Daily Current Affairs (DCA) 5 August, 2025

Daily Current Affairs Quiz
5 August, 2025

National Affairs

1. Matri Van Initiative

Context:

Union Ministers of Environment launched the ‘Matri Van’ initiative in Gurugram as part of the broader environmental movement ‘Ek Ped Maa Ke Naam’.

About Matri Van Initiative

A 750-acre theme-based urban forest project being developed in the Aravalli Hills, Gurugram (Haryana), under the Union Ministry of Environment.

Objective

• Ecological restoration of the degraded Aravalli landscape.
• Promotion of community-led plantation, biodiversity conservation, and creation of urban green lungs.

Key Features

• Multi-Stakeholder Participation
  • Involves CSR bodies, RWAs, MNCs, NGOs, schools, and government agencies for collaborative execution.
• Native Flora Restoration
  • Plantation of Aravalli-specific species like Peepal, Dhak, Amaltash, Neem, Bargad, Pilkhan, and Gullar.
• Eco-Friendly Amenities
  • Includes nature trails, cycle tracks, yoga zones, gazebos, water bodies, treated water irrigation, and flood-control systems.
• Environmental Impact
  • Acts as a carbon sink, reduces urban heat islands, and improves air quality—serving as the “Heart and Lung” of NCR.
• Alignment with National Campaigns
  • Integrated with Ek Ped Maa Ke Naam, Mission LiFE, and Van Mahotsav 2025.

News on Air

2. India Electric Mobility Index (IEMI) 2024

Context:

NITI Aayog has launched the India Electric Mobility Index (IEMI) 2024, India’s first national-level benchmarking tool to assess the performance of States and UTs in transitioning to electric mobility.

About India Electric Mobility Index (IEMI)

A composite index developed by NITI Aayog to score all States/UTs on a 0–100 scale based on their progress in EV adoption, infrastructure development, and innovation ecosystems.

Objective

• To evaluate, compare, and guide States/UTs in their EV transition journey.
• To align sub-national actions with India’s net-zero target by 2070.

Evaluation Criteria

IEMI evaluates performance on 16 indicators under 3 major pillars:

• Transport Electrification Progress
  • Tracks EV adoption across passenger, freight, and public transport segments.
• Charging Infrastructure Readiness
  • Measures deployment of public and private charging stations, and supporting policy frameworks.
• EV Research and Innovation Ecosystem
  • Assesses manufacturing base, R&D, and technological advancements in EV components.

Top Performing States/UTs:

• 1st: Delhi
• 2nd: Maharashtra
• 3rd: Chandigarh

National Trends:

• EV Share in Total Vehicle Sales: Increased.
• Karnataka leads in terms of station count.
• EV Policies:
  • 29 States/UTs have notified EV policies.
  • 4 more are in the draft stage—indicating pan-India engagement.

Significance of IEMI

• Establishes a national benchmark for EV transition.
• Enhances data transparency and accountability.
• Facilitates climate-resilient transport planning.
• Acts as a tool for targeted interventions and resource allocation.

PIB

3. PAN 2.0 Project

Context:

The Income Tax Department has awarded LTIMindtree Ltd the contract for upgrading India’s PAN and TAN management infrastructure under the PAN 2.0 Project, a significant leap in digitizing public tax services. The project was approved by the Cabinet Committee on Economic Affairs (CCEA) in November 2024 and aligns with the Digital India mission.

What is PAN 2.0?

PAN 2.0 is a next-generation technology upgrade that will modernize and secure the issuance, management, and grievance redressal systems for:

• Permanent Account Number (PAN) – PAN (Permanent Account Number) is a 10-character alphanumeric identifier issued by the Income Tax Department of India to individuals, companies, and other entities. It is essential for tracking financial transactions and ensuring tax compliance under the Income Tax Act, 1961.
• Tax Deduction and Collection Account Number (TAN) – TAN (Tax Deduction and Collection Account Number) is a 10-digit alphanumeric number issued by the Income Tax Department of India to entities responsible for deducting or collecting tax at source (TDS/TCS) under the Income Tax Act, 1961.

