Current Affairs and Economic Policies - April 2025

Overview of Current Affairs and Financial Developments (April 2025)

Credit Card Defaults Surge

• Statistic: Credit card defaults have increased by 28% in Calendar Year 2024, reaching Rs. 6,742 crore.
• Trend: Increase attributed to higher consumer spending and digital payment adoption.
• NPAs: Gross NPAs rose from Rs. 5,250 crore in December 2023, up by Rs. 1,500 crore.

ARTEMIS Accords Signed by Bangladesh

• Detail: Bangladesh is the 54th country to sign with NASA to promote safe space exploration.

Bank of Baroda's New FD Scheme

• Launch: Square Drive FD Scheme offers interest rates up to 7.75%, replacing the Utsav Deposit Scheme.

One State - One RRB Policy

• Amalgamation: 26 Regional Rural Banks (RRBs) across 10 states and 1 UT to merge effective May 1, 2025, reducing the total to 28 RRBs.
• Purpose: Improve operational efficiency and cost rationalization.
• States Involved: Andhra Pradesh, Uttar Pradesh, West Bengal, Bihar, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, and Jammu & Kashmir.
• Authorized Capital: Rs. 2,000 crore for the new entities.

Overview of Regional Rural Banks (RRBs)

• Origins: Established as per the Narasimham Committee to serve rural economies.
• Equity Structure: 50% Central Government, 15% State Government/UT, and 35% Sponsor Bank.
• Examples: Prathama Bank is India's first RRB, inaugurated on October 2, 1975.
• Funding Sources: Include share capital, public deposits, sponsor bank borrowings, and NABARD refinancing.
• Investment Guidelines: Investments must ensure combined shareholding of Central Government & Sponsor Bank is at least 51%.

IndiGo's Market Capitalization

• Achievement: IndiGo has a market capitalization of $23 billion, becoming the world's most valuable airline with a 62% market share in India.

Pradhan Mantri Mudra Yojana (PMMY) Celebrates 10 Years

• Launch Date: April 8, 2015, empowering small and micro-entrepreneurs.
• Loan Limits: Increased to Rs. 20 lakh during Union Budget 2024-25; loans available through various financial institutions.
• Categories: MUDRA loans offered in four categories: SHISHU, KISHOR, TARUN, and TARUN PLUS, for respective loan ranges.
• Support Mechanisms: Credit Guarantee Fund and Interest Subvention during FY 2020-21 under Aatma Nirbhar Bharat.

Delhivery's Acquisition

• Deal: Delhivery to acquire controlling stake in Ecom Express for Rs. 1,400 crore.

India’s First Digital Threat Report 2024

• Launch: Ministry of Electronics and Information Technology aims to enhance cybersecurity in BFSI sector, detailing evolving threats and strategic responses.

Axis Bank's In-App Authentication

• Implementation: A new in-app mobile OTP security feature to combat frauds.

New Nuclear Submarine Base

• Location: Coastal Andhra Pradesh by 2026, focusing on enhancing India's naval defenses with underground facilities.
• Project Name: Project VARSHA for naval expansion.

SEBI Initiatives

• PaRRVA Framework: Launched for verification of financial product risk and return metrics, improving market transparency.
• Eligibility Criteria: Credit Rating Agencies and Stock Exchanges need a minimum operational experience of 15 years with specified net worth for recognition.

Postage Stamps Celebrating India-Portugal Ties

• Launch: Stamps to commemorate 50 years of diplomatic relations, featuring cultural costumes.

Economic Forecast

• Asian Development Bank (ADB): Revised India's GDP growth forecast for FY 2025-26 to 6.7% from 7%.

RBI Recognition

• Award: Named as the Most Innovative Financial Institution by Global Finance, highlighting improvements in financial ecosystem efficiency and inclusivity.

Skill Development Initiatives

• Partnership: A collaborative initiative with the World Economic Forum to close workforce skill gaps.

New Investment in Semiconductor Plant

• Location: Chhattisgarh with a focus on GaN chips for advanced technologies.

Education Initiatives in Agriculture

• Program: Pradhan Mantri Krishi Sinchayee Yojana sub-scheme for modernizing water management and increasing agricultural productivity approved.

Women's World Cup Hosting in the UK

• Event: UK announced as host for the 2035 Women's World Cup, featuring 48 national teams.

RBI’s PRAVAAH Platform

• Purpose: Digitization of regulatory application processes, effective from May 1, 2025.

Unified Pension Scheme (UPS) for Government Employees

• Details: New assured pension framework benefiting 23 lakh employees, effective April 1, 2025.
• Pension Benefits: Minimum pension, surviving family pension, and inflation indexation included.

Key Managerial Roles

• RBI: Mr. Sanjay Malhotra, Governor
• SEBI: Shri Tuhin Kanta Pandey, Chairman
• IRDAI: Mr. Debasish Panda, Chairman
• PFRDA: Deepak Mohanty, Chairman
• IFSCA: K Rajaraman, Chairman
• NABARD: Shaji Krishnan V, Chairman
• SIDBI: Shri Manoj Mittal, CMD
• NHB: Mr. Sanjay Shukla, MD
• India EXIM Bank: Harsha Bangari, MD
• NaBFID: Mr. Rajkiran Rai G, MD