The Economic Survey of 2015-16 acknowledges that one of the critical challenges confronting the Indian economy is the Twin Balance Sheet Problem. The balance sheets of both public sector banks (PSBs) and some corporate houses are in terrible shape.
Image Credits: eveningreports.nz Why are we discussing negative interest rates? Because on 29th January 2016, the Bank of Japan introduced negative interest rate policy. It is an unconventional monetary policy tool which can be used to combat deflationary forces in the economy and increase investments and spending.
In the inaugural session of the ‘Start-up India, Stand up India’ campaign, the Government unveiled a slew of incentives to encourage start-ups and catalyse entrepreneurship and innovation in the country. By bringing ‘start-ups’ into the lexicon of government policy-making, it has rightly recognised the potential of entrepreneurship in wealth creation and employment generation.
Pradhan Mantri Fasal Bima Yojana is a new crop insurance scheme that was announced by the Government on 13th January 2016. It will be rolled out from June 2016.
The Reserve Bank of India has made reforms in the way benchmark lending rates of banks are calculated. It has decided to move to Marginal cost-based lending rates (MCLR). It will replace the existing base rate system from April 2016. This post explains the changes made by the RBI. What is base rate? The concept …
Marginal Cost based Lending Rate (MCLR) Explained Read More »
With the budgetary session looming close, ‘fiscal deficit’ is a term you are expected to hear multiple times. So, we decided to write a post to demystify the concept for our readers. The Fiscal deficit is the gap between revenues and expenditure of the Government. Simply put, when Government spends more than it earns, it …
Fiscal Deficit; Revenue Deficit; Primary Deficit; Fiscal Slippage Demystified Read More »
On 30 November, the executive board of IMF voted to add China’s currency Renminbi to the Special Drawing Rights (SDR) basket. It included Renminbi into the “basket of currencies” that make up the value of special drawing rights (SDRs). Currently, there are four currencies in the basket- US dollar, UK pound, European Euro and Japanese …