Banking Awareness of 4, 5 and 6 January 2025

Topic: Reports and Indices

1. In December 2024, Manufacturing PMI declined to 12-month low level of 56.4.

• The rate of job creation increased to four-month high level in December 2024.
• Manufacturing employment increased for 10th month continuously during December.
• In December 2024, manufacturing PMI declined from 56.5 in November.
• However, manufacturing PMI remained above its long-run average of 54.1.
• PMI is based on responses from purchasing executives of 400 companies in the manufacturing sector.
• The value of index above 50 shows expansion. Its value below 50 shows contraction.
• Manufacturing is considered the biggest job multiplier.

Topic: Indian Economy/Financial Market

2. India’s capital expenditure declined by 12% during April-November period, according to data from Controller General of Accounts (CGA).

• In April-November period, fiscal deficit declined by nearly 6% in absolute number.
• However, fiscal deficit increased as a share of the budget estimate.
• During FY2023-24, the government aims to spend ₹11.11 lakh crore as capital expenditure.
• During April-November period, actual expenditure was more than ₹5.13 lakh crore.
• This was ₹5.85 lakh crore during the corresponding period of the last fiscal.
• On a month-on-month basis, capital expenditure increased by about 21% in November as against October.
• As per the data, fiscal deficit for April-November was ₹8.47 lakh crore or 52.5% of the estimate for the financial year.
• During the corresponding period of the last fiscal, it was ₹9.06 lakh crore or around 51%.
• For the first eight months of the current financial year, net tax receipts were at ₹14.43 lakh crore or 56% of the annual target.
• Net tax receipts stood at ₹14.36 lakh crore for the same period last year.
• Total government expenditure for the eight months stood at ₹27.41 lakh crore.

Topic: Indian Economy/Financial Market

3. In November 2024, output growth of eight core industries reached to a four-month high level of 4.3%.

• This was lower than the 7.9% growth observed in November 2023.
• The output growth in November 2024 was higher than the revised 3.7% growth recorded in October 2024.
• The core sector industries growth stood at 2.4% in September 2024.
• In August 2024, the core sector industries recorded a contraction of 1.5%.
• In November 2024, six of the eight core industries’ outputs were positive.
• For April-November 2024, the aggregate core industries output increased 4.2%.
• This was substantially lower than 8.7% in same period last fiscal.
• Coal (7.5%), refinery products (2.9%), fertilizers (2%), cement (13%), steel (4.8%) and electricity (3.8%) are the sectors that showed positive growth in November 2024.
• Crude oil (-2.1%) and natural gas (-1.9%) are the two industries that saw output contraction.
• Core industries output growth in the first half of this fiscal year was lower than the 8.2% growth seen in the same period last year.
• Core data growth of July 2024 has been revised upwards to 6.3% by the centre from 6.1% earlier last month.
• In May 2024, core industries recorded 6.9% growth. Earlier, final growth rate for June 2024 was kept at 5%.

Topic: Banking/Financial/Govt Schemes

4. Goal-oriented deposit schemes have been introduced by SBI for customers of all ages.

• SBI has also launched two new deposit schemes, Har Ghar Lakhpati and Patrons.
• Har Ghar Lakhpati scheme is a pre-calculated Recurring Deposit to accumulate a sum of ₹1 lakh or its multiple.
• Patrons is a term deposit product for senior citizens aged 80 years or above.
• Har Ghar Lakhpati scheme is also available to minors.
• Patrons scheme offers enhanced interest rates for senior citizens (aged 80 years or above).
• This scheme is available to both existing and new Term Deposit customers.

Topic: MoUs/Agreements

5. Union cabinet approved MoU on trade of Non-Basmati White Rice between the Ministry of Cooperation of India and the Ministry of Trade of Indonesia.

• This MoU has been signed for trading of one million metric tonnes of non-basmati white rice annually based on production and international prices.
• The duration of the MoU will be four years and will get automatically extended for an additional four years.
• This agreement will be implemented by National Cooperative Exports Limited (NCEL).
• This MoU will help to resolve the issue of the trade imbalance and will strengthen India-Indonesia trade relations.
• NCEL will procure Non-Basmati White Rice (NBWR) from the open market through a transparent tender process and from cooperative societies.

Topic: Banking System

6. The revamped portal ‘BAANKNET’ for the e-auction of properties has been launched by the government on 3 January.

• Department of Financial Services (DFS) Secretary M Nagaraju launched this platform.
• The portal aims to streamline e-auctions of properties from all Public Sector Banks (PSBs), making it easier for buyers and investors to discover and participate in valuable opportunities.
• More than 122,000 properties have already been transferred to the portal for auction.
• The launch of this platform will help in the reform process of public sector banks, improve the balance sheets of banks and increase credit availability to businesses and individuals.
• The portal's listing includes residential properties such as flats, independent houses, and open plots, as well as commercial properties, industrial land and buildings, shops, vehicles, plant and machinery, and agricultural and non-agricultural land.

