Banking Awareness of 20 and 21 June 2025

Topic: Indian Economy/Financial Market

1. India’s WPI-based inflation declined to a 14-month low level in May.

• India’s wholesale price index (WPI)-based inflation declined to 0.39 percent in May from 0.85 percent in April, according to the Ministry of Commerce and Industry.
• Food inflation decreased from 2.55 percent to 1.72 percent.
• Primary articles saw a contraction of 2.02 percent.
• Deflation has been registered in the fuel and power segment at 2.27 percent.
• Inflation in manufactured products declined to 2.04 percent.
• As per Ministry, positive inflation rate was due to increasing prices in food products, chemicals, and transport equipment.
• Wholesale price index (WPI) reflects wholesale-level price changes.
• It differs from CPI. Consumer Price Index (CPI) measures consumer-level price variations.

Topic: Infrastructure and Energy

2. As per latest report by the International Energy Agency (IEA), India is third-fastest growing nation in power generation capacity globally during the past five years.

• As per the report, India is third-fastest growing nation in power generation capacity after China and US.
• India's power consumption has surged due to rapid growth in residential and commercial infrastructure, wider use of home appliances, and increasing industrial activity.
• To address this rising demand, the country has scaled up electricity production across both traditional and renewable sources.
• A key factor behind this expansion is India’s robust commitment to developing renewable energy.
• There has been notable momentum in clean energy investments, with solar photovoltaic (PV) projects leading the way.
• Solar PV has made up more than half of India’s total investment in non-fossil fuel energy over the past five years.
• In 2024, clean energy projects received 83 per cent of the total investment in the Indian power sector.
• India topped the list of countries receiving development finance institution (DFI) funding for clean energy in 2024, securing about USD 2.4 billion in targeted project funding.
• Foreign direct investment (FDI) in India’s electricity sector rose to USD 5 billion in 2023, nearly double the amount recorded before the pandemic.
• However, foreign portfolio investments in the energy sector have dipped over the past two years due to broader economic uncertainties and specific industry challenges.

Topic: RBI

3. Final project finance norms have been eased by RBI.

• New norms mandate lenders to maintain 1% standard asset provisioning for under construction project finance loans.
• In initial draft norms, 5% provisioning requirement was stipulated. These norms were released in May 2024.
• The norms will become effective from 1 October.
• As per final norms, lenders have to maintain 1.25% provision for under construction commercial real estate exposures.
• If there is delay in starting of commercial operations, the provisions will be slowly increased each quarter.
• The asset provisioning requirements shall be reduced at the time the project enters operational phase.
• At the time of operational phase, standard asset provisioning requirement shall stand lowered to 1% for commercial real estate.
• This shall stand reduced to 0.75% for CRE-residential housing (CRE-RH) and 0.40% for other project exposures.

Topic: Appointments

4. Sivasubramanian Ramann assumed charge as chairperson of the Pension Fund Regulatory and Development Authority (PFRDA).

• The tenure of Ramann is five years with effect from the date of assumption of charge of the post or till he attains the age of 65 years, or until further orders, whichever is the earliest.
• The re-appointment of Prashant Kumar as MD, CEO of YES Bank has been approved by RBI.
• His reappointment has been approved for six months effective October 6, or till a new MD, CEO takes charge, whichever is earlier.
• A month ago, Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) entered into a definitive agreement to acquire 20 per cent stake in YES Bank.
• YES Bank was founded in 2004. It is headquartered in Mumbai. Prashant Kumar is its MD and CEO.
• Pension Fund Regulatory and Development Authority (PFRDA) was established in October 2003. Its head office is in New Delhi.

Topic: MoUs/Agreements

5. DPIIT signed an MoU to empower one million rural entrepreneurs.

• An MoU has been signed by the Department for Promotion of Industry and Internal Trade (DPIIT) with YourStory Media Private Limited to strengthen inclusive entrepreneurship in India.
• This partnership is in line with DPIIT’s vision to foster grassroots entrepreneurship and support emerging talent in tier II and III cities and rural India.
• The collaboration aims to empower 1 million entrepreneurs through AI-powered tools, venture launchpads, and regional success story-telling initiatives under the Bharat Project.
• DPIIT aims to extend support to grassroots innovators through storytelling initiatives and AI-based tools under the Bharat Project.
• The initiative will also leverage flagship startup events and developer-focused platforms to foster engagement within India’s startup and technology ecosystem.
• These platforms will facilitate innovation showcases, founder-investor networking, and support in emerging areas such as AI, GenAI, data, and blockchain.
• The MoU was formally signed by Deputy Secretary Shri Rajesh Kumar and Ms. Shradha Sharma, CEO of YourStory.
• The collaboration is expected to enhance access to startup resources and mentorship in underserved regions.

