Current affairs in banking
(with reference to Reserve Bank of India)
Under the guidance of Prof.
Meaning of bank:
A bank is a financial intermediary and
money creator that creates money by
lending money to a borrower, thereby creating
a corresponding deposit on the bank's balance
sheet. Lending activities can be performed
directly by loaning or indirectly through capital
Meaning of banking:
“Banking " means the business of receiving
money on current or deposit account, paying
and collecting cheques drawn by or paid in
by customers, the making of advances to
customers, and includes such other business
as the Authority may prescribe for the
purposes of this Act; (Banking Act)
Current affairs in Banking (with
ref. to RBI) 2014-15:
Union Government decided to infuse
6990 crore rupees in nine Public Sector
Among the beneficiaries, SBI leads the pack with a
capitalization of 2970crore rupees and is followed by Bob with 1260 rupees, Punjab National Bank with 870crore rupees and
Canara Bank with 570crore rs.
Costs involved in increasing Forex
RBI India's foreign exchange reserves rose to a record high of USD 333.17 billion as on Feb 13, compared with USD 330.21
billion a week earlier, (data from the Reserve Bank of India).
RBI decided to bring back one rupee
The notes printed by the Govt. of India will carry the bilingual signature of Rajiv Mehrishri (finance secretary).
RBI constituted high powered committee
headed by R.Gandhi on urban co-operative
A high powered committee constituted to re-examine and
recommend set of businesses. Size conversion and Licensing
terms for the urban cooperative banking sector.
RBI issued guidelines on import of gold by
nominated banks and agencies :
RBI permitted the nominated the bank to import gold on
consignment basis , whereas all sales of gold is domestically will be against upfront payments.
RBI cut repo rate by 0.25% in sixth bimonthly policy stated 2014-15:
RBI cut its main lending rate (repo rate )by 0.25% with
immediate effect in its sixth bi-monthly monetary policy as
announced on 5th Jan 2015.
RBI extended deadline for withdrawal of pre-2005 currency notes to 30th June 2015:
RBI extended deadline for exchanging pre-2005 of various denominations till 30th June 2005 as compared to 1st Jan 2015.
RBI chief Raghu ram Rajan wants more globalization.
RBI issued final guidelines for banks to act as insurance brokers as on 15th Jan 2015.
Inflation seen rising slightly in January:
The median forecast from survey of 29 economists showed
annual retail inflation running at 5.4 percent last month, faster than December's 5.0 percent but still below the RBI's target of 6 percent by next January and significantly slower than the 7.2 percent it averaged through 2014.
Latest Important Policy Rates in Indian Banking –
9.00% which was
Cash Reserve Ratio (CRR)
Statutory Liquidity Ratio
Meanings of terms used :
Bank rate: Interest rate at which a central
bank will advance short term loans to commercial
banks. Changes in bank rate are reflected in the
prime lending rates offered by commercial banks
(to their best customers), which in turn affect
investments such as bank deposits, bond issues,
Cash reserve ratio (CRR):CRR means Cash
Reserve Ratio. Banks in India are required to hold a
certain proportion of their deposits in the form of
cash. However, actually Banks don’t hold these as
cash with themselves, but deposit such case with
Reserve Bank of India (RBI) / currency chests, which is
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