Daily Current Affairs (DCA) 30 April, 2025

Daily Current Affairs Quiz
30 April, 2025

International Affairs

1. India-Canada Relations

Context:

Prime Minister Narendra Modi recently congratulated Canadian Prime Minister Mark Carney on the re-election of the Liberal Party in Canada, emphasizing shared democratic values and a commitment to the rule of law. This gesture marks a rare positive exchange between New Delhi and Ottawa, signaling a potential reset in bilateral relations after more than two years of tension under Justin Trudeau’s leadership.

• Mr. Modi acknowledged the importance of people-to-people ties and expressed hope for strengthening the India-Canada partnership.
• The resignation of NDP leader Jagmeet Singh and the poor electoral showing of the party, with its pro-Khalistan sympathies, further create a favorable environment for restored relations.

Political Dynamics Shaping India-Canada Relations

Mark Carney’s rise to leadership comes amid heightened tensions between the two nations following the June 2023 killing of Khalistani separatist Hardeep Singh Nijjar. Canada’s accusations against Indian government agents led to tit-for-tat expulsions of diplomats, straining relations.

• Mr. Carney’s condemnation of the Pahalgam terrorist attack signals a shift toward pragmatic diplomacy.
• Diplomatic exchanges are already in motion, with India forwarding paperwork for Dinesh Patnaik as its next High Commissioner to Canada.

Opportunities for Trade and Security Engagement

The possibility of reviving the India-Canada Comprehensive Economic Partnership Agreement (CEPA), suspended amid the Nijjar investigation, has captured attention.

• Analysts view Carney’s leadership as an opportunity to rebuild trust and focus on economic and security partnerships.
• India’s willingness to engage constructively with Carney’s government opens doors for cooperation, especially on issues of trade, security, and economic integration.

G7 Summit and India’s Role in Global Affairs

Prime Minister Carney’s upcoming G7 Summit in Alberta is another pivotal moment. Speculation surrounds whether Carney will invite India as a special guest, further solidifying India’s role in global economic and security discussions.

• Carney’s focus on diversifying international relations reflects his desire to foster closer ties with like-minded countries, including India.

Expert Views on the Path Forward

Former High Commissioner to Canada Ajay Bisaria believes that Carney has a chance to “fix what Trudeau broke,” and that both nations should prioritize rebuilding trust and boosting economic ties. David McKinnon, a former diplomat, suggests that despite the seriousness of the Nijjar case, it should not dominate the entirety of Canadian foreign policy.

• McKinnon advocates for a pragmatic approach, focusing on the global economic and security landscape, which makes re-engagement with India crucial.

Carney’s Leadership and Canada’s International Strategy

Carney’s leadership is partly a response to backlash against U.S. economic policies under Trump, and his campaign promises emphasized diversifying ties with countries like India.

• Carney’s commitment to building a stronger commercial relationship with India aligns with the broader goal of fostering multilateral and diversified international partnerships.

TH

2. U.S. Intellectual Property (IP) Rights

Context:

India has been placed again on the U.S. Trade Representative’s (USTR) 2025 Priority Watch List due to ongoing concerns over the protection and enforcement of intellectual property (IP) rights.

• Challenges Noted: Despite efforts to improve the IP regime, India’s enforcement of IP remains inconsistent, with significant challenges regarding patents and the interpretation of the Indian Patents Act.
• Specific Concerns: The report highlights issues such as unauthorised file sharing, signal theft by cable operators, and problems in protecting trade secrets as ongoing points of contention for stakeholders.

What is U.S. Intellectual Property Rights?

Patents

• Purpose: Protect new inventions (products, processes, or designs).
• Rights Granted: Exclusive right to prevent others from making, using, selling, or importing the invention.
• Authority: Issued and managed by the U.S. Patent and Trademark Office (USPTO).

Copyrights

• Purpose: Protect original works of authorship (e.g., literary, musical, artistic).
• Rights Granted: Control over reproduction, distribution, public performance, and display.
• Authority: Registered through the U.S. Copyright Office (Library of Congress).

Trademarks

• Purpose: Protect brand identity and distinguish goods/services in the marketplace.
• Rights Granted: Exclusive right to use symbols, names, or logos identifying a brand.
• Authority: Registered with the USPTO.

Trade Secrets

• Purpose: Safeguard confidential business information with economic value.
• Protection Mechanism: Maintained through reasonable efforts to preserve secrecy (e.g., NDAs, access controls).
• No Formal Registration: Protection depends on maintaining confidentiality.

Other Forms of IP Protection

• Includes:
  • Industrial designs
  • Right of publicity (commercial use of personal identity)
  • Plant variety protections

Significance of IP Rights

• Encourages Innovation: By granting exclusive rights, IP incentivizes R&D and creative efforts.
• Supports Economic Growth: Enhances competitiveness, protects brand value, and fosters job creation.
• Government Role: Active enforcement of IP laws both domestically and globally to deter infringement and protect U.S. interests.

Inconsistent IP Progress in India

• Patent Issues: The vagueness in the interpretation of patent laws continues to be a major concern, particularly for businesses operating in technology and pharmaceuticals sectors.
• IP Enforcement: Although efforts to strengthen the operations of the IP Office have been noted, overall enforcement remains insufficient.

Broader Global Context

• Other Countries on the List: In addition to India, countries like China, Russia, Indonesia, and Argentina also appear on the Priority Watch List due to similar IP protection challenges.
• Global Impact: The report’s concerns are especially pertinent as the U.S. seeks to negotiate trade deals and address tariffs and non-tariff barriers with several countries.

India’s High Customs Duties

• IP-Intensive Products: India maintains high customs duties on IP-intensive products such as ICT products, medical devices, pharmaceuticals, and solar energy equipment, further complicating the IP landscape.
• Commercial Violations: Reports of unauthorised photocopying, piracy in video games, and academic book reprints continue to be widespread, exacerbating concerns over IP enforcement.

Uncertainty for Businesses

• Legal Protection for Trade Secrets: There is significant uncertainty among companies regarding legal mechanisms to protect trade secrets in India, which could influence foreign investments and international trade negotiations.

