Economy

A deflationary gap, also known as a recessionary gap or negative output gap, occurs when an economy's actual output is below its potential output, indicating that there is insufficient aggregate demand to fully utilize all available resources and achieve full employment. This situation leads to lower prices and potentially higher unemployment.

The act covers various aspects of payment systems, including bank transfers (NEFT, RTGS, IMPS), card networks (Visa, MasterCard, RuPay), digital wallets (Paytm, PhonePe), UPI, and more

An inflationary gap occurs when an economy's actual production (real GDP) exceeds its potential production (full-employment GDP), indicating excessive demand and leading to price increases.

This excess demand causes businesses to raise prices, resulting in demand-pull inflation.

Essentially, the economy is operating above its capacity, leading to a s... See more

The PSSA 2007 in India refers to The Payment and Settlement Systems Act, 2007. This act was enacted to regulate and supervise payment systems in India and to designate the Reserve Bank of India (RBI) as the responsible authority.