What is the news? Reserve Bank of India (RBI) Governor has indicated that the banking regulator will bring in sweeping regulatory changes to reform urban co-operative banks. The Prime Minister, the Union Finance Minister and the Governor were present at an event to mark the payment of nearly ₹1,300 crore to over 1 lakh depositors… Continue reading RBI Governor, PM signal reforms in trouble-prone urban co-operative banks
Tag: money and banking
The good and not so good of new bank ownership norms
News: RBI’s internal working group, set up in June 2020, had made 33 recommendations on the ownership and corporate structure of private sector banks. The RBI has accepted 21 of them, with minor modifications in some cases. The rest, are under examination. What are the key recommendations made by the RBI’s IWG? Entry of corporate… Continue reading The good and not so good of new bank ownership norms
The curious case of India’s rising forex reserves and falling rupee
News: Further expansion of RBI’s balance sheet without normalizing credit offtake (demand for credit) will only raise economic risks. Contents1 How RBI manages its balance sheet?2 How excess liquidity created during the quantitative easing phase is being managed?3 What is the current anomaly?4 What are the implications due to flight of capital? How RBI manages… Continue reading The curious case of India’s rising forex reserves and falling rupee
Explained: Bank deposit insurance programme and norms to access funds
What is the news? The Prime Minister has addressed a programme titled ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to ₹5 Lakh’. What did the PM say on deposit insurance? Recently, Parliament passed the Deposit Insurance and Credit Guarantee Corporation (DICGC) Amendment Act, 2021. Under the Act, each depositor in a bank is insured… Continue reading Explained: Bank deposit insurance programme and norms to access funds
Summit for Democracy: PM moots social media, cryptocurrency norms
What is the news? The Prime Minister of India has virtually addressed the Summit for Democracy. What is the Summit for Democracy? The Summit for Democracy was a virtual summit hosted by the United States to renew democracy at home and confront autocracies abroad. Themes: The three themes of the summit are defending against authoritarianism,… Continue reading Summit for Democracy: PM moots social media, cryptocurrency norms
Despite risks, there’s great potential in cryptocurrencies
News: Reports indicate that the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is to be introduced in this winter session of Parliament. While it is unclear what the Bill will contain, if India goes the China route and bans cryptocurrencies, it would be unfortunate. What is the way forward? – The underlying blockchain… Continue reading Despite risks, there’s great potential in cryptocurrencies
Explainer: Neo Banks vs Traditional Banking
Contents1 What is the News?2 What are Neo Banks?3 What is the difference between Neo Banks and traditional Banks?4 Can Neo Banks replace Traditional Banks?5 What are the challenges that they face? What is the News? Neo-Banks bridge the gap between the services that traditional banks offer and the evolving expectations of customers in the… Continue reading Explainer: Neo Banks vs Traditional Banking
A cautionary tale for banking in Reliance Capital’s collapse
News: Recently, the RBI said that it had superseded the board of a financier controlled by Anil Ambani, appointed an administrator, and would soon be sending the firm to the bankruptcy tribunal. The Reliance Capital saga shows why RBI remains reluctant to allow big business groups into the banking sector, as recommended by its internal… Continue reading A cautionary tale for banking in Reliance Capital’s collapse
On Cryptocurrency regulation – Arguments against regulating Cryptocurrencies are very weak
News: Despite all the arguments being put forward for non-regulation of Cryptocurrency, government should push forward and regulate it. Why Cryptocurrencies need to be regulated? – Self-regulation is not the solution: Once one exchange puts out a misleading advertisement, making false claims of higher returns, rival exchanges are left with no choice but to match… Continue reading On Cryptocurrency regulation – Arguments against regulating Cryptocurrencies are very weak
Rumblings of the coming central bank digital currency
News: A senior RBI official has said that the pilot launch of a new central bank currency could happen as early as the first quarter of next financial year. A lot of the ongoing debate on an Indian CBDC is focused on what RBI should do, and far less attention is paid to the equally… Continue reading Rumblings of the coming central bank digital currency
