Broadly, a credit market is a market for borrowing money in the form of bank loans, bonds, etc. The credit market is also known as the debt market since it deals in fixed-income instruments like bonds, treasury bills, commercial paper, and debt offerings such as notes and securitized obligations, collateralized debt obligations (CDOs)/(mortgage-backed securities), and…
The Payment and Settlement System (PSS) Act, 2007 provides for the regulation and supervision of payment systems in India and designates the Reserve Bank of India (Reserve Bank) as the authority for that purpose and all related matters. The rapid developments in Payment Systems and technology have led to the implementation of major reforms of…
‘Corporate Debt Security’ means non-convertible debt securities, which create or acknowledge indebtedness, including debentures, bonds, and such other securities of a company or a body corporate constituted by or under a Central or State Act, whether constituting a charge on the assets of the company or body corporate or not, but does not include debt…
An economy may be divided into the real sector and the nominal sector. The real sector of the economy deals with the production side, while the nominal economy deals with the financial side. The primary and secondary sectors of an economy are examples of real economy. Primary sector is accountable for securing raw materials and…
Economic reforms refer to changes introduced by the government to bring an improvement in the economy of a country through various reforms and policies to solve the prevalent economic problems. A transformation is a complete change in the appearance or character of something or someone, especially so that that thing or person is improved. Economic…
Updated as per RBI master circular dated April 2, 2024 As per RBI guidelines, the following entities/offices are not eligible for bank finance. Other important home-related articles: IMPORTANT PRE-SANCTION HOME-LOAN REGULATIONS LAY DOWN BY RBI HOME LOAN INTEREST: FLOATING OR FIXED RATES WHICH IS BETTER FOR YOU? HOW DOES A BANK DECIDE YOUR HOME LOAN…
Updated as per RBI master circular dated April 2, 2024 According to the RBI master circular, the Central Bank has been observing that some banks have introduced certain innovative Housing Loan Schemes in association with developers/builders, such as upfront disbursal of sanctioned individual housing loans to the builders without linking the disbursals to various stages…
Updated as per RBI master circular dated April 2, 2024 In light of the observations of the Delhi High Court on unauthorized construction, Banks/FIs before extending credit facilities shall follow the RBI guidelines stated below. RBI NORMS ON HOUSING FINANCES TO INDIVIDUALS FOR DIFFERENT PURPOSES NORMS ON RESETTING OF FLOATING RATE OF INTEREST ON EMI-BASED…
RBI has provided instructions for the reset of the floating interest rate on equated monthly installments (EMI) vide circular bearing reference number DOR.MCS.REC.32/01.01.003/2023-24 dated August 18, 2023. According to these guidelines, Regulated Entities (REs) are permitted to offer various types of loans with either fixed or variable interest rates. However, when granting Equated Monthly Installment…
Updated as per RBI master circular dated April 2, 2024 Regulated entities like Banks and Financial institutions have to take into account RBI guidelines while sanctioning loans to individuals for different purposes. A loan may be granted by the Bank for the purchase of a plot, subject to a declaration obtained from the borrower that…