1. More Money - Suck Out Money
2. Less Money - Inject Money
1. Open Account
2. Minimum Balance in Savings Account
3. Use Bank Account to Accept Payment
4. Use Bank Account to Make Payment
5. Use Bank to Take Loans
Relationship
Acts as Banker to the Banks
Acts as Banker to Govt
Acts as Banker to Public & Enterprises
Examples
1. First Ever Central Bank of World - Riksbank (Sweden)
2. Bank of England
3. US Fed Bank
4. RBI 1935
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How a Central Bank is Established
Central Bank is a Statutory Body
Here the Act is RBI Act, 1934
How is Commercial Bank Established
Commercial Banks may be Statutory of Non Statutory
Statutory
SBI - SBI Act 1955
RRB - RRB Act 1976
Regional Rural Banks
With Words Gramin
Non Statutory Bank - Registered as Companies
ICICI, Axis, HDFC etc
Demand Supply Concept
Demand and Supply Should Match
Mismatch
Inflation → D>S
Control Method
Increase Supply - Not Responsibility of RBI, Responsibility of Govt
Reduce Demand - Responsibility of RBI
Suck Out Money from Economy - Demand Decreases
Recession → D<S
Control Method
Increase Demand - By RBI
Inject Money into the Economy
Lessen the Supply - By Govt
Functions of RBI
1. Lay Down Criteria of Bank coming into existence 2. Lay Down Functions of Company3. Primary Focus of RBI shall be on Controlling Inflation over Promoting Growth 4. Acts as a Banker to the Banks
Normal Persons Bank - HDFC
Open Account
Minimum Balance in Savings Account
Use Bank Account to Accept Payment
Use Bank Account to Make Payment
Use Bank to Take Loans
HDFC’s Banks is RBI
Open Account in RBI
Minimum Balance in Account
Use RBI Account to Accept Payment
Use RBI Account to Make Payment
Use RBI to Take Loans
5. RBI is a Banker to the Government (Central/State)
Open Account in RBI
Minimum Balance in Account
Use RBI Account to Accept Payment
Use RBI Account to Make Payment
Use RBI to Take Loans
Amendment of RBI Act 2016
Amendment took Place in 2016
Summary of Difference Between Central and Commercial Bank
Evolution & Establishment of RBI
1770’s → Bank of Hindustan
First Kind of Modern Bank
There was No Hindustani Element
Setup by Private Traders of East India Company
It was a Private Owned Bank
This Bank Started printing Notes and it was brought in circulation
Closed its operations in 1830’s
1806 → Presidency Banks
Examples
Presidency Banks of Kolkata
Presidency Banks of Madras
Presidency Banks of Bombay
They were Partially owned by British Government
They also Started printing Notes
Each Banks Note was used in its own Presidency only
1861 → Paper Currency Act & CoC
Under this Act, British Government took over monopoly of printing notes
Henceforth only British Govt could print notes
Controller of Currency Agency
Completely Govt Owned Agency
Agency under Paper Currency Act 1861
This was just after Revolt of 1857. More than being a economic necessity it was a Political necessity
1921 → Imperial Bank of India (IBI)
3 Presidency Banks were merged to form Imperial Bank of India
Its Two Fold Role was
Acting as Commercial Bank to Public
Acting as Banker to Govt
1921 → CoC & IBI Function
Controller of Currency - Printing Notes
Imperial Bank of India - Lending Loans to Govt
1924 → Hilton Young Committee
to advice how govt can manage printing of notes in India
Recommendations
1. Set up RBI as a Statutory Body
For it to be Independent & Autonomus Authority
No Scope for Political Interference
RBI was supposed to do 2 things
Print Notes
Be Banker to Govt
For this it needed Independence
2. Set Up RBI as Pvt Shareholders Bank
Imperial Bank
Commercial Nature
Banker to Bank Nature - Interest from giving loans to Govt
