Daily Current Affairs (DCA) 16 & 17 May, 2025

Daily Current Affairs Quiz
16 & 17 May, 2025

International Affairs

1. IMF to Release $1.3 Billion to Bangladesh After Fourth Loan Review

Context:

The International Monetary Fund (IMF) will disburse $1.3 billion to Bangladesh in June 2025 after the completion of the fourth review of its $4.7 billion loan program.

Key Highlights:

• The fourth and fifth tranches will be released together, delayed earlier due to IMF’s insistence on exchange rate reforms.
• Bangladesh has agreed to adopt a crawling peg exchange rate system to increase currency flexibility.

Major Reforms and IMF Conditions

• Bangladesh government dissolved the National Board of Revenue (NBR).
• Two new revenue divisions have been created under the Ministry of Finance, meeting a key IMF condition.
• Agreements were finalized on:
  • Currency exchange rate regime
  • Revenue management frameworks
  • Overall reform alignment

Significance

• The move strengthens foreign exchange reserves, stabilizes the taka, and reinforces Bangladesh’s commitment to fiscal consolidation and transparency.
• It supports Bangladesh’s goal to sustain macroeconomic stability amid global economic challenges.

Recent Related News:

• In May 2025, the IMF approved a $1 billion loan to Pakistan under the Extended Fund Facility (EFF).

About the International Monetary Fund (IMF)

• Established: 22 July 1944
• Headquarters: Washington, D.C., USA
• Managing Director: Kristalina Georgieva
• Membership: 191 countries (190 UN member states + Kosovo)

National Affairs

1. Supreme Court Recognises Digital Access as a Fundamental Right for Persons with Disabilities (PwDs)

Context:

• The Supreme Court issued directives to revise digital Know Your Customer (KYC) norms to ensure accessibility for Persons with Disabilities (PwDs).
• The Court interpreted Article 21 of the Constitution to include the “right to digital access”, marking a significant step toward inclusive governance.

Key Legal Provisions

• Article 21: Right to life and liberty (now extended to digital access)
• Article 14: Equality before law
• Article 15: Prohibition of discrimination
• Article 38: State’s duty to promote social justice
• Rights of Persons with Disabilities (RPwD) Act, 2016
  • Section 42: Mandates accessible electronic and digital media (audio descriptions, captions, sign language, universal design)
• UNCRPD (United Nations Convention on the Rights of Persons with Disabilities): India is a signatory and must ensure equal digital access

Why Are KYC Rules Important?

• Under PMLA 2002 and RBI’s Master Directions (2016), all financial institutions must conduct KYC for:
  • Opening bank, trading, or demat accounts
  • Accessing SIM cards, pension, insurance, scholarships
  • Aadhaar-linked DBT (Direct Benefit Transfers)
• Digital KYC includes Video-based Customer Identification Process (V-CIP), OTP verifications, facial recognition, and written code capture.

Accessibility Challenges Faced by PwDs

• Blind and low-vision users cannot read flashing codes or align cameras without prompts.
• Acid-attack survivors may face rejection due to facial recognition failures.
• Thumb impressions, commonly used by visually impaired users, are not accepted for PAN cards or digital signature validation.
• Lack of assistive tech: No screen readers, audio guides, or tactile features in current KYC systems.
• RBI’s “no prompting” rule prevents human assistance during verification.

Supreme Court Observations

• Accessibility is a constitutional imperative.
• Digital exclusion violates rights under:
  • Article 21 (Right to Life and Dignity)
  • RPwD Act, 2016
  • UNCRPD obligations
• Rajive Raturi v. Union of India (2024) cited: Accessibility central to liberty, mobility, and autonomy.
• Highlighted the digital divide not just for PwDs, but also for:
  • Rural users
  • Senior citizens
  • Economically weaker sections
  • Linguistic minorities

