Banking Awareness of 25, 26 and 27 February 2024

Topic: Indian Economy/Financial Market

1. In urban India, the top 5% of people spend about ten times higher than the bottom 5%.

• In India, the top 5% of the population has over 10 times higher Monthly Per Capita Expenditure (MPCE) than the bottom 5% of urban population.
• This was recently revealed by a Statistics Ministry survey on consumption.
• It also showed that, in terms of MPCE, Sikkim leads all States and Union Territories.
• In terms of MPCE, Chhattisgarh ranks lowest out of all the States and Union Territories.
• Based on data gathered from more than 2.61 lakh homes, the Household Consumption Expenditure Survey (HCES: 2022-23) is the source of the MPCE estimates.
• More than 1.55 lakh of these households are found in rural areas spread over all States and Union Territories in the country.
• Out of the 2.61 lakh households, more than 1.06 lakhs are located in urban areas spread over all States and Union Territories in the country.
• The survey was carried out from August 2022 to July 2023.
• According to MPCE, the average MPCE of the poorest 5% of rural Indians is ₹1,373.
• For the same demographic category in urban regions, it is ₹2,001.
• According to MPCE, the top 5% of India’s rural and urban populations has average MPCEs of ₹10,501 and ₹20,824, respectively.
• There is a consumption gap of over 664% and 940% between the poorest 5% of the population and the richest 5% in both rural and urban areas.
• Urban population spends 39% of their income on food and 61% on non-food items.
• Between 1999–2000 and 2022–2023, the percentage of expenditure on cereals decreased to nearly fourth in urban regions and nearly fifth in rural areas.
• Spending on transportation and education has increased over this time, in both rural and urban areas.
• The average MPCE in rural regions increased from ₹10,054 in 2009–10 to ₹3,773 in 2022–2023 according to survey results.
• In urban regions, MPCE increased from ₹1,984 to ₹6,459 over the same time period.
• This does not take into account the estimated prices of the free goods obtained through social transfer.
• When imputed values of free commodities from various social welfare programs were taken into account, MPCE increased in rural regions to ₹3,860 from ₹1,084 and in urban areas to ₹6,521 from ₹1,984.

Topic: Indian Economy/Financial Market

2. Steel trade deficit increased to more than ₹11,500 crore for April - January period.

• India continued to be net importer for April - January period.
• India's trade imbalance in steel grew by 15% year over year and by 30% in a single month.
• This was due to the fact that, according to a Steel Ministry report, imports from China were still rising at a rate of almost 80% year over year.
• During the same period, India was a net importer of steel, with imports of 6.8 mt (an increase of 35%). The amount exported was 5.5 mt, up 3.6%.
• According to the report, from April to June, total finished steel imports were valued at ₹56,461 crores ($6,822 million).
• Total finished steel exports were valued at ₹44,898 crores ($5,425 million) for the April to January (FY24) period.
• Over a nine-month period (April to December), the trade imbalance was ₹8,888 crore, with exports valued at ₹39,139 crore and imports valued at ₹48,027 crore.
• Even though India was a net exporter of steel, it registered a ₹10,071 crore trade deficit in the 10-month FY23 period last year.
• The value of exports was ₹44,463 crore, while imports were valued at ₹54,534 crore.
• Europe remained a significant consumer of Indian steel, with the three main markets during the first ten months of FY24 being Italy, Belgium, and Spain.
• Another important market, the UAE, saw a 37% year-over-year decline in shipments, amounting to 0.38 mt.

Topic: RBI

3. RBI has imposed a fine of Rs 2 crore on SBI.

• It has also imposed penalties on Canara Bank, City Union Bank, and Ocean Capital Market for non-compliance.
• The penalty on SBI has been imposed for violation of provisions of sub-section (2) of Section 19 of the Banking Regulation Act, 1949 (the BR Act).
• The penalty has also been imposed for violation of provisions of sub-section (2) of Section 26A of the BR Act read with the Depositor Education Awareness Fund Scheme, 2014.
• According to the Statutory Inspection for Supervisory Evaluation for FY22, SBI pledged shares worth more than thirty percent of several companies' paid-up share capital.
• Additionally, it did not credit the Depositor Education and Awareness Fund with the appropriate amount within the time frame stipulated in the BR Act.
• Canara Bank was also fined ₹32.30 lakh by RBI. A ₹66 lakh fine was imposed on City Union Bank by RBI.
• Additionally, NBFC Ocean Capital Market, located in Odisha, was fined ₹16 lakh by RBI. 

Topic: RBI

4. The Financial Literacy Ideathon has been announced by RBI.

• A Financial Literacy Ideathon has been announced by the Reserve Bank of India (RBI) for postgraduate students who are currently enrolled in accredited educational institutions.
• It is required of the students to devise innovative methods for promoting financial literacy among young people.
• The Financial Literacy Week (FLW) 2024 is being observed by RBI from February 26 to March 1, 2024.
• "Make a Right Start – Become Financially Smart" is FLW's theme.
• Participants must submitted an ideation paper with the title "Money Matters for Young Adults: Rethinking Outreach Strategies," according to RBI.
• The RBI stated that raising awareness of the benefits of fostering financial discipline at a young age is the goal.
• The Ideathon will accept entries from February 26, 2024, until March 20, 2024. Awards will be given to top three submissions.

