Banking - Understanding Structures And Functions Of A Bank
The course on "Basics of Banking" deals with early history of commerce and trade starting with barter system, which is later culminated into the present day banking. It can be seen that an early version of banking system existed in India, as back as 300 B.C. The early writings of the travellers during the reign of Gupta and Mughal empire, give testimoney to this fact. They had mentioned about "rnapatra" , "adesha" an equivalent instrument to the present day cheque.
The rich persons of those times, especially zamindars acted like money lenders and they were using such type of instruments including Bill of Exchange, which were freely traded between the traders. By the opening of three Presidency banks in the early 19th centrury, at India’s three locations, true banking activities started. Till the set up of the RBI, these three banks dominated entire banking activities, including issue of notes. There were no regulator to supervise their activities. With the establishement of RBI, a lot of things in the banking system got improved and RBI encouraged financial entities to start new banks, although a few existed. After the opening of State Bank of India, banking activities flourished and it became the first big bank, after merger of Imperial bank, which was by then a merged entity of all Presidency banks. The post-independance era was a golden period for the banking industry.
The first nationalisation of banks in 1969, gave an impetus to open their branches at far-flung areas, where there were no banks, but only money lenders occupied the banking space, who used to exploit the poor and downtrodden people by charging high interest rates ; and also forcing them to pledge / mortgage their belongings and properties. They could hardly repay the loan. India saw tremendous change in the banking field after the second nationalisation of banks, which have helped fresh industries to bloom, which were otherwise having short of funds. The Role of RBI, its functions, rights etc. were discussed in detail.
As a regulator and supervisor for all financial institutions in the country, it manages the country’s economic activity and stability in the domestic and international market. Under the Central Board, RBI Governor alongwith the Dy. Governors, Directors and other teams formulate Monetary Policy. Other regulatory and supervisory activities are carried out by RBI. Different departments under RBI manage their allocated works effectively so as to maintain the equilibrium of the banking and financial systems in the country. It’s sole authority to issue currency notes and its maintenance can not be consiered as insignificant.
The authority to issue of licence to start any banking activity and its cancellation, if any, at a later stage lies with RBI. It is vested with powers to inspect and audit banks any time and to take appropriate action to streamline their activities. Definition and regulation of banks as clarified by RBI and relevant acts issued and amended from time to time, to suit the changing scenario of banking are clarified in detail. By using the different and appropriate monetary tools, RBI maintain the balance of money supply. Timely revision of CRR and SLR by RBI manages liquidity of funds in the market so as to curb inflation and accelerate economic growth. RBI is also the Govt.’s bank, banker’s bank and manages the country’s foreign exchange reserves to maintain stability of the currency as also to absorb any economic shock either from inside or outside the country. Payment and Settlement System of India is effectively controlled and managed by RBI. They monitor country’s balance of payment situation and takes necessary measures to maintain the right balance. The role played by RBI with regard to loans and advances by Commercial banks is notable. They control banks by timely monitoring and taking proactive steps to bring them into line within the stipulated rules. A detailed description on Non Banking Financal Companies and their activities, monitoring thereof by the RBI gives a clear picture to the readers. The relationship between a banker and customer depending upon the various functions, as per the Contract 1872, is also clarified. Duties and rights of banks are also critically examined.
The typical functions of a bank and how it creates credit out of its resources, are shown by illustration, by which readers can easily understand and remember. Finally, how banks assist in the overall economic growth of country by providing timely financial assistance to the needy sector, having the right approach, without any bias and reaching to the customer in times of crisis / need are narrated in a lucid manner.
How to Use:
- Your course will be activated by eduCBA.
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- The course will be served online on www.educba.com
|Stream||Banking & Finance|
|Operating Software||Windows XP or higher|
Section 1: Overview of Banking Sector
- 1 Introduction to Basics of Banking 09:08 - In this video tutorial you will learn how the commerce started in the absence of banking system in the early period and concept and evolution of banking from the early history dating back to 300 BC.
- 2 Learning about economic growth & industrialization 08:23 - In this video tutorial you will learn starting of modern banking and establishment of few banks in India at major cities and formation of various provincial banks in other locations
- 3 Functions of Regulations & Supervision 05:51 - Through this video tutorial you will learn various functions of banks related to regulations & supervisions
- 4 Functions of Research Activities 06:30 - Through this video tutorial you will learn various functions of banks related to research activities
- 5 Functions of Support Activities 07:39 - Through this video tutorial you will learn various functions of banks related to support activities
Section 2: Statutory Ratios
- 6 Reserve Bank of India Ratios 05:57 - Through this video tutorial you will learn Indian Central Bank ratios
Section 3: Roles of Reserve Bank of India
- 7 Currency Management 07:45 - Through this video tutorial you will learn about currency management role of RBI
- 8 Banker & Debt Manager to Government 05:53 - Through this video tutorial you will learn another role of RBI i.e. Banker & Debt Manager to Government
- 9 Credit Control 07:21 - Through this video tutorial you will learn credit control role of RBI
- 10 Foreign Exchange Reserves Management 07:49 - Through this video tutorial you will learn another role of RBI i.e. Foreign Exchange Reserves Management
Section 4: Payment and Settlement Systems
- 11 Payment Licensing 07:33 - Through this video tutorial you will learn about payment licensing
- 12 Settlement Systems 05:26 - Through this video tutorial you will learn settlement systems
Section 5: Non Banking Financial Companies
- 13 Banking Regulation Act 07:33 - Through this video tutorial you will learn about Banking Regulations Act
- 14 Powers with RBI 09:58 - Through this video tutorial you will learn about various powers with RBI
- 15 Non-Banking Financial Companies 08:30 - Through this video tutorial you will learn functions of Non-Banking Financial Companies
Section 6: Learning about various relationships & functions of banks
- 16 Banker-Customer Relationship 08:43 - Through this video tutorial you will be learning about banker-customer relationship
- 17 Continuation of Banker-Customer relationship 07:40 - Through this video tutorial you will be learning about continuation of banker-customer relationship
- 18 Terms under Banker-Customer relationship 07:39 - Through this video tutorial you will be learning about terms & conditions needs to be followed under banker-customer relationship
- 19 Typical Functions of a Bank 06:32 - Through this video tutorial you will be learning about typical functions of a bank
- 20 Functions of Banks and Role in Economic Development 08:58 - Through this video tutorial you will be learning about functions of banks and its role in economic development