Rising risk of unsecured retail loans in India Subject: Economy Section: Monetary Policy Increasing Risk: UBS highlights the growing risk of unsecured retail loans turning bad in Indian banks as lending to borrowers with overdue debt has risen. Pandemic Impact: The stress on household finances due to the pandemic has eased, leading to […]
G20’s roadmap for crypto regulation Subject: Economy Section: Monetary Policy Why in the News? Adoption of the G20 Roadmap on Crypto Assets: Under India’s Presidency, the Finance Ministers and Central Bank Governors of the G20 nations have adopted a comprehensive roadmap for the regulation of crypto-assets, as proposed by the IMF and FSB. […]
Decline in Banks’ Outstanding Credit-Deposit Spread in India Subject: Economy Section: Monetary Policy According to recent data from the Reserve Bank of India (RBI), the net interest spread between outstanding loans and deposits of banks in India has experienced a significant compression, reaching an 8-year low in August 2023. The spread between the […]
Principle of Comparative advantage Subject: Economy Section: External Sector Context: Indian Industrial Policy doesn’t take into account India’s comparative advantage What is Comparative advantage? According to the principle of comparative advantage, the gains from trade follow from allowing an economy to specialise. If a country is relatively better at making wine than wool, it makes […]
Importance of bond markets for financing green energy projects Subject: Economy Section: Fiscal Policy What’s Happening? HDFC emphasized the importance of deepening bond markets to efficiently finance India’s energy transition goals and cautioned against relying solely on bank finance for long-gestation projects, citing potential disasters similar to those witnessed in the early 2000s. […]
Devolution of funds to South Indian States Subject: Economy Section: Fiscal Policy Why in News? Tamil Nadu has criticized the central government for its unfair treatment of the state regarding the devolution of funds and highlighted the following points: – Comparative Contributions shows Step motherly Attitude: Tamil Nadu contributes more to the central […]