The document provides an overview of financial systems and markets. It discusses key concepts like financial institutions, banking institutions, non-banking financial institutions, financial markets, capital markets, money markets, and financial sector reforms in India. It describes the functions of various financial institutions in India and the types of risks faced by them like credit risk and interest rate risk. It also summarizes the reforms undertaken in the Indian financial system to make it more efficient and responsive.
This document provides an overview of financial institutions, including their meaning, functions, types, and examples. It discusses banking institutions like public sector banks, private sector banks, and cooperative banks. It also discusses non-banking financial institutions and provides examples like NABARD, IDBI, IFCI, and EXIM Bank. The document concludes that while India has a full range of financial institutions, their operations could be improved to make them more effective.
Banking and Financial Institutions (as per UGC NET syllabus)Abbas Vattoli
a power point presentation on banking and financial institutions convering origin and history of banking in india, commercial banking classification and functions, investment banking role and initiatives, NPA warning signals and mannagement of NPA, NABARD and its rural banking innovations.
This document discusses the role of financial institutions in India. It outlines the key components of the formal financial system, including financial instruments, markets, institutions, and services. It then describes the evolution of the Indian banking system in three phases from 1786 to the present. The document also discusses how financial institutions provide various services like financing small businesses, microfinance loans, and insurance. Some major financial institutions mentioned include the State Bank of India, IDBI Bank, and NABARD.
This document discusses various specialized financial institutions in India that provide financing for projects and businesses. It describes the roles of commercial banks, Industrial Finance Corporations of India (IFCI), Industrial Development Bank of India (IDBI), Industrial Credit and Investment Corporation of India (ICICI), Small Industries Development Bank of India (SIDBI), State Financial Corporations (SFCs), venture capital funding, and angel capitalists. It provides details on the objectives, functions and types of loans/assistance offered by each institution.
This document discusses various financial concepts including types of taxes, sources of borrowing, loans, the role of the Reserve Bank of India, consumer rights, types of bank accounts, and new banking technologies. It provides information on direct and indirect taxes, internal and external sources of borrowing, the definition of a loan, and functions of the RBI like issuing currency and regulating banks. It also outlines consumer rights, the four main types of bank accounts, and technologies like internet banking, mobile banking, RTGS, and NEFT.
Introduction to Indian Banking-B.V.RaghunandanSVS College
The document summarizes modern banking in India. It discusses the various types of banks in India including commercial banks like public and private sector banks, development banks, regional rural banks, cooperative banks, and specialized banks like NABARD, land development banks, and foreign exchange banks. It provides details on the establishment and functions of key banks like the Reserve Bank of India, commercial banks, regional rural banks, and NABARD.
The document discusses the structure and functions of Indian financial institutions, specifically commercial banks. It outlines commercial banks' primary functions of accepting various types of deposits like fixed deposits, recurring deposits, and demand deposits. It also discusses banks' role in advancing loans through overdrafts, cash credits, term loans, and other types of loans. Secondary functions of commercial banks include collecting payments, paying bills, and dealing in foreign exchange.
This document provides an overview of financial institutions, including their meaning, functions, types, and examples. It discusses banking institutions like public sector banks, private sector banks, and cooperative banks. It also discusses non-banking financial institutions and provides examples like NABARD, IDBI, IFCI, and EXIM Bank. The document concludes that while India has a full range of financial institutions, their operations could be improved to make them more effective.
Banking and Financial Institutions (as per UGC NET syllabus)Abbas Vattoli
a power point presentation on banking and financial institutions convering origin and history of banking in india, commercial banking classification and functions, investment banking role and initiatives, NPA warning signals and mannagement of NPA, NABARD and its rural banking innovations.
This document discusses the role of financial institutions in India. It outlines the key components of the formal financial system, including financial instruments, markets, institutions, and services. It then describes the evolution of the Indian banking system in three phases from 1786 to the present. The document also discusses how financial institutions provide various services like financing small businesses, microfinance loans, and insurance. Some major financial institutions mentioned include the State Bank of India, IDBI Bank, and NABARD.
This document discusses various specialized financial institutions in India that provide financing for projects and businesses. It describes the roles of commercial banks, Industrial Finance Corporations of India (IFCI), Industrial Development Bank of India (IDBI), Industrial Credit and Investment Corporation of India (ICICI), Small Industries Development Bank of India (SIDBI), State Financial Corporations (SFCs), venture capital funding, and angel capitalists. It provides details on the objectives, functions and types of loans/assistance offered by each institution.
This document discusses various financial concepts including types of taxes, sources of borrowing, loans, the role of the Reserve Bank of India, consumer rights, types of bank accounts, and new banking technologies. It provides information on direct and indirect taxes, internal and external sources of borrowing, the definition of a loan, and functions of the RBI like issuing currency and regulating banks. It also outlines consumer rights, the four main types of bank accounts, and technologies like internet banking, mobile banking, RTGS, and NEFT.
Introduction to Indian Banking-B.V.RaghunandanSVS College
The document summarizes modern banking in India. It discusses the various types of banks in India including commercial banks like public and private sector banks, development banks, regional rural banks, cooperative banks, and specialized banks like NABARD, land development banks, and foreign exchange banks. It provides details on the establishment and functions of key banks like the Reserve Bank of India, commercial banks, regional rural banks, and NABARD.
The document discusses the structure and functions of Indian financial institutions, specifically commercial banks. It outlines commercial banks' primary functions of accepting various types of deposits like fixed deposits, recurring deposits, and demand deposits. It also discusses banks' role in advancing loans through overdrafts, cash credits, term loans, and other types of loans. Secondary functions of commercial banks include collecting payments, paying bills, and dealing in foreign exchange.
