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
Suspension of Insolvency and Bankruptcy Code
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
The Idea of a Bad Bank
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
Opening up of City Gas Distribution
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
RBI Loan Restructuring Scheme
What is Restructuring? RBI recently announced to open a restructuring window for stressed loans. Those accounts which had been in default for not more than 30 days as on March 1, 2020, can be restructured if the borrowers are unable to service them because of their businesses being affected by the Covid-19 pandemic. RBI has … Continue reading RBI Loan Restructuring Scheme
Why RBI’s move to increase Gold Loan LTV to 90% is a risky move
RBI recently hiked the Loan to Value (LTV) for gold loans offered by Banks for non-agricultural use from 75% to 90% until March 2021. Loan-to-value (LTV) is the amount of loan that can be offered in proportion to the value of a collateral asset which is being kept as security. LTV of 90% would mean … Continue reading Why RBI’s move to increase Gold Loan LTV to 90% is a risky move
The trend of Work from Home (WFH) and it’s impact
Covid pandemic has changed the world. Some of the changes are temporary while some will be long lasting. Among the changes, it has accelerated a lot of things which were already happening like the rise of Edtech. One of the lasting changes that Covid would have had is the trend of Work from home (WFH). … Continue reading The trend of Work from Home (WFH) and it’s impact
Why Moratorium wasn’t extended…
RBI had announced Moratorium a 3-month moratorium which was extended for another 3 months. We have seen what the Moratorium was and why was it announced here. But RBI has decided not to extend Moratorium beyond August. Let us see why? ALM (Asset Liability Management) Issues: Banking is a business where Banks borrow for a … Continue reading Why Moratorium wasn’t extended…
Explained: Moratorium on Loans
What is Moratorium Moratorium here meant that the borrower can choose not to pay Interest and Principal due for the time decided. Payments are deferred.RBI has allowed Banks and NBFCs to offer Moratorium to all Term loans. Term loans here will include all kinds of retail loans such as vehicle loan, home loan,Credit card and … Continue reading Explained: Moratorium on Loans