Daily Current Affairs (DCA) 24 May, 2025

Daily Current Affairs Quiz
24 May, 2025

International Affairs

1. India to Push for Pakistan’s Re-inclusion in FATF Grey List

Context:

The Financial Action Task Force (FATF) is a global watchdog that monitors countries on issues related to money laundering and terror financing. Pakistan was placed on the FATF grey list in 2018 and removed in October 2022, conditional upon implementing a robust legal and enforcement framework, including an anti-terror law.

Implications

Future Actions by India

1. FATF Grey List Push:
   • India plans to submit a dossier to the Financial Action Task Force (FATF) ahead of its June 2025 plenary, urging the re-inclusion of Pakistan in the ‘grey list’ due to its non-compliance with anti-terror financing regulations.
2. World Bank Engagement:
   • India will also engage with the World Bank to prevent any further funding to Pakistan, citing similar concerns over misuse and lack of reform.

What are FATF Grey List and Blacklist?

Published by: Financial Action Task Force (FATF)
Purpose: To combat global money laundering, terrorist financing, and threats to international financial systems

FATF Blacklist

Also known as: Non-Cooperative Countries or Territories (NCCTs)

Definition:
Countries that actively support terror financing or money laundering and show no cooperation with FATF recommendations.

Current Blacklisted Countries (as of 2025):

• North Korea
• Iran
• Myanmar

Consequences of Blacklisting:

• No access to international financial aid from:
  • International Monetary Fund (IMF)
  • World Bank
  • Asian Development Bank (ADB)
  • European Union (EU)
• Subject to strict economic sanctions and financial restrictions
• Loss of global investor confidence
• Severe impact on international trade and economic growth

FATF Grey List

Definition:
Countries that are under increased monitoring due to strategic deficiencies in combating money laundering and terrorist financing.
These are “jurisdictions of concern” that may later move to the blacklist if insufficient action is taken.

Purpose of Greylisting:

• Acts as a warning and push for reforms
• Encourages countries to work with FATF to address deficiencies

Consequences of Greylisting:

• Increased scrutiny in international transactions
• Reduced foreign investments and capital inflow
• Pressure from global financial institutions to implement regulatory reforms

Key Differences

Feature	Grey List	Blacklist
Severity	Moderate risk	High risk
Cooperation with FATF	Partial	None
Consequences	Increased monitoring, reduced investment	Financial isolation, sanctions
Example Countries (2025)	Varies (updated regularly)	North Korea, Iran, Myanmar

TH

National Affairs

1. Overfishing in India

What is Overfishing?

• Definition: Overfishing occurs when fish are caught faster than they can naturally replenish, leading to stock depletion.
• Global Outlook: According to FAO, over 33% of global fish stocks are overexploited.
• India’s Context: Despite harvesting 3–4 million tonnes/year, 90% of Indian fishers (small-scale) contribute only 10% of the catch; 75% live below the poverty line.

Key Causes of Overfishing in India

• Overcapacity of Mechanised Vessels: Trawlers and mechanised boats remove up to 10 kg of bycatch for every 1 kg of shrimp.
• Destructive Fishing Gear: Use of small-mesh nets (<25 mm) catches juvenile fish, hindering population recovery.
• Illegal, Unreported, and Unregulated (IUU) Fishing: Globally costs $36.4 billion annually and weakens sustainable practices.
• Fragmented Regulation: Coastal states have separate Marine Fisheries Regulation Acts, enabling loopholes.
• Harmful Subsidies: Fuel and vessel subsidies promote overfishing, even when economically unviable.

Impacts of Overfishing

On Marine Ecosystems

• Biodiversity Loss: Trawling depletes reef habitats; sardine and mackerel stocks have seen major declines.
• Species Threat: Sharks, rays, and turtles — one-third of which face extinction — are severely impacted.

On Human Livelihoods

• Economic Strain: Small-scale fishers suffer from debt and low income; FMFO industry worsens market access.
• Food Insecurity: Millions depend on fish as a protein source; declining stocks endanger nutrition and employment.

On the Environment

• Dead Zones and Collapse: Discards and imbalances destabilise marine food webs (e.g., Canada’s 1992 cod fishery collapse).