Topic: Reports and Indices

6. NeSDA's monthly report highlights e-services expansion across India.

• The 25th edition of the NeSDA—Way Forward Monthly Report for May 2025 has been released by the Department of Administrative Reforms & Public Grievances (DARPG).
• This report contains a detailed overview of the status of e-service delivery in states/UTs.
• As per the report, a total of 21,062 e-services are being provided across all states and union territories. Most of the e-services (7,065) are from the local governance and utility services sector.
• A total of 424 new e-services were added by the states and UTs in April 2025, with Tripura leading in contributions.
• A total of 1,599 out of 2,016 essential e-services (56 for each of 36 states/UTs) are now available online across all 36 states and union territories, achieving a saturation rate of over 79%.
• 16 states and UTs have surpassed 90% saturation, while Maharashtra and Uttarakhand have reached full saturation.
• Chandigarh's commitment to improving service delivery under the Right to Services (RTS) framework has been featured.
• The report also highlights the e-services provided by states and UTs through their single unified service delivery portals.
• It includes the status of incorporating three new NeSDA assessment parameters: Open Government Data, e-participation, and the use of emerging technologies.
• The comprehensive service delivery portals of Central Government Ministries/Departments, the Goods and Services Tax Portal, and the National Cyber Crime Reporting Portal have been highlighted as examples of best practices.

Topic: Reports and Indices

7. India dropped to the 71st position in the 2025 Energy Transition Index.

• This is a decline from its 63rd rank last year. Sweden ranked first globally.
• It was followed by Finland, Denmark, Norway, and Switzerland in the top five.
• China held the 12th spot. The United States was 17th. Pakistan ranked 101st.
• India made strong progress in energy efficiency. It also improved its capacity to attract energy investments.
• Among large economies, India and China showed the most progress. They improved energy access and transition readiness.
• Investments in renewable energy and clean technologies have grown in India.
• India has reduced its energy intensity and methane emissions. It also improved regulations and clean energy investments.
• The US led in energy security. India stood out in efficiency and investment growth.
• Out of 118 countries, 77 improved their scores. But only 28% advanced in all three areas: security, sustainability, and equity.
• In 2024, global clean energy investment reached USD 2 trillion. Despite this, emissions hit a record 37.8 billion tonnes.
• A 2.2% rise in energy demand drove this increase.
• AI, data centers, cooling systems, and electrification were key drivers of this demand.
• The performance of energy systems of 118 countries was benchmarked by the Fostering Effective Energy Transition 2025 report, developed in collaboration with Accenture.
• Five readiness factors used in the report are political commitment, finance and investment, innovation, infrastructure, and education and human capital.

Topic: Reports and Indices

8. The Department of Administrative Reforms and Public Grievances released its 22nd monthly ‘Secretariat Reforms’ report for May 2025.

• The Swachhata campaign generated Rs 3163.97 crore from scrap sales between 2021 and 2025.
• Between December 2024 and May 2025, scrap disposal revenue reached Rs 799.92 crore.
• In May 2025, 66,000 files were weeded out from records across 8,835 government offices.
• Cleanliness drives were conducted at 8,835 locations nationwide.
• These efforts freed up around 350,000 square feet of office space.
• The Ministry of Railways has freed 130,180 square feet.
• The Ministry of Coal has freed 76,231 square feet.
• In May 2025, scrap disposal brought in Rs 284.84 crore.
• Key contributors included the Ministries of Railways, Ports, Shipping and Waterways, and Heavy Industries.
• A total of 104,941 physical files were reviewed.
• From these, 66,186 obsolete files were removed.
• Public grievance redressal resolved 457,081 cases.
• The disposal rate was nearly 90%.
• Additionally, 1,448 parliamentary references and 320 state government references were addressed.
• Ministries and departments have implemented efficient management of office spaces, thereby increasing transparency and public access. For example, e-waste disposal at the Department of Atomic Energy's AMD headquarters in Hyderabad.
• Delayering initiatives reduced the average transactions per active file from 7.19 in 2021 to 4.17 in May 2025.
• In May 2025, 95.47% of created files were electronic.
• Ninety-five percent of receipts received were digital.
• Forty ministries and departments achieved full e-File adoption.
• Fifteen ministries and departments processed 100% digital receipts.
• Inter-ministerial file exchanges totaled 3,892 in May 2025.
• These reforms show the Government of India’s commitment to a digitally enabled, transparent, and efficient administration.
• The goal is to provide excellent public service through administrative excellence.
• 22nd edition of the monthly ‘Secretariat Reforms’ report includes:
  • Best Practices under "E-Waste Disposal"
  • In Focus: Ministry of Coal (Coal)
  • Cabinet Secretariat Directions on e-Office Implementation
  • Replication of Good Governance Practice: State Level Achievement