Topic: MoUs/Agreements

7. DPIIT signed a MoU with the Startup Policy Forum (SPF) to promote the Indian start-up ecosystem globally.

• This collaboration between Department of Promotion of Industry and Internal Trade and SPF will help start-ups thrive.
• It will help them contribute to India’s mission of becoming a global innovation hub.
• A two-day SPF Baithak will be organised from the 15th January in New Delhi under National Startup Week celebrations.
• SPF Baithak will be a gathering of founders and policymakers.
• The event will be a platform for new collaborations between DPIIT and SPF members.

Topic: Indian Economy/Financial Market

8. Government notified amendment in the Foreign Trade Policy, 2023.

• The Directorate General of Foreign Trade (DGFT) has notified the amendment in the Foreign Trade Policy, 2023.
• It has included Para 1.07A and 1.07B to bring legal backing to the FTP for consultation with stakeholders to seek views, suggestions, comments or feedback from relevant stakeholders.
• The main objective of the amendment is to encourage the participation of all stakeholders in the decision-making process.
• It will also provide a mechanism to inform reasons for not accepting views, suggestions, comments or feedback related to the formulation or amendment of the Foreign Trade Policy, 2023.
• This notification is part of the new era of inclusiveness in decision-making pertaining to trade.

Topic: Reports and Indices

9. Dynamic Ground Water Resource Assessment Report for the entire country for the year 2024 released by the Union Minister of Jal Shakti, Shri C.R. Patil, on 31 December.

• The Central Ground Water Board (CGWB) and States/UTs jointly carried out this assessment, which various stakeholders can use to take appropriate interventions.
• As per the assessment, the total annual groundwater recharge in the country is estimated at 446.90 billion cubic metres (BCM).
• Keeping an allocation for natural discharge, the annual exploitable groundwater resource is estimated at 406.19 BCM.
• The annual groundwater exploitation for all uses is 245.64 BCM.
• The average level of groundwater exploitation for the country is 60.47%.
• Out of total 6746 assessment units (Blocks/Mandals/Talukas) in the country, 4951 (73.4%) assessment units are classified as 'safe'.
• 711 (10.5%) assessment units are classified as "semi-critical", 206 (3.05%) assessment units are classified as 'critical' and 751 (11.1%) assessment units are classified as 'over-exploited'.
• Apart from these, there are 127 (1.8%) assessment units which are classified as 'brackish' because the major portion of the groundwater in the phreatic aquifers in these units is saline or saline.
• There is a significant increase in total annual groundwater recharge (15 BCM) and decrease in exploitation (3 BCM) in 2024 from the 2017 assessment.
• Recharge from tanks, ponds, and water conservation structures has shown a consistent increase in the last five assessments.
• In the year 2024, it has increased by 0.39 BCM as compared to 2023.
• With respect to the year 2017, recharge from tanks, ponds, and water conservation structures has increased by 11.36 BCM (from 13.98 BCM in 2017 to 25.34 BCM in 2024).
• The percentage of assessment units under the protected category has increased from 62.6% in 2017 to 73.4% in 2024 (the percentage of protected assessment units was 73.14% in 2023).
• The percentage of over-exploited assessment units has decreased from 17.24% in 2017 to 11.13% in 2024 (the percentage of OE assessment units was 11.23% in 2023).

Topic: Indian Economy/Financial Market

10. EPFO rolled out a new centralized system for pensioners.

• The Employees’ Provident Fund Organisation (EPFO) has fully implemented the new Centralised Pension Payments System (CPPS).
• The pilot project of the centralised system for pensioners was completed in October 2024 in Karnal, Jammu and Srinagar.
• The second pilot project was completed across 24 regional offices in November 2024. Under this project, ₹213 crore pension was disbursed to over 9.3 lakh pensioners.
• It will benefit more than 68 lakh pensioners.
• Under the existing system, EPFO's zonal/regional offices maintain separate agreements with only three to four banks.
• After the introduction of CPPS, the pensioner can take out their pension from any bank.
• Under the CPPS, the pension will be immediately credited upon release.
• From January 2025, disbursement of pensions will be allowed even without transferring the Pension Payment Orders (PPO) from one office to another.

Read Banking Awareness PDF -4, 5 and 6 January 2025