When we talk about interest rate, the most common thing that comes to our mind is the extra amount which we need to pay to lender over period of time. But, what is interest rate become negative, will lender pay us for a loan? There are lots of countries where banks are offering negative interest …
Banking Reforms Road-map is released by Ministry of Finance A report titled “Responsive & Responsible PSBs Banking Reforms Road-map for a New India” AIM: EASE – Enhanced Access and Service Excellence, Bank recapitalization plan for Public Sector Banks (PSBs) announced in October 2017. Under this plan 2.11 lakh, Crore of Capital will be infused Banks. …
Recently RBI has announced its 2nd monetary policy for FY 2018-19. It has increase Policy rate and takes a neutral stance. These are important information, but from exam perspective (exams like RBI Grade B, UPSC) the background of these policies are important. Few questions which has been asked in UPSC CSE prelims and RBI Grade B …
2nd Monetary Policy: Why RBI Increased Policy Rates Read More »
Asian Development Bank(ADB):- Asian Development Bank is a regional development Bank established in December 1966, Headquartered at Manila, Philippines. It admits the members of the United Nations Economic and Social Commission for Asia and Pacific and non-regional developed countries. It has 68 members of which 48 are within Asia and the Pacific and 19 from …
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A Non Banking Financial Institution or Non Banking financial company is a financial Institution that does not have a full banking license and not regulated as stringent as Banks are. They provide banking and financial services like loans, credit facilities, retirement planning, investing and stocking in money market. Example – Muthoot Finance, LIC Housing Finance, …
Highlights of Financial Stability Report Overall assessment of systemic risks India’s financial system remains stable. Commodities space is firming up. Increased geopolitical risks imply likely volatility in commodity prices. Notwithstanding the efforts to normalise monetary policy by the Federal Reserve and the Bank of England, financial conditions in the advanced economies remain accommodative 33% of rejection …
According to the World Bank report close to 1.4 billion people in the different countries don’t have access to the financial service and that’s where Micro-financial Institution play a major role. Goals of MFI’s: Assists the development of community which follow sustainable development. Providing resources to lower section of the society. Evaluation of option to …
Any individual, corporation society, business entity, society, NGO etc. Providing banking services in the areas where they’re in no facility of a bank branch or ATM are termed as banking/business correspondents. Individuals are generally retired bank employee’s, ex. Servicemen retired post officials or any other interested person. see all ROLE OF ASIAN DEVELOPMENT BANK IN …
Recently, RBI Board agreed to give a whooping sum of 1.76 lakh crore of its dividends to the government under revised Economic Capital Framework agreement. Economic Capital Framework is the capital assessed by the RBI to counter any future risks and contingencies associated with its operations and objectives. ECF as bone of contention between RBI …
Is govt interference eroding credibility of RBI? Read More »
Background In a family, we have a family head that looks after and supervises the smooth functioning of the family. He keeps all the members of the family intact and ensures order in the house. Family members look up to the family head for suggestions whenever required and heed to their advice for managing their …
In this article, we will try to understand what is REPO, Reverse REPO, Bank Rate and then we will discuss relationship among them. This is important to understand not only from exam perspective ( RBI Grade B, UPSC- CSE, and other banking exams) but to comprehend the basic economy news. Repo Rate and Reverse Repo …
Know about Repo rate, Reverse Repo and Bank rate Read More »
See also: NBFC crisis in India Background In 1987 IL&FS was formed by three financial institutions, Central Bank of India, Housing Development Finance Corporation (HDFC) and Unit Trust of India (UTI), to provide loans for major infrastructure projects. After few years two big international institutions, namely Mitsubishi (through Orix corporation Japan) and the Abu Dhabi …
On April 18, 2018 , N. S. Vishwanathan, Deputy Governor, Reserve Bank of India delivered a speech at National Institute of Bank Management, Pune. His title of speech was “It is not Business as Usual for Lenders and Borrowers” . in his speech he has talked about the new circular of February 12, 2018 (Resolution …
