Policy Repo Rate remains unchanged : RBI announces 5th Bi-Monthly Statement for 2018-19
December 5, 2018: The Monitory Policy Committee (MPC) of Reserve Bank of India in its fifth Bi-Monthly Statement for 2018-19, announced today(December 5,2018) keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent. Consequently, the reverse repo rate under the LAF remains at 6.25 per cent, and the marginal…
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What is liquidity coverage ratio (LCR)?
The liquidity coverage ratio (LCR) refers to highly liquid assets held by financial institutions to meet short-term obligations. LCR forms on traditional liquidity “coverage ratio” methodologies used internally by banks to assess exposure to contingent liquidity events. The LCR guidelines ensure reduction in funding risk over a 30 days horizon by requiring banks to fund…
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11th BPS/Joint Note (Talks held on November 30, 2018)
11th BPS/Joint Note (Talks held on November 30, 2018) In today’s meeting (30.11.2018), IBA improved their offer to 8%. We(UFBU) replied it is far below our expectation and urged upon them to improve their offer. We also demanded full mandate. These issues will be pursued further. Thereafter UFBU meeting decided to go on strike on…
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Interest Equalisation Scheme for Export Credit
The interest Equalisation Scheme (IES) for pre and post shipment rupee export credit is being implemented by Directorate (DGFT) through commercial banks.The scheme came into effect from 01.04.2015 and is for a period of 5 years.(The scheme was earlier called as ‘interest subvention scheme’ which was existing for the period from August 2010 to 31.03.2015).…
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Salient Features of FEMA- Foreign exchange Management Act
Foreign exchange Management Act (FEMA) 1999 came into effect in India from June 1, 2000 replacing earlier law FERA 1973. FEMA is a regulatory mechanism that enables the Reserve Bank of India to pass regulations and the Central Government to pass rules relating to foreign exchange in tune with the Foreign Trade policy of India.…
What is Sound Management of Operational Risk?
“Sound Management of Operational Risk” is a collection of principles that has been developed over the years by the Basel Committee on Banking Supervision for the purpose of guiding firms in the financial services industry and their regulators to establish sound practices for the management of Operational Risk. These principles cover three main areas: (i)…
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