Banking Awareness of 12, 13 and 14 July 2022

Topic: Indian Economy/Financial Market

1. Industrial Production rises 19.6% in May against 7.1% in April.

• The National Statistical Office (NSO) has released the Quick Estimates of Index of Industrial Production (IIP).
• India’s Industrial Production jumped to 19.6% in May due to the strong performance of the manufacturing, power, and mining sectors.
• In May, the manufacturing sector has grown by 20.6% while power generation soared by 23.5%.
• The mining sector witnessed an expansion of 10.9% in May 2022.
• Consumer non-durables grew by 0.9% while Capital goods grew by 54%.
• The Quick Estimates of IIP with base 2011-12 stand at 137.7 for May 2022.
• Last year in May, the IIP had grown by 27.6% mainly due to the low-base effect.
• The IIP index provides the details of the growth of various sectors in the economy.

Topic: Reports and Indices

2. United Nations' World Population Prospects 2022 projected that India will overtake China as the world's most populous country in 2023.

• With 1,426 million, China is the most populous country in the world in 2022, and India has a population of 1,412 million.
• On November 15, 2022, the global population will reach 8 billion which is more than three times the population of 2.5 billion in 1950.
• According to UN forecasts, India's population will reach 1,668 million by 2050, greatly above China's falling population of 1,317 million.
• By 2037, Central and Southern Asia is likely to become the world's most populous region.
• According to the most recent UN projections, the world's population may reach 8.5 billion people in 2030, 9.7 billion in 2050, and 10.4 billion in 2100.
• According to the report, the global life expectancy at birth decreased to 71 years in 2021, from 72.8 years in 2019.
• The global population is growing at its slowest rate since 1950, having fallen under one percent in 2020.
• World Population Prospects 2022:
  • It is the 27^th edition of official United Nations population estimates and projections.
  • It provides population estimates from 1950 to the present for 237 countries or areas.

Topic: Reports and Indices

3. India can increase its manufacturing exports to $1 trillion by FY28 as per Bain & Company.

• A report prepared by Bain & Company said that India’s export contribution to global trade could change. 
• India is the world’s 6^th largest manufacturing economy. Its export contribution to global trade is only 1.6%.
• India’s manufacturing exports for FY22 recorded a growth of over 40% over the previous year.
• They reached $418 billion for FY22. They stood at $290 billion in FY21.
• India’s manufacturing exports for FY22 were higher than the pre-pandemic peak of $328 billion in FY19, stated the report.
• The report is titled The Trillion-Dollar Manufacturing Exports Opportunity for India.
• Bain & Company is an American management consulting company.

Topic: Corporates/Companies

4. Directorate of Revenue Intelligence (DRI) has found Customs duty evasion of around ₹4,389 crore by Oppo Mobiles India.

• Finance Ministry said revenue intelligence officers found duty evasion by Chinese smartphone maker Oppo by misdeclaration of imports.
• A show-cause notice has been issued to Oppo India demanding Customs duty amounting to ₹4,389 crores.
• Oppo Mobiles India Private Limited is a subsidiary of Oppo China. It deals in brands of mobile phones, including Oppo, OnePlus and Realme.
• Directorate of Revenue Intelligence works under the Central Board of Indirect Taxes & Customs, Ministry of Finance, Government of India.

Topic: Indian Economy/Financial Market

5. Consumer Price Index based retail inflation eased to 7.01% in June 2022 compared to 7.04% in May 2022.

• CPI-based retail inflation has remained over 7% for the third consecutive month.
• It has for the sixth successive month remained above the upper limit (6%) of targeted range of 2-6%.
• Inflation eased marginally mainly due to the easing of prices in the "Food & Beverages" section.
• Inflation in the food basket came down from 7.84% in May 2022 to 7.56% in June 2022.
• The inflation in vegetables eased from 18.26% in May 2022 to 17.37% in June 2022.
• Inflation has remained above RBI’s six percent upper range because of increasing global commodity prices due to the Russia-Ukraine war and high crude oil prices.

Topic: Appointments

6. FSIB has recommended G Rajkiran Rai for the position of Managing Director at NaBFID.

• This is the first ever recommendation made by newly created Financial Services Institutions Bureau (FSIB).
• G Rajkiran Rai is the former Managing Director & CEO of Union Bank of India.
• National Bank for Financing Infrastructure and Development (NaBFID) is a newly created development finance institution (DFI).
• Government had earlier this year infused ₹ 20,000 crores into NaBFID.

