Context: India did not wait for other bilateral creditors but did “what is right” for Sri Lanka’s economic recovery, visiting External Affairs Minister S. Jaishankar said on Friday, following talks with Sri Lankan President Ranil Wickremesinghe in Colombo. About the News IMF What is debt restructuring? IMF Financing Assurance What kind of financial assistance does … Read more
Context: The Reserve Bank of India’s 2023 monetary policy objective is to hold inflation within the mandated tolerance band and guide it towards the medium-term target of 4% by 2024, officials said in an article published in the monthly bulletin. Findings of the RBI report What is Inflation Targeting? India’s Inflation Targeting How does inflation … Read more
Context: The Reserve Bank of India (RBI) on released the Discussion Paper (DP) that aimed to comprehensively examine various issues and proposed a framework for the adoption of an expected loss-based approach for provisioning against loan loss by banks in India. About the News What is loan-loss provision? What is the expected loss-based approach? Discussion … Read more
Context: The Surplus available with the Reserve Bank of India for transfer or the RBI dividend to the Union government is likely to remain low in the current financial year ending March 2023 because of higher expenditure incurred by the central bank due to rising interest rates and higher costs in managing surplus liquidity in … Read more
What determines the rupee’s value? The value of any currency is determined by demand for the currency as well as its supply. When the supply of a currency increases, its value drops. On the other hand, when the demand for a currency increases, its value rises. In the wider economy, central banks determine … Read more
Context : The National Asset Reconstruction Company Ltd. (NARCL), set up to take over large bad loans of more than ₹500 crore from banks, will pick up the first set of such non-performing assets (NPAs) in July. What are Bad Banks? A bad bank is a bank that is set up to buy the bad loans … Read more
Context : Indian manufacturers won new orders in May at almost the same pace as in April despite raising prices at the fastest rate in more than eight-and-a-half years amid a sharp jump in input costs, as per the S&P Global India Manufacturing Purchasing Managers’ Index survey. About the News The PMI index stood at … Read more
Context : India’s gross domestic product (GDP) growth slowed to a four-quarter low of 4.1% during the January-March period, from 5.4% in the preceding quarter, as manufacturing output shrank, provisional national income estimates released on Tuesday show. As a result, full-year growth came in at 8.7% — a tad lower than the 8.9% pace projected … Read more
Context : The Centre paid the entire amount of Goods and Services Tax (GST) compensation due to States up to May 31 by releasing an amount of ₹86,912 crore. What is GST ? The Goods and Services Tax (GST) is a uniform indirect tax levied on goods and services across the country. GST, as an … Read more