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Category Archives: Economics

Banking system in India

Types of Bank in India 

  1. Scheduled Banks: these are banks that are listed in the Second Schedule of RBI Act, 1934
  2. Non-Scheduled Banks: these are banks which are not listed in the Second Schedule of RBI Act, 1934

Scheduled Banks

MSP: The tool for doubling farmers’ income

MSP, the Minimum Support Price is the minimum price promised by the government to the farmers.

Need of MSP

  • To assure
  1. Minimum income to farmer
  2. Food security
  • To promote
  1. Agriculture production
  2. Rural economic growth
  3. Sustainable economic growth
  • To help bridge

Economic Survey Series-3: MSP- limitations and challenges in its calculation

Methodology for cost calculation of MSP

Government of India established Commission for Agricultural Cost and Pricing in 1965 (as Agriculture Price Commission and renamed in 1985) to recommend minimum price for various agriculture produce to optimize the use of resources …

Economic Survey Series-2: Unwanted Girls, Missing Women and Demographic Bubble

Demographic bubble refers to the sex related distortions in the human society that itself endangers human existence.

Before going into details we must understand some of the terms which help explain this syndrome.

“Meta son preference”: It refers to …

Economic Survey Series-1: Decoupling of Indian growth from world economy



Decoupling refers to the reversal of usual relationship between two parameters. In economics, different parameters have well defined relationships, however, under certain condition, such defined relationship is reversed. This reversal of relationship is termed “Decoupling”

The present decoupling

Price Support to Farmer: The Indian mechanism to avert crisis

Price support refers to the minimum remunerative price as promised by a government to the farmers.

Features of Price support

  1. It is the floor price set by the government
  2. It keeps the market price well above the competitive equilibrium price

Bail in, Bail out & FRDI Bill

Bail Out: It refers to a situation when government enters to safeguard the interest of deposits

However, this has certain negative impacts

  1. It increases burden on tax payers as bail out is by government through taxation
  2. It encourages bankers

Nostro Vs Vostro Account And Indian Banking fraud

Nostro Accounts: These are accounts held by a bank in foreign currency in another banks. They are used to facilitate

  1. International trade transactions
  2. Foreign exchange transactions

In today’s world of globalization, most of the large commercial banks hold Nostro …

CAG highlights the flaws in government’s accounting procedure

Comptroller and Auditor General of India highlighted the flaws in union government’s accounting procedure which led to under-estimation of revenue and fiscal deficit for 2015-16. Accordingly government failed to oblige fiscal targets as set by FRBM Act, 2003.

Point to …

Minsky Moment

Minsky Moment refers to a sudden collapse of asset values as part of the credit cycle of expansion and contraction of access to credit over time. This moment starts in the period of stability that encourages risk appetite. High risk …

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