Banking Awareness of 18, 19 and 20 September 2025

Topic: Taxation

1. Advance tax collections increased by about 3% after the second instalment.

• The total collection crossed ₹4.48 lakh crore, according to the Central Board of Direct Taxes (CBDT).
• Corporate advance tax payments increased by over 6%. Corporate advance tax payments reached ₹3.52 lakh crore.
• Non-corporate advance tax payments declined by 7%. Non-corporate advance tax payments fell below ₹1 lakh crore.
• Net direct tax collections between April 1 and September 17 rose by over 9%.
• The total net collection stood at more than ₹10.82 lakh crore.
• Corporate tax revenue during this period reached over ₹4.72 lakh crore. This marked a growth of nearly 5%.
• Non-corporate tax collections rose by around 13.7%. Non-corporate tax collections amounted to approximately ₹5.84 lakh crore.
• Non-corporate tax includes payments by individuals, HUFs (Hindu Undivided Family), firms, AoPs (Association of Persons), BoIs (Body of Individuals), local bodies, and artificial juridical persons.
• A sharp drop in refund outflows contributed to the rise in net collections.

Topic: Taxation

2. The CBIC has issued a notification placing ball pens, fountain pens, school bags, and printed books under the 18% GST bracket.

• This move follows the GST Council’s recommendations made during its September 3 meeting.
• All 28 states and 3 Union Territories are expected to issue similar notifications.
• This will ensure the new tax rates are enforced from September 22.
• The updated GST structure includes about 1,200 goods. These items are organised into seven separate schedules.
• Pens such as fountain pens, felt-tipped pens, and stylograph pens will continue to attract 18% GST.
• This includes 9% Central GST and 9% State GST.
• In contrast, items like pencils, crayons, chalk, and similar writing tools will now be tax-exempt. Their GST rate has been reduced from 12% to 0%.
• School bags, trunks, suitcases, briefcases, and similar containers have also been placed in the 18% GST category.
• There are concerns about printed books.Uncoated paper, a key input for printing books, is now taxed at 18%.
• This paper is exempt when used in notebooks, graph books, and laboratory books.
• However, printed books are not mentioned in the exemption list.
• This could lead to higher production costs for printed books. Book prices may rise as a result.

Topic: RBI

3. RBI has established a Regulatory Review Cell (RRC) to enhance the framework for regular assessment of its regulations.

• The RRC is led by SBI Managing Director Rana Ashutosh Kumar Singh and includes five other members.
• It will conduct comprehensive reviews of RBI regulations every 5 to 7 years.
• The RRC will begin operations on October 1, 2025, within the Department of Regulation.
• Reviews will be carried out in a phased manner.
• To boost industry engagement and incorporate external expertise, an independent Advisory Group on Regulation (AGR) has been formed.
• The AGR consists of external specialists who provide industry feedback to support the RRC's review process.
• The AGR can co-opt additional experts as needed and has an initial three-year term, extendable by two years.
• Other members of the RRC include T. T. Srinivasaraghavan, Gautam Thakur, Shyam Srinivasan, Ravi Duvvuru, and N. S. Kannan.

Topic: Banking System

4. SBI sold a 13.19% stake in Yes Bank to Sumitomo Mitsui Banking Corporation.

• The transaction brought in ₹8,889 crore. About 413.44 crore shares were sold at ₹21.50 each.
• This sale will boost SBI’s non-interest income in the second quarter of FY26.
• After the sale, SBI will still hold around 10.8% of Yes Bank.
• SBI became Yes Bank’s main shareholder in March 2020 under the RBI Reconstruction Scheme.
• It increased its stake further through a follow-on public offering in July 2020.
• SMBC is part of the Sumitomo Mitsui Financial Group, a major Japanese financial firm.
• SMBC got RBI approval in August 2025 to own up to 24.99% of Yes Bank.
• Sumitomo Mitsui Financial Group is Japan’s second-largest banking group and among the top 15 worldwide.
• In May 2025, Yes Bank announced SMBC’s plan to acquire a 20% stake.
• The deal involves buying 13.19% shares from SBI and 6.81% from seven other investors.
• The other sellers include Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.
• The share transfer was completed after approvals from RBI and the Competition Commission of India.

Topic: Indian Economy/Financial Market

5. India's economy grew by 7.8% in Q1 FY26, as per a report by CareEdge Ratings.

• The economic growth in Q1 FY26 exceeded the forecasted growth of 6.6%.
• Manufacturing growth increased to 7.7%, up from 4.8% in the previous quarter.
• The services sector showed strong performance in all areas.
• Trade, hotels, transport, commerce, and broadcasting grew by 8.6%.
• Financial, real estate, and professional services saw a 9.5% increase.
• Public administration and defense grew by 9.8%. Agricultural growth slowed to 3.7%.
• Industrial growth was impacted by a 3.1% decline in mining.
• GVA growth reached 7.6%. The gap between GDP and GVA was positive, as indirect taxes grew faster than subsidies.

