Dear Readers, get to know the daily current affairs today covering all the National & International Events provided here in this article. Current Affairs is an important topic in various competitive exams like IBPS/SBI/PO/Clerk and other competitive exams. To score better in this section, be updated with the daily happenings. Check the Daily Current Affairs January 2026 updates here. Revision is very important in remembering current affairs. Candidates after learning the Daily current affairs 03rd January 2026, can test their knowledge by attempting Current Affairs Quiz provided with answers. Daily current affairs 03rd January 2026 covers current affairs from International & National news, Important Days, State News, Banking & Economy, Business News, Appointments & Resignation, Awards & Honour, Books & Authors, Sports News, etc.,

Daily Current Affairs PDF of 03rd January 2026

Get More: Static GK Pdfs

CURRENT AFFAIRS : BANKING, FINANCE & BUSINESS

Reserve Bank of India Relaxes Capital Adequacy Norms for Non-Banking Finance Companies Financing High-Quality Infrastructure Projects

• The Reserve Bank of India (RBI) has eased capital adequacy norms for Non-Banking Finance Companies (NBFCs) lending to high-quality infrastructure projects through the NBFC (Prudential Norms on Capital Adequacy) Amendment Directions, 2026.

Key Highlights :

• The RBI has reduced risk weights on such exposures, allowing a 75% risk-weight if the borrower has repaid at least 2% of the sanctioned project debt, compared to the earlier draft requirement of 5–10% repayment.
• A lower 50% risk-weight will apply if the borrower has repaid at least 5% of the sanctioned project debt, relaxed from the earlier draft threshold of 10% or more.
• Lower risk weights reduce the capital that NBFCs must set aside, thereby encouraging lending to operational, lower-risk infrastructure projects.
• A project will be treated as “high-quality” if it has completed at least one year of operations after the Commercial Operation Date (COD), has no breach of material covenants, and the exposure is classified as ‘standard’.
• Project revenues must arise from government or public authority concessions or contracts, with legal protection of rights throughout the concession period, subject to fulfilment of borrower obligations.
• The amended directions will come into effect from April 1, 2026, or earlier if an NBFC opts for full adoption, and aim at better risk alignment, efficient capital allocation, and safer infrastructure financing.
• For exposures that currently enjoy a lower risk weight but would attract a higher risk weight under the new norms, NBFCs may continue with the existing risk weight until the next review or renewal or March 31, 2027, whichever is earlier.

Government Announces Floating Rate Savings Bond 2020 (Taxable) Interest Rate for January–June 2026

• The Floating Rate Savings Bond, 2020 (Taxable) – FRSB 2020(T) interest rate has been announced for the period January 1, 2026, to June 30, 2026.
• As per the Government of India notification dated June 26, 2020, the FRSB interest rate is reset every six months, ensuring linkage with prevailing small savings rates.
• The coupon rate on FRSB is fixed at 35 basis points (0.35%) above the National Savings Certificate (NSC) interest rate.
• For the current half-year, the NSC rate stands at 7.70%, and with the +0.35% spread, the FRSB interest rate is 8.05%.
• Interest for this period will be paid on July 1, 2026, and since the bond is taxable, the interest earned is added to the investor’s income and taxed according to the applicable income tax slabs.

Floating Rate Savings Bond:

Floating Rate Savings Bonds, a safe, government-backed investment in India issued by the Reserve Bank of India (RBI), offering a variable interest rate linked to the National Savings Certificate (NSC) rate plus a spread (currently 0.35%), payable semi-annually over a 7-year term, ideal for risk-averse investors seeking stable income, with options for premature withdrawal for seniors. 

Key Features

• Investment: Minimum ₹1,000, no upper limit, in multiples of ₹1,000.
• Eligibility: Indian residents and HUFs.
• Taxability: Interest earned is taxable.

Reserve Bank of India Projects Scheduled Commercial Banks’ Gross Non-Performing Assets Ratio to Improve to 1.9% by March 2027

• The Reserve Bank of India (RBI) projects that Gross Non-Performing Assets (GNPAs) of Scheduled Commercial Banks (SCBs) will improve to 1.9% by March 2027 under the baseline scenario, from 2.1% in September 2025, indicating continued improvement in asset quality.
• These projections are based on macro stress tests conducted on 46 major banks, aimed at assessing the resilience of the banking system against adverse macroeconomic shocks.

Key Highlights :

• Under Adverse Scenario-1, the GNPA ratio may increase to 3.2%, while under Adverse Scenario-2, it could rise further to 4.2% by March 2027, reflecting potential stress conditions.
• Despite severe stress assumptions, no bank is expected to breach the minimum Capital to Risk-Weighted Assets Ratio (CRAR) requirement of 9%, highlighting strong capital buffers across the banking system.
• The aggregate CRAR of banks is projected to decline marginally from 17.1% (September 2025) to 16.8% (March 2027) under the baseline scenario, and to 14.5% and 14.1% under the two adverse scenarios.
• The Common Equity Tier-1 (CET1) ratio is expected to improve slightly to 14.8% by March 2027 under the baseline, but may fall to 12.7% and 12.3% under adverse scenarios.
• Overall, the RBI stress test results indicate that Indian banks remain resilient, with improving asset quality in normal conditions and adequate capital strength even under severe stress scenarios.
• GNPA is calculated as the ratio of gross non-performing assets—loans with interest or principal overdue for more than 90 days—to a bank’s total lending portfolio, and serves as a key indicator of asset quality.

