Indian Financial System – Components and Functions

Indian Financial System

Indian Financial System – An Overview Indian Financial System : A Financial system means the structure that is available in an economy to mobilize the capital from various surplus sectors to the economy and allocate & distribute the same to the various needy sectors. The transformation of Savings into investment & Consumption is facilitated by … Read more

Cash Reserve Ratio, Statutory Liquidity Ratio and difference between them

Cash Reserve Ratio

What is CRR or Cash Reserve Ratio? The Reserve Bank of India or RBI mandates that banks store a proportion of their deposits in the form of cash so that the same can be given to the bank’s customers if the need arises. The percentage of cash required to be kept in reserves, vis-a-vis a … Read more

Money Market Instruments – Meaning, Objectives, Types, and features

Money Market

What Is the Money Market? The money market refers to trading in very short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders. At the retail level, it includes mutual funds bought by individual investors and money market accounts opened by bank customers. A money market is a component of … Read more

Cooperative Banks in India: definition and history of cooperative banking

Cooperative Banks

Cooperative Banks Cooperative bank is an institution established on the cooperative basis and dealing in ordinary banking business. Like other banks, the cooperative banks are founded by collecting funds through shares, accept deposits and grant loans. A Cooperative Bank is a cooperative society engaged in the business of banking. The co-operative banks, functioning in one … Read more

Primary Dealers (PDs): Definition, Type and functions of PDs

Primary Dealers

Primary Dealers (PDs): Definition, Type and functions of PDs Definition: Primary dealers are registered entities with the RBI who have the license to purchase and sell government securities.  They are entities who buys government securities directly from the RBI (the RBI issues government securities on behalf of the government), aiming to resell them to other … Read more

NBFC: What is Non-Banking Financial Companies

Non-Banking Financial Companies (NBFCs)

Non-Banking Financial Companies (NBFCs) In this post, we shall discuss Non-Banking Financial Company (NBFC) and how they are different from Banks. We shall discuss the most important points about NBFCs that are important from the exam point of view. Definition: A non-banking financial company is that financial institution which provides the banking services to the … Read more

What is Commercial Bank – Definition, Types, Functions

Commercial Bank – Definition, Types, Functions

What is Commercial Bank – Definition, Types, Functions Commercial Bank Definition, Types, Primary and Secondary Functions of Commercial Banks – Commercial Banks are banking institutions that are engaged in financial services like – accepting deposits, granting short term loans and advances to the customers. Along with this, commercial banks also offer medium and long term … Read more

Role of RBI in Indian Banking System

Role of RBI in Indian Banking System

Role of Reserve Bank of India (RBI) in Indian banking system Here we are going to study the role of RBI in Indian banking system. Establishment: The Reserve Bank of India was established in 1935 under the provisions of the Reserve Bank of India Act, 1934 in Calcutta, eventually moved permanently to Mumbai. Though originally … Read more