Daily Current Affairs (DCA) 25 October, 2025

Daily Current Affairs Quiz
25 October, 2025

National Affairs

1. PM SHRI Scheme

Context:

Kerala’s Minister for General Education, V. Sivankutty, has termed the State’s decision to join the PM Schools for Rising India (PM SHRI) scheme as a “tactical move” to counter the Centre’s denial of education funds. The announcement came amid criticism from the Communist Party of India (CPI) and other Left allies opposing the scheme’s perceived ideological motives.

About PM SHRI Scheme

Launched in September 2022, the PM Schools for Rising India (PM SHRI) scheme aims to upgrade existing schools into model institutions demonstrating National Education Policy (NEP) 2020 principles — focusing on experiential learning, digital education, and holistic development.

• It is jointly funded by the Centre and States (60:40 ratio).
• Targets to develop 14,500 schools across India.

2. Gyan Bharatam Mission

Source: TH

Context:

The Gyan Bharatam Mission, a flagship initiative of the Union Ministry of Culture, is set to sign Memorandums of Understanding (MoUs) with around 20 institutions across India for the conservation, digitisation, and promotion of the country’s rich manuscript heritage. Another 30 institutions are expected to join in the coming days.

Key Highlights:

• Objective and Mandate:
  • The mission aims to identify, document, conserve, digitise, preserve, and promote India’s vast and diverse manuscript heritage.
  • It will establish a National Digital Repository (NDR) to make India’s manuscript heritage accessible worldwide through a unified digital platform.
• Institutional Framework:
  • Partner institutes are categorised as:
    • Cluster Centres: Responsible for their own activities and those of up to 20 partner centres in their cluster.
    • Independent Centres: Handle manuscript-related activities for their own collections only.
• Scope of Activities:
  Institutes under Gyan Bharatam will focus on the following six key areas:
  • Survey and Cataloguing
  • Conservation and Capacity Building
  • Technology and Digitisation
  • Linguistics and Translation
  • Research and Publication
  • Public Outreach and Awareness
• Funding Structure:
  • Funds will be disbursed in phased instalments:
    • First Instalment: 70% on approval of the annual budget.
    • Second Instalment: 30% after submission of progress and financial reports, utilisation certificates, and relevant documentation.

3. Indian Coast Guard Launches Two Indigenous Fast Patrol Vessels

Source: PIB

Context:

The Indian Coast Guard (ICG) achieved a major milestone in its maritime security mission with the launch of two advanced Fast Patrol Vessels (FPVs) — ICGS Ajit and ICGS Aparajit — at Goa Shipyard Limited (GSL) on October 24, 2025. These vessels are the 7th and 8th in a series of eight indigenously built FPVs, marking a significant stride in India’s coastal surveillance and defence readiness.

About the New Fast Patrol Vessels (FPVs)

• Vessels Launched: ICGS Ajit and ICGS Aparajit
• Builder: Goa Shipyard Limited (GSL) under the ‘Make in India’ and Atmanirbhar Bharat initiatives.
• Length: 52 metres
• Launch Location: Goa Shipyard, Goa
• Propulsion System: Equipped with Controllable Pitch Propellers (CPP) — the first in this class in India, ensuring superior manoeuvrability, propulsion efficiency, and operational flexibility.
• Design: Fully indigenous, reflecting India’s growing shipbuilding and technological self-reliance.

Operational Roles

• Primary Missions:
  • Fisheries protection and anti-smuggling operations
  • Anti-piracy and coastal patrol duties
  • Search & Rescue (SAR) operations in maritime zones
• Operational Area: Indian Exclusive Economic Zone (EEZ) and island territories, enhancing 24×7 maritime vigilance.

4. Western Ghats Listed Under “Significant Concern” in IUCN World Heritage Outlook 4

Source: TH

Context:

The International Union for Conservation of Nature (IUCN), in its latest World Heritage Outlook 4 (2025), has downgraded the Western Ghats to the “Significant Concern” category. The report cites climate change, unregulated tourism, deforestation, and the spread of invasive species as major threats to this ecologically fragile region.

About the Western Ghats

• The Western Ghats, also called the Sahyadri Hills, are a continuous mountain range running along the western edge of the Deccan Plateau.
• Recognised as a UNESCO World Heritage Site (since 2012), the Ghats are one of the eight “hottest biodiversity hotspots” globally.
• They play a crucial role in monsoon regulation, water security, and biodiversity conservation in India.

