Payments banks are a new model of banks conceptualized by the Reserve Bank of India (RBI) designed to promote financial inclusion. These banks operate with certain restrictions, notably the inability to issue credit or loans. They focus on accepting deposits and offering basic financial services. Bharti Airtel launched India’s first payments bank named Airtel Payments Bank in January … Read more
Local Area Banks (LABs) are non-scheduled banks established with the aim of promoting rural and semi-urban savings and providing credit for viable economic activities in local areas. Here are the key features and regulations pertaining to LABs: Objectives: Establishment: Capital Requirements: Operational Scope: Regulatory Framework: Borrowing Restrictions: LABs play a crucial role in enhancing financial … Read more
Cooperative banks are financial institutions that operate on the principle of cooperation and are owned and controlled by their members. Cooperative banks are financial institutions that operate on cooperative principles, primarily serving the needs of their members. They are an integral part of the Indian banking system, particularly in rural areas, and cater to small … Read more
There are 43 regional rural banks in India. State Bank name Established Headquarters Sponsor bank Andhra Pradesh Andhra Pradesh Grameena Vikas Bank 2006 Warangal, Telangana State Bank of India Andhra Pragathi Grameena Bank 2006 Kadapa, Andhra Pradesh Canara Bank Chaitanya Godavari Gramin Bank 2006 Guntur, Andhra Pradesh Union Bank of India Saptagiri Gramin Bank 2006 Chittoor, Andhra Pradesh Indian … Read more
Regional Rural Banks (RRBs) are government-owned scheduled commercial banks operating at the regional level in different states of India. These banks fall under the ownership of the Ministry of Finance, Government of India, the sponsored bank, and the concerned state government, with ownership shares in the ratio of 50:35:15, respectively. RRBs were established to serve … Read more
Public Sector Banks (PSBs) There are 12 public sector banks in India. Bank Established Bank of Baroda 1908 Bank of India 1906 Bank of Maharashtra 1935 Canara Bank 1906 Central Bank of India 1911 Indian Bank 1907 Indian Overseas Bank 1937 Punjab and Sind Bank 1908 Punjab National Bank 1894 State Bank of India 1955 … Read more
An inflation hedge is an investment designed to protect the investor against a decrease in the purchasing power of money due to inflation. There is no investment known to be a successful hedge in all inflationary environments, just as there is no asset class guaranteed to increase in value during non-inflationary times. Impact of Inflation … Read more
Inflationism is a heterodox economic, fiscal, or monetary policy that predicts that a substantial level of inflation is harmless, desirable, or even advantageous. Economists who advocate for an inflationist policy are known as inflationists. In short, Inflationism is an economic theory that goes against the mainstream view on inflation. Core Beliefs: Mainstream Economics Perspective Mainstream … Read more
Economists distinguish between two key inflation measures: headline inflation and core inflation. Understanding both headline and core inflation provides a more nuanced view of inflationary pressures in an economy. Each measure serves a different purpose for policymakers and analysts. Headline Inflation: This is the most widely reported measure, capturing the overall change in the price … Read more