Organizations which assess the credit-worthiness of corporate and government bonds e.g. Standard and Poor's (S&P), Moody's and Fitch. Many of these agencies also rate different economies on credit-worthiness. A good rating implies low interest rates for the borrower while the converse would be true if the rating is bad. Rating agencies were heavily criticized following the 2007-2009 credit crisis for issuing misleading ratings, especially for certain derivatives, and there have been calls for reforms.
In the Indian context, major credit agencies are CIBIL (Credit Information Bureau of India Ltd.), CARE and ICRA.
A settlement system based on the immediate payment for a transaction, which does not take account of balancing payments in the reverse direction. Its major merit is that it protects against default by the debtor.
In India, almost all public sector and private banks offer this service, using which one can transfer money to another account in some other city within hours.
A sharp slowdown in economic growth rate or a small decline in economic activity, as different from a slump or depression which is a more severe, prolonged downturn. Recessions are a necessary feature of a business cycle. Arithmetically, two successive declines in Gross Domestic Product growth rate would make for a recession.
The rate at which the Reserve Bank of India lends money to Commercial Banks for short-term liquidity needs. Normally, the banks have to provide government securities or gilts as collaterals to get such a facility. The gilts are later bought back by the borrowing bank upon repayment of the loan.
An index of the prices of goods and services to measure the inflation rate or the cost of living. The RPI is a much more reliable indicator of inflation at the grassroot levels. But in India, it is rarely used because the time lag between its calculation and disclosure is so large that it becomes redundant.