Supreme Court Directions

• Digital KYC frameworks must:
  • Adopt inclusive design principles
  • Allow alternate modes of verification (thumb impressions, assistive tech)
  • Comply with ICT accessibility standards (2021, 2022)
  • Introduce screen readers, voice navigation, text-to-speech, and real-time assistance
• Reiterated the need for “substantive equality”, not just formal equality

TH

2. ISRO’s upcoming PSLV-C61 / EOS-09 Mission and Chandrayaan-5

PSLV-C61 / EOS-09 Launch

Launch Details

• Mission: PSLV-C61 / EOS-09
• Launch Date & Time: May 19, 2025, at 5:59 AM
• Location: Satish Dhawan Space Centre, Sriharikota
• Launch Vehicle: PSLV (Polar Satellite Launch Vehicle)
• Mission Count: ISRO’s 101st launch

Satellite Details

• Name: EOS-09 (Earth Observation Satellite)
• Capability: Equipped with C-band Synthetic Aperture Radar (SAR)
• Function: High-resolution imaging under all-weather, day-night conditions
• Applications: Enhanced surveillance, disaster management, and earth resource monitoring

Chandrayaan-5 / LUPEX Mission

Mission Collaboration:

• Agencies Involved: ISRO (India), JAXA (Japan), ESA (Europe), NASA (USA)
• Launch Vehicle: H3-24L by JAXA
• Key Components:
  • Lander: Developed by ISRO
  • Rover: Developed by Mitsubishi Heavy Industries (MHI), Japan
  • Instruments: Contributions from ISRO, JAXA, ESA, NASA

Objective

• Primary Goal: Exploration of volatile materials (like lunar water)
• Target Area: Permanently Shadowed Regions (PSR) at the lunar south pole
• Scientific Significance: In-situ analysis of lunar water reserves and volatiles

TIM-3 Technical Interface Meeting

• Held on May 13–14, 2025 at ISRO HQ, Bengaluru
• Attended by experts from ISRO, JAXA, MHI
• Focus: Finalising mission architecture and integration roles

Chandrayaan Series

Mission	Focus Area
Chandrayaan-1	Orbital lunar mapping (2008)
Chandrayaan-2	Orbiter and attempted lander (2019)
Chandrayaan-3	Successful lander-rover (2023)
Chandrayaan-4	Planned sample return mission
Chandrayaan-5 / LUPEX	Indo-Japan volatiles exploration mission

TH

3. Periodic Labour Force Survey (PLFS) April 2025 – Monthly Bulletin

Context:

The revamped Periodic Labour Force Survey (PLFS) began in January 2025 to generate monthly employment and unemployment indicators. Covers both rural and urban areas using Current Weekly Status (CWS). Introduces rotational panel sampling, revisiting households 4 times over 4 months.

Sampling Statistics (April 2025)

• FSUs surveyed: 7,511 (Rural: 4,140 | Urban: 3,371)
• Households surveyed: 89,434 (Rural: 49,323 | Urban: 40,111)
• Persons surveyed: 3,80,838 (Rural: 2,17,483 | Urban: 1,63,355)

Key Indicators (for Age 15 Years and Above)

Labour Force Participation Rate (LFPR)

• Overall India: 55.6%
• Rural: 58.0% | Urban: 50.7%
• Male: 77.7% | Female: 34.2%

By Age Group (15–29 years)

• Overall: 42.7% (Male: 62.0%, Female: 23.1%)
• Urban Female LFPR (15–29 years): Lowest at 21.5%

Worker Population Ratio (WPR)

• Overall India: 52.8%
• Rural: 55.4% | Urban: 47.4%
• Male: 73.7% | Female: 32.5%

By Age Group (15–29 years)

• Overall: 36.8% (Male: 53.6%, Female: 19.8%)
• Urban Female WPR (15–29 years): Lowest at 16.4%

Unemployment Rate (UR)

• Overall India: 5.1%
• Rural: 4.5% | Urban: 6.5%
• Male: 5.2% | Female: 5.0%

By Age Group (15–29 years)

