Daily Current Affairs (DCA) 7 June, 2025

Daily Current Affairs Quiz
7 June, 2025

National Affairs

1. 800-Year-Old Shiva Temple from Pandya Era Unearthed in Tamil Nadu

Context:

An 800-year-old Shiva temple dating back to the later Pandya period has been unearthed in Udampatti village, Melur taluk, Madurai district, Tamil Nadu. The discovery sheds light on the region’s lost religious architecture and socio-economic systems during the 13th century.

Key Highlights

• Period: 1217–1218 CE during the reign of Maravarman Sundara Pandya
• Location: Udampatti village, previously known as Attur
• Deity: Dedicated to Lord Shiva, known as Thennavanisvaram
• Discovery: Unearthed by local children; confirmed by experts after clearing the site
• Remains: Only the temple’s stone foundation is intact, with inscriptions providing key historical details

Archaeological Significance

• Inscriptions: Two Tamil inscriptions found on the stone base
• Translation: The temple was financially supported through land and waterbody revenues
• Transaction: A waterbody named Nagankudi and surrounding land sold for 64 kasu (coins) by chieftain Alagaperumal to a man named Nambi Perambala Kuthan alias Kangeyan
• Revenue Usage: Taxes from the land were dedicated to the temple’s daily operations, indicating its financial independence

Cultural Importance

• The temple’s name, Thennavanisvaram, reflects the Pandya ruler’s title “Thennavan”
• The inscriptions validate ancient references to Attur village and its significance in the local temple economy
• The findings align with 1974–75 reports by the Tamil Nadu State Department of Archaeology about ancient temples in the region

TH

2. UMEED Portal

Context:

Union Minister for Minority Affairs Kiren Rijiju launched the Unified Waqf Management, Empowerment, Efficiency and Development (UMEED) portal, a centralized digital platform aimed at modernizing and improving the management of Waqf properties across India.

Key Highlights

• Launched by: Union Minister for Minority Affairs, Kiren Rijiju
• Platform Name: UMEED (Unified Waqf Management, Empowerment, Efficiency and Development)
• Objective: To ensure real-time uploading, verification, and monitoring of Waqf properties
• Significance: Aims to enhance transparency, accountability, and community participation in Waqf asset administration

Features of the UMEED Portal

• Digital Inventory: Creation of a centralized database with geotagging of all Waqf properties
• GIS Integration: Mapping of properties using GIS for improved oversight and spatial planning
• Public Access: Availability of verified property records and reports for citizens
• Online Grievance Redressal: Responsive digital system to address public concerns and disputes
• E-Governance Tools: Seamless integration with government systems for efficient monitoring and decision-making

PIB

3. Bharatiya Bhasha Anubhag

Context:

Union Home Minister Amit Shah launched the Bharatiya Bhasha Anubhag (BBA)—Indian Languages Section—to institutionalize the use of Indian languages in official administration and reduce dependence on foreign languages. The initiative aims to empower governance processes by rooting them in the linguistic diversity of India.

Key Highlights

• Launched by: Union Home Minister Amit Shah
• Initiative Name: Bharatiya Bhasha Anubhag (BBA) – Indian Languages Section
• Objective: To promote use of Indian languages in government communication and decision-making
• Budget Allocation (2024–25): ₹56 crore

Policy Context and Implementation

• The BBA will provide a platform to translate documents across Indian languages and Hindi, facilitating bilingual governance
• Linked to the Official Languages Rules, which govern communication between the Centre and States
• For Region C States (Tamil Nadu, Kerala, Karnataka), the rules mandate correspondence in English, which the BBA now aims to supplement with local language support

4. India Hosts 4th India-Central Asia Dialogue

Overview

• Event: 4th India-Central Asia Dialogue
• Venue: New Delhi, India
• Chair: Dr. S. Jaishankar, External Affairs Minister of India
• Participants: Foreign Ministers of Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, Uzbekistan

About the India-Central Asia Dialogue

• Initiated: 2019 (Samarkand)
• Nature: Multilateral forum to strengthen political, strategic, economic, and cultural engagement between India and the five Central Asian nations.
• Key Focus Areas: Trade, transport, energy, IT, health, security, and people-to-people connections.

