Why RBI refrained from Rate Cuts The Central bank of India, the RBI refrained from reducing rates since April 2012. The apex bank cited the high risk of inflation which might increase owing to the fact of rising fiscal deficit. RBI re-iterated that rate cuts alone cannot boost growth, unless the government implements economic reforms […]
Cash Reserve Ratio Of late we have been hearing about the ongoing debate in the Indian economy pertaining to CRR. One of the best suggestions recently came from the Chairman of the Prime Minister’s Economic Advisory Council, C. Rangarajan. Mr. Rangarajan suggested on phasing out the cash reserve ratio (CRR) requirements of banks and using […]
Capital Account Convertibility Capital Account Convertibility is nothing but the freedom to convert the local financial assets into foreign financial assets and vice-versa at market determined rates of exchange. It is associated with the changes of ownership in foreign/domestic financial assets and liabilities and embodies the creation and liquidation of claims on, or by the […]