• Overall: 13.8% (Male: 13.6%, Female: 14.4%)
• Urban Female UR (15–29 years): Highest at 23.7%

Definitions for Quick Reference

• LFPR: % of people working or seeking work in population
• WPR: % of employed persons in total population
• UR: % of unemployed in the labour force
• CWS: Based on activity status in the 7 days before survey

Category	LFPR (M)	LFPR (F)	UR (M)	UR (F)
Rural (15–29)	63.5%	23.8%	13.0%	10.7%
Rural (All Ages)	57.5%	28.8%	4.9%	3.8%
Urban (15–29)	59.1%	21.5%	15.0%	23.7%
Urban (All Ages)	58.5%	20.5%	5.8%	8.7%
Total (15–29)	62.0%	23.1%	13.6%	14.4%
Total (All Ages)	57.8%	26.2%	5.2%	5.0%

Observations

• Female labour force participation and employment remain significantly low, especially in urban areas and among youth.
• Youth unemployment is a major concern (13.8% nationally; 17.2% urban; 23.7% urban female).
• Data not directly comparable with PLFS reports before Jan 2025 due to new sampling design and schedule.

PIB

4. India’s Manned Deep-Sea Mission: MATSYA 6000

Mission Overview:

• The mission aims to send three personnel to a depth of 6000 meters using the manned submersible vehicle ‘MATSYA 6000’ for exploration of deep-sea resources like minerals.
• Developed by the National Institute of Ocean Technology (NIOT), Chennai under the Ministry of Earth Sciences.
• MATSYA 6000 endurance: 12 hours under normal operation, 96 hours in emergencies ensuring human safety.
• It is India’s first unique manned ocean mission and part of the Rs 6000-crore Deep Ocean Mission.

Significance of the Mission

• Enables direct human observation and scientific study of unexplored deep-sea regions.
• Supports the Central government’s ‘New India’ vision, emphasizing the Blue Economy as a key growth dimension.
• India’s strategic maritime advantage:
  • 7517 km coastline spanning 9 coastal states and 1,382 islands.
  • About 30% of the population lives in coastal areas.
• Coastal and marine sectors contribute significantly to fisheries, aquaculture, tourism, livelihoods, and blue trade.

About the Deep Ocean Mission

• Approved by the Ministry of Earth Sciences in June 2021.
• Focuses on exploring deep ocean resources, developing deep-sea technologies, and supporting sustainable use of ocean resources.
• Mission cost: Rs 4,077 crores over five years, implemented in phases.
• Aligns with India’s commitment to sustainable ocean resource utilization and Blue Economy initiatives.

Related National Initiatives Supporting Ocean and Coastal Development

• India-Norway Task Force on Blue Economy:
  • Established in 2020 to foster joint sustainable development initiatives between India and Norway.
• Sagarmala Project:
  • Strategic port-led development initiative using IT-enabled services to modernize ports and enhance coastal infrastructure.
• O-SMART (Ocean Services, Modelling, Applications, Resources, and Technologies):
  • Umbrella scheme promoting regulated and sustainable use of ocean and marine resources.
• Integrated Coastal Zone Management (ICZM):
  • Focuses on conservation of coastal and marine ecosystems and improving livelihoods of coastal communities.
• National Fisheries Policy:
  • Promotes the ‘Blue Growth Initiative’ to sustainably utilize fisheries and aquatic resources for economic growth.

5. United Nations World Economic Situation and Prospects (WESP) Report 2025

Report: India Retains Position as World’s Fastest-Growing Major Economy: UN WESP Report 2025

Key Highlights:

• India’s GDP Growth Projection:
  • FY 2024–25: 6.3%
  • FY 2025–26: 6.4%
• Growth Drivers:
  • Strong private consumption
  • Robust public investment
• Inflation Outlook:
  • Forecast to ease from 4.9% in 2024 to 4.3% in 2025
  • Remains within RBI’s target range of 2–6%
• Employment Trends:
  • Report notes positive employment growth trends in India
• Global Context:
  • Global GDP growth projected at only 2.4% in 2025, indicating a fragile international economic environment

Significance:

• India continues to outperform other major economies despite global headwinds.
• Reinforces India’s position as a key engine of global economic growth, with a relatively stable macroeconomic outlook.
• Helps attract global investment and boosts economic confidence in domestic markets.

