Banking Awareness of 25, 26, 27 and 28 May 2025

Topic: Indian Economy/Financial Market

1. India's net foreign direct investment fell sharply to $353 million in FY25.

• It had been slightly over $10 billion in FY24.
• This is according to the Reserve Bank of India's May bulletin.
• FDI inflows into India totaled $29.55 billion in FY25.
• Meanwhile, Indian firms invested $29.2 billion abroad.
• Gross FDI inflows and fresh investments crossed $81 billion.
• Repatriations and disinvestments amounted to $51.5 billion.
• The sharp decline in net FDI was due to almost equal levels of inward and outward investments.

Topic: Corporates/Companies

2. Jio Financial Services Ltd (JFSL) has received approval from SEBI to start mutual fund operations.

• The approval has been granted to its subsidiary.

• SEBI has officially registered Jio BlackRock Mutual Fund.
• It has also authorized Jio BlackRock Asset Management Pvt Ltd to act as the fund’s Asset Management Company.
• The certificate of registration was issued by SEBI on May 26, 2025.
• Previously, on October 29, 2024, JFSL had announced the creation of two companies.
• These were Jio BlackRock Asset Management and Jio BlackRock Trustee Pvt Ltd.
• The purpose was to set up a mutual fund business, pending regulatory clearance.
• In January, JFSL and BlackRock made a combined investment of ₹117 crore in the mutual fund company.
• Both partners subscribed to 5.85 crore equity shares.
• Each share was valued at ₹10.
• These shares were issued by Jio BlackRock Asset Management Pvt Ltd.
• The venture is structured as a 50:50 partnership between JFSL and BlackRock.
• Both parties initially invested ₹82.5 crore each.
• The joint application to launch mutual fund services was submitted to SEBI on October 19, 2023.

Topic: Corporates/Companies

3. LIC has set a new Guinness World Record.

• It achieved the highest number of life insurance policies issued in a single day.
• On January 20, 2025, LIC agents issued 5,88,107 life insurance policies.
• This record was accomplished across various locations in India.
• A total of 4,52,839 agents participated in this.
• The achievement took place during LIC’s “Mad Million Day.”
• This initiative encouraged every agent to issue at least one policy.
• The accomplishment set a new global standard for agent productivity in 24 hours.
• Guinness World Records officially verified and recognized the record.
• LIC is India’s largest life insurance company.
• The corporation credited its dedicated agency network for this success.
• Siddhartha Mohanty is currently the CEO and MD of LIC.

Topic: Banking/Financial/Govt Schemes

4. In March 2025, a total of 16.33 lakh new employees were registered under the ESI Scheme.

• The provisional payroll data of ESIC shows that 16.33 lakh new workers were added in March, 2025.
• Approximately 7.96 lakh young employees up to 25 years were enrolled, constituting about 49% of new registrations.
• The number of female employees registered stood at 3.61 lakh in the same month.
• A total of 100 transgender employees were also enrolled, highlighting inclusive coverage.
• 31,514 new establishments were brought under the ESI Scheme, extending social security to more workplaces.
• The payroll data is provisional and generated continuously for accuracy.
• The increase in registrations reflects the expanding reach of the ESI Scheme across India.
• The data confirms ESIC’s commitment to inclusive social security benefits for all sections of society.
• Employees' State Insurance Corporation (ESIC):
  • It was founded in 1952.
  • It is a statutory body under the Ministry of Labour and Employment.
  • It was set up under the ESI Act 1948 for the implementation of the ESI scheme.

Topic: Indian Economy/Financial Market

5. India's GDP growth is projected at 6.8% in Q4 FY25 with healthy consumption.

• India’s GDP growth for Q4 FY25 is projected at 6.8%, resulting in a full-year growth of 6.3%.
• Growth momentum has been supported by agriculture, hotels, transport, and construction sectors.
• Rural demand remains strong, while urban consumption shows a mixed outlook that requires monitoring.
• Strong central capital expenditure towards the end of Q3 is expected to support Q4 investment growth.
• Agricultural activity remained robust with a 2% increase in Rabi sowing compared to last year.
• Domestic tractor sales rose by 23.4% year-on-year in Q4, outperforming Q3 figures.
• Fertilizer sales recorded 5.4% growth in Jan-Feb 2025, higher than Q3 growth of 0.4%.
• Domestic air passenger traffic increased by 12% year-on-year in Q4, up from 11.4% in Q3.
• Industrial Production (IIP) mining expanded by 2.1% in Q4, slightly higher than Q3’s 1.8%.
• Despite a 4% contraction in central capex during Jan-Feb 2025, overall construction activity is expected to improve in Q4 due to lagged effects.
• IIP infrastructure and construction items also showed improvement in Q4 FY25, growing 7.6% over 7% in Q3.
• However, highway construction and bitumen consumption declined by 8.4% and 3.8%, respectively, in Q4.

