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Don’t be confused- Loan Write off is not a Waiver

loan write off

“Written off does not mean maafi…. It doesn’t mean that the loan ceases to be a loan. We will still chase the loan, the entry in the book changes from being a performing asset to a non-performing asset.”

-Finance Miniter, Shri Arun Jaitley

Write-offs are a very common tool to clean up bank balance sheets around the world. It does not mean Vijay Mallya or anyone else for that matter is off the hook. Earlier this year, China’s top four banks wrote off 130.3 billion yuan (equivalent to 19.5 billion dollars) of bad loans for the first half of the year. It was an increment of 44 percent from the previous year. Moreover, from fiscal 2011 to fiscal 2015, India’s banking industry also wrote off a cumulative Rs 1.76 trillion worth of loans.

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Demonetisation of currency in India: Explained

Demonetisation of currency

The Indian Government has discontinued the use of old Rs 500 and Rs. 1000 notes. In other words, the legal tender character of the notes in these denominations stands withdrawn. This decision became effective from the midnight of 8th November 2016.

Furthermore, the Government will introduce new notes in Rs 500, Rs. 1000 and Rs. 2000 denominations.

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Sukanya Samridhi Yojana Details

Sukanya Samridhi Yojana Details

Sukanya Samridhi Yojana Details

On 22 January 2015, the Prime Minister Narendra Modi launched a special deposit scheme known as the Sukanya Samriddhi Yojana. Under this scheme, the natural or legal guardian of a girl child can open an account in her name and avail certain benefits.

The objective of the scheme is to alleviate the worries of Indian parents about the marriage and education expenses of their daughters.  

The Sukanya Samridhi Yojana is basically a girl child prosperity scheme which was launched as part of the -‘Beti Bachao-Beti Padhao‘ campaign. This is an effort to motivate parents to open an account in the name of a girl child.

This article ‘Sukanya Samridhi Yojana Details’ explains all the relevant features related to this scheme.

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The Pros and Cons of Advancing Budget Date

Advancing budget date

Image credits: http://www.pointblank7.in/

The Cabinet has decided to advance the date of presentation of the Union budget by a month. This article details the pros and cons of Advancing Budget Date

Normally the budget is unveiled on the last day of February. But, this year the Cabinet has given its approval to advance the presentation to the last week of January or the first week of February. The actual date of the presentation hasn’t been decided yet.

The advancement of budget presentation has been done to ensure that the budget is passed by 31st March, that is,  before the beginning of the next financial year.

As of now, the budget is passed in two parts. It is announced on the last day of February, but its provisions become law only when the Parliament passes the Finance bill in May and it is approved by the President. The budget has been advanced so that this entire budgetory exercise gets completed and the Finance bill is passed and becomes law before Ist April.

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What is the Most-Favoured Nation Status?

Most-Favoured Nation

This article explains the Most-favoured nation (MFN) status of the World Trade Organisation (WTO).

The World Trade Organisation (WTO) is the  global international organisation dealing with the rules of trade between two or more countries. The agreements in WTO are lengthy and complex and they cover a wide range of activities (agriculture, textile, banking, communication, food sanitation, intellectual property etc) .

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