About the Report:

• The WESP report is a flagship publication of the United Nations Department of Economic and Social Affairs (UN DESA), assessing global economic trends and forecasts.

6. Supreme Court’s Advisory Jurisdiction – Article 143

Context:

The President of India has invoked Article 143(1) to seek the Supreme Court’s opinion on whether time limits can be imposed on the President and Governors for deciding on State Legislature Bills. This seeks to address delays in gubernatorial assent, especially in politically sensitive states.

What is Advisory Jurisdiction?

• It empowers the President of India to seek the Supreme Court’s opinion on important legal or factual questions of public significance.
• This process prevents constitutional ambiguities and facilitates non-litigious resolution of issues.
• Key Characteristic: The opinion rendered is advisory and non-binding.

Constitutional Provisions

• Article 143(1): President may refer questions of law or fact of public importance to the Supreme Court.
• Article 143(2): Deals with treaties, agreements, or covenants especially with former princely states.

Key Features

• Discretionary for Supreme Court: SC may accept or decline the reference.
• Advisory in Nature: Not legally enforceable, unlike a court judgment.
• Heard by Constitution Bench: As per Article 145(3), a minimum 5-judge bench hears such references.
• Independent Legal Insight: Offers the President an alternative to Cabinet advice, ensuring objective constitutional interpretation.

Historical Usage of Article 143

Invoked 14 times since 1950 for diverse constitutional and legal clarifications:

Case	Issue Referred
Delhi Laws Act Case (1951)	Legislative powers and delegation
Berubari Union Case (1960)	Territorial transfer to Pakistan
Kesavananda Follow-up (1973)	Basic Structure doctrine
Cauvery Tribunal (1992)	Jurisdiction in federal water disputes
Ayodhya Reference (1993)	SC declined, citing political nature
Judges Appointment Case (1998)	Collegium system clarified

Significance of Current Reference (2025):

Could clarify constitutional silence on gubernatorial timelines.

• May establish norms for speedy legislative process.
• Relevant to Centre-State relations and federal governance.
• Could shape future constitutional practices related to legislative assent delays.

Banking/Finance

1. Economic Capital Framework (ECF)

Context:

The Reserve Bank of India (RBI) Central Board convened on May 15, 2025 to review the Economic Capital Framework (ECF).

Definition of Economic Capital Framework (ECF)

The Economic Capital Framework (ECF) is the risk management policy of the Reserve Bank of India (RBI) that determines:

• How much capital and reserves the RBI must maintain to safeguard financial stability.
• How much surplus the RBI can legally transfer to the Government of India under Section 47 of the RBI Act, 1934.

Key Components of the ECF

• Contingency Risk Buffer (CRB):
  • A financial cushion for unforeseen monetary, credit, fiscal, and operational risks.
  • Recommended target: 5.5% to 6.5% of the RBI’s balance sheet.
  • As of March 31, 2024: CRB = 6.5%.
• Total Economic Capital:
  • Includes:
    • Paid-up capital
    • Reserves
    • Risk provisions (CRB + Asset Development Fund)
    • Revaluation balances (unrealized gains/losses from gold, forex, interest rate changes)

RBI Surplus Transfers to the Government (Under ECF)

Financial Year	Surplus Transferred
FY24	₹2.11 lakh crore (highest-ever)
FY23	₹87,416 crore
FY22	₹30,307 crore
FY21	₹99,122 crore

• These transfers are made after provisioning for risks under ECF.

Significance of ECF

• Bimal Jalan Committee (2018) reviewed the framework and set the current guidelines, valid till June 2024.
• The RBI board is now reassessing the framework to determine whether changes are needed, especially in light of fiscal demands and financial risks.

