Daily Current Affairs (DCA) 23 May, 2025

Daily Current Affairs Quiz
23 May, 2025

National Affairs

1. Santhara in Jainism

Context:

A tragic incident involving the death of a three-year-old girl in Indore, allegedly due to Santhara administered by a Jain monk, has reignited legal and ethical debates around this ancient Jain ritual of voluntary fasting unto death.

What is Santhara (Sallekhana)?

• Definition: Santhara or Sallekhana is a sacred Jain vow of voluntary and gradual fasting unto death, believed to purify the soul and help attain moksha (liberation).
• Eligibility: Undertaken by both monks and laypersons during extreme life conditions—terminal illness, old age, or famine.
• Spiritual Process:
  • Gradual renunciation of food and water.
  • Undertaken under spiritual guidance.
  • Marked by detachment, forgiveness, and inner reflection.

Core Jain Doctrines Underpinning Santhara

1. Ahiṃsa (Non-violence): Fundamental to Jainism, ensuring no harm to any living being.
2. Satya (Truthfulness): Practiced with compassion; never to cause harm.
3. Asteya (Non-stealing): Absolute respect for others’ property and rights.
4. Brahmacharya (Chastity): Encourages celibacy or restraint.
5. Aparigraha (Non-possessiveness): Promotes detachment from material and emotional bonds.

The Triratna (Three Jewels) of Jainism

• Samyak Darshan (Right Faith): Belief in truth and the path to liberation.
• Samyak Jnana (Right Knowledge): Clarity and truth in understanding existence.
• Samyak Charitra (Right Conduct): Ethical living aligned with Jain teachings.

Legal Status of Santhara in India

• Rajasthan High Court (2015): Ruled Santhara as suicide under IPC Section 306.
• Supreme Court Stay (August 2015): Upheld Santhara as a constitutionally protected religious practice under Article 25 (freedom of religion).
• Current Legal Position: Recognised and protected, subject to voluntary and informed consent under religious supervision.

Significance in Jainism

• Spiritual Goal: Viewed as a dignified and non-violent passage into death, aiding in the shedding of karmic bonds.
• Historical Precedent: Practiced by Jain luminaries like Bhadrabahu and Chandragupta Maurya in Shravanabelagola.
• Scriptural Backing: Mentioned in Jain texts like Ratnakaranda Shravakachara and classical Tamil literature like Silappadikaram and Neelakesi.

Controversy and Ethical Concerns

• The recent Indore case raises questions about:
  • Consent and age: Can minors undertake such vows?
  • Oversight and responsibility: Role of religious mentors.
  • Balance of faith and child rights: Reconciling religious freedom with child protection laws.

2. Keezhadi Excavation: Ancient Tamil Urban Civilization

Context:

The Archaeological Survey of India (ASI) has requested noted archaeologist Amarnath Ramakrishna to revise and resubmit his report on the Keezhadi excavations. The directive highlights the need for improved scientific accuracy and refined period classification in the documentation.

What is Keezhadi?

• Location: Keezhadi is situated near Madurai, along the Vaigai river basin in Tamil Nadu.
• District: Excavation site lies in Pallichanthai Thidal, Sivaganga district.
• Discovered: Systematic excavations began in 2015, after Vaigai valley surveys (2013–14) across 293 sites.

Excavation Highlights

• Scale: Only 1 out of the estimated 100-acre site has been excavated so far.
• Findings:
  • Over 4,000 artefacts discovered.
  • AMS carbon dating of charcoal indicates urban habitation by 200 BCE.
  • Urban features: brick structures, ring wells, water storage tanks, beads, and graffiti-marked pottery.
  • Evidence of trade links with North India and the western world during the Sangam Age.
  • A uniquely decorated pot, significant for its artistic and cultural value, was also found.

