Wednesday, December 12, 2012


01. RBI was established during the year, 1935
02. RBI act was enacted during 1934
03. RBI has three main functions namely; traditional functions, development functions and regulatory functions
04. The traditional functions consist of issue of currency, forex management and miscellaneous functions.
05. The miscellaneous functions include export assistance, clearing house functions, change of currency, transfer of currency, publication of statistics and other information, training in banking
06. The development functions mainly consist of agriculture development, promotion of industrial finance, promotion of export through refinance, development of bill market and development of banking system
07. The regulatory functions mainly consist of qualitative credit control, bank rate, differential rate of interest, open market operations, CRR, SLR, direct action, credit authorization scheme and moral persuasion
08. The financial system comprises – financial markets, financial assets and financial intermediaries and institutions
09. Financial markets are classified into money market and capital market
10. The capital market consists of the following financial instruments namely; government or gilt edged securities, corporate securities, shares, debentures, public deposits and loan from institutions
11. The financial regulatory authorities in India consist of RBI, SEBI and IRDA
12. The money market terms are: money market, call money, notice money, term money, held till maturity, yield to maturity, coupon rate, treasury operations and gilt edged securities
13. The financial instruments consist of bills, treasury bills, promissory notes, hundies, certificate of deposits and commercial papers.
14. Stock exchanges are available in important cities in the country
15. Mumbai stock exchange – Mumbai
16. National stock exchange – Mumbai
17. Ahmedabad stock exchange – Ahmedabad
18. Bangalore stock exchange – Bangalore
19. Bhubaneswar stock exchange – Bhubaneswar
20. Kolkatta stock exchange – Kolkatta
21. Cochin stock exchange – Cochin
22. Coimbatore stock exchange – Coimbatore
23. Delhi stock exchange – Delhi
24. Guwahati stock exchange – Guwahati
25. Hyderabad stock exchange - Hyderabad
26. Jaipur stock exchange – Jaipur
27. Ludhina stock exchange – Ludhiana
28. Madhya Pradesh stock exchange – Indore
29. Chennai stock exchange – Chennai
30. Magadh stock exchange – Patna
31. Mangalore stock exchange – Mangalore
32. Meerut shah stock exchange – Meerut
33. OTC Exchange of India – Mumbai
34. Pune stock exchange – Pune
35. Capital stock exchange of India – Trivandrum
36. Uttar Pradesh stock exchange – Kanpur
37. Vadadora stock exchange – Vadadora
38. There are different types of banks namely; savings bank, commercial bank, Industrial bank, development bank, Land development bank, indigeneous bank, central bank, cooperative bank, exchange bank, consumer bank
39. Banks have the following functions namely; primary functions, secondary functions and social development functions
40. The primary functions consist of accepting deposits namely; fixed deposit, savings bank, current account, recurring deposit, demat account
41. The primary functions consist of granting different categories of loans namely; cash credit, overdraft, loans and advances, discounting of bill of exchange, investment in government securities
42. The secondary functions can be classified into agency or representative functions and general utility services
43. The agency or representative functions consist of – collection and payment of various items; purchase and sale of securities; trustee and executor business; remitting money; purchase and sale of foreign exchange; issue of letter of references and other agency functions
44. The general utility services consist of locker facilities, business information, help in transportation of goods, acting as a referee, issuing of letters sof credit, acting as underwriters, issue of traveler cheques, issue of gift cheques and dealing in merchant banking
45. The social development functions consist of capital formation, inducement to innovations, impact on the rate of interest, role on the development of rural sector and  helpful in pushing up the demand
46. The popular services covered under e-banking are; automated teller machine, debit card, credit card, smart card, EFT, cheque truncation payment, mobile banking, internet banking and telephone banking
47. The services of e-banking include bill payment service, funds transfer, credit card customers, railway pass, investing through internet banking, recharging prepaid mobile connections, shopping, RTGS funds transfer and online payment of taxes
48. The Narasimhan committee report I pertains to 1991 consisting of reduction in SLR/CRR; phasing out of directed credit program; interest rate determination; structured reorganization of the banking sector, establishment of ARF tribunal, removal of dual control and banking autonomy
49. The second Narasimhan committee report pertains to the year, 1998 consisting of strengthening of banks in India, narrow banking, Capital adequacy ratio, bank ownership and review of banking laws
50. The cooperative banking structure consists of five categories namely; primary agricultural credit society; district central cooperative banks; state cooperative banks or apex banks, Land Development Banks, SCARDB and Primary Urban Cooperative banks

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