with RBI, IBI wouldn’t earn this profit
IBI would be in Loss
Hence to compensate for this loss
Whoever, is Owner of IBI can be the owner of RBI
At that time one Share of RBI was Rs 100
Anomaly : Statutory body which is a privately owned 3. Minimum Capital of Rupees 5 Crore
1934 → RBI Act
Preamble of RBI Act 1934
1935 → 1st April 1935 Established 1949 → RBI Nationalised Summary
Mind Map
Accounting Year of RBI
Earlier - July to June
Now - April to March
Committee Recommendation of : Bimal Jalan Committee
Acts that Empower RBI
RBI Act, 1934
Establishing Act
Banking Regulations Act, 1949
Power to Regulate Banks
Foreign Exchange Management Act, 1999
Power to Intervene in foreign market
Government Securities Act, 2006
Power of RBI to Manage Govt Securities is by this Act
Payments & Settlements Act, 2007
Power to Regulate Entities like Phone Pe etc
Logo & Share of RBI
RBI is a different entity - Instead of Lion Tiger was used
It is Under Govt - Used the Same Logo
Structure of RBI
1. Establishment : Statutory Body by RBI Act 1934 2. Mandate : is that of being a Supreme Authority 3. Members : Composition is of 21 Members
Official Directors
1 Member → Governor of RBI
First Governor of RBI - Sir Osborn Smith
First Indian to be the Governor of RBI - C D Deshmukh
Only RBI Governor who became PM of India - Dr Manmohan Singh
Now - Mr Shaktikanta Das
On One Rupee Note : There is Signature of Finance Secretary
4 Members → 4 Deputy Governors of RBI - Incharge of Each Department
Non Official Directors
4 Members - Heads of Regional HQ of RBI
Basic HQ is in Mumbai ; Initially it was in Calcutta
10 Members - Independent Directors - Nominated by Govt
2 Ex Officio Govt Representatives
Secretary - Dept of Financial Services
Secretary - Dept of Economic Affairs
4. Process : Appointment of Governors and Deputy Governors
RBI Act 1934 does not lay down any qualification for someone being a RBI governor
Panel of Names is sent to → Cabinet Committee on Appointments → out of those 2 to 3 → 1 will be appointed as an RBI Governor
People appointed are Eligible for Re Appoint
5. Tenure : Official & Non Official Directors
Official Directors : Max 5 Years
Initial 3 Years
Based on Performance extension of 2 Years
Examples
Raghuram Rajan - Didn’t Get Extension
Urjit Patel - Reisgned
Non Official Directors
Max Duration of 4 Years
6. BFS : Board for Financial Supervision
Kind of Committee under Central Board of RBI
Headed by RBI Governor
7. BPSS : Board for Regulation of Payment and Settlement System
Headed by RBI Governor
by Payment & Settlement Act of 2007
Central Board of RBI Summarised
Functions / Roles of RBI Summarised
1. Issue of Bank Notes
Bank Notes - Rs 2 to Rs 10,000
What are Bank Notes
Issue of Bank Notes
Class Slide
Types of Notes
Bank Notes (Legally) printed by RBI
Currency Notes (Legally) printed by Govt (Rs 1 Notes)
Agencies in RBI
Issue Department - CoC - Print Notes
Banker Department - IBI - Banker
Design of Notes
Recommendation by Central Board of RBI
Final Authority by Government
Details of Notes
Distribution of Notes
Currency Chest across India
In Every District, One Big Branch should be designated as Currency Chests of that District
Denomination of Notes
Value of Notes is Denomination
Minimum Denomination according to RBI Act 1934 - Rs 2
Maximum Denomination according to RBI Act 1934 - Rs 10,000
Currently we don’t have any 10,000 Rs notes in circulations
Bur prior to this RBI has printed 10,000 Rs Notes Twice
Just After Independence's
During 1940
After Printing, these high value notes were demonetised
Trust on Note
Reason why people accept notes Signed by Governor
Universal Acceptability by Means of Trust
