Banking Awareness of 18, 19 and 20 February 2025

Topic: Infrastructure and Energy

1. India's power demand is projected to increase at a rate of 6.3% annually until 2027.

• This growth will be higher than the 5% annual growth observed between 2015 and 2024. 
• Electricity demand in the country will rise by 6.3% per year from 2025 to 2027. 
• In 2023, electricity demand increased by 8.3% year-on-year, and in 2024, it rose by 5.8%. 
• By 2027, India will account for 10% of the global rise in electricity demand. 
• India's peak electricity load grew from 148 GW in 2014 to 250 GW in 2024. 
• The residential and commercial sectors' electricity demand rose by 60-65% from 2014 to 2024. 
• Between 2025 and 2027, coal-based power generation will increase by 2% annually. 
• The share of renewable energy will rise from 21% in 2024 to 27% by 2027. 
• Solar PV generation is expected to grow by more than 28% annually from 2025 to 2027. 
• Wind power generation will expand by 11% annually during the same period. 

Topic: MoUs/Agreements

2. APNA and the Ministry of Labor & Employment have signed a Memorandum of Understanding.

• Over 10 lakh job openings will be added on the National Career Service (NCS) Portal each year due to the signed Memorandum of Understanding. 
• Because APNA will list job openings on the NCS Portal, job searchers will have more possibilities for employment in both metro and non-metropolitan areas. 
• The collaboration will connect employers with candidates across formal and informal sectors. 
• The extensive candidate database of the NCS will be made available to APNA.
• An online and offline interface will be used by the Ministry of Labor & Employment to enable seamless integration. 
• Employers and job seekers can communicate with each other through the NCS Portal.
• Since its inception, NCS Portal has mobilized 4.40 crore openings and over 40 lakh registered employers. 

Topic: Indian Economy/Financial Market

3. India's trade deficit rose to $22.99 billion in January 2025.

• The trade deficit rose from $16.56 billion in January 2024. 
• Exports dropped by 2.38% year-on-year, totaling $36.43 billion.
• This marked the third consecutive month of decline.
• The decline was mainly due to a sharp drop in petroleum product exports. 
• Non-petroleum exports rose by 14.15%, totaling $32.86 billion in January 2025. 
• Imports grew by 10.28% to reach $59.42 billion in January 2025.
• The import growth was driven by higher imports of electronic goods, gold, non-ferrous metals, iron & steel, and chemicals. 
• It is projected that India's goods and services exports will exceed $800 billion in 2024-25. 
• From April to January 2024-25, goods exports increased by 1.39% to $358.91 billion.
• Imports grew by 7.43% to $601.9 billion from April to January 2024-25. 
• The trade deficit for April-January 2024-25 increased to $242.99 billion. 
• India's gold imports in January 2025 rose to $2.68 billion. 
• In terms of value growth, the top five export destinations in January 2025 were the US, Japan, Bangladesh, the UK, and Nepal. 
• The top import sources in January 2025, based on value growth, were China, Thailand, the US, Germany, and the UK.

Topic: Banking System

4. A fraud of ₹270.57 crore has been reported by Punjab National Bank (PNB) to the Reserve Bank of India. 

• The fraud of ₹270.57 crore has been reported in the non-performing account of Gupta Power Infrastructure Ltd, based in Bhubaneswar.
• PNB said it has made provisions of ₹270.57 crore as required by prudential regulations. 
• The number of reported fraud cases by PNB increased to 7,112 in FY25. 
• These fraud cases totaled ₹1,803.59 crore. 
• This is a significant increase from 289 cases totaling ₹1,809.10 crore in FY24. 
• Provisions for fraud-related accounts in FY25 were ₹1,442.67 crore. 
• This is lower compared to ₹1,802.68 crore allocated in FY24.

Topic: Regulatory Bodies/Financial Institutions

5. IRDAI has fined UIB Insurance Brokers with ₹1 crore.

• The fine has been imposed for breaching rules regarding timely payment of premiums and claims. 
• The fine has been imposed because of delays in sending premiums, claims, and other payments to reinsurers, insurers, and foreign brokers. 
• UIB Insurance Brokers has been instructed by IRDAI to pay the fine within 45 days of receiving the order. 
• IRDAI also asked them to examine all outstanding payments.  It asked them to submit a report on the actions to address pending payments. 
• The company has also been directed by IRDAI to review its internal controls. 
• The company will also create a plan to prevent delays and ensure compliance with required timelines.