Cultural and Historical Significance

• Urban Tamil Civilization:
  • Strong evidence of an organized, literate, and trade-oriented Tamil urban society well before the Common Era.
  • Challenges the traditionally North-centric narrative of Indian civilization.
• Literary Correlation:
  • Classical Tamil texts such as Tiruvilayadal Puranam mention settlements like Manalur and Konthagai, now linked to Keezhadi findings.
• Craftsmanship and Literacy:
  • Pottery with Tamil-Brahmi inscriptions points to widespread literacy.
  • Artefacts reflect advanced metallurgy, bead-making, and ceramic craftsmanship.

Why the Report Was Recalled

• ASI cited the need for:
  • Greater scientific rigor in dating and contextual analysis.
  • Better clarity in chronological sequencing.
  • Accuracy in classifying cultural periods and artefact functions.

Science & Tech

1. Indian Scientists Discover Jarosite as a Natural Luminescent Clock for Mars and Earth

Context:

A team of Indian researchers has revealed that Jarosite, a mineral prevalent on Mars, can function as a natural luminescent clock. This unique property allows Jarosite to record geological events occurring over the past 25,000 years, aiding planetary dating and environmental studies.

About Jarosite

Chemical Composition & Structure

• Formula: KFe₃(SO₄)₂(OH)₆ (Potassium ferric sulfate hydroxide)
• Crystal system: Trigonal, brittle with basal cleavage
• Color: Dark yellow to yellow-brown
• Hardness: 2.5–3.5 on Mohs scale
• Lustre: Vitreous to dull, translucent to opaque
• Thermal Stability: Luminescence retained up to 450°C, making it suitable for Mars rover instrumentation

Natural Occurrence

• On Earth: Found in arid environments, acid mine drainage areas, Antarctica ice cores, and clay-rich acidic soils like Kachchh (India) and Sierra Peña Blanca (Mexico).
• On Mars: Detected by NASA’s Spirit, Opportunity, and Curiosity rovers, indicating oxidizing and acidic surface conditions.

Applications

• Planetary Dating Tool: Jarosite acts as a natural radiation clock to date geological events on Mars within a 25,000-year timeframe.
• Mars Missions: Its stability and luminescent properties make Jarosite ideal for rover-based age detection using heaters and LEDs without damaging samples.
• Environmental Indicator: Used to monitor oxidation stages in mining regions and glacial environments on Earth and Mars.
• Geological Marker: Helpful in detecting ice age layers and reconstructing environmental history from deep Earth core samples.

Banking/Finance

1. Volatility in Financial Markets

Context:

The Reserve Bank of India (RBI) sold $34.5 billion on a net basis in FY2024–25, the highest level of dollar sales since the global financial crisis of 2008–09. This intervention was aimed at curbing volatility in the foreign exchange market amid sharp depreciation of the Indian Rupee.

Forex Market Intervention

• The RBI also reduced its forward book to $84.34 billion as of March 31, 2025, from $88.75 billion in February 2025.
• This is the first cut in the forward book in seven months, indicating a shift in RBI’s forex strategy.

Volatility in Financial Markets

Definition

• Volatility refers to the degree of variation in the price of a financial asset over time.
• It is typically measured using standard deviation or variance of returns.
• Higher volatility = higher risk, due to wider potential price swings.

Key Characteristics

• Indicates uncertainty or risk in asset price movements.
• Can occur in both upward and downward directions.
• Used to assess market sentiment and price options contracts.

How to Measure Volatility

1. Standard Deviation (σ): Shows how much return deviates from the mean.
2. Variance: Average of squared deviations from the mean.
3. Annualized Volatility Formula:

Statistical Example (Monthly Data):

• Monthly prices: ₹1 to ₹10
• Mean: ₹5.5
• Variance: ₹8.25
• Standard Deviation: ₹2.87
• Interpretation: ~68% of values lie within 1 SD from the mean in a normal distribution

Types of Volatility

1. Historical Volatility (HV):
   • Measures past price fluctuations
   • Calculated from closing prices over a fixed time period
   • Indicates how volatile an asset has been
2. Implied Volatility (IV):
   • Forward-looking
   • Derived from options prices
   • Reflects market expectations of future volatility
   • Not based on historical data

