How to mitigate Counterparty Risks?
The flows of credit from commercial banks are the major and the most noticeable cause of credit risk. Besides loans there is other type of credit risks in banking operations which is called counterparty risk. Loan has default risk; a derivative has counterparty risk. We are discussing here on Counterparty risks. What is the meaning…
Read articleRTGS time window w.e.f September 1, 2015
In view of 2nd and 4th Saturdays of the month declared as public holidays for banks with effect from September 1, 2015, there is a change in RTGS time window. Hereafter, transactions will not take place on 2nd and 4th Saturdays of the month. Further, the process of future value dated transactions under RTGS which…
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How to Compute Marginal Cost of Lending Rate (MCLR)
[The article explains the method of determining Lending rate of a bank under MCLR regime, method of calculating MCLR and the position of existing loans etc. Updated till 01.04.2016)]. The banks in India set their lending rates on loans and advances with reference to ‘Base Rate’ which is computed on the basis of the cost…
Read articleSecond and fourth Saturdays are Public Holidays for Banks from September 2015
All scheduled and non-scheduled banks – public, private, foreign, cooperative, regional rural and local area banks whether or not included in the II Schedule to RBI act 1934 will observe public holiday on second and fourth Saturdays from September 01, 2015. The remaining Saturdays will be called as working Saturdays and will observe full working…
Read articleExtension of time for migration of existing magnetic stripe cards to EMV Chip and PIN based cards
As a security and risk mitigation measure RBI vide its circular dated May 07, 2015 directed that with effect from September 01, 2015 all debit and credit, domestic and international cards issued by the banks shall be EMV Chip and PIN based cards. However in view of various banks expressing difficulties in meeting the above…
Cash withdrawal limit at POS (Point of Sale) doubles for Tier III to VI centres
On a review of withdrawal through POS, it has been decided by RBI to enhance the cash withdrawal at POS from Rs.1000/- to Rs.2000/- per day in Tier III to VI centres with immediate effect. The cash withdrawal limit of Rs.1000/- per day through POS in Tier I & II centres remain unchanged. As per…
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