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 »
The technical definition of a recession is when GDP shrinks in two consecutive quarters. Brazil is technically in a recession. The GDP of Brazil contracted by 0.7% in the first quarter (April -June) and 1.9% in the second quarter (April-June) of 2015.
What is Quantitative easing? Quantitative easing is an unconventional monetary policy tool which was used by the Central bank of the USA (Federal reserve) to boost the economy after the financial crisis of 2007-08. (Read more about monetary policy in this article: Monetary policy)
The Government of India had announced two gold-related schemes in its last budget of 2015-16: Gold Monetisation scheme and Sovereign Gold bond scheme. Prime Minister Narendra Modi is going to formally launch the scheme on 6th Nov 2015 before the Hindu festival of Dhanteras when it is considered auspicious to purchase gold.
The Trans-Pacific Partnership (TPP) deal is a free trade agreement (FTA) signed by 12 countries bordering the Pacific ocean. It was finalised on 5th October 2015 after 5 years of intense negotiation. The countries that participated were: The United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
Bank of Baroda, India’s second largest state-owned lender is embroiled in a Rs. 6000 crores foreign exchange (FOREX) scam. Though, the racket was first unearthed at the Ashok Vihar branch of Bank of Baroda, it has turned out to be a much bigger scam involving other branches and banks too.