# Current Affairs December 2025 for UPSC (Recap): VB-G RAM G Act, SHANTI Act, 100% FDI in Insurance, RBI Cut, India-Oman CEPA and Putin's Visit Source: https://tracknation.in/story/current-affairs-december-2025-for-upsc-recap-vb-g-ram-g-act-shanti-act-100-fdi-in-insurance-rbi-cut-india-oman-cepa-and-putin-s-visit (TrackNation — free UPSC notes with PYQs) > Recap of December 2025 for UPSC Prelims 2027: the VB-G RAM G Act replacing MGNREGA, the SHANTI Act on nuclear energy, 100 per cent FDI in insurance, the Viksit Bharat Shiksha Adhishthan Bill, the RBI's cut to 5.25%, the 23rd India-Russia summit, the India-Oman CEPA and Operation Sagar Bandhu, with practice questions. ## December 2025 at a Glance 🎯 **December 2025 (recap): 1 to 31 December 2025.** The Winter Session of Parliament passed a string of laws that now shape the 2026 notes: the VB-G RAM G Act, the SHANTI Act and 100 per cent FDI in insurance, and it referred a higher-education Bill to a committee. The RBI cut the repo rate to 5.25 per cent, Putin visited Delhi, and India signed a CEPA with Oman. The VB-G RAM G details below are from the PIB's own note; the rest are named secondary sources. ## December 2025 at a glance | **Date** | **Event** | **Subject** | **Exam angle** | | 28 Nov onwards | Operation Sagar Bandhu for Sri Lanka after Cyclone Ditwah | IR, Disaster | First responder; 53 tons in 3 days | | 4-5 Dec | Putin in New Delhi: 23rd India-Russia Annual Summit | IR | 16 agreements, 15 MoUs | | 5 Dec | RBI cuts repo to 5.25% | Economy | GDP 7.3%, CPI 2.0% | | 15 Dec | Viksit Bharat Shiksha Adhishthan Bill introduced; sent to JPC | Polity | Replaces UGC, AICTE, NCTE | | 16-17 Dec | Insurance FDI cap raised to 100% | Economy | 74% to 100% | | 17 Dec | SHANTI Bill passed by Lok Sabha | Energy, Law | AEA 1962 repealed | | 18 Dec | India-Oman CEPA signed at Muscat | IR, Economy | 98.08% of Oman's lines duty-free | | Dec | VB-G RAM G Act passed | Polity, Economy | 125 days; replaces MGNREGA | ## Polity and Economy: the Winter Session Laws The Winter Session produced four significant laws. Each has a static anchor that UPSC can test. ## Polity and economy: the Winter Session laws - **VB-G RAM G Act, 2025 (official).** The Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Act was **passed by Parliament in December 2025 and replaces the Mahatma Gandhi National Rural Employment Guarantee Act, 2005**. It **raises the statutory employment guarantee from 100 to 125 days** per rural household. Works fall in four thematic areas: **water security, core rural infrastructure, livelihood-related infrastructure and works to mitigate extreme weather events**. Wages are to be paid weekly or within fifteen days of closure of the muster roll, with **delay compensation of 0.05 per cent of unpaid wages for every day beyond the sixteenth day**; **administrative expenditure rises from 6 to 9 per cent**. The Government notified **commencement across all rural areas with effect from 1 July 2026**, when MGNREGA stands repealed. For FY 2026-27 the **Central share is Rs 95,692.31 crore** and the total outlay with the State share is expected to **exceed Rs 1.51 lakh crore**. - **SHANTI Act (December).** The **SHANTI Bill (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India)** was tabled on 15 December and **passed by the Lok Sabha on 17 December 2025**, and Parliament cleared it that week. It **repeals the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010**, lets licensed private companies and joint ventures build and operate nuclear facilities, and keeps sensitive activities with the State. **Operator liability in an accident is capped at Rs 3,000 crore**, with the Central Government liable above that (secondary). *Static:* the 2010 Act channelled liability to the operator and gave it a right of recourse against suppliers, which had deterred foreign suppliers. - **Insurance FDI (16-17 December).