News Summary · 4 minutes read
Stay ahead in your UPSC CSE preparation with our daily News Summary. Designed to save time, it highlights key national and international events from leading newspapers and government websites.
Indian Information Service (IIS)
- A central civil service under the Ministry of Information and Broadcasting → IIS officers work in various Govt-owned media units such as DD News, AIR, and PIB.
- Established as Central Information Service (CIS) in 1960 → bifurcated into IIS Group A and IIS Group B in 1987.
- IIS officers are the media managers of the Indian Govt → act as a link between the Govt and the public regarding info/feedback about the Govt policies/schemes.
23rd India-Russia Annual Summit
- Held in New Delhi on 4-5 December 2025 → Co-chaired by PM Modi and Russian President Vladimir Putin.
- Marks the 25th year of the strategic partnership between India and Russia → both countries signed a Declaration on Strategic Partnership in 2000.
- India and Russia signed 16 agreements during the summit.
- Need for early conclusion of a Free Trade Agreement with the Eurasian Economic Union was emphasised.
Key outcomes
- Agreements on Temporary Labour Activity of Citizens of one State in the Territory of the other State and Cooperation in Combating Irregular Migration → will enhance the mobility of Indian semi-skilled and skilled workers to Russia.
- MoU on the Training of Specialists for Ships Operating in Polar Waters.
- India will launch a free 30-day e-tourist visa and a 30-day Group Tourist Visa for Russian citizens soon.
- Russia has decided to adopt the Framework Agreement to join the International Big Cat Alliance (IBCA).
- Programme for the Development of Strategic Areas of India-Russia Economic Cooperation till 2030 (Programme 2030 or Vision 2030) announced → targets $100 billion bilateral trade by 2030.
RBI cuts repo rate by 25 basis points
- RBI’s Monetary Policy Committee (MPC) has reduced the policy repo rate by 25 basis points (bps) to 5.25%.
- Repo rate: interest rate at which the RBI lends to commercial banks.
- Impact of repo rate cuts:
- +ve: lowers banks’ borrowing costs, encouraging them to reduce lending rates, which boosts spending, investment, economic growth, and job creation.
- -ve: lowers returns on time and demand deposits, which affects savers’ income, and increases inflationary risks due to higher liquidity; borrowing becomes cheaper, but sectors dependent on imports face higher input costs due to Rupee depreciation.
Monetary Policy Committee (MPC)
- Constituted in 2016 under the RBI Act, 1934 (as amended by Finance Act, 2016).
- Tasked with determining the policy repo rate to achieve the 4% CPI inflation target (with a 2-6% band) while supporting growth.
- Setting up an MPC was recommended by several committees, including the Urjit Patel Committee (2013).
- Members (6)
- 3 internal: chairperson (RBI Governor) + RBI’s Deputy Governor in charge of monetary policy + one other RBI official.
- 3 external: nominated by the Govt for expertise in economics, banking, or finance.
Small Finance Banks (SFBs)
Recently, Fino Payments Bank Ltd. received the RBI’s ‘in-principle’ approval to convert into a Small Finance Bank.
Key facts about SFBs
- Licensed under the Banking Regulation Act, 1949, with a specific mandate to serve the unserved and underserved sections.
- RBI released guidelines for SFBs in 2014 → first approvals granted in 2015.
- Minimum net worth should be ₹200 crore → net worth of Primary (Urban) Co-operative Banks (UCBs) desirous of transiting into SFBs should be ₹100 crore, which will have to be increased to ₹200 crore within 5 years of commencement of business.
- Can accept all kinds of deposits — savings, current, fixed, and recurring deposits.
- Lending is allowed.
- Must allocate 60% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures (CEOBE), whichever is higher, to Priority Sector Lending (PSL).
- At least 50% of loan portfolios must comprise loans up to ₹25 lakh.
- At least 25% of branches should be in unbanked rural centres within one year of commencement of operations.
- Capital to Risk-Weighted Assets Ratio (CRAR) should be 15% (with 7.5% Tier I) or higher.
Quick Picks for Prelims and Mains (QPPM)
- Kudankulam Nuclear Power Plant (Tamil Nadu): India’s largest nuclear facility (6 units are planned with 1,000 MW each; 2 units are operational) → being developed by India’s NPCIL in collaboration with Russia.
- Lok Sabha has passed the Health Security se National Security Cess Bill, 2025 → will introduce a new cess on pan masala that will be used for improving public health and strengthening national security → replaces the existing GST compensation cess.
- Nitish Kumar: recognised by the World Book of Records, London, for becoming the first Indian to hold the post of Chief Minister 10 times.
- UMEED portal: a centralised digital platform for real-time uploading, verification, and monitoring of Waqf properties.
- Unified Payment Interface (UPI) is currently accepted in eight countries — Bhutan, Singapore, Qatar, Mauritius, Nepal, UAE, Sri Lanka and France.
- Washington Accords for Peace and Prosperity: a peace agreement facilitated by the US and signed between DR Congo and Rwanda → aimed at ending the conflict in eastern DR Congo and opening the region’s critical mineral reserves to the US.