Current Affairs - Finance

The State Bank of India (SBI), the country’s largest public sector bank, contributed a substantial $44 billion to the global economy in the financial year 2024–25. This alone accounted for 1.1% of the world’s GDP growth and 16% of India’s total GDP increase for the year. In addition to its global contribution, SBI also added 8.7% to India’s Gross Value Added (GVA) in the financial services sector, with its GVA rising to ₹1,38,533 crore. This performance not only highlights SBI’s critical role in India's economic expansion but also demonstrates its influence in driving international economic progress.

The Green Climate Fund has sanctioned $200 million for a new initiative led by the Asian Development Bank (ADB) to support the India Green Finance Facility (IGFF). This programme is designed to boost investments in emerging clean energy technologies within India by blending public and private sector financing. ADB’s leadership in this project highlights its continued role in promoting sustainable development and climate resilience in Asia. By involving India’s leading development finance institutions and the private sector, the initiative aims to mobilise significant resources for environmentally friendly energy solutions and contribute to India’s climate goals.

Fintech firm Slice has pioneered India's first fully UPI-powered bank branch in Bengaluru's Koramangala area, marking a significant shift in digital banking. The branch features UPI-enabled ATMs and introduces the slice UPI credit card - a no-fee product offering 3% cashback and interest-free EMI options. This launch represents Slice's evolution from a digital-only platform to an integrated banking service provider with its own infrastructure. By combining credit facilities with UPI's convenience, Slice aims to expand financial inclusion, particularly for underserved segments, while redefining point-of-sale credit access in India's banking landscape.

India’s post offices, under the Department of Posts, are set to accept UPI-based QR code payments at all counters across the country by August 2025. This digital transformation is part of the IT 2.0 infrastructure upgrade and aims to bring secure, real-time payment options to over 1.5 lakh post offices, many located in rural and semi-urban areas. The initiative builds on successful pilot programs in Karnataka and is designed to improve efficiency, reduce reliance on cash, and expand financial access through services like savings deposits, parcel booking, and postage. The move aligns with the broader goals of the Digital India initiative and financial inclusion.

The International Monetary Fund (IMF) has recognized India’s Unified Payments Interface (UPI) as a global model for countries aiming to build digital payment ecosystems. In a paper titled “Growing Retail Digital Payments: The Value of Interoperability,” the IMF highlighted key success factors such as UPI’s interoperability, platform-agnostic design, affordable internet, digital ID infrastructure, and inclusive banking access. It emphasized that UPI’s collaborative and scalable design offers a strong blueprint for digital transformation. The endorsement showcases India’s leadership in financial technology and suggests that countries seeking digital payment reforms should consider India’s approach while tailoring it to their unique contexts.