1. Introduction Ensuring equitable access to banking services for all individuals is a fundamental aspect of financial inclusion. Recognizing the challenges faced by visually impaired customers, the Reserve Bank of India (RBI) has issued detailed guidelines mandating that all banks provide comprehensive and non-discriminatory banking facilities to such individuals. These guidelines aim to remove physical,…
1. Understanding Partnership Firms A partnership is one of the oldest and most common forms of business organization, where two or more individuals come together to carry on a business and share its profits and losses. Each partner contributes skills, capital, or resources and, in return, becomes jointly and severally liable for the firm’s debts…
As banking regulations continue to emphasize transparency, traceability, and compliance, account opening procedures for non-individual customers such as clubs, societies, and associations have become more structured and documentation-driven. Banks are expected to not only verify the legal standing of such entities but also establish a clear understanding of the individuals authorized to manage their financial…
The Reserve Bank of India (RBI) recently released its ‘Statement on Developmental and Regulatory Policies’, outlining reforms across banking regulation, foreign exchange, consumer protection, and financial markets. These measures reflect RBI’s twin priorities: strengthening financial stability and making regulations more business- and consumer-friendly. What’s New in Banking Regulation? * Expected Credit Loss (ECL): RBI plans…
Overview The Basel Norms form the core of international banking regulation designed to strengthen bank capital, liquidity, leverage constraints, and market discipline to safeguard global financial stability. This article outlines Basel I–III, prudential norms, the effects of liberalization and globalization on stability, linkages to international standards and codes, and the supervisor’s role under the Basel…
Executive summary Financial stability requires a careful balance between expanding financial services and safeguarding the system against shocks, with policy frameworks aligning development, regulation, liquidity, and risk management to prevent systemic crises. This article outlines the development–stability trade-offs, key risks and early-warning signals, liquidity management foundations, supervisory approaches, and bank risk management practices in an…
Overview The Indian financial system comprises interconnected institutions, markets, instruments, and regulatory frameworks that mobilize savings, allocate capital, manage risks, and support economic development through efficient intermediation and market-based finance. Its stability and inclusiveness rely on strong, specialized regulators—RBI, SEBI, IRDAI, and PFRDA—coordinating prudential oversight, market conduct, and investor protection to uphold transparency and resilience…
Achieving low, stable inflation while sustaining robust, inclusive growth requires coherent use of both monetary and fiscal policies within a credible institutional framework. Monetary policy anchors price stability and expectations through interest-rate and liquidity tools, while fiscal policy shapes aggregate demand, public investment, and distributional outcomes—together determining the macroeconomic mix that minimizes sacrifice ratios over…
Fiscal policy in India encompasses government taxation, expenditure, and borrowing choices aimed at stabilizing the economy, promoting growth and equity, and allocating resources across competing priorities. It operates through constitutionally structured budgets at the Union and State levels, shaped by fiscal rules and periodic Finance Commission awards to manage vertical and horizontal imbalances. Importance of…
Credit policy sets the framework through which a financial institution originates, prices, administers, and monitors credit exposures to achieve portfolio-quality, profitability, and compliance objectives in a risk-controlled manner. In banking practice, it translates the Board-approved risk appetite into actionable standards for underwriting, concentration, pricing, collateralization, and remediation across the credit lifecycle. Objectives Theory and practice…
