Reserve Bank of India Levies Penalties on 353 Banks and Regulated Entities in FY25
Syllabus:Economy
- The Reserve Bank of India (RBI) imposed 353 penalties totaling ₹54.78 crore on Regulated Entities (REs) for statutory violations during the year ending March 31, 2025.
Key Areas of Non-Compliance:
- Cybersecurity frameworks in banks, Exposure norms and IRAC norms, KYC guidelines, Fraud classification and reporting, CRILC reporting, Submission to Credit Information Companies (CICs)
Penalties by Entity Type:
- Cooperative Banks: 264 penalties, ₹15.63 crore
- NBFCs/ARCs: 37 penalties, ₹7.29 crore
- Housing Finance Companies: 13 penalties, ₹83 lakh
- Public Sector Banks: 8 banks, ₹11.11 crore
- Private Sector Banks: 15 banks, ₹14.8 crore
- Foreign Banks: 6 banks (amount not disclosed)
Purpose of Enforcement:
- To ensure regulatory compliance and strengthen the integrity and stability of the financial sector.
About RBI
- Established: April 1, 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
Which of the following statutory responsibilities of the Reserve Bank of India are directly reinforced through its imposition of penalties on Regulated Entities (REs)?
- Ensuring adherence to capital adequacy norms under Basel III
- Enforcing compliance with cyber security and reporting frameworks
- Overseeing monetary policy transmission in cooperative banking institutions
- Monitoring submission of large credit exposures to centralized repositories
Select the correct answer using the code below:
A. 1 and 2 only
B. 2 and 4 only
C. 1, 2 and 3 only
D. 1, 2, 3 and 4
Answer:B
Explanation: Capital adequacy and monetary policy transmission are not directly targeted by penalty imposition. Penalties are primarily enforcement mechanisms for compliance (e.g., cybersecurity, CRILC).
UPI Transactions Reach Record High in May, Surpass ₹25 Trillion Mark for First Time
Syllabus:Economy
- Unified Payments Interface (UPI) transactions reached a record high in May 2025, with 68 billion transactions amounting to ₹25.14 trillion in value.
Month-on-Month Growth:
- Volume: Increased by 4% (from 17.89 billion in April to 18.68 billion)
- Value: Increased by 5% (from ₹23.95 trillion in April to ₹25.14 trillion)
- This surpassed the previous peak recorded in March 2025, which stood at 3 billion transactions worth ₹24.77 trillion.
Daily Averages:
- Daily transaction volume rose from 596 million (April) to 602 million (May)
- Daily transaction value increased from ₹79,831 crore to ₹81,106 crore
Drivers of UPI Growth:
- Government’s post-demonetisation push for digital payments
- Widespread smartphone adoption
- Active participation of major private players such as Google Pay, PhonePe, and Paytm
- To further support low-value digital transactions, the Union Cabinet approved a ₹1,500 crore incentive scheme aimed at subsidizing the cost burden within the UPI ecosystem.
Policy Appeal from the Industry:
- The Payments Council of India (PCI), representing digital payment companies, urged the Prime Minister to:
- Reintroduce the Merchant Discount Rate (MDR) on UPI and RuPay debit card transactions
- Proposed 3% MDR for large UPI merchants
- Suggested a nominal MDR on RuPay debit card payments across merchant categories
- The request aims to ensure the sustainability of digital payment infrastructure while maintaining affordability for users.
Consider the following statements regarding UPI transaction trends in May 2025:
- The daily average transaction value exceeded ₹82,000 crore.
- May 2025 marked the highest-ever recorded monthly volume and value in UPI history.
- The month-on-month growth in UPI transaction value was greater than that of transaction volume.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2, and 3
The correct answer is: B. 2 and 3 only
Explanation:
- Statement 1: “The daily average transaction value exceeded ₹82,000 crore.”From the data:Daily transaction value in May 2025 = ₹81,106 crore
- This is less than ₹82,000 crore
- Statement 2: “May 2025 marked the highest-ever recorded monthly volume and value in UPI history.”
- Volume: 68 billion
- Value: ₹25.14 trillion
Previous high (March 2025):
- Volume: 3 billion
- Value: ₹24.77 trillion
- Statement 3: “The month-on-month growth in UPI transaction value was greater than that of transaction volume.”
From the data:
Growth in volume:
- April: 17.89 billion → May: 18.68 billion
- Growth: ~4.4%
- Growth in value:
- April: ₹23.95 trillion → May: ₹25.14 trillion
- Growth: ~5%
Asian Development Bank unveils $10 billion scheme to revamp India’s urban infrastructure and services
Syllabus:Economy
- Asian Development Bank’s $10 Billion Urban Transformation Plan for India
- The Asian Development Bank (ADB) has announced a $10 billion initiative aimed at catalyzing India’s urban transformation, aligning with the nation’s Viksit Bharat 2047 vision.
