Banking Awareness of 9, 10 and 11 July 2024

Topic: Reports and Indices

1. In the fiscal year that ended in March 2024, India provisionally created 46.7 million jobs, according to a RBI report.

• As a result, 643.3 million people are employed nationwide, according to a Reserve Bank of India report.
• In that fiscal year, India's employment growth rate was 6%.
• The previous fiscal year (FY23) saw this rate at 3.2%, according to the RBI's report on industry-level productivity and employment measurements.
• Traditionally, the report has only included historical data.
• For the first time, the RBI announced that it is for the first time attempting, based on the information available, a provisional estimate of productivity for the total economy for the fiscal year 2023–2024.
• In addition to this increase in employment, India's real GDP increased by 8.2% in FY24 from 7% in FY23.
• All-India unemployment rate (UR) fell to a 20-month low of 7%, as per RBI’s latest monthly bulletin.
• As per RBI’s latest monthly bulletin, this decline was caused by lower UR in rural areas.
• On 8 July 2024, RBI released an update on “Measuring Productivity at the Industry Level-The India KLEMS [Capital (K), Labour (L), Energy (E), Material (M) and Services (S)] Database”.
• This comprises the Data Manual 2024 as well as time-series data on productivity for 27 industries covering the period 1980-81 to 2022-23.

Topic: Reports and Indices

2. An analysis by the State Bank of India (SBI) using data from the RBI indicates that over FY14–23, India generated 12.5 crore new jobs.

• The SBI analysis shows that India created just 2.9 crore in FY04–14.
• According to a report by SBI's Economic Research Department, the total number of jobs produced in Manufacturing and Services is at 8.9 crores between FY14-FY23.
• The report by SBI's Economic Research Department showed that this number is at 6.6 crores during FY04-FY14.
• Furthermore, data from the Udyam registration portal shows that the total employment reported by MSMEs registered with the MSME Ministry has surpassed the 20-crore mark.
• According to a foundit Insights Tracker analysis, the overall hiring index has increased by 12% year over year (y-o-y).
• Hiring in the manufacturing sector increased by 43% year over year.
• Bengaluru recorded the highest increase among cities in terms of hiring at 24 per cent.
• Bengaluru was followed by Coimbatore with 23 per cent and Jaipur with 21 per cent.

Topic: RBI

3. The LRS norms for investment via GIFT IFSC have been eased by RBI.

• Under the Liberalised Remittance Scheme (LRS), the scope of remittances to International Financial Services Centres (IFSCs) has been expanded by RBI.
• As per the International Financial Services Centres Authority Act, 2019, the RBI permitted authorised individuals to facilitate remittances for the purpose of obtaining financial services or products within IFSCs.
• Through a foreign currency account (FCA), the RBI has also permitted current or capital account transactions overseas (except foreign IFSCs).
• Resident individuals can open an FCA at GIFT IFSC for these purposes.
• This will enable resident Indians to open a fixed deposit in dollars in a bank account at GIFT IFSC.
• With the FCA account, residents can now make investments outside of India, subject to the LRS limit of $250,000 per year.
• Currently, remittances under LRS to IFSCs are permitted for the purpose of investing in IFSCs in securities (except those issued by entities outside IFSC).
• Remittances under LRS to IFSCs can also be made for payment of fees for education to foreign universities or foreign institutions in IFSCs for pursuing certain courses.
• Insurance and bank fixed deposits in foreign currency, which were earlier not allowed, are now permitted for resident Indians.

Topic: Appointments

4. The appointment of eight Executive Directors in Public Sector General Insurance Companies has been approved by Appointments Committee of the Cabinet (ACC).

• Rashmi Bajpai has been appointed as Executive Director (ED) in Oriental Insurance Company Ltd (OICL).
• Rashmi Bajpai is currently General Manager (GM) in same company.
• Amit Mishra has been appointed as ED in OICL. Amit Mishra is currently GM in New India Assurance Company Ltd (NIACL).
• Hitesh Ramesh Chandra Joshi has been appointed as ED in GIC Re. Joshi is currently GM in GIC Re.
• Radhika C.S. has been appointed as ED in GIC Re. Radhika is currently GM in United India Insurance Company Ltd (UIICL).
• T. Babu Paul is currently GM in National Insurance Company Ltd (NICL). Paul has been appointed as ED in NICL.
• Prasad C.G. is currently GM in NIACL. Prasad has been appointed as ED in NICL.
• Sunita Gupta is currently GM in Oriental Insurance Company Ltd (OICL). Sunita Gupta has been appointed as ED in UIICL.
• Dasarathi Singh is currently GM in Agriculture Insurance Company of India Ltd.
• Dasarathi Singh has been appointed as ED in Agriculture Insurance Company of India Ltd.

Topic: Appointments

5. Mahabaleshwara MS has been appointed as Independent Director of TFCI Ltd.

• Mahabaleshwara MS is former Managing Director and Chief Executive Officer of Karnataka Bank.
• He has been appointed Independent Director of Tourism Finance Corporation of India (TFCI) Ltd. for the term of five years.
• His appointment is with effect from July 6, 2024 and subject to approval of shareholders.
• He was MD and CEO of Karnataka Bank for two terms from 2017 to 2023.
• He is presently the Chairman of the Special Advisory Committee to the PoornaPrajna Educational Institution.
• Tourism Finance Corporation of India:
  • It is a public financial institution. It started operations in 1989.
  • It started operations with core aim of providing finance and advisory services to India’s tourism sector.

