Banking and Financial System

Paper Code: 
ECO 612
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 
  1. To study the role, nature, functioning and issues related to banks and non-bank financial institutions.
  2. To understand the working of financial markets with special references to banking and financial sector reforms in India.
7.00
Unit I: 
Reserve Bank of India
  • RBI- Organization & Management;
  • RBI- Functions and Role;
  • Monetary Policy – Objectives;
  • Techniques of Credit Control used by the RBI.
9.00
Unit II: 
Development Banks in India
  • Development Banks – Structure;
  • Industrial Development Banks for large industries (All India) – IFCI and IDBI;
  • State level Industrial Development Banks – SFCs and SIDCs;
  • Export-Import (EXIM) Bank of India;
  • National Bank for Agricultural & Rural Development (NABARD);
  • Land Development Banks.
9.00
Unit III: 
Non-Banking Financial Intermediaries
  • Organization & Working of: UTI, LIC and GIC
  •  Non-Banking Financial Companies (NBFCs) – loan companies, investment companies, hire purchase finance, lease finance, housing finance.
10.00
Unit IV: 
Money Market in India
  • Indian money market – unorganized sector;
  • Indian money market – organized sector (Call money market, Treasury Bill market, Commercial bill market, Certificate of Deposit market, Commercial Paper market, Money market mutual funds);
  • Characteristics of Indian money market;
  • Reform measures to strengthen the Indian money market.
10.00
Unit V: 
Capital Market in India
  • Structure of Capital Market in India – Gilt Edged Market and Corporate Securities Market;
  • Role of Capital Market in India’s industrial growth;
  • Factors contributing to the growth of Capital Market in India;
  • Problems of Indian Capital Market – the pre reform phase;
  • Strengthening of the Capital Market in India – the post reform phase.
Essential Readings: 
  1. Gupta, S. B. (1988), Monetary Economics – Institutions, Theory and Policy, S. Chand & Co., New Delhi
  2. Mishra and Puri (latest), Indian Economy, Himalaya publications.
  3. Bhole, L.M., (2004), Financial Institutions & Markets-Structure : Growth & Innovations, Tata McGraw Hill.
  4. Rudra dutt and Sundaram K.P.M (latest), Indian Economy, Sultan Chand & Sons.
References: 
  1. Bhole,L. M. & Mahakud, J. (2011), Financial Institutions and Markets – Structure, Growth and Innovations, Tata McGraw Hill, New Delhi.
  2. Mehta A.P. & Bhardwaj O.P., Money, Banking and Finance, Vishal Publishing Co.
  3. Rangrajan, C. (1999), Indian Economics: Essays on Money and Finance, UBS Publishers, New Delhi.
  4. Reddy, Y. V. (2000), A Review of Monetary and Financial Sector Reforms in India – A Central Banker’s Perspective, UBSPD, New Delhi.
  5. Gupta, S. B.  (1979), Monetary Planning in India, Oxford University Press, Delhi.
  6. Gupta, S. B. (1995), Monetary Economics: Institutions, Theory and Policy, S. Chand & Co., New Delhi.
  7. Gordon , Natrajan (2009), Financial Markets and Services, Himalaya publishing house.
  8. Khan, M.Y., Indian Financial System, latest edition, Tata McGraw Hill.
  9. RBI (latest ed.), Functions and Working of RBI, Bombay.
Academic Session: 
2017-18
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