Sustainable Solutions to Combat Overfishing

• Quota Management System (QMS): Adopt a New Zealand-style model based on scientific stock assessments.
• Enforce Minimum Legal Size (MLS): Example: Kerala’s MLS for threadfin bream increased catch by 41% in one season.
• Unified National Fishing Law: Standardise gear use, closed seasons, and size limits across all coastal states.
• Regulate FMFO Sector: Introduce quotas, divert bycatch for domestic aquaculture, and mandate juvenile fish release.
• Community Co-Management: Empower fisher cooperatives to manage Marine Protected Areas (MPAs).
• Consumer Awareness: Promote sustainable seafood choices and discourage purchase of undersized/illegal fish.

2. India on Track to Exceed 2030 Emissions Intensity Target: Report

About the Report

• Title of Report: Energy and Climate Change
• Published by: Council on Energy, Environment and Water (CEEW) and Alliance for an Energy Efficient Economy (AEEE)
• Focus: Tracking India’s progress toward climate targets, emissions intensity, and low-carbon pathways

Key Findings on India’s Climate Progress

Emissions Intensity Targets

• India is projected to reduce its emissions intensity by 48–57% by 2030, significantly surpassing its official NDC target of 45% reduction from 2005 levels.
• This marks strong alignment with India’s Paris Agreement goals and a decoupling of economic growth from carbon emissions.

Role of Behavioural Change – Mission LiFE

• The Mission LiFE (Lifestyle for Environment) initiative can contribute to:
• Up to 10% reduction in total emissions by 2050
• Promotes sustainable consumption and individual climate responsibility

Renewable Energy & Power Sector Transformation

• Non-fossil fuel sources could constitute 60–68% of India’s installed power capacity by 2035.
• Reflects rapid transition to clean energy through solar, wind, hydro, and nuclear.

Long-Term Net-Zero Goals

• Key enablers for India’s 2070 net-zero target:
• Carbon pricing mechanisms
• Electricity tariff reforms
• Accelerated clean technology investments

Growth and Emissions Outlook

• India’s total greenhouse gas emissions may rise with economic growth, but:
• Emissions intensity will continue to decline due to energy efficiency and renewable integration

Banking/Finance

1. RBI Approves Record ₹2.69 Trillion Surplus Transfer to Centre for FY25

Context:

The RBI Central Board has approved a record surplus transfer of ₹2.69 trillion to the Union government for the financial year 2024–25 (FY25). This marks a 27% increase over the ₹2.11 trillion transferred in FY24, making it the second consecutive record payout. The Contingent Risk Buffer (CRB) has been raised to 7.5%, the upper limit of a newly revised CRB range (4.5%–7.5%).

RBI Act of 1934

The RBI transfers its surplus to the Central Government under Section 47 of the Reserve Bank of India Act, 1934. This section mandates that after providing for various reserves and deductions, the remaining profit is paid to the Central Government. 

• Section 47: This section is the primary legal provision governing the transfer of RBI’s surplus to the Central Government.

Economic Capital Framework (ECF) Revisions

• The RBI reviewed its Economic Capital Framework (ECF) after five years, as per the Bimal Jalan Committee recommendation.
• The CRB range, earlier fixed at 5.5%–6.5%, has now been revised to 6% ± 1.5%, i.e., 4.5%–7.5%.
• Despite the CRB hike, the surplus remained high due to:
  • Profits from massive dollar sales
  • A stronger income from forex reserves

Foreign Exchange Operations in FY25

• Gross dollar sales: $399 billion (vs $153 billion in FY24)
• Net dollar sales: $34.5 billion — highest since the 2008 global financial crisis
• The historical cost of dollars was lower than current spot prices, generating bumper forex profits.

Fiscal Implications

• The Union Budget 2025–26 had projected ₹2.56 trillion as total dividend from RBI and PSUs.
• With the actual surplus exceeding projections, the fiscal deficit could ease by ~20 bps to 4.2% of GDP.
• Alternatively, it opens space for additional spending of ~₹70,000 crore.

