Business, Economy & Banking Current Affairs MCQs

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The Union Cabinet approved an incentive scheme to promote low-value BHIM-UPI (Person-to-Merchant – P2M) transactions for FY 2024-25. The scheme aims to strengthen BHIM-UPI, boost transaction volumes to ₹20,000 crore, and promote UPI 123PAY & offline UPI Lite/LiteX. It encourages UPI adoption in rural and remote areas. The Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI). It enables users to link multiple bank accounts in a single mobile app for instant money transfers. BHIM-UPI, launched in 2016, is a government-backed app for seamless, fast, and secure digital payments.

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Life Insurance Corporation of India (LIC) agents are protesting against new insurance rules affecting their work. LIC, the largest public sector life insurance company in India, is headquartered in Mumbai. It plays a key role in India’s financial market and is also the biggest institutional investor. It was established in 1956 through the Life Insurance of India Act. LIC nationalized the insurance sector by merging 245 private insurers. Its motto, “Yogakshemam Vahamyaham,” means “Your welfare is our responsibility.” LIC operates through 8 zonal offices in Delhi, Chennai, Mumbai, Hyderabad, Kanpur, Kolkata, Bhopal, and Patna.

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The Pension Fund Regulatory and Development Authority (PFRDA) issued regulations for the Unified Pension Scheme (UPS) under the National Pension System (NPS), 2025. PFRDA is a statutory regulatory body established under the PFRDA Act, 2014. Its objective is to promote old-age income security by regulating pension funds and protecting subscriber interests. PFRDA operates under the Ministry of Finance. It is headquartered in New Delhi with regional offices across India.

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Indian banks must strengthen credit risk management by adopting International Financial Reporting Standards (IFRS 9) and improving loan supervision, collateral valuation, and borrower group assessments. The International Monetary Fund (IMF) highlighted this in its Financial System Stability Assessment (FSSA) report. The Reserve Bank of India (RBI) released the report’s findings on 24 March. The Financial Sector Assessment Program (FSAP) is a joint initiative of the IMF and World Bank for financial sector analysis. The last FSAP for India was in 2017, with the FSSA report published on December 21, 2017. India’s financial system has become more resilient and diverse since 2017, driven by rapid economic growth. India remains committed to adopting global financial standards while considering domestic needs and economic conditions.

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The government proposed abolishing the 6% Equalisation Levy (EL) on online ads from April 1, 2025. The move benefits advertisers on platforms like Google, X, and Meta. Equalisation Levy (EL) was introduced in 2016 for online ads and extended in 2020 to e-commerce services. It imposed a 6% tax on non-residents for online ads and a 2% tax on e-commerce, which was removed in 2024. The decision aims to ease US trade tensions, as the US threatened reciprocal tariffs from April 2.

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National Payments Corporation of India (NPCI) launched BHIM (BHarat Interface for Money) 3.0 with new features. It supports 15+ Indian languages. The app allows users to track, manage, and split expenses. It optimized for low internet areas, ensuring uninterrupted transactions. It includes a built-in task assistant for bill reminders, UPI Lite activation, and low balance alerts.

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India became the third-largest producer of electricity from wind and solar energy in 2024, overtaking Germany, as per Ember’s Global Electricity Review. Wind and solar generated 10% of India’s electricity in 2024, and 15% globally. Clean energy sources like renewables and nuclear power made up 40.9% of global electricity – the highest since the 1940s. India added 24 gigawatts (GW) of solar in 2024, becoming the third-largest market after China and the US. Solar power contributed 7% of India’s electricity, doubling since 2021. India aims for 50% of installed power capacity from non-fossil sources by 2030 under its Nationally Determined Contributions (NDCs) to the United Nations Framework Convention on Climate Change (UNFCCC). India also targets 500 GW of non-fossil fuel capacity by 2030, but needs 20% more annual funding to meet it, according to Ember.

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The Investor Education and Protection Fund Authority (IEPFA) under the Ministry of Corporate Affairs and India Post Payments Bank (IPPB) under the Department of Posts signed a Memorandum of Agreement (MoA) to launch Phase 2 of the “Niveshak Didi” initiative. “Niveshak Didi” trains women postal workers and community leaders as financial educators to improve financial literacy in rural and underserved areas. In Phase 1, over 55,000 people benefited from IPPB Financial Literacy Camps, with around 60% being women, mostly young and economically active from deep rural areas. Phase 2 will include 4,000 new camps led by 40,000 trained women promoting responsible investing, savings, digital banking, and fraud awareness.

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The unemployment rate in rural areas has slightly decreased from 4.3 percent to 4.2 percent, showing a small improvement in job availability. As per the Annual Report of the Periodic Labour Force Survey (PLFS) from January to December 2024, the labour force participation rate (LFPR) in urban areas has gone up from 50.3 percent to over 51 percent. The worker population ratio (WPR), which measures the percentage of working people in the population, has also improved. In urban areas, the overall WPR increased from 47 percent to 47.6 percent, indicating better employment engagement.

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Juspay, a Bengaluru-based payments infrastructure company, became India’s first unicorn of 2025 after raising $60 million in a Series D funding round. The round was led by Kedaara Capital, with participation from SoftBank and Accel, pushing Juspay’s valuation over $1 billion. The company plans to improve its technology using Artificial Intelligence (AI) and expand into international markets like Asia-Pacific (APAC), Latin America, Europe, United Kingdom (UK), and North America. Despite losing major clients like Razorpay and PhonePe, Juspay remains focused on AI-driven productivity and global growth to sustain its momentum.