D. Mishra, a former chief general manager of RBI, gave a presentation on savings, investment, banking, and regulation. The presentation covered several topics: - The significance of financial literacy for financial inclusion, growth, and prosperity. - Objectives of financial inclusion like affordable access to financial services for disadvantaged groups. - Benefits of financial literacy like informed decision making and entrepreneurship promotion. - Principles of financial planning and saving like understanding expenses, plugging non-essential spending to increase savings, and saving regularly in a bank account. - Overview of the formal Indian financial system including regulators, banks, non-banking financial institutions, and capital markets.

1. SAVINGS, INVESTMENT ,
BANKING AND REGULATION
PRESENTATION BY : D.MISHRA
( F O R M E R C H I E F G E N E R A L M A N A G E R , R B I )
BHUBANESWAR
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Investor Awareness
PROGRAM

2. FINANCIAL LITERACY – SIGNIFICANCE
Investor Awareness Program
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Financial literacy plays a crucial role in
financial inclusion, inclusive growth
and sustainable prosperity.
Financial literacy has been accorded
National Priority under Pradhan
Mantri Jan Dhan Yojana( PMJDY).

3. Financial Inclusion
Investor Awareness Program
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Basic Objective :
Delivery of financial services at an
affordable cost to the vast sectors of
the disadvantaged and low income
groups.

4. FINANCIAL LITERACY : THE NEED
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Benefits : According to National Strategy for Financial
Education ( NSFE):
 Knowledge and skill: Individuals can take an
informed decision.
 Avoidance of over indebtedness.
 Promoting entrepreneurship.
Financial literacy : to be part of curriculum in
Class VI- XII: Karnataka first state to start in
2009-10.

5. FINANCIAL PLANNING & SAVING
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CARDINAL PRINCIPLES
 Understand Your Expenses
 Do not spend more than your Income
 Plug Non –essential expenditure & Increase your
Savings
 Achieve your Goal with Financial Planning
 Think twice before spending
 The less you spend the more you save
 Save Money for Life-cycle needs
 Save your money in bank accounts

6. WHY SAVINGS
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 SAVINGS SAVE MONEY FOR LIFE CYCLE NEEDS
 DO NOT LOOSE YOUR HARD EARNED MONEY,
ALWAYS SAVE IN A BANK ACCOUNT SAVING
ACCOUNT IN A BANK IS THE KEY TO ALL OTHER
SERVICES
 BANK IS NOW AVAILABLE AT YOUR DOOR STEP

7. Investment Mantras
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 Money Grows with time ( understand
time value of money)
 Reap the benefits of compounding
 Start early and stay invested longer
 Invest consistently

8. Borrowings
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 MANAGE YOUR DEBT OTHERWISE DEBT WILL
DAMAGE YOU
 BORROW TO UNDERTAKE AN ACTIVITY WHICH
ENHANCES YOUR INCOME
 BANKS ARE TRANSPARENT AND CHARGE LESS
INTEREST A BANK MEETS ALL YOUR
REQUIREMENTS

9. Formal Financial System
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 Reserve Bank of India
 APEX Banks:
NABARD, SIDBI, National Housing Bank
 Banking system: Commercial banks, Co-operative
banks, RRBs , Payment Banks, Small Finance Banks.
 NBFCs : NBFCs registered with RBI
 Capital Market
 Insurance Sector

10. INDIAN BANKING SYSTEM
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PUBLIC SECTOR BANKS : 27
NATIONALISED BANKS : 19
STATE BANK OF INDIA and ASSOCIATES : 6
OTHER NATIONALISED BANKS : 2
PRIVATE SECTOR BANKS : 13
NEW PRIVATE SECTOR Banks : 8
FOREIGN BANKS : 43
REGIONAL RURAL BANKS : 56
LOCAL AREA BANKS : 4

