Banking Awareness of 21, 22, 23 and 24 September 2025

Topic: Banking System

1. The government has extended the tenures of eight executive directors in various public sector banks.

• This move aims to provide stability in the leadership of these banks.
• Nitesh Ranjan and Ramasubramanian S from Union Bank of India received tenure extensions.
• M Paramasivam of Punjab National Bank had his term prolonged.
• Joydeep Dutta Roy, an executive director at Indian Overseas Bank, also got an extension.
• Malladi Venkat Murali Krishna of Central Bank of India was granted a tenure extension.
• Rajendra Kumar Saboo from UCO Bank had his term extended.
• Lalit Tyagi and Sanjay Vinayak Mudaliar from Bank of Baroda saw their tenures extended.
• Ranjan, Roy, Saboo, and Tyagi received extensions of three years each.
• Mudaliar’s tenure was extended by about 31 months until his retirement.
• Ramasubramanian got an extension of about 19 months.
• Paramasivam’s tenure was extended by approximately 16 months.
• Murali Krishna received an extension of about 20 months until superannuation.
• Union Bank of India currently does not have a Managing Director & CEO. A Manimekhalai’s tenure ended on June 2, 2025.
• Sanjay Rudra will retire as ED of Union Bank of India on June 30, 2026.
• Central Bank of India is without a head after Matam Venkat Rao retired on July 31, 2025.
• Vivek Wahi, an ED at Central Bank of India, is scheduled to retire at the end of this month.
• In May 2025, FSIB recommended Asheesh Pandey for MD & CEO of Union Bank of India.
• FSIB also recommended Kalyan Kumar for MD & CEO of Central Bank of India.
• Ajay Kumar Srivastava’s tenure as MD & CEO of Indian Overseas Bank was extended by about 21 months from January 1, 2026.

Topic: Indian Economy/Financial Market

2. India’s core sector grew at its fastest rate in 15 months, reaching 6.3% in August 2025.

• In July 2025, the growth rate was 3.7%. The increase was mainly due to strong coal and steel production.
• The government reported positive growth in Steel, Coal, Cement, Fertiliser, Electricity, and Petroleum Refinery sectors in August 2025.
• Steel production led the way with a 14.2% increase compared to August 2024. Coal production rose by 11.4%.
• Cement output increased by 6.1%. Fertiliser production grew by 4.6%.
• Electricity generation went up by 3.1%. Petroleum refinery output increased by 3%.
• Crude oil production fell by 1.2% in August 2025. Natural gas output also declined by 2.2%.
• The strong performance of core industries indicates healthy industrial growth for August 2025.
• ICRA forecasts IIP growth between 4.5% and 5.5% for the month.
• This positive outlook is due to an expected recovery in mining production.
• Mining had seen contractions from April to July 2025.
• The core sector includes eight key industries: Steel, Coal, Cement, Fertiliser, Electricity, Crude Oil, Natural Gas, and Petroleum Refinery products.
• These industries make up more than 40% of the Index of Industrial Production (IIP).

Topic: RBI

3. The Reserve Bank of India revoked the registration certificate of Datta Finance and Trading Pvt Ltd.

• RBI took action against New Delhi-based company due to improper lending practices.
• Datta Finance violated RBI rules on outsourcing key financial service functions.
• These functions were part of its digital lending operations.
• The company outsourced customer acquisition, due diligence, loan disbursement, servicing, recovery, and KYC processes.
• The outsourcing was done to external service providers.
• These providers included the KinCash app and DoLoan app by Zest Top One Technology Pvt Ltd.
• The company also used its own app, ZestCash.
• After the cancellation, Datta Finance cannot operate as a non-banking financial institution.

Topic: MoUs/Agreements

4. The Indian government and the Asian Development Bank (ADB) signed a $125 million loan agreement.

• This loan will help improve urban living conditions and enhance climate resilience in Assam.

• The project will benefit 360,000 residents in six district centers and Guwahati.
• It aims to provide a continuous metered water supply. It will also upgrade stormwater management systems.
• Additionally, the project will focus on urban governance improvements through reforms and capacity-building.
• Infrastructure plans include six new water treatment plants. These plants will have a combined capacity of 72 million liters per day.
• The project will install 800 kilometers of water distribution pipelines.
• These pipelines will be laid across Barpeta, Bongaigaon, Dhubri, Goalpara, Golaghat, and Nalbari.
• In Guwahati, the project will enhance stormwater management in the Bahini Basin.
• It will include flood diversion channels and upgraded drainage systems.
• A nature-based retention pond will also be built. This pond will help reduce flood discharge and improve groundwater recharge.
• The project will establish the Assam State Institute for Urban Development. This will be set up in collaboration with IIT Guwahati.

