Topic: Banking System
1. In FY24, forty-three RRBs reported a combined net profit of ₹7,796 crore.
- Regional rural banks (RRBs) saw a 26% increase in their consolidated net profit in FY24 compared to FY23, at ₹6,178 crore.
- There are now three RRBs reporting a net loss, down from six previously.
- The NABARD annual report states that the combined net profit of 40 RRBs in FY2024 was ₹7,571 crore.
- The National Bank for Agriculture and Rural Development's (NABARD) annual report states that this was an all-time high level.
- In FY23, 37 RRBs reported a combined net profit of ₹4,974 crore.
- According to NABARD, the percentage of gross advances that are considered non-performing assets decreased from 7.3% in FY23 to 6.1% of gross advances.
- According to NABARD, asset quality as shown by gross non-performing assets (GNPA) is at its lowest point in the previous ten years.
- Additionally, the net NPAs position decreased from 3.2% to 2.4% of net advances.
- Regional Rural Banks (RRBs):
- RRBs were established in 1975. They were set up to ensure that small and marginal farmers, labourers in the agricultural sector, artisans, and the most vulnerable members of society could access finance.
- These banks are joint ventures that include a sponsor bank (35 percent), the State government where the bank is located (15 percent), and the federal government (50 percent stake).
- 43 RRBs existed as of the end of March 2024. They were supported by 12 scheduled commercial banks, including 11 public sector banks and Jammu & Kashmir Bank.
Topic: Agriculture
2. Gujarat has had a record sowing of soybean in the Kharif season of 2024.
- Gujarat has doubled its area under soybean crop in the last five years since 2020.
- In India, Madhya Pradesh and Maharashtra still hold a significant portion of the soybean cultivation (53 lakh hectares and 50 lakh hectares, respectively).
- Madhya Pradesh has lowered its soybean planting from 58 lakh hectares to 53 lakh hectares during the past five years.
- Maharashtra has seen an increase in soybean sowing from 42 lakh hectares to 50 lakh hectares during the past five years.
- Gujarat's soybean acreage increased to 2.66 lakh hectares during Kharif 2023 from 1.48 lakh hectares in 2020.
- It has nearly reached 3 lakh hectares this year. The district with the highest sowing is Junagadh.
- In India, soybean have been planted on 125 lakh hectares this Kharif season, a marginal increase over the 123 lakh hectares in 2023.
Topic: Banking/Financial/Govt Schemes
3. The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and the Interest Equalisation Scheme (IES) are likely to be extended.
- These are the two major export promotion schemes. RoDTEP scheme remits embedded taxes. IES offers subsidised credit.
- Under RoDTEP scheme, all embedded input duties and taxes paid during manufacture of an exported product are reimbursed.
- This scheme is valid only till September 30, 2024.
- It is now likely to be extended for all 10,000 plus product lines that are presently covered under it.
- The RoSCTL or Rebate of State & Central Taxes and Levies scheme is similar to RoDTEP scheme. This is for exports of made-up articles & garments.
- The Interest Equalisation Scheme (IES) has already lapsed for the 410 beneficiary sectors (non-MSME) on June 30 2024.
- Two-month extension was given to the MSME sector. This extension will lapse this month-end.
- Under IES, loans are extended at a subsidised rate to beneficiary exporters. The rate is determined by the government.
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Topic: Appointments
4. Government appointed Nagaraju Maddirala as Financial Services Secretary.
- Maddirala is at present Additional Secretary in the Coal Ministry.
- Government appointed Manoj Govil as Expenditure Secretary in the Ministry of Finance.
- Govil will take over from T V Somanathan. T V Somanathan has been appointed as the Cabinet Secretary.
- Maddirala will replace the current Department of Financial Services (DFS) secretary, Vivek Joshi.
- Vivek Joshi has been shifted to Department of Personnel and Training.
- Rajesh Kumar Singh has been appointed as Officer on Special Duty in the Department of Defence.
- Government e-Marketplace (GEM) CEO, Prashant Kumar Singh will be Officer on Special Duty in New and Renewable Energy Ministry.
- Deepti Gaur Mukherjee will be the new Ministry of Corporate Affairs (MCA) secretary.
- Deepti Gaur Mukherjee is currently the chief executive officer of the National Health Authority.
