The Government And Reserve Bank Of India - 1431 Words

Financial inclusion Even after 68 years of independence, still large section of population remains unbanked which mainly include poor people who don’t have regular income or people who are laborers and also large number of farmers are excluded from financial services. This malaise has led generation of financial instability in our country and lower income group faces many problems in terms of financial services because access to financial products and services is very costly for them they can’t effort such charges that’s why they are unbanked today. However, in the recent years the government and Reserve Bank of India has been pushing the concept and idea of financial inclusion. What is Financial Inclusion? Financial inclusion is delivery of banking services at an affordable cost ( no frills accounts,) to the vast sections of disadvantaged and low income group. Unrestrained access to public goods and services has led big gap between poor and rich. As banking services are meant for public good, it is crucial that availability of banking and payment services to the entire population without discrimination is the key objective of the public policy. Following chart will explain how unbanked people can be brought under the banking system. First advice the people through financial literacy camps tell them benefits of banking system like credit facilities, savings account, over draft facilities, insurances. After this they will approach to banks to open accounts for them.Show MoreRelatedReserve Bank of India1669 Words   |  7 PagesFunctions of Reserve Bank of India The Reserve Bank of India Act of 1934 entrust all the important functions of a central bank the Reserve Bank of India. Bank of Issue Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank notes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government. The Reserve Bank has a separate Issue Department which isRead MoreRole and Function of Rbi1438 Words   |  6 PagesAssignment No 1 Role and Function of RBI Introduction:- Reserve bank of India (RBI) is nation’s central bank. RBI began operation since 1935, and stood at the centre of India’s financial system, with a fundamental commitment to maintaining the nation’s monetary and financial stability. From ensuring stability of interest and exchange rates to providing liquidity and an adequate supply of currency and credit for the real sector; from ensuring bank penetration and safety of depositors’ funds to promotingRead MoreWhat Is Monetary Policy?1572 Words   |  7 Pagesthrough government intervention. On the other hand economist Milton Friedman believed in market forces more than government intervention. He thought that monetary policy couldn’t control real variables like unemployment and GDP in the long run. In the recent times central banks play a very important role in controlling the monetary policy. From what I understand there are two types of central banks: (1) Banks like European Central bank (ECB), which focus primarily on price stability and (2) Banks likeRead MoreUnderstanding The Financial Market And Globalization1529 Words   |  7 PagesUnderstanding the Financial Market and Globalization in India Prepared By Dionne Benard FIN4604005_2014f_81778 International Finance Fall 2014 Understanding the Financial Market and Globalization in India Abstract The research paper is a brief study that explains the different factors that play a key role in growth international financial market in India. We also took a brief look at what the RBI (Reserve Bank of India) and their role in the growth of India’s economy. The studyRead MoreDigital Payment Is A Way Of Payment1457 Words   |  6 Pagesimproving the same, largely riding on the fact that Indian consumers have shown tremendous preference for digital technologies, with growth rates for e-commerce as well as mobile phone adoption far outstripping rates in developed economies. As per Reserve Bank of India â€Å"Financial Stability Report of 2015-16† the share of electronic transactions as part of total transactions in volume terms moved up to 84.4 % from 74.6 %, accounting for more than 95.2% in value terms. While a large proportion of these areRead MoreConventional and Unconventional Tools Used by Central Banks, A Basic Study Guide1320 Words   |  5 Pagesused by central banks. (a) 1. Conventional Tools: †¢ Change of its official interest rate: The third conventional method that the Central Bank uses to maintain economic stability is change of its official interest rate on the loans taken by the commercial banks from the Central bank or the rate at which the Central bank takes loans from the Commercial banks. †¢ Open Market Operations: In this conventional tool the Central bank buys and sells financial assets from banks to maintain theRead MoreCore Banking1387 Words   |  6 Pages Meaning:- Core banking is a general term used to describe the services provided by a group of networked bank branches. Bank customers may access their funds and other simple transactions from any of the member branch offices. Core Banking system or CBS is one of the recent developments in the field of banking, and has proved to be very useful. It is a facility provided by banks in which a person, having an account in one branch, can operate his account, in another branch. This has becomeRead MoreA Descriptive Study Of Indian Scenario1483 Words   |  6 PagesDigital Banking: A Descriptive study in Indian Scenario *NishantDabhade Research Scholar (Management) Jiwaji University, Gwalior (M.P.) nishant.dabhade.mgmt@gmail.com ABSTRACT Today banks operate in an extremely globalized, liberalized, privatized and a competitive environment. Indian banking industry has witnessed an incredible growths due to extensive changes that are taking place in the information technology. The development and the increasing progress that is being experienced in the InformationRead MoreThe Securities And Exchange Board Of India Act884 Words   |  4 PagesSEBI was established under the Securities and Exchange Board of India Act, 1992. Its jurisdiction is specifically related to the securities market. Its objective is to protect the interests of investors in securities and to regulate and promote the development of the securities market. Further, under the Section 32 of the Act provides that the act shall be applicable in addition to any other law in force at a particular time which implies that the powers of SEBI co-exist with and cannot over-rideRead MoreBanks in India - Nationalisation of Banks1720 Words   |  7 PagesNationalisation of Banks Despite the provisions, control and regulations of Reserve Bank of India, banks in India except the State Bank of India or SBI, continued to be owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the banking industry. Indira Gandhi, then Prime Minister of India, expressed