Potential Impacts of ECF on Fiscal Management

Scenario	Implication
Higher CRB	More financial stability, lower surplus to government
Lower CRB	Larger transfers to government, higher fiscal flexibility, but increased financial risk
Impact on Budget	Surplus transfers fund infrastructure, subsidies, and welfare programs

Balancing Act

• The RBI must maintain a delicate balance:
  • Ensure financial resilience and credibility as a central bank.
  • Support economic development through prudent surplus distribution.

2. AI and MCP Revolutionize Backend Systems in B2B Fintech

Context:

Indian B2B fintech players like Cashfree Payments and Razorpay are leveraging AI-powered agents and a new tool called Model Context Protocol (MCP) to simplify backend operations for businesses. MCP acts as a universal connector, akin to a USB-C port, enabling seamless communication between different fintech APIs and AI systems.

What is Model Context Protocol (MCP)?

• MCP allows AI agents to interact directly with core fintech APIs like those for payments, verification, and payouts.
• It reduces the need for manual integrations and streamlines the fintech experience into conversational and automated workflows.

AI-Driven Use Cases

• Payment automation: Small merchants can now use natural language (e.g., English) to:
  • Generate payment links
  • Track transactions
  • Initiate refunds
• AI agents understand the business’s menu or rate card and automatically trigger relevant APIs.
• Operations automation: Internal teams can embed dashboards into AI assistants to instantly retrieve business data or respond to customer queries.

Scaling & Future Outlook

• The fintechs anticipate massive adoption of AI in the next 6–12 months.
• No technical bottlenecks are foreseen as MCP serves as a buffer across APIs and AI agents.
• The system is designed for scalability and evolving use cases.

BS

3. Government Plans to List Five Regional Rural Banks (RRBs) by FY27

Context:

Under the “One State, One RRB” policy, the central government is pushing RRB consolidation to improve efficiency and minimize inter-bank competition. Post the latest merger effective May 1, India now has 28 RRBs across 26 states and 2 UTs, operating over 22,000 branches in 700 districts. The government’s new goal is to list at least five RRBs by FY27 to enhance their credibility, public accountability, and access to capital markets.

Purpose of RRB Listings

• Listing is expected to:
  • Strengthen RRBs’ institutional reputation.
  • Encourage better governance and transparency.
  • Allow RRBs to raise additional funds via public offerings.
  • Drive professionalization and operational efficiency.

IPO Eligibility Criteria (As per 2022 Draft Guidelines by Finance Ministry)

To qualify for a public listing, an RRB must meet the following conditions:

• Net Worth: Minimum ₹300 crore for the past three financial years.
• Capital Adequacy Ratio: Above 9% consistently over the last three years.
• Profitability:
  • Operating profit before tax of ₹15 crore in 3 out of the past 5 years.
  • Return on Equity (RoE) of 10% in 3 of 5 years.
  • Return on Assets (RoA) of 0.5% in 3 of 5 years.
• Regulatory Status: Must not be under RBI’s Prompt Corrective Action (PCA) framework.

Impact

• A PwC India report estimates that RRBs’ share of India’s GDP will rise from 3.7% in FY24 to 5.2% by FY30 after consolidation and reform measures.
• Listing will encourage greater investor participation, including institutional and retail investors.

RRBs

• RRBs were established under the RRB Act, 1976, with joint capital contributions from:
  • Government of India (50%)
  • Concerned state governments (15%)
  • Sponsor public sector banks (35%)

BS

4. Draft RBI Guidelines on Co-lending

Context:

• Issued by the Reserve Bank of India (RBI) in April 2025.
• Expanded the scope of co-lending to include all regulated entities, such as banks and NBFCs.
• Extended applicability to non-priority sectors, beyond just priority sector lending (PSL).
• Aim: Improve regulatory clarity, credit flow to underserved sectors, and ensure real-time data integration for better risk monitoring.