Key Outcomes of the 4th Dialogue

• Counter-Terrorism & Regional Security
  • Condemned the Pahalgam terror attack.
  • Reiterated demand for early adoption of UN Comprehensive Convention on International Terrorism.
• Critical Minerals & Rare Earth Cooperation
  • Agreed to enhance collaboration on exploration, processing, and trade of rare earth elements.
  • Second India-Central Asia Rare Earth Forum to be organized soon.
• Connectivity & Trade Facilitation
  • Called for full operationalization of the International North-South Transport Corridor (INSTC).
  • Supported inclusion of Uzbekistan and Turkmenistan in INSTC framework.
  • Promoted usage of Chabahar Port for regional trade.
• Digital and Financial Integration
  • Emphasized development of digital payment systems, interbank cooperation, and trade in local currencies.
• Health & Traditional Medicine
  • Discussed progress on Universal Health Coverage (UHC) and medical tourism.
  • Promoted integration of traditional medicine systems.
• Energy and Technology Partnerships
  • Committed to collaborating on India Stack, biofuels, and the International Solar Alliance.
  • Joint emphasis on digital public infrastructure and clean energy initiatives.
• Multilateral Support
  • Central Asian countries reaffirmed support for:
    • India’s permanent membership in UNSC
    • Enhanced Indian role in SCO and UN-led platforms

Challenges in India–Central Asia Relations

• Geographical Isolation: No direct land border; transit limitations via Pakistan.
• China’s Dominance: China’s BRI investments overshadow India’s initiatives.
• Afghanistan Instability: Disrupts trans-regional connectivity.
• Low Trade Volume: Under $2 billion trade (2022–23).
• Bureaucratic & Language Barriers: Slow execution of agreements.

Way Forward

• Enhance INSTC & Chabahar Utilization: Use TIR Convention to streamline customs and multimodal transit.
• Boost Digital Diplomacy: Implement India Stack for governance and fintech cooperation.
• Accelerate Critical Mineral Ties: Encourage joint R&D, value chain development, and green energy collaboration.
• Strengthen Soft Power: Expand ITEC programs, cultural exchanges, and scholarship schemes.
• Establish Functional Mechanisms: Regular Joint Working Groups on health, fintech, climate, and security.

5. National e-Vidhan Application (NeVA)

Overview

• Event: Inauguration of National e-Vidhan Application (NeVA)
• Date: June 9, 2025
• Location: Puducherry Legislative Assembly
• Inaugurated By: Union Minister for Parliamentary Affairs

What is NeVA?

• NeVA is a digital legislative platform that enables paperless functioning of State and Union Territory legislatures across India.
• Anchored in the vision of ‘One Nation – One Application’, it provides a single digital interface for conducting legislative business.

Development & Implementation

• Developed by: Ministry of Parliamentary Affairs (MoPA)
• Technological Partners:
  • Supported by MeitY
  • Integrated with BHASHINI for AI/ML-powered multilingual translation
• Approval Date: January 15, 2020 (by Public Investment Board)
• Project Cost: ₹673.94 crore (centrally sponsored scheme)

Aims and Objectives

• To digitize legislative processes and ensure paperless governance in all Houses of legislature.
• To create a national repository of legislative data, enhancing transparency and real-time information access.

Key Features of NeVA

1. Complete Paperless Workflow
   • Digitally manages agendas, bills, questions, debates, and replies.
2. Real-Time AI Translation
   • Powered by BHASHINI, enabling instant multilingual translation of debates and documents.
3. Unified Digital Workspace
   • Seamlessly connects legislators, Assembly staff, and government departments on a single platform.
4. Secure Legislative Archives
   • Stores all documents in a searchable digital format with role-based secure access.
5. Capacity Building
   • Offers training modules for MLAs and Assembly staff to support user-friendly adoption.

Impact and Benefits

• Reduces the carbon footprint by eliminating paper usage.
• Enhances transparency, efficiency, and institutional memory in law-making.
• Promotes interoperability between various legislative bodies.
• Empowers citizens through real-time access to legislative data via the NeVA mobile app and website.

