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Finance & Economy

Understanding Strategy: Beyond Operational Effectiveness

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In today’s dynamic and competitive business environment, the distinction between operational effectiveness and strategy is crucial for sustainable success. While companies have historically emphasized flexibility, benchmarking, outsourcing, and honing core competencies, the true differentiation lies in their strategic positioning. Operational effectiveness, though essential, is not sufficient for achieving long-term competitive advantage. Operational Effectiveness: A Necessary […]

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Understanding India’s Monetary Policy Framework and Objectives

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What is Monetary Policy? What are goals of Monetary policy and how these goals are achieved? Monetary policy refers to the use of monetary instruments by the central bank to regulate interest rates, money supply, and availability of credit with a view to achieving the ultimate objective of economic growth and price stability. The primary

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The concept of Other Comprehensive income under IFRS with comparison with Ind-AS.

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Other Comprehensive Income (OCI) refers to revenues, expenses, gains, and losses that are not included in net income on the income statement, but instead are reported in a separate component of shareholders’ equity called accumulated other comprehensive income. This concept is part of a broader accounting framework that aims to provide a more comprehensive picture

The concept of Other Comprehensive income under IFRS with comparison with Ind-AS. Read More »

Understanding Depreciation, Amortization, Impairment, and Depletion: A Complete Guide

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In the financial and accounting world, terms like depreciation, amortization, impairment, and depletion often come into play, especially when assessing the value of assets over time. While these concepts share similarities in that they all relate to the reduction of value of assets, they apply to different types of assets and under varying circumstances. In

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Methods to find out the present value of a future sum of money or future ordinary annuity or any annuity due.

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1. Finding the Present value of a sum of money receivable in the future. The present value (PV) of an investment refers to the current worth of a future sum of money, taking into consideration the time value of money. In other words, it’s the amount that needs to be invested today to achieve a

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Different methods of forecasting in economics.

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Economic forecasting involves the use of various methods and techniques to predict future economic trends, indicators, and outcomes. These methods vary in complexity and accuracy, and they are used by economists, policymakers, businesses, and analysts to make informed decisions. Here are some common methods of economic forecasting: Economic forecasting is a challenging endeavor, and no

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Capital Assets pricing model (CAPM) , its formula and uses.

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The Capital Asset Pricing Model (CAPM) is a widely used financial model that helps investors and analysts understand the relationship between risk and expected returns for individual securities or portfolios of assets. It provides a framework for evaluating the required rate of return for an investment based on its risk characteristics relative to the overall

Capital Assets pricing model (CAPM) , its formula and uses. Read More »

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What is relation between interest rate and inflation?

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The relationship between interest rates and inflation is complex and multifaceted, and it’s often discussed in the context of monetary policy, economic conditions, and financial markets. Here are the key points to understand about the relationship between interest rates and inflation: 1. General Relationship: In general, there tends to be a positive relationship between interest

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Methods to find out the future value of an Investment OR Ordinary Annuity OR Annuity due or Incremental Annuity/SIP.

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1. Finding the future value of a one-time investment. The future value (FV) of an investment or cash flow represents the value of that investment or cash flow at a specified point in the future, taking into account the effects of interest or investment growth. The formula to calculate the future value is: Where: Here’s

Methods to find out the future value of an Investment OR Ordinary Annuity OR Annuity due or Incremental Annuity/SIP. Read More »

All about EPS-95 pension Scheme and Option for higher pension under para 11(3) & 11(4) of EPS-95 with changes upto 01.06.2023

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What is EPS-95? section 6A(1) of THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952 provides that- The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Employees’ Pension Scheme for the purpose of providing for—  (a) superannuation pension, retiring pension or permanent total disablement pension to the

All about EPS-95 pension Scheme and Option for higher pension under para 11(3) & 11(4) of EPS-95 with changes upto 01.06.2023 Read More »

Financial System and its stages, components, and Functions.

