Banking Awareness of 13, 14, 15 and 16 July 2025

Topic: RBI

1. Reserve Bank of India (RBI) has imposed a fine of ₹4.88 lakh on HDFC Bank.

• This was due to a violation of the rules under the ‘Master Direction – Foreign Investment in India’.
• The breach occurred while HDFC Bank was sanctioning a term loan.
• RBI reviewed the case and considered HDFC Bank’s response.
• It concluded that the violation was confirmed and a penalty was justified.
• Shriram Finance was also fined ₹2.70 lakh by the RBI.
• The penalty was for routing loan repayments through a third-party account.
• Borrowers were expected to make payments directly to the company.
• RBI clarified that the penalties are related to failures in regulatory compliance.
• These actions do not question the validity of agreements made with customers.
• HDFC Bank:
  • HDFC Bank is India's largest private sector bank. It is headquartered in Mumbai.
  • It was founded in 1994. The CEO of HDFC Bank is Sashidhar Jagdishan.

Topic: Appointments

2. Raghavendra Srinivas Bhat has been appointed as the Managing Director and CEO of Karnataka Bank.

• His term started on July 16, 2025. His term will last for three months or until a permanent appointment is made.

• The appointment has been approved by the Reserve Bank of India.
• Bhat will also be designated as a Key Managerial Personnel from July 16, 2025.
• He took charge as the Chief Operating Officer (COO) of the bank on July 2, 2025.
• Bhat started his career at Karnataka Bank in 1981 as a clerk.
• His experience spans multiple banking functions.
• Chairman P Pradeep Kumar praised Bhat’s experience and leadership.
• Karnataka Bank is a Scheduled Commercial Bank based in Mangaluru, Karnataka. It is a private sector bank. It was founded in 1924.

Topic: Indian Economy/Financial Market

3. India’s retail inflation fell to 2.10% in June 2025.

• This is the lowest level recorded since January 2019.

• CPI inflation had stood at 2.82% in May 2025.
• The drop represents a month-on-month decline of 72 basis points.
• It marks the weakest annual inflation rate in over six years.
• Food inflation in June 2025 was down by 205 basis points compared to June 2024.
• The decline in inflation is mainly due to a favourable base effect.
• It is also driven by easing prices in several food categories.
• Vegetables, pulses, meat and fish, cereals, sugar, milk, and spices saw notable price drops.
• The data was released by the Ministry of Statistics and Programme Implementation.
• India's wholesale inflation rate fell to -0.13% in June 2025 due to a fall in food and fuel prices.
• India’s Wholesale Price Index (WPI) inflation declined to (-) 0.13% in June 2025, compared to the same month last year.
• According to data released by the Ministry of Commerce and Industry, this decline is mainly due to the reduction in prices of food articles, mineral oils, manufacturing basic metals, crude petroleum, and natural gas.
• Since March 2025, wholesale price index-based inflation has been declining steadily, and in May it reached a 14-month low of 0.39%.
• Food inflation was recorded at -0.26%, while primary articles saw a deeper contraction of -3.38%.
• The fuel and power category registered a deflation of -2.65%, further pulling down the overall index.
• Inflation in manufactured products eased to 1.97%, indicating a broader trend of price softening.
• The WPI reflects wholesale-level price changes, as opposed to the CPI, which measures consumer-level price changes.

Topic: Indian Economy/Financial Market

4. India’s goods exports in June 2025 remained unchanged at $35.14 billion.

• Weakness in petroleum and gems & jewellery exports affected overall performance.

• The trade deficit narrowed to $18.78 billion, the lowest level in four months.
• Imports declined by 3.71% year-on-year to $53.92 billion.
• This was due to a significant fall in crude oil and gold imports.
• The trade deficit in June 2025 was 6.2% smaller than the $20.03 billion recorded in June 2024.
• Between April and June 2025-26, goods exports rose by 1.92% to $112.17 billion.
• Imports during the same period increased by 4.24% to $179.44 billion.
• This pushed the quarterly trade deficit up to $67.26 billion.
• The trade deficit in the same quarter last year was $62.10 billion.
• Combined exports of goods and services in Q1 2025-26 were estimated at $210 billion.
• This represents a 6% increase over the same period last year.
• Commerce Secretary Sunil Barthwal said India is likely to surpass last year’s export total.
• Services export data is provisional and will be revised after the RBI’s official release.
• June 2025 saw export growth in electronics, engineering, pharmaceuticals, seafood, meat, dairy, poultry, tea, and ready made garments.
• India’s top five export destinations in June 2025 were the US, UAE, Netherlands, China, and the UK.
• China remained the largest source of India’s imports.
• Russia, UAE, the US, and Saudi Arabia followed as major import partners.

