Banking Awareness of 4, 5 and 6 June 2023

Topic: Infrastructure and Energy

1. Renewable energy will account for 35% of total energy generation in India in FY27.

• Renewable energy sources are predicted to produce 710 billion units in 2026-27.
• Renewable energy is predicted to account for more than one-third of total energy generation in the country by 2026-27, and around 44% by 2031-32.
• Renewable energy sources are predicted to generate 710 billion units of electricity. It will account for 35% of total energy generation in 2026-27.
• This is predicted to rise to 44%, or 1,172 billion units, by 2031-32.
• Solar energy is predicted to be the most significant contributor, followed by hydro and wind energy.
• Renewable energy generation stood at 203.55 billion units in FY23. It increased from 170.91 billion units in FY22.
• It accounted for 12.53% percent of total energy generated (1,624.47 billion units) in India.
• During the period, solar energy accounted for 6.28% of total generation, while wind energy accounted for 4.42%.
• Rajasthan led the states in renewable energy generation, with 41 billion units generated.
• Rajasthan was followed by Gujarat and Karnataka, each with 30 billion units.
• The overall renewable energy generation in Tamil Nadu was 28 billion units.
• In FY23, Andhra Pradesh and Maharashtra produced 16 billion and 17 billion units, respectively. Overall, the southern region generated the most renewable energy (83 billion units), followed by the northern region and western region.

Topic: Committees/Commissions/Taskforces

2. RBI’s Committee for Review of Customer Service Standards has released its report.

• The committee has proposed that Deposit Insurance and Credit Guarantee (DICGC) Scheme should be extended to PPIs (prepaid payment instruments).
• It has also proposed a centralised database of KYC documents and a common portal for lodging and tracking complaints.
• The committee said RBI may examine whether DICGC cover can be extended to bank PPIs and later to non-bank PPIs.
• The committee has suggested that the Charter of Customer Rights should be made enforceable. Other proposals of the committee are:
  • Consolidating customer service regulations for all regulated entities
  • Setting up a common complaint portal
  • Strengthening banks’ grievance redressal mechanisms
  • Developing and publishing a ‘Customer Service and Protection Index’
  • Conducting periodic and regular thematic studies across entities
  • Keeping UPI transactions outside the stipulated limits on debit savings account transactions
  • Encouraging the use of digi-lockers
  • Providing a dedicated telephone helpline number for senior citizens and differently-abled customers
  • Standardisation of the ATM interface
• The committee said that RBI may also consider asking the Indian Banks’ Association (IBA) to establish a fund.
• This fund should be used to directly compensate banks’ internal ombudsmen to avoid conflicts of interest.
• RBI’s Committee for Review of Customer Service Standards:
  • The formation of the committee was announced in April 2022. It was set up in May 2022.
  • It was set up under the chairmanship of former RBI deputy governor BP Kanungo.
  • It was set up to evaluate and review the quality of customer service and to suggest measures to improve the quality of customer service. It was also to examine evolving needs and identify best practices.

Topic: Reports and Indices

3. Services Purchasing Managers’ Index (PMI) declined to 61.2 in May 2023.

• Services PMI in May is the second highest in 13 years. It stood at 62 in April 2023.
• According to S&P Global Market Intelligence survey, services sector did well despite a slight decline from April.
• The better performance of service sector also helped in the highest-ever job creation in May.
• External demand for Indian services continued to improve in May.
• Services sector has more than 50% share in Gross Value Added (GVA).

Topic: Indian Economy/Financial Market

4. The settlement of derivative contracts on Bank Nifty has been shifted by the National Stock Exchange (NSE) from Thursday to Friday.

• The change will be effective from July 14. As per the NSE circular, the first Friday expiry will be on July 14, 2023.
• All existing contracts with Thursday expiry will be revised to Friday on July 6
• Recently, BSE changed the lot size and expiry day of monthly, weekly, and long-dated futures and options contracts on Bankex and Sensex indices. The changes became effective from May 15.
• BSE shifted the expiration day of its monthly, weekly, and long-dated futures and options contracts from Thursdays to Fridays.
• The lot size for futures and options contracts of Sensex has been reduced from 15 to 10.
• The lot size for futures and options contracts of Bankex index has been changed from 20 to 15.
• Futures and options on Nifty 50, Nifty IT, Nifty Midcap 50, Nifty Infrastructure, Nifty CPSE, Nifty PSE, and individual stocks will expire on the last Thursday of the expiry month.
• Contracts on the Nifty Financial Services index will expire on last Tuesday.
• Contracts on the Nifty Midcap Select Index will expire on the last Wednesday.
• BSE Bankex index consists of 10 stocks. NSE's Bank Nifty consists of 12 stocks. Nine constituting bank stocks are common between them.
• Sensex includes 30 companies. They are traded on Bombay Stock Exchange (BSE). It was started in 1986. It is a benchmark index of Bombay Stock Exchange.

