Banking Awareness of 4, 5 and 6 September 2025

Topic: Indian Economy/Financial Market

1. The GST Council has proposed a clarification on post-sales discounts.

• This aims to simplify compliance and ease business operations.

• An optional simplified GST registration system will be introduced from November 1, 2025.
• It will allow automatic approval within three working days for low-risk applicants.
• To qualify, businesses must self-assess that their monthly tax liability on supplies to registered buyers will not exceed ₹2.5 lakh.
• The scheme is voluntary. Businesses can opt in or out as needed.
• It is expected to benefit nearly 96 per cent of new registrants.
• The Council also suggested faster GST refunds. One measure allows automatic sanctioning of 90 per cent of refund claims for zero-rated supplies.
• This includes exports and SEZ-related transactions.
• Another recommendation introduces provisional refunds for cases involving inverted duty structures.
• 90 per cent of the claim will be sanctioned up front.
• The Council further proposed removing the threshold limit for export-related refunds.
• This will help small exporters using courier or postal services.
• In August 2025, GST revenues rose by 7 per cent. At the same time, GST refund disbursals dropped by about 20 per cent.
• This raised concerns about possible delays in releasing refunds.

Topic: Regulatory Bodies/Financial Institutions

2. SEBI has introduced a new framework to monitor intraday positions in equity index derivatives to manage market risk.

• The new rules will take effect from October 1.
• Net intraday positions in index options are capped at ₹5,000 crore per entity.
• This cap is in contrast to the existing end-of-day limit of ₹1,500 crore.
• The gross intraday limit remains unchanged at ₹10,000 crore.
• Stock exchanges must now track positions using at least four random snapshots daily.
• One of the snapshots must be taken during peak market hours between 2:45 pm and 3:30 pm.
• Breaches of limits will trigger regulatory scrutiny. Penalties or additional surveillance deposits may be imposed on violations.
• SEBI's objective is to curb excessive risk-taking and ensure orderly market functioning through tighter oversight.

Topic: Banking System

3. State Bank of India’s Start-up branch organized its first-ever pitch event called “Dream2Demo.”

• The event aimed to connect emerging entrepreneurs directly with prominent investors.

• Several key dignitaries attended the event. These included Natrajan Mallupillai, CEO of IITM Research Park, and Sivarajah Ramanathan, MD of Startup TN.
• Vivekanand Choubey, Chief General Manager of SBI Chennai Circle stated that the event aligns with national missions like Make in India and Startup India.
• He said it helps nurture entrepreneurial development.
• The event featured SBI’s customized financial products for start-ups. These included equity-linked funding solutions.
• SBI also presented its collaborations with Startup TN and the IIT Madras Incubation Cell.
• Through this initiative, SBI reaffirmed its dedication to supporting innovators.
• It aims to guide them from the grassroots level to the global stage.

Topic: Taxation

4. The GST Council has introduced a major revision of tax rates.

• This move is aimed at supporting common citizens, key industries, farmers, and the overall economy.
• Taxes on many middle-class and household items have been reduced.
• The previous rates of 12% or 18% are now brought down to 5%.
• All personal life and health insurance policies are now exempt from GST. This includes senior citizen and family floater plans.
• Thirty-three essential life-saving drugs will now attract zero GST. These were earlier taxed at 12%.
• Three critical medicines for cancer, rare diseases, and chronic conditions are also now tax-free. They were earlier under the 5% slab.
• General medicines will now be taxed at 5% instead of the earlier 12%.
• Medical equipment used in healthcare and diagnostics will now attract only 5% GST. Earlier, these were taxed at 18%.
• Daily-use items like shampoo, soap, toothpaste, toothbrushes, bicycles, and kitchen utensils will now fall under the 5% GST rate.
• GST on ultra-high temperature (UHT) milk, paneer, chena, and Indian breads has been removed. These items now have zero GST.
• Food products such as snacks, noodles, chocolates, sauces, cornflakes, butter, ghee, and preserved meat will now be taxed at 5%. Earlier, they were taxed at 12% or 18%.
• Appliances like air conditioners, large TVs, and dishwashers will now attract 18% GST. This is a reduction from the previous 28%.
• GST on small cars and motorcycles has also been reduced from 28% to 18%.
• All types of agricultural equipment will now be taxed at 5% instead of 12%.
• The GST Council has simplified the tax system. It has reduced the number of tax slabs from four to two.
• The 12% and 28% slabs have been removed. Only the 5% and 18% slabs will remain.
• The expected financial impact of these changes is ₹48,000 crore per year.
• However, the government considers this cost sustainable.
• The 56th meeting of the GST Council took place in New Delhi.
• It was chaired by Finance Minister Nirmala Sitharaman.
• The meeting included Chief Ministers, Deputy Chief Ministers, and Finance Ministers from various states and union territories.
• All new GST rates will take effect on September 22nd. This date marks the beginning of Navratri.

