Daily Current Affairs (DCA) 27&28 July, 2025

Daily Current Affairs Quiz
27&28 July, 2025

National Affairs

1. ISRO-NASA NISAR Mission

Context:

India’s ISRO and the U.S. space agency NASA are set to jointly launch NISAR (NASA-ISRO Synthetic Aperture Radar) from Sriharikota on July 30, 2025, using the GSLV Mk-II. It will be the world’s most advanced radar-based earth observation satellite, designed for high-resolution tracking of changes on Earth’s surface.

What is NISAR?

• A joint mission between NASA and ISRO.
• The first dual-frequency SAR (Synthetic Aperture Radar) satellite, combining:
  • L-band SAR (1.257 GHz) by NASA – better for ground deformation, forests, and subsurface imaging.
  • S-band SAR (3.2 GHz) by ISRO – sensitive to vegetation, moisture, crops, and surface texture.

Objectives of the Mission

• Monitor changes in:
  • Solid Earth processes (earthquakes, landslides, ground subsidence)
  • Ecosystems and biomass
  • Ice sheets and glaciers
  • Agricultural croplands
  • Flooded vs. dry land areas
  • Infrastructure stability (dams, levees)
• Help in climate change research, disaster management, and resource monitoring.

Technical Highlights

• Orbit: Sun-synchronous polar orbit at 747 km altitude, 98.4° inclination.
• Antenna: 12-metre wide mesh reflector.
• Swath width: 240 km (ultra-wide), thanks to SweepSAR technology.
• Spatial resolution: 3–10 meters; vertical accuracy in centimetres.
• Revisit time: Every 12 days per location.
• Data accessibility: Freely available to the public typically within a few hours.
• Annual biomass maps (1 ha resolution) and quarterly cropland maps.

Region-Specific Use

• ISRO has reserved routine S-band operations over India, ensuring:
  • Better mapping of soil moisture, crop health, and biomass.
  • Reduced atmospheric distortion in Indian observations.

How NISAR Works

• Uses radar pulses to scan Earth’s surface — it measures return time and phase of the signal.
• Synthetic Aperture Radar (SAR) mimics a large antenna by combining sequential echoes as the satellite moves.
• It can penetrate clouds, smoke, vegetation, and work day or night, making it reliable for all-weather monitoring.
• Different polarisation modes (horizontal/vertical) help classify materials (soil, water, crops, snow).

TH

2. Sohrai Art of Jharkhand

Context:

At Kala Utsav 2025, held at Rashtrapati Bhavan, the tribal Sohrai Art from Jharkhand was prominently showcased. President Droupadi Murmu lauded it as reflecting “the soul of India,” celebrating its deep-rooted cultural, spiritual, and ecological essence.

What is Sohrai Art?

Origin and Communities

• A ritual mural painting tradition of Santhal, Munda, and Oraon tribes.
• Predominantly practiced by tribal women in Jharkhand, especially during festivals.

Cultural Purpose

• Painted during Diwali and harvest festivals as a thanksgiving ritual to honor livestock, fertility, and agrarian life.
• Represents womanhood, spiritual ecology, and cultural continuity.

Geographical Reach

• Practiced in Hazaribagh, Santhal Parganas, and border areas of Bihar.
• Evolved from prehistoric cave art to village murals across eastern India.

Key Features of Sohrai Art

Aspect	Details
Themes & Motifs	Nature-inspired: animals, birds, trees, rural life scenes.
Pigments	Natural earth-based colors – red ochre, white kaolin, black manganese.
Tools Used	Bamboo twigs, chewed sticks, cloth – no synthetic brushes.
Artists	Exclusively women artists, ensuring generational knowledge transfer.
Ritual Context	Painted during Diwali, celebrating livestock and agrarian prosperity.

Cultural Significance

• Eco-centric and sustainable art form reflecting indigenous worldviews.
• Embodies mythology, farming traditions, and feminine creativity.
• Serves as a living oral tradition, deeply embedded in tribal identity and seasonal cycles.

