers: Central and State governments, government agencies, and private sector entities.
  • Minimum loan size: ₹100 crore.
  • Eligible sectors: Green infrastructure projects including ethanol production plants, electric vehicles (EVs), an other climate-aligned initiatives.
• Strategic Objective:
  • The initiative is part of NABARD’s broader mandate to foster environmentally sustainable rural and agri-infrastructure, complementing national climate commitments and energy transition goals.

TH

Facts To Remember

1. Shubhanshu Shukla’s Axiom-4 mission to the ISS put off again

NASA has put off launch of the Axiom-4 mission carrying Indian astronaut Group Captain Shubhanshu Shukla and three others to the International Space Station, saying it required additional time to evaluate operations on the orbital lab after the recent repairs in its Russian section.

2. Hockey players to get ₹25,000 per month pocket allowance

The Mission Olympic Cell (MOC) sanctioned a pocket allowance of ₹25,000 to 80 hockey players in the national camp, following a request by the National Federation.

3. S Ramann assumes charge as PFRDA chairperson

Sivasubramanian Ramann on Friday has assumed charge as the chairperson of the Pensionn Fund Regulatory and Development Authorityy (PFRDA).

4. Meta partners Oakley to launch AIpowered smart glasses

Meta said on Friday it has teamed up with Oakley to release AIpowered smart glasses, expanding its push into wearable tech after the success of RayBan Meta glasses.

5. SEBI Clears Tata Capital’s ₹17,200 Crore IPO; Includes Offer for Sale by Tata Sons

Tata Capital, a subsidiary of Tata Sons, has received approval from the Securities and Exchange Board of India (SEBI) for its ₹17,200 crore initial public offering (IPO), filed under the confidential draft red herring prospectus (DRHP) route. The IPO is expected to be launched by September 2025, as per RBI norms.

6. 11th International Day of Yoga (IDY 2025)

India is set to mark the 11th International Day of Yoga (IDY) on 21st June 2025, with a record-breaking national event in Visakhapatnam, led by Prime Minister Narendra Modi. With the theme “Yoga for One Earth, One Health,” this year’s IDY will underscore the interdependence of human and planetary well-being.

7. RBI relocates Andhra Pradesh regional office to Vijayawada

The Reserve Bank of India ( RBI) has announced the relocation of its Andhra Pradesh regional office to Vijayawada, Andhra Pradesh.