Banking Awareness of 2, 3 and 4 April 2025

Topic: Reports and Indices

1. Services Purchasing Managers' Index (PMI) decreased to 58.5 in March from 59 in February. 

• This shows a decline in business activity and sales. Decrease in international orders also led to this.
• Manufacturing PMI improved in March to 58.1 from 56.3 in February.
• Manufacturing PMI reached its highest level in eight months. 
• PMIs are based on responses from purchasing executives at 400 firms. 
• PMI above 50 shows growth. PMI below 50 shows contraction. 
• The services sector contributes largest share (over 53 percent) of India’s Gross Value Added (GVA). 

Topic: Banking System

2. A $295 million Social Loan facility launched by Citi and the State Bank of India (SBI). 

• Social Loan facility will support SBI’s Kisan Credit Card (KCC) loans. 
• Its aim is to address financial needs of India’s agricultural sector. 
• The particular focus of loan facility is on smallholder farmers. 
• These farmers will get help in improving their agricultural output by financing with Citi’s Trade & Working Capital Solutions. 
• The aim of program is to enhance financial stability. 
• Smallholder farmers often face problem of limited access to financial resources. 
• They have low income and restricted credit access. The loan facility aims to raise the credit access of farmers. 
• The loan facility will also promote economic inclusion for such underserved farmers. 

Topic: RBI

3. Poonam Gupta has been appointed as the new RBI Deputy Governor by government. 

• She is RBI’s first female Deputy Governor in 14 years. She took charge as RBI’s Deputy Governor on 1st April 2025 for three years.
• The position was vacant after Michael Patra left office in January 2025. She fills this position.
• Gupta is presently the Director General of the National Council of Applied Economic Research (NCAER). 
• She is also on Economic Advisory Council to the Prime Minister. 
• She is Convener of Advisory Council to the 16th Finance Commission. 
• Over the past 90 years, only three women have been made RBI Deputy Governor. 
• These women were KJ Udeshi (2003-2005), Shyamala Gopinath (2004-2009) and Usha Thorat (2005-2010).
• No female has been governor at the RBI since its inception 90 years ago.
• Gupta will become the fourth woman to be Deputy Governor at the RBI. 
• She will be the first woman who will lead both RBI's monetary policy and Economic & Policy Research departments. 

(Source: News on AIR)

Topic: Banking/Financial/Govt Schemes

4. Ministry of Heavy Industries has achieved one million electric vehicle (EV) sales in the 2024-25 financial year.

• This achievement aligns with PM Modi’s vision for Net Zero emissions by 2070.
• In FY 2024-25, electric two-wheeler sales reached 1,149,334 units. This is a 21% increase from the previous year.
• Electric three-wheeler sales rose by 57%. 159,235 units were sold during FY 2024-25.
• PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme was introduced in September 2024.
• The scheme has a budget of Rs. 10,900 crore for two years upto 31.03.2026.
• The Electric Mobility Promotion Scheme 2024 of MHI is merged with the PM E-DRIVE scheme.
• Under the PM E-DRIVE initiative in FY 2024-25, over 10 million electric two-wheelers and 120,000 electric three-wheelers were registered.
• More than one million EVs were sold in this financial year.
• The PM E-DRIVE scheme offers financial incentives, encourages local manufacturing, and strengthens the EV ecosystem.

Topic: Reports and Indices

5. India achieved renewable energy capacity of 2,109,655 MW by March 31, 2024.

• This marks a growth of 14.77% as per the Energy Statistics India 2025 report released by the Ministry of Statistics and Programme Implementation.
• Wind power holds the largest share at 55.17%. Solar energy contributes 35.5%.
• Large hydro accounts for 6.32%. Biomass, bagasse-based cogeneration, and small hydro form the remaining portion.
• As per the report, India’s total installed electricity generation capacity reached 521.31 GW by March 31, 2024.
• This represents a 5.43% increase from the previous year.
• However, coal still remains India’s main energy source.
• Domestic coal production rose to 997.83 million tonnes in FY 2023-24, up 11.71%.
• Non-coking coal makes up 93.3% of coal production in India.
• India’s coal reserves are estimated at 389.42 billion tonnes.
• The largest share (nearly 70%) of reserves is in Odisha, Jharkhand, and Chhattisgarh.
• Total electricity generation reached 1,948,956 GWh in FY 2023-24. This marks a 6.5% increase from the previous year.
• Renewable energy generation reached 370,320 GWh in FY 2023-24. This is up from 205,608 GWh in FY 2014-15.
• As of March 31, 2024, India’s refining capacity stood at 256.82 million tonnes per year.
• There are 23 operational refineries (19 in the public sector and four in private or joint venture) in India.
• India’s total primary energy supply grew by 7.8% to 903.16 million tonnes of oil equivalent in FY 2023-24.
• Coal made up 60.21% of the total primary energy supply. Crude oil accounted for 29.83%, and natural gas for 6.99%.
• India’s crude oil reserves are estimated at 671.40 million tonnes.
• India’s natural gas reserves total 1,094.19 billion cubic meters.
• As per International Renewable Energy Agency's Renewable Capacity Statistics 2024, India ranks fourth globally for renewable energy and wind power capacity. It ranks fifth in solar power capacity.
• The government aims to reach 500 GW of non-fossil-based energy capacity by 2030.
• This goal is to meet 50% of India’s electricity needs with renewable sources.

