Critical Analysis on Demonetisation

On November 8, in an urgent move, Prime Minister Narendra Modi announced the ‘Demonetisation’ of Rs. 500 and Rs. 1000 currency notes. The swiftness of execution was such that these currency bills were effectively rendered useless within a couple of hours of the announcement. The reasoning behind such a move has been summed up in the official statement. A striking observation to be made out here is the lack of data numbers provided for by the Government and the connection made to national security. Let’s think about this policy action to analyse it to a certain extent. Continue reading “Critical Analysis on Demonetisation”

Demonetisation – Absorbing the Excess Liquidity

The decision to raise the limit for issue of bonds under MSS (Market Stabilization Scheme) is a prudent move and brings this innovative scheme in focus again. The arrangement also shifts the burden of holding cash from the Banks and RBI on to the government and would help stabilise the money market. A look at the scheme and how money is flowing after it is being deposited in the banks as a result of demonetization. Continue reading “Demonetisation – Absorbing the Excess Liquidity”

Basics of Accounting

 What is accounting?

Identifying a business transaction

  • Preparation of Business Documents(Voucher)
  • Recording of the transaction in the book of first entry (Journal)
    • Sales or Purchase Module
    • Relevance with the banking operations
  • Posting in the ledger
  • Preparation of Trial Balance
  • Preparation of Profit and Loss Account and Balance Sheet

Continue reading “Basics of Accounting”

Strategy for RBI Grade B Exam

I have been selected for the interview of RBI GRADE B 2016 exam. On request of many fellow aspirants, I am sharing preparation strategy.


The pattern is as follows:

Reasoning- 60 marks Continue reading “Strategy for RBI Grade B Exam”

Corporate Governance


Corporate Governance may be defined “as a set of systems, processes and principles which ensure that a company is governed in the best interest of all stakeholders”. It is the system by which companies are directed and controlled. It is about promoting corporate fairness, transparency and accountability. The system of rules, practices and processes by which a company is directed and controlled. Corporate  governance essentially  involves  balancing  the  interests  of  the many  stakeholders  in  a  company  –  these  include  its  shareholders,  management,customers, suppliers, financiers, government and the community. Continue reading “Corporate Governance”

Financial Awareness-September(1-10) 2016

  1. Non-food credit growth marginally falls to 9.72 (Source: Financial Express)credit
  • The growth rate of Non-Food Credit of banks slightly declined to 9.72% (Y-o-Y) during the fortnight ended August 19, compared with 9.92% in the previous fortnight, Reserve Bank of India (RBI) data released.
  •  The outstanding non-food credit in the banking system stood at Rs 71.72 lakh crore as on August 19, compared with Rs. 65.63 lakh crore in the same fortnight last year — a rise of Rs 6.09 lakh crore.
  • On the other hand, the rate of growth in deposits improved slightly to 9.19% (Y-o-Y) compared to 8.71% in the previous fortnight.
  • With hardly any growth in project loan sanctions, the credit growth of 9.72% was most likely a function of demand from the retail segment, something which the managements of several large banks have lately spoken about as their focus areas.
  • Another relatively bright spot for loan growth in recent months was the demand for working capital loans.
  • Companies have been moving their borrowings to the corporate bond market due to lower interest rates. In the first quarter of the current fiscal, firms mopped up over Rs 1.3 lakh crore through the corporate bond market, as against Rs 4.6 lakh crore raised in FY16, indicating a shift from bank borrowing.

2. Relief for banks, as FinMin relaxes ‘FATCA’ compliance norm. (Source: Business Line) Continue reading “Financial Awareness-September(1-10) 2016”