REFERENCE Archive

Repo Rate (Policy Rate) and Reverse Repo 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

Masala Bond –Rupee Denominated Bond

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 

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

Lending Rates- PLR, BPLR and BR- An Overview

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

Lending Interest Rate and Challenges – RBI Vs Banks

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

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

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

External Benchmarking of Interest Rates

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 And Safeguards By Banks 

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, Pledgor, Pledgee And Bank Loans

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, Bailor And Bailee

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