Key Highlights of the Initiative
- Announced following a three-day visit by ADB President Masato Kanda, during which he met Prime Minister Narendra Modi.
The package comprises:
- Sovereign loans
- Private sector financing
- Third-party capital mobilization
- Anchored by India’s flagship Urban Challenge Fund (UCF), supported by ADB to attract private sector investments into critical urban infrastructure.
- Project Scope and Preparation
Analytical groundwork has been completed for:
- Growth hubs
- Creative city redevelopment
- Water and sanitation upgrades
- These initiatives span 100 cities across India, forming the foundation for UCF deployment.
- ADB is extending $3 million in technical assistance to help design bankable urban projects and build capacity in state governments and Urban Local Bodies (ULBs).
- Urbanization Trends and ADB’s Role
- By 2030, over 40% of India’s population is expected to reside in urban areas, increasing the urgency for infrastructure development.
- ADB has already engaged with 110+ cities in 22 states, implementing projects in:
- Water supply
- Sanitation
- Affordable housing
- Solid waste management
- Current ADB Portfolio in Urban Sector
- ADB’s active urban portfolio in India includes 27 loans totaling $5.15 billion.
- About Asian Development Bank (ADB)
- Established: 1966
- Headquarters: Mandaluyong, Metro Manila, Philippines
- President: Masato Kanda
- Membership: 69 countries
With reference to the Asian Development Bank’s (ADB) recent urban development initiative in India, consider the following statements:
- The initiative includes only sovereign loans from ADB, excluding private sector financing.
- It is aligned with India’s long-term vision of becoming a developed nation by 2047.
- The Urban Challenge Fund (UCF) supported by ADB is solely focused on expanding rural infrastructure in peri-urban zones.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 only
C. 1 and 3 only
D. 2 and 3 only
Answer:B
Explanation: Statement 1 is incorrect — the initiative involves sovereign loans and private financing. Statement 3 is incorrect — UCF focuses on urban infrastructure, not rural/peri-urban. Only statement 2 is correct.
Rashtriya Boudhik Sampada Mahotsav 2025 Celebrated at CSIR-IIP, Dehradun
Syllabus:Government Policies
- SIR-Indian Institute of Petroleum (CSIR-IIP), Dehradun observed Rashtriya Boudhik Sampada Mahotsav (RBSM) 2025 to raise awareness about Intellectual Property (IP) and foster a culture of innovation and protection of intellectual assets.
Initiative Background
- RBSM 2025 is part of the Azadi ka Amrit Mahotsav and was first launched in July 2023. The initiative aims to emphasize the importance of safeguarding innovations in India’s scientific and technological landscape.
Key Highlights of the Event
- InauguralCeremony
The event commenced with the lighting of a traditional lamp and Saraswati Vandana, signifying reverence for knowledge.
OpeningRemarks
- Deepti Agrawal, In-charge of the Intellectual Property Management Group (IPMG), introduced the objectives of RBSM and highlighted the growing importance of intellectual property in scientific pursuits.
Director’sAddress
- Harender Singh Bisht, Director of CSIR-IIP, stressed the need for protecting inventions and promoting awareness of IP rights among researchers and innovators.
Expert Session on IP Rights
- Kapil Arya, from the CSIR-Innovation Protection Unit, New Delhi, delivered an expert talk titled “Feel the Beat of Intellectual Property Rights”. He explained the significance of patents and the importance of IP literacy in research institutions.
Insights from Patent Committee
- N. Vishwanatham, Chairman of the Patent and Publication Committee, spoke about CSIR-IIP’s track record in technological innovation and its continued efforts in patent filing and protection.
- The celebration reaffirmed CSIR-IIP’s commitment to building a resilient intellectual property ecosystem aligned with national development and innovation goals.
With reference to Rashtriya Boudhik Sampada Mahotsav (RBSM) 2025, consider the following statements:
- It was initiated by the Ministry of Education under the National Innovation Mission.
- It aligns with the objectives of Azadi ka Amrit Mahotsav and focuses on strengthening the Intellectual Property (IP) ecosystem in public R&D institutions.
- CSIR-IIP’s engagement in RBSM includes collaboration with the World Intellectual Property Organization (WIPO) for capacity building.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 only
C. 2 and 3 only
D. 1, 2, and 3
Correct Answer: B. 2 only
Explanation:
- RBSM (Rashtriya Boudhik Sampada Mahotsav) was not initiated by the Ministry of Education.
- It was launched by CSIR (Council of Scientific and Industrial Research) institutions like CSIR-IIP, and is aligned with Azadi ka Amrit Mahotsav—not under a program of the Ministry of Education or National Innovation Mission.
- This is explicitly stated.
