Banking in India

September 13, 2015

PJ Nayak Committee Report and PSBs

The government has decided to separate the roles of Chairman and Managing Director CMD in public sector banks. This comes in wake of the recommendations made by P J Nayak Committee. The Committee had underlined its recommendations with the fact…

September 13, 2015

ON Financial Stability Report

Indian economy has withstood the global pressures with ease at a time when sluggishness was apparent in European and Japanese economic fronts. It is the sharp decline in oil prices coupled with declining energy prices which have made the conditions…

June 23, 2015

Difference Between Payment Banks and Small Finance Banks

The following table gives a crisp overview of small finance banks and Payment banks. DifferenceSmall BankPayments Bank EligibilityProfessionals with 10 years in financial services or promoter group with 5 year track recordCard Issuers, Finance Companies, Business Correspondents, Telecom Companies, Retailers…

April 30, 2015

Is SBI a nationalized bank?

SBI got birth in the British Era. Its first parents were three presidency banks viz. Bank of Calcutta (later Bank of Bengal), Bank of Bombay and the Bank of Madras. In 1921, these three presidency banks were merged in one…

Debit-Card-Credit-Card

Basic Knowledge about Debit Card and Credit Card

A debit card is a plastic card that provides a cardholder electronic access to his / her bank account. It can be used to withdraw funds or to make purchases using money in the bank account. Since a debit card…

April 27, 2015

Bancassurance

Bancassurance or Bank Insurance Model refers to the distribution of the insurance and related financial products by the Banks whose main business is NOT insurance. So, simply Bancassurance, i.e., banc + assurance, refers to banks selling the insurance products In…

April 27, 2015

What is Asset Liability Mismatch?

Asset Liability Mismatch or ALM is considered to be a comprehensive and dynamical framework for measurement, monitoring and managing the market risk of the Banks. Asset Liability Mismatch arises in the following situation: The Primary source of funds for the…

April 27, 2015

India’s Credit Rating Agencies

The Credit rating market taken a definite shape in India after the SEBI made it mandatory for any debenture that has maturity of more than 18 months maturity. There are four domestic credit ratings in India for standardized approach for…

April 27, 2015

What are Risk Weighted Assets?

The Risk Weighted Assets (RWA) refer to the fund based assets such as Cash, Loans, Investments and other assets.  They are the total assets owned by the Banks, however, the value of each asset is assigned a risk weight (for example…

Indian-Rupees

Small Finance Banks

On 27 November 2014, RBI had released the guidelines on Small Finance Banks along with the Payment Banks. The objective of small finance banks is to further financial inclusion by providing: Basic banking facilities to the unbanked and thereby boosting…