Technological and Operational Implications

• The RBI mandates simultaneous origination and disbursement of loans.
• NBFCs must upgrade IT systems to enable real-time information sharing with banking partners.
• Full-scale tech integration may take most of FY26, say NBFC executives.
• Operational alignment between banks and NBFCs will require at least 6 months, due to complex tech and process overhauls.

Concerns Around Colending Model 2 (CLM 2)

• Draft guidelines do not clarify the status of CLM 2, widely used by banks and NBFCs.
  • In CLM 2, NBFC retains minimum 20% of the loan on its books; bank takes 80%.
  • In CLM 1, both entities co-originate and disburse loans simultaneously.
• Focus on CLM 1 may disrupt existing colending partnerships.
• Industry has called for clarity and flexibility to accommodate both models.

Expected Outcomes

• Once systems are upgraded, the guidelines are expected to:
  • Facilitate standardised and scalable colending arrangements
  • Improve transparency and borrower tracking
  • Boost credit access in non-priority and underserved segments

BS

5. Co-Lending Model

What is Co-Lending?

• Co-lending refers to a strategic partnership where two financial institutions, typically a bank and a Non-Banking Financial Company (NBFC), jointly extend loans to customers.
• It is designed to combine the financial capacity of banks with the last-mile reach and flexibility of NBFCs.

Key Features of the Co-Lending Model

• Capital Contribution Split: Generally follows an 80:20 ratio (Bank: NBFC).
• Joint Underwriting: Both entities participate in credit appraisal and risk assessment.
• Risk and Return Sharing: Proportionate to the contribution of capital by each party.
• Blended Interest Rate: Final lending rate reflects a mix of the rates charged by each lender.
• Defined Operational Roles: Specific responsibilities related to servicing, monitoring, and compliance are clearly allocated.

How Co-Lending Works?

• Loan Application: Borrowers apply via a shared digital platform for joint evaluation.
• Loan Disbursement: Approved loans are funded jointly and directly disbursed to the borrower.
• Repayment Tracking: Repayments are monitored through integrated systems ensuring timely updates and transparency.

Advantages of Co-Lending

To Banks:

• Wider market penetration via NBFC distribution networks.
• Reduced individual exposure to risk.
• Better credit diversification across geographies and borrower types.
• Access to innovative borrower assessment methods used by NBFCs.

To NBFCs:

• Access to low-cost bank funds, enabling competitive interest rates.
• Enhanced brand credibility through association with reputed banks.
• Ability to finance larger loans or operate in high-risk markets with shared risk.

To Consumers:

• Faster loan approvals and disbursement.
• Access to better interest rates and flexible repayment terms.
• Increased credit availability, especially in semi-urban and rural areas.
• Combined expertise of both institutions enhances customer service.

Benefits of the Co-Lending Model

• Improved loan processing time and service quality.
• Lower interest rates due to risk sharing and cost efficiency.
• Automated, digital, and paperless processes.
• Faster disbursement through collaborative infrastructure.
• Greater financial inclusion by reaching underserved segments.
• Wider product offerings tailored to diverse borrower needs.

Applications of Co-Lending

• Home Loans: Making property ownership accessible.
• Personal Loans: For healthcare, weddings, or emergencies.
• Education Loans: Funding for higher education.
• Microfinance: Empowering small-scale borrowers and entrepreneurs.
• SME Loans: Supporting small and medium enterprises.
• Agriculture Loans: Financing for seeds, equipment, and infrastructure.
• Green Finance: Promoting sustainable and eco-friendly projects.

6. ‘Niveshak Shivir’ for Reclaiming Unclaimed Dividends & Shares

Context:

On May 9, 2025, the Investor Education and Protection Fund Authority (IEPFA) under the Ministry of Corporate Affairs, in collaboration with SEBI, held a preparatory meeting in Mumbai.

• Purpose: To enhance investor outreach, improve recovery of unclaimed dividends and shares, and launch the “Niveshak Shivir” initiative.

