Weekly Banking Affairs www.parchamclasses.

in

Banking Awareness Current Affairs

7th June, 2025
Revision points (LAST WEEK)
❑ Vikram Singh Mehta has been appointed as the new Chairman of the Board for IndiGo, India’s largest airline.
❑ N Chandrasekaran to step down as Tata Chemicals chairman; S Padmanabhan named successor
❑ Hitachi India announced appointment of N Venu as its Managing Director, with effect from June 2, 2025.
❑ LIC bags Guinness world record for selling highest life insurance policies in 24 hours
❑ Union Food and Consumer Affairs Minister will hold a high-level meeting with major e-commerce
stakeholders to address concerns regarding dark patterns—a growing digital consumer rights issue.
❑ Algeria Becomes New Member of BRICS’ New Development Bank (NDB)
❑ The Niveshak Shivir initiative was launched by the Investor Education and Protection Fund Authority (IEPFA)
on June 1, 2025.
❑ The Reserve Bank of India (RBI) reported growth in its balance sheet for the financial year 2024-25.
❑ Bengaluru-based pet food food company Drools has officially become a unicorn (a startup valued at $1
billion or more).
❑ At the Battery Summit 2025, Tata Elxsi, in partnership with Tata Motors, Tata AutoComp, and IIT Kharagpur,
unveiled the Battery Aadhaar initiative to key government stakeholders.
❑ The Vishweshwar Sahakari Bank Ltd., Pune” has been included in the Second Schedule of the Reserve Bank
of India Act, 1934 vide Notification
❑ According to the Reserve Bank of India (RBI), the country's net foreign direct investment (FDI) declined by
96.5 % to $353 million in 2024-25 compared to 2023-24.
❑ Doha (Qatar)-based Qatar National Bank Group (QNB), the largest financial institution in the Middle East and
Africa (MEA), has become1st Bank from MEA region to open its branch in Gujarat International Finance Tec-
City-International Financial Services Centre (GIFT-IFSC), Gandhinagar, Gujarat.
❑ JSW One Platforms Limited, the Business-to-Business (B2B) e-commerce arm of JSW Group,secured
approximately USD 40 million (Rs. 340 crore) in a funding round led by Principal Asset Management, OneUp,
and JSW Steel.
❑ Reserve Bank of India (RBI) has infused ₹8.57 lakh crore (~$100.06 billion) into the banking system since
December through Open Market Operations (OMOs).
❑ Mumbai Metropolitan Region Development Authority (MMRDA) secured a ₹1,500 crore loan from the Bank
of Maharashtra (BoM) for its first-ever slum redevelopment project in Ghatkopar, Mumbai.
❑ India Post Payments Bank (IPPB), a Government of India undertaking and Aditya Birla Capital Limited
(‘ABCL’), India’s leading diversified financial service company has announced their strategic partnership to
broaden the reach and accessibility to loan products across Bharat.
❑ A joint analysis by CEEW and AEEE, published in Energy and Climate Change, reveals that India is on track to
surpass its 2030 climate target of reducing emissions intensity by 45% from 2005 levels.
❑ India surpassed Japan to become the 4th largest economy in the world, as confirmed by NITI Aayog CEO
B.V.R. Subrahmanyam citing IMF data.

QUESTION OF THE DAY

Which bank has become the first from the Middle East and Africa (MEA) region to open a branch in GIFT-IFSC,
Gujarat?
A) Emirates NBD
B) Qatar National Bank (QNB)
C) First Abu Dhabi Bank
D) Bank of Africa
Answer: B

Government extends tenure of Punjab & Sind Bank MD Swarup Kumar Saha till February 2027
▪ Saha was initially assumed as MD and CEO on June 3, 2022 for three years.