11. NEW TYPE OF BANKS
ABHYUTTHANA FINANCIAL LEARNING
CENTRE , BHUBANESWAR
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 SMALL FINANCE BANKS : RBI has given “ in
principle” approval to 10 entities in September 2015
( The first such bank : Capital Small Finance Bank Ltd
opened on April 24, 2016)
 PAYMENT BANKS : RBI given “ in principle”
approval to 11 entities in September 2015.
 MUDRA BANK : Launched by Hon’ble Prime
Minister on April 8, 2015

12. MUDRA BANK
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 Micro Units Development & Refinance Agency Ltd
 Objective : To “fund the unfunded”
 Set up by Government of India: Subsidiary of SIDBI:
Registered as NBFC with RBI
 PM Mudra YOJANA: ( PMMY): Products / Schemes
created

13. MUDRA BANK
Investor Awareness Program
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 PM MUDRA YOJANA:
Schemes:
Sishu: Loans up to Rs 50,000
Kishor : Loans between Rs. 0.50 –Rs. 5.00 lakh
Tarun : Rs. 5.00 lakh- Rs 10.00 lakh.
Status for Odisha As on May 06.05.2016
No of Accounts : Amount ( Rs crore)
Sishu 3,73,704 692.77
Kishor 2,971 43.43
Tarun 501 29.95
TOTAL : 377,176 766.15

14. Why to deal with Banks
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 Banks are regulated by Reserve Bank of
India.
 Deposit Insurance of Deposit Insurance &
Credit Guarantee Corporation of India
( DICGCI) available to bank accounts.
Grievance Redressal System : BANKING
OMBUDSMAN
STEP INTO THE BANK
STEP OUT OF POVERTY

15. BANK AND BANKING
ABHYUTTHANA FINANCIAL LEARNING
CENTRE , BHUBANESWAR
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BANKS ARE REGULATED BY RBI under BANKING REGULATION ACT,
1949
“Banking” means :
 Accepting Deposits of money from public
 For the purpose of Lending or Investment
 Deposit is repayable on demand
 Withdrawable by cheque, draft, or otherwise.
Bank: A company that transacts business of banking.
No firm or individual to carry its business can use
words “ Bank” , “Banker” or “ Banking” in its name

16. MOBILE BANKING AND MOBILE WALLET
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 Unique opportunity to leverage the mobile platform
to meet the objectives and challenges of financial
inclusion. Mobile subscribers (1018 million) out
number the bank accounts.
 IMPS introduced in 2010 to facilitate immediate
funds transfer.
 Mobile wallets for non-banks including MNOs
 NPCI is launching shortly Unified Payments
Interface. (UPI)

17. MOBILE BANKING
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
MOBILE BANKING

18. Important Measures for Bank Customers
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 Opening of Bank Accounts by Minors
 Business Correspondents (BCs) : More
Liberalisation
: NBFC as BC and Distance Criteria
 Liberalisation of KYC Norms
 ATM Use: Rationalisation of number of free
transactions
 Introduction of White Label ATMs:
Example: Tata Communications Payment Solutions
Srei Infrastructure Finance Ltd.

19. Force of Compounding
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20. FUNCTIONS OF RBI
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 Monetary policy ( Monetary Authority)
 Regulation and supervision of the
banks and NBFCs. ( Banking
Regulator)
 Currency Management.
 Public Debt Management

21. FUNCTIONS OF RBI
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 Banker to banks
 Banker to Government
 Management of foreign exchange
reserve ( Presently : US $ 350 billion)
 Oversight of the payment system
OVERALL FINANCIAL STABILITY

22. Milestone Schemes of Government of India
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 PRADHAN MANTRI JAN DHAN YOJANA
 PRADHAN MANTRI JEEVAN JYOTI BIMA
YOJANA
 PRADHAN MANTRI SURAKSHA BIMA YOJANA
 ATAL PENSION YOJANA

23. ATAL PENSION YOJANA
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24. PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA
Investor Awareness Program
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25. PRADHAN MANTRI SURAKSHA BIMA YOJANA
Investor Awareness Program
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THANK YOU