Banking Awareness of 1, 2 and 3 June 2024

Topic: Miscellaneous

1. Gautam Adani has replaced Mukesh Ambani as richest Asian.

• With a $111 billion net worth, Gautam Adani is currently the 11th richest person in the world.
• He is wealthier than Mr. Ambani, who is ranked Number 12 on the Bloomberg Billionaires Index with $109 billion.
• On May 31, 2024, the market capitalization of ten listed Adani group companies increased to ₹17.51 lakh crore, with a market value increase of ₹84,064 crore.
• Adani's personal wealth increased in 2022 despite the downturn in the global economy, making him the richest man in Asia.
• However, in January 2023, a Hindenburg Research report took a damage to his $21 billion conglomerate.
• According to Bloomberg, Mr. Adani's net worth has climbed by $26.8 billion so far in 2024, while Mr. Ambani's wealth has increased by $12.7 billion.

Topic: Taxation

2. The gross GST revenue for May 2024 was 1.73 lakh crore rupees.

• According to the Ministry of Finance, this is a 10 per cent year-on-year growth in GST revenue.
• Out of the total GST collection in May 2024, Central Goods and Services Tax (GST) is more than 32,000 crore rupees.
• State GST is more than 40,000 crore rupees and Integrated GST is over 87,781 crore rupees.
• Out of the total GST collection in May 2024, cess is more than 12 thousand crore rupees.
• After accounting for refunds, the net GST revenue for May 2024 was 1.44 lakh crore rupees.
• This represents a growth of 6.9% as against the same period last year.
• Gross GST collections in FY 2024-25 stood at 3.83 lakh crore rupees.
• This is 11.3 per cent year-on-year growth. This growth is driven by marginal rise in imports and a strong rise in domestic transactions.

Topic: Indian Economy/Financial Market

3. In 2023-24, foreign direct investment (FDI) equity inflows into India declined by 3.49% to USD 44.42 billion.

• According to government data, the decline was due to low investment in sectors such as services, computer hardware and software, telecom, auto and pharma.
• FDI inflows during the year 2022-23 stood at US$ 46.03 billion.
• However, inflows during January-March FY24 rose 33.4% to USD 12.38 billion, compared to USD 9.28 billion in the same period a year ago.
• During the 2023–24 fiscal year, Maharashtra received the highest inflow of USD 15.1 billion, compared to USD 14.8 billion in 2022–23.
• According to government data, India got highest FDI from Singapore in 2023-24.
• However, FDI from Singapore has declined by 31.55% to $11.77 billion in 2023-24.
• FDI inflows into India declined by about 3.5% due to global economic uncertainties.
• In FY24, FDI equity inflows declined from countries like Mauritius, Singapore, the U.S., the U.K., UAE, Cayman Islands, Germany, and Cyprus.
• Investments increased from the Netherlands and Japan.
• Since 2018-19, the largest source of FDI investments for India has been Singapore.
• In 2017-18, India received the maximum FDI from Mauritius.
• FDI equity inflows in India decreased 3.49% to $44.42 billion in 2023-24.
• The total FDI decreased marginally by one per cent to $70.95 billion during 2023-24.
• The total FDI includes equity inflows, reinvested earnings and other capital. 
• In 2021-22, India got the highest ever FDI inflows of $84.83 billion.
• Construction (infrastructure) activities, development and power sectors have recorded growth in inflows.
• FDI from Mauritius declined to $7.97 billion in the last fiscal. Mauritius was the second biggest investor.
• The U.S. was the third largest investor in India in 2023-24. It was followed by the Netherlands, Japan, the UAE, U.K., Cyprus, Germany, and Cayman Islands.
• Mauritius’ share in total FDI received by India during April 2000 to March 2024 is 25%. Singapore's share is 24%. The U.S. accounted for 10%.

Topic: Indian Economy/Financial Market

4. Indian economy grew at 8.2% in FY24: NSO.

• According to the provisional estimates of gross domestic product (GDP) growth released by the National Statistical Office (NSO), India’s economy grew by 7.8 per cent in the March quarter.
• As per the data, the Indian economy has grown by 8.2 per cent in 2023-24 as compared to 7 per cent in 2022-23.
• The growth in the January-March period was lower than the 8.6 per cent expansion in the December quarter.
• Government expenditure continued to support growth. It has increased 0.9 per cent year-on-year in Q4.
• Manufacturing, construction, public administration, defence and other services sectors have also increased and supported the growth.
• In FY24, capital formation recorded a growth rate of 9 per cent, while government expenditure grew 2.5 per cent.
• China has registered an economic growth of 5.3 per cent in the first three months of 2024.
• India’s fiscal deficit was at Rs 16.54 lakh crore in FY24.
• The budgetary target for fiscal deficit was Rs 17.86 lakh crore.
• According to the data from the Comptroller General of Accounts, the fiscal gap is now 95.3% of the budgetary target.
• In FY24, central government’s fiscal deficit was at 5.6% of GDP. This was below the revised estimate of 5.8%.
• For FY24, net tax receipts of the centre were higher than projected at Rs 23.27 lakh crore.
• Net tax receipts of the centre stood at 100.1% of the year’s target.
• Total expenditure stood at Rs 44.43 lakh crore, or 99% of the targeted expenditure for FY24.
• The government's capital expenditure on infrastructure projects was Rs 9.49 lakh crore.
• Fiscal deficit for April 2024 stood at Rs 2.1 lakh crore, or 12.5% of the FY24 target.