TH

National Affairs

1. India’s Plastic Waste Crisis

Context:

India is now the world’s largest plastic polluter, emitting 9.3 million tonnes (Mt) annually, accounting for nearly 20% of global plastic emissions. Plastic emissions are defined as waste (debris or burnt material) that moves from managed or semi-managed systems into the uncontrolled environment.

Evidence of Underreporting

• India’s waste data is significantly underestimated due to:
  • Exclusion of rural waste
  • Informal sector recycling
  • Open burning of uncollected waste
• Official rate: 0.12 kg per capita per day
  Realistic rate: 0.54 kg per capita per day
• Dumpsites outnumber sanitary landfills by 10:1

Data Gaps and Policy Blind Spots

• Waste generation data is sourced from municipal bodies via SPCBs and PCCs, but no methodology or audits are disclosed.
• Rural India, governed by Panchayati Raj institutions, is largely missing from official waste data.

Constitutional and Legal Framework

• The Supreme Court has affirmed that environmental protection is not just regulatory—it’s a constitutional imperative tied to fundamental rights.
• There is an urgent need for:
  • Reliable, granular waste generation data
  • Public disclosure of methodology
  • Third-party scrutiny of data and systems

Infrastructure & Institutional Fixes

• Every urban and rural local body must be mandatorily linked to:
  • Material Recovery Facilities (MRFs)
  • Waste stream recyclers
  • EPR (Extended Producer Responsibility) kiosks
  • Sanitary landfills
• Geotagging of infrastructure is recommended for tracking and transparency

Operationalising EPR Effectively

• PIBOs (Producers, Importers, Brand Owners) must:
  • Set up collection kiosks across all local bodies
  • Employ workers to segregate and manage waste
  • Align kiosk setup with local waste volumes, geography, and access
• This will integrate EPR with grassroots waste collection and segregation

Tanneries Case in Tamil Nadu

• On January 31, 2025, the Supreme Court issued a continuing mandamus to enforce cleanup of Vellore tanneries pollution.
• A compliance committee was formed with a four-month timeline.
• The court stated: “Justice will only be done when compliance with orders is ensured in a time-bound manner.”

Legal Principle: Polluter Pays

• Court reiterated that the polluter pays principle entails:
  • Absolute liability for environmental damage
  • Compensation to affected individuals and costs of environmental restoration
• The Government Pay Principle was invoked, making the state liable to compensate victims and recover from polluters.

TH

2. Tree Plantation and Carbon Sequestration in India

Context:

India’s forest and tree cover stands at 25.17%, falling short of the 33% target outlined in the National Forest Policy (1988). Amid accelerating climate change, expanding tree cover is vital to:

• Sequester carbon and mitigate emissions
• Restore degraded ecosystems
• Support rural livelihoods
• Enhance climate resilience

Role of Tree Plantations in Climate Mitigation

• Act as natural carbon sinks by absorbing atmospheric CO₂
• Improve soil health, groundwater recharge, and ecosystem resilience
• Protect against flooding, drought, and soil erosion

Carbon Sequestration

Definition
Carbon sequestration is the process of capturing and storing carbon in a carbon pool to reduce the amount of carbon dioxide (CO₂) in the atmosphere. It plays a vital role in mitigating climate change.

Types of Carbon Sequestration
There are two main types:

Biologic Carbon Sequestration (Biosequestration)

• Natural Process: Occurs as part of the Earth’s carbon cycle.
• Enhancement by Humans: Through practices like carbon farming, reforestation, and improved land use.
• Mechanism: CO₂ is captured via biological, chemical, and physical processes (e.g., photosynthesis, soil storage).
• Goal: Increase carbon stored in plants, soil, and oceans.

Geologic Carbon Sequestration (Carbon Capture and Storage – CCS)

• Artificial Process: Uses technology to capture CO₂ emissions from power plants or industrial processes.
• Storage: CO₂ is compressed and injected into underground geological formations or beneath the sea bed.
• Purpose: Prevent CO₂ from entering the atmosphere.

Importance

• Reduces atmospheric CO₂, a major greenhouse gas.
• Supports global climate goals and carbon neutrality targets.
• Complements emission reduction strategies in agriculture, industry, and energy sectors.

Key Government Initiatives

• National Agroforestry Policy (2014): Promotes tree planting on private lands to reduce dependence on forests
• Green India Mission (GIM): Contributed to a 0.56% increase in forest cover (2017–2021)
• Trees Outside Forests in India (TOFI) Program: Encourages farmer and community participation in afforestation

Corporate Participation and Strategic Shifts

• Industries (automobile, cement, energy) undertake afforestation under CSR and carbon offset strategies
• Carbon Border Adjustment Mechanism (EU, from 2026) to levy tariffs on carbon-intensive imports
• Indian firms are:
  • Investing in carbon-offset plantations
  • Adopting green supply chains and sustainable forestry
  • Earning carbon credits via Verified Carbon Standard (VCS) and Clean Development Mechanism (CDM)

Economic and Social Co-Benefits

• Tree plantations generate millions of rural jobs
• Agroforestry increases farm incomes by 20–30% (ICAR study)
• Provides timber, fruits, medicinal plants, and drought resilience
• Empowers communities via:
  • Capacity building
  • Financial incentives
  • Market access for forest-based products

Policy Gaps and Recommendations

Challenge	Recommendation
High cost of global carbon credits (€83/t in EU ETS)	Promote domestic afforestation as cost-effective alternative
Lack of national carbon trading policy	Establish a carbon credit registry and regulatory framework under Article 6
Limited private sector participation	Offer financial incentives and streamline approval processes

The Road to Net-Zero by 2070 India’s path to carbon neutrality must include:

• Scalable tree plantations
• Transparent carbon trading systems
• Public-private-community partnerships

Inaction risks environmental degradation, export losses, and economic instability. Strategic afforestation is not just climate policy—it’s economic policy.

TH

3. Study on India’s Public-Funded R&D Organisations

Context:

A study commissioned by the Office of the Principal Scientific Adviser and executed by the Confederation of Indian Industry (CII) and the Centre for Technology, Innovation, and Economic Research reveals significant gaps in India’s public-funded Research and Development (R&D) sector:

• Incubation Support: Only one in four R&D organizations provides incubation support to start-ups.
• Support for Deep Tech: Just one in six organizations supports deep tech start-ups.
• International Collaboration: Only 15% of the labs collaborate with industry overseas.
• External Engagement: Around 50% of labs open their facilities to outside researchers and students.