Key Features and Objectives

• Eco-friendly and paperless systems
• Faster and secure digital issuance of PAN and TAN
• Improved public grievance redressal mechanisms
• Seamless interoperability with other government systems, positioning PAN as a universal digital identifier

Mint

4. Global Artificial Intelligence (AI) City Index 2025

Context:

Bengaluru has been ranked 26th globally in the Global AI City Index 2025, making it the top-ranked city in India for AI research, innovation, and data centre development.

About Global AI City Index 2025

• Published by: Counterpoint Research (market intelligence firm)
• Objective: To benchmark global cities on their AI ecosystem strength including R&D, investments, infrastructure, and real-world applications.
• Scope: Evaluates emerging and established urban centres leading artificial intelligence development.

Key Highlights:

• Bengaluru:
  • Ranked 26th globally, India’s #1 AI city
  • Strong AI R&D network, vibrant startup ecosystem, and expanding data centre capacity
• Other Indian Cities:
  • Mumbai and Delhi utilize AI for traffic management and public security.
  • Chennai and Kolkata recognized among top emerging Indian AI hubs.
• India-Wide Recommendations:
  • The report suggests India needs a stronger national AI policy roadmap and robust regulatory frameworks.

Top 5 Global AI Cities (2025)

1. Singapore
2. Seoul
3. Beijing
4. Dubai
5. San Francisco

Banking/Finance

1. Phygital Banking in India

Context:

Banks are adapting to a hybrid “phygital” model to serve both urban and underserved rural customers effectively. This trend reflects a strategic balance between physical expansion and tech-driven optimization.

What is Phygital Banking?

Phygital Banking is a blended model that combines the physical presence of traditional banking (branches, ATMs, in-person services) with digital banking (mobile apps, internet banking, UPI, chatbots). It aims to deliver a seamless, efficient, and personalized customer experience by integrating the best of both physical and digital worlds.

Key Components of Phygital Banking

• Mobile and internet banking
• Interactive kiosks in branches
• Video KYC and remote onboarding
• QR-based and UPI payments
• Physical branch services with digital enhancements
• Customer Relationship Managers (CRMs)

Pros of Phygital Banking in India

• Wider Reach: Merges branch and mobile access, aiding rural and senior users.
• Financial Inclusion: Boosts JAM trinity with BCs and mobile tech.
• Customer Experience: Offers 24/7 digital service with human support for complex needs.
• Cost Efficiency: Cuts branch and transaction costs.
• Personalization: Enables tailored services via combined physical-digital data.

Cons of Phygital Banking in India

• Infra Gaps: Connectivity and device issues in rural areas.
• Cyber Risks: Increased exposure to fraud and data breaches.
• Complex Operations: Needs major backend integration.
• User Reluctance: Older users favor traditional methods.
• Staff Upskilling: Requires training in digital tools and soft skills.

Examples of Phygital Initiatives in India

• SBI’s YONO: Combines digital services with branch-assisted support.
• HDFC’s Phygital Branches: Offers digital tablets, smart ATMs, and assisted onboarding.
• Airtel Payments Bank & India Post Payments Bank: Leverage mobile tech with doorstep services.

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2. SEBI Proposes Turnover-Based Framework for Related Party Transactions (RPTs)

Context:

The Securities and Exchange Board of India (SEBI) released a consultation paper proposing turnover-based thresholds for determining material Related Party Transactions (RPTs). The move aims to ease compliance for large listed entities while ensuring transparency and shareholder protection.

What is Related Party Transactions (RPTs)?

Related Party Transactions (RPTs) are transactions between a company and parties that have a pre-existing relationship with it, such as promoters, subsidiaries, key managerial personnel (KMP), or close family members of these individuals.

Examples

• Sale/purchase of goods or property between the company and its subsidiary.
• Payment of managerial remuneration to directors.
• Loans or guarantees given to related entities.

Material Related Party Transactions (Material RPTs)

Material RPTs are those transactions between a company and its related parties that cross a specified monetary threshold, making them significant enough to require stricter regulatory scrutiny and mandatory shareholder approval.

