What is the meaning of currency Basket?
Basket of currencies or currency basket means a currency in the basket (group) can be freely convertible to another currency of the basket without the special approval from the Central Bank of that country. The resulting exchange rate can be fixed or variable according to the demand for that currency in the international market.Majority of…
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How soiled notes/ Mutilated Notes exchanged in banks?
You may be holding a few currency notes which have become dirty due to normal wear and tear or two piece note pasted together wherein both the pieces presented belong to the same note and form the entire note with no essential feature missing. These notes are called as ‘soiled notes’ as per RBI definition.…
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Amendments to Reserve Bank of India (Note Refund) Rules, 2009
The Central Government has made amendments to the Reserve Bank of India (Note Refund) Rules, 2009. The amended rules called “the Reserve Bank of India (Note Refund) Amendment Rules, 2018” are effective from Gazette notification date September 6, 2018. The amendment to rules would help the public to exchange mutilated notes in Mahatma Gandhi (New)…
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What is Selective Credit Control?
Selective credit control means control over bank finance against the security of sensitive commodities. In exercise of powers conferred by Section 21 & 35A of the Banking Regulation Act, 1949, the Reserve Bank of India issues directives to commercial banks from time to time, stipulating specific restrictions on bank advances against specified sensitive commodities. The…
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Banks cannot decline to accept the coins minted by the Government
In a rejoinder to widely spread Social media rumours about RBI’s declaration of ₹ 10 coins as invalid, the central bank vide its press release no.RBI/2016-2017/1257 dated Nov 20, 2016, advised members of the public not to give credence to such ill-informed notions as well as ignore them and continue to accept these coins as…
Do you know that Repo auction framework is different from Repo rate?
Repo rate is the rate at which the RBI lends shotterm money to the banks against the security of all SLR-eligible transferable Government of India- dated Securities, Treasury Bills and State Development Loans (SDL). The repo auction framework is a new regime for liquidity management to keep overnight rates close to the repo rate. Under…
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