Topic: Corporates/Companies

5. Akasa Air has been notified as a "designated Indian carrier" by the Finance Ministry.

• Akasa Air is now certified as a "designated Indian carrier" by the Ministry of Finance.
• This will enable Akasa Air to expand internationally.
• In exercising the authority granted by sub-section (5) of section 5 of the Central Sales Tax Act, 1956, the central government has notified SNV Aviation Private Limited, also known as Kasa Air, as a "designated Indian carrier."
• This subsection states that no tax is to be paid on fuel for foreign flights in order to prevent tax from being exported.
• The capital of Qatar, Doha, has become the first international destination on Akasa Air's fast growing network.
• The airline announced its international operations last week.
• Akasa Air claims to be the first Indian airline to fly overseas in a record period of 19 months since inception.

Topic: Infrastructure and Energy

6. "Sudarshan Setu", the nation's longest cable-stayed bridge, inaugurated by PM Modi in Gujarat.

• He dedicated to the nation "Sudarshan Setu," the nation's longest signature-stayed bridge, which is approximately 2.32 km long.
• The bridge at Dwarka, Gujarat, connects the mainland of Okha with the island of Beyt Dwarka.
• According to PM Modi, the nation is headed toward becoming the world's fifth-largest economy.
• Sudarshan Setu has footpaths decorated with verses from Srimad Bhagavad Gita and images of Lord Krishna on either side.
• Moreover, solar panels that produce one megawatt of electricity are mounted on the upper portions of the footpath.
• Five new AIIMS were dedicated to the nation by the PM.
• These AIIMS are located at Rajkot (Gujarat), Bathinda (Punjab), Raebareli (Uttar Pradesh), Kalyani (West Bengal) and Mangalagiri (Andhra Pradesh).

Topic: Summits/Conferences/Meetings

7. On 26 February, the 13th Ministerial Conference (MC13) of the World Trade Organization started in Abu Dhabi, UAE.

• This four-day high-level meeting will bring together the world's trade ministers to evaluate the functioning of the multilateral trading system and chart the future of the WTO.
• Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade of the UAE is chairing the conference.
• Commerce and Industry Minister Piyush Goyal is leading the Indian delegation.
• Trade ministers from the 164 member countries of the WTO are meeting against the backdrop of an uncertain global economic situation due to the Red Sea crisis, the Ukraine-Russia war, and the Israel-Hamas conflict.
• Ahead of the meeting, the G-33, a coalition of developing countries, of which India is a key member, urged the WTO to take forward agricultural trade talks at the 13th WTO Ministerial Conference.
• They will discuss the lack of progress, particularly regarding food security challenges faced by developing nations.
• The group stressed the urgency of action, citing the Food and Agriculture Organization's estimate of some 600 million people facing long-term hunger by 2030.
• The 13th WTO Ministerial Conference presents an important opportunity for WTO Members to address critical issues in the global trading system, particularly agricultural trade and food security.
• In 1996, the First ministerial conference was held in Singapore.

Topic: Indian Economy/Financial Market

8. Poverty has come down to below 5% in India: NITI Aayog CEO

• NITI Aayog CEO B V R Subrahmanyam said that people are becoming prosperous in rural and urban areas.
• He said that as per the latest consumer expenditure survey, poverty has come down to 5%.
• The National Sample Survey Office (NSSO) released data on household consumption expenditure for the year 2022-2.
• According to this data, the per capita monthly household expenditure has become doubled in 2022-23 as compared to 2011-12.
• This survey has kept people in 20 different categories and the average per capita monthly expenditure for all categories stood at Rs 3,773 in rural areas and Rs 6,459 in urban areas.
• If the trend continues then it might become possible that urban and rural consumption become the same in the coming years.
• Consumption in rural areas is growing faster than in urban areas. The gap was 84 per cent in 2011-12 and has come down to 71 per cent in 2022-23.
• As per the NSSO survey, consumption of cereals and food has decreased. In rural areas, the consumption of cereals has decreased.
• Consumption of cereals and food in urban areas has also decreased as a share in the average MPCE from six per cent in 2011-12 to less than four per cent now.
• In food, people are drinking more milk, eating fruits and more vegetables.

Topic: Infrastructure and Energy

9. The first solar project of NTPC Renewable Energy started operation in Rajasthan.

• On 21 February, NTPC Renewable Energy Limited's (NTPC-REL) first solar project in Chhattargarh, Rajasthan, announced the commencement of commercial operations of 70 MW capacity.
• With this, the installed capacity of NTPC Group has reached 73,958 MW.
• Currently, NTPC-REL has 17 projects under implementation with a total capacity of more than 6000 MW.
• With this, the total renewable energy operational capacity of NTPC Group has reached 3,448 MW.
• Chhattargarh Solar Project has a scheduled full capacity of 150 MW and is expected to be operational by March 2024.
• This capacity was acquired under SECI-Tranche: III and the beneficiary of this project is the State of Rajasthan.
• The project is designed to generate 370 million units of energy per year, enough to power 60,000 homes, while also saving 3 lakh tonnes of CO2 emissions and conserving 1,000 MMTPA of water every year.

Topic: Miscellaneous

10. UAE has been removed from FATF’s ‘grey list’.

• The Financial Action Task Force (FATF) has decided to remove UAE from its ‘grey list’.
• UAE was placed under scrutiny in 2022 after FATF highlighted the risk of money laundering and terrorist financing.
• The European Union listed the UAE as a high-risk country for money laundering and terrorist financing.
• Last year, ESMA barred European banks and others from clearing trades with the Dubai Commodities Clearing Corporation.
• The fifth FATF Plenary was held under the Singapore Presidency of T. Raja Kumar in Paris on 21-23 February.
• The Financial Action Task Force (FATF) is the body for global money laundering and terrorist financing watchdog. It sets international standards that aim to prevent these illegal activities and the harm they cause to society.

Read Banking Awareness PDF - 25, 26 and 27 February 2024