- RBSM is a CSIR initiative celebrating and promoting Intellectual Property awareness within scientific research institutions, as part of the broader Azadi ka Amrit Mahotsav commemorations.
- There is no mention or evidence of any collaboration with WIPO in the CSIR-IIP’s RBSM 2025 celebrations.
- The sessions were internal, led by CSIR experts like Dr. Kapil Arya (CSIR-Innovation Protection Unit), but no external collaboration with WIPO was indicated.
India’s First Artificial Intelligence Special Economic Zone Established in Nava Raipur
Syllabus:Economy
- India is set to launch its first Special Economic Zone (SEZ) exclusively focused on Artificial Intelligence (AI) in Nava Raipur, Chhattisgarh.
- The project involves an investment of ₹1,000 crore by RackBank Datacenters Pvt. Ltd., an Indore-based company.
- This initiative seeks to position India as a global hub for AI innovation by creating world-class infrastructure for AI research, development, and deployment.
Key Project Details:
- RackBank Datacenters Pvt. Ltd. will develop the SEZ over 6 acres, with a built-up area of 1.5 lakh square feet. The facility will house four cutting-edge data centers with a combined capacity of 80 MW, capable of supporting high-performance computing servers. The project anticipates participation from major global technology companies such as Google, OpenAI, Microsoft, and Meta.
Strategic Objectives:
- The SEZ aims to facilitate India’s transition from being a consumer of AI technologies to becoming a producer. It is designed to support large-scale AI research and implementation while offering tax incentives and regulatory benefits typical of SEZ frameworks. A key focus is employment generation, particularly for youth in underdeveloped regions, and strengthening the country’s digital backbone.
Socio-Economic Impact:
- The initiative is expected to open up global-level employment opportunities for talent from districts such as Kanker, Sukma, Dantewada, and Bilaspur, thereby helping reduce migration to metropolitan cities like Bengaluru. It will create jobs in high-demand fields like data science, cybersecurity, IT engineering, and network management.
Skill Development Initiatives:
- The project will collaborate with Industrial Training Institutes (ITIs), polytechnics, and engineering colleges to deliver customized, industry-relevant skill development programs.
Policy Context:
- The SEZ is being developed in the backdrop of India’s SEZ Act, 2005. As of now, 423 SEZs have been approved in the country, with 270 currently operational. The SEZ policy is intended to enhance exports, attract foreign direct investment (FDI), generate employment, and simplify business operations.
Recent Developments:
- On March 30, 2025, Prime Minister Narendra Modi inaugurated and laid the foundation stone for development projects worth over ₹33,700 crore in Bilaspur, Chhattisgarh. Additionally, the Chhattisgarh government, led by Chief Minister Vishnu Deo Sai, has announced plans to introduce a more stringent anti-conversion law aimed at curbing unlawful religious conversions in the state.
With reference to the upcoming Artificial Intelligence Special Economic Zone (AI-SEZ) in Nava Raipur, consider the following statements:
- It is India’s first SEZ exclusively dedicated to artificial intelligence.
- It is being developed by a public-private partnership (PPP) consortium of NITI Aayog and an Indore-based data center company.
- The SEZ aims to support high-performance computing with a combined data capacity exceeding 80 MW.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: B
Explanation:
- The SEZ is being developed by RackBank Datacenters Pvt. Ltd., a private company. No mention of a PPP with NITI Aayog.
- The AI-SEZ in Nava Raipur is India’s first Special Economic Zone that is exclusively focused on Artificial Intelligence.
- It aims to create world-class infrastructure for AI research, development, and deployment.
- The SEZ is being developed solely by RackBank Datacenters Pvt. Ltd., a private company based in Indore.
- No official involvement or partnership with NITI Aayog has been mentioned. Hence, this is factually inaccurate and misrepresents the development model.
SHOX Gene
Syllabus:Science
- A recent study has linked the typical five-inch height difference between men and women to the SHOX gene.
About the SHOX Gene:
- The SHOX gene is located in the pseudoautosomal region on both the X and Y chromosomes, meaning it is present on both and is not exclusive to either sex chromosome.
- It produces a transcription factor that regulates other genes and plays a crucial role in skeletal development, especially in the growth of arm and leg bones.
- SHOX belongs to the homeobox gene family, which guides the formation of body structures during early embryonic development.
Key Findings from the Latest Study:
- Although the SHOX gene exists on both X and Y chromosomes, its expression differs between sexes.
- Women have two X chromosomes, but one is mostly inactive, reducing their effective SHOX gene dosage. Men have one active X chromosome plus the Y chromosome that also carries SHOX, giving them a slightly higher gene dosage, which contributes to greater height.
- The study also found that an extra Y chromosome increases height more than an extra X chromosome.
- This difference in SHOX gene dosage explains about 25% of the average height gap between men and women, alongside the role of hormones.
