Synopsis: The new Insolvency and Bankruptcy Code amendment ordinance 2021 shows a shift from a creditor-centric approach towards a more balanced approach. Under the new approach, both promoters and creditors are incentivized to reach a more acceptable solution. Background: The President has promulgated the Insolvency and Bankruptcy Code (Amendment) Ordinance 2021. It marks a shift from… Continue reading A Balanced Approach Under IBC Amendment Ordinance 2021
Tag: ECO_4
RBI sets up “Regulations Review Authority 2.0”
What is the News? Recently, the Reserve Bank of India(RBI) announced the setting up of a new Regulations Review Authority(RRA 2.0). About Regulations Review Authority(RRA): The RBI earlier set up the first RRA for a period of one year from April 1, 1999. This is for reviewing the regulations, circulars, reporting systems, based on the… Continue reading RBI sets up “Regulations Review Authority 2.0”
What is a “Currency Chest”?
What is the News? A Private Security Guard in Chandigarh has stolen Rs 4 crore from a Currency Chest of Axis Bank. What is a Currency Chest? Firstly, A currency chest is a place where the Reserve Bank of India (RBI) stocks the money meant for banks and ATMs. Secondly, Administered by: The RBI administers… Continue reading What is a “Currency Chest”?
Rupee depreciation and its management
Synopsis: Rupee depreciation and its impact and solutions to protect from currency volatility risks. Contents1 Background of Rupee depreciation2 What are the reasons for rupee depreciation?3 What are the impacts of Rupee depreciation?4 How to eliminate the Rupee depreciation and currency risk? Background of Rupee depreciation Recently, the rupee fell sharply by 105 paise. It… Continue reading Rupee depreciation and its management
New RBI Developmental and Regulatory Policies
What is the News? Recently RBI released a Statement on Developmental and Regulatory Policies. Under the new RBI policy, the RBI extended fresh support of ₹50,000 crores to the All India Financial Institutions for new lending in FY22. This will help to mitigate the impact of the pandemic and aid economic revival. RBI policy on… Continue reading New RBI Developmental and Regulatory Policies
Cut in rate on small saving schemes withdrawn by Finance Minister
Synopsis – The Union government rolls back interest cut on small saving schemes interest rates, blaming the decision on an oversight. Introduction – The finance ministry has reversed its decision to cut interest rates on small savings accounts, citing an error. Reversing a rate cut of up to 110 basis points (1.1 percentage points) announced… Continue reading Cut in rate on small saving schemes withdrawn by Finance Minister
Bad Bank for strengthening the banking sector
Synopsis: Indian banks have started to recover post the pandemic phase. Moreover, the banks will strengthen after the creation of a bad bank as promised in the budget. Contents1 Background:2 Budget Announcements:3 Benefits of Bad Bank:4 Way Ahead: Background: During the pandemic, NPA(Non-Performing Assets) was expected to rise. Thus, Indian banks have written off their… Continue reading Bad Bank for strengthening the banking sector
Effectiveness of Inflation Targeting in India – Explained, Pointwise
Introduction: RBI adopted the Inflation Targeting on the recommendations of the Urjit Patel committee in 2016. Almost 5 years have passed since its adoption. The RBI has also announced a formal review of its inflation targeting method. Hence, there is a requirement for an elaborate review to examine the performance of this method. In this… Continue reading Effectiveness of Inflation Targeting in India – Explained, Pointwise
Why Nationalisation of Banks was a Right Step?
Synopsis: Privatisation of PSBs will not be a solution for India’s banking sector distresses. The Nationalisation of Banks proved to be fruitful at the time of need. But now, it requires reforms and not privatization. Introduction The Union government announced that they want to privatize the Public Sector Banks (PSBs) in the recent budget. The… Continue reading Why Nationalisation of Banks was a Right Step?
Privatization of PSBs – Explained, Pointwise
Contents1 Introduction2 What is the government plan on the Privatization of PSBs?3 Contribution of PSBs so far4 The rationale behind the Privatization of PSBs5 Arguments against the Privatization of PSBs6 Suggestions Introduction The Government has fast-paced the privatization of PSBs(Public Sector Banks). Recently NITI Aayog released its last round of consolidation plans. In that, the… Continue reading Privatization of PSBs – Explained, Pointwise
