Economy

On the occasion of world food day (October 16), three districts in India have initiated India’s ‘Zero Hunger’ programme through interventions in farm sector. Those districts are Gorakhpur in Uttar Pradesh, Koraput in Odisha and Thane in Maharashtra. It will be initiated by the Indian Council of Agricultural Research (ICAR) in association with the Indian … Read more

India has been facing serious issues as far as economy is concerned. The growth rate plummeted   to 4.5%. Unemployment rate is highest in 45 years and at the same time food inflation is also on higher side. So we are going towards stagflation. The major reasons for economic slow down are as follows: Twin balance … Read more

It is an information repositorythat collates all loan information of individuals andcorporate borrowers. A credit repository helps banks distinguish between a bad and a good borrower andaccordingly offer attractive interest rates to good borrowers and higher interest rates to badborrowers. The move is based on the recommendations of a committee, headed by Y.M.Deosthalee.PCR will address … Read more

External commercial borrowing (ECB) is basically a loan availed by an Indian entity from a non-resident lender.  They are used widely in India to facilitate access to foreign money by Indian corporations and PSUs (public sector undertakings).  Most of these loans are provided by foreign commercial banks and other institutions.  In the post reform period, … Read more

Current account:       Current account refers to the account maintained by every government of the world in which every kind of transaction is shown, this account is maintained by the central banking body. Current transactions of an economy in foreign currency all over the world- export, import, interest payments, foreign investments in share.   Capital account:         … Read more

India Cash/GDP ratio is 12.24% which makes it one of the largest cash based economy. But there are certain problem for a cashless economy especially for India as : ‘ There is low penetration of internet. Last mile connectivity especially in rural sector is quite low which creates hurdle in digitisation of economy. Lack of … Read more

The Reserve Bank of India gives temporary loan facilities to the centre and state governments as a banker to government.  This temporary loan facility is called Ways and Means Advances (WMA).The WMA scheme for the Central Government was introduced on April 1, 1997, after putting an end to the four-decade old system of adhoc (temporary) … Read more

It was in the wake of the Liberalisation in 1991 that it cecame imperative for the government to reform the financial sector in order to reinvigorate the economy. GOI set up committee under the guidelines of  Narsimha. Recommendation: It advised the RBI not to use CRR as a principal investment of monetary and credit control … Read more

Investment – For sustaining high growth, the economy need to continuously add to its “production capacity” through new investment flows. • Productive investment is money that is spent for – building roads, ports (and other public infrastructure), factories, and workforce quality enhancement. • Currently, India is seeing a sharp decline in the rate of investments … Read more

·       Pradhan Mantri MUDRA Yojana (PMMY)    Launched: 8April2015 Main Objective: Financial support for growth of micro enterprises sector. Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency) Yojana was launched with the purpose to provide funding to the non-corporate small business sector. Pradhan Mantri Mudra Yojana (PMMY) is open and is available from all Bank branches … Read more