Banking and Financial System of any country consist of financial markets, financial institutions & intermediation and financial instruments or financial products for UGC NET Commerce. This paper discusses the meaning of finance and the Indian Financial System and focuses on the financial markets, financial intermediaries and financial instruments. A brief review of various money market instruments is also covered in this study.
The term “finance” in our simple understanding is perceived as equivalent to ‘Money’. We read about Money and banking in Economics, about Monetary Theory and Practice and about “Public Finance”. But finance exactly is not money, it is the source of providing funds for a particular activity. Thus public finance does not mean the money with the Government, but it refers to sources of raising revenue for the activities and functions of a Government. Here some of the definitions of the word ‘finance’, both as a source and as an activity i.e. as a noun and a verb.
Contents of Banking & Financial Institutions for UGC NET Commerce
|CH. NO.||TITLE||PAGE NO.|
|1||Overview of Indian financial system|
|2||Types of banks: Commercial banks; Regional Rural Banks (RRBs); Foreign banks; Cooperative banks|
|3||Reserve Bank of India: Functions; Role and monetary policy management|
|4||Banking sector reforms in India: Basel norms; Risk management; NPA management|
|5||Financial markets: Money market; Capital market; Government securities market|
|6||Financial Institutions: Development Finance Institutions (DFIs); Non-Banking Financial Companies (NBFCs); Mutual Funds; Pension Funds|
|7||Financial Regulators in India|
|8||Financial sector reforms including financial inclusion|
|9||Digitization of banking and other financial services: Internet banking; mobile banking; Digital payments systems|
|10||Insurance: Types of insurance- Life and Non-life insurance; Risk classification and management; Factors limiting the insurability of risk; Re-insurance; Regulatory framework of insurance- IRDA and its role|