Daily Current Affairs (DCA) 6&7 April, 2025

Daily Current Affairs Quiz
6 & 7 April, 2025

International Affairs

1. PM Modi’s Sri Lanka Visit

Context:

Prime Minister Narendra Modi concluded his three-day visit to Sri Lanka with major announcements and initiatives aimed at enhancing bilateral ties, infrastructure cooperation, and civilisational connections. The visit was marked by the launch of key Indian-assisted railway projects and a spiritually significant visit to the Jaya Sri Maha Bodhi temple.

Key Infrastructure Initiatives

1. Inauguration of Maho-Omanthai Railway Line

• Length: 128 km
• Indian financial assistance: $91.27 million
• Purpose: Enhance north-south rail connectivity and improve passenger and freight transport efficiency

2. Launch of Maho–Anuradhapura Advanced Signalling System

• Indian grant assistance: $14.89 million
• Aimed at modernising railway communication and safety standards

The Ministry of External Affairs described these projects as “landmark railway modernisation”, contributing to Sri Lanka’s national connectivity goals.

Cultural and Spiritual Highlights

• Mr. Modi, accompanied by President Anura Kumara Dissanayake, visited the Jaya Sri Maha Bodhi temple in Anuradhapura
• Paid homage at one of Buddhism’s most sacred sites, believed to be connected to the Bodhi tree in Bodhgaya, India
• The temple visit was symbolic of the shared spiritual and civilisational heritage between India and Sri Lanka
• Modi called it a “deeply humbling” experience and emphasised the guidance of Buddha’s teachings in a social media post

Strengthening Bilateral Relations

• Modi’s visit reaffirmed India-Sri Lanka cultural and diplomatic ties, with emphasis on development partnerships and regional cooperation
• He expressed gratitude for the warmth and hospitality extended by the Sri Lankan government and people
• Modi noted that the visit would “add momentum to bilateral relations”

Strategic Agreements and Regional Partnerships

During the visit, India and Sri Lanka signed seven key agreements spanning:

• Defence cooperation: Marking a significant strategic shift nearly 40 years after the Indian Peace Keeping Force (IPKF) episode
• Energy collaboration: Including the development of Trincomalee as a regional energy hub under a trilateral framework with the UAE
• Power grid connectivity to enhance energy integration
• Digitalisation and trade expansion were also discussed and formalised

These outcomes signal a broad-based effort to deepen India-Sri Lanka engagement across economic, strategic, and people-to-people sectors.

Prime Minister Modi’s 2025 visit to Sri Lanka combined diplomatic significance, economic cooperation, and spiritual diplomacy. With over $100 million in railway upgrades and high-level defence and energy agreements, the visit has reinforced India’s role as a key development partner and cultural ally to Sri Lanka.

TH

2. BIMSTEC’s Bangkok Vision 2030

Context:

Twenty-eight years since its establishment, BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) adopted the Bangkok Vision 2030, aiming to transform the group into a “Prosperous, Resilient and Open (PRO)” bloc by 2030.
The vision emphasizes regional peace, stability, and sustainability, aligning with UN Sustainable Development Goals and Thailand’s Bio-Circular-Green Economic Model, which advocates for low-carbon ecosystems.

India’s Role and New Initiatives

India made several notable contributions at the sixth summit hosted by Thailand, reinforcing its “Act East” policy and countering China’s regional influence:

• BIMSTEC Centres of Excellence on disaster management, maritime transport, traditional medicine, and agri-research
• Launch of the “Bodhi Programme” for skill development
• Proposal for a pilot study on digital public infrastructure
• Suggestion for a BIMSTEC Chamber of Commerce and stronger people-to-people linkages

Geopolitical Hurdles and Group Dynamics

Despite the renewed vision, BIMSTEC faces multiple internal challenges:

• Indo-Bangladesh relations have recently cooled, though leaders met on the summit’s sidelines
• Bangladesh-Myanmar tensions persist over the Rohingya refugee crisis
• Myanmar’s civil conflict has rendered it largely ineffective within the grouping

Institutional and Structural Issues

BIMSTEC has long struggled with inertia and underperformance:

• Only six summits have occurred, despite a biennial meeting plan
• The Dhaka-based secretariat (established in 2014) remains under-resourced
• A formal charter was only adopted in 2022, outlining institutional mechanisms
• Thailand and Myanmar have historically prioritized ASEAN over BIMSTEC

Overextension and Incomplete Projects

The grouping’s broad agenda spanning 14 sectors like trade, health, climate, counter-terrorism, and tourism has diluted focus and delayed progress.
Key initiatives remain unfinished or stagnant:

• A free trade agreement first proposed in 2004 has seen no progress
• Crucial projects on coastal shipping, road transport, and an intra-regional energy grid are delayed due to unresolved legal frameworks

Looking Forward: India’s Critical Role

With increasing geopolitical tensions, US trade barriers, and China’s rising influence in the Bay of Bengal, member states are now showing signs of renewed commitment.
As the largest economy in BIMSTEC, India’s leadership and diplomatic engagement will be pivotal in converting aspirations into action.

BS

National Affairs

1. Judges Asset Disclosure

Context:

As of now, only 95 out of 769 High Court judges (12.35%) across 25 High Courts in India have voluntarily disclosed their assets and liabilities. This staggering shortfall raises urgent questions about the culture of accountability in India’s judiciary, especially given its constitutional role in upholding integrity and justice.

Trigger Point: Delhi High Court Incident and Its Symbolism

The alleged recovery of partially burnt currency notes from the residence of Justice Yashwant Varma of the Delhi High Court has become more than just a legal curiosity — it serves as a symbolic flashpoint in the debate over judicial ethics and transparency.

Key Insight: The judiciary, which often holds other branches of government accountable, currently lacks internal checks when it comes to financial transparency. The absence of mandatory disclosure mechanisms leaves significant room for public skepticism and erosion of trust.

Supreme Court’s Decision: A Turning Point or Token Gesture?

On April 1, all 33 sitting Supreme Court judges unanimously agreed to make their asset declarations public. While commendable, this move raises two important considerations:

• Voluntariness vs. Institutional Mandate: Without a uniform, binding framework, this gesture risks being symbolic rather than systemic.
• Top-Down Influence: The SC’s move can create normative pressure on High Courts, but implementation will vary unless there is clear regulatory backing from bodies like the Collegium or Ministry of Law & Justice.

High Courts: A Disparate Landscape of Compliance

Disparity in Asset Disclosure Rates

High Court	Judges Disclosed	Total Judges	Disclosure Rate
Kerala	41	44	93.18%
Himachal Pradesh	11	12	91.66%
Delhi	7	38	18.42% (↓ from 82.85% in 2018)
Madras	5	65	7.69%
Chhattisgarh	1	16	6.25%

Key Takeaways:

• Kerala and Himachal Pradesh High Courts reflect a proactive internal culture of transparency, possibly shaped by regional legal traditions or leadership practices.
• Delhi High Court’s drastic fall (from 82.85% in 2018 to 18.42%) signals a regressive trend — suggesting that even previously compliant institutions may retreat in absence of enforceable standards.
• Courts like Chhattisgarh and Madras demonstrate near-zero commitment to asset disclosure, indicating a systemic neglect rather than logistical delays.

Broader Implications for Judicial Reform

• Voluntary Disclosure Is Unsustainable
  • The current reliance on individual ethics rather than institutional obligation leads to inconsistency and undermines the credibility of judicial accountability mechanisms.
• Transparency Must Be Codified
  • A national framework for mandatory asset disclosure, backed by either Parliament or the Supreme Court’s administrative authority, is essential.
• Public Trust Is Eroding
  • Public perception increasingly associates opacity with potential misconduct. Without proactive reform, the judiciary risks losing its moral high ground.
• Transparency as a Deterrent
  • Mandatory disclosures can act as a preventive tool against corruption, not merely a responsive one. The threat of public visibility often deters unethical behavior.

What Needs to Change?

