NATIONAL NEWS HIGHLIGHTS
Economic and Financial Developments
India’s GDP Growth Achievement: Prime Minister Modi announced India’s impressive 7.8% GDP growth in Q1 2025, despite global economic challenges and “economic selfishness” from other nations, marking the fastest growth among major economies
GST Collection Surge: India’s Goods and Services Tax collection rose 6.5% year-on-year to ₹1,86,000 crore (US$ 21.1 billion) in August 2025, boosted by festive demand and resilient consumption patterns
Banking Sector Updates: Punjab National Bank (PNB) and Bank of India reduced their Marginal Cost of Funds-based Lending Rates (MCLR) by up to 15 basis points effective September 2025, benefiting borrowers with lower EMIs
Manufacturing PMI Record: India’s manufacturing Purchasing Managers’ Index reached a nearly 18-year high of 59.3 in August 2025, driven by strong domestic demand and order inflows
Government Initiatives and Policy Decisions
Semicon India 2025 Launch: Prime Minister Modi inaugurated Semicon India 2025 at Yashobhoomi, New Delhi, aimed at positioning India as a global semiconductor manufacturing hub with participation from 48 countries
Bihar Development Initiative: PM Modi launched Bihar Rajya Jeevika Nidhi Saakh Sahkari Sangh Limited via video conferencing, transferring ₹105 crore to support rural women’s economic empowerment
India MedTech Expo 2025: Government announced the India MedTech Expo from September 4-6 at Bharat Mandapam, showcasing India’s medical technology capabilities with theme “Global MedTech Manufacturing Hub”
UPI Transaction Growth: Unified Payments Interface transactions increased 3% to 20.01 billion in August 2025, processing US$ 281 billion, reinforcing India’s digital payment leadership
Supreme Court and Legal Updates
Teachers’ Eligibility Test Ruling: Supreme Court clarified that passing the Teachers’ Eligibility Test (TET) is mandatory for teacher appointments and promotions, with teachers getting a two-year window to clear the test
Delhi Riots Case: Delhi High Court denied bail to Umar Khalid and Sharjeel Imam in the February 2020 Delhi riots conspiracy case, stating sufficient material exists against them
Right to Education Act Review: Supreme Court observed that the 2014 verdict granting minority institutions exemption from the Right to Education Act should be reconsidered
Infrastructure and Development
Defence Manufacturing Boost: Indian Air Force is set to receive its first two Tejas Mark-1A fighter jets by September 2025 from Hindustan Aeronautics Limited, enhancing air defense capabilities
Space Technology Progress: ISRO continues preparations for multiple missions in 2025, including the Gaganyaan human spaceflight program and navigation satellite launches
Postal Service Merger: Registered Post services merged with Speed Post effective September 1, 2025, streamlining postal operations across India
INTERNATIONAL NEWS HIGHLIGHTS
Shanghai Cooperation Organization Summit
China-Russia Partnership: Chinese President Xi Jinping and Russian President Vladimir Putin met at the SCO Plus Leaders’ Summit, with Putin describing China-Russia relations as reaching “unprecedented levels”
Modi’s Diplomatic Engagement: Prime Minister Modi participated in the 25th SCO Council of Heads of State meeting in Tianjin, emphasizing multilateral cooperation and economic partnerships
Global Governance Initiative: Xi Jinping proposed a Global Governance Initiative calling for equal and multipolar world order while rejecting unilateral policies
Afghanistan Earthquake Crisis
Devastating Impact: A magnitude 6.0 earthquake struck eastern Afghanistan on August 31, 2025, with death toll rising to over 1,411 people and 3,124 injured across four provinces
International Response: UN Secretary-General Antonio Guterres expressed solidarity with Afghanistan, with UN teams mobilized to provide assistance to affected regions
Rescue Operations: Helicopters transported injured individuals from mountainous areas, with rescue operations ongoing in remote villages near Pakistan border
Regional Developments
India-UAE Trade Relations: Union Minister Piyush Goyal met with UAE Minister Dr. Thani bin Ahmed Al Zeyoudi to strengthen Comprehensive Economic Partnership Agreement, targeting US$ 100 billion trade by 2030
North Korea-China Relations: North Korean leader Kim Jong Un traveled by bulletproof train to China for military displays and diplomatic meetings
European Political Updates: Belgium announced recognition of Palestinian state and participation in UN General Assembly discussions
