Forex Reserves

 The term ‘forex reserves’ is used to denote the foreign currency reserve of a central banks or governments of countries.

 So what goes into forex reserves? – Well, you could have foreign currency notes, deposits from foreign countries, foreign treasury bills other government securities etc.

 So basically forex reserves in a countries ‘reserve’ of money held in foreign currency or currency equivalent.

 Where does all the foreign currency come from? – from Exports, Foreign Loans, Grants, foreign investments in India – when tourists come to India!

 And the reserves are used to pay for imports, repay international loans and dues, or give international grants – when you go abroad!

 A country and its central bank has many international monetary obligations – forex reserves are used for that – when this reserve runs low the IMF or World Bank comes to rescue.

 Also a country’s strong forex position can impact its exchange rate and international trade relations!

 For India – most of the forex is used to pay for oil imports as you all probably know – so having a strong forex reserve is extremely important.

 Forex reserves are managed by the RBI in India.

Latest though, India is 9th on the list of countries with good forex position; list headed by China.

And even latest news on the forex reserves front is that, India’s forex reserves rose by $3.16 billion last week, so the current figure resides at $319.99 billion!

Which is like -$ 3,199,900,000! And the pundits are of the opinion that is it a comfortable position to be in. Well, who are we to argue!

All we can hope is that with the economic development envisioned for India in the coming years our forex reserves keep filling up!

TYPES OF BANK ACCOUNTS

1. Saving Account

2. Current Account

3. Recurring deposit Account

4. Fixed deposit Account

5. FCNR Deposit Account

6. NRO Account

7. NRE Account

Saving Account :

Saving accounts are opened by individuals in banks to save some share of their earnings .Main aim of saving account is to promote saving habit among individuals.

These saving accounts are opened on the name of individuals only.

On saving account an individual earns some rate of interest, these rate of interest varies from bank to bank ,earlier this rate of interest in fixed by RBI but now RBI has given power to banks to decide their own rate of interest on saving account .

This rate of interest is usually 4% but some private banks offering 6% rate of interest too.

When a person open a saving account he is provided with a passbook , ATM card , cheque book .

In saving accounts there is restriction a person can deposit or withdrawal money within month . Minimum deposit a individual has to maintain in account (In PSU banks) is Rs1000 or less as some bank offering zero balance accounts.