In this ebook of Indian Banking System and Financial Institutions PDF Notes, we have covered the complete syllabus as per the latest pattern of NTA UGC NET Commerce. At the end of the unit, there is a list of potential MCQs.

Indian Banking System and Financial Institutions PDF Notes eBook – UGC NET Commerce Contents:

1 Overview of Indian financial system Notes
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 Digitisation 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.

Indian Banking

The Financial System of any country consists of financial markets, financial intermediation, and financial instruments or financial products. 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.

Financial Institutions 

The term “finance” in our simple understanding it 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.

The American Heritage Dictionary of the English Language, Fourth Edition defines the term as under-

1:”The science of the management of money and other assets.”;

2: “The management of money, banking, investments, and credit. “;

3: “finances Monetary resources; funds, especially those of a government or corporate body”

4: “The supplying of funds or capital.”

Finance as a function (i.e. verb) is defined by the same dictionary as under-

1:”To provide or raise the funds or capital for”: financed a new car

2: “To supply funds to”: financing a daughter through law school.

3: “To furnish credit to”.

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Complete UGC NET Commerce Printed Book Notes

Indian Banking System – Indian banking and financial institutions PDF Notes play a critical role in the country’s economy. The Reserve Bank of India (RBI) serves as the central bank, responsible for monetary policies and regulating the banking system. The sector comprises scheduled commercial banks, categorized into Public Sector Banks (PSBs) and Private Sector Banks. Cooperative banks cater to specific communities. Non-Banking Financial Companies (NBFCs) provide financial services without a banking license. Insurance companies offer life, health, and property insurance. Stock exchanges like BSE and NSE facilitate trading, while SEBI regulates the securities market. Pension funds, mutual funds, and EXIM Bank also contribute to India’s financial landscape. The National Payments Corporation of India (NPCI) manages retail payment systems, including UPI. These institutions contribute to India’s economic growth and stability.