BANKING AND FINANCIAL SECTOR NEWS
Monetary Policy Updates
RBI Policy Stance: Reserve Bank of India maintained repo rate at 5.50% in August 2025 meeting, keeping policy stance as ‘neutral’ while reducing inflation forecast to 3.1% for FY26
Cash Reserve Ratio Implementation: RBI confirmed that the CRR cut from 4% to 3% will begin implementation from September 6, 2025, in four phases of 25 basis points each
Banking Sector Health: Commercial banks maintain strong fundamentals with Capital to Risk Assets Ratio at 17%, net interest margin at 3.5%, and credit growth at 12.1%
Financial Sector Reforms
MCLR Rate Reductions: Major public sector banks reduced lending rates, with PNB cutting rates by up to 15 basis points across various tenures
Digital Payment Growth: UPI ecosystem continues expansion with 20 billion transactions monthly, supporting India’s digital economy transformation
Life Sciences Investment: India emerges as global hub for life sciences Global Capability Centres with 25 major players establishing operations
SPORTS UPDATES
Cricket Developments
Team India Sponsorship: BCCI invited bids for Team India’s title sponsorship, marking significant commercial opportunity in cricket
Asia Cup Hockey Triumph: India defeated Kazakhstan 15-0 in Asia Cup Hockey, with three players scoring hat-tricks in dominant performance
International Cricket Infrastructure: Sri Lanka announced plans for first international cricket stadium in Jaffna, expanding regional cricket facilities
Tennis and Other Sports
US Open 2025: Jessica Pagula became first player to reach semi-finals, while Jannik Sinner advanced to quarterfinals with victory over Bublik
Australian Cricket: Mitchell Starc announced retirement from T20 Internationals to focus on ODIs and Tests, while Pat Cummins ruled out of India and New Zealand series due to injury
Supreme Court Sports Ruling: Supreme Court directed All India Football Federation to invite bids for new partners, paving way for ISL 2025/26 to start in December
IMPORTANT DATES AND OBSERVANCES
September 2025 Key Dates
September 3, 2025: Karma Puja observed in Ranchi (Bank Holiday)
September 4, 2025: First Onam celebration in Kerala (Bank Holiday in Thiruvananthapuram and Kochi)
September 5, 2025: Teachers’ Day celebration across India, honoring Dr. Sarvepalli Radhakrishnan’s birth anniversary with theme “Inspiring the Next Generation of Learners”
September 5, 2025: Id-E-Milad/Milad-un-Nabi observed as gazetted holiday across most Indian states
September 15, 2025: Extended deadline for Income Tax Return filing for individuals and HUFs without audit requirements
Weather and Agricultural Updates
Monsoon Forecast: IMD predicts above-average rainfall exceeding 109% of long-period average for September 2025, benefiting agriculture but raising urban flooding concerns
Agricultural Impact: Surplus rainfall expected to benefit crops like rice, cotton, soybean, and pulses, though timing crucial for harvesting season
Regional Alerts: Red alerts issued for Himachal Pradesh, Uttarakhand, Gujarat, and other states due to heavy rainfall predictions
COMPETITIVE EXAM FOCUS POINTS
Key Economic Indicators
India’s Q1 FY 2025-26 GDP growth: 7.8%
GST collection August 2025: ₹1,86,000 crore
Manufacturing PMI August 2025: 59.3 (18-year high)
RBI repo rate: 5.50% (unchanged)
CRR reduction: From 4% to 3% (effective September 2025)
International Relations
SCO Summit 2025 held in Tianjin, China
India-UAE trade target: US$ 100 billion by 2030
Afghanistan earthquake: Magnitude 6.0, over 1,400 casualties
China-Russia relations described as “unprecedented levels”
Government Schemes and Initiatives
Bihar Rajya Jeevika Nidhi Saakh Sahkari Sangh Limited launched
Semicon India 2025 with 48 countries participation
India MedTech Expo 2025 theme: “Global MedTech Manufacturing Hub”
Teachers’ Day 2025 theme: “Inspiring the Next Generation of Learners”
Banking Sector Highlights
MCLR rates reduced by PNB and Bank of India
UPI transactions: 20.01 billion in August 2025
Commercial banks CRAR: 17%
Bank credit growth: 12.1% in 2024-25
This comprehensive current affairs update covers all major developments relevant for banking and competitive examinations, providing aspirants with essential information for their preparation. The content focuses on recent policy changes, economic indicators, international relations, and government initiatives that frequently appear in competitive exam questions.