Topic: Indian Economy/Financial Market

5. NSE Indices Limited launched the Nifty EV & New Age Automotive Index.

• This index will monitor the performance of businesses within the electric vehicle (EV) sector.
• This index is also designed to monitor the performance of businesses engaged in the advancement of new-age automotive vehicles and associated technology.
• It is a new thematic index. The base date of index is April 2, 2018. Its base value is 1000.
• It will be reconstituted semi-annually. It will be rebalanced on a quarterly basis.
• This would be the country’s first ever electric vehicle (EV) index.
• The new index will act as a benchmark for asset managers.
• It will be a reference index tracked passive funds as Exchange Traded Funds (ETFs), index funds and structured products.
• As of now, NSE hosts 17 thematic indices. These include Nifty Commodities, Nifty India Consumption, Nifty CPSE, Nifty Energy, and Nifty Infrastructure.

Topic: Corporates/Companies

6. TIME magazine has named Reliance Industries Limited (RIL) as one of the World’s Most Influential Companies.

• This is the second appearance of RIL on the TIME 100 list.
• Reliance has been recognized in the Titans category.
• This highlights its transformative impact across sectors in India and beyond.
• Reliance is the only Indian company which have been included twice in this list.
• Reliance’s subsidiary, Jio Platforms, was placed in the inaugural TIME 100 Most Influential Companies List of 2021.
• TIME described it as India’s Juggernaut. As per TIME, it is the country’s most valuable company, with a market capitalization of over $200 billion.
• In addition to Reliance, TIME magazine's prestigious list of 100 World's Most Influential Companies of 2024 also includes Tata Group in the Titans category and the Serum Institute of India in the Pioneers category.
• The Serum Institute of India is known for its pioneering work in vaccine manufacturing.
• TIME 100 Most Influential Companies list 2024 is the fourth annual edition.
• It celebrates businesses making extraordinary impacts globally.

Topic: RBI

7. RBI transferred 100 tonnes of gold from the UK to its domestic vaults in India.

• For the first time since 1991, RBI relocated more than 1 lakh kilograms of gold from the UK to India for logistical and storage reasons.
• This step will also assist RBI in saving storage costs that are paid to the Bank of England.
• In India, gold is stored in vaults located in the RBI’s old office building on Mumbai’s Mint Road and in Nagpur.
• As of March 31, 2024, the total gold held by the Reserve Bank was 822.10 metric tonnes.
• In August 1990, the then RBI Governor proposed keeping 15% of gold reserves abroad for emergency use. India’s foreign debt was approximately USD 72 billion in March 1990.
• 20 tonnes of gold worth USD 234 million were shipped abroad after government approval.
• The Bank of England has traditionally served as a repository of gold for many central banks, including India.
• The RBI has purchased 27.5 metric tons of gold in the last financial year.
• On May 29, a penalty of Rs 36.38 lakh imposed on foreign lender HSBC by the Reserve Bank of India for violations of the Foreign Exchange Management Act (FEMA).
• The central bank said HSBC did not comply with the reporting requirements under the Liberalised Remittance Scheme of FEMA, 1999.