The financial system in India includes financial markets and institutions that facilitate the flow of funds between savers and borrowers. It mobilizes savings and promotes investment to support economic development. The key components are financial assets, intermediaries like banks and non-banking financial companies, and organized markets like the stock market, government securities market, and money market. Financial intermediaries channel funds between those who have capital and those who need capital. Together, financial markets and intermediaries comprise the backbone of India's financial system.
Banking Structure in India:
This presentation helps us to understand the basics of banking in India, its initiation, role and growth over the period of time.
This document outlines and describes 14 different types of banks:
1. Central banks are the supreme monetary institutions that act as pivots for their country's entire banking system, like the Reserve Bank of India.
2. Commercial banks perform ordinary banking activities like accepting deposits and lending loans. Some major commercial banks in India are the State Bank of India, Punjab National Bank, and Bank of India.
3. Co-operative banks are organized based on cooperative principles and accept public deposits and grant loans, operating under the Cooperative Societies Act.
The document then provides brief descriptions of development banks, investment banks, agricultural banks, exchange banks, international banks, and savings banks.
The document provides an overview of the Indian banking system. It discusses the history and evolution of banking in India from the establishment of the first bank in 1786 to the current system. It describes the key components of the current banking system including the Reserve Bank of India (RBI), scheduled commercial banks, cooperative banks, and tools used by RBI to regulate the system like cash reserve ratio, repo rate, and statutory liquidity ratio. The banking system has transitioned India to a strong economy with robust banking.
Banking involves accepting deposits that are repayable on demand or otherwise, and using those deposits to lend money or make investments. A banking company is any company that conducts banking business in India. Banking activities include accepting demand and time deposits from customers, lending money through various loans and facilities, and making investments in government securities. Banks also perform agency functions like collecting checks and bills, remitting funds, and providing locker facilities, as well as developmental functions like financial inclusion and loans to weaker sections. Currently, India has various types of banks including public sector banks, private sector banks, foreign banks, regional rural banks, and cooperative banks.
This document provides an overview of the banking sector in India. It discusses the definition of a bank according to Indian law and the history of banking in India in phases from the 18th century to present day. It also classifies the different types of banks in India including the Reserve Bank of India, public sector banks, private sector banks, cooperative banks, and development banks. The roles of commercial banks and investment banks are explained. Finally, it discusses modern modes of banking transactions such as e-banking, ATMs, debit cards, and credit cards.
The banking industry in India is governed by the Banking Regulation Act of 1949. It began in the late 18th century and saw major developments post-independence including the nationalization of banks in 1969. Today it includes both public and private sector banks as well as foreign banks. The industry has grown significantly in size and now includes over 67,000 branches across the country. However, it also faces challenges such as a lack of expertise in new products, increasing competition, and the impact of global financial crises. New trends include a focus on customer centricity, staff efficiency, and greater use of technology.
1. A bank is a licensed financial institution that accepts deposits and lends money. The first bank in India was the Bank of Hindustan in 1770. Banks in India are categorized as scheduled commercial banks, non-scheduled banks, and non-commercial banks like NABARD.
2. The State Bank of India was established in 1955 by merging several state-associated banks. In 1969 and 1980, the government nationalized major commercial banks to promote development. Currently there are 19 nationalized banks and public sector banks make up the majority of banks in India.
3. Specialized financial institutions also operate in India, such as SIDBI which promotes MSMEs, NHB for housing, and Exim
This document outlines the banking system in India. It discusses that scheduled banks listed in the Reserve Bank of India Act are divided into scheduled commercial banks and scheduled cooperative banks. Scheduled commercial banks include public sector banks like the State Bank of India, nationalized banks, foreign banks, and private sector banks. Scheduled cooperative banks include regional rural banks and state/urban cooperative banks. The document then traces the evolution of banking in India from the pre-1950 period through phases of foundation, expansion, consolidation and reform. Key events discussed include nationalization acts, establishment of regulatory bodies, and committee recommendations regarding deregulation and privatization.
Introduction to World Banking StructureAakash Singh
The document provides an overview of the global banking structure and key details about some major international banks. It discusses the origins and evolution of the World Bank, describing its two main bodies: the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA). Statistics are presented on GDP and banking market capitalization by country. The banking structures of the United Kingdom, China, and United States are highlighted for comparison.
This document provides information about banks and banking in India. It begins by defining what a bank is, including definitions from the Banking Regulation Act of 1949. It describes the key functions of banks as accepting deposits from the public and using those deposits for lending and investment purposes. The document then discusses different types of banks such as scheduled and non-scheduled banks, public sector banks, private sector banks, foreign banks operating in India, and cooperative banks. It also covers the structure of the Indian banking system including the Reserve Bank of India and its roles and objectives.
Banks play a critical role in economic development by financing businesses and individuals. In India, banks cater to vast numbers of savers and provide financing needed for corporate and individual needs. Over time, banks have evolved, taking on new forms and services in response to economic changes. Today commercial banks in India accept deposits, provide loans, facilitate payments, support trade and development, and offer additional financial products and services.
This document provides an overview of the history and development of banking in India. It discusses 3 phases: the early phase from 1786 to 1969 which saw the establishment of the first banks but also failures; the nationalization phase from 1969 to 1991 where the government took control of private banks; and the new post-1991 phase of reforms and liberalization. It also describes the current banking structure in India including scheduled commercial banks, cooperative banks, and regional rural banks. Overall it traces the evolution of banking in India from its beginnings to the present system.
