[Economy] New Bank Licences: Bandhan, IDFC, Bharatiya Mahila Bank; Differential Bank licences, Bimal Jalan Committee, Narsimhan Committee; arguments favor against, Bank nationalization, Historic evolution of Banking sector in India

Prologue Banking sector in British India Birth of RBI Banking sector Post Independence Narsimhan Committee I (1991) Bank licences: 1st Round (1993) Narsimhan Committee II (1998) New Bank licences 2nd round (2001) New Bank licences 3rd Round (2013-14) Bandhan [...]

By |2015-01-26T19:10:13+05:3017/04/2014|Categories: Economy|Tags: , |151 Comments

[Economy] Urjit Patel Committee: Fixing Accountability in RBI, Monetary Policy Committee, Decision by Majority, Fiscal Deficit (Part 2 of 2)

Prologue #2: @RBI fix accountability in monetary policy making Monetary Policy Committee MPC Decision by Majority MPC: Accountability for #EPICFails MPC: Summary #3: @Government give Cover fire to RBI #: MNREGA: #: MSP #: Fiscal Deficit #: Loan Waiver [...]

By |2015-01-26T19:10:13+05:3006/02/2014|Categories: Economy|Tags: , |46 Comments

[Economy] RBI Urjit Patel Committee: 4% CPI, Nominal Anchor, Multiple Indicator, Monetary Policy Framework Reforms (Part 1 of 2)

Prologue Monetary Policy reform: Where to focus? #1: Focus on Exchange rate #2: Focus on Multiple indicators #3: focus on inflation Nominal anchor (CPI) method: Benefits/Advantages of Nominal anchor (CPI) method: Drawbacks/Limitations/Anti-arguments Why Target inflation? Nominal vs Real interest [...]

By |2015-01-26T19:10:13+05:3002/02/2014|Categories: Economy|Tags: , |126 Comments

[Banking] Monetary Policy: Quantitative & Qualitative Tools, applications & limitations MSF, LAF, Repo, OMO, CRR, SLR, Revisited before upcoming Urjit Article

Prologue What is monetary policy? Quantitative Tools #1: Reserve Ratios (SLR and CRR) #2: Open Market Operation (OMO) #3: Policy Rate Bank Rate Liquidity Adjustment facility (LAF) LAF Repo Rate Marginal Standing facility (MSF) Reverse repo Rate Repo Rate [...]

By |2015-01-26T19:10:13+05:3030/01/2014|Categories: Economy|Tags: |297 Comments

[Banking] Bancassurance: Compulsory Broker Model, IRDA vs Banks, issue, benefits, challanges, insurance penetration, Financial inclusion & Nachiket Committee

Prologue Bancassurance #1: Referral Model #2: Corporate Agent model #3: Broker Model Benefits of Broker model? Anti-Arguments: Broker Model Nachiket on Insurance Cross KYC Reforms in NBFC bancassurance models Allow NBFCs to take deposits NBFCs as mutual funds agents [...]

By |2015-01-26T19:10:13+05:3025/01/2014|Categories: Economy|Tags: , |40 Comments

[Banking] Shadow Banks, Wholesale Banks, Securitization: Functions & Features Nachiket Committee’s recommendations

Prologue Securitization What happened in Sub-prime crisis? Shadow Banking Shadow Banks: Why bad? Shadow Banking in India? Should India be worried? Gold Loan Companies as Shadow Banks? RBI’s safeguards on Gold loan NBFC Wholesale Bank? Wholesale Investment Bank vs [...]

By |2015-01-26T19:10:13+05:3023/01/2014|Categories: Economy|Tags: |47 Comments

[Banking] Nachiket Committee: Remove SLR, Reduce CRR, Raise PSL to 50%, Increase Loan Access: Issues, implications explained

Prologue Accepting Deposits: Why Remove SLR? Why Priority sector lending? What if PSL target not met? Additional safeguards under PSL PSL target raised to 50% Base Rate Agri. interest subvention scheme Debt relief= bad habits PSL: Misc. Issues/recommendations Mock [...]

By |2015-01-26T19:10:13+05:3018/01/2014|Categories: Economy|Tags: |55 Comments

[Banking] Nachiket Committee: Universal Electronic Banking Account (UEBA), Payment Access Points, Financial Inclusion, Seigniorage and More

What is Financial Inclusion? We need financial Inclusion because Financial Inclusion: Steps taken so far Six Visions Statements Vision #1: UEBA Bank account for Adult Vision#2: Access Points for Banking/Payment Services Rural Branching Mandate White label Business Correspondence Agents [...]

By |2015-01-26T19:10:13+05:3015/01/2014|Categories: Economy|Tags: |96 Comments

[Economy] Barter-Money-Bitcoin: Circular Flow of Income, Savings to Investment, Time Value of Money, Deferred Payments (Part 2)

Prologue #5: Difficult to store Value #6: Savings don’t turn into investment What is Circular flow of income? #7: Account-keeping = mission impossible #8: Lack product specialization #9: Future contracts and deferred payments Time value of money Bitcoins and [...]

By |2015-01-26T19:10:13+05:3024/12/2013|Categories: Economy|Tags: , |53 Comments
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