Volatility in Options Pricing

• Higher volatility = higher options premiums
• Incorporated in models like Black-Scholes and Binomial Tree
• Critical in estimating probability of an option ending in-the-money

Quick Facts for Exams

• Volatility = Risk indicator
• HV is past-looking; IV is future-looking
• Widely used in derivatives pricing
• Volatility ≠ variance, but is derived from it

Reason for Market Volatility

• After nearly two years of currency stability, the Indian Rupee depreciated sharply in H2FY25.
• Key trigger: A surge in the US Dollar Index to 108, driven by:
  • Rising inflation expectations
  • Global uncertainty following US President Donald Trump’s return to office

2. NPCI Steps up UPI Vigil to Prevent Future Disruptions in Core Network

Context:

The National Payments Corporation of India (NPCI) has issued a circular to strengthen its supervisory framework over Unified Payments Interface (UPI) operations. This follows a root cause analysis of a recent outage that revealed excessive API calls by banks as the cause of core network stress.

Key Measures Introduced

• NPCI has outlined operational guidelines for 10 critical APIs linked to UPI.
• These APIs handle operations such as:
  • Check transaction status
  • Balance enquiry
  • Autopay mandate execution
  • Account detail verification

Compliance Requirements

• Payment Service Providers (PSPs) and acquiring banks must:
  • Monitor and moderate their API usage.
  • Adhere to API rate limits to prevent overload.
  • Implement guidelines by July 31, 2025.
• System audits must be conducted by a CERT-In empanelled auditor and submitted by August 31, 2025.
• These audits will now be mandatory annually.

Rate Limiting and Timing Rules

• NPCI may impose rate limiters on API call frequency.
• It has mandated low-traffic execution windows for certain APIs like mandate execution.
• Defined peak hours:
  • 10:00 AM – 1:00 PM
  • 5:30 PM – 9:30 PM
• API timing update:
  • “Check transaction status” API can now be triggered after 45–60 seconds, compared to 90 seconds previously.

Enforcement and Penalties

• Non-compliance may lead to:
  • API restrictions
  • Penalties
  • Suspension of new customer onboarding
  • Any other measure deemed appropriate by NPCI

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3. RBI Proposes Special Share Certificates for UCBs to Boost Capital Base

Context:

To enhance capital mobilisation options for UCBs, especially Tier-4 UCBs, through innovative instruments like Special Share Certificates (SSCs) and Perpetual Non-Cumulative Preference Shares (PNCPS).

Special Share Certificates (SSCs)

A share certificate is a written document signed on behalf of a corporation that serves as legal proof of ownership of the indicated number of shares. It is also referred to as a stock certificate.

• Nature:
  • Non-voting shares (no membership rights).
  • Issued to members/others within UCB’s area of operation.
  • To be issued at book value, not face value.
• Eligibility:
  • Only Tier-4 UCBs (deposits > ₹10,000 crore) can issue SSCs initially.
• Dividend:
  • Same rate as member shares.
  • Non-cumulative in nature, as per RBI guidelines.
• Redemption:
  • Permitted after 3 years from issuance.
• Trading:
  • Tier-4 UCBs can facilitate SSC trading on their websites.
  • Open to members and persons residing within the area of operation.
• Restrictions:
  • UCBs cannot invest in SSCs of other UCBs.
  • No loans against SSCs (own or other UCBs).

Perpetual Non-Cumulative Preference Shares (PNCPS)

Perpetual Non-Cumulative Preference Shares (PNCPS) are a type of preference share issued by banks with no fixed maturity date and no accumulation of unpaid dividends. They offer a fixed dividend rate and prioritize dividend payments to equity shareholders. PNCPS are often used by banks to bolster their capital base, particularly to meet Basel III capital requirements

• Loan Facility:
  • UCBs may allow loans up to 20x the amount subscribed in PNCPS.
  • Maximum loan limit fixed at ₹5 lakh per subscriber.
• Borrower Cap:
  • PNCPS subscribers and nominal members availing credit must not exceed 20% of total borrowing members.

