1. Bankers need skill to perform the daily work. Time now ripe to teach them Knowledge. Future banking is knowledge-driven. 2. Inter-linkages in bank functioning needs to be taught. Officers should be able to understand the entire balance sheet management of the Bank in a holistic manner. 3. Inter-linkages in various functioning of banks should…
RBI’s MONETARY POLICY COMMITTEE : GOVERNOR’S ROLE REDUCED. 1. The Government has notified the formation of ” Monetary Policy Committee” (MPC) under the RBI. This committee will take decision on interest rate or Repo rate in a transparent manner in future. 2. MPC will bring significant changes in the power of the RBI Governor. 3.…
What is Negative Interest Rate?DEFINITION of ‘Negative Interest Rate Policy (NIRP)’ A negative interest rate policy (NIRP) is an unconventional monetary policy tool whereby nominal target interest rates are set with a negative value, below the theoretical lower bound of zero percent.A negative interest rate means the Central Bank and perhaps private banks will charge…
PNB reports Q4 loss of Rs 5,370 crore, biggest in Indian banking history. Next to follow suit is Bank of Baroda, Syndicate Bank, UCO Bank and Central Bank. Many more PSU Banks are incurring losses in Q-4, except Union Bank of India which is the only Bank to post Profit of Rs. 97 Crores. Reasons for…
Talking of NPAs or toxic assets in the context of Indian banks , this should be an interesting read…………The total amount of bad loans in India’s banks is bigger than the GDP of 112 countries.India’s burden of bad loans is truly gigantic.An analyst from India Ratings and Research, a credit ratings agency and a unit…
The National Payments Corp. of India Ltd’s (NPCI) most ambitious project, unified payments interface (UPI) system, will go live on Monday. The payments interface is expected to bring about a significant shift in the way mobile banking transactions are conducted. 1. Reduce need for e-wallets: UPI is set to allow you to make payments using…
The Goals of Monetary PolicyPrimarily price stability, while keeping in mind the objective of growth.In India, subsequent to the recommendations of the Dr. Urjit Patel Committee Report, the Reserve Bank has formally announced a “glide path” for disinflation that sets an objective of below 8 per cent CPI inflation by January 2015 and below 6…
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…
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…