RBI – Central Banking glossary on risk management
Risk management and capital Management are two sides of the same coin. Both of these indicate that the sufficient capital contribution in the business provides stable resources to help the owner to absorb any losses arising from the risks in a business. The objective of Capital management as well as its risk appetite is to…
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Is registration of a trust statutorily necessary?
Registration of Trust is mandatory in certain cases and not mandatory in some other cases. Let us examine here where the registration of trust is a mandatory requirement. Cases where Registration of Trust is compulsory: The instrument if any, by which the Trust is declared, is called the instrument of Trust or Trust Deed. Section…
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THE OMBUDSMAN SCHEME FOR NBFCs, 2018 explained
The Ombudsman Scheme for NBFCs 2018 was launched by RBI on February 23, 2018, for cost-free expeditious complaint redressal against NBFCs registered with RBI under Section 45-IA of the RBI Act, 1934 and covered all deposit-accepting NBFCs to begin with. Further, on April 26, 2019 Reserve Bank extended the coverage of the Ombudsman Scheme to…
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What are GILTS or Gilt edged securities?
The term ‘Gilt’ is of British origin. The British called ‘Gilt edged securities’ to the bonds and the securities issued by the British Government (through Bank of England) on behalf of His/Her Majesty’s Treasury, whose paper certificates had a gilt edge. The term Gilt edged securities is used in India for the Government securities like…
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Ombudsman Scheme for Digital Transactions (OSDT) explained
The Ombudsman Scheme for Digital Transactions (OSDT) is introduced by RBI, with effect from January 31, 2019, under Section 18 of the Payment and Settlement Systems Act, 2007. The scheme provides a cost-free and expeditious complaint redressal mechanism relating to deficiency in customer services in digital transactions conducted through non-banking ‘System Participant’. The ‘system Participant’…
RBI-Central Banking glossary: Ratios of assets/ capital
CRR (Cash Reserve Ratio): CRR is the minimum percentage of total deposits of customers in a commercial bank held as reserves either in the form of cash or deposit in a specified current account with central bank of the country (RBI in India) as per the mandatory guidelines of central bank of the country. How…
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