Banking Awareness of 12 and 13 March 2025

Topic: Indian Economy/Financial Market

1. Finance Ministry has authorized Power Finance Corporation to issue Zero Coupon Bonds (ZCB). 

• Corporation can raise up to ₹10,000 crore through this bond issuance. 
• Zero Coupon Bonds do not pay periodic interest. They are sold at a discount, and the full face value is paid at maturity. 
• These bonds are sold with a ₹49,546 discount for a ₹1 lakh face value. 
• Investors will pay ₹50,454 upfront. At maturity, they will receive ₹1 lakh. 
• The bonds will mature in 121 months, which is 10 years and 1 month. 
• They must be issued by March 31, 2027. The total number of bonds issued is limited to 10 lakh. 
• Zero Coupon Bonds offer a fixed return. They are less risky than stocks or variable-rate bonds. 
• These bonds help with portfolio diversification for growth-focused investors. 
• The bonds are exposed to interest rate risk if sold before maturity. Their value decreases when interest rates rise. 
• The ZCB is taxed based on the gains made. The tax depends on how long the bonds are held. 
• If held for less than 12 months, the gains are subject to short-term capital gains tax. 
• If held for more than 12 months, the gains are subject to a 12.5% long-term capital gains tax.

Topic: Reserve Bank of India

2. A framework for recognizing self-regulatory organizations (SROs) in the account aggregator (AA) ecosystem has been released by RBI. 

• Applications for SRO-AA recognition has also been invited by RBI.    
• A SRO-AA must be established as a not-for-profit company under Section 8 of the Companies Act, 2013. 
• Applicants must demonstrate the ability to achieve a net worth of ₹2 crore within one year of recognition or before starting operations. 
• After recognition, the SRO-AA must maintain the required net worth consistently. 
• The ownership of the SRO-AA must be diversified. 
• No single entity can own 10% or more of its paid-up share capital. 
• The SRO-AA must have at least 25 unique members, with an equal number from financial information providers (FIPs) and financial information users (FI-Us). 
• Applicants must have the necessary IT infrastructure and resources. 
• The SRO-AA shall operate with integrity and impartiality under the RBI’s oversight. 
• The SRO-AA must remain independent and free from influence by any one member or group. 

Topic: Banking System

3. ₹12,700 crore worth Jaiprakash loans have been transferred by banks to NARCL.

• ₹ 12,700 crore worth stressed loans of Jaiprakash Associates Ltd (JAL) has been transferred to National Asset Reconstruction Company Ltd (NARCL).
• A consortium of 25 banks led by SBI has transferred this amount to NARCL, which is also known as bad bank.
• ₹1,905 crore cash will be given to banks as cash. NARCL would give ₹10,795 crore by issuing security receipts (SRs) to these banks.
• As on February 20, 2025, the total outstanding stood at over ₹55,493.33 crore.
• This included over dues and interest and penalties.
• Insolvency process of Jaiprakash Associates will continue.
• The deadline for Expression of Interest submission has been extended to March 25.
• In 2016, Jaiprakash Associates Ltd was categorized as a non-performing asset (NPA).
• In 2024, JAL was admitted to bankruptcy court.
• SBI, ICICI Bank, IDBI Bank, and Axis Bank are some lenders with high exposure to JAL.
• Srei Equipment Finance is one of the other non-banking lenders.
• June 9, 2025 is the last date for submission of resolution plans.

Topic: Appointments

4. Atul Kumar Goel has taken charge as Chief Executive of Indian Banks’ Association.

• He was MD and CEO of Punjab National Bank from February 2022 to December 2024.
• He served as chairman of IBA for two terms in 2021-22 and 2022-23.
• Sunil Mehta is predecessor Goel at IBA. He was MD & CEO of PNB and Chairman of the Association (2018-19).
• He was Chief Executive of Indian Banks’ Association from January 2020 till September 2024.
• Atul Kumar Goel has worked in four Banks, Allahabad Bank (now Indian Bank), Union Bank of India, UCO Bank and PNB.
• Indian Banks’ Association (IBA):
  • It was formed in September 1946. It is headquartered in Mumbai.
  • It is an association of banks and other entities in India’s banking ecosystem.