Like Cigarette in Shawshank Redemption
Non Acceptance of Rs 5 & 10 Coins
Legal Tender
Obligation on Person to compulsorily accept money for settlement of Transactions
You cannot reject the transaction Because its a Legal Tender
There are Two Types of Legal Tenders
Limited Legal Tender - Prior 2017
Unlimited Legal Tender - Post 2017
Promise
Difference Between Limited and Unlimited Legal Tender
Theme
Unlimited
Limited
Acceptance Limit
No Matter How Much I Pay you in Cash, You Must Accept it, You cannot reject cash
There is a limit on acceptance of Bank Notes for settlement of Transactions
Example
Car of 10 Lac being bought
The entire can be purchased in form of Cash
There will be a limit of Rs 2 Lac for Cash Transactions
In Action By
Since Independence by Laws
Finance Act 2017
Limit
No Limit as Such
Limit of Rs 2 Lac
Remaining 8 Lacs by Other Means
What if Limit is Exceeded
No Limit as Such
Extra Cash has to be paid as a Penalty by the Person who has accepted the Cash
Printing of Bank Notes
Printing Notes by : Issue Dept of RBI
Criteria : According to RBI Act, 1934
1. Minimum Reserve System
Minimum Reserves of Rs 200 Crores
115 Crore Worth - in form of Gold 85 Crore Worth - FCA (Foreign Currency Assets)
Foreign Currency like $ & Euro
Bonds Issued by Foreign Govt
Example : US Treasury Bonds
Bonds are issued by
Corporates
Govt
Features of Sample Bond
Face Value Rs 100 Crores
Maturity Period : 10 Years
Rate : 5%
Why RBI Will Invest
has Universal Acceptability
RBI will earn Interest
2. Over All Asset should be same as their Liability
What is the Concept of Assets and Liability
Assets : Ownership Exists
Liability : Doesn’t Belongs to Me
Ones Liability is Another Mans Asset
What are the Assets for RBI ?
Gold
FCA - Foreign Currency Assets
G-Sec - Government Securities
Coins and One Rupee Notes
How is Value of Asset like Gold whose cost varies is kept in Sync ?
Gold Value - Increased
Asset - 10 GM Gold - Rs 3000
Asset - 10 GM Gold - Rs 6000
Liability - Rs 3000 - Notes in Circulation
What will RBI Do
Sell Gold
Give to Banking Department
Gold Value - Decreased
Asset 10 GM - Rs 3000
Asset 10 GM - Rs 1500
Liability 10 GM - Rs 3000
What will RBI do
Buy Gold
Take Money out of Transaction
What is the Liability for RBI ?
Note Pe Likha Hua Waada = RBI ka Promise = RBI ki Liability hai
Can RBI have more Assets than Liability
No It cannot, It has to dynamically match
Currency in Circulations by RBI
30 Lac Crores
Hence Assets worth 30 Lac Crores is with RBI
What Happens When you take Rs 500 to RBI Governor
RBI Has Asset
Case 1 : Assets worth Rs 500
Case 2 :
You Cannot Replace one Promise by Another Promise
500 - 100*5
100 - 10*10
RBI Has No Asset
This is Guaranteed by Central Government in the form of Coins and Rs 1 Notes
Concept of Seignorage
Defintion
Seignorage is Profit Earned by RBI’s Issue Dept on Account of Printing Notes
Criteria of Printing Notes
Minimum Reserve System of Rs 200 Crores
Asset = Liabilities
Concept
RBI has to not pay Interest to anyone in lieu of its promise on notes which is its Liability
RBI Earns Profits from its Assets
Average Profit of RBI is Rs 1 Lac Crores
Profit from
Selling of Gold
Interests from FCA and G Sec
Formula
Now Net Money = Earning - Expenses
Expenses = Interests + Printing of Notes Cost
Seignorage = Earning - (Interests + Printing of Notes Cost)
According to RBI - This Increases Seignorage
Introduction of CBDC
Promotion of Cashless Economy
According to RBI - This Decreases Seignorage
Demonetisation
Also think About the Cost, which was used in printing earlier
Also the cost to print new Notes
Mind Map
What Happens to Net Profit (Seignorage) of RBI ?
