RBI lowers repo rate to 7.25 per cent

Reserve Bank of India (RBI) has reduced the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.5 per cent to 7.25 per cent with immediate effect. It was announced in the second bi-monthly policy ..

Month: Current Affairs - June, 2015

Meena Hemchandra appointed as Executive Director of RBI

Meena Hemchandra was appointed as the Executive Director of Reserve Bank of India (RBI). With this appointment she will be in charge of RBI’s department of banking supervision, non-banking supervision and department of co-operative banking supervision. Prior to this appointment ..

Month: Current Affairs - June, 2015

Payment Banks

About 40%-50% of India’s 1.25 billion population is eligible to open a bank account, but is still unbanked . In the Union Budget 2014-2015, the finance minister Arun Jaitley announced that RBI will create a framework for licensing small banks ..

Non-Operative Financial Holding Company

In February 2013, RBI had issued final guidelines to apply for new banking licenses in the private sector. Under these guidelines, RBI said that the entities or groups in the private sector, entities in public sector and Non-Banking Financial Companies ..

Public Debt Management Agency

Public Debt Management Agency has been proposed to be set up by the Finance Minister in his budget 2015-16 speech. This separation of debt management from monetary policy is being seen as a watershed reform in the financial circles. Debt ..

Trade Receivables Discounting System

Trade Receivables Discounting System or TReDS is a welcome step by RBI to secure finances for micro, small and medium enterprises. It has been set up under the regulatory framework set up by RBI under Payment and Settlement Systems Act ..

RBI signs $400 million currency swap pact with Sri Lanka

The Reserve Bank of India (RBI) has signed a US $400 million currency swap agreement with the Central Bank of Sri Lanka. The currency swap agreement will allow central banks of both nations to make withdrawals of US Dollar or ..

Month: Current Affairs - March, 2015

Money Supply and Monetary Aggregates

All the money held with public, RBI as well as government is called Total Stock of Money. Money Supply is that part of this Total Stock of Money which is with public. By public we refer to the households, firms, ..