Consider the following about the SHOX gene:
- It is located exclusively on the X chromosome.
- It encodes a transcription factor critical for skeletal development.
- It belongs to the homeobox gene family involved in embryonic body structure formation.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
The correct answer is:
- 2 and 3 only
Explanation:
- Statement 1: It is located exclusively on the X chromosome.This is incorrect. The SHOX gene is located in the pseudoautosomal region of both the X and Y chromosomes, meaning it is present on both sex chromosomes, not exclusively on the X chromosome.
- Statement 2: It encodes a transcription factor critical for skeletal development.
This is correct. SHOX produces a transcription factor that regulates other genes and plays a vital role in skeletal growth, especially in the development of arm and leg bones. - Statement 3: It belongs to the homeobox gene family involved in embryonic body structure formation.This is correct. The SHOX gene is part of the homeobox family, which is known for directing the formation of body structures during early embryonic developmen
International Organisation for Mediation (IOMed)
Syllabus: International Relation
- China has invited Nepal to join its newly established International Organisation for Mediation (IOMed).
About the International Organisation for Mediation:
- Launched on May 30, 2025, in Hong Kong, the IOMed is a China-led global initiative designed as an alternative forum for resolving international disputes through mediation rather than arbitration or litigation. At its founding, 33 countries—mostly developing nations from Africa, Latin America, Southeast Asia, and Central Asia, where China’s Belt and Road Initiative (BRI) is active—participated.
- The organisation’s framework emphasizes key international principles such as sovereign equality, non-interference in domestic affairs, and peaceful dispute resolution.
Why Does China Support This Initiative?
- To challenge Western-led institutions like the International Court of Justice and the Permanent Court of Arbitration, which China perceives as dominated by U.S. and European interests.
- To promote its own model of “Asian-style diplomacy,” focusing on consensus-building, informal negotiations, and preserving mutual respect or “face.”
- To advance its Global Security Initiative (GSI) and Global Civilization Initiative (GCI), diplomatic campaigns advocating multipolarity and “civilizational harmony” as alternatives to the current liberal international order.
Which of the following principles form the foundational norms promoted by the International Organisation for Mediation (IOMed)?
- Sovereign equality
- Non-interference in internal affairs
- Binding arbitration decisions
- Peaceful resolution of disputes
Select the correct answer:
A. 1, 2 and 3 only
B. 1, 3 and 4 only
C. 1, 2 and 4 only
D. All of the above
The correct answer is:C. 1, 2 and 4 only
Explanation:
The International Organisation for Mediation (IOMed) promotes mediation based on the following foundational principles:Sovereign equality — All member states are considered equal sovereign entities.Non-interference in internal affairs — The organisation respects the internal matters of states and does not intervene.Peaceful resolution of disputes — The primary goal is to resolve conflicts peacefully through mediation.Binding arbitration decisions (statement 3) are not part of IOMed’s foundational norms because:IOMed is specifically established to offer mediation as an alternative to arbitration or litigation.
Arbitration involves binding decisions by a third party, whereas mediation emphasizes negotiation and consensus without binding rulings.
Fibre Optic Drones
Syllabus:Drones
- Since spring 2024, Russia has deployed fibre optic first-person-view (FPV) drones in Ukraine.
- About Fibre Optic Drones:These drones resemble conventional UAVs but navigate using ultra-thin glass fibre optic cables instead of radio waves. This technology makes them immune to electronic interception and jamming because the communication signals travel securely through the cable, allowing for high-quality, uninterrupted video transmission.
- Depending on their technical sophistication, these drones have an operational range of 15 to 30 kilometers. They offer advantages such as longer battery life, enhanced accuracy, and dependable performance in difficult environments, including forests, urban areas, and indoor settings.
Which of the following principles form the foundational norms promoted by the International Organisation for Mediation (IOMed)?
- Sovereign equality
- Non-interference in internal affairs
- Binding arbitration decisions
- Peaceful resolution of disputes
Select the correct answer:
A. 1, 2 and 3 only
B. 1, 3 and 4 only
C. 1, 2 and 4 only
D. All of the above
Answer: C. 1, 2 and 4 only
Explanation:
- The International Organisation for Mediation (IOMed) promotes mediation based on the following key principles:
- Sovereign equality — All member states are regarded as equal sovereign entities.
- Non-interference in internal affairs — The organisation respects the sovereignty of states and does not intervene in their internal matters.
- Peaceful resolution of disputes — The primary aim is to resolve conflicts through peaceful mediation rather than conflict or coercion.
- The principle of binding arbitration decisions (statement 3) is not part of IOMed’s foundational norms because the organisation specifically offers mediation as an alternative to arbitration or litigation. Unlike arbitration, which involves binding decisions by a third party, mediation emphasizes negotiation and consensus without binding rulings.