Banking Awareness of 12 and 13 July 2024

Topic: Indian Economy/Financial Market

1. For May 2024, the Quick Estimates of IIP with base 2011-12 stands at 154.2 against 145.6 in May 2023.

• The IIP growth rate for May 2024 over May 2023 is at a 7-month high of 5.9 %. The IIP growth rate in May 2023 was 5.7 %. 
• The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for May 2024 stand at 136.5, 149.7 and 229.3 respectively.
• The growth rates of Mining, Manufacturing and Electricity sectors for May 2024 over May 2023 are 6.6 %, 4.6 % and 13.7 % respectively.
• In May 2024, overall manufacturing growth fell to 4.6%. The 13.7 per cent growth in electricity stood at seven-month high level.
• As per Use-based classification, the indices stand at 160.9 for Primary Goods, 105.2 for Capital Goods, and 160.8 for Intermediate Goods for May 2024.
• The indices stand at 185.1 for Infrastructure/ Construction Goods for May 2024.
• The indices for Consumer durables and Consumer non-durables stand at 129.8 and 153.3 respectively for May 2024.
• For April-May 2024, IIP grew 5.4%. This was higher than 5.1% in April-May 2023.
• Within the manufacturing sector, the top three positive contributors to the growth of IIP for May 2024 are basic metals (7.8%), pharmaceuticals, medicinal chemical and botanical products (7.5%), and electrical equipment (14.7%).
• Based on use-based classification, top three positive contributors to the growth of IIP for May 2024 are Primary goods, Consumer durables and Infrastructure/Construction goods.

Topic: Regulatory Bodies/Financial Institutions

2. NABARD has launched a ₹750-crore agri fund, ‘Agri-SURE’ for start-ups and rural enterprises.

• The fund was announced by Nabventures, a subsidiary of NABARD with an initial corpus of ₹750 crore.
• The fund will support approximately 85 agri start-ups with investment sizes of up to ₹25 crore each by the end of its term.
• Start-ups will be provided direct equity support as well as support through investments in sector-specific, sector-agnostic and debt alternative investment funds (AIFs).
• NABARD and the Ministry of Agriculture will contribute ₹250 crore each for the fund. The rest will be contributed by other institutions.
• National Bank for Agriculture and Rural Development (NABARD) also launched the AgriSURE Greenathon 2024.
• The hackathon’s goal is to address three key problems: Smart Agriculture on a Budget, Turning Agri-Waste into Profitable Business Opportunities and Tech Solutions Making Regenerative Agriculture Remunerative.

Topic: Banking System

3. State Bank of India has launched an online loan facility against mutual fund units.

• This facility is available through its internet banking and YONO App.
• The loan facility is available for mutual fund (MF) scheme of all asset management companies (AMCs) registered with CAMS.
• Customers can avail loans from their homes through a 100% paperless and 24X7 available digital process.
• The loan against MF facility was previously available to loans against SBI Mutual Fund schemes only.
• It was available only through branches and required physical visits by customers.
• SBI has become the first public sector bank (PSB) to offer an end-to-end digital loan on mutual fund (MF) schemes.

Topic: Reports and Indices

4. NITI Aayog released the SDG India Index 2023-24.

• As per the NITI Aayog's SDG India Index 2023-24, India's overall Sustainable Development Goal (SDG) score has improved to 71 in 2023-24 from 66 in 2020-21.
• It has improved due to the progress made in poverty reduction, economic growth, and climate action.
• The scores for States now range from 57 to 79, while UTs score between 65 and 77.
• Uttarakhand and Kerala emerged as top-performing states with a score of 79 on this Index. It is followed by Tamil Nadu with a score of 78, and Goa comes next with a score of 77.
• Bihar (57), Jharkhand (62), and Nagaland (63) were the worst-performing states in this year's index.
• Among the union territories, the top five performers were Chandigarh, Jammu and Kashmir, Puducherry, Andaman & Nicobar Islands, and Delhi.
• Between 2018 and 2023-24, Uttar Pradesh followed by J&K, Uttarakhand, Sikkim, Haryana, Assam, Tripura and Punjab were the fastest progressing states.
• Punjab, Manipur, West Bengal, and Assam recorded the highest increase of 8 points as compared to 2020-21 scores.
• The SDG India Index give a ranking to states and UTs on 113 indicators aligned to the Ministry of Statistics and Programme Implementation’s National Indicator Framework (NIF).
• The SDG India Index computes goal-wise scores on the 16 SDGs for each state and UT.

