Finance and economy

  The Reserve Bank of India (RBI) is the central bank of India and was established on April 1, 1935, under the Reserve Bank of India Act, 1934. It is headquartered in Mumbai and is responsible for the monetary policy of the country, regulation and supervision of the banking sector, management of foreign exchange reserves, and issuance of currency. The RBI formulates and implements monetary policy in the country, which aims to maintain price stability and promote economic growth. It uses various tools such as interest rates, reserve ratios, and open market operations to regulate the money supply in the economy and control inflation. The RBI also regulates and supervises the banking sector in India, including commercial banks, cooperative banks, and other financial institutions. It issues licenses to banks and other financial institutions, sets standards for their operations, and monitors their performance to ensure their safety and soundness. In addition, the RBI manages the country...

Economics and finance are related but distinct fields. Economics is a social science that deals with the production, distribution, and consumption of goods and services, while finance is a field that deals with the management of money and other financial assets. Economics focuses on understanding the behavior of individuals, firms, and markets as a whole, and examines how economic agents make decisions about the allocation of resources. It covers a broad range of topics, including microeconomics, macroeconomics, international economics, and development economics. Finance, on the other hand, is a narrower field that deals specifically with the management of money and other financial assets. It involves making decisions about how to invest money, how to raise capital, and how to manage risk. It covers topics such as financial markets, investment analysis,corporate finance, and financial institutions. While economics provides a broader understanding of the economy and its behavior, financ...

On 11th of July 2022, The Reseve bank of India made a very dynamic anouncement where domestic trader could settle their imports and exports with Indian rupees and this move of taking INR global is much big deal because it is said that to help India to directly trade with Russia without dependence of the American banks. This could push us into new zone of world trade with Russia, Iran and Venezuela. But this move would destroy our relations with both US and Europe. This is no just the major move from the economics point of view but also geo-political point of view. What is the purpose of RBI policy behind this strategy? How this will help up to trade globally? What will be the impact on Rupee? Let's see When Russia invaded Ukrain, the American sanctions removed Russia from SWIFT network and this made impact on trade of India and many more countries. What is SWIFT network and how does it work? Swift network usually involves six different entities.  The Indian bank has account in Amer...

What are NBFCs NBFCs – Non Banking Financial Campanies or Institutions A Non Bnaking Financial Institutions are Financial Instituons that provides banking services but does not have banking license. Some of these institutions are not allowed to take deposits from public. here are some examples of NBFCs in India,  Muthoot Finance LTD Bajaj Finance LTD L&T Finance LTD Tata Capital Unlike banks who offer a packaged deal on a set of financial services, NBFCs offer custamised services to fulfill the needs of clients. They can’t accept deposits repayable on demand. They can’t offer higher interest rates higher than ceiling rate prescribe by RBI. RBI does not guarantee the repayment of deposits by NBFCs. Categories of NBFCs 1.Development Finance Institutions 2.Leasing companies. 3.Investment Companies 4.Housing Finance Companies…and some more. History of NBFCs NBFCs started humbly in India in the 1960s as an alternative for savers and investors whose financial needs were n...