Indian Economy Study Material 2024

A set of actions taken by a nation's central bank (RBI in India) to control the money supply and influence economic activity.

The process by which monetary policy decisions (like changes in interest rates) impact economic variables, prices, and the overall economy.

A tool used by RBI to inject short-term liquidity into the banking system, offered at a market-determined rate generally lower than the Repo Rate.

A category of loans that government and RBI consider important for national development, given priority over other sectors.

Financial instruments issued by banks against their priority sector loans, allowing them to achieve target PSL by purchasing certificates from banks with surplus lending.

A financial metric that expresses the percentage of loans a bank has issued in relation to its total deposits.

A comprehensive index that measures financial inclusion by assessing access, usage, and quality of financial services across different sectors like banking, investments, insurance, and pensions.

A scheme established by RBI for resolving customer grievances related to various financial services, including banking, non-banking finance, and payment systems.

A not-for-profit organization that establishes standards, promotes compliance, acts as a collective voice, and provides support for its members within a specific sector.

A type of bank that provides a wide range of financial services beyond traditional commercial banking activities, like insurance and investment banking.

Banks registered as cooperative societies under state or multi-state cooperative societies Acts, subject to dual regulation by RBI and state/central registrars.

A fund established by UCBs to pay dividends in future years even when profits are insufficient or losses are incurred, but is now prohibited under current rules.

A framework implemented by the RBI to intervene and impose restrictions on UCBs when they breach specified risk thresholds, addressing their financial health.

Providing small value loans to marginalized and poor individuals who lack access to formal banking services.

Loans provided to non-corporate, non-farm small and micro enterprises, categorized based on loan amount and repayment history.

A company registered under the Companies Act, primarily engaged in lending activities but excluding institutions involved in agriculture, industrial activity, trading goods, and certain services.

A framework that categorizes NBFCs into four layers based on their size, activities, and perceived risk profiles.

A loan or advance that is overdue for more than 90 days, reflecting the borrower's inability to repay their obligations.

A financial institution specializes in purchasing NPAs from banks and financial institutions to clean up their balance sheets and facilitate asset resolution.

An arrangement where multiple lenders partner to provide loans to borrowers, allowing for increased lending capacity and risk reduction.

A default wherein the borrower has the ability to pay, but chooses not to fulfill their repayment obligations, often involving actions like diverting funds or disposing of assets.

A comprehensive bankruptcy law that consolidates existing frameworks for insolvency and bankruptcy, providing a time-bound process for resolving distressed businesses.

Professionals appointed to manage the insolvency, liquidation, and bankruptcy processes, playing a crucial role in resolving financial distress.

A type of insolvency resolution process that is voluntarily initiated by the debtor, offering a streamlined approach for resolving financial stress in small and medium enterprises.

The ratio of household savings to GDP, reflecting the level of savings within the economy.

A tax levied on the supply of goods and services in India, encompassing a wide range of goods and services.

Goods and services considered non-essential but highly desirable within a culture, like premium vehicles or luxury items.

Goods that are considered harmful or undesirable for society, with their consumption discouraged, like alcohol, tobacco, or gambling.

Goods that consumers desire but are actually harmful, leading to their consumption being discouraged, like tobacco products.