Topic: Indian Economy/Financial Market

5. India’s retail inflation increased to 5.1% (5.08%) in June 2024 from 4.75% in the previous month.

• This was mainly due to rising food prices. Food inflation nearly doubled YoY. Food inflation increased to 9.55% in June 2024.
• In June, the Consumer Price Index (CPI)-based inflation rate was 5.08% year over year, according to official statistics that was released on July 12.
• The data indicates that the rates of inflation in rural and urban areas were 5.66% and 4.39%, respectively.
• The increase in food costs is still a major concern.
• Monthly increases were observed in a number of food categories, including cereals, meat, fish, eggs, dairy products, oils, fats, fruits, vegetables, pulses, sugar, spices, and prepared snacks, according to government data.
• This rise in June 2024 comes after a period of easing inflation. In May 2024, a 12-month low inflation of 4.75% was recorded.
• The data was gathered from 1,181 villages and 1,114 urban markets in all states and union territories.
• It offers a complete picture of price trends throughout India.
• The next CPI data release is scheduled for August 12, 2024. This data release will be for the month of July 2024.

Topic: Indian Economy/Financial Market

6. Government hiked EPF annual interest rate to 8.25% for FY 2024-25.

• The Union Finance Ministry has approved the proposal to increase the EPF annual interest rate to 8.25% from 8.15%.
• The rate revision decision will benefit millions of EPF members across the country.
• Employees Provident Fund Organization (EPFO) has also informed that the revised EPF interest rates have been disbursed to retiring members as part of their final PF settlements.
• The rate of interest for EPF members is not declared quarterly.
• Employees' Provident Fund Organization (EPFO) is responsible for the regulation and management of provident funds in India.
• On October 1, 2014, the Government of India launched a Universal Account Number for employees covered by EPFO.

Topic: Reports and Indices

7. India’s population will start shrinking in 38 years: UN Report.

• According to the United Nations (UN) World Population Prospects report, India's population is likely to reach 1.70 billion by 2062.
• Currently, India is the most populous country in the world. India’s population will hit its peak after 38 years.
• India's population will start declining between January and July 2062.
• In 2063, India’s population will decline by about 115,000. In 2064, this number would increase to 437,000 and 793,000 in 2065.
• At present, India is the most populous country in the world, with 1.451 billion people. It is followed by China at 1.419 billion and the United States at 345 million.
• By 2054, India and China would retain their positions, but Pakistan would overtake the United States to become the third most populous country.
• The total population would start declining in 2083, at around 10.2 billion. Currently, the global population is around 8.16 billion.
• Between 2024 and 2054, Angola, Democratic Republic of Congo, Niger, and Somalia will record the highest jump in their populations.

Topic: Miscellaneous

8. Adani Group became major sponsor of Team India at Paris Olympics.

• On July 10, Gautam Adani, chairman of the Adani Group, announced that the group will sponsor the Indian team heading to Paris for the 2024 Olympic Games.
• As the Indian contingent is in the final stages of its preparations for the 2024 Olympics, the Adani Group has pledged its full support to the country’s champions through a campaign themed #DeshkaGeetAtOlympics.
• The Indian athletes are training hard before leaving for Paris for the Olympic Games to be held from July 26 to August 11.
• India had won a record 7 medals in the Tokyo 2020 Olympics.

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