UGC NET-Commerce-08-Banking and Financial Institutions

Introduction to Banking and Financial Institutions

This particular area of syllabus covers Banking and Financial Institutions within India. India has various different types of financial institutions and these primarily helps in maintaining the economy growth rate. Banks in general performs the activities of savings and deposits along with crediting services. Other than Commercial banks, there are many non-banking financial institutions which are focused towards a particular industry, region, area of development, infrastructure and helps the specific sector with the capital and strategies.

So what will you be studying in this unit.

Syllabus

Importance of Banking to Business
Types of Banks and their functions
Reserve Bank of India
NABARD
Rural Banking
Banking Sector Reforms in India
NPA
Capital Adequacy norms
E-Banking
Development Banking: IDBI
IFCI
SFCs
Utility Analysis and Laws of Returns
SIDBI

What to keep in mind for Banking and Financial Institutions?

This topic is very specific to the financial institutions in the country. The types of different banks and their functions needs to be understood and then broadly go through all of the different institutions which are present in the country.

This includes:

  • RBI – Reserve Bank of India
  • NABARD – National Bank for Agriculture and Rural Development
  • IFCI – Industrial Finance Corporation of India
  • SIDBI – Small Industries Development Bank of India

When we learn about banks, we need to also learn about their functions and activities and the details about the statutory requirements. Hence we will go through the following:

  • CRR is a cash reserve ratio
  • SLR is statutory liquidity ratio
  • NPA is non performing asset

Most of it is theoretical in nature and reading the details about the topics should be good enough. It is expected that this forms a part of your general knowledge, hence whomsoever is accustomed to learning about the economic activities in the country must be aware about the financial institutions their roles, growth rates, NPA issues, monetary policy and its effect on the banks etc.

Not so difficult subject, however all the information may not be present at the same place. It takes time to collect the required material for this subject.

Thank You

MunshiGiri

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