Daily Current Affairs Quiz
22 August, 2025
National Affairs
1. India’s Green Hydrogen Potential: FICCI–EY Joint Report
Context:
A joint report by FICCI and EY emphasizes that India could capture 10% of the global green hydrogen market by overcoming cost and infrastructure barriers, aligning with its net-zero ambitions.
What is Green Hydrogen?
- Produced through electrolysis of water using renewable energy.
- Zero-emission fuel with applications in steel, fertilisers, mobility, and shipping.
- Key to achieving decarbonisation and net-zero targets.
India’s Current Initiatives:
- National Green Hydrogen Mission (2023) with an outlay of ₹19,744 crore.
- Target: 5 MMT annual production by 2030, requiring 125 GW renewable capacity.
- Pilot Projects: ₹208 crore allocated; 37 hydrogen-powered vehicles deployed; 9 refuelling stations to be operational in 18–24 months.
- Cost Trends:
- Current: $4–4.5/kg
- Projected (2030): $3–3.75/kg
Key Challenges:
- High Costs: Nearly 2x grey hydrogen due to high capex and transmission losses.
- Fossil Fuel Subsidies: Incentivise carbon-intensive fuels, limiting hydrogen competitiveness.
- Infrastructure Gaps: Lack of pipelines, storage, and renewable integration.
- Demand Uncertainty: No assured industrial offtake discourages investment.
- Global Competition: EU, Japan, South Korea aggressively building import hubs.
Recommendations from Report:
- Subsidy Reforms: Redirect fossil fuel subsidies to hydrogen projects.
- Industry Use Mandate: Enforce mandatory green hydrogen use in key sectors.
- Carbon Pricing: Introduce carbon tax to improve competitiveness.
- Demand Aggregation: Ensure long-term contracts and price stability.
2. India’s Need for a National Space Law
Context:
India is set to celebrate its second National Space Day on 23 August. Despite major milestones like Chandrayaan-3 and the upcoming Gaganyaan mission, the country lacks a comprehensive national space legislation to regulate private participation and commercial use of outer space.
What is Space Law?
- A legal framework governing outer space activities, covering exploration, commercialisation, liability, and peaceful use.
- Balances international treaty commitments with domestic regulations for government and private entities.
Key Principles of Outer Space Treaty (OST), 1967
- Common Heritage: Outer space belongs to all humanity, no sovereign claims.
- Peaceful Use: Outer space must remain free of weapons and military conflict.
- State Responsibility: Nations are liable for activities of both state and private operators.
- Liability Clause: Countries bear international liability for damages caused by their space objects.
- International Cooperation: Promotes collaboration and exchange of scientific data.
Why India Needs a National Space Law
- Legal Clarity: Provides a stable, transparent framework for private players; reduces red tape.
- Safety & Compliance: Establishes licensing, accident investigations, and debris mitigation standards.
- Private Sector Growth & FDI: Clear rules on IP rights, insurance, and foreign investment will boost startups and attract global investors.
- Insurance & Liability Management: Prevents India from bearing full international liability; enables cost-effective risk coverage.
- Innovation & Talent Retention: Protects IP, fosters industry–academia collaboration, and curbs brain drain.
Global Practices
- U.S., Luxembourg, Japan have dedicated laws for space mining, launch services, and private participation, making them attractive to investors and innovators.
3. 18th International Earth Science Olympiad (IESO) 2025
Context:
Rayansh Gupta from Ludhiana won 1 Gold and 1 Silver medal at the 18th International Earth Science Olympiad (IESO 2025) held in Jining, China.
About IESO 2025:
- What is it?
- An annual global competition in Earth sciences for high-school students. Evaluates knowledge in geology, meteorology, oceanography, astronomy, and environmental sciences through individual and team events.
- Aims to promote scientific curiosity, research skills, and international collaboration.
- Host (2025): Jining, China.
India’s Performance:
- Total Medals: 7 medals + 1 Special Award.
- Individual Winners:
- Rayansh Gupta: 1 Gold, 1 Silver, and Special GYM Reporter Award.
