Banking Awareness of 23, 24 and 25 October 2024

Topic: Banking/Financial/Govt Schemes

1. The loan limit under the Prime Minister Mudra loan scheme has been increased from 10 lakhs rupees to 20 lakhs rupees.

• Finance Minister Nirmala Sitharaman has announced the decision as part of the Union Budget for 2024-2025 in July.
• The Department of Financial Services (DFS) said that the new Tarun Plus category has been created under the Scheme.
• For entrepreneurs who have paid back their prior Tarun loans, this category will provide loans between 10 lakh and 20 lakh rupees.
• The Credit Guarantee Fund for Micro Units (CGFMU) would now cover loans up to 20 lakh rupees, DFS stated, making it easier for small firms to obtain credit.
• Mudra loans under the Pradhan Mantri Mudra Yojana (PMMY) offer up to ₹20 lakhs in loans without collateral or third-party guarantees.
• Under PMMY, the schematic interventions have been named "Shishu," "Kishor," "Tarun," and, more recently, "Tarun Plus."
• These indicate the beneficiary micro unit's or entrepreneur's stage of growth and development as well as their financial requirements.
• They also serve as a reference point for the next phase of development.

Topic: Indian Economy/Financial Market

2. According to the Finance Ministry, Indians' overseas investments increased by 58% during the first half of the current fiscal year.

• Outflow, however, fell to a three-month low in September. 
• Experts opine that even though there has been a dip, the momentum has not slowed down sequentially.
• The Finance Ministry's Economic Affairs Department has collated data on overseas direct investment (ODI).
• According to this data, the amount for the six months (April through September) increased to over $8,900 million, compared to over $5,600 million over the same period in the previous fiscal year.
• But in September 2024, there was a $1,454 million outflow as opposed to $1,798 million in August.
• Singapore is the main destination, receiving one-fourth of the entire outflow from India out of 155 nations.
• Singapore provided more than two-thirds of the overall outflow, along with the US, UK, Netherlands, and Mauritius.
• Just the banking, insurance, and business services sectors received 41% of the overall outflow.  

Topic: Reports and Indices

3. HSBC's flash India Composite Purchasing Managers' Index increased to 58.6 in October 2024.

• It stood at 10-month low level of 58.3 in September 2024.
• The index has been above the 50-level for 39 consecutive months. This is its longest expansionary trend since June 2013.
• The manufacturing index increased to 57.4 in October from 56.5 in September.
• Reading for services industry increased slightly to 57.9 in October from 57.7 in September.
• The survey showed job creation increased at the fastest pace since February 2006.
• HSBC's flash India Composite Purchasing Managers' Index is compiled by S&P Global.

Topic: Appointments

4. RBI has approved 3rd term for MD and CEO of Axis Bank, Amitabh Chaudhary.

• Amitabh Chaudhry’s re-appointment as MD and CEO at Axis Bank has been approved by RBI for three years, effective January 1, 2025.
• He was for the first time appointed as the bank CEO in January 2019.
• His reappointment is with effect from January 1, 2025 till December 31, 2027.
• The bank’s board and shareholders had earlier approved Chaudhry’s re-appointment.
• Before joining Axis Bank, Chaudhry led HDFC Standard Life Insurance Company Limited (HDFC Life).

Topic: Awards and Prizes

5. Chiratae Ventures declared Chiratae Ventures Patrick J. McGovern Awards for 2024.

• Narayana Murthy was awarded the India Lifetime Achievement Award. He is founder of Infosys Limited.
• Shantanu Narayen won the Global Lifetime Achievement Award. He is Chair and CEO at Adobe.
• Abhinav Asthana got the Exceptional Entrepreneurial Achievement Award. He is CEO and Founder at Postman.
• Chiratae Ventures is global technology venture capital fund. It is one of India’s largest homegrown VC funds.
• Patrick J. McGovern Awards commemorate Patrick J. McGovern.
• Patrick J. McGovern was anchor investor of Chiratae’s first fund and the founder of International Data Group (IDG).
• Leaders in India who have established and grown businesses that have significantly impacted their respective industries are recognized with the India Lifetime Achievement Award.
• The contribution of international leaders on India's tech entrepreneurial ecosystem is honored with the Global Lifetime Achievement Award.

