Banking Awareness of 1, 2 and 3 March 2025

Topic: Reports and Indices

1. PMI declined from 57.7 in January to 56.3 in February. 

• This shows that manufacturing activity declined in February
• Strong domestic and international demand caused companies to increase purchasing and workforce. 
• Job creation continued in February. A year-long trend of employment growth also continued. 
• The rate of job creation was the second-highest in the survey’s history. 
• Manufacturers recorded rising input costs, particularly of bamboo, leather, marketing, rubber, and telecom. 
• Inflation overall declined to its lowest point in a year. 
• Output growth decreased to its lowest rate since December 2023. Backlogs stood at their highest level since January 2024. 
• The PMI is derived from responses from 400 firms. Its value shows expansion when above 50.

Topic: Corporates/Companies

2. A FEMA notice has been issue to Paytm by ED over past acquisitions.

• Paytm has received a show cause notice from Enforcement Directorate. 
• The notice accuses Paytm of violating the Foreign Exchange Management Act (FEMA). 
• It relates to the acquisition of Little Internet Private Limited and Nearbuy India Private Limited between 2015 and 2019. 
• Paytm clarified that these companies were not its subsidiaries during that period. 
• The company assured that the notice would not affect its services to consumers or merchants. 
• Paytm said that no impact on its services would occur due to this notice.

Topic: Banking System

3. Banking system’s non-food credit growth declined to 12.5% year-on-year in January 2025.

• Banking system’s non-food credit growth stood at 16.2% in the same period of last year. 
• In January 2025, non-food credit growth was three-month high, as per the RBI. 
• Services sector’s credit growth declined to 13.8% year-on-year. This decreased from 21.0% in last year. 
• Credit growth to computer software sector grew in January 2025. 
• Personal loan growth declined to 14.2% year-on-year.
• The slow growth in vehicle loans and credit card outstanding segments led this decline in growth. 
• Credit to agriculture and allied activities increased by 12.2% year-on-year.
• Credit to industry have shown 8.2% growth on year-on-year basis. 

Topic: Banking System

4. Bank of Baroda has received the ISO 22301:2019 Business Continuity Management System certification from the British Standards Institution (BSI). 

• This recognition highlights the Bank's robust operational resilience, business continuity planning, and risk management practices. 
• These practices align with global industry standards. 
• The ISO 22301:2019 certification acknowledges the Bank's commitment to maintaining effective business continuity measures. 
• It guarantees the Bank's ability to provide seamless services even in the face of unexpected disruptions. 
• Furthermore, it showcases the Bank's capacity to manage risks efficiently. 
• ISO 22301:2019 is a globally recognized standard for business continuity management. 
• It emphasizes minimizing operational disruptions and ensuring rapid recovery during crises. 
• The British Standards Institution (BSI), established in 1901, is the national standards body of the UK. 

Topic: Indian Economy/Financial Market

5. In February, the volume of UPI transactions decreased by 5%.

• The volume in February reached 16.11 billion. In January, it stood at 16.99 billion. 
• The transaction value for February declined by 6.5% to ₹21.48 trillion.
• February recorded a decrease from 16.73 billion in volume and ₹23.25 trillion in value. 
• In February 2025, volume of transactions grew by 33% and value grew by 20%. 
• The average number of daily UPI transactions increased to 575 million in February. 
• The average daily transaction amount rose by 3.56% in February. 
• UPI transactions in 2024 grew by nearly 46%. 
• FASTag transactions increased by 1% in February, compared to January. 
• PhonePe maintained its leadership in the UPI space, holding over 48% market share. 
• Google Pay ranked 2nd with a 36.91% market share in January 2025. Paytm’s share in UPI transactions declined. 