R&D Expenditure and Institutional Performance

The study highlights financial and structural trends in R&D spending:

• The Union government spent ₹55,685 crore on R&D in 2020-21. Excluding strategic sectors like defence, atomic energy, and space, key scientific agencies spent ₹24,587 crore.
• 25% of institutions reported spending 75%-100% of their budgets on R&D.
• Institutes with lower R&D expenditure were primarily from ICAR, CSIR, ICMR, Ministry of AYUSH, and DST.

Staffing Trends in R&D Institutions

The study notes staffing changes in India’s R&D landscape:

• Permanent staff numbers have declined in several labs, with an increased reliance on contractual staff.
• The share of young researchers in the workforce increased to 58% in 2022-23, up from 54% in the previous year.

Mandate Review and Shift Towards Innovation

The study suggests a shift in the role of research institutions:

• Dr. Ajay Sood, Principal Scientific Adviser, highlighted the trend of research institutions transitioning from traditional scientific inquiry to innovation centres.
• The report advocates that every lab should review and update its mandates to better align with the evolving needs of innovation and product development.

Call for Improvements and Structural Changes

The study emphasizes the need for closer analysis and improvement in the R&D sector, particularly in fostering a more collaborative, industry-oriented approach. Institutions are encouraged to focus on fostering innovation, external partnerships, and start-up incubation.

TH

Science & Tech

1. Pegasus Spyware

Context:

The Supreme Court, during a hearing on April 30, 2025, questioned objections to the use of Pegasus spyware by the Indian government, asking whether its deployment against anti-national elements could be considered unlawful if done for national security purposes.

What is Pegasus?

Pegasus is a powerful spyware developed by NSO Group, an Israeli cyber-arms company. It can covertly and remotely infect mobile devices (iOS and Android) without the user’s knowledge.

• Capabilities:
  • Read text messages and emails
  • Monitor calls and chats
  • Access passwords, microphones, and cameras
  • Track GPS locations
  • Extract data from apps
• Name Origin: Derived from Pegasus, the winged horse in Greek mythology.

Purpose vs. Misuse

• Marketed for fighting crime and terrorism
• However, investigations show usage by governments to surveil:
  • Journalists
  • Lawyers
  • Political dissidents
  • Human rights defenders

Installation Method

• As of March 2023, Pegasus could infect iPhones (up to iOS 16.0.3) using zero-click exploits, requiring no user interaction.
• Earlier versions used malicious links to jailbreak devices via zero-day vulnerabilities.

Discovery and Technical Exposure

• First Identified: August 2016
• Ahmed Mansoor, a UAE human rights activist, received a suspicious link. He forwarded it to Citizen Lab, which collaborated with Lookout Security to analyze it.
• The link exploited three unknown vulnerabilities to install Pegasus, revealing:
  • NSO Group’s direct involvement
  • Broad data extraction capabilities
  • Exploitation dating back to iOS 7 (2013)

TH

2. Starlink in India

Context:

Starlink, powered by SpaceX, could transform digital connectivity in rural India, offering high-speed, low-latency internet where terrestrial networks are inadequate. By bridging the rural-urban digital divide, it supports education, telemedicine, e-governance, and economic inclusion. However, its rollout is entangled in India’s layered legal and regulatory ecosystem.

Regulatory Frameworks Governing Starlink

To operate in India, Starlink must comply with a multitude of laws and regulatory bodies:

• Indian Telegraph Act, 1885: Requires a VSAT licence; Section 4 grants the government telecom control, Section 7 allows it to frame related rules.
• Telecom Regulatory Authority of India Act, 1997: Under Section 11, TRAI advises on spectrum pricing, licensing norms, and competitive practices.
• Telecommunications Act, 2023: Governs satellite spectrum allocation, including Ku and Ka bands. Mandates adherence to security and pricing norms.
• Satellite Communications Policy, 2000 & IN-SPACe: Starlink must coordinate with ISRO and align with national space priorities.
• IT Act, 2000 & Digital Personal Data Protection Act, 2023: Set obligations for data encryption, storage, and cybersecurity, with possible real-time surveillance directives from security agencies.

Why Starlink Hasn’t Launched Yet

Despite its potential, Starlink’s entry is delayed due to:

• Licensing hurdles: VSAT approvals demand complex technical and financial reviews.
• Spectrum uncertainty: TRAI and DoT still negotiating pricing for satellite bands.
• National security clearance: MHA scrutinizes foreign ownership and data flows.
• Space coordination: Requires orbital slot clearance and operational compliance with IN-SPACe.

These delays inflate costs, impact investor sentiment, and stall rural connectivity projects.

Security Concerns and Misuse Reports

Incidents of alleged misuse of Starlink terminals have triggered heightened scrutiny. Regulators now demand:

• Real-time tracking capabilities
• Lawful interception tools
• User authentication protocols

Such scrutiny underscores India’s security-first approach in foreign tech deployment, especially where cross-border data flows and surveillance are involved.

Anticipated Starlink Pricing in India

While official pricing is unannounced, expectations include:

• Premium service tiers, driven by LEO satellite deployment costs and regulatory fees
• High upfront hardware cost for user kits (dish, router)
• Potentially unaffordable monthly plans for rural users without subsidies

Initially, Starlink may target enterprises, schools, hospitals, and affluent rural households, with broader affordability possible later through public-private collaboration.

Broader Implications for India

Starlink’s India experience reveals:

• The need for proactive tech-policy dialogue
• Tension between innovation and national sovereignty
• Importance of a transparent, forward-looking regulatory regime for spectrum and digital infrastructure
• A reminder that digital equity is as much a policy issue as a technological one

TH

3. Monsoon Variability and Marine Productivity in the Bay of Bengal

Context:

A recent study published in Nature Geoscience explores how fluctuations in the Indian Summer Monsoon over the past 22,000 years have influenced marine productivity in the Bay of Bengal. The study, led by Kaustubh Thirumalai from the University of Austin, provides critical insights into how strong and weak monsoons impact the marine ecosystem, particularly plankton growth, which forms the foundation of the marine food chain.

