Banking Awareness of 22, 23 and 24 May 2025

Topic: Indian Economy/Financial Market

1. India's core sector growth dropped to 0.5% in April 2025.

• This is the lowest level in eight months. It marks a sharp decline from 4.6% recorded in March.
• In April 2024, core sector growth was significantly higher at 6.9%.
• Crude oil output fell by 2.8% in April. This follows a 1.9% decline in March.
• Refinery output contracted by 4.5% in April. In contrast, it had seen a small increase of 0.2% in March.
• Fertiliser production dropped by 4.2% in April. This is a sharp fall from 8.8% growth in March.
• Coal production rose by 3.5% in April. This is an improvement over the 1.6% growth recorded in March.
• Natural gas output increased slightly by 0.4% in April. This comes after a major 12.7% contraction in March.
• Steel production grew by 3% in April. However, it slowed down from 9.3% growth in March.
• Cement output increased by 6.7% in April. This is lower than the 12.2% growth seen in March.
• Electricity generation was up by 1.0% in April. This is a drop from 7.5% growth in March.
• The core sector includes coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity.
• These eight industries make up over 40% of the Index of Industrial Production (IIP).

Topic: Corporates/Companies

2. Corporate insolvency cases under the Insolvency and Bankruptcy Code (IBC) have declined sharply.

• These dropped from 1,262 in FY23 to 723 in FY25.
• The average time to complete a Corporate Insolvency Resolution Process (CIRP) has increased.
• It rose from 614 days in FY23 to 717 days in FY25.
• The approval time for resolution plans has also grown significantly.
• It increased from 611 days in FY23 to nearly 850 days in FY25.
• These durations are far longer than the 330-day limit set by the IBC.
• This limit includes extensions and time spent in litigation.
• Creditors continue to recover only a small portion of their claims.
• Recoveries have remained between 31 and 32 per cent.
• In FY25, creditors recovered 32.8 per cent. This compares to 32.1 per cent in FY24 and 31.8 per cent in FY23.
• Fewer insolvency professionals are joining the system. Registrations fell from 549 in FY22 to 110 in FY25.
• A resolution plan aims to restore the business as a going concern.
• This can involve restructuring, mergers, or other forms of corporate reorganisation.
• Corporate Insolvency Resolution Process (CIRP):
  • CIRP can be initiated by financial creditors, operational creditors, or the corporate debtor.
  • It is a legal process under the IBC to resolve corporate insolvency.

Topic: Regulatory Bodies/Financial Institutions

3. Insurance Regulatory and Development Authority of India (IRDAI) has imposed a fine of ₹1 crore on Acko General Insurance.

• The penalty was imposed for not following rules related to outsourcing activities.
• It was also due to violations in the payment of commissions and rewards to agents and intermediaries.
• IRDAI has instructed Acko to present this order at its next board meeting.
• The insurer must provide IRDAI with a copy of the board meeting minutes.
• Acko is also required to submit an action taken report.
• This report must be sent within 90 days from the date of the order.
• Acko General Insurance is a private sector general insurance company in India.
• Insurance Regulatory and Development Authority of India:
  • IRDAI was constituted as the Insurance Regulatory and Development Authority (IRDA) in 1999 after the recommendations of the Malhotra Committee report. IRDA was later renamed IRDAI.
  • It was constituted as an autonomous body to regulate and develop the insurance industry.
  • It was incorporated as a statutory body on April 19, 2000. 
  • Debasish Panda is the Chairperson of IRDAI. It is headquartered in Hyderabad.
  • It is an autonomous and statutory body under the jurisdiction of Ministry of Finance.

Topic: Banking/Financial/Govt Schemes

4. Union Minister Pralhad Joshi launched three new digital platforms—Depot Darpan, Anna Mitra, and Anna Sahayata.

• These are designed to modernize and strengthen India’s Public Distribution System (PDS).
• The goal is to boost transparency, improve infrastructure, and support both workers and beneficiaries involved in food grain distribution.
• India’s PDS currently serves over 81 crore people.
• It operates through a vast network of more than 5.38 lakh Fair Price Shops.
• Depot Darpan is a digital monitoring platform for food grain depots.
• It allows self-assessment and helps improve operational and infrastructure standards.
• It uses advanced technologies such as IoT sensors and CCTV for real-time monitoring and analytics.
• The system is expected to save ₹275 crore in FCI depots.
• It could also generate ₹140 crore in extra income in CWC warehouses through better use of space.
• Anna Mitra is a digital tool for key PDS stakeholders. It provides stock tracking, sales reports, alerts, and grievance handling features.
• FPS dealers, DFSO officers, and food inspectors each have tailored features on the platform.
• These include geo-tagged inspections and FPS performance ratings.
• Anna Sahayata is a citizen-friendly grievance redressal system. It supports over 81 crore PDS beneficiaries.
• The platform uses WhatsApp, IVRS, and automatic speech recognition to make filing complaints simple and accessible.
• Anna Mitra is currently available in Assam, Uttarakhand, Tripura, and Punjab. It supports Hindi and English.
• Anna Sahayata is in the pilot phase in Gujarat, Jharkhand, Telangana, Tripura, and Uttar Pradesh.
• It supports five languages—Hindi, Gujarati, Telugu, Bangla, and English.
• Both platforms will be expanded across all states and union territories. They will be integrated with state-level systems for nationwide coverage.

