In the previous post, Myonlineprep gives us all the information about JAIIB exam pattern, syllabus of JAIIB exam, eligibility criteria, schedule of exam and many more about, which we should be aware of. Apart from, it provides us JAIIB Mock Test series for the preparation of JAIIB examination. However, before preparing it we need to understand its subjects very well. Therefore, now we will start up from some important notes on Principles & Practices of Banking (Module A).
Module A - INDIAN FINANCIAL SYSTEM
The financial system is a framework that permits the trading of assets between banks, speculators, and borrowers. Financial systems work at national and worldwide dimensions.
Roles and Functions
Reserve Bank of India has two particular jobs (1) monetary control and (2) Administration of banks. Presently, RBI has built an office called "branch of supervision" to control the business banks.
Essential Dealers (Primary Dealers)
Primary dealers are those dealers who deal with government securities and deal in both primary as well as secondary markets. Their fundamental duty is to provide a market to government securities and enhance the government securities market. Therefore, we can say that primary dealers are performing as a market maker of government securities.
Financial Institutions
Financial Institutions are improvement budgetary foundations, which give long haul assets to the industry as well as agriculture. All these establishments are under off-site and on location inspection of the Central Banking Authority. Financial Institutions raise their asset through long haul bonds from the budgetary framework and borrowings from global money related foundations.
Urban Co-operative Banks
Urban Co-operative Banks are constrained by State governments and RBI, while other Co-operative banks are constrained by National Bank for Agriculture, Rural Development, and State Governments. With the exception of specific exclusions in paying a higher enthusiasm for stores, the Urban Co-operative Banks administrative system is like different banks.
Installment and Settlement of Financial System
A proficient and powerful Payment and Settlement System is an important condition for effortless working of Financial System. Upkeep of clearing houses at a different location, making of money holding chests in various geological zones and production of the instrument for the electronic exchange of assets are different exercises attempted by the Central Banks.
The executives of Government Debt
The vast majority of the Central Banks deals with the issue and administration of government obligation. This includes value revelation, a residency of obligation and coordinating it with the general money.
Investors to Government
Central Banks keep up records and stores of Governments and bring out their money through the Treasury Bills and Bonds. The Central Bank gives liquidity support on a brief premise through the office of repurchase of securities to banks to meet their momentary liquidity prerequisites.
Money Reserve Ratio
According to the RBI Act 1934, Cash Reserve Ratio is the measure of assets that all Scheduled Commercial Banks are required to keep up with RBI. Money Reserve Ratio is the compulsory store to be held by the Central Bank.
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