Banking Awareness of 8 and 9 April 2025

Topic: Indian Economy/Financial Market

1. India’s steel trade deficit increased to a 10-year high level of 4.5 million tonnes (mt) in FY25.

• Steel imports into India increased to 9.5 mt. This is the highest level since FY16. 
• Exports of steel from India declined to a decade low level of 5 mt in FY25. 
• From FY16 to FY25, the average of India’s steel imports is around 7 mt. 
• Imports increased by 15% in FY24 against the previous year. 
• Steel exports from India declined by 35% year-on-year in FY25, decreasing from 7.5 mt to 5 mt. 
• For the past 10 years, India has been a net importer of steel. 
• The range of country’s trade deficit was from 1 mt to 4.5 mt during this period. 
• Imports from China, Vietnam, and other ASEAN nations have contributed to the rising deficit. 
• The Directorate General of Trade Remedies (DGTR) has recommended a 12% safeguard duty on steel imports. 
• The duty would be in place for about 200 days. 
• India’s steel exports to the EU and the Middle East have declined. 
• This is due to economic challenges in those regions and cheaper Chinese imports. 
• Non-alloyed steel exports from India fell by 30% to 4.2 mt in FY25. 
• This is a decline from 6.8 mt the previous year.
• Exports of alloyed and stainless steel remained steady at around 0.7 mt.

Topic: Corporates/Companies

2. NCLAT rejected IDBI Bank's petition for insolvency proceedings against ZEE Entertainment Enterprises Ltd.

• National Company Law Appellate Tribunal (NCLAT) upheld the National Company Law Tribunal (NCLT) decision in favor of ZEE Entertainment. 
• IDBI Bank can file a new insolvency petition for defaults occurring after the period specified in Section 10A of the Insolvency and Bankruptcy Code (IBC), 2016. 
• Section 10A of the IBC prevents insolvency proceedings for defaults after March 25, 2020, for one year due to the Covid-19 pandemic. 
• The NCLAT allowed IDBI Bank to file a Section 7 application for defaults after March 24, 2021. 
• In 2012, Zee agreed to be a corporate debtor for working capital facilities provided by IDBI Bank to Siti Networks Ltd. 
• Siti Networks' account became a non-performing asset on December 29, 2019. 
• IDBI Bank invoked Zee’s guarantee in March 2021, demanding ₹61.97 crore. 
• Zee argued that its liability was limited to interest payments on the original ₹50 crore facility, not the entire outstanding amount. 
• IDBI Bank moved the NCLT against ZEE Entertainment. 
• The NCLT ruled that IDBI Bank's claim was invalid. 
• Zee’s liability under the guarantee was only for two quarters’ interest on the ₹50 crore facility. 

Topic: Appointments

3. Satish Chavva has been appointed CEO of the Oman India Joint Investment Fund (OIJIF).

• OIJIF is a private equity fund managed by the Oman Investment Authority and the State Bank of India. 
• Chavva previously worked at British International Investment, the UK’s development finance institution. 
• He led Direct Private Equity for South Asia at British International Investment. 
• Before OIJIF, Chavva worked with Citi Group. 
• OIJIF recently received regulatory approval to launch its third fund, Oman India Joint Investment Fund III (Fund III). 
• Fund III has a target size of $250 million. 
• It will focus on sectors like consumer, financial services, healthcare, niche manufacturing, and technology. 
• Some of OIJIF’s major investments include Annapurna Finance, Capital Small Finance Bank, and HomeLane.

Topic: Appointments

4. Viral Davda has been appointed Deputy Chief Information Officer (CIO) at the Bombay Stock Exchange (BSE).

• Davda has over 20 years of experience in technology and finance. 
• He spent 15 years at the National Commodity & Derivatives Exchange (NCDEX) in various senior roles. 
• From April 2021, he served as the Chief Technology Officer (CTO) at NCDEX. 
• In 2022, he won the "CTO of the Year" award in the NBFC category at the BFSI Technology Excellence Awards. 
• At BSE, Davda will use his expertise in technology strategy and project management to improve IT infrastructure. 
• BSE processes 400GB of data daily and handles up to 100,000 orders per second. 
• This demonstrates BSE’s advanced technological capabilities. 

Topic: Banking System

5. Department of Financial Services has announced the merger of 26 RRBs under the "One State, One RRB" initiative.

• This is the fourth stage of consolidating Regional Rural Banks (RRBs). 
• The Ministry of Finance launched the consolidation plan in November 2024. 
• The merger brings together 26 RRBs from 10 states and one Union Territory. 
• The goal is to improve scale, efficiency, and cost-effectiveness. 
• Currently, 43 RRBs operate in 26 states and two Union Territories. 
• After the merger, there will be 28 RRBs serving 700 districts. 
• These RRBs will have more than 22,000 branches. 
• The location of about 92 percent of these branches is in rural and semi-urban areas.
• The merger will come into effect from 1 May.
• The number of RRBs was reduced to 43 in FY2020-21 from 196 in FY2004-05.

