Banking Awareness of 5, 6 and 7 June 2025

Topic: Reports and Indices

1. India’s services sector continued to grow in May.

• The HSBC India Services PMI rose slightly to 58.8 from 58.7 in April.
• The index has remained above the 50-point threshold for nearly four years.
• This indicates consistent expansion in the sector.
• International demand surged. This led to one of the biggest increases in export orders in over a decade of the survey’s history.
• New business volumes stayed high. Growth was supported by marketing efforts, returning customers, and strong demand conditions.
• Hiring activity accelerated to a record pace. Nearly 16% of service firms increased their workforce.
• This marked the fastest rate of job creation since the survey began in 2005.
• The HSBC India Composite PMI declined slightly to 59.3 from 59.7.
• The HSBC India Composite PMI includes both manufacturing and services.
• Despite the decline, it still signaled strong growth in overall private sector activity.

Topic: Appointments

2. Economist S. Mahendra Dev has been appointed as the new Chairperson of the Economic Advisory Council to the Prime Minister (EAC-PM).

• The role had been vacant since November 2024.
• This followed the passing of Bibek Debroy, the council’s first chairman.
• During this period, NITI Aayog Vice-Chairman Suman Bery had been handling the additional responsibility.
• Dev completed his PhD in economics at the Delhi School of Economics.
• Following his appointment, Dev resigned from his position as an independent director on the Axis Bank board.
• His resignation became effective at the close of business on June 5, 2025.
• Dev is a noted expert in agricultural policy and rural economic development.
• He also chairs the Institute for Development Studies in Andhra Pradesh.
• In the past, he was director and vice chancellor at the Indira Gandhi Institute of Development Research.
• He has also served as an independent director on the board of Kotak Mahindra Bank.
• EAC-PM is an independent body constituted to advise on economic and related issues to the government.

Topic: Appointments

3. Stefan Schaffer has been appointed by Deutsche Bank as CEO of India Global Capability Centre. 

• Stefan Schaffer has been appointed by Deutsche Bank as the new CEO of Deustche India, which is its global capability centre.
• Schaffer will also serve as the Global CIO for Corporate Functions and Head of Global Technology Centres at Deutsche Bank.
• Deutsche India was set up in 2005 to support global businesses and infrastructure functions of Deutsche Bank.
• Deutsche Bank is a German multinational investment bank and financial services company.

Topic: RBI

4. The RBI has reduced the repo rate by 50 basis points.

• It now stands at 5.5%. This is the third consecutive rate cut.
• The monetary policy stance has shifted from accommodative to neutral.
• The SDF rate has been revised to 5.25%.
• The MSF and Bank Rate have been adjusted to 5.75%.
• Lending rates linked to external benchmarks are expected to decrease.
• Banks may also lower their lending rates in response.
• The move aims to keep inflation near the 4% target. It also supports economic growth.
• The CPI inflation forecast for FY26 is revised to 3.7%. Earlier, it was projected at 4%.
• Inflation is expected to stay aligned with the 4% target over the near and medium term.
• The GDP growth forecast for FY25 remains unchanged at 6.5%. FY26 GDP is also projected at 6.5%.
• Quarterly growth is expected at 6.1% in Q1, 6.7% in Q2, 6.6% in Q3, and 6.3% in Q4.
• CPI inflation for Q4 is estimated at 4.4%.
• Gross FDI inflows increased by 14% in FY25. Forex reserves have risen to $691.5 billion.
• SDF balances have averaged ₹2 lakh crore over the past two months.
• The CRR has been cut by 100 basis points. It now stands at 3%, down from 4%.
• This reduction will release ₹2.5 lakh crore in primary liquidity.
• The CRR cut will be rolled out in four phases of 25 basis points each.
• The Indian economy is showing positive signs in both inflation control and growth.
• The next MPC meeting is scheduled for August 4 to 6, 2025.

