Banking system liquidity in deficit mode Subject : economy For the first time since May 2019, the banking system liquidity situation turned into a deficit mode of Rs 21,873.4 crore on September 20, 2022. Banking system liquidity: Liquidity in the banking system refers to readily available cash that banks need to meet short-term […]

    Foreign Trade Policy Subject: Economy The Government will release a new foreign trade policy in the coming week that could include measures to help push up goods and services exports as well as rein in the runaway import bill. The current trade policy was introduced in 2015. New initiatives expected under the new […]

    Cooperative Banks Subject: Economy Context: The Bombay High Court (HC) has suspended the operation of the Reserve Bank of India (RBI) order cancelling the banking license of the 110-year old Rupee Co-op Bank Ltd till next month –as the appeal to the order is pending before the Appellate Authority, Department of Financial Service […]

    Fed Policy Subject: Economy Context: The Federal Reserve on Wednesday raised the key US interest rate again and signalled more hikes–an aggressive stance that has raised fears of an eventual recession. Details: The increase takes the policy rate to 3.0-3.25% rates and would reach 4.4% by the end of 2022 and 4.6% in […]

    Basel Compliant Bonds Subject: Economy Context: Indian banks may continue their fundraising by issuing Basel III-compliant and infrastructure bonds as they rush to meet rising credit demand and lock in funds at cheaper rates. Details: State-run banks have already raised ₹281 billion through a combination of Basel III-compliant additional Tier I perpetual bonds, […]

    MIBOR  Subject: Economy Context: RBI announces Variable Rate Repo (VRR) auction of one-day tenor under Liquidity Adjustment Facility to inject ₹50,000-crore liquidity to help the banking system tide over the liquidity deficit and also soften call money rates. Details: Liquidity in the banking system went into deficit mode after remaining in surplus mode […]

    Decoupling Subject: Economy Context: Sustained decline in a few major markets will most likely pressure domestic markets sooner or later. Thus, the theory of India’s decoupling from the global market can be a myth. Details: Indian stocks have outperformed overseas markets for a couple of months, this gives the impression that the Indian […]