Connect With Us - 1
Weekly Banking Affairs www.parchamclasses.in

▪ The extension is beyond his current notified term, which was ending on June
02, 2025, till the date of his superannuation -- February 28, 2027
▪ Punjab & Sind Bank is a public sector bank in India, headquartered in New
Delhi, established in 1908.
▪ The bank's registered office is in Amritsar, Punjab

Asheesh Pandey to be Union Bank chief; Kalyan Kumar to take over as Central Bank
of India chief
▪ Asheesh Pandey appointed as the MD & CEO of Union Bank of India (UBI)
▪ The three-year tenor of the current UBI Chief A Manimekhalai ends in June.
▪ Kalyan Kumar - as MD and CEO of Central Bank of India.
▪ The term of MV Rao, MD & CEO, CBoI ends in July 2025.
▪ Pandey and Kumar are currently Executive Directors at Bank of
Maharashtra and Punjab National Bank resp.

Rajiv Memani Takes Charge as CII President for FY26

▪ Ernst & Young (EY) India’s Chairman and CEO, Rajiv Memani, has
assumed office as the President of the Confederation of Indian Industry (CII)
for the 2025-26 term.
▪ He takes over from Sanjiv Puri, Chairman and Managing Director of ITC Ltd.
▪ CII Established in 1895, as a non-government, not-for-profit organization.
▪ Ministry affiliation: Collaborates with the Ministry of Commerce and
Industry, but operates independently.
▪ Headquarters: Located in New Delhi.

Deepak Fertilizers MD Sailesh Mehta elected as new FAI chairman

▪ Deepak Fertilizers and Petrochemicals Corp Managing Director Sailesh C Mehta
has been elected as the new chairman of the Fertiliser Association of India
(FAI).
▪ Replaces N Suresh Krishnan, Managing Director of Paradeep Phosphates Ltd

Deutsche Bank Appoints Stefan Schaffer as CEO of India GCC

▪ Deutsche Bank has appointed Stefan Schaffer as the new CEO of Deutsche India, its
global capability centre (GCC).

New chairman of Telangana Grameena Bank

▪ K. Prathapa Reddy, a banker with more than two decades of experience in the State
Bank of India (SBI), has assumed charge as Chairman of Telangana Grameena Bank
(TGB).
▪ Earlier, he had served as the Chairman of Andhra Pradesh Grameena Vikas Bank
(APGVB) for two years.

RBI Annual Report 2024–25: A Comprehensive Overview of India’s Central Banking Landscape
▪ The report provides information on the RBI’s functioning through the fiscal year as well as the state of the
economy.
Key highlights of the report
▪ Increase in RBI asset: It was due to rise in gold, domestic investments and foreign investments.
▪ Income for the year increased by 22.77% and expenditure rose by 7.76%.
▪ Higher Savings: Net household savings rose to 5.1% of gross national disposable income in FY24.
National Disposable Income = Net National Product at market prices (Gross National Product-Depreciation) + Other
current transfers from the rest of the world
Central Bank Digital Currency (CBDC) or e-rupee: It has jumped to ₹1,016 crore at the end of March 2025.

Connect With Us - 2
Weekly Banking Affairs www.parchamclasses.in

▪ The RBI is exploring the commencement of CBDC pilots on cross-border payments.

▪ CBDC is the digital form of India’s physical currency issued by the RBI.
▪ Lowest Debt ratio: India’s external debt to GDP ratio stood at 19.1% in December 2024, the lowest among
emerging markets.
▪ Fastest growing economy: RBI has projected real GDP growth for 2025-26 at 6.5 per cent.
▪ Headline inflation:It is projected to ease and gradually move closer to the RBI's target in 2025-26.
▪ Currency deposit ratio: It has declined to 15.4% by March 2025, driven by growth in digital transactions

