Subject:Economy Context: The Reserve Bank of India has kept the interest rates unchanged seeking to contain a rise in retail inflation even as growth remains a concern. Concept: The repo rate (the interest rate at which the RBI provides liquidity to banks to overcome short-term mismatches), thus, continues to remain at 4 per cent. This rate […]

Subject: Economy Context: Banks need to rise the provisioning for expected bad loans rising due to pandemic hit economy Concept: Banks have to set aside or provide funds to a prescribed percentage of their bad assets. The percentage of bad asset that has to be ‘provided for’ is called provisioning coverage ratio. Provisioning Coverage Ratio […]

Subject: Economy Context: Petroleum and Natural Gas Regulatory Board (PNGRB) set to notify regulations to allow competition for city gas distribution companies Concept: CNG Vs H-CNG CNG is compressed natural gas. With natural gas mainly composed of methane, CNG emits less air pollutants — carbon dioxide, carbon monoxide, nitrogen oxides and particulate matter — than […]

Subject: Economy Context: There has been a sharp fall in deposit rates due to aggressive rate cuts by banks in response to the Reserve Bank of India’s (RBI) reduction in the benchmark rates. This coupled with a rise in consumer prices have pulled real interest rates into negative territory, disincentivising savings. Concept Builder: Real interest […]