Daily Current Affairs (DCA) 9 September, 2025

Daily Current Affairs Quiz
9 September, 2025

National Affairs

1. Two-Factor Authentication (2FA) and TOTP

Source: TH

Context:

With rising cyber threats, passwords alone are no longer secure. Many online services now rely on Two-Factor Authentication (2FA), often implemented through apps like Google Authenticator, which generate time-based one-time passwords (TOTPs).

What is 2FA?

• Two-Factor Authentication requires two proofs of identity:
  1. Something you know → Your password.
  2. Something you have → An authenticator app or hardware token.
• This makes attacks harder because both your password and your device are needed.

What are OTPs and TOTPs?

• OTP (One-Time Password): A short numeric code valid for a single use, expiring within seconds.
• TOTP (Time-based OTP): A special form of OTP that changes every 30 seconds.
• Defined under an open standard, ensuring compatibility across services and apps.

How Does TOTP Work?

• Secret Key Sharing: During setup, the service gives your app a secret key (often via QR code). Both sides store it.
• Time Counter: Time is divided into 30-second intervals, each with a unique counter value.
• HMAC Function:
  • Inputs: secret key + current time counter.
  • Process: Run through HMAC-SHA-256, a secure cryptographic function.
• Dynamic Truncation: Extract part of the HMAC output.
• Final OTP: Reduce it to a 6-digit code (000000–999999).

Because both your phone and the server share the secret key and use the same time slice, they generate identical codes.

Read more>>

2. Bhil Tribe

Source: TH

Context:

The Union government’s new translation initiative for tribal languages has enabled the publication of Anuvad, a Hindi collection of Bhil folk tales from Madhya Pradesh. The e-booklet will be made available on the Tribal Affairs Ministry’s Adi Vaani website and app.

Bhil Tribe:

• One of India’s oldest tribal communities, name derived from Dravidian word billu/villu (bow).
• The largest tribes in India, according to the 2011 Census, are the Bhil tribe, followed by the Gond tribe and the Santhal tribe. 
• Habitats: Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Bihar; smaller populations in Tripura, Chhattisgarh, and Jharkhand.
• Culture: Patriarchal yet community-centric, rich oral traditions, folk tales, music, theatre, and worship of local/natural deities.

Adi Vaani Platform:

• Launched by the Ministry of Tribal Affairs for translation between Adivasi languages and Hindi/English.
• Currently supports Gondi, Bhili, Mundari, and Santali; support for Kui and Garo planned.
• Available on Android and iOS with a feedback mechanism for improving accuracy.
• Developed as a cost-effective, frugal innovation using linguistic data from State Tribal Research Institutes.

3. Vice President of India Election

Context:

Prime Minister of India cast the first vote in the Vice Presidential election, where CP Radhakrishnan and Justice B. Sudershan Reddy are contesting.

Electoral Process:

• Electoral College:
  • Composed of all elected and nominated members of Lok Sabha and Rajya Sabha.
  • Unlike the President’s election, State Legislatures are excluded.
• Equal Value of Votes:
  • Each MP’s vote = 1 (no weighted value like in Presidential election).
• Ballot Paper & Preferences:
  • Ballot paper is pink, bilingual (Hindi & English).
  • MPs mark preferences numerically (1, 2, 3…).

Quota Calculation (Winning Threshold):

• Formula: (Total Valid Votes ÷ 2) + 1
• Example: If 780 MPs vote, quota = 391 votes.

Counting & Transfer of Votes (Single Transferable Vote – STV):

• First Preference Count: Candidate reaching quota is declared elected.
• If no one reaches quota → lowest candidate eliminated, votes transferred based on next preference.
• Process repeats until a candidate crosses the quota.

Constitutional Provisions:

• Article 63: Establishes the office of the Vice President as the second-highest constitutional authority.
• Article 64: Vice President is ex-officio Chairperson of the Rajya Sabha; cannot hold any other office of profit.
• Article 65: Acts as President in the event of death, resignation, removal, or incapacity of the President, until a new election is held (within 6 months).

Eligibility Criteria:

• Citizenship: Must be a citizen of India.
• Age: Minimum 35 years.
• Qualification: Must be eligible for election as a member of the Rajya Sabha.
• Office of Profit: Cannot hold any office of profit under the Union, State, or local authority, except as Vice President, Governor, or Union/State Minister.

Key Features of the Office:

• Tenure: 5 years; continues until successor assumes office.
• Vacancy & Removal:
  • Can resign to the President.
  • Can be removed by a Rajya Sabha resolution, agreed to by Lok Sabha (14-day notice required).
• Acting President: Assumes all powers, privileges, and emoluments of the President during absence or vacancy.
• Chairperson Role:
  • Presides over Rajya Sabha debates and maintains order.
  • Does not vote, except in case of a tie.

