Author Archive

Repo Rate (Policy Rate) and Reverse Repo Rate

Repo rate, policy rate, reverse repo rate, monetary policy, interest rate transmission, PLR, MCLR, External bench marking, lending rate, inflation, market rate
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
5 Apr 19 Author CategoryBanking Awareness, Everything About No Comment Read More

Masala Bond –Rupee Denominated Bond

Masala bond, bond, ECB, Rupee denominated, foreign market, stock exchange, Exchange risk, currency fluctuation, IFC, IREDA, HDFC
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
3 Apr 19 Author CategoryBanking News, Everything About No Comment Read More

MCLR -Marginal Cost of Funds Based Lending Rate 

MCLR, Marginal Cost of Funds Based Lending Rate System. Credit interest rate, BR, Base Rate, External Benchmark, performance, conditions, CRR, sunset clause, BPLR, new loans, tenor
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
31 Mar 19 Author CategoryBanking Terms, Banking Terms - Loans, Quick Reference, Regulators & Institutions No Comment Read More

Lending Rates- PLR, BPLR and BR- An Overview

Lending rate, PLR,BPLR, BR, MCLR, External Benchmark, interest rate, credit, Prime Lending Rate, Benchmark PLR, Base Rate, SLR,CRR, Financial Sector reforms, Narasimham committee
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
31 Mar 19 Author CategoryBank Loans- General, Banking Terms, Banking Terms - Loans, Quick Reference, Regulators & Institutions One Comment Read More

Lending Interest Rate and Challenges – RBI Vs Banks

Lending interest rate, external benchmark, interest transmission, RBI, bank, fixed deposit, policy rate, Repo Rate, SB portfolio, Deposit Portfolio, monetary policy, PLR,MCLR, BR, BPLR,
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
29 Mar 19 Author CategoryBank Loans- General, Banking News, Regulators & Institutions No Comment Read More

Interest Rate Linked to External Benchmark – SBI Decision & Its Impacts  

Interest rate, SBI, external benchmark, Repo Rate, Savings Bank account, Overdarft, Cash Credit, Rupees one lakh, decision, impact, Monetary policy, resourse, fixed deposit
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
28 Mar 19 Author CategoryBanking Awareness, Quick Reference No Comment Read More

External Benchmarking of Interest Rates

External benchmark, interest rate, bank loan, MCLR, Retail loans, SME loans, interest transmission, monetary policy, RBI, internally derived rate, base rate, repo rate, . Prime Lending Rate , PLR, Benchmark Prime Lending Rate, BPLR, treasury bill, yield, Financial Benchmarks India Pvt Ltd, FBIL, bargaining power,
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
27 Mar 19 Author CategoryBanking News, Banking Terms - Loans, Everything About No Comment Read More

Hypothecation And Safeguards By Banks 

Hypothecation, security, pledge, charge, bank loan
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
26 Mar 19 Author CategoryBanking Terms - Loans, Everything About, Legal Terms and Matters No Comment Read More

Pledge, Pledgor, Pledgee And Bank Loans

Pledge, pledgor, pledgee, pawnor, pawnee, good, bailment, bank, security, right of redemption, retain, auction, private sale, owner, right, possession, notice
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
25 Mar 19 Author CategoryBanking Terms - Loans, Everything About, Legal Terms and Matters One Comment Read More

Bailment, Bailor And Bailee

Bailment, bailor, bailee, contract, delivery, goods, disposed of, Indian Contract act, pledge, differences
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
25 Mar 19 Author CategoryBanking Terms - Loans, Everything About, Legal Terms and Matters No Comment Read More