The Basel Committee on Banking Supervision (BCBS) provides a forum for regular cooperation on banking supervisory matters. Its objective is to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide. Currently there are 27 member nations in the committee. Basel guidelines refer to broad supervisory standards formulated by this group of central banks, called the Basel Committee on Banking Supervision (BCBS).
Teaser loan rates are special home loan rates that are called so, as the banks attract customers by offering them lower rates of interest in the initial years and then, in the longer run, the rates are shifted from fixed to floating rates or the market-adjusted rates. In the months that followed the collepse of Lehman Brothers, the Indian Banks' Association, nudged by the government, formulated a scheme where interest rates for loans up to 5 lakh and loans up to 20 lakh were available at discounted rates of 8.5% and 9.25% in the next two years.
As part of prudential guidelines, central banks require lenders to maintain a portion of their deposits in liquid assets. These liquid assets can be cash, gold or government securities. The ratio of prescribed liquid investment to deposits is termed as statutory liquidity ratio. In India, banks invest in bonds issued by the government and notified by the Reserve Bank of India as qualifying for SLR to meet the prescribed ratio. Currently, the prescribed statutory liquidity ratio for banks is 25% of thir deposits. SLR is occasionally used as monetary policy tool and the stipuation is made by authorities, keeping in mind the monetary policy objectives.
NDS is an RBI-operated e!ectronic trading system that does away with the the physical exchange of forms between its trading mambers in facilitation on exchange of government securities and other money market instruments. The platform also hosts the new government issus.The platform was introduced as a Part of RBI's long-term plan for developing the government securities market.
Non-performing assets are bad loans. Any asset, including a leased asset, becomes non performing when it ceases to generate income for the bank. As per the guidelines issued by the Reserve Bank of India (RBI), banks classify an account as NPA only if the interest due and charged during any quarter is not serviced fully within 90 days from the end of the quarter.
The ordinary man confuses the finance minister's budget speech for the annual budget. Bit as laid down in the constitution, the budget actually refers to the annual statement tabled in Parliament along with the 13-15 other documents. Divided into three parts -- Consolidated Fund, Contingency Fund and Public Account -- it has a statemant of receipts and expenditure each.