Judicial transparency cannot remain a matter of personal discretion. The contrast between High Courts like Kerala and those like Chhattisgarh or Delhi demonstrates that culture alone is insufficient without codified norms. The Supreme Court’s recent commitment is a welcome start — but without a system-wide mandate, India’s judiciary remains selectively accountable.

TH

2. World Health Day 2025

Context:

World Health Day 2025 emphasizes the foundational role of maternal and newborn health, a timely focus for India with its 1.4 billion-plus population. While progress has been made through schemes like Ayushman Bharat and the Pradhan Mantri-Jan Arogya Yojana (PM-JAY), major gaps persist in equitable access, especially in rural and semi-urban regions.

Uneven Healthcare Infrastructure: Rural-Urban Divide

• 70% of India’s population resides in rural areas, but only 35–40% of healthcare infrastructure is located there.
• Health and Wellness Centres are under strain due to:
  • Staff shortages
  • Irregular medicine supply
  • Inadequate diagnostic facilities

Key Policy Gap: Investment is needed in Tier-2 and Tier-3 cities and incentives for medical professionals to work in underserved regions.

Dual Disease Burden

India faces a double health challenge:

• Persisting infectious diseases
• Rising non-communicable diseases (NCDs), now accounting for 65%+ of deaths

Critical Health Stats:

• 101 million Indians have diabetes (IDF, 2024)
• 1.6 million deaths due to air pollution (The Lancet, 2019)
• 35% of children under 5 are stunted (NFHS-5)
• 57% of women aged 15–49 are anemic

These are tied to social determinants of health: poverty, poor sanitation, low education, and gender inequality.

Government Responses

Schemes like Poshan Abhiyaan and ICDS are tackling malnutrition but require:

• Stronger data monitoring
• Community-level engagement
• Inter-departmental coordination

Health Financing & Access

• ₹99,858.56 crore (1.97% of Union Budget 2025–26) was allocated to Health Ministry — still below global benchmarks.
• Out-of-pocket expenses continue to push 55 million Indians into poverty annually.

Strengthen public health spending and shift toward preventive care, such as:

• Early screenings
• School health programmes
• Mass awareness campaigns

Digital Health: Promise vs. Accessibility

India is fast embracing digital health innovations:

• Ayushman Bharat Digital Mission and eSanjeevani enabled over 10 crore teleconsultations.
• AI tools, wearables, and remote monitoring offer new hope for early diagnosis.

Challenges

• Only 37% of rural households have internet access.
• Digital literacy gaps hinder adoption among patients and health workers.
• Cybersecurity and data privacy concerns remain unaddressed.

Solution Path:

• Expand rural digital infrastructure
• Train frontline health workers
• Enforce strong data protection regulations

Towards Health System Resilience and Equity

India must align its health strategy with Sustainable Development Goal 3 (Good Health and Well-being). Key lessons can be drawn from high-income countries that:

• Focus on universal health coverage
• Invest in early childhood development
• Prioritize public health infrastructure

Current Strategic Levers:

• G20 presidency showcased India’s leadership in vaccine equity and digital health diplomacy.
• National efforts like Tele-MANAS (mental health support) and Climate Health Action Plans signal promising directions.

Mental Health Alert: A NIMHANS (2023) study found that 14% of Indians suffer from mental disorders — a massive underserved need.

Health as a Strategic Investment for India’s Future

India’s journey to becoming a developed nation requires a cohesive, inclusive, and innovation-driven health system. The key lies in:

• Strengthening primary healthcare and prevention
• Addressing health equity across regions and demographics
• Leveraging technology responsibly
• Scaling up public-private partnerships

Final Insight: Health is no longer just a social imperative — it is a strategic lever for economic growth, social stability, and national resilience.

TH

3. West Bengal Secures GI Tags for 7 Iconic Products

Context:

In a significant boost to local heritage and the rural economy, seven traditional products from West Bengal have been granted the prestigious Geographical Indication (GI) tag, bringing the state’s total GI-recognized items to 33.

New GI Tag Winners

• Nolen Gurer Sandesh – A cherished Bengali winter sweet made from chhena and seasonal nolen gur (date palm jaggery).
• Baruipur Guava – Cultivated in the Baruipur region, prized for its unique taste and aroma.
• Kamarpukur’s White Bonde – A soft, syrupy variant of the classic sweet.
• Murshidabad’s Chhanabora – Dense milk-based sweets often gifted in traditional functions.
• Bishnupur’s Motichur Laddoo – Known for its fine, melt-in-the-mouth texture.
• Radhunipagal Rice – A rare indigenous variety with strong aroma and culinary versatility.
• Malda’s Nistari Silk Yarn – High-quality silk known for its shine and texture.

Cultural and Economic Significance

The announcement is expected to:

• Boost local MSMEs and rural employment.
• Encourage traditional sweet-makers and artisans.
• Facilitate branding and market access, both domestic and global.
• Strengthen West Bengal’s culinary and craft heritage.

Key Contributors Behind the GI Applications

• Misti Udyog: Led applications for the sweetmeats.
• Baruipur Farmers Producer Company: Applied for Baruipur Guava.
• State Agricultural Management & Extension Training Institute (Narendrapur): Applied for Radhunipagal rice.

Most applications were filed 2–3 years ago, and the approvals mark the culmination of long-term research and documentation efforts.

Challenges Remain in Marketing & Export

Despite recognition, certain logistical hurdles persist:

• Short shelf life (7–10 days) of jaggery-based sweets like Nolen Gurer Sandesh affects export potential.
• Air freight costs remain a barrier for global expansion.

However, modern packaging of nolen gur is already improving shelf life, offering potential for broader scalability.

What’s Next?

West Bengal is actively seeking GI status for more regional delicacies and crafts:

• Shaktigarh’s Langcha
• Krishnanager’s Swar Puria
• Ranaghat’s Pantua
• Mograhat’s Silver Craft

These items, according to stakeholders, are cultural symbols worthy of global recognition.

India’s GI Landscape

• Over 500 Indian products now have GI status.
• West Bengal’s recent additions strengthen its presence in the national GI portfolio.

“These products are more than just commodities — they represent identity, tradition, and pride,” added Guha.

4. India Launches Study to Detect Bird-Origin Zoonotic Diseases in Real Time

Context:

In a landmark public health initiative, the Indian Council of Medical Research (ICMR), in collaboration with other ministries, has announced the rollout of a real-time surveillance system to detect zoonotic disease spillovers from birds to humans.

Why This Matters

India, a hub for migratory birds and home to densely populated wetlands and bird sanctuaries, faces increasing risk of zoonotic disease transmission. With global outbreaks like avian flu and past pandemics having animal origins, this effort signals a major step in epidemic preparedness and One Health integration.

Key Details of the Initiative

• Lead Agency: Indian Council of Medical Research (ICMR)
• Participating Ministries: Health, Environment, Forest & Climate Change, Agriculture
• Study Areas: Wetlands and bird sanctuaries in Sikkim, Maharashtra, and Tamil Nadu
• Target Populations:
  • Migratory and resident birds
  • Sanctuary workers and forest officials
  • Communities living near wetlands
• Focus: Monitoring respiratory, enteric, and other early symptoms caused by zoonotic pathogens
• Detection Tools: Real-time surveillance, biosampling, and clinical monitoring of both birds and humans

Why Bird Habitats Were Chosen

• Wetlands and sanctuaries serve as natural incubators for potential zoonoses due to:
  • Close interaction between wildlife, livestock, and humans
  • Large populations of migratory birds, some of which are known disease carriers

This One Health approach integrates data from environmental, animal, and human health sectors to anticipate outbreaks before they escalate.

Expected Outcomes

• Early warning system for bird-origin diseases
• Data repository for zoonotic pathogens in avian ecosystems
• Policy framework for rapid response and mitigation strategies
• Boost to India’s biosurveillance infrastructure in line with WHO recommendations

The Bigger Picture

This is part of India’s broader strategy to:

• Strengthen pandemic preparedness post-COVID
• Comply with international health regulations
• Enhance its global leadership in zoonotic disease research

The initiative is also aligned with the G20 Health Track priorities, where India has advocated for strengthening global collaboration on One Health and antimicrobial resistance (AMR).

