Description
Principles of Banking and it contains topics like Financial system in India, RBI, its role, SEBI, AMFI, Banks in India, Classification of banks, wholesale vs retail banking.
PRINCIPLES OF BANKING
INDIAN FINANCIAL SYSTEM
Financial System
The financial system in a country refers to the institutional framework existing to enable financial transactions to be carried out in a smooth manner Any Financial System has three main segments
1)
Financial institutions -banks, mutual companies etc
funds,
insurance
2) Financial markets -money market, debt market, capital market, forex market, derivative markets 3) Financial products -loans, deposits, bonds, equities , different types of financial derivatives etc
FINANCIAL SERVICES
MARKETS & REGULATORS
CAPITAL MARKET
MONEY MARKET
MUTUAL FUNDS
INSURANCE
SEBI
RBI
AMFI
IRDA
Reserve Bank of India - 1
• Reserve Bank of India was established on 1st April 1935, after the enactment of the Reserve Bank of India Act 1934 (RBI Act). • The RBI was initially privately owned but was nationalized in 1949 by the enactment of the Banking Regulation Act. • Banking Regulation Act,1949 (BR Act)gave wide powers to RBI as regards to establishment of new banks/mergers and amalgamation of banks,opening of new branches,etc • BR Act,1949 gave RBI powers to regulate,supervise and develop the banking system in India
RBI’s Major Functions
• Supervisory & Regulatory • Promotional & Developmental • Refinance Activities
RBI’s Major Functions
• Supervisory & Regulatory • Promotional & Developmental • Refinance Activities
RBI’s Major Functions
SUPERVISORY & REGULATORY
ISSUANCE OF CURRENCY NOTES
CREDIT CONTROL
EXCHANGE CONTROL
TRANSFER OF FUNDS
RBI’s Major Functions
• Supervisory & Regulatory • Promotional & Developmental • Refinance Activities
RBI’s Major Functions
PROMOTIONAL & DEVELOPMENTAL
Banker to Government
Banker to Bankers
Finance
Training
Agriculture
Industry
Exports
RBI’s Major Functions
• Supervisory & Regulatory • Promotional & Developmental • Refinance Activities
RBI’s Major Functions
REFINANCE ACTIVITIES
LENDER OF LAST RESORT
REFINANCE OPERATIONS
Securities & Exchange Board of India (SEBI)
• SEBI was constituted on April 12/1988, and obtained the statutory powers in March,1992 SEBI’s functions: • To protect the interests of investors • To recognize the business in stock exchanges and other security markets • To supervise and regulate work of intermediaries, such as stock brokers merchant bankers/custodians depositories/bankers to the issues
Association of Mutual Funds in India (AMFI)
• AMFI is an association as a non profit organization. • AMFI represents mutual funds in India and working for healthy growth of the Mutual Funds. • AMFI conduct examinations for MF executives as part of their training activities
Insurance Regulatory & Development Authority (IRDA)
• The regulator for insurance business in India is IRDA. • IRDA was established in 2000 IRDA’s functions: • To regulate, promote and ensure orderly growth of the insurance business and reinsurance business in India • To protect the interests of policy holders
Banks in India
Legal frame work of Banks
Banking Regulation Act,1949
Reserve Bank of India Act,1934
Banking Regulation Act,1949 (BR Act)-1
- BR Act covers banking companies and cooperative banks, with certain modifications. - BR Act is not applicable to a) primary agricultural credit societies b) land development banks - BR Act allows RBI (Sec 22) to issue licence for banks
• Section 5 (b) of Banking Regulation Act 1949 defines banking as “ acceptance of deposits of money from the public for the purpose of lending or investment” • Under Section 49A of the Act , no person other than a Bank is authorised to accept deposits which can be withdrawn by cheques except SB Schemes run by government or a firm notified by the government. • Section 6 (1) gives the list of permissible business • Section 8 gives details of activities that are prohibited
BANKING -Definition
Reserve Bank of India Act,1934(RBI Act)-1
- RBI Act was enacted to constitute the Reserve Bank of India - RBI Act has been amended from time to time - RBI Act deals with the constitution, powers and functions of RBI
Reserve Bank of India Act,1934(RBI Act)-2
- RBI Act deals with: - incorporation, capital management and business of banks - central banking functions - financial supervision of banks and financial institutions - management of forex/reserves - control functions : bank rate,audit,accounts - penalties for violation
Classification of Banks-1
Regional Rural Banks Central Bank RBI
Co-operative Banks
Public Sector Banks
Foreign Banks
New Private Sector Banks
Old Private Sector
Classification of Banks-2
PUBLIC SECTOR BANKS
STATE BANK OF INDIA SBI
SBI ASSOCIATE BANKS
NATIONALISED BANKS
WHOLESALE BANKING
?Provision of services by banks to the like of large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, institutional customers (such as pension funds and government entities/agencies), and services offered to other banks or other financial institutions. ?. Wholesale banking is different from retail banking, in that the former focuses more on corporate style entities and high value transactions, while the latter is focused on providing financial services to individual consumers.