Finance & Economy /

Financial System A “Financial System” is a set of interrelated activities working together to achieve some pre-determined goal. It includes- Markets Financial institutions Financial Instruments Financial services and The Mechanism that influences the generation of savings for investment, capital formation and growth. An efficient financial system plays a key role for an economy to operate

Financial System and its stages, components, and Functions. Read More »

What is Balance of Payment? What is balance of Trade? What is current account deficit/ Surplus and capital account deficit / Surplus? What is forex reserve? What is Trade Deficit/ Surplus?

Finance & Economy /

There is many terms like Balance of payment, Balance of Trade, Current A/c Deficit, Capital account deficit, trade deficit, forex reserve which appears to be confusing to many students. Read the complete article to develop such understanding about these terms that you will never forget. Please refer following basic points before going ahead in learning

What is Balance of Payment? What is balance of Trade? What is current account deficit/ Surplus and capital account deficit / Surplus? What is forex reserve? What is Trade Deficit/ Surplus? Read More »

Decision Making and Risk Factor: How to take an economic decision considering the risk factor?

Finance & Economy /

Every person wants to make the best decision but every person may have a different risk attitude and our risk attitude play a major role in our decision making. On the basis of risk attitude, people can be divided into the following three categories:- Risk-Averse person:- A person who does not like to take the

Decision Making and Risk Factor: How to take an economic decision considering the risk factor? Read More »

How a Package of Rs. 20 Lakh Crores going to make India – Atmanirbhar Bharat: First Phase-13th may 2020

Finance & Economy /

How a Package of Rs. 20 Lakh Crores going to make India – Atmanirbhar Bharat: First Phase-13th may 2020 We all know that Indian Independence day is celebrated on 15th August. We secured our independence on 15th August 1947 or we can say we were declared independent on 15th August 1947 when UK parliament passed

How a Package of Rs. 20 Lakh Crores going to make India – Atmanirbhar Bharat: First Phase-13th may 2020 Read More »

Coronavirus (COVID-19): How much harmful is corona for world economy? What should we do? What should investors do in this era of viruses i.e. Coronavirus.

Finance & Economy /

Coronavirus (COVID-19): How much harmful is corona for world economy? What should we do? What should investors do in this era of viruses i.e. Coronavirus.? There are many questions come to everyone’s mind regarding Coronavirus (Covid-19). Share market is facing one of the biggest fall due to corona virus. Hence investors are in panic. Everyone’s

Coronavirus (COVID-19): How much harmful is corona for world economy? What should we do? What should investors do in this era of viruses i.e. Coronavirus. Read More »

Current position of Indian Economy w.r.t. Economic Survey of India for FY 2019-20 (presented in Parliament on 31-01-2020)

Finance & Economy /

Current position of Indian Economy w.r.t. Economic Survey of India for FY 2019-20 (presented in Parliament on 31-01-2020) Economic Survey 2019- 20 was presented in the Parliament by Finance Minister Nirmala Sitharaman on January 31, 2020. The theme of Economic Survey 2020 is- “Enable markets, promote ‘pro-business’ policies and strengthen ‘trust‘ in the economy”. The

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Is it right time for the privatisation or consolidation of public sector banks?

Finance & Economy /

Current market share of public sector banks is 70% which is reducing very rapidly i.e. approximately 4% a year. After 5 year, Estimated the market share of public and private sector bank will be in the ratio of 50:50. Infosys chairman Nandan Nilekani said that market share of public sector bank may reduce to something

Is it right time for the privatisation or consolidation of public sector banks? Read More »

Paytm received approval from SEBI to become Registered Investment Advisor.

Finance & Economy /

Business of E-wallet companies are affected by RBI guidelines for mandatory KYC in E-wallet. Last date for updation of KYC in E-wallet was 28th Feb. 2018. However those who have not updated KYC in their E-wallet are not going to lose their money in E-wallets. They are allowed to use money already available in E-wallet

Paytm received approval from SEBI to become Registered Investment Advisor. Read More »

RBI to Infuse Rs. 1 Lakh crore in the banking system in the month of March

Finance & Economy /

To manage additional demand of liquidity, RBI decided to Infuse Rupees 1 lakh crore in the banking system through special auctions in the month of March i.e. before close of the financial year 17-18. RBI decided to conduct four variable-rate term repo auctions in March 2018. The amount in each auction would be Rs 25000