HDB financial services, a non- banking financial company (NBFC), received approval from the SEBI to launch one of
the largest initial public offering (IPOs).
▪ Apart from HDB Financial, five more companies have received Sebi’s go ahead to raise funds through IPOs.
▪ These include Vikram Solar, A-One Steels India, Shanti Gold International, DorfKetal Chemicals, and Shreeji
Shipping Global Ltd.
▪ HDFC Bank subsidiary HDB Financial Services Ltd has received regulatory approval from the Securities and
Exchange Board of India (Sebi) for its much-anticipated Rs 12,500 crore initial public offering (IPO).
▪ HDFC Bank holds 94.36 per cent stake in HDB Financial Services, a non-banking financial company (NBFC).
▪ Incorporated in 2007

Reliance 's JioHotstar and the RBI launched a five part documentary series titled , ‘RBI Unlocked: Beyond the
Rupee’
▪ Produced by Chalkboard Entertainment, the project was commissioned by the RBI to visually document its
90-year history and create awareness about its various functions and roles

Canara Bank Waives Minimum Balance Requirement for All Savings Accounts from June 1, 2025
▪ Canara Bank has introduced a major customer-centric change by eliminating the requirement to maintain a
minimum balance across all its savings accounts.
▪ This includes regular, salary, and NRI accounts, making it the first prominent public sector bank to fully
remove AMB penalties.(Average Monthly Balance)
Objectives of the Reform
1. Promote financial inclusion
2. Encourage banking among low-income and rural populations
3. Enhance customer satisfaction by reducing penalty-based banking

Bank of Baroda opens first ‘Phygital’ branch in Kolkata

▪ Bank of Baroda inaugurated its first ‘Phygital’ branch in the Kolkata Zone, blending digital tools with
personalised customer service to enhance the banking experience.
▪ This is the seventh ‘Phygital’ branch in India, featuring self-service kiosks, a video contact centre for non-
financial services, and universal service desks for in-person support.
▪ Kolkata Zone, a major business hub for BoB in West Bengal, currently has 258 branches and plays a crucial
role in the bank’s regional operations.
▪ Founded – 1908
▪ Headquarters –Vadodara, Gujarat
▪ MD & CEO – Debadatta Chand
▪ Tagline – India’s International Bank

Inga Hydropower Project

▪ The World Bank has approved $250 million for the
Inga 3 hydropower project in the Democratic
Republic of Congo (DRC), despite criticism from
global civil society groups.
Inga Dam?

Connect With Us - 3
Weekly Banking Affairs www.parchamclasses.in

▪ A series of hydropower projects on the Congo River, aimed at utilizing Inga Falls’ massive energy
potential.
▪ Inga 1 (1972) and Inga 2 (1982) are operational, Inga 3 and Grand Inga are planned expansions.
▪ Located in: Approximately 225 km southwest of Kinshasa, the capital of the Democratic Republic of Congo
(DRC).
▪ Built on: The Congo River at Inga Falls, one of the world’s most powerful natural waterfalls.
Nations and Institutions Involved:
▪ Lead Nation: Democratic Republic of Congo
▪ Financing Partner: World Bank, potentially committing $1 billion overall

RBI New Draft Rules for Gold Loans

The Reserve Bank of India released new draft rules for gold loans to address
rising defaults and standardize lending practices. The norms come into effect
only from January 1, 2026, to ensure proper implementation.
Permitted Collateral:
• Loans only allowed against gold jewellery and bank-issued coins.
• Primary gold like bars, ingots, bullion cannot be used as
collateral.
Loan-to-Value (LTV) Cap:
• LTV ratio capped at 75% of gold’s assessed value.
• Collateral Valuation Norms:
• Gold must be assayed by qualified personnel with the borrower
present.
• Value must be based on 22-carat price, adjusted if purity is lower.
• Use the lower of 30-day average or previous day’s gold price.
• Ownership Proof:
• Borrowers must declare ownership or furnish original purchase bills.
• Loans cannot be granted on jewellery with uncertain ownership.
• Loan Caps and Limits:
• Max 1 kg of gold or 50 gm coins per borrower allowed as collateral.
• No concurrent loans on the same collateral for both consumption and business use.
• Purpose-based Monitoring:
• Consumption loans must follow stricter tenure norms (max 12 months).
• Business-purpose loans must be evaluated based on cash flow, not collateral value.
• Renewal and Repledge Restrictions:
• Fresh loans allowed only after full repayment of principal and interest.
• Lenders must return gold within 7 working days or pay ₹5,000/day compensation.

