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Daily Current Affairs
4 September, 2025
1. The GST Council approved GST 2.0 reforms in September 2025. Which of the following is the new tax slab structure?
a) 0%, 5%, 12%, 18%
b) 5%, 12%, 18%, 28%
c) 0%, 5%, 18%, 28%
d) 0%, 5%, 18%, 40%
e) 5%, 18%, 28%, 40%
Answer: d) 0%, 5%, 18%, 40%
Explanation: The new GST 2.0 slab structure effective from 22 Sept 2025 is – 0% (exempted items), 5% (merit rate), 18% (standard rate), and 40% (demerit rate).
2. Under GST 2.0, which of the following is exempted (0% rate) from tax?
a) Cement
b) Air Conditioners
c) Ultra-High Temperature (UHT) milk
d) Tobacco
e) Shampoos
Answer: c) Ultra-High Temperature (UHT) milk
Explanation: UHT milk, paneer, Indian breads, erasers, health insurance, life insurance, and 33 life-saving medicines are exempted under 0% GST.
3. Which of the following items is taxed at the 40% demerit rate under GST 2.0 reforms?
a) Electric Vehicles (EVs)
b) Tobacco products
c) Small cars (≤1200cc petrol / ≤1500cc diesel)
d) Soaps and Shampoos
e) Medical Oxygen
Answer: b) Tobacco products
Explanation: Tobacco, cigarettes, pan masala, and big luxury cars are placed under the highest GST slab of 40% (demerit rate).
4. The ARTHA framework launched by the government in 2025 is associated with:
a) Digital agriculture procurement
b) Green financing for repurposing de-coaled mines
c) Collateral-free MSME loans
d) GST rationalisation
e) Export promotion of handicrafts
Answer: b) Green financing for repurposing de-coaled mines
Explanation: ARTHA is a financing framework that supports the reuse and repurposing of de-coaled mines for sustainable land use and energy-transition goals.
5. Long-duration debt mutual funds mainly invest in:
a) Equity shares
b) Short-term Treasury Bills
c) Commodities
d) Long-term fixed-income instruments like G-secs and bonds
e) Real estate assets
Answer: d) Long-term fixed-income instruments like G-secs and bonds
Explanation: Long-duration debt MFs invest in government securities, corporate bonds, and debentures with maturity of more than 7 years.
6. Recently, long-duration debt funds delivered poor returns. The primary reason was:
a) Rise in gold prices
b) Decline in stock market indices
c) Increase in government securities (G-sec) yields
d) Fall in crude oil prices
e) Strengthening of rupee against dollar
Answer: c) Increase in government securities (G-sec) yields
Explanation: Rising G-sec yields (due to inflation concerns, RBI stance, and higher govt borrowing) led to falling bond prices, reducing NAV of long-duration funds.
7. The RBI uses the Variable Rate Reverse Repo (VRRR) primarily to:
a) Inject liquidity into the system
b) Absorb excess liquidity from the system
c) Provide collateral-free loans to banks
d) Control foreign exchange reserves
e) Support exports
Answer: b) Absorb excess liquidity from the system
Explanation: VRRR allows banks to park surplus cash with RBI, thereby draining liquidity, controlling inflation, and aligning short-term rates with repo.
8. In September 2025, RBI planned an 8-day VRRR auction to drain how much liquidity?
a) ₹50,000 crore
b) ₹75,000 crore
c) ₹1 trillion
d) ₹1.5 trillion
e) ₹2 trillion
Answer: d) ₹1.5 trillion
Explanation: RBI announced an 8-day VRRR auction to absorb ₹1.5 trillion liquidity from the banking system.
9. Bank of Baroda’s ‘bob Digi Udyam’ provides collateral-free digital loans to:
a) Farmers under MSP procurement
b) Large corporations above ₹500 crore turnover
c) Micro and Small Enterprises (MSEs)
d) Students for education loans
e) Exporters for overseas projects
Answer: c) Micro and Small Enterprises (MSEs)
Explanation: BoB launched ‘bob Digi Udyam’ to provide quick, collateral-free working capital loans (₹10–50 lakh) to MSEs, backed by CGTMSE guarantee.
10. The Kapas Kisan App launched in Sept 2025 was developed by which organisation?
a) NABARD
b) NITI Aayog
c) Cotton Corporation of India (CCI)
d) Indian Council of Agricultural Research (ICAR)
e) Ministry of Agriculture
Answer: c) Cotton Corporation of India (CCI)
Explanation: The Cotton Corporation of India (CCI), under the Ministry of Textiles, developed the Kapas Kisan app to digitize cotton procurement under the MSP scheme.