TH

2. Centralized Public Grievance Redress and Monitoring System (CPGRAMS)

Context:

The Union Ministry of Finance has asked public sector banks (PSBs) to strengthen customer grievance redressal following multiple misconduct incidents by bank staff. Department of Financial Services (DFS) Secretary M. Nagaraju instructed PSB heads to:

• Strictly follow employee conduct guidelines
• Review performance of branch heads regularly

CPGRAMS: Centralized Public Grievance Redress and Monitoring System

Developed by: National Informatics Centre (NIC)
Objective: To provide a 24×7 online platform for citizens to lodge grievances related to government service delivery

Key Features

• Coverage: Connects all Ministries/Departments of the Government of India and States with role-based access
• Accessibility: Citizens can:
  • Lodge complaints online
  • Track grievance status using a registration ID
  • File appeals if dissatisfied with grievance resolution
• Languages: Available in multiple Indian languages
• Transparency: Ensures timely feedback and accountability

Governance Reforms in 2024

• 10-step reforms implemented to improve grievance redressal efficiency
• Over 1 lakh Grievance Officers mapped across departments
• Enhanced data analytics and dashboards for performance monitoring
• Faster grievance redressal timelines and escalation mechanism

Significance

• Promotes responsive governance and citizen-centric service delivery
• Strengthens digital democracy and transparency
• Plays a crucial role in public accountability and policy feedback

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3. RBI Draft Circular: Banks Must Facilitate KYC Updates to Activate Inoperative Accounts

Context:

The Reserve Bank of India (RBI) has proposed that all banks must offer KYC update facilities to customers seeking to activate inoperative accounts or unclaimed deposits.

• This facility must be made available at all branches, including non-home branches of the bank.
• Customers can also request KYC updates through the Video Customer Identification Process (VCIP), subject to the availability of this facility at the bank.
• Banks are allowed to use authorised business correspondents to assist customers in activating inoperative accounts.

This initiative by RBI aims to simplify the process of reactivating dormant accounts and improve customer convenience by leveraging digital and branch-based channels.

BS

4. Getepay Receives RBI Approval to Operate as Online Payment Aggregator

About Getepay

• Jaipur-based digital payments and merchant enablement platform
• Focuses on empowering small merchants, micro-retailers, and rural businesses
• First company from Rajasthan to receive this RBI approval

RBI Authorization

• Received final approval from the Reserve Bank of India (RBI) to operate as an Online Payment Aggregator (PA)
• Licensed under RBI’s regulatory framework for payment aggregators

Impact and Reach

• Currently serves 1.5 million+ merchants across:
  • Kirana stores
  • E-commerce sellers
  • Educational institutions
  • Service providers
  • Small-scale manufacturers

Expansion and Strategic Plans

• Plans to expand pan-India with focus on Tier 2, Tier 3, and rural regions
• Aims to onboard millions of MSMEs on a unified digital payments and commerce platform

Key Offerings

• Beyond payment aggregation, Getepay will offer:
  • Digital store creation
  • Inventory management
  • GST billing solutions
• Vision to help formalize 10 million MSMEs in the coming years

Significance

• Boosts India’s digital financial infrastructure and promotes MSME digitalization
• Reinforces RBI’s focus on inclusive fintech growth and regulatory compliance

5. IPPB–Aditya Birla Capital Strategic Partnership: Expanding Access to Credit

Context:

India Post Payments Bank (IPPB), a Government of India enterprise, has announced a strategic partnership with Aditya Birla Capital Limited (ABCL), one of the country’s leading diversified financial services firms. This collaboration aims to enhance access to loan products across India, particularly in underserved regions.

Purpose of the Collaboration

• Enhance access to loan products across India, especially in underserved and rural regions
• Leverage IPPB’s vast postal and digital infrastructure with ABCL’s diverse lending portfolio

Key Features of the Partnership

Bridging the Credit Gap

• IPPB will refer customers to ABCL for:
  • Personal loans
  • Business loans
  • Loans against property
• IPPB acts as a lead referral partner, not assuming credit risk
• Credit sanctioning and risk assessment will remain with ABCL

Digital-First Lending Experience

• ABCL’s AI-enabled digital platforms to offer:
  • Minimal documentation
  • Swift processing
  • Tailored loan products based on customer profiles

Customer-Centric Delivery

• Loans will be made accessible through IPPB’s post office network and digital channels
• Aimed at providing a simple, paperless, and presence-free experience

