NATIONAL AFFAIRS
Banking and Financial Sector Developments
Banking Laws Amendment Act 2025 Implementation: Key provisions of the Banking Laws (Amendment) Act, 2025 came into effect from August 1, 2025. The comprehensive legislation introduces 19 amendments across five major banking laws including the Reserve Bank of India Act 1934, Banking Regulation Act 1949, State Bank of India Act 1955, and Banking Companies Acts of 1970 and 1980.
Major Changes Include: The threshold for ‘substantial interest’ has been raised from Rs 5 lakh to Rs 2 crore (unchanged since 1968). The tenure of directors in cooperative banks has been extended from 8 years to 10 years. Public sector banks can now offer remuneration to statutory auditors and transfer unclaimed shares to the Investor Education and Protection Fund.
RBI Approves Bank Merger: The Reserve Bank of India approved the merger of New India Co-operative Bank with Saraswat Co-operative Bank, effective from August 4, 2025.
New UPI Regulations: The National Payments Corporation of India implemented revised UPI rules from August 1, 2025. Balance checks are now limited to 50 times per app daily. Autopay transactions are restricted to non-peak hours (before 10 AM, between 1-5 PM, and after 9:30 PM). Enhanced verification protocols have been introduced for new bank accounts.
Extended Trading Hours: RBI extended trading hours for market repo and Tri-Party Repo operations from 9 AM to 4 PM (previously 3 PM) effective August 1, 2025, improving liquidity and operational flexibility in money markets.
Government Initiatives and Policy Changes
PM Viksit Bharat Rozgar Yojana Launch: The Employment Linked Incentive scheme became operational from August 1, 2025, with an outlay of Rs 99,446 crore. The scheme aims to incentivize creation of more than 3.5 crore jobs over two years, with 1.92 crore beneficiaries being first-time workforce entrants.
Tribal Development Initiative: The Ministry of Tribal Affairs launched Regional Process Labs under the Aadi Karmayogi Abhiyan in Dehradun and Bhubaneswar. The initiative aims to create a network of 20 lakh tribal grassroots functionaries across 1 lakh tribal-dominated villages covering 3,000 blocks and over 550 districts.
Agricultural Support: Prime Minister Modi released the 20th installment of the PM-KISAN scheme on August 2, 2025, providing direct financial assistance of approximately Rs 20,500 crore to over 9.7 crore farmers through Direct Benefit Transfer.
Infrastructure and Environmental Initiatives
Green Energy Milestone: VOC Port became the first Indian port to produce Green Hydrogen and surpass 1MW solar power capacity, marking a significant advancement in sustainable port operations.
Biodiversity Conservation: India conducted its first-ever ‘Grassland Bird Census’ at Kaziranga National Park in Assam to assess bird diversity and conservation status in grassland ecosystems.
Administrative Appointments
Historic Railway Appointment: Ms. Sonali Mishra, an IPS officer of the 1993 batch, became the first woman Director General of Railway Protection Force in its 143-year history. Her appointment is valid until her superannuation in October 2026.
Space Sector Leadership: Dr. A. Rajarajan was appointed as the new Director of Vikram Sarabhai Space Centre, a key ISRO facility responsible for launch vehicle development.
Crisis Management
Flood Response: Prime Minister Modi conducted an aerial survey of flood-affected areas in Varanasi as rising Ganga waters submerged parts of his parliamentary constituency, displacing thousands of residents.
Law Enforcement Action: The Enforcement Directorate made its first arrest in the Rs 3,000 crore money laundering probe involving companies tied to industrialist Anil Ambani. Partha Sarathi Biswal, Managing Director of Biswal Tradelink Pvt. Ltd., was taken into custody under the Prevention of Money Laundering Act 2002.
INTERNATIONAL AFFAIRS
Space Exploration
Successful Space Mission: SpaceX successfully launched the Crew-11 mission on August 1, 2025, carrying four astronauts to the International Space Station. The crew includes NASA astronauts Zena Cardman and Mike Fincke, JAXA astronaut Kimiya Yui, and Roscosmos cosmonaut Oleg Platonov aboard Dragon Endeavour.
Natural Disasters
Russian Earthquake: A powerful 7.0 magnitude earthquake struck the Kuril Islands near Russia’s Kamchatka Peninsula. Tsunami warnings were initially issued but later withdrawn as the threat subsided.
Indonesian Volcanic Activity: Mount Lewotobi Laki Laki volcano in Indonesia erupted for the second consecutive day, sending volcanic ash and material 18 kilometers into the atmosphere. Authorities warned residents to remain alert due to potential lava flows during heavy rainfall.
Diplomatic Developments
EU Arms Trade Ban: Slovenia became the first European Union country to impose a complete ban on arms trade with Israel, citing humanitarian concerns over the ongoing Gaza conflict. The decision reflects Slovenia’s earlier recognition of Palestine as an independent state.
Legal Investigations
US Political Probe: A US federal agency launched a formal investigation into former Special Counsel Jack Smith, who previously led criminal investigations involving former President Donald Trump after his first term in office.
SPORTS UPDATES
Cricket
England vs India Test Series: The fifth and final Test of the Anderson-Tendulkar Trophy 2025 at The Oval reached a thrilling climax. England requires 35 runs to win on Day 5 while India needs 4 wickets for victory. Rain and bad light interrupted play on Day 4, setting up a dramatic finale.