Credit Guarantee Scheme for Exporters Operational on Jan Samarth Portal from December 1, 2025

• Exports are a critical pillar of India’s economy, contributing nearly 21% of GDP, generating robust foreign exchange inflows, supporting the current account balance, and ensuring macroeconomic stability.

Key Highlights :

• Export-oriented industries employ over 45 million people, both directly and indirectly, while MSMEs contribute about 45% of India’s total exports, underlining their importance in sustained export growth.
• To support exporters amid global uncertainties and external headwinds, the Department of Financial Services (DFS) operationalised the Credit Guarantee Scheme for Exporters (CGSE) from December 1, 2025, with the Government providing a 100% guarantee for additional loan facilities under the scheme.
• The CGSE provides a credit guarantee to exporters and MSMEs, enabling banks and financial institutions (Member Lending Institutions – MLIs) to extend additional collateral-free credit, thereby improving liquidity and ensuring business continuity.
• The scheme envisages collateral-free credit support of up to ₹20,000 crore to direct and indirect exporter MSMEs through eligible MLIs.
• As of December 31, 2025, 1,788 applications amounting to ₹8,599 crore were received, of which 716 applications worth ₹3,141 crore were sanctioned, reflecting strong confidence among exporters and MSMEs.
• Eligible exporters can avail working capital loans up to 20% of their existing export credit or working capital limits, helping them upgrade capabilities, enhance global competitiveness, and diversify into new and emerging markets.
• By improving liquidity access, the scheme aims to ensure continuity of operations, sustain employment, and strengthen India’s export ecosystem.
• The CGSE is open until March 31, 2026, or until guarantees worth ₹20,000 crore are issued, and is implemented by DFS through the National Credit Guarantee Trustee Company Limited (NCGTC).

Reserve Bank of India Imposes Nearly ₹27 Crore in Penalties on Banks in 40 Cases During 2025

• The Reserve Bank of India (RBI) imposed nearly ₹27 crore in monetary penalties across 40 instances on banks during calendar year 2025 (CY25) for various regulatory violations.

Key Highlights :

• Private Sector Banks (PVBs) accounted for the highest penalty burden, paying ₹16.28 crore, which is almost double the amount paid by Public Sector Banks (PSBs).
• Jammu & Kashmir Bank faced the single largest penalty among private banks, amounting to ₹3.31 crore in March 2025 for multiple violations, making it the most penalised bank by value in CY25.
• Public Sector Banks paid total penalties of ₹8.78 crore, with the State Bank of India (₹1.72 crore) being the most penalised PSB, followed by Canara Bank and Indian Bank.
• Small Finance Banks (SFBs) were fined over ₹2.5 crore, led by Jana Small Finance Bank (₹1 crore), mainly for capital structure and shareholding norm violations.
• Foreign banks paid around ₹1.95 crore in penalties, with HSBC (₹66.6 lakh) and Deutsche Bank (₹50 lakh) among the top fined, primarily for KYC, FEMA, and regulatory reporting lapses.
• The most common violations across banks included priority sector lending breaches, improper collateral practices in MSME and agriculture loans, KYC and cyber-security lapses, unauthorised digital transactions, failure to transfer unclaimed deposits to the Depositor Education and Awareness Fund (DEAF), and governance weaknesses.

Reserve Bank of India Report Flags Divergent Bank Strategies for Resolving Stressed Loans in FY25

• The Reserve Bank of India (RBI), in its Report on Trend and Progress in Banking, highlighted significant differences in resolution strategies adopted by banks for stressed loans in FY25.
• Private Sector Banks (PVBs) relied heavily on market-based exits, selling 35.9% of their previous year’s Gross Non-Performing Assets (GNPA) to Asset Reconstruction Companies (ARCs), which is nearly 14 times higher than the 2.6–3% sold by Public Sector Banks (PSBs).
• Foreign banks emerged as the most aggressive sellers, transferring 55.5% of their prior-year GNPA to ARCs, indicating a strong preference for balance-sheet clean-up through market mechanisms.
• At the system level, sales of NPAs to ARCs increased sharply to 12.4% of the previous year’s GNPA in FY25, up from 5.8% in FY24, reflecting a growing shift towards market-based resolution of stressed assets.

Ministry of Finance  Issues Rules Allowing 100% foreign direct investment in Insurance Sector

• The Ministry of Finance has notified the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025, aligning regulations with the 100% foreign direct investment (FDI) limit approved by Parliament in December 2025.
• This follows the passage of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, which allows 100% FDI in insurance companies, replacing the earlier 74% cap under the Insurance Act, 1938, LIC Act, 1956, and IRDAI Act, 1999.