- Bains Charuvrat: 2 Silver, 1 Bronze.
- Apam Nidhi Pandey: 1 Silver.
- Pryanshi Ghanghas: 1 Bronze.
- Supported by the Union Ministry of Earth Sciences (MoES).
4. India’s Draft Climate Finance Taxonomy
Context:
The Ministry of Finance released India’s draft Climate Finance Taxonomy for public consultation in May 2025.
About the Draft Taxonomy:
- What is it?
- A classification framework defining climate-aligned sectors, technologies, and practices.
- A “living document”, evolving with India’s priorities and global climate goals.
- Prepared by the Ministry of Finance, Department of Economic Affairs.
- Aim:
- Mobilize climate finance from public and private sources.
- Prevent greenwashing by distinguishing genuine green projects.
- Provide clarity and confidence for investors.
Key Features:
- Scope: Covers mitigation, adaptation, and transition activities.
- Review Mechanism:
- Annual reviews for short-term updates.
- Five-year reviews aligned with NDCs and global stocktake.
- Legal Coherence: Aligned with Energy Conservation Act, SEBI norms, Carbon Credit Trading Scheme, and global standards.
- Substantive Clarity: Precise definitions, updated data, accessible to experts & non-experts.
- Inclusivity: Simplified compliance for MSMEs, informal sectors, vulnerable communities.
Banking/Finance
1. SEBI’s Proposal to Regulate Grey Market & Pre-Listing Trading
Context:
The Securities and Exchange Board of India (SEBI) is exploring the creation of a regulated venue for pre-listing trading of company shares to bring transparency to the grey market and aid in fair price discovery. The proposal was discussed at a FICCI event attended by SEBI Chairperson Tuhin Kanta Pandey and Whole-Time Member Kamlesh Varshney.
Key Highlights:
- Regulated Venue for Pre-Listing Trading:
- Expected to enhance price discovery and ensure tax compliance, benefitting both investors and the government.
- Pre-listing trading refers to the buying and selling of a company’s shares before their official listing on a stock exchange, often through informal “grey markets” or a proposed regulated exchange platform.
- Regulation of Grey Market:
- A grey market is an unofficial marketplace for goods or securities traded through unregulated channels, bypassing authorized distributors or official stock exchanges.
- SEBI’s initiative seeks to formalise and monitor these trades through proper disclosure norms.
- Equity Derivatives Tenure:
- SEBI is considering extending the tenure of equity derivatives beyond current weekly and monthly expiries.
- Chairperson clarified that weekly expiries will not be discontinued despite market speculation.
- Action Against Market Misconduct:
- SEBI continues to take action against misleading influencers and unfair trading practices in capital markets.
2. RBI Discussion Paper on Flexible Inflation Targeting (FIT) Framework
Context:
The Reserve Bank of India (RBI) has released a discussion paper reviewing India’s Flexible Inflation Targeting (FIT) framework, questioning whether the current 4% inflation target continues to be optimal for balancing growth and price stability in a rapidly growing emerging economy.
Background
- FIT Framework introduced: 2016
- First review: 2021
- Current target: 4% CPI inflation with a tolerance band of ±2% (2%-6%).
Flexible Inflation Targeting (FIT)
Flexible Inflation Targeting (FIT) is a monetary policy framework adopted by central banks, including the Reserve Bank of India (RBI), to control inflation while supporting economic growth.
Key Features:
- Target Inflation:
- Current target: 4% headline CPI with a tolerance band of ±2%.
- Headline CPI includes food and energy prices, while core inflation excludes them.
- Objectives:
- Maintain price stability while supporting economic growth.
- Ensure monetary policy credibility and anchor inflation expectations.
- Discussion Points in RBI Paper:
- Should headline inflation or core inflation guide policy?
- Is the 4% target still optimal for India’s growing economy?
- Should the tolerance band be revised (narrowed, widened, or removed)?
- Should only a range be maintained instead of a fixed target?