Topic: Appointments

5. The tenure of Punjab & Sind Bank MD Swarup Kumar Saha has been extended by government till February 2027.

• Current term of Swarup Kumar Saha, Managing Director and Chief Executive Officer, Punjab & Sind Bank was set to end on 2 June 2025.
• Now, his tenure has been extended by Union Government until his superannuation on February 28, 2027, or until further orders, whichever is earlier.
• Department of Financial Services under the Ministry of Finance has issued notification for this.
• The tenure extension has been given under clause (a) of sub-section (3) of section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
• Saha took over as MD and CEO of Punjab & Sind Bank in June 2022.
• Punjab & Sind Bank is an Indian public sector bank. It is headquartered in New Delhi. It was founded on 24 June 1908.

Topic: RBI

6. RBI imposed fine on 353 financial entities in FY 2025.

• Enforcement action was taken by the Reserve Bank against regulated entities (REs), and 353 penalties amounting to ₹54.78 crore were imposed in the fiscal year ending March 31, 2025, for contraventions of statutory provisions.
• Violations included non-compliance with norms related to cyber security, exposure limits, fraud classification, KYC directions, and credit reporting.
• Cooperative banks faced the highest number of actions, with 264 penalties totaling ₹15.63 crore issued against them.
• NBFCs and asset reconstruction companies were fined ₹7.29 crore across 37 cases of non-compliance.
• Additionally, a fine of Rs 83 lakh was imposed on 13 housing finance companies for regulatory violations.
• A fine of ₹11.11 crore was imposed on public sector banks during this period, while a fine of ₹14.8 crore was imposed on private banks.
• Foreign banks were not exempt, with enforcement actions taken against six of them.
• These actions were part of RBI’s continued efforts to ensure financial discipline across sectors.
• The penalties were issued as per provisions under statutes and various guidelines issued by the RBI from time to time.

Topic: Awards and Prizes

7. Kumar Mangalam Birla honoured with the Global Leadership Award.

• Kumar Mangalam Birla, Chairman of the Aditya Birla Group, was presented the Global Leadership Award by USISPF during its 8th Leadership Summit in Washington, D.C.
• He was honored alongside IBM Chairman, CEO and President Arvind Krishna and Hitachi Executive Chairman Toshiaki Higashihara for strengthening U.S.-India economic relations.
• The Aditya Birla Group has invested over $15 billion in the United States across 15 states, creating 5,400+ jobs.
• The award recognised Mr. Birla’s long-standing leadership and the group's impactful economic footprint in the U.S.
• Mr. Birla remarked that the recognition reflects their deep commitment to U.S.-India ties and mutual prosperity.
• The Birla Group's journey in the U.S., which began 18 years ago, has consistently expanded across multiple industries.

Topic: Corporates/Companies

8. Flipkart is now the first major Indian e-commerce company to receive an NBFC licence from RBI.

• This licence allows Flipkart to offer loans directly to its customers and sellers.
• The lending will take place through both its main platform and its fintech app, super.money.
• The RBI granted the licence on March 13, 2025.
• Flipkart is permitted to lend money but cannot accept deposits.
• This marks a major change from its previous model of offering loans via partner banks like Axis Bank and IDFC Bank.
• Now, Flipkart will move toward a more direct and profitable lending model.
• The company plans to begin offering these financial services in the coming months.
• Users will be able to access credit more easily through the same platform they shop on.
• The development gives Flipkart an edge in the growing competition with Amazon.
• Amazon recently acquired NBFC Axio but is still waiting for regulatory approval.
• Flipkart was valued at $37 billion after a $1 billion funding round led by Walmart in 2024.
• The company is also relocating its holding structure from Singapore to India.
• The RBI approval follows Flipkart’s application, which was submitted in 2022.

This shift reflects a larger trend of merging financial services with e-commerce platforms.

Read Banking Awareness PDF - 5 6 and 7 June 2025