Economy

In nationalised banks, the government owns more than 50% of the shares, which gives it majority voting rights. Because of this, the government can interfere in the boards of such banks and appoint inefficient people to the boards. That is, the appointment of the members might not always be based on merit. This will lead … Read more

The Reserve Bank of India (RBI) appointment a Committee on Comprehensive Financial Services  for Small Businesses and Low-Income Households under the Chairmanship of Shri Nachiket Mor,  member on the Central Board of Directors, RBI in the month of Sep 2013. Its prime object was to frame a clear and detailed vision for financial inclusion and … Read more

  Make in India : This programme was launched on 25th September which aims at making India a global hub for manufacturing, research and innovation and integral part of the global chain. The GoI has identified 10 ‘Champion sectors’ that have potential to become global champion, drive double digit growth in manufacturing and generate significant … Read more

The term refers to the practice of banking like activities performed by non-banking finance companies, which are not subject to strict regulation. However, these institutions function as intermediaries between the investors and the borrowers, providing credit and generating liquidity in the system. Although these entities do not accept traditional demand deposits offered by banks, they … Read more

Shell companies are typically corporate entities which do not have any active business operations or significant assets in their possession.  A shell company may be a legal entity or not. Issues associated with shell companies: There is no clear definition of shell companies. Even under the companies act they are not defined. Out of the … Read more

  Tax avoidance Tax evasion Legal way of saving taxes. Illegal in a financial system Recording of income Not recording of income. Help in saving, at the same time money can be channelized for economic growth Help in saving, but since money is not accounted. Money cannot be channelized for economic growth.   Positive extrenalities … Read more

Reasons for YES Bank crisis: Rising exposure to NPA The loan repayment capacity of the borrower is limited or very low.( IL&F S etc.) Governance issue – Yes bank was not functioning properly. Abysmal performance with lack of corporate governance Bank failed to implement Prompt corrective action Supervision and regulatory failure Steps taken: Moratorium on … Read more

Following are some of the important functional factors responsible for adoption of decentralised planning in the present context in India: Considering the huge size and proportion of rural population in India, it is felt that proper linkages must be established between dispersed small villages and also between such villages and adjacent small towns by developing … Read more

PM-KISAN stands for Pradhan Mantri KisanSamman Nidhi. The scheme announced to provide income support to the marginal and small farmers. To provide an assured income support to the small and marginal farmers, the Government is launching the Pradhan Mantri KisanSamman Nidhi (PM-KISAN).Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be … Read more

Smart cities Cities accommodate nearly 31% of India’s current population and contribute 63% of GDP (Census 2011). Urban areas are expected to house 40% of India’s population and contribute 75% of India’s GDP by 2030. This requires comprehensive development of physical, institutional, social and economic infrastructure. All are important in improving the quality of life … Read more