TET

5. Stand-Up India Scheme Completes 7 Years

Context:

The Government of India announced that the Stand-Up India Scheme, a flagship initiative to promote entrepreneurship among marginalized communities, has sanctioned over ₹61,000 crore in loans as of March 17, 2025, marking a significant milestone in its 7-year journey.

Key Highlights

• Launched: April 5, 2016, by the Ministry of Finance under the Azadi Ka Amrit Mahotsav initiative
• Target Beneficiaries: Entrepreneurs from Scheduled Castes (SCs), Scheduled Tribes (STs), and women
• Purpose: To facilitate bank loans for greenfield enterprises, including manufacturing, services, or trading sectors
• Loan Sanctions: Grown from ₹16,085 crore (as of March 31, 2019) to ₹61,020.41 crore (as of March 17, 2025)

Impact and Significance

• The scheme has fostered self-reliance and job creation among disadvantaged communities
• Acts as a key enabler of financial inclusion and inclusive economic growth
• Encourages grassroots entrepreneurship, especially in Tier 2 and Tier 3 towns

The government considers the Stand-Up India scheme not just a loan facilitation platform but a transformative movement that continues to drive equity and access in the Indian startup ecosystem.

6. Buddhism in India

Context:

The gifting of the Tipitaka to India’s Prime Minister during the 6th BIMSTEC Summit has renewed interest in Buddhism’s legacy, particularly its Indian roots and eventual decline.

Origins of Buddhism in India:

• Founder: Siddhartha Gautama (563–483 BCE), born in Lumbini (present-day Nepal), achieved enlightenment in Bodh Gaya.
• Core Teachings: Four Noble Truths, Eightfold Path; emphasized personal liberation over rituals.
• Reformist Movement: Rejected Vedic caste hierarchy and Brahmanical rituals.
• Early Support: Kings like Bimbisara and Ajatashatru in Magadha were early patrons.
• Ashoka’s Influence (3rd century BCE): State sponsorship, missionary work, and edicts helped Buddhism spread across Asia.
• First Buddhist Council (483 BCE): Held at Rajgir to compile Buddha’s teachings.

Evolution & Development:

• Theravada vs. Mahayana:
  • Theravada: Original teachings, personal nirvana.
  • Mahayana: Universal salvation, Bodhisattva ideal.
• Vajrayana Buddhism: Esoteric form developed in Bengal and Bihar, blending Tantra with Mahayana.
• Centers of Learning: Nalanda, Vikramshila, and Taxila emerged as global Buddhist universities.
• Global Expansion: Spread via Silk Road to China, Southeast Asia, and Sri Lanka.
• Buddhist Art & Architecture:
  • Monuments: Sanchi Stupa, Ajanta Caves.
  • Styles: Gandhara art blended Hellenistic and Indian elements.

Contributions of Buddhism to India

• Social Equality: Founded the Sangha, promoting egalitarian ideals.
• Linguistic Impact: Canonical texts in Pali and Prakrit enriched Indian language and literature.
• Ahimsa & Ethics: Influenced Indian thought, including Gandhi’s non-violence movement.
• Cultural Diplomacy: Buddhist missions enhanced India’s soft power in Asia.
• Architectural Heritage: Viharas, Chaityas, and Stupas shaped Indian sacred architecture.

Reasons for the Decline of Buddhism in India:

1. Cultural Factors:

• Syncretism with Hinduism:
  • Buddha became an avatar of Vishnu, blurring religious lines.
• Bhakti Movement Appeal:
  • Personal devotion to deities like Rama/Krishna offered emotional and spiritual intimacy.
• Limited Ritual Experience:
  • Hinduism integrated music, festivals, and rituals, whereas Buddhism remained austere.

2. Social Factors:

• Monasticism vs. Household Life:
  • Buddhism’s stress on monkhood conflicted with family-centric Hindu values.
• Caste Dynamics:
  • While Buddhism opposed caste, Hindu reformers like Shankara absorbed egalitarian elements.
• Disconnect with Laypeople:
  • Buddhist monasteries grew wealthy and alienated the masses.

3. Political Factors:

• Shift in Royal Patronage:
  • Gupta rulers and Rajputs favored Hindu traditions.
  • Only the Pala Dynasty (8th–12th century) remained significant Buddhist patrons.
• Islamic Invasions:
  • Destruction of Nalanda and Vikramshila by Turkish invaders.
  • No large-scale resistance due to lack of grassroots support.
• Hindu Philosophical Revival:
  • Adi Shankara’s Advaita Vedanta intellectually countered Buddhist doctrine, reclaiming elite followers.

Buddhism, though originated in India, found greater longevity and transformation abroad. Its emphasis on ethics, social equality, and education left an enduring imprint, while its decline was shaped by cultural assimilation, shifting political loyalties, and structural limitations.

7. Ice Stupas

What Are Ice Stupas?

• Definition: Ice stupas are artificial glaciers constructed in cone-like shapes to store winter water in frozen form.
• Name Origin: Inspired by traditional Buddhist stupas due to their iconic dome-like structure.
• Inventor: Engineered by Sonam Wangchuk in Ladakh, India.

Science Behind Ice Stupas

• Gravity-Fed Water Supply:
  • Water from glacial streams is diverted using pipelines laid on a hydraulic gradient.
  • No electricity or pumps are needed, making it energy-efficient.
• Spraying and Freezing Mechanism:
  • Water is sprayed vertically into sub-zero air during winter nights.
  • Droplets freeze mid-air and settle over a structural frame, gradually forming the stupa.
• Cone-Shaped Formation:
  • The vertical cone shape minimizes surface area exposed to sunlight.
  • This reduces melting, preserving the stupa until spring.
• Seasonal Melting for Irrigation:
  • As temperatures rise, the ice melts gradually from top to bottom, releasing water slowly.
  • Supports irrigation for crops like apples, apricots, barley, and wheat.

Scientific Principles Involved

• Phase Change: Freezing and melting processes store and release energy.
• Latent Heat Storage: Energy is stored in frozen water, released during melting.
• Heat Transfer: Controlled by ice shape and exposure.
• Hydraulic Gradient: Ensures gravity-driven water flow without external energy.

Significance of Ice Stupas

• Climate Adaptation:
  • Helps combat glacier retreat and water scarcity in Himalayan regions.
• Agricultural Innovation:
  • Allows multiple cropping seasons instead of just one, increasing productivity.
• Sustainable & Low-Tech:
  • Community-friendly, cost-effective, and scalable without large infrastructure.
• Disaster Risk Reduction:
  • Reduces reliance on rapidly melting glaciers, mitigating flood risks in spring.

8. INS Varsha & INS Aridhaman

Project Varsha: India’s First Dedicated Nuclear Submarine Base

What is Project Varsha?

• A classified naval infrastructure initiative by the Indian Navy.
• Aims to develop INS Varsha, a nuclear submarine base on the eastern coast.
• Located near Rambilli, ~50 km south of Visakhapatnam, Andhra Pradesh.
• Scheduled to be commissioned in 2026.

Objectives:

• Boost India’s maritime strike capability in the Bay of Bengal and Indian Ocean Region (IOR).
• Act as a strategic counterweight to China’s growing naval influence.

Key Features:

• Underground pens and tunnel systems to stealthily dock nuclear submarines.
• Capacity: Dock up to 12 nuclear-powered submarines.
• Built near BARC Atchutapuram, supporting nuclear integration.
• Provides protection from aerial and satellite surveillance.
• Ensures rapid access to strategic chokepoints like the Malacca Strait.

Strategic Significance:

• Counters China’s bases at Hambantota (Sri Lanka) and BNS Sheikh Hasina (Bangladesh).
• Strengthens India’s second-strike nuclear capability, a key element of the nuclear triad.
• Supports India’s blue water naval ambitions and operational autonomy in the IOR.