Topic: Reports and Indices

6. India’s expenditure on education is higher than countries like China and Japan: UNESCO’s report.

• As per a report by UNESCO, between 2015 and 2024, India spent about 4.1 percent to 4.6 percent of its GDP on education.
• The UN 'Education 2030 Framework for Action' recommends countries allocate 4-6 percent of their GDP to education.
• A new series of reports from the UNESCO Institute for Statistics on world education statistics has revealed that government expenditure on education was between 13.5 per cent and 17.2 per cent during 2015-2024.
• The report mainly focused on the global education investment trends, particularly in achieving sustainable development goals (SDG) 4.
• India has been investing more in education in terms of both GDP percentage and government expenditure as compared with other Central and Southern Asian countries.
• South Asian countries Nepal and Bhutan allocate around 4-6 per cent of their GDP to education.
• The world average of public expenditure on education has declined from 13.2 per cent in 2010 to 12.5 per cent in 2020.

Topic: Indian Economy/Financial Market

7. IMF projected India’s GDP growth to be 7%.

• The International Monetary Fund (IMF) maintained its projection for India’s GDP growth at 7% for the current fiscal year.
• IMF’s World Economic Outlook (WEO) forecasted India’s growth rate to moderate to 6.5% in the fiscal year 2025-26.
• The GDP growth projection has decreased from 8.2 per cent in 2023 to 7 per cent in 2024 and 6.5 per cent in 2025.
• However, China’s growth outlook 2024 was lowered to 4.8% from 5%.
• IMF also updated the forecast for the US. It raised the 2024 growth estimate to 2.8%, up from the previous forecast of 2.6%.
• Global growth will remain steady at 3.2% for both 2024 and 2025.
• During the annual meetings, the IMF called for reforms with the World Bank during its annual meetings.

Topic: Indian Economy/Financial Market

8. RBI said that India's real GDP growth rate is likely to be 7.2% in FY 2024-25.

• Reserve Bank of India Governor Shaktikanta Das has said India's growth remains intact as its fundamental drivers - consumption and investment demand - are gathering pace.
• Mr Das said in the RBI's monthly bulletin, India's real GDP growth rate is likely to be 7.2% in FY 2024-25.
• He said private consumption prospects look bright due to improved agricultural scenario and rural demand.
• The continued surge in services would also support urban demand, he added.
• Government expenditure of the Centre and the states is expected to increase in line with budget estimates.
• According to the RBI document, CPI inflation is projected at 4.5% for 2024-25.

Topic: Miscellaneous

9. Supreme Court upheld the States’ right to regulate industrial alcohol.

• A Constitution bench of nine judges with a majority of 8:1 upheld the States’ right to regulate industrial alcohol.
• Entry 8 gives States the power to regulate the production, manufacture, possession, transport, purchase and sale of intoxicating liquor.
• SC judges stated that the phrase ‘intoxicating liquor’ in Entry 8 of the State List in the Seventh Schedule of the Constitution would include industrial alcohol within its ambit.
• Entry 8 of List II seeks to enhance the scope of the entry beyond potable alcohol.
• The Supreme Court stated that Entry 8 was both an industry-based as well as a product-based entry in the State List.
• CJI stated that the term ‘intoxicating liquor’ in Entry 8 should have a broad definition as far as possible.
• Many states had challenged the Centre’s position that it had exclusive control over industrial alcohol.

Topic: Summits/Conferences/Meetings

10. Kazan Declaration adopted at the BRICS summit.

• On October 23, the 16th BRICS summit concluded with the adoption of the Kazan Declaration, a comprehensive document outlining key areas of cooperation and the bloc's unified stance on global issues.
• The summit held in Kazan, Russia, saw useful discussions on strengthening multilateralism, combating terrorism, promoting economic growth and addressing concerns of the global south.
• The summit was attended by leaders from more than 20 countries, including Chinese President Xi Jinping, Indian Prime Minister Narendra Modi, United Arab Emirates President Sheikh Mohammed bin Zayed Al Nahyan, and Iranian President Masoud Pezeshkian.
• Under the theme "Strengthening Multilateralism for Just Global Development and Security," the Kazan Declaration stressed the importance of BRICS solidarity and strategic partnership.
• The declaration reaffirmed support for the aspirations of member states to become permanent members of the United Nations Security Council.
• Cooperation in the financial sector was another element of the declaration, including elements such as payment settlement in national currencies.
• During the summit, climate change was also another area of ​​interest for all the leaders.

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