📝 One-liners · 66 cards
Indian Financial System & Banking Structure Part 2
What is the primary role of the Reserve Bank of India (RBI) in the Indian financial system?
The RBI acts as the central bank of India, responsible for monetary policy formulation, regulation of banks and financial institutions, and maintaining financial stability and currency management.
What is the Cash Reserve Ratio (CRR) and which authority mandates it?
Percentage of deposits banks must keep with RBI; mandated by RBI.
What is the difference between a scheduled bank and a non-scheduled bank in India?
A scheduled bank is included in the Second Schedule of the RBI Act, 1934, and must maintain a minimum paid-up capital and reserves of Rs 5 lakh, while non-scheduled banks do not meet these criteria and have limited access to RBI facilities.
What is the Liquidity Adjustment Facility (LAF) used for by RBI?
LAF manages short-term liquidity in the banking system via repo and reverse repo.
🔒
Unlock 66 revision one-liners
Interactive flashcard deck — flip every card to drill questions and answers, mark the ones you got wrong, and revise smarter for Indian Financial System & Banking Structure Part 2.
🪙
Unlock cost
300 coins
30-day access · re-unlocks free for 30 days