Strategies IN Mind

It was the Great Recession aka 2008 Financial crisis and we 90s Kids are again watching a similar recessionary crisis. Each individual in the world knows how a distinctive emergent virus can cause illness to every part of the human body. It is not the time of blaming any economy but how to survive in this new challenge.  The Summarizer team took an initiative to publish a series of Impact and Outcome evaluation in summarized manner from C-19. In our first article, we are going to talk about three industry sectors affected the most in India & around the globe.

High interest charged on loans & evaluating the credit history by banks are painful for every individual. To remove these tight & cumbersome processes - P2P come into the picture. As always, we break the topic in a summarized way for a better understanding & bring conceptual clarity - So, here we start! ➲ ➲ What is P2P ? Peer-to-peer (P2P) lending is a new method of debt financing/investments that allows people to borrow & lend money without a financial institution. Harnessing technology & big data, P2P platforms connect borrowers to investors faster & cheaper than any bank. P2P lending is here to grow rapidly in coming years & it's new source of fixed income for investors. Compared to stock market, P2P investments have less volatility & low correlation. They also offer higher returns than conventional sources of yield. Decentralised financial network, where loans are funded by individuals as opposed to companies in financial network. As per...

Fed Hike or Fed Rate Hike are just the anonyms . To understand this, first we have to break it in parts :- * Fed  ~ Federal (Fed) Reserve Bank is the central bank of America. * Rate ~ It signifies the interest rate charge by the banks. * Hike ~ It means increase (of interest rate). Only meaning is not enough unless you understand on what basis Fed raises rates, why they do, how rates are decided & so on. So, lets train in a summarized manner :) Pic Credit - CNN Money ⇛What is Federal Rate or Federal Fund Rate ? It is the interest rate charged by depository institutions (say Banks) from other banks. But only when they borrow/lend money to each other overnight , or without any collateral (security). ⇛ What is Federal Funds ? Federal Funds are those funds which are deposited by the banks with the Federal Reserve to meet 'Bank Reserve Requirements' (In India, it is known as ' Cash Reserve Ratio '). Generally, it is a percentage of depo...

On Nov 27, 2014, the RBI (Reserve Bank of India) has issued " Guidelines for licensing of Payment Banks in India " & seeks application from the eligible applicants for setting up of Payment Banks. On Feb 04, 2015, RBI releases name of 113 applicants & out of which 41 was for Payment Banks, remaining for small finance banks . And out of 41, only 11 were selected by RBI. They are :- Aditya Birla Nuvo, Airtel M Commerce services, Cholamandalam Distribution Services, Department of Post, FINO Pay Tech, NSDL, Reliance Industries Ltd, Sun Pharma, Paytm, Tech mahindra & Vodafone (m-pesa). Cholamandalam Distribution Services, Sun Pharma, Tech mahindra have surrendered their licenses i.e, they are not operating now. Lets move to check what do you mean by a 'Payment Banks' & some other things to break the ice :- ⊶ What are Payment Banks ? It is a new business model of Bank framed by RBI . It has same features as of the normal bank...

⇛ What is NPA ? As per Reserve Bank of India (RBI),  an  asset , including a  leased asset , becomes  NPA  (non performing asset) when it  ceases to generate income  for the bank. It is a part of "Stressed Assets". Also check NPA & Special Mention Accounts  (in summary) ~ useful in Bank Audits. ⇛ What is Stressed Assets ? Stressed Assets = NPAs + Restructured Loans  + Write off Assets Till May, 2017 total stressed assets in the banking sector stands at more than Rs. 12 lacs crores . ⇛ How NPA ? There are few reasons for a loan which becomes NPA :- Crony Capitalisation :- It is the leniency by bank officials to corporates . You can also understand by this  ~ "the success of every business depends on close relationships between business people & government officials". Delay in Asset Quality Review (AQR). Bank's Board :- The role of bank's board should be assertive in their choic...

As per Reserve Bank of India (RBI),  an asset , including a leased asset , becomes NPA (non performing asset) when it ceases to generate income for the bank. BEFORE 2014 Also, it was defined as  a Credit Facility in respect of which the interest / installment of principal   has remained ' past due ' for a specified period of time. 'Past Due' means amount not been paid within 30 days . And it becomes NPA, if amount not paid within 90 days . FROM & AFTER 2014 As per the new guidelines (26/02/2014) of RBI, before a loan account turns into a NPA, banks are required to identify the stress into the account by creating 3 sub-categories under Special Mention Account (SMA) category . SMA Sub-Categories  # Revitalising Distress  Assets in the economy -- Guidelines on Joint Lender Forum (JLF) & Corrective Action Plan (CAP)

# What is Bitcoin ? As per Forbes, the money you have been using all your life is backed by a government of some sort, it exist in a tangible (which can be touched & feel) form. Bitcoin is neither tangible nor backed by anyone. It is a Digital currency (also known as Crypto-currency, a digital asset that exist only on data) launched in 2009 by a person or a group of people operating under the name "Satoshi Nakamoto". # Why Bitcoins ? Bitcoins are impossible to counterfeit. You can use them to send or receive any amount of money, with anyone, anywhere in the world at very low cost . Bitcoins payments are impossible to block & Bitcoins wallets can't be frozen . Bitcoin Wallet # Who uses Bitcoins ? Generally, the Techy persons & Hackers uses it to demand funds secretly. Bitcoin is a computer program , which is fast with no security checks (like OTP). But digital sign is necessary for every transaction. # Worth It ?...