Banking history types services Revolution by bhushankBhushan Kasture
This document discusses the history and types of banking in India. It notes that 76% of Indians are not financially literate according to an S&P survey. It then provides information on the key laws governing banking in India - the Reserve Bank of India Act of 1934 and the Banking Regulation Act of 1949.
It discusses the origins of banking dating back to 2000 BC in ancient Assyria and Babylonia. It also outlines the various types of banks in India including central banks, commercial banks, cooperative banks, development banks, and investment/merchant banks. For each type of bank, it provides details on their roles and functions. In conclusion, it emphasizes how technology and e-banking have revolutionized the Indian
The document provides an introduction to the Indian banking system. It defines what a bank is, outlines key terms like deposits, loans, interest rates and required reserve ratios. It describes the major constituents of the Indian banking system, including the Reserve Bank of India, State Bank of India, commercial banks, regional rural banks, cooperative banks and development banks. It also discusses the roles banks play in mobilizing savings, credit creation, export promotion, and economic development overall.
The document provides an overview of the banking industry in India. It discusses key points:
- The Reserve Bank of India (RBI) acts as the central bank and regulates monetary policy, banking supervision, foreign exchange and more.
- India has a multi-tiered banking structure including retail banking for consumers, international banking, and wholesale banking for large corporations.
- Banks in India must follow regulations around capital requirements, priority sector lending targets, and controlling non-performing assets.
- Performance is measured using metrics like capital adequacy, asset quality, management efficiency, earnings quality, and more.
This document discusses commercial banks and their types and functions. It defines commercial banks as financial institutions that grant loans, accept deposits, and offer other financial services. It identifies three types of commercial banks: public sector banks which are nationalized by governments, private sector banks which are owned by private businesses, and foreign banks which are headquartered in foreign countries. It then discusses the key functions of commercial banks, including accelerating capital formation by mobilizing savings, providing finance and credit to trade and industry, developing entrepreneurship, promoting balanced regional development, and helping consumers.
1. Banks engage in traditional functions like accepting deposits, lending, and facilitating money transfers. They also offer secondary services like investment management, letter of credit issuance, and foreign exchange.
2. Banking in India consists of public sector banks, private sector banks, cooperative banks, and specialized development banks. The Reserve Bank of India acts as the central bank, regulating the financial system and managing monetary policy.
3. Banks engage in various types of relationships with customers, acting as creditors, trustees, agents, and providing services like deposits, loans, credit/debit cards, and merchant banking.
This document provides an overview of development finance institutions (DFIs) in India. It discusses that DFIs play an important role in allocating resources for economic development. In India, DFIs operate at both the national and state level. Some major national level DFIs include NABARD, IFCI, SIDBI, and IDBI. State level DFIs include SFCs, SIDCs, REC, and IDFC. Each organization is briefly described in terms of its founding, objectives, and roles in providing financing for agriculture, small businesses, infrastructure and industrial development projects.
The document discusses the key components of the Indian financial system including financial institutions, financial markets, financial instruments, and financial services. It provides definitions and examples of various types of institutions like commercial banks, cooperative banks, non-banking financial companies. It also describes different financial markets and instruments like money market, capital market, treasury bills, commercial papers, debentures etc. Finally, it outlines the evolution of the Indian financial system in three stages from pre-independence to post-liberalization.
A merchant bank provides a wide range of financial services such as underwriting shares, portfolio management, project counseling, credit syndication, and insurance. They facilitate international transactions for multinational corporations. For example, a US company wanting to acquire a German company would hire a merchant bank to advise on structuring the transaction and assist with financing. Merchant banks must be authorized by the Securities and Exchange Board of India (SEBI) and meet capital adequacy requirements to operate in India.
The financial system in India includes financial markets and institutions that facilitate the flow of funds between savers and borrowers. It mobilizes savings and promotes investment to support economic development. The key components are financial assets, intermediaries like banks and non-banking financial companies, and organized markets like the stock market, government securities market, and money market. Financial intermediaries channel funds between those who have capital and those who need capital. Together, financial markets and intermediaries comprise the backbone of India's financial system.
Banking Structure in India:
This presentation helps us to understand the basics of banking in India, its initiation, role and growth over the period of time.
This document outlines and describes 14 different types of banks:
1. Central banks are the supreme monetary institutions that act as pivots for their country's entire banking system, like the Reserve Bank of India.
2. Commercial banks perform ordinary banking activities like accepting deposits and lending loans. Some major commercial banks in India are the State Bank of India, Punjab National Bank, and Bank of India.
3. Co-operative banks are organized based on cooperative principles and accept public deposits and grant loans, operating under the Cooperative Societies Act.
The document then provides brief descriptions of development banks, investment banks, agricultural banks, exchange banks, international banks, and savings banks.
The document provides an overview of the Indian banking system. It discusses the history and evolution of banking in India from the establishment of the first bank in 1786 to the current system. It describes the key components of the current banking system including the Reserve Bank of India (RBI), scheduled commercial banks, cooperative banks, and tools used by RBI to regulate the system like cash reserve ratio, repo rate, and statutory liquidity ratio. The banking system has transitioned India to a strong economy with robust banking.
Banking involves accepting deposits that are repayable on demand or otherwise, and using those deposits to lend money or make investments. A banking company is any company that conducts banking business in India. Banking activities include accepting demand and time deposits from customers, lending money through various loans and facilities, and making investments in government securities. Banks also perform agency functions like collecting checks and bills, remitting funds, and providing locker facilities, as well as developmental functions like financial inclusion and loans to weaker sections. Currently, India has various types of banks including public sector banks, private sector banks, foreign banks, regional rural banks, and cooperative banks.
