The statutory Report on Trend and Progress of Banking in India 2015-16 (RTP) has been released on December 29, 2016 by Reserve Bank of India (RBI). RTP presents performance and salient policy measures relating to the banking sector during the financial year 2015-16. RTP states that RBI, in pursuance of the long-term vision of developing a sound, competitive, inclusive and customer-friendly banki...
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Category: Banking
Exchange Rate Appreciation Boosts Domestic Economic Activity as Against the Belief of Exporters
A new research, by Jonathan Kearns and Nikhil Patel, economists of the Bank for International Settlements (BIS), concludes that a cheaper currency does not always boost economic growth. The research is based on a sample of twenty two emerging markets besides almost the same number of advanced economies to gauge the effect of changes in the ...
Credit Enhancement to Reduce Cost of Financing Infrastructure by Improving Credit Profiles
India Infrastructure Finance Company Ltd (IIFCL) is working on modalities for a Rs.10000 crore dedicated fund to provide credit enhancement for commercially viable infrastructure projects. This fund will give a boost to massive investment required for India’s infrastructure. This fund, through unconditional and irrevocable partial credit guarantee, will help enhance the credit ...
Mitigating Cyber Security Risks a Major Challenge in Digital Payments
If the benefits of digital payments are exponential, so are the risks. Online banking users are targeted by skimmers, phishing, ransomware and info-stealing trojans, eScan. Increase in use of mobile and unified payment options in consequence of demonetisation has thrown new opportunities for cyber criminals to exploit the unsuspecting and illiterate masses. As customers increasingl...
RBI Allows Banks to Raise Masala Bonds to Augment Their Capital
Reserve Bank of India, as part of a broader plan to develop the corporate bond markets, has allowed banks to raise rupee denominated bonds in the overseas markets to mobilise additional Tier I capital and Tier 2 capital. Banks can also issue such bonds for financing infrastructure and affordable housing. Such bonds, also known as Masala Bonds, allow entities to raise funds overseas...
BSE & NSE International Exchanges Start Operations at GIFT City
Gujarat International Finance Tec-City (GIFT), a global financial hub, has recently opened for business as India's International Financial Service Centre (IFSC). IFSC essentially caters to customers outside the jurisdiction of the host domestic economy, dealing with flows of financial products and services to and from the host economy with foreign entities. Gift City is emerging as...
Bitcoin Gain Currency with Demonetisation of High Denomination Notes
Bitcoin the cryptocurrency has reportedly hit highest levels, trading at a two-year high of $788.49 or Rs. 53,210 per bitcoin, the price had surged above Rs. 68,000 a unit after India sparked a cash crunch as a consequences of Prime Minister Narendra Modi’s major assault on black (untaxed) money, fake currency and corruption with sudden announcement of d...
New Development Bank will reduce costs & share knowledge
New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is one area where the BRICS nations have moved quickly and successfully. NDB is a multilateral development bank established by the BRICS, an association of five leading developing economies of Brazil, Russia, India, China and South Afri...
Monetary Policy Committee to Maintain Price Stability with Growth
Monetary Policy Committee (MPC) has been set up, consequent to the the Monetary Policy Framework Agreement signed on 20 February 2015 between Government of India and Reserve Bank of India (RBI), the country’s Central Bank, to task RBI with the responsibility for price stability and inflation targeting. This MPC replaces the system where the RBI governor, with the aid and advice of his internal team and a technic...
Pradhan Mantri Jan-Dhan Yojana (PMJDY)
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings and Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner. The objective of the scheme is to provide universal access to banking facilities with at least one basic banking account for every household.