Economy

Reasons for YES Bank crisis: Rising exposure to NPA The loan repayment capacity of the borrower is limited or very low.( IL&F S etc.) Governance issue – Yes bank was not functioning properly. Abysmal performance with lack of corporate governance Bank failed to implement Prompt corrective action Supervision and regulatory failure Steps taken: Moratorium on … Read more

Reforms required: Strengthen GST council Independent GST council secretariat Inclusion of Petroleum Products, Electricity, Real estate in GST Big data analysis of the data. Tax research unit on Indirect Tax.

Quantitative or General methods are those which are used by the central bank to influence the total volume of credit and money supply in the banking system, without any regard for the use to which is put while qualitative or selective measures are those which are used by the central bank to regulate the flow … Read more

In order to acknowledge and contain the ever-growing problem of groundwater depletion, the Indian Government introduced the Atal Bhujal Yojana (ABY) in December 2019 after getting financial approval by the World Bank in 2018. It has been launched under Jal Jeevan Mission of the government. Atal Bhujal scheme is related to groundwater usage and conservation … Read more

Fiscal deficit refers to the excess of total budget expenditure over total budget receipts excluding borrowings during a fiscal year. Fiscal Deficit = Total Budget Expenditure – Total Receipts excluding borrowings = Revenue Expenditure + Capital Expenditure – Revenue receipts – Capital Receipts of only non-debt type   Implications of high fiscal deficit on economy: … Read more

Merchant discount rate on debit cards is the amount that a merchant has to pay to its service providers when a consumer swipes her card on the merchant’s point of sales terminal. It is also applicable for online transactions and QR based transactions.  The amount that the merchant pays for every transaction gets distributed among … Read more

On May 12 GOI, announced a special economic package of Rs 20 lakh crore (equivalent to 10% of India’s GDP) with the aim of making the country independent against the tough competition in the global supply chain and to help in empowering the poor, labourers, migrants who have been adversely affected by COVID. Collateral free … Read more

The purchasing power of a currency refers to the quantity of the currency needed to purchase a given unit of a good, or common basket of goods and services.  Purchasing power is clearly determined by the relative cost of living and inflation rates in different countries. Purchasing power parity means equalising the purchasing power of … Read more

To sustain the reforms brought in by scheme on ‘End to End Computerization of Targeted Public Distribution System (TPDS) Operations’ the Department of Food & Public Distribution has launched a new scheme namely “Integrated Management of Public Distribution System (IM-PDS)” for implementation during 2018-19 and 2019-20. The main objective of the scheme is to introduce … Read more

According to SEBI, Junk bonds are high yield bonds issued by low rated companies.   Junk bonds are a high-yielding debt instrument without an investment grade (noninvestment-grade bond).  These bonds carry a credit rating of BB and lower, because they have a higher risk of default. Typically, these bonds also give higher returns as opposed to … Read more