Monetary policy decisions by central banks can have far-reaching implications for the economy, investors, small depositors and borrowers. Till the formation of MPC, RBI used to take monetary policy decision on Repo interest rates based on multiple indicator approach. The Governor of RBI being the focal point was subjected to hectic lobbying ahead of each…
In January 2014, the expert committee headed by Dr. Urjit Patel recommended revising the monetary policy framework, and it came up with its report. In the report it was suggested that RBI must abandon the existing ‘multiple indicator approach’ and make inflation targeting the primary objective of its monetary policy. As per the recommendation, the…
Monetary policy decisions by central banks can have far-reaching implications for the economy, investors, savers and borrowers. Between1980 to 1998, RBI adopted operating method of monetary policy ‘monetary targeting with feedbacks’. This method has been later altered pursuant to liberalization of financial markets and opening up of the economy and short-term deviation in the relationship…
RBI today (June 24, 2019) launched the “Complaint Management System (CMS)” to facilitate grievance redressal process. CMS portal is a software application through which public can access at RBI website to lodge their online complaints against any of the entities regulated by RBI with public interface such as commercial banks, Urban Co-operative banks, Non-Banking Financial…
The word ‘money’ or cash is usually used by the common man for currency notes and coins. Apart from above said portable money (cash), we also use cheque demand drafts, debit cards, and credit cards as money equivalents. In a broader interpretation, money means not only notes and coins in circulation; it includes other monetary…
The Reserve Bank of India, on Thursday (June 20, 2019), communicated that the electronic trading platform for buying/selling foreign exchange (FX-Retail) by retail customers (individuals, MSMEs) of banks is ready for rollout. The FX-Retail platform can be accessed by retail customers of a bank (through the websitehttps://www.fxretail.co.in), who has a need to purchase or sell…
We often receive questions about tax liability of a person in case of any income that accrues or is paid to a minor. Whether it is the minor’s own tax liability or the income of the minor should be clubbed with his father’s income or his mother’s income or the income should be divided into…
Today (19.06.2019), leaders of UFBU unions had wage settlement discussion with IBA. The officers associations AIBOC and NOBO did not participate in the meeting. In the absence of major officers associations, IBA asked Award Staff Unions to continue the discussion. The following are the points discussed. UFBU discussed about mandate issue up to Scale 7…
Securitization is the process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities. The interest and principal payments from the assets are passed through to the purchasers of the securities.Both Asset-backed securities (ABS) and mortgage-backed securities (MBS) are fixed-income financial securities collateralized (backed) by a pool of…
Currency Boards have been set up by many economies, big and small across the globe. A currency board is a country’s monetary authority (in India we do not have currency board, RBI issues currency notes), which is basically entrusted with the responsibility of issuing currency notes and coins. The currency board also takes decisions about…