The document discusses the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements for banks in India. It defines CRR as the minimum proportion of demand and time liabilities that scheduled commercial banks must maintain as reserves with the Reserve Bank of India. Similarly, SLR is the minimum level of liquid assets like cash, gold, and government securities that banks must hold as a percentage of their net demand and time liabilities. The document outlines the calculation processes for CRR and SLR, categories included and exempted from the ratios, and how the ratios provide RBI tools to control liquidity in the banking system. It also reviews how CRR and SLR have changed over time and perspectives
Just sharing my efforts makes me feel happy and self-satisfied. Feel free to use my works as your project work at school.
Contact me at @ashmitg132@gmail.com
Just sharing my efforts makes me feel happy and self-satisfied. Feel free to use my works as your project work at school.
Contact me at @ashmitg132@gmail.com
What is RBI, Structure of RBI, Function of RBI(Traditional/Promotional/Supervisory), Economic Policies, Monetary Policies, CRR, SLR, RRR, LAF, MSF, OMOS
Call Money
Notice Money
Definition of Call Money
Definition of Notice Money
FEATURES OF CALL MONEY
CALL MONEY MARKET
REASONS FOR EXISTENCE OF CALL MONEY
IMPACT OF CALL MONEY
In India, there is a total of 10,190 operating non- banking financial companies as at September end 2018. Out of this 10,190, more than 95 per cent (10,082) are non- deposit taking NBFCs.
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
What is RBI, Structure of RBI, Function of RBI(Traditional/Promotional/Supervisory), Economic Policies, Monetary Policies, CRR, SLR, RRR, LAF, MSF, OMOS
Call Money
Notice Money
Definition of Call Money
Definition of Notice Money
FEATURES OF CALL MONEY
CALL MONEY MARKET
REASONS FOR EXISTENCE OF CALL MONEY
IMPACT OF CALL MONEY
In India, there is a total of 10,190 operating non- banking financial companies as at September end 2018. Out of this 10,190, more than 95 per cent (10,082) are non- deposit taking NBFCs.
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
OBJECTIVE
In these times of economic and financial distress owing to COVID-19 pandemic, we would like to stress upon the central bank's relentless efforts to revive the Indian economy. The sizeable rate cut and few other regulatory policies will ease the functioning of the banking system and make sure there is enough liquidity in the economy to promote growth.
In this webinar, we shall analyse the array of financial weapons brought into play by RBI through its Development and Regulatory Policy, and the impact they would have on the economy when they are put to use.
NPAs and their management in banks in IndiaJyoti Sharma
NPAs are a growing concern in banks. This ppt deals with concept of NPAs, RBI's prudential guidelines regarding income recognition, asset classification and provisioning, tools for NPA management available with banks
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
2. CASH RESERVE RATIO(CRR)
Scheduled commercial Banks(SCBs) in India are
required to hold a certain proportion of their
Demand & Time Liabilities(DTL) with RBI as per
Section 42 (1) of the Reserve Bank of India Act,
1934
This minimum ratio is stipulated by the RBI and is
known as the CRR or Cash Reserve Ratio.
Is a tool used by RBI to control liquidity in the
banking system.
3. DEMAND LIABILITIES
Demand Liabilities include all liabilities which are payable
on demand:
current deposits,
demand liabilities portion of savings bank deposits,
margins held against letters of credit/guarantees,
balances in overdue fixed deposits,
cash certificates and cumulative/recurring deposits,
outstanding Telegraphic Transfers (TTs),
Mail Transfer (MTs),
Demand Drafts (DDs),
unclaimed deposits,
credit balances in the Cash Credit account and
deposits held as security for advances which are payable
on demand.
4. TIME LIABILITIES
Time Liabilities are those which are payable
otherwise than on demand:
Fixed Deposits,
Cash Certificates,
Cumulative And Recurring Deposits,
Time Liabilities Portion Of Savings Bank Deposits,
Staff Security Deposits,
Margin Held Against Letters Of Credit,
Gold Deposits.
5. LIABILITIES NOT TO BE INCLUDED FOR DTL
COMPUTATION
Paid up capital, reserves, any credit balance in the Profit & Loss Account of
the bank, amount of any loan taken from the RBI and the amount of
refinance taken from Exim Bank, NHB, NABARD, SIDBI;
Net income tax provision;
Amount received from
DICGC towards claims and held by banks pending adjustments thereof;
ECGC by invoking the guarantee;
insurance company on ad-hoc settlement of claims pending judgment of
the Court
Net unrealized gain/loss arising from derivatives transaction under trading
portfolio;
Income flows received in advance such as annual fees and other charges
which are not refundable.
Bill rediscounted by a bank with eligible financial institutions as approved by
RBI
6. EXEMPTED CATEGORIES
SCBs are exempted from maintaining CRR on the following
liabilities:
Demand and Time Liabilities in respect of their Offshore
Banking Units (OBU);and
Inter-bank term deposits/term borrowing liabilities of original
maturities of 15 days and above and up to one year in
"Liabilities to the Banking System”
Similarly banks should exclude their inter-bank assets of term
deposits and term lending of original maturity of 15 days and
above and up to one year in "Assets with the Banking System"
Interest accrued on these deposits is also exempted from
reserve requirements.
7. PROCEDURE FOR COMPUTATION OF CRR
In order to improve cash management by banks, as
a measure of simplification, a lag of one fortnight in
the maintenance of stipulated CRR by banks has
been introduced with effect from the fortnight
beginning November 06, 1999.
8. POWERFUL MONETARY TOOL
RBI uses CRR to:
Drain excess liquidity or
Release funds needed for the growth of the
economy from time to time.
