Chartered Accountant ( 公認会計士) (공인 회계사 )(CONTABILISTAS) (CONTADORES PÚBLICOS) (ДИПЛОМИРОВАННЫЕ БУХГАЛТЕРЫ СЧЕТОВОДИТЕЛИ) (会计师事务所) (COMPTABLES CHARTERES) (WIRTSCHAFTSPRÜFER) (сметководители) (MUHASEBE MÜTEAHHİTLİĞİ) (محاسبون قانونيون) (CHARTERED AKUNTAN)(Geoktrooieerde Rekenmeesters)(registeraccountants)(RAGIONIERI REGISTRATI)חשבונות רואי חשבון) (This blog is non-commercial and is used here to put important news only for the educational purpose of Students doing CA and CS.
Sunday, December 10, 2023
Canada's surging cost of living fuels reverse immigration :-The Economic Times Dec 10,2023
Saturday, December 9, 2023
WHAT IS MONETARY POLICY-BY AFCO GROUP AND USED HERE FOR THE KNOWLEDGE OF COMMERCE STUDENTS
What is monetary Policy?
Monetary policy is a set of tools used by a nation’s central bank to control the overall money supply and promote economic growth and employ strategies such as revising interest rates and changing bank reserve requirements.
- Monetary policy is a set of actions to control a nation’s overall money supply and achieve economic growth.
- Monetary policy strategies include revising interest rates and changing bank reserve requirements.
- Monetary policy is commonly classified as either expansionary or contractionary.
- The Federal Reserve commonly uses three strategies for monetary policy including reserve requirements, the discount rate, and open market operations.
Instruments of Monetary Policy
- Repo Rate:The interest rate at which the Reserve Bank provides liquidity under the liquidity adjustment facility (LAF) to all LAF participants against the collateral of government and other approved securities.
- Standing Deposit Facility (SDF) Rate: The rate at which the Reserve Bank accepts uncollateralised deposits, on an overnight basis, from all LAF participants. The SDF is also a financial stability tool in addition to its role in liquidity management. The SDF rate is placed at 25 basis points below the policy repo rate. With introduction of SDF in April 2022, the SDF rate replaced the fixed reverse repo rate as the floor of the LAF corridor.
- Marginal Standing Facility (MSF) Rate: The penal rate at which banks can borrow, on an overnight basis, from the Reserve Bank by dipping into their Statutory Liquidity Ratio (SLR) portfolio up to a predefined limit (2 per cent). This provides a safety valve against unanticipated liquidity shocks to the banking system. The MSF rate is placed at 25 basis points above the policy repo rate.
- Liquidity Adjustment Facility (LAF):The LAF refers to the Reserve Bank’s operations through which it injects/absorbs liquidity into/from the banking system. It consists of overnight as well as term repo/reverse repos (fixed as well as variable rates), SDF and MSF. Apart from LAF, instruments of liquidity management include outright open market operations (OMOs), forex swaps and market stabilisation scheme (MSS).
- LAF Corridor:The LAF corridor has the marginal standing facility (MSF) rate as its upper bound (ceiling) and the standing deposit facility (SDF) rate as the lower bound (floor), with the policy repo rate in the middle of the corridor.
- Main Liquidity Management Tool:A 14-day term repo/reverse repo auction operation at a variable rate conducted to coincide with the cash reserve ratio (CRR) maintenance cycle is the main liquidity management tool for managing frictional liquidity requirements.
- Fine Tuning Operations:The main liquidity operation is supported by fine-tuning operations, overnight and/or longer tenor, to tide over any unanticipated liquidity changes during the reserve maintenance period. In addition, the Reserve Bank conducts, if needed, longer-term variable rate repo/reverse repo auctions of more than 14 days.
- Reverse Repo Rate:The interest rate at which the Reserve Bank absorbs liquidity from banks against the collateral of eligible government securities under the LAF. Following the introduction of SDF, the fixed rate reverse repo operations will be at the discretion of the RBI for purposes specified from time to time.
- Bank Rate:The rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers. The Bank Rate acts as the penal rate charged on banks for shortfalls in meeting their reserve requirements (cash reserve ratio and statutory liquidity ratio). The Bank Rate is published under Section 49 of the RBI Act, 1934. This rate has been aligned with the MSF rate and, changes automatically as and when the MSF rate changes alongside policy repo rate changes.
- Cash Reserve Ratio (CRR):The average daily balance that a bank is required to maintain with the Reserve Bank as a per cent of its net demand and time liabilities (NDTL) as on the last Friday of the second preceding fortnight that the Reserve Bank may notify from time to time in the Official Gazette.
- Statutory Liquidity Ratio (SLR):Every bank shall maintain in India assets, the value of which shall not be less than such percentage of the total of its demand and time liabilities in India as on the last Friday of the second preceding fortnight, as the Reserve Bank may, by notification in the Official Gazette, specify from time to time and such assets shall be maintained as may be specified in such notification (typically in unencumbered government securities, cash and gold).
- Open Market Operations (OMOs):These include outright purchase/sale of government securities by the Reserve Bank for injection/absorption of durable liquidity in the banking system.