INS Aridhaman: India’s Third Nuclear-Powered Ballistic Missile Submarine (SSBN)

What is INS Aridhaman?

• A 7,000-tonne SSBN developed under the Advanced Technology Vessel (ATV) Project.
• Constructed at the Shipbuilding Centre, Visakhapatnam with support from BARC and DRDO.
• Expected commissioning: 2025.

Key Features:

• Carries more K-4 submarine-launched ballistic missiles (SLBMs) with 3,500 km range.
• Technologically superior to INS Arihant and INS Arighaat.
• Designed for deep-sea deterrent patrols, enabling stealth nuclear deployment.
• Enhances survivability of India’s nuclear arsenal underwater.

Strategic Value:

• Strengthens India’s underwater leg of the nuclear triad.
• Boosts India’s ability to maintain credible minimum deterrence.
• Reinforces India’s position in the Indo-Pacific security architecture.

TOI

Science & Tech

1. CAPTCHA: A Digital Shield in Online Security

Context:

CAPTCHA (Completely Automated Public Turing test to tell Computers and Humans Apart) is a vital tool in the digital world, designed to differentiate humans from bots through simple yet effective challenges. Introduced in the early 2000s, it continues to play a key role in online safety and account protection.

Why CAPTCHA Was Invented

• Created by Luis von Ahn, Manuel Blum, Nicholas J. Hopper, and John Langford in the early 2000s
• A response to growing issues with automated bots: spamming, fake accounts, data theft
• First patent filed in 2003, featuring distorted text recognition that was easy for humans but hard for machines

How CAPTCHA Works

• CAPTCHA presents visual or interactive puzzles to verify if a user is human
• Based on the Turing Test, developed by Alan Turing, which tests a machine’s ability to mimic human behavior
• Common examples include:
  • Distorted text and numbers
  • Image recognition (e.g. “click all traffic lights”)
  • Audio challenges

Evolution of CAPTCHA Technology

Year	Development	Key Feature
2000s	Text-based CAPTCHA	Distorted characters for verification
2009	reCAPTCHA	Used scanned book text to both secure and digitise content
2014	Invisible reCAPTCHA	Detected human behavior via mouse movement
Present	Smart reCAPTCHA v3	Scores user activity without visible tests

• reCAPTCHA helped digitize books by letting users transcribe scanned words that OCR couldn’t read
• Modern CAPTCHA is less intrusive and often invisible to users

How CAPTCHA Protects the Internet

• Blocks spam and automated abuse on:
  • Contact forms
  • Login/signup pages
  • E-commerce transactions
  • Online surveys and polls
• Prevents credential stuffing, data scraping, and fraudulent account creation
• Adds an extra layer of protection during account recovery or payment verification

Limitations of CAPTCHA

• Accessibility issues for:
  • Visually impaired users (even audio CAPTCHA isn’t always effective)
  • People with hearing or cognitive disabilities
• User experience challenges:
  • Annoying and time-consuming, especially on mobile
  • Poorly designed CAPTCHA can frustrate and alienate legitimate users
• Bot advancements:
  • Machine learning can now solve many CAPTCHA types
  • Cybercriminals use CAPTCHA-solving services to bypass protections

The Future of CAPTCHA

• Needs to evolve with:
  • Smarter bots
  • Greater accessibility demands
  • User-centric design principles
• Possible solutions:
  • Enhanced behavioral analysis
  • Biometric authentication
  • Better user experience (UX) design for mobile and assistive devices
• The goal is to balance security, usability, and inclusivity

CAPTCHA remains an essential part of cybersecurity infrastructure, preventing bots from infiltrating websites and protecting sensitive data. From book digitisation to invisible detection, it has come a long way — but must keep evolving to stay effective, fair, and user-friendly.

TH

2. RAPID-CRISPR Test Revolutionizes Early Diagnosis of Acute Promyelocytic Leukemia (APL)

What is APL?

Acute Promyelocytic Leukemia (APL) is a rare and aggressive subtype of Acute Myeloid Leukemia (AML). It is caused by the fusion of two genes, PML and RARA, leading to impaired white blood cell and platelet production. This condition causes life-threatening internal bleeding, especially in organs like the lungs and brain, making rapid diagnosis and treatment crucial.

APL Fast Facts:

• Accounts for 10–15% of AML cases
• Median diagnosis age: 34 years
• Male-to-female ratio: 1.5:1
• Highly curable if treated promptly

Challenge in Current Diagnostics

Existing diagnostic methods:

• Are slow, often delaying life-saving treatment
• Require specialised laboratories, expensive equipment, and skilled professionals
• Are inaccessible in rural, under-resourced, or developing regions

The RAPID-CRISPR Breakthrough

Developed at: ACTREC, Tata Memorial Hospital, Mumbai
Published in: Blood Advances
Supported by: Department of Atomic Energy

Key Highlights:

• RAPID = Redefined APL Identification
• Powered by CRISPR-based molecular diagnostics, not gene editing
• Detects the PML-RARA gene mutation with near 100% sensitivity and specificity
• Result time: Under 3 hours
• Cost-effective and equipment-free
• Uses a simple lateral flow strip, like a home pregnancy test

How It Works

1. A sample of peripheral blood (sufficient in 80% of cases) or bone marrow is collected.
2. The RAPID-CRISPR reagent is added to detect and cut the mutated gene.
3. This action triggers a signal visible on a strip-based test, enabling fast clinical decisions.

Superior Sensitivity & Simplicity

• Detects even a single copy of the PML-RARA gene
• 10x more sensitive than gold-standard RQ-PCR
• No need for gene extraction or amplification
• No false positives or negatives recorded in 134 clinical trials

Transforming Cancer Diagnosis in Low-Resource Settings

• Designed to work without complex labs or high-end machines
• Makes early diagnosis possible in rural and underfunded hospitals
• Potential game-changer for developing countries where delays cost lives

Next Steps and Future Potential

• Currently detects all three PML-RARA isoforms (bcr1, bcr2, bcr3) using three strips
• Future goal: Single-strip, single-tube test
• Long-term vision: At-home testing solutions for ultra-early detection

TH

3. India’s Aquaculture Growth

Context:

India has emerged as a global aquaculture powerhouse, ranking third in overall fish production and second in prawn production. With growing domestic and export demand for high-protein, low-fat seafood like prawns, aquaculture is evolving as a vital contributor to India’s food and economic security.

Key Aquaculture Highlights

• Top-producing states: Andhra Pradesh (largest), followed by West Bengal, Tamil Nadu, Odisha, and Gujarat
• Major species: Penaeus monodon (black tiger prawn), highly valued in global markets
• Optimal salinity for prawn farming: 10–25 g/l (seawater is 35 g/l)

Innovations in Prawn Farming

• Water sourcing techniques:
  • West Bengal: High tide seawater inflow
  • Andhra Pradesh: Brackish groundwater mixed with freshwater
• Farm design:
  • Typical pond size: 150 x 100 m, 2 m depth
  • Innovative model: Smaller ponds promoted by Siva Rama Rudraraju (Bapatla, Andhra Pradesh) allow better pathogen control and reduce economic risks during outbreaks

Managing Pathogen Risks in Aquaculture

• Major threats:
  • Vibrio harveyi (bacterial pathogen)
  • White Spot Syndrome Virus (WSSV)
• Annual loss estimate: Up to 25% of expected yield
• Preventive strategies:
  • Probiotics: Use of Bacillus strains to outcompete harmful microbes
  • Pond security: Plastic nets to stop birds (e.g., crows) from spreading infections
  • Lab testing: Rapid identification of infections; prompt pond draining
  • Phage therapy: Use of bacteriophages to kill Vibrio bacteria selectively

Research-Led Innovation: Pathogen-Free Broodstock

• Developed by ICAR-CIBA, Chennai
• Juvenile prawns raised in biosecure nurseries
• Certified as Specific Pathogen-Free (SPF) — crucial for disease prevention

Impact and Future Outlook

• India’s prawn production is growing at an impressive 17% annual rate
• Growth is fueled by farmer innovation, scientific research, and adaptive practices
• Aquaculture plays a critical role in addressing climate challenges, securing livelihoods, and meeting global nutrition demands

TH

Banking/Finance

1. IMF-World Bank Report

Context:

A recent IMF–World Bank joint report, following an assessment of India’s financial system, has stressed the urgent need to enhance the independence and authority of India’s financial regulators through legislative and institutional reforms.

