Public Sector Asset Rehabilitation Agency (PARA)

February 15, 2017

The Public Sector Asset Rehabilitation Agency (PARA) colloquially called “Bad Bank” is a proposed agency to assume the Non-Performing Assets (NPA) of public sector banks in India and to deal with the recovery of the bad loans. This agency has been proposed in Economic Survey 2016-17. The...

RBI and RTI: Recent Supreme Court Judgement

February 16, 2016

On December 16, the Supreme Court of India said that RBI cannot reject the plea asking information regarding private and public banks under the Right to Information (RTI) Act. While considering the several appeals filed by the RBI against various orders of the Central Information Commission (CIC)...

ON Financial Stability Report

September 13, 2015

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 favourable and boosted dividend for India. All...

Payment Banks

April 26, 2015

About 40%-50% of India’s 1.25 billion population is eligible to open a bank account, but is still unbanked . In the Union Budget 2014-2015, the finance minister Arun Jaitley announced that RBI will create a framework for licensing small banks and other differentiated banks. The objective of...

Non-Operative Financial Holding Company

April 24, 2015

In February 2013, RBI had issued final guidelines to apply for new banking licenses in the private sector. Under these guidelines, RBI said that the entities or groups in the private sector, entities in public sector and Non-Banking Financial Companies (NBFCs) can set up a bank, which...

Public Debt Management Agency

March 29, 2015

Public Debt Management Agency has been proposed to be set up by the Finance Minister in his budget 2015-16 speech. This separation of debt management from monetary policy is being seen as a watershed reform in the financial circles. Debt management role was performed by RBI. It...

Trade Receivables Discounting System

March 29, 2015

Trade Receivables Discounting System or TReDS is a welcome step by RBI to secure finances for micro, small and medium enterprises. It has been set up under the regulatory framework set up by RBI under Payment and Settlement Systems Act 2007. Rationale MSMEs have always been at...

Money Supply and Monetary Aggregates

March 24, 2015

What do you understand by Money Supply? Differentiate between the broad money, narrow money and reserve money. Which is more liquid? Why?

Money Market Reforms in India

March 24, 2015

Reserve Bank of India is the biggest regulator of the Indian markets. It controls the monetary policy of India. Its control is however limited to the organised part of economy and the unorganised sector which has a significant presence is largely unregulated. RBI frequently introduces many reforms...

Certificate of Deposit

March 23, 2015

Certificate of Deposit (CD) refers to a money market instrument, which is negotiable and equivalent to a promissory note. It is either issued in demat form or in the form of a usance promissory note. This instruments is issue in lieu of the funds deposited at a...