Topic: Agriculture

5. India's agricultural production reached record high in 2024-25.

• The Second Advance Estimates of production of Major Agricultural Crops for the year 2024-25 have been released by the Ministry of Agriculture and Farmers’ Welfare.
• The estimated Kharif food grain production is approximately 664 lakh metric tonnes, while the Rabi food grain production is estimated to be more than 645 lakh metric tonnes.
• Kharif rice production is estimated to exceed 1,206 lakh metric tonnes, up from about 1,132 LMT in 2023-24.
• Rabi rice production is estimated at 157.58 lakh tonnes.
• The production of tur and gram is estimated at 35.11 lakh metric tons and 115.35 lakh metric tons, respectively.
• Wheat production is estimated at 1154.30 lakh tonnes, which is 21.38 lakh tonnes higher than last year's production of 1,132.92 lakh tonnes.
• The production of millet (kharif) is estimated at 137.52 lakh tonnes, and that of millet (rabi) is estimated at 30.81 lakh tonnes.
• Cotton production is estimated at 294.25 lakh bales (of 170 kg each), and sugarcane production is estimated at 4350.79 lakh tonnes.

Topic: Awards and Prizes

6. Jayshree Vencatesan became the first Indian to win the Ramsar Award for ‘Wetland Wise Use’.

• Jayshree Vencatesan is the first Indian to be honoured with the Ramsar Award for 'Wetland Wise Use'.
• She is one of the 12 women changemakers in the world of wetlands.
• Jayashree is famous for her dedication to preserving India’s wetlands, particularly the Pallikaranai Marsh in Chennai.
• Jayashree has been recognised under the 'wise use of wetlands' category.
• She has not only safeguarded wetlands but also mentored a new generation of female conservationists.

Topic: MoUs/Agreements

7. Airtel and Musk's SpaceX have partnered to bring Starlink high-speed internet to India.

• On 11 March, an agreement has been signed by telecom major Airtel with Elon Musk’s SpaceX to bring Starlink’s high-speed internet services to its customers in India.
• This is the first agreement to be signed in India, subject to SpaceX receiving authorization to sell Starlink in India.
• Airtel and SpaceX will explore offering Starlink equipment in Airtel’s retail stores and providing Starlink services via Airtel to business customers.
• They will also look for opportunities to connect communities, schools, and health centers, among others, even in the most rural parts of India.
• This collaboration enhances the ability to bring world-class, high-speed broadband to even the most remote parts of India, ensuring that every individual, business and community has reliable internet.
• Starlink provides high-speed, low-latency internet to users all over the world.
• As the world's first and largest satellite constellation using low Earth orbit, Starlink provides broadband internet capable of supporting streaming, online gaming, video calls, and more.
• Starlink is a satellite internet constellation operated by Starlink Services, LLC, a subsidiary of SpaceX.
• In 2019, SpaceX began launching Starlink satellites.

Topic: Reserve Bank of India

8. Nationwide campaigns to boost financial literacy launched by the RBI and the National Centre for Financial Education (NCFE).

• With the aim of promoting financial literacy, various financial literacy programmes have been launched which are as follows:
• Financial Literacy Centres (FLCs): Leading banks to set up FLCs to conduct special camps for various target groups.
• “RBI Kehta Hai” Campaign: A multi-media, multilingual initiative promoting financial literacy and safe banking practices.
• Mass Media Campaign: Organizing to spread financial awareness among all age groups.
• Financial Awareness Messages (FAME): A booklet developed by RBI with standardized content for various target groups, including senior citizens, to meet the requirements of the general audience for financial awareness on important banking aspects.
• National Centre for Financial Education (NCFE) & Centre for Financial Literacy (CFL) Initiative: Organizing Financial Education (FE) programs for persons below 18 years and above 60 years of age.
• In addition, NCFE is developing and implementing the National Strategy for Financial Education (NSFE) in consultation with financial sector regulators.
• The aim of this move is to empower various sections of the population through various financial awareness programs and initiatives by equipping them with the knowledge, skills, attitudes, and behaviors required to manage their finances effectively and plan for a secure future.

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