Key Concerns Highlighted

• Government Control Over Regulators: Current Indian laws allow the Ministry of Finance (MoF) to control the appointment and management of top officials at key regulatory bodies like the RBI and IRDAI.
• Overruling Regulatory Decisions: The MoF acts as an appellate authority for the RBI and has overridden major decisions in the past. For example, in 2019, the government reversed the RBI’s move to revoke a cooperative bank’s licence.
• Regulatory Constraints on PSBs and Insurers: The RBI lacks sufficient authority to enforce corporate governance measures such as:
  • Forcing mergers of public sector banks (PSBs)
  • Approving or removing board members
  • Dissolving underperforming boards
    Similarly, state-owned banks and insurers are governed by statutes that limit regulators’ intervention capabilities.

Major Recommendations

• Appellate Authority Transfer: The report recommends transferring the RBI’s appellate oversight from the Ministry of Finance to an independent agency, reducing political interference in regulatory matters.
• Strengthening IRDAI’s Powers: The Insurance Regulatory and Development Authority of India should be empowered to take direct supervisory actions against large public insurers, including the dominant state-owned life insurance company.

The global financial institutions argue that true financial stability in India hinges on granting regulators the autonomy and authority they need to act decisively especially in the governance of public financial institutions. Legislative changes could be pivotal in safeguarding the credibility and integrity of India’s financial system.

TH

2. NPCI’s Strategic Focus Areas in 2025

Scaling Unified Payments Interface (UPI) – The 10x Vision

• Current Monthly Users: 400–450 million
• Potential: Over 1 billion users and 100–150 billion monthly transactions
• Strategy:
  • Broaden user and merchant base
  • Introduce new use cases
  • Invest in user onboarding and digital payment habits
  • Safety campaigns to build trust

Enabling Credit Access Through UPI

• Credit Line on UPI: Designed for low-ticket, high-frequency credit, addressing gaps traditional credit cards miss
• Support System: RBI and Government backing crucial
• Impact: Expands formal credit access with UPI’s existing digital footprint

Investing in Advanced Technology

• Focus Areas:
  • Artificial Intelligence (AI) – Real-time fraud detection
  • Blockchain – For secure, scalable infrastructure
  • Digital Currency – Future-ready payments integration
• Performance: Fraud kept below 1 basis point of UPI value

Global Expansion of UPI Technology

• Progress in 7 countries with merchant enablement
• 4–5 additional countries exploring the UPI tech stack
• Challenge: Regulatory cooperation is key to cross-border success

System Resilience and Infrastructure Expansion

• Recent Outage (March 26):
  • Brief hour-long issue resolved with hardware replacement
  • Root cause analysis completed
• Infrastructure:
  • 2 data centers operational (Hyderabad, Chennai)
  • 3rd ready; 4th under consideration
  • NPCI has ₹1,100 crore surplus for resilience and risk reserves

Merchant Discount Rate (MDR) and System Optimization

• UPI Lite / Lite X:
  • Optimized for small-ticket transactions (fewer hops)
  • Response to server load concerns and outages
• MDR Discussions: Ongoing with RBI and Government

Diversifying the UPI Ecosystem

• TPAP Market Share Goal: Reduce concentration; promote new players
• Deadline Extended: 30% market cap goal now pushed by 2 years
• Recent Developments:
  • Record 20 TPAP approvals in 2024
  • Emerging players: Cred, Navi, Paytm, Super.money
  • Strong interest driven by UPI’s zero MDR and wide user base

BHIM App Hive-Off and Sovereign Positioning

• Reason: Maintain arm’s-length relationship; ensure BHIM stays a sovereign alternative
• Not a competitor: Seen as a complementary platform
• Possible Future Hive-Offs: Under consideration, but not confirmed

The Road Ahead for UPI and NPCI

• The next 600 million UPI users will need focused support and trust-building
• UPI remains a work in progress, with continuous innovation, partnerships, and infrastructure investment necessary to reach its full potential
• NPCI’s strategy balances scale, innovation, globalisation, and financial inclusion

3. Unified Pension Scheme (UPS)

Introduction of UPS (Effective April 1, 2025)

• Approved in August 2024
• Covers over 2.3 million central government employees
• Provides a guaranteed pension equal to 50% of the retiree’s average basic pay of the last 12 months
• Minimum qualifying service is 25 years
• Pension begins at age 60, unlike OPS where it started immediately post-retirement

Contribution Structure Under UPS

• Government’s share increased from 14% to 18.5% of Basic Pay + Dearness Allowance
• Employee’s share remains at 10%
• Annual financial impact is ₹6,250 crore in recurring cost and ₹800 crore in arrears

Investment Strategy for UPS Contributions: To Be Finalised

• Final investment decision expected in 3–4 months
• Key sources for insights include EPFO’s ETF-based equity investment approach (5–15%) and global pension models like Canada Pension Plan (40–50% equity) and Japan GPIF (around 25% equity)
• In the interim, contributions will follow a default investment mix of equities and bonds
• Once a formal strategy is adopted, allocations (e.g., 50% equity) will be adjusted accordingly

Comparative Highlights: UPS vs. NPS and OPS

Feature	UPS	NPS	OPS
Pension Formula	50% of avg. last 12 months’ basic pay	Market-linked	50% of avg. last 10 months’ basic pay
Min. Qualifying Service	25 years	No minimum	20 years
Govt Contribution	18.5%	14%	Fully funded (non-contributory)
Pension Start Age	60 years	As per withdrawal	Immediate post-retirement
Risk Sharing	Govt + employee	Employee (market-driven)	Fully govt-funded
Equity Cap	To be decided	Max 50%, tapering with age	Not applicable

Employee Choice Deadline

• Cutoff date is June 30, 2025
• Employees can opt between NPS and UPS
• Once chosen, the decision is final

Broader Pension Reform Efforts

A committee led by former Finance Secretary T.V. Somanathan is exploring ways to enhance NPS benefits without reverting to the financially unsustainable Old Pension Scheme (OPS)

Building a Resilient, Globally Benchmarked Pension Ecosystem

The finance ministry is taking a measured approach by studying both domestic expertise through EPFO and international practices. The UPS offers a guaranteed, sustainable pension model aimed at balancing fiscal responsibility with retirement security

BS

4. RBI Monetary Policy Committee (MPC) Meeting – April 2025

Context:

The Reserve Bank of India’s six-member Monetary Policy Committee (MPC) will convene its first meeting for FY26 starting Monday.
A repo rate cut of 25 basis points (bps) is widely expected, with outside chances of a deeper 35 bps cut being discussed by analysts.

Economic and Global Backdrop

• The meeting takes place amid rising global uncertainties, including reciprocal tariffs by the US administration, which could weigh on India’s growth.
• Inflation is projected to remain below the RBI’s 4% target in the coming months, possibly prompting a shift in stance from neutral to accommodative.

Growth and Inflation Insights

• Barclays forecasts Q4 FY25 real GDP growth at 6.7% YoY, implying full-year growth of 6.2%, lower than the RBI’s and MoSPI’s 6.5% estimate.
• The meaningful undershoot in CPI inflation opens up room for further rate cuts, possibly a non-standard 35 bps cut, though 25 bps remains Barclays’ base case.

RBI’s Recent Liquidity Actions

• Between January and March 2025, the RBI infused approximately ₹8 trillion in durable liquidity.
• It recently announced a ₹80,000 crore bond purchase via open market operations, pushing sovereign bond yields to a three-year low.

Market and Policy Tools Outlook

• The central bank is expected to continue supporting liquidity using variable rate repo operations, open market bond purchases, and forward forex swaps.
• Analysts from Bank of America expect RBI to maintain its accommodative approach to liquidity management.

