Daily Current Affairs and GK Update - 16.08.2025

National News

Government Policy and Economic Developments

Prime Minister Modi Announces Major Employment Scheme – PM Modi launched the Pradhan Mantri Viksit Bharat Rozgar Yojana with a budget of ₹1 lakh crore from Red Fort on Independence Day. The scheme will provide ₹15,000 incentives to first-time EPFO-registered employees in private sector and create 3.5 crore new job opportunities over two years
GST Reforms by Diwali – Centre proposed reducing current four GST slabs to two main slabs of 5% and 18%, with special 40% rate for luxury and sin goods. The move will benefit common man items and small businesses, with 99% of 12% slab items moving to 5% and 90% of 28% slab items shifting to 18%
New Banking Laws Come Into Effect – Banking Laws Amendment Act 2025 became operational from August 1, introducing governance reforms including revision of substantial interest threshold from ₹5 lakh to ₹2 crore, extended director tenure in cooperative banks from 8 to 10 years, and enhanced audit standards for PSBs
Delhi Notifies Private School Fee Regulation – Delhi government notified the School Education Bill 2025 to regulate arbitrary fee hikes in private schools. The law establishes three-tier fee regulation framework with penalties ranging from ₹1-10 lakh for violations and empowers parents in fee-fixation process

Infrastructure and Technology

BSNL Launches 4G Services in Delhi – State-owned telecom operator soft-launched 4G network in Delhi NCR through partner network arrangement as Independence Day gift. The service provides instant 4G connectivity for new customers with plans to invest additional ₹47,000 crore in network expansion
New UPI Rules Effective – NPCI implemented new UPI regulations limiting balance checks to 50 times per day per app and account views to 25 times daily. Autopay mandates now execute only during non-peak hours to reduce system load and improve transaction efficiency

Tragic Incidents

Kishtwar Flash Floods – Massive cloudburst in Jammu and Kashmir’s Kishtwar district killed at least 65 people with 200 still missing. The disaster struck along Machail Mata Yatra pilgrimage route affecting over 1,200 people including pilgrims. Rescue operations continue amid challenging weather conditions
Nagaland Governor Passes Away – La Ganesan, 80, died at Chennai hospital after suffering head injury from fall at residence on August 8. The veteran BJP leader and RSS worker served as Governor of Nagaland since February 2023 and previously as Governor of Manipur and West Bengal

Trump-Putin Alaska Summit

Historic Meeting Concludes Without Agreement – US President Donald Trump and Russian President Vladimir Putin held high-stakes talks in Alaska to discuss Ukraine war ceasefire. The three-hour summit ended without concrete results though both leaders expressed willingness for future negotiations
B-2 Bomber Flyover – US conducted strategic show of force with B-2 bomber and F-35 fighters flying overhead as leaders met at Joint Base Elmendorf-Richardson. Putin invited Trump to Moscow for future discussions while announcing plans for trilateral meeting with Ukrainian President Zelensky

South Asian Flooding Crisis

Pakistan Flood Devastation – Flash floods killed over 280 people across Pakistan and India within 24 hours. Pakistan reported 243 fatalities including 157 in Buner district alone. Rescue helicopter crashed during relief operations killing all five crew members including two pilots
Climate Change Impact – Experts attribute increasing frequency of cloudbursts and flash floods to climate change effects. The monsoon season has claimed over 477 lives in Pakistan since June 26, highlighting vulnerability of mountainous regions to extreme weather events

Other International Developments

European Wildfires – Spain, Portugal and Greece continue battling extensive wildfires amid persistent hot, dry conditions. Firefighters work to contain blazes threatening communities and infrastructure across southern Europe
Australian-Philippine Military Exercises – Australia launched largest military exercises with Philippine forces involving over 3,600 personnel in live-fire drills near disputed South China Sea waters, demonstrating regional security cooperation

Major Banking Developments

S&P Upgrades India Rating – S&P Global raised India’s sovereign credit rating to BBB from BBB- after 18 years, citing economic resilience and fiscal consolidation. The upgrade also benefited 10 major financial institutions including SBI, HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank
SBI’s Record QIP Success – State Bank of India completed India’s largest Qualified Institutional Placement raising ₹25,000 crore through share allotment at ₹817 per share. The issue was oversubscribed 4.5 times with strong participation from domestic and foreign institutional investors
RBI Monetary Policy – Reserve Bank maintained repo rate at 5.50% with neutral stance in August MPC meeting. The central bank reduced inflation forecast for FY26 from 3.7% to 3.1% while keeping GDP growth projection at 6.5%. CRR reduction from 4% to 3% will begin from September
Banking Sector Reforms – RBI eased Special Rupee Vostro Account norms allowing Category-I banks to open accounts for foreign correspondent banks without prior approval. This move aims to boost rupee-denominated trade settlements and reduce dependence on dollar transactions

Market and Investment Updates

Bank Holiday Schedule – Banks remain closed on August 16 for Janmashtami celebrations in most states except Maharashtra, Karnataka, Kerala, West Bengal, Delhi, Goa and Himachal Pradesh. Independence Day on August 15 was national holiday for all banks
Credit Growth Trends – Bank credit grew 12.1% in 2024-25, slower than previous year’s 16.3% but above 10-year average of 10.3%. Public sector banks show improved asset quality and capital adequacy with CRAR at 17% and net interest margin at 3.5%

Cricket Updates

Asia Cup 2025 Squad Speculation – Shubman Gill expected to return to India’s T20I squad for Asia Cup with possible leadership role. However, reports suggest Suryakumar Yadav will retain captaincy while current opening pair of Sanju Samson and Abhishek Sharma likely to continue
Squad Selection Dynamics – Rinku Singh’s position uncertain with selectors preferring multi-skilled players. Yashasvi Jaiswal advised to focus on red-ball cricket and likely to miss Asia Cup selection. Final squad announcement expected on August 19 in Mumbai

Key Topics for Banking Exams

Important Current Affairs Points

Economic and Financial Awareness