Topic: Indian Economy/Financial Market

5. India’s unemployment rate remained steady at 5.6% in June 2025.

• This was reported by the Statistics Ministry.
• Unemployment rate in rural areas declined for both men and women in June 2025.
• In urban areas, the unemployment rate increased for men.
• For urban women, the unemployment rate stayed the same.
• The decline in rural unemployment is linked to a rise in self-employment.
• Fewer people in rural areas also reported being unemployed.
• Seasonal factors likely encouraged more individuals to engage in informal, self-driven work.
• This includes petty trade, repairs, and small services.
• The data was collected from a survey of over 89,000 households.
• The survey covered about 3.8 lakh individuals.
• Labour Force Participation Rate (LFPR) for people aged 15 and above dropped to 54.2% in June. It was 54.8% in May.
• Rural LFPR was 56.1% in June. Urban LFPR stood at 50.4%.
• The Worker Population Ratio (WPR) was 53.3% in rural areas.
• It was 46.8% in urban areas. Overall WPR for the country declined to 51.2% in June.
• In May, the WPR had been slightly higher at 51.7%.
• Rural women experienced a sharper decline in both LFPR and WPR.
• This was due to fewer unpaid helpers working in agriculture.
• Many rural women reported doing domestic duties instead of farm work.
• This was especially seen in higher-income rural households.
• The share of rural women working in agriculture fell to 69.8% in June. It was 70.2% in May.
• The shift may be due to less demand for female agricultural labour.
• Unemployment Rate is percentage of individuals unemployed among persons in the labour force.
• LFPR is percentage of persons in labour force (working or seeking or available for work) in the population.
• WPR is percentage of employed persons in the population.

Topic: Banking/Financial/Govt Schemes

6. 10^th Anniversary of the Skill India Mission celebrated on July 15, 2025.

• The celebration coincides with World Youth Skills Day.

• The mission was launched by Prime Minister Narendra Modi in 2015.
• It aims to equip young people with relevant skills for jobs, entrepreneurship, and sustainable livelihoods.
• Skill India is a national initiative designed to boost youth employability.
• It offers structured training through various programs.
• Since 2015, over 16 million individuals have been trained under Pradhan Mantri Kaushal Vikas Yojana (PMKVY).
• Training has been provided in 38 different sectors.
• Women account for 45 percent of the trained candidates.
• A significant number of trainees are from SC, ST, and OBC communities.
• Training covers a wide range of fields.
• These include manufacturing, construction, handicrafts, healthcare, IT, electronics, and retail.
• Government efforts have led to improved job-readiness among college graduates.
• The percentage rose from 34 percent in 2014 to over 51 percent in 2024.
• India has a young population, with nearly 65 percent under the age of 35.
• World Youth Skills Day is observed every year on July 15.
• The 2025 theme focuses on empowering youth through AI and digital skills.

Topic: Taxation

7. India's gross direct tax collections increased 274% in 10 years.

• During last 10 years, gross direct tax collections in India have recorded 274% growth.

• Between 2013-14 and 2024-25, refunds issued by the tax department have have grew by 474%.
• Refunds issued to taxpayers have increased from Rs 83,008 crore in FY14 to Rs 4.76 lakh crore in FY25.
• During the same period, the taxpayer base has increased by 133%.
• A decrease from 93 days in 2013 to just 17 days in 2024 has been recorded in the average time of issuing tax refunds.
• The reason for this transformation in tax administration over the past decade is adoption of digital infrastructure.
• This adoption of digital infrastructure includes end-to-end online filing and faceless assessments.
• These alllow faster and more accurate processing of income tax returns.
• A growth from 11.5% in FY 2013-14 to 17.6% in FY 2024-25 has also been seen in the proportion of refunds issued relative to gross direct taxes collected.

Topic: Awards and Prizes

8. The 2025 UN Population Award bestowed upon Varsha Deshpande for promoting gender equality.

• Indian women’s rights activist Varsha Deshpande has been awarded the 2025 United Nations Population Award in the individual category, recognizing her commitment to gender justice and reproductive rights.
• The announcement was made by the United Nations in New York on July 10, 2025, during the 40th edition of the globally recognized award.
• Ms. Deshpande serves as the secretary of the Maharashtra-based Dalit Mahila Vikas Mandal, an organization she founded in 1990.
• She has been acknowledged for her 35-year-long advocacy against gender-based discrimination and sex-selective practices.
• The United Nations praised her leadership in community-driven advocacy and reforms under India's Pre-Conception and Prenatal Diagnostic Techniques (PCPNDT) Act, aimed at curbing the declining child sex ratio.
• Initiatives taken through her organization include the prevention of child marriage, securing rights for women in the informal sector, and promoting joint property ownership.
• The UN Population Award, first introduced in 1981, honors outstanding contributions in the field of population and reproductive health.
• It includes a gold medal, a diploma, and a monetary prize, awarded annually to both individuals and institutions.