Previous Policy Action & Expectations

• In February 2025, the RBI delivered its first repo rate cut in five years (25 bps), with all MPC members voting unanimously in favor.
• A key aspect to watch in the April meeting will be whether the RBI officially changes its policy stance to “accommodative.”

BS

5. Borrowers Shift to Secured Loans Amid Tighter Norms on Unsecured Lending

Context:

With the Reserve Bank of India (RBI) tightening norms on unsecured credit in late 2023, both banks and non-banking financial companies (NBFCs) have become cautious in extending personal loans and credit card debt. As a result, borrowers are now increasingly opting for secured alternatives such as:

• Loans against Fixed Deposits (FDs)
• Loans against Shares and Bonds
• Gold Loans (Jewellery as Collateral)

Key RBI Measures

• November 2023: RBI increased risk weights on unsecured personal loans and credit card dues.
• Also raised risk weights on NBFCs’ unsecured loan exposure (later rolled back in February 2025).

Data Trends: Shift to Secured Credit

• Loan against FDs: Growth rose from 6.7% (Dec 2023) to 11.9% (Feb 2025)
• Loan against Shares/Bonds: Jumped from 8.5% to 16.7%
• Gold Loans: Growth spiked from 18.6% to 87.4%
• In contrast:
  • Credit card dues growth slowed from 32.6% to 11.2%
  • Unsecured loans growth fell from 22.9% to 7.9%

Why Borrowers Are Switching

• High demand for credit persists.
• Collateral-backed loans are:
  • Less risky for lenders
  • More accessible for borrowers with available assets
• Gold price surge has made gold loans more lucrative—less gold needed for the same loan value
• Retail customers are now adopting products like loans against shares, earlier restricted to HNIs.

With the regulatory environment tightening around unsecured consumer credit, a paradigm shift towards collateral-backed loans is underway. This reflects not only a more cautious lending approach by financial institutions but also a changing borrower mindset focused on accessibility, affordability, and credit health.

TET

6. Centre May Revise Digital Competition Bill

Key Highlights:

• Proposed Rework: The Centre is considering raising regulatory thresholds and narrowing the scope of the draft Digital Competition Bill to avoid over-regulating Indian startups.
• Current Concerns: Startups expressed fears that the original draft’s broad coverage and thresholds could stifle innovation and impose compliance burdens on small digital firms.

Background:

• The bill, released last year, was drafted based on inputs from the Ministry of Corporate Affairs, Parliamentary Standing Committee on Finance, and an expert panel.
• It aims to introduce ex-ante regulation—preemptive rules to prevent anti-competitive behavior by powerful digital platforms, unlike ex-post regulation that addresses issues after they occur.

Current Draft – Key Provisions:

• Thresholds to Qualify as SSDE (Systemically Significant Digital Enterprise):
  • ₹4,000 crore annual domestic turnover (3-year average), or
  • $30 billion in global turnover, or
  • ₹16,000 crore gross merchandise value (GMV) in India, or
  • $75 billion global market capitalization
    AND either
  • 10 million end-users or
  • 10,000 business users in India
• Nine Digital Segments Originally Covered:
  • Online search
  • Social networking
  • Video-sharing platforms
  • Interpersonal communication services
  • Operating systems
  • Web-browsing
  • Cloud services
  • Digital advertising
  • Online intermediation services

Likely Revisions:

• Trimmed List of Digital Services: Fewer categories to be regulated under the SSDE framework.
• Higher Thresholds: To ensure only large tech firms fall under the ambit, while startups are spared.
• Periodic Compliance Reporting: Will still apply to firms designated as gatekeepers.

Implications:

• For Startups: Likely relief from regulatory compliance, allowing them to grow freely.
• For Big Tech: Continued scrutiny under a sharpened framework focusing on platform dominance and market power.
• For Policy Makers: A balancing act between market fairness and innovation enablement.

Mint

7. ‘RBI Kehta Hai’ Campaign

Context:

The Reserve Bank of India (RBI) has enhanced its public awareness outreach by integrating WhatsApp as a new communication channel under its ‘RBI Kehta Hai’ campaign.

Background:

• The ‘RBI Kehta Hai’ initiative is the central bank’s ongoing effort to educate the public on financial literacy, safety, and best practices.
• Campaigns have been conducted via TV, text messages, radio, and digital platforms.

New Feature: WhatsApp Integration

• RBI will now send messages through a verified ‘Reserve Bank of India’ WhatsApp account.
• This move aims to reach users across urban and rural areas in a simple, direct, and effective way.
• Ensures that financial information is accessible regardless of geography, device type, or digital literacy level.

Objectives:

• Boost financial awareness and security in the era of digital payments and fintech.
• Build public trust in RBI’s advisories and the broader digital finance infrastructure.
• Help combat fraud by educating users about safe banking practices in real time.

Significance:

• WhatsApp has a massive user base in India, making it a powerful tool for real-time alerts and awareness.
• The initiative helps strengthen resilience in the digital financial ecosystem, especially among new or less tech-savvy users.

RBI

8. HDFC Bank, IDFC First Bank, and Stock Holding Corp to Sell Insurance to 35M+ NRIs via GIFT City

Context:

In a major regulatory development, HDFC Bank, IDFC First Bank’s IFSC unit, and Stock Holding Securities IFSC Ltd have received approvals to act as corporate agents and distribute insurance products to over 35 million NRIs and PIOs globally. This move, enabled under the Insurance Act, marks a significant expansion of financial services at GIFT City, India’s first International Financial Services Centre (IFSC).

Key Highlights

• Regulator: International Financial Services Centres Authority (IFSCA)
• Licensed Entities:
  • HDFC Bank Ltd
  • IDFC First Bank (IFSC Unit)
  • Stock Holding Securities IFSC Ltd
• Product Offerings: Life, health, and other general insurance policies tailored for NRIs/PIOs
• Coverage: Over 35 million Indians abroad (15.85 million NRIs + 19.57 million PIOs)

Why This Matters for NRIs/PIOs

• Succession Advantage: Insurance bought in Dubai, for example, is subject to Sharia law. In contrast, policies issued via GIFT City will follow the Indian Succession Act, simplifying inheritance processes for NRIs.
• Integrated Services: NRIs opening a bank account in GIFT City can now also access insurance products without visiting separate providers.
• Foreign Currency Products: These offerings will include dollar-denominated insurance products that cater to global income profiles.

GIFT City

GIFT City, short for Gujarat International Finance Tec-City, is a smart city and India’s first International Financial Services Centre (IFSC), designed to be a global financial and IT services hub, offering tax incentives and a conducive environment for businesses. 

• Purpose
  • GIFT City aims to become a leading global financial hub, attracting both domestic and international businesses, particularly in finance, technology, and related sectors. 
• Location
  • Situated on the banks of the Sabarmati River, between Ahmedabad and Gandhinagar in Gujarat, India. 

Expanding the Insurance Ecosystem in GIFT City

• Corporate Agents: These banks and financial entities will distribute insurance products, acting as intermediaries between insurers and global Indian clients.
• Future Plans:
  • Encourage global insurance companies and GCCs (Global Capability Centres) to establish operations in GIFT City.
  • Offer data processing, underwriting, and accrual services from India for global markets.

Standing Committee on Insurance – Strategic Roadmap

• Formed by: IFSCA
• Chairperson: M.R. Kumar, former Chairman of LIC
• Mandate:
  • Benchmark IFSCA’s insurance regulations with other global IFSCs
  • Improve Ease of Doing Business and regulatory efficiency
  • Recommend product innovation tailored to Indian corporates, NRIs, and PIOs
  • Enhance digital retail channels to sell life, health, and global-standard policies

Strategic Impact

• Strengthens India’s position as a global insurance hub
• Taps into $80+ billion annual NRI remittance potential
• Aligns with the One India One Market and financial inclusion for global Indians vision
• Reinforces GIFT City’s role as a financial innovation zone

BL

9. NABARD Sanctions ₹5,830 Crore to Jharkhand for Rural Infrastructure in FY25

Context:

The National Bank for Agriculture and Rural Development (NABARD) has extended a financial assistance package of ₹5,830 crore to Jharkhand for the financial year 2024–25, aimed at accelerating rural infrastructure development and enhancing the state’s agricultural productivity.

