Unit 2

Noida Institute of Engineering and Technology,
Greater Noida
Financial Institutions
Unit: II
Subject Name:
Faculty Name
Indian Financial Market and Services
Dr. Mohd Iftikhar
Course Details Assistant professor
(MBA 3rd Sem.) Department-MBA
Faculty Name: Mohd Iftikhar Subject code and abbreviation: AMBA FM 0313 IFMS Unit Number::II
1
03/19/2024
Index/Content
S. No. Index
1. Name of Subject with code, Course and Subject
Teacher
2. Brief Introduction of Faculty member with
Photograph
3. Evaluation Scheme
4. Syllabus
5. Branch wise Application
6. Course Objective(s)
7. Course Outcome(s)
8. Program Outcomes (PSOs)
9. Cos and POs Mapping
Faculty Name: Mohd Iftikhar Subject code and abbreviation: AMBA FM 0313 IFMS Unit
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Number::II
Index/Content
S. No. Index
10. Program Specific Outcomes (PSOs)
11. Cos and PSOs Mapping
12. Program Educational Objectives (PEOs)
13. Result Analysis
14. End Semester Question paper Templates
15. Prequisite/Recap
16. Brief Indtroduction about the Subject with Videos
17. Unit Contents
18. Unit Objectives
19. Topic Objectives/Topic Outcome
03/19/2024 Faculty Name: Mohd Iftikhar Subject code a 3

nd abbreviation: AMBA FM 0313 IFMS U
Index/Content
S. No. Index
20. Lecture related to topic
21. Daily Quiz
22. Weekly Assignment
23. Topic Links
24. MCQs
25. Glossary Questions
26. Old question papers
27. Expected Questions
28. Recap of unit
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Noida Institute of Engineering and Technology, Greater Noida
Ms. Taru Maheshwari

Assistant professor
Department-Management Studies
Email-Id: taru.maheshwari@niet.co.in
Qualification: B.Com, MBA, UGC-NET & Ph.D in Finance(Pursuing)
Specialization: Finance
Total Teaching Experience: 15 Years
Teaching Area: Accounting & Finance
5
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Noida Institute of Engineering and Technology, Greater Noida
6
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Syllabus
UNIT I: Structure of Indian financial system (6 Hours)
• Structure of Indian financial system: An overview. Theories
of the Impact of financial development and savings; Prior
saving theory, Credit creation Theory, Theory of forced
savings, Financial regulation theory, Financial liberation
Theory.
UNIT II: RBI & Financial Institutions (10 Hours)
• Reserve Bank of India: organization, management and
functions, Recent monetary policy of RBI, Commercial banks:
meaning, functions, present structure, types, e-banking and
recent developments in commercial banking, NBFC, Sectorial
financial institution NABARD, Exim Bank and PFC
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Unit Number::II
Syllabus
UNIT III: Indian Financial Markets (8 Hour)
• Money market: meaning, constituents, functions of money
market, Money market instruments: call loans, treasury bills,
certificates of deposits, commercial bills, trade bills, Recent
trends in Indian money market, Capital market: primary and
secondary markets, their role recent developments, Government
securities market, SEBI: objectives and functions.
UNIT IV: Microfinance Development (8 Hours)
• Overview of micro finance; Types of micro finance; Income
generating activities and Micro Enterprise Market (demand)
analysis, Technological analysis, Socioeconomic analysis,
Environmental analysis. Logical framework, Implementation &
Monitoring Credit Delivery Methodology; Strategic Issues in
Microfinance: Sustainability.
Unit Number::II
Syllabus
UNIT V: Principles and Practice of Insurance (7 Hours)

• Principles and Practice of Insurance-Introduction to Risk and
Insurance, Types of Insurance-General and Life, Basic
principles of General and Life Insurance, Insurance contracts-
Regulations on investments (IRDA), Costing and pricing of
insurance products, Insurance Premiums & Riders, maturity
& Claims.
03/19/2024 Faculty Name: Mohd Iftikhar Subject code and abbreviation: AMBA FM 0313 IFMS Unit Number::II 9
Branch wise Applications
• This course will help-
• To understand and apply the concepts in banking industries
and NBFCs.
• To understand and apply the concepts in capital market and
money market .
• To understand and apply the concepts in insurance
industries.
• To understand and apply the concepts in microfinance
industries.
Course Objectives
CO 1. Impart knowledge of the Financial System of India, the role
of Financial Institutions, Financial markets and Financial
Instruments.
CO 2. Aware the students’ with the mechanism of Commercial
Banking, its Operations, Instruments Regulations etc.
CO 3. Help the students in acquiring analytical skills in the Money
and capital Market in the context of raising medium and long
term Funds
CO 4. Aware the students with the Microfinance as a growing
source of Financial mechanism
CO 5. Develop an appreciation among the students for Insurance
products.
Unit Number::II
Course Outcomes
1. Recognize the functioning and working of various financial
institutions in India thus in turn connecting it to the working
of Indian economy.
2. Interpret the knowledge about the banks, working of
various financial instruments in the primary and secondary
market in India as well as foreign market.
3. Classify about the working of micro finance instruments in
India as well as foreign market.
4. Interpret the knowledge about the banking industry and
demonstrate the various market demand analysis
5. Understand the various insurance products and its
regulations.
Unit Number::II
Program Outcomes
PO 1. Apply knowledge of management theories and practices
to solve business problems.
PO 2. Foster analytical and critical thinking abilities for data-
based decision making.
PO 3. Ability to develop value based leadership ability.
PO 4. Ability to understand, analyze and communicate global,
economic, legal and ethical aspects of business.
PO 5. Ability to lead themselves and others in the achievement
of organizational goals, contributing effectively to a team
environment.
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Number::II
CO-PO Mapping
PO PO1 PO2 PO3 PO3 PO4 PO5

CO
CO1 H L M L
CO2 L H M L M
CO3 M M L
CO4 M H M L
CO5 L M L H H
Average 1.4 1.4 1 1 1.2 1.6
Program Specific Outcomes(PSOs)
Not Applicable
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Cos and PSOs Mapping
Not Applicable
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Program Educational Objectives (PEOs)
PEO 1: Graduates of the Management program will have conceptual
knowledge, to adapt to the rapidity changing environment, learn
new skills and demonstrate application of management principles
in a professional work setting.
PEO 2: Graduates will apply appropriate tools for decision making
required for solving complex managerial problems in the local
global context.
PEO 3: Graduates of the Management program will exhibit integrity,
social responsibility and teamwork.
PEO 4: Graduates will exhibit ethics, communication skills,
leadership qualities and entrepreneurial mindset using creativity
and innovation.
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Result Analysis
Subject Total
Name & No.
Code Of Pass 40>65 65>75 75>90 90 & Averag
Stude % (%) (%) (%) Above Backlog e
nts (%) Marks
IFM&S 41 100% 0 1 39 1 0 84
(AMBA
FM
0313)
2020-22
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Number::II
End Semester Question Paper Template
Faculty Name: Mohd Iftikhar Subject code and abbreviation: AMBA FM