Rationale Behind the Proposal

• Challenges with Current Capital Options:
  • Issuing member shares is unattractive due to:
    • High dividend payouts.
    • No issuance at premium despite high book value.
• Legal & Global Context:
  • Dual-class share structures are globally common.
  • Enabled by Banking Regulation (Amendment) Act, 2020.
• Expected Impact:
  • Enhances investor interest via tradability and flexibility.
  • Provides cheaper, more accessible capital options for UCBs.
  • Addresses the problem of long tenures (e.g., 10 years) with more flexible instruments.

4. RBI Co-lending Guidelines Aim to Lower Digital Lending Rates

Context:

The Reserve Bank of India (RBI) has held consultations with top fintech bodies to review feedback on draft colending guidelines.

• Meeting participants included representatives from:
  • Fintech Association for Consumer Empowerment (FACE)
  • Unified Fintech Forum (UFF, formerly DLAI)
  • Fintech Convergence Council (FCC)

Key Proposals in Draft Colending Guidelines

• Blended Interest Rate Mechanism:
  • Final lending rate = Weighted average of interest rates by partner lenders.
  • Aimed at lowering borrowing costs for end-users.
• Expanded Scope:
  • Includes all regulated entities.
  • Extended beyond priority sector lending.

Co-lending Models

• CLM 1: Joint origination and disbursement of loans by banks and NBFCs.
• CLM 2: NBFCs disburse loans initially, and banks reimburse up to 80% of the loan amount later.

Call for NBFCs on UPI Credit Line

• Fintechs urged RBI to allow NBFCs to offer credit via UPI, like small finance banks (SFBs).
• RBI cautious, may allow only top-tier NBFCs due to regulatory concerns on capital and compliance.

Compliance Improvements

• Fintechs highlighted enhanced compliance practices in response to past regulatory scrutiny.
• Reference to RBI’s October 2024 action against four NBFCs for charging excessive interest.

Implication

• Final rules may help regulate digital lending rates, promote fair lending practices, and ensure consumer protection.

BS

5. RBI’s Payments Regulatory Board (PRB)

Context:

The RBI has notified the structure and functioning of the Payments Regulatory Board (PRB) under the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS). The PRB is housed within the RBI and will oversee the payments ecosystem with powers of delegation and standard-setting.

Background

• A 2017 inter-ministerial committee had proposed an independent PRB outside RBI control.
• RBI opposed this, citing the interconnectedness of monetary policy and payment systems.
• In a 2018 dissent note, RBI asserted:
  • PRB must be chaired by RBI Governor
  • Government may nominate 3 members
  • Governor should hold a casting vote

Board Composition

• Chairperson: RBI Governor
• Other Members:
  • One Deputy Governor
  • Up to 3 directors from RBI Central Board (nominated by Governor)
  • 2 Executive Directors (nominated by Governor)
  • RBI’s Legal Adviser

Functioning and Governance

• Meetings: At least twice a year
• Voting:
  • Each member gets one vote
  • Majority wins on items of business
  • Chairperson (or Deputy Governor in absence) holds casting vote in case of tie
• Delegation of Powers:
  • The PRB can delegate its powers to:
    • Chairperson or a Board member
    • Sub-committees or RBI officers
• Members must not:
  • Be above 70 years
  • Be MPs or MLAs
  • Have unresolved conflicts of interest with payment systems

6. NSE Proposes Tuesday for Weekly Index Derivatives Expiry amid SEBI’s New Guidelines

Context:

The National Stock Exchange (NSE) has proposed shifting the weekly expiry of its index derivative contracts to Tuesday, moving away from the current Thursday expiry. This move comes in light of SEBI’s proposal to limit expiry days to only two weekdays: Tuesdays and Thursdays, aiming to reduce expiry-day volatility.

