Stock Market

On the opposite hand, the CAR number is low, as they just match the minimal necessities stated by the RBI. When a financial institution borrows Rs. 100, it does not lend the whole Rs. one hundred. There are many guidelines and regulations, made by the RBI, owing to which the financial institution has to also some a half of the money in the Government securities as nicely. One ought to always know what are the assets to the financial institution and what are the liabilities of the financial institution. The bank has to pay curiosity on the borrowed cash and it earns curiosity on the money it has lent.

Khaterine William

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