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Why in the news? The Reserve Bank of India (RBI) has suggested changes to regulations governing export and import transactions. This move aims to enhance the ease of doing business and enable banks to better serve their foreign exchange customers. Source: ResearchGate Proposed Regulations RBI issued the “Regulation of Foreign Trade under Foreign Exchange Management …
Read MoreWhy in the news? The Reserve Bank of India joined Project Nexus to enable instant cross-border retail payments by interlinking domestic Fast Payments Systems. The initiative aims to connect the FPSs of India, Malaysia, the Philippines, Singapore, and Thailand, enhancing cross-border payments.p source:scribd About Project Nexus: Purpose: Nexus connects multiple national payment systems into a …
Read MoreWhy in the news? RBI raises concerns over alleged unethical practices in asset reconstruction companies (ARCs). ARCs urged to prioritise governance and ethical conduct. Conference organised in Mumbai to address these issues. source:scribd About Asset Reconstruction Company (ARC): Specialised financial institution acquiring and managing distressed assets like NPAs. Banks offload troubled loans to ARCs at …
Read MoreFinancial System The concept of a financial system is integral to understanding how economies operate. It encompasses a broad array of components including instructions, actors, procedures, markets, transactions, claims, and liabilities that interact in complex ways to facilitate the flow of financial resources throughout an economy. The essence of finance itself involves the study of …
Read MoreMeaning of Central Bank A central bank is the primary financial institution of a country responsible for managing the nation’s monetary policy and regulating its banking system. Unlike commercial banks, a central bank has the exclusive authority to expand the nation’s monetary base. Central banks worldwide are tasked with ensuring the stability of the financial …
Read MoreHistory and Evolution of Banking in India Banking in India has evolved significantly over the years, reflecting the country’s broader economic, social, and political transformations. From its nascent stages in the 18th century to its current status as the backbone of the economy, Indian banking has undergone three distinct phases. Each phase has been marked …
Read MoreWhat is money? Money is a medium of exchange, a unit of account, and a store of value. It is a universally accepted means for people to trade goods and services. Historically, money has taken various forms, including coins, paper notes, and digital currencies. In modern economies, money is primarily created and regulated by central …
Read MoreSyllabus: GS-3-Role of monetary authority and related institutions , RBI and its effectiveness Focus : Top of Form The article explores the unique challenges faced by central banks in democracies like India and the US, emphasizing the importance of maintaining their independence amidst political pressures. It examines the implications of political interference on monetary policy …
Read MoreWhy in the news? Climate risks to inflation highlighted by RBI officials amidst extreme weather events and geopolitical tensions. source:worldnews About the Climate Risk and WMO’s Alert: RBI officials, including Deputy Governor Michael D. Patra, warn of inflation risks due to extreme weather events and geopolitical tensions. They highlight the World Meteorological Organization’s (WMO) red …
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