Banking Awareness of 20, 21 and 22 October 2024

Topic: Banking System

1. The middle management structure in nationalised banks has been revamped by the finance ministry.

• The new framework has been introduced by the Department of Financial Services.
• In the eleven nationalised banks, it has increased the number of positions for Chief General Managers (CGM), General Managers (GM), Deputy General Managers (DGM), and Assistant General Managers (AGMs).
• The number of executives (CGM, GM, DGM, and AGM) would be determined by the business mix of the banks as on March 31, 2023.
• Regardless of the business mix, the position of CGM (scale VIII) would now be open at all nationalised banks below the board level under the updated guidelines.
• In 2019, the government established the CGM level position in banks with a business mix exceeding ₹10 lakh crore.
• The ratio of number of CGMs to GMs was maintained at 1:4.
• As of March 31, 2023, nationalised banks are now divided into two groups according to their business mix.
• The business mix of Category A banks is less than ₹10 lakh crore, while that of Category B banks is ₹10 lakh crore and more.
• Nationalised banks with a business mix of up to ₹4 lakh crore would have four CGMs.
• Nationalised banks with a business mix ranging from ₹4 to ₹10 lakh crore would have eight CGMs.
• A minimum of 10 CGMs and one extra CGM for each increase in business mix up to ₹1 lakh crore are required for Nationalised Banks with a business mix of ₹10 lakh crore and above.
• For Category A banks, corporate offices should house at least half of all CGMs.
• Additionally, there will now be a correlation between the number of GMs and CGMs, as well as between the number of GMs and DGMs and AGMs.
• For all nationalised banks, the CGM:GM ratio would be 1:4, and the GM:DGM:AGM ratio would be 1:3:9 for all nationalised bank categories.
• The Finance Ministry has also stated that, depending on the banks' business mix as of March 31, 2027, DFS may examine the most recent CGM computation methodology in FY27–28.

Topic: Infrastructure and Energy

2. According to GTRI, solar imports might reach $30 billion a year as India works towards its 2030 renewable goals.

• India increased its solar capacity by 15 GW in 2023–2024 and the total stood at 90.8 GW by September.
• Compared to merely 2.8 GW in 2014, this is a substantial increase.
• The necessity for India to establish an independent solar manufacturing ecosystem has been underlined by the think tank Global Trade Research Initiative (GTRI).
• According to GTRI, the nation has to raise installations to 65–70 GW each year in order to meet the 500 GW target by 2030.
• It is anticipated that more than 80% of this capacity will come from solar energy.
• China supplied 62.6% of the $7 billion worth of solar equipment that India imported in 2023–2024.
• 80 percent of solar modules and 97 percent of polysilicon are produced in China.
• Only 15% of India's solar production is locally value-added. Nearly 90% of the modules are assembled from imported cells.
• China continues to be India's top supplier of solar equipment, with Vietnam, Malaysia, and Thailand coming in second, third and fourth.

Topic: Taxation

3. Rajasthan Authority for Advance Ruling (RAAR) has ruled that softy ice-cream mix will attract 18% GST.

• According to the RAAR, "softy ice-cream mix" that contains sugar as a primary ingredient is not a dairy product.
• VRB Consumer Products requested an advance ruling from the AAR on the classification and tax rate applied to low-fat, vanilla-flavored, dry soft ice cream mix.
• Sugar (61.2%), milk solids or skim milk powder (34%), and additional additives (4.8%) make up the mix.
• "Vanilla Mix," a low-fat, dried soft ice cream mix with a vanilla flavor, will be subject to 18% GST (9% CGST and 9% SGST)," according to RAAR.
• The product's "milk solids are added to sugar," not the other way around, according to RAAR's observations.
• Food preparations that undergo further processing for human consumption are subject to 18% tax under the GST law.
• Only the applicant and the jurisdictional tax officials are subject to the AAR ruling.
• However, it can be relied upon in similar matters.
• Additionally, the AAR's rulings have frequently served as the base for the creation of new policies.

Topic: RBI

4. RBI has given nod to PB Fintech subsidiary to start ‘Account Aggregator’ business.

• RBI granted ‘Certificate of Registration (CoR)’ to PB Financial Account Aggregators Private Ltd effective from October 18.
• RBI said PB Financial Account Aggregators Private Ltd can undertake ‘Account Aggregator’ business as a non-banking financial institution without accepting public deposits and subject to the conditions mentioned in the CoR.
• PB Financial Account Aggregators Private Ltd is wholly-owned subsidiary of PB Fintech.
• PB Fintech also operates insurance aggregator Policybazaar and credit marketplace Paisabazaar.
• In January 2023, PB Financial Account Aggregators received in-principle approval from RBI to set up its account aggregator business.
• Debit cards, credit cards, cardless EMIs, UPI, bank transfers, e-wallets, and e-mandates are payment options that payment aggregators allow their clients to accept.

