DBC 2368 - Economic Bubbles

 

The Banking Tutor 

Daily Banking Concept -  2368 

Economic Bubbles 

An economic bubble is marked by rapid escalation in asset prices, often due to speculative behaviour, followed by a sharp contraction.

BTL 877 - UPI ATM (ICCW)

 

The Banking Tutor’s Lessons

BTL 877                                                                                09-03-2026

UPI ATM (ICCW)

A UPI ATM (also known as Interoperable Cardless Cash Withdrawal or ICCW) allows you to withdraw cash from an ATM by scanning a QR code with any UPI app, eliminating the need for a physical debit card.

Key Features & Limits

Cardless Access: You only need your smartphone with a UPI-enabled app (like Google Pay, PhonePe, or BHIM).

Withdrawal Limit: The maximum limit is ₹10,000 per transaction, which is part of your existing daily UPI limit.

Enhanced Security: Reduces risks like card skimming or cloning since no physical card is used.

Interoperability: You can withdraw cash from any participating bank's ATM regardless of where you hold an account.

How to Withdraw Cash

Select Option: On the ATM screen, select "UPI Cash Withdrawal".

Enter Amount: Type in the amount you wish to withdraw (up to ₹10,000).

Scan QR: A dynamic QR code will appear on the ATM screen. Scan it using your UPI app.

Authorize: Confirm the amount on your phone and enter your UPI PIN.

Collect Cash: Once authorized, the ATM will dispense the cash. 

Important Updates (As of March 2026)

Transaction Charges: Starting April 1, 2026, banks will count UPI-based withdrawals within your monthly free ATM transaction limit.

Fees: Exceeding the free limit (typically 3–5 transactions) will incur a fee of ₹23 plus taxes per transaction .

UPI Cash Deposit: The RBI has also introduced UPI-ICD (Interoperable Cash Deposit), allowing you to deposit cash into any bank

Sekhar Pariti

+91 9440641014

DBC 2367 - Underapplied Overhead

 

The Banking Tutor 

Daily Banking Concept -  2367 

Underapplied Overhead

 

Underapplied overhead occurs when a company's actual overhead costs exceed its budgeted amounts, creating an unfavourable variance.

DBC 2366 - Participatory Notes

 

The Banking Tutor 

Daily Banking Concept -  2366 

Participatory Notes 

Participatory notes, known as P-notes or PNs, enable investors or hedge funds not registered with the Securities and Exchange Board of India (SEBI) to invest in Indian securities.

BTL 876 - Financial Devolution

 

The Banking Tutor’s Lessons

BTL 876                                                                                06-03-2026

Financial Devolution

In public finance, devolution is the statutory transfer of powers, responsibilities, and financial resources from a central government to subnational (state, regional, or local) authorities. 

Devolution is often summarized as the transfer of "Funds, Functions, and Functionaries": 

Funds: The allocation of financial resources, including tax-sharing and grants. 

Functions: The legal authority to manage specific sectors like education, health, or local infrastructure. 

Functionaries: The transfer of administrative personnel to carry out these duties at the local level. 

Types of Fiscal Devolution - In federal systems like India, the Finance Commission (a constitutional body under Article 280) recommends how central taxes are shared: 

Vertical Devolution: The distribution of tax proceeds (income tax, GST, corporation tax) from the Union to the States, set at 41% by the 15th and 16th Finance Commissions. 

Horizontal Devolution: The allocation of this 41% pool among different states based on criteria like income distance, population, forest cover, and area.

Criteria: Factors include Income Distance (weighting poorer states higher), Population, Forest and Ecology, and Demographic Performance (rewarding population control).

Sekhar Pariti

+91 9440641014

DBC 2365 - Layoff

 

The Banking Tutor 

Daily Banking Concept -  2365 

Layoff 

A layoff is the involuntary termination of an employee's job, typically for reasons unrelated to the employee's performance, such as cost-cutting or organizational changes.

DBC 2364 - Brokerage Account

 

The Banking Tutor 

Daily Banking Concept -  2364 

Brokerage Account 

A brokerage account is an investment account held at a licensed brokerage firm.