Why Did RBI Propose These Changes?

• Rising Gold Loan NPAs: NPAs from gold loans surged to ₹2,040 crore for banks and ₹4,784 crore for
NBFCs (2024 data).
• Regulatory Gaps: Lack of uniform standards in valuation, lending, and loan tracking.
• Market Growth Pressure: Over 100% YoY growth in gold loan portfolios created systemic concerns.
• Borrower Protection: To avoid loss of household gold, often emotionally and culturally significant.

RBI Grants In-Principle Approval to PayPal and Worldline for Cross-

Border Payment Aggregation
▪ PayPal Payments (PayPal), the Indian subsidiary of PayPal
Holdings, has received in-principle approval from the Reserve
Bank of India (RBI) to operate as a cross-border payment
aggregator (PA),

Connect With Us - 4
Weekly Banking Affairs www.parchamclasses.in

▪ Another fintech company, Worldline ePayments India, announced that RBI has approved its licence to
operate as a cross-border PA under the Payment and Settlement Systems Act, 2007.
▪ This authorisation enables the companies to facilitate cross-border online transactions for the import and
export of goods and services.

Germany Becomes the World’s Top Creditor, Overtaking Japan After 34 Years
▪ For 34 years, Japan had the highest amount of money invested in or
lent to other countries.
▪ Germany’s net foreign assets (the total value of what it owns abroad
minus what it owes) have increased.
▪ Meanwhile, Japan’s foreign assets have decreased, partly due to the
weaker value of the Japanese yen (Japan’s currency).
▪ Net External Assets = What a country owns abroad − What foreigners own in that country.
▪ Components include foreign investments, bonds, equities, and property holdings.

Retired Govt NPS Subscribers Eligible for UPS Benefits by June 30, 2025
▪ The Government of India has announced that Central Government employees who retired under the
National Pension System (NPS) with at least 10 years of qualifying service on or before March 31, 2025, can
now claim additional benefits under the Unified Pension Scheme (UPS).
▪ These retirees, or their spouses, can now claim a top-up pension and a lump sum amount.
Objectives and Purpose of UPS Extension
▪ Offer assured monthly pension to Central Government retirees under NPS.
▪ Provide a financial cushion over and above NPS returns.
▪ Address concerns of income insecurity among government retirees.

Eligibility Criteria
• Central Government employees under NPS.
• Must have retired on or before March 31, 2025.
• Minimum 10 years of qualifying service.
• Spouses of eligible retirees can also apply.
• Static & Background Facts
• National Pension System (NPS): Introduced on January 1, 2004, market-linked retirement scheme.
• Unified Pension Scheme (UPS): Announced in January 2025, assures 50% of last 12 months’ average basic pay as
pension.

RBI cuts repo rate by 50 bps to give boost to growth

▪ Reserve Bank of India, in its latest Monetary Police Committee meeting, announced policy rate cut by 50
basis points, reducing the repo rate to 5.5%.
▪ The Central bank has also reduced the Cash Reserve Ratio (CRR) by 100 basis points, now standing at 3%.
▪ Another major announcement made by the MPC members is the change of RBI's stance from
'accommodative' to 'neutral'.
About Repo Rate
▪ The repo rate is the interest rate at which the RBI lends short-term funds to commercial banks against
government securities.
▪ It serves as a primary tool for the RBI to regulate liquidity, control inflation, and influence overall economic
activity.
▪ By adjusting the repo rate, RBI can either encourage banks to borrow more (by lowering the rate) or
discourage borrowing (by raising the rate), thus influencing the money supply in the economy.
About Cash Reserve Ratio (CRR)
▪ Cash Reserve Ratio (CRR) is the share of a bank’s total deposit that is mandated by the Reserve Bank of India
(RBI) to be maintained with the latter as reserves in the form of liquid cash.