Influence of Monsoon on Marine Productivity

• Monsoon Strength and Marine Life: The study reveals that both strong and weak monsoons cause disruptions in ocean mixing, significantly affecting the availability of nutrients in surface waters.
• Impact on Marine Life: These disruptions lead to a 50% reduction in food for marine life in the surface waters, as extreme monsoon conditions hinder the vertical movement of nutrient-rich water from the deep ocean to the surface.

Importance of the Bay of Bengal

Despite covering less than 1% of the world’s ocean area, the Bay of Bengal is responsible for nearly 8% of global fishery production. The nutrient-rich waters support densely populated coastal communities that rely heavily on fisheries for food and income.

Food Security Risks for Coastal Communities

• Impact on Coastal Communities: A decline in ocean productivity threatens fish stocks, jeopardizing food security for millions of people living along the Bay of Bengal.
• Climate Change Threat: The study highlights the risk of significant disruption to the monsoon under human-caused warming, with potential long-term impacts on both marine ecosystems and food security.

Comparison with Modern Data and Climate Projections

By comparing ancient patterns with modern ocean data and climate model projections, the study identified worrying similarities, suggesting that future monsoon variability could further challenge marine productivity and exacerbate the impacts of climate change.

TH

4. Amazon Launches First 27 Satellites for Kuiper Internet Constellation

Context:

Amazon successfully launched its first 27 satellites for the Kuiper broadband internet constellation on April 24, 2025, from Cape Canaveral Space Force Station, Florida. This marks the beginning of a major push to build a global internet network.

• Rocket Used: The satellites were deployed using an Atlas V rocket from United Launch Alliance (ULA), a joint venture between Boeing and Lockheed Martin.
• Mission Timeline: Amazon has ambitious plans to deploy a total of 3,236 satellites for Project Kuiper, aiming to provide global broadband internet service, competing directly with SpaceX’s Starlink.

Project Kuiper Overview

• Goal: Project Kuiper, a $10 billion initiative launched in 2019, aims to provide high-speed internet services to underserved regions globally, particularly rural areas where connectivity is lacking or nonexistent.
• Competitive Landscape: This venture pits Amazon against SpaceX’s Starlink, as well as traditional telecom giants like AT&T and T-Mobile, which already provide broadband services.

Delays and Timeline

• Initial Delays: The mission faced several delays, with the initial launch attempt scheduled for April 9, 2025, being scrubbed due to bad weather. The first batch was eventually sent into orbit on April 24, 2025.
• FCC Deadline: Amazon has until mid-2026 to deploy half of its constellation (1,618 satellites) to meet U.S. Federal Communications Commission (FCC) requirements. However, analysts suggest that Amazon may seek an extension due to the slower-than-expected start.

Future Plans and Expectations

• Service Launch: If the deployment progresses as planned, Amazon expects to begin delivering broadband services to customers later in 2025.
• Upcoming Missions: ULA is expected to launch up to five more Kuiper missions in 2025, with continued satellite deployments to build the constellation.

Implications for Global Internet Connectivity

• Target Audience: The Kuiper project targets businesses, consumers, and governments, with a focus on rural and underserved areas.
• Industry Impact: The launch strengthens Amazon’s position in the growing space-based internet market, creating a competitive challenge for SpaceX’s Starlink, which has already established a strong presence in the sector.

TOI

Banking/Finance

1. India’s Microfinance Crisis: Non-Performing Assets Surge

Financial Impact

• Increase in NPAs: In absolute terms, NPAs in the sector reached a staggering ₹61,000 crore by March-end 2025, a marked increase from ₹38,000 crore in the previous year.
• Sectoral Strain: The rise in NPAs highlights the financial strain on microfinance institutions (MFIs), which have been struggling to maintain their lending models and recover loans.

Key Factors Contributing to the Crisis

• Decline of Joint Liability Lending Model: The joint liability-based lending model, once a cornerstone of microfinance, appears to be crumbling, contributing significantly to the deterioration in repayment rates.
• Economic Pressure: Borrowers, particularly from rural and low-income segments, are facing heightened financial pressures, which are impacting their ability to repay loans, thereby escalating delinquency rates.

Implications for the Microfinance Sector

• Potential Collapse of Lending Models: The significant rise in NPAs and the collapse of traditional lending models are raising concerns about the long-term sustainability of India’s microfinance industry.
• Impact on Borrowers: The crisis also threatens to hinder access to crucial financial resources for marginalized communities that rely on microfinance for livelihood support and economic empowerment.

Moving Forward

• Reforms and Solutions: Experts suggest that urgent reforms are needed to address the growing crisis, including improvements in lending models, better repayment collection mechanisms, and enhanced support for borrowers facing financial distress.

TET

2. Sebi Warns Investors on Risks of Opinion Trading Platforms

Context:

The Securities and Exchange Board of India (Sebi) has issued a cautionary statement regarding opinion trading platforms, which are online services where individuals place bets or trades based on the outcome of future events. Sebi emphasized that these platforms are not recognized or regulated by the board and do not fall under its investor protection scheme.

Nature of Opinion Trading

• Opinion Trading: Involves participants making predictions (bets) on the outcome of future events (e.g., sports results, political elections). If a participant’s prediction is correct, they receive a payout.
• These platforms use terms like profits, stop loss, and trading, which are typically associated with securities trading. However, Sebi clarified that opinion trading does not qualify as trading in securities.

Legal Implications

• Sebi stressed that such platforms cannot be recognized as stock exchanges because they are neither registered nor regulated by Sebi.
• In cases where the opinions traded resemble securities, the trading on these platforms would be considered illegal.
• The stock exchanges have been directed to take appropriate actions against such platforms if they violate regulations.

Popular Opinion Trading Platforms in India

• Some of the well-known platforms operating in India include Probo, MPL Opinio, PlayerzPot, Real11, and Big Cash.
• These platforms allow users to engage in bets on yes/no propositions, making predictions on various events, with payouts awarded based on the accuracy of the predictions.

