Sunday, 21 December 2014

Balance of payment - Sunday Banking Special

                   The balance of payments is an accounting statement that records transactions (trade in goods, services, and financial assets) between a country’s residents and the rest of the world. Those transactions consist of receipts and payments—credits (entries that bring foreign exchange into the country) and debits (entries that record a loss of foreign exchange), respectively—that are recorded through the use of double-entry bookkeeping.
                   Balance-of-payments data are reported quarterly in national publications and also are published by the International Monetary Fund. The balance of payments consists of the current account, the capital account, and the financial account. 
Current Account 
            The current account includes trade in merchandise (raw materials and final goods),
services (transportation, tourism, business services, and royalties), income (from salaries and direct, portfolio, and other types of investment), and current transfers (workers’ remittances, donations, grants, and aid). The current account is related to the national income accounts because the trade balance corresponds broadly to the net export value recorded in the national income accounts as one of the four components of the gross national product (GNP), along with consumption, investment, and government expenditures. 
            
Capital Account 
            The capital account records all international capital transfers. Those transfers include the monetary flows associated with inheritances, migrants’ transfers, debt forgiveness, the transfer of
funds received for the sale or acquisition of fixed assets, and the acquisition or disposal of intangible assets. 

Financial Account 
              The financial account records government-owned international reserve assets (foreign
exchange reserves, gold, and special drawing rights with the International Monetary Fund), foreign direct investment, private sector assets held abroad, assets owned by foreigners, and international monetary flows associated with investment in business, real estate, bonds, and stocks. 
Equilibrium  
               The balance of payments should always be in equilibrium. The current account should balance
with the sum of the capital and financial accounts. However, because in practice the transactions do not offset each other exactly as a result of statistical discrepancies. If the current account is in equilibrium, the country will find its net creditor or debtor position unchanging because there will be no need for net financing. 
              Equilibrium in the capital and financial accounts means no change in the capital held by foreign monetary agencies and reserve assets. In the case of disequilibrium arising when a country buys more goods than it sells (i.e., a current account deficit), the country must finance the difference through borrowing or sale of assets (i.e., there is an inflow of capital and thus a capital and financial account surplus). The current account and the capital account add up to the total account, which is necessarily balanced, a deficit in the current account is always accompanied by an equal surplus in the capital account, and vice versa. A deficit or surplus in the current account cannot be explained or evaluated without simultaneous explanation and evaluation of an equal surplus or deficit in the capital account.

Thursday, 18 December 2014

<< IMPORTANT REVOLUTIONS IN INDIA >>



Black Revolution- Petroleum Production 

Blue Revolution - Fish Production 

Brown Revolution - Leather/ non- conventional (India)/Cocoa production 

Golden Fiber Revolution - Jute Production

Golden Revolution - Fruits/Overall Horticulture development/ Honey Production 

Green Revolution - Food grains 

Grey Revolution - Fertilizer 

Pink Revolution - Onion production/ Pharmaceutical (India)/Prawn production 

Red Revolution - Meat & Tomato Production 

Round Revolution - Potato 

Silver Fiber Revolution - Cotton 

Silver Revolution - Egg/Poultry Production 

White Revolution (In India: Operation Flood) - Milk/Dairy production 

Yellow Revolution - Oil Seeds production 

Evergreen Revolution - Overall development of Agriculture


Tuesday, 16 December 2014

Constituency of Ministers

  1. Shri Narendra modi- varanasi ( Uttar Pradesh) 
  2. Shri  Rajnath singh- Lucknow (Uttar Pradesh)
  3. Smt Sushma swaraj- Vidisha(Madhya Pradesh)
  4. Shri Arun jaitley- Gujarat (Rajya sabha)
  5. Shri Venkaiah naidu- Karnataka (Rajya sabha)
  6. Shri Nitin gadkari- Nagpur(Maharashtra)
  7. Shri Suresh prabhu- Rajapur(Maharashtra)
  8. Smt Uma bharathi- Jhansi(Uttar Pradesh)
  9. Dr. Najma heptullah- Madhya pradesh(Rajya sabha)
  10. Shri Kalraj mishra- Deoria(Uttar Pradesh)
  11. Shri Ramvilas paswan- Hajipur(Bihar)
  12. Smt Maneka gandhi- Pilibhit(Uttar Pradesh)
  13. Shri Ananth kumar- Bangalore south(Karnataka)
  14. Shri Ravi Shankar prasad-Bihar(Rajya sabha)
  15. Shri Ashok gajapathi raju- Vizianagaram(Andhra Pradesh )
  16. Shri Anant geete- Raigad(maharashtra)
  17. Smt Harsimrat kaur- Bathinda(Punjab)
  18. Shri Narendra singh tomar- Gwalior (madhya pradesh)
  19. Shri Jagat prakash nadda- Bilaspur(Himachal pradesh)
  20. Smt Smriti irani- Gujarat (Rajya sabha)
  21. Shri Jual oram- Sundargarh(Odisha)
  22. Shri Radha Mohan singh-Purvi champatan(Bihar)
  23. Shri Thawar chand gehlot- Madhya Pradesh (Rajya sabha)
  24. Shri Manohar parrikar- Panaji(Goa)
  25. Shri Sadananda gowda-Bangalore north (Karnataka)
  26. Shri Chaudhary Birender singh- Uchana kalan(Haryana)
  27. Dr.Harsh vardhan- Chandani chowk(Delhi)

Sunday, 14 December 2014

THE RESERVE BANK OF INDIA (RBI)

                The Reserve Bank of India (RBI) is India’ s central banking institution, which controls the monetary policy of the Indian rupee. It was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of India Act, 1934
                The RBI plays an important part in the development strategy of the Government of India. The RBI has been fully owned by the Government of India since its nationalization in 1949. The Central Office of the RBI initially established in Calcutta (now Kolkata), but was permanently moved to Bombay (now Mumbai) in 1937.                      The general superintendence and direction of the RBI is entrusted with the 21- member Central Board of Directors: the Governor (currently Dr. Raghuram Rajan), four Deputy Governors, two Finance Ministry representative, ten government- nominated directors to represent important elements from India’ s economy, and four directors to represent local boards headquartered at Mumbai, Kolkata, Chennai and
New Delhi. 
                 The Preamble of the RBI describes its basic functions to regulate the issue of bank notes, keep reserves to secure monetary stability in India, and generally to operate the currency and credit system in the best interests of the country. 
                 The National Stock Exchange of India took the trade on in June 1994 and the RBI allowed nationalized banks in July to interact with the capital market to reinforce their capital base. The central bank founded a subsidiary company—the Bharatiya Reserve Bank Note Mudran Limited—in February 1995 to produce banknotes. 
                 The Central Board of Directors is the main committee of the Central Bank. The Government of India appoints the directors for a 4-year term. The Board consists of a Governor, 4 Deputy Governors, 15 Directors to represent the regional boards, 2 from the Ministry of Finance and 10 other directors from various
fields. 
              Main functions of Reserve Bank of India (RBI) are as follows: 

  •                     Bank of issue Monetary authority 
  •                     Regulator and supervisor of the financial system 
  •                     Managerial of exchange 
  •                     control Issuer of currency 
  •                     Manager of foreign exchange