Geographical Features

• Extent: ~1,600 km from the Tapti River in Gujarat to Kanyakumari in Tamil Nadu.
• States Covered: Gujarat, Maharashtra, Goa, Karnataka, Kerala, and Tamil Nadu.
• Area: Approximately 1,64,280 sq km.
• Palghat Gap: A 30 km-wide natural pass near 11°N latitude, linking Kerala and Tamil Nadu.
• Highest Peak: Anamudi (Kerala) — 2,695 m (8,842 ft).

Geological Background

• Formation: Older than the Himalayas, the Western Ghats were formed around 150 million years ago during the breakup of Gondwanaland.
• Composed primarily of basaltic lava flows, they form the western escarpment of the Deccan Plateau.
• Function as a climatic and geomorphic barrier, shaping India’s Southwest Monsoon.
• Described as an “Evolutionary Ecotone”, the region supports unique species evolution due to long-term isolation and climatic variations.

Biodiversity Richness

• Flora:
  • Over 7,400 plant species, with a high degree of endemism (species found nowhere else).
  • Home to dense tropical evergreen and semi-evergreen forests on the western slopes.
• Fauna:
  • Habitat for 325 globally threatened species.
  • Supports ~30% of the world’s Asian elephant population and ~17% of the global tiger population.
  • Endemic species include the Lion-tailed macaque, Nilgiri tahr, and Malabar civet.
• Hydrological Role: Source of major peninsular rivers — Godavari, Krishna, Kaveri, and Periyar.

Major Threats Identified by IUCN

• Climate Change: Alters rainfall patterns, increasing risk of droughts and landslides.
• Unregulated Tourism: Leads to habitat fragmentation, pollution, and waste mismanagement.
• Deforestation & Infrastructure Expansion: Road building, mining, and encroachment threaten wildlife corridors.
• Invasive Species: Non-native plants and animals disrupt local ecosystems.
• Urbanisation: Expanding settlements and agricultural conversion reduce forest cover.

Banking/Finance

1. RBI Proposes New Norms to Allow Banks to Fund Corporate Acquisitions

Source: BS

Context:

The Reserve Bank of India (RBI) has issued a draft circular proposing to allow banks to finance acquisitions by Indian corporates both domestic and overseas marking a major policy shift in corporate financing regulations. The move aims to strengthen domestic participation in mergers and acquisitions (M&A) while ensuring financial stability through prudential exposure limits.

Key Highlights:

• Purpose: To permit banks to provide loans for acquiring entire or controlling stakes in companies as strategic investments that create long-term value.
• Eligibility: Only listed Indian companies with a satisfactory net worth and profitable operations for the past three years can access such financing.
• Funding Limit: Banks can fund up to 70% of the acquisition value, with at least 30% financed by the acquiring company’s own equity contribution.
• Exposure Cap: The aggregate exposure of a bank towards acquisition finance cannot exceed 10% of its Tier-I capital.
• Permissible Route: Banks may lend directly to the acquiring company or to a step-down Special Purpose Vehicle (SPV) set up exclusively for the acquisition.
• Restrictions:
  • Acquirer and target cannot be related parties.
  • Acquirer and SPV must be body corporates, not financial intermediaries like NBFCs or AIFs.
• Valuation: Acquisition value must be based on two independent valuations as per SEBI regulations, and credit appraisal should be on the combined balance sheet of the acquirer and target.
• Additional Provision: Banks will also be allowed to finance acquisition of PSU shares under the disinvestment programme.
• Implementation Date: The proposed norms will come into effect from April 1, 2026.
• Complementary Move: RBI also proposed lower risk weights for NBFC loans to infrastructure projects, easing capital requirements for lenders.

2. RBI Proposes Cap on Banks’ Capital Market and Acquisition Financing Exposure

Source: ET

Context:

In a move to strengthen financial stability and curb excessive risk-taking, the Reserve Bank of India (RBI) has proposed a new prudential framework limiting banks’ exposure to capital markets and acquisition financing. The draft circular aims to ensure that banks maintain adequate capital buffers while supporting credit growth in India’s expanding economy.

