Most automated teller machines (ATMs), or machines cash, are owned by banks. But ones that are owned and operated by non-banking companies are called while-label ATMs (WLAs). They function just the same way as any other bank run ATM.
The current account deficit (CAD) in a country's balance of payments measures the gap between import and export of goods, services and transfers. This deficit is not necessarily a bad thing. Developing countries may run a CAD in the short term to increase local productivity and export in the future. But in the long run, a current account deficit sap economic vitality.
What is GAAR and what does it mean when it is invoked?
These rules target any transaction or business arrangement that is enterred into with the objective of avoiding tax. More and more countries are adopting these to check aggressive tax planning. When GAAR is invoked, it would mean that particular transaction or arrangement would be impermissible and denied the tax benefit it has claimed.
Islamic finance refers to a financial system that is consistent with the principles of sharia, the sacred law of Islam. It is different from reular banking in that it prohibits earning of interest (or riba) through the business of lending. It also prohibits direct or indirect association with businesses involving alcohol, pork products, firearms and tobacco. It also does not allow speculation, betting and gambling.
Banks were assigned a special role in the economic development of the country, besids ensuring the growth of the financial sector. The banking regulator, the Reserve Bank of India, has hence prescribed that a portion of bank lending should be for developmental activies, which it calls the priority sector.
SHG primarily comprises members with homogenous social and economic backgrounds. It is a voluntarily formed group consisting of women, rural laboures, small farments and micro-enterprises. The concept is akin to the concept of democracy. SHGs are formed by the the members, for the members and of the members. The number of members ould be as less as five and could even go up to 20. They save and contribute tp a common fund which is used to lend to the members. Since they know wach other, members do not seek collateral from each other.