Synopsis: The tiny Central American nation of El Salvador has embarked on an interesting experiment by recognizing bitcoin as legal tender. This is proving painful for many of its citizens, but it’s a useful “pilot” project for larger economies that are contemplating about this new asset class. Contents1 Introduction2 What has been the impact of El Salvador’s… Continue reading El Salvador’s crypto foray offers a cautionary tale for other countries
Tag: money and banking
PM highlights importance of fintech, warns against covid
Contents1 What is the News?2 What are the issues he has talked about?2.1 On Digital Inclusion Initiatives2.2 On Namami Gange Programme2.3 On Azadi ka Amrit Mahotsav What is the News? The Prime Minister has addressed the 81st edition of his monthly radio programme Mann ki Baat. What are the issues he has talked about? On… Continue reading PM highlights importance of fintech, warns against covid
RBI permits lenders to sell fraud loans to ARCs, paves way for resolution
Contents1 What is the News?2 What is the current procedure?3 What has changed now?4 Significance of this decision What is the News? The Reserve Bank of India(RBI) has permitted lenders to transfer the loans that have been classified as fraud to asset reconstruction companies(ARCs). What is the current procedure? Currently, RBI norms require banks to… Continue reading RBI permits lenders to sell fraud loans to ARCs, paves way for resolution
China says all crypto-related transactions are illegal
What is the News? China has said that all crypto currency transactions in China, including transactions using Bitcoin, will be deemed illegal. China and Cryptocurrency China has been one of the world’s largest crypto-currency markets.This is despite the fact that trading in crypto-currency has officially been banned in China since 2019. However, the recent announcement… Continue reading China says all crypto-related transactions are illegal
An existential crisis for the banking sector?
Synopsis: The business model of banks is under threat. Hence, both banking and market regulators must take a close look at the evolving landscape. Introduction Corporate India has cut its debt burden. They are replacing high-cost debt with cheap money, raised from the market, and sale of assets. Since 2016, RBI has been insisting on… Continue reading An existential crisis for the banking sector?
Bad bank will help clean up balance sheets, but credit culture must change for healthier financial system
Synopsis: Issues and challenges that may impact the performance of the National Asset Reconstruction Company Ltd. Contents1 Introduction2 How the NARCL will function?3 How it will be beneficial?4 What are the issues and challenges involved?5 What is the way forward? Introduction The balance sheets of banks show stressed loans worth Rs 2 lakh crore. To… Continue reading Bad bank will help clean up balance sheets, but credit culture must change for healthier financial system
Government sets up ‘bad bank’ to clear the NPA mess
Contents1 What is the News?2 What is NARCL?3 What is India Debt Resolution Company Ltd (IDRCL)?4 How will the NARCL and IDRCL work? What is the News? Cabinet has cleared a ₹30,600-crore guarantee programme for securities to be issued by the National Asset Reconstruction Company Limited(NARCL) for taking over and resolving non-performing assets(NPAs). What is… Continue reading Government sets up ‘bad bank’ to clear the NPA mess
Union Cabinet clears decks for National Asset Reconstruction Company
What is the News? The Union Government has approved a proposal that requires the government to guarantee Security Receipts(SR) issued by National Asset Reconstruction Company Ltd (NARCL) when buying non-performing assets (NPAs) from banks. This will clear the path for the launch of National Asset Reconstruction Company (NARCL). Note: Security Receipts (SR) are issued by ARCs… Continue reading Union Cabinet clears decks for National Asset Reconstruction Company
There’s a major new risk in town and it’s called crypto
Synopsis: Retail investors are the ones who’ll most likely suffer in the high-yield, high-risk Crypto market. Government should come up with regulations before its too late. Introduction Crypto products are being mass marketed in India without the oversight needed for investor safety. The crypto marketing campaigns have now reached even tier-II and tier-III cities. How… Continue reading There’s a major new risk in town and it’s called crypto
El Salvador’s gamble on Bitcoin: Much too dicey
What is the news? El Salvador became the first country to adopt Bitcoin as legal tender. But the launch was marked by Chivo app (state-backed wallet app) glitches and crash in the Bitcoin price. This shows the volatility associated with Cryptocurrency is real and the adoption of Bitcoin as the official currency can turn out… Continue reading El Salvador’s gamble on Bitcoin: Much too dicey
