Banking Awareness of 6 and 7 September 2024

Topic: Indian Economy/Financial Market

1. 52.46 percent of India's total FDI came to Maharashtra in the first quarter of FY2024–2025.

• ₹70,795 crore came to Maharashtra as FDI during April and June of 2024.
• It continued to be the leading destination for foreign investment in India.
• In FDI, Maharashtra has been the top state for the last two years.
• The state obtained FDI worth ₹1,18,422 crore in FY 2022–2023. The state recorded FDI of ₹1,25,101 crore in FY 2023–2024.
• In the first quarter of FY 2024–25, the country as a whole attracted ₹1,34,959 crore in FDI, of which Maharashtra alone accounted for ₹70,795 crore.
• The total amount of investment obtained by Maharashtra surpasses the sum of all the investments received by the states listed in the following table.

Topic: Infrastructure and Energy

2. According to Minister of New and Renewable Energy Pralhad Joshi, coal production rose by 76% in the ten years ending in 2024.

• According to Minister, during the same period, the capacity expansion of renewable energy sources increased by 165%.
• In the last 10 years, India’s overall coal production increased from 566 million tonnes (mt) to 997 mt.
• Over the same time period, India's installed capacity for renewable energy increased from 75.52 gigawatts (GW) to over 203 GW.
• In FY24, India's overall renewable energy generation increased by 86%, from 193.50 billion units (BU) to 360 BU.
• According to Union Minister Joshi, the tariffs on grid-connected solar power plants have decreased by 76%, from ₹10.95 per unit in FY11 to ₹2.60 in FY24.

Topic: Indian Economy/Financial Market

3. Global firm Nomura has reduced India’s GDP forecast to 6.7% for FY25.

• Nomura has listed political instability, stalled reforms as India’s downside risks.
• Its previous forecast for India’s GDP was 6.9%. It has kept forecast for next fiscal year at 7.2 per cent.
• The agency reported in its most recent edition of Asia Economic Monthly that growth in the quarter ending in April–June decreased to 6.7% from 7.8% in the quarter ending in January–March.
• Nomura predicts that despite a revival in government spending, lower corporate profit growth and a moderated credit growth are likely to persist due to growth slowdowns.
• Separately, Goldman Sachs and JP Morgan kept the 6.5 percent GDP estimate for India for FY25.

Topic: Regulatory Bodies/Financial Institutions

4. A master circular on Protection of Policyholders' Interests 2024 has been issued by IRDAI on September 5, 2024.

• Insurance businesses are required by IRDAI to modernize their IT systems in order to integrate Digilocker.
• IRDAI consolidated thirty earlier circulars into its new Master Circular on Policyholder Protection.
• According to the new IRDAI circular, at several points during the insurance process, both general and life insurers must offer a concise synopsis of important facts.
• This covers advice for clients, policyholders, and prospective buyers prior to purchase, during the policy's term, after obtaining policy documents, during proposal submission, and during claim submission.
• For every type of insurance, insurers are required to provide a customer information sheet (CIS) that outlines key characteristics, advantages, and exclusions.
• If the customer requests it, the proposal form and CIS ought to be made available in regional languages.
• Insurance firms must provide a search function on their websites to assist clients in identifying authorized distributors who are permitted to provide their products.
• A 30-day free look time for policyholders to evaluate the terms and conditions of the policy is another requirement for insurers.
• IRDAI further emphasized that unless coverage starts as soon as the premium is received, insurance companies are not permitted to accept premium deposits for life or health insurance policies along with the proposal form.

Topic: RBI

5. RBI approved PayGlocal as an online payment aggregator.

• The RBI has granted PayGlocal final permission to function as an online payment aggregator.
• It will provide a wide range of enterprises with a full suite of payment solutions.
• PayGlocal is a prominent provider of cross-border payment solutions.
• Former Visa senior directors Prachi Dharani, Rohit Sukhija, and Yogesh Lokhande founded PayGlocal in 2021.
• Payment Aggregator is a third-party service provider that makes it possible for customers to send and receive payments online.

