DBC 2338 - Book Value

 

The Banking Tutor 

Daily Banking Concept -  2338 

Book Value 

A company’s book value equals the value of its assets remaining after accounting for its outstanding debts and other obligations.

BTL 867 - Urban Agglomerations (UA)

 

The Banking Tutor’s Lessons

BTL 867                                                                                06-02-2026

Urban Agglomerations (UA)

In India, an Urban Agglomeration (UA) is defined as a continuous urban spread consisting of a main town and its adjoining "outgrowths" (like university campuses or railway colonies), or two or more physically contiguous towns.

As of 2026, the primary classification and data remain based on the 2011 Census, which identified 475 urban agglomerations in India.

An Urban Agglomeration (UA) refers to a continuous urban spread consisting of a core city (or towns) together with its adjoining outgrowths or physically contiguous towns that have developed around it. It represents a large and integrated urban area formed due to the natural expansion of cities and the merging of nearby settlements as a result of population growth, industrialisation, and infrastructural development.

These regions are the primary drivers of India's economic growth and represent the largest concentrations of the urban population.

The Census further clarifies that:

An Urban Agglomeration must comprise at least one statutory town.

The total population of all the constituents (towns and outgrowths) should not be less than 20,000 as per the previous census.

Thus, an Urban Agglomeration is essentially a cluster of urban settlements that are physically and functionally integrated. 

Key Classifications

Urban Agglomerations are further grouped based on their population size:

Metropolitan Urban Agglomerations: (Mega Cities): UAs with a population of 10 million or more (Mumbai, Delhi, and Kolkata).

Class I Urban Agglomerations (Million Plus UAs): Areas with 1 million or more people; there were 53 such UAs as of the last census.

Medium and Small Urban Agglomerations (Class I UAs) : Areas with at least 100,000 residents.

Major Components

Core Town (Statutory Town) : A municipality, corporation, cantonment board, or notified town area with its own urban governance structure. It serves as the nucleus around which urban expansion occurs.

Outgrowth (OG): A viable urban unit that has developed outside the formal limits of a town but is physically contiguous with it, such as a military camp or industrial estate. Areas adjoining the main city or town that exhibit urban characteristics, such as- Developed residential colonies, Industrial estates, Railway colonies, Educational or institutional campuses.

These are located outside the statutory limits but are contiguous and dependent on the core city.

Census Town: A settlement that satisfies urban criteria (minimum 5,000 population, 75% male workforce in non-agriculture, and 400 persons/sq. km) but lacks a formal municipal government.

Contiguous Towns: Smaller towns that have grown physically close to the main city and merged into a single urban spread due to expansion.

Urban Agglomerations are important for urban planning and governance, as they highlight the spatial extent of urbanisation and the interconnected nature of modern cities and their surrounding areas.

Characteristics of Urban Agglomerations

Spatial Continuity: Consists of physically connected urban areas without rural gaps.

Functional Integration: The towns and outgrowths are linked through economic, social, and transport networks.

Population Density: High density due to concentration of industries, services, and housing.

Economic Centrality: The core city functions as a commercial, industrial, and administrative hub.

Infrastructural Linkages: Shared utilities like roads, water supply, waste management, and transport systems.

Administrative Overlaps: Multiple local bodies or authorities may govern different parts of the same agglomeration.

Importance of Urban Agglomerations

Economic Growth Engines:

Serve as centres of commerce, industry, and innovation.

Generate a significant share of national income and employment.

Urbanisation Indicators:

Reflect the intensity and spatial spread of urbanisation.

Integrated Infrastructure Planning:

Enable coordinated urban planning for housing, transportation, and public utilities.

Labour Market Expansion:

Attract large-scale migration and promote diversified employment opportunities.

Cultural and Educational Centres:

Host major educational institutions, cultural hubs, and service industries.

Challenges Associated with Urban Agglomerations

Urban Sprawl:

Unplanned expansion leads to environmental degradation and encroachment of agricultural land.

Inadequate Infrastructure:

Pressure on roads, housing, water supply, sanitation, and waste management systems.

Traffic Congestion and Pollution:

Increased vehicle use results in air pollution and mobility issues.

Informal Settlements:

Proliferation of slums and inadequate housing due to rapid migration.

Administrative Fragmentation:

Overlapping jurisdictions among multiple local bodies hinder coordinated governance.

Resource Inequality:

Economic disparities between the core city and peripheral areas.

Environmental Concerns:

Depletion of green spaces, rising waste levels, and water contamination.

Urban Planning and Policy Framework

To manage the growth of Urban Agglomerations, the Government of India has introduced several urban development initiatives:

Smart Cities Mission: Promotes sustainable and technology-driven urban infrastructure.

Atal Mission for Rejuvenation and Urban Transformation (AMRUT): Focuses on water supply, sewerage, and green spaces.

National Urban Policy Framework (NUPF): Provides guidelines for integrated regional urban planning.

Metropolitan Planning Committees (MPCs): Established under the 74th Constitutional Amendment Act for coordinated development of large agglomerations.

Master Plans and Regional Plans: Prepare long-term frameworks for land use, transport, and environmental management.

Significance in India’s Urbanisation

Urban Agglomerations are a key indicator of India’s urban transition, reflecting how cities expand beyond their administrative boundaries to form complex metropolitan regions. They play a pivotal role in:

Enhancing productivity through agglomeration economies.

Facilitating regional development and innovation clusters.

Strengthening national and global economic competitiveness.

However, sustainable management of these agglomerations requires integrated governance, inclusive urban policies, and investment in resilient infrastructure.