Added to Reserves of RBI
Dividend to Government acc to Sec 47 of RBI Act 1934
Notes
Seignorage is the Net Profit of Issue Department
Assets & Liabilities of Banking Dept of RBI - Detailed
NOTE : Assets of Banking & Issue Department are different. Do Alag Alag Bhai ki Property ki Tarah
Assets
Liabilities
Gold
Deposit of Centre with RBI
Foreign Security
Deposit of States with RBI
G Secs
Deposit of Bank with RBI
Currency Notes are an asset for Banking Dept because they can be used by banking department for giving loans
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Loans to Centre & States
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Loans to Banks
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Assets & Liabilities of Banking Dept of RBI - Summarised
Assets & Liabilities of Issue Dept of RBI - Summarised
Gold, FCA, G Sec, Coins & Re 1 Notes
Designs of all Bank Notes
Currency Notes - Rs 1
Face Value
Why Govt Print 1 Rs Notes
RBI is Not Allowed to Print
It is a Form of RBI Guarantee
Is there any limit on Central Government to Print 1 Rs Note
No there is No Limit and There is No Pre Requirement to Print Rs 1 Notes
Mind Map
Point to Note
The Limited Legal Tender of Limit of Rs 1000 in Denomination of Rs 1 Notes
Upto 1000 Rs - Compulsorily You have to accept
Above Rs 1000 - Its Upto You, Ig you want to Accept it or not
Difference between Bank Notes & Currency Notes
Coins
Mind Map
Denomination
No Min Denomination
Max Denomination - Rs 1000
Commemorative Coin - For Example for Mahabalipuram
It is not put into Circulation
It is sold on Auction by SPMCIL
Difference Between Bank Notes, Currency Notes & Coins
2. Bankers to the Government
Functions
By RBI Itself
RBI will Open Account of Centre & States
C&S will have to Maintain Minimum Balance with RBI
RBI will Give Loans to Govt
By Agency Bank appointed by RBI
RBI willHelp Accept Payments - Tax etc
RBI will Help Make Payments - Salary of Govt Officials
Right & Obligation
Centre
RBI Cannot Say No to be the Banker
Centre has a Obligation to make RBI as its Banker
State
RBI Can Say No to be the Banker
State doesn’t have a Obligation to make RBI as its Banker
Sikkim Bank is NOT RBI
Sikkim Special Act, 1975 - Banking Regulations Act 1949 doesn’t apply to Sikkim
State Bank of Sikkim is State Owned Bank of Sikkim
State Bank of Sikkim was not under control of RBI until 2019/20
Delegation of Functions
Some of the Function of Accepting & Making Payments is done by Agency Banks
for Ministry of Finance RBI may have chosen State Bank of India
Mind Map
3. Debt Manager of Government
Why does Government has to Borrow in the First Place ?
Income (Amount of Money Tax) < Expenses (Govt Spending Obligation)
Income 20 Lac Crore < Expense 37 Lac Crore
Hence, Govt Needs Money of Difference which is 17 Lac Crores
The Money we Borrowed == Money Govt earns as Income
Why Doesn’t India Cut down its Expenses ?
For Welfare of People
For Infrastructure
Borrowing is Not a Option for India, Its a Necessity
From Where does Government Borrows (Sources) ?
