Thursday, 30 January 2014

Reverse Repo Rate

By Definition, Reverse Repo Rate is the Rate at which the Central Bank of the Country borrows Money from the Commercial Banks of the Country, in Exchange for Securities. In other Words, it is the Rate at which Commercial Banks can park their excess Money with the Central Bank of the Country.

It is another Monetary Policy Instrument like the Repo Rate which is used to control the Money supply in the Country. 

A Decrease in this Rate can Increase the Money supply as it will deter the Commercial Banks to park their Money with the Central Bank. Similarly, an Increase in the Rate will encourage the Banks to do the same.

A Reverse Repo Rate is always lower than the Repo Rate


Pragya Banerjee
MBA (Finance); 7+ years of work experience

Wednesday, 29 January 2014

Repo Rate

A Repo Rate is an Instrument of Monetary Policy. It is defined as "the Rate at which the Reserve Bank of India (RBI) lends Money to Commercial banks". Similar kind of Rate is termed as 'Discount Rate" in United States.

RBI uses Repo Rate or Reverse Repo Rate to increase or decrease the Liquidity in the Market. Repo rate is also known as the 'Key Short Term Lending Rate'. It is a Short Form of 'Repurchase Option'.

Repo rate is a Facility for Commercial Banks to Borrow Money from the Central Bank against Securities, in case they are short of Funds at any Time. If the Central Bank wants to increase the Money Supply in the Market, it decreases the Repo Rate. If it wants to Contract the Money Supply, it increases the Repo Rate. Also, a reduction in Repo Rate helps Banks to get Money at a Cheaper Rate.  

A Repo Rate is always higher than Reverse Repo Rate. I will tell about Reverse Repo Rate in following Posts. 

Friday, 24 January 2014

Initial Public Offering (IPO)

An Initial Public Offering (IPO) is a First Time Stock Market Launch of a Private Company to become Public. In this process, the Shares of a Stock of a Company are sold to the general Public, for the First Time.  

An IPO is generally issued by a smaller or younger Company but sometimes large Enterprises also go this way. 

The Company which offers its Shares is known as the 'Issuer'. It does so with the help of Investment Bankers. After an IPO is launched, the Company gets Listed and its Shares start Trading on Stock Exchanges. These can further be Traded by Investors through the Secondary Market. 



Monday, 20 January 2014

What is Real Happiness?

The below Short Story is doing the Rounds on the Net:

‘There was once a Businessman Mr. Richard who was sitting by the Beach in a Small Brazilian Village of Camocim in Ceara State. As he sat, he saw a Brazilian Fisherman Aaron rowing a small Boat towards the Shore having caught quite a few Big Fish.

Mr. Richard was impressed and asked Aaron, “How long does it take you to Catch so many Fish?”

Aaron replied, “Oh, just a Short while.”

“Then why don’t you stay longer at Sea and Catch even more?” Mr. Richard was astonished.

“This is enough to Feed my whole Family,” Aaron said.

Mr. Richard then asked, “So, what do you do for the rest of the Day?”

Aaron replied, “Well, I usually Wake up early in the Morning, go out to Sea and Catch a few Fish, then go back and Play with my Kids. In the Afternoon, I take a Nap with my Wife, and Evening comes, I join my Buddies in the Village for a Drink — we Play Guitar, Sing and Dance throughout the Night.”

Mr. Richard offered a suggestion to Aaron.
“I am a PhD in Business Management. I could help you to become a more Successful Person. From now on, you should spend more time at Sea and try to Catch as many Fish as possible. When you have saved enough Money, you could buy a bigger Boat and Catch even more Fish. Soon you will be able to afford to buy more Boats, set up your own Company, your own Production Plant for Canned Food and Distribution Network. By then, you will have moved out of this Village and to Sao Paulo, where you can set up HQ to manage your other Branches.”

Aaron continues, “And after that?”

Mr. Richard laughs heartily, “After that, you can live like a King in your own House, and when the Time is Right, you can go Public and Float your Shares in the Stock Exchange, and you will be Rich.”

Aaron asks, “And after that?”

Mr. Richard says, “After that, you can finally Retire, you can move to a House by the Fishing Village, wake up early in the Morning, Catch a few Fish, then return Home to Play with Kids, have a nice Afternoon Nap with your Wife, and when Evening comes, you can join your Buddies for a Drink, Play the Guitar, Sing and Dance throughout the Night!”

Aaron was puzzled, “Isn’t that what I am doing now?”

'Happiness' has different meanings for different People. For some, Happiness means Money, for others it means Playing with Children and Family; for others it means getting Name & Fame, for others it means Planting a Small Tree.  

