Banking Awareness of 15, 16 and 17 October 2024

Topic: Indian Economy/Financial Market

1. Based on the Wholesale Price Index (WPI), wholesale inflation increased from 1.31% in August to 1.8% in September.

• The price increase for vegetables was the primary cause of the inflation.
• The price increase of food goods and products is the main cause of September 2024's positive inflation rate.
• Food inflation increased dramatically last month, reaching 11.53% from 3.11% in August.
• Vegetable inflation was 48.73%, compared to (-) 10.01% in August.
• In September, the potatoes and onions experienced inflation at 78.13% and 78.82%, respectively.
• Compared to August's 0.67% deflation, the fuel and power sector saw a 4.05% deflation in September.

Topic: Banking/Financial/Govt Schemes

2. PM Gati Shakti National Master Plan’s district version has been launched for 27 aspirational districts.

• The district version of plan will cover over 750 districts in the next 18 months, according to Commerce & Industry Minister Piyush Goyal.
• PM GatiShakti National Master Plan has recently completed three years.
• On the occasion of three years of PM Gati Shakti, District Master Plan has been launched.
• The guidelines for preparing city logistics plans to help cities tailor their logistics planning have been launched by the Minister.
• Government had expanded the ambit of PM Gati Shakti to social infrastructure to map power distribution lines, schools, hospitals and others using the ‘Area Development Approach’ initiative.
• PM GatiShakti National Master Plan (PMGS-NMP) was launched on 13th October 2021.
• It was launched for providing multimodal connectivity infrastructure to various economic zones.
• On 21st October 2021, Cabinet Committee on Economic Affairs (CCEA) gave approval for the implementation of PM GatiShakti National Master Plan.

Topic: Indian Economy/Financial Market

3. India’s trade deficit reached a five-month low of $20.78 billion in September 2024.

• India’s merchandise trade deficit declined to a five-month low of $20.78 billion in September.
• The trade deficit has declined from $29.65 billion in August to $20.78 billion in September.
• Merchandise exports rose marginally to $34.58 billion in September from $34.41 billion in the year-ago period.
• Merchandise imports stood at $55.36 billion in September as compared to $54.49 billion in the last year.
• Services exports rose to $30.61 billion in September from $28.42 billion in the same period last year.
• Services exports stood at $30.69 billion in August, $28.43 billion in July, and $30.27 billion in June.
• The WTO expects trade volumes to grow by 2.6% in 2024 and 3.3% in 2025.
• The US, the UAE, the Netherlands, the UK and China were India’s major export destinations.

Topic: Indian Economy/Financial Market

4. Retail inflation increased to its highest level in 2024.

• Retail inflation reached nine-month high level of 5.5% in September.
• Consumer Price Index (CPI) – based retail inflation increased to a 9-month high of 5.5% in September against 3.7% in August.
• This has been caused by a sharp increase in food prices and an unfavourable base effect.
• According to statistics ministry, the increase in inflation rate for the September is likely to be due to high base effect and weather conditions.
• Data showed that vegetable inflation increased to 36% in September.
• This was mainly on account of increase in the prices of tomato and onion with some increase in potato prices.
• According to experts, food and beverages inflation is likely to be above the 8% mark in October.
• Onion and tomatoes prices have touched 11-month and 14-month high, respectively.
• Core inflation (headline inflation minus food and fuel inflation) increased to an eight-month high level of 3.5% in September from 3.1% in May.

Topic: Regulatory Bodies/Financial Institutions

5. Central Bank of India’s stake purchase in Future Generali India Insurance and Future Generali India Life Insurance has been approved by CCI.

• The acquisition of 24.91% shareholding in Future Generali India Insurance Company Ltd by Central Bank of India, a public sector bank, has been approved by Competition Commission of India (CCI).
• The acquisition of 25.18% shareholding in Future Generali India Life Insurance Company Ltd by Central Bank of India has also been approved by CCI.
• Central Bank of India is acquiring stakes in both entities under Insolvency and Bankruptcy Code (IBC) process.
• Central Bank of India is a scheduled commercial bank.
• Future Generali India Insurance Company Ltd (FGIICL) is a general insurance company.
• Future Generali India Life Insurance Company Ltd (FGILICL) is a life insurance company.