RBI to Infuse Rs. 1 Lakh crore in the banking system in the month of March Read More »

On 1st March 2018, Cabinet cleared "Fugitive Economic Offenders Bill 2018"

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The Cabinet today cleared Fugitive Economic Offenders Bill which targets big defaulters involved in economic crime of over Rs. 100 crores. “Fugitive Economic Offenders Bill 2018” has been brought to confiscation of properties of such fugitives. There will also be the provision to confiscate those assets outside India but co-operation of that country will be

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On 1st March 2018, Cabinet approved setting up NFRA as regulator for Auditors

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Today on 1st March 2018, The Cabinet approved setting up of the National Financial Reporting Authority (NFRA), which will be an independent regulator for the auditing profession. After Rs 12700 crore fraud at Punjab National, Government find timing and reason to amend Companies Act, 2013 for setting up separate independent regulator for auditing profession i.e.

On 1st March 2018, Cabinet approved setting up NFRA as regulator for Auditors Read More »

Priority Sector Lending Targets for FY 2018-19 for Foreign Banks with 20 or more Branches.

Finance & Economy /

RBI announced Priority Sector Lending Targets for FY 2018-19 for Foreign Banks with 20 or more Branches in notification dated 1st march 2018. As per RBI notification, Lending target are:- Sub-target of 8% of ANBC (Adjusted Net Bank Credit) or CEOBE (Credit equivalent Amount of Off-Balance Sheet Exposure), whichever is higher to small and marginal

Priority Sector Lending Targets for FY 2018-19 for Foreign Banks with 20 or more Branches. Read More »

On 28-02-2018, RBI revised limit of "exchange traded currency derivatives".

Finance & Economy /

RBI revised limit of “exchange traded currency derivatives” without having to establish underlying exposure for resident in India and FPI.Currently, persons resident in India and FPIs are allowed position in USD-INR upto USD 15 million per exchange and positions in EUR-INR, GBP-INR and JPY-INR pairs, all put together, upto USD 5 million equivalent per exchange.

On 28-02-2018, RBI revised limit of "exchange traded currency derivatives". Read More »

On 23rd February 2018, Reserve Bank of India launched the Ombudsman Scheme for NBFC

Finance & Economy /

Good News for customers of NBFC like Bajaj Financial Services Limited, LIC Housing Finance, PNB housing finance, Indiabulls group, Muthoot Finance, Reliance Capital, Sundaram Finance, GIC housing Financial Services etc. as they will get expedite and cost-free resolution for their complaints. Reserve Bank of India launched the Ombudsman Scheme for NBFC on date February 23,

On 23rd February 2018, Reserve Bank of India launched the Ombudsman Scheme for NBFC Read More »

RBI constituted an Expert Committee to look into the reasons for high divergence observed in asset classification and provisioning by banks.

Finance & Economy /

In view of large divergences observed in asset classification and provisioning in the credit portfolio of banks as well as the rising incidence of frauds in the Indian banking system, RBI decided to constitute an Expert Committee under the chairmanship of Shri Y H Malegam, a former member of the Central Board of Directors of

RBI constituted an Expert Committee to look into the reasons for high divergence observed in asset classification and provisioning by banks. Read More »

Link your Adhaar with Various Financial products and mobile number before 31st march 2018

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On 15-02-2018, Government issued a notification to require all postal Life Insurance holder to provide their Aadhaar detail.The notification also makes Aadhaar mandatory for all new insurance policies that will be issued in the future. This notification does not specify any deadline for linking of Aadhaar with Postal Life Insurance policies. Constitutional Validity of Aadhaar

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Important Highlights & Tax Proposals of Finance Budget 2018-19

Finance & Economy, Income tax updates for FY 2018-19 (AY 2019-20), Taxation /

Important Highlights & Tax Proposals of Finance Budget 2018-19 The Finance Minister, Sh. Arun Jaitley presented his fifth Union budget 2018 in Parliament today i.e. 01-02-2018. Following are important proposals made therein:- Direct Taxes Proposals No changes in Personal Income tax slab. No Changes in Limit of deduction u/s 80C. Benefit of exemption for withdrawal

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Indian Accounting Standards (IND-AS): Whether applicable to your company or not?

