Daily Current Affairs 2025  

28/08/2025

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CA-28/08/2025

 
Why in news?
Pradhan Mantri Jan Dhan Yojana (PMJDY) has just completed its 11th anniversary on August 28, 2025, marking a significant milestone as one of the largest financial inclusion programs in the world.
 
About PMJDY
The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a flagship financial inclusion program launched by the Government of India on 28 August 2014 to provide universal access to banking facilities, mainly targeting unbanked and underprivileged citizens.
 
Key Features

• Zero balance savings bank account for every eligible Indian citizen, including minors aged 10 and above (with a guardian).
• Accounts offer access to basic financial services such as savings, deposits, remittances, credit, insurance, and pensions.
• RuPay debit card is provided to account holders, with built-in accidental insurance coverage.
• Overdraft facility of up to ?5,000 is available for eligible account holders after satisfactory account activity for at least six months.
• Direct Benefit Transfer (DBT): Government welfare payments, subsidies, and pensions can be credited directly into these accounts.

Impact and Achievements

• The scheme set a Guinness World Record for the most bank accounts opened in one week (over 18 million) at its launch.
• As of 2021, over 417 million accounts have been opened, with a substantial increase in financial inclusion for previously unbanked families.
• The campaign is recognized for making banking services more accessible, especially in rural and underserved areas.

Benefits to Account Holders

• No minimum balance required for most accounts, making it accessible to the poor.
• Accidental insurance cover of up to ?1 lakh linked to the RuPay card, plus additional insurance for early account holders.
• Life insurance cover for qualified beneficiaries opening accounts within a specified period.
• Promotes financial literacy and empowers citizens to participate in the formal banking system.

Objectives

• Widen affordable access to financial services.
• Cover every household with at least one bank account.
• Bring about socioeconomic inclusion and help transfer government benefits directly to citizens more transparently.

This program has played a pivotal role in transforming the banking landscape of India, making financial services more accessible and transparent for millions.
 
 

   
Why in news?
The Government of India has extended the import duty exemption on cotton until December 31, 2025, providing relief for the textile sector and exporters amid global trade challenges, particularly increased US tariffs.

Rationale for Extension

• The move comes as Indian apparel exporters face steep new US tariffs, with overall duties now exceeding 60% on garments and related sectors.
• Industry bodies had demanded removal of the import duty to mitigate volatile cotton prices and ensure global competitiveness, especially as the US is India's largest export market for ready-made garments.
• Extending duty-free imports is expected to stabilise cotton and textile prices domestically, lowering input costs and supporting small and medium enterprises.

Impact on Sector

• Textile industry leaders anticipate this action will aid exporters in adapting to shifting market conditions and safeguard employment across the cotton value chain, which involves around 35 million people in India.
• Imports could potentially reach a record 4.2 million bales in 2025, with strong demand into early next year.

Key Exporter’s key benefits
Lower Raw Material Costs

• Removal of the 11% import duty (covering BCD, AIDC, and surcharge) allows mills and exporters to access cheaper international cotton, reducing input costs for yarn, fabric, and garments.
• This is especially valuable now, as US tariffs on Indian textile goods have climbed to over 60%, squeezing margins for exporters.

Improved Global Competitiveness

• More affordable, duty-free cotton helps Indian exporters match or undercut international rivals, such as Bangladesh and Vietnam, in global markets.
• Higher quality, contamination-free imported cotton supports the manufacture of products that meet demanding international standards.

Larger, Longer-Term Orders and Better Planning

• Extending the window until December 31, 2025, gives manufacturers and exporters time to place and receive large-volume cotton orders, avoiding supply shocks or price volatility.
• The previous short window only allowed "in-transit" cotton to benefit; now, full-scale planning and contracting can take place, stabilizing the supply chain.

Industry and Employment Relief

• The extension mitigates risks of job losses and plant shutdowns, which were a top concern after the US tariff hike.
• It helps protect the livelihoods of millions employed across the textile value chain, a sector responsible for roughly one-third of India's total exports.

 
 
   
Why in news?
Union Cabinet, led by Prime Minister Narendra Modi, has approved a major restructuring and extension of the scheme until March 31, 2030, with a total outlay of ?7,332 crore.
 