Topic: Summits/Conferences/Meetings

5. India assumed the chairmanship of the Asian Productivity Organization at the 67th Governing Body Meeting in Jakarta.

• India officially took over the chairmanship of the Asian Productivity Organization (APO) for 2025–26 during the ongoing 67th Session of the Governing Body Meeting (GBM) of the APO.
• The Governing Body Meeting was held from 20–22 May 2025 in Jakarta, Indonesia.
• Shri Amardeep Singh Bhatia, Secretary of DPIIT and APO Director for India, led the Indian delegation.
• India reaffirmed its commitment to advancing APO Vision 2030 and expanding the Green Productivity 2.0 framework.
• The focus was placed on promoting regional cooperation to boost innovation, sustainability, digital transformation, and entrepreneurship.
• India expressed its intention to contribute to inclusive and effective APO programs addressing productivity challenges in Asia-Pacific.
• More than 100 Indian professionals participate annually in APO capacity-building programs through the National Productivity Council.
• These programs contribute significantly to improving productivity in India's industrial, service, and agricultural sectors.
• Several demonstration projects focused on green productivity and Industry 4.0 applications for MSMEs have also been implemented across the country.
• The Governing Body, APO’s top decision-making authority, meets annually to decide strategic directions and review performance.
• The APO, established in 1961, includes 21 member economies, with India being a founding member and a key contributor to its initiatives.

Topic: Miscellaneous

6. The Department of Telecommunications has launched the Financial Fraud Risk Indicator (FRI).

• This tool is designed to help prevent cyber-related financial crimes.
• FRI enables real-time intelligence sharing with banks, UPI providers, and financial institutions.
• It strengthens payment security by flagging suspicious mobile numbers before transactions take place.
• The system allows for quick, coordinated responses across telecom and financial sectors.
• FRI was developed under the Digital Intelligence Platform (DIP).
• It assigns mobile numbers a fraud risk rating: Medium, High, or Very High.
• These ratings are based on reports from Indian Cybercrime Coordination Centre National Cybercrime Reporting Portal, DoT’s Chakshu platform, and financial institutions.
• DoT’s Digital Intelligence Unit also shares a Mobile Number Revocation List.
• This list includes numbers deactivated for reasons like cybercrime, verification failure, or misuse.
• Since fraud numbers are typically used for only a few days, early warnings are critical.
• Once a mobile number is reported, it goes through a multi-layer analysis.
• The resulting risk level is then quickly shared with all relevant stakeholders.
• PhonePe was among the first to adopt FRI.
• It blocks transactions involving Very High risk numbers and alerts users through its "PhonePe Protect" feature.
• PhonePe's data shows that FRI is highly accurate in identifying fraud-prone numbers.
• Other UPI platforms like Paytm and Google Pay are also integrating FRI.
• Together, these platforms handle over 90% of UPI payments in India.
• Several banks are also using FRI data to detect and stop cyber fraud.
• The tool is expected to become a standard across the financial sector.
• By using FRI, millions of users could be protected from digital fraud.
• FRI is a step toward building a safer, more resilient digital financial ecosystem in India.

Topic: Indian Economy/Financial Market

7. India’s GDP is expected to grow between 6.4% and 6.5% in Q4 of FY25.

• This projection comes from a recent report by the State Bank of India (SBI).
• The Indian economy has remained strong despite global economic challenges.
• SBI’s Economic Research Department used a Nowcasting Model to estimate growth.
• This model includes 36 high-frequency indicators.
• The indicators cover industrial output, service sector performance, and global trends.
• The model is based on a dynamic factor method. It draws on data from Q4 FY13 to Q2 FY23.
• The India Meteorological Department (IMD) expects the monsoon to arrive early in Kerala. It could arrive within four to five days.
• This would be the earliest mainland monsoon since May 23, 2009.
• Favorable rainfall is likely to support agriculture.
• India has set a foodgrain production target of 354.64 million tonnes for 2025–26.
• The 2024–25 target was 341.55 million tonnes.
• So far, 332.3 million tonnes have been produced this year.
• Household surveys show that inflation expectations are easing.
• This is encouraging consumers to spend more on non-essential items.
• Increased discretionary spending is driving demand-led growth.
• However, consumer confidence remains steady.
• This suggests that households remain cautious about global economic conditions.
• Ongoing global trade tensions are a concern. There is also a high degree of policy uncertainty worldwide.
• These factors are expected to slow global economic activity.
• The International Monetary Fund (IMF) projects global growth at 2.8% in 2025. It is expected to be 3% in 2026. India’s economy is more stable in comparison.

Topic: Banking System

8. India Post Payments Bank and Aditya Birla Capital joined hands to expand credit access across the country.

• A strategic partnership has been established between India Post Payments Bank (IPPB) and Aditya Birla Capital Limited (ABCL) to enhance the reach of loan products across India.
• Through this collaboration, IPPB will act as a referral partner offering ABCL's financial solutions like personal loans, business loans, and loans against property.
• Customers of IPPB will now be able to access loan services digitally via Aditya Birla Capital's tech-enabled platforms, ensuring quick approvals and minimal documentation.
• Advanced AI and data analytics have been integrated into the lending process to provide customized financial solutions for a broad spectrum of customers.
• The loan application process has been designed to be hassle-free, in alignment with the goal of improving financial accessibility across rural and urban India.
• IPPB will refer customers to ABCL on a non-risk participation basis, with final credit decisions to be made solely by ABCL.
• This partnership supports the vision of Digital India and aims to empower every citizen financially by bridging the gap between rural customers and mainstream credit services.
• India Post Payments Bank (IPPB):
  • IPPB has been established under the Department of Posts, Ministry of Communications, with 100 percent equity owned by the Government of India.
  • IPPB was launched on September 1, 2018.
  • IPPB aims to serve the unbanked and underbanked by leveraging its vast postal network of 1.65 lakh post offices and 3 lakh employees, especially in rural areas.
  • IPPB provides simple 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.