Govt Exams
A haircut is a percentage discount applied to the market value of collateral to account for potential market volatility and protect the lender. For example, if a security worth Rs. 100 has a 10% haircut, it's valued at Rs. 90.
The reverse repo rate is the interest rate at which RBI borrows from banks to absorb excess liquidity from the financial system.
RBI's e-Rupee (Digital Rupee) project explores Central Bank Digital Currency (CBDC) for domestic and cross-border transactions.
ISIN (International Securities Identification Number) uniquely identifies individual securities across global markets.
Basel III framework mandates minimum Tier 1 capital ratio of 8.5% for banks' regulatory compliance.
RBI has been promoting the internationalization of the rupee to facilitate cross-border payments and reduce dependence on foreign currencies.
Basel III is an international regulatory framework developed by the Basel Committee on Banking Supervision for bank capital and risk management.
A clean demand draft is one that is not drawn against any trade documents or merchandise, issued purely as credit.
Cross-border rupee transactions are regulated under FEMA and specific RBI guidelines for internationalization of rupee.
Regional Rural Banks are not classified as SIBs; only major private and public banks meeting size criteria are designated as SIBs.