Key Highlights of the Assistance

• ₹3,772 crore sanctioned under the Rural Infrastructure Development Fund (RIDF)
• ₹1,797 crore allocated under the Short-Term Refinance facility for cooperative banks and RRBs
• ₹261 crore extended through Long-Term Refinance for strengthening rural credit institutions

Sectors Covered

The support covers projects across key rural sectors:

• Irrigation and watershed development
• Drinking water and sanitation
• Rural roads and bridges
• Health and education infrastructure
• Godowns and storage infrastructure

NABARD’s Broader Impact in Jharkhand

• Since inception, NABARD has sanctioned ₹20,000 crore+ under RIDF to the state
• Helped create 10.3 lakh hectares of irrigation potential
• Constructed 70,000+ km of rural roads and over 3,100 bridges
• Facilitated 5,000 rural drinking water supply projects
• Benefitted 2.45 crore rural people, improving connectivity, health, and access to basic services

Focus on Livelihoods and Rural Empowerment

NABARD is also:

• Supporting livelihood and income-generating activities through the Self Help Group–Bank Linkage Programme
• Promoting Farmer Producer Organizations (FPOs) and climate-resilient agriculture
• Implementing the JIVA programme for rejuvenating natural resources and sustainable farming
• Digitizing rural financing through eShakti (SHG digitization) and infrastructure for PACS and cooperative banks

Vision for FY25

NABARD aims to:

• Enhance agriculture value chains
• Boost climate-resilient infrastructure
• Promote financial inclusion across Jharkhand’s rural belts
• Collaborate with the state government to align rural infrastructure with sustainable development goals (SDGs)

TET

10. RBI Imposes Penalties on SCDCC Bank and Karnataka Gramin Bank

Context:

The Reserve Bank of India (RBI) has imposed monetary penalties on two cooperative banks for violating regulatory norms related to loan disbursals and asset classification, reinforcing its stance on banking compliance and governance standards.

₹5 Lakh Penalty on South Canara District Central Cooperative (SCDCC) Bank

• Violation: Issuance of loans to its own directors, breaching Section 20 read with Section 56 of the Banking Regulation Act
• Inspection: Conducted by NABARD, based on the bank’s financial status as of March 31, 2023
• Penalty Imposed: Under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act
• Process: RBI issued a show-cause notice, reviewed written and oral submissions before concluding a statutory compliance failure

RBI clarified that this penalty pertains solely to compliance issues and does not reflect on the legitimacy of customer transactions or agreements.

₹1 Lakh Penalty on Karnataka Gramin Bank

• Violation: Failure to classify certain loans as non-performing assets (NPAs)
• Non-compliance With: RBI’s directions under the ‘Strengthening of Prudential Norms (2001)’ and ‘Income Recognition and Asset Classification Guidelines (1996)’

RBI emphasized that these penalties are corrective in nature and form part of a broader effort to uphold prudential regulatory practices across the banking sector.

TH

11. SEBI Introduces Operational Framework for Performance Validation Agency

Context:

The Securities and Exchange Board of India (SEBI) has unveiled an operational framework aimed at establishing a Performance Validation Agency (PVA). This initiative seeks to address and reduce misleading claims about past performance in advertisements related to financial products by research analysts and investment advisers.

Key Highlights of the Framework

• Objective: To ensure that performance claims in financial advertisements are accurate and not misleading, thereby protecting investors and maintaining market integrity.
• Scope: The framework applies to research analysts and investment advisers, requiring them to have their performance claims validated by the PVA before including them in advertisements.
• Implementation: SEBI will oversee the establishment and functioning of the PVA, ensuring compliance with the operational guidelines set forth in the framework.

This move by SEBI is part of a broader effort to enhance transparency and trust in the financial markets by ensuring that investors receive reliable and verified information.

12. SEBI Proposes Investor Charter for KYC Registration Agencies to Boost Investor Awareness

Context:

In a bid to improve transparency and investor protection, the Securities and Exchange Board of India (SEBI) has proposed the introduction of an ‘Investor Charter’ for Know Your Client (KYC) Registration Agencies (KRAs). This move aims to enhance investor awareness and streamline interactions with KRAs for availing Investor Service Requests.

Purpose of the Investor Charter

• To educate investors about the role and responsibilities of KRAs.
• To outline the services offered, investor rights, and the grievance redressal mechanism.
• To promote standardized and transparent handling of KYC procedures in the securities market.

Key Elements of the Proposed Charter

• Vision and mission statements of KRAs
• List of services provided to investors
• Investors’ rights and responsibilities
• Do’s and Don’ts for investors while dealing with KRAs
• Clear grievance redressal mechanisms

SEBI mandates all registered KRAs to publicly display the charter on their websites, offices, and circulate it to investors via email.

About KYC Registration Agencies (KRAs)

• KRAs were introduced under the SEBI (KRA) Regulations, 2011 to centralize the storage and digitization of KYC records.
• A client opening an account or trading with any SEBI-registered intermediary must complete the KYC process, which is then uploaded by the intermediary to a KRA.
• Once registered, this KYC data can be accessed by all SEBI-registered intermediaries, eliminating the need for multiple submissions by the same client.

This proposed charter is part of SEBI’s ongoing efforts to strengthen investor confidence, encourage participation in the capital markets, and ensure a seamless and investor-friendly experience across all KYC touchpoints.

Economy

1. CPI Base Year Update to Reflect Rural Housing Trends

Context:

The upcoming new Consumer Price Index (CPI) series, set to launch in February 2026, will include housing inflation for rural areas for the first time.
Currently, housing is only factored into urban inflation, due to negligible rural rental markets in the past.

Emerging Trends Driving the Change

Recent Household Consumption Expenditure Surveys (HCES) indicate a noticeable rise in housing-related spending in rural areas.
This shift is attributed to:

• Increased mobility for work
• Changing consumption patterns
• Growth of rental markets beyond urban centers
  A government source confirmed that these factors reflect a flourishing rural housing market.

HCES 2022–23

The latest HCES data is being used to recalibrate the new CPI series with 2024 as the base year.
Notable changes since the last HCES (2011–12):

• Rural Housing MPCE rose from ₹7 to ₹30 (5x increase)
• Housing’s share in total rural expenditure doubled from 0.4% to 0.8%
• Urban Housing MPCE rose from ₹160 to ₹423
• Housing’s share in total urban expenditure reached 6.6%

Broader Macro Revisions in 2026

Alongside the new CPI series, updates are also scheduled for:

• Gross Domestic Product (GDP)
• Index of Industrial Production (IIP)
  All will be rebased to 2024 to ensure alignment with current economic patterns.

BS

2. CPI Revision to Capture Rural Housing Inflation

Context:

The upcoming revision of the Consumer Price Index (CPI) will, for the first time, include housing inflation in rural areas, reflecting changes in consumer behaviour and the emergence of rental housing markets beyond cities.

Current Scenario

Housing inflation is currently measured only under urban CPI, due to the traditionally negligible number of rented homes in rural areas.

Key Drivers of the Inclusion

Recent consumption surveys show that rural residents are now spending on rent, indicating a rise in housing demand outside urban centres.
This trend is linked to:

• Greater mobility for employment
• Evolving lifestyle preferences
• A growing rural rental market

Timeline and Technical Changes

• The new CPI series is set to roll out in February 2026.
• It will be based on the 2024 base year, in line with updates to other macroeconomic indicators including GDP and Index of Industrial Production (IIP).