PIB

3. Exercise Bold Kurukshetra 2025

Context:

The 14th edition of Exercise Bold Kurukshetra, a bilateral military exercise between India and Singapore, commenced in Jodhpur in 2025. The focus areas include mechanised warfare training and UN peacekeeping simulations, furthering strategic interoperability between the two nations.

About Exercise Bold Kurukshetra

Aspect	Details
Nature of Exercise	Bilateral military drill under the India-Singapore Defence Cooperation Agreement (DCA)
Edition	14th (2025)
Location	Jodhpur, Rajasthan, India
Participating Forces	🇮🇳 Indian Army – Mechanised Infantry Regiment🇸🇬 Singapore Armed Forces – 42nd Armoured Regiment, 4th Armoured Brigade

TET

4. Great Indian Bustard (GIB)

Context:

The Supreme Court-appointed expert committee on Great Indian Bustard (GIB) protection has recommended designated “power corridors” for overhead transmission lines in Gujarat and Rajasthan, balancing renewable energy expansion with critical conservation needs.

The Great Indian Bustard (GIB)

The Great Indian Bustard (GIB) is one of the heaviest flying birds native to the Indian subcontinent. Once commonly found across India’s grasslands, it is now critically endangered, with fewer than 150 individuals remaining as of 2018. The primary threats are habitat loss, hunting, and powerline collisions.

Conservation Status

Feature	Details
Scientific Name	Ardeotis nigriceps
IUCN Red List Status	Critically Endangered
Protection in India	Schedule I of Wild Life (Protection) Act, 1972
CITES Status	Appendix I
Global Population	Estimated <150 individuals (as of 2018)

Habitat and Distribution

• Natural Habitat:
  • Prefers arid and semi-arid grasslands, open scrub, and desert regions.

Threats to Survival

• Habitat Destruction: Conversion of grasslands into agricultural and industrial zones.
• Powerline Collisions: Frequent deaths due to collision with high-tension wires.
• Poaching and Hunting: Historically hunted for meat and sport.
• Neglect of Grassland Ecosystems: Grasslands often treated as “wastelands” in policy.

Banking/Finance

1. Financial Inclusion Index (FI Index)

Context:

The Reserve Bank of India (RBI) recently released the Financial Inclusion Index (FI Index) for the year ended March 2025, reporting a score of 67.0, marking steady progress since the index’s inception in 2021. While the improvement signals broader access to formal financial services, it lacks transparency on regional disparities and sub-index performance, raising concerns about its effectiveness as a policymaking tool.

Key Components of the FI Index

The FI Index is a composite measure that captures the extent of financial inclusion across India using three key parameters:

1. Access – Availability of financial services.
2. Usage – Actual utilization of those services.
3. Quality – Ease, relevance, and consumer protection within the financial ecosystem.

According to RBI, the improvement this year has largely been driven by better usage and quality, rather than new access.

Concerns with the Current FI Index Framework

1. Lack of Disaggregated Data:

• RBI does not disclose sub-index scores (access, usage, quality) separately.
• No state-wise or district-level disaggregation is provided.
• This limits the utility of the index for targeted policy formulation.

2. Spatial Heterogeneity Masked:

• A single all-India score obscures the deep disparities in financial inclusion across states and districts.
• Remote and underserved regions may continue to face financial exclusion, unreflected in the national score.

3. Incomplete Financial Inclusion:

• Account ownership has expanded under schemes like Jan Dhan Yojana, supported by Aadhaar and mobile penetration.
• However, account usage remains weak; many accounts are dormant due to:
  • Distance to banking facilities.
  • High transaction costs.
  • Low financial literacy.

4. Gaps in Insurance and Pension Inclusion:

• Informal sector workers remain largely excluded from insurance and pension coverage.
• Lack of tailored financial products and inadequate trust in digital systems exacerbate underutilization.

Recommendations for Improvement

1. Publish Sub-Index Scores:

• Disclose separate scores for access, usage, and quality.
• Helps policymakers identify which dimension needs intervention (e.g., quality vs. access).

