Explained: Why interest rates aren’t falling

Headline : Explained: Why interest rates aren’t falling Details : Context for the article: This article explores why, despite significant repo rate cuts by the RBI, the interest rates in the banking system are not falling much. Rate cuts by the RBI: Since February, the Reserve Bank of India (RBI) has aggressively cut the repo rate.Continue reading “Explained: Why interest rates aren’t falling”

Large banks more efficient, scope for more mergers in the sector: RBI study

Headline : Large banks more efficient, scope for more mergers in the sector: RBI study Details : The News According to a recent study “‘Labour Cost Efficiency of Indian Banks”, conducted by RBI, large banks tended to be more efficient than small banks, suggesting more mergers in future.   Bank Mergers: Important reports In 1991, Narasimham (a formerContinue reading “Large banks more efficient, scope for more mergers in the sector: RBI study”

In Brief: Data Localisation, NPCI, Retail Payment and RBI’s Authority

Headline : WhatsApp yet to comply with data localisation norms: RBI Details : The News Recently, the RBI has made the revelations that WhatsApp is not in compliance with RBI’s data localisation norms. This is the first time ever that the Reserve Bank has made any statement about WhatsApp’s payments business and compliance with data localizationContinue reading “In Brief: Data Localisation, NPCI, Retail Payment and RBI’s Authority”

Market Stabilization Bond

MSS bonds bear an interest rate that can boost banks’ income. This incentivizes banks to participate effectively in demonetization drive. MSS as SLR bonds: MSS bonds can also be used to calculate banks’ mandatory bond holding. MSS bonds does not increase Government’s fiscal deficit. According to CRISIL, the stock of G-secs with the RBI, necessaryContinue reading “Market Stabilization Bond”

Monetary Policy Committee

MPC is headed by RBI governor, is a six-member panel, of which three members are from RBI and three are independent members selected by government. The independent members are experts in the field of economics, banking or finance. The governor, however, will not enjoy a veto power to overrule the other panel members, but willContinue reading “Monetary Policy Committee”