Banking Awareness of 18,19, 20 and 21 May 2025

Topic: Banking/Financial/Govt Schemes

1. Tamil Nadu has become the largest recipient of funds from the Central government’s rural employment program in FY26 so far.

• Uttar Pradesh and Bihar are the next biggest recipients.
• Tamil Nadu has been allocated over ₹2,900 crore under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
• Uttar Pradesh has received more than ₹2,100 crore.
• Bihar has been allocated around ₹2,000 crore under the scheme.
• Karnataka, an opposition-ruled state, is also among the top 10 recipients.
• In FY24, Tamil Nadu received about 38% of the total MGNREGS allocation.
• Uttar Pradesh received 22%, and Bihar received 30%.
• MGNREGS is a demand-based scheme. Funds are released continuously by the Ministry of Rural Development.
• The estimated budget for MGNREGS in FY26 is ₹86,000 crore.
• This amount is the same as the budget estimate for FY25 and the revised estimate for FY24.
• ₹86,000 crore was also allocated as the revised estimate for FY23-24.

Topic: RBI

2. RBI will soon release ₹20 banknotes in the Mahatma Gandhi (New) Series.

• These notes will feature the signature of the new RBI Governor, Sanjay Malhotra.
• The new ₹20 notes will have the same design and features as the current notes in circulation.
• The only change will be the new governor’s signature.
• All previously issued ₹20 notes will continue to be valid as legal tender.
• Sanjay Malhotra assumed office as the RBI Governor on December 11, 2024.
• He will serve for a three-year term.
• Legal tender refers to coins or banknotes that are recognized by law for paying debts or obligations.
• The RBI guarantees the legality of all its issued banknotes unless they are withdrawn from circulation.
• Rupee coins and ₹1 notes issued by the Indian government are also considered legal tender.
• Banknotes are printed at four currency presses in India.
• Two presses are operated by the Government of India, and two are run by the RBI.
• The government presses are in Nasik and Dewas. The RBI presses are located in Mysuru and Salboni.
• Coins are minted in four government-owned mints. These mints are in Mumbai, Hyderabad, Kolkata, and NOIDA.
• The RBI is responsible for distributing coins and banknotes according to Section 38 of the RBI Act.
• Select banks are authorized to establish currency chests for storing and distributing banknotes and coins.
• As of February 28, 2025, there are 2,691 currency chests across the country.

Topic: RBI

3. RBI has granted preliminary approval to Emirates NBD Bank PJSC to set up a Wholly Owned Subsidiary (WOS) in India.

• This approval makes Emirates NBD the third foreign bank to adopt the WOS model in India.
• The RBI approved the bank under the “Scheme for Setting up of WOS by foreign banks in India.”
• SBM Bank (India) Limited and DBS Bank India Limited were the first foreign banks to receive WOS licenses in 2017 and 2018, respectively.
• SBM Bank (India) began its WOS operations on December 1, 2018.
• DBS Bank India started its WOS operations on March 1, 2019.
• Emirates NBD Bank PJSC currently operates in India through branches in Chennai, Gurugram, and Mumbai.
• The bank has now received approval to convert its existing branches into a WOS.
• The RBI will issue a final license once the bank meets the necessary conditions for WOS operations.
• WOS branches will be treated the same as foreign bank branches in India for future branch expansion.
• Foreign banks are initially allowed to establish WOS only in India’s private sector, as per RBI regulations.
• Foreign banks may eventually be permitted to acquire controlling stakes in banks under restructuring, in a phased approach.

Topic: Miscellaneous

4. Rule 8 of SCRR amended to promote ease of doing business for brokers.

• Rule 8 of the Securities Contracts (Regulation) Rules (SCRR), 1957, was amended by the Department of Economic Affairs (DEA), Ministry of Finance, via Gazette Notification G.S.R. 318(E).
• Therefore, the amendment carried out on 19 May introduced a new provision in Rule 8, sub-rule (1).
• It states that no person shall be eligible to be elected as a member of the stock exchange if investments made by the member are construed as business, except when they involve client funds or client securities or create a financial liability on the broker.
• This amendment provides regulatory clarity to brokers to enhance the ease of doing business.
• A consultation paper was released in September 2024 to gather public feedback.
• Given the growth in the scale and interconnectedness of the financial sector, along with the evolving nature of brokers' businesses, the DEA found it necessary to reassess the existing safeguards in the rules.
• This review aimed to ensure that the original intent of the rules is upheld without restricting stakeholder activities.
• This amendment has been made after due deliberation on feedback received from stakeholders and is part of the Government's thrust on providing regulatory clarity and enhancing ease of doing business in the financial sector.
• This will ensure that market intermediaries continue to support the development of India's capital markets in a transparent and orderly manner.