Topic: RBI

6. The Reserve Bank of India has approved a record surplus transfer of over ₹2.68 lakh crore to the central government.

• This transfer is for the financial year 2024-25.
• The decision was made during a board meeting held in Mumbai.
• RBI Governor Sanjay Malhotra chaired the meeting.
• The Board discussed and reviewed the current economic situation in India and around the world.
• It also approved the RBI’s Annual Report for the year.
• The Financial Statements for 2024-25 were formally accepted as well.
• The surplus amount was calculated under the revised Economic Capital Framework.
• This framework sets guidelines for managing the central bank’s capital and risks.
• It requires the Contingent Risk Buffer (CRB) to be between 5.50% and 7.50% of the RBI’s balance sheet.
• For this year, the CRB has been raised to 7.50%, which is the upper limit.
• This is the highest surplus amount ever transferred by the RBI.
• The move is intended to provide financial support to the central government.
• It comes at a time when the economy is facing several ongoing challenges.

Topic: Indian Economy/Financial Market

7. India became the fourth largest economy of the world.

• India has overtaken Japan to become the world’s fourth-largest economy, according to IMF data.
• The announcement was made by NITI Aayog CEO B.V.R. Subrahmanyam, who cited official figures.
• Currently only the United States, China and Germany are ahead of India.
• India's nominal GDP is estimated to have increased to $4,187.017 billion, higher than Japan's estimated $4,186.431 billion.
• India remains the world's fastest-growing major economy and is the only country projected to record growth of over 6% over the next two years.
• This rapid growth is expected to take India's GDP to $5,584.476 billion by 2028, making it the third largest economy, surpassing Germany.
• India’s economy is expected to grow significantly in the coming years, unlike Japan’s.
• Meanwhile, Germany is projected to have no GDP growth in 2025, and a meager 0.9% increase in 2026.
• The United States, which remains the world's largest economy, is projected to have a GDP of $30,507.217 billion in 2025, followed by China at $19,231.705 billion.
• The IMF data used for this ranking is based on nominal GDP at current prices.

Topic: Summits/Conferences/Meetings

8. The 10th Governing Council meeting of NITI Aayog held in New Delhi.

• On 24 May, the 10th Governing Council Meeting of NITI Aayog was chaired by Prime Minister Narendra Modi.
• The event was held at the Bharat Mandapam venue in New Delhi.
• It was attended by Chief Ministers and Lieutenant Governors of 24 states and 7 union territories.
• The theme this year was Viksit Rajya for Viksit Bharat@2047.
• The meeting aimed to shape a long-term roadmap for India’s development by 2047.
• During the meeting, development priorities and progress of central schemes were discussed in detail.
• The Prime Minister said that India has joined the top five economies of the world, and 25 crore people have come out of poverty.
• The Prime Minister said that the Government of India has approved a scheme of Rs 60,000 crore for skill development.
• States should focus on modern training infrastructure and rural training centers to enhance skill development.
• He asked states to make cities engines of stability and growth and urged them to focus on tier 2 and tier 3 cities.
• He said an urban challenge fund of Rs 1 lakh crore is being created to set up new enterprises.
• He spoke about the Vikas Krishi Sankalp Abhiyan, in which about 2,500 scientists will visit villages and rural centers in the coming days and will discuss topics like crop diversification and chemical-free farming.
• He asked all chief ministers to support this effort.
• Some of the key suggestions and best practices were highlighted in the sectors like agriculture, education and skill development, entrepreneurship, drinking water, non-compliance, governance, digitalisation, women's empowerment, cybersecurity, etc.
• He said the 10th Governing Council meeting of NITI Aayog is a milestone in its 10-year journey that defines and underlines the vision of 2047.

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