Key Highlights :

• Under the new rules, an insurance company with foreign investment must have at least one key leadership position (CEO, MD, or Chairperson) held by a resident Indian citizen.
• The requirement that a majority of directors and key managerial personnel be Indian residents has been removed, simplifying corporate governance norms for foreign-invested insurance companies.
• The notification omits Rule 4A, which earlier required 50% of net profits to be retained in the general reserve if foreign investment exceeded 49% and solvency margins were low, and also prescribed independent director requirements.
• References to FEMA (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 have been replaced with FEMA (Non-Debt Instrument) Rules, 2019, and provisions related to the 74% FDI cap have been updated to reflect the new statutory limit under the Insurance Act, 1938.
• The notification removes three key clauses applicable to insurance companies with foreign investors, including prior IRDAI approval for dividend repatriation, restrictions on payments to foreign group or promoter entities, and specific board/key management composition rules.
• The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 has amended the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the Insurance Regulatory and Development Authority Act, 1999, enabling full foreign ownership and simplified governance for insurance companies in India.
• The new rules came into force on December 30, 2025, the date of publication in the official gazette, facilitating implementation of the new insurance law.

Reserve Bank of India Warns 2–4 Banks May Tap Capital Conservation Buffers Under Stress Scenarios

• The Reserve Bank of India (RBI) warned that under a moderate stress scenario, two Scheduled Commercial Banks (SCBs) may need to utilise their Capital Conservation Buffers (CCBs) unless fresh capital is infused, and under a severe stress scenario, this number could rise to four banks.
• Capital Conservation Buffers (CCBs), set at 2.5% of risk-weighted assets in India and made up of Common Equity Tier-1 (CET1) capital, act as an extra cushion to absorb losses during stress without affecting credit flow.
• The RBI stress test revealed that no bank would fall below the minimum Capital to Risk-Weighted Assets Ratio (CRAR) requirement of 9%, even under adverse scenarios, indicating adequate capital resilience.
• The aggregate CRAR of 46 major SCBs may decline from 17.1% in September 2025 to 16.8% by March 2027 under the baseline scenario. [Image showing CRAR projections for Baseline vs Adverse scenarios]
• Under hypothetical adverse scenarios 1 and 2, the aggregate CRAR may fall further to 14.5% and 14.1%, respectively, highlighting the impact of severe macroeconomic shocks on bank capital.
• Macro stress tests are conducted to assess the resilience of banks against adverse macroeconomic shocks, projecting capital ratios of banks over a one-and-a-half-year horizon under three scenarios: a baseline and two adverse scenarios.

Reserve Bank of India Reports Household Debt Rises to 41.3% of GDP by March 2025

• The Reserve Bank of India (RBI) reported that household debt rose to 41.3% of GDP by March 2025, above the five-year average of 38.3%, indicating a sustained rise in borrowing.
• Despite the increase, India’s household debt remains lower than most peer emerging economies, suggesting manageable overall risk.
• Borrowing by households is primarily for consumption, followed by asset creation and productive purposes, with personal loans constituting 22.3% of consumption-purpose loans.
• Housing loans account for 28.6% of household borrowings, while agriculture and business loans together contribute 16.1%, reflecting the diversified nature of household debt.

Reserve Bank of India Warns 9 Non-Banking Finance Companies May Fall Below Minimum Capital If Top 3 Borrowers Default

• The Reserve Bank of India (RBI) stated that if the top three individual borrowers of NBFCs default, the system-level Capital to Risk-Weighted Assets Ratio (CRAR) would fall by 223 basis points (bps), and 9 Non-Banking Finance Companies (NBFCs) would see their CRAR drop below the regulatory minimum of 15%.
• In a more severe scenario, where the top three group borrowers default, the CRAR decline would be 243 bps, with 8 additional NBFCs falling below the 15% capital requirement, highlighting concentration risk in NBFC lending.
• RBI liquidity stress tests indicated that NBFCs with negative cumulative liquidity mismatch exceeding 20% over the next year could be 3 under baseline, 4 under medium stress, and 7 under severe stress scenarios, showing potential vulnerability under stressed liquidity conditions.
• On the liquidity front, upper-layer NBFCs improved their short-term liability ratios, and despite higher commercial paper issuances, borrowing growth exceeded credit growth, while asset quality remained stable at March 2025 levels, indicating resilient balance sheets.

Reserve Bank of India Launches “RBI Talks: Paisa to Policy” Podcast to Boost Financial Awareness

• The Reserve Bank of India (RBI) has launched an official podcast series titled “RBI Talks: Paisa to Policy” to enhance public communication and financial awareness.
• The initiative was announced in the Monetary Policy Statement dated December 6, 2024, as part of RBI’s plan to expand its citizen outreach tools.
• The podcast aims to simplify complex financial and banking topics for the general public, promoting financial literacy, awareness, and inclusion.
• The series is designed to make RBI policies and regulations more accessible, understandable, and citizen-friendly, bridging the gap between policy and people.
• The first episode, titled “Demystifying KYC”, explains the concept and importance of Know Your Customer (KYC) in simple and practical terms.
• Through this initiative, RBI leverages modern digital platforms like podcasts to enhance public understanding of financial regulations and policies.