Current Rule

• Material RPT:
  • A transaction exceeding ₹1,000 crore or 10% of annual consolidated turnover, whichever is lower, is currently classified as “material” and requires shareholder and audit committee approval.
• Requires shareholder approval if deemed material.

SEBI’s Proposed Turnover-Based Materiality Thresholds:

Company Turnover	Proposed RPT Materiality Threshold
Up to ₹20,000 crore	10% of annual turnover
₹20,001–₹40,000 crore	₹2,000 crore + 5% of amount exceeding ₹20,000 crore
Above ₹40,000 crore	₹3,000 crore + 2.5% of amount exceeding ₹40,000 crore OR ₹5,000 crore (whichever is lower)

Purpose of Regulating Material RPTs

• To safeguard the interests of minority shareholders.
• To ensure corporate governance and accountability in dealings with promoters or related entities.
• To prevent conflict of interest or diversion of funds under the guise of internal arrangements.

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3. Irdai Imposes Penalty on Policybazaar for Regulatory Violations

Context:

The Insurance Regulatory and Development Authority of India (Irdai) has imposed a ₹5 crore fine on Policybazaar Insurance Brokers for multiple regulatory violations, marking one of the more serious enforcement actions in the online insurance space.

Key Regulatory Violations

1. Misleading Promotion: Marketed select ULIPs and health plans as “Top Plans” without objective criteria, misleading consumers and implying false IRDAI endorsement.
2. Governance Conflicts: Senior executives held undisclosed roles in other insurance firms, breaching IWA Guidelines on neutrality.
3. Delayed Premium Remittance: Failed to transfer collected premiums to insurers on time, risking policy delays.
4. Outsourcing & Commission Breach: Paid unregulated commissions to third parties without formal agreements, violating IRDAI norms.
5. Policy Mapping & Call Record Lapses: Around 1 lakh telemarketed policies were unmapped; call records were incomplete, breaching compliance rules.

IRDAI Guidelines Violated

1. Biased Promotions
   • IRDAI Web Aggregators Regulations, 2017: Prohibits ranking products as “top” without objective criteria.
2. Governance Conflicts
   • IRDAI Guidelines, 2017: Prior approval required for Key Management Personnel (KMPs) holding directorships in other insurance entities.
3. Premium Remittance Delays
   • Web Aggregators Regulation 10(2): Premiums must be remitted to insurers within stipulated timelines.
4. Outsourcing Violations
   • Outsourcing Guidelines, 2017: Requires written agreements; prohibits unauthorized payouts or commissions.
5. Policy Mapping & Call Recording
   • Web Aggregators Regulation 13(5): All sales calls must be recorded and mapped to authorized personnel.
6. Unauthorized Commissions
   • Commission Regulations, 2023: Caps on commission payments; deviations need IRDAI approval.
7. Corporate Governance Lapses
   • Governance Guidelines, 2020: Mandates disclosure of related party transactions, conflict-of-interest norms.

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Agriculture

1. Shifts in India’s Pesticide Market

Context:

India’s pesticide market is undergoing a significant transformation, driven by changing pest profiles, labour shortages, evolving cropping patterns, and environmental concerns. Herbicide use is growing rapidly, signalling a shift from traditional insecticide-centric use to labour-saving, weed-control strategies.

Types of Crop Protection Chemicals

Pesticides, also known as crop protection chemicals, are classified into:

• Insecticides: Target insect pests (e.g., white-backed plant hopper in paddy).
• Fungicides: Control fungal infections (e.g., blast, sheath blight).
• Herbicides: Eliminate or suppress weeds.

While pesticide use in India remained low till the mid-20th century, the Green Revolution catalyzed its expansion. Regulatory bans (e.g., DDT, endosulfan) and rising labour costs have further influenced the market in recent decades.

Composition of India’s Crop Protection Market

• Total Organised Market: ₹24,500 crore
• Insecticides: ₹10,700 crore
• Herbicides: ₹8,200 crore (growing >10% annually)
• Fungicides: ₹5,600 crore
• Global Use: Over 3.7 million tonnes of pesticides were used globally in 2022, double the 1990 levels (FAO).
• Regional Leaders: Asia dominates in production and usage, led by China and India.

