BANKING, TISS

SUBJECT- FINANCIAL LITERACY

MOHAMMED ZAMEER SHAH, 38

USAMA SHAIKH,41

Accepting deposits

Lending loans

Circulation of money in

the economy

MAIN FUNCTION OF BANKING SYSTEM

CENTRAL BANK OF INDIA –

RESERVE BANK OF INDIA

APEX AUTHORITY IN BANKING SYSTEM OF INDIA , STARTED FUNCTIONING ON 1st

APRIL 1935,AS PER THE PROVISION OF RBI ACT,1934.

REGULATE SUPPLY OF MONEY IN THE ECONOMY BY ISSUING MONETARY AND CREDIT POLICY,

ISSUING OF CURRENCY NOTES,

BANKER FOR GOVERNMENT,

BANKER FOR COMMERCIAL BANKS.

TYPES OF BANKS

SCHEDULED BANKS

BANKS THAT ARE REGISTERED

UNDER SECOND SCHEDULE OF

RBI

• SCHEDULED COMMERCIAL BANKS/NATIONALISED BANKS,

• STATE CO-OPERATIVES BANKS

UNSCHEDULED BANKS

BANKS THAT ARE NOT

REGISTERED UNDER SECOND

SCHEDULE OF RBI

• UNSCHEDULED COMMERCIAL BANKS

• OTHER UNSCHEDULED CO-OPERATIVE BANKS

• RRB (RURAL REGIONAL BANKS)

INTRODCTION OF COMMERCIAL BANKS

COMMERCIAL BANKS ARE THOSE WHICH ACCEPT DEPOSITS FROM GENERAL PUBLICS AND LEND LOANS TO THEM.

INTEREST RATES OF COMMERCIAL BANKS DEPENDS ON THE CRR, SLR, & BANK RATES DETERMINED BY RBI

THE RATES AT WHICH COMMERCIAL ACCEPT DEPOSITS IS KNOWN AS INTEREST RATES & THE RATES A WHICH RBI LENDS LOANS IS KNOWN AS LENDING RATES.

BASIC NEGOTIABLE INSTRUMENTS

A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, with the payer named on the document. *TYPES OF NEGOTIABLE INSTRUMENTS*

CHEQUEPROMISSORY

NOTEBILL OF

EXCHANGE

THE BANK-CUSTOMER RELATIONSHIP

Debtor – Creditor

Creditor – Debtor

Principal – Agent

Bailor – Bailee

Trustor – Trustee

Pledger – Pledgee

Mortgagor – Mortgagee

CONCLUSION

• A banker is one who in the ordinary course of his business, honors cheques drawn upon him by persons from and for whom he receives money on their account. No person or body corporate can be a banker who does not (1) take deposit accounts and current accounts, (2) issue and pay cheques and (3) collect cheques crossed and uncrossed for its customers. One claiming to be a banker must acknowledge himself to be one, and the public must accept him as such; his main business must be that of banking from which normally he should be able to earn his livelihood