Individual Achievement: Mohammed Siraj became the only Indian bowler to complete 1,000 deliveries in the Anderson-Tendulkar Trophy 2025, demonstrating exceptional stamina and commitment throughout the series.
Chess
World Championship: Grandmaster Magnus Carlsen claimed the inaugural Chess Esports World Cup title, adding another prestigious trophy to his illustrious career in chess.
Table Tennis
International Qualification: Both Indian men’s and women’s table tennis teams qualified for the London 2026 World Table Tennis Championships, representing a significant achievement for Indian table tennis on the global stage.
Rugby
Championship Preparation: Bihar Chief Minister Nitish Kumar unveiled ‘Ashoka’, the official mascot for the Asia Rugby Under-20 (Sevens) Championship. The rabbit mascot symbolizes speed and agility, key traits in rugby. The championship will be held in Rajgir on August 9-10, featuring teams from India, Hong Kong, China, UAE, Uzbekistan, Kazakhstan, Sri Lanka, Malaysia, and Nepal.
ECONOMIC DEVELOPMENTS
Growth Projections
IMF Forecast: The International Monetary Fund upgraded India’s economic growth forecast to 6.4% for both 2025 and 2026, up from earlier projections of 6.2% and 6.3% respectively. This reaffirms India’s position as the world’s fastest-growing major economy.
Comparative Analysis: While India maintains robust growth, China is forecast to grow at 4.8% in 2025 and 4.2% in 2026, and the United States is expected to expand by 1.9% in 2025 and 2.0% in 2026.
Alternative Projection: Fitch Ratings provided a more conservative outlook, lowering India’s GDP growth forecast for FY26 to 6.3%, citing various economic factors and global headwinds.
Financial Services
Mutual Fund Approvals: Choice Asset Management Company received SEBI approval to commence mutual fund business operations. Quant Mutual Fund secured approval to launch India’s first Small and Mid Cap Index Fund.
Defence Sector Growth
Record Production: India’s defence production reached Rs 1,27,265 crore in FY 2023-24, representing a remarkable 174% increase compared to Rs 46,429 crore in 2014-15. The defence budget has grown significantly from Rs 2.53 lakh crore in 2013-14 to Rs 6.81 lakh crore in 2025-26.
AWARDS AND RECOGNITION
Cinema
National Film Awards 2023: The 71st National Film Awards recognized outstanding contributions to Indian cinema. ’12th Fail’ won the Best Feature Film award. Shah Rukh Khan and Vikrant Massey jointly received the Best Actor award for their performances in ‘Jawan’ and ’12th Fail’ respectively. Rani Mukerji won the Best Actress award for ‘Mrs Chatterjee vs Norway’.
SCIENCE AND TECHNOLOGY
Space Research
Analog Mission: ISRO inaugurated the Himalayan Outpost for Planetary Exploration (HOPE) analog mission in Tso Kar Valley, Ladakh on July 31, 2025. The 10-day mission (August 1-10) simulates space mission conditions to prepare for India’s human spaceflight program, including the Gaganyaan mission and the planned crewed lunar landing by 2040.
BANKING AWARENESS
Key Regulatory Changes
Compliance Requirements: Punjab National Bank set August 8, 2025, as the final deadline for customers to complete pending KYC updates, following Reserve Bank of India guidelines for regulatory compliance.
Credit Card Changes: HDFC Tata Neu Infinity Credit Card implemented new NeuCoins expiry rules from August 1, 2025. NeuCoins will now expire one year from the month they are earned, replacing the previous policy where they didn’t expire with regular card usage.
Insurance Discontinuation: SBI Card discontinued complimentary air accident insurance on several co-branded credit cards starting August 11, 2025, affecting coverage worth Rs 1 crore and Rs 50 lakh on different card categories.
IMPORTANT DATES AND OBSERVANCES
World Breastfeeding Week 2025: August 1-7, promoting awareness about breastfeeding benefits for infant and maternal health.
World Wide Web Day 2025: August 1, commemorating the invention of the World Wide Web and its impact on global communication and information sharing.
KEY TAKEAWAYS FOR COMPETITIVE EXAMS
Banking and Finance Focus Areas
Banking Laws Amendment Act 2025 provisions and implementation timeline
New UPI regulations and their impact on digital payments
RBI policy changes regarding trading hours and bank mergers
Updated KYC compliance requirements and deadlines
Government Schemes and Initiatives
PM Viksit Bharat Rozgar Yojana features and benefits
PM-KISAN scheme installment details and beneficiary numbers
Aadi Karmayogi Abhiyan objectives and implementation areas
Economic Indicators
IMF growth projections for India and comparison with other major economies
Defence sector production statistics and budget allocations
Mutual fund industry regulatory approvals and new products
International Relations
Space cooperation through SpaceX Crew-11 mission
EU diplomatic decisions regarding arms trade restrictions
Natural disaster responses and international coordination
Sports and Cultural Events
Cricket series outcomes and individual achievements
International championship qualifications and preparations
National film awards recognition and categories
This comprehensive update provides essential information for candidates preparing for various competitive examinations including UPSC, SSC, Banking, Railways, and State PSC exams. Regular reading of such updates enhances general knowledge and current affairs preparation for these prestigious examinations.