Topic: RBI

8. FY24 income of RBI has increased 17% to ₹2,75,572.32 crore.

• RBI’s FY24 income spending has declined by 56.3% to ₹64,694.33 crore from ₹1,48,037.04 crore in FY23.
• RBI’s annual report showed that the size of its balance sheet increased by 11% (₹7,02,946.97 crore) to ₹70,47,703.21 crore from ₹63,44,756.24 crore in FY23.
• On the asset side, the increase was because of rise in foreign investments, gold, and loans and advances by 13.9%, 18.26% and 30.05%, respectively.
• The increase on liabilities side was because of rise in notes issued, deposits and other liabilities by 3.88%, 27% and 92.57%, respectively.
• Domestic assets formed 23.31% in FY24. Foreign currency assets, gold and loans and advances to financial institutions outside India formed 76.69% of total assets in FY24.
• ₹42,819.91 crore was transferred to the Contingency Fund. No provision was made for Asset Development Fund (ADF).
• RBI projected real GDP growth for 2024-25 at 7%, with risks evenly balanced.
• As per the RBI Annual Report, unclaimed deposits with banks have increased 26% year on year to Rs 78,213 crore at the end of March 2024.
• At the end of March 2023, the amount with Depositor Education and Awareness Fund stood at Rs 62,225 crore.
• Banks transfer deposits to RBI's Depositor Education and Awareness (DEA) Fund that have been unclaimed by account holders for ten years or more.
• In FY25, RBI and NPCI International Payments (NIPL) start work towards taking UPI to 20 countries by FY29. RBI said this in its annual report for FY24.
• Multilateral linkages and opportunities for collaboration of Fast Payment System (FPS) with EU and SAARC will also be explored by RBI.
• In FY24, RBI authorized 22 online payment aggregators (PAs), two non-bank Prepaid Payment Instrument (PPI) issuers and one Trade Receivables Discounting System (TReDS) platform operator.
• RBI also authorized one bank for PPI issuance and two banks for operating as Bharat Bill Payment Operating Units (BBPOUs).
• RBI also approved 52 banks for providing mobile banking facility to their customers.

Topic: Reports and Indices

9. Income Tax department sets the Cost Inflation Index at 363 for the financial year 2024-25.

• The income tax department has notified the Cost Inflation Index for FY2025.
• It will be used for calculating long-term capital gains on the sale of immovable property, securities and jewellery.
• The Cost Inflation Index has been increased from 348 in the previous fiscal year to 363 for the financial year 2024-25.
• This increase aligns with the 4.83 per cent retail inflation rate recorded in April 2024.
• Taxpayers favour a higher Cost Inflation Index as it enables them to claim larger tax deductions.
• This index is issued under the Income-tax Act, 1961 and is generally used to determine the indexed cost of acquisition” for calculating capital gains.
• An asset held for more than 36 months comes under long-term capital gains.

Topic: RBI

10. The final framework for the self-regulatory body of the Indian fintech sector was released by the RBI.

• After feedback received from stakeholders on the draft norms dated January 15, the Reserve Bank of India has finalised the framework for recognising SROs for the fintech sector.
• The self-regulatory organisation (SRO) will be industry-driven, and will be responsible for setting and enforcing regulatory standards, promoting ethical conduct, ensuring market integrity, resolving disputes.
• It will also be responsible for promoting transparency and accountability among its members.
• This SRO has been mandated by RBI to be built on a ‘representative’ structure, which will enable it to leverage the collective expertise and experience of its members.
• No entity should hold 10% or more of its paid-up share capital.
• RBI said that fintech companies located outside India can also be members in this SRO.
• The applicant should have a minimum net worth of Rs 2 crore within a period of one year after being recognised as SRO-FT by RBI or before the commencement of such operations.

Topic: Indian Economy/Financial Market

11. India's core sector growth increased 6.2% in April.

• India's index of eight core sectors saw a 6.6% growth in March. It was 4.6% in April 2023.
• Positive growth was seen in the production of electricity, natural gas, coal, steel, refinery products, crude oil, and cement in April.
• In April, The coal sector output declined by 7.5% YoY. In March 2024, coal sector output was recorded at 8.7%.
• Crude oil sector recorded 1.6% growth in April. In March 2024, crude oil output was recorded at 2%.
• Natural Gas output increased by 8.6 per cent in April 2024. The output of Refinery products increased 3.9% in April 2024.
• Fertilizers sector declined by 0.8% in April 2024. Cement and steel sectors increased only by 0.6 per cent and 7.1 per cent in April 2024.
• The electricity sector increased by 9.4 per cent in April 2024.

Topic: Awards and Prizes

12. ‘Sustainability Champion – Editor’s Choice Award’ presented to REC Limited at Outlook Planet Sustainability Summit & Awards 2024.

• Additionally, the “Corporate Social Responsibility Champion Award” presented to Power Finance Corporation Ltd. (PFC) in the NF (Non-Fossil Fuel) business category.
• The Outlook Planet Sustainability Summit & Awards 2024, was held in Goa.
• Rural Electrification Corporation (REC) Limited is a Maharatna Central Public Sector Enterprise under the Ministry of Power and a leading NBFC.
• Outlook Group in collaboration with the Indian Institute of Technology (IIT) Goa organised this awards ceremony.
• This award recognizes REC's commitment to sustainability initiatives and its efforts to drive progress towards a greener future.
• The Outlook Planet Sustainability Summit & Awards is a premier platform that brings together industry leaders, policy makers and sustainability advocates to promote excellence in sustainable practices.

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