TH

6. 12th BRICS Parliamentary Forum to Be Held in 2026

Overview

• Event: India takes over as Chair of the 12th BRICS Parliamentary Forum
• Timeline: Chairmanship tenure from 2025 to 2026
• Previous Host: Brazil (11th Forum)
• Key Development: Forum condemned the Pahalgam terror attack, highlighting unified parliamentary voice against terrorism

About BRICS Parliamentary Forum

• Established: First held in 2015 to complement BRICS summits with inter-parliamentary engagement
• Nature: A multilateral platform for parliaments of BRICS nations to engage on key global challenges
• Rotational Chairmanship: Changes annually among BRICS countries

Objectives and Functions

• Strengthen Parliamentary Diplomacy: Promotes collaboration on global governance, terrorism, and sustainable development
• Promote Legislative Synergy: Encourages harmonization in lawmaking, democratic practices, and oversight mechanisms
• Voice of the Global South: Positions the forum as a parliamentary bloc for emerging economies and underrepresented regions
• Discuss Contemporary Challenges: Including AI governance, climate resilience, digital economy, and equitable growth

Focus Areas for India’s Chairmanship (2025–26)

• Terrorism and Global Security: Push for legislative consensus against terrorism
• Digital Democracy and AI Governance: Foster frameworks on AI regulation and ethical tech use
• Parliamentary Innovation: Promote e-Parliament tools, paperless lawmaking, and public engagement
• Inclusive Growth and SDGs: Align parliamentary policies with Sustainable Development Goals (SDGs)
• Civil Society and Youth Participation: Broaden outreach to non-state actors and youth in democratic governance

About BRICS

• What is BRICS?
  • A multilateral coalition of 11 emerging economies working towards reforming global institutions and promoting inclusive growth
• Founded:
  • Term ‘BRIC’ coined in 2001
  • First Summit: 2009, Ekaterinburg (Russia)
• No Permanent HQ: Chair rotates yearly
• Original Members: Brazil, Russia, India, China, South Africa
• New Members (2024 expansion): Egypt, Ethiopia, Iran, Indonesia, Saudi Arabia, UAE

Core Functions of BRICS

• Promote economic cooperation and multilateral reforms
• Strengthen South-South partnerships and global digital inclusion
• Collaborate on climate change, energy transition, fintech, and health infrastructure
• Support technology-driven governance and civil society engagement

7. INS Arnala

Overview

• Event: Commissioning of INS Arnala, the first of 16 Anti-Submarine Warfare Shallow Water Crafts (ASW-SWC)
• Location: Visakhapatnam naval base
• Significance: Boosts India’s coastal and sub-surface maritime security capabilities

About INS Arnala

• Type: Indigenously-built Anti-Submarine Warfare Shallow Water Craft
• Builder: Garden Reach Shipbuilders & Engineers (GRSE), Kolkata, in partnership with L&T Shipbuilders
• Operational Area: Coastal waters and the Indian Ocean Region (IOR)
• Primary Roles: Coastal surveillance, mine-laying, sub-surface operations, Low-Intensity Maritime Operations (LIMO), and Search and Rescue (SAR)
• Propulsion: First Indian naval warship powered by a Diesel Engine–Waterjet combination
• Indigenization: Approximately 80% indigenous systems from Bharat Electronics Limited (BEL), Mahindra Defence, MEIL, and L&T
• Advanced Systems: AI-driven combat systems, sonar arrays, and mine-laying equipment

About Arnala Fort (Namesake of INS Arnala)

• Location: Arnala village, Vasai taluka, Maharashtra, near Mumbai’s northern coast
• Other Names: Jaldurg or Janjire Arnala
• Historical Background:
  • Built by Sultan Mahmud Begda in 1516
  • Later controlled by Portuguese, Marathas, Mughals, and Peshwas
• Architecture: Rectangular structure with three main entrances and multiple bastions
• Cultural Features: Houses temples such as Tryambakeshwar, Bhavani Mata, Kalika Mata, and Mahadev
• Sustainability: Despite scarcity of food on the fort, water was available in wells, reflecting coastal defense ingenuity

