Money Market

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Rupee Matters

Rupee Matters CONTEXT Over the past few years, there has been a concern over the sharp rise in offshore rupee trading volumes. Facts Data from the Bank of International Settlements pegs daily offshore rupee trading at around $16 billion in 2016, almost equal to onshore trading. Recent data from the Bank of England pegs offshore rupee trades at $23 billion in 2018. Challenges Which forces determine the rupee’s value? What is the ability of the central bank

Call money rates should be close to policy rate , says liquidity panel.

Call money rates should be close to the policy rate, says the liquidity panel. GS-III: Call money rates should be close to the policy rate, says the liquidity panel. News An internal working group formed by the RBI to review the current liquidity management framework has suggested that the framework should be guided by the objective of maintaining the target rate. What is Call Money? The call money market is an essential part of the Indian Money Market, where the day-to-day s

Inclusive growth and issues arising from it.

Inclusive growth and issues arising from it. Syllabus subtopic: Inclusive growth and issues arising from it. News: The Union Cabinet has approved the creation of an Alternative Investment Fund (AIF) of Rs. 25,000 crores to provide last-mile funding for stalled affordable and middle-income housing projects across the country. Prelims focus: About the newly announced fund, AIF- key features. Mains focus: Significance and the need for AIFs.

CCEA okays launch of India’s first debt exchange-traded fund

CCEA okays launch of India’s first debt exchange-traded fund Syllabus subtopic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. News: The Cabinet Committee on Economic Affairs approved the launch of India’s first fixed income Exchange Traded Fund (ETF) comprising AAA-rated debt securities of state-owned companies. Prelims and Mains focus: About ETFs and their advantages, key differences between ETFs and mutual fu

A decent exchange-Barter System in Fiji

A decent exchange-Barter System in Fiji Introduction Karl Marx thought, about a century-and-a-half ago, that society moved from primitive communism, through various forms and structures of inequality, to communism proper. Economic systems moved forward, resolving their contradictions and creating new ones. Turns out he was, at best, only half right. Back to the earlier Economic system amidst COVID-19 Mediums of exchange with fictional value — money, in all its forms and abstra

Sovereign gold bond (SGB)-FAQ

Sovereign gold bond (SGB)-FAQ What is a sovereign gold bond (SGB)? A sovereign gold bond is a substitute for holding physical gold. The bonds are issued by the Reserve Bank of India (RBI) on behalf of the government and are bonds denominated in gold. The government issues such bonds in tranches at a fixed price that investors can buy through banks, post offices and also in the secondary markets through the stock exchange platform. What are the benefits of buying SGB? These bonds are

Electoral Bond Scheme - UPSC Analysis

Electoral Bond Scheme - UPSC Analysis Analysis of Electoral Bond Scheme A recent order by the Central Information Commission (CIC) has again revealed the inherent problems surrounding the Electoral Bond Scheme (scheme) of 2018. This order passed in an appeal against the State Bank of India (SBI) has effectively shut the door to seek any details about donors and donees relating to electoral bonds under the Right to Information (RTI) Act. With no other recourse available, the Suprem

G-SAP 1.0

G-SAP 1.0 RBI in its April 2021 monetary policy continues with the accommodative stance as long as necessary to sustain growth on a durable basis and continue to mitigate the impact of COVID-19. The marginal standing facility (MSF) rate and the bank rate remain unchanged at 4.25% and the reverse repo rate stands unchanged at 3.35%. The rates were left unchanged to boost Public investment in key infrastructure sectors, which is a force multiplier with a historically proven ability to rev