RBI Fund Transfer Subject: Economy Section: Monetary Policy The Reserve Bank of India (RBI) on Friday said its board had approved the transfer of ₹30,307 crore as surplus to the Union government for the fiscal year 2021-22, while deciding to maintain the Contingency Risk Buffer at 5.50%. Concept: The RBI, established in 1935, […]
Cotton Export and Export price parity Subject: Economy Section: Agriculture Context: Spiralling prices of cotton, resulting in demands by the textile and garment industries to ban exports of the fibre. Details: India is the world’s second largest cotton producer (after China) and third largest exporter (after the US and Brazil). High global prices […]
GST Council and Fiscal Federalism Subject: Economy Section: Fiscal Policy Context: The recommendations of the Goods and Services Tax (GST) Council are not binding on either the Union government or the states, the Supreme Court ruled on Thursday. “To regard them as binding edicts would disrupt fiscal federalism, where both the Union and […]
Currency Hedging Subject: Economy Section: External sector Context: Experts say hedging is the only way for importers to protect themselves from depreciating currency Concept: Currency Hedging is the act of entering into a financial contract in order to protect against unexpected, expected or anticipated changes in currency exchange rates. Hedging can be likened […]
Futures and Options Subject: Economy Section: Capital Market Content: Options An option gives the buyer the right, but not the obligation, to buy (or sell) an asset at a specific price at any time during the life of the contract. They tend to be fairly complex, options contracts tend to be risky. Both […]
Recession and high price Subject: Economy Section: Inflation If oil prices remain high like they are, then there are fears that the world might enter a recession in two years, a top source said. Concept: Periods of high oil prices frequently lead to periods of recession shortly after. There are main reasons for […]
Revised Guarantee Policy and FRBM Subject: Economy Section: Fiscal Policy Why in the news? Finance Ministry has come out with a new Government Guarantee Policy, which aims to include all the changes in General Financial Rules and financial policies. Need: Such a policy is required as the volume of sovereign guarantees undertaken during […]
Liberalised Remittance Scheme Subject: Economy Section: External Sector Outward forex remittances under the Reserve Bank of India’s liberalised remittance scheme (LRS) hit an all time high in FY22 as Indians splurged on overseas education and international travel. Outward Remittances: Outward remittance is a transfer of funds in the form of foreign exchange by […]
Export Promotion Organizations Subject: Economy Section: External Sector A stable and sustained increase in India’s export requires next generation reforms in its domestic trade institutions which act as catalysts to the growth of exports. Existing mechanism: Trade promotion bodies-The following is a list of Export Promotion Organisations in India, it includes Export Promotion Councils, […]
On-tap’ licences to set up universal banks and small finance banks Subject: Economy Section: Monetary Policy Six out of the 11 applications for ‘on-tap’ licences to set up universal banks and small finance banks were rejected by the Reserve Bank of India (RBI). Concept: An ‘on-tap’ facility means the RBI will accept applications […]