THANK YOU
[email protected]
PRESENTATION BY- SHANKER IYER
doc_502484280.ppt
Principles of Banking and it contains topics like Financial system in India, RBI, its role, SEBI, AMFI, Banks in India, Classification of banks, wholesale vs retail banking.
PRINCIPLES OF BANKING
INDIAN FINANCIAL SYSTEM
Financial System
The financial system in a country refers to the institutional framework existing to enable financial transactions to be carried out in a smooth manner Any Financial System has three main segments
1)
Financial institutions -banks, mutual companies etc
funds,
insurance
2) Financial markets -money market, debt market, capital market, forex market, derivative markets 3) Financial products -loans, deposits, bonds, equities , different types of financial derivatives etc
FINANCIAL SERVICES
MARKETS & REGULATORS
CAPITAL MARKET
MONEY MARKET
MUTUAL FUNDS
INSURANCE
SEBI
RBI
AMFI
IRDA
Reserve Bank of India - 1
• Reserve Bank of India was established on 1st April 1935, after the enactment of the Reserve Bank of India Act 1934 (RBI Act). • The RBI was initially privately owned but was nationalized in 1949 by the enactment of the Banking Regulation Act. • Banking Regulation Act,1949 (BR Act)gave wide powers to RBI as regards to establishment of new banks/mergers and amalgamation of banks,opening of new branches,etc • BR Act,1949 gave RBI powers to regulate,supervise and develop the banking system in India
RBI’s Major Functions
• Supervisory & Regulatory • Promotional & Developmental • Refinance Activities
RBI’s Major Functions
• Supervisory & Regulatory • Promotional & Developmental • Refinance Activities
RBI’s Major Functions
SUPERVISORY & REGULATORY
ISSUANCE OF CURRENCY NOTES
CREDIT CONTROL
EXCHANGE CONTROL
TRANSFER OF FUNDS
RBI’s Major Functions
• Supervisory & Regulatory • Promotional & Developmental • Refinance Activities
RBI’s Major Functions
PROMOTIONAL & DEVELOPMENTAL
Banker to Government
Banker to Bankers
Finance
Training
Agriculture
Industry
Exports
RBI’s Major Functions
• Supervisory & Regulatory • Promotional & Developmental • Refinance Activities
RBI’s Major Functions
REFINANCE ACTIVITIES
LENDER OF LAST RESORT
REFINANCE OPERATIONS
Securities & Exchange Board of India (SEBI)
• SEBI was constituted on April 12/1988, and obtained the statutory powers in March,1992 SEBI’s functions: • To protect the interests of investors • To recognize the business in stock exchanges and other security markets • To supervise and regulate work of intermediaries, such as stock brokers merchant bankers/custodians depositories/bankers to the issues
Association of Mutual Funds in India (AMFI)
• AMFI is an association as a non profit organization. • AMFI represents mutual funds in India and working for healthy growth of the Mutual Funds. • AMFI conduct examinations for MF executives as part of their training activities
Insurance Regulatory & Development Authority (IRDA)
• The regulator for insurance business in India is IRDA. • IRDA was established in 2000 IRDA’s functions: • To regulate, promote and ensure orderly growth of the insurance business and reinsurance business in India • To protect the interests of policy holders
Banks in India
Legal frame work of Banks
Banking Regulation Act,1949
Reserve Bank of India Act,1934
Banking Regulation Act,1949 (BR Act)-1
- BR Act covers banking companies and cooperative banks, with certain modifications. - BR Act is not applicable to a) primary agricultural credit societies b) land development banks - BR Act allows RBI (Sec 22) to issue licence for banks
• Section 5 (b) of Banking Regulation Act 1949 defines banking as “ acceptance of deposits of money from the public for the purpose of lending or investment” • Under Section 49A of the Act , no person other than a Bank is authorised to accept deposits which can be withdrawn by cheques except SB Schemes run by government or a firm notified by the government. • Section 6 (1) gives the list of permissible business • Section 8 gives details of activities that are prohibited
BANKING -Definition
Reserve Bank of India Act,1934(RBI Act)-1
- RBI Act was enacted to constitute the Reserve Bank of India - RBI Act has been amended from time to time - RBI Act deals with the constitution, powers and functions of RBI
Reserve Bank of India Act,1934(RBI Act)-2
- RBI Act deals with: - incorporation, capital management and business of banks - central banking functions - financial supervision of banks and financial institutions - management of forex/reserves - control functions : bank rate,audit,accounts - penalties for violation
Classification of Banks-1
Regional Rural Banks Central Bank RBI
Co-operative Banks
Public Sector Banks
Foreign Banks
New Private Sector Banks
Old Private Sector
Classification of Banks-2
PUBLIC SECTOR BANKS
STATE BANK OF INDIA SBI
SBI ASSOCIATE BANKS
NATIONALISED BANKS
WHOLESALE BANKING
?Provision of services by banks to the like of large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, institutional customers (such as pension funds and government entities/agencies), and services offered to other banks or other financial institutions. ?. Wholesale banking is different from retail banking, in that the former focuses more on corporate style entities and high value transactions, while the latter is focused on providing financial services to individual consumers.
THANK YOU
[email protected]
PRESENTATION BY- SHANKER IYER
doc_502484280.ppt