2. Release State-wise and District-level FI Index:

• Enable data-driven, localized financial inclusion strategies.
• Helps financial institutions allocate resources more effectively.

3. Expand Scope Beyond Bank Accounts:

• Promote adoption of credit, insurance, pensions, and digital payments.
• Strengthen customer protection, affordability, and financial literacy.

4. Improve Digital Infrastructure:

• Increase digital acceptance points.
• Ensure secure, privacy-compliant access to financial services, especially in rural and semi-urban areas.

BS

2. Reforming India’s KYC Framework

Context:

Know Your Customer (KYC) norms are the bedrock of anti-money laundering and financial integrity systems. But in India, the friction between compliance and user convenience has turned KYC into a burden for ordinary customers, especially in rural areas. Harsh Roongta argues that fixing KYC does not require new laws, only better enforcement and coordination.

Key Highlights:

The Power of the Money Trail

• Historical reference: Al Capone’s tax conviction shows financial records are more effective than eyewitnesses in fighting crime.
• Modern impact: KYC aids in tracking financial flows to deter terrorism, corruption, drug trafficking, and scams.

KYC Ecosystem in India

• Mandatory across: Banks, insurers, stockbrokers, mutual funds, demat accounts, and NPS.
• Key repositories:
  • CKYC (by CERSAI): For banking & insurance.
  • KRAs (by SEBI): For securities intermediaries.

Progress via Aadhaar & Jan Dhan

• Aadhaar + mobile + Jan Dhan Yojana expanded access.
• DBT (Direct Benefit Transfer) incentivized KYC completion.

Challenges in Re-KYC

• RBI allows digital re-KYC for low-risk accounts.
• But banks often:
  • Force physical visits despite no change in details.
  • Demand fresh documents unnecessarily.
  • Deny online options.
• Consequences: Rural distress, blocked pensions, wage loss, and even death in rare cases.

Systemic Weaknesses

1. No Penalties for Non-Compliance
   • Banks face no consequence for ignoring RBI norms.
2. Lack of KYC Portability in Banking
   • CKYC only stores, doesn’t validate data—unlike SEBI’s KRAs.
3. Lessons from Securities Market
   • SEBI’s KRAs allow KYC reuse across intermediaries—efficient and user-friendly.

Recommendations

• Make RBI’s KYC norms enforceable with penalties.
• Upgrade CKYC to verify and validate data.
• Enable interoperability and syncing of KYC updates across financial entities.
• Adopt SEBI’s portability model across all financial regulators.

BS

3. Payment Banks Seek Relaxation in RBI Norms

Context:

India’s payment banks have renewed their push for regulatory easing, requesting the Reserve Bank of India (RBI) to reduce the Statutory Liquidity Ratio (SLR) requirement, allow small-ticket lending, and increase the deposit cap per customer. These demands aim to enhance profitability, expand their financial services offerings, and address the viability challenges inherent in their business model.

Key Demands from Payment Banks

1. Reduction in SLR from 75% to 65% or Lower

• Current SLR Norm:
  • Payment banks must invest 75% of their demand deposits in government securities (G-Secs) with maturities up to 1 year.
  • The remaining 25% must be held in current or fixed deposits with scheduled commercial banks.
• Banks’ Request:
  • Reduce SLR by at least 10 percentage points.
  • Permit investment in longer-tenure government securities to increase yield.
• Rationale:
  • Current restrictions limit margin growth.
  • A reduction could improve net interest margins (NIMs) by 50 bps to 1%.

2. Permission to Offer Small Loans

• Current Restriction:
  • Payment banks are not allowed to lend under RBI’s differentiated licensing regime.
• Request:
  • Permit small-ticket loans of up to ₹5 lakh.
• Justification:
  • Enable revenue diversification.
  • Support financial inclusion with regulated micro-credit offerings.