Topic: Appointments

5. Chitra Jayasimha has been appointed by PFRDA as the Chairperson of the Board of National Pension System (NPS) Trust.

• Chitra Jayasimha’s appointment is with effect from October 17.
• Chitra Jayasimha has been serving the NPS Trust Board as a Trustee since December 2020.
• She has been appointed in the place of erstwhile Chairman Venkata Rao Yadagani.
• The NPS Trust is administered by a Board of Trustees.
• Their task is to make sure that the NPS Trust works in the best interest of National Pension System (NPS) subscribers.
• NPS is a market-linked, voluntary, portable and flexible scheme. It helps people save for retirement.
• Pension Fund Regulatory and Development Authority (PFRDA) appoints members of the NPS Trust from time to time.
• The PFRDA appoints one of the Trustees of the Board as the Chairperson.

Topic: Awards and Prizes

6. Mohanji received the Humanitarian Award at the 2024 Conscious Companies Awards in Johannesburg.

• Mohanji, a renowned humanitarian and spiritual leader, received special recognition for his global humanitarian leadership at the 9th Conscious Companies Awards in Johannesburg, South Africa.
• The prestigious annual event celebrates ethical and visionary leaders who demonstrate conscious leadership within their organizations.
• The Conscious Companies Awards are given to individuals and organizations that promote ethical behaviour and sustainable practices.
• Mohanji is a globally recognized humanitarian and philanthropist. He devoted his life to guiding people from selfishness to selflessness.

Topic: Banking/Financial/Govt Schemes

7. On 21st October 2024, the Regional Connectivity Scheme – Ude Desh Ka Aam Nagrik (RCS-UDAN) completed eight years of its launch.

• Ministry of Civil Aviation had launched the scheme on 21st of October, 2016.
• Improving unserved air routes in underprivileged areas of the nation is the main goal of the UDAN program.
• On April 27, 2017, PM Modi launched the first RCS-UDAN flight under the scheme.
• More than 600 UDAN routes have been operationalised since the scheme's launch.
• Over one crore forty-four lakh passengers have taken flights since the launch.
• Thus far, the plan has linked 34 Indian states and union territories.
• Under the scheme, two heliports and 10 airports have been operationalised in the Northeast.

Topic: Appointments

8. Abhyuday Jindal has taken over as president of Indian Chamber of Commerce (ICC).

• ICC has announced his appointment as its new President at its annual plenary session held in New Delhi.

• Commerce and Industry Minister Piyush Goyal was the chief guest at the session.
• Jindal is a Boston University graduate with a background in Economics and Business Management.
• As the Managing Director (MD) of Jindal Stainless, he has led significant improvements in the company.
• Brij Bhushan Agarwal, vice chairman and managing director of Shyam Metalics, was appointed as the senior vice president of ICC.
• Parthiv Vikram Neotia, executive director of Ambuja Neotia, assumed the role of vice president.

Topic: MoUs/Agreements

9. India and Germany will sign a pact on labour mobility and skill recognition.

• India and Germany will sign a pact on labour mobility and skill recognition to facilitate the movement of workers.
• Under this agreement, skilled professionals will be hired by German industries.
• It will be the first agreement under the G20 “Skills-based migration pathways” framework.
• Under this framework, the top 20 economies of the world have recognized that integrated skill-based migration pathways will expand job opportunities for skilled professionals.
• It will also open an avenue for skilled Indian professionals to migrate to Germany.
• This agreement will focus on introducing a digital visa by the end of 2024.

Topic: Taxation

10. On October 19, the Group of Ministers (GoM) convened to propose modifications to the GST rates held its meeting.

• It discussed the rationalization of taxes, particularly on health and life insurance premiums.
• The GoM was established to look into measures to reduce the 18% GST rate that is now applied to insurance premiums. This was the group's first meeting.
• Samrat Choudhary, the Deputy Chief Minister of Bihar, is in charge of the 13-member GoM.
• One of the GoM's mandates is to advise the GST Council on how health and life insurance premiums should be taxed.
• Ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu, and Telangana are on the panel.
• By the end of October, it is anticipated that the GST Council will receive final report of GoM.
• Choudhary will chair a second group of ministers to talk about the general rationalisation of GST rates.
• The six-person GoM will assess potential revenue losses from lower common goods tax rates and possible measures to make up for those losses.
• The current GST rate on life and health insurance premiums is 18%.

Read Banking Awareness PDF -20, 21 and 22 October 2024