Key Highlights of the Draft Norms:

Exposure Limits

• Aggregate Cap:
  • The total direct exposure of banks to capital markets and acquisition financing will be capped at 20% of their Tier-1 capital.
• Sub-limits:
  • Capital Market Exposure: Cannot exceed 40% of Tier-1 capital, including loans, guarantees, and fund-based exposures.
  • Acquisition Financing: Restricted to 10% of Tier-1 capital to prevent overleveraging in corporate takeovers.

Rules for Acquisition Finance

• Banks may finance up to 70% of the acquisition value, while the acquiring company must contribute at least 30% from its own funds.
• Only listed entities with sound financials—positive net worth and profitability over the last three years—will be eligible.
• The acquisition loans must be fully secured by the shares of the target company.

Revised Norms for NBFC Exposure

RBI has also proposed lower risk weights for NBFCs’ infrastructure loans, particularly for well-established projects. This will likely reduce capital requirements for banks, enhancing credit availability to the infrastructure sector.

Significance:

• Ensures better capital discipline and risk diversification among Indian banks.
• Encourages responsible corporate financing amid a surge in M&A activity.
• Supports the infrastructure financing ecosystem by easing risk-weight norms for NBFCs.
• Reinforces RBI’s dual strategy of credit growth with financial stability.

3. SEBI Restricts Mutual Funds from Participating in Pre-IPO Placements

Source: ET

Context:

The Securities and Exchange Board of India (SEBI) has issued a clarification restricting mutual funds (MFs) from participating in pre-IPO placements of equity shares. The decision aims to safeguard investors and ensure that MF portfolios remain compliant with listing requirements.

Key Highlights:

• Regulatory Clarification:
  • SEBI stated that mutual funds can invest in unlisted shares only as anchor investors — that is, a day before an IPO opens to the public.
• Restriction on Pre-IPO Placements:
  • Pre-IPO placements occur months before an IPO, while anchor allotments happen just one day before the IPO opens.
  • MFs are now barred from investing in pre-IPO placements, which take place before the securities are formally listed.
• Reason for Restriction:
  • Although pre-IPO placements occur after the filing of the offer document, IPOs can face delays or cancellations.
  • This could result in MFs holding unlisted shares indefinitely, violating regulatory norms that permit investment only in listed or to-be-listed securities.
• Existing Ambiguity:
  • MF regulations explicitly allow investments in listed and to-be-listed shares, but do not mention pre-IPO placements, creating regulatory uncertainty.
  • The new directive removes this ambiguity by formally disallowing such investments.
• Regulatory Communication:
  • The clarification was issued through a SEBI letter to the Association of Mutual Funds in India (AMFI).

4. Simplified GST Registration under GST 2.0

Context:

Finance Minister Nirmala Sitharaman has announced that a simplified Goods and Services Tax (GST) registration system under GST 2.0 will be implemented from November 1, 2025. The reform aims to enhance ease of doing business, reduce human interface, and make the tax administration more efficient and transparent.

Key Highlights:

• Automatic Approvals: New GST applicants will receive auto-approval within three working days in most cases.
• Eligibility for Automatic Registration:
  • Applicants identified as low-risk by the system based on data analytics.
  • Taxpayers self-assessing that their monthly output tax liability does not exceed ₹2.5 lakh.
• Coverage: Nearly 96% of new applicants are expected to benefit from this simplified system.
• Objective: To ease compliance, enhance efficiency, and ensure transparency by limiting discretionary approvals.
• Part of GST 2.0 Reforms:
  • Rationalisation of GST rate slabs.
  • Simplified return filing process.
  • Automated refund system.
  • Risk-based audit mechanism.

5. RBI Proposes Lower Risk Weights for NBFC Loans to High-Quality Infrastructure Projects

Source: BL

Context:

The Reserve Bank of India (RBI) has proposed reducing risk weights on loans given by Non-Banking Financial Companies (NBFCs) to high-quality operational infrastructure projects, according to draft guidelines released on October 24, 2025. The move seeks to reduce financing costs, promote infrastructure lending, and align capital norms with actual project risk.