TET

Banking/Finance

1. RBI Cuts Repo Rate to 5.5% and CRR

Key Policy Announcements

• Repo Rate: Reduced by 50 basis points to 5.50%
• Cash Reserve Ratio (CRR): Slashed by 100 basis points in a staggered manner
  • Final CRR to be 3% of NDTL
  • Four phased cuts of 25 bps each on:
    • Sept 6, Oct 4, Nov 1, Nov 29
• Other Rates:
  • Standing Deposit Facility (SDF): 5.25%
  • Marginal Standing Facility (MSF) & Bank Rate: 5.75%
• Policy Stance: Shifted from ‘accommodative’ to ‘neutral’
  • Offers flexibility for future tightening if inflation trends reverse

Why Did RBI Cut Rates and CRR

• Inflation under control:
  • CPI inflation for FY26 projected at 3.7% (revised down from 4%)
    • Q1: 2.9%, Q2: 3.4%, Q3: 3.9%, Q4: 4.4%
• Stable growth outlook:
  • FY26 GDP growth retained at 6.5%
  • Supported by:
    • Private consumption recovery
    • Rural activity revival
    • Government capex
    • Above-normal monsoon forecast
• Liquidity and transmission goals:
  • CRR cut to release ₹2.5 lakh crore in primary liquidity
  • Aims to reduce cost of funds and enhance credit flow
• Growth Concerns:
  • Growth remains below aspirational levels amid global challenges
  • Emphasis on stimulating domestic private consumption and investment

Impact on Borrowers, Banks, and Depositors

a. For Borrowers:

• Home, auto, and personal loans likely to get cheaper
• Repo-linked borrowers to benefit faster
• Potential for home loan rates <8%, last seen in 2022

b. For Banks and NBFCs:

• Cost of funds to decline
• More lending capital available
• Expected to strengthen policy transmission

c. For Savers and FD Investors:

• FD rates may decline
• Consider:
  • Locking in long-term FDs now
  • Exploring debt mutual funds and corporate bonds

Sectoral & Macroeconomic Outlook

• Real estate: Boost for affordable and mid-income housing
  • Lower EMIs to improve buyer affordability
  • Developer borrowing costs to decline
• Rural economy: Supported by above-normal monsoon, aiding farm output and demand
• Services sector: Momentum expected to continue
• Corporate sector: Improved balance sheets, rising capacity utilisation to support investment

2. RBI’s Monetary Policy Shift Prioritizes Growth Amid Low Inflation

Context:

The Reserve Bank of India’s Monetary Policy Committee (MPC) decisively chose growth over inflation concerns in its latest policy stance. The MPC cut the repo rate by 50 basis points to 5.5%, marking the third rate cut since February 2025. This move follows retail inflation hitting a 69-month low, allowing the RBI to deprioritize price stability in favor of stimulating economic activity.

Change in Policy Stance

• The RBI reverted its stance from accommodative (in April) back to neutral, signaling limited scope for further rate cuts unless growth weakens sharply.
• Neutral stance allows flexibility to hike rates if inflation unexpectedly surges, considering ongoing uncertainties including the monsoon outcome.

Rationale and Timing

• Inflation is currently subdued and unlikely to rise soon if prevailing conditions persist.
• Absence of major elections removes the need for pre-emptive monetary tightening.
• Growth remains moderate, with GDP projected at 6.5% for FY 2025-26, similar to last year’s provisional estimate.

Fiscal-Monetary Coordination

• Government’s fiscal stimulus has reached a plateau with capital expenditure maintained but unlikely to increase significantly due to developmental and defense commitments.
• Monetary policy is expected to take the lead in driving growth momentum, reflecting alignment between RBI and government priorities.

BS

3. RBI Revises Loan-to-Value (LTV) Ratios for Loans Against Gold Collateral

Context:

The Reserve Bank is all set to raise the loan-to-value (LTV) ratio for lending against gold to 85% for loans under ₹2.5 lakh from the present 75%, Governor Sanjay Malhotra announced.

Key Changes

• Increased LTV for Small Loans:
  • For loans up to ₹2.5 lakh, the LTV ratio has been raised from 75% to 85%, allowing borrowers to get a higher loan amount against the same gold collateral.
• LTV Ratios for Larger Loans:
  • Loans between ₹2.5 lakh and ₹5 lakh have an LTV ratio fixed at 80%.
  • Loans above ₹5 lakh have an LTV ratio capped at 75%.
• LTV Calculation Method:
  • The LTV ratio on any given day is the ratio of the outstanding loan amount to the market value of the pledged gold on that day.
  • For bullet repayment loans, the entire amount payable at maturity is considered in the LTV calculation.
• Collateral Weight Limits:
  • Maximum weight of gold ornaments pledged should be 1 kilogram or less.
  • Maximum weight of silver pledged is limited to 10 kilograms.