Topic: Banking/Financial/Govt Schemes

6. A Mutual Credit Guarantee Scheme for MSMEs was launched by FM Sitharaman.

• On 17 February, the 'Mutual Credit Guarantee Scheme for MSMEs' launched by the Centre, as announced in the Union Budget 2025-26, to boost micro, small, and medium enterprises.
• Under this scheme, collateral-free loans up to Rs 100 crore are provided to MSMEs for the purchase of plant, machinery, or equipment.
• Under the scheme, 60% guarantee coverage will be provided by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for credit facilities up to Rs. 100 crores.
• This will be sanctioned to eligible MSMEs under MCGS-MSME for the purchase of equipment/machinery.
• While launching the scheme, Union Finance Minister Nirmala Sitharaman also distributed sanction letters to eligible MSMEs under the scheme in Mumbai.
• The scheme requires the borrower to be an MSME with a valid Udyam Registration Number.
• The guaranteed loan amount will not exceed Rs 100 crore, although the total project cost may be higher.
• Additionally, at least 75% of the project cost should be for purchasing equipment or machinery.
• Besides, keys were also handed over to home buyers who benefited through the SWAMIH (Special Window for Affordable and Mid-Income Housing) fund.
• As of January 24, over 50,000 homes have been successfully delivered under the SWAMIH Fund, with a commitment to deliver an additional 20,000 homes each year for the next three years.
• SWAMIH Fund 2 will be established as a blended finance facility with contributions from the government, banks, and private investors, as announced in the Union Budget 2025-26.
• The target of this fund of Rs 15,000 crore will be to complete another 1 lakh units soon.

Topic: Banking/Financial/Govt Schemes

7. Government approved continuation of the PM-AASHA scheme till 2025-26.

• The Central government approved the continuation of the integrated Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) scheme during the 15th Finance Commission cycle up to 2025-26.
• The integrated PM-AASHA Scheme's aim is the effective implementation of procurement operations.
• The government has allowed the procurement of Tur, Urad and Masur under the Price Support Scheme (PSS).
• In the Budget 2025, the government has also announced that procurement of Tur (Arhar), Urad and Masur up to 100 per cent of the state's production will be continued for another four years.
• Under the price support scheme of PM-ASHA scheme, notified pulses, oilseeds and copra conforming to prescribed Fair Average Quality (FAQ) are procured by Central Nodal Agencies (CNAs) through State level agencies directly from pre-registered farmers at MSP.
• The procurement has already started in Andhra Pradesh, Karnataka, Maharashtra and Telangana and a total quantity of 0.15 LMT of Tur (Arhar) has been procured in these States.
• Union Minister Shri Shivraj Singh Chouhan approved Tur Procurement in 9 States under Price Support Scheme for the Kharif 2024-25 season.

Topic: Indian Economy/Financial Market

8. In Oct-Dec 2024 quarter, unemployment rate in urban areas declined to 6.4%.

• In the October-December quarter, unemployment rate for people aged 15 years and above in urban areas decreased to 6.4%.
• In December quarter of current Financial Year, unemployment rate was 6.5%.
• Labour Force Participation Rate in urban areas among persons aged 15 years and above rose to 50.4% in Oct– Dec quarter of 2024.
• It stood at 49.9% during October – December quarter in 2023.

Topic: Appointments

9. P D Singh will be the new CEO of Standard Chartered India.

• Standard Chartered has announced the appointment of P D Singh as its chief executive officer (CEO) for India.
• He will take the place of Zarin Daruwala, who will retire on March 31. His appointment will become effective April 1.
• He was the CEO of JP Morgan Chase Bank in India, where he played a pivotal role in shaping the bank’s corporate banking franchise.
• Standard Chartered is a British multinational bank with operations in wealth management, corporate and investment banking, and treasury services.
• Its largest shareholder is the Government of Singapore-owned Temasek Holdings.
• Jose Vinals is the group chairman of Standard Chartered.

Topic: Indian Economy/Financial Market

10. Government is planning to raise the deposit insurance limit from ₹5 lakh.

• The Finance Ministry is looking to raise the current limit of ₹5 lakh for deposit insurance.
• Money deposited by bank customers is insured under the Deposit Insurance and Credit Guarantee Corporation Act, 1961 by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
• The deposit insurance limit was increased to ₹5 lakh in 2020 from ₹1 lakh. 1 Lakh was fixed in 1993.
• When a bank fails due to any uncertainties, the DICGC acts as a guard to secure the money of depositors.
• The government is planning to increase the deposit insurance limit after the Reserve Bank of India (RBI) placed curbs on the Mumbai-based New India Co-operative Bank for lack of liquidity.

Read Banking Awareness PDF - 18 19 and 20 February 2025