Key Highlights:

• Lower Risk Weights Proposed:
  • Loans where the borrower has repaid at least 10% of the sanctioned amount → 50% risk weight (reduced from 100%).
  • Loans where the borrower has repaid between 5% and 10% of the sanctioned amount → 75% risk weight.
• Definition of High-Quality Infrastructure Projects:
  • The project must have completed at least one year of satisfactory operations after the Commercial Operations Date (COD).
  • The exposure should be classified as standard in the NBFC’s books.
  • The obligor’s revenue should primarily depend on one main counterparty — either the Central Government or a Public Sector Entity (PSE).
  • Additional safeguards must include:
    • Escrow of project cash flows
    • First charge over assets
    • Restrictions on additional borrowings
  • The obligor must have adequate financial arrangements to meet current and future working capital needs.
• Policy Context:
  • The proposal aligns with the RBI’s announcement during the Monetary Policy Committee (MPC) meeting earlier in 2025 to rationalize capital adequacy norms for NBFCs.
  • NBFCs are already permitted to assign lower risk weights for operational Public-Private Partnership (PPP) projects.
  • This framework extends the benefit to other operational infrastructure projects that meet defined quality standards.

6. RBI Exempts Swamih Fund from Tightened AIF Rules

Source: TOI

Context:

The Reserve Bank of India (RBI) has granted an exemption to the Swamih Investment Fund—a government-backed initiative supporting stalled real estate projects—from its recently tightened regulations on Alternate Investment Funds (AIFs).

About Swamih Fund:

• Established: 2019
• Managed by: SBICAP Ventures, a subsidiary of the State Bank of India
• Objective: Provide debt financing to affordable and mid-income housing projects that have stalled due to financial difficulties
• Socio-economic significance: Supports completion of housing projects crucial for affordable housing and stimulates broader economic activity

RBI’s 2024 Tightened Rules on AIFs:

• Banks and Non-Banking Financial Companies (NBFCs) investing in an AIF were required to hold higher provisions if they also lent to projects financed by that fund.
• Purpose: Prevent evergreening of loans, a practice where troubled loans are rolled over to avoid being classified as Non-Performing Assets (NPAs).

Exemption Details:

• Swamih Fund is exempt from the double-provisioning requirement, reducing capital costs for banks.
• This facilitates greater investment in stalled real estate projects, enabling faster project completion and mitigating losses for homebuyers and developers.

7. SBI and BoB to Lead Digital Payments Intelligence Body to Curb Fraud

Source: ET

Context:

State Bank of India (SBI) and Bank of Baroda (BoB) will spearhead the establishment of a digital payments intelligence platform aimed at detecting and preventing fraudulent transactions in real time across banks.

Entity Formation:

• Name: Indian Digital Payment Intelligence Corporation (IDPIC)
• Legal Structure: Section 8 company (non-profit)
• Authorized Capital: ₹500 crore
• Paid-Up Capital: ₹200 crore
• Equity Participation: All 12 public sector banks (PSBs) expected to hold stakes
• Initial Funding: SBI and BoB to contribute ₹10 crore each
• Governance: Two senior executives from SBI and BoB will join as directors initially

Objectives:

• Strengthen risk management in the banking system amid rising digital transactions
• Detect and prevent bank frauds in real time
• Consolidate data from multiple sources (mule accounts, telecom, geographical location) and train an AI system for fraud detection

8. RBI Proposes Higher Loan-to-Value Limits for Loans Against Shares and Debt Mutual Funds

Source: ET

Context:

The Reserve Bank of India (RBI) released a draft circular on October 25, 2025, proposing to raise the LTV ceilings and loan limits for individuals availing loans against shares and debt mutual funds. The move aims to enhance credit flow, align prudential norms with market dynamics, and streamline capital market exposures.

Key Highlights of the Draft Proposal:

1. Increased Loan-to-Value (LTV) Ratios:

• For Shares: Increased from 50% to 60%.
• For Debt Mutual Funds (MFs): Increased from 50% to 75%.
• For Debt Securities and Commercial Papers: LTV ceiling also proposed to be raised.
• For Government Securities (G-Secs) and Sovereign Gold Bonds (SGBs):
  • LTV to follow banks’ internal policies or existing gold loan norms.

2. Loan Amount Limits:

• Maximum loan amount: Increased fivefold — from ₹20 lakh to ₹1 crore per individual.
• Loan for acquisition of securities in secondary markets: Capped at ₹25 lakh per individual.

