Banking Awareness of 1 and 2 December 2023

Topic: Reports and Indices

1. PMI Manufacturing has increased to 56 in November 2023.

• S&P Global Purchasing Managers’ Index (PMI) stood at 55.5 in October 2023.
• Strong demand and input availability kept manufacturing at higher level. Employment situation also improved.
• Participants in survey said the rate of inflation eased to the lowest in the current 40-month sequence of increases.
• Participants in survey said the rate of inflation was negligible by historical standards.
• PMI is based on responses from executives of 400 companies.
• PMI value above 50 means expansion and PMI value below 50 means contraction.

Topic: Committees/Commissions/Taskforces

2. IRDAI has formed taskforce on implementation of Digital Personal Data Protection Act 2023 in insurance sector.

• The taskforce will examine the impact of Digital Personal Data Protection Act 2023 on the insurance sector.
• The Digital Personal Data Protection (DPDP) Act, 2023 has been notified by the Ministry of Law and Justice, Legislative Department.
• It aims to provide for setting up of a comprehensive framework for the processing of digital personal data.
• The taskforce is headed by Randip Singh Japal, Executive Director (Non-Life), IRDAI.
• It has 10 other members including Chairman of LIC, CEOs of HDFC Life Insurance, ICICI Lombard, Aditya Birla Health Insurance and CMDs of General Insurance Company, New India Assurance Company, among others.
• The taskforce will give its report within a period of one month.

Topic: RBI

3. RBI superseded the board of Mumbai-based Abhyudaya Co-op Bank for a year.

• RBI has taken this action after it observed some material concerns arising out of poor governance standards in the bank.
• RBI has not placed business restrictions and the bank will continue to carry on its normal banking activities under the guidance of the Administrator.
• Satya Prakash Pathak has been appointed by RBI as Administrator to manage the affairs of the bank during this period.
• Satya Prakash Pathak is former Chief General Manager of State Bank of India.
• RBI also appointed a “Committee of Advisors” to assist the Administrator to discharge his duties.
• The members of the “Committee of Advisors” are Venkatesh Hegde, Mahendra Chhajed, and Suhas Gokhale.

Topic: Reports and Indices

4. India has been ranked 49th in the 2023 World Digital Competitiveness Ranking.

• The International Institute for Management Development (IMD) has released its 2023 World Digital Competitiveness Ranking (WDCR).
• As per the ranking, India has been kept on the 49th spot among 64 economies.
• India has made significant improvements in cyber security knowledge but lags in technology and future preparedness.
• The WDCR is a comprehensive assessment that shows how countries are navigating the digital landscape amid the rise of artificial intelligence (AI).
• The ranking throws light on crucial elements contributing to a nation's digital prowess.
• The United States remained on the top spot in the ranking. It solidified its position as a “digital nation”.
• Netherlands is in the second spot by jumping four places while Singapore secured third place in the ranking.
• Denmark slipped to fourth position due to a decline in future readiness and technology factors.
• In the Asia-Pacific region, India has descended to the 12th position among 14 countries.

Topic: Miscellaneous

5. ‘Loss and damage’ fund has been approved at the COP28 climate summit.

• The loss and damage fund was first announced during COP27 in Sharm el-Sheikh, Egypt. It was first suggested by Vanuatu in 1991.
• It is a loss and damage fund to help vulnerable countries fight against the impact of climate change.
• The initial funding is estimated to be $475 million. UAE pledged $100 million, and the European Union promised $275 million.
• $17.5 million will be contributed by the United States and $10 million from Japan.
• The fund will be administered by the World Bank.
• It is a global financial package to ensure the rescue and rehabilitation of countries facing the impact of climate change.
• As per the researchers, 55 impacted countries have suffered a $ 525 billion combined loss due to climate change.
• As per the IPCC, the losses and damages will increase in future as global warming continues to rise.

Topic: Miscellaneous

6. Asia’s largest open-air annual trade fair Bali Jatra started in Cuttack.

• The annual trade fair the Bali Jatra to celebrate the glorious ancient maritime legacy of Odisha was inaugurated on the bank of the Mahanadi River in Cuttack.
• This year the festival started on the occasion of Kartika Purnima. It will continue till 4 December.
• Cultural troupes from Odisha and other states performed at this fair.
• About two thousand stalls displaying various handicrafts, household goods, and foods have been installed.
• It is considered to be one of Asia's largest open trade fairs.

Topic: Infrastructure and Energy

7. India's largest circular railway will be built in Bengaluru.

• On 27 November, Railway Minister Ashwini Vaishnaw said Bengaluru will get a 287-km circular railway that will link all important towns around it. It will be the largest-of-its-kind network in India.
• This network will be built keeping in mind the needs of the city for the next 40-50 years, providing it with "complete connectivity" on seven railway tracks.
• However, the project to build a circular railway has been talked about for a long time, this was the first time that it was confirmed by the highest level of government.
• The government has sanctioned Rs 7 crore to conduct feasibility and alignment studies for the circular/ring railway.
• The study will be conducted by the construction organization of SWR and tenders will be called soon. The report will be ready by September 2024.
• Chennai has India's largest circular railway at 235.5 km.
• Bengaluru could surpass it with the 149-km suburban railway and could get India's largest suburban railway network after Kolkata.

Topic: Summits/Conferences/Meetings

8. 28^th meeting of the Conference of the Parties (COP) to UNFCCC started in Dubai on 30 November.

• The COP28 meeting is scheduled to be held from November 30 to December 12 in Dubai, United Arab Emirates (UAE).
• Reining in fossil fuels and carbon emissions is the main agenda of the summit.
• It will also facilitate the exchange of best practices and innovations across vital sectors crucial to decarbonisation efforts in the areas of energy, transport, buildings, industry, finance and nature.
• COP is an annual meeting of leaders, policymakers, scientists and activists to find solutions of the growing challenges of climate change.
• At the meeting, member countries will negotiate on their first Global Stocktake (GST). It is a scorecard to analyze countries’ progress towards the Paris Agreement.
• The United Nations Framework Convention on Climate Change (UNFCCC) was established in 1992.
• The main Objectives of COP 28 are:
  • Limiting the increase in global temperature to 1.5 degrees Celsius.
  • Achieving net-zero emissions by 2050.
  • Assisting the communities who are most vulnerable to the consequences of climate change.
  • Its main objective is to review the progress of the development of the Paris Agreement. 

Topic: Indian Economy/Financial Market

9. S&P Global Ratings has raised India's GDP growth forecast for FY2024.

• S&P Global Ratings said India's economy will grow at a faster pace than previously estimated in fiscal 2024.
• The rating agency revised its gross domestic product (GDP) growth forecast for fiscal year 2024 to 6.4% from 6% earlier.
• However, the Agency has reduced the growth forecast for fiscal year 2025 to 6.4% from 6.9% earlier.
• S&P's FY25 GDP growth forecast is lower than RBI's estimate of 6.6%.
• S&P believes it will take some time for India's interest rate cycle to turn around as headline inflation still remains above the RBI's target of 4%.
• The consumer price index (CPI)–or retail inflation–declined to 4.9% in October after touching a high of 7.4% in July.

Read Banking Awareness PDF - 1 and 2 December 2023