Topic: Reports and Indices

7. According to a report by UNDP, impact of inflation on India’s poor would be negligible.

• The report is titled, ’Addressing the Cost-of-Living Crisis in Developing Countries’.
• In the report, UNDP assessed the impact of inflation, disruptions in the supply chain due to Ukraine crisis and Covid on cost of living.  
• UNDP took three poverty lines at $1.90 per day, $3.30 per day and $5.50 per day.
• In India, inflation will push 0% of the population below the poverty line of $1.90 per day.
• It will push just 0.02% of the population below the poverty line of $3.30 per day.
• Inflation will push just 0.04% of the population below the upper poverty line of $5.50 per day.
• As per the report, rising food prices and energy prices can overall push up to 71 million people into poverty globally.
• United Nation Development Program (UNDP) is the UN’s global development network that was founded in 1965. It is headquartered in New York.

Topic: MoUs/Agreements

8. SBICAP Ventures Ltd (SVL) has signed an MoU with Ministry of External Affairs.

• The MoU has been signed for the setting up of Trilateral Development Cooperation Fund (TDC Fund).
• SVL will act as the administrator-cum-advisor (Investment Manager) of the TDC Fund. It is a subsidiary of the State Bank of India (SBI).
• The TDC Fund will route India’s commitment of about Rs 175 crore to the Global Innovation Development Fund (GIP Fund).
• It will operate as a ‘Fund of Funds’ under the SEBI Alternative Investment Fund (AIF) Regulations.
• GIP Fund will be set up as AIF in partnership with Foreign, Commonwealth and Development Office (FCDO) under the India-UK Global Innovation Partnership (GIP).
• It will invest chiefly in Indian small and medium enterprises that tackle development challenges as per the objectives of GIP. 

Topic: Banking System

9. RBL Bank has partnered with India Mortgage Guarantee Corporation (IMGC).

• The partnership is to offer mortgage guarantee backed home loan products for salaried and non-salaried people.
• The partnership will also allow the bank to mitigate credit risks with IMGC’s expertise.
• RBL Bank is a Mumbai based Indian private sector bank. It was earlier known as Ratnakar Bank. R Subramaniakumar is its MD & CEO.
• India Mortgage Guarantee Corporation (IMGC):
  • It is the first Mortgage Guarantee Company of India. It started operation in 2014.
  • It is regulated by the RBI under the Mortgage Guarantee guidelines.

Topic: RBI

10. RBI has imposed ₹1.678 crore monetary penalty on Ola Financial Services Private Ltd.

• RBI has imposed the penalty for non-compliance with certain provisions of the Master Directions on Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC).
• RBI has imposed the penalty in the exercise of powers vested in it under Section 30 of the Payment and Settlement Systems Act, 2007.
• Section 30 of the Payment and Settlement Systems Act, 2007 deals with RBI’s power to impose fines.

Topic: Miscellaneous

11. Central government has nominated 29 non-official members to Board of Trade.

• These members come from large and small enterprises and different sectors in the Board of Trade.
• The new non-official members include Rajesh Gopinathan (CEO of Tata Consultancy Services), Sanjay Nayyar, Om Prakash Mittal, Pankaj Mahindroo, RS Sodhi and others.
• The tasks for the non-official members of the Board of Trade are given next.
  • Providing a platform to state governments and UTs for articulating state-oriented perspectives on trade policy
  • To act as a facilitator in implementation of District Export Hub events
  • Help states develop and pursue export strategies in line with national Foreign Trade Policy
  • Facilitate a mechanism for discussion on operationalisation of the trade infrastructure
  • Review policy instruments and procedure for imports and exports and suggest steps to rationalize use
• Secretaries of different departments, NITI Aayog CEO, Deputy Governor of RBI, and CBIC (Central Board of Indirect Taxes and Customs) chairman are official members of Board of Trade.
• Representatives of industry chambers are ex-officio members of Board of Trade.
• Board of Trade:
  • It is chaired by the Commerce and Industry Minister. It advises the government on policy measures to improve the country's foreign trade.
  • In 2019, Council of Trade Development and Promotion was merged with the Board of Trade.

Topic: Agriculture

12. Oilseeds production in India has remained stagnant at CAGR of 1.94% between 2011-12 and 2020-21.

• Global oilseeds production has seen compounded annual growth rate (CAGR) of 2.9% in the same period.
• There has been no growth in domestic production because of stagnant cultivation area, marginal improvement in crop yield and low seed replacement rate (SRR).
• As per a report, only about 15% of India’s total cropped area is sown with freshly obtained quality seeds every year. Rest is sown with farm-saved seeds.
• SRR is the percentage of area sown out of total cropped area in the season by using certified seeds other than farm-saved seeds. For oilseeds, SRR varies from 20% to 80%.

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