The Term, Happiness, is defined as a Mental or Emotional State of well-being characterized by Positive or pleasant Emotions ranging from Contentment to intense Joy.  

In the present day World, the Happiness Quotient is getting measured by Material Gauge. As People are becoming Richer day-by-day, they are automatically being rated as Happy. But is it really the Fact? Does Richness define Happiness? 

Money can enable you to Feed, Clothe and Shelter yourself. But, once you are able to achieve these, each extra Dollar does not make much of a difference. As-soon-as these Basic necessities are met, Money only boosts Happiness if you have more than your Friends, Relatives, Colleagues and Neighbours. So, there is definitely a limit to which Money can make us Happy.

There is a Term called as ‘Aspiration Gap’. It means the Gap between what People already have and what they aspire to have. To everybody's amazement, Studies have found this Aspirational Gap to be Inversely Proportional to Happiness. It has shown that the Larger the Gap, the less happier People are and vice versa. 

a) This explains why we are never satisfied with our Salary increases. 

b) This explains why our List keeps on becoming Longer, even when we acquire the Goods we desire. 

c) This explains why we are never satisfied and why the Good Life always remains out of our reach.

Some say that Intelligent People are happier. But, Studies have found that Brighter People expect from themselves and are thus dissatisfied with anything less than the Best. So, actually True Happiness has nothing to do with Intelligence or Smartness.

Now, let us just Sit Back and analyse. 

Weren't you Happy when your Kid ran to you lovingly after you came Home after a hard Day of Work?

Weren't you Happy when you saw a small Cute Child Talk in his cutish Language? 

Weren't you Happy when you saw a Sparrow hopped on your Window and was trying to get inside? 

Weren't you Happy when you saw your Nation’s Flag fly high?

Weren't you Happy when you heard your Favourite Song running on the Radio and started humming it? 

Weren't you Happy when your Dog started wagging its Tail when it saw you at a Distance?

Weren't you Happy when you saw a Child help an Old Woman cross the Road? 

Weren't you Happy when your Mother cooked your Favourite Food after you went to your Hometown after a long Time?

Weren't you Happy when you saw a few Droplets of Rain falling on Dry Earth or when you saw a Flock of Birds fly high on the Sky freely?

I bet, you were. 

It has been discovered by many that Happiness is neither a Dream you achieve nor a Place you Visit. Happiness is only Happiness. We get it from small small Things. We can feel and sense it in our Surroundings. 

It is not to be summarized that we should not desire for Good things or aspire for more. In fact we must. That is the rule to Progress in Life. But, we should not attach ourselves to Success or Failure emotionally. Our innate feeling of ‘Happiness’ is much bigger than all this and we should not let such outside Factors dictate our lives. 

Real Happiness is within us and if we keep our Hearts open, we will find it near us and everywhere around us.

“Being happy doesn’t mean that everything is perfect. It means that you have decided to look beyond the imperfections.”

"We tend to forget that happiness doesn't come as a result of getting something we don't have but rather of recognizing and appreciating what we do have."  

“Happiest people don’t necessarily have the best of everything; they just make the best of everything they have.”

In the end, Happiness is just a state of mind.



Friday, 10 January 2014

25 Road Safety Guidelines

It is not uncommon Today to hear about some Accident or another on a Daily basis. Everyday the 'City' part of the Newspapers are Half Full of it. Sometimes there are some Big Accidents which make the National Headlines.  

Whenever we start from our Houses, there is a slight uneasiness amongst all of us and there is a small Prayer to God to send us back Home Safe & Sound. 

In this uncertain scenario, where there is no guarantee to Life, yet there is a small something which we can do from our side. And that is - Follow Traffic Rules.

I am listing out 25 Important Road Safety Guidelines which each of us need to follow, not only for our Safety but for the Safety of others too:

1) No Mobile Phones while Driving, whether Two-wheeler or Four-wheler.

2) Always wear Seat Belt when in Four-wheeler. This goes for both the Driver & the front Seat Passenger.

3) Always wear Helmet when riding a Two-wheeler.

4) Drive/ Ride only when you have a proper License.

5) Don't Drink & Drive - This is Important not only to prevent you from any untoward happening but also to prevent other innocent people to suffer because of your irresponsibility.

6) Don't Overspeed.

7) Take extra care when near Schools, Hospitals and Pedestrian Crossings.

8) Always obey Traffic Signals & Signs.

9) During Night, ensure both your Headlights are on. Don't Ride/Drive in Night if the Headlight is not functioning.