CURRENT AFFAIRS: NATIONAL AND STATE NEWS

National Highways Authority of India Withdraws Know Your Vehicle (KYV) Requirement for Car FASTags

• The National Highways Authority of India (NHAI) has announced the withdrawal of the Know Your Vehicle (KYV) requirement for Car/Jeep/Van FASTag category.
• The revised rule will be applicable to all new FASTag issuances from 1st February 2026.
• The decision aims to improve commuter convenience and eliminate post-activation hassles faced by private vehicle owners.
• Earlier, vehicle owners had to undergo KYV verification even after submitting valid documents at the time of FASTag purchase, leading to delays and repeated follow-ups.
• For already issued FASTags, KYV will no longer be enforced as a standard requirement.
• KYV checks will now be triggered only in exceptional cases, such as
• Incorrectly issued FASTags
• Loose or tampered FASTags
• Suspected misuse or complaints
• In the absence of complaints, existing car FASTags will not undergo KYV verification.
• To maintain system integrity, pre-activation verification norms have been strengthened.
• Issuer Banks must complete all vehicle validation checks before FASTag activation.
• FASTag activation will be allowed only after mandatory vehicle verification through the VAHAN database.
• The earlier practice of post-activation vehicle validation has been completely discontinued.
• If vehicle details are not available on VAHAN, Issuer Banks must conduct RC-based verification prior to activation, with full responsibility for accuracy.
• FASTags sold through online platforms will also be activated only after prescribed verification is completed by banks.

RECENT NEWS

• National Highways Authority of India (NHAI) has received approval from the Securities and Exchange Board of India (SEBI) for its sponsored Raajmarg Infra Investment Trust (RIIT) as a Public Infrastructure Investment Trust (InvIT). The approval was announced on December 24, 2025 and marks an important milestone in India’s asset monetization strategy.

Government Extends Import Restrictions on Low-Ash Metallurgical Coke

• The Government of India has extended the import restrictions on low-ash metallurgical coke for another six months, from 1st January 2026 to 30th June 2026.
• The decision was notified by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry.
• Low-ash metallurgical coke, defined as coke having ash content below 18%, including coke fines, coke breeze, and ultra-low phosphorus metallurgical coke, will remain restricted during this period.
• Import of low-ash metallurgical coke will be permitted only in accordance with conditions specified by the government, mainly through allocation-based or regulated mechanisms.
• Metallurgical coke with ash content above 18% is excluded from the restriction and will continue to be freely importable.
• Earlier, the government had imposed similar restrictions for a six-month period ending on 31st December 2025, which has now been extended.
• Low-ash metallurgical coke is a critical raw material for steelmaking, particularly in blast furnaces, and is also used in other industrial applications.

Gujarat to Host Indian AI Research Organization at GIFT City from 2026

• India is set to strengthen its artificial intelligence research ecosystem with the establishment of the Indian AI Research Organization (IAIRO) at Gujarat International Finance Tec-City (GIFT City), Gandhinagar.
• The Gujarat government, led by Chief Minister Bhupendra Patel, has given in-principle approval for this initiative, which will become operational from 1 January 2026.
• IAIRO will be India’s first state-led artificial intelligence research body and will function under a Public–Private Partnership (PPP) model, marking a significant step in collaboration between government, industry, and academia.
• The organization will be set up through a tripartite partnership involving the Government of Gujarat, the Government of India, and the Indian Pharmaceutical Alliance (IPA).
• It will be registered as a non-profit entity, incorporated under Section 8 of the Companies Act, 2013, and will operate as a Special Purpose Vehicle (SPV).
• The total financial outlay for the first five years is ₹300 crore, with an equal contribution of 33.33 percent each from the Centre, the State, and the private partner.
• The Indian Pharmaceutical Alliance will contribute ₹25 crore during 2025–26.
• Members of the alliance include Cipla, Torrent Pharmaceuticals, and Sun Pharmaceutical Industries.
• The core objectives of the Indian AI Research Organization include advanced artificial intelligence research and development, creation of artificial intelligence based products and solutions, strengthening industry–academia–government collaboration, promotion of intellectual property generation, support for policy-oriented artificial intelligence research, and capacity building and talent development in artificial intelligence.
• IAIRO will operate on a hybrid computing model, combining on-premise GPU based high-performance computing with integration into national digital platforms such as the IndiaAI Cloud.
• This model will provide scalable computing resources for cutting-edge research while optimizing cost and accessibility.
• The initiative aligns with the India AI Mission of the Ministry of Electronics and Information Technology and the Gujarat Artificial Intelligence Action Plan under the state’s Science and Technology Department.
• Gujarat has also constituted an Artificial Intelligence Task Force under the guidance of the Chief Minister to strengthen artificial intelligence governance.
• GIFT City was chosen as the location due to its status as India’s first operational smart financial and technology hub, offering world-class digital and physical infrastructure, proximity to fintech, pharmaceutical, and startup ecosystems, and enhanced international visibility and regulatory ease.
• The establishment of IAIRO is expected to play a key role in positioning India as a global hub for artificial intelligence research and innovation, while supporting long-term goals of technology-driven growth and digital governance.

RECENT NEWS

• In a landmark development for wildlife conservation Gujarat has been officially reinstated as a tiger bearing state after a gap of 33 years. The decision was taken by the National Tiger Conservation Authority (NTCA), which has confirmed Gujarat’s inclusion in the All India Tiger Estimation (AITE) 2026 following sustained evidence of tiger presence in the Ratanmahal Sanctuary.

