NATIONAL NEWS

Union Minister Of Jal Shakti Shri C R Patil Inaugurates C-FLOOD

Union Minister of Jal Shakti, Shri C. R. Patil, inaugurated C-FLOOD, a Unified Inundation Forecasting System on August 7, 2025, at Shram Shakti Bhawan, New Delhi.

It is developed jointly by:

Centre for Development of Advanced Computing (C-DAC), Pune

Central Water Commission (CWC)
Under the Department of Water Resources, River Development and Ganga Rejuvenation (DoWR, RD & GR), Ministry of Jal Shakti.

It provides 2-day advance flood forecasts down to the village level via:

Flood inundation maps

Water level predictions

It acts as a decision-support tool for disaster management authorities, integrating flood models from national and regional agencies.

 

INTERNATIONAL NEWS

American President Donald Trump Announces 100% Tariff on Imported Semiconductors

Donald Trump, President of the United States, announced a plan to impose a 100% tariff on foreign-made semiconductors.

Exemptions will apply to companies that have invested in the United States, even if they are not yet producing.

The announcement followed Apple's $600 billion investment in the US.

Trump previously told CNBC he would unveil the tariff "within the next week."

Specific details about the implementation timeline of the tariff remain unclear.

Taiwan's TSMC (world’s largest chipmaker) will be exempt due to its existing US investments.

In March, TSMC announced plans to increase its US investment to $165 billion, expanding facilities in Arizona.

South Korea’s Samsung and SK Hynix will also be exempt as they have invested in Texas and Indiana.

South Korea signed a favourable trade deal with the US in early 2025, further ensuring exemptions.

The CHIPS Act (signed in 2022 by President Joe Biden) provided subsidies and tax credits to promote domestic semiconductor manufacturing.

The Philippines is negatively affected, with semiconductors accounting for 70% of its exports; the impact is described as "devastating."

The blanket tariffs are expected to take effect on Thursday, alongside other sector-specific tariffs on steel, aluminium, automobiles, and pharmaceuticals.

 

BANKING

Monetary Policy Committee

The Monetary Policy Committee (MPC) has kept the policy repo rate unchanged at 5.50%.

The Standing Deposit Facility (SDF) rate remains at 5.25%, and the Marginal Standing Facility (MSF) rate and Bank Rate are maintained at 5.75%.

This decision aligns with the objective of achieving a medium-term CPI inflation target of 4% ±2% while supporting growth.

Real GDP growth projection retained at 6.5% for FY 2025-26.

India’s economy has bright medium-term prospects due to strong fundamentals and comfortable buffers.

The RBI is taking a multi-pronged and cohesive approach to policymaking.

Inflation is currently low mainly due to favourable base effects and benign food prices, but may rise again by Q4 FY26.

SEBI Opens Innovation Sandbox For Proposals On Fractional Share Trading

Securities and Exchange Board of India (SEBI) has approved a startup’s proposal to test fractional share trading in its innovation sandbox — a potential shift in India’s equity market.

This is a reversal from 2021, when SEBI rejected a similar proposal over custody concerns.

Fractional shares let investors buy/trade portions of a share, unlike traditional whole unit trading.

This model is already popular in the US.

Xaults, a Bengaluru-based startup, joined SEBI’s innovation sandbox in August 2025 to pilot fractional share trading.

Full-scale live testing will occur only if SEBI upgrades Xaults to the regulatory sandbox.

Xaults also plans to test smart contract-based trade settlements with clearing corporations.

A specific depository will be designated if SEBI moves the firm forward.

RBI Approves AU Small Finance Bank’s Transition to Universal Bank Status

AU Small Finance Bank (AU SFB) becomes the first SFB to receive in-principle approval from the Reserve Bank of India (RBI) to transition into a Universal Bank after more than 11 years.

AU SFB is the largest small finance bank in India, holding ₹2.40 trillion in total business and a 40% market share among all SFBs.

AU’s loan book grew from ₹13,413 crore (FY18) to ₹1.09 trillion, and deposits increased from ₹7,923 crore to ₹1.24 trillion.

The RBI laid out voluntary transition norms in April 2024, and AU applied in September 2024.

AU was one of the first 10 entities to receive SFB licences in 2015 and began operations in 2017. Unlike others, AU was not a microfinance institution.

AU acquired Fincare SFB in April 2024, the first SFB merger in India. Even after acquisition, microfinance loans are less than 10% of its portfolio.

As an SFB, AU was required to lend 60% to the Priority Sector (PSL), while universal banks required only 40%, freeing funds for mid-corporate lending (earning ~12% yield).

AU's PSL loans were 80%, giving it surplus PSL certificates to sell.