Topic: Appointments

6. Manoj Kumar Dubey assumed charge as CMD & CEO of IRFC.

• Manoj Kumar Dubey appointed as its Chairman & Managing Director (CMD) and Chief Executive Officer (CEO) of the Indian Railway Finance Corporation (IRFC).
• Indian Railway Finance Corporation (IRFC) is a schedule a miniratna public sector enterprise under the Ministry of Railways.
• Prior to this, Dubey was serving as Director (Finance) and Chief Financial Officer of Container Corporation of India (Concor).
• IRFC has total assets of Rs 50,755 crore and over 51 lakh shareholders - the highest for any company in India.
• With a market capitalisation of over Rs 2 lakh crore, IRFC ranks among the top public sector companies and undertakings in the country.
• Established in 1986, IRFC raises funds from both domestic and international markets to meet the extra budgetary resource (EBR) requirements of Indian Railways.

Topic: Awards and Prizes

7. 2024 Nobel Economics Prize awarded to Daron Acemoglu, Simon Johnson & James A. Robinson.

• They have been awarded 2024 Nobel Prize in Economics “for studies of how institutions are formed and affect prosperity.”
• The award is for his groundbreaking research on how institutions shape prosperity.
• The Royal Swedish Academy of Sciences praised his work for highlighting the role of strong social institutions in promoting economic growth, reducing inequality and improving the rule of law.
• The award recognizes his contributions to understanding how institutional quality affects global development.
• The economics award was created in 1968 by Sweden’s central bank.
• The award is officially known as the 'Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel'.
• The prestigious award carries a cash prize of 11 million Swedish Krona (US$1.1 million).
• In 2023, Claudia Goldin won the Nobel Economics Prize.
• In 1969, the first winners of this award were Ragnar Frisch and Jan Tinbergen.

Topic: Agriculture

8. Cabinet approved MSP for rabi crops for the 2025-26 season.

• The Union Cabinet has approved new Minimum Support Prices (MSP) for Rabi crops for the upcoming marketing season 2025-26.
• This decision has been taken to ensure better income for farmers and to promote the cultivation of key crops during the Rabi season.
• The MSP for wheat has been increased by Rs 150 per quintal. This brings the new price to Rs 2,425 per quintal.
• For mustard, the MSP has been raised by Rs 300. Its price has increased from Rs 5,650 to Rs 5,950 per quintal.
• Mustard is widely grown in states like Rajasthan, Haryana, and Madhya Pradesh.
• For gram, safflower and barley, there is an increase of Rs 210 per quintal, Rs140 per quintal and Rs130 per quintal respectively.
• The expected margin over all-India weighted average cost of production is 105% for wheat, followed by 98 for rapeseed & mustard.
• This increased MSP of rabi crops will ensure remunerative prices to the farmers.

Topic: Summits/Conferences/Meetings

9. Islamabad hosted 23rd SCO Meeting on 16 October.

• Islamabad hosted 23rd Meeting of the Shanghai Cooperation Organisation (SCO) Council of Heads of Government (CHG) on October 16.
• The meeting mainly focused on strengthening trade and economic cooperation among member states.
• The SCO CHG meeting is held annually. It focusses on the trade and economic agenda of the organisation.
• At the 23rd Meeting of the SCO, Indian delegation was led by External Affairs Minister S. Jaishankar.
• Prime Minister Shehbaz Sharif chaired the CHG meeting.
• Other attendees were Chinese Premier Li Qiang, Russian Prime Minister Mikhail Mishustin, Belarusian Prime Minister Roman Golovchenko, and the heads of government from Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan.
• First Vice President Mohammad Mokhber represented Iran.
• Mongolia’s Prime Minister Oyun-Erdene Luvsannamsrai attended as an observer.

Topic: Awards and Prizes

10. Odisha won Best State Award at 5th National Water Awards 2023.

• On October 14, the 5th National Water Awards 2023 were announced in New Delhi.
• In the best state category, Odisha bagged the first prize, while Uttar Pradesh got the second position.
• Gujarat and Puducherry jointly secured the third position.
• On October 22, the 5th National Water Awards 2023 will be presented by President Draupadi Murmu in New Delhi.
• The awards will be presented to a total of 38 winners, including joint winners in nine categories.
• Each award winner will receive a citation and a trophy as well as a cash prize in some categories.
• To create awareness among people about the importance of water and to motivate people to adopt best water use practices, the 1st National Water Awards were instituted in 2018 by the Department of Water Resources, River Development and Ganga Rejuvenation.
• The National Water Awards (NWA) focus on the good work and efforts done by individuals and organizations across the country towards realizing the Government’s dream of a ‘Water Prosperous India’.
• These awards are meant to create awareness among people about the importance of water and motivate them to adopt best water use practices.

Read Banking Awareness PDF -15, 16 and 17 October 2024