Topic: Agriculture

6. The government achieved a milestone by launching 10,000 FPOs to empower small farmers.

• Giving a significant boost to India's agriculture sector, the government has successfully launched 10,000 Farmer Producer Organizations (FPOs).
• On February 29, 2020, PM Narendra Modi introduced the scheme to empower small and marginal farmers by strengthening their collective bargaining power and improving market access.
• The budget outlay of this initiative is Rs 6,865 crore, covering the period up to 2027-28.
• The historic 10,000th FPO located in Khagaria district of Bihar focuses on maize, banana, and paddy cultivation.
• The government has disbursed equity grants of Rs 254.4 crore to 4,761 FPOs and provided credit guarantee cover of Rs 453 crore to 1,900 FPOs since the inception of the scheme.
• Today, nearly 30 lakh farmers have joined the FPO movement, with women comprising 40% of the total membership.
• Under the scheme, each newly formed FPO is given financial assistance of up to Rs 18 lakh over three years to meet the support and management costs for five years.
• Additional provisions include an equity grant of up to Rs 2,000 per farmer member (with a cap of Rs 15 lakh per FPO) and a credit guarantee facility of up to Rs 2 crore to ensure access to institutional credit.
• A dedicated Credit Guarantee Fund (CGF) has been established to provide credit cover to financial institutions, helping FPOs access formal financing.
• Around 5,000 FPOs have been registered on the Open Network for Digital Commerce (ONDC), which enables them to sell their produce online to a wider consumer base.

Topic: Indian Economy/Financial Market

7. The combined Index of Eight Core Industries grew by 4.6% in January 2025.

• Coal production increased by 4.6% in January 2025. Petroleum refinery production surged by 8.3% in January 2025.
• Crude oil production declined by 1.1% in January 2025. Natural gas production fell by 1.5% in January 2025.
• Fertiliser production grew by 3% in January 2025. Steel production increased by 3.7% in January 2025.
• Cement production grew by 14.5% in January 2025. Electricity generation increased by 1.3% in January 2025.
• The eight core industries contribute 40.27% of the weight in the Index of Industrial Production (IIP).

Topic: Indian Economy/Financial Market

8. India’s economy grew at 6.2 per cent in the third quarter of 2024-25.

• As per the data released by the National Statistical Office (NSO), India’s gross domestic product (GDP) registered a growth of 6.2 per cent during October-December 2024 (Q3 FY25).
• In the second quarter, the Indian economy growth rate was 5.6%.
• Real GDP has been estimated to grow by 6.5 per cent in FY 2024-25 as against 6.4 per cent.
• The NSO also revised the GDP growth for 2023-24 to 9.2 per cent against the earlier estimate of 8.2 per cent.
• The government’s fiscal deficit reached 74.5 per cent of the full-year target at the end of January.
• The fiscal deficit was Rs 11,69,542 crore during the April-January 2024-25 period.
• Construction sector is estimated to grow at the rate of 8.6 per cent followed by ‘Financial, Real Estate & Professional Services’ sector.
• Private Final Consumption Expenditure (PFCE) is expected to register a good growth of 7.6 per cent during 2024-25.
• The central government’s net tax revenue stood at Rs 19.03 lakh crore (74.4 per cent of the RE of 2024-25).
• The total expenditure of the Centre was at Rs 35.7 lakh crore (75.7 per cent of the RE).

Topic: Regulatory Bodies/Financial Institutions

9. SEBI launched a centralized database portal ‘Bond Central’ for corporate bonds.

• Bond Central portal has been developed by the Online Bond Platform Providers Association (OBPP Association) in collaboration with Market Infrastructure Institutions (MIIs) comprising stock exchanges and depositories.
• Its main aim is to create a single platform for authentic sources of information on corporate bonds issued in India.
• It will act as an information repository for the public at large and is accessible free of cost.
• This database will enhance transparency and help investors and other market participants in making decisions.
• It will be operated by the Online Bond Platform Providers Association (OBPP Association).
• Through this portal, investors can compare corporate bond prices with Government Securities (G-Secs) and other fixed-income indices.
• Through this platform, Investors can get information related to detailed risk assessments, corporate bond documents, and disclosures. It will enable them to evaluate opportunities effectively.

Topic: Indian Economy/Financial Market

10. EPFO decided to retain the interest rate on provident fund deposits at 8.25%.

• For 2024-25, the Employees’ Provident Fund Organisation (EPFO) has decided to keep the interest rate on provident fund deposits at 8.25%.
• In 2024-25, EPFO processed 50.8 million claims worth Rs 2.05 lakh crore.
• The 8.25% interest rate for 2023-24 was based on Rs 1.07 lakh crore in income.
• EPF interest rates have seen fluctuations, with 8.65% in 2018-19, 8.5% in 2019-20, and 8.1% in 2021-22.
• In 2021-22, the interest rate was lowered to 8.1%, which was the lowest in the last 40 years.
• EPFO's Central Board of Trustees (CBT) includes representatives from employers, employees, state governments, labour ministry officials, etc.

Read Banking Awareness PDF - 1 2 and 3 March 2025