The repo rate is the rate at which the central bank of a country (Reserve Bank of India in the case of India) lends money to commercial banks in the event of any shortfall of funds. The repo rate is used by monetary authorities to control inflation. It is economically similar to a secured loan.…
Now onwards Hospitals with 15 beds, registered under the Clinical Establishment Act, can provide cashless hospitalization to health insurance policyholders. The General Insurance Council (GIC) on Wednesday launched the “Cashless Everywhere” initiative under which health insurance policyholders will have the freedom to choose any hospital for their treatment. Furthermore, the cashless facility will be extended…
Masala Bonds are debt instruments that help to raise money in local currency from foreign investors. Both the government and private entities can issue these bonds. They work just like any other normal bond, but can only be issued outside India. The issue of these bonds is in Indian currency rather than the local currency…
The basic distinctions between retail banking and wholesale banking/Corporate banking are apparent in their target audiences, services offered, customer relationships, and risk profiles. Retail banking business is targeted at individuals, salaried professionals, micro, small, and medium enterprises, Self Help Groups (SHGs), and Non-Resident Indians (NRIs). Retail bankers offer a variety of deposit schemes to individuals…
The Credit market is also known as the ‘Debt Market’ because the credit market includes various forms of debt. The Credit market is also referred to as the ‘bond market’, as the bond market also characterizes the dominant portion of the credit market. The credit market can be mainly classified into two categories – the…
The Foreign Exchange Market in short also called the forex market is a global marketplace for exchanging national currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling, and exchanging currencies at current or determined prices. Foreign exchange trading uses currency pairs, priced in terms of one versus…
Trade Credits (TC) denote the credits extended by the overseas supplier, bank, financial institution and other permitted recognised lenders for maturity, for imports of capital/non-capital goods permissible under the Foreign Trade Policy of the Government of India. Depending on the source of finance, such TCs include suppliers’ credit and buyers’ credit from recognised lenders. The…
The revised guidelines on External Commercial Borrowing are as per the updated circular of RBI as of December 22, 2023. In simple terms, External Commercial Borrowings (ECB) means commercial borrowings availed (in the form of bank loans, trade credits, and securitized instruments) from external sources (from abroad) with a minimum average maturity of three years.…
The Reserve Bank of India on Tuesday placed on its website the Report of the Working Group on State Government Guarantees. A guarantee, in law, is a contract to answer for the payment of some debt, or the performance of some duty, in the event of the failure of another primarily liable person. A government…
One of the important components of the international financial markets is the money market. Money Market is concerned with the issue and trading of securities with short-term maturities or quasi-money instruments. The Instruments traded in the money market are Treasury Bills, Certificates of Deposits (CDs), Commercial Paper (CPs), Bills of Exchange, and other such instruments…