What Is the Loan-to-Value (LTV) Ratio?

• The Loan-to-Value (LTV) Ratio is a key financial metric used by lenders to assess the risk level of a mortgage or loan.
• It compares the loan amount to the appraised value of the property.

LTV Formula:

• Example: If you borrow ₹90,00,000 for a home appraised at ₹1,00,00,000, your LTV is 90%.

Why LTV Matters:

• Lower LTVs (<80%): Preferred by lenders, leads to lower interest rates and no PMI (Private Mortgage Insurance).
• Higher LTVs (>80%): Considered riskier, usually results in higher interest rates and may require PMI.

Where LTV Is Used:

• Home purchases
• Mortgage refinancing
• Home equity loans or lines of credit

Impact on Borrowers:

• A high LTV (e.g., 95%) may still get approved, but:
  • Comes with higher interest rates
  • Requires PMI
• A low LTV (e.g., 75%):
  • Enhances approval chances
  • Reduces borrowing cost

4. RBI Lowers Qualifying Asset Threshold for NBFC-MFIs to 60%

Background

• Previously, NBFC-MFIs were required to maintain qualifying assets at 75% of their total assets (net of intangible assets).
• Qualifying assets are microfinance loans that NBFC-MFIs must hold to be classified under the sector.

Key Change

• RBI has reduced the qualifying asset threshold from 75% to 60%.
• The 60% threshold must be maintained on an ongoing basis.

Compliance Requirement

• NBFC-MFIs failing to meet the 60% qualifying asset requirement for four consecutive quarters must submit a remediation plan to the RBI for review and approval.

Implications for NBFC-MFIs

• Enables NBFC-MFIs to diversify their asset portfolio beyond microfinance loans.
• Improves financial strength and operational flexibility.
• Allows the sector to expand services and serve a broader borrower base.
• Supports the design of loans with more adaptive terms.

5. RBI to Review Bank Licensing Norms, Ownership Structure Amid Economic Expansion

Context:

The Reserve Bank of India (RBI) is reassessing its framework for bank licensing and ownership to align with India’s growing economic needs. Governor Sanjay Malhotra stated the need for more banks and trustworthy promoters, owners, and managers in the banking system. Review triggered by increasing demand for financial intermediation and international investor interest in Indian banks.

Ownership and Eligibility Norms Under Review

• Existing caps:
  • Foreign ownership allowed up to 74% (including portfolio investors).
  • 15% cap on strategic foreign investor ownership.
  • 5% or more stake requires prior RBI approval.
  • 26% voting rights cap for large shareholders.
• Malhotra: “We allow 15% for non-residents, but on a case-by-case basis it can go above.”
• Example: Fairfax was permitted to acquire 51% in Catholic Syrian Bank.

Recent Developments in Foreign Bank Investment

• Sumitomo Mitsui Banking Corporation (SMBC) plans to buy 20% in Yes Bank from SBI and seven private banks for ₹13,482 crore.
• Emirates NBD (Dubai-based) received approval to establish a wholly owned subsidiary in India and is exploring a majority stake in IDBI Bank.
• IDBI Bank Disinvestment:
  • Government to sell 30.48% stake.
  • LIC to sell 30.24% stake.
• RBI is evaluating the ‘fit and proper’ criteria of prospective investors.

RBI to Review Type I NBFC Regulatory Framework

• RBI plans to evaluate and potentially revise regulations for Type I NBFCs (non-deposit-taking NBFCs with no public interface).
• Governor: “If a separate framework is necessary based on risk profile, we will introduce one.”

Implications and Sectoral Impact

• Policy Modernisation: Move reflects RBI’s intent to adapt licensing and ownership rules for a more dynamic financial ecosystem.
• Increased Foreign Participation: Case-by-case flexibility may attract long-term foreign capital while preserving regulatory oversight.
• Opportunity for SFBs: Opens the door for larger roles by well-performing small finance banks.
• Customized Oversight: Tailored regulation for low-risk NBFCs expected to reduce compliance burden.