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0313 IFMS Unit Number::II

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Prerequisite and Recap
• Financial system in India

• Different types of theories
• Various financial institutions
• Structure of money market
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Brief Introduction about the subject with videos
• https://youtu.be/p1KD-Y1e2Hg
• https://youtu.be/qqy7dSB9jcg
• https://youtu.be/epg4R7J-3Fg
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Content
• Indian financial system

• Money Market
• Capital Market
• Instruments of money market
• SEBI
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Unit Objective(s)
• To impart knowledge of the financial system of India

• To enable the students to understand the concepts of
the role of monetary policy
• Role of RBI
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Course Outcome
• Recognize the functioning and working of various financial

institutions in India in turn connecting it to the working of
Indian economy.
• Interpret the knowledge about the working of various financial
instruments in the primary and secondary market in India as
well as foreign market.
• Banking system in India

• Theories on savings and investment
• Prior savings theory- Samuelson
• Credit creation theory- Kalecki and Schumpeter
• Theory of forced savings- Keynes and Tobin
• Financial regulation theory- Stiglitz
• Financial Liberalisation theory- Mckinnon and Shaw
Topic Mapping with course outcomes
Mapping
Unit- So. Topic Course Level
II No. Outcomes
II Reserve Bank of India CO1 Medium

1 Origins of the Reserve Bank of CO2 High
India
Functions of the Reserve Bank CO1 High
2 Branches of RBI across the CO3 Low
country
Formulate monetary policy CO2 High
3 CO4 Medium
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Topic objectives
• Students will be able to know the following concepts:

• Reserve Bank of India
• Origins of the Reserve Bank of India
• Functions of the Reserve Bank
• Branches of RBI across the country
• Formulate monetary policy
Reserve Bank of India
Reserve Bank of India
•The origins of the Reserve Bank of India can be traced to 1926,
when the Royal Commission on Indian Currency and Finance – also
known as the Hilton-Young Commission – recommended the
creation of a central bank for India to separate the control of currency
and credit from the Government and to augment banking facilities
throughout the country.
•The Reserve Bank of India Act of 1934 established the Reserve
Bank and set in motion a series of actions culminating in the start of
operations in 1935. Since then, the Reserve Bank’s role and
functions have undergone numerous changes, as the nature of the
Indian economy and financial sector changed.
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Origins of the Reserve Bank of India
 1926: The Royal Commission on Indian Currency and
Finance recommended creation of a central bank for
India.
 1927: A bill to give effect to the above recommendation
was introduced in the Legislative Assembly, but was later
withdrawn due to lack of agreement among various
sections of people.
 1933: The White Paper on Indian Constitutional Reforms
recommended the creation of a Reserve Bank. A fresh bill
was introduced in the Legislative Assembly.
 1934: The Bill was passed and received the Governor

General’s assent
 1935: The Reserve Bank commenced operations as India’s
central bank on April 1 as a private shareholders’ bank
with a paid up capital of rupees five crore (rupees fifty
million).
 1942: The Reserve Bank ceased to be the currency issuing
authority of Burma (now Myanmar).
 1947: The Reserve Bank stopped acting as banker to

the Government of Burma.
 1948: The Reserve Bank stopped rendering central
banking services to Pakistan.
 1949: The Government of India nationalised the
Reserve Bank under the Reserve Bank (Transfer of
Public Ownership) Act, 1948.
• Starting as a private shareholders’ bank, the Reserve
Bank was nationalised in 1949. It then assumed the
responsibility to meet the aspirations of a newly
Functions of the Reserve Bank
• The functions of the Reserve Bank today can be
categorised as follows:
 Monetary policy
 Regulation and supervision of the banking and non-
banking financial institutions, including credit
information companies
 Regulation of money, forex and government securities
markets as also certain financial derivatives
 Debt and cash management for Central and State
Governments
 Management of foreign exchange reserves
Formulate monetary policy

• Maintain price stability and ensuring adequate flow of credit
in the economy.
• It formulates implements and monitors the monetary policy.
• Instruments: qualitative & quantitative.
• Quantitative Measures
• Quantitative Measures “BANK RATE” also called “Discount
Rate”.
• It also includes “Repo Rate”.
• “Open Market Operations” buying and selling of government
securities.
• “Variable Reserve Ratio” it includes C.R.R and S.L.R
• Qualitative Measures
• 1. Direct Action
• 2. Moral persuasion
• 3. Publicity
• Bank Rate: Bank rate, also known as discount rate in
American English, is the rate of interest which a central bank
charges on its loans and advances to a commercial bank.
• Repo Rate: Repo rate refers to the rate at which commercial
banks borrow money by selling their securities to the Central
bank of our country
• CRR: Under cash reserve ratio (CRR), the commercial banks
have to hold a certain minimum amount of deposit as
reserves with the central bank. The percentage of cash
required to be kept in reserves as against the bank's total
deposits, is called the Cash Reserve Ratio.
SLR: Statutory Liquidity Ratio or SLR is a minimum percentage of
deposits that a commercial bank has to maintain in the form
of liquid cash, gold or other securities. These are not reserved
with the Reserve Bank of India (RBI), but with banks
themselves.
• Moral persuasion : the process in which the central bank
requests or persuade the commercial banks to comply with
the general monetary policy of the central bank is called a
moral suasion.
• Direct Action: This method is adopted when some
commercial banks do not co-operate with the central bank in
controlling the credit. Thus, central bank takes direct action
against the defaulter. The central bank may take direct action
in a number of ways as under.
• Publicity: This published information can help commercial
banks to direct credit supply in the desired sectors. Through
its weekly and monthly bulletins, the information is made
public and banks can use it for attaining goals of monetary
policy.
Daily Quiz
1. Every financial market has the following characteristic:
A) It determines the level of interest rates. B) It allows common stock
to be traded. C) It allows loans to be made. D) It channels funds
from lenders-savers to borrowers-spenders.
2. Financial markets have the basic function of
A) bringing together people with funds to lend and people who want to
borrow funds. B) assuring that the swings in the business cycle are less
pronounced. C) assuring that governments need never resort to
printing money.
3. Which of the following can be described as involving direct
finance?
A) A corporation’s stock is traded in an over-the-counter market.
B) People buy shares in a mutual fund. C) A pension fund manager buys
commercial paper in the secondary market. D None of the above.
Daily Quiz
4. Define banks.
5. Define banker.
6. Discuss investors
7. Define financial transaction.
8. Discuss financial assets.+
9. Explain clearing house.
10. Discuss savings.
Summary
• We have covered the following topics in this lecture :