3. Risk Management Conditions:

• If the credit rating of a pledged debt security falls below investment grade (BBB-), banks must:
  • Replace the security with another eligible one within 30 working days, or
  • Repay a proportionate portion of the exposure.
• No loans (secured or unsecured) to be granted by banks to their own employees or employee trusts for purchasing the bank’s own shares under ESOPs, IPOs, or secondary market transactions.
• Loans against locked-in securities are not permitted.

Objective and Rationale

• To liberalize credit access for investors and individuals with financial assets.
• To improve liquidity in capital markets while maintaining prudential safeguards.
• To harmonize LTV norms across different types of securities and mitigate concentration risks.
• To align regulatory frameworks with evolving market instruments and investor profiles.

9. PMS Transfer Between Managers Gets SEBI Nod

Source: BS

Context:

The Securities and Exchange Board of India (SEBI) has allowed the transfer of Portfolio Management Services (PMS) businesses from one portfolio manager to another, subject to regulatory approval. The decision aims to bring greater operational flexibility, continuity of client services, and consolidation efficiency in India’s portfolio management industry.

Key Highlights of the SEBI Circular:

1. Transfer Permitted with SEBI Approval

• Portfolio managers can transfer their PMS business, either partially (specific investment approaches) or completely, to another manager after obtaining SEBI’s prior approval.

2. Intra-Group Transfers

• Transfers between portfolio managers within the same group are allowed for select investment approaches or the entire business.
• If the entire PMS business is transferred, the transferor’s PMS registration certificate must be surrendered within 45 days from completion.

3. Inter-Group Transfers

• If the transfer is between managers not belonging to the same group, a joint application must be filed with SEBI.
• In such cases, partial transfers are not allowed — the entire PMS business must be transferred.

4. Post-Transfer Obligations

• The transferee (receiving manager) must comply with all regulatory requirements.
• Upon completion, all pending actions, litigations, and obligations of the transferor become the responsibility of the transferee.
• A written undertaking confirming this assumption of responsibility must be submitted to SEBI.

Objective and Rationale

• To facilitate consolidation among portfolio managers for improved efficiency and scale.
• To ensure continuity of investor services without disruption during change of management.
• To enhance regulatory clarity and accountability between transferring and receiving entities.
• To support ease of doing business in India’s alternative investment and wealth management ecosystem.

About Portfolio Management Services (PMS)

Portfolio Management Services (PMS) are investment management services offered by SEBI-registered portfolio managers who manage clients’ investments in equity, debt, or hybrid portfolios for a fee, customized to investor objectives and risk appetite.

Key Features:

• Minimum Investment: ₹50 lakh (as per SEBI regulations).
• Types:
  • Discretionary PMS: Portfolio manager takes all investment decisions.
  • Non-Discretionary PMS: Decisions made with investor consent.
  • Advisory PMS: Manager provides advice; execution is done by the investor.

Facts To Remember

1. Prime Minister will lead parade on 150th birth anniversary of Sardar Vallabhbhai Patel

Prime Minister Narendra Modi will lead the Rashtriya Ekta Diwas parade near Kevadia in Gujarat on October 31 to commemorate the 150th birth anniversary of Sardar Vallabhbhai Patel, the first Deputy Prime Minister and Home Minister of the country.

2. Advertising veteran Piyush Pandey passes away at 70

Advertising industry veteran Piyush Pandey passed away in Mumbai on Friday owing to illness. He was 70.

3. India’s Private Sector Growth Slows to Five-Month Low in October: HSBC Flash PMI

India’s private sector growth lost some momentum in October 2025, as business activity was dampened by weaker demand conditions and rising output prices, according to the HSBC Flash India Composite Purchasing Managers’ Index (PMI) compiled by S&P Global.

4. Starlink begins security tests ahead of India launch

Elon Musks Starlink is starting security tests in India, one of the final hurdles for the firm as it prepares to provide commercial satellite broadband services in the worlds most populous country, according to people familiar with the matter.

5. Australia launches First Nations mission to boost mining, RE sector ties with India

Australia will send itsfirst-ever First Nations business mission to India this month to strengthen trade and investment links between Indigenous Australian enterprises and Indias mining and renewable energy sectors.