Banking Awareness of 4, 5 and 6 June 2022

Topic: Miscellaneous

1. Union Finance Ministry has given approval to EPFO Central Board of Trustees’ decision to cut interest rate to 8.1%.

• In March 2022, EPFO Central Board of Trustees’ (CBT) decided to cut interest on PF accounts from 8.5% to 8.1%.
• The interest rate of 8.1% is lowest since 1977-78. It was 8% in 1977-78.
• 8.1% interest would be paid on Employees’ Provident Fund (EPF) deposits for fiscal year 2021-22.
• Central Board of Trustees (CBT) is the apex decision-making body of EPFO.  

Topic: Infrastructure and Energy

2. India achieved target of 10% ethanol blending ahead of the schedule.

• PM Modi said this recently. He addressed the ‘Save Soil’ programme organized by Isha Foundation.
• He said that ethanol blending was at 1.5% in 2014. India aims for 10% ethanol blending by 2022.
• PM said that achievement of the goal of 10% ethanol blending has led to a reduction of 27 lakh tonnes of carbon emission.
• It has saved foreign exchange worth ₹41,000 crore. It has helped farmers earn ₹40,600 crore in the last eight years.
• PM said India has achieved the goal of sourcing 40% of its installed power generation capacity from non-fossil fuel, nine years ahead of schedule.

Topic: Awards and Prizes

3. BPCL has won Business Excellence award for cargo handling at Cochin Port.

• Bharat Petroleum Corporation Limited (BPCL) has won “Excellence in Business Performance in cargo/ship handling at Cochin Port” award for 2021-22.
• BPCL handled approximately 58% of the cargo (about 20 Million Metric Tonnes) of Cochin Port for Kochi Refinery operations.
• Rashmi Sahoo has won Times Business Award 2022. She is a young women entrepreneur and director of Ruchi Foodline.
• Bharat Petroleum Corporation Ltd (BPCL) is a Maharatna oil refining and marketing company. Its headquarters are located in Mumbai.

Topic: Reports and Indices

4. S&P Global India Services Purchasing Managers' Index (PMI) increased from 57.9 in April to 58.9 in May.

• This is highest level since April 2011. The services sector grew at fastest pace in 11 years in May on strong demand.
• Overall demand increased at the fastest pace since July 2011.
• Strong services and manufacturing activity increased the composite index to 58.3 in May.
• Purchasing Managers' Index (PMI) for manufacturing sector increased from 54.6 in April to 54.7 in May.

Topic: Appointments

5. Ashwani Bhatia has assumed charge as SEBI’s whole-time member with effect from 01 June 2022.

• Earlier, Bhatia was a Managing Director at the State Bank of India.
• He is 3^rd whole-time member of the SEBI board along with SK Mohanty and Ananta Barua.
• At present, SEBI is having 3 whole-time members and four part-time members.
• Securities and Exchange Board of India (SEBI):
  • SEBI was set up in 1988 and given statutory status in 1992. Its headquarters is located in Mumbai.
  • It is a regulator of the securities market in India and aims to protect the interests of investors in securities.
  • Ms. Madhabi Puri Buch is the current chairperson of SEBI.

Topic: Appointments

6. Appointments Committee of Cabinet has approved appointment of MD and CEOs of three public sector banks.

• A Manimekhalai has been appointed as MD and CEO of Union Bank of India for three years.
• A Manimekhalai will replace G Rajkiran Rai. She is Executive Director at Canara Bank.
• Ajay Kumar Srivastava has been appointed as MD and CEO of Indian Overseas Bank for three years.
• Ajay Kumar Srivastava will replace Partha Pratim Sengupta. Srivastava is Executive Director at Indian Overseas Bank.
• Swarup Kumar Saha has been appointed MD and CEO of Punjab & Sind Bank for three years.
• Swarup Kumar Saha will replace S Krishnan. Saha is Executive Director at Punjab National Bank.

Topic: RBI

7. RBI may appoint one more additional director on Dhanlaxmi Bank’s Board.

• The strength of Dhanlaxmi Bank’s Board declined from eight to five.
• RBI is already having two additional directors on the bank’s board. They are DK Kashyap and Jayakumar Yarasi.
• Reduced strength of the board limits the functioning of various committees of the board.
• Banks have various committees of the board relating to nomination and remuneration, audit, non-performing assets and risk management etc.
• Suseela Menon R resigned from the Dhanlaxmi Bank Board on May 1, 2022. G Subramonia Iyer resigned as Independent Director of the Bank on December 2, 2021.
• Typically, private sector bank board consist of 9 to 12 directors.
• Under Section 36AB of the Banking Regulation Act 1949, RBI has powers to appoint additional directors to the board of a bank. 
• Dhanlaxmi Bank is Thrissur headquartered private sector bank.

Topic: Indian Economy/Financial Market

8. India's textiles and apparel exports reached its peak at $44.4 billion in FY 2021-22.

• This is the highest level of textile exports in any fiscal year so far. Export of handicrafts has increased by 41% in FY22 as compared to FY21.
• The highest number of garments and apparel were exported from India to the US (27%).
• It was followed by the European Union (18%), Bangladesh (12%) and the United Arab Emirates (6%).
• The export of cotton textiles was worth $17.2 billion. Its share in total export was 39%.
• The export of cotton registered a growth of 54% in 2021-22 as compared to the previous fiscal.
• Export of ready-made garments was USD 16 billion with 36% share in the total export.
• Export of Man-made textiles was USD 6.3 billion with a 14% share in the total export.

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