Outside India
External Debt
From Chapters of Taxation
From Chapters of External Sector
Two Entities Can Borrow Money from Outside India
Government - Sovereign Debt
Private Companies
External Debt of Govt is Managed by Ministry of Finance
RBI does NOT manage India’s External Debt
Money can be Borrowed from
IMF, WB, ADB, AIIB
Within India
Govt can borrow Money from
RBI
Domestic Market
1. Primary Dealers (Category of Investors)
Who are Primary Dealers
Similar to Corporate Bonds, GoI releases G Secs
These G Secs have Face Value, Maturity Period & RoI
RBI has authorised some dealers to Invest in G Secs called Primary Dealers
Primary Dealers are of Two Types
Bank Primary Dealers
Example
Kotak Securities
ICICI Securities
Standalone Primary Dealers
Why Invest in G Secs
For Safe and Stable Investments
Share Costs Vary & Fluctuate Severely but G Sec is Stable
2. Insurance Companies
Examples - LIC & Aditya Birla etc
They Sit on Huge Amount of Cash
They Need to Make Money out of this money but at the same time maintain safety of these returns
Hence they Invest in G Secs
3. Banks 4. Pension Fund Companies 5. Retail Investors
RBI Acts as Facilitator for Govt to borrow from Domestic Market (Its Institutions)
How RBI Felicitates this Process
Mind Map Summarised
Retail Direct Scheme
By what power does RBI act as a Debt Manager of Govt
Govt enables RBI to manage its borrowings, Its both a Right and a Obligation
RBI as Debt Manager of Govt in Domestic Market (within India)
For What Purposes Govt Borrows Money ?
To Finance its Deficit
This Money is NOT repaid back in the Same Financial Year
Revenue of Govt - 20 LC
Expense of Govt - 37 LC
Deficit = Difference Between Revenue & Expense = 17 LC
To Address Temporary Mismatches in Cash Balances
This Money is Repaid Back in the SAME Financial Year
Examples
Revenue/Income - 100
Expense - 150
Deficit - 50
Govt Borrowed & Not Repaid - 50
In What Manner RBI Manages Debt for Govt ?
RBI Lends Loan to Govt Directly
Monetisation of G Sec
The Detailed Table of Types of Loans
Long Term
Short Term
Only Centre
Both Centre and State
To Finance Deficit
To Address Temporary Mismatches
By Monetisation of G Secs
By Ways and Means Advances
For Centre
1. Not Allowed under Normal Circumstances
2. Allowed Under Exceptional Circumstances
3. Circumstances have been laid down by FRBM Act, 2003
National Security
Collapse of Agriculture
For Centre
1. Normal WMA - Limit Fixed by RBI in Consultation with Centre
Maturity Period 90 Days
Here, ROI = Repo Rate
2. Overdraft
When Apr to Dec 100 Crore Done, Jan to Mar Money is Still Needed
Hence Overdraft is taken
Here ROI = Repo Rate + 2%
For State
Not Allowed to Borrow from RBI
For State
1. Normal WMA - Same as Centre
2. Overdraft - Same as Centre
3. SDF - Special Drawing Facility - for State Only
State investing in Centre G Secs
Dated Bonds, T Bills, CMB,
This Bond can be used as Collateral to Borrow from RBI
Here, ROI = Repo Rate - 1%
By this Means, RBI forces state to Invest in Central G Secs
Summary of WMA
RBI Helps Govt to take Loan from Domestic Market
RBI Helping in Borrowing Money from the Market
Short Term (< 1 Year) && (Long Term > 1 Year)
ST & LT to be used as abbreviation while practising
Keep in Mind which LT & ST are given to States and which to Govt
The Detailed Table of Types of Loans
Long Term → > 1 Year
Short Term → < 1 Year
Centre & State Both Allowed
Only Centre
State Now Allowed
RBI Issues for Centre: Govt Dated Bonds (GDB)
Face Value: How Much Money Govt is Borrowing
Maturity Period:
For How Much time Govt is Borrowing
4 to 40 Years
Rate of Interests :