About Gujarat:

• Chief Minister: Bhupendra Patel
• Governor: Acharya Devvrat
• Capital: Gandhinagar
• National Parks: Gir National Park, Blackbuck National Park, Vansda National Park, Marine National Park
• Wildlife Sanctuaries: Nal Sarovar Bird Sanctuary, Velavadar Blackbuck Sanctuary, Kutch Desert Wildlife Sanctuary, Barda Wildlife Sanctuary, Purna Wildlife Sanctuary

NITI Aayog Praises Gujarat Biotechnology University as Benchmark for Globalisation of Higher Education

• A recent NITI Aayog report on the globalisation of higher education praised Gujarat Biotechnology University (GBU) at Gujarat International Finance Tec-City (GIFT City) as a benchmark initiative aligned with national education reforms and India’s goal of becoming a global education hub.
• The report noted that Gujarat took a forward-looking step in 2020 by establishing GBU at Gandhinagar, positioning the state ahead of others in attracting global academic collaboration and reducing the outflow of Indian students abroad.
• According to NITI Aayog, the initiative reflects India’s national vision of internationalising higher education, developing GIFT City as a destination for foreign universities, and retaining domestic intellectual capital.
• The report highlighted a major imbalance in student mobility, where for every one foreign student studying in India, nearly 28 Indian students study abroad, leading to brain drain, an estimated outflow of nearly 2 percent of India’s Gross Domestic Product, and loss of skilled human capital.
• Established in 2020, Gujarat Biotechnology University is described as the world’s first dedicated biotechnology university, strategically located at GIFT City, with a strong focus on advanced research, innovation, and international collaboration.
• GBU was set up in partnership with the University of Edinburgh, a globally renowned institution with a 440-year academic legacy, ensuring international curriculum standards, faculty exchange, and global exposure for Indian students.
• Senior faculty from the University of Edinburgh spend over 90 days annually at GBU, while visiting professors teach advanced subjects such as synthetic biology, vaccine design, protein engineering, and microbial eco-physiology.
• The university spans around 23 acres at GIFT City and houses advanced research infrastructure worth over ₹80 crore, with an international campus under development costing about ₹200 crore.
• The NITI Aayog report highlighted strong research performance, including 70 plus extramural research grants worth over ₹40 crore, employment for more than 50 researchers, and support for over 40 Doctor of Philosophy scholars through central and state fellowships.
• Notably, 20 Doctor of Philosophy scholars receive a monthly fellowship of ₹20,000 from the Gujarat government, and 37 student teams secured more than ₹2 crore in startup funding under the Student Startup and Innovation Policy.
• Overall, the report concluded that Gujarat Biotechnology University demonstrates how global academic legacy, world-class Indian infrastructure, and policy-driven governance can together deliver international-quality higher education within India.

Assam Constitutes India’s First 8th State Pay Commission

• Assam became the first state in India to constitute its 8th State Pay Commission, marking a proactive step in government pay reforms.
• The decision was announced by Chief Minister Himanta Biswa Sarma, ahead of the expiry of the 7th State Pay Commission on January 1, 2026.
• A Pay Commission is constituted to review and recommend revisions in salaries, allowances, service benefits, and pensions of government employees and pensioners.
• The 8th State Pay Commission will replace the existing 7th Pay Commission framework and recommend revised pay structures based on inflation, current economic conditions, and the fiscal capacity of the state.
• Former Assam Chief Secretary Subhas Das has been appointed as the Chairman of the 8th State Pay Commission.
• With this move, Assam has moved ahead of other states and even the Union Government, as the 8th Central Pay Commission has not yet formally begun its work.
• The early constitution of the commission is significant as it provides early clarity to state government employees and pensioners regarding future pay revisions.
• It may enable faster submission of recommendations compared to other states, potentially leading to earlier implementation of revised salaries and pensions.
• Experts note that Pay Commissions generally take around 18 months to finalise and submit their reports.
• Pay Commissions in India are periodically set up, and their recommendations require government approval before implementation.
• Salary and pension revisions are often implemented retrospectively, with arrears paid at a later stage.
• Although January 1, 2026 is the reference date, actual implementation of the recommendations may occur in late 2026 or early 2027.
• Assam’s early initiation of the process could give its state employees an advantage over employees in other states.

About Assam:

• Chief Minister: Himanta Biswa Sarma
• Governor: Lakshman Prasad Acharya
• Capital: Dispur
• National Parks: Kaziranga National Park, Manas National Park, Dibru-Saikhowa National Park
• Wildlife Sanctuaries: Pobitora Wildlife Sanctuary, Orang National Park, Bura-Chapori Wildlife Sanctuary, Nameri Wildlife Sanctuary

CURRENT AFFAIRS : INTERNATIONAL NEWS

European Union Implements Carbon Border Adjustment Mechanism on Carbon-Intensive Imports from January 2026

• The European Union (EU) has implemented the Carbon Border Adjustment Mechanism (CBAM) from January 1,2026 imposing a carbon-linked levy on carbon-intensive imports such as steel, aluminium, cement, fertilisers, chemicals, glass, and power-related products.

What is CBAM?

