CONTENTS
1. Overview of the Financial Markets - Meaning and Scope 1
1.1 Introduction
1.2 Classification of the Financial System
1.3 Classification on the Basis of Institutional Functions and
their Role
1.4 Financial Institutions
1.5 Development of the Financial System Since 1991
1.6 Table giving Various Intermediaries, Special
Development Institutions and Regulatory and
other Authorities
1.7 Table giving Details of Financial Instruments
and Markets and Various Services
1.8 Summary
1.9 Key Words
1.10 Self-assessment Questions
2. Reserve Bank of India 57
2.1 Establishment
2.2 Central Board
2.3 Functions of the Central Board
2.4 Local Boards
2.5 Functions of Local Board
2.6 Financial Supervision - Objective of BFS
2.7 Functions of BFS
2.8 Current Focus of BFS
2.9 Legal Framework
2.10 Main Functions
2.11 Offices
2.12 Training Establishments
2.13 Subsidiaries
2.14 Physical Functions of RBI
2.15 Fiscal and Monetary Policy
2.16 Open Market Operations
2.17 Organisation Chart
2.18 Summary
2.19 Keywords
2.20 Self-assessment Questions
3. Financial Institutions (FIs) (Industrial Sector) 75
3.1 Introduction
3.2 Industrial Finance Corporation of India
3.3 Industrial Development Bank of India
3.4 Industrial Credit and Investment Corporation of India 3.5 Industrial Reconstruction Bank of India (ERBI)
3.6 State Finance Corporations (SFCs)
3.7 State Industries Development Corporations / State Industries Investment Corporations
3.8 Small Scale Industries Development Corporations
(SSIDCS)
3.9 Small Industries Development Bank of India
3.10 Export Import Bank of India
3.11 Export Credits
3.12 Finance for Export Oriented Units
3.13 Lines of Credit: 1 ntroduction
3.14 Small and Medi um Enterprises Fin ance
3.15 Agri Finance
3.16 Film Finance
3.17 Summary
3.18 Keywords
3.19 Self-assessment Questions
4. Financial Institutions (Agriculture) 103
4.1 National Bank for Agriculture and Rural Development 4.2 Types of Refinance Facilities
4.3 Interest Rates
4.4 Production Credits
4.5 Investment Credit (Medium and Long Term) Refinance 4.6 Agricultural Finance Consultancy Ltd. (AFC)
4.7 Area of Specialisation of AFC
4.8 Land Development Banks
4.9 Summary
4.10 Keywords
4.11 Self-assessment Questions
5. Financial Institutions - Others 125
5.1 Shipping Credit and Investment Company of India
5.2 PrincipalActivities
5.3 Power Finance Corporation (PFC)
5.4 Financial Services Offered by the Corporation
5.5 National Cooperative Development Corporation
(NCDC)
5.6 National Housing Bank (NHB)
5.7 HFC's - Role Promotion and Development
5.8 Refinance Assistance from NHB
5.9 Housing and Urban Development Corporation
(HUDCO)
5.10 Housing Development Finance Corporation (HDFC) 5 11 Summary
5.12 Keywords
5.13 Self-assessment Questions
6. Securitisation 149
6.1 The Concept and Benefits
6.2 The Transaction
6.3 Details of the Securitisation Process
6.4 Eligibility Criteria for Home Loans to Qualify for
Securitisation
6.5 The Pool Selection Criteria - NHB
6.6 Initiatives of the Government of India
6.7 Enabling Provisions of the NHB Act
6.8 Role of NHB
6.9 NHB's Experiences / Pool Performance
6.10 Credit Enhancement to Residential Mortgage
Backed Securities (RMBS) of Primary Lending
Institutions by way of NHB Guarantee
6.11 Terms of NHB's Guarantee to Residential
Mortgage Backed Securities (RMBS)
6.12 Summary
6.13 Key Words
6.14 Self-assessment Questions
7. Financial Institutions (Area Specific) 181
7.1 North Eastern Development Finance Corporation Ltd. 7.2 Project Finance Scheme
7.3 North East Equity Fund (NEEF)
7.4 Micro Finance Scheme
7.5 Working Capital Term Loan
7.6 Equipment Finance
7.7 Jute Enterprises Development Scheme (JEDS)
7.8 Women Enterprise Development Scheme (WEDS) 7.9 Scheme for North East Handloom and Handicrafts (SNEHH)
7.10 Micro Finance Institutions in India
8. 7.11 MFIs and Legal Forms
7.12 Capital Requirements
7.13 Conclusions
7.14 Summary
7.15 Keywords
7.16 Self-assessment Questions
Bank and Banking
8.1 What is a Bank and What is Banking?
8.2 Difference between Retail Banking and
Wholesale Banking
8.3 What is a Scheduled Bank in India?
8.4 What i s the Difference between a Commercial
Bank and a Co-operative Bank?
8.5 Different Bank Accounts - Deposits
8.6 Different Bank Accounts - Advances and Loans
8.7 Banking Terms Often Used/Common Banking Practices
8.8 International Banking
8.9 Different Layers of Banking Operations in India in
General
8.10 What are the Duties of an International Banking
Department?
8.11 Administrative Functions in a Bank
8.12 Banking Business vs. Other Business
8.13 Deposit Insurance and Credit Guarantee Corporation
(DICGC)
8.14 Export Credit Guaranatee Corporation (ECGC)
8.15 Summary
8.16 Keywords
8.17 Self-assessment Questions 223
9. Indian Money Market 253
9.1 Indian Money Market
9.2 mstruments
9.3 Different Kinds of Debt Instruments and their Key
Terms and Characteristics
9.4 Long Term Debt Instruments
9.5 New Types of GOISECs
9.6 Issuers
9.7 Classification Investors
9.8 Securities Trading Corporation of India Ltd. (STCI) 9.9 Discount and Finance House of India
9.10 Summary
9.11 Keywords
9.12 Self-assessment Questions
10. Financial Intermediaries 277
10.1 Non-Banking Financial Intermediaries
10.2 LIC
10.3 General Insurance Corporation
10.4 Unit Trust of India and Other Mutual Funds
10.5 Provident /Pension Funds
10.6 Post Offices
10.7 Postal Life Insurance
10.8 Mutual Funds
10.9 Other 'Non-Bank Financial Companies' (NBFCs)
10.10 Investment Companies
10.11 Loan Companies
10.12 Chit Funds
10.13 Nidhis
10.14 Hire-Purchase Finance Companies
10.15 Equipment Leasing Finance Companies
10.16 Summary
10.17 Keywords
10.18 Self-assessment Questions
11. Internationa] Monetary Fund (IMF)
11.1 International Monetary Fund (IMF)
11.2 IMF Facilities
11.3 Special Drawing Rights
11.4 The International Bank for Reconstruction and
Development
11.5 Summary
11.6 Keywords
11.7 Self-assessment Questions 315
Appendix A: Appendix 331
Appendix B : Suggested Reference Books 425