Topic: Indian Economy/Financial Market

5. The 8^th anniversary of Government e-Marketplace (GeM) was recently celebrated.

• The event took place in New Delhi.
• GeM has become one of the top public e-procurement platforms in the world.
• It is known for its efficiency and large scale of operations.
• CEO Mihir Kumar spoke at the event.
• He emphasized GeM’s role in making procurement more accessible and affordable.
• Over 10 lakh Micro, Small, and Medium Enterprises (MSMEs) are now part of GeM.
• The platform has also included 1.3 lakh artisans and weavers.
• It supports 1.84 lakh women entrepreneurs.
• More than 31,000 startups are registered on the platform.
• GeM has over 1.64 lakh primary government buyers.
• There are 4.2 lakh active sellers using the platform.
• It offers more than 10,000 different product categories.
• GeM also provides access to over 330 kinds of services.
• Nearly 97% of all transactions on the platform are free from service charges.
• GeM has been adopted by all 36 States and Union Territories.
• In just eight years, the platform has transformed public procurement in India.
• It now functions as a powerful and inclusive digital marketplace for government buying.

Topic: RBI

6. The Reserve Bank of India (RBI) has imposed fines on Deutsche Bank AG and Yes Bank Limited.

• These penalties were issued due to violations of regulatory norms.
• Deutsche Bank was fined ₹50 lakh.
• The penalty was for not complying with RBI rules on reporting large credit exposures.
• Specifically, it failed to report credit data of certain borrowers to the CRILC system.
• CRILC stands for Central Repository of Information on Large Credits.
• Yes Bank was fined ₹29.6 lakh.
• This was for not following RBI guidelines on financial disclosures.
• The bank did not correctly report information on customer complaints.
• These errors appeared in its Annual Financial Statements for 2023–24.
• The penalties were issued under the Banking Regulation Act.
• RBI clarified that these actions are strictly for regulatory lapses.
• They do not question the validity of any customer transactions or agreements.

Topic: Miscellaneous

7. The Indian Institute of Foreign Trade (IIFT) will open its first international campus in Dubai, UAE.

• This was announced by the Ministry of Commerce and Industry.
• The move supports the National Education Policy (NEP) 2020.
• NEP 2020 emphasizes the global expansion of Indian higher education.
• The Dubai campus will be IIFT’s first overseas venture since its founding in 1963.
• IIFT currently has two main campuses in India.
• These are located in Delhi and Kolkata.
• The institute offers advanced postgraduate and doctoral programmes.
• Its focus areas include international business, trade policy, and economics.
• The Dubai campus has received official approval from key government bodies.
• These include the Ministries of Education, External Affairs, and Home Affairs.
• It also received clearance from the University Grants Commission (UGC).
• The Dubai centre is expected to start functioning soon.
• It will offer both full-time and executive education programmes.
• These courses will be designed for the regional market.
• They will also reflect global business trends and needs.

Topic: Indian Economy/Financial Market

8. India’s forex reserves rose by $4.5 billion.

• They reached a total of $690.62 billion for the week ending May 9, according to RBI data.
• Foreign currency assets increased by $196 million. Their total value stood at $581.37 billion.
• This reflects the impact of movements in global currencies like the euro, pound, and yen.
• Gold reserves grew slightly by $4.5 million. They now stand at $86.33 billion.
• Special Drawing Rights (SDRs) declined by $26 million. Their total value dropped to $18.53 billion.
• India’s reserve position with the IMF fell by $134 million. It now stands at $4.37 billion.
• Stronger forex reserves support the rupee. They give the RBI more flexibility to manage exchange rate volatility.
• A larger reserve base allows the RBI to release dollars during times of market stress. This helps limit sharp declines in the rupee.
• India’s external trade is showing strong growth.
• Total exports of goods and services rose 12.7% in April. They reached $73.80 billion, up from $65.48 billion a year earlier.
• Merchandise exports increased by 9.03%. They totaled $38.49 billion in April.
• Electronics and engineering goods led the growth in exports.
• Electronic goods exports jumped 39.51%. They rose from $2.65 billion last April to $3.69 billion this year.
• Engineering goods exports went up by 11.28%. They reached $9.51 billion, compared to $8.55 billion a year ago.
• Gems and jewellery exports rose by 10.74%. They increased from $2.26 billion to $2.5 billion.

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