Herbicides are the fastest-growing segment due to mechanisation needs and labour substitution.

Growth Drivers for Herbicide Use in India

• Labour Shortage & Cost:
  • Manual weeding takes 8–10 hours/acre.
  • Average daily wage for agricultural labour rose to ₹447.6 in Dec 2024 (Labour Bureau), from ₹326.2 in 2019.
• Erratic Labour Availability: Due to migration and rising opportunity costs.
• Herbicides as Labour Substitutes: Function like mechanised tools (e.g., tractors, harvesters).

Regulatory Framework

• Insecticides Act, 1968: Governs all aspects of pesticide lifecycle.
• Banned Pesticides: India has banned 46 pesticides; others like Paraquat and Glyphosate are under review.
• CIB&RC: Central Insecticide Board & Registration Committee approves and regulates pesticide usage.
• Anupam Verma Committee: Reviewed 66 pesticides still registered in India but banned globally.

Government Initiatives Promoting Sustainable Pesticide Use

• National Mission on Sustainable Agriculture (NMSA): Promotes Integrated Pest Management (IPM).
• Paramparagat Krishi Vikas Yojana (PKVY): Encourages organic and biopesticide-based farming.
• Kisan Drone Scheme (2022): Subsidizes drone-based precision pesticide application.
• Kisan Kavach Protective Kit: Developed by DBT to ensure applicator safety.

Key Concerns

• Environmental & Health Hazards: Overuse leads to water/soil contamination, pest resistance, and health risks.
• Weak Regulatory Oversight: Absence of a robust approval mechanism like the EPA (USA) or EFSA (EU).
• Import Dependence: India relies on MNCs for active ingredients and formulations due to weak domestic R&D.

Way Forward

1. Promote Biopesticides: Accelerate approvals, provide incentives, and strengthen production systems.
2. Strengthen Enforcement: Ensure state-level regulatory compliance and curb spurious pesticide sales.
3. Farmer Training & Awareness: Expand extension outreach on rational, need-based pesticide use.
4. Digital Traceability: Use QR codes for real-time tracking of pesticide origin and authenticity.
5. Boost R&D: Invest in green chemistry, nano-formulations, and IPM innovation.
6. Ban Hazardous Chemicals: Gradually phase out Class I pesticides per FAO-WHO standards.

The Indian Express

2. Ethanol Blending in India

Context:

India has successfully achieved its E20 target 20% ethanol blended with petrol by early 2025, well ahead of its 2025–26 target. This milestone under the Ethanol Blended Petrol (EBP) Programme marks a significant stride towards cleaner fuels and energy self-reliance. However, it has also raised technical, consumer, and infrastructural concerns that merit urgent attention.

What is Ethanol Blending?

Ethanol blending involves mixing ethanol, a biofuel derived from biomass (sugarcane, maize, rice, etc.), with petrol in varying proportions—such as E10 (10%), E20 (20%), or higher blends.

Advantages

• Cuts GHG emissions and urban air pollution.
• Reduces import dependency and saves foreign exchange.
• Supports agro-industries and rural incomes.

India’s Ethanol Blending Journey

• EBP Programme launched: 2003.
• E10 target achieved: 2022.
• E20 achieved: March 2025.
• Next milestone: E30 blending by 2030.

Supporting Policy Framework

• National Policy on Biofuels (2018): Allowed diverse feedstocks, including sugarcane juice, FCI surplus grains, rotten potatoes, etc.
• Price & Tax Incentives:
  • Fixed ethanol prices by OMCs for supply certainty.
  • GST reduction from 18% to 5%.
  • Capital support and interest subvention for ethanol distilleries.
• Infrastructure Push:
  • PM-JI-VAN promotes 2G ethanol from rice straw and agri-residues.
• Global Role:
  • India leads the Global Biofuels Alliance (GBA) to harmonise standards and cooperation globally.

