Banking Awareness of 23, 24 and 25 July 2023

Topic: Miscellaneous

1. Two commemorative coins will be issued by the government to mark India’s G20 presidency.

• India is holding the G20 presidency from December 1, 2022 to November 30, 2023.
• The coins of ₹100 and ₹75 denominations will be coined at the mint.
• Commemorative coins are considered legal tender. They are not released for general circulation. They can be sourced from the specified agencies.  
• Dimensions of both the coins will be similar. They will be circular in shape with outside diameter of 44 millimeters.
• Their metal composition will be a quaternary alloy with silver, copper, nickel and zinc.
• The face of both coins will have the lion capital of Ashoka Pillar in the centre with the ‘Satyamev Jayate’ inscribed below.
• On the reverse face, both coins will have the design of the logo of India’s G20 presidency in the centre.
• ‘Vasudhaiva Kutumbakam’ will be written in Devnagari script on the upper periphery of the coin.
• “ONE EARTH • ONE FAMILY • ONE FUTURE” in English will be written on lower periphery of coins.
• The theme of India’s G20 Presidency is “Vasudhaiva Kutumbakam” or “One Earth · One Family · One Future”. It is drawn from Maha Upanishad.

Topic: Taxation

2. Karnataka’s Authority for Advance Ruling (KAAR) has ruled that chikkies with cocoa will attract GST at the rate of 18%.

• However, chikkies without cocoa will attract GST at the rate of 5%.
• Bengaluru-based Sirimiri Nutrition Food Products Private Ltd sought an advance ruling from KAAR on GST for different types of chikkies.
• It submitted that chikkies are to be taxed at 5% GST.
• All the sugar confectionery without cocoa are covered under heading 1704. Items under this heading attract GST at the rate of 5%.
• However, sugar confectionery containing cocoa is covered under chapter heading 1806.
• So, Chocolate Peanut Chikkies will attract GST at the rate of 18%, KAAR said.
• AAR rulings are applicable only to the applicant and jurisdictional tax authorities.

Topic: Indian Economy/Financial Market

3. India’s engineering exports decline for the third straight month in June 2023.

• They have fallen 11% YoY to $8.53 billion. India's engineering exports to key markets like the United States, the European Union (EU), and China have kept on declining in June 2023.
• Exports to the US declined 12.5% to $1.45 billion. Exports to the EU declined 16.2% to $1.51 billion.
• Exports to China declined 20% to $184 million. Almost threefold increase in engineering exports to Russia have been recorded in June 2023.
• During the April-June of this fiscal year, exports to Russia recorded a four-fold increase to $337.4 million as against $89.7 million in the same period of last fiscal year.
• Metal sector is the most significant contributor to the decline.
• Engineering exports fell 6.95% year on year in June 2023, excluding the export of iron and steel.
• 17 out of 34 engineering segments recorded positive year-on-year growth in June 2023.
• Remaining 17 segments recorded negative growth in exports in June 2023.
• Major engineering products, like iron and steel, most non-ferrous products (excluding copper, nickel, and lead products), have shown decrease in exports in June 2023 compared to June 2022.
• Industrial machinery and parts, two- and three-wheelers, auto components and parts, auto tyres, railway transport, and hand tools have also shown decrease in exports in June 2023 compared to June 2022.

Topic: RBI

4. NongHyup Bank has been included in the 2nd schedule to the Reserve Bank of India Act, 1934.

• Nonghyup Bank is an agricultural bank. It is headquartered in Jung-gu, Seoul, South Korea.
• It was established in 2012. It is now owned by the South Korean National Agricultural Cooperative Federation (NACF).
• Nonghyup Bank entered into India in 2016. With the inclusion in 2nd schedule, the bank will get certain benefits and rights.
• RBI has launched the 2022-23 round of its Survey on International Trade in Banking Services (ITBS).
• The survey on ITBS is carried out annually since 2006-07.
• It provides information on financial services given by branches/subsidiaries/joint ventures of Indian banks functioning abroad and branches/subsidiaries of foreign banks functioning in India.

Topic: Banking System

5. Sberbank will set up Information Technology (IT) centre in Bengaluru.

• Sberbank is Russia’s largest lender. Its branch in India has received RBI’s permission to set up an IT unit in Bengaluru.
• Sberbank is already having a branch in New Delhi since 2010.
• Bengaluru office will focus on developing information technologies.
• It would house Sberbank’s in-house data processing centre. It would also handle the technological needs of Indian branch.
• Sberbank is a Russian majority state-owned banking and financial services company. It is headquartered in Moscow.