Connect With Us - 5
Weekly Banking Affairs www.parchamclasses.in

▪ The bank cannot use this amount for lending and investment purposes and does not get any interest from
the RBI.
▪ CRR applies to scheduled commercial banks, while the regional rural banks and NBFCs are excluded.

SEBI’s Operational Framework for ESG Debt Securities

▪ SEBI has notified a detailed operational framework for issuing Environmental, Social, and Governance (ESG)
debt securities, including social, sustainability, and sustainability-linked bonds.
What are ESG Debt Securities?
▪ ESG debt securities are financial instruments used to raise funds exclusively for projects with environmental,
social, or governance benefits. These include:
▪ Social Bonds (for social impact projects)
▪ Sustainability Bonds (for combined environmental and social goals)
▪ Sustainability-Linked Bonds (with targets linked to ESG performance)
Key Features of ESG Debt Securities:
▪ Funds must be utilized for eligible sustainable or social projects.
▪ Bonds must be labelled accurately based on primary project objective.
▪ Must comply with recognized international ESG standards.
▪ Require third-party verification or certification.
▪ Applicable to both public issues and private placements.
About SEBI’s Operational Framework for ESG Debt Securities:
Classification Criteria: Issuers must classify bonds as green, social, or sustainability based on the primary
objective of the underlying projects, ensuring clear demarcation of impact.
Disclosure Requirements:
▪ Initial disclosures in the offer document must include project eligibility, selection process, and
indicative fund distribution between financing and refinancing.
▪ Continuous disclosures to be made annually, detailing impact metrics and fund utilization.
▪ Independent Review Mechanism: Issuers must appoint independent third-party reviewers or certifiers
to validate ESG alignment, increasing investor trust and transparency.
▪ Monitoring and Impact Tracking: Issuers are responsible for continuous impact assessment to ensure that
the funded operations effectively reduce environmental or social harm.
▪ Applicability and Implementation: The framework applies to all issuances of ESG debt securities from June
5, 2025, and aligns with global ESG benchmarks to attract responsible capital.

REVISION QUESTIONS
Who has been appointed as the new MD and CEO of Central Bank of India?
A) Asheesh Pandey
B) A. Manimekhalai
C) M. V. Rao
D) Kalyan Kumar
Answer: D

What does ESG stand for in ESG debt securities?

A) Equity, Security, Growth
B) Environmental, Social, Governance
C) Economic, Social, Government
D) Environment, Sustainability, Goals
Answer: B

Under the Reserve Bank of India's new draft regulations for gold loans (effective from January 1, 2026), what is
the maximum Loan-to-Value (LTV) ratio that lenders are permitted to offer against the assessed value of gold
collateral?

Connect With Us - 6
Weekly Banking Affairs www.parchamclasses.in

A) 90%
B) 80%
C) 70%
D) 75%
Answer: D

What is the Cash Reserve Ratio (CRR)?

A) Investment in government bonds
B) Cash reserves banks must maintain with RBI
C) Bank loan profit margin
D) RBI interest rate to banks
Answer: B

Which public sector bank has recently removed the requirement to maintain a minimum balance across all types
of savings accounts?
A) Punjab National Bank
B) Union Bank of India
C) Canara Bank
D) Bank of India
Answer: C

QUESTION OF THE DAY

Which Indian bank recently inaugurated its first ‘Phygital’ branch in the Kolkata Zone, combining digital tools with
personalized in-branch services?
A) State Bank of India
B) Punjab National Bank
C) Bank of Baroda
D) Canara Bank
Answer: C

Connect With Us - 7