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Number::II
Mapping
Unit-I So. Topic Course Level
No. Outcomes
1 Banking CO1 High

II Banking Structure in India CO2 Medium
2 Broad Classification of CO1 High
Banks in India CO2 Medium
Commercial Banks
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Objectives of topic/Session

• Banking
• Banking Structure in India
• Broad Classification of Banks in India
• Commercial Banks
• Main function of commercial banks
•Agency function
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Banking
• Banking
• Banking Regulation Act of India, 1949 defines Banking as

“accepting, for the purpose of lending or of investment of
deposits of money from the public, repayable on demand or
otherwise or withdrawable by cheque, draft order or
otherwise.” The Reserve Bank of India Act, 1934 and the
Banking Regulation Act, 1949, govern the banking operations
in India.
Banking Structure in India

• A well-regulated banking system is a key comfort for local
and foreign stake-holders in any country. Prudent banking
regulation is recognized as one of the reasons why India was
less affected by the global financial crisis.
• Banks can be broadly categorized as Commercial Banks or
Co-operative Banks.
• Banks which meet specific criteria are included in the second
schedule of the RBI Act, 1934. These are called scheduled
banks. They may be commercial banks or cooperative
banks. Scheduled banks are considered to be safer, and are
entitled to special facilities like re-finance from RBI.
Inclusion in the schedule also comes with its responsibilities
of reporting to RBI and maintaining a percentage of its
demand and time liabilities as Cash Reserve Ratio (CRR)
with RBI.
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Broad Classification of Banks in India
1) The RBI: The RBI is the supreme monetary and banking
authority in the country and has the responsibility to control
the banking system in the country. It keeps the reserves of all
scheduled banks and hence is known as the “Reserve Bank”.
2) Public Sector Banks:
 State Bank of India and its Associates
 Nationalized Banks
 Regional Rural Banks Sponsored by Public Sector Banks
3) Private Sector Banks:
 Old Generation Private Banks
 Foreign New Generation Private Banks
 Banks in India
•4) Co-operative Sector Banks:
 State Co-operative Banks
 Central Co-operative Banks
 Primary Agricultural Credit Societies
 Land Development Banks
 State Land Development Banks
• Cooperative Banking
• A Co-operative bank is a financial entity which belongs to its
members, who are at the same time the owners and the
customers of their bank.
• Co-operative banks in India are registered under the States
Cooperative Societies Act. The Co-operative banks are also
regulated by the Reserve Bank of India (RBI) and governed by
the
– Banking Regulations Act 1949

– Banking Laws (Co-operative Societies) Act, 1955.
• Features of Cooperative Banks:
– Customer Owned Entities: Co-operative bank members are
both customer and owner of the bank.
– Democratic Member Control: Co-operative banks are owned
and controlled by the members, who democratically elect a
board of directors. Members usually have equal voting rights,
according to the cooperative principle of “one person, one
vote”.
– Profit Allocation: A significant part of the yearly profit,
benefits or surplus is usually allocated to constitute reserves
and a part of this profit can also be distributed to the co-
operative members, with legal and statutory limitations.
– Financial Inclusion: They have played a significant role in the
financial inclusion of unbanked rural masses.
• Problems with Cooperative Banking in India:
• Organisational and financial limitations of the primary credit
societies considerably reduce their ability to provide adequate
credit to the rural population.
– Needs of tenants and small farmers are not fully met.
– Primary credit societies are financially weak and are unable
to meet the production-oriented credit needs
– Overdues are increasing alarmingly at all levels.
– Primary credit societies have not been able to provide
adequate and timely credit to the borrowing farmers.
• The cooperatives have resource constraints as their owned funds
hardly make a sizeable portfolio of the working capital. Raising
working capital has been a major hurdle in their effective
functioning.
• Most of the benefits from the cooperatives have been
covered by the big land owners because of their strong socio-
economic position.
• Cooperative Banks are losing their lustre due to expansion of
Scheduled Commercial Bank and adoption of technology.
They are also facing stiff competition from payment banks and
small-finance banks.
• Long-term credit extended by them is declining.
• .Regional Disparities: The cooperatives in northeast states
and in states like West Bengal, Bihar, Odisha are not as well
developed as the ones in Maharashtra and Gujarat. There is a
lot of friction due to competition between different states,
this friction affects the working of cooperatives.
• Political Interference: Politicians use them to increase their
vote bank and usually get their representatives elected over
the board of director in order to gain undue advantages.
• Dual Regulation of Urban Cooperative Bank
• Urban Co-operative Banks are regulated and supervised
by State Registrars of Co-operative Societies (RCS) in case of
single-State co-operative banks and Central Registrar of Co-
operative Societies (CRCS) in case of multi-State co-operative
banks and by the RBI.
– The RCS exercises powers under the respective Co-
operative Societies Act of the States with regard to
incorporation, registration, management, amalgamation,
reconstruction or liquidation and in case of UCBs that have
multi-State presence, are exercised by the CRCS.
• The banking related functions such as issue of license to start
new banks/branches, matters relating to interest rates, loan
policies, investments and prudential exposure norms
are regulated and supervised by the Reserve Bank under the
provisions of the Banking Regulation Act, 1949.
• Name of Urban Cooperative Bank:
• Saraswat Cooperative Bank
• Cosmos Cooperative Bank
• Shamrao Vithal Cooperative Bank (SVC Bank)
• Abhyudaya Cooperative Bank Ltd.
• Bharat Cooperative Bank.
• TJSB Cooperative Bank.
• Punjab & Maharashtra Co-operative Bank
• Janata Cooperative Bank.
5) Development Banks: Development Banks mostly provide

