Banking Awareness of 28, 29 and 30 August 2025

Topic: Banking System 

1. BharatPe has partnered with Unity Small Finance Bank to launch the Unity Bank BharatPe Credit Card.

• This is India’s first credit card with EMI options for daily expenses like groceries, bills, travel, utilities, insurance, and lifestyle purchases.
• The card operates on the NPCI RuPay platform.
• It can be linked with UPI for secure payments at millions of merchants nationwide.
• The card has a zero-fee policy, with no joining fees, annual charges, processing fees, or early repayment penalties.
• Users can prepay their EMIs anytime without penalties.
• This makes credit use simple and hassle-free.
• EMI options are flexible, allowing up to 12 months to manage larger purchases.
• The card offers unlimited 2% cashback in Zillion Coins on every transaction converted to EMI.
• This cashback applies across all merchants and platforms without restrictions.
• Zillion Coins can be redeemed through the BharatPe app for brand vouchers, products, or to pay credit card bills.
• Additional benefits include free access to domestic and international airport lounges. Preventive health check-ups are also included.
• Unity Small Finance Bank is a Scheduled Commercial Bank promoted by Centrum Financial Services Ltd and Resilient Innovations Pvt Ltd.
• BharatPe is a brand under Resilient Innovations Pvt Ltd, founded in 2018.
• It aims to improve financial inclusion for Indian merchants.
• In 2018, BharatPe launched India’s first interoperable UPI QR code.
• It also introduced the country’s first zero MDR payment acceptance service.

Topic: Appointments

2. The government has appointed Urjit Patel, former RBI Governor, as the new Executive Director at the International Monetary Fund (IMF).

• His term will last for three years from when he takes charge or until further notice.
• Patel replaces K V Subramanian, whose tenure ended early this year.
• Patel resigned as RBI Governor in December 2018, about nine months before his term was due to end.
• His early resignation was linked to a major conflict between the government and the RBI.
• Before him, only Sir Benegal Rama Rau had resigned early from the RBI Governor post due to disagreements with the government.
• Patel cited personal reasons for stepping down, but the resignation followed disputes over RBI autonomy and transfer of surplus funds.
• There were also disagreements on easing restrictions for public sector banks.
• Patel became RBI Governor on September 4, 2016, after serving as Deputy Governor since January 2013.
• He was the 24th Governor of the Reserve Bank of India.
• During his tenure, he served as director at the Bank for International Settlements.
• He was also a member of the Financial Stability Institute’s advisory board.
• He started his career as an economist at the IMF.
• K V Subramanian’s term at the IMF ended early due to a government order in April 2025. Subramanian joined the IMF in November 2022.

Topic: Indian Economy/Financial Market

3. India's industrial output rose by 3.5 percent in July 2025, reaching its highest level in four months.

• This rise was largely caused by a strong rebound in the manufacturing sector.
• The last time such growth was recorded was in March 2025, when industrial production increased by 3.9 percent.
• In comparison, July 2024 had seen a higher growth rate of five percent in industrial output.
• Manufacturing grew by 5.4 percent in July 2025, improving from 3.7 percent in June.
• Electricity production posted a slight increase of 0.6 percent.
• Mining activity continued to weaken, showing a sharp contraction of 7.2 percent.
• Infrastructure and Construction Goods output surged by 11.9 percent year-on-year.
• Consumer durables registered growth of 7.7 percent. Intermediate goods output rose by 5.8 percent over the same period.
• Capital goods production increased by five percent. Consumer non-durables recorded gain of just 0.5 percent.
• Primary goods output dropped by 1.7 percent, indicating a slowdown in this segment.

Topic: Indian Economy/Financial Market

4. India is on track to become the world's second-largest economy on a PPP basis by 2038.

• On 27 August, consultancy EY reported that India is projected to emerge as the world's second largest economy in purchasing power parity (PPP) terms by 2038.

• It supported by strong demographics, robust savings, and a sustainable fiscal path.
• The economy could touch $20.7 trillion in PPP terms by 2030, according to IMF estimates cited in the report.
• The United States, Germany, and Japan are expected to be overtaken by India in PPP rankings by that time.
• China is projected to remain the largest economy, valued at $42.2 trillion in PPP terms by 2030.
• India's comparative advantage lies in its young population—which will have an average age of 28.8 years in 2025—and its strong savings and investment rates.
• Government debt as a share of GDP is anticipated to decline from 81.3% in 2024 to 75.8% in 2030.
• Structural reforms and investments in critical technologies are expected to further drive expansion.
• By 2028, India is also expected to surpass Germany to become the world’s third-largest economy in market exchange rate (MER) terms.
• EY emphasized that India’s growth trajectory aligns with its vision of becoming a developed nation, or Viksit Bharat, by 2047.

