Banking, Financial and Economic Awareness

Topic: Indian Economy/Financial Market

1. India reports current account surplus of 0.9% in FY 2021.

  • For FY21, India reported a current account surplus of 0.9 percent of GDP. In the fiscal year 2020, the current account balance to GDP ratio in India was negative 0.9 percent.
  • India’s current account deficit widened to 1% of GDP in the March quarter of FY21. The trade deficit has contracted to USD 102.2 billion from USD 157.5 billion in FY21.
  • In FY 21, net invisible receipts were lower than the previous year due to an increase in net outgo of overseas investment, income payments and lower net private transfer receipts.
  • Despite the pandemic, the foreign direct investment and Private transfer receipts have increased in the FY21.
  • Private transfer receipts have also increased by 1.7 percent than the previous financial year. Private transfer receipts represent the remittances by Indians from overseas.
  • Net foreign portfolio investment (FPI) has also increased by USD 7.3 billion in FY 21.
  • According to RBI data, India reported an inflow of USD 0.2 billion as External commercial borrowings in FY 21 as compared to USD 21.7 billion in 2019-20.
  • India reported a current account surplus for the first time in 17 years. The last time the current account ended in a surplus was in 2003-04.

Current account: It represents a country's imports and exports of goods and services, payments made to foreign investors, and transfers such as foreign aid.

 

India reports current account surplus of 0.9% in FY 2021

Topic: Indian Economy/Financial Market

2. India’s total coal production declines 2.03% in financial year 2020-21.

  • India’s total coal production has declined 2.03% in financial year 2020-21 to 716 million tonnes.
  • The production was 730.87 million tonnes in the previous year. The production in FY21 is also lower than 729 million tonnes produced in 2018-19.
  • Coal India accounted for 83% of India’s total production. Its production declined by 1 % to 596 million tonnes during fiscal year 2020-21.
  • Production from captive coal blocks in India grew 8% to 66 million tonnes.
  • Production of thermal coal remained at 671 million tonnes. Production of coking coal was 45 million tonnes.
  • Production of lignite was lowest in past 10 fiscal years. It stood at 37 million tonnes.
  • Chhattisgarh was highest thermal coal-producing state during 2020-21. It accounted for 24% of overall thermal coal production. Chhattisgarh was followed by Odisha and Madhya Pradesh.
  • Jharkhand accounts for nearly all of India’s coking coal production during 2020-21. It produced 44 million tonnes of coking coal.
  • Imports of coal to India decreased by 13.5% to 215 million tonnes. The import of thermal coal decreased by 17% to 164 million tonnes during 2020-21. The import of coking coal decreased by 1 % to 51 million tonnes.
  • Indonesia exported 96 million tonnes of coal to India during 2020-21. Australia was the largest supplier of coking coal to India.

Topic: Reports and Indices

3. Manufacturing PMI for June declined to 48.1.

  • Manufacturing Purchasing Managers’ Index (PMI) for June declined to 48.1.
  • The index reached below the critical mark of 50 for the first time since July 2020.

Purchasing Managers’ Index (PMI):

It is prepared by IHS Markit.

It varies between 0 and 100. Reading above 50 indicates an overall increase over previous month. Reading below 50 indicates an overall decrease compared to previous month.

PMI is released monthly.

  • The headline PMI is a weighted average of the following five indices as given below.

New Orders

30%

Output

25%

Employment

20%

Suppliers’ Delivery Times

15%

Stocks of Purchases

10%

Topic: Agriculture

4. First Agriculture Export Facilitation Centre of India launched in Pune.

  • First Agriculture Export Facilitation Centre of India was launched in Pune.
  • It has been established by the Mahratta Chamber of Commerce Industries and Agriculture (MCCIA) in association with NABARD.
  • It was initially launched virtually in May, 2021. GS Rawat, Chief General Manager, NABARD, Pune Regional Office inaugurated the centre on 01 July.
  • The centre aims to boost the agriculture and food exports of Maharashtra. It is now open for potential exporters of agri-food products from Maharashtra.