HCES 2022–23

The Household Consumption Expenditure Survey (HCES) 2022–23 provides the foundation for the revised CPI. Key findings include:

• Rural MPCE on housing rose from ₹7 (2011–12) to ₹30 (2022–23), a fivefold increase
• Housing’s share in rural expenditure doubled from 0.4% to 0.8%
• Urban MPCE on housing rose from ₹160 to ₹423 during the same period
• Housing’s share in urban expenditure reached 6.6%

The CPI update marks a significant methodological shift, recognising the economic transformation of rural India and aligning inflation metrics with present-day consumption realities.

BS

3. RBI Rate Cut Likely Amid Global Pause and Trade Uncertainty

Context:

The US Federal Reserve, Bank of England, and People’s Bank of China have all opted to keep policy rates unchanged, signaling a cautious stance amidst growing global economic uncertainty driven by President Donald Trump’s trade policies and geopolitical tensions.

• US Fed: Held rates steady at 4.25–4.5% for a second consecutive time after three cuts in 2024; markets anticipate two more cuts in 2025.
• Bank of England: Kept rates at 4.5%, citing rising trade risks; rate path remains on a gradual downward slope.
• China: Paused further cuts after reducing rates in October 2024, balancing modest growth with currency pressure.

India’s Economic Landscape: Conditions Ripe for Another RBI Rate Cut

Since its last 25 bps rate cut in February 2025, the Reserve Bank of India (RBI) has seen a noticeable shift in macroeconomic indicators, increasing the likelihood of another rate reduction this week.

Falling Inflation Trends

• CPI inflation dropped to 3.61% in February, from 4.31% in January.
• Food inflation is at a 10-month low.
• Forecast: March CPI expected near 3.5%; Q4 FY25 average may be below 4%, well under RBI’s 4.4% forecast.
• FY25 full-year inflation may settle at 4.6%, below RBI’s 4.8% estimate.

Currency & Bond Market Strengthening

• Rupee Appreciation: From ₹87.59 in Feb to ₹85.23 in April.
• Bond yields falling: 10-year yield dropped from 6.7% to 6.47%.

Liquidity Surplus Restored

• Liquidity deficit of ₹3.3 trillion in Dec 2024 turned into a surplus of ₹2.16 trillion by April.
• RBI halted 14-day VRR auctions, indicating ample liquidity.

RBI’s Liquidity Tools in Action

Governor Sanjiv Malhotra has been aggressively using tools to ensure financial stability and smooth transmission of rate cuts:

• Long-term VRR auctions: ₹1.83 trillion infused.
• Open Market Operations (OMOs): ₹2.5 trillion already done; ₹80,000 crore more planned by April 29.
• Forex swaps: $25 billion in 3-year buy-sell swaps = ₹2.15 trillion injected.

What’s Next for RBI Policy?

• Policy stance likely to remain neutral, even with a rate cut.
• June policy may bring another cut or pause, depending on global trade war impact and domestic inflation trends.
• RBI may avoid shifting its stance now to retain flexibility amid external volatility.

GDP Outlook Steady

• FY25 GDP: 6.4% (NSO estimate)
• FY26 GDP: 6.7% (RBI projection)

Emerging Market Central Banks Join the Easing Cycle

Countries such as Australia, Indonesia, New Zealand, South Korea, Taiwan, Thailand, and India have already begun easing rates. Most have cut by 25 bps, with New Zealand cutting 50 bps.

With inflation cooling, liquidity returning, and external risks looming, the RBI has enough room to continue its easing cycle cautiously. Another 25 bps rate cut appears imminent, with a neutral policy stance allowing the central bank to stay nimble in a volatile global economic climate.

BL

Agriculture

1. Alfalfa Hay Import from US Still Awaits Final Approval from India’s Agriculture Ministry

Context:

Despite receiving clearance from India’s apex regulatory body for genetically modified organisms, the import of genetically engineered (GE) alfalfa hay from the United States remains pending final approval from the Ministry of Agriculture, creating a key sticking point in ongoing Indo-US trade talks.

Timeline of Developments

• July 2024: The Genetic Engineering Appraisal Committee (GEAC) cleared GE alfalfa hay imports after safety assessments.
• October 2022: The FSSAI raised reservations about GE animal feed imports.
• March 2024: The USTR report flagged India’s delay, citing repeated discussions with Indian authorities.
• October 2024: The USDA-FAS reported that the Indian Agriculture Ministry is reviewing the case and may soon authorize imports.

Key Details

• GE alfalfa hay was found to contain no living modified organisms, thus posing negligible environmental risk.
• FSSAI’s scientific panel concluded that it was safe for livestock and compliant with India’s GM crop policies.
• Final notification from the Ministry of Agriculture is awaited.

Trade and Policy Implications

• The delay in approval has emerged as a contentious issue in bilateral trade dialogues.
• The United States has consistently raised concerns since 2022, urging India to expedite the process.
• The issue was discussed during the January 2024 Trade Policy Forum (TPF) meeting.

India Also Reviews Alcohol Norms Amid US Push for Clarity

While the alfalfa import issue lingers, India is moving ahead in relaxing food safety norms for ready-to-drink (RTD) alcoholic beverages following US demands for a more flexible regulatory regime.

Low-Alcohol RTD Beverages: Regulatory Shift Underway

• India currently allows RTD beverages with 0.5–8% alcohol content.
• Discussions are underway to increase this range to 10–15%, a move supported by Indian industry stakeholders.
• The proposed changes aim to align with international standards and address USTR concerns.

USTR Highlights Additional Concerns in March 31 Report

• Lack of clear definitions for key product categories like single malt and grain whiskies
• Issues with non-recognition of US-issued certificates of analysis
• Ambiguity in labelling, alcohol standards, and packaging norms
• Concerns over adequate GI protection for products like Bourbon, Rye, and Tennessee Whiskey

India has sought specific clarifications from the US to resolve these matters and has acknowledged that GI protection and import of certain US spirits are already in place.

With mounting pressure from the US, India is expected to finalize its stance on alfalfa hay imports and food safety standards for alcoholic beverages soon. These decisions could significantly impact bilateral trade flows, agri-tech cooperation, and regulatory convergence between the two nations.

Facts To Remember

1. FinMin set to implement ´One StateOne RRB´ soon

he finance ministry will soon implement the ´One StateOne RRB´ plan to achieve operational efficiency and cost rationalisation and consolidation of 43 regional rural banks (RRBs) to 28.

2. World Health Day 2025

On April 7, the world observes World Health Day as a way to raise awareness of important health challenges and motivate group efforts to address them.

3. Defence Ministry Signs ₹2,385 Cr Deal with BEL for Mi-17 V5 EW Suites

The Ministry of Defence has inked a two thousand 385 crore rupee contract with Bharat Electronics Limited, Bengaluru, for electronic warfare suites and aircraft modification kits for Mi-17 V5 helicopters

4. 7th Poshan Pakhwada to Begin Tomorrow, Focus on Early Life Nutrition & Healthy Lifestyle

The Women and Child Development Ministry will celebrate the 7th edition of Poshan Pakhwada from tomorrow as part of the government’s ongoing commitment to addressing malnutrition. 

5. MeitY launches Digital Threat Report 2024 for banking, financial services, insurance sector

The Ministry of Electronics and Information Technology today launched the Digital Threat Report 2024 for the Banking, Financial Services, and insurance (BFSI) sector.

6. Over ₹32 lakh crore sanctioned under PM Mudra Yojana

Over 52 crore loans worth more than 32 lakh crore rupees have been sanctioned under Pradhan Mantri Mudra Yojana till date. The scheme was launched in 2015 to provide collateral-free loans of up to ten lakh rupees to non-corporate, non-farm small and micro enterprises, aiming to facilitate financial inclusion and empower entrepreneurs.

7. Rudrankksh strikes gold in 10m air rifle at ISSF World Cup

Former world champion Rudrankksh Balasaheb Patil won the gold medal in the men’s 10m air rifle shooting event at the ISSF World Cup 2025 Buenos Aires yesterday.

8. World Health Day 2025 being observed globally with theme ‘Healthy Beginnings, Hopeful Futures’

World Health Day is being celebrated across the globe today to raise awareness about health and good health practices.