Category: Banking & Finance

Reserve Bank of India (RBI) is the supreme monetary authority of India. Important Role & Functions of RBI is to issue currency, Managing Foreign Exchange etc.

Banking industry in India can be classified into different types of banks. Banking in India is regulated by RBI Act 1934, Banking Regulation Act 1949 & FEMA

National Payments Corporation of India (NPCI) is an umbrella organization for all retail payment system in India. NPCI was established in 2007 as a “Not for Profit” Company.

RBI controls the supply of money by the monetary policy. Monetary policy is adopted by the Monetary Policy Committee was established in 2016.

Baked by Fiat money Easy to transfer Exact amount can be transferred Legally recognized for high value payment Bank Money Negotiable Instruments Act, 1881 Bill of Exchange 3 parties: future dated promise for payment Requires ‘ stamping’ Cheque 3 parties: drawer, Drawee (Bank), Payee (recipient) .No ‘stamping’, but sign req, may be crossed Types depends

At the beginning, there was no money. People engaged in barter, the exchange of merchandise for merchandise, without value equivalence. Evolution Barter System Positives Simplest in form No foreign Exchange regime No concentration of wealth Negatives Double coincidence of wants was must No division of labor Exchange of perishable goods No saving capital No circular