Topic: Banking System

5. Axis Bank and credit card platform, Kiwi has entered into partnership.

• They have entered into partnership to launch the Credit on UPI app.
• The aim of the app is to offer a one-stop solution for RuPay credit card users.
• Kiwi Credit Card UPI app users will get a digital RuPay credit card instantly.
• They can link the UPI and Rupay Card in the app to help them avail the Credit on UPI offers and cashback.
• Axis Bank:
  • It is a private bank. It is headquartered in Mumbai, Maharashtra.
  • It was founded in 1993. Amitabh Chaudhry is its MD & CEO.

Topic: Banking System

6. ESAF Small Finance Bank has adopted e-signature for micro-loan disbursals.

• It has disbursed more than 5.27 lakh loans through e-signatures as on March 31.
• The Small Finance Bank has also implemented an office automation tool.
• This tool automates and digitises all internal office notes sent for approval.
• The branch operations department of the bank has devised a process to discontinue the printing of eight mandatory reports at branch locations.
• Earlier in May 2023, ESAF Small Finance Bank recorded a 452% increase in net profit to Rs 302.33 crore in FY23.
• ESAF Small Finance Bank is a Kerala based Small Finance Bank (SFB). It was founded as a small finance bank in March 2017. 

Topic: Banking System

7. ‘Turbo UPI’ payment service has been launched by Razorpay.

• With the help of Turbo UPI, customers of online merchants can make directly make UPI payments without getting redirected to a third-party UPI app during checkout.
• Turbo UPI also provides insights into the drop-off pattern of end-users.
• Turbo UPI enables merchants to control the entire payment experience of their customers, end-to-end.
• Razorpay is a payment solution provider in India. Harshil Mathur and Shashank Kumar are its founders.

Topic: Banking System

8. Project Kuber has been launched by SBI in Bengaluru.

• The State Bank of India has launched Project Kuber to cater to the banking needs of customers.
• It has been launched by Bengaluru Circle of SBI. This project will have four Transaction Banking Hubs and One Corporate Salary Package Hub.
• These hubs have been inaugurated by Nand Kishore, chief general manager, SBI, Bengaluru Circle.
• These hubs are located at SBI Administrative Building, in KG Road, and Sampige Road, in Malleswaram.
• Transaction Banking Hubs will offer service to corporate/non-corporate clients. It will help them from account opening to onboarding on SBI’s digital platforms.
• These hubs will act as a one-stop destination for all payment and collection-related requirements.
• A dedicated team will help business partners and customers in using digital banking services like Yono Business, e-Payments, Cash Management Products, etc.
• State Bank of India (SBI):
  • It is a nationalized public sector bank.
  • The current SBI was founded on 01 July 1955.
  • Its headquarters is in Mumbai, Maharashtra.
  • Dinesh Kumar Khara is its chairperson.

Topic: RBI

9. RBI Governor Shaktikanta Das launched ANTARDRIHSTI.

• It is a Financial Inclusion Dashboard. It will provide the required insight to assess the progress of financial inclusion.
• It will also provide the required insight to monitor the progress of financial inclusion.
• It will also enable the ability to gauge the extent of financial inclusion across the country.
• The dashboard is presently intended for internal use in the RBI.
• It will facilitate more financial inclusion through a multi-stakeholder approach.

Topic: Banking System

10. UPI reached to record 9 billion transactions worth ₹14 lakh crore.

• According to the data released by the National Payments Corporation of India, 9 billion transactions has been made through UPI in May.
• The overall value of the UPI transactions stood at ₹14.89 lakh crore with an increase of 43 per cent on a year-over-year basis.
• 8.89 billion UPI Transactions were recorded in April while transactions in March were 8.68 billion.
• In FY 2022-23, the UPI payment system processed a total of 83 billion transactions, amounting to a value of 139 lakh crore rupees.
• In 2022-23, UPI accounted for about 75 per cent of the total transaction volume in the retail segment.
• Unified Payments Interface (UPI) is one of the globally accepted payment systems and has emerged as a trusted payment mode ever since its launch in 2016.
• UPI is an instant payment system. It has been developed by NPCI. It makes the possible instant transfer of money between any two individuals' bank accounts.

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