Small Finance Banks

The small finance bank will primarily undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganized sector entities. What they can do: Take small deposits and disburse loans. Distribute mutual funds, insurance products and other simpleContinue reading “Small Finance Banks”

Paramparagat Krishi Vikas Yojana (PVKY)

Organic Farming : – Paramparagat Krishi Vikas Yojana (PVKY): It is one of the schemes under NMSA (National Mission for Sustainable Agriculture) to promote organic farming. Under PKVY, Organic farming is promoted through cluster approach and local quality assurance systems. It is proposed to develop 10,000 clusters with a size of 20 hectare so as to increase the area 2 lakh hectareContinue reading “Paramparagat Krishi Vikas Yojana (PVKY)”

Electoral Reforms : NOTA

NOTA – None of the Above NOTA is designed to allow the voter to indicate disapproval of all of the candidates in a voting system. It is based on the principle that consent requires the ability to withhold consent in an election, just as they can by voting no on ballot questions. The Supreme CourtContinue reading “Electoral Reforms : NOTA”

India’s First Coastal Corridor

Vishakhapatnam – Chennai Costal Corridor The Visakhapatnam-Chennai Industrial Corridor section of the East Coast Economic Corridor, connecting four economic hubs and nine industrial clusters, will mark the first industrial corridor developed along India’s coast. The East Coast Economic Corridor will ultimately extend from Kolkata to Tuticorin The Indian government is keen to encourage manufacturing, includingContinue reading “India’s First Coastal Corridor”

Economy Curves- Very Important

Philips curve shows the tradeoff between unemployment and inflation. It indicates that to reduce unemployment, an economy has to adjust with higher level of inflation. Kuznet curve explain the relationship between growth and equality. During the initial stages of development inequality increases with economic growth. Laffer curve shows the relationship between tax revenue and taxContinue reading “Economy Curves- Very Important”

About Ease of Doing Business Index

Word Bank releases Doing Business reports and it review business regulations and their enforcement across countries. It was introduced in 2004. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. The rankings are determined by sorting the aggregate distance to frontierContinue reading “About Ease of Doing Business Index”

Viability Gap Funding

Viability Gap Funding There are many projects with high economic returns, but the financial returns may not be adequate for a profit-seeking investor. For instance, a rural road connecting several villages to the nearby town. This would yield huge economic benefits by integrating these villages with the market economy, but because of low incomes itContinue reading “Viability Gap Funding”

Liquidity trap

The liquidity trap is the situation in which prevailing interest rates are low and savings rates are high, making monetary policy ineffective. In a liquidity trap, consumers choose to avoid bonds and keep their funds in savings, because of the prevailing belief that interest rates will soon rise. This reduces the Bond yield and makesContinue reading “Liquidity trap”