DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 4th October – 2025
Archives (PRELIMS Focus) Stablecoins Category: Economy Context: Hinting at a possible shift in India’s cryptocurrency policy, Union Finance Minister said countries would have to “prepare to engage” with stablecoins whether they welcome the change or not. About Stablecoins: Nature: Stablecoins are a type of cryptocurrency that attempt to maintain stable prices as they are pegged to an underlying asset, such as a basket of currencies or precious metals like gold. Terminology: Although the term “stablecoin” is commonly used, there is no guarantee that the asset will maintain a stable value in relation to the value of the reference asset when traded on secondary markets or that the reserve of assets, if there is one, will be adequate to satisfy all redemptions. Difference with cryptocurrencies: Stablecoins are designed for everyday use, offering price stability unlike volatile cryptocurrencies like Bitcoin. They enable easy value transfer, support financial services, and maintain stability through collateral reserves or algorithmic supply control. Popular stablecoins like Tether and USD Coin are backed by the US dollar. Types of Stablecoins: There are primarily three types of stablecoins: fiat-collateralized, crypto-collateralized, and non-collateralized (algorithmic). Fiat-collateralized stablecoins are pegged to a specific asset, such as a fiat currency. The entity behind the stablecoin maintains a reserve of the asset or assets backing the stablecoin, supporting the value of the digital currency. On the other hand, non-collateralized (algorithmic) stablecoins use software algorithms to automatically adjust the supply of the stablecoin based on demand, aiming to maintain a stable price. Status of stablecoins in India: India does not currently recognise stablecoins, treating all cryptocurrencies as Virtual Digital Assets (VDAs) under Section 2(47A) of the Income Tax Act, 1961. In 2023, VDAs were brought under the Prevention of Money Laundering Act, 2002, to curb misuse and enhance oversight. Central Bank Digital Currency (CBDC) or ‘Digital Rupee’ is India’s official alternative to stablecoins, which allows programmable payments (e.g., Direct Benefit Transfer (DBT) schemes), tracking usage by expiry, location, or purpose. Source: The Hindu Banni Festival Category: History & Culture Context: Two people were killed and more than a hundred were injured at the annual Banni festival at Devaragattu in Kurnool district of Andhra Pradesh. About Banni Festival: Nature: It is a tradition in Andhra Pradesh where villagers fight with sticks to claim a deity’s idol on Vijayadashami. The objective of this event is to snatch the idols from the God’s team, leading to a fierce battle known as the Banni Fight. Occasion: It is celebrated on the night of Dussehra celebration (Vijaya Dasami) every year. Location: It is held on the premises of Mala Malleswara Swamy Temple (situated at the border of Andhra Pradesh and Karnataka). Linkage with Vijayanagara Empire: This festival was celebrated by people under the Vijayanagara Empire. Significance: It is celebrated on the account of the victory of Lord Mala Malleswara Swamy and Goddess Parvati over demonish Mani and Mallasura, who troubled the people at Devaragattu region. Rituals: The ritual takes place at midnight when the procession of idols of the ruling deities Malamma (Parvati) and Malleshwara Swamy (Shiva) are brought down the hill temple at Neraneki. Devotees carry long sticks or lathis with them for hitting each other with these sticks on the head. The basic idea of this fight is to capture the procession idol. Source: The Hindu Presumptive Taxation Category: Economy Context: The government think tank Niti Aayog suggested the introduction of a presumptive taxation scheme for foreign companies to provide certainty and simplicity. About Presumptive Taxation: Nature: It is a simplified tax scheme where income is calculated based on a presumed rate of profit rather than actual income. Need: Despite India’s inherent appeal and remarkable FDI growth, structural impediments such as ambiguous PE (permanent establishment), regulations introduce tax uncertainty and dampen investments. Objectives: To provide relief to taxpayers from the tedious work of maintaining regular books of account under certain circumstances. To provide tax certainty and reduce compliance burdens. To align with India’s goal of becoming a global manufacturing hub under initiatives like Make in India. Importance: The optional presumptive taxation scheme would help resolve disputes concerning PE (permanent establishment), simplifying compliance and protecting revenue. By adopting a presumptive taxation scheme, India can transform its tax regime from a ‘minefield’ into a ‘well-lit path.’ Impact on businesses: A company opting for this scheme can declare income at a prescribed rate; in lieu of that, it is relieved from maintaining books of accounts for audit by tax authorities. Source: The Hindu NATO Category: International Relations Context: A quarter of a century after it joined NATO, Poland will finally join the alliance‘s fuel pipeline network, amid rising tension on its eastern frontier. About NATO: Nature: The North Atlantic Treaty Organization (NATO) is an intergovernmental military alliance. Formation: It was established on April 4, 1949, with the signing of the North Atlantic Treaty in Washington, D.C. by 12 founding member countries from Europe and North America. Objective: It was established with the primary goal of providing collective defence against potential aggression, particularly from the Soviet Union during the Cold War era. Over the years, NATO has evolved to address a range of security challenges beyond its original mandate. Uniqueness: NATO’s primary mission is collective defence, as outlined in Article 5 of the North Atlantic Treaty. This article stipulates that an attack on one member country will be considered an attack on all, and the members will respond collectively. Founding members: The original 12 founding members of NATO were Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, the United Kingdom, and the United States. Expansion: NATO has expanded since its founding, with new member countries joining in multiple rounds. The alliance currently consists of 32 member countries. Political Leadership: The North Atlantic Council (NAC) serves as NATO’s principal political decision-making body, composed of ambassadors from all member countries. Funding: In 2006, NATO Defense Ministers agreed to a commitment that 2% of their countries’ GDP would be allocated towards defence spending. However, the majority of NATO members do not meet this
DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 4th October – 2025 Read More »

