Question

Currently, the banking sector in the Indian economy is facing lots of
problems. The rates of interest that banks are paying on deposits have
sharply decreased; as a result banks are able to collect lesser amounts of
deposits.
Due to the policies of the Reserve Bank of India, lending rates have also
decreased. The automobile industry is also facing a lot of problems and
thus they have also reduced the prices of cars. This has encouraged
people to take car loans from banks as the interest rates on loans, along
with prices of cars in the automobile sector are declining.
Due to this position of tight liquidity, ‘The Oberoi Bank Ltd.’ decided to
raise funds by issuing an unsecured, short-term instrument which could
be purchased by corporations, companies and individuals.
(a) Identify and explain the money market instrument used by ‘The
Oberoi Bank Ltd.’ to raise funds.
(b) Also explain the money market instrument used by the banks to
maintain Cash Reserve Ratio.

Answer 1

. Panchwati, a supplier from Nasik agrees to supply 100 crates of wine to Natwar Shah in Surat who pays an earnest money of Rs. 35,000. But there’s prohibition of alcohol in Gujarat and hence the supply of liquor is illegal. Can Mr. Shah sue the supplier for non-performance as well as get reimbursed