Banking Awareness of 16, 17 and 18 March 2025

Topic: Indian Economy/Financial Market

1. Wholesale Price Index (WPI) inflation for producers increased to 2.4% in February.

• This is a slight increase from 2.3% of January. The main reasons for rise are believed to be increased prices in food manufacturing, textiles, non-food items, and other manufacturing. 
• Consumer Price Index (CPI)-based retail inflation declined to 3.6% in March.  This was a seven-month low level.
• Both WPI and CPI have recorded a decline in food prices. WPI food articles declined by -2.05%.
• WPI food inflation declined to 5.9% in February. This declined from 7.5% in January.
• This decline was because of fall in prices of food items, particularly vegetables. 
• Non-food manufacturing inflation increased to a two-year high of 1.3%. 
• As per ICRA’s projections, WPI inflation for March 2025 will be close to around 2.3% for FY2025.

Topic: Taxation

2. Advance tax collections for 2024-25 increased by more than 14%.

• The growth in advance tax collections was mainly led by non-corporate sector, particularly personal income tax. 
• With this, government has achieved nearly 95% of the Revised Estimate (RE) for direct taxes. 
• The reason for increase in advance tax collections is believed to be growth in business and professional incomes.
• This is seen in higher advance tax collections from non-corporate taxpayers. 
• Corporate profitability has also improved. The non-corporate sector saw a higher growth rate. 
• Index of Industrial Production (IIP) grew by 5% in January.
• This was the highest growth in eight months.
• Sectors like capital goods, FMCG, healthcare, and pharmaceuticals contributed to this growth. 
• Over 4,000 listed companies reported a 6.2% revenue growth. 
• AI-driven systems by the Income Tax Department have improved compliance.
• By March 16, net tax collections had reached ₹21.27 lakh crore.
• Increased integration of GST and PAN data have lowered opportunities for non-disclosure or tax evasion.

Topic: Banking System

3. Between FY15 and FY24, scheduled commercial banks wrote off more than ₹16 lakh crore in loans. 

• In FY2014-15, the amount written off was around ₹59,000 crore. 
• This written off amount increased to more than ₹1.70 lakh crore by FY2023-24. 
• Non-performing assets (NPAs) are written off by banks after making full provisions. 
• These write-offs do not relieve borrowers of their debts. 
• Banks try to recover the amount through various legal actions. The methods include filing cases in civil courts and Debt Recovery Tribunals. 
• Around ₹9.26 lakh crore, or about 57% of the total write-offs, comes from large industries and services. 
• 29 companies, each owing over ₹1,000 crore, are classified as NPAs. 
• The total outstanding amount for these companies exceeds ₹61,000 crore. 
• As of now, 40% of board-level positions remain vacant in 12 public sector banks. There are 78 vacant director positions out of a total of 186. 

Topic: Appointments

4. Deena Mehta has been re-appointed as Fino Payments Bank’s Independent Director.

• Fino Payments Bank’s (FPB) Board of Directors have approved her re-appointment.
• She will be Independent Director of the Bank for the second term with effect from March 19, 2025 up to March 18, 2028.
• She is a Chartered Accountant. She has been associated with several reforms in capital markets.
• These reforms include setting up of BOLT system at BSE, setting up Central Depository Service, stream lining of Clearing Corporation BOISL.

Topic: Banking System

5. Flipkart Group’s super.money app is now the fifth largest UPI platform in India.

• Navi has overtaken Cred to become the fourth-largest UPI app. Cred has moved to sixth place. 
• Navi processed 261 million transactions in February. Super.money handled 139 million transactions. 
• Cred has remained stagnant at around 130 million transactions for almost a year. 
• PhonePe continues to lead the UPI payment space. It holds 47.5% market share in volume. 
• PhonePe also has 51% market share in value.
• Google Pay holds about 36% of the volume market share. It has 35% of the value market share. 
• Paytm has 6.7% of the volume market share. Paytm has 5.3% of the value market share. 
• NPCI planned to implement a market share cap by the end of 2024. 
• However, the deadline was postponed due to implementation challenges.

Topic: Indian Economy/Financial Market

6. India’s foreign exchange reserve crossed the 653 billion dollar mark.

• India’s foreign exchange reserves surged by 15.26 billion dollars and crossed the 653.96 billion dollar mark.
• Foreign currency assets rise by over 13.93 billion dollars to over 557.28 billion dollars.
• Foreign currency assets are a major component of the reserves.
• Gold reserves rose by 1 billion dollars, totalling over 74.32 billion dollars.
• Special Drawing Rights increased by 212 million dollars, reaching 18.21 billion dollars.