“Niveshak Shivir” Initiative

• A nationwide investor assistance drive aimed at:
  • Enabling direct interaction with company representatives and RTAs
  • Assisting in claiming unclaimed dividends and shares
  • Promoting financial literacy and reducing dependence on intermediaries
• First camps to be held in Mumbai and Ahmedabad in May 2025, with expansion planned.

About IEPFA

• A statutory authority under the Ministry of Corporate Affairs.
• Aims to safeguard investor interests, promote financial literacy, and streamline asset recovery.
• Works with capital market institutions to ensure a transparent and investor-friendly ecosystem.

Significance

• Marks a key reform in India’s efforts to empower retail investors and recover over ₹30,000 crore in unclaimed shares/dividends currently with IEPFA.
• Enhances ease of doing financial recovery, improves regulatory transparency, and supports digital access to investor services.

PIB

7. Indian Bank Launches New Fixed Deposit Schemes IND SECURE and IND GREEN

New Fixed Deposit Schemes (Effective May 8, 2025):

• IND SECURE
  • Tenure: 444 days
  • Interest Rates:
    • General Public: 7.15% p.a.
    • Senior Citizens: 7.65% p.a.
    • Super Senior Citizens: 7.90% p.a.
  • Investment Range: ₹1,000 to < ₹3 crore
  • Validity: Open until September 30, 2025
  • Features: Available as FD or money multiplier deposit with callable options
• IND GREEN (Promotes sustainable development)
  • Tenure: 555 days
  • Interest Rates:
    • General Public: 6.80% p.a.
    • Senior Citizens: 7.30% p.a.
    • Super Senior Citizens: 7.55% p.a.
  • Investment Range: ₹1,000 to < ₹3 crore
  • Validity: Open until September 30, 2025
  • Features: Guaranteed returns with a sustainability focus

Discontinued Fixed Deposit Schemes (From May 8, 2025):

• IND SUPER 400 Days
• IND SUPREME 300 Days
• No new deposits accepted; existing deposits continue to earn interest as per terms

Mint

8. SEBI’s New Cancellation Norms

Context:

The number of cancelled Systematic Investment Plans (SIPs) surged to 162.3 lakh in April 2025, more than three times higher than the previous month. This increase was driven by the implementation of SEBI‘s new cancellation norms, not investor panic.

What is a SIP?

• A Systematic Investment Plan (SIP) is a disciplined method of investing in mutual funds at regular intervals.
• Investors can begin with as little as ₹500/month.
• SIPs help in rupee cost averaging and promote long-term wealth creation.

Cancellation Norms Of SEBI

• SEBI Circular (3 January 2024):
  • Introduced strict guidelines for automatic cancellation of SIPs:
    • Daily, weekly, monthly, and fortnightly SIPs: Cancelled after 3 consecutive failed instalments.
    • Quarterly and bimonthly SIPs: Cancelled after 2 missed payments.
• Mandatory SIP Cancellation Timeline:
  • AMCs must process investor SIP cancellation requests within 10 days.
• Improved Data Transparency:
  • SEBI directed AMFI and AMCs to reflect active contributing SIPs only, cleaning up legacy data from inactive accounts.
    • Cleanup began in Dec 2024–Jan 2025, completed in April 2025.

Significance of SEBI’s Move

• Ensures accurate reflection of active investor participation.
• Promotes data reliability for stakeholders and market participants.
• Aims at enhancing investor transparency and efficient functioning of mutual fund systems.

Related SEBI Update (March 2025)

• SEBI reduced the timeline for completing rights issues to 23 days, expediting capital-raising for companies.

About SEBI

• Full Form: Securities and Exchange Board of India
• Established: 12 April 1988 (Statutory powers since 30 Jan 1992 under SEBI Act, 1992)
• Headquarters: Mumbai, Maharashtra
• Chairman: Tuhin Kanta Pandey

9. HDFC Bank Launches ‘Biz+ Current Accounts’ for MSMEs Across India

Context:

HDFC Bank has introduced a new suite of current accounts named ‘Biz+’ to support the Micro, Small, and Medium Enterprises (MSME) sector in India.