How Much Interest will Govt Pay Fixed Rate Govt Bonds - ROI Same for whole Tenure
Floating Rate Govt Bonds - ROI Changes Every 6/12 Months
Treasury Bill (T Bill) is issued by RBI for Centre to Borrow
When You buy a T Bill, You Give Loan to the Govt
Face Value Maturity Period
of 91 Days - T 91
of 182 Days - T 182
of 364 Days - T 364
T 14 has been done away with
Rate of Interests :
*There is no Interest on T Bill
*The T Bill is Issued at a Discount & Redeemed at Face Value
RBI Issues for State: State Development Loan (SDL)
Face Value:
How Much Money Govt is Borrowing
Maturity Period:
4 to 40 Years
Rate of Interests :
Fixed Rate Govt Bonds - ROI Same for whole Tenure
Floating Rate Govt Bonds - ROI Changes Every 6/12 Months
Cash Management Bill (CMB) is issued by RBI for Centre to Borrow
Face Value: Maturity Period
b/w 1 to 90 Days
Rate of Interests :
*There is no Interest on CMB
*The CMB is Issued at a Discount & Redeemed at Face Value
Generally Bought to
Address the Temporary Mismatch
Special Government SecuritiesThis is For Both Centre and States
1. Oil Bond
2. UDAY Bond
3. Recap Bonds
4. Sovereign Gold Bonds
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Government Securities - G Sec
1. Normal G Secs →
2 Special G Secs → Special Govt Securities
Sources of Govt Borrowings - Summarised
How Exactly RBI Issues G Secs
RBI is Debt Manager ↓Issues G Secs ↓
Dated Bonds
CMB
T Bill
SDF
Auctioned Through - E Kuber
Bank Primary Dealers Retail Investors
Earlier
Did Not Open Account with RBI
Not Allowed to Buy G Sec Directly in Primary Market
But Retail Investors can buy Indirectly by Means of
Demat account
Banks
Primary Dealers
Now - Retail Direct Scheme
Open Retail Direct Gilt Account (RDG)
Directly from G Sec from RBI
Mind Map - Primary and Secondary Markets
4. Bankers to Bank
Framework Mind Map
Payment Methods - Payment and Settlement Chapter
By RBI
NEFT - National Electronic Fund Transfer
RTGS - Real Time Gross Settlement
By NPCI
IMPS - Immediate Payment Service
UPI - Unified Payment Interface
Provides Loan to Banks - Monetary Policy Chapter
5. Lenders of Last Resort
Asset Liability Mismatch and Bank Run - Lender of Last Resort - ”Bagehot Doctrine”
6. Regulations of Banks and Other Entities
What is the Meaning of Regulation
Regulation :
To Ensure that Private Banks are working in the best interest of banks
To Make banks work in Efficiently
Regulation of Financial Institutions - Banks & NBFC Detailed
What is the Difference Between Private Banks and Public Sector Banks
Banks
Private Sector Banks
Private Banks
Private Banks are Regulated by Private Banks of India
These Banks in India are Registered as Companies under the Companies Act
Parliament of India passed a legislation called Banking Regulation Act, 1949
How is Regulation Ensured
Lays Down Elaborate Eligibility Criteria
Process
Earlier - at a time, there is a notice for banks to invite application, submit, scrutinise, approve
Now - eligibility criteria laid down, no wait for notice inviting application, at any point of time, apply and submit, scrutinise, approve → On Tap Licensing
Criteria
Min Capital of Rs 500 Crore
Successful Track Record of Bring in the Banking Sector for at least 10 Years
Example : IDFC & Bandhan Bank, Only these sectors were chosen because they were working as MFI’s (Micro Finance Institution)
Large Corporate Houses in india cannot be issued license
Example : Tata, Ambani, Reliance
Problem :
Interconnected Lending
Favourism
Give Licenses to Banks - India and Foreign Lay Down Qualifications of Board of Directors of BankRBI can supersede BOD of Private Banks
Meaning BOD Removed
RBI will appoint its own officials