Key Developments

• SEBI’s New Expiry Framework
  • SEBI’s Secondary Market Advisory Committee recently discussed limiting weekly expiries to only two days to curb volatility.
  • SEBI Chairman Tuhin Kanta Pandey confirmed a final circular will be issued soon.
• NSE’s Expiry Strategy Shift
  • NSE had earlier dropped its plan to shift expiry to Monday.
  • After internal analysis, NSE now sees Tuesday as the most suitable option for expiry.
  • BSE’s index options already expire on Tuesdays, making NSE’s choice aligned with the current landscape.
• Market Implications
  • This move follows regulatory changes that limit one benchmark expiry per exchange per week, affecting NSE’s derivatives volume.
  • NSE’s Q4FY25 revenue from transaction charges fell 15% quarter-on-quarter, reflecting a dip in cash and derivatives volumes.
  • Despite this, NSE management stated they don’t foresee further loss of market share to BSE in the derivatives segment.
• SEBI’s Ongoing Work on NSE IPO
  • SEBI is actively resolving pending issues around the long-delayed NSE IPO.
  • While no definitive timeline was given, SEBI chair said the IPO clearance may happen soon.

Strategic Implications

• Expiry Consolidation:
  • Limiting weekly expiries could streamline market operations, curb excessive volatility, and balance liquidity between exchanges.
• Market Share Battle:
  • The expiry reshuffle follows intensified competition between NSE and BSE, with the latter gaining share post-regulation.
• IPO Prospects:
  • Resolving IPO hurdles could unlock significant valuation for NSE and widen retail and institutional participation.

BS

7. RBI Reviewing Bank Licensing Framework & Insurance Distribution Role: Sanjay Malhotra

Context:

In his first public remarks since taking over in December 2024, RBI Governor Sanjay Malhotra outlined key regulatory priorities, including a review of the bank licensing framework, stricter oversight on insurance product distribution, and measures to enhance consumer protection.

Key Highlights

Bank Licensing and Governance

• RBI is examining the licensing framework to align with the evolving economic landscape.
• Focus on ensuring an adequate number of strong and trustworthy banking institutions.
• A broader review is also underway of foreign shareholding norms in Indian banks.

Mis-selling of Insurance

• The central bank is reviewing the role of banks as distributors of insurance products.
• Citing rising complaints of mis-selling, especially of investment-linked products.
• Malhotra emphasized that such complaints are valid under the banking ombudsman scheme.
• RBI may introduce additional measures if the problem persists.

Consumer Protection & KYC Simplification

• High priority placed on fair practices and customer service.
• RBI will soon release simplified re-KYC guidelines.
• Proposal to enable shared KYC data access across financial institutions to improve compliance.

Liquidity and Monetary PolicyRBI to Discuss Liquidity Management with Bankers

• RBI has infused ₹9 lakh crore of durable liquidity into the banking system.
• Aimed at supporting credit growth and ensuring effective monetary policy transmission.
• While adopting an accommodative stance, the pace of rate cuts will be decided by the MPC.

Fiscal Outlook and Economic Growth

• Malhotra dismissed concerns over fiscal slippage, citing the government’s credible fiscal management track record.
• India remains well-positioned as the world’s fastest-growing major economy, driven by:
  • Strong fundamentals
  • Political stability
  • Sound macroeconomic policies
  • Demographic advantages

TOI

8. Offshore Derivative Instruments (ODIs)

Context:

The Securities and Exchange Board of India (SEBI) has extended the implementation deadline for its revised Offshore Derivative Instruments (ODIs) framework from May 17, 2025, to November 17, 2025. The move comes after market participants requested additional time to meet the new compliance requirements.

Offshore Derivative Instruments (ODIs)

Offshore Derivative Instruments (ODIs), including Participatory Notes (P-notes), are financial instruments issued by SEBI-registered Foreign Institutional Investors (FIIs) or Foreign Portfolio Investors (FPIs) to overseas investors who wish to invest in Indian securities without direct registration with SEBI.