This document provides an overview of the banking sector in India. It discusses the definition of a bank according to Indian law and the history of banking in India in phases from the 18th century to present day. It also classifies the different types of banks in India including the Reserve Bank of India, public sector banks, private sector banks, cooperative banks, and development banks. The roles of commercial banks and investment banks are explained. Finally, it discusses modern modes of banking transactions such as e-banking, ATMs, debit cards, and credit cards.
The banking industry in India is governed by the Banking Regulation Act of 1949. It began in the late 18th century and saw major developments post-independence including the nationalization of banks in 1969. Today it includes both public and private sector banks as well as foreign banks. The industry has grown significantly in size and now includes over 67,000 branches across the country. However, it also faces challenges such as a lack of expertise in new products, increasing competition, and the impact of global financial crises. New trends include a focus on customer centricity, staff efficiency, and greater use of technology.
1. A bank is a licensed financial institution that accepts deposits and lends money. The first bank in India was the Bank of Hindustan in 1770. Banks in India are categorized as scheduled commercial banks, non-scheduled banks, and non-commercial banks like NABARD.
2. The State Bank of India was established in 1955 by merging several state-associated banks. In 1969 and 1980, the government nationalized major commercial banks to promote development. Currently there are 19 nationalized banks and public sector banks make up the majority of banks in India.
3. Specialized financial institutions also operate in India, such as SIDBI which promotes MSMEs, NHB for housing, and Exim
This document outlines the banking system in India. It discusses that scheduled banks listed in the Reserve Bank of India Act are divided into scheduled commercial banks and scheduled cooperative banks. Scheduled commercial banks include public sector banks like the State Bank of India, nationalized banks, foreign banks, and private sector banks. Scheduled cooperative banks include regional rural banks and state/urban cooperative banks. The document then traces the evolution of banking in India from the pre-1950 period through phases of foundation, expansion, consolidation and reform. Key events discussed include nationalization acts, establishment of regulatory bodies, and committee recommendations regarding deregulation and privatization.
Introduction to World Banking StructureAakash Singh
The document provides an overview of the global banking structure and key details about some major international banks. It discusses the origins and evolution of the World Bank, describing its two main bodies: the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA). Statistics are presented on GDP and banking market capitalization by country. The banking structures of the United Kingdom, China, and United States are highlighted for comparison.
This document provides information about banks and banking in India. It begins by defining what a bank is, including definitions from the Banking Regulation Act of 1949. It describes the key functions of banks as accepting deposits from the public and using those deposits for lending and investment purposes. The document then discusses different types of banks such as scheduled and non-scheduled banks, public sector banks, private sector banks, foreign banks operating in India, and cooperative banks. It also covers the structure of the Indian banking system including the Reserve Bank of India and its roles and objectives.
Banks play a critical role in economic development by financing businesses and individuals. In India, banks cater to vast numbers of savers and provide financing needed for corporate and individual needs. Over time, banks have evolved, taking on new forms and services in response to economic changes. Today commercial banks in India accept deposits, provide loans, facilitate payments, support trade and development, and offer additional financial products and services.
This document provides an overview of the history and development of banking in India. It discusses 3 phases: the early phase from 1786 to 1969 which saw the establishment of the first banks but also failures; the nationalization phase from 1969 to 1991 where the government took control of private banks; and the new post-1991 phase of reforms and liberalization. It also describes the current banking structure in India including scheduled commercial banks, cooperative banks, and regional rural banks. Overall it traces the evolution of banking in India from its beginnings to the present system.
Banking history types services Revolution by bhushankBhushan Kasture
This document discusses the history and types of banking in India. It notes that 76% of Indians are not financially literate according to an S&P survey. It then provides information on the key laws governing banking in India - the Reserve Bank of India Act of 1934 and the Banking Regulation Act of 1949.
It discusses the origins of banking dating back to 2000 BC in ancient Assyria and Babylonia. It also outlines the various types of banks in India including central banks, commercial banks, cooperative banks, development banks, and investment/merchant banks. For each type of bank, it provides details on their roles and functions. In conclusion, it emphasizes how technology and e-banking have revolutionized the Indian
The document provides an introduction to the Indian banking system. It defines what a bank is, outlines key terms like deposits, loans, interest rates and required reserve ratios. It describes the major constituents of the Indian banking system, including the Reserve Bank of India, State Bank of India, commercial banks, regional rural banks, cooperative banks and development banks. It also discusses the roles banks play in mobilizing savings, credit creation, export promotion, and economic development overall.
The document provides an overview of the banking industry in India. It discusses key points:
- The Reserve Bank of India (RBI) acts as the central bank and regulates monetary policy, banking supervision, foreign exchange and more.
- India has a multi-tiered banking structure including retail banking for consumers, international banking, and wholesale banking for large corporations.
- Banks in India must follow regulations around capital requirements, priority sector lending targets, and controlling non-performing assets.
- Performance is measured using metrics like capital adequacy, asset quality, management efficiency, earnings quality, and more.
This document discusses commercial banks and their types and functions. It defines commercial banks as financial institutions that grant loans, accept deposits, and offer other financial services. It identifies three types of commercial banks: public sector banks which are nationalized by governments, private sector banks which are owned by private businesses, and foreign banks which are headquartered in foreign countries. It then discusses the key functions of commercial banks, including accelerating capital formation by mobilizing savings, providing finance and credit to trade and industry, developing entrepreneurship, promoting balanced regional development, and helping consumers.
