What is multiple indicator approach (MIA)?

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…

Bank customers can now lodge single window on-line complaint to RBI

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…

FX retail: Now Foreign Exchange retail trading platform for retail customers of banks

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…

Asset-backed securities (ABS) and mortgage-backed securities (MBS) explained

Both Asset-backed securities (ABS) and mortgage-backed securities (MBS) are fixed income financial securities collateralized (backed) by a pool of assets such as Auto loans, Education Loans, Housing Loan, credit card debts, and receivables etc. This pool of assets is characteristically a group of small and illiquid assets which are unable to be sold individually. Basically,…