long term finance for setting up industries. They also provide
short-term finance (for export and import activities)
 Industrial Finance Co-operation of India (IFCI)-1948(New
Delhi)
 Industrial Development of India (IDBI)-1964(Mumbai)
 Industrial Investment Bank of India (IIBI)-1971
 Small Industries Development Bank of India (SIDBI)-
1990(Lucknow)
 National Bank for Agriculture and Rural Development
(NABARD)-1982(Mumbai)
 Export-Import Bank of India -1982(Mumbai)
• Commercial banks comprising public sector banks, foreign
banks, and private sector banks represent the most important
financial intermediary in the Indian financial system.
• The changes in banking structure and control have
resulted due to wider geographical spread and deeper
penetration of rural areas, higher mobilization of deposits,
reallocation of bank credit to priority activities, and lower
operational autonomy for a bank management. Public
sector
commercial banks, dominate the commercial banking
scene in the country. The largest commercial Banks in India is
SBI
Main function of commercial banks
•A) Acceptance of deposits
• Fixed deposit account
• Saving bank account
• Current account
•B ) Advancing of loan
• Cash credit(Cash credit is a type of short-term working
capital loan extended by financial institutions, which allows
the borrowers to utilise money without holding a credit
balance in an account)
• Call loans(A call loan is a loan that the lender can demand
to be repaid at any time)
• Over draft
• Bills discounting
Main function of commercial banks
•Agency function
• Collecting receipts
• Making payments
• Buy and sell securities
• Trustee and executor
•D ) General utility function
• Issuing letters of credit
• Underwriting share and debentures
• Safe custody of valuables
• Providing ATM and credit card facilities
• Providing credit information
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Daily Quiz
printing money.
finance?
Daily Quiz
4. Define banks.
5. Define banker.
8. Discuss financial assets
Summary

• Banking
•Agency function
Mapping
Unit-II So. Topic Course Level
No. Outcomes
1 The Indian capital market CO1 High

II Development financial CO3 Medium
institutions
2 Evolution of banking CO1 High
service in India CO2 Medium
Types of banking services
in India
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• Development of financial institutions
• Financial intermediaries
• Evolution of banking service in India
• Types of banking services in India
• Special banking
• Institutional banks
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Development Banks
• Development Banks
• A development bank may be defined as a financial institution
concerned with providing all types of financial assistance to
business units in the form of loans, underwriting, investment
and guarantee operations and promotional activities-economic
development in general and industrial development in
particular
• A development bank is basically a term lending institution.
It is a multipurpose financial institution with a broad
development outlook.
• The industrial finance corporation of India, the first
development bank was established in 1948. Subsequently
many other IDBI, IFCI, SIDBI etc.
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Functions of Development Banks
• Functions of Development Banks

• Fostering industrial growth
• Providing Long term assistant
• Balanced development
• Providing Promotional services
• Infrastructure building
• Entrepreneur Development
• Fulfilling Socio economic objectives
Merchant Banks
• Merchant Banks
• Meaning: Institution that render wide range of services such
as the management of customer’s securities, portfolio
management, counseling, insurance, etc are called ‘Merchant
Banks’.(Yes Bank Ltd., ICICI Securities Ltd., Kotak Mahindra
Capital Company Ltd., Axis Bank Ltd., Tata Capital Markets
Ltd., Reliance Securities Ltd., Bajaj Capital Ltd.
• Functions: Sponsoring issues, Loan syndication, Servicing of

issues, Portfolio, management, Arranging fixed deposits,
Helps in merger& acquisition
List of commercial banks Public sector bank
List of commercial banks Public sector bank
•State Bank of India • Punjab & Sind Bank
• Bank of Maharashtra
•Dena Bank Allahabad
• Punjab National Bank
•Bank Indian Bank • Canara Bank
•Andhra Bank • Syndicate Bank
• Central Bank of India
•Indian Overseas Bank
• Union Bank of India
•Bank of Baroda • Corporation Bank
•Oriental Bank of • United Bank of India
• UCO Bank
Commerce
•Bank of India
•IDBI Bank
Indian private banks
Indian private banks

•Axis Bank •IndusInd Bank
•Bank of Rajasthan •ING Vysya Bank
•Bharat Overseas Bank
•Jammu & Kashmir Bank
•Catholic Syrian Bank
•Karnataka Bank Limited
•Centurion Bank of Punjab
•Karur Vysya Bank
•City Union Bank
•Development Credit Bank •Kotak Mahindra Bank
•Dhanalakshmi Bank •Lakshmi Vilas Bank

•Federal Bank •Nainital Bank
•Ganesh Bank of Kurundwad •Ratnakar Bank
•HDFC Bank •Tamilnad Mercantile Bank Ltd.
•ICICI Bank
•YES Bank
List of Foreign banks in India
• List of Foreign banks in India

• ABN-AMRO Bank
• Abu Dhabi Commercial Bank Ltd
• American Express Bank Ltd
• Citibank
• DBS Bank Ltd
• Deutsche Bank
• HSBC Ltd
• Standard Chartered Bank
Daily Quiz
printing money.
finance?
Daily Quiz
4. Define banks.
5. Define banker.
8. Discuss financial assets.
Summary

• Cooperative Bank
• List of commercial banks Public sector bank
• Cooperative Bank
• List of commercial banks Public sector bank
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Number::II
Mapping
No. Outcomes
1 Products and Services CO1 High

II offered by Banks CO2 Medium
2 Mobile Banking CO1 High
Internet Banking CO2 Medium
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• Products and Services offered by Banks
• Common Banking Products Available
• Mobile Banking
• Internet Banking
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Products and Services offered by Banks

• The different products in a bank can be
broadly classified into:
• Retail Banking
• Trade Finance
• Treasury Operations.
• Retail Banking and Trade finance operations are conducted at
the branch level while the wholesale banking operations,
which cover treasury operations, are at the hand office or a
designated branch.
Products and Services offered by Banks
• Receiving all kinds of bonds valuable for safe keeping

