A group of 7 major Central Banks including USA's Federal Reserve along with Bank for International Settlement have teamed up to decide how a digital currency would look like. What is a Central Bank Digital Currency (CBDC) ? It's a digital equivalent of cash.Just like normal currency, it gives the holder a direct claim on … Continue reading Central Bank Digital Currency (CBDC)
1. So what are the reforms Parliament has passed three bills. The one area these legislation address is removing the monopoly of APMC Mandi in agriculture trade. We saw in the first part of this two part series how a farmer in Solapur, Maharashtra is shortchanged as he goes to a Mandi to sell his … Continue reading Agriculture reforms. The way forward..
Government has announced APMC reforms. I decided to speak to some farmers from Solapur district in Maharashtra to understand how the trade happens under APMC. This is part one of a two part series where we try to understand what's wrong with the present structure and what can change with the reforms announced. APMC Act … Continue reading Agriculture reforms – 1. What happens when a farmer goes to APMC
Let's say an exporter has received payments for its exported product in dollars. The exporter will go to his local bank and exchange those dollars for rupees. The local bank will go to the RBI (which is India’s Central Bank) and exchange those dollars for rupees. The Central Bank will print an equivalent amount of … Continue reading Explainer: Foreign Exchange Reserves. Also what is pegging of Currency or Fixed Exchange rate.
Indian Gas Exchange (IGX) - India’s first Gas exchange was launched in June, 2020.It is a digital trading platform that will allow buyers and sellers of natural gas to trade both in the spot market and in the forward market for imported natural gas across three hubs —Dahej and Hazira in Gujarat, and Kakinada in … Continue reading Gas Exchange
Accounting is the language of Business. It's about recording all the business transactions. Transaction is the business activity where exchange is involved. Large Businesses like Reliance will have thousands of business activities. There is need to record, classify and summarize the activities. Therefore, accounting is about recording, classifying and summarizing the activities. The goal of … Continue reading Basics of Financial Statements – 1
https://www.youtube.com/watch?v=RieLX3-Uaug&t=23s Basics of Accountancy: Debit and Credit Approach - 1 There were three friends Rancho, Raju and Farhan. They dropped out of engineering college to pursue a business idea. Their idea was to buy T-shirts from wholesalers and sell them on the beaches of Goa to tourists. They estimated that they would require a capital … Continue reading Basics of Accountancy: Debit and Credit Approach – 1
What is IBC? Insolvency and Bankruptcy code (IBC) was introduced in 2016. This was done to tackle the problem of massive Non Performing loans (Bad Loans) in the banking system. This made it easier for creditors to get their money from defaulting firms. It was hailed as a major reform in India’s banking system. Suspension … Continue reading Suspension of Insolvency and Bankruptcy Code
Business of Banking: A bank raises money through deposits and lends it to borrowers. It makes money through the difference in the interest rates it charges from borrowers and what it pays to the depositors. This is based on the premise that not all depositors will demand their money back at the same time. Regulators … Continue reading The Idea of a Bad Bank
Petroleum and Natural Gas Regulatory Board (PNGRB) which is the regulator for City Gas Distribution (CGD) has decided to open up City Gas Distribution to multiple players. Under open access, the consumer can choose which company it wants to buy gas from. City Gas Distribution requires setting up pipeline infrastructure to deliver gas to end … Continue reading Opening up of City Gas Distribution