Statutory Liquidity Ratio Subject :Economy Section: Monetary Policy Statutory Liquidity Ratio popularly called SLR is the minimum percentage of deposits that the commercial bank maintains through gold, cash and other securities. However, these deposits are maintained by the banks themselves and not with the RBI or Reserve Bank of India. Section 24 and […]
CRR Subject :Economy Section: Monetary Policy 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 reserves, vis-a-vis a bank’s total deposits, is called the Cash Reserve Ratio. The cash reserve is either […]
BIS and Basel norm Subject: Economy Section: Monetary Policy What is Basel Committee? The Basel Committee – initially named the Committee on Banking Regulations and Supervisory Practices was established by the central bank Governors of the Group of Ten countries at the end of 1974 in the aftermath of serious disturbances in international currency and banking markets […]
Ring-fencing our banks Subject: Economy Section: Monetary Policy Context: Banking crisis in US Details: While dealing with increased financial distress, banks look to the central bank or the government to come to their rescue. Liquidity Coverage Ratio is the financial shield that protects a bank from an impending bankruptcy A major fault line […]
Outcome budgeting Subject :Economy Section: Fiscal Policy What is outcome budgeting ? Over the year’s performance budget was seen as following output, rather than outcomes (Budget speech of 2005-06 highlighted this). Outcome budgeting lays emphasis on linkages between money allocated (outlay) and the outcomes (and not just outputs). It shifts the focus to […]
Sebi, investment bankers turn cautious as IPO market faces uncertainty Subject :Economy Section: Financial Market IPO is the selling of securities to the public in the primary market. Primary market deals with new securities being issued for the first time. It is also known as the new issues market. It is different from secondary market where existing […]
Finance min invites application for RBI deputy governor post Subject : Economy Section: Monetary Policy Concept : The finance ministry has initiated the process to appoint a new Reserve Bank deputy governor in place of MK Jain, whose extended term is coming to an end in June. Selection Process The applicant should have […]
Amid heat over Adani stocks, NSE says all its decisions ‘transparent’ Subject :Economy Concept : Amid criticism by the Opposition of its decision to exclude three Adani group stocks from short-term surveillance, NSE on Sunday defended its action, saying such moves are based on non-discretionary, pre-announced and automatically applicable rules and involve no […]