•Trade Finance:
• Issuing and confirming of letter of credit.
• Accepting, discounting, buying, selling, collecting of bills of
exchange, promissory notes, drafts, bill of lading and other
securities.
Treasury Operations
• Treasury Operations:
• Buying and selling of bullion. Foreign exchange
• Acquiring, holding, underwriting and dealing in shares,
debentures, etc.
• Purchasing and selling of bonds and securities on behalf of
constituents.
• The banks can also act as an agent of the Government or local
authority. They insure, guarantee, underwrite, participate in
managing and carrying out issue of shares, debentures, etc.
Treasury Operations
• Apart from the above-mentioned functions of the bank, the
bank provides a whole lot of other services like investment
counseling for individuals, short-term funds management and
portfolio management for individuals and companies.
• It undertakes the inward and outward remittances with
reference to foreign exchange and collection of varied types
for the Government
Common Banking Products Available
• Credit Card: Credit Card is “post paid” or “pay later” card
that draws from a credit line-money made available by the
card issuer (bank) and gives one a grace period to pay. If the
amount is not paid full by the end of the period, one is
charged interest
• Debit Cards: Debit Card is a “prepaid” or “pay now” card
with some stored value. Debit Cards quickly debit or subtract
money from one’s savings account, or if one were taking out
cash.
• Every time a person uses the card, the merchant who in turn
can get the money transferred to his account from the bank of
the buyers, by debiting an exact amount of purchase from the
card. To get a debit card along with a Personal Identification
Number (PIN).
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• Automatic Teller Machine
• The ATM’s are used by banks for making the customers
dealing easier. ATM card is a device that allows customer who
has an ATM card to perform routine banking transaction at
any time without interacting with human teller. It provides
exchange services. This service helps the customer to
withdraw money even when the banks ate closed. This can be
done by inserting the card in the ATM and entering the
Personal Identification Number and secret Password. It allows
the customers
• To transfer money to and from accounts.
• To view account information.
• To order cash.
• To receive cash.
• Electronic Funds Transfer (EFT)
• The system called electronic fund transfer (EFT)
automatically transfers money from one account to another.
This system facilitates speedier transfer of funds
electronically from any branch to any other branch. In this
system the sender and the receiver of funds may be located in
different cities and may even bank with different banks.
• Funds transfer within the same city is also permitted. The
scheme has been in operation since February 7, 1996, in
India.
• Telebanking
• Telebanking refers to banking on phone services. A customer
can access information about his/her account through a
telephone call and by giving the coded Personal Identification
Number (PIN) to the bank. Telebanking is extensively user
friendly and effective in nature.
Internet Banking
• Internet banking involves use of internet for delivery of
banking products and services. Banking is no longer confined
to the branches where one has to approach the branch in
person, to withdraw cash or deposits a cheque or request a
statement of accounts.
• In internet banking, any inquiry or transaction is processed
online without any reference to the branch (anywhere
banking) at any time.
03/19/2024 88
Internet Banking
• Benefits of Internet Banking

• Reduce the transaction costs of offering several banking
services and diminishes the need for longer numbers of
expensive brick and mortar branches and staff.
• Increase convenience for customers, since they can conduct
many banking transaction 24 hours a day.
• Increase customer loyalty.
• Improve customer access.
03/19/2024 89
Daily Quiz
printing money.
finance?
Daily Quiz
4. Define banks.
5. Define banker.
Summary

• Mobile Banking

• Mobile Banking
03/19/2024 93
Number::II
Mapping
No. Outcomes
1 Banking Services CO2 High

II Principles of lending CO3 Medium
2 Credit Exposure Limits CO2 High
CO3 Medium
03/19/2024 94

• Banking Services
• Principles of lending
• Ratings
• Credit Exposure Limits
03/19/2024 95
Number::II
Banking Services
• Banking covers many services, these basic services have
always been recognized as the hallmark of the genuine
banker. These are…
• The receipt of the customer’s deposits
• The collection of cheques drawn on other banks
• The payment of the customer’s cheques drawn on himself
• There are other various types of banking services like:
– Advances – Overdraft, Cash Credit, etc.
– Deposits – Saving Account, Current Account, etc.
– Financial Services – Bill discounting etc.
Bank Lending
• Bank Lending
• Banks extend credit to different categories of borrowers for a
wide variety of purposes. Bank credit is provided to
households, retail traders, small and medium enterprises
(SMEs), corporates, the Government undertakings etc. in the
economy.
• Retail banking loans are accessed by consumers of goods and
services for financing the purchase of consumer durables,
housing or even for day-to-day consumption. In contrast, the
need for capital investment, and day-to-day operations of
private corporates and the Government undertakings are met
through wholesale lending.
Bank Lending
• Loans for capital expenditure are usually extended with

medium and long-term maturities, while day-to-day finance
requirements are provided through short-term credit (working
capital loans). Meeting the financing needs of the agriculture
sector is also an important role that Indian banks play.
Principles of lending
• Safety
• Banks need to ensure that advances are safe and money lent
out by them will come back. Since the repayment of loans
depends on the borrowers' capacity to pay, the banker must be
satisfied before lending that the business for which money is
sought is a sound one.
• In addition, bankers many times insist on security against the
loan, which they fall back on if things go wrong for the
business. The security must be adequate, readily marketable
and free of encumbrances.
• Liquidity
• To maintain liquidity, banks have to ensure that money lent
out by them is not locked up for long time by designing the
loan maturity period appropriately.
• Further, money must come back as per the repayment
schedule. If loans become excessively illiquid, it may not be
possible for bankers to meet their obligations vis-à-vis
depositors.
• Profitability
• To remain viable, a bank must earn adequate profit on its
investment. This calls for adequate margin between deposit
rates and lending rates. In this respect, appropriate fixing of
interest rates on both advances and deposits is critical. Unless
interest rates are competitively fixed and margins are
adequate, banks may lose customers to their competitors and
become unprofitable.
• Risk diversification
• To mitigate risk, banks should lend to a diversified customer
base. Diversification should be in terms of geographic
location, nature of business etc.
Loan Policy
• Loan Policy
• Based on the general principles of lending stated above, the
Credit Policy Committee (CPC) of individual banks prepares
the basic credit policy of the Bank, which has to be approved
by the Bank's Board of Directors.
• The loan policy outlines lendingguidelines and
establishes operating procedures in all aspects of credit
management including standards for presentation of credit
proposals, rating standards and benchmarks, delegation of
credit approving powers, prudential limits on large credit
exposures, asset concentrations, portfolio management, loan
review mechanism, risk monitoring and evaluation, pricing of
loans, provisioning for bad debts, regulatory/ legal
compliance etc.
Loan Policy
• Credit Deposit (CD) Ratio