RBI can undertake merger of Private Banks
Public Sector Banks
Originally PSU Bank
By Legislation of Parliament
SBI by SBI Act
Turned into PSU Bank by Nationalisation
By Nationalisation of Bank in
1969
1980
Examples
Bank of Baroda
PNB
Central Bank
Canara Bank
Regulations of Types of Bank
Private Banks
Companies Act
Banking Regulations Act, 1949 - Only BY RBI
Public Sector Banks (PSB)
Original
SBI Act, 1955 - By Ministry of Finance (Govt)
Banking Regulations Act, 1949 - By RBI
Nationalised
The Banks Own Act - Bank Nationalisation Act, 1970 & 1980
Banking Regulations Act, 1949
Note : Some Provisions of Banking Regulations Act, 1949 are NOT applicable to Public Sector Banks
The Provisions of Exception for Public Sector Banks are
No License Required from RBI
RBI cannot lay down Qualification for BOD of PSB
RBI cannot supersede BOD of PSB
RBI cannot force merger of PSB
Hence it can be said that RBI is handicapped in the case of PSB
Privatisation of Public Sector Banks
The Bank Nationalisation Acts of 1970 & 1980 State that Govt ownership should be always greater than 51%
For Privatisation, The Govt Ownership should be less than 51%
Hence, for the Banks to be Privatised, the ownership should be less than 51%
For this to happen the Bank Nationalisation Acts of 1970 & 1980 which are preventing the Govt to reduce its ownership should be change
This changes can only be brought in by means of by a amendment act as the Law of Nationalisation is by Parliament
Other Entities - NBFC
NBFC - Non Banking Financial Companies
Who are they
They can accept Deposits
They can give loans
They don’t have a license of Bank but a License of NBFC from RBI
Examples of NBFC
MFI
Credit Companies
P2P Lenders
Why do MFI Exist ?
No Small Value Loans are Given by Banks, Hence NBFC is an option for people wanting low value loans
Banks are Interested in Large Value Loans
Examples
Bajaj Finance
Mahindra Finance
Muthoot Gold Loans
Revision Mind Map
Credit Information Companies - Regulated by RBI
They Generate CIBIL Score
How Much Loan
Any Pending Loan
Repaid Loan
Income Tax Paid
Credit Rating Agencies - Regulated by SEBI - To Not Get Confused
Some Agencies
International Agencies
They Take into account only GDP Size,
Indian Govt is asking for considering the Growth Rate of Indian GDP as well
S&P Moddy’s FITCH
Indian Agencies
ICRA - Indian Credit Rating Agencies
Types of Credit Ratings
AAA+
AAA
AAA-
BBB+
BBB
BBB-
Primary Dealers
Bank & Standalone PD
Authorised Dealers
Regulation of Financial Institutions - Banks and NBFC Summarised
Regulation of Financial Institutions - PD, AD & CIC
7. Management of Foreign Exchange - Other Chap
Will be Covered in External Sector Chapter
8. Regulation of Payment & Settlement System - Other Chap
in Chapter of Banking and Payment & Settlement Systems
RBI’s Economic Framework
Controversy Over Transfer of Reserves
The Whole Timeline
Bimal Jalan’s Committee Recommendation - Realised and Unrealised Profits
Various Schemes by RBI - PSL, Lead Bank, Service Area, Differential Rate
Subsidiaries of RBI
Meaning RBI has a 100% Ownership of the Subsidiary Company. Example is
DICGC - Deposit Insurance and Credit Guarantee Corporation
Background
From Rs 1 Lac of Insurance Cover to 5 Lac of Insurance has been done in case a Bank Collapses
By Means of DICGC Amendment Act, 2021
Concept of Deposit Insurance
Recent Moratorium Banks
PMC - Punjab Maharashtra Coperation Bank
Laxmi Vilas Bank
Scenarios of Claiming Insurance for Question Practise Purpose
Note : Deposit Insurance is based on Account
Deposit Insurance Prelims Pointers
Subsidiaries of RBI - Other Subsidiaries & Summary