About PM SVANidhi
The PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme is a central sector initiative launched in June 2020 to provide affordable, collateral-free working capital loans to street vendors affected by the COVID-19 pandemic.
 
Features of PM SVANidhi:

• Collateral-free working capital loans up to ?15,000 in the first tranche, ?25,000 in the second, and up to ?50,000 in the third tranche.
• Loans provided for a tenure of one year, with no moratorium period.
• Interest subsidy of 7% per annum for timely or early repayment.
• Digital cashback incentives up to ?1,200 annually to promote digital transactions.
• Provision of UPI-linked RuPay Credit Cards to beneficiaries who repay loans timely.
• Expanded coverage from statutory urban towns to census towns, peri-urban, and rural areas.
• Capacity building through training in entrepreneurship, financial literacy, digital skills, and food safety.
• No collateral or processing fees required.
• Repayment in equal monthly installments.
• Scheme extended till March 31, 2030, with a total outlay of ?7,332 crore.

Benefits of PM SVANidhi:

• Provides street vendors access to affordable credit for resuming and expanding their businesses.
• Enhances financial inclusion by bringing vendors into the formal banking system.
• Encourages digital payments, gradually integrating vendors into the digital economy.
• Promotes regular loan repayment through interest subsidies and cashback rewards.
• Supports socio-economic development and dignity for vendors by reducing dependence on informal and usurious credit sources.
• Helps preserve livelihoods and boosts economic activity in urban and surrounding areas.

Achievements of PM SVANidhi:

• Over 6.5 million street vendors benefited from loans aggregating over ?12,739 crore.
• More than 80 lakh loans disbursed, significantly aiding recovery post-pandemic economic disruption.
• Digital payment adoption among street vendors has increased substantially.
• Formalization of street vending has led to better legal recognition, reducing harassment and conflicts.
• The scheme has garnered recognition for financial inclusion and empowerment of a traditionally marginalized workforce.
• Mega camps and targeted outreach have expanded participation, including special focus on women and food vendors.

Despite challenges like urban governance issues and rural manpower shifts, PM SVANidhi has been pivotal in reviving street vending, fostering digital finance, and augmenting livelihoods in the informal sector.
 
 
   
Why in news?
 
The Ministry of Minority Affairs launched a new module on the UMEED Portal designed to allow widows, divorced women, and orphans to apply for maintenance support from specific Waqf properties (Waqf-alal-aulad).
This module includes Aadhaar-based beneficiary authentication, online application and approval processes managed by State/UT Waqf Boards, and Direct Benefit Transfer (DBT) of funds to beneficiaries' bank accounts.
This enhancement aims to increase transparency, efficiency, and social justice in delivering financial support to vulnerable groups within minority communities.
 
About UMEED Portal (Unified Waqf Management, Empowerment, Efficiency, and Development)
 
The UMEED Portal (Unified Waqf Management, Empowerment, Efficiency, and Development) is a centralized digital platform launched by the Ministry of Minority Affairs, Government of India, on June 6, 2025. It is designed to digitize, streamline, and enhance the management and monitoring of Waqf properties across India.

Purpose and Features of UMEED Portal

• The portal aims to bring transparency, accountability, and public participation in the administration of Waqf properties, which are lands or buildings donated for religious or charitable purposes.
• It enables real-time uploading, verification, and monitoring of Waqf properties.
• The portal helps safeguard the rights of minority communities, especially poor Muslims, women, and children, ensuring that Waqf assets are used effectively and fairly for their intended purposes.
• Registration of Waqf properties on the portal is mandatory within six months of its launch, including detailed property data with geotagged locations.
• Properties registered under women's names will not be classified as Waqf properties, but women and economically weaker sections remain key beneficiaries.
• Unregistered properties after the stipulated period will be considered disputed and referred to the Waqf Tribunal for resolution.

Significance

• The UMEED Portal represents a significant reform to curb misuse of Waqf properties and improve governance by establishing a three-tier maker-checker-approver mechanism.
• It serves as a single-window system for registration, verification, legal tracking, and revenue monitoring.
• The portal also allows online account filing, real-time audits, and public access to Waqf records, strengthening governance and trust.

This initiative under the Waqf (Amendment) Act, 2025, marks a historic step in the digital governance of Waqf assets in India.
 

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