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Unit-II.pptx FINANCIAL INSTITUTIONS UNIT
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- 2. Financial Institutions inIndia • Structure, Roles, and Functions • Your Name | Course | Date
- 3. Introduction • • Definitionof Financial Institutions • • Importance in Economic Development • • Classification: Regulatory, Intermediary, and Developmental Institutions
- 4. Reserve Bank ofIndia (RBI) – An Overview • • Established: 1935 • • Headquarters: Mumbai • • India’s Central Bank • • Regulates monetary and financial system
- 5. Functions of RBI •• Monetary Authority • • Regulator of Financial System • • Issuer of Currency • • Custodian of Foreign Exchange • • Developmental Role • • Banker to the Government • • Banker’s Bank
- 6. Role of RBI •• Maintaining Price Stability • • Controlling Inflation • • Promoting Economic Growth • • Supervising Banks • • Ensuring Financial Inclusion
- 7. Commercial Banks –Introduction • • Definition: Banks that accept deposits and provide loans • • Examples: SBI, ICICI, HDFC • • Operate under RBI guidelines
- 8. Functions of CommercialBanks • • Accepting Deposits • • Granting Loans and Advances • • Agency Functions (collection of cheques, etc.) • • General Utility Services (locker, ATM, etc.)
- 9. Role of CommercialBanks • • Mobilizing Savings • • Providing Credit • • Supporting Trade and Industry • • Promoting Entrepreneurship • • Facilitating Capital Formation
- 10. Development Banks –Overview • • Provide long-term finance to industrial and agricultural sectors • • Key Institutions: NABARD, SIDBI, EXIM Bank
- 11. NABARD – Functions •• Agricultural and Rural Development • • Refinance support to rural banks • • Credit planning and monitoring • • Promoting Self Help Groups (SHGs)
- 12. SIDBI – Functions •• Small Industries Development Bank of India • • Financing MSMEs • • Promotes entrepreneurship • • Provides direct and indirect loans
- 13. EXIM Bank –Functions • • Export-Import Bank of India • • Promotes international trade • • Offers financial assistance for exporters and importers • • Provides Lines of Credit to overseas entities
- 14. NBFCs – Introduction •• Companies providing banking-like services without a banking license • • Regulated by RBI under the Companies Act, 1956/2013
- 15. Types of NBFCs •• Asset Finance Company (AFC) • • Loan Company • • Investment Company • • Infrastructure Finance Company • • Micro Finance Institutions (MFIs)
- 16. Functions of NBFCs •• Providing Loans and Credit Facilities • • Leasing and Hire Purchase • • Investment in Securities • • Wealth Management • • Micro-financing
- 17. Insurance Companies –Overview • • Offer risk management by pooling risks • • Life Insurance and General Insurance • • Regulated by IRDAI
- 18. Functions of InsuranceCompanies • • Risk Coverage • • Mobilization of Long-Term Funds • • Promoting Saving Habits • • Supporting Infrastructure Development
- 19. Mutual Funds –Overview • • Investment vehicle that pools money from investors • • Managed by professional fund managers • • Regulated by SEBI
- 20. Functions of MutualFunds • • Pooling of Funds • • Diversification of Risk • • Professional Investment Management • • Easy Liquidity and Transparency
- 21. Summary • • RBI– Regulates the financial system • • Commercial Banks – Offer core banking services • • Development Banks – Focus on long-term development • • NBFCs – Provide diverse financial services • • Insurance & Mutual Funds – Promote security and investment
- 22. Q&A / ThankYou • • Invite questions • • Acknowledge audience • • Contact info (optional)