• A bank can lend out only a certain proportion of its deposits,
since some part of deposits have to be statutorily maintained
as Cash Reserve Ratio (CRR) deposits, and an additional part
has to be used for making investment in prescribed securities
(Statutory Liquidity Ratio or SLR requirement).
• It may be noted that these are minimum requirements. Banks
have the option of having more cash reserves than CRR
requirement and invest more in SLR securities than they are
required to.
03/19/2024 103
Number::II
Loan Policy
• Ratings
• There are a number of diverse risk factors associated with
borrowers. Banks should have a comprehensive risk rating
system that serves as a single point indicator of diverse risk
factors of a borrower. This helps taking credit decisions in a
consistent manner.
Loan Policy
• Pricing of loans
• Risk-return trade-off is a fundamental aspect of risk
management. Borrowers with weak financial position are
placed in higher risk category and are provided credit
facilities at a higher price (that is, at higher interest).
• The higher the credit risk of a borrower the higher would be
his cost of borrowing. To price credit risks, banks devise
appropriate systems, which usually allow flexibility for
revising the price (risk premium) due to changes in rating. In
other words, if the risk rating of a borrower deteriorates, his
cost of borrowing should rise and vice versa
Loan Policy
• Collateral security
• As part of a prudent lending policy, banks usually advance
loans against some security. The loan policy provides
guidelines for this. In the case of term loans and working
capital assets, banks take as 'primary security' the property or
goods against which loans are granted. In addition to this,
banks often ask for additional security or 'collateral security'
in the form of both physical and financial assets to further
bind the borrower. This reduces the risk for the bank
• Capital adequacy
• The amount of capital they have to be backed up by depends
on the risk of individual assets that the bank acquires. The
riskier the asset, the larger would be the capital it has to be
backed up by. A key norm of Capital Adequacy Ratio (CAR)
known as Capital Risk Weighted Assets Ratio, is a simple
measure of the soundness of a bank.
Loan Policy
• Credit Exposure Limits: As a prudential measure aimed at
better risk management and avoidance of concentration of
credit risks, the Reserve Bank has fixed limits on bank
exposure to the capital market as well as to individual and
group borrowers with reference to a bank's capital. Limits on
inter-bank exposures have also been placed.
• Banks are further encouraged to place internal caps on their
sectorial exposures, their exposure to commercial real estate
and to unsecured exposures. These exposures are closely
monitored by the Reserve Bank.
Loan Policy
• Lending Rates: Banks are free to determine their own lending
rates on all kinds of advances except a few such as export
finance; interest rates on these exceptional categories of
advances are regulated by the RBI.
Daily Quiz
printing money.
finance?
Daily Quiz
4. Define FIs.
5. Define banker.
10. Discuss savings account.
Summary

• Ratings
• Ratings
03/19/2024 112
Number::II
Mapping
No. Outcomes
1 Banking Services CO1 High

II Principles of lending CO2 Medium
2 Ratings CO1 High
Credit Exposure Limits CO2 Medium
03/19/2024 113

• E-Banking
• A Non-Banking Financial Company (NBFC)
• Governance Over NBFCs
03/19/2024 114
Number::II
E-Banking
• E-Banking
• Many banks have modernized their services with the facilities
of computer and electronic equipments.
• The electronics revolution has made it possible to provide
ease and flexibility in banking operations to the benefit of the
customer.
• The e-banking has made the customer say good-bye to huge
account registers and large paper bank accounts
• The e-banks, which may call as easy bank offers the
following services to its customers
• Credit Cards – Debit Cards
03/19/2024 115
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E-Banking
• ATM
• IMPS (Immediate Payment Service), Transfer limit-Rs. 2L to 5L
• NEFT (National Electronic Funds Transfer), No minimum to
10L
• RTGS (Real-Time Gross Settlement), 2L to 10L
03/19/2024 116
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Benefits of E-banking
• Benefits of E-banking
• Anywhere Banking no matter wherever the customer is in the
world. Balance enquiry, request for services, issuing
instructions etc., from anywhere in the world is possible.
• Anytime Banking – Managing funds in real time and most
importantly, 24 hours a day, 7days a week.
• Convenience acts as a tremendous psychological benefit all
the time.
• Brings down “Cost of Banking” to the customer over a period
a period of time.
• Cash withdrawal from any branch / ATM
• On-line purchase of goods and services including online
payment for the same.
Benefits of E-banking
•To the Bank:
• Innovative, scheme, addresses competition and present the bank
as technology driven in the banking sector market .
• Reduces customer visits to the branch and thereby human
intervention
• Inter-branch reconciliation is immediate thereby reducing
chances of fraud and misappropriation
• On-line banking is an effective medium of promotion of various
schemes of the bank, a marketing tool indeed.
Non-Banking Financial Company (NBFC)
• It is a company registered under the Companies Act, 1956
engaged in the business of loans and advances, acquisition of
shares/stocks/bonds/debentures/securities issued by
Government or local authority or other marketable securities
of a like nature, leasing, hire-purchase, insurance .
Types of NBFC Based on Their Activity:

1. Asset Finance Company
• According to RBI, any non-banking company can act as an
asset finance company, on condition; that the income arising
from the aggregate physical assets supporting the economic
activity should not be less than 60% of its total assets and total
income.
• Asset finance company can either be deposit-taking or non-
deposit taking. All deposit-taking NBFC’s have to register
themselves with RBI as per given RBI regulation.
• Such as automobiles, tractors, machines, generator sets,
earth moving and material handling equipments etc.
2. Loan Company
• Loan companies under NBFC provide loans and advances for
working capital finance. A financial company would only be
considered Loan Company if their 50%of total assets are in
lending and 50%of total income arises from the assets which
are lent. The known loan company registered as NBFC is LIC
Finance Limited.
3. Infrastructure Finance Company
• Infrastructure finance companies provide infrastructure loans
for the development of transport, water & sanitation, energy,
communication, social and commercial infrastructure.
4. Core Investment Company:
Core Investment Companies (CICs) are specialized Non-
Banking Financial Companies that need to undergo NBFC
registration with the RBI. Core Investment Companies are
limited companies that hold equity shares, and also
preference shares or debentures in other group companies.
Such as Aditya Birla Financial Services Limited, Addlife
Investments Private Limited, Fincare Business Services
Limited, Infrastructure Leasing And Financial Services Limited
(cic) etc.
5. Micro Finance Company

• There are many microfinance companies in India, which play
some crucial role in the development of India. Microfinance
companies are those financial institutions that offer small-
scale financial services in the form of credit and savings, to
the poor in rural, semi-urban areas.
6. Housing Finance Company
• Housing finance companies have mention housing finance as
the main clause in its main memorandum of association.
NBFC’s have complemented commercials bank in providing
mid-term capital loans to individual or firms; their flexibility
and less stringent regulation provide them competing for an
edge over commercial banks.
Governance Over NBFCs
• The Managing structure for NBFCs is based on the following
three characteristics:
• (a) The size of NBFC
• (b) Type of activity
• (c) The acceptance of public deposits.
• Governance over NBFC’s is done through on-site inspection
based on Capital, Assets, Management, Earnings, Liquidity,
Systems and Procedures method. Off-site observation is done
through periodic control returns.
• To review this regulatory framework and supervision of
NBFCs, the Government of India appointed a committee
which has submitted its report in October 1998.
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Number::II
Name list of NBFCs
• Power Finance Corporation Limited.
• Shriram Transport Finance Company Limited.
• Bajaj Finance Limited.
• Mahindra & Mahindra Financial Services Limited.
• Muthoot Finance Ltd.
• HDB Finance Services.
• Cholamandalam.
• Bajaj Finserve
• Fullerton India Pvt. Ltd.
03/19/2024 126
Number::II
Daily Quiz
printing money.
finance?
Daily Quiz
4. Define banks.
5. Define banker.
Summary