Higher the ratio (i.e. CRR), the lower is the amount
that banks will be able to use for lending and
investment.
This power of RBI to reduce the lendable amount by
increasing the CRR, makes it an instrument in the
hands of a central bank through which it can control
the amount that banks lend.
Thus, it is a tool used by RBI to control liquidity in the
banking system.
9. CRR OVER THE YEARS
0
2
4
6
8
10
12
14
16
5-Jul-35
6-May-60
16-Sep-62
8-Sep-73
1-Jul-74
28-Dec-74
13-Nov-76
1-Jul-78
31-Jul-81
27-Nov-81
29-Jan-82
11-Jun-82
29-Jul-83
12-Nov-83
27-Oct-84
26-Oct-85
28-Feb-87
24-Oct-87
2-Jul-88
1-Jul-89
11-Jan-92
8-Oct-92
15-May-93
9-Jul-94
11-Nov-95
27-Apr-96
6-Jul-96
9-Nov-96
18-Jan-97
22-Nov-97
17-Jan-98
11-Apr-98
13-Mar-99
6-Nov-99
8-Apr-00
29-Jul-00
24-Feb-01
19-May-01
29-Dec-01
16-Nov-02
18-Sep-04
22-Jun-06
6-Jan-07
3-Mar-07
28-Apr-07
10-Nov-07
10-May-08
5-Jul-08
30-Aug-08
11-Oct-08
8-Nov-08
13-Feb-10
24-Apr-10
9-Mar-12
Rate
Rate
Current Status:4.75% (wef 10th March 2012)
decreased from 5.5%, injected around Rs.48,000 cr.of primary liquidity into
the banking system.
10. INTEREST RATES, INFLATION & CRR
Increase in
CRR
Banks
have less
money
for
lending
to maintain
profit
margin
banks
increase
lending
rates
customers
borrow less
and
eventually
spend less
Demand
for goods
and
services
thus comes
down
Thus, Increase in CRR increases interest rates and
pulls down inflation to some extent
11. LATEST NEWS ON CRR
Finance ministry wants RBI to pay 7%
interest on CRR deposits
the central bank had stopped paying interest to
banks on CRR in 2007
SBI chairman Pratip Chaudhuri for abolition
of cash reserve ratio
costing the banking system about Rs 21,000
crore.
Why is CRR not applied to insurance and other
companies who are mobilising deposits from the
public?
Assocham for continuation of cash reserve ratio
12. GLOBAL SCENARIO
In the US, the reserve requirement is in respect of
transaction (current) accounts & is at about 10%
There is no reserve requirement for time deposits.
In the UK, it is voluntary. Even so, banks do keep
reserves to have enough liquidity to prevent any sudden
increase in cash outflow which can result in a run on the
bank.
On average it is about 3%
In the euro zone, the reserve requirements are at 1%
Generally, central banks in the U.S. and EU do not
change the reserve requirements
liquidity is regulated through open market operations.
13. STATUTORY LIQUIDITY RATIO(SLR)
Every Scheduled commercial bank(SCB) in India is
required to maintain a minimum proportion of their
Net Demand and Time Liabilities as liquid assets in:
cash, or
in gold valued at a price not exceeding the current
market price, or
in unencumbered investment in the following
instruments: Treasury Bills of the Government of India;
State Development Loans (SDLs); any other instrument
as may be notified by the Reserve Bank of India
Maximum limit of SLR is 40%
14. STATUTORY LIQUIDITY RATIO(SLR)
Procedure for Computation of Statutory Liquidity Ratio (SLR)
broadly similar to the procedure followed for CRR purpose.
include inter-bank term deposits / term borrowing liabilities of all
maturities in 'Liabilities to the Banking System'.
include their inter-bank assets of term deposits and term lending
of all maturities in 'Assets with the Banking System' for
computation of NDTL for SLR purpose.
Penalties
If a banking company fails to maintain the required amount of
SLR, liable to pay to RBI the penal interest for that day @3 %pa
above the Bank Rate on the shortfall and if the default continues
on the next succeeding working day, the penal interest may be
increased to 5%pa above the Bank Rate for the concerned days
of default on the shortfall.
15. SLR OVER THE YEARS
0
5
10
15
20
25
30
35
40
45
Rate
Rate
Current rate:23% wef 11-08-12, decreased from 24%, injected
around Rs.60,000 cr.of primary liquidity into the banking
system.
16. SHOULD THE RBI DECREASE SLR?
For Against
• Will Improve Credit Flow To Private Cos • Will Adversely Impact Fiscal Deficit
• Focus Should Be To Boost Participation Of The
Private Sector By Providing Ready Access To
Debt Finance Instead Of Redistributing Liquidity
Artificially In Favour Of The Government Sector
• Indian Banks Have Been Able To Withstand The
Global Storm Due To These Prudent Polices Of
The Reserve Bank Of India
• Solvency Measures Prevalent In Most Other
Emerging Markets Continue To Be Lower Than
That In India.
• Risk Mitigation Tool
• Compliance With SLR Targets Compels Banks
To Invest In Government Bonds, Rather Than
Allowing Demand And Prices Of Such Securities
To Be Determined By Market Forces.
• Banks Accept Public Deposits And Are In A Way
Repositories Of Public Trust, And The Confidence
Reposed By Investors In Institutions Is Very
Important From The Financial Markets
Perspective
• Higher SLR Increases Market Risk For Banks
Due To The Sheer Size Of Holdings Of Price-
sensitive Securities
• In The Current Context, Worldwide Banks Are
Being Criticised For Having Risky Asset
Portfolios, There Is A Perceptible Shift Among
Banks’ Asset Portfolios From Credit And Other
Derivative Instruments To Holdings Of Sovereign
Government Bonds.