Topic: Committees/Commissions/Taskforces

6. A five-member Advisory Council has been constituted by the 16th Finance Commission.

• On 9 July, an Advisory Council consisting of five members constituted by the Sixteenth Finance Commission to advise the Commission on any Terms of Reference (ToR) or related matters.
• Poonam Gupta, Director General of the National Council of Applied Economic Research, has been appointed the convener of the Advisory Council.
• Other members of Advisory Council are D.K. Srivastava, Neelkanth Mishra, Pranjul Bhandari and Rahul Bajoria.
• The role and functions of the Advisory Council will include assisting the Commission in preparing papers or research studies and monitoring or evaluating studies ordered by the Finance Commission.
• This will enhance the Commission's understanding of the issues involved in its rules of engagement.
• Among the Terms of Reference (ToR) approved by the Cabinet are distribution of the net proceeds of taxes between the Union and states under Chapter I, Part XII of the Constitution and the allocation of the respective shares of such proceeds between states.
• Another ToR relates to the principles governing grants-in-aid for States' revenues from the Consolidated Fund of India and the amounts to be paid to the States as grants-in-aid for their revenues.

Topic: Corporates/Companies

7. BPCL has partnered with the Indian Olympic Association as a principal sponsor.

• Bharat Petroleum Corporation Limited (BPCL), a 'Maharatna' and Fortune Global 500 company, announces its partnership with the Indian Olympic Association (IOA) as the Official Principal Partner for four years.
• The partnership will run from the Paris Olympics 2024 to the Los Angeles Olympics 2028.
• This four-year partnership supports and salutes the determination and courage of Indian athletes, many of whom come from humble backgrounds and remote corners of India.
• BPCL will initiate a number of campaigns as part of this partnership with the aim of encouraging and supporting the Indian contingent travelling to Paris.
• These initiatives aim to inspire the nation, garner support for our athletes and celebrate their constant strive for excellence on the global stage.

Topic: Awards and Prizes

8. The highest civilian award of France has been given to Roshni Nadar Malhotra.

• The award of "Chevalier de la Légion d'Honneur" (Knight of the Legion of Honour) has been bestowed upon Roshni Nadar Malhotra.
• The Grand Master of the Order of the Legion of Honour is the President of the French Republic.
• On behalf of the President of the French Republic, H.E. Mr. Thierry Mathou, Ambassador of France to India, presented the award to Roshni Nadar Malhotra in Delhi.
• HCLTech is an IT services company, and its chairperson is Roshni Nadar Malhotra.
• The highest civilian honour granted by the French Republic is the Chevalier de la Legion d'Honneur, which Napoleon Bonaparte established in 1802.
• This award is granted to those who have shown exceptional service to France, regardless of their nationality.

Topic: Reports and Indices

9. Financial Inclusion-Index (FI-Index) increased to 64.2 in March 2024.

• FI-Index stood at 60.1 in March 2023. RBI said FI-Index improved because of growth seen across all sub-indices.
• RBI said usage dimension mainly contributed to improvement in FI-Index. This reflects deepening of financial inclusion.
• FI-Index captures the extent of financial inclusion across the country.
• Its value ranges between 0 and 100. 0 represents complete financial exclusion. 100 shows full financial inclusion.
• The FI-Index includes three broad parameters of Access (weightage 35%), Usage (weightage 45%), and Quality (weightage 20%).
• Each parameter consists of various dimensions. Dimensions are computed on the basis of a number of indicators (total 97 indicators).
• The FI-Index does not have a base year. It is published annually in July every year.
• Compared to 43.4 for the period ending in March 2017, the annual FI-Index for the period ending in March 2021 was 53.9.

Topic: Regulatory Bodies/Financial Institutions

10. In an effort to improve credit rating agencies' (CRAs) ease of doing business and streamline procedures, SEBI has released new guidelines.

• The circular contains specific deadlines for addressing company appeals of rating actions taken during the periodic rating surveillance.
• These changes will be applicable, with effect from August 01, 2024.
• The revised regulations require CRAs to notify companies of their ratings one working day following the rating committee meeting.
• Companies have three working days to ask for the rating decision to be reviewed or to file an appeal.
• Within seven working days of the rating committee meeting, the press statement must be posted on the CRA's website and communicated to the stock market or trustee of debentures.
• For a duration of ten years, CRAs are required to keep documents pertaining to the said disclosures.
• Additionally, SEBI has set deadlines for particular kinds of disclosures, such a list of non-cooperative issuers that needs to be updated every day.
• CRAs must keep records of disclosures about ratings that issuers have not accepted for a period of 12 months.

Topic: Miscellaneous

11. India and Russia agreed to increase bilateral trade to 100 billion dollars by 2030.

• Prime Minister Narendra Modi and Russian President Vladimir Putin attended the 22nd Annual Summit.
• A joint vision statement on trade and economic cooperation by the end of the decade has been also issued.
• This joint vision includes the elimination of non-tariff barriers, the development of a bilateral settlement system using national currencies, using new connectivity routes, etc.
• India and Russia signed many MoUs related to climate change, polar research, legal arbitration and pharmaceutical certification and other issues.
• In 2023, Russia-India trade grew by 66%, and 20% in the first quarter of 2024.

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