** Parliament passed the **Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025**, raising the foreign investment cap in insurance companies **from 74 per cent to 100 per cent of paid-up equity**. It amends the **Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the IRDA Act, 1999**; the net owned fund requirement for foreign reinsurers **falls from Rs 5,000 crore to Rs 1,000 crore**; and it provides for a **Policyholders' Education and Protection Fund**. *Static:* the cap was 26 per cent until 2015, 49 per cent from 2015 and 74 per cent from 2021. - **Higher education Bill (15 December).** The **Viksit Bharat Shiksha Adhishthan Bill, 2025 was introduced in the Lok Sabha on 15 December 2025 after Cabinet approval on 12 December**. It would **repeal the UGC Act, 1956, the AICTE Act, 1987 and the NCTE Act, 1993** and create an apex body with three councils for regulation, accreditation and academic standards; medical, law and architecture regulators stay separate. It was referred to a **31-member Joint Parliamentary Committee**, which sought more time by August 2026. ## Economy: the RBI's December Cut The RBI's December cut is the last easing move before the 2026 reversal. ## Economy: the RBI's December cut - At the **58th MPC meeting (3-5 December)** the Committee **unanimously cut the policy repo rate by 25 bps to 5.25 per cent**. The SDF moved to 5.00 per cent and the **MSF rate and Bank Rate to 5.50 per cent**; the stance stayed neutral. The RBI raised its FY2025-26 growth **projection to 7.3 per cent from 6.8 per cent** and cut its inflation **projection to 2.0 per cent from 2.6 per cent**. - *Link:* the repo stayed at 5.25 per cent until the October 2026 hike to 5.50 per cent (see the 2026 notes). *Static:* a rate cut makes borrowing cheaper and supports growth when inflation is below target; the corridor is repo plus or minus 25 bps. ## International Relations: Russia, Oman and Operation Sagar Bandhu December's diplomacy combined a summit with Russia, a trade agreement with Oman and a disaster-relief operation. ## International relations: Russia, Oman and Operation Sagar Bandhu - **India-Russia Summit (4-5 December).** President Putin visited New Delhi for the **23rd India-Russia Annual Summit**. Reports count **16 intergovernmental agreements and 15 MoUs**, including agreements on **temporary labour activity and on combating irregular migration**, health and medical education, maritime cooperation (polar-water training and joint mineral exploration), media MoUs and a fertiliser MoU. Pre-visit reports of S-500 and Su-57 deals were not confirmed (secondary). *Static:* the annual summit alternates between the two capitals; the Special and Privileged Strategic Partnership dates from 2010. - **India-Oman CEPA (18 December).** India and Oman signed a **Comprehensive Economic Partnership Agreement (CEPA) in Muscat on 18 December 2025**. Oman gives zero-duty access on **98.08 per cent of its tariff lines covering 99.38 per cent of India's exports** by value, while **India liberalises 77.79 per cent of its tariff lines**; 100 per cent FDI is allowed for Indian companies in major services sectors in Oman (secondary). *Static:* Oman is at the mouth of the Persian Gulf and across the Strait of Hormuz from Iran; Duqm port is used by the Indian Navy. - **Operation Sagar Bandhu.** India launched **Operation Sagar Bandhu on 28 November 2025** as the first responder after Cyclone Ditwah devastated Sri Lanka; in the first three days it delivered **53 tons of emergency relief**. Navy ships (INS Vikrant, INS Udaygiri, INS Sukanya) and Air Force aircraft carried relief and rescued people; India also sent BHISHM cubes, Bailey bridges and an Army field hospital, and brought back over 2,000 stranded Indians. *Static:* Operation Sagar Bandhu follows the 'Neighbourhood First' and SAGAR/MAHASAGAR doctrines; HADR means humanitarian assistance and disaster relief. ## Further Reading - PIB press releases, ministry websites and annual reports, the Gazette of India, MEA and UN documents and the official sources named in each note — the primary sources behind every fact above. ## How UPSC Could Ask This Next Here is how UPSC could turn December 2025 into questions. ## How UPSC could ask this next - **Laws:** which Acts the new nuclear and employment laws repeal; the FDI limit in insurance and the Acts amended; the Directive Principle behind the right to work. - **Nuclear liability:** the cap on operator liability and who bears the balance; the role of suppliers under the 2010 Act. - **Agreements:** the share of tariff lines each side liberalises in a CEPA, and the difference between a CEPA and an FTA. - **Monetary policy:** the repo after each move in the 2025-26 cycle and the corridor. - **HADR:** the name and trigger for India's relief operations in the neighbourhood. ## Test Yourself: Practice Questions 24 practice questions on December 2025, including UPSC-style statement questions, each tied to a verified fact. ## Practice Questions **Q1.