Kotak Mahindra Bank Unveils ‘Solitaire’

Kotak Mahindra Bank has launched ‘Solitaire’, an exclusive, invitation-only programme targeting affluent customers.

Eligibility include Salaried individuals with a relationship value of ₹75 lakh and Self-employed individuals with ₹1 crore relationship value.

Benefits offered ₹8 crore in pre-approved credit lines across home loans, personal loans, and credit cards.

Solitaire Credit Card features Zero annual fees, Unlimited lounge access and Zero forex markup

The programme focuses on top-tier privileges, advanced investment tools, and personalised banking services.

Indian Banks’ Association Urges Banks to Expedite SWIFT ISO 20022 Adoption

The Indian Banks’ Association (IBA) has urged banks to accelerate implementation of SWIFT ISO 20022 norms to avoid disruptions in cross-border payments

Banks must start the migration by August 2025 to allow a buffer period for monitoring ISO 20022 transaction volumes.

ISO 20022 is a global standard for financial messaging, promoting structured and richer data in transactions.

It uses XML syntax, which enhances efficiency, and improves compliance and fraud prevention.

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is replacing the older MT messages with MX messages.

The coexistence period between MT and MX messages will end in November 2025, after which ISO 20022 becomes mandatory for SWIFT users.

 

APPOINTMENTS & RESIGNATIONS

Chairperson of Capacity Building Commission

Mr. S. Radha Chauhan has assumed charge as the Chairperson of the Capacity Building Commission (CBC) in New Delhi

She is a retired IAS officer of the Uttar Pradesh cadre, 1988 batch

She has held various positions in both State and Central Governments, and is the former Secretary, Department of Personnel and Training (DoPT)

She succeeds Shri Adil Zainulbhai, who served as Chairman of the CBC since April 2021.

The Capacity Building Commission was constituted on 1st April 2021 by the Government of India.

The Commission is a key institution under Mission Karmayogi, responsible for:

Standardisation and harmonisation across the Indian civil services.

Acting as the custodian of civil services capacity building reforms.

It plays a central role in implementing the institutional framework of Mission Karmayogi, which aims to transform Indian bureaucracy for future readiness.

Karol Nawrocki, Pro-MAGA Conservative, Sworn in As Poland’s President

Karol Nawrocki, a conservative historian and supporter of Donald Trump’s MAGA movement, was sworn in as President of Poland August 6, 2025.

He was backed by the nationalist opposition party Law and Justice (PiS).

His election is a setback to Prime Minister Donald Tusk’s pro-European Union agenda, leaving his centrist government struggling in polls.

Nawrocki is expected to clash with the centrist government, leading to political deadlock, similar to the tenure of outgoing President Andrzej Duda.

As President, Nawrocki can veto government policies, including:Reversing judicial reforms made by PiS, which critics claim undermined judicial independence.

Nawrocki is also likely to propose populist measures such as tax cuts, which could strain Poland’s stretched national budget.

Nawrocki has opposed Ukraine’s entry into NATO and the EU, a departure from Duda’s position.

 

IMPORTANT DAYS

Nagasaki Day

Nagasaki Day is observed on August 9 every year.

On August 9, 1945, during the second world war, the US dropped a bomb on Nagasaki in the city of Japan.

It causes devastation on large scale. On August 9 on Nagasaki day, almost 74,000 people were killed and injured.

The nuclear bomb that was attacked by the US in Nagasaki called the ‘FAT MAN’. This bomb attack suddenly devastes the Nagasaki and killed almost 70,000 people during the attack.

The US warplane drop the bomb named FAT MAN in Nagasaki and this led to the surrender of Japan in the second world war II.

Due to the bomb attack, several people develop cancer and severe illness due to the sudden exposure of radiation.

After 5 to 6 years of bombing, the incidence of leukemia causes several other diseases like thyroid, breast diseases, lung cancer etc.

After so many decades, the risk caused by radiation exposure continues to increase and causes disease.

 

OBITUTARY

Veteran Tribal Leader And Former Jharkhand CM Shibu Soren

Shibu Soren, influential tribal leader and three-time Chief Minister of Jharkhand, passed away on 4 August 2025 at the age of 81, after a prolonged illness.

He was the co-founder of Jharkhand Mukti Morcha (JMM), a regional party instrumental in the creation of Jharkhand, a tribal-dominated eastern state.

Despite becoming Chief Minister of Jharkhand three times, he never completed a full term due to political instability.

In 1973, he founded Jharkhand Mukti Morcha (JMM) to advocate for a separate tribal state from southern Bihar.

In 2004, he served as Union Coal Minister in the Congress-led government, but resigned after being convicted in a murder case.

In 2005, he became Chief Minister of Jharkhand but had to resign within 10 days after failing to prove majority support in the State Assembly.