Banking Awareness of 24, 25 and 26 November 2024

Topic: Indian Economy/Financial Market

1. In October, India's exports of engineering goods increased 38.5% to $11.19 billion.

• According to an analysis conducted by industry group EEPC India, India's exports of engineering goods surpassed the $10 billion mark for the first time in the current fiscal year.
• Exports of ships, boats, and floating constructions as well as aeroplanes, spacecraft, and parts grew at high rate, which was the main driver of the increase.
• In October of fiscal 2024–2025, iron and steel exports experienced their first positive month of growth.
• Over the April–October 2024–25 period, cumulative engineering exports increased 8.27 percent (year over year) to $66.59 billion.
• In October 2024, engineering's share of total merchandise exports was 28.72 percent.
• Throughout the April–October 2024–25 period, it was 26.75 percent.
• In October 2024, India's biggest export destination for engineering was still the United States.
• During the month, engineering shipments to the US rose 16% to $1.61 billion.
• From $348.3 million in October 2023 to $825.2 million in October 2024, engineering exports to the United Arab Emirates increased by 137%.

Topic: Reports and Indices

2. The HSBC Flash India Composite Output Index increased from 59.1 in October to 59.5 in November.

• This indicates a sharp rate of expansion that was the strongest in three months and above its long-run average.
• This index combines performance in manufacturing and service sector.
• This index is based on survey conducted among 400 manufacturing and 400 service providers.
• Since composite data became available in December 2005, the rate of job growth has surged to its sharpest point.
• In November, cost pressures in India's private sector reached their greatest level since August 2023.
• Inflation was high and the fastest it has been in less than 12 years, the survey report noted.

Topic: Taxation

3. More than ₹52,000 crore collected from GST on insurance premia in last five years.

• Centre said around ₹12,000 crore have been GST collection from unexempted educational services, such as commercial training and coaching.
• Major beneficiary of this rise are states because they get more than 70% of GST collected.
• GST collection was over ₹29,000 crore. It was over Rs 23,000 crore through health insurance premia.
• About ₹4,700 crore was collected through re-insurance premia under life and health insurance.
• GST rate on premia for health insurance, term and unit-linked insurance plans attracts 18% GST.
• On endowment plans, the GST is 4.5% for premium paid during the first year. It is 2.25% from the second year.
• For life insurance in the form of single premium annuity policies, the GST rate is 1.8%. Rates are the same for all age groups.

Topic: Banking System

4. Punjab National Bank has become a Partnership for Carbon Accounting Financials (PCAF) signatory.

• By implementing globally recognized guidelines for calculating and reporting greenhouse gas (GHG) emissions related to its loan and investment operations, PNB is reaffirming its dedication to proactive climate action.
• In FY24, PNB disclosed its financed emissions in the Business Responsibility and Sustainability Report (BRSR) using the PCAF Standard.
• The RBI's draft framework on climate-related financial risk disclosures is in line with PNB's decision to join PCAF.  
• As a result, starting in FY 2025–2026, banks must report on governance, strategy, and risk management for financial risks and opportunities associated to climate change.
• Punjab National Bank (PNB) is the country’s second largest public sector bank.
• A multinational group of financial institutions called PCAF is working to develop a coordinated method for determining and reporting greenhouse gas (GHG) emissions related to their investments and loans.
• In 2015, 14 Dutch financial institutions, led by ASN Bank, established PCAF.

Topic: Miscellaneous

5. IndusInd Bank has collaborated with UNICEF for strengthening climate resilience in five districts.

• The aim of collaboration is to improve disaster preparedness, government policies and implement climate-responsive systems.
• The names of five districts are Dharashiv (Maharashtra), Begusarai (Bihar), Virudhunagar (Tamil Nadu), Baran (Rajasthan) and Bahraich (Uttar Pradesh).
• It is part of IndusInd Bank’s Holistic Rural Development program (Climate Action section) in Aspirational Districts.
• District-level disaster risk reduction programs will be promoted by the bank in collaboration with UNICEF.
• The CSR Trust for SDGs in India (CTSI) will oversee the program.
• IIT Gandhinagar will create a monitoring and early warning system.
• The Gorakhpur Environment Action Group will focus on training and capacity building for local officials.

