Category: Banking and Finance
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A Critical Look at India’s Inflation Targeting Framework
India’s Flexible Inflation Targeting (FIT) framework, adopted in 2016, boasts achievements in curbing inflation and anchoring expectations. However, a closer look reveals a picture painted in shades of grey, with challenges and complexities lurking beneath the surface. The framework’s successes are undeniable. Inflation tamed, averaging around 4.5% within the target…
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Foreign Footprints Fading in India
The relationship between India and Foreign Portfolio Investors (FPIs) is experiencing a downturn after a period of enthusiasm. FPIs are now pulling back their investments from India, which is contributing to the depreciation of the rupee and injecting volatility into the markets. There are several factors contributing to this change,…
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The Looming Debt Shadow in 2024
Introduction: Global debt has reached an unprecedented level of over $307 trillion, equivalent to roughly 274% of global GDP, raising concerns about financial stability and economic resilience. The Surge in Debt: The COVID-19 pandemic acted as a catalyst for a global borrowing spree, as governments unleashed massive fiscal stimulus packages…
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Standardization: Unlocking the Potential of Digitization for Seamless Movement of Goods and Services in the Banking Industry”
Standardization is a critical aspect of any digitization process. It serves as a facilitator for the easy movement of goods and services in the digital era. In this article, we will explore the significance of standardization in the context of digitization and its impact on various sectors, particularly the banking…
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The Potential of CBDC and Credit Card Innovations in Cross-border Transactions
Introduction As technology continues to advance, the payment industry constantly strives to enhance convenience and seamlessness for users. Credit cards have long been a popular payment method, and recent innovations have further propelled their capabilities. Additionally, the emergence of Central Bank Digital Currency (CBDC) has the potential to revolutionize cross-border…
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The Reserve Bank of India (RBI) announced its bi-monthly monetary policy statement on December 8, 2023. Here are some of the salient features of the new monetary policy
– The RBI kept the policy repo rate unchanged at 6.50 per cent, the reverse repo rate at 6.25 per cent, and the marginal standing facility (MSF) rate and the bank rate at 6.75 per cent⁴⁵.– The RBI also decided to remain focused on withdrawal of accommodation to ensure that…
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Microfinance and NBFCs: Pioneering Financial Inclusion and Sustainable Development in India
Introduction:In the quest for sustainable development, ensuring financial access to underserved communities becomes crucial. Microfinance institutions (MFIs) and Non-Banking Financial Companies (NBFCs) in India have emerged as key players in promoting sustainability and fostering financial inclusion. By facilitating access to affordable credit, these institutions empower individuals and businesses to adopt…
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Delayed Payments to MSMEs in India
Introduction Micro, Small, and Medium Enterprises (MSMEs) are vital contributors to India’s economy, driving employment generation and economic growth. Unfortunately, delayed payments continue to plague MSMEs, posing significant challenges to their cash flow and operations. This article aims to explore the underlying issues causing delayed payments, discuss the steps taken…