Topic: Indian Economy/Financial Market

5. Anti-dumping duty on Chinese 'PVC Flex Film' imports extended by Finance Ministry.

  • Anti-dumping duty on Chinese 'PVC Flex Film' imports has been extended by Finance Ministry till January 31 next year.
  • The validity of anti-dumping duty was to end on August 7 this year. The anti-dumping was imposed in August 2016.
  • But, Directorate General of Trade Remedies (DGTR) initiated a sunset review investigation on March 24 this year and requested an extension of the validity of the duty.
  • The existing anti-dumping duty on imports of ‘Plain Medium Density Fibre Board (MDF)’ from Vietnam has also been extended till March 2022.
  • Directorate General of Trade Remedies (DGTR) functions as an attached office of Department of Commerce, Ministry of Commerce and Industry. It deals with Anti-dumping, countervailing duty (CVD) and Safeguard measures.

Topic: Miscellaneous

6. First ever consignment of coal from Netaji Subhas Dock (NSD) of SMP Kolkata to Bangladesh has been exported by India.

  • First ever consignment of coal from Netaji Subhas Dock (NSD) of SMP (Syama Prasad Mookerjee Port) Kolkata to Bangladesh has been exported by India on 02 July.
  • The coal has been exported to Rampal Power Station, Khulna in Bangladesh.
  • Rampal Power Station has been set up by Bangladesh India Friendship Power Company Ltd.
  • Bangladesh India Friendship Power Company Ltd is a joint venture between India's NTPC and Bangladesh Power Development Board.

Topic: Banking System

7. SBI launches CASP across its 360 select branches to cater to Current Account customers.

  • State Bank of India (SBI) has launched Current Account Service Point (CASP) across its 360 select branches to cater to Current Account customers.
  • Current Account Service Point (CASP) will address the critical needs of key Current Account customers.
  • CASP was launched by Challa Sreenivasulu Setty, Managing Director (Retail & Digital Banking) on the occasion of SBI’s 66th foundation day on 01 July 2021.

State Bank of India (SBI):

It is a nationalized public sector bank and the largest lender of India.

In 2017, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore and Bharatiya Mahila Bank were merged with State Bank of India.

Life Insurance Corporation of India (LIC) is the largest non-promoter shareholder in SBI.

Headquarters: Mumbai, Maharashtra

Tagline: The Banker to Every Indian

Topic: Regulatory Bodies/Financial Institutions

8. CERC permits BYPL to end its offtake agreement with NTPC Ltd’s Dadri-1 thermal power plant.

  • Central Electricity Regulatory Commission (CERC) has given permission to BSES Yamuna Power Ltd (BYPL) to end its offtake agreement with NTPC Ltd’s Dadri-1 thermal power plant.
  • NTPC and BYPL had signed a supplementary power purchase agreement (SPPA) in 2012 after the lapse of their original agreement.
  • The plant was commissioned in 1995. It had completed 25 years on November 30, 2020.

Central Electricity Regulatory Commission (CERC):

It is a statutory body formed on 24 July 1998 under the Electricity Regulatory Commissions Act, 1998.

It is the central commission functioning under section 76 of the Electricity Act 2003.

It consists of a Chairperson and four other members. Chairperson of Central Electricity Authority is ex-officio member of CERC.

Chairperson of CERC- P K Pujari

Topic: Indian Economy/Financial Market

9. Centre includes retail and wholesale traders under micro, small or medium enterprise (MSMEs).

  • Centre has included retail and wholesale traders under the micro, small or medium enterprise (MSMEs).
  • They will now be eligible for priority sector lending by banks and financial institutions.
  • They will now be able to register on the Udyam Registration Portal.
  • Minister of MSME and Road Transport and Highways Nitin Gadkari said that the decision would benefit 2.5 crore retail and wholesale traders.
  • Udyam Registration Portal is the government’s official portal for the registration of MSMEs. It is maintained by Ministry of Micro, Small & Medium Enterprises.

 

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