Topic: Corporates/Companies

6. The expansion of ‘WhatsApp Se Wyapaar’ program has been announced by Confederation of All India Traders (CAIT) and Meta.

• ‘WhatsApp Se Wyapaar’ program aims to digitally train and upskill 10 million local traders on the WhatsApp Business App.
• The goal of partnership is to localize digitization efforts with hyper-local digital training in 11 Indian languages across all 29 Indian states.
• Through workshops, CAIT will provide digital and skill training to help businesses digitize their storefront and build ‘digital dukaan’ on the WhatsApp Business App.
• The businesses will be educated about the features available on the app like Catalog, Quick Replies, and Click to WhatsApp Ads. 
• Through the partnership, CAIT’s digital skilling charter for the trading community will be accelerated by giving 25,000 traders access to the Meta Small Business Academy.
• Meta (formerly Facebook) is an American multinational technology conglomerate. It is based in Menlo Park, California.
• CAIT is an apex body of the trading community of India at the national level. Its headquarters is located in New Delhi. The national president of CAIT is Mr. B.C Bhartia.

Topic: Corporates/Companies

7. Power Finance Corporation (PFC) has become first member from India to join Asia Transition Finance Study Group (ATFSG).

• The joining of ATFSG was announced by PFC during the Bilateral Ministerial Meeting on the side lines of G20 summit at Goa.
• The Bilateral Meeting was held between Minister of Power and New and Renewable Energy Mr. R. K. Singh and His Excellency Mr. Yasutoshi Nishimura, Minister of Economy, Trade and Industry, Government of Japan.
• ATFSG is an initiative of Japanese Ministry of Economy, Trade and Industry for promoting sustainable transition finance for Asian Countries.
• Japanese banks, major Asian and global financial institutions, development banks, export credit agencies, and government agencies are its other members and observers.
• Power Finance Corporation Ltd (PFC):
  • Power Finance Corporation Ltd (PFC) was formed in 1986. It is headquartered in New Delhi. Rural Electrification Corporation (REC) is its subsidiary.
  • PFC is the largest infrastructure finance company dedicated to the power sector. It is under the administrative control of the Ministry of Power.

Topic: Banking/Financial/Govt Schemes

8. The government has increased the interest rate on deposits under the Employees Provident Fund (EPF) scheme to 8.15%.

• The increased interest rate is for the financial year 2022-23.
• The Ministry of Labour and Employment has conveyed to EPFO the approval of the Central government to credit interest at the rate of 8.15% per annum.
• Last year, the interest rate for EPF accounts was 8.10%.
• Employees' Provident Fund Organization (EPFO) runs the Employees Provident Fund (EPF) scheme.
• EPF scheme was launched in India in 1952. It is a retirement benefit scheme in which a certain amount is contributed by both the employer and employee every month.

Topic: Banking System

9. Banks wrote off bad loans worth over Rs 2.09 lakh crore (around US $ 25.50 billion) during 2022-23.

• In the last five years, the total loan write-off by the banking sector reached Rs 10.57 lakh crore (around $ 129 billion).
• This loan write-off by banks has decreased the gross non-performing assets (GNPA).
• Gross NPAs of banks has fallen from Rs 10.21 lakh crore in FY2018 to Rs 5.55 lakh crore by March 2023.
• As per the RBI data, Banks total written off Rs 15,31,453 crore (US $ 187 billion) since FY2012-13.
• In the last three years, banks have recovered only Rs 109,186 crore from Rs 586,891 crore loans written off.
• The total defaulted loans (including write-offs but excluding loans recovered from write-offs in three years) reached Rs 10.32 lakh crore.
• Banks have reduced their NPA by writing off defaulted loans.
• When a loan is written off by a bank, it gets out from the asset book of the bank.

Topic: Agriculture

10. India’s share in total world food grains market based on export values was 7.79% in 2022.

• In 2022, India’s share in the world food grains market based on the exported values remained at 7.79%.
• In the last few years, India’s exports of food grain has registered a continuous growth.
• India’s share in world foodgrain exports has increased from 3.38% in 2010 to 7.79% in 2022.
• The government has taken several steps to promote exports of agricultural products, including food grains.
• Export Promotion Forums (EPFs) for Rice and Nutri-Cereals have been set up under APEDA.
• The government has formed State Level Monitoring Committees, Nodal Agencies for agricultural exports, and Cluster Level Committees.
• India mainly exported agriculture products to the USA, China, Bangladesh, UAE, Vietnam, etc.
• Marine Products, Rice, Sugar, Rice –basmati, Spices, etc. were the top agricultural products exported from India.
• Top 5 importers of India’s Agriculture products are (values in USD Million):

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