Indian Money Market

Introduction: Banking sector The Indian Banking industry governed by the Banking Regulation Act of India, 1949, falling into two broad classifications, non-scheduled banks and scheduled banks. Within the commercial banks there are nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks (the old/ new domestic and foreign). With the economic growth picking up pace and the investment cycle on the way to recovery, the banking sector has witnessed a transformation in its vital role of intermediating between the demand and supply of funds. The revived credit off take (both from the food and non food segments) and structural reforms have paved the way for a change in the

“The money market fulfils the borrowing and investment requirements of providers and users of short-term funds, and balances the demand for and supply of short-term funds by providing an equilibrium mechanism” (Money Market in India, 2017). It serves as a mechanism through which central bank's intervention in the

Interest rate is considered as one of the main parameters to control the economic conditions of any country. Interest rate is the key variable for time value of money, which causes a greater shift in money markets and capital markets. This study is basically carried out for the capital market or stock market.

Another factor that has favored the establishment of these schemes was the lack of formal market. There were only 3 banks that operate in the market, taking deposits and possessed 90% of deposits, which were not reliable intermediary (Bank of Albania, 2003).

The Dictionary of Banking and Finance characterizes “Investment Banking” as a term utilized as a part of the US to mean a bank, which bargains with the guaranteeing of new issues and prompts partnerships on their budgetary undertakings. The proportionate term in UK for such capacity is “Issue House”. A more extensive definition is given by Bloomberg, which characterizes a speculation bank as a budgetary go-between that performs a mixed bag of administrations incorporating supporting in the offer of securities, encouraging mergers and other corporate rearrangements, going about as specialists to both individual and institutional customers and exchanging for its own record. Speculation Banking has developed to include a critical place in the field of money related administrations in India in the changed period.

The majority of finance, in lieu of some exceptions, does not actually deal with money. This is because finance pursued in the economy today deals with currency. There is a distinct and profound difference between money and currency, even though the terms are used interchangeably. Money and currency are both mediums of exchange, units of account, durable, divisible, portable, and fungible. These terms mean that both can be used as intermediaries in trade, numbered and counted, have long and usable lives, both can divided equally into smaller units and made into change, they are easy to carry or transport, and each unit is capable of mutual substitution, or the principle that something it worth the same no matter who has it or where it is. The main difference appears in the storage of value or lack thereof. While money is a long term store of value and retains its purchasing power over long periods of time, currency can, and as history has shown does, quickly and easily lose this power and value. (GoldSilver)

As money became a commodity, the money market became a component of the financial markets for assets involved in short-term borrowing, lending, buying and selling with original maturities of one year or less.

This background note is intended to provide essential understanding about various ancillary services offered by retail banks to their customers such as; A. Extension of Safe Deposit Locker / Safe Custody Article Facility and Access to Safe Deposit Lockers / Return of Safe Custody Articles by banks B. Remittance facilities for Non-Resident Indians / Persons of Indian Origin / Foreign Nationals C. Interest Rates on Rupee Deposits held in Domestic, Ordinary Non-Resident (NRO) and NonResident (External) (NRE) Accounts D. Forex Facilities for Residents (Individuals) E. Electronic Money The required information is largely sourced from the public domain of Reserve Bank of India websitewww.rbi.org.in

Now-a-days the topic of financial inclusion is standing as an emerging new model of economic intensification. Financial inclusion is the recent notion which helps to accomplish the sustainable progress of the country, through accessible financial services to the unreached people with the help of financial institutions. Thus it plays a vital role in economic development of the country, by helping in pouring away poverty from the country. The main aim of financial inclusion is to make available banking service by providing access to financial market, credit market and gain knowledge of financial matters. Thus it aims is to provide banking and financial services to all people in a fair, transparent and equitable manner at affordable cost. Reserve bank of India and government plays a key role in promoting financial inclusion for economic development in the country by deepening the penetration of banking, making the banks nationalized, by RRBs establishment, introducing the approach of one person one account and also by launching the self help groups (SHG). Simplifying the KYC norms, interest rates improvisation and providing easy access to credit facilities are some of the key steps taken to strength the process of financial inclusion. The present paper studies the significance of financial inclusion in the economic development of the country. It also attempts to study the coverage of financial inclusion in India, along with its experience gathered by making studies

Money supply plays a pivotal role in an economy in terms of affecting its prices, output, exchange rate, etc. In a developing economy like India where development efforts are majorly made through government expenditure, money supply in the economy tends to increase rapidly, which may cause over expansion of money supply. Thus, there arises a need for comprehensive study of monetary aggregates and their components to regulate money supply which provides a base for conducting monetary policy in the economy. The present study is an attempt to analyze the growth in various monetary aggregates and their components for India in the post-reform period of 1990-91 to 2014-15.

|India’s Monetary Policy during recession, Currency Management by Reserve Bank of India and the summary of Monetary policy frameworks of |

The reforms’ pertaining to the monetary policies and the macroeconomic policies over the last few years has influenced the Indian economy to the core. The major step towards opening up of the financial market further was the nullification of the regulations restricting the growth of the financial sector in India. To maintain such a growth for a long term the inflation has to come down further.

FINANCIAL MANAGEMENT ASSIGNMENT ON INDIAN FINANCIAL SYSTEM & SOURCES OF LONG TERM AND SHORT TERM FINANCES

The Indian Finance Industry scene has changed radically with the private division making in street in a zone heretofore commanded by expansive open area Finance Corporations. Developing disinvestment is probably going to affect the money related industry also. There is each plausibility of privatization of open division Finance Corporations, prompting to more prominent operational self-governance.

The intent of writing the following literature review is to highlight the knowledge of origin of black money, the consequences of black money on Indian economy. In addition this section will anchor on how the economy is going to change if black money from around the globe is brought back to its country. This review will be done by studying and scanning of existing resources on Indian economy. It will also determine the policies made to stop generating black money in the first place.