1. Banks engage in traditional functions like accepting deposits, lending, and facilitating money transfers. They also offer secondary services like investment management, letter of credit issuance, and foreign exchange.
2. Banking in India consists of public sector banks, private sector banks, cooperative banks, and specialized development banks. The Reserve Bank of India acts as the central bank, regulating the financial system and managing monetary policy.
3. Banks engage in various types of relationships with customers, acting as creditors, trustees, agents, and providing services like deposits, loans, credit/debit cards, and merchant banking.
This document provides an overview of development finance institutions (DFIs) in India. It discusses that DFIs play an important role in allocating resources for economic development. In India, DFIs operate at both the national and state level. Some major national level DFIs include NABARD, IFCI, SIDBI, and IDBI. State level DFIs include SFCs, SIDCs, REC, and IDFC. Each organization is briefly described in terms of its founding, objectives, and roles in providing financing for agriculture, small businesses, infrastructure and industrial development projects.
The document discusses the key components of the Indian financial system including financial institutions, financial markets, financial instruments, and financial services. It provides definitions and examples of various types of institutions like commercial banks, cooperative banks, non-banking financial companies. It also describes different financial markets and instruments like money market, capital market, treasury bills, commercial papers, debentures etc. Finally, it outlines the evolution of the Indian financial system in three stages from pre-independence to post-liberalization.
A merchant bank provides a wide range of financial services such as underwriting shares, portfolio management, project counseling, credit syndication, and insurance. They facilitate international transactions for multinational corporations. For example, a US company wanting to acquire a German company would hire a merchant bank to advise on structuring the transaction and assist with financing. Merchant banks must be authorized by the Securities and Exchange Board of India (SEBI) and meet capital adequacy requirements to operate in India.
The document provides an overview of the Indian financial system, including its key components and functions. It describes the structure of the Indian financial system, the main types of financial institutions (banking and non-banking), financial markets (organized and unorganized), instruments, and services. The financial system bridges the gap between savings and investment, facilitates trading, aids economic development, and encourages both savings and investment in India.
Banks play a key role in the Indian financial market as the largest providers of credit and attractors of savings. They have supported the growth and development of India. The Reserve Bank of India centrally monitors the banking system. Banks provide various financial services including taking deposits, lending loans, issuing credit/debit cards, fund transfers, and more. Private banks also offer services for high net worth individuals like tax planning and estate planning. A developed financial system is crucial for a country's economic growth.
The document discusses various financial services and sectors in India. It describes the growth of the banking, capital markets, insurance, and venture capital sectors. It also covers credit unions, stock brokerages, non-banking financial corporations, investment funds, and government sponsored enterprises. The key sectors discussed are banking, insurance, capital markets, and the various types of organizations that operate within these sectors such as banks, insurance companies, stock brokerages, and investment funds.
The document provides an overview of the Indian financial system and banking system. It discusses the key components of the financial system including financial institutions, financial markets, financial instruments, and financial services. It then describes the major players in the Indian financial sector including various regulators like RBI, SEBI, and IRDA. It also discusses the different types of banks operating in India based on their functions, ownership, and schedule under the RBI Act. Finally, it summarizes the roles and functions of commercial banks and the RBI.
This document provides an overview of the Indian financial system. It discusses the key components of the system including financial institutions, markets, instruments, and services. Financial institutions include banks, non-banking institutions, and intermediaries that link savers and investors. The markets are organized and unorganized, with the organized market including the capital market and money market. Financial instruments are traded assets like cash, securities, and ownership entities. Services within the financial system manage money and provide credit, banking, insurance, and investment opportunities. Overall, the financial system plays a vital role in allocating resources and facilitating economic development in India.
Indian financial system bfs sybms_financeYuti Nandu
The document outlines a syllabus covering basics of financial services across 4 units. Unit 1 covers the financial system, its components, markets, products and regulatory bodies. Unit 2 discusses commercial banks, the Reserve Bank of India, and development banks. Unit 3 covers the concept of insurance and different insurance products. Unit 4 explains mutual funds, their growth in India, and how they function.
The document provides information on the Banking, Financial Services and Insurance (BFSI) sectors in India. It describes the key components of each sector. The banking sector section explains the functions of banks which include accepting deposits and granting loans. It also discusses the various types of banks operating in India. The financial services sector section covers types of financial services like capital markets, retail banking, and fee-based services. Finally, the insurance sector section defines insurance and describes the structure and key types of insurance products and services available in India. It concludes by highlighting the growing market size of the BFSI sectors in India.
This document provides an overview of rural lending programs of commercial banks in India. It discusses the importance of rural credit for farmers and small businesses. It then describes the role of commercial banks in providing rural credit and their various loan programs targeted at agriculture and rural populations. It also discusses the types of commercial banks in India including private banks, public sector banks, foreign banks, and regional rural banks. Finally, it covers policies around branch expansion and sectoral allocation targets for priority sector lending.
This presentation provides an overview of financial services. It defines financial services as the services provided by the finance market, such as banks, investment banks, insurance companies, and stock brokerages. These financial services institutions help raise and deploy funds efficiently. The importance of financial services includes promoting a vibrant capital market, economic development, and growth. Features include being customer-intensive and intangible. Types of financial services discussed are banking, insurance, stock markets, treasury/debt instruments, wealth management, and mutual funds. The presentation also provides an overview of the Reserve Bank of India, its functions as the central bank such as issuing currency, acting as banker to the government, and being the lender of last resort.
