Daily Current Affairs MCQ: 30th May 2025 - UPSC MCQ

Statement 1 is correct. According to the RBI's Annual Report for FY25, while the number of bank fraud cases decreased, the monetary value involved in these frauds surged. Public sector banks indeed faced larger fraud amounts compared to private sector banks, with public sector banks reporting the bulk of the monetary value at Rs. 25,667 crore.

Statement 2 is correct. The data indicates that the majority of fraud cases were related to digital payments. However, although these cases were numerous, they involved a relatively small total amount of Rs. 520 crore, showing a high frequency but low monetary impact compared to other types of fraud.

Statement 3 is incorrect. While the RBI is implementing several strategic measures to mitigate risks of bank fraud, the implementation of the Central Fraud Registry is actually supported by the Government of India, not the RBI directly. The RBI's measures focus on enhanced supervision of banks, liquidity stress testing, and digital forensic readiness.

Therefore, the correct answer is Option B: 1 and 2 Only.

Statement-I correctly highlights the powers granted to the President under the IEEPA, emphasizing the authority to restrict transactions, freeze assets, and seize property in response to threats or attacks. This aligns with the provisions of the IEEPA.
Statement-II provides essential background information about the IEEPA, including its enactment date and the broad powers it grants to the President during national emergencies, covering threats to U.S. security, foreign policy, or economy originating outside the U.S.
Therefore, both statements are factually accurate, and Statement-II effectively elaborates on the context and scope of the powers granted by the IEEPA, making option (a) the correct answer.

1. Statement 1: This statement is correct. The memorandum of understanding between Pakistan and World Liberty Financial Inc. explicitly aims to enhance financial inclusion through the use of blockchain technology. This initiative is part of Pakistan's broader strategy to leverage digital assets to improve financial access across the country.

2. Statement 2: This statement is also correct. The Trump administration has shown support for cryptocurrencies, aiming to reposition the United States as a leader in the digital asset space. This includes efforts to promote national blockchain strategies and reduce regulatory obstacles to foster innovation in this sector.

3. Statement 3: This statement is correct as well. The Pakistan Crypto Council has plans to utilize cryptocurrencies to unlock value from national assets like rare earth minerals. This strategy is part of their broader economic initiative to harness the potential of digital assets for economic growth and to establish Pakistan as a regional cryptocurrency hub.

All three statements accurately reflect the information provided, making Option D: 1, 2 and 3 the correct choice. Each statement aligns with Pakistan's and the U.S.'s respective strategic goals regarding cryptocurrency usage and financial inclusion.

1. Statement 1: Correct. Animals that are listed under Schedules I and II of the Wildlife Protection Act are given the highest level of protection due to their endangered status. As a result, they cannot be declared vermin, which would allow for their culling or hunting.

2. Statement 2: Correct. The Chief Wildlife Wardens have the authority to permit the trapping, capture, or killing of certain animals (such as wild boars) when there are concerns about public safety or significant property damage. This is a specific provision in the Wildlife Protection Act to address situations where wildlife poses a threat to human life or livelihood.

3. Statement 3: Correct. The Wildlife Protection (Amendment) Act, 2022 indeed reduced the number of schedules from six to four. This restructuring aimed to simplify the categorization of species for protection and management.

Therefore, all three statements are accurate, making Option D the correct answer.

1. NITI Aayog - Evaluates Central Sector Schemes (CS) only

Incorrect. NITI Aayog evaluates Centrally Sponsored Schemes (CSS), not just Central Sector Schemes (CS). The evaluation is part of ensuring schemes' effectiveness and alignment with fiscal prudence and policy objectives. Both CSS and CS are subject to evaluations, but NITI Aayog's role is more highlighted with CSS in the context of the current government directives.

2. Harop Drone - Israeli-origin drone used for autonomous warfare

Correct. The Harop drone is indeed of Israeli origin and is known for its use in autonomous warfare. It is a loitering munition capable of autonomous radar targeting, which was utilized during Operation Sindoor.

