Daily Current Affairs (03 – Dec – 25)

Daily Current Affairs (03 – Dec – 25)

1. Circular Economy –

• Finland to organise circular economy roadshows across major Indian cities in 2026, coinciding with India’s hosting of the World Circular Economy Forum (WCEF) in October 2026.

About Circular Economy

• A Circular Economy is an economic model that aims to minimize waste and maximize resource efficiency by keeping products, materials, and resources in use for as long as possible.
• It replaces the traditional linear economy (take–make–dispose) with a regenerative system.

Core Principles: 

• Design Out Waste: Products are designed to reduce waste, pollution, and environmental harm.
• Keep Materials in Use: Reuse, repair, refurbish, remanufacture, and recycle materials to extend their life cycle.
• Regenerate Natural Systems: Restore ecosystems through sustainable extraction, composting, and renewable energy use.

2. Rupee Depreciation & its Impacts –

• Over the past year, the Indian Rupee (INR) has weakened against all major currencies (i.e., Rupee depreciation), shifting from overvalued to undervalued. Between late November 2024 and now, the rupee has depreciated about 7%, sliding from ₹83.4 to ₹89.2.
• This depreciation, amid a record trade deficit and global tariff shocks, boosts export competitiveness and cushions against cheap imports.

About Rupee Depreciation

• Rupee depreciation refers to a fall in the value of the Indian Rupee (INR) against major global currencies, especially the US Dollar (USD).

Key Statistics

• Broad-Based Nominal Depreciation: In the past year, the rupee  has weakened against all major currencies—5.6% vs USD, 9.4% vs Euro, 14.3% vs Pound—indicating a wide-spectrum nominal depreciation.
• Shift From Overvaluation to Undervaluation: With India’s lower inflation relative to the US, UK, Eurozone, and Japan, the Real Effective Exchange Rate (REER) index has fallen from 108.1 (Nov 2024) to 97.5 (Oct 2025), marking a clear move toward undervaluation.

3. RBI’s ₹1 Trillion OMO Purchase: What It Means and Why It Matters –

• The Reserve Bank of India (RBI) recently announced two major liquidity measures, a ₹1 trillion Open Market Operation (OMO) purchase and a $5 billion dollar-rupee swap. The move comes at a time when the rupee has crossed 90 per US dollar, putting pressure on financial markets and banking liquidity.

What is an Open Market Operation (OMO)?

• An Open Market Operation is a key monetary policy tool used by the RBI to regulate liquidity in the banking system.
• OMO purchase: RBI buys government securities from banks, injecting money into the system.
• OMO sale: RBI sells government securities to banks, absorbing extra liquidity.
• These operations help stabilise interest rates, support credit flow, and influence overall financial conditions in the economy.

Why Did RBI Announce a ₹1 Trillion OMO Purchase Now?

• The rupee’s sharp fall and foreign investor outflows drained liquidity from banks. When investors exit markets, they take money out, creating stress on rupee availability. To address this, RBI Governor Sanjay Malhotra announced the OMO purchase, saying it will strengthen monetary transmission and support market stability. This indicates that the RBI aims to keep borrowing costs aligned with its policy stance while smoothing funding pressures for banks.

4. MEITY & MEA Enable Paperless Passport Verification via DigiLocker –

• In a major boost to Digital India, the Ministry of Electronics and Information Technology (MEITY) and the Ministry of External Affairs (MEA) have jointly launched a paperless, contactless passport verification process through DigiLocker. This digital integration allows citizens to access and share their Passport Verification Records (PVRs) directly from the issued documents section of their DigiLocker accounts. This citizen-centric move aims to streamline the passport application and verification process, making it more efficient, transparent, and digitally verifiable.

Key Features and Benefits of the DigiLocker-PVR Integration

• This initiative promotes paperless governance by providing a secure and convenient way to manage and verify important identification documents digitally.

Here are the main features and advantages.

• Paperless Access and Storage: Citizens can now view and store their Passport Verification Records (PVRs) within DigiLocker, eliminating the need for physical document handling or printing.
• Secure and Trusted Verification:PVRs can be digitally verified using DigiLocker’s secure platform, ensuring data integrity, authenticity, and reducing the risk of tampering or forgery.
• Ease of Sharing for Services: The digital record can be easily shared with authorized agencies, such as passport offices, for processing applications or conducting background checks, without submitting paper copies.
• Contactless and Efficient Processing: The move aligns with post-pandemic protocols by reducing the need for in-person visits and physical document submissions, thus ensuring a contactless workflow.
• Integration with Official Verification Documents (OVD): The PVR now joins other government-issued documents within DigiLocker, enabling centralized digital access to vital identity and verification records.
• Support for Digital India Vision: This step reinforces the national mission to digitize governance and citizen services, cutting bureaucratic delays and improving service delivery.