Topic: Banking/Financial/Govt Schemes

6. On the completion of 10 years of PMMY, PM Modi interacted with the beneficiaries in New Delhi on 8 April.

• India celebrated 10 years of the Pradhan Mantri Mudra Yojana (PMMY), launched in 2015 to provide collateral-free loans to micro enterprises and small businesses, particularly those without access to formal credit.
• Since its inception, PMMY has disbursed over 52 crore loans worth Rs 32.61 lakh crore, helping countless small-scale businesses emerge and grow in rural and urban India.
• 68% of Mudra loan recipients are women, indicating the important role the scheme plays in promoting women-led enterprises across the country.
• Between FY16 and FY25, the PM Mudra Yojana disbursement amount per woman grew by 13% year-on-year to Rs 62,679, while the incremental deposit amount per woman grew by 14% year-on-year to Rs 95,269.
• Half of all Mudra accounts are held by SC, ST, and OBC individuals, and 11% by minorities, reflecting the scheme’s inclusive nature and role in bringing socially disadvantaged groups into the financial mainstream.
• Credit to MSMEs grew from Rs 8.51 lakh crore in FY14 to Rs 27.25 lakh crore in FY24, and is projected to cross Rs 30 lakh crore in FY2025.
• The share of MSME loans in the bank's total credit increased from 15.8% in FY 2014 to about 20% in FY24.
• The proportion of Kishor loans (₹50,000–₹5 lakh) grew from 5.9% in FY16 to 44.7% in FY25, showing a clear transition from micro to more established small businesses.
• Tarun category loans (₹5–₹10 lakh) are also on the rise.
• The average size of loans has almost tripled – from Rs 38,000 in FY16 to Rs 72,000 in FY23 and Rs 1.02 lakh in FY25, indicating increasing confidence in borrowers and scaling up of enterprises.
• Tamil Nadu leads with loan disbursals of ₹3.23 lakh crore, followed by Uttar Pradesh, Karnataka, West Bengal, and Bihar.
• Jammu & Kashmir tops among UTs, with ₹45,815 crore disbursed across over 21 lakh accounts.
• Under the Micro Units Development and Refinance Agency (MUDRA), the scheme provides collateral-free loans up to ₹20 lakh through banks, NBFCs, and MFIs.
• It aims to fund the unfunded and build a self-reliant grassroots economy through inclusive finance.

Topic: Reports and Indices

• India’s first Digital Threat Report 2024 for the Banking, Financial Services and Insurance (BFSI) sector was released through a collaboration between CERT-In (MeitY), CSIRT-FIN and SISA.
• It aims to strengthen cybersecurity in financial institutions.
• The report provides a comprehensive overview of emerging cyber threats and strategic defense measures for the financial ecosystem.
• The report is designed to help BFSI organizations identify security gaps, understand emerging cyber risks, and improve defense mechanisms against complex cyber-attacks.
• The report was launched by Shri M. Nagaraju (Secretary, Department of Financial Services) and others in New Delhi.
• The report presents a strategic roadmap for BFSI entities, and provides real-time intelligence and defense recommendations to improve cyber preparedness.
• The report integrates real-world cyber intelligence from SISA's forensic investigations, CERT-IN's cybersecurity monitoring, and CSIRT-FIN's financial sector incident response expertise, providing a multidimensional perspective on emerging threats.
• The BFSI sector is at the centre of the global digital transformation, with digital payments estimated to generate $3.1 trillion by 2028, accounting for 35% of total banking revenues.
• The 2024 Digital Threat Report for BFSI is a call to action for financial institutions, regulators, and security professionals to take a proactive stance against cyber threats.
• As the sector faces increasing challenges from AI-driven attacks, fraud tactics, and compliance complexities, this report serves as a strategic guide to navigate the emerging cybersecurity landscape.
• SISA is a global forensics-driven cybersecurity solutions company for the digital payments industry, trusted by leading organizations to secure their businesses with robust preventive, detective, and corrective cybersecurity solutions.

Topic: Banking/Financial/Govt Schemes

8. More than 1,700 Anganwadi-cum-Crèches are currently running across the country under the Palna Scheme.

• As per government, 1,761 Anganwadi-cum-Crèches are operating across the country under Palna Scheme.
• The Palna Scheme is a centrally sponsored scheme.
• It provides high-quality crèche services in a safe environment for children aged six months to six years.
• The funding for this scheme is shared between the central and state governments.
• The ratio is 60:40, except in Northeast and special category states.
• In Northeast and special category states, the ratio is 90:10.
• The scheme includes two types of crèches: standalone crèches and Anganwadi-cum-crèches.
• The Maternity Benefit Act has been amended by the Ministry of Labour and Employment.
• It now requires all establishments with 50 or more employees to provide a crèche facility.
• The Palna Scheme ensures that all mothers can access crèche facilities regardless of their employment status.
• As per Ministry of Women and Child Development, 1,284 standalone crèches are operational across India.
• The Ministry of Women and Child Development aims to set up 17,000 new Anganwadi-cum-Crèches under the scheme in 2024-25.
• So far, 11,395 Anganwadi-cum-Crèches have been approved.
• These are located across 34 states and union territories.
• In 2022, government reorganized and renamed National Creche Scheme as Palna Scheme under sub scheme ‘Samarthya’ of ‘Mission Shakti’.

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