CESS & SURCHAGES Subject: Economics Context : West Bengal Finance minister Amit Mitra Saturday said the Centre is on a spree to impose cess and surcharges to deny the states from getting their share of revenues Concept: Cess A cess imposed by the central government is a tax on tax, levied by the […]

    CASH RESERVE RATIO Subject : Economics Context : 10.5% growth in 2021-22, will raise CRR in two stages, says RBI. Concept : CRR It is a certain minimum amount of deposit that the commercial banks have to hold as reserves with the central bank. The percentage of cash required to be kept in […]

    G -SECS Subject : Economics Context : The Reserve Bank of India (RBI) said it would allow retail investors to open gilt accounts with the central bank to invest in government securities directly and without the help of intermediaries. Concept : This is a major structural reform placing India among select few countries […]

    ACCOMODATIVE MONETARY POLICY Subject : Economics Context : The Reserve Bank of India (RBI) on Friday said it would retain an accommodative policy stance into the next financial year to help revive growth on a durable basis. Concept : Accommodative monetary policy, also known as loose credit or easy monetary policy, occurs when […]

    PROFORMA NPA Subject : Economics Context : Almost all private sector banks, housing finance companies and NBFCs as well as a few public sector lenders have reported performances for the quarter ended December 31, 2020 with higher pro forma gross non-performing assets compared to the reported gross NPAs. Concept : Supreme Court in […]

    LIMITED LIABILITY PARTNERSHIP Subject : Economics Context : The Corporate Affairs Ministry on Wednesday said it plans to decriminalise 12 offences as well as omit a provision entailing criminal liability under the Limited Liability Partnership (LLP) Act, 2008, for greater ease of doing business for law-abiding LLPs. Concept : LLP is an alternative […]

    HELD TO MATURITY Subject: Economics Context: RBI to hike banks’ HTM limit by 4% of book (Rs 6,136 billion/$84 billion), atop 2.5% in FY21, till FY26 (from FY23 now). This should incentivise banks to invest their money market surplus, of almost $80 billion, in G-secs . Concept: Held-to-maturity (HTM) Held-to-maturity (HTM) securities are […]

    DOUBLE TAXATION FOR NRI Subject: Economics Context:  The new Section 89A aims to solve the issue of double taxation on retirement accounts of NRI employees Concept: Mobile employees are required to mandatorily open social security / retirement fund accounts in the host country; it also acts as an effective way of tax deferral […]

    EQUALIZATION LEVY Subject: Economics Context: Firms reaping economic benefits from a different country have to be taxed even if they do not have a physical establishment in that jurisdiction, argued Commerce Secretary, while defending India’s decision to impose a 2 per cent digital services tax on foreign e-commerce firms. Concept: The equalization levy […]

    PCA FRAMEWORK Subject : Economics Context : The Finance Ministry expects the remaining three public sector banks (PSBs) to be out of the RBI’s prompt corrective action (PCA) framework in two months, as their financial health has improved. Concept : Indian Overseas Bank, Central Bank of India and UCO Bank are currently under […]