5. RBI Monetary Policy December 2025: Why India Cut Rates and What It Means for the Economy –

• Under Section 45ZL of the Reserve Bank of India Act, 1934, every quarter, India’s Monetary Policy Committee (MPC) meets to decide how interest rates should move. These decisions shape borrowing costs, loan EMIs, business investments and the price of money in the economy.

From December 3 to 5, 2025, the MPC held its 58th meeting. Led by RBI Governor Shri Sanjay Malhotra, it was attended by:

1. Nagesh Kumar
2. Shri Saugata Bhattacharya
3. Ram Singh
4. Poonam Gupta
5. Shri Indranil Bhattacharyya

• Together, they assessed domestic and global data, inflation behaviour, growth conditions and financial market signals before giving India a fresh monetary direction.

The Big Decision: A Rate Cut to Push Growth

• After analysing numbers and risks, the MPC unanimously reduced the key policy rate — the repo rate — to 5.25%. This is the interest rate at which RBI lends to commercial banks and serves as India’s benchmark policy rate.

Other policy rates shifted accordingly:

• Standing Deposit Facility (SDF) moved down to 5.00%
• Marginal Standing Facility (MSF) and the Bank Rate now stand at 5.50%

MCQ Quiz

Q1. Indian Statistical Institute (ISI) Act, 1959 falls under which ministry ?

1. a) Ministry of Home Affairs
2. b) Ministry of Statistics and Programme Implementation
3. c) Ministry of Science & Technology
4. d) Ministry of Education

Q2. What is the name of India’s third indigenously built nuclear-powered ballistic missile submarine (SSBN) ?

1. a) INS Arihant
2. b) INS Kaveri
3. c) INS Aridhaman
4. d) INS Chakra

Q3. In news, Indian Navy Day is observed on which date to honour the achievements of the Indian Naval Forces and commemorate Operation Trident ?

1. a) 1st December
2. b) 4th December
3. c) 7th December
4. d) 15th December

Q4. With reference to India’s commitment to achieving Net-Zero emissions, consider the following statements:

1. India has committed to achieving net-zero greenhouse gas emissions by 2070, as announced at COP26 in Glasgow.
2. India aims to meet at least 50% of its total energy requirements from renewable energy sources by 2030.
3. India has pledged to reduce its carbon intensity by 45% by 2030 relative to 2005 levels.

Which of the statements given above is/are correct ?

1. a) 1 and 2 only
2. b) 1 and 3 only
3. c) 2 and 3 only
4. d) 1, 2, and 3

Explanation-

• Statement 1 is correct.
  At COP26 (Glasgow, 2021), India announced its target to achieve net-zero emissions by 2070, forming part of the Panchamrit commitments.
• Statement 2 is correct.
  India aims to fulfill 50% of its energy requirements from renewable energy by 2030, which includes solar, wind, hydro, and nuclear.
• Statement 3 is correct.
  India has committed to reducing carbon intensity by 45% by 2030 compared to 2005 levels—another major climate pledge.

Q5. Consider the following environmental initiatives and policies of India:

1. National Hydrogen Energy Mission— aims to scale up green hydrogen production and promote hydrogen valleys.
2. 2G Ethanol Programme— supports advanced biofuels by converting agricultural waste into ethanol.
3. National Clean Air Programme (NCAP)— targets a 40% reduction in particulate pollution by 2035.

Which of the statements given above is/are correct ?

1. a) 1 and 2 only
2. b) 1 and 3 only
3. c) 2 and 3 only
4. d) 1, 2, and 3

Explanation-

• Statement 1 is correct.
  The National Hydrogen Energy Mission promotes green hydrogen, electrolyser manufacturing, and hydrogen valleys, supporting India’s long-term decarbonization strategy.
• Statement 2 is correct.
  The 2G Ethanol programme focuses on second-generation biofuels, using agricultural residues (like rice straw) to produce ethanol—reducing stubble-burning and fossil-fuel dependence.
• Statement 3 is incorrect.
  Under NCAP, the target is to reduce PM2.5 and PM10 levels by 20–30% by 2024 (later extended to 2026), not 40% by 2035.