Investor Protection and Risks

• Sebi made it clear that no investor protection mechanisms exist for those participating in these platforms under the securities market regulations.
• Investors are advised to exercise caution as the lack of regulatory oversight could expose them to financial risks without the safety nets provided by regulated investment platforms.

Global Context

• International Practices: While opinion trading platforms are operational globally, their regulatory status varies:
  • In some US states, a regulated version of opinion trading is allowed.
  • In the UK, such platforms are considered gambling and are subject to appropriate regulations under that framework.

TET

3. IndusInd Bank CEO Sumant Kathpalia Resigns Amid ₹2,000 Crore Derivatives Loss

Context:

Sumant Kathpalia, MD & CEO of IndusInd Bank, resigned with immediate effect on Tuesday, citing “moral responsibility” for accounting lapses tied to a ₹2,000 crore loss from the bank’s derivatives portfolio. His resignation follows the submission of an investigative report by Grant Thornton, which was appointed to probe the discrepancies and examine the conduct of key executives.

Chain Reaction of Exits

• Deputy CEO Arun Khurana also resigned a day earlier in connection with the same issue.
• Kathpalia’s resignation letter referenced “acts of commission and omission” that had come to light, prompting his decision to step down.

Interim Management Plan

• The bank’s board has approached the Reserve Bank of India (RBI) for approval to form a “Committee of Executives” (COE) to manage CEO responsibilities temporarily.
• A similar model was adopted by Tamilnad Mercantile Bank last year during a CEO vacancy.

Derivatives Portfolio Lapses

• The irregularities in the derivatives portfolio were discovered on March 11, 2025.
• The issue has triggered internal reviews and regulatory scrutiny, affecting both leadership and investor confidence.

Market Reaction

• The bank’s share price has seen significant volatility since the disclosure of the derivatives discrepancies in March 2025.
• The departure of top management and the scale of financial impact have raised governance and risk oversight concerns.

Regulatory Outlook

• Sebi and RBI may initiate closer scrutiny of derivative exposures across the banking sector following this incident.
• Grant Thornton’s findings are expected to inform future compliance and governance reforms at IndusInd Bank.

TET

4. India’s Private Sector Capex to Dip 25% in FY26

Context:

India’s private sector capital expenditure (capex) is projected to drop nearly 25% in FY26 to ₹4.89 trillion, down from a post-pandemic high of ₹6.56 trillion in FY25, according to the first-of-its-kind survey by the National Statistics Office (NSO). Despite the decline, the capex for FY26 is still above FY24 levels (₹4.22 trillion), indicating cautious optimism.

5. Finance Ministry Monthly Economic Report

Context:

The Finance Ministry, in its March 2025 Monthly Economic Review, warned that prolonged global uncertainties could negatively impact India’s private capital formation and economic growth outlook for FY26. The perception of uncertainty, more than trade disruptions themselves, may cause companies to delay investment decisions.

Urging Urgent Action

• The review called on private sector leaders and policymakers to prevent a cycle where uncertainty feeds upon itself.
• It emphasized that “action and execution have greater impacts now”, stating this is an opportune moment for private players to invest in product quality and differentiation as “easy pickings” fade.

Private Capital Formation as a Growth Engine

• Private investment is critical to sustaining long-term growth, the ministry said.
• It proposed that public policy and regulatory nudges can help facilitate private sector investment.
• Removal of compliance, inspection, and logistics hurdles was flagged as urgent to restore investor momentum.

Strategic Recommendations

• Diversification of trade markets to reduce dependence on volatile global supply chains.
• Seize opportunities in manufacturing and exports through strategic trade negotiations and domestic policy reforms.
• Push for reduction in public and state-level debt burdens to unlock fiscal space for private sector investment.

Inflation and Price Outlook

• The report noted:
  • Falling food prices and crude oil softness are improving the inflation outlook.
  • There’s a sharp decline in inflation expectations, possibly paving the way for rate cuts.
  • Despite this, geopolitical tensions may still disrupt supply chains or spike prices, demanding close monitoring.

Summary of Finance Ministry’s Message

• India remains resilient, but capital raising and capex momentum could suffer if uncertainty continues.
• The private sector must adapt by focusing on quality, innovation, and market diversification.
• The government’s role is to provide a conducive environment through reforms, debt reduction, and policy clarity.

BS

6. RBI Launches Three Key Surveys to Aid Monetary Policy Decisions

Context:

The Reserve Bank of India (RBI) launched three important surveys on Tuesday to gather critical macroeconomic inputs for shaping its monetary policy decisions. These surveys are timed to support its bimonthly monetary policy reviews, of which there are six in a financial year.

Focus Areas of the Surveys

• Urban Consumer Confidence Survey
  • Seeks qualitative feedback from urban households.
  • Covers:
    • General economic conditions
    • Employment scenario
    • Price levels
    • Household income and spending patterns
• Inflation Expectations Survey (details to be released later)
  • Gathers data on future inflation expectations of households—vital for policy stance on interest rates.
• Third Survey (not detailed in the snippet but typically includes the Industrial Outlook Survey or Professional Forecasters Survey)

Significance for Policy

• The surveys enhance RBI’s understanding of real-time economic sentiment.
• Inputs help RBI assess consumer confidence, inflation expectations, and overall macroeconomic health.
• These tools aid in setting the repo rate, inflation targeting, and other monetary tightening or easing decisions.

BS

7. RBI Optimistic on US Tariffs Impact

Context:

RBI Governor Sanjay Malhotra and Deputy Governor Rajeshwar Rao told the Public Accounts Committee (PAC) that they are “optimistic” about the impact of US tariffs on India. The RBI believes that in the long run, India could benefit from declining US-China trade ties as global supply chains diversify. The central bank is still assessing short-term impacts but sees no major threat to the Indian economy.