Key Features

• Purpose: Facilitate indirect access to Indian equities and derivatives for foreign investors.
• Issued by: SEBI-registered FPIs/FIIs to overseas clients.
• Underlying Assets: Indian equity shares, equity derivatives (e.g., Nifty futures).
• Investor Motivation: Confidentiality, regulatory ease, and quicker market access.

Types of ODIs

• Participatory Notes (P-notes)
• Equity-Linked Notes
• Capped Return Notes
• Participating Return Notes

Regulatory Concerns and SEBI Actions

• Concerns: Lack of transparency, potential for round-tripping, and money laundering.
• Regulatory Amendments:
  • FPIs prohibited from issuing ODIs with derivative exposure (Dec 2024).
  • ODI issuers must disclose the ultimate beneficial ownership of investors.
  • No hedging allowed for ODIs using Indian market derivatives.
  • Enhanced disclosure norms for FPIs with segregated portfolios to prevent regulatory arbitrage.

Key Features of the Revised ODI Framework

1. Enhanced Disclosure Norms:
   • ODI subscribers must provide detailed disclosures if:
     • Over 50% of their equity ODI holdings are in one Indian corporate group, or
     • Total equity ODI exposure in India exceeds ₹25,000 crore.
   • Objective: Align ODI regulations with Foreign Portfolio Investors (FPI) norms and reduce regulatory arbitrage.
2. Restrictions on Derivative Usage:
   • ODIs cannot be based on derivative instruments.
   • Derivatives cannot be used for hedging ODI positions.
   • All ODI positions must be fully backed one-to-one by non-derivative securities.
3. Separate Registration for ODI Issuers:
   • FPIs issuing ODIs must obtain a separate registration with an “ODI” suffix under the same PAN.
   • No new registration needed if ODIs are solely backed by government securities.
   • This addition won’t be treated as a name change for existing FPIs.

Source
The Economic Times

Agriculture

1. Spices Board Launches SPICED Scheme 2025–26

Context:

The Spices Board of India has introduced the SPICED scheme — “Sustainability in Spice Sector through Progressive, Innovative and Collaborative Interventions for Export Development” — for the financial year 2025–26.
The scheme provides financial assistance for a wide range of components to enhance sustainability, productivity, quality, and global competitiveness in the Indian spices sector.

Key Objectives

• Boost productivity of small and large cardamom.
• Modernize post-harvest practices for higher quality output.
• Promote organic, GI-tagged, and value-added spices.
• Ensure compliance with international food safety and phytosanitary standards.
• Strengthen stakeholder capacity across the value chain.
• Support export promotion, especially for first-time exporters and MSMEs.

Eligibility & Application Timeline

Category	Application Start	Last Date
Exporters (Export-related)	May 26, 2025	June 30, 2025
Farmers & FPOs (Dev. components)	May 26, 2025	September 30, 2025

Core Components of the SPICED Scheme

For Farmers and FPOs

• Replanting & rejuvenation of cardamom plantations
• Water resource development and micro-irrigation systems
• Promotion of organic farming and Good Agricultural Practices (GAP)
• Installation of modern post-harvest equipment, such as:
  • Spice polishers
  • Turmeric boilers
  • Mint distillation units
  • Threshing and grading machines
  • Dryers, slicers, and dehullers

For Exporters

• Support to participate in international trade fairs, buyer-seller meets, and market linkage programs
• Special focus on first-time exporters and MSMEs
• Assistance in showcasing Indian spices in global markets

Significance of the SPICED Scheme

• Reinforces India’s leadership in sustainable spice production
• Empowers smallholders and rural spice farmers with infrastructure and market access
• Drives value addition and innovation to meet evolving global demand
• Aligns with Make in India, export growth, and climate-smart agriculture objectives

BL

Facts To Remember

1. Ram Mohan appointed as new MPEDA director

Ram Mohan M K has been appointed as the new Director of the Marine Products Export Development Authority (MPEDA).