Updated as per RBI amended Master Direction dated June 04, 2024 KYC stands for “Know Your Customer”. It’s a process to prevent banks and other financial institutions from being used as a channel for Money Laundering (ML)/ Terrorist Financing (TF) and to ensure the integrity and stability of the financial system, efforts are continuously being…
[This post contains fundamental aspects of foreign exchange; and forex markets; as well as over 100 terminologies used in forex dealings such as direct and indirect Quote; buying rate, selling rate, forward exchange rate, swap rate, spot rate, cross rate, transaction date, value date, Spread, premium, discount, points, arbitrage, Interest arbitrage, Interest parity, future, hedging,…
The Reserve Bank of India (RBI) in its Notification No.FMRD.DIRD.10/14.02.001/2023-24 dated January 03, 2024, introduced certain changes in the Master Direction norms relating to Commercial Paper and Non-Convertible Debentures of original or initial maturity up to one year. The new direction is effective from April 1, 2024. Commercial Paper (CP) is an unsecured money market…
Primary dealers are registered entities with the RBI who have the license to purchase and sell government securities. Primary Dealers can also be referred to as Merchant Bankers for the Government of India as only they are allowed to underwrite primary issues of government. RBI issues government securities of the Government. A primary dealer buys…
A startup company as the name says is a company in the initial stages of business. The start-up companies might have shown promise for profits, but still need capital to develop products or grow. Funding sources for these companies include family and friends, venture capitalists, crowdfunding, and loans. In such cases, angel investors come into…
Capital market is a market for long-term debt and equity shares. The Debt Market is the market where fixed-income securities of various types and features are issued and traded. Debt Markets are, therefore, markets for fixed-income securities issued by the Central and State Governments, Municipal Corporations, banks, and financial institutions. A share may be bought…
The Reserve Bank of India on Monday issued revised instructions on Inoperative Accounts /Unclaimed Deposits in Banks. According to the revised guidelines, a savings/ current account shall be treated as inoperative, if for over two years there are no ‘customer-induced transactions’ in that account. Customer induced transactions are; (a) Financial transactions like debit/credit transactions in…
[This post elucidates what is a Government stock, who is all buyers of Government securities, why banks invest in Government securities beyond SLR requirement, advantages, and a brief on the issuance of Government Securities] What is G-sec? Government security (G-sec) is a form of security issued by the Government through a notification in the official…