MONETARY POLICY COMMITTEE Subject: Economics Context: Reserve Bank of India keeps the repo rate unchanged for the 5th consecutive monetary policy committee. Concept: Monetary Policy Committee (MPC) The Monetary Policy Committee (MPC) is a committee of the RBI, which is entrusted with the task of fixing the benchmark policy interest rate (repo rate) […]

    REAL EXCHANGE RATE Subject: Economics Concept: Real Effective Exchange Rate – REER The real effective exchange rate (REER) is the weighted average of a country’s currency in relation to an index or basket of other major currencies. The weights are determined by comparing the relative trade balance of a country’s currency against each […]

    EXCISE DUTY Subject : Economics Context : Bringing petrol and diesel under GST will not lower fuel oil prices by itself, unless both Union and state governments are willing to take deep revenue cuts. Concept : Excise duty is a form of tax imposed on goods for their production, licensing and sale. It […]

    INFLATION TARGETING Subject : Economics Context : India expected to retain current inflation targeting framework: Moody’s Analytics. Concept : Stressing that India’s retail inflation has been breaching the Reserve Bank of India’s (RBI’s) 4% inflation target for the past eight months, the financial intelligence firm said India and Philippines are the two notable […]

    FOREIGN PORTFOLIO INVESTMENT Subject : Economics Context : India biggest recipient of FPI inflows worth Rs 2.6 lakh crore in FY 2021. Concept : Foreign Portfolio Investments Foreign portfolio investment (FPI) refers to investing in the financial assets of a foreign country, such as stocks or bonds available on an exchange. This type […]

    DIVIDEND POLICY Subject : Economics Context: To strengthen corporate governance practices and disclosure requirements, markets regulator SEBI on Thursday decided that the top 1,000 listed firms listed on the stock exchanges should formulate a dividend distribution policy. Concept : Dividend policy is an important element in financial management. This policy is associated with […]