The article from The Hindu BusinessLine, published on June 6, 2025, titled "Bank deposit rate cut to boost MF inflows," discusses how a recent reduction in bank deposit rates is expected to drive increased investments into mutual funds (MFs), particularly equity schemes, due to investors seeking higher returns amid market volatility.
The article highlights a growing investor preference for MFs, particularly through SIPs, as a response to declining FD rates and a favorable equity market outlook, despite concerns over high valuations.
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May 30 HOW MUCH IS RBI'S BALANCE SHEET? In its Annual Report for FY2024–25, the Reserve Bank of India (RBI) announced an 8.2% year-on-year expansion of its balance sheet, reaching ₹76.25 lakh crore as of March 31, 2025, up from ₹70.47 lakh crore the previous year. Key Highlights Asset Growth Drivers: The increase on the assets side was led by a rise in gold holdings (up 52.09%), domestic investments (up 14.32%), and foreign investments (up 1.70%). Income and Expenditure:...
May 27 SUMMARY The Sovereign Gold Bond (SGB) 2017–18 Series VI, issued on November 6, 2017, has delivered an impressive return of over 220% upon premature redemption after 7.5 years. The Reserve Bank of India (RBI) has set the redemption price at ₹9,453 per gram for May 6, 2025, reflecting a significant appreciation from the initial issue price. KEY HIGHLIGHTS Issue Details: Launched on November 6, 2017, the SGB 2017–18 Series VI had an initial issue price of ₹2,781 per...
April 24 The Reserve Bank of India at times uses terms like withdrawal of accommodation, neutral, hawkish and others. What does this all mean? RBI’s ‘NEUTRAL’ means A neutral stance indicates that the RBI maintains flexibility in adjusting policy rates based on prevailing economic conditions. This means that the central bank is open to either increasing or decreasing interest rates, depending on data related to inflation and economic growth. The neutral stance is generally adopted when both...
March 31 Introduction Tri-party repo” means a repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction. It is also known as TREPS. Purpose of Tri-party Repo? The aim to introduce Tri-party repo was to improve liquidity in the corporate bond repo market, thereby providing an...
June 16 Central Bank Digital Currency (CBDC) represents a digital form of a country's national currency also known as “Digital Rupee” or “e₹”. It is a legal tender like any other currency which is issued and regulated by the central bank (RBI), the only difference is that it is in a digital form. It is the same as a sovereign currency and is exchangeable one-to-one at par (1:1) with existing currency. Digital rupee (e₹) will offer features of physical cash like trust, safety and settlement...
July 22 WHAT e-Kuber is the core banking solution of the RBI, which enables each bank to connect their single current account across the country. Core banking solutions can be defined as a solution that enables banks to offer a multitude of customer-centric services on a 24x7 basis from a single location. All the commercial banks, primary dealers, scheduled urban co-operative banks, insurance companies, and provident funds who maintain funds accounts and securities accounts with the Reserve Bank of India are members of this...
July 03 RBI classifies commercial banks in India into Scheduled Banks and Non Scheduled Banks. SCHEDULED BANKS The scheduled bank is a bank that has been included in the Second Schedule of the Reserve Bank of India Act, 1934. The RBI grants scheduled bank a status of a bank only if it fulfils certain conditions laid down in the RBI Act, 1934 and the Banking Regulation Act 1949, one of which is having a minimum paid-up capital of Rs. 5 lakhs. What is a paid up capital? click on the link to...
July 02 WHAT? NDS, which stands for Negotiated Dealing System, is a fully electronic trading platform that is instituted and operated by the Reserve Bank of India to simplify the issuing and exchange of government securities and other types of money market instruments. Previously, the country’s government security market was primarily telephonic, which meant that buyers and sellers had to place trades over the phone, submit physical transfer forms, and issue checks for the settlement of funds to the...
March 19 SLR is the minimum proportion of deposits that the commercial bank must keep within itself in form of gold, cash and other government securities. यह जमा का न्यूनतम अनुपात है जिसे वाणिज्यिक बैंक को सोना, नकदी और अन्य सरकारी प्रतिभूतियों के रूप में अपने पास रखना चाहिए। SLR is determined by RBI on quarterly basis. The banks are obligatory to...
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