Force Majeure

RBI kept repo rate unchanged but used other measures for transmission

useful link: https://www.thehindu.com/business/Economy/rbi-opts-for-long-term-repos-crr-exemption-to-lower-rates/article30755075.ece

Budget

  View

Under Recovery

useful link: https://www.thehindu.com/business/markets/oil-firms-set-to-gain-as-subsidised-lpg-prices-move-up-steadily/article30677429.ece

Related Party Transactions

Related party transactions: The transactions which happen between group companies i.e. companies of the same owner. And these transactions should be at market rate which is also called arms length principle.

useful link: https://indianexpress.com/article/business/sebi-panel-proposes-overhaul-of-related-party-transaction-norms-6238541/

Term of the day : Bail-in and bail-out:

Bail-in and bail-out : A bail-in is rescuing a financial institution on the brink of failure by making its creditors and depositors take a loss on their holdings. A bail-in is the opposite of a bail-out, which involves the rescue of a institution/ financial institution by external parties, typically government using taxpayers money.

  View

Term of the day : Fiscal Drag

It is a situation where income growth or inflation moves taxpayers into higher tax brackets. This in effect increases government tax revenue without actually increasing tax rates. The increase in taxes reduces aggregate demand and consumer spending because a larger share of the people’s income now goes into taxes, which leads to deflationary pressures or drag on the economy.

  View