Focus on Banking Reforms

• The PAC’s overarching agenda was banking reforms, with two key meetings held:
  • One with top RBI officials
  • One with Department of Financial Services (DFS) and MDs of major nationalised banks (SBI, Indian Bank, Canara Bank, IDBI, PNB)

Key Discussions and Highlights

• Unregulated Lending:
  • The Banning of Unregulated Lending Activities Bill may be introduced in the next Parliament session to curb unauthorized lending by individuals or entities not regulated by RBI or any statutory body.
• 2018 SBI Recapitalisation Query:
  • PAC questioned DFS over a ₹8,000 crore infusion into SBI in 2018 despite the bank not requesting funds, a concern also flagged by the CAG in 2023.
• Banking Access in Remote Areas:
  • PAC raised the lack of bank branches in Naxal-affected and northeastern states.
  • Government and banks assured that banking access will be expanded to ensure a branch within 5 km in these areas within one year.
• Non-Performing Assets (NPAs):
  • PAC was informed that NPAs are on the decline.
  • Recommendations included:
    • Early warning systems for large defaulters
    • Categorisation of defaulters
    • Encouragement for banks to adopt an entrepreneurial rather than bureaucratic mindset

Strategic Direction

• The discussion indicates a tightening regulatory stance on informal lending and a push for greater financial inclusion.
• RBI’s positive long-term trade outlook reflects confidence in India’s potential to gain global market share.

BS

8. NPCI Tightens UPI API Guidelines to Cut Outages, Improve Transaction Speed

Context:

The National Payments Corporation of India (NPCI) has issued two new circulars aimed at enhancing the performance and reliability of the Unified Payments Interface (UPI). These updates focus on reducing API response times and curbing the misuse or overuse of API calls, with implementation mandated by June 16, 2025.

Faster Response Times for Key UPI APIs

NPCI has directed banks to improve response times for four critical APIs:

• Check Transaction Status:
  • Old: 30 seconds
  • New: 10 seconds
• Transaction Reversal (Debit/Credit):
  • Old: 30 seconds
  • New: 10 seconds
• Request and Response Pay:
  • Old: 30 seconds
  • New: 15 seconds
• Validate Address:
  • Old: 15 seconds
  • New: 10 seconds

These changes are expected to:

• Reduce retry delays for failed transactions
• Improve customer experience, especially in low-connectivity zones
• Minimize system strain caused by excessive transaction verification attempts

Controlling Misuse of ‘Check Transaction Status’ API

NPCI’s second circular addresses the overuse of API calls which often leads to system congestion:

• Banks can initiate a maximum of three ‘check status’ calls within the first two hours of a transaction.
• The first check must be initiated after 90 seconds of transaction authentication (subject to revised timer window of 45–60 seconds in updated norms).
• If an error from a predefined list is received, banks must treat the transaction as failed and avoid further status checks.

Why This Matters

• Previously, banks could bombard systems with repeat queries, worsening network slowdowns.
• These controls will reduce backend load, particularly during high-volume traffic or outages.

Industry Concerns and Next Steps

• Fintech players have welcomed the move but seek clarity on:
  • Applicability of reduced response times for high-risk transactions
  • Potential need for code-level updates in transaction categorization libraries
• NPCI and banks are collaborating to ensure seamless implementation before the June 16 deadline.

BS

9. SEBI Proposes Framework for Orderly Wind-Down of KYC Registration Agencies

Context:

The Securities and Exchange Board of India (SEBI) has proposed a new framework to ensure the orderly winding down of critical services by KYC Registration Agencies (KRAs) in scenarios such as:

• Insolvency
• Business cessation
• Regulatory action

Key Goal:

• To protect investor interests and ensure uninterrupted KYC services even during transitions.

Core Principles of the Proposal

SEBI’s consultation paper highlights the need to:

• Guarantee continuous KYC-related services for market participants
• Protect sensitive investor KYC data
• Ensure compliance with statutory and contractual obligations
• Enable a smooth transfer of operations to a designated successor KRA

Key Features of the Proposed Framework

• Standard Operating Procedures (SOPs): KRAs will be required to establish comprehensive SOPs for potential wind-down scenarios.
• Scenario Mapping: Agencies must identify and plan for various contingencies such as legal suspension, loss of license, or operational failure.
• Successor Transition: SEBI mandates that the framework include provisions for seamless transfer of infrastructure, data, and operations to a successor KRA with minimal disruption.

KRA Responsibilities

KRAs will be responsible for:

• Finalizing the detailed operational and technical protocols
• Coordinating with SEBI and market infrastructure institutions
• Implementing preventive and recovery measures to manage service continuity

BS

10. RBI’s Bond Purchases to Drive Lower Lending Rates and Increased Liquidity

Context:

The Reserve Bank of India (RBI) plans to buy ₹1.25 trillion in government bonds, coupled with a ₹1.5 trillion dividend transfer to the Union government in May. This will likely increase surplus liquidity in the banking system, expected to reach ₹5 trillion by June 2025.

Impact on Lending Rates

• Banks poised to lower lending rates: As liquidity surges, banks will have more funds available to lend, which could lead to a reduction in lending rates—a shift that has been difficult for banks until now due to earlier liquidity constraints.

Liquidity Conditions and Market Response

• RBI’s proactive approach: RBI’s actions are designed to ensure that banks can pass on rate cuts without negatively affecting their margins. The central bank’s efforts are based on feedback from banks, which indicated that surplus liquidity was necessary to facilitate lending rate reductions.
• Interbank funding costs: The overnight call money rate, which is a key indicator of interbank funds, dropped to 5.87%, below the repo rate of 6%, and is expected to decrease further to 5.75%.

Economists’ View on RBI’s Bond Purchases

• Unprecedented bond purchases: Economists have described RBI’s bond-buying spree of ₹5.3 trillion in 2025 as unprecedented, pointing out that previous large purchases took over six quarters, especially during the post-COVID period.

Impact on Retail Lending

• MCLR adjustments: With increased liquidity, banks are expected to reprice retail loans more quickly, thus reducing the marginal cost of lending rates (MCLR). Many retail and small business loans are tied to MCLR, meaning that the influx of liquidity could directly lead to lower interest rates for consumers.

11. Sebi Extends Implementation Deadline for Optional T+0 Settlement Cycle

Context:

SEBI has extended the implementation timeline for the optional T+0 (same-day settlement) cycle for qualified stock brokers (QSBs) to November 1, 2025, from the initial deadline of May 1, 2025.