3. Enhancement of Customer Deposit Cap

• Current Limit:
  • Only ₹2 lakh per customer in savings accounts.
  • No permission to accept fixed or recurring deposits.
• Proposal:
  • Raise the deposit limit to ₹5 lakh per customer.

Operational Context

• Leading Payment Banks in India:
  • India Post Payments Bank
  • Airtel Payments Bank
  • Fino Payments Bank – Also applied for a Small Finance Bank (SFB) license
  • Paytm Payments Bank, Jio Payments Bank, NSDL Payments Bank
• Profitability Challenge:
  • Low-yielding SLR investments constrain NIMs, e.g., Fino reported ~2.5% NIM.
  • Treasury operations form the core income source, in absence of lending rights.

TET

4. Government Identifies Priority Sectors to Boost FDI

Context:

With net FDI inflows slowing down amid global economic uncertainty and international investors exiting through IPOs or repatriating capital, the Indian government—along with Invest India—has drawn up a sector-specific strategy to attract fresh foreign direct investment. This initiative aims to maintain India’s momentum as a global investment destination by facilitating new investments in sectors aligned with evolving global supply chains and domestic industrial priorities.

Key Sectors Identified for FDI Promotion

The government has shortlisted the following six sectors for targeted investor outreach:

• Electronics System Design and Manufacturing (ESDM)
  • Focus on mobile phones, semiconductors, and components.
  • Strong investor response due to the PLI scheme and global push to diversify from China.
  • Firms like Foxconn and their vendors have invested heavily.
• Non-Leather Footwear
  • Promoted as a labour-intensive export-oriented sector.
  • Aligned with sustainability and synthetic material trends.
• Chemicals
  • India positioned as a China+1 alternative for global chemical supply chains.
  • Potential for specialty and agrochemical FDI.
• Medical Devices
  • Government incentivizing domestic production under PLI schemes.
  • Focus on reducing import dependence and becoming a global manufacturing hub.
• Toys
  • Boosted by anti-China sentiment and government bans on unsafe imports.
  • Policy support for MSMEs and design innovation hubs.
• Electric Vehicles (EVs)
  • Growing demand domestically.
  • Entry of firms like VinFast.
  • Import concession scheme introduced to attract manufacturers.

Policy Measures and Facilitation Strategy

• Government aims to increase gross inflows through:
  • Targeted value chain mapping.
  • Ease of doing business initiatives and inter-ministerial coordination.
  • PLI schemes and special tariff incentives to localize key components (e.g., motors, compressors, copper tubes).
  • Active engagement with global investors through Invest India.

TOI

5. RBI Grants In-Principle Authorisation to Xflow as Cross-Border Online Payment Aggregator

Context:

Xflow, a Bengaluru-based cross-border payments fintech, has received in-principle approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator for cross-border (PA-CB) transactions. The approval covers both import and export flows, marking a major milestone in India’s evolving fintech and digital payments ecosystem.

What is a Payment Aggregator?

A Payment Aggregator (PA) is an entity that facilitates online payments by acting as an intermediary between customers and merchants. They enable businesses to accept various payment instruments from customers without the need for a separate payment integration system.

RBI In-Principle Approval (IPA)

• Xflow now authorised to act as a cross-border payment aggregator, facilitating digital payment flows for businesses engaged in international trade.
• The in-principle approval includes both export and import payment workflows.

Tech Integration

• Recently launched FX AI Analyst, an AI-driven tool that helps businesses:
• Track USD/INR trends,
• Make currency conversion decisions,
• Maximise FX gains.

Regulatory Landscape (PA-CB):

• Other fintechs with RBI in-principle PA-CB approvals include:
  • Skydo, BriskPe, PayPal, EximPe, and Wise.
  • Only six firms have full RBI PA-CB licences:
  • Adyen India, Amazon Pay India, Cashfree Payments, BillDesk, Pay10, and Worldline ePayments India.

