A bankruptcy remote entity is a special-purpose vehicle (“SPV”) that is formed to hold a defined group of assets and to protect them from being administered as property of a bankruptcy estate. The corporate documents of bankruptcy remote like memorandum association and article association may also attempt to create disablements to a bankruptcy filing. For…
In simple words the bank capital is the difference between a bank’s assets and liabilities. However, Banking regulators all over the word have their own definition of regulatory capital of banks in closer alignment with Basel Framework. The core banking regulatory framework across the banking sector consists of international standards enacted by the Basel Committee…
Monetary aggregates are broad categories of money that measure the money supply such as cash and demand deposits or bank credits which have an impact on the aggregate economic activity. Appraising monetary aggregates can generate a lot of information about the financial stability and overall health of a country. For example, if large amount of…
In banking and finance parlance, liquidity refers to the ability to convert one asset into another or to use assets to meet obligations. Liquidity indicates the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset’s price. Market liquidity refers to stock market where the…
Currency chests are branches of selected banks where bank notes and rupee coins are stored on behalf of the Reserve Bank of India for further distribution of these notes and coins across the country through bank branches in their area of operation. The RBI has set up over 4,075 currency chests all over the country.…
Reserve Bank of India (RBI) has today (Feb 7)announced its sixth Bi-Monthly Monetary Policy Rates for 2018-19 in Mumbai. The Monitory Policy Committee (MPC) of Reserve Bank of India On the basis of an assessment of the current and evolving macroeconomic situation at its meeting decided to reduce the policy repo rate under the liquidity…
The difference between fraud and cheating lies in their variety. Cheating is described under Section 415 of IPC. Section 415 states that “Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property to any person, or to consent that any person shall retain any property, or intentionally induces…
Both sale and agreement to sell can be easily explained with the following example. Let us visualize that you have decided to buy a house property. After identifying a property which suits your requirements, you have to consider two important aspects before entering into the sale agreement with the vendor. The first job is to ascertain…
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…