• Carbon Border Adjustment Mechanism (CBAM) is a carbon tax–like system imposed by the European Union (EU) on imported goods to account for the carbon emissions generated during their production.
• A key objective of CBAM is to prevent carbon leakage, ensuring that companies do not shift production to countries with weaker environmental regulations to avoid climate costs.
• CBAM aims to ensure fair competition by creating a level playing field for EU industries that already operate under the EU Emissions Trading System (ETS).

Key Highlights :

• India’s exports to the EU are largely concentrated in steel, iron, and aluminium, making Indian exporters—especially MSMEs—highly vulnerable to higher compliance costs under CBAM.
• From January 1, 2026, Indian steel and aluminium exports to the EU will face direct carbon costs; according to the Global Trade Research Initiative (GTRI), exporters may need to cut prices by 15–22% to remain price competitive.
• To meet CBAM requirements, Indian steel producers are being pushed to shift from high-emission Blast Furnace–Basic Oxygen Furnace (BF–BOF) routes to cleaner Electric Arc Furnace (EAF) technology, but limited scrap availability and EU–US dominance in scrap-based steel place India at a competitive disadvantage.
• The United Nations Conference on Trade and Development (UNCTAD) has warned that CBAM could harm export-led growth, restrict market access for developing countries, and worsen global trade inequalities, while reducing global emissions by only about 0.1%.
• India has officially opposed CBAM, with Finance Minister Nirmala Sitharaman calling it unilateral and arbitrary, arguing that such measures undermine energy transition efforts, and India has formally raised its concerns with the EU.

India and Bangladesh Start Joint Water Measurement as Ganges Water Sharing Treaty Nears Expiry

• India and Bangladesh have initiated joint water measurement on the Padma and Ganga rivers as the 30-year Ganges Water Sharing Treaty enters its final year.
• The water measurement exercise is being conducted 3,500 feet upstream of the Hardinge Bridge on the Padma River in Bangladesh and at the Farakka point on the Ganga River in India.
• The initiative aims to generate accurate, jointly verified river-flow data, which is critical for effective treaty implementation and for future negotiations between the two countries.
• The Ganges Water Sharing Treaty, signed in 1996, governs the sharing of dry-season flows of the Ganga/Padma rivers and is scheduled to expire in December 2026, with renewal discussions already underway between India and Bangladesh.

About Bangladesh:

• Capital: Dhaka.
• Currency: Bangladeshi Taka (BDT).
• President: Mohammad Shahabuddin

CURRENT AFFAIRS : APPOINTMENTS & RESIGNATIONS

Air Marshal Nagesh Kapoor Assumes Charge as Vice Chief of the Air Staff, Indian Air Force

• Air Marshal Nagesh Kapoor assumed charge as the Vice Chief of the Air Staff (VCAS) of the Indian Air Force (IAF) on January 1, 2026, succeeding Air Marshal Narmdeshwar Tiwari, who superannuated after 40 years of distinguished service.

About Air Marshal Nagesh Kapoor :

• An alumnus of the National Defence Academy (NDA), he graduated in December 1985 and was commissioned into the fighter stream of the Flying Branch on December 6, 1986, completing over 39 years of illustrious service.
• Air Marshal Kapoor is an experienced fighter pilot, a Qualified Flying Instructor, and a Fighter Combat Leader, having flown all variants of MiG-21 and MiG-29 aircraft with over 3,400 flying hours on combat and trainer aircraft.
• He is also an alumnus of the Defence Services Staff College (DSSC) and the National Defence College (NDC), and has held a wide range of command, operational, instructional and staff appointments.
• His key staff appointments include Assistant Chief of Air Staff (Operations–Strategy) at Air Headquarters, Air Defence Commander at South Western Air Command, Senior Air Staff Officer at Headquarters Central Air Command, and Air Officer-in-Charge Personnel at Air Headquarters.
• He has also served in a diplomatic role as Defence Attaché to Pakistan, reflecting his experience in strategic and international military engagement.
• Prior to becoming Vice Chief of the Air Staff, he served as Air Officer Commanding-in-Chief (AOC-in-C) Training Command, followed by AOC-in-C South Western Air Command.
• In recognition of his exemplary and distinguished service to the nation, Air Marshal Kapoor has been awarded the Vayu Sena Medal (2008), Ati Vishisht Seva Medal (2022), and the Presidential awards of Param Vishisht Seva Medal and Sarvottam Yudh Seva Medal (2025).

Zohran Mamdani Takes Oath as New York City Mayor at Historic City Hall Subway Station

• Zohran Mamdani was sworn in as Mayor of New York City just after midnight at the historic City Hall subway station in Manhattan, marking a symbolic start to his tenure.
• The City Hall subway station, opened in 1904 and closed in 1945, is a heritage landmark; its selection symbolized the “inauguration of a new era” and New York City’s commitment to working people.
• Mamdani made history as the first Muslim Mayor of New York City, the first mayor of South Asian origin, the first Africa-born mayor, and at 34 years, the youngest mayor in generations.
• He took the oath of office on the Quran, with the ceremony administered by New York Attorney General Letitia James, followed by a public swearing-in conducted by Bernie Sanders.
• Born in Kampala, Uganda, Mamdani is the son of filmmaker Mira Nair, grew up in New York, became a US citizen in 2018, served as a New York State Assembly member since 2020, and has now assumed one of the most demanding roles in American politics.

