Much of the economy depends on oil. This is why prices of oil matter to almost every economy. Global crude oil prices are down nearly by 60% this year to $40 per barrel-levels from $110 / barrel at the start of the year. This has caused a crisis in countries like Russia, which depends on…
Experts believe that the transmission will be more in the coming months. “We expect the 10-year yield falls to around 7% by December because RBI may cut 50 to 75 bps before December,” said Sivakumar. And since small savings rates are linked to market rates now, it is also expected to come down further in…
Reserve Bank has issued Master Direction on Interest Rate in Deposits vide its Direction ” RBI/DBR/2015-16/19Master Direction DBR. Dir. No.84/13.03.00/2015-16 ” dated 3rd March 2016. The said directions spell uniform guidelines for payment of interest rates on various deposits as regards its rates. periodicity, premature withdrawals etc on domestic as well as NRE and FCNR(B) deposits. One…
ECS will be replaced with NACH from 01/04/2016. Kindly ensure that all ECS payment to be made through till 31/03/2016.NACH stands for National Automated Clearing House.National Payments Corporation of India (NPCI) has implemented “National Automated Clearing House (NACH)” for Banks, Financial Institutions, Corporates and Government a web based solution to facilitate interbank, high volume, electronic…
Proposal: Increase the rate of surcharge on income exceeding Rs 1 crore to 15 per cent from 12 per cent.Impact: This will raise the maximum marginal rate of tax to 35.54 per cent from 34.61 per cent on the ‘super-rich.Proposal: Increase limit for tax rebate to Rs 5,000 from Rs 2,000 for resident individuals with a total income…
“The RBI has made some amendments to the treatment of certain balance sheet items for the purposes of determining banks’ regulatory capital. The review was carried out with a view to further aligning the definition of regulatory capital with the internationally adopted Basel III capital standards,” it said in a press release on 1st March…
On 25th Feb 2016 RBI has partially modified the Prudential Guidelines on Revitalising Stressed Assets.The excerpts of the Press Release are given below.On a review and based on feedback received from stakeholders, the Reserve Bank of India has partly modified and also clarified, some aspects of its Prudential Guidelines for Revitalising Stressed Assets in the…
Additional Reading Material for Module A and Module D Considering the growing significance of RRBs in pursuit of financial inclusion agenda, RBI decided to revise the priority sector guidelines for RRBs. Accordingly, the comprehensive revised guidelines on Priority Sector Lending – Targets and Classification for Regional Rural Banks were published by RBI. The revised guidelines will…
The Reserve Bank of India has addressed the liquidity issues of commercial banks by easing the regulations on the liquidity coverage ratio. On 11th Feb 2016 it allowed banks to qualify 10% of SLR bonds as Liquidity Coverage Ratio (LCR) from 7% earlier, a requirement mandated under the Basel-III accounting norms from their Statutory Liquidity Ratio…
Depreciation v/s Devaluation: Depreciation and Devaluation are two different economic terms that actually deals with the country’s currency value. Both currency depreciation and currency devaluation end up with a currency that is worth less than it previously was in comparison to the currencies of other countries. Depreciation Depreciation of the currency happens when the country…