Bank Merger

Context The Finance Ministry has asked four large PSU creditors to explore opportunities for acquisition of small and mid-sized banks with a goal to create global sized lenders. Key Features Large public sector banks (PSBs) like Punjab National Bank, Bank of Baroda, Canara Bank and Bank of India could try looking for potential contenders for… Continue reading Bank Merger

All you need to know about the Periodic Labour Force Survey

Context: The Ministry of Statistics and Programme and Implementation has launched Periodic Labour Force Survey in April 2017 which will supersede the earlier system where data was available only every five years.  About the Periodic Labour Force Survey The Periodic Labour Force Survey would generate quarterly reports on the urban labour market situation and an annual… Continue reading All you need to know about the Periodic Labour Force Survey

Insolvency and Bankruptcy code and NPAs

Context Reserve Bank of India said its internal advisory committee (IAC) had identified 12 accounts, which account for 25% of non-performing assets of the Indian banking system for immediate resolution under the Insolvency and Bankruptcy Code (IBC). NPA issues in India The internal advisory committee (IAC) of the Reserve Bank of India (RBI) had recently… Continue reading Insolvency and Bankruptcy code and NPAs

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Categorized as ECONOMY-2

Economy to grow 7.5% in FY18

 A day after India lost the tag of the world’s fastest growing economy to China, with GDP growth slipping to 6.1% in the last quarter of 2016-17, NITI Aayog vice chairman Arvind Panagariya said he expects 7.5% growth in the current financial year and possibly a return to the 8% growth rate. Issues with demonetization… Continue reading Economy to grow 7.5% in FY18

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Categorized as ECONOMY-2

Monetary Policy Committee (MPC) and inflation targeting

What is the Need for Inflation Targeting? Inflation targeting advocates the objective of price stability in actual monetary policy arrangement. Adopting price stability as a primary objective creates a stable non-inflationary environment for resource allocation. Inflation targeting will stabilize price expectations which are an essential requirement to keep in control the volatility of price changes.… Continue reading Monetary Policy Committee (MPC) and inflation targeting

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Categorized as ECONOMY-2

How bad are India’s Bad Loans: NPA Crisis?

Context: The Prime Minister’s Office has called a meeting of senior officials of the ministries of finance and corporate affairs recently to review the progress in resolution of non-performing assets (NPAs) in the light of recent action taken by the Reserve Bank on stressed assets. Background: India’s public sector banks and leading corporate have too… Continue reading How bad are India’s Bad Loans: NPA Crisis?

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Categorized as ECONOMY-2

Demonetization: An Analysis

Why it is in News? Recent trends, especially the fourth quarter (Q4) of financial year (FY) 2016-17 saw a sharp decline in the growth rate and is speculated that demonetization might be the cause.. Why it was done? Prime Minister Modi announced the demonetization of the then existing 500 and 1000 notes and justified the… Continue reading Demonetization: An Analysis

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Economic Survey 2017 Summary By ForumIAS

Economic Survey 2016–17 reviews the developments in the Indian economy over the previous 12 months, summarizes the performance on major development programmes, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term. This document is presented to both houses of Parliament during the Budget Session.… Continue reading Economic Survey 2017 Summary By ForumIAS