This presentation provides an overview of financial services. It defines financial services as the services provided by the finance market, such as banks, investment banks, insurance companies, and stock brokerages. These financial institutions help raise and deploy funds efficiently. The importance of financial services includes promoting a vibrant capital market, economic development, and growth. Features include being customer-intensive and intangible. Types of financial services discussed are banking, insurance, stock markets, treasury/debt instruments, wealth management, and mutual funds. The presentation also provides an overview of the Reserve Bank of India, its functions as the central bank such as issuing currency, acting as banker to the government, and being the lender of last resort.
This presentation provides an overview of financial services. It defines financial services as the services provided by the finance market, such as banks, investment banks, insurance companies, and stock brokerages. These financial services institutions help raise and deploy funds efficiently. The importance of financial services includes promoting a vibrant capital market, economic development, and growth. Features include being customer-intensive and intangible. Types of financial services discussed are banking, insurance, stock markets, treasury/debt instruments, wealth management, and mutual funds. The presentation also provides an overview of the Reserve Bank of India, its functions as the central bank such as issuing currency, acting as banker to the government, and being the lender of last resort.
This presentation provides an overview of financial services. It defines financial services as the services provided by the finance market, such as banks, investment banks, insurance companies, and stock brokerages. These financial institutions help raise and deploy funds efficiently. The importance of financial services includes promoting a vibrant capital market, economic development, and growth. Features include being customer-intensive and intangible. Types of financial services discussed are banking, insurance, stock markets, treasury/debt instruments, wealth management, and mutual funds. The presentation also provides an overview of the Reserve Bank of India, its functions as the central bank such as issuing currency, acting as banker to the government, and being the lender of last resort.
The Indian financial system manages the flow of funds between savers and investors through various financial institutions and markets. It plays a vital role in economic development by mobilizing savings and facilitating investment. The key components of the Indian financial system are financial institutions like banks, markets like the money market and capital market, financial assets that are traded, services provided, and regulators that oversee the system.
This document provides an overview of a course on retail banking (PBS 204). The course contains 10 units that cover topics like retail banking products, home loans, personal loans, credit/debit cards, and Axis Bank products. Unit 1 discusses the definition, history and concepts of retail banking. It also differentiates between retail banking and corporate/wholesale banking. The course material will examine retail banking in India and how the industry has evolved from the pre-nationalization era to the post-liberalization period.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
financial intermediation business (1).pptSumit717679
Financial intermediaries collect savings from depositors and use these funds to purchase assets and issue claims against themselves. The key intermediaries are commercial banks, lease financing, hire purchase, venture capital, and securitization. Commercial banks are the largest and fastest growing financial intermediaries in India. They provide various services like bank accounts, loans, money transfers, credit/debit cards, and lockers. Reforms in the banking sector include interest rate deregulation, adoption of prudential norms, reduction in preemptions, and allowing new private banks. Asset liability management (ALM) matches bank assets and liabilities across various maturity periods to manage liquidity risk. Lease financing involves the owner of an asset providing it to a user
financial intermediation business (2).pptSumit717679
1. Financial intermediaries collect savings from others and issue claims against themselves, using the funds raised to purchase ownership or debt claims. Major intermediaries include commercial banks, lease financing, hire purchase, venture capital, and securitization.
2. Commercial banks are the oldest and largest financial intermediaries in India. They provide services like bank accounts, loans, money transfers, credit/debit cards, and lockers.
3. Lease financing and hire purchase are modes of financing that allow for the purchase of assets over time through periodic rental or installment payments, with ownership transferring at the end of the agreement. Both play an important role in providing access to capital.
This document discusses commercial banks and non-banking financial institutions. It defines commercial banks as financial institutions that accept deposits and provide loans. It describes their key functions like accepting deposits, providing loans, credit creation, fund transfers, and overdraft facilities. It also discusses recent trends in commercial banking like electronic payment services. The document then defines non-banking financial institutions and describes their role in mobilizing resources and providing long-term financing to support economic development.
Similar to Chapter 1 financial system and markets (20)
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
1. FINANCIAL SYSTEM AND MARKETS
DISCOVER . LEARN . EMPOWER
University School of Business
Bachelor of Commerce
Management of Financial Institutions and services
(CMT-224)
2. 2
Financial System
and Markets
CO
Number
Title Level
CO1 The students will be able to understand the financial
system of India.
Remember
CO2 The students would be able to understand the
functioning of various financial institutions of India.
Understand
CO3 The students would be able to gain knowledge about
the financial services in India.
Understand
Course Outcome
3. • Space for visual (size 24)
Write your content here ( font size16)
3
Financial System
and Markets
7. FINANCIAL INSTITUTION
Meaning-
•Financial institutions are businesses which offer multiple services in banking and finance.
•The services customers receive may include savings and checking accounts, loans, investments, and financial counseling.
•The benefits consumers gain by using financial institutions includes convenience, cost savings, safety, and security.
•Financial institutions are regulated to control the supply of money in the market and protect consumers.
Definition:
•A financial institution is an intermediary between consumers and the capital or the debt markets providing banking and
investment services.
•An organization, which may be either for-profit or non profit, that takes money from clients and places it in any of a
variety of investment vehicles for the benefit of both the client and the organization.