(Source: News on AIR)

Topic: Appointments

5. Rajit Punhani took charge as CEO of FSSAI.

• Rajit Punhani assumed charge as the Chief Executive Officer of the Food Safety and Standards Authority of India (FSSAI).
• He is a 1991-batch IAS officer belonging to the Bihar cadre.
• Punhani brings with him over three decades of administrative experience across various levels.
• He earlier served as Secretary in the Ministry of Skill Development and Entrepreneurship.
• He has also worked as Secretary of the Rajya Sabha and Chief Executive Officer of Sansad TV.
• Food Safety and Standards Authority of India (FSSAI) is a statutory body under the Ministry of Health and Family Welfare, Government of India.
• Its headquarters is in New Delhi. It was constituted on September 5, 2008, under the provisions of the Food Safety and Standards Act, 2006.
• This authority regulates the manufacture, storage, distribution, sale, and import of food items while setting standards to ensure food safety.

Topic: Summits/Conferences/Meetings

6. The 20th Global Sustainability Summit addressed by Union Minister Shri Bhupender Yadav in New Delhi on 2 September.

• The event was organized by the CII-ITC Centre of Excellence for Sustainable Development.
• Representatives from more than 10 countries and senior leaders from the industry were present at the gathering.
• Shri Yadav described India’s growth model as one that balances economic progress with ecological responsibility.
• He emphasized that sustainability should be treated not as a target but as a lifestyle rooted in resilience, regeneration, and responsibility.
• He informed that on August 29, 2025, the Government of India had notified the Environmental Audit Rules, 2025, which provide a formal framework for environmental audits across the country.
• The Minister informed that the revised methodology for the Green Credit Programme has been notified on 29th August 2025 to allow greater private participation and eco-restoration.
• On August 31, 2025, the ministry also amended the Forest (Conservation and Augmentation) Rules, 2023, to facilitate the objectives of achieving self-sufficiency in the critical minerals sector under the newly launched National Critical Minerals Mission, 2025.
• Under this mission, 24 minerals have been identified as critical and strategic, and 29 others have been identified as vital for strengthening the country's economy and national security.

Topic: Banking/Financial/Govt Schemes

7. BHARATI initiative has been launched by Agricultural and Processed Food Products Export Development Authority to boost agri-food exports.

• The initiative was launched by Union Commerce and Industry Minister Shri Piyush Goyal, UAE Minister of Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi and Union Minister of Food Processing Industries Shri Chirag Paswan during the Food & Beverages Sector Stakeholders Meeting.

• BHARATI will empower 100 agri-food startups. It will boost exports towards $50 billion target by 2030
• The new initiative BHARATI was launched on the sidelines of the “Food & Beverages Sector Stakeholders Meeting”.
• BHARATI stands for Bharat’s Hub for Agritech, Resilience, Advancement and Incubation for Export Enablement.
• The BHARATI initiative is designed to complement industry and government-led incubation programmes in the agriculture, food and food processing sectors.
• It also aims to attract startups working on advanced technologies.
• It will connect agri-food innovators, tech-driven solution providers.
• A nationwide awareness campaign is also part of the initiative.
• This campaign will engage stakeholders and attract solution-oriented startups from across India.

Topic: MoUs/Agreements

8. An MoU signed by Indian Railways and SBI to enhance Insurance Benefits for Railway Employees.

• On 1 September, Indian Railways (IR), one of the largest rail networks in the world, and the State Bank of India (SBI), the country’s largest public sector bank, signed a landmark MoU.

• The signing ceremony was attended by Shri Ashwini Vaishnaw, Hon’ble Minister for Railways, Information & Broadcasting, and Electronics & Information Technology.
• Under the MoU, insurance coverage for Railway employees maintaining salary accounts with SBI has been significantly enhanced.
• In case of accidental death, the insurance benefit has been increased to Rs 1 crore, while the current coverage for Group A, B, and C employees covered under CGEGIS is Rs 1.20 lakh, Rs 60,000, and Rs 30,000, respectively.
• Natural death insurance coverage of ₹10 lakh will also be provided to all employees holding only a salary account with SBI without any premium or medical examination requirement.
• Nearly 7 lakh Railway employees maintaining salary accounts with SBI are expected to benefit from this agreement.
• Key complimentary insurance covers under the MoU include an Air Accident (death) insurance of ₹1.60 crore, with an additional coverage of up to ₹1 crore on the RuPay Debit Card.
• Personal Accident insurance for Permanent Total Disablement has been set at ₹1 crore, while Permanent Partial Disability is covered up to ₹80 lakh.
• The MoU has been described as employee-centric and compassionate, particularly benefiting frontline Group C Railway personnel and other employees.