Topic: Banking System
5. National Company Law Tribunal (NCLT) has approved merger of slice with North East Small Finance Bank (NESFB).
- Slice is a consumer payments and lending company. The approval has been granted by the NCLT Guwahati branch.
- The effective merger date will be announced by Slice and NESFB.
- Slice and NESFB will soon announce details of the merged entity.
- The scheme of arrangement and amalgamation involving Garagepreneurs Internet Pvt Ltd, Quadrillion Finance Pvt Ltd, Intergalactory Foundry Pvt Ltd, RGVN (North East) Microfinance Ltd, and North East Small Finance Bank has been sanctioned.
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Topic: Banking/Financial/Govt Schemes
6. Vijay Fixed Deposits scheme has been announced by RBL Bank.
- RBL Bank has launched this scheme to honor 78th Independence Day.
- This scheme offers a 500-day fixed deposit tenor with interest rates up to 8.85% p.a for super senior citizens (80 years and above).
- The interest rate is 8.60% p.a. for senior citizens and 8.1% p.a. for regular customers.
- The scheme is available for a limited period only. It is applicable only for deposits of less than Rs 3 crore.
- The scheme is designed to show appreciation for our military men.
- FD under the scheme can be booked either via the RBL Bank MoBank app or by visiting the nearest RBL Bank branch.
Topic: Indian Economy/Financial Market
7. In 2023-24, FDI in the food processing sector fell 30% to ₹5,037 crore.
- According to official data, foreign direct investment (FDI) in India's food processing sector declined by 30% to Rs 5,037.06 crore last fiscal.
- FDI in the food processing sector stood at ₹7,194.13 crore in 2022–23.
- According to data presented in the Lok Sabha by the Ministry of Food Processing Industries, FDI in the food processing sector stood at ₹5,290.27 crore in 2021-22 and ₹2934.12 crore in 2020-21.
- Foreign Direct Investment (FDI) in India's food processing sector for the fiscal years 2015-16 to 2023-24:
- To enhance foreign investment in the food processing sector, the Ministry has taken various measures, including allowing 100% FDI through automatic routes for food processing sector subject to sectoral regulations.
- The government has exempted all processed food items from the purview of licensing under the Industries (Development and Regulation) Act, 1951.
- For the development of this sector, the ministry is implementing the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and Prime Minister Formalization of Micro Food Processing Enterprises (PMFME) schemes.
Topic: Taxation
8. Government initiated an anti-dumping investigation into steel from Vietnam.
- India has launched an anti-dumping investigation on certain steel products imported from Vietnam.
- The anti-dumping investigation will analyze the threat to the domestic industry.
- The probe is based on a request from domestic steel producers citing negative impacts on market performance.
- This decision has been taken after a significant downturn in the Indian steel market.
- India, despite being the world's second-largest crude steel producer, became a net importer of steel in this fiscal year.
- The period of investigation is January 1, 2023, to March 31, 2024 (15 months).
- India has set a target of achieving 300 million metric tons (mt) steel capacity by 2030–2031.
Topic: Indian Economy/Financial Market
9. Unemployment rate in April-June (Q1) declined to 6.6 percent from 6.7 percent.
- The unemployment rate in April-June (Q1) declined to 6.6 percent from a four-quarter high of 6.7 percent in January-March FY24.
- The female unemployment rate increased to 9 per cent in Q1FY25 from 8.5 per cent in Q4FY24.
- The jobless rate for young males has declined, and the unemployment rate for young females has increased.
- The share of people either working or seeking employment in the urban population registered a decline to 50.1 per cent in Q1FY25 from 50.2 per cent in Q4FY24.
- The survey showed the share of people engaged in self-employment declined to 40 per cent from 40.5 percent in the preceding quarter.
Topic: Taxation
10. Government cut down the windfall tax on crude to Rs 2,100/tonne.
- The central government has decided to reduce the windfall tax on petroleum crude from Rs 4,600 per tonne to Rs 2,100 per metric tonne.
- The government has also scraped windfall tax on export of diesel and aviation turbine fuel (ATF).
- The central government started imposing a windfall tax on crude oil producers in July 2022.
- It was later extended to the export of gasoline, diesel, and aviation fuel.
- It encouraged private refiners to sell fuel internationally to get refining margins.
- Oil prices have dropped by about 2 per cent and Brent crude is trading at just below $80 per barrel.
- A windfall tax is a higher tax levied by the government on specific industries when the industry experiences unexpected and above-average profits.
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