Hardeep Singh Ahluwalia Given Additional Charge as Canara Bank Managing Director & Chief Executive Officer from January 1, 2026

• Canara Bank has assigned additional charge of Managing Director & Chief Executive Officer (MD & CEO) to Hardeep Singh Ahluwalia, with effect from January 1, 2026.
• The decision follows the superannuation of former MD & CEO K. Satyanarayana Raju on December 31, 2025.
• The arrangement is temporary in nature, valid for three months (until March 31, 2026) or until a regular MD & CEO is appointed, whichever is earlier, as per the Department of Financial Services (DFS), Ministry of Finance notification dated December 30, 2025.
• Separately, the Financial Services Institutions Bureau (FSIB) has recommended Brajesh Kumar Singh as the next regular MD & CEO of Canara Bank, following interviews of 17 candidates.
• Brajesh Kumar Singh is currently serving as the Executive Director of Indian Bank.

CURRENT AFFAIRS: MOUS AND AGREEMENT

Delhi Government Partners with Indian Institute of Technology Kanpur to Develop Artificial Intelligence Based Grievance Redressal System

• The Delhi Government, in collaboration with the Indian Institute of Technology Kanpur, will implement an Intelligent Grievance Monitoring System, aimed at improving speed, transparency, and accountability in public service delivery through artificial intelligence and data analytics.
• The announcement was made by Pankaj Kumar Singh, Minister of Information Technology, Delhi, marking a major step towards technology-driven governance.
• The new system will integrate multiple grievance portals into a single unified dashboard, enabling holistic monitoring and effective resolution of citizen complaints.
• At present, citizens register grievances on multiple independent platforms, which has led to delays in resolution, duplication of complaints, poor inter-departmental coordination, and lack of overall oversight.
• The new system seeks to address these challenges by centralising grievance data.
• The Intelligent Grievance Monitoring System is an artificial intelligence and machine learning based platform designed to consolidate, analyse, and monitor public grievances across departments, with the objective of improving resolution timelines and strengthening public trust in governance.
• All grievances from platforms such as the Public Grievance Management System, Lieutenant Governor Listening Post, Centralised Public Grievance Redress and Monitoring System, and other departmental portals will be visible on one integrated dashboard.
• The Indian Institute of Technology Kanpur will be responsible for system integration through secure Application Programming Interfaces, cybersecurity audits, vulnerability assessment and penetration testing, and long-term technical maintenance, ensuring platform security and reliability.
• The initiative is expected to reduce delays, improve coordination among departments, enhance efficiency in grievance redressal, and promote accountable governance in Delhi.

National Test House and National Highways Authority of India Sign Memorandum of Understanding to Improve Quality of Highway Construction

• National Test House signed a Memorandum of Understanding with the National Highways Authority of India to strengthen quality control, transparency, and safety in national highway construction projects, supporting India’s vision of world-class infrastructure.
• The MoU was signed on 30 December 2025 at National Highways Authority of India Headquarters, New Delhi, in the presence of Bharat Khera, Additional Secretary, Department of Consumer Affairs, Santosh Kumar Yadav, Chairman of National Highways Authority of India, and Alok Kumar Srivastava, Director General of National Test House.
• Under the agreement, National Test House will be empanelled as a recognised laboratory for National Highways Authority of India, enabling it to carry out testing and inspection of samples related to highway construction and allied works.
• Testing will be conducted through National Test House regional laboratories and satellite centres located at Ghaziabad, Kolkata, Mumbai, Chennai, Jaipur, Guwahati, Bengaluru, and Varanasi.
• National Test House will provide scientific, impartial, and time-bound test results through its online Management Information System portal as well as physical reports, with provisions for online test requests and digital payments to improve efficiency and reduce delays.
• The collaboration includes institutional coordination through nodal officers from both organisations to ensure smooth implementation of the agreement.
• Experts from National Test House will participate in National Highways Authority of India technical committees, contributing scientific inputs to improve decision-making in highway projects.
• Both organisations will jointly conduct training programmes, workshops, and capacity-building initiatives for officials of National Highways Authority of India, and National Test House will assist in strengthening testing facilities within National Highways Authority of India laboratories where required.
• National Test House, established in 1912, functions under the Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution, and is one of India’s oldest institutions for scientific testing, quality assurance, and calibration, with a pan-India presence across multiple sectors.

CURRENT AFFAIRS: SPORTS NEWS

Deepti Sharma Becomes Highest Wicket-Taker in Women’s Twenty20 International Cricket

• Indian women’s cricket achieved a major milestone as Deepti Sharma became the highest wicket-taker in Women’s Twenty20 International (T20I) cricket.
• Deepti Sharma achieved this landmark during the 5th T20I match against Sri Lanka at Thiruvananthapuram, where she claimed her 152nd T20I wicket, surpassing Australia’s Megan Schutt (151 wickets).
• With this achievement, Deepti Sharma now stands alone at the top of the all-time wicket-takers list in Women’s T20 Internationals, highlighting her consistency and longevity at the international level.
• She has been a regular member of India’s Women’s T20 team for nearly a decade, known for her economical bowling and ability to take crucial wickets in pressure situations.
• Deepti Sharma currently holds the Number One position in the International Cricket Council Women’s T20I Bowling Rankings, reinforcing her dominance in the shortest format of the game.
• Deepti Sharma made her One Day International debut in 2014 against South Africa at the age of 17, making an immediate impact with both bat and ball.
• She played a pivotal role in India’s title-winning campaign at the 2025 International Cricket Council Women’s Cricket World Cup, delivering consistent all-round performances.
• Deepti Sharma was awarded Player of the Tournament in the 2025 World Cup, including a match-winning five-wicket haul in the final, underlining her match-winner status on the global stage.

