The Reserve Bank Friday (June 28, 2019) relaxed the leverage ratio (LR) for banks from the quarter commencing October 1, 2019. The RBI communiqué said that the decision to relax the leverage ratio for banks is to help them boost their lending capacity. As per RBI notification the leverage ratio stands reduced to 4 per…
RBI fixed base rate of 9.18 for Non-Banking finance Companies and Microfinance Institutions effective from July 1st 2019. So the borrowers of these institutions will be charged not less than the above base rate for the quarter beginning from July 1. The Reserve Bank of India in a circular during 2014 had communicated to NBFCs…
Monetary policy talks about achieving the ultimate objective of economic policy of the country. It discusses to the use of monetary instruments under the control of the central bank to regulate levels such as interest rates, money supply and availability of credit with a view to achieving the objectivity. The Monetary Policy Framework intends to…
Monetary policy decisions by central banks can have far-reaching implications for the economy, investors, small depositors and borrowers. Till the formation of MPC, RBI used to take monetary policy decision on Repo interest rates based on multiple indicator approach. The Governor of RBI being the focal point was subjected to hectic lobbying ahead of each…
In January 2014, the expert committee headed by Dr. Urjit Patel recommended revising the monetary policy framework, and it came up with its report. In the report it was suggested that RBI must abandon the existing ‘multiple indicator approach’ and make inflation targeting the primary objective of its monetary policy. As per the recommendation, the…
Monetary policy decisions by central banks can have far-reaching implications for the economy, investors, savers and borrowers. Between1980 to 1998, RBI adopted operating method of monetary policy ‘monetary targeting with feedbacks’. This method has been later altered pursuant to liberalization of financial markets and opening up of the economy and short-term deviation in the relationship…
RBI today (June 24, 2019) launched the “Complaint Management System (CMS)” to facilitate grievance redressal process. CMS portal is a software application through which public can access at RBI website to lodge their online complaints against any of the entities regulated by RBI with public interface such as commercial banks, Urban Co-operative banks, Non-Banking Financial…
The word ‘money’ or cash is usually used by common man for currency notes and coins. Apart from above said portable money (cash), we also use cheques demand drafts, debit cards and credit cards as money equivalents. In a broader interpretation, money means not only notes and coins in circulation; it includes other monetary assets…
The Reserve Bank of India, on Thursday (June 20, 2019), communicated that the electronic trading platform for buying/selling foreign exchange (FX-Retail) by retail customers (individuals, MSMEs) of banks is ready for rollout. The FX-Retail platform can be accessed by retail customers of a bank (through the websitehttps://www.fxretail.co.in), who has a need to purchase or sell…
We often receive questions about tax liability of a person in case of any income that accrues or is paid to a minor. Whether it is the minor’s own tax liability or the income of the minor should be clubbed with his father’s income or his mother’s income or the income should be divided into…