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banking terms

By Victor S. Fischer
  ✍️ CRR Cash Reserve Ratio is the minimum fraction of total deposits of a bank’s customers that banks have to hold as reserves with the central bank. ✍️ SLR Statutory Liquidity Ratio is the ratio of liquid assets to the net demand and time liabilities. ✍️ LAF Liquid Adjustment Facility is a tool to allow banks to borrow money through repurchase agreements. It consists of repo and reverse repo operations. ✍️ MSF Marginal Standing Facility allows scheduled banks to borrow funds overnight from RBI against approved government securities. ✍️ MSS Market Stabilization Scheme is a monetary policy intervention by RBI to withdraw excess liquidity by selling government securities in the economy. ✍️ OMO Open Market Operations refers to the buying and selling of government securities in the open market so as to expand or contract the amount of money in the banking system. ✍️ REPO Repo stands for Repurchase agreement where a seller of a security agrees to buy it back from a buyer at a
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Brief Note on Importance of Industrial Growth in Indian Economy

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The Indian Government understood the importance of industries in India. The industrial policy undertaken on July 1991 by the Congress Government, have been designed to build on the past industrial achievements and to accelerate the process of making Indian industry internationally competitive, with a view to integrate the Indian economy with the world economy.

The Industrial Policy of 1991 put more importance on expansion of the private sector to introduce liberalization. While our original industrial policies were characterized by state interventions and control in the industrial sector, the new industrial policy gave more emphasis on de-licensing and decentralization.

However the role of the public sector in Indian economic development cannot be denied altogether. Public sector has contributed to a great extent in building the infrastructure, employment generation, capital formation, industrialization etc. in India. In spite of the important role played by the public sector enterprises, in recent years there has been a decline in the popularity of the public sector enterprises due to their unsatisfactory performance, such us, low returns on capital, inefficient and corrupted management etc. made public Sector enterprises a growing burden on government exchequer.


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An Indian Festival Durga Puja

By Victor S. Fischer
1. The Durga Puja is an important festival of India. It takes place in the month of Ashwin from the first to tenth day of the bright fortnight. It is an occasion of great enthusiasm and festivity for the Hindus. On this occasion schools, colleges, and offices are closed for a long holiday. People return to their homes for celebrating the Puja. 2. The puja is celebrated for ten days, but the image is installed on the seventh day. During the last three days the Puja is celebrated with great pomp and gaiety. The Images are of different designs and sizes. They are dressed in fine clothes and decked with beautiful ornaments. Goddess Durga has ten arms in which she holds weapons. During the puja the poor are fed, alms are distributed and Prasad is distributed to the people. 3. The vijaya Dashami is considered to be an auspicious day. On this day people visit their relatives. The people of the trading classes begin their new year from this day. At some places Ramlila is staged and Ravan
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banking terms

By Victor S. Fischer
  ✍️ CRR Cash Reserve Ratio is the minimum fraction of total deposits of a bank’s customers that banks have to hold as reserves with the central bank. ✍️ SLR Statutory Liquidity Ratio is the ratio of liquid assets to the net demand and time liabilities. ✍️ LAF Liquid Adjustment Facility is a tool to allow banks to borrow money through repurchase agreements. It consists of repo and reverse repo operations. ✍️ MSF Marginal Standing Facility allows scheduled banks to borrow funds overnight from RBI against approved government securities. ✍️ MSS Market Stabilization Scheme is a monetary policy intervention by RBI to withdraw excess liquidity by selling government securities in the economy. ✍️ OMO Open Market Operations refers to the buying and selling of government securities in the open market so as to expand or contract the amount of money in the banking system. ✍️ REPO Repo stands for Repurchase agreement where a seller of a security agrees to buy it back from a buyer at a
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Inflation: Types, Causes, Effects and Remedies

By Victor S. Fischer
Inflation refers to a situation when there is an overall increase in the prices of goods leading to a general decline in the value o  Types We will discuss the two major types of inflation: 1 . Demand Pull Inflation:   Inflation arises when there is an increase in the supply of money but there is no corresponding increase in the supply of goods useful to the community. Accumulation of more money than before raises the purchasing power of people and stimulates the demand for goods but the supply of the latter being limited, the necessary consequence will be the inflation of the price level. Demand Pull Inflation thus means, in plain words, too much money chasing too few goods. 2. Cost Push Inflation:  When the prices of goods increases because of an increase in the cost of production, it is known as cost push inflation. What causes Inflation? Additional money put in the hands of people naturally creates in them a desire to spend more on goods. The sellers these commodities get more mone
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