Banking and Financial Institutions

Introduction

1. Monetary Policy is the process by which a central bank, such as the Reserve Bank of India (RBI), controls the supply of money and credit in the economy.
2. The main objectives of monetary policy are to ensure price stability, control inflation, promote economic growth, and maintain employment levels.
3. Key tools of monetary policy include Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, and Reverse Repo Rate.

Objectives

Introduction

1. Monetary Policy is the process by which a central bank, such as the Reserve Bank of India (RBI), controls the supply of money and credit in the economy.
2. The main objectives of monetary policy are to ensure price stability, control inflation, promote economic growth, and maintain employment levels.
3. Key tools of monetary policy include Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, and Reverse Repo Rate.

Objectives

Introduction

1. Microfinance refers to providing financial services such as credit, savings, and insurance to low-income individuals or groups who lack access to traditional banking systems.
2. Self-Help Groups (SHGs) are small, informal groups of people who come together to address financial needs through collective savings and mutual lending.
3. Both play a crucial role in financial inclusion and empowering marginalized communities, especially in rural areas.

Key Features of Microfinance

Introduction to Digital Payment Systems

1. Digital payment systems are methods of transferring money electronically without physical exchange of cash or cheques.
2. They are critical to achieving financial inclusion and reducing dependency on cash transactions.
3. In India, key initiatives like Unified Payments Interface (UPI) and Bharat Interface for Money (BHIM) have revolutionized digital payments.

Unified Payments Interface (UPI)

1. UPI is a real-time payment sy

Introduction to Jan Dhan Yojana

1. The Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched on August 28, 2014, by the Government of India.
2. It aims to provide universal access to banking facilities and promote financial inclusion for all sections of society.
3. Described as the world's largest financial inclusion initiative.

Objectives of Jan Dhan Yojana

1. Provide access to basic banking services such as savings accounts, deposits, and withdrawal

Introduction to Cooperative and Regional Rural Banks

1. The Indian banking system comprises various tiers, including cooperative banks and regional rural banks (RRBs), to address specific economic needs.
2. Both types of banks play a crucial role in promoting financial inclusion and supporting the rural economy.

Cooperative Banks

1. Cooperative banks are financial institutions owned and managed by their members, primarily to serve rural and semi-urban ar

Introduction to Indian Banking System

1. India has a multi-tier banking structure that includes public sector banks, private sector banks, cooperative banks, and regional rural banks (RRBs).
2. Public sector banks (PSBs) and private sector banks are the two dominant categories, each playing a vital role in the Indian economy.

Public Sector Banks (PSBs)

1. PSBs are banks where the majority stake (more than 50%) is owned by the Government of India.
2. Examples include

Introduction to the Reserve Bank of India (RBI)

1. The Reserve Bank of India (RBI) was established in 1935 under the Reserve Bank of India Act, 1934.
2. It is the central bank of India and plays a pivotal role in regulating the Indian banking and financial system.
3. The RBI’s headquarters are in Mumbai, Maharashtra.
4. The main objectives of the RBI are to ensure monetary stability, financial stability, and economic growth.

Structure of Indian Banking System