4. Pallas’s Cat

Source: TOI

Context:

A wildlife survey by WWF-India in collaboration with the Arunachal Pradesh Forest Department has provided the first-ever photographic evidence of Pallas’s cat in the state, reaffirming the eastern Himalayas’ position as a global biodiversity hotspot.

About Pallas’s Cat:

• Scientific name: Otocolobus manul.
• Small wild cat, adapted to cold, arid environments.
• Known for its dense fur, stocky build, and flattened face.
• Habitat: Central Asia, Mongolia, Tibet, and Himalayan regions.
• IUCN Status: Near Threatened

Banking/Finance

1. SEBI Postpones Settlement for Cash and SLBM Segments

Source: BS

Context:

The Securities and Exchange Board of India (SEBI) announced changes in the settlement schedule for cash and securities lending and borrowing mechanism (SLBM) market segments due to clearing corporation holidays.

Key Highlights:

• Reason for Revision: Clearing corporation holidays impacting normal settlement cycles.
• Affected Segments:
  • Cash market
  • SLBM market
• Objective: Ensure smooth settlement operations, avoid disruptions, and maintain market integrity.
• Cash Market: Trades in the regular stock market where shares are bought/sold for immediate delivery (T+2).
• SLBM: A market that allows investors to lend or borrow securities temporarily, facilitating activities like short selling and enhancing liquidity.
• Settlement Schedule: The timeline for transfer of money and securities post-trade.

2. SAT Asks Sebi to Explain Non-Disclosure of Documents in Jane Street Case

Source: ET

Context:

On 10 September 2025, the Securities Appellate Tribunal (SAT) directed Sebi to file a reply within three weeks explaining why it has not disclosed certain documents to US-based trading firm Jane Street in the ongoing derivatives market manipulation case.

Background:

• Jane Street had approached SAT alleging that SEBI failed to provide key documents related to its investigation into derivatives market manipulation, which they claimed were necessary to defend themselves effectively.
• The case pertains to alleged trading irregularities in the derivatives segment, potentially involving misuse of market positions, insider trading, or other manipulative practices.

SEBI Norms Potentially Invoked:

• SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 – Prevents market manipulation, deceptive practices, or artificial price movements.
• SEBI (Prohibition of Insider Trading) Regulations, 2015 – Addresses trading based on unpublished price-sensitive information.
• SEBI (Procedure for Holding Inquiry and Imposing Penalties) Regulations, 2014 – Governs how SEBI conducts investigations and shares documents with parties under inquiry.
• SEBI Act, 1992 (Sections 11, 11B, 11C) – Provides SEBI the authority to regulate securities markets and take action against manipulative practices.

Securities Appellate Tribunal (SAT)

The Securities Appellate Tribunal (SAT) is a quasi-judicial body in India that adjudicates disputes and appeals arising from decisions of the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA).

Establishment:

• Constituted under Section 15K of the Securities and Exchange Board of India Act, 1992.
• Located in Mumbai, but can hold hearings at other places if necessary.

3. Reinsurance India

Context:

Jio Financial Services Ltd (JFSL) and Allianz Germany have incorporated a joint venture company named Allianz Jio Reinsurance Ltd (AJRL) to operate in the Indian reinsurance sector, reflecting the growing demand for risk management solutions in the country.

What is a Reinsurer?

• A reinsurer is an insurance company that provides insurance to other insurance companies.
• It helps share or transfer risk, especially for large or catastrophic exposures, so that no single insurance company bears the entire risk.
• Example: If an insurance company covers a huge industrial project, it may cede a portion of the premium and risk to a reinsurer like Allianz Re.

Key Functions of a Reinsurer:

1. Risk diversification for insurers.
2. Protection against huge claims.
3. Financial stability of insurance companies.
4. Capacity building for large-scale insurance coverage.

Types of Insurance

Type of Insurance	Description	Examples
Life Insurance	Covers death, disability, or survival risks. Provides financial security to dependents.	Term insurance, Endowment plans, ULIPs
General (Non-Life) Insurance	Covers property, health, vehicles, liability, etc.	Health insurance, Motor insurance, Home insurance, Travel insurance
Reinsurance	Insurance for insurance companies to share/transfer risk. Can be treaty-based (portfolio) or facultative (specific risk).	Allianz Re, Swiss Re, GIC Re (Only Indian reinsurer company in India)
Microinsurance	Low-cost insurance for low-income populations.	Crop insurance for small farmers, Livestock insurance

Who Regulates Insurance in India?