Finance & Economy /

Indian Accounting Standards (IND-AS): Whether applicable to your company or not? After a long converging process of Accounting standards(AS) and IFRS, Ministry of corporate affairs has come up with new standards name as Indian Accounting Standards(Ind-AS) which sum of AS and IFRS. Hundred percent adoption of IFRS was not possible in Indian Scenario, hence Necessary

Indian Accounting Standards (IND-AS): Whether applicable to your company or not? Read More »

Highlights of Union Budget 2017-18

Finance & Economy, Income tax updates for FY 2017-18 (AY 2018-19), Taxation /

Key Highlights of Union Budget 2017-18 Today on Date 1st February 2017, Finance Minister, Mr. Arun Jaitley presented Union Budget 2017 in parliament.  Opening remarks of budget speech were: Massive war against black money has been launched. Government now seen as a trusted custodian of public money. We will focus on energizing youth to reap

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Universal Basic Income (UBI): A substitute of social welfare schemes to reduce poverty

Finance & Economy /

Universal Basic Income (UBI): A substitute of social welfare schemes to reduce poverty What is concept of Universal Basic Income (UBI)? As per the concept of Universal Basic Income (also known as Unconditional Basic Income, Social Dividend, Citizen’s Income), the government have to pay a unconditional sum of money to every citizen on periodical basis.

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Payment Banks: Revolutionising the Banking Sector

Finance & Economy /

Payment Banks: Revolutionising the Banking Sector In September 2013, the Reserve Bank of India constituted a committee headed by Dr Nachiket Mor to study Comprehensive financial services for small businesses. The committee submitted its report to RBI in January 2014.One of the key suggestions of the committee was to introduce specialised banks or ‘ Payment

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UPI: Unified Payment Interface – A step of India towards Cashless Economy

Finance & Economy /

UPI: Unified Payment Interface – A step of India towards Cashless Economy RBI Governor, Sh. Raghuram Rajan (born 3 February 1963) who became governor on 04th September 2013 by replacing Sh. D. Subbarao, now going to be replaced by Sh. Urjit R Patel on date 04th September 2016. Sh. Urjit R. Patel (born 28 October

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Payment of Bonus Act, 1965 Amended to increase Minimum Bonus

Finance & Economy /

Payment of Bonus Act, 1965 In India, Payment of bonus is governed by “Payment  of Bonus Act, 1965” as amended from time to time including latest amendment act of 2015 i.e. “Payment of Bonus (Amendment) Act, 2015 (applicable w.e.f.  01.04.2014)” . Key points regarding payment of bonus are given below: Applicability of Payment of Bonus

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Provident Fund in India, Its Taxability and TDS on Provident Fund

Finance & Economy, Taxation /

Provident Fund in India, Its Taxability and TDS on Provident Fund What is the Provident Fund(PF)? Provident Fund is a retirement saving scheme in India that is similar to the United State’s Social Security program. Its purpose is to provide financial support to members. To understand the scheme of the provident fund, we can discuss

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What is difference between Pledge, Mortgage and Hypothecation?

Finance & Economy /

What is difference between Pledge, Mortgage and Hypothecation I have received some queries asking the difference between Pledge, Mortgage and Hypothecation. This question is normally asked in interviews in banking and even bankers are found confused about the little difference between these terms. To understand the difference between these terms first find the similarity in

What is difference between Pledge, Mortgage and Hypothecation? Read More »

India-Mauritius Tax treaty revised to curb Black Money

Finance & Economy, Taxation /

India-Mauritius Tax treaty revised to curb Black Money On date 11-05-2016, India getting Mauritius to sign a revised India-Mauritius tax treaty after a decade-long effort since 1996, was an attempt to curb black money generation. Under the revised treaty, from April 1, 2017, companies routing funds into India through Mauritius will have to pay short-term

India-Mauritius Tax treaty revised to curb Black Money Read More »

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