Hereafter short term crop loans extended only through KCC is eligible for interest subvention scheme

Reserve bank of India advised all the scheduled commercial banks that with effect from April 1, 2020, Short Term Crop Loans should be extended only through KCC to be eligible for Interest Subvention Scheme (ISS) and Prompt Repayment Incentive (PRI). According to the notification, the Ministry of Agriculture & Farmers Welfare vide their Office Memorandum,…

What are equity shares?

Equity shares are also known as Ordinary Shares. The money invested in the equity shares of a company is a part of the capital of the company. When an investor buys a company’s share or equity, he gains partial ownership rights of that company. The amount so invested on the equity shares of a company…

What is a recurring deposit (RD)?

The major characteristics of the RD account can be described as “a variant of term deposit offered by the banks with fixed monthly investment, fixed duration, and a fixed rate of interest throughout the tenure of the deposit”. Under the scheme, the account holder has to deposit a pre-decided fixed amount every month to his…

RBI revises its liquidity management framework: LTRO introduced in place of 14 days fixed term repo

As announced in the Statement on Developmental and Regulatory Policies of February 6, 2020, the Reserve Bank of India has decided to revise its liquidity management through which it controls cash in the banking system to rationalise interest rates in line with the policy actions. Instruments of liquidity management will include “fixed and variable rate…