Managing the government’s banking transactions is the key role of the Reserve Bank of India (RBI). Like individuals, businesses and banks, governments need a banker to carry out their financial transactions in an efficient and effective manner, including the raising of resources from the public. As a banker to the central government, the Reserve Bank maintains its accounts, receives money into and makes payments out of these accounts and facilitates the transfer of government funds. RBI or Reserve Bank of India also acts as the banker to those state governments that have entered into an agreement with it. As a banker to the Government, the Reserve Bank receives and pays money on behalf of the various government departments. As it has offices in limited locations, the Reserve Bank appoints [...]

Everyone and their dog seem to be having dealings with online banks these days. Come to think of it, I’ve been using the same account for the last several years now and recently a number of online banks have asked me if I’d like to use an online checking account. I think the time is ripe for to check this out further and see if taking online banking to the next level is the thing for me. Perhaps in the course of my investigations I’ll even be able to figure out of it is the thing for you. There are several online banks out there and you can check out bankrate.com to find some high interest online savings accounts. But you will want to see more than just the interest rate and the APY; you will want to keep a handle on the minimum amount you have to deposit to open the account and any fees [...]

The International Monetary Fund (IMF) has reached upon a landmark agreement that will see membership being allowed to emerging economies that are powering the growth of the world economy. This represents better the growing shift of power from the west to the east as the western world struggles to post the kind of numbers that the eastern world is managing to churn out with such amazing consistency. The details of the deal reveal that a little more than 6% of the voting power at the International Monetary Fund will end up shifting towards developing nations that have better dynamics and growth prospects. The prime beneficiary of such a move are nations like China, which is all set to become the third-largest member of Washington based international lender that is a 187 nation strong. As an extension [...]

The year was 1913, and it was when the Federal Reserve was created in order to stem the impact of any financial panic that might arise in the markers. That goal took some time to be achieved, but the Federal Reserve did eventually grow into the force it was meant to be, albeit after World War II and with a lot of help from several parts of the federal government. In today’s times though the Fed seems to have lost its way; in the current scheme of things, and given how the current political and financial systems operate, its policies have only gone so far as to heighten the kind of senseless lending that brought upon us this current financial crisis. Towards the end of the 19th century, it wasn’t an uncommon thing to find a lack of confidence in the markets. The private sector was the engine [...]

Talk is dirt cheap, and every goes about shoveling it around freely. And inevitably, the most banter comes from large banks that are too large to fail, lest their death creates shock waves among those invested in the banks well-being. Time and again, as banks have started to show signs of dying out, it is the taxpayer who has borne the burden of offering emergency CPR to them. The easy option is to burden the creditors, but that simply has never been done. 2008 was a crazy time, and banks would pass each minute of the day in a cold sweat, not sure if their valuation and share prices would be halved in the next minute. Naturally, everyone even remotely involved with these banks tried to pull their cash out of the system. They just simply could not take the risk of their money just vanishing [...]

These are tough times, and tough times call for tough measures. In Greece, it is the government that has sunk the banking system, but over here in America it is the banking system that has crippled the government irrevocably. Enough is enough; all banks that aren’t fit enough or up to scratch should just be allowed to take their natural even if that means that they die away. “Oh, you heartless, pig-faced so and so; what of all the people that have their money invested? Will not the sinking of these banks also sink the economy?” A wise thought, and one that holds some merit indeed. But if you were to listen to William White… “Who?” Sigh. William White, the doomsday prophet that was formerly a chief economist with the Bank of International Settlements. It was way back in 2003 that [...]

Not many of you might support my views when I say banks should be governed properly, and there should be more government intervention to get banks under control. However, let us not come to any conclusion before discussing the topic elaborately. American economy, investments, currency, and future of our nation depend on how well we manage and run our financial system. In past, banks, in order to earn more profits, had taken steps that proved to be a big disaster. Yet, most banks show no remorse for economic crisis they were responsible for. And if they are left unchecked, it may lead to even worse situation. Where it All Stared? Introduction of Glass-Steagall Act after the Great Depression was one of the wisest steps taken by government, and it helped stable and grow the economy for more than [...]

Every entrepreneur requires capital to commence their business. Such financial assistance is provided by most lenders all around the country. These funds are extremely useful for business owners as it helps them to survive and expand. The availability of small business line of credit has help entrepreneurs to flourish considerably over the last decade. If your business is well established, you don’t have to take much pain to avail this loan. You wouldn’t be asked for any security or collateral. However, lenders ask for collateral in some cases, where they are unsure about the repayment ability of the borrower. If the credit score of the borrower, for instance, is quite low, or if the business is not well established, availing unsecured line of credit would be an intricate process. Around [...]

Services like credit cards, saving & checking accounts, loans, etc., are provided by banks and hence we choose to use their services. However, the services level ranges widely with every brand in the US. However, the decision of switching a bank or a bank account is influenced by number of factors. Higher Interest Rates This doesn’t necessarily mean only interest rates. I am talking about general monetary benefits offered by a bank. Though interest rate given by banks, which is 0.5% currently, is governed by the Fed to a larger extent, other benefits are not. Frugal people select a bank that offers $100 with every new account, or something like that. However, monetary benefits remain to be the most influential factor in switching a bank. Service level Most of us love exceptional customer [...]

Are you planning to save up for your retirement? Your Roth IRA account may offer you tax deductibles for you to save up a lot but the money saved may be well spent on other areas like too many bank accounts! Ask how? Banks charge fees for maintaining those accounts and you as a client lose out on a good amount of money paying up these fees. You might want to purchase a new car, a new washing machine or a sound system. One common strategy that we all apply when we don’t have enough money for a new household expenditure is to open a new account to save up money specifically for any new kind of expenditure that might crop up.  But maintaining so many small accounts is pretty expensive as many banks charge fees for maintaining accounts with low values. These accounts usually happen to be checking [...]

My son didn’t really need a checking account until he started going to college. It wasn’t a necessity when he was in high school because he wasn’t working. To cash the checks he used our checking account and kept all his savings in his closet. So, I didn’t bother about opening his bank account. Or rater, I didn’t allow him to do so. However, a month before he went to college, we planned to set up a checking account for him. We randomly picked up a bank and noticed that it offers excellent service in one category and poor in other. Same happened with the other pick. So, I and my son decided to jot down the list of services that would be quite helpful, convenient, and economical for Richard. That’s his name. Availability of ATMs in the university campuses so he can withdraw cash [...]

A 6 % on your checking account looks impossible when managing a 2- 3 %seems to be a difficult task right? Well, it might, but these days there are quite a number of community banks and credit card unions offering you that amount on your checking accounts. According to Randy Rosen, market researcher, Informa Research Services, reward accounts have now become very common, though they were offered by just a few companies before. You might think why reward checking programs are gaining popularity with banks. This is because of the symbiotic benefits that can be achieved by the banks as well as the account holder in such a situation. The bank benefits doubly with people who hold reward accounts than with people who hold normal accounts. This is because people with reward accounts maintain higher [...]