Topic: Appointments

6. The name of Binod Kumar has been recommended by FSIB for the post of MD and CEO of Indian Bank.

• Kumar is serving as Executive Director of Punjab National Bank.
• Kumar will replace S L Jain on his superannuation next month.
• Financial Services Institutions Bureau (FSIB) interviewed 15 candidates for the post.
• FSIB had selected Asheesh Pandey for the post in April. But RBI had raised some reservation over his name.
• Appointments Committee of the Cabinet will take final decision on the FSIB recommendation.
• FSIB is headed by Bhanu Pratap Sharma, who is former Department of Personnel and Training Secretary.
• Its other members are Animesh Chauhan, Deepak Singhal, and Shailendra Bhandari.

Topic: Banking/Financial/Govt Schemes

7. PAN 2.0 Project of Income Tax Department has been approved by centre.

• The Cabinet Committee on Economic Affairs (CCEA) has approved the PAN 2.0 Project of the Income Tax Department.
• This project will have financial implications of one thousand 435 crore rupees.
• Under this project, the existing system will be completely upgraded and there will be unified portal.
• The existing Permanent Account Number will be the same.
• The PAN 2.0 Project is an e-Government initiative.
• It aims to improve the digital experience of taxpayers by re-engineering the business processes of taxpayer registration services through technology-driven transformation of PAN/TAN services.
• The present PAN/TAN 1.0 eco-system will be upgraded with this, which will combine the core and non-core PAN/TAN operations and provide PAN validation services.
• By making it possible to utilise PAN as a Common Identifier for all digital systems of designated government agencies, the PAN 2.0 Project aligns with the government's objective as embodied in Digital India.

Topic: RBI

8. The transaction limit for UPI 123Pay increased from ₹5,000 to ₹10,000 by the RBI.

• This change will benefit millions of feature phone users across India who have limited access to the Internet.
• UPI 123Pay is a unique service that allows digital payments on feature phones without the need for internet connectivity.
• As per instructions from the National Payments Corporation of India (NPCI), this update, which is already effective, requires full compliance by January 1, 2025.
• Transactions of up to ₹10,000 are aimed to be enabled by this update, enhancing access to digital payments in these underprivileged areas.
• In areas with unreliable internet access, UPI 123Pay offers offline functionality through methods like Interactive Voice Response (IVR), missed calls, OEM (Original Equipment Manufacturer) apps, and even voice technology for payment processing.
• This increase in transaction limits means that farmers, small traders, and microenterprises can now carry out large transactions digitally, reducing their dependence on cash.

Topic: Corporates/Companies

9. JSW Steel replaced by Zomato in BSE Sensex from December 23.

• JSW Steel replaced by Zomato in BSE Sensex as part of the index reconstitution which came into effect from December 23.
• Reconstitution of several indices has been announced by BSE's wholly-owned subsidiary Asia Index Private Ltd.
• These indices included BSE 100, BSE Sensex 50 and BSE Sensex Next 50.
• Six stocks found their way into the BSE 100 index. These are given below.

• There are three additions to BSE Sensex 50. These are Zomato, Jio Financial Services and PSU Hindustan Aeronautics (HAL).
• These will replace HDFC Life Insurance Company, Bharat Petroleum Corporation (BPCL) and LTIMindtree.

Topic: Summits/Conferences/Meetings

10. COP 29 fixed a target to raise $300 billion annually by 2035.

• During COP 29 in Baku, nations agreed to a $300 billion annual global financing target to assist developing countries in addressing the effects of climate change.
• India objected to the agreement, saying it was insufficient for developing countries.
• Developing nations opposed the agreement's adoption procedure. They were also against the agreed upon sum.
• The main objective of COP 29 was to bring together almost 200 nations in Baku and come to a historic agreement that would increase public funding for poor nations by thrice, from the initial target of $100 billion per year to $300 billion per year by 2035.
• Countries will coordinate efforts from all stakeholders to increase public and private funding for developing nations to $1.5 trillion annually by 2035.
• The COP29 agreement stipulates that progress will be assessed on a regular basis, with a decision review in 2030 and important reports in 2026 and 2027.
• The true test of progress will be the national climate plans that are due in 2025.
• Furthermore, by 2035, the UK wants to cut emissions by 81% from 1990 levels.
• A deal on government-to-government carbon markets was reached at COP29.
• The next Conference of Parties (COP) to UNFCCC, COP30, will be organized in Belem, Brazil, in November 2025.

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