Banking Awareness of 22, 23, 24 and 25 June 2025

Topic: Indian Economy/Financial Market

1. India’s core sector growth fell to 0.7% in May 2025.

• This is the weakest performance in the last nine months.
• Growth in April 2025 was revised upward to 1% from an earlier estimate of 0.5%.
• In contrast, core sector output grew by 6.9% in May 2024.
• Steel production increased by 6.7% in May. This was higher than April’s growth of 4.4%.
• Cement output rose sharply by 9.2% in May, compared to 6.3% in April.
• Refinery products showed a turnaround with 1.1% growth in May. This followed a 4.5% contraction in April.
• Coal production grew by 2.8% in May. This was slower than the 3.5% growth recorded in April.
• Electricity generation dropped by 5.8% in May. In April, it had grown by 1.7%.
• Crude oil production contracted by 1.8% in May. This was an improvement from the 2.8% contraction in April.
• Fertiliser output declined by 5.9% in May. It had fallen by 4.2% in April.
• Natural gas production was down by 3.6% in May. This was worse than the 0.9% decline in April.
• ICRA expects the IIP growth for May 2025 to be in the range of 1.5% to 2.5%.
• The eight core industries include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity.
• Together, these sectors contribute 40.27% to the Index of Industrial Production (IIP).

Topic: Reports and Indices

2. India has entered the top 100 in the UN’s Sustainable Development Goals (SDG) Index for the first time.

• It ranks 99th out of 193 countries in the 2025 SDG Index.
• India scored 67 points, according to the latest report by the UN Sustainable Development Solutions Network.
• China is ranked 49th with a score of 74.4.
• The United States is placed 44th with 75.2 points.
• Among India's neighbours, Bhutan ranks 74th with 70.5 points.
• Nepal stands at 85th with a score of 68.6.
• Bangladesh is ranked 114th with 63.9 points.
• Pakistan is much lower at 140th, with a score of 57.
• India’s maritime neighbours, Maldives and Sri Lanka, rank 53rd and 93rd, respectively.
• Only 17% of global SDG targets are expected to be met by 2030.
• The report says that global progress on the SDGs has largely stagnated.
• Conflicts, weak institutions, and limited funding are key obstacles.
• European countries continue to dominate the top of the index. Nineteen of the top 20 countries are from Europe.
• Finland is ranked first, followed by Sweden and Denmark.
• East and South Asia have made the fastest SDG progress since 2015.
• Countries like Nepal (+11.1), Cambodia (+10), and the Philippines (+8.6) have shown major improvements.
• There has been notable global progress on basic infrastructure and health.
• However, five indicators have worsened since 2015.
• These are obesity, press freedom, nitrogen overuse, biodiversity loss, and corruption.
• Barbados, Jamaica, and Trinidad and Tobago top the list of countries supporting UN multilateralism.
• Among G20 countries, Brazil ranks highest at 25th.
• In the OECD group, Chile leads at 7th position.

Topic: RBI

3. RBI has eased priority sector lending (PSL) rules for Small Finance Banks (SFBs).

• The required PSL target for SFBs has been reduced from 75% to 60% of their lending portfolio.
• This revised guideline will take effect from April 1, 2025.
• Priority sector lending covers credit to agriculture, MSMEs, education, housing, renewable energy, social infrastructure, exports, and weaker sections.
• From the financial year 2025–26, the additional 35% PSL component will be cut to 20%.
• This will bring the total PSL obligation to 60% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposures (CEOBE), whichever is greater.
• SFBs will still be required to lend 40% of their ANBC or CEOBE to standard PSL sub-sectors.
• The remaining 20% can be directed toward any one or more PSL areas where the bank has a competitive advantage.
• In March 2025, the RBI also updated PSL guidelines for all banks.
• These changes included higher loan limits for sectors such as housing and education.
• At the same time, the PSL target for urban cooperative banks (UCBs) was also reduced from 75% to 60%.

Topic: World Economy

4. Gold became the second largest reserve asset globally, surpassing the euro.

• According to a report by the European Central Bank, gold has overtaken the euro to become the second-largest foreign exchange reserve asset.
• The US dollar still leads global reserves with a 46% share, while gold now holds 20%, pushing the euro to third at 16%.
• This shift indicates a deliberate preference by central banks for bullion over paper currencies.
• Over 1,000 tonnes of gold have been acquired annually by central banks from 2022 to 2024—more than double the previous decade’s average.
• Global official gold holdings now stand at 36,000 tonnes, nearing the historic high of 38,000 tonnes from the Bretton Woods era.
• The US Federal Reserve remains the top holder with 8,133.46 tonnes, though it made no fresh purchases in Q1 of 2025.
• India’s RBI increased its reserves to 879.60 tonnes by adding 3.42 tonnes in the March 2025 quarter.
• A new World Gold Council survey revealed that 95% of central banks expect their gold reserves to increase in the next 12 months.
• Currently, gold is trading at $3,350 an ounce – just 4% lower than its all-time high of $3,500 touched on April 22.

