Banking Awareness of 8, 9, 10 and 11 June 2025

Topic: Indian Economy/Financial Market

1. Special Economic Zones (SEZ) rules has been amended by the centre.

• The rules have been amended to address the specialised needs of the semiconductor and electronics components manufacturing sectors.
• Manufacturing in these sectors is highly capital intensive and import-dependent.
• It involves longer gestation periods before becoming profitable.
• As part of the reforms, minimum contiguous land area requirement for the SEZs dedicated to semiconductor and electronics component manufacturing has been reduced from 50 hectares to 10 hectares.
• The condition requiring SEZ land to be encumbrance-free in cases where it is mortgaged or leased to the central or state government or their authorised agencies can now be relaxed by the board of approval for SEZs.
• Under the amended rules, value of goods received and supplied on a free-of-cost basis is allowed to be included in Net Foreign Exchange (NFE) calculations.
• After payment of applicable duties, SEZ units in these sectors can supply domestically into the Domestic Tariff Area (DTA).
• Department of Commerce notified these amendments on 3 June 2025.
• Subsequently, proposals of Micron Semiconductor Technology India (MSTI) and Hubballi Durable Goods Cluster (Aequs Group) were approved by the Board of Approval for SEZs.
• These have proposed to set up SEZs for the manufacturing of semiconductors and electronic components, respectively.
• Micron will set up its SEZ facility in Sanand, Gujarat with an estimated investment of ₹13,000 crore.
• Aequs will set up its SEZ in Dharwad, Karnataka, to manufacture electronics components with an estimated investment of ₹100 crore.

Topic: Taxation

2. The Central Board of Indirect Taxes and Customs (CBIC) has eliminated the need to include the Document Identification Number (DIN) in communications.

• This applies when the communication already features a verifiable Reference Number (RFN) through the GST portal.
• Documents on the GST portal are assigned an RFN.
• The RFN can be verified and includes information like the issuance date, type of communication, and the office responsible.
• The DIN was introduced in 2019 to improve transparency and accountability.
• However, its inclusion is no longer necessary when an RFN is present.
• Under the CGST Act, communications such as notices, orders, and summons must be made available through the common portal.
• The new directive clarifies that having both DIN and RFN on the same document creates redundancy.
• Each identifier serves as a unique, verifiable mark. This update simplifies compliance procedures.
• It ensures that documents remain traceable and legitimate through the RFN.
• The circular revises prior rules. These rules required DIN for all GST-related communications.

Topic: Indian Economy/Financial Market

3. Maharashtra and Karnataka contributed 51% of FDI inflows into India during the last financial year 2024-25, as per the latest Department for Promotion of Industry and Internal Trade (DPIIT) data.

• Maharashtra accounted for maximum (31 per cent of the country's total FDI during April-March 2024-25) foreign inflows at $19.6 billion.
• Karnataka attracted $6.62 billion overseas investments during the last fiscal year.
• Delhi ($6 billion), Gujarat ($5.71 billion), Tamil Nadu ($3.68 billion), Haryana ($3.14 billion), and Telangana ($3 billion) followed Maharashtra and Karnataka.
• During the last financial year, total FDI grew 14% to $81.04 billion. It is the highest in the last three years. It stood at $71.3 billion in 2023-24.
• Total FDI includes equity inflows, reinvested earnings and other capital.
• As per Commerce and Industry Minister Piyush Goyal, India is getting FDI inflows from 112 countries to 89 in 2013-14.
• He said this in an FDI roundtable. The roundtable was chaired by Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Amardeep Singh Bhatia.

