IntroductionForeign exchange (Forex or FX) refers to the process of converting one currency into another at a specific rate, known as the foreign exchange rate. Forex trading involves the buying and selling of currency pairs—such as USD/INR or EUR/INR—and is an essential component of international trade, investment, and global financial systems. Determinants of Exchange Rates…
A digital payment sometimes called an electronic payment, is a good alternative to traditional methods of cash payment and speeds up transaction cycles from person to person, person to business, person to government, Government to person, business to business, business to Government, etc. “Faceless, Paperless, Cashless” is one of the professed roles of the Digital…
Liberalised Remittance Scheme (LRS) is a scheme introduced by RBI as liberalisation measure to facilitate Resident Individuals (RI) to freely remit funds up to USD 2,50,000/- outside India in a financial year (April to March) for any permissible current or capital account transaction or a combination of both. Any resident individual including a minor is…
A non-residential Indian is a person who stays outside India for 182 days or more An Indian citizen or a foreign citizen of Indian origin who has stayed abroad for employment/carrying out business or vocation for 182 days or more during the period of the foreseeing financial year. Non-Resident Indians (NRIs) are permitted to open…
The foreign exchange market, or Forex Market (FX market), is a global decentralized over-the-counter (OTC) marketplace for trading currencies. Participants in the FX market engage in buying and selling foreign currencies, determining exchange rates for global currencies. It is the largest financial market in the world, comprising a global network of financial centers that operate…
IntroductionBanking fraud refers to a spectrum of deliberate acts intended to deceive and unlawfully benefit from financial transactions or services. These fraudulent activities can target various banking operations, including account openings, lending processes, fund transfers, and digital banking. Understanding the common areas in which frauds are committed is essential for institutions to develop preventive mechanisms…
IntroductionThe Reserve Bank of India (RBI) has established a comprehensive regulatory framework for private sector and foreign banks to ensure financial integrity, mitigate risks, and uphold the stability of the banking system. These guidelines focus on fraud reporting, customer due diligence, vigilance mechanisms, and cybersecurity infrastructure. Adherence to these norms is critical to maintaining transparency,…
[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,…
IntroductionThe vigilance function in banks plays a vital role in safeguarding institutional integrity, ensuring compliance with regulatory frameworks, and fostering a culture of ethical conduct. Operating as a key component of the bank’s governance structure, the vigilance department serves both preventive and corrective purposes by monitoring activities, investigating irregularities, and promoting transparency across operations. 1.…
IntroductionTimely reporting of banking and cyber fraud is essential to mitigate losses and facilitate the recovery process. Multiple channels have been established by the Government of India and financial institutions to assist victims in lodging complaints and initiating investigations. Reporting Mechanisms 1. National Cybercrime Helpline (1930)Dial 1930 to report incidents of cybercrime, including financial fraud.…