Topic: Indian Economy/Financial Market

7. India’s GDP growth is projected to surpass 6.5% in FY26: Moody’s Ratings.

• Moody’s Ratings in its latest Banking System Outlook – India report projected that India’s GDP growth will surpass 6.5% in FY26.
• Moody’s report highlighted that India’s economy is set to recover from a cyclical slowdown.
• The tax relief under the new tax regime is expected to boost consumption and contribute to overall economic expansion.
• Finance ministry’s Economic Survey has projected GDP growth in the 6.3%-6.8% range for the next fiscal.
• India’s real GDP growth had slowed to 5.6% in the July-September 2024.
• Loan growth across the banking sector is expected to moderate to 11-13% in FY26.
• Moody’s stated that India’s average inflation rate will decline to 4.5% in FY26 from 4.8% in the previous fiscal year.

Topic: Awards and Prizes

8. Muthoot Microfin won double gold at the SKOCH Awards 2025.

• A remarkable double victory has been achieved by Muthoot Microfin at the SKOCH Awards 2025, with two prestigious Gold Awards being secured.
• Muthoot Microfin is a leading microfinance institution committed to empowering women entrepreneurs.
• The honors were presented to Sadaf Saeed, CEO, Muthoot Microfin, by Sameer Kochhar, Chairman, Skoch Group, at a prestigious ceremony held in New Delhi.
• The company was recognized for excellence in digital financial inclusion and insurance solutions, including:
• Corporate Excellence – “Best Customer Application on Digital Financial Inclusion” for its groundbreaking Mahila Mitra initiative.
• With 1.73 million downloads and an impressive 4.2-star rating, Mahila Mitra has transformed the way women in rural India access financial services, making digital transactions seamless and secure.
• BFSI Awards – “Best Insurance Plan” for its Griha Raksha Insurance Plan which provided coverage to 2.66 million beneficiaries. This reinforces Muthoot Microfin’s commitment to financial security and social empowerment.

Topic: Banking/Financial/Govt Schemes

9. On 17 March, a dedicated app for the Prime Minister’s Internship Scheme (PMIS) launched by Finance Minister Nirmala Sitharaman.

• The aim of this app launch is to increase participation by facilitating easy registration for the second round of the scheme, which accepts applications till March 31.
• This app seeks to address the challenge of limited computer access by taking advantage of the widespread use of mobile phones, providing a user-friendly alternative for many applicants.
• Along with the launch of the app, a facilitation centre dedicated to PMIS will be set up in Kolkata.
• The centre is a joint effort between the Ministry of Corporate Affairs (MCA) and the Confederation of Indian Industry (CII).
• PMIS cells will be integrated by the CII, which operates 47 model career centres, to mobilize candidates and provide necessary guidance.
• Additionally, MCA is set to set up independent PMIS cells, in which the Ministry will provide the necessary space to involve more young individuals.
• In the first round of PMIS announced during Budget 2024-25, 28,141 candidates accepted internship offers.
• The second round, launched in January, aims to provide over 100,000 internship opportunities across over 300 companies to meet the ambitious target of 1.25 lakh internships for FY 2025.
• PMIS provides a monthly stipend of Rs 5,000 and a one-time grant of Rs 6,000 to meet contingency expenses.

Topic: Awards and Prizes

10. RBI has been selected for the Digital Transformation Award 2025 by Central Banking at London in UK.

• Reserve Bank of India has been awarded for its digital initiatives named Pravaah and Sarthi.
• The awards committee noted that these digital initiatives have reduced the use of paper-based submissions, thus transforming RBI’s internal and external processes.
• Sarthi initiative was launched in January 2023. It enables RBI’s employees to store and share documents securely.
• It has improved record management and increased the options for data analysis through reports and dashboards.
• Sarthi has helped the RBI boost operational efficiency by automating processes. It allows task and performance tracking, improved collaboration, and integration with other RBI systems.
• Pravaah was launched in May 2024. It was created for external users to submit regulatory applications to the RBI.
• PRAVAAH (Platform for Regulatory Application, Validation, and Authorisation) portal is a secure and centralized web-based platform for individuals and entities to apply online for various regulatory approvals from the RBI.

Read Banking Awareness PDF - 16, 17 and 18 March 2025