Banking, Financial and Economic Awareness of 11 January 2020

By PendulumEdu | Last Modified: 04 May 2020 16:08 PM IST

1. Growth of India’soil consumption will be more than that of China’s in the mid-2020s

As per India 2020 Energy Policy Review released by International Energy Agency (IEA), India's oil demand will grow from 4.4 million barrels per day (bpd) in 2017 to 6 million bpd in 2024.
IEA has suggested that India should increase its strategic oil storage capacity in order to protect itself from disruptions in the international oil market.
As per IEA, India stands at third place among the world's largest oil consumers and fourth place among the world’s largest oil refiners.
IEA has said that India is a net exporter of refined petroleum products, and the growth of oil consumption in India will become more than that of China in the mid-2020s.
As per IEA, India currently imports 65% of its total oil imports (80%) from the Middle East through the Strait of Hormuz.
India's oil refining capacity will grow from present 5 million bpd to 8 million bpd by 2025.
India's current strategic oil storage capacity is equal to 10 days of its oil imports.
Earlier, India has developed 5.33 Million Metric Tonne (MMT) storage of crude oil at Mangalore and Padur in Karnataka and Visakhapatnam in Andhra Pradesh.
In June 2018, the cabinet has approved the development of extra 6.5 MMT Strategic Petroleum Reserve (SPR) facilities at Chandikhol in Odisha and Padur in Karnataka.
International Energy Agency (IEA):
- Currently, India is one of 7 associate members of IEA.
- Members of IEA should maintain total strategic oil reserves equal to 90 days of net imports of last year.
- Headquarters: Paris
- Established: 1974 (after the 1973 oil crisis)
- Members: 30 states

2. National Strategy for Financial Inclusion (NSFI) for 2019-2024 released

At a High-Level Meeting (HLM) on Financial Inclusion for North East region organized at Agartala, NSFI for 2019-2014 was announced by RBI's current Deputy Governor (Shri M K Jain) on January 10, 2020.
NSFI says that Scheduled Commercial Banks (SCBs) /Payments Banks/ Small Finance Banks (SFBs) should increase the outreach of their outlets to make banking services available to every village within a 5km radius or a hamlet of 500 houses in hilly areas by March 2020.
NSFI suggests for providing every adult access to a financial service provider through mobile by March 2024. It also proposes for strengthening of digital financial services ecosystem in all Tier-II to Tier VI centers.
As per NSFI, strengthening of digital financial services ecosystem is needed for developing infrastructure to make Indian society a less-cash society by March 2022. NSFI also says that the Public Credit Registry (PCR) should be made fully operational by March 2022.
NSFI has fixedthe March 2020 deadline for enrolment of every adult in insurance schemes (PMJJBY, PMSBY, etc.) and pension schemes (NPS, APY, etc.). But, such adultsshouldhave eligibility and willingness for enrolment in these schemes. An adult should also be currently enrolled in PMJDY.
NSFI provides March 2022 deadline for development of focused framework by the National Skill Development Mission to raise financial literacy awareness of SHGs/ Micro entrepreneurs newly included in financial services.

3. Agreement signed for collaboration on CO₂-assisted EOR project in Assam

Indian Oil Corporation Ltd (IOC) and Oil India Ltd (OIL) have signed an agreement for collaboration on CO₂-assisted Enhanced Oil Recovery (EOR) project in Assam.
Under the project, CO₂ will be captured from flue-gas stacks (chimneys) of the Hydrogen Generation Unit and Gas Turbine power plant at IOC's Digboi Refinery and transferred to Oil India Ltd'sNahorkatiya and Dikom oil fields in Assam.
CO₂-assisted Enhanced Oil Recovery (EOR) refers to injecting Carbon dioxide into oil reservoirs to achieve better oil-well productivity and more Carbon Capture, Utilisation and Storage (CCUS). CCUS is a technology for reducing CO₂ emissions.

4. PayU acquires PaySense

PayU has taken decision to acquire a controlling stake in PaySense.
Under the deal, LazyPay, the consumer lending business of PayU, will be merged with PaySense.
PrashanthRanganathan, who is present CEO of PaySense, will be the CEO of the new business.
PaySense is a Mumbai based Fintech (Financial technology) startup. It was formed in 2015.
PayU is a Fintech company whose headquarters is in Hoofddorp, Netherlands. It was founded in 2002.

5. State Energy Efficiency Index 2019 released

The government has released the State Energy Efficiency Index 2019, which measures the progress of initiatives for achieving energy efficiency in 36 States and UTs in India.
Bureau of Energy Efficiency has developed the State Energy Efficiency Index in partnership with Alliance for an Energy Efficient Economy.
The index measures the progress of energy efficiency initiatives in buildings, industry, municipalities, transport, agriculture, and DISCOMs.
The index is topped by Haryana, followed by Karnataka and Kerala.
First State Energy Efficiency Index was released in August 2018.
Alliance for an Energy Efficient Economy:
- It is a not-for-profit organization.
- It is an industry-led organization.
- It was started in 2008.