8. FUNCTIONS OF FINANCIAL
INSTITUTION
A. Accepting Deposits
B. Providing AgriculturalLoans
C. Providing Commercial Loans
D. Providing Real Estate Loans
E. Agency Functions
F. Utility Functions
G. Borrowing by government
H. Mobilization of funds
I. Maintaining Liquidity and safety
J. Managing the Banking risk
Credit Risk
Market RISK
Operational Risk
Liquidity Risk
Business Risk
System Risk
Reputational Risk
Moral Hazards Risk
8
9. TYPES OF FINANCIAL INSTITUTION
Wecan divide financial institution in two major parts as following:
1. Banking financial company(BFCs)
2. Non banking financial company(NBFCs)
Banking institution can use banking instruments like cheque ,draft ,pay order but non banking institution can not use these
instruments.
10. BANKING INSTITUTION
Banking institution are those institution who is provide banking and other financial services to their customers and society
such as :
• Accept deposits
• Provide loans
• Cash management services
• Portfolio management services
11. CONTINUE…
Wecan divide Indian banking system in following ways:
I. Commercial bank
A)Public sector bank
1) State bank
2) Nationalized bank
B)Private sector bank
a) Indian private bank
b) Foreign private bank
13. CONTINUE…
A)Public sector bank- public sector bank is divided into two group:-
• State bank of India- State bank of India was established under SBI act 1955,initialy 100% stake of SBI owner was
Reserve bank of India .
• Nationalized banks- Nationalized bank was established under banking company act 1970 initially 100% ownership of 20
nationalized bank was hold by government of India.
14. CONTINUE…
B) Private sector bank- Private bank can be divided into two parts;
1)Indian private bank- This type of bank governed by Indian financial institution like ICICI bank
,HDFC bank
2)Foreign private bank- this type banks governed by foreign institution like STANDARD CHARTED(USA) bank , HSBC
15. CONTINUE
C) Co-operative bank- These type bank are governed by co-operative societies:
1)Urban co-operative societies- These type bank are governed by urban co-operative society.
2)State co-operative banks- These type bank work on state level,
3)Central co-operative banks- These type bank work on district level
16. CONTINUE…
D) Regional rural banks-
RRB banks were established under RRB act 1976 these bank are closely related with the commercial bank which are specified
by the central government with lead bank scheme.
17. Non banking financial Institutions(NBFIs)
•NBFIs at present consist of a heterogeneous group of institutions that cater to a wide range of financial requirements.
•These type company are involved in promoting new company ,expansion and meeting the financial requirement of the
company for economic development
18. Non banking financial Institutions(NBFIs)
1.Development Financial Institutions:
A. At India level: It consists of IDBI,ICICI, IIBI, IRDC.
B. At state level: It consists of SFCs, SIDCs
2. Investment Institutions: It consists of LIC, GIC. UTI, MUTUAL FUND etc.
3. Specialized Institutions: like EXIM Bank, NABARD, HDFC, HUDFC, FFC, RECetc.
4. Non Banking Financial Entities
A. Non banking financial Companies: Equity leasing co., Hire purchase co., Investment Co., Loan Co., RNBCs.
B. Mutual Non banking Companies: Chit Fund
C. Mutual Benefit Financial Companies: NIDHIs
19. CONTINUE….• Industrial development bank of India(IDBI)- It is apex institution in the field of long term industrial finance it was set in
1964 as wholly subsidiary of RBI
• Industrial finance corporation of India(IFCI)-It was established in 1948, it provide assistance in long term loan,
underwriting of equity and guarantee of loans in foreign exchange.
• Export Import Bank of India (EXIM Bank)-it facilitates export and import trading in India.
• Small Industries Development Bank of India (SIDBI)-It provide assistance in small scale industry
• Life insurance corporation of India(LIC)-It provide all type insurance.
• Security and exchange board of India(SEBI)- It regulate all the activity in the Indian capital market
• NABARD (National bank for agriculture and rural development) – Nabard is working in India to promote
agricultureand rural development.
20. Financial Markets
It consists of institutional arrangements for dealing in financial assets and credit instruments of different types i.e.
currency, cheques, bank deposits, bills and bonds etc.
+Division of Financial Markets:
1. Capital Market:- It works for meeting Long term financial needs. It consists of Primary market and secondary
market
2. Money Market: It works for meeting short term financial needs. It consists of Commercial bill, treasury bills,
call money etc.
22. How is capital transferred between savers and
borrowers ?
• Direct transfers – stocks and bonds,
securities
• Investment banking house -
Underwriting
• Financial intermediaries – banks and
mutual funds
23. Financial Markets
It consists of institutional arrangements for dealing in financial assets and credit instruments of different types i.e. currency,
cheques, bank deposits, bills and bonds etc.
23-23
25. RISK MANAGEMENT IN FINANCIAL
INSTITUTION
23-25
• Financial risk management is the practice of economic value in a firm by using financial instruments to manage exposure
to risk: operational risk, credit risk and market risk, foreign exchange risk, shape risk, volatility risk, liquidity risk, inflation
risk, business risk, legal risk, reputational risk, sector risk etc.
•Similar to general risk management, financial risk management requires identifying its sources, measuring it, and plans to address
them
•Financial risk management can be qualitative and quantitative.
•As a specialization of risk management, financial risk management focuses on when and how to hedge using financial instruments to
manage costly exposures to risk
26. RISK MANAGEMENT IN FINANCIAL
INSTITUTION
23-26
• Financial risk management is the practice of economic value in a firm by using financial instruments to manage exposure
to risk: operational risk, credit risk and market risk, foreign exchange risk, shape risk, volatility risk, liquidity risk, inflation
risk, business risk, legal risk, reputational risk, sector risk etc.
•Similar to general risk management, financial risk management requires identifying its sources, measuring it, and plans to address
them
•Financial risk management can be qualitative and quantitative.
