Banking Awareness of 1, 2 and 3 July 2025

Topic: Taxation

1. GST revenue nearly doubled over five years.

• GST revenue increased from ₹11.37 lakh crore in FY21 to ₹22.08 lakh crore in FY25.

• FY25 recorded the highest-ever GST collection. It showed a 9.4% increase over the previous year.
• The average monthly GST collection in FY25 was ₹1.84 lakh crore.
• This was higher than ₹1.68 lakh crore in FY24 and ₹1.51 lakh crore in FY22.
• The number of GST-registered taxpayers grew significantly.
• It rose from 65 lakh in 2017 to over 1.51 crore by 2025.
• July 1 is celebrated as GST Day. It marks the implementation of GST in 2017.
• Since its launch, GST has boosted revenue collection. It has also expanded the tax base and improved fiscal health.
• The tax system replaced around 17 local taxes and 13 cesses. It introduced a simplified, multi-tier structure.
• In April 2025, GST collection reached a monthly record of ₹2.37 lakh crore. In May 2025, it stood at ₹2.01 lakh crore.
• India currently follows a four-slab GST structure. The rates are 5%, 12%, 18%, and 28%.
• Essential items and packaged food fall under the 5% slab. Luxury and demerit goods are taxed at 28%.

Topic: Banking/Financial/Govt Schemes

2. Interest rates for small savings schemes has been kept the same for the seventh consecutive quarter.

• This has become effective from July 1, 2025.
• The Ministry of Finance has issued a notification confirming the rates for the July to September 2025 quarter.
• The government aims to boost household savings through these stable, government-backed options.
• These schemes remain more attractive than volatile investments like the stock market.
• Commercial banks may struggle to attract deposits.
• This is due to lower interest rates on bank accounts compared to the higher returns offered by small savings schemes.
• There are currently 12 small savings schemes in operation.
• These include the Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana, and Senior Citizen Savings Scheme (SCSS).
• Many of these schemes come with tax benefits. Their interest rates are reviewed quarterly.
• Most rates have stayed the same since the third quarter of 2023.
• Bank deposits in India usually have shorter tenures, ranging from 1.5 to 3 years.
• In contrast, small savings schemes offer longer lock-in periods and more stable returns.
• The PPF will continue to offer a 7.1% interest rate for Q2 of FY 2025–26. The NSC will retain its 7.7% rate.
• The SCSS and Sukanya Samriddhi accounts will maintain an interest rate of 8.2%.
• This consistent rate policy highlights the government’s support for secure and long-term savings options.

Topic: Reports and Indices

3. India’s manufacturing sector performed strongly in June.

• The PMI rose to 58.4, its highest level in 14 months, according to S&P Global.

• This growth was driven by strong demand, particularly from international markets.
• Export orders increased sharply, marking one of the fastest expansions in the survey’s 20-year history.
• Manufacturers saw gains in output, new business, and hiring.
• Purchases of inputs rose at the fastest pace in over a year.
• This helped expand inventories of raw materials and components.
• However, stocks of finished goods declined as firms tapped into inventory to meet demand.
• The PMI is based on responses from 400 purchasing managers across multiple industries.
• A PMI score above 50 signals sector growth, while a score below 50 indicates contraction.
• Outstanding work volumes increased in June after staying unchanged in May.
• Input cost inflation eased, reducing pressure on manufacturers.
• Manufacturing contributes 17% to India’s GDP.
• PMI data is released ahead of official government statistics.
• It plays a key role in shaping economic and policy decisions.

Topic: Banking System

4. Standard Chartered Bank and CCIL IFSC Limited have partnered to enable real-time US dollar settlements at GIFT City in Gujarat.

• The collaboration marks a key development in enhancing financial infrastructure at India’s international financial hub.
• Standard Chartered Bank’s IFSC Banking Unit (IBU) will act as the settlement bank for CCIL IFSC’s Foreign Exchange Settlement System (FCSS).
• This system will allow faster processing of foreign currency transactions within IFSC banking units.
• It will help improve liquidity management and operational efficiency for banks, investors, and businesses.
• The agreement supports the Indian government’s goal of developing GIFT City into a leading international finance hub.
• The partnership will help launch a seamless, real-time USD settlement system.
• The government wants GIFT IFSC to become a key entry point for global capital to support India’s high-growth sectors over the next 20 years.
• CCIL IFSC Limited is a subsidiary of Clearing Corporation of India Limited (CCIL).

