@JohnRennie Sir please tell me something about this

outline.com/SKsdAU

outline.com/gSH2JL

@JohnRennie Sir I googled but could not find the answer to the first country to declare itself corona free

I know the answer is Israel recently but which is the first one I do not know.

Sir are you there @JohnRennie

@JohnRennie Sir can we speak once?

@RajorshiKoyal hi, if you're still around it's your turn now.

Yes please answer in order.

> RBI cancels licence of West Bengal-based United Cooperative Bank

That I posted.

Start there?

Yes

Ok, some background first.

Yes

The way a bank works is that you give the bank your money and the bank gives it back whenever you want. Yes?

Yes

Then

But the bank doesn't just put your money in a vault and keep it there. The bank invests your money and tries to make a profit from those investments. Then it can give you back your money but keep the profit it made from the investments. That's how a bank makes money.

But ...

Suppose the investments go wrong and the bank loses money on them. Now it can't give back all your money because it has lost some of it.

It isn't just your money, but the money of all the thousands of customers who use the bank that may have been lost.

@RajorshiKoyal OK so far?

Ok

When a bank gets into this state the danger is that all the customers will rush to get their money back, and since the bank doesn't have that money the bank will go bust and lots of people will lose their money.

So typically when a bank looks as if this might be happening the government bank (the RBI in India) will intervene and shut the bank down. Then the government will repay all the bank customers.

The article is about this happening to the West Bengal-based United Cooperative Bank.

@RajorshiKoyal OK so far?

Ok

So do you want to go through the article now?

Not really it is alright there has been a mention of DIGIC here

Can you explain its role?

@RajorshiKoyal I said above that if a bank fails the government will repay the bank's customers so they don't lose money. Yes?

ok

But the money is lost right

Yes, so the lost money has to come from somewere.

Yes.

And it comes from DIGIC.

ok.

Does that happen for everybank?

DIGIC is like an insurance policy for banks. The banks have to pay DIGIC so much money a year, and DIGIC uses that money to pay the customers when a bank fails.

ok got it.

@RajorshiKoyal I'm not sure if it covers every bank.

ok got you

Please move to the next news.

I need a few minutes to answer another question ...

ok I will wait till you are back

@RajorshiKoyal hi

:-)

Please go ahead

> Jindal Steel share slips 7% post Q4 earnings

Yes what does this imply?

We need some background again.

Do the people pay for DICGIC or the bank

Please tell me this.

The banks pay for DIGIC.

ok. Why would the bank want this to happen I mean there is no advantage as such on the part of the bank.

How does the RBI work as a regulator?

Could you give me some insight?

It may be compulsory i.e. the RBI will not allow a bank to operate unless it pays DIGIC. I don't know how it works in India

ok.

But when will it cancel the license

I could not really follow this

I don't know how the RBI decides when a bank is in trouble and needs to be shut down.

ok..

Are we done with the two topics

I have a couple of more things to discuss

Please assist me with Q8.

I need to answer someone else next. I'll have to get back to you.

Though I need to go soon so it may have to wait until tomorrow.

ok as you wish.

But it would be great if you begin with my doubt tomorrow

Will that be possible?

@JohnRennie Sir

I try to answer an equal number of questions for everybody, but you ask more questions than anyone else so I end up having to not answer some of your questions.

But I will answer your question first tomorrow so decide what question is most important and ask it tomorrow morning.

Sure. So kind of you:-)

Q8 then the question with six flats..

OK. See you tomorrow :-)

@JohnRennie I am done with Q8 you may go ahead with the the other problem.

I am posting a clearer picture about the same.