Reason for extension: The extension was granted based on feedback from QSBs, along with consultations with stock exchanges, clearing corporations, and depositories, to ensure smoother implementation.

T+0 Settlement Cycle

A T+0 settlement cycle means that a stock trade is settled on the same day it’s executed. This means that the buyer receives the shares and the seller receives payment on the same trading day. Previously, India used a T+1 system where settlement occurred the next business day. 

• T+0 vs. T+1: T+0 refers to a trade being settled on the same day it’s made (T), while T+1 means it’s settled on the next business day after the trade. 
• Mechanism: In T+0, the transfer of shares to the buyer and funds to the seller happens within the same day. 

Implementation Challenges

• Operational challenges: Most major brokers are operationally unprepared for offering the same-day settlement cycle, as their risk management and order management systems are not designed to handle the scale required for such a cycle.
• Few brokers offering T+0: As of now, very few brokers offer the T+0 settlement option to clients, primarily due to system limitations.

Background on T+0 Settlement Cycle

• Introduction of T+1 cycle: India became the first country to implement the T+1 settlement cycle for all listed stocks on January 27, 2023.
• T+0 settlement expansion: On March 28, 2024, SEBI introduced the optional T+0 settlement cycle, initially applicable to 25 scrips, with plans to expand it to the top 500 stocks by January 31, 2025.
  • The expansion will occur gradually, starting with stocks from the bottom 100 companies and adding 100 companies every month.

Impact on QSBs and Investor Participation

• QSB requirements: QSBs must implement the necessary systems and processes to enable seamless participation in the optional T+0 settlement cycle.
• Client eligibility: Investors wishing to trade under the T+0 cycle must engage with brokers who are equipped to offer this feature.

Industry Implications

• System and process readiness: SEBI’s decision to extend the deadline aims to ensure that brokers have adequate time to prepare their systems to handle the optional T+0 settlement efficiently.

Mint

12. Investor Education and Protection Fund Authority (IEPFA) Partners with Kotak Mahindra Bank to Boost Investor Awareness

Context:

The Investor Education and Protection Fund Authority (IEPFA) has signed a Memorandum of Understanding (MoU) with Kotak Mahindra Bank Limited (KMBL) to enhance investor awareness across India.

• Objective: This collaboration aims to educate investors on responsible investing, financial fraud prevention, and protecting investor rights.

Initiative Details

• Digital Outreach: IEPFA’s educational content will be featured on Kotak Mahindra Bank’s various platforms, including:
  • ATMs
  • Kiosks
  • Websites
  • Mobile apps
  • Social media platforms
• Timeline: The campaign is set to roll out in the financial year 2025-2026.
• Cost: There will be no financial commitment from IEPFA for this campaign.
• Outreach: The partnership leverages Kotak Mahindra Bank’s 2000+ branches and 3000+ ATMs to reach a wide audience.

13. RBI Mandates Use of PRAVAAH Portal for Regulatory Applications

Context:

The Reserve Bank of India (RBI) has issued a directive requiring all regulated financial entities to use the PRAVAAH portal for submitting applications related to licenses, authorisations, and approvals starting from May 1, 2025. This initiative aims to centralize regulatory communications and introduce uniformity across the financial system.

What is the PRAVAAH Portal?

PRAVAAH (Platform for Regulatory Application, Validation, and Authorisation) is a secure, web-based digital platform introduced by the RBI. It is designed to streamline the application process, enabling individuals and entities to file, track, and manage various regulatory requests through a single unified system.

Scope and Applicability

From May 1, 2025, all Regulated Entities (REs) will be required to submit their applications via PRAVAAH. The entities include:

• Scheduled Commercial Banks (including Small Finance Banks, Local Area Banks, and Regional Rural Banks)
• Urban Co-operative Banks
• State and Central Co-operative Banks
• All-India Financial Institutions
• Non-Banking Financial Companies (NBFCs), including Housing Finance Companies
• Primary Dealers
• Payment System Operators
• Credit Information Companies

Reason Behind the Directive

PRAVAAH has been operational for nearly a year and has processed around 4,000 applications. However, many entities continued using legacy submission channels. The RBI’s decision to make the use of PRAVAAH mandatory aims to:

• Eliminate delays
• Improve transparency
• Enhance monitoring efficiency

Process Guidance for Regulated Entities

• The RBI clarified that instructions regarding portal access, application submission, and status tracking are available on the PRAVAAH portal itself.
• This ensures that the transition to the digital system will be smooth, with no interruption to the compliance obligations of any entity.

This directive reinforces the RBI’s commitment to a digital, transparent, and efficient regulatory environment. The mandatory adoption of PRAVAAH is expected to simplify the interface between the RBI and financial entities, strengthening regulatory governance and improving the overall regulatory framework.

14. Airtel Payments Bank has introduced the RuPay ON-THE-GO Card

Context:

Airtel Payments Bank has introduced the RuPay ON-THE-GO card, enabled with the National Common Mobility Card (NCMC) feature, aiming to simplify digital payments for travel, shopping, and daily expenses.

The National Common Mobility Card (NCMC)

The National Common Mobility Card (NCMC) is a feature that enables contactless payments across various modes of transportation and retail outlets using a single, interoperable card. It leverages RuPay technology and allows for stored value, enabling offline transactions for low-value payments. The NCMC supports payments for metro, bus, suburban railways, toll, parking, and retail purchases. 

Key Features

• Multi-Modal Transit Payments: The card supports contactless payments across various public transport systems, including metros, buses, tolls, and parking facilities nationwide.
• Retail and Online Transactions: It functions as a standard RuPay debit or prepaid card, allowing purchases at merchant outlets and online platforms.
• Eco-Friendly Design: Constructed from 99% recycled plastic, aligning with sustainable practices.
• Security: Equipped with an EMV chip for enhanced transaction security.
• Rewards and Benefits: Users can earn rewards on transactions and avail e-commerce benefits up to ₹15,000.

How to Obtain the Card

• Online Application: Accessible via the Airtel Thanks App. Navigate to the ‘Bank’ section, select ‘NCMC Enabled Card,’ agree to the terms, provide a delivery address, and complete the payment process.
• Offline Application: Available at designated Airtel Payments Bank Business Correspondent points or select metro stations and bus depots .