BS

6. RBI Imposes Monetary Penalties on Three Financial Institutions for Regulatory Violations

Context:

The Reserve Bank of India (RBI) has levied monetary fines on three financial institutions for breaches of regulatory guidelines related to deposit acceptance, KYC compliance, and supervisory norms.

Details of Penalties

• PayMe India Financial Services Pvt Ltd
  • Fine: ₹2 lakh
  • Violations:
    • Unauthorized acceptance of public deposits, prohibited under its Certificate of Registration (CoR) conditions per Section 45IA(5) of the RBI Act, 1934.
    • Failure to obtain prior RBI approval for a change in shareholding exceeding 26% of its paid-up equity capital.
• Ratanchand Shah Sahakari Bank Ltd, Mangalwedha (Maharashtra)
  • Fine: ₹2 lakh
  • Violations:
    • Lapses in Know Your Customer (KYC) compliance and breach of supervisory norms under the RBI’s Supervisory Action Framework (SAF).
    • Offering interest rates on deposits higher than SAF guidelines permit.
    • Exceeding single borrower exposure limits.
    • Issuing multiple Customer Identification Codes (CICs) instead of the mandated Unique Customer Identification Code (UCIC).
• Poornawadi Nagarik Sahakari Bank Maryadit, Beed (Maharashtra)
  • Fine: ₹1 lakh
  • Violations:
    • Non-compliance with advanced management and KYC norms.
    • Sanctioning gold loans exceeding permissible Loan-to-Value (LTV) ratios.
    • Delayed uploading of KYC records to the Central KYC Registry.

Recent Related Enforcement:

• In May 2025, RBI fined:
  • State Bank of India (SBI): ₹1.72 crore
  • Jana Small Finance Bank: ₹1 crore
    for similar regulatory violations.

7. SEBI Attaches Mehul Choksi’s Bank, Demat, and MF Holdings to Recover ₹2.1 Crore in Insider Trading Case

Context:

The Securities and Exchange Board of India (SEBI) has attached the bank accounts, demat holdings, and mutual funds of absconding businessman Mehul Choksi.

• Objective: Recover dues worth ₹2.1 crore linked to insider trading violations in Gitanjali Gems shares.

Background of the Case

• Mehul Choksi, former CMD and promoter of Gitanjali Gems, was fined ₹1.5 crore by SEBI in January 2022.
• Penalty included interest of ₹60 lakh, taking total dues to ₹2.1 crore.
• A demand notice was issued on May 15, 2025, giving Choksi 15 days to pay, failing which SEBI would proceed with asset attachment.

SEBI’s Attachment Order (Dated 4 June 2025)

• Directed CDSL, NSDL, mutual fund houses, and all banks to:
  • Block all debit transactions from Choksi’s accounts
  • Attach all accounts and lockers in his name
  • Permit credits but restrict fund movements to protect asset value
• SEBI noted a risk of asset disposal and potential obstruction to recovery if urgent action wasn’t taken.

Facts To Remember

1. PM inaugurates rail projects in J&K, reminds Pakistan of ‘massive defeat’

Describing the Pahalgam terror attack as “an attack on Kashmiriyat and insaniyat (humanity)”, Prime Minister Narendra Modi on Friday said that India’s response, Operation Sindoor, had served a humiliating defeat to Pakistan.

2. PM Modi to Attend G-7 Summit in Canada Amid Signs of Diplomatic Reset

Prime Minister Narendra Modi will represent India at the upcoming G-7 summit in Kananaskis, Alberta, Canada next week. The invitation was extended by newly elected Canadian Prime Minister Mark Carney during a recent phone call, and Modi confirmed his participation on Friday. The visit is expected to signal a potential thaw in strained Indo-Canadian relations.

3. PNB, Indian Bank, BoI, UCO Bank, KVB tweak interest rates

Punjab National Bank (PNB), Indian Bank, UCO Bank, Bank of India (BoI) and Karur Vysya Bank (KVB) announced reduction in certain key rates in the backdrop of RBI slashing the repo rate by 50 basis points (bps).