About India Post Payments Bank (IPPB)

• Established: 2018 under Department of Posts, Ministry of Communications
• Ownership: 100% Government of India
• Network:
  • ~1.65 lakh post offices
  • 3 lakh postal employees
  • Services in 13 languages
• Reach: Over 11 crore customers across 5.57 lakh villages and towns
• Operates on India Stack principles for digital doorstep banking

6. SBM Bank India and ICICI Prudential Life Insurance: Bancassurance Alliance

Context:

SBM Bank India has entered into a strategic bancassurance partnership with ICICI Prudential Life Insurance to offer a wide range of life insurance products through its branch and digital networks. The alliance aims to improve insurance accessibility, especially in the context of India’s low insurance penetration rate.

Key Highlights

• Purpose of Alliance:
  • To enable SBM Bank customers to access term plans, savings products, retirement solutions, and wealth creation options from ICICI Prudential Life.
• Insurance Penetration Context:
  • India’s insurance penetration was 3.7% in FY24, below the global average of 7%, indicating a large untapped market.
• Strategic Benefits:
  • SBM Bank benefits from an expanded product portfolio for its clients.
  • ICICI Prudential Life gets wider market reach through SBM’s distribution network.
  • Joint focus on digital-first, customer-centric insurance solutions.

Institutional Profiles

SBM Bank India

• A subsidiary of State Bank of Mauritius (SBM) with 22 branches in India.
• Recent expansion includes a branch in Naigaon, Maharashtra.
• Vision: To build a ‘financial supermarket’ offering end-to-end financial services.

ICICI Prudential Life Insurance

• Assets Under Management (AUM): ₹3.09 lakh crore (as of March 31, 2025)

7. IndusInd Bank Signs MoU with DPIIT to Boost Start-up Ecosystem in India

Context:

IndusInd Bank has signed a Memorandum of Understanding (MoU) with the Department for Promotion of Industry and Internal Trade (DPIIT) to provide customised banking and financial solutions to India’s start-ups, under the Startup India initiative. This public-private collaboration aims to empower innovators, entrepreneurs, and start-ups with easy access to capital and policy support.

Key Features of the Partnership

• Tailored Financial Products for Startups:
  • Cash management services
  • Working capital solutions
  • Credit facilities for early- and growth-stage start-ups
• Enhanced Support via CGSS (Credit Guarantee Scheme for Startups):
  • Collateral-free loans with guarantee cover up to ₹20 crore
  • Concessional guarantee fees for 27 Champion Sectors
  • Eases debt funding and promotes capital mobilisation
• Objective:
  • To create a robust banking and non-banking ecosystem for start-ups
  • Accelerate India’s transformation into a global entrepreneurship hub

Significance

• Encourages investment in advanced technologies and manufacturing
• Supports self-sustaining growth models for start-ups
• Aligns with government goals to foster economic growth through innovation
• Aims to build the next generation of Indian unicorns

About IndusInd Bank

• Established: Over 30 years ago
• Customer Base: ~42 million customers as of Dec 31, 2024
• Network: 3,063 branches/outlets and 2,993 ATMs; presence in 1.6 lakh villages
• Global Footprint: Representative offices in London, Dubai, and Abu Dhabi
• Key Offerings:
  • Retail, SME, and corporate banking
  • Microfinance, ESG-linked products, NRI services, vehicle finance
  • ‘INDIE’ digital banking platform under the Digital 2.0 strategy

Facts To Remember

1. COVID isolation ward opened in Visakhapatnam hospital

The first COVID-19 case in Visakhapatnam after a long gap has caused concern amid rising cases in some Indian States and countries like Singapore and Hong Kong. 

2. EC to provide mobile phone deposit facilities for voters outside polling stations

In fresh initiatives aimed at enhancing voter confidence, the Election Commission (EC) issued instructions for providing mobile deposit facilities outside polling stations and rationalising the norms for canvassing on voting days.

3. Airtel Payments Bank Eyes IPO by September 2027 Following Regulatory Mandate

IPO Timeline: Airtel Payments Bank must go public within three years after crossing ₹500 crore net worth in September 2024, setting a deadline of September 2027 for listing.