Daily CA One- Liner: January 3^rd

• The National Highways Authority of India (NHAI) has announced the withdrawal of the Know Your Vehicle (KYV) requirement for Car/Jeep/Van FASTag category
• The Government of India has extended the import restrictions on low-ash metallurgical coke for another six months, from 1st January 2026 to 30th June 2026
• India is set to strengthen its artificial intelligence research ecosystem with the establishment of the Indian AI Research Organization (IAIRO) at Gujarat International Finance Tec-City (GIFT City), Gandhinagar
• A recent NITI Aayog report on the globalisation of higher education praised Gujarat Biotechnology University (GBU) at Gujarat International Finance Tec-City (GIFT City) as a benchmark initiative aligned with national education reforms and India’s goal of becoming a global education hub
• Assam became the first state in India to constitute its 8th State Pay Commission, marking a proactive step in government pay reforms
• The Delhi Government, in collaboration with the Indian Institute of Technology Kanpur, will implement an Intelligent Grievance Monitoring System, aimed at improving speed, transparency, and accountability in public service delivery through artificial intelligence and data analytics
• National Test House signed a Memorandum of Understanding with the National Highways Authority of India to strengthen quality control, transparency, and safety in national highway construction projects, supporting India’s vision of world-class infrastructure
• Indian women’s cricket achieved a major milestone as Deepti Sharma became the highest wicket-taker in Women’s Twenty20 International (T20I) cricket.
• The Reserve Bank of India (RBI) has eased capital adequacy norms for Non-Banking Finance Companies (NBFCs) lending to high-quality infrastructure projects through the NBFC (Prudential Norms on Capital Adequacy) Amendment Directions, 2026.
• The Floating Rate Savings Bond, 2020 (Taxable) – FRSB 2020(T) interest rate has been announced for the period January 1, 2026, to June 30, 2026.
• The Reserve Bank of India (RBI) projects that Gross Non-Performing Assets (GNPAs) of Scheduled Commercial Banks (SCBs) will improve to 1.9% by March 2027 under the baseline scenario, from 2.1% in September 2025, indicating continued improvement in asset quality.
• Exports are a critical pillar of India’s economy, contributing nearly 21% of GDP, generating robust foreign exchange inflows, supporting the current account balance, and ensuring macroeconomic stability.
• The Reserve Bank of India (RBI) imposed nearly ₹27 crore in monetary penalties across 40 instances on banks during calendar year 2025 (CY25) for various regulatory violations.
• The Reserve Bank of India (RBI), in its Report on Trend and Progress in Banking, highlighted significant differences in resolution strategies adopted by banks for stressed loans in FY25.
• The Ministry of Finance has notified the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025, aligning regulations with the 100% foreign direct investment (FDI) limit approved by Parliament in December 2025.
• The Reserve Bank of India (RBI) warned that under a moderate stress scenario, two Scheduled Commercial Banks (SCBs) may need to utilise their Capital Conservation Buffers (CCBs) unless fresh capital is infused, and under a severe stress scenario, this number could rise to four banks.
• The Reserve Bank of India (RBI) reported that household debt rose to 41.3% of GDP by March 2025, above the five-year average of 38.3%, indicating a sustained rise in borrowing.
• The Reserve Bank of India (RBI) stated that if the top three individual borrowers of NBFCs default, the system-level Capital to Risk-Weighted Assets Ratio (CRAR) would fall by 223 basis points (bps), and 9 Non-Banking Finance Companies (NBFCs) would see their CRAR drop below the regulatory minimum of 15%.
• The Reserve Bank of India (RBI) has launched an official podcast series titled “RBI Talks: Paisa to Policy” to enhance public communication and financial awareness.
• The European Union (EU) has implemented the Carbon Border Adjustment Mechanism (CBAM) from January 1,2026 imposing a carbon-linked levy on carbon-intensive imports such as steel, aluminium, cement, fertilisers, chemicals, glass, and power-related products.
• India and Bangladesh have initiated joint water measurement on the Padma and Ganga rivers as the 30-year Ganges Water Sharing Treaty enters its final year.
• Air Marshal Nagesh Kapoor assumed charge as the Vice Chief of the Air Staff (VCAS) of the Indian Air Force (IAF) on January 1, 2026, succeeding Air Marshal Narmdeshwar Tiwari, who superannuated after 40 years of distinguished service.
• Zohran Mamdani was sworn in as Mayor of New York City just after midnight at the historic City Hall subway station in Manhattan, marking a symbolic start to his tenure.
• Canara Bank has assigned additional charge of Managing Director & Chief Executive Officer (MD & CEO) to Hardeep Singh Ahluwalia, with effect from January 1, 2026.