• Regulator: Insurance Regulatory and Development Authority of India (IRDAI)
• Established: 1999 (under IRDA Act, 1999)

4. Ujjivan Small Finance Bank Awaits RBI Nod for Universal Bank Licence

Source: Mint

Context:

Ujjivan Small Finance Bank (SFB) is awaiting the Reserve Bank of India’s (RBI) decision on its application for a universal banking licence, which could come by December 2025, according to CEO Sanjeev Nautiyal.

About Universal Bank:

A universal bank in India is a financial institution that provides the entire spectrum of banking services, including:

• Retail banking
• Corporate banking
• Investment banking
• Treasury services
• Asset management

Criteria to Become a Universal Bank in India (RBI Guidelines):

• Net Worth: The applicant bank must have a minimum paid-up capital of ₹500 crore (may vary as per RBI directions).
• Profitability & Track Record: The bank should have a strong financial track record and operational performance (for SFBs or other applicants).
• Corporate Governance: Robust governance, risk management, and compliance framework.
• Capital Adequacy: Must meet the Capital to Risk-Weighted Assets Ratio (CRAR) requirements as per Basel norms (minimum 9% for Indian banks).
• Promoter Eligibility: Promoters must meet RBI criteria regarding integrity, experience, and financial soundness.
• Business Plan: Must submit a credible business plan outlining financial projections, growth strategy, and risk management.

5. SBI Launches “Dream2Demo” Startup Pitch Fest

Context:

State Bank of India (SBI), through its Start-up Branch, hosted its first-ever Startup Pitch Fest called “Dream2Demo” to provide a platform for entrepreneurs to showcase their business ideas directly to leading investors. The event was held to promote innovation and strengthen India’s startup ecosystem.

Key Highlights:

• Financial Products: SBI showcased customized offerings for startups, including equity-linked funding solutions.
• Collaborations: The bank highlighted its partnerships with Startup TN and IIT Madras Incubation Cell.
• Objective: Facilitate startup growth from grassroots to global stages, ensuring mentorship, funding, and exposure.

Related Initiatives:

• In August 2025, SBI established a Centre of Excellence (CoE) for Micro, Small and Medium Enterprises (MSMEs) at the State Bank Academy (SBA) in Gurugram to further support business development and financial inclusion.

About SBI:

• Founded: 1 July 1955
• Headquarters: Mumbai, Maharashtra, India
• Chairman: Challa Sreenivasulu Setty

Economy

1. Small Business Spotlight Report

Context:

The Small Industries Development Bank of India (SIDBI), in collaboration with CRIF High Mark, released the Small Business Spotlight report, providing insights into lending trends, borrower segments, and geographic distribution of small business credit in India.

Key Highlights:

Credit Growth

• Total outstanding credit: ₹15.3 lakh crore (YoY growth 19.3%)
• Active loans: 6.9 crore (YoY growth 8.7%)
• Small business definition: Businesses with aggregate credit exposure ≤ ₹5 crore

Top Borrower Segments

Segment	Contribution / Growth	Key Insight
Enterprises	Portfolio growth 24.7% YoY	Highest growth in outstanding credit
Sole Proprietors with Entity Presence	Borrower count growth 9.3% YoY	Fastest increase in number of borrowers
Sole Proprietors	>75% of outstanding credit, >85% of active loans	Dominant segment in terms of volume

Geographic Distribution

Top States by Portfolio Outstanding:

Rank	State	Outstanding (₹ Thousand cr)	YoY Growth (%)	% Share
1	Maharashtra	606.2	16.4	13.4%
2	Tamil Nadu	421.9	15.7	9.3%
3	Gujarat	369.2	17.8	8.2%
4	Uttar Pradesh	361.7	20.7	8.0%
5	Karnataka	318.6	15.3	7.0%

Read more>>

Facts To Remember

1. Sankarshan Thakur, senior journalist, passes away

Sankarshan Thakur, Editor of The Telegraph, passed away in a Gurgaon hospital on Monday. He was 63.

2. Macron Appoints Defence Minister Lecornu, 39, as France’s New PM

French President Emanuel Macron late on Tuesday appointed defence minister Sébastien Lecornu (in pic) as France’s new Prime Minister, the country’s fourth in about a year.

3. Doctors to bat for Healthcare League cancer awareness

In a unique initiative to promote cancer awareness, doctors, including former Director General of ICMR Prof Balram Bhargava, will swap their stethoscopes for cricket bats.