Did you know you could use your mobile phone to make instant payments for you rail tickets, credit card and DTH mobile recharges? Or transfer funds to your friend? All of this can be done just through an SMS or an app. This retail fund-transfer system, called the inter-bank mobile payments service, works in real time and is available 24x7. Hare's how:
An account is termed as a bad loan or NPA when a borrower fails to pay his bank monthly-equated instalment. According to banking ruls, a loan is classified as an NPA when the EMI, princippal or interest component, is not paid within 90 days from the due date. When an asset ceases to generate any income, it's termed as a bad loan. There are classification of loans-standard, sub-standard, doubtful and loss assets. In order to ensure that banks are not affected due to defaults, regulator RBI has mandates them to make provisions or set aside money when an account turns bad.
The government mandated the Financial Sector Legislative Reforms Commission, or FSLRC, to rewrite laws governing the Indian financial sector, many of them being archaic to provide financial sector architecture of the future. One of the key recommendations is the formation of a Unified Financial Reguatory Agency, or UFRA.
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.