Topic: Banking/Financial/Govt Schemes

5. Government launched ‘NAVYA’ to skill adolescent girls under Viksit Bharat@2047.

• On 24th June 2025, the Government launched NAVYA – Nurturing Aspirations through Vocational Training for Young Adolescent Girls.
• The initiative is a joint effort by the Ministry of Women and Child Development and the Ministry of Skill Development and Entrepreneurship.
• The program jointly inaugurated by Minister of State (Independent Charge) for MSDE, Shri Jayant Chaudhary, and Minister of State for Women and Child Development, Smt. Savitri Thakur.
• NAVYA is a pilot initiative aimed at providing vocational training to adolescent girls in the age group of 16-18 years with a minimum qualification of Class 10, primarily in non-traditional job roles.
• The program will cover 27 districts, including aspirational and northeastern districts across 19 States.
• The programme will be based on the features of Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and other major skill development schemes.
• PMKVY and PM Vishwakarma certificates distributed during the launch event.
• Interactions with adolescent trainees are also scheduled as part of the initiative.
• NAVYA seeks to empower young women as contributors to a self-reliant and inclusive India.

Topic: Awards and Prizes

6.  India Post Payments Bank received the prestigious Digital Payments Award.

• The Digital Payments Award 2024–25 has been conferred upon India Post Payments Bank (IPPB) by the Department of Financial Services under the Ministry of Finance.
• India Post Payments Bank (IPPB) has been honoured for its outstanding contribution towards expanding digital payments and financial inclusion across the country.
• The award was presented by Union Finance Minister Nirmala Sitharaman and MoS Pankaj Chaudhary during a ceremony held in New Delhi.
• Shri R. Viswesvaran, MD & CEO of IPPB, and Shri Gursharan Rai Bansal received the award on behalf of the bank.
• IPPB secured the first rank among all Payments Banks in the country in the Performance Index for the Financial Year 2024–25.
• A ‘Special Mention’ was also awarded to IPPB for its commendable performance during the Financial Year 2023–24.
• The bank has been acknowledged for delivering citizen-centric digital banking solutions through a tech-enabled, doorstep banking model.
• With a robust tech-driven architecture and a doorstep banking model powered by over 2 lakh postmen and Gramin Dak Sevaks, IPPB has been instrumental in promoting digital payments even in the most remote areas of the country.
• India Post Payments Bank:
  • IPPB was launched on September 1, 2018.
  • It has been established under the Department of Posts, Ministry of Communications, with 100% equity owned by the Government of India.
  • IPPB provides easy and affordable banking solutions to 11 crore customers across 5.57 lakh villages and towns in India through an intuitive interface available in 13 languages.

Topic: Appointments

7. G. Sampath Kumar has been appointed as the new Managing Director of Nippon Koei India (NKI).

• He becomes the first Indian to hold the position of managing director at NKI.
• The announcement was made by NKI, a wholly owned subsidiary of ID&E Holdings, Japan.
• Katsuya Fukasaku, the outgoing MD, has been named as the new chairman of the company.
• The company aims to expand its footprint in India, West Asia, and the Asia-Pacific region through this leadership change.
• Sampath Kumar is an alumnus of the Indian Institute of Technology (IIT) BHU.
• He brings over 35 years of experience in civil engineering and IT consultancy to his new role.
• Nippon Koei India (NKI):
  • NKI was founded in 2008 and is headquartered in New Delhi.
  • It is a wholly owned subsidiary of Integrated Design & Engineering Holdings Co. Ltd. (ID&E) of Japan.
  • It is an ISO-certified engineering and consultancy company specializing in infrastructure development projects in India and other developing countries.

Topic: Indian Economy/Financial Market

8. Uttar Pradesh has become top state in digital public procurement through the Government e-Marketplace (GeM).

• The state recorded total procurement worth Rs 65,227.68 crore between FY 2020–21 and FY 2024–25.
• In FY 2024–25 alone, UP processed over 72 lakh procurement orders.
• These orders amounted to Rs 5.43 lakh crore in value.
• Since its launch, GeM has handled over 2.9 crore transactions.
• The total value of these transactions has crossed Rs 14 lakh crore.
• GeM offers more than 11,000 product categories. It also provides services across 330 categories.
• Uttar Pradesh showed consistent growth in digital procurement over the five-year period.
• The value of procurement was Rs 4,622.16 crore in FY 2020–21.
• It rose to Rs 11,286.29 crore in FY 2021–22.
• The figure further increased to Rs 12,242.48 crore in FY 2022–23.
• It peaked at Rs 20,248 crore in FY 2023–24. There was a slight dip to Rs 16,828.75 crore in FY 2024–25.
• The Urban Development Department was the highest procuring entity in the state.
• It made purchases worth Rs 11,588.28 crore through GeM.
• The Health and Family Welfare Department followed with Rs 9,257.14 crore.
• The IT and Electronics Department procured goods worth Rs 8,241.60 crore.
• In November 2024, UP reformed its procurement rules.
• These were aligned with the General Financial Rules (GFR) 2017 and GeM’s standard terms.
• This enabled full adoption of GeM across all state departments.
• It also created a streamlined and unified digital procurement system.