Topic: Awards and Prizes

6. Japanese filmmaker Hayao Miyazaki has won the 2024 Ramon Magsaysay Award.

• He is one of the foremost exponents of animated films made expressly for children.
• The 2024 recipients of the award include three individuals and one group.
• It has been also presented to Farwiza Farhan (Indonesia), Karma Phuntsho (Bhutan), Dr. Nguyen Thi Ngoc Phuong (Vietnam) and the Rural Doctors Movement (Thailand).
• Farwiza Farhan is honoured for her deep commitment to environmental conservation and social justice in Indonesia.
• Karma Phuntsho received the award for his contributions to preserving Bhutan's cultural heritage with modern aspirations.
• Dr. Nguyen Thi Ngoc Phuong has been awarded for her dedication to public health and her courageous efforts to seek justice for the victims of Agent Orange.
• The Rural Doctors Movement from Thailand is honoured for its transformative impact on the nation’s healthcare system.
• Ramon Magsaysay Award:
  • It is the highest honour in Asia and is considered the equivalent of the Nobel Prize.
  • The award is presented to individuals and organizations that have significantly impacted Asia.
  • It was established in 1957 in memory of Ramon Magsaysay, the third President of the Philippines.

Topic: Indian Economy/Financial Market

7. Telangana, Tamil Nadu and Rajasthan registered the highest growth in real gross state domestic product (GSDP).

• In FY24, Telangana, Tamil Nadu and Rajasthan are the leading states among the 10 largest States in terms of growth in real gross state domestic product.
• Telangana’s economy registered a growth of 9.2 per cent to reach a real GSDP of ₹7.9 lakh crore in FY24. It is faster than the national GDP growth of 8.2 per cent.
• Tamil Nadu’s economy grew 8.2 per cent to reach ₹15.7 lakh crore in size while Rajasthan’s economy grew 8 per cent.
• The services sector is the main contributor to the economic growth of all large states.
• Tamil Nadu’s services sector grew by 9 percent, while Telangana’s services sector grew by 11%.
• Maharashtra, with ₹24.1 lakh crore real GDP, continues to be the largest economy in India.
• UP and Karnataka are at the fourth and fifth spots in terms of economy size.

Topic: Banking System

8. HDFC Bank has launched GIGA.

• GIGA is a complete financial suite of products and services designed for gig workers/ freelancers.
• GIGA offers a number of customised products and services to address the requirements of freelancers.
• Under GIGA, a flexible GIGA Savings Account is being offered.
• This account gives freelancers the option of keeping a quarterly balance (Rs 10,000 for metro/urban and Rs 5,000 for semi-urban/rural accounts).
• This account gives freelancers the options such as starting their investment journey with a systematic investment plan / fixed deposit / recurring deposit etc.
• The account also comes with a GIGA Business Debit Card offering complimentary personal accidental death cover of up to Rs 10 lakh.
• Exclusive GIGA Business Credit Card is specifically designed for freelancers and comes with an interest-free credit period of 55 days.
• Gig workers can secure health insurance from HDFC Ergo for themselves and their families with premiums beginning at just Rs 20 per day.
• GIGA includes partnerships with Razorpay and Payoneer, allowing freelancers to take payments from domestic and international clients.

Topic: Miscellaneous

9. Kerala topped business, citizen-centric reforms in key categories.

• In the rankings by the Union Ministry of Commerce and Industry, Kerala has emerged as the country leader in two categories of business-centric reforms and seven categories of citizen-centric reforms.
• On September 5, the ranking was announced at the State Industry Ministers' conference held in New Delhi.
• At the conference, Union Minister of Commerce Piyush Goyal presented Industries Minister P.Rajeeve with the Business Reforms Action Plan '22 (BRAP 22) award from the Department for Promotion of Industry and Internal Trade (DPIIT).
• Business-focused reforms where Kerala has emerged as a top performer include facilitating utility permits for businesses and payment of taxes.
• 17 States and UTs received recognition for their “outstanding work” in the area of ‘ease of doing business’.
• The Commerce & Industry Ministry presented these states with Business Reform Action Plan (BRAP) 2022 citations.

Topic: Indian Economy/Financial Market

10. India’s average household spending on food has fallen to less than half for the first time since Independence.

• A working paper titled 'Changes in India's Food Consumption and Policy Implications: A Comprehensive Analysis of Household Consumption Expenditure Survey 2022-23 and 2011-12’ has been released by the Economic Advisory Council to the Prime Minister (EAC-PM).
• The paper is a comprehensive analysis of the Household Consumption Expenditure Survey 2022–23 and comparison with 2011–12.
• As per this paper, the share of total household expenditure on food has declined substantially in rural and urban areas across all states and UTs.
• Among the rural areas, West Bengal registered a consumption expenditure growth of 151 per cent. Tamil Nadu registered a growth of around 214%.
• Growth for rural households was higher than for urban households.
• Among food items, the share of expenditure on cereals has declined across rural and urban areas.
• This paper observed a significant increase in households' average monthly per capita expenditure across rural and urban India across all states and UTs.

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