Topic: RBI

4. Norms for NBFC-MFIs (non-banking finance company – microfinance institutions) have been eased by RBI.

• RBI has lowered the qualifying asset threshold from 75% of total assets for NBFC-MFIs to 60% (net of intangible assets).
• The qualifying assets of NBFC-MFIs should be a minimum of 60 per cent of the total assets (netted off by intangible assets), on an ongoing basis.
• In case of an NBFC-MFI fails to maintain the qualifying assets for four consecutive quarters, NBFC-MFI should approach the RBI with a remediation plan for taking a view in the matter.
• The definition of qualifying asset is in alignment with definition of ‘microfinance loans’.
• A microfinance loan is a collateral-free loan given to a household with annual household income up to ₹3 lakh.
• The household means an individual family unit, i.e., husband, wife and their unmarried children.

Topic: RBI

5. Five-part documentary series have been launched by RBI.

• The series is titled ‘RBI Unlocked: Beyond the Rupee’.
• RBI launched the series in collaboration with JioHotstar on 3 June 2025.
• The documentary series has been produced by Chalkboard Entertainment.
• RBI commissioned the project to visually document its 90-year history.
• The project was commissioned with the objective of creating awareness about various functions and roles of RBI.
• The documentary portrays the essence of RBIs functions in an intelligible manner to people.
• RBI performs functions including currency management, monetary policy, regulation and supervision of banks and NBFCs, regulation of currency and interest rate, markets and payment and settlement systems, and financial inclusion.

Topic: Banking System

6. Minimum balance penalty for savings accounts has been removed by Canara Bank.

• This has become effective from 1 June 2025.
• With this step, Canara Bank is the first major public sector bank to implement a waiver on minimum balance penalties for all SB account categories.
• The removal of charges for non-maintenance of minimum balance across all types of Savings Bank accounts, including regular, salary and NRI accounts has been announced by Canara Bank.
• In the previous time, it was required that account holders maintain a specified Average Monthly Balance (AMB) or face penalties.
• Canara Bank is an Indian public sector bank. It is based in Bangalore, India. It was established in 1906. It was nationalized in 1969.

Topic: Appointments

7. Sat Pal Bhanoo appointed interim MD and CEO of LIC.

• The central government has entrusted Sat Pal Bhanoo with interim charge as the MD & CEO of Life Insurance Corporation of India (LIC) for three months.
• The appointment followed the completion of Siddhartha Mohanty’s term, the first to serve as LIC’s MD & CEO post-revamp.
• As per a Ministry of Finance notification dated June 7, Bhanoo has been granted full financial and administrative powers for the role.
• His interim tenure is effective from 8 June to 7 September 2025 or until further orders or a permanent appointment is made.
• With over 30 years of experience at LIC, Bhanoo previously served as Zonal Manager of LIC’s Central Zone in Bhopal before being elevated to MD.
• LIC’s leadership has undergone several recent changes, with Ratnakar Patnaik and Dinesh Pant appointed as MDs following retirements.
• Ramakrishnan Chander has been named Chief Investment Officer, while Ajay Kumar Srivastava has been appointed as Appointed Actuary.

Topic: Appointments

8. T. Rabi Shankar appointed part-time member of the 16th Finance Commission.

• On 7 June, Deputy Governor of RBI, T. Rabi Sankar, has been appointed as a part-time member of the 16th Finance Commission by President Droupadi Murmu.
• The appointment has been made under Article 280(1) of the Constitution and the Finance Commission Act, 1951.
• His tenure will continue either until the report is submitted by the commission or until 31st October 2025, whichever is earlier.
• This appointment follows the resignation of Ajay Narayan Jha, who stepped down for personal reasons.
• The 16th Finance Commission is chaired by former vice chairman of Niti Aayog Arvind Panagariya, has four members, and is assisted by Secretary Ritvik Pandey, two joint secretaries, and one economic advisor.
• The 16th Finance Commission was constituted by the government under the chairmanship of Panagariya on December 31, 2023.
• The panel will submit its report to the President by October 31, 2025.
• The report will be for a period of five years starting April 1, 2026.
• The previous 15th Finance Commission, chaired by NK Singh, had recommended that states should be given 41% of the center's divisible tax pool during the five-year period from 2021-22 to 2025-26.

Read Banking Awareness PDF - 8, 9, 10 and 11 June 2025