BS

6. IRDAI to Mandate Internal Insurance Ombudsman in All Insurers to Strengthen Grievance Redressal Mechanism

Context:

The Insurance Regulatory and Development Authority of India (IRDAI) is set to introduce a new framework requiring all insurance companies (excluding reinsurers) with over three years of operations to appoint an Internal Insurance Ombudsman. The move is aimed at enhancing policyholder protection, building trust, and ensuring a faster, transparent, and fair resolution of customer grievances.

Applicability & Objective

• Applicable to all insurers except reinsurers with >3 years of operations.
• Seeks to establish a structured, internal grievance redressal system at the company level.
• Intended to complement external redressal bodies like the Insurance Ombudsman and the IRDAI Grievance Management System (IGMS).

Functions & Jurisdiction

• The Internal Insurance Ombudsman will:
  • Handle unresolved or escalated complaints.
  • Cover complaints up to ₹50 lakh in claim value.
• More than one ombudsman can be appointed with clearly defined jurisdiction to improve coverage and turnaround time.

Reporting Structure

• Functional Reporting: To the Board or the Policyholder Protection, Grievance Redressal & Claims Monitoring Committee (PPGR & CM).
• Administrative Reporting: To the MD/CEO of the insurance company.

Eligibility Criteria

• Experience: Minimum 20 years in the insurance sector.
• Must have held a position at least two levels below Board Director.
• Should not be currently or previously associated with the insurer or its group entities.
• Minimum entry age: 55 years.
• Term: 3 years fixed or until the age of 70, whichever is earlier.

When Can the Ombudsman Intervene?

• If a complaint has not been responded to within 30 days.
• If the customer has filed an appeal against a rejected or partially resolved complaint.

TH

7. SEBI Lifts Trading Ban on Jane Street

Context:

The Securities and Exchange Board of India (SEBI) has lifted trading restrictions on US-based high-frequency trading (HFT) firm Jane Street after the company deposited ₹4,844 crore into an escrow account. The action stems from SEBI’s ongoing investigation into alleged index manipulation on derivatives expiry days.

What is an Escrow Account?

• An escrow account is a secure financial mechanism where a neutral third party holds funds or assets on behalf of two or more parties.
• The funds are released only after pre-agreed conditions are fulfilled, ensuring trust and transparency in financial transactions.
• In this case, SEBI used the escrow to ensure compliance and financial accountability during the investigation process.

Implications

• Demonstrates SEBI’s proactive enforcement approach toward HFT and expiry-day market abuse.
• Highlights the regulator’s focus on deterrence through financial accountability and technological surveillance.
• The case sets a precedent for how SEBI may handle global trading entities operating in Indian markets under suspicion of misconduct.

8. Federal Bank Launches India’s First Biometric Authentication for E-Commerce Card Transactions

Context:

Federal Bank, in collaboration with fintech partners M2P and MinkasuPay, has introduced India’s first biometric authentication solution for e-commerce card transactions. This marks a significant leap in enhancing online transaction security and user convenience.

Key Features of the Biometric Authentication Solution:

• Biometric-Based Login: Customers can now authenticate purchases using fingerprint or face ID, replacing traditional OTP-based authentication.
• Rapid Transactions: The biometric method reduces transaction time to just 3–4 seconds, streamlining the checkout experience.
• Enhanced Security: Combines high-end security with simplicity, minimizing risks associated with OTP-based fraud.
• RBI Compliance: Fully adheres to RBI’s Two-Factor Authentication (2FA) guidelines.
• Fallback Mechanism: If biometric capture fails, the system defaults to OTP verification.
• Simple Onboarding: Customers provide one-time consent during checkout for biometric enrollment.
• Device Compatibility: Available for both Android and iOS users.
• Merchant Integration: Partner merchants can integrate the feature via a lightweight SDK.

About Federal Bank

• Founded: 1931
• Headquarters: Aluva, Kerala
• MD & CEO: KVS Manian
• Tagline: “Your Perfect Banking Partner”

Agriculture

1. How Smart Farming is Transforming Indian Agriculture

Context:

The Indian horticulture sector contributes about 33 per cent to the agriculture Gross Value Added (GVA), making a very significant contribution to the Indian economy. As per a IBEF 2024 report.

