Indian Financial System & Banking Structure Part 1
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary function of the Indian financial system?
The Indian financial system facilitates the mobilization of savings and their efficient allocation to productive investments, thereby promoting economic growth and development.
What is the full form of IRDAI?
Insurance Regulatory and Development Authority of India.
Which apex regulatory body oversees the Indian banking sector?
The Reserve Bank of India (RBI), established under the RBI Act 1934, is the apex regulatory and supervisory authority for the Indian banking sector.
Which year was the Reserve Bank of India established?
The Reserve Bank of India was established in 1935.
What are the two main components of the Indian financial system?
The Indian financial system comprises the financial market (money market and capital market) and financial institutions (banks, NBFCs, insurance companies, etc.).
What is the full form of NBFC?
Non-Banking Financial Company.
What is the distinction 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 have paid-up capital and reserves of at least Rs. 5 lakh, while non-scheduled banks do not meet these criteria.
What is the main difference between a public sector bank and a private sector bank in India?
Public sector banks are majority government-owned; private sector banks are privately owned.
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