10) Keep your Headlights at a level so that the Vehicles coming from Front shouldn't get blanked out. 

11) On water-clogged Roads, be slow & careful of bumps and Stones. 

12) Take a Break if you are tired of Driving for long. Don't overexert yourself..... it is better to be late than never. 

13) Always keep some gap between your and the front Vehicle.

14) Always keep a First Aid Box in the Vehicle.

15) Anticipate other Road users too.

16) Be careful while Overtaking.

17) Always Walk on a Pavement and when Crossing a Road, use Zebra Crossing or Cross from a Safe place.

18) Try not Crossing the Roads at Bends since neither you can see the Vehicles coming nor the Vehicle Drivers can see you. 

19) See your Right,Left & Right again carefully before Crossing a Road. 

20) Cross, don't Run & keep a Watch on Traffic.

21) When you are in a Public Transport, wait for it to Stop completely before alighting. 

22) Don't catch Running Bus or Train.

23) Do not take out any part of your Body while in a Moving Vehicle and prevent your Children from doing the same.

24) Avoid Climbing on Overloaded Vehicles and do not Overload your Vehicle too.

25) Last but not least, please be considerate & help Accident Victims if you spot any on your way. 

Be responsilble Citizens and respect yours' as-well-as others Life.


Pragya Banerjee
MBA (Finance); 7+ years of work experience

Wednesday, 1 January 2014

Daily Skin Care Tips

Skin is our Body’s most Beautiful Organ. Like we are concerned about our other vital Organs, we need to be as concerned about our Skin too.

Here are some basic Tips to get a Beautiful, Younger & glowing Skin:

a) Protection from the Sun: We all are aware about the harmful Ultra-violet (UV) Rays coming from the Sun and what effects it can have on our Skin. Prolonged exposure to UV Rays is not only harmful but can cause extreme Ailments like Skin Cancer!!! This has been most experienced in Countries like Australia where many cases of Skin Cancer occur due to exposure to Sun.

Besides Cancer, some other Skin Problems which are common are Tanning, Wrinkles, Aging, Breakouts etc.
For Protection,
• Wear a minimum SPF 15 Sunscreen every Two Hours. If you are Swimming or Perspiring, use the Cream a little more often.     

• The Sun’s Rays are strongest between 1000 hrs to 1600 hrs. Avoid them during this Time as much as possible.

• Wear protective Clothing, especially if Riding or Walking on a Sunny Day. Wear Sun-protection Gloves for Hands. Cover your Face properly. Always Walk under an Umbrella during Afternoons.

b) Smoking – a complete no-no: Besides having well-known Negative Health effects, Smoking also contributes to Wrinkles and makes the Skin look Older. It narrows the Tiny Blood Vessels in the outermost Layers of the Skin, which decrease Blood Flow. This depletes the Skin of Oxygen and other Nutrients which are vital for its Health.
The best protection from this is Quit Smoking. Have a will-power for the same or take the help of a Doctor if you are unable to do it on your own.
c) Gentle Care:
• Limit your Bath Time and use warm Water instead of Hot.

• Don’t use strong Soaps. Instead use mild Cleansers. Using strong Soaps & Hot Water removes essential Oils from the Skin.

• Gently pat Dry your Skin so that Moisture remains inside.

• Use a Moisturizer after Bath, according to your Skin type. If you are staying in a Hot Climate like North India, then this process is not required in Summers as the Skin is naturally moisturized through Perspiration.

Apart from the above, maintain your Skin Hygiene. Wash your Face with a good Face Wash (as per your Skin Type) twice a Day. Whenever you come home from Pollution, take out 5 Minutes to Cleanse your Skin with a good Cleanser, Wash the Face and Moisturize. Always remember to take out Make-up and Cleaning your Skin before going to Sleep no matter how tired you are.
d) Healthy Diet:  This is the Best Mantra. Eat plenty of Fruits, Green Vegetables, whole Grains etc. Drink lots of Water as it flushes out Toxins from the Body. A Diet Rich in Vitamin C helps in getting a younger looking Skin.

e) Don’t take stress: More than we can imagine, Stress does take a toll on our Skin. Although its quite difficult in the present day World, but try to take steps to handle Stress. Set reasonable limits for yourself and don’t stretch your Physical and Mental limits. Do what you Enjoy and take out Time with your Family or whatever you Love. This will surely have a surprising effect on your Skin.
The above Steps are Simple but give wondrous Results when applied.  Make them a part of your Daily Routine and you will be amazed with the Results which your Skin will offer.

Pragya Banerjee
MBA (Finance); 7+ years of work experience