Niche banking are those banks that target a specific market or specific type of project and bridge the needs of banks tailored to the specific needs of certain categories of customers. Why do we need such a banking system? What is the problem with the banking system that is run under the Scheduled commercial banks?…
Financial inclusion has been defined as “the process of ensuring access to financial services, timely and adequate credit for vulnerable groups such as weaker sections and low-income groups at an affordable cost”. – Dr. Rangarajan (Chairman: committee on financial inclusion). Elements of Financial Inclusion Financial inclusion essentially means access to the Banking system. This includes…
Any loan for which the principal or the interest payment remains overdue for more than 90 days is known as a Non performing Assets (NPA) in India. It is a bad loan for which there is very little chance of recovery by a bank. Mounting NPAs has the potential of bringing down the whole banking…
The Reserve Bank of India The Reserve Bank of India was set up by the RBI Act, 1935 and was nationalised on 1st Jan 1949; Its responsibilities are noted in its preamble as follows: “To regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and…
Money and credit form the basis of financial transactions. Credit is an agreement between a ‘borrower’ and a ‘lender’ of money in which a borrower takes a sum from the lender to pay it back at a later time, usually after adding ‘interest’. Terms of Credit: Every credit in the market is governed by the…
In this chapter, we shall study Money and Banking and the monetary flow in the economy. Money is the most vital exchange in any economic activity. We have already seen that economic activity includes all those actions that involve the production, distribution, and consumption of goods and services. The basic assumption about all economic exchanges…
(Source – Indian Express, Section – Explained, Page – 15) Topic: GS2 – Polity Context The Supreme Court invalidated Tamil Nadu Governor R.N. Ravi’s decision to withhold assent to 10 state Bills, declaring it illegal and contrary to constitutional principles. The verdict has major implications for Centre-state relations, especially in opposition-ruled states. Analysis of the…
(Source – The Hindu, International Edition – Page No. – 7) Topic: GS3 – Science and Technology Context Researchers have demonstrated quantum supremacy using a simple colouring game. This offers a more practical and verifiable method than earlier complex approaches. What is Quantum Supremacy? Quantum supremacy means a quantum computer can solve a problem better…
(Source – The Hindu, International Edition – Page No. – 10) Topic: GS3 – Infrastructure Context Active mobility like walking and cycling is vital for sustainable urban transport. Rising accidents and pollution highlight the urgency of adopting people-friendly mobility policies. Rising Accidents in Indian Cities Accidental deaths and injuries of pedestrians, cyclists, and street hawkers…
