It was in July last year that RBI made it mandatory for all the banks to move to the Base rate regime from BPLR {Benchmark prime lending rate}. So, what exactly is this base rate all about? And why is it so important that RBI made it compulsory for all banks to migrate to the [...]
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KYC stands for “know your customerr” and this is one important policy followed by all the finance institutions in our country especially after the Sep 11th attack on the world trade center. During the pre-world trade center attacks era, the banks never insisted customers to submit their address or identity proofs for opening an account. [...]
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Despite being the home to almost 1.3 billion people, less than 40% of the people in India come under the financial system in one way or the other. For example, if you hold an account with a bank or have borrowed money from a Micro Finance Institution then you will come under the financial system. [...]
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CIBIL stands for Credit Information Bureau (India) Ltd and it was incorporated ten years back with an aim to summarize and share credit reports among its members. The members of CIBIL are mostly banks, non banking financial institutions and credit card companies. The ultimate aim of this CIBIL is to help its members to evaluate [...]
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Most of us are familiar with the term I guess. In short, inflation can be termed as the Rise in price. How is inflation measured? Inflation can be measured using two methods Cost price Index method (CPI) Whole sale price Index method (WPI) In India inflation is measured using WPI method and critics term this [...]
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Accrued interest is defined as the interest amount remaining from the date of last coupon payment or date of issue to the date of settlement. The accrued interest amount on bonds must be included with their purchase amount. What an Accrued interest actually is? An accrued interest may be termed as the interest amount currently [...]
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An Asset Backed Security is a kind of security which is backed up by a bundle of other assets like leases, loans and many others. Mostly, ABS are backed up by credit cards and auto loans. ABS issues are very much similar to that of mortgage backed securities. Basically, an ABS or Asset Backed Security [...]
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Even after 40 years of nationalisation of banks, 60 percentage of India’s population to not have a bank account and 90 percentage of them do not get a bank loan. So to bridge these differences RBI has asked all the domestic commercial banks (both the public and private sector banks) to prepare their own financial [...]
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Hello readers, I have compiled a list of the most frequently used Economic and Banking Terms. This list is updated every now and then whenever I come across a new economic term. If you couldn’t find the term that you are searching for in this list then dont hesitate to contact me [Just select 'Definitions' [...]
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