** At its December 2025 meeting the Monetary Policy Committee - (a) cut the repo rate by 50 bps - (b) kept the repo rate at 5.50 per cent - (c) raised the repo rate to 5.75 per cent - (d) cut the repo rate by 25 bps to 5.25 per cent **Answer: (d)** — The decision was unanimous at the 58th meeting. **Q2.** The RBI's December 2025 projection for FY2025-26 real GDP growth was - (a) 7.3 per cent - (b) 6.5 per cent - (c) 6.8 per cent - (d) 8.2 per cent **Answer: (a)** — It was raised from 6.8 per cent. **Q3.** The RBI's December 2025 projection for FY2025-26 CPI inflation was - (a) 3.5 per cent - (b) 2.6 per cent - (c) 4.0 per cent - (d) 2.0 per cent **Answer: (d)** — It was cut from 2.6 per cent. **Q4.** The VB-G RAM G Act, 2025 replaces - (a) the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 - (b) the National Food Security Act, 2013 - (c) the Right to Education Act, 2009 - (d) the Code on Wages, 2019 **Answer: (a)** — It came into force across rural India on 1 July 2026. **Q5.** The VB-G RAM G Act guarantees how many days of work a year per rural household? - (a) 100 - (b) 150 - (c) 125 - (d) 90 **Answer: (c)** — Under MGNREGA it was 100. **Q6.** Under the VB-G RAM G Act, administrative expenditure - (a) rises from 6 to 9 per cent - (b) stays at 6 per cent - (c) falls from 9 to 6 per cent - (d) is capped at 3 per cent **Answer: (a)** — It is meant to strengthen field-level capacity. **Q7.** The SHANTI Act repeals the Atomic Energy Act, 1962 and the - (a) Environment (Protection) Act, 1986 - (b) Energy Conservation Act, 2001 - (c) Civil Liability for Nuclear Damage Act, 2010 - (d) Electricity Act, 2003 **Answer: (c)** — It allows licensed private participation in nuclear power. **Q8.** Under the SHANTI Act, the operator's liability in a nuclear accident is capped at - (a) Rs 10,000 crore - (b) Rs 3,000 crore - (c) Rs 500 crore - (d) Rs 1,500 crore **Answer: (b)** — The Central Government is liable above the cap. **Q9.** The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act raises the FDI cap in insurance from 74 per cent to - (a) 90 per cent - (b) 85 per cent - (c) 49 per cent - (d) 100 per cent **Answer: (d)** — The cap was 26 per cent before 2015. **Q10.** Which of the following Acts was NOT amended by the 2025 insurance law? - (a) Banking Regulation Act, 1949 - (b) Life Insurance Corporation Act, 1956 - (c) IRDA Act, 1999 - (d) Insurance Act, 1938 **Answer: (a)** — The net owned fund of foreign reinsurers was cut to Rs 1,000 crore. **Q11.** The Viksit Bharat Shiksha Adhishthan Bill, 2025 proposes to repeal the - (a) Bar Council of India Act - (b) National Medical Commission Act - (c) Right to Education Act - (d) UGC Act, AICTE Act and NCTE Act **Answer: (d)** — It was referred to a 31-member Joint Parliamentary Committee. **Q12.** The 23rd India-Russia Annual Summit in December 2025 was held in - (a) St Petersburg - (b) New Delhi - (c) Moscow - (d) Vladivostok **Answer: (b)** — President Putin visited on 4-5 December. **Q13.** The India-Oman CEPA was signed at - (a) Dubai - (b) New Delhi - (c) Doha - (d) Muscat **Answer: (d)** — It was signed on 18 December 2025. **Q14.** Under the India-Oman CEPA, Oman gives zero-duty access on what share of its tariff lines? - (a) 50 per cent - (b) 100 per cent - (c) 77.79 per cent - (d) 98.08 per cent **Answer: (d)** — India liberalises 77.79 per cent of its tariff lines. **Q15.** Operation Sagar Bandhu was India's relief operation after Cyclone Ditwah in - (a) Sri Lanka - (b) Myanmar - (c) Bangladesh - (d) Maldives **Answer: (a)** — It was launched on 28 November 2025. **Q16.