India’s Horticulture Sector and Agri-GVA

• Horticulture contributes 33% to agricultural Gross Value Added (GVA).
• India’s agriculture market is projected to reach $24 billion by 2025 (IBEF, 2024).
• Growth potential is limited unless soil health, water access, and cropping decisions improve.

Rising Climate Risks in Farming

• Smallholders face increased risks from erratic rainfall, temperature changes, and pest outbreaks.
• Seasonal uncertainty undermines income stability and food security.

Smart Farming Tools

Field-Level Digital Interventions

• Satellite imaging, sensors, and weather-linked advisories offer real-time, location-specific guidance.
• These tools replace traditional guesswork with data-driven decision-making.

Impact of Drones & IoT

• Drones deliver 30–35% yield gains and up to 70% savings in water and fertilisers.
• Tools like Farmonaut and Fasal IoT improve yields by 15–30% and save 30–40% water.

Satellite and Remote Sensing Applications

• NDVI monitors plant health.
• SAR detects waterlogging and dryness, even during monsoons.
• Insights enable same-day interventions.

Climate Mitigation

• Smart farming can reduce India’s GHG emissions by 100–150 million tonnes CO₂e by 2030.

The Soil Health Crisis

• Over 70% of India’s cultivated land is degraded (NBSS&LUP, 2023).
• 146.8 million hectares affected due to:
  • 29%: Soil lost to sea
  • 61%: Displaced
  • 10%: Silted in reservoirs
• Degradation caused by erosion, overuse of chemicals, and poor cropping patterns.

Solutions

• Regular soil testing, nutrient mapping, and targeted fertilisation improve yields sustainably.

Overcoming Barriers to Scale

Challenges

• High device costs, low digital literacy, and limited internet access in rural areas.

Solutions

• Leverage FPOs, cooperatives, and agri-extension workers.
• Promote low-cost kits, offline-compatible tools, and hands-on training.

BL

Facts To Remember

1. Sathiyan-Akash Clinch First WTT Tour Doubles Title

Indian paddlers G. Sathiyan and Akash Pal secured their maiden men’s doubles title on the World Table Tennis (WTT) Tour by defeating France’s Jules Rolland and Leo De Nodrest in straight games (11-9, 11-4, 11-9) at the WTT Contender Lagos.

2. Architect and Heritage Conservationist Tara Murali Passes Away

Tara Murali, noted architect and a prominent voice in heritage conservation, passed away at the age of 75 in Chennai. She was the wife of N. Murali, Director of The Hindu Group and President of The Music Academy.

3. Divyanshi Bhowmick Wins U-19 Gold at WTT Youth Contender

After her U-15 gold at the Asian Youth TT Championships in Tashkent, India’s Divyanshi Bhowmick continued her winning streak by bagging the U-19 girls’ singles title at the WTT Youth Contender in Almaty, Kazakhstan.

4. Canara Bank to Monetise Excess Priority Sector Loans

Facing pressure on interest margins due to falling rates, Canara Bank plans to sell excess priority sector loans in Q2 FY26. The bank had already earned ₹1,248 crore in commissions through such sales in the June 2025 quarter.

5. Government Amends Law to Curb Digital Film Piracy

To tackle growing digital piracy in cinema, the government has amended copyright laws to impose jail terms and fines of up to 5% of a film’s production cost on those caught recording or transmitting movies illegally.

6. Veteran Climate Negotiator Vijai Sharma Dies

Vijai Sharma, India’s former chief climate negotiator and one of the key architects of the 1997 Kyoto Protocol, passed away. He was instrumental in securing climate justice for developing nations during global climate talks.

7. Agricultural NPAs Rise Across PSBs in Q1 FY26

The first quarter of FY26 saw a noticeable rise in agricultural non-performing assets (NPAs) across public sector banks, especially among loans extended to small and marginal farmers, sparking concerns about credit quality and financial stress in the rural economy.