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Repo Rate and Reverse Repo Rate are the two most important short term quantitative credit control techniques adopted by the Reserve Bank of India, as the central bank of India. Quantitative credit controls are adopted by RBI
Masala bond represents Rupee denominated borrowings made by Indian entities from overseas markets. Indian hotels and cuisines are famous in many foreign countries and one of the major attractions is the flavor of masala. This made them
MCLR, Marginal Cost of Funds Based Lending Rate System interest regime came into effect on April 1, 2016. This was a refined version of Base Rate system announced by RBI to further enhance the transparency of credit
The interest rate on lending was de-regulated by RBI in October 1994. This was as part of the financial sector reforms initiated in India in 1991. Since 1994, RBI has introduced various benchmarks and guidelines with regard
Transmission of changes in policy interest rate announced by the Reserve Bank of India (RBI) to market and borrowers by reduction in lending interest rate has always been a bone of contention between RBI and Banks since
The proposal to link interest rates of retail loans and loans to SME sector was announced by the Reserve Bank of India (RBI) during the monetary policy in December 2018. The guidelines on this methodology are yet
Fixing interest rate in relation to an external benchmark was proposed by RBI while announcing the monetary policy review held on December 5, 2018. Banks were suggested to adopt this method for new floating rate loans extended
Hypothecation is the most famous method adopted by banks in India for security creation. This method is adopted while extending cash credits for raising working capital and term loans for acquiring movable assets. Hypothecation as a method
Pledge is a popular method adopted in banking to create charge on a security. It is a specific form of bailment. Pledge is defined under the Indian Contract Act as a form of bailment of goods where
Bailment is defined in Section 148 of The Indian Contract Act 1972.As per the definition, bailment is delivery of goods by one person to another for some purpose upon a contract that they shall, when the purpose