Sekhar Pariti

+91 9440641014

DBC 2337 - Equation of Exchange

 

The Banking Tutor 

Daily Banking Concept -  2337 

Equation of Exchange 

The equation of exchange is an economic identity that shows the relationship between the money supply, the velocity of money, the price level, and an index of expenditures. 

It says that the total amount of money that changes hands in the economy will always equal the total money value of the goods and services that change hands in the economy.

DBC 2336 - Weak Sister

 

The Banking Tutor 

Daily Banking Concept -  2336 

Weak Sister 

A "weak sister" describes the least dependable component in a process or group that can undermine the whole. The term is often used in finance to describe an underperforming investment, business, or even an economy that creates problems for stakeholders.

DBC 2335 - Consumer Packaged Goods

 

The Banking Tutor 

Daily Banking Concept -  2335 

Consumer Packaged Goods 

Consumer packaged goods (CPG) are everyday items that consumers use regularly and often replenish.

BTL 866 - Union Budget 2026

 

The Banking Tutor’s Lessons

BTL 866                                                                                03-02-2026

Union Budget 2026

In this Issue I am sharing Important points from Budget 2026 (only points related to Bankers from Exam/Interview point of view).

On the sacred occasion of Magha Purnima and the birth anniversary of Guru Ravidas, the Finance Minister said, as this is the first Budget prepared in Kartavya Bhawan, it is inspired by 3 kartavyas.

This is Yuva Shakti-Driven Budget emphasizes on Government’s ‘Sankalp’ to focus on poor, underprivileged and the disadvantaged.

The Budget is framed against a backdrop of global economic uncertainty, supply chain realignments, and evolving investment dynamics, while reaffirming India’s focus on sustained growth and fiscal discipline.

While presenting the Budget, the finance minister stated that the government aims to “transform aspiration into achievement and potential into performance.”

Three Kartavya (duties) guiding this year’s Budget

Accelerating and sustaining economic growth by enhancing productivity, competitiveness, and resilience amid volatile global dynamics.

Fulfilling aspirations and building capacity by strengthening human capital, skills, and institutional capabilities.

Advancing Sabka Sath, Sabka Vikas by ensuring equitable access to opportunities across regions, communities, and sectors. 

This year’s Union Budget underscores the importance of regulatory certainty, ease of doing business, and targeted reforms to attract long-term capital and deepen India’s integration with global markets.

Budget theme

Yuva Shakti–driven growth: Converting India’s demographic dividend into productive capacity through skilling, employment, and enterprise creation.

Champion SMEs and Micro Enterprises

Recognising MSMEs as a critical driver of employment, exports, and supply-chain resilience, the Budget introduces targeted measures to support their scale-up and formalisation.

Key initiatives include:

Creation of Champion SMEs through targeted equity, liquidity, and professional support

Enhanced access to capital and risk finance to support growth-oriented enterprises

Institutional support to improve compliance capabilities and operational efficiency, particularly for MSMEs in Tier II and Tier III locations 

Animation, Visual Effects, Gaming and Comics (AVGC) sector, and Creative Economy

The Budget recognises the growing role of the creative economy or the Orange Economy as a source of skilled employment and export potential.

Tax Reforms

Introduction of a simplified and modernised Income Tax framework, with redesigned rules and forms to reduce compliance complexity and improve ease of filing.

Tax holiday till 2047 for foreign companies providing cloud services using data centre infrastructure in India, aimed at strengthening India’s position as a global data centre and digital services hub.

Measures to reduce litigation and improve trust-based tax administration, including rationalisation of penalties, decriminalisation of minor offences, and integration of assessment and penalty proceedings.

Extension and rationalisation of safe harbour provisions, particularly for Information Technology and IT-enabled services, to provide greater certainty on transfer pricing and tax outcomes.

Targeted tax measures to support manufacturing, services, and export-oriented sectors, including incentives for data centres, cloud services, toll manufacturing, and bonded warehousing.

Reforms to support foreign investment and global mobility, including exemptions and simplified tax treatment for non-resident experts and foreign service providers operating from India.

Rationalisation of customs and indirect tax provisions to support energy transition, critical minerals, electronics manufacturing, and export competitiveness.

Continued emphasis on predictability, transparency, and stability in the tax regime, aimed at improving India’s overall investment climate and long-term investor confidence.

Customs reforms

Simplification of the customs tariff structure to support domestic manufacturing, promote export competitiveness, and correct duty inversion.

Phased removal of long-standing customs duty exemptions on items manufactured domestically or where imports are negligible.

Incorporation of effective rates from customs notifications directly into the tariff schedule to improve transparency and certainty for businesses.

Expansion of duty-free and concessional duty provisions to support export-oriented sectors, including marine products, leather, textiles, electronics, and energy transition technologies.

Enhanced trust-based customs systems, including extended duty deferment periods and greater facilitation for authorised and compliant importers, to enable faster clearance and reduced transaction costs.

Measures to improve customs processes through automation and risk-based assessments, supporting smoother movement of goods across borders and strengthening India’s trade facilitation framework.

Sekhar Pariti

+91 9440641014

Tail Notes

 

Kartavya Bhavan is a newly constructed, state-of-the-art government office complex in New Delhi, developed under the Central Vista Redevelopment Project. It serves as the primary component of the Common Central Secretariat (CCS), a unified campus designed to consolidate central ministries and departments that were previously scattered across aging colonial-era buildings like Shastri Bhawan and Nirman Bhawan. Strategically located on Janpath along the Kartavya Path (formerly Rajpath), near India Gate and the new Parliament House.

DBC 2334 - Credit Card

 

The Banking Tutor 

Daily Banking Concept -  2334

Credit Card 

A credit card is a plastic or metal card issued by a financial institution that allows cardholders to borrow funds to make purchases, with the obligation to repay the borrowed funds plus interest and fees.