Banking in India

Banking Sector in Union Budget 2017-18

April 9, 2017

The budget 2017-18 has come with a big boost for the agriculture market due to increased push on infra, boost to affordable housing, fiscal deficit target of 3.2% etc. They key provisions for the banking sector are as follows: New Bankruptcy Bill for Financial Firms It was announced that...

Difference Between Payment Banks and Small Finance Banks

June 23, 2015

The following table gives a crisp overview of small finance banks and Payment banks. While payment banks are to provide payment solutions, Small Finance Banks are to provide basic banking services for the purpose of financial inclusion and boosting saving habits among lowest strata of the society. While Car...

Is SBI a nationalized bank?

April 30, 2015

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 entity called “Imperial Bank of India”. The Imperial Bank...

Basic Knowledge about Debit Card and Credit Card

April 28, 2015

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 is essentially linked to a checking account (saving /...

Bancassurance

April 27, 2015

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 India, ever since espousing of financial reforms following the...

What is Asset Liability Mismatch?

April 27, 2015

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 banks is deposits, and most deposts have a short-...

India’s Credit Rating Agencies

April 27, 2015

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 credit risk calculation. They have been discussed below: CRISIL...

What are Risk Weighted Assets?

April 27, 2015

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 100% for corporate loans and 50% for mortgage loans)...

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 shall be...

Double Financial Repression

March 29, 2015

Indian Banking System is faced by many ideas and challenges stemming from both policy and structure. The experts have suggested that the system is affected by Double Financial Repression. Latter, as pointed out by Economic Survey 2014-15, is a phenomenon when the banks are faced with financial repression both...

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