Topic: Agriculture

5. The government extended duty-free cotton imports till December 31, 2025.

• On 28 August, the Finance Ministry announced that duty-free cotton imports have been extended by three months until December 31, 2025.
• On August 18, the government announced that the 11% import duty will be suspended till September 30, when the current cotton marketing season will end.
• The move has been welcomed by the textile sector, which is facing uncertainty due to the 50% U.S. tariff.
• India is expected to close the current cotton season (October 1, 2024 to September 30, 2025) with imports of about 40 lakh bales.
• The arrival of the new crop for the next season (October 1, 2025, to September 30, 2026) is likely to increase after Diwali.
• The government raised the minimum support price for cotton by 8% for the next season.
• The Cotton Corporation of India has prepared to carry out MSP operations in major cotton-growing hubs. It purchased close to 100 lakh bales this season.
• Exporters stated that the extension would provide access to quality cotton at the right prices.
• The US is the second largest cotton supplier to India after Australia.

Topic: Banking System

6. Punjab National Bank (PNB) has opened its first branch dedicated to startups in New Delhi.

• The branch is designed to support the government’s Startup India initiative.

• It focuses on encouraging entrepreneurship and fostering innovation.
• The branch offers complete banking services customized for startup needs.
• An MoU was signed between PNB and the Software Technology Parks of India (STPI).
• This agreement aims to provide financial assistance to eligible startups.
• Sudhir Dalal, General Manager at PNB, signed the MoU.
• Subodh Sachan, Director at STPI, was the other signatory.
• STPI will share a list of startups it has incubated, onboarded, or graduated.
• This list will help PNB connect with startups needing financial support.
• The goal is to ease access to the bank’s startup-specific financial products.
• The collaboration is expected to act as a bridge between startups and financial institutions.

Topic: Banking/Financial/Govt Schemes

7. The Union Cabinet has approved a revamp of the PM Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) Scheme.

• The loan disbursement period has been extended. It will now continue until 31st March 2030, instead of ending in December 2024.
• The revised scheme has a total budget of ₹7,332 crore.
• The first loan amount has been increased. It has gone up from ₹10,000 to ₹15,000.
• The second loan amount has also been raised. It has increased from ₹20,000 to ₹25,000.
• The third loan amount remains the same at ₹50,000.
• A UPI-linked RuPay Credit Card will be given to eligible beneficiaries.
• This applies to those who repay their second loan successfully.
• Vendors using digital payments can earn cashback.
• They can receive up to ₹1,600 through retail and wholesale transactions.
• The restructured scheme aims to benefit 1.15 crore street vendors.
• This includes 50 lakh new beneficiaries. The scheme’s coverage is being expanded.
• It will now include census towns and peri-urban areas.
• The UPI-linked RUPAY Credit Card is designed to offer quick access to funds.
• It can be used for both personal and business needs.
• The scheme was first launched on 1st June 2020. It was created to support street vendors affected by the COVID-19 pandemic.
• As of July 2025, over 96 lakh loans have been disbursed.
• These loans amount to ₹13,797 crore and have helped more than 68 lakh vendors.

Topic: Banking/Financial/Govt Schemes

8. The Pradhan Mantri Jan Dhan Yojana completed 11 years on 28 August, marking a milestone in financial inclusion.

• This scheme was announced by Prime Minister Narendra Modi on 15th August 2014 from the Red Fort.
• The formal launch was done on 28th August 2014 and was described by the Prime Minister as a festival for the poor’s liberation from a vicious cycle.
• PMJDY is considered one of the world’s largest financial inclusion programs.
• It was designed as a National Mission to ensure access to financial services for every household.
• The scheme ensures availability of a basic savings bank account, access to need-based loans, and access to a range of financial services such as a money remittance facility, insurance, and pension.
• Every household was aimed to be provided with at least one basic banking account under the mission.
• The accounts under the scheme are linked to the Core Banking System and supported by RuPay debit cards.
• Mobile banking services using USSD were also enabled even on feature phones for greater accessibility.
• The scheme has successfully covered both urban and rural areas, making banking services more inclusive.