Subject: Economy Context: India’s fiscal deficit reached 109% of the full-year target in the first five months of the ongoing financial year as the coronavirus pandemic continued to be a drag on the government’s finances. Concept: The gross fiscal deficit (GFD) is the excess of total expenditure including loans net of recovery over revenue receipts […]

Subject: Economy Context: The Reserve Bank of India (RBI) has decided to extend the interim relaxation in WMA (Ways and Means Advances) limits for States/ Union Territories (UTs) for another six months till March 31, 2021. Concept: On April 17, the RBI had announced an increase in WMA limit of the States/UTs by 60 per […]

Subject: Economy Context: RBI defers CCB implementation by six months due to Covid-19 pandemic The implementation of the regulations was to happen by September 30, and the same has been now deferred to April 1, 2021 Concept: The capital conservation buffer (CCB) is designed to ensure that banks build up capital buffers during normal times […]

Subject: Economy Context: With the stock market bouncing back in the latter part of 2020, promoters of companies have used this period to offload shares of their companies to the public in droves. Concept: Offer for sale (OFS) is a simpler method of share sale through the exchange platform for listed companies. The mechanism was […]

Subject: Economy Context: The RBI, as a temporary measure, had increased the borrowing limit for scheduled banks under the marginal standing facility scheme from 2 per cent to 3 percent of their Net Demand and Time Liabilities (NDTL) Concept: Marginal standing facility (MSF) is a window for banks to borrow from the Reserve Bank of […]