Key Features and Benefits:

• Reimagined Current Account Suite: Designed to meet sector-specific banking needs of MSMEs such as manufacturers, traders, and service providers.
• Dedicated Support:
  • Cash handling services
  • Digital banking platform
  • Relationship Manager/Bank Manager support
• Insurance Cover:
  • New-to-bank customers receive business and payment protection insurance for the first year.
• Bundled Banking Solutions:
  • Offers a One Bank approach with customized packages covering payment solutions, collections, credit, and risk management.
• Scalable Offerings:
  • Accounts adapt with business growth, catering to diverse and expanding operations.

About HDFC Bank

• Founded: 1994
• Headquarters: Mumbai, Maharashtra
• MD & CEO: Sashidhar Jagdishan
• Tagline: “We understand your world”

Agriculture

1. Government Allocates Additional Rice from FCI Buffer Stock for Ethanol Production

Context:

Under the Ethanol Blended Petrol (EBP) programme, the government will supply an additional 2.8 million tonnes of rice from the Food Corporation of India (FCI) buffer stocks at subsidised rates. This move aims to reduce FCI’s excess rice stockpile while supporting ethanol production.

Significance

• Energy Security: Promotes renewable fuel usage, reducing dependence on imported fossil fuels.
• Optimal Buffer Stock Utilization: FCI currently holds 61 million tonnes (MT) of rice against a buffer norm of 13.58 MT, with an economic cost of Rs 4173/quintal projected for 2025-26.
• Economic Benefits: Supports the Make in India initiative, helps double farmers’ incomes, and generates employment.

Challenges

• Food Security vs. Energy Security: Using food staples like rice, sugarcane, and maize for ethanol may threaten food and livestock feed availability.
• Inflation Risk: Higher demand for these food crops in ethanol production could increase consumer prices and reduce availability.

About Ethanol

• A biofuel produced mainly by fermenting sugars or via petrochemical processes.
• Used as a biofuel blend in petrol, a chemical solvent, and in medical disinfectants.

EBP Programme Details

• Objective: To blend ethanol in petrol, reduce import dependency, and save foreign exchange.
• Target: Achieve 20% ethanol blending by 2025-26.
• Progress: Ethanol blending increased from 1.53% in 2014 to 15% in 2024.

Facts To Remember

1. Global Hunger Crisis Worsens in 2024, 295 Million Face Acute Food Insecurity: FAO

The United Nations Food and Agriculture Organisation (FAO) has reported a worsening global hunger crisis in 2024, with 295 million people suffering from acute food insecurity across 53 countries, a rise of 13.7 million from 2023.

2. Power Minister Manohar Lal to Represent India at BRICS Energy Ministers’ Meet in Brazil on May 19

Power Minister Manohar Lal is on an official visit to Brazil to participate in the BRICS Energy Ministers’ Meeting, scheduled for the 19th of this month. 

3. ISRO Set for 101st Mission: Countdown for launch of PSLV-C61 mission commences

India is set to achieve a significant milestone with the 101st mission of its space programme. ISRO’s PSLV-C61 rocket will take-off with Earth Observation Satellite, EOS-09 satellite at 5:59 AM tomorrow from the Satish Dhawan Space Centre at Sriharikota in Andhra Pradesh.

4. World Hypertension Day 2025

World Hypertension Day is being observed across the globe today. The day aims to raise awareness about the risks associated with high blood pressure and promote effective strategies for its prevention and management.

5. India continues to be fastest growing major economy in 2025, Says United Nations Report

Indian economy will grow at 6.3 percent during the current financial year, ahead of China, US, and European Union, a UN report said.

6. UIDAI achieves major milestone with over 150 billion Aadhaar authentications

The total number of Aadhaar authentication transactions has crossed 150 billion mark, making it a milestone moment in the journey of the Unique Identification Authority of India (UIDAI) and for the broader Aadhaar ecosystem.