• E-Banking
• E-Banking
03/19/2024 130
Number::II
Mapping
No. Outcomes
1 NABARD CO2 High

II Objectives of NABARD CO3 Medium
2 Support to NGOs CO2 High
Innovative Projects CO3 Low
03/19/2024 131

• NABARD
• Objectives of NABARD
• Development and Promotional Functions
• Role in Training
• Support to NGOs
• Innovative Projects
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Number::II
NABARD
• NABARD
• NABARD(12th July, 1982) is set up as an apex Development
Bank with a mandate for facilitating credit flow for promotion
and development of agriculture, small-scale industries,
cottage and village industries, handicrafts and other rural
crafts. It also has the mandate to support all other allied
economic activities in rural areas, promote integrated and
sustainable rural development and secure prosperity of rural
areas.
• History
• The Committee to Review
• Arrangements for Institutional Credit for Agriculture and Rural
Development(CRAFICARD-Committee to Review
Arrangements for Institutional Credit for Agriculture and Rural
Development.), set up by the Reserve Bank of India (RBI)
under the Chairmanship of SHRI B.
NABARD
• NABARDs Micro Finance-
• Vision:
• Empowerment of rural poor by improving their access to the
formal credit system through various MF innovations in a cost
effective and sustainable manner .
• Mission:
• Promoting sustainable and equitable agriculture and rural
development through effective credit support, related services,
institution building and other innovative initiatives.
Organizational Structure of NABARD
Source: www.google.com
Objectives of NABARD
• Objectives of NABARD
• The national bank will be an apex organization in respect of
all matters relating to policy, planning operational aspects in
the field of credit for promotion of agriculture, small scale
industries, cottage and village industries, handicrafts and other
rural crafts and other allied economic activities in rural areas.
• The Bank will also provide direct lending to any institution as
may approved by the Central Government.
Objectives of NABARD
• The Bank will have organic links with the Reserve Bank and
maintain a close link with in.
• The Bank will serve as a refinancing institution for
institutional credit such as long-term, short-term for the
promotion of activities in the rural areas.
NABARDs Roles and Functions
• NABARDs Roles and Functions
• Credit Functions
• Developmental and Promotional Functions
• Supervisory Functions
• Institutional and Capacity building
• Credit functions
• Framing policy and guidelines for rural financial institutions
• Providing credit facilities to issuing organizations
• Monitoring the flow of ground level rural credit
Development and Promotional Functions
• Development and Promotional Functions
• Help cooperative banks and Regional Rural Banks to prepare
development actions plans for themselves
• Monitor implementation of development action plans of banks
and fulfilment of obligations under MoUs
• Provide financial support for the training institutes of
cooperative banks
• Supervisory Functions
• Undertakes inspection of Regional Rural Banks (RRBs) and
Cooperative Banks (other than urban/primary cooperative
banks) under the provisions of Banking Regulation Act, 1949.
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Institutional and Capacity Building
• Institutional and Capacity Building
• Help cooperative banks and RRBs to prepare development
actions plans for themselves.
• Monitor implementation of development action plans of banks
and fulfilment of obligations under Moue.
• Provide financial assistance to cooperatives and RRBs for
establishment of technical, monitoring and evaluations cells.
• Provide organization development intervention
• (ODI) through reputed training institutes like Bankers
03/19/2024 140
Number::II
Institutional and Capacity Building
• Institute of Rural Development (BIRD), Lucknow,

• National Bank Staff College, Lucknow, College of
Agriculture Banking, Pune, etc.
• Provide financial support for the training institutes of
cooperative banks
• Provide training for senior and middle level executives of
commercial banks, RRBs and cooperative banks
03/19/2024 141
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Role in Training
• Section 38 of the NABARD Act provides that the
• Bank shall:
• Maintain expert staff to study all problems relating to
agriculture and rural development and be available for
consultation to the central government, the reserve bank, the
state governments and the other institutions engaged in the
field of rural development.
• Provide facilities for training, for dissemination of
information and the promotion of research including the
undertaking of studies, researches, techno-economic and other
surveys in the field of rural banking, agriculture and rural
development.
03/19/2024 142
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NABARD Refinance Support to Banks
• NABARD Refinance Support to Banks
• NABARD provides refinance support to banks to the extent of
100% of the bank loans disbursed to SHGs.
• The total refinance disbursed to banks against their loans to
SHGs during the year 2007-08 was Rs.1615.50 core as against
Rs.1292.86 core during the year 2006-07 with a growth rate of
30%.
03/19/2024 143
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NABARD Refinance Support to Banks
• Model Bankable Projects
• The Technical Services Department of NABARD is preparing
and bringing model bankable agricultural projects in the areas
of:-
• Minor Irrigation
• Land Development
• Plantation & Horticulture
• Agricultural Engineering
03/19/2024 144
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Support to NGOs
• Support to NGOs
• Grant Assistance up to Rs.50,000
• Purchase of PC
• NGO should have completed 3 years
• Should have promoted minimum 500 SHGs
• Should not have been black-listed
03/19/2024 145
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Innovative Projects
• Innovative Projects
• Setting up of grain banks
• Project on processers cards
• Project on e-gram Joint Liability Groups
• Setting up of computer machines
• Micro enterprise promotion by SHGs
03/19/2024 146
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Video Links
• Youtube/other Video Links

• https://youtu.be/p1KD-Y1e2Hg
• https://youtu.be/qqy7dSB9jcg
• https://youtu.be/epg4R7J-3Fg
• https://youtu.be/zfmIA05OQ3Y
03/19/2024 147
Number::II
Daily Quiz
• 1. The Reserve Bank of India was established on _______.
a) April 1, 1935
b) July 12, 1982
c) May 26, 2006
d) September 30, 2005
• 2. Who works as RBI's agent at places where it has no
office of its own?
a) State Bank of India

b) Ministry of Finance
c) Government of India
d) International Monetary Fund
Daily Quiz
• 3. Which among the following is incorrect?
a) RBI is the Bank of Issue

b) RBI acts as Banker to the Government
c) RBI is Banker's Bank
d) RBI does not regulate the flow of credit
• 4. India is a member of the International Monetary Fund
since _____.
a) 1934
b) 1935
c) 1947
d) 1949
Daily Quiz

since _____.
a) 1934
b) 1935
c) 1947
d) 1949
MCQ s
• 1. The Reserve Bank of India was established on _______.
a) April 1, 1935
b) July 12, 1982
c) May 26, 2006
• 2. Who works as RBI's agent at places where it has no
office of its own?
a) State Bank of India
b) Ministry of Finance
c) Government of India
d) International Monetary Fund
MCQ s
• 3.Which among the following is incorrect?
a) RBI is the Bank of Issue
b) RBI acts as Banker to the Government
c) RBI is Banker's Bank
d) RBI does not regulate the flow of credit
MCQ s
since _____.
a) 1934
b) 1935
c) 1947
d) 1949
• 5.When did the Reserve Bank of India notify the draft
regulations relating to the Credit Information Companies
(Regulation) Act, 2005?
a) April 5, 2006
b) May 26, 2006
c) June 29, 2007
MCQ s
• 7. ____________ is also called zero coupon bond.
Which company would acquire an additional 29 per cent
stake in Max Life Insurance?
• HDFC Bank
• Kotak Mahindra
• ICICI Bank
• Axis Bank
Weekly Assignment
• Q.1Explain the working areas of RBI.