Topic: Indian Economy/Financial Market

5. PhonePe has received final approval from the Reserve Bank of India (RBI) to act as an online payment aggregator.

• This approval will allow PhonePe to extend its services to more online businesses, particularly small and medium-sized enterprises (SMEs).
• Yuvraj Singh Shekhawat, PhonePe’s chief business officer, said this move would help drive financial inclusion.
• It will also offer accessible payment solutions to businesses that were previously underserved.
• PhonePe has more than 650 million registered users. The company has a merchant network of 45 million outlets.
• PhonePe processes over 360 million transactions every day. Its total annual transaction value exceeds Rs 150 lakh crore.
• In 2023, PhonePe had received in-principle approval from the RBI for the payment aggregator licence.
• The company also provides services like insurance, lending, and wealth management.
• PhonePe has entered the consumer tech space with its ecommerce app, Pincode.
• Other fintech companies like Easebuzz, PayU, BharatPe, and Pine Labs have also received payment aggregator licences from the RBI.
• PhonePe is a Walmart-backed fintech headquartered in Bengaluru.
• Payment Aggregator is a third-party service provider that makes it possible for customers to send and receive payments online.

Topic: Summits/Conferences/Meetings

6. The 28th National Conference on e-Governance held in Visakhapatnam on September 22 and 23, 2025.

• It was jointly organised by Department of Administrative Reforms & Public Grievances (DARPG), the Ministry of Electronics & Information Technology (MeitY), and the Government of Andhra Pradesh.
• The theme of the conference was ‘Viksit Bharat: Civil Service and Digital Transformation.’
• Andhra Pradesh Chief Minister N. Chandrababu Naidu and Union Minister Dr. Jitendra Singh inaugurated the conference.
• The National e-Governance Awards 2025 were presented during the conference.
• A total of 19 digital governance projects were awarded.
• These included 10 Gold Awards, 6 Silver Awards, and 3 Jury Awards.
• Awardees included central and state departments, local bodies, and academic institutions.
• About 70 speakers participated from government, academia, and industry.
• Delegates from all 28 States and 8 Union Territories attended.
• The conference focused on using advanced technology for citizen-centric governance.
• Smt. Sarita Chauhan, Joint Secretary, Department of Administrative Reforms and Public Grievances, Govt of India presented the Visakhapatnam Declaration on e-Governance 2025.

Topic: MoUs/Agreements

7. An MoU on critical mineral exploration signed by HCL and OIL.

• On September 19, 2025, Hindustan Copper Limited (HCL) and Oil India Limited (OIL) signed an MoU for cooperation in critical mineral exploration.
• The collaboration is focused on the development of copper and associated strategic minerals.
• HCL, a Miniratna PSU under the Ministry of Mines, is engaged in copper mining, processing, and marketing.
• Oil India, a Maharatna PSU under the Ministry of Petroleum and Natural Gas, is known for its expertise in oil and gas exploration.
• The company has diversified into the mineral sector to complement its energy portfolio.
• The agreement was exchanged in the presence of HCL CMD Sanjiv Kumar Singh and OIL CMD Dr. Ranjit Rath.
• Senior officials from both organizations were also present during the signing ceremony.
• The collaboration is aligned with the objectives of the National Critical Mineral Mission of the Government of India.
• The MoU is considered a crucial step towards ensuring mineral security for India’s industrial and technological needs.
• By this partnership, the nation’s energy security and strategic mineral requirements are expected to be significantly strengthened.

Topic: Indian Economy/Financial Market

8. Japan-based Rating and Investment Information, Inc. (R&I) has raised India’s sovereign credit rating to ‘BBB+’.

• The outlook for the rating has been maintained as “Stable”. This marks India’s third credit rating upgrade in 2025.
• Earlier upgrades came from S&P in August and Morningstar DBRS in May.
• These upgrades reflect growing global confidence in India’s economic strength.
• R&I noted India’s strong growth performance and large economic size.
• It highlighted the role of India’s young population and domestic consumption.
• The agency also credited government policies for supporting economic momentum.
• Progress in fiscal consolidation was acknowledged. This was driven by increased tax revenues and reduced subsidies.
• R&I found India’s debt levels manageable due to high economic growth.
• External indicators were also viewed positively. These include a modest current account deficit and strong services exports.
• Remittance inflows and a low external debt-to-GDP ratio were noted.
• Foreign exchange reserves were described as adequate. R&I said financial system risks remain limited.
• The government has increased capital spending. However, it has still managed to lower the fiscal deficit.
• This was achieved through strong revenue generation and spending controls.
• Recent U.S. tariff hikes were identified as a risk. But India’s limited reliance on U.S. exports reduces the potential impact.
• Domestic demand-led growth further insulates the economy.
• R&I also commented on the GST reform. It acknowledged short-term revenue losses.
• But it expects higher consumption to offset the negative effects.
• The agency praised the Modi government’s economic policies. These include efforts to attract foreign investors and boost infrastructure.
• They also involve strengthening legal institutions and reducing energy dependence.
• This is the third upgrade by a major rating agency in five months.
• It underscores global trust in India’s medium-term growth outlook.
• The Indian government remains committed to inclusive, high-quality growth.
• It also aims to maintain fiscal discipline and economic stability.