** HADR in the context of India's naval operations stands for - (a) Harbour Defence and Rescue - (b) Hydrographic Analysis and Data Recording - (c) Humanitarian Assistance and Disaster Relief - (d) High Altitude Defence Radar **Answer: (c)** — Operation Sagar Bandhu is an example. **Q17.** Consider the following statements: 1. The RBI cut the repo rate to 5.25 per cent on 5 December 2025. 2. The SDF rate moved to 5.00 per cent. 3. The MPC changed its stance to accommodative. Which of the statements given above are correct? - (a) 1 and 2 only - (b) 2 and 3 only - (c) 1 and 3 only - (d) 1, 2 and 3 **Answer: (a)** — The stance stayed neutral. **Q18.** Consider the following statements: 1. The VB-G RAM G Act raises the statutory employment guarantee to 125 days. 2. Wages are to be paid weekly or within fifteen days of closure of the muster roll. 3. Administrative expenditure was reduced from 9 to 6 per cent. How many of the statements given above are correct? - (a) Only one - (b) Only two - (c) All three - (d) None **Answer: (b)** — Administrative expenditure rises from 6 to 9 per cent. **Q19.** Consider the following statements: 1. The SHANTI Act repeals the Atomic Energy Act, 1962. 2. It repeals the Civil Liability for Nuclear Damage Act, 2010. 3. It bars private companies from nuclear power altogether. Which of the statements given above are correct? - (a) 1 and 2 only - (b) 2 and 3 only - (c) 1 and 3 only - (d) 1, 2 and 3 **Answer: (a)** — Licensed private participation is allowed; sensitive activities stay with the State. **Q20.** Consider the following statements: 1. The insurance Bill raised the FDI cap from 49 to 74 per cent. 2. The Rajya Sabha passed it by voice vote. 3. It cut the net owned fund requirement for foreign reinsurers from Rs 5,000 crore to Rs 1,000 crore. Which of the statements given above are correct? - (a) 1 and 2 only - (b) 2 and 3 only - (c) 1 and 3 only - (d) 1, 2 and 3 **Answer: (b)** — The cap was raised from 74 to 100 per cent. **Q21.** Consider the following statements: 1. The Viksit Bharat Shiksha Adhishthan Bill was introduced in the Lok Sabha on 15 December 2025. 2. It would repeal the UGC Act, 1956, the AICTE Act, 1987 and the NCTE Act, 1993. 3. It would also replace the regulators for medicine, law and architecture. How many of the statements given above are correct? - (a) Only one - (b) Only two - (c) All three - (d) None **Answer: (b)** — Those regulators stay separate. **Q22.** Consider the following statements: 1. The India-Oman CEPA was signed in New Delhi. 2. Oman gives zero-duty access on 98.08 per cent of its tariff lines. 3. India liberalises 77.79 per cent of its tariff lines. Which of the statements given above are correct? - (a) 1 and 2 only - (b) 2 and 3 only - (c) 1 and 3 only - (d) 1, 2 and 3 **Answer: (b)** — It was signed in Muscat on 18 December 2025. **Q23.** Consider the following statements: 1. Operation Sagar Bandhu was launched after Cyclone Ditwah struck Sri Lanka. 2. It was India's relief operation in the Maldives. Which of the statements given above is/are correct? - (a) 1 only - (b) 2 only - (c) Both 1 and 2 - (d) Neither 1 nor 2 **Answer: (a)** — India launched it on 28 November 2025. **Q24.** Consider the following statements: 1. The 23rd India-Russia Annual Summit was held in New Delhi on 4-5 December 2025. 2. An S-500 purchase agreement was signed at the summit. Which of the statements given above is/are correct? - (a) 1 only - (b) 2 only - (c) Both 1 and 2 - (d) Neither 1 nor 2 **Answer: (a)** — Pre-visit expectations of S-500 and Su-57 deals were not confirmed. ### Mains Practice Questions Use these to frame full-length answers. You don't have to answer one exactly — they show the angles UPSC tests, so let them guide which points you cover. - Discuss the implications of the SHANTI Act for India's nuclear energy programme, nuclear liability and safety regulation. - Compare the VB-G RAM G Act with MGNREGA on entitlement, financing and design, and assess its impact on rural labour markets. - Evaluate the case for raising the FDI cap in insurance to 100 per cent. - Examine the strategic significance of India's CEPA with Oman and the role of Gulf partners in India's energy and trade security.