Topic: Miscellaneous

6. Over Rs 342 crore released by the Centre under 15th Finance Commission grants for rural local bodies in Tamil Nadu and Assam.

• The first installment of untied grants amounting to ₹127.586 crore was released to Tamil Nadu for the financial year 2025-26.
• This includes 2,901 eligible Gram Panchayats, 74 eligible Block Panchayats, and 9 eligible District Panchayats.
• ₹214.542 crore has been disbursed to Assam for the financial year 2024-25.
• This includes all 2192 eligible Gram Panchayats, 156 eligible Block Panchayats, and all 27 eligible Zilla Parishads.
• The Central Government, through the Ministry of Panchayati Raj and the Ministry of Jal Shakti, recommends the release of grants to the States under the 15th Finance Commission for Rural Local Bodies (RLBs)/Panchayati Raj Institutions (PRIs).
• This is subsequently released by the Ministry of Finance.
• The allocated grants are recommended and released in two installments in a financial year.
• However, the untied grant will be utilized by the RLBs/PRIs for location-specific requirements, under twenty-nine (29) subjects contained in the 11th Schedule of the Constitution, excluding salaries and other establishment costs.
• Tied grants can be used for basic services like sanitation, maintaining ODF status, household waste management, human excreta, and fecal sludge treatment.
• They can also be used for drinking water supply, rainwater harvesting, and water recycling.

Topic: Miscellaneous

7. The IMF calls India's UPI a global model for digital payments.

• India’s Unified Payments Interface (UPI) handles over 20 billion transactions a month.
• UPI has emerged as the world's largest retail instant payment system and is gaining global recognition, including from the International Monetary Fund (IMF), for revolutionizing digital payments.
• The IMF, in its June 2025 fintech note titled “Growing Retail Digital Payments: The Value of Interoperability,” described UPI as a model that transformed India's payments landscape.
• Nearly 85% of India’s digital transactions last month were through UPI, worth ₹24.85 lakh crore.
• Effective September 15, NPCI has increased the transaction limit for person-to-merchant (P2M) payments to Rs 10 lakh per day for verified categories, enabling wider adoption for high-value purchases.
• India's success with UPI stems from its extensive "digital public infrastructure," which is based on Jan Dhan Yojana bank accounts, Aadhaar biometric identification, and affordable mobile internet.
• Its open architecture allows direct bank transfers and prevents monopolies.
• The system supports financial inclusion, with 89% of Indian adults holding bank accounts.
• UPI is linked with PayNow in Singapore for instant cross-border transfers.
• It is already operational in the UAE, Mauritius, Nepal, Bhutan, and at the Eiffel Tower in France.
• Unified Payments Interface (UPI) was launched in 2016 by the National Payments Corporation of India (NPCI).

Topic: Taxation

8. The Department of Consumer Affairs has released an updated advisory in view of the change in GST rates effective from September 22, 2025.

• The advisory is issued under Rule 33 of the Legal Metrology (Packaged Commodities) Rules, 2011.
• The government has introduced relaxations to ease compliance for businesses.
• These changes also ensure that consumers benefit from the reduced GST.
• Manufacturers, packers, and importers can choose to add revised price stickers.
• This applies to unsold stock manufactured before the GST revision date.
• The original Maximum Retail Price (MRP) must remain visible.
• The new price label must not cover or obscure the original MRP.
• The use of revised stickers is voluntary and not legally required.
• Previously, companies had to publish revised MRPs in two newspapers.
• This requirement under Rule 18(3) has now been removed.
• Businesses now only need to share updated price lists with wholesalers and retailers.
• They must also send copies to the Director of Legal Metrology (Central Government).
• They must inform Controllers of Legal Metrology in States and Union Territories as well.
• This change simplifies compliance and reduces the paperwork for companies.
• Firms are allowed to continue using old packaging material.
• This applies to wrappers printed before the GST rate change.
• They can use such materials until March 31, 2026, or until stock is exhausted.
• Prices on old packaging can be corrected using stamps, stickers, or online printing.
• Corrections can be made anywhere on the package where clearly visible.
• The government has also urged businesses to spread awareness.
• Manufacturers, importers, and packers should inform dealers, retailers, and consumers.
• They should clearly communicate the revised GST rates.
• They are encouraged to use all available communication channels.
• This includes electronic media, print outlets, and social media platforms.
• The overall move supports ease of doing business.
• At the same time, it protects consumer interests.
• It ensures that consumers receive the benefits of lower GST.
• It avoids unnecessary compliance pressure on businesses.