Usage and Charges

• ATM Transactions: Cardholders are entitled to a certain number of free ATM transactions monthly, after which standard charges apply (e.g., ₹21 + GST for cash withdrawals beyond the free limit) .
• Card Validity: The card remains valid for up to five years from the date of issuance .

TET & TOI

Economy

1. India’s Industrial Growth Slows to 4% in FY25

Context:

India’s Index of Industrial Production (IIP) averaged 4% in FY25, the lowest in the past four years, signaling a broad-based industrial slowdown amid weak consumption, muted exports, and lagging private investment.

Key Drivers of the Slowdown

• Global uncertainty dampening goods exports
• Lower-than-expected domestic demand growth
• Muted private capital expenditure, despite lower borrowing costs
• Rural consumption weakness due to food inflation and falling farm incomes

Sector-Wise IIP Performance Comparison

Sector	FY24 Growth	FY25 Growth
Mining	7.5%	2.9%
Manufacturing	5.5%	4.0%
Electricity	7.0%	5.1%

• Consumer Non-Durables: Sharp degrowth of -1.6% in FY25 vs. +4.1% in FY24, indicating rural consumption stress
• Consumer Durables: Growth almost doubled to 8% (FY25) from 3.6% (FY24), reflecting urban demand recovery

Monthly IIP Trend Snapshot

• March 2025 IIP: 3%, up from 2.7% in February
• Electricity output was the main contributor, growing 6.3% in March, up from 3.6% in February, due to seasonal summer demand

Inflation and Monetary Policy Effects

• Retail inflation averaged 4.6% in FY25, a six-year low, mainly due to falling vegetable prices
• But lower prices negatively impacted farm incomes, hurting rural demand
• RBI’s repo rate cut from 6.5% in January to 6% in April, lowering capex borrowing costs—but private investment sentiment remains weak

Trade and MSME Impact

• Goods exports remained flat in FY25, raising concerns for MSMEs
• MSMEs contribute 45.8% to exports, employ over 250 million, and have grown from ₹4 lakh crore (FY21) to ₹12 lakh crore (FY25)
• US-India Bilateral Trade Agreement must be shaped to support nearly 60 million MSMEs, most of which are micro enterprises

Policy Priorities Ahead

• Boost rural demand through targeted fiscal stimulus or income support
• Revise MSME export incentives, improve ease of doing business
• Ensure timely trade agreements to diversify market exposure
• Strengthen domestic demand to revive private capital expenditure

TIE

Agriculture

1. Maharashtra Scraps Re 1 Crop Insurance Scheme Amid Irregularities

Context:

Maharashtra’s government has decided to discontinue its Re 1 crop insurance scheme after uncovering major irregularities.

• Bogus applicants: The state detected 5.9 lakh bogus applicants in the 2024-25 cycle. For these applicants, the state and Centre had paid ₹478.5 crore in premiums to insurance firms.
• Potential risk: Had the fraudulent claims gone unnoticed, the bogus applicants could have received ₹6,000 crore in payouts during a calamity.

Re 1 Crop Insurance Scheme

The Re 1 crop insurance scheme was launched in 2023 by the Mahayuti government, under which farmers were to pay only Re 1 as premium on their part while the rest was borne by the government. This led to a massive increase in the number of applicants compared to previous years and over 5.82 lakh bogus claims in 2024-25.

Scheme Revisions and Return to Centre’s Crop Insurance Model

• New plan: Maharashtra will revert to the Centre’s premium charges for crop insurance.
• Premium rates: Under the Centre’s scheme, farmers will now pay:
  • 1.5% of the sum insured for kharif crops,
  • 2% for rabi crops, and
  • 5% for horticulture crops.

Impact of the Decision

• Improved scheme: The Maharashtra government has proposed an improved version of the crop insurance scheme, aiming for better transparency and accountability.
• Farmer protection: The decision to move away from the Re 1 scheme aims to ensure that only legitimate farmers benefit from the insurance coverage, maintaining the integrity of the system.

TOI

2. Sensitization Programme on National Programme for Organic Production (NPOP) on Spices

Context:

The one-day sensitization programme was held at Kochi on the 8th edition of the National Programme for Organic Production (NPOP) focused on spices.

• Collaborating Organizations: Spices Board and APEDA (Agricultural and Processed Food Products Export Development Authority).

Objectives

• Raise awareness on the updated NPOP standards for sustainable spice production.
• Promote the export of organic spices and spice products.

Key Highlights

• Inaugural Address:
  • P. Hemalatha, Secretary of the Spices Board, emphasized the importance of sustainable agriculture, aiming for safe, nutritious food at affordable prices, farmer profitability, and environmental conservation.
  • The 8th edition of NPOP provides updated guidelines for organic spice production, encouraging sustainable practices aligned with nature.

The event aimed to deepen the understanding of stakeholders on sustainable practices, improve awareness of the NPOP standards, and explore the global market for organic spices.

BL

Facts To Remember

1. Digha’s Jagannath Temple inauguration is TMC’s Ram Temple moment

The administration led by Chief Minister Mamata Banerjee is leaving no stone unturned to ensure that the inauguration of Jagannath Temple, built at a cost of ₹250 crore in West Bengal’s coastal town of Digha, on Wednesday is a grand success.

2. India to host WAVES 2025 in Mumbai from May 1

The first World Audio Visual Entertainment Summit (WAVES) 2025 will begin tomorrow at the Jio World Convention Centre in Mumbai. 

3. SEBI warns investors against ‘Opinion Trading’ platforms

The Securities and Exchange Board of India (SEBI) has said that some platforms known as ‘Opinion Trading platforms’ provide their users/participants a platform to trade in arrangements wherein the payout is dependent on the outcome of a yes or no proposition of the happening or non-happening of the underlying event.

4. Justice B R Gavai appointed as next Chief Justice of India

Supreme Court Judge, Justice Bhushan Ramkrishna Gavai, will be the next Chief Justice of India. Union Minister of Law and Justice Arjun Ram Meghwal said that President Droupadi Murmu has appointed Justice Gavai as the next Chief Justice of India, and his appointment will be effective from 14th of May.