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RBI

Special Liquidity Facility

6th May – Special Liquidity Facility

Special Liquidity Facility for MFs As Franklin Templeton Mutual Fund announced it was winding up six debt funds, there was fear in the market that other mutual fund houses might face similar challenges and liquidity shortages too. This fear stemmed from worried investors rushing to withdraw their savings parked in other debt funds, that might …

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6th February – Deposit Insurance in India

In News – The government, in the Union Budget tabled on Saturday, proposed to increase the insurance cover on bank deposits from Rs 1 lakh to Rs 5 lakh. In September 2019, the Reserve Bank of India (RBI) slapped curbs on Punjab and Maharashtra Cooperative Bank Ltd (PMC Bank), a leading cooperative bank headquartered in Mumbai with deposits …

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31st December – Indian Banking – Challenges

The Reserve Bank of India (RBI) is planning to conduct the second phase of Operation Twist by simultaneous buying and selling of government securities. What it means? It will buy long tenure bonds and sell short-term ones to bring down the bond yields and flatten the curve, narrowing the term premium. The 10-year bond yield, …

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27th December – Explained – Operation Twist

What is Operation Twist? Operation Twist is the name given to a monetary policy tool that the US Federal Reserve had initiated to influence the prevailing rate of interest in the markets. In India, the RBI put through its version of Operation Twist by buying ₹10,000 crore worth of 10-year government bonds while selling four …

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