Topic: Reports and Indices

6. Odisha topped the Fiscal Health Index launched by NITI Aayog.

• NITI Aayog developed the Fiscal Health Index (FHI) initiative to improve the understanding of states' fiscal health in India.
• The FHI analysis covers eighteen major states that drive the Indian economy in terms of their contribution to India’s GDP, demography, total public expenditure, revenues, and overall fiscal stability.
• Odisha topped the index, followed by Chhattisgarh, Goa, Jharkhand, and Gujarat.
• Since states are responsible for approximately two-thirds of public expenditure and one-third of total revenue, their fiscal performance is critical to the overall economic stability of the country.
• NITI Aayog developed the Composite Fiscal Health Index using data from the Comptroller and Auditor General of India (CAG) for the financial year 2022-23.
• The objective of the Fiscal Health Index is to provide a comparative analysis of the fiscal health of Indian states using standardized metrics, thereby identifying both strengths and concerns in their fiscal management practices.
• It also aims to promote transparency, accountability and prudent fiscal management and enable policymakers to make informed decisions to enhance fiscal sustainability and resilience.
• The Financial Health Index 2025 is based on a comprehensive set of indicators, grouped into five broad categories:
  • Revenue Generation and Mobilization
  • Expenditure Management and Prioritization
  • Debt Management
  • Fiscal Deficit Management
  • Overall Fiscal Sustainability
• List of Fiscal Health Index 2025:

Topic: Miscellaneous

7. The second edition of Startup Mahakumbh at Bharat Mandapam inaugurated by Union Commerce and Industry Minister Shri Piyush Goyal.

• It will continue from April 3-5, 2025 and aims to boost India's economic growth.
• Shri Jitin Prasada, Minister of State, delivered a special address during the inauguration.
• Startup Mahakumbh is a platform for entrepreneurs, investors, and thought leaders.
• More than 45 tribal entrepreneurs are taking part in it. It features representation from over 50 countries.
• Its focal theme is 'Startup India @ 2047—Unfolding the Bharat Story'.
• A made-in-India flying taxi will be on display at the event.
• Nepal will have the largest pavilion at Startup Mahakumbh.
• It will show a two-stage rocket powered by sustainable hybrid propulsion.
• Startup Mahakumbh is organized by FICCI, ASSOCHAM, Indian Venture and Alternate Capital Association, and Bootstrap Advisory & Foundation.
• The event is supported by SIDBI, GEM, ECGC, Meity, and DPIIT Startup India.

Topic: MoUs/Agreements

8. On 2 April 2025, India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) completed three years of its signing.

• The agreement was signed on April 2, 2022. It has significantly strengthened the economic relationship between India and Australia.
• The ECTA has benefited businesses, entrepreneurs, and created jobs in both nations.
• Bilateral trade reached USD 24 billion in 2023-24.
• India’s exports to Australia grew by 14% compared to the previous year.
• From April 2024 to February 2025, exports grew by 4.4% compared to the same period in 2023.
• The ECTA has delivered benefits in sectors like textiles, pharmaceuticals, chemicals, and agriculture.
• Exports of products such as Calcined Petroleum Coke, High-Capacity Diesel Generating Sets, and Air Liquefaction Machinery show grown trade opportunities.
• India is Australia’s sixth largest trading partner.
• Bilateral trade between two nations grew from US$ 22.2 billion in 2021 to US$ 31.4 billion in 2022.

Read Banking Awareness PDF - 2 3 and 4 April 2025