Technical and Environmental Concerns

• Engine Corrosion & Material Degradation:
  • Ethanol is hygroscopic (absorbs water), which increases internal moisture, leading to corrosion of metal parts, degradation of rubber/plastic components, and fuel system clogging due to residue loosening.
• Reduced Fuel Efficiency:
  • Ethanol has lower energy density than petrol. This leads to a mileage drop, raising consumer costs per kilometer without a matching drop in fuel prices.
• Vehicle Compatibility Issues:
  • Most existing vehicles in India are designed for E10. Lack of widespread flex-fuel vehicles or retrofit guidelines makes higher blends (E20+) unsuitable for the majority fleet, especially two-wheelers.
• Cold Start & Engine Performance Problems:
  • Ethanol-rich blends have lower volatility and higher ignition temperatures, causing difficulty in starting vehicles in colder climates, rough idling, and sluggish engine response in older engines.

Systemic Gaps

• Auto Industry (SIAM): Seeks regulatory clarity and incentives for E20+ compatible engines.
• Fuel Retailers: Need upgraded storage, pumps, and pipelines for ethanol-blended fuels.
• Feedstock Concerns:
  • Over-reliance on sugarcane and maize risks food security.
  • Scaling up 2G bioethanol (from crop waste) is vital.

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Facts To Remember

1. Shibu Soren, key tribal voice and former Chief Minister of Jharkhand, dies aged 81

Former Jharkhand Chief Minister and Jharkhand Mukti Morcha (JMM) co-founder Shibu Soren popularly known as “Dishom Guru” passed away in Delhi. He was 81.

2. Largest Asian tortoise back in Nagaland community reserve

The critically endangered Asian giant tortoise, the largest in mainland Asia, has been reintroduced into the Zeliang Community Reserve in Nagaland’s Peren.

3. PM’s Pariksha Pe Charcha sets Guinness World Record

Union Ministers Dharmendra Pradhan, Ashwini Vaishnaw, and Jitin Prasada received the Guinness World Record for the latest edition of “Pariksha Pe Charcha”, an annual event led by Prime Minister Narendra Modi.

4. TN, Karnataka teams win freestyle relays

Tamil Nadu and Karnataka emerged the boys’ and girls’ Group-III freestyle relay (4x50m) champions respectively on the opening day of the 41st National sub-junior Aquatic Championships here.

5. Philippines President Begins 5-Day India Visit Amid Strategic Engagements

Philippines President Ferdinand R. Marcos Jr. began his five-day state visit to India on Monday, marking a significant diplomatic and strategic engagement between the two Indo-Pacific nations.

6. Low Empanelment of Hospitals under Ayushman Bharat – PMJAY in 2024–25

The Ministry of Health has released updated data on the number of hospitals empanelled under the Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), India’s flagship health insurance scheme.

7. Less than 15% Youth Skilled under PMKVY Secured Jobs, Reveals Govt Data

Despite sustained efforts under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to address youth unemployment in India, the latest government data indicates that less than 15% of those trained since 2015 have secured job placements. The data was shared by Skill Development Minister Jayant Chaudhary in a written reply to the Lok Sabha.

8. Former J&K Governor Satya Pal Malik Passes Away

Former Jammu and Kashmir Governor Satya Pal Malik has passed away this afternoon at the age of 79 after a prolonged illness. He also served as the Governor of Goa and the Governor of Meghalaya.

9. PM Modi to Inaugurate Kartavya Bhavan on August 6 as Part of Central Vista Project

Prime Minister Narendra Modi will inaugurate Kartavya Bhavan at Kartavya Path in New Delhi tomorrow. Mr Modi will also address a public programme on the occasion. Kartavya Bhavan is part of the broader transformation of the Central Vista. It is the first among several upcoming Common Central Secretariat buildings that aim to streamline administrative processes and enable agile governance.

10. PM Matru Vandana Yojana Registration Drive Extended Till August 15

The Ministry of Women and Child Development has extended the special registration drive for the Pradhan Mantri Matru Vandana Yojana (PMMVY) till the 15th of this month.