Current Affairs - Finance

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Exercise : Finance - Latest Current Affairs
  • Finance - Latest Current Affairs
1.
What is the award period covered by the Sixteenth Finance Commission’s report?
2026–29
2025–30
2027–32
2026–31
Answer: Option
Explanation:
The Sixteenth Finance Commission’s report covers the five-year award period from 2026 to 2031, guiding India’s fiscal framework for this duration. During this period, the Commission’s recommendations shape how tax revenue is shared between the Union and the States, how grants-in-aid are allocated, and how disaster risk financing mechanisms are structured. It plays a central role in strengthening fiscal federalism by defining criteria for vertical and horizontal devolution, local body financing, and performance-based grants. The report, prepared after extensive consultations and expert inputs, forms the foundation for fiscal planning and resource distribution for the entire award cycle.

2.
What is the primary focus of the Investor Education and Protection Fund Authority’s (IEPFA) financial awareness drive held in Karnal, Haryana?
Promotes Digital Payments
Encourages Start-up Investments
Supports Rural Banking Reforms
Empowers Rural Women
Answer: Option
Explanation:
The Investor Education and Protection Fund Authority (IEPFA), under the Ministry of Corporate Affairs, organized a financial awareness drive aimed at empowering rural women. Conducted in Karnal, Haryana, under the theme “Viksit Bharat ke path par Saksham Naari,” the initiative focused on enhancing financial literacy, promoting safe investment practices, and fostering digital inclusion among women Self-Help Groups. Partnering with SEBI, AMFI, NCAER, and HSRLM, the program sought to strengthen financial independence and informed decision-making among rural women, contributing to inclusive economic growth and women’s empowerment in India.

3.
What percentage of its stake in SBI Funds Management Ltd (SBIFML) has the State Bank of India (SBI) approved to divest through an IPO?
6.3%
3.7%
10%
3.2%
Answer: Option
Explanation:
State Bank of India (SBI) has approved the divestment of a 6.3% stake, equivalent to 3.2 crore shares, in its subsidiary SBI Funds Management Ltd (SBIFML) via an Initial Public Offering (IPO). Additionally, its co-promoter, Amundi India Holding, will sell 3.7%, making the total IPO size 10% of equity. This move aims to unlock value and prepare SBIFML for its public listing in 2026, marking it as SBI’s third listed subsidiary after SBI Cards and SBI Life Insurance.

4.
Which regulatory body has proposed major reforms to India’s mutual fund fee structure to enhance transparency and investor protection?
RBI
SEBI
IRDAI
PFRDA
Answer: Option
Explanation:
The Securities and Exchange Board of India (SEBI) has proposed an overhaul of the mutual fund fee framework to promote transparency, fairness, and investor protection. The consultation paper suggests that taxes and government levies such as STT, GST, and stamp duty be excluded from the Total Expense Ratio (TER) and charged separately to investors. It also proposes removing the additional 5 basis points expense for Asset Management Companies (AMCs) on Assets Under Management (AUM). These reforms aim to simplify cost structures, improve investor clarity, and ensure better governance in India’s mutual fund industry.

5.
Which country launched the world’s first yen-pegged stablecoin, JPYC, marking a major milestone in digital finance?
Japan
South Korea
China
Singapore
Answer: Option
Explanation:
Japan has introduced the world’s first yen-pegged stablecoin, JPYC, on October 27, 2025, through Tokyo-based startup JPYC Inc. Fully backed by Japanese yen and government bonds, the stablecoin aims to enhance digital payments and global financial interoperability while maintaining a 1:1 value with the yen. This move positions Japan as a pioneer in digital currency innovation, breaking the dominance of U.S. dollar-backed stablecoins. By promoting low-cost, fast, and secure transactions, Japan’s initiative reflects its broader goal of integrating fintech advancements with monetary stability and economic modernization in the Asia-Pacific region.