What is the meaning of Capital Adequacy Ratio?

Capital Adequacy Ratio is also known capital-to-risk weighted assets ratio is used for the protection of depositors and promotion of stability of financial systems across the world. It is a measure of the capital of the bank which is expressed as a percentage of bank’s risk-weighted credit exposures. The ratio is usually decided by the […]

What is Bank Rate?

Bank Rate is defined as the rate at which Central Bank gives loans to other domestic banks like commercial banks, cooperative banks, development banks etc. The loans are generally given on a short-term basis. It is the way the Central Bank manages the economic activity in the country. The Bank Rate, in turn, goes to […]

What is Branch Banking?

Branch Banking is still an integral part of Indian banking system as most Indians still believe in cash transactions and prefer to visit banks in person for routine banking operations. Bank branches are the face of the banks where customers can visit and talk to the officials for getting better insights into new policies, investment […]

How RBI regulates Commercial Banks?

One of the most important functions of RBI is to work as regulator and supervisor of financial system. The financial system in India includes Commercial Banks, Regional Rural Banks, Local Area Banks, Cooperative Banks, Financial Institutions including Development Financial Institutions (DFIs) and Non-Banking Financial Companies. RBI derives its regulating powers for Indian Banking System from […]

Cash Reserve Ratio

The Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve bank of India as a portion of their Net Demand and Time Liabilities (NDTL). The objective of CRR is to ensure the liquidity and solvency of the Banks. The CRR is maintained fortnightly average basis. Impacts of […]