Banking for Beginners

What is Currency depreciation According to the online platform Investopedia “Currency depreciation is a fall in the value of a currency in terms of its exchange rate versus other currencies. Currency depreciation can occur due to factors such as economic fundamentals, interest rate differentials, political instability, or risk aversion among investors.” It further says that “Countries with weak economic fundamentals, such as chronic current account deficits and high rates of inflation, generally have depreciating currencies. Currency depreciation, if orderly and gradual, improves a nation’s export competitiveness and may improve its trade deficit over time. But an abrupt and sizable currency depreciation may scare foreign investors.” What causes Currency depreciation Any depreciation in currency has big consequences for an economy more so in the context of a developing economy like India, as any major fluctuation may have a deep impact on health of the economy including balance of trad...

  The Mediation Act, 2023 (Act no 32 of 2023) which received the President’s assent on 14th September 2023 and was published in the Gazette of India on 15 th September 2023 has given a new dimension to the Alternate dispute resolution mechanisms in India.   So let us first understand what Alternate Dispute Resolution (ADR) is. Disputes arise when one party raises an issue concerning another party , generally through legal channels. This means that one party initiates legal proceedings against the other party. Under the   normal dispute resolution process, the matter is adjudicated by a court of law with an inherent right to appeal by the litigant who doesn’t accept the adjudication. The appellate process is also multi-layered with High Courts and the Supreme Court being Courts of Appeal. This long legal process delays the final resolution of the initial issue, with delays sometimes stretching to years and decades. As of the en...

In this blog, we shall discuss evolution of Debt Resolution process in India and provisions of three main debt resolution legislations. The blog is meant to present the subject in a nutshell, to any person who is interested in this subject. Debt resolution or settlement   is an arrangement whereby creditors settle their dues from the debtor / borrower for a certain reduced amount, which ensures that they are able to recover at least part of their dues as against the possibility of a total loss. Thus the process tries to protect and balance the interest of both creditors and debtors. Historical perspective Reference to the concept of debt resolution can be found in early Roman law doctrine of Cessio bonorum   (Latin for "surrender of goods"). It meant a voluntary action by a debtor to surrender goods   to the creditors . It did not include a discharge from liability unless the property ceded was sufficient for the purpose, but it secured the debtor from personal arrest. T...