- Rationale for Headline Inflation:
- Represents overall price conditions, including essential items like food and energy.
- Avoids de-anchoring inflation expectations and ensures inclusivity.
- Rationale for Core Inflation:
- Excludes volatile components such as food and fuel.
- Focuses on demand-driven price pressures, controllable by RBI via interest rates.
- Current Concerns:
- Food accounts for 46% of CPI basket, especially affecting low-income households.
- CPI base revision may reduce food weight and lower headline volatility.
Significance:
- FIT framework guides repo rate decisions, liquidity management, and inflation forecasts.
- Influences household consumption, investment, and credit growth.
- Ensures India’s monetary policy is responsive yet credible, balancing growth with price stability.
3. Dynamic Asset Allocation Active Fund of Funds (FoF)
Context:
SBI Mutual Fund (MF) has introduced a new Dynamic Asset Allocation Active Fund of Funds (FoF) to offer investors a diversified investment solution that adapts to changing market conditions.
Objective: Provide investors with a convenient one-fund solution by leveraging multiple actively managed equity and debt strategies.
Dynamic Asset Allocation Active Fund of Funds (FoF)
Dynamic Asset Allocation Active Fund of Funds (FoF) is a type of investment strategy in the mutual fund space that dynamically manages investments across different asset classes (equity, debt, gold, etc.) by investing primarily in other mutual funds rather than directly in securities.
Key Features:
- Fund of Funds (FoF) Structure:
- The FoF invests in a portfolio of other mutual funds instead of buying individual stocks, bonds, or commodities.
- Offers diversification across multiple fund managers and asset classes.
- Dynamic Asset Allocation:
- The fund actively changes its allocation between equity, debt, gold, or other asset classes based on market conditions, valuations, and risk-return expectations.
- Aims to capture upside in favorable markets and protect capital in downturns.
- Active Management:
- Unlike passive FoFs, a dynamic active FoF relies on expert fund managers who adjust asset allocation frequently.
- Uses market indicators, macroeconomic trends, and risk metrics to decide the proportion in each asset class.
- Risk & Return:
- Moderate to high risk, depending on equity exposure.
- Provides flexibility to manage volatility while aiming for better risk-adjusted returns compared to fixed-asset allocation funds.
- Ideal for Investors Who:
- Want a single product for diversified exposure.
- Prefer professional management to adjust allocations dynamically.
- Seek balanced growth with risk management across market cycles.
4. SEBI Looks to Promote Long-Tenure Derivatives
Context:
The Securities and Exchange Board of India (SEBI) is considering measures to extend the tenure of derivative (Futures & Options – F&O) contracts. This move comes amid growing concerns that weekly options trading has become excessively speculative, with data showing that nearly 90% of retail traders incur losses in this segment.
Key Highlights:
- Current Scenario: Retail investors prefer weekly options over longer-tenure (1, 2, and 3-month) contracts.
- SEBI’s Plan:
- Promote hedging and long-term investment strategies.
- Consult with stakeholders to review the maturity profile of derivatives.
- Potentially restrict or phase out weekly options contracts.
Long-Tenure Derivatives
Long-Tenure Derivatives are financial contracts in the derivatives market with a longer duration until expiry, as opposed to short-term or weekly contracts. These derivatives allow investors and institutions to hedge risks or make investments over a longer horizon, rather than engaging in rapid speculative trades.
A derivative is a financial contract whose value is derived from an underlying asset, such as a stock, commodity, bond, or currency.
Key Features:
- Extended Expiry Periods:
- Can expire monthly, quarterly, or even yearly, unlike weekly derivatives which expire in 7 days.
- Reduces the focus on short-term speculation and high-frequency trading.
- Purpose:
- Primarily used for hedging against price fluctuations in indices, commodities, or stocks.
- Supports long-term investment strategies and capital formation.
- Market Impact:
- Helps stabilize the derivatives market by reducing excessive retail speculation.
- Encourages investors to plan positions strategically rather than chasing quick profits.