• Q.2Explain the functions of RBI.
• Q.3 Throw the light on Structure of RBI.
• Q.4Depicts the real structure of NABARD.
Old Question Papers
Old Question Papers
Old Question Papers
Old Question Papers
Old Question Papers
Old Question Papers
• MM: 100
• SECTION A
• Attempt all questions in brief. 2 x 7 = 14
• a. Define Prior Saving Theory.
• b. What do you mean by Financial System?
• c. What is EXIM?
• d. Differentiate between CRR and SLR.
• e.“Money market speeds up the liquidity position of a
company”. Justify.
• f. What are Deep-discount bonds?
• g. What is CASA?
Old Question Papers
• SECTION B
• Attempt any three of the following:7 x 3 = 21
• a. Explain the various types of Financial services.
• b. Explain the various roles performed by RBI for the
development of Indian banking sector.
• c. What are the various intermediaries of Primary capital
market?
• d. Explain the various types of Derivatives with their striking
features.
• e. Explain the structure of Indian banking sector.
Old Question Papers
• SECTION C
• Attempt any one part of the following: 7x1=7
• (a) Explain the Theory of forced savings with suitable
examples.
• (b) Describe the regulation mechanism of Indian Financial
System.
• (a) Explain the impact of monetary policy to accelerate the
growth of Indian
• economy.
• (b) Explain the role of NABARD in the economic and social
development of the country.
Old Question Papers
Attempt any one part of the following: 7 x 1 = 7
• (a) Explain the various powers enjoyed by SEBI as the regulator
of Capital market.
• (b) Describe the various instruments of Money Market.
• (a) What do you mean by GDRs? Explain the issue mechanism of
GDRs.
• (b) What is share? What are the various benefits enjoyed by a
shareholder?
• (a) What are the various products offered by commercial banks to
meet out the credit requirements of customers?
• (b) List out the various technological advancements floated in
payment mechanism of Indian scenario .
Old Question Papers
Attempt any one part of the following: 7 x 1 = 7

• (a) Explain the various powers enjoyed by SEBI as the regulator of
Capital market.
• (b) Describe the various instruments of Money Market.
• (a) What do you mean by GDRs? Explain the issue mechanism of
GDRs.
• (b) What is share? What are the various benefits enjoyed by a
shareholder?
• (a) What are the various products offered by commercial banks to
• (b) List out the various technological advancements floated in
payment mechanism of Indian scenario.
Expected Questions for University Exam
1. Explain the various roles performed by RBI for the

development of Indian banking sector.
2. Explain the structure of Indian banking sector.
3. Explain the role of NABARD in the economic and social
4. What are the various products offered by commercial banks to
5. Briefly explain the nature and functions of Non-Bank Statutory
Financial Organizations (NBSFOs) in India.
Expected Questions for University Exam
6. Explain the important functions of Reserve Bank of India.

7. Differentiate between Basel-II and Basel-III norms of
banking supervision.
8. Explain the role of NABARD in the economic and social
9. State the various products offered by commercial banks to
meet out the credit requirements of customers.
Summary
• We have covered the following topics in this lecture:

• Introduction to financial system
• Ratings
References
References:
Source: www.aktuonline.org
03/19/2024 Number::II 169
References
Thank You
03/19/2024 170
Number::II

Unit 2

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Unit 2

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Noida Institute of Engineering and Technology,

03/19/2024 Faculty Name: Mohd Iftikhar Subject code a 3

Ms. Taru Maheshwari

UNIT V: Principles and Practice of Insurance (7 Hours)

PO PO1 PO2 PO3 PO3 PO4 PO5

Average 1.4 1.4 1 1 1.2 1.6

Faculty Name: Mohd Iftikhar Subject code and abbreviation: AMBA FM

Faculty Name: Mohd Iftikhar Subject code and abbreviation: AMBA FM

Faculty Name: Mohd Iftikhar Subject code and abbreviation: AMBA FM

• Financial system in India

• Indian financial system

• To impart knowledge of the financial system of India

• Recognize the functioning and working of various financial

• Banking system in India

II Reserve Bank of India CO1 Medium

• Students will be able to know the following concepts:

 1934: The Bill was passed and received the Governor

 1947: The Reserve Bank stopped acting as banker to

• Formulate monetary policy

• We have covered the following topics in this lecture :

• Reserve Bank of India

1 Banking CO1 High

• Students will be able to know the following concepts:

• Banking Regulation Act of India, 1949 defines Banking as

• Banking Structure in India

– Banking Regulations Act 1949

5) Development Banks: Development Banks mostly provide

• We have covered the following topics in this lecture :

1 The Indian capital market CO1 High

• Students will be able to know the following concepts:

• Functions of Development Banks

• Functions: Sponsoring issues, Loan syndication, Servicing of

Indian private banks

•Dhanalakshmi Bank •Lakshmi Vilas Bank

• List of Foreign banks in India

• We have covered the following topics in this lecture :

1 Products and Services CO1 High

• Students will be able to know the following concepts:

• Products and Services offered by Banks

• Receiving all kinds of bonds valuable for safe keeping

• Benefits of Internet Banking

• We have covered the following topics in this lecture :

• Products and Services offered by Banks

1 Banking Services CO2 High

• Students will be able to know the following concepts:

• Loans for capital expenditure are usually extended with

• Credit Deposit (CD) Ratio

• We have covered the following topics in this lecture :

1 Banking Services CO1 High

• Students will be able to know the following concepts:

Types of NBFC Based on Their Activity:

5. Micro Finance Company

• We have covered the following topics in this lecture :

1 NABARD CO2 High

• Students will be able to know the following concepts:

• Institute of Rural Development (BIRD), Lucknow,

• Youtube/other Video Links

a) State Bank of India

• 3. Which among the following is incorrect?

a) RBI is the Bank of Issue

• 5. India is a member of the International Monetary Fund

• Q.1Explain the working areas of RBI.