Beruflich Dokumente
Kultur Dokumente
RBI
Commercial Banks
Co-operative Banks
Banking Institutions
NBFIs
Foreign Banks
Specialized Institutions
Functions Of RBI
Issue Of bank notes: Issues and exchanges or destroys currency and coins not fit for circulation. Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality. 1. issue department 2. Banking department ( replenish currency) Currency Chest Offices of the issue department in ten cities
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Currency chests are boxes or containers in which stocks of new or re-issuable notes and coins are stored. Acts as a bankers, agent and advisor to government Acts as bankers bank Monetary Authority: Formulates, implements and monitors the monetary policy. Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors. Regulator and supervisor of the financial system: Prescribes broad parameters of banking operations within which the country's banking and financial system functions.
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Objective: maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public. Manager of Foreign Exchange Manages the Foreign Exchange Management Act, 1999. Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India. Controller of credit (changing the bank rate) Developmental role Performs a wide range of promotional functions to support national objectives.
Commercial Banks
1. 2. 3. 4. 5. 6. 7.
Most important depositories of public savings and the most important lenders. the commercial banking in India has social control and public ownership. Their objective is to make profit. Commercial bank include : Scheduled banks Non Scheduled banks Indian banks Foreign banks Public sector Private sector Regional rural banks
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1. 2. 3. 4. Indian banking can be broadly classified into Nationalized Private Co-operative banks Specialized banking RBI as the centralized body monitoring any discrepancies and shortcomings in the system.
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They are entitled to receive refinance facilities from RBI. They also get currency chest facilities. In case of emergencies they can obtain fianc from the RBI Scheduled banks have to submit several returns to the RBI. Obliged to comply with the directions received from RBI. Closely watched and controlled by RBI. Nationalized banks are included in scheduled banks.
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After nationalization these banks started rendering various types of services assuming social responsibilities. Government implement various welfare schemes through these banks. They are also known as public sector banks. The commercial banks which are not included in the 2nd schedule of The RBI act 1934 are called non-schedules banks. Not eligible for refinance, rediscounting facilities from RBI.
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They do not get the privileges that are available to the scheduled banks. They are mainly engaged in money lending, discounting and collecting bills and various other agency services. Therefore they insist higher security for loans.
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1. Profitability Liquidity Safety Social welfare PUBLIC SECTOR BANKS: These are banks which the government either owns or has a majority stake in. 2. These came into being through nationalization. 3. Imperial bank was nationalized in 1955 and became SBI 4. Later in 1960 other banks were also nationalized.
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Apart from undertaking the functions of a commercial bank the SBI is also authorized to act as a agent of the RBI at all places in INDIA. PSU were established for local concern. Some called it political gimmick.
FOREIGN BANKS
These are branches of banks incorporated outside India. EX. Standard Chartered, Citibank, ABN Amro etc. Focus of large corporate accounts Assessing the viability of joint ventures of Indian firms with foreign companies. Information on local taxation Ownership issues Structuring of project cost. Financing exports and imports Entry norms are expected to be easy.
Co-operative Banks
Co-operative banking started in India in 1904. Financing rural and agricultural development. They also work on no profit no loss State co-operatives Central co-operatives Urban co-operatives Primary agriculture credit societies Land development banks. Guidelines issued by RBI Can take part in Money market and capital market
Rural co-operatives
Provide short term credit to farmers and other small borrowers for productive purposes at the grass root level at the villages