Latest edit: RBI has decided to reduce statutory liquidity ratio, the portion of funds which banks are required to park in treasury bills and other instruments, by 0.25% every quarter beginning January. The calibrated reduction in statutory liquidity ratio (SLR) will continue till it reaches18%. The first reduction of 25 basis points taken effect in…
The economists worldwide have noticed a strong correlation between the inflationary trend and growth of money in circulation in a point of time. Thus, government which is in principle responsible for currency notes and coins issued by it, is answerable to its citizen get their value by dint of regulation or law. For example, RBI…
The tools of monetary policy refer to the tools used by the RBI to meet the set objectives of price stability and growth of economy.The tools used by RBI for the above purposes are; Cash Reserve Ratio (CRR), Statutory Liquidity Reserve (SLR) Directed credit and administered interest Bank rate, Selective Credit Control, Open Market Operations…
The contract of sale of goods contains certain terms/stipulations for fulfillment of that contract. Such stipulations that are important for fulfillment of the contract are called “Conditions”. Whereas the stipulations contained in the contract which may not be very essential for fulfillment of the contract are called warranties. Therefore, we may describe that the condition…
Underwriting is a process generally takes place in initial public offerings (IPO). The underwriter to an IPO guarantees payment in case of damage or financial loss to the share issuing company. The under writer may accept financial risk for liability either on firm commitment or best effort basis. Here best efforts means that the underwriters…
Updated on September 4, 2020: RBI revised priority credit lending guidelines. In the new guidelines, Bank finance to start-ups (up to ₹50 crores); loans to farmers for installation of solar power plants for solarisation of grid-connected agriculture pumps, and loans for setting up Compressed Bio-Gas (CBG) plants have been included as fresh categories eligible for…
Here you will find the statewise lists of Public holidays/Bank Holidays declared by diferent states viz.1.Andhra Pradesh, 2.Arunachal Pradesh, 3.Assam, 4.Bihar, 5. Chhattisgarh, 6. Delhi, 7. Goa, 8.Gujarat,9. Haryana,10. Himachal Pradesh, 11.Jammu & Kashmir, 12. Jharkhand, 13.Karnataka, 14.Kerala, 15.Madhya Pradesh, 16. Maharashtra, 17. Manipur, 18. Meghalaya, 19.Mizoram,20. Nagaland, 21. Odisha, 22. Pudhucherry, 23.Punjab, 24. Rajasthan,…
The Pillar 3 of the Basel frame work aims to promote market discipline through regulatory disclosure requirements. BCBS has set out following five guiding principles for banks’ Pillar 3 disclosures. Principle 1: Disclosures should be clear: The disclosure shall be in a simple language understandable to all the stake holders along with presentation of risk…
The term ratio means a simple division of one number by another. It is measured by the number of times one number is contained by the other, either integrally or in fraction. The ratio analysis of financial statement means the process of calculating structural relations of different items and groups in the financial statements. Generally,…
If any lending decision is to be properly made, the risk involved in the transaction should be properly evaluated. Risk evaluation primarily consists in the ascertainment of the ability of the prospective borrower to repay the proposed loan. To ascertain this ability, apart from financial analysis many other vital considerations such as the character of…