Friday, December 8, 2023
RBI MPC: Repo rate kept unchanged at 6.5%, FY24 GDP estimate hiked to 7% RBI MPC: Reserve Bank's Monetary Policy Committee decides to keep the repo rate unchanged at 6.5% and also keeps the FY24 inflation forecast unchanged at 5.4% :-Business Standard Dec 8,2023
RBI monetary policy announcement: FY24 GDP estimate hiked to 7%
RBI monetary policy announcement: Inflation projections unchaged
Junior Mehmood Demise News Live Updates: Bollywood actor Junior Mehmood dies at 67 after long battle with cancer
Thursday, December 7, 2023
Good news for Umrah pilgrims! Saudi Arabia revises visa regulations for Indian Muslims :- 06 Dec 2023, 08:45 PM IST Livemint
Measures taken by Saudi Arabia to facilitate the arrival of more Indian pilgrims
There has been an increment in the number of direct flights from multiple Indian airports to Jeddah and Madinah. In addition to this, the Saudi government has brokered several agreements to augment the number of dedicated flights from India, the Saudi Hajj and Umrah minister told HT's Rezaul H Laskar.
Apart from increasing the frequency of flights between the two nations, there has been a strategic increase in seat capacity on Saudi Airlines. These efforts have been made to cater to the increasing demand for Umrah pilgrimage.
The revision to Umrah visa regulations for Indian Muslims has eliminated restrictions based on their previous visa status. They can also take the help of a user-friendly e-visa system. Other important adaptations include an extension of the Umrah visa to 90 days, the Saudi Hajj and Umrah minister told HT. In addition to this, Indians who are willing to perform Umrah can obtain a stopover visa.
These measures will help Indian pilgrims by enhancing flexibility throughout their journey. This would mainly benefit women who are planning the pilgrimage by themselves. The move would promote gender equality and cultivate a safer, more embracing environment.
NFRA bans two auditors for up to 10 years for lapses in DHFL’s FY18 audits Read more at: https://economictimes.indiatimes.com Dec 7,2023
Wednesday, December 6, 2023
Surprise credits: Thousands of UCO Bank accounts opened around transfer dates under CBI scanner Read more at: https://economictimes.indiatimes.com//Dec 6,2023
Khalistani terrorist Lakhbir Singh Rode dies of heart attack in Pakistan The 72-year-old was among the 20 most wanted terrorists whose extradition India has sought from Pakistan PTI Last Updated 05 December 2023, 14:41 IST Read more at: https://www.deccanherald.com
Read more at: https://www.deccanherald.com/world/khalistani-terrorist-lakhbir-singh-rode-dies-of-heart-attack-in-pakistan-2797461?utm_referrer=taboola
Tuesday, December 5, 2023
Sunday, December 3, 2023
Assembly poll results show 'Modi magic' remains strong in Hindi heartland :-The Economic Times Dec 3,2023
Markets likely to gain further as BJP sweeps MP, Rajasthan, Chhattisgarh; Nifty may test 20,620-20,810 Analysts says a decisive win for the BJP in key states would send a strong message to investors betting on India’s rising growth potential YASH SADHAK SHRIVASTAVA DECEMBER 03, 2023 / 06:49 PM IST moneycontrol news
If Nifty 50 sustains above 20,430, it can test 20,620-20,810 within the next week
The market is expected to react positively to the outcome of the state elections, with the BJP's massive victory in Madhya Pradesh, Rajasthan and Chhattisgarh on December 3, analysts said. While the BJP is set to form the government in three Hindi heartland states, the Congress could only manage to win in Telangana.
“If the final results of the state elections are in BJP’s favour, we expect markets to further cement gains. The image of the BJP as a pro-reformist and the performance of the economy on various fronts, especially during the COVID period and gloomy global economic situation, have provided market participants confidence that a dual-aided right-wing government is beneficial in the longer term,” Swapnil Shah, Director - Research, StoxBox.
Ahead of the 2024 general elections, a decisive win for the BJP in key states would send a strong message to investors betting on India’s rising growth potential and position the country on a stronger footing as compared to its peers, Shah said.
“Results favour BJP, boost market’s confidence of political continuity post 2024 Lok Sabha Elections. It augurs well for India’s macro & policy momentum. Expect the market to get into pre-election rally mode,” reported CNBCTV-18 citing Motilal Oswal Financial Services.
The Nifty hit a new high on December 1. The 50-stock index closed 134.75 points or 0.67 percent higher at 20,267.90 after zooming to a record high of 20,285.15. The Sensex which settled 492.75 points or 0.74 percent higher at 67,481.19 was about 400 points shy of its record high of 67,927.
Deepak Jasani, Head of Retail Research at HDFC Securities, expects a 1-1.5 percent surge in the market when it resumes trading on December 4. The benchmark indices are unlikely to see big gains of 3-4 percent, as the BJP's performance was already factored in the previous week's gains.
“Investors might take profits after recent gains. Watching how foreign investors react to election results; if they keep buying, market momentum should stay. After the election, focus shifts to RBI, Fed actions, global tensions, and the May general election,” Jasani added.
If Nifty 50 sustains above 20,430, it can test 20,620-20,810 during the week, Amit Kumar Gupta, Research Analyst at Fintrekk said. “Bank Nifty can also test 46,120 as immediate resistance with a 5-7 percent rally immediately if that level breaks out on the upside. Valuation comfort is less in small and mid-caps though stock-specific returns may continue,” said Gupta.
Rajesh Palviya, Head - of Technical & Derivative Research, at Axis Securities expect a gap-up opening on December 4. "Monday might be bullish with Nifty potentially hitting 20,500 and Bank Nifty reaching 45,600-45,800 levels," Palviya said.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