Topic: MoUs/Agreements

5. Central Bank of India has signed a strategic shareholding agreement with global insurance firm Generali.

• The deal marks the bank’s entry into the insurance sector through a formal partnership.
• The bank has acquired a 24.91% equity stake in Future Generali India Insurance Company (FGIICL).
• It has also secured a 25.18% stake in Future Generali India Life Insurance Company Limited (FGILICL).
• With this move, Central Bank of India joins other public sector banks already active in insurance.
• These include SBI, PNB, Bank of Baroda, Canara Bank, Union Bank, and Bank of India.
• The partnership aims to improve insurance access across the country.
• The collaboration supports the government’s mission of achieving ‘Insurance for All’ by 2047.
• The investment is up to ₹451 crore for the general insurance arm (FGIICL).
• It is up to ₹57 crore for the life insurance arm (FGILICL).
• The bank has received all required approvals from the CCI, RBI, and IRDAI.

Topic: Appointments

6. CBDT Chairman Ravi Agrawal granted a one-year extension.

• The extension of the tenure of Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal till June 30, 2026, has been approved by the Appointments Committee of the Cabinet.
• The re-employment is on contract with effect from 1 July 2025 under the normal terms and conditions for re-employed officers.
• Agrawal, an IRS officer of the 1988 batch, had taken charge on 1 July 2024 up to his superannuation on 30 September 2024.
• A prior contractual tenure until 30 June 2025 had already been sanctioned and has now been prolonged by a further year.
• Nitin Gupta was succeeded by Agrawal in June 2024, and extensive administrative experience has been brought by him to the post.
• The Income Tax Department’s administrative planning is overseen by the chairman, who also advises the Indian Revenue Service.
• The CBDT is headed by a chairman and could have six members. It is responsible for administering the direct tax laws in India.
• It was formed on 1 January 1964. Its headquarters is in New Delhi, India.

Topic: Reports and Indices

7. India has recorded a remarkable 78% reduction in under-five mortality.

• This surpasses the global average decline of 61%.
• The 2024 report by the UN Inter-agency Group for Child Mortality Estimation highlights this progress.
• It also shows a 70% drop in India’s neonatal mortality rate.
• Globally, the decline in neonatal mortality is 54%.
• The Ministry of Health attributes India’s improvement to targeted efforts in expanding immunization.
• Special focus has been placed on reaching underserved communities.
• Vaccination is acknowledged as a highly effective and affordable public health strategy.
• India’s Universal Immunization Programme plays a key role in this achievement.
• It provides free vaccines annually to 2.9 crore pregnant women. It also covers 2.6 crore infants every year.
• Ongoing immunization drives have also reduced the number of zero-dose children.
• Their proportion fell from 0.11% in 2023 to 0.06% in 2024.

Topic: Banking/Financial/Govt Schemes

8. India marks 10 years of Digital India, transforming lives and the digital economy.

• On 1st July 2025, India celebrated a decade of the Digital India program, which was launched in 2015 by PM Narendra Modi to make technology accessible for all citizens.

• Access to healthcare, education, banking, and government services has been made possible online, bridging the digital divide between urban and rural India.
• According to the State of India’s Digital Economy Report 2024 by ICRIER, India now ranks third globally in digitalization, and its digital economy is expected to contribute nearly 20% of GDP by 2030.
• Over the past decade, internet and telecom infrastructure have rapidly expanded, with 4.74 lakh 5G towers installed by 2025 and 4G coverage in 6.15 lakh villages, making internet more accessible and affordable.
• Under BharatNet, more than 2.18 lakh Gram Panchayats have been connected with 6.92 lakh km of optical fiber cable to bring high-speed internet to rural India.
• India’s digital finance ecosystem has been empowered through UPI, Aadhaar, and DBT, benefiting millions of citizens and eliminating fake beneficiaries.