- Regulatory Context:
- SEBI is exploring extending the maturity of index options and other derivatives to foster responsible trading and mitigate systemic risks.
- Weekly derivatives are not banned, but their dominance in trading volumes is being reconsidered.
- Benefits for Investors and Markets:
- Reduces volatility caused by short-term speculative trades.
- Enhances market trust and integrity.
- Aligns derivative usage with real economic hedging needs.
5. AU Small Finance Bank Launches UPI Services for NRE/NRO Accounts
Context:
AU Small Finance Bank (AU SFB) has enabled UPI services for NRE and NRO account holders using international mobile numbers, in line with NPCI’s directive. NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts are bank accounts for Non-Resident Indians (NRIs) to manage their finances in India.
Key Highlights:
- Eligible Users: NRIs holding NRE/NRO accounts with AU SFB.
- Supported Countries (12): Australia, Canada, France, Hong Kong, Malaysia, Oman, Qatar, Saudi Arabia, Singapore, UAE, UK, USA.
- Feature: Allows NRIs to link accounts to UPI without an Indian SIM card, enabling seamless digital payments in India.
- Regulatory Basis: Aligned with NPCI’s guidelines to expand UPI access to international mobile numbers.
About AU Small Finance Bank (AU SFB)
- Established: 2017 (converted from AU Financiers).
- Headquarters: Jaipur, Rajasthan.
- Focus: Retail banking, MSME lending, and digital financial services.
6. IndiGo & IDFC FIRST Bank Launch Dual-Network IndiGo IDFC FIRST Credit Card
Context:
IndiGo and IDFC FIRST Bank have jointly introduced the IndiGo IDFC FIRST Credit Card, a premium co-branded product offering both Mastercard and RuPay networks under one application. This innovation aims to democratise premium travel benefits, improve payment flexibility, and strengthen IndiGo’s BluChip loyalty program.
Key Features & Benefits:
- Dual-Network Card Pair: Two cards (Mastercard & RuPay) issued via a single application, ensuring global acceptance, UPI compatibility, and domestic reach.
- Accessibility & Inclusion: Offers a Fixed Deposit (FD)-backed variant, making it accessible even to customers with limited credit history.
- UPI Integration: RuPay variant can be linked to UPI IDs, enabling POS, e-commerce, and QR-based payments.
Facts To Remember
1. Dal Lake hosts first-ever Khelo India water games with eye on Olympics
The picturesque and iconic Dal Lake in Srinagar on Thursday hosted the first-ever races under rowing, kayaking, and canoeing categories under the Khelo IndiaWater Sports Festival, with an eye on improving the rank in water sports at the Olympics in the coming years.
2. SpaceX took oxygen leak in rocket ‘lightly’: ISRO chief
The Chairman of the Indian Space Research Organisation (ISRO), V. Narayanan, Sweden will host a NATO logistics headquarters in Enkoping, northwest of Stockholm, to troop movements in Northern Europe, the government said said the Falcon 9 rocket team that launched Indian astronaut Group Captain Shubhanshu Shukla to the International Space Station (ISS) took the pre-launch leak in the oxidiser line to one of the engines “lightly”.
3. Sweden to host NATO troops, logistics base
Sweden will host a NATO logistics headquarters in Enkoping, northwest of Stockholm, to troop movements in Northern Europe, the government said.
4. Tapsya showcases her potential to clinch gold
Tapsya Gahlawat is proud to have fulfilled her late grandfather’s wish as she gave a good account of her potential to clinch a gold medal in the World under-20 wrestling championships at Samokov, Bulgaria.
5. Maharashtra Tops Payouts Under PMFBY (2022-25)
Maharashtra has emerged as the top recipient of payouts under the Centre’s flagship crop insurance scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY), highlighting the continuing importance of agriculture in India’s most industrialized state.
6. World Orangutan Day August 19th
World Orangutan Day is a global event that takes place on the 19th of August every year. It’s an opportunity to show off just how spectacular these animals really are and to raise awareness of the dangers they face.