•As a specialization of risk management, financial risk management focuses on when and how to hedge using financial instruments to
manage costly exposures to risk
27. Managing Credit Risk
23-27
• A major part of the business of financial institutions is making loans, and the major risk with loans is that the
borrow will not repay.
• Credit risk is the risk that a borrower will not repay a loan according to the terms of the loan, either defaulting entirely
or making late payments of interest or principal.
• the concepts of adverse selection and moral hazard will provide framework to understand the principles to financial
managers and they must follow to minimize credit risk, yet make successful loans.
28. Managing Credit Risk
23-28
I. Solving Asymmetric Information Problems:
1. Screening and Monitoring:
─ collecting reliable information about prospective borrowers. This has also lead some institutions to specialize in
regions or industries, gaining expertise in evaluating particular firms
─ also involves requiring certain actions, or prohibiting others, and then periodically verifying that the borrower is complying
with the terms of the loan contract.
2. Specialization in Lending helps in screening. It is easier to collect data on local firms and firms in specific
industries. It allows them to better predict problems by having better industry and location knowledge
3. Monitoring and Enforcement also helps Financial institutions to write protective covenants into loans contracts and actively
manage them to ensure that borrowers are not taking risks at their expense.
29. Managing Credit Risk
23-29
II. Long-term Customer Relationships: past information contained in checking accounts, savings accounts, and previous
loans provides valuable information to more easily determine credit worthiness.
II. Loan Commitments: arrangements where the bank agrees to provide a loan up to a fixed amount, whenever the firm
requests the loan.
III. Collateral: a pledge of property or other assets that must be surrendered if the terms of the loan are not met ( the loans are
called secured loans).
IV. Compensating Balances: reserves that a borrower must maintain in an account that act as collateral should the
borrower default.
V. Credit Rationing:
• lenders will refuse to lend to some borrowers, regardless of how much interest they are willing to pay, or
• lenders will only finance part of a project, requiring that the remaining part come from equity financing.
30. Managing Interest-Rate Risk
23-30
• Financial institutions, banks in particular, specialize in earning a higher rate of return on their assets relative to the interest paid
on their liabilities.
• As interest rate volatility increased in the last 20 years, interest-rate risk exposure has become a concern for financial
institutions.
31. FINANCIAL SECTOR REFORMS
• Financial sector reforms refer to the reforms in the banking system and capital market.
• An efficient banking system and a well-functioning capital market are essential to mobilize savings of the households and
channel them to productive uses. The high rate of saving and productive investment are essential for economic growth.
31
32. • Prior to 1991 while the banking system and the capital market had shown impressive growth in the volume of operations,
they suffered from many deficiencies with regard to their efficiency and the quality of their operations.
• The weaknesses of the banking system was extensively analyzed by the committee (1991) on financial sector reforms,
headed by Narasimham.
• The committee found that banking system was both over-regulated and under-regulated.
• Prior to 1991 system of multiple regulated interest rates prevailed. Besides, a large proportion of bank funds was preempted
by Government through high Statutory Liquidity Ratio (SLR) and a high Cash Reserve Ratio (CRR).
• As a result, there was a decrease in resources of the banks to provide loans to the private sector for investment.
• This preemption of bank funds by Government weakened the financial health of the banking system and forced banks to
charge high interest rates on their advances to the private sector to meet their needs of credit for investment purposes.
• This was prominently revealed by 1992 scarcity scam triggered by Harshad Mehta. In this situation the quality of
investment portfolio of the banks deteriorated and culture of’ non-recovery’ developed in the public sector banks which
led to a severe problem of non-performing assets (NPA) and low profitability of banks.
32
33. • Financial sector reforms aim at removing all these weaknesses of the financial system.
• Under these reforms, attempts have been made to make the Indian financial system more viable, operationally efficient,
more responsive and improve their allocative efficiency.
• Financial reforms have been undertaken in all the three segments of the financial system, namely banking, capital market
and Government securities market.
33
34. TYPES OF FINANCIAL SECTOR
REFORMS:
• Reduction in Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR)
• End of Administered Interest Rate Regime
• Prudential Norms: High Capital Adequacy Ratio
• Competitive Financial System
• Non-Performing Assets (NPA) and Income Recognition Norm
• Elimination of Direct Credit Controls
• Promoting Micro-Finance to Increase Financial Inclusion
• Setting up of Rural Infrastructure Development Fund (RIDF)
• Pension Reforms
34
35. CONCLUSION….
• Financial institution is very essential part of financial system.
• Financial institution play a vital role in economic development
• Indian financial institutions are very strong but its operation is very poor quality we, Indian make very good plan but in
implication we are lacking in somewhere.
• Wehave full range of financial institution bur we can not use in effective manner.
• Managing Credit Risk: basic techniques for managing relationships and rationing credit were reviewed.
• Managing Interest-Rate Risk: the essential techniques of measuring interest-rate risk for both income and
capital affects were presented
36. ASSESSMENT PATTERN
• MST-1 : 36
• MST-2 : 36
• FINAL EXAM: 60
• INTERNAL MARKS (40) COMPRISES OF:
1. MST-1
2. MST-2
3. SURPRISE TEST
4. PRESENTATION BY STUDENT
5. ASSIGNMENT
36
38. BIBILOGRAPHY
• WWW.WIKIPEDIA.COM
• THE INDIAN BANKING SECTOR ON THE ROAD TO PROGRESS- G. H. DEOLALKAR
• COUNCIL ON FOREIGN RELATIONS, IIGG INTERACTIVE GUIDE TO GLOBAL FINANCE
–ARTICLE
• NON BANKING INSTITUTION –PROJECT REPORT