3. National Digital Health Mission - A Centrally Sponsored Scheme (CSS)

Incorrect. The National Digital Health Mission is a Central Sector Scheme (CS), not a Centrally Sponsored Scheme. Central Sector Schemes are fully funded and executed by the Union Government, while CSS involves financial participation from both the central and state governments.

4. IEEPA - Allows the President of the U.S. to impose tariffs without investigation

Incorrect. While the International Emergency Economic Powers Act (IEEPA) grants significant powers to the U.S. President during national emergencies, it does not specifically allow for tariff imposition without proper investigation. Tariffs typically require processes under other laws, such as Section 232 of the Trade Expansion Act of 1962, which mandates investigation.

Thus, only pairs 2 and 3 are correctly matched.

1. Digital Payment Frauds - Majority of the total monetary value: Incorrect. Digital payment frauds constituted the majority of cases but involved a relatively small total amount. The monetary value was not the majority.

2. Public Sector Banks - Bulk of the monetary value involved in frauds: Correct. Public sector banks reported the bulk of the monetary value at Rs. 25,667 crore.

3. Advances-related Frauds - Over 90% of the total reported fraud value: Correct. Rs. 33,148 crore (over 92%) of reported fraud was related to advances.

4. Reclassified Old Cases - Minor impact on statistical reporting: Incorrect. 122 old cases involving Rs. 18,674 crore were reclassified after a Supreme Court judgment, significantly affecting statistical reporting.

The pairs that are correctly matched are pair 2 and pair 3.

Statement-I correctly highlights the increase in the amount involved in banking frauds from FY24 to FY25, showing a significant rise. Statement-II accurately states that reported bank fraud cases decreased by over 34% in FY25. Statement-II explains why the total value of frauds increased despite a decrease in the number of reported cases. Thus, both statements are correct, with Statement-II providing context to Statement-I.

1. Pakistan's MoU with WLFI - Aims to establish Pakistan as a regional cryptocurrency hub.
This pair is correctly matched. The partnership between Pakistan's newly established Crypto Council and World Liberty Financial Inc. (WLFI) aims to establish Pakistan as a regional hub for cryptocurrencies by utilizing blockchain technology and introducing stablecoins.

2. Trump Administration's Support - Focused on enhancing trade relations with South America.
This pair is incorrectly matched. The Trump administration's support for cryptocurrencies was aimed at making the U.S. a frontrunner in blockchain innovation and cryptocurrency adoption, not specifically focused on enhancing trade relations with South America.

3. IEEPA Limitations - Tariffs can only address "unusual and extraordinary threats."
This pair is correctly matched. The U.S. Court of International Trade ruled that the International Emergency Economic Powers Act (IEEPA) allows tariffs only to address specific "unusual and extraordinary threats," which aligns with the court's ruling against Trump's tariffs.

4. Early Childhood Education Investment - Provides potential returns of $7 to $12 for every dollar spent.
This pair is correctly matched. Investing in early childhood education is shown to provide high returns on human capital investments, estimated at $7 to $12 for every dollar spent, leading to better educational and life outcomes.

Thus, three pairs are correctly matched.

The primary objective of the partnership between Pakistan's Crypto Council and World Liberty Financial Inc. (WLFI) is to monetize national assets, including rare earth minerals, using cryptocurrencies. This initiative aims to unlock value from untapped resources and capitalize on these deposits for economic growth, thereby enhancing Pakistan's position in the regional crypto market.

The Union Government's mandate for third-party evaluations for CSS and CS schemes beyond March 31, 2026, aims to ensure the continuation of these schemes based on positive outcomes. By requiring favorable evaluations that justify the schemes' mandates and demonstrate performance-based assessments, the government emphasizes the importance of evidence-based policy-making and fiscal responsibility in continuing these programs for the benefit of the public.