MONEY ND OANRING

Monty
Moheyis Ghutibg uhich
acce d QA c meiUra
is COmbnOhl
xchebge.

daumdc MOhiy
Jiat Mohiy Ghd iducioy Mohky
Hiat l0hty-JH ia that frsibn o boOhty bich
14 backed bu he OHdeo heGovehotht
i s elso khauob 04legol tehdeu mChy
l h dludes mohtyjh the fouo Chotes
Chd Coind
iduciosA MoheyJiA based ob JuAt
bettoh bauey Ohd baue os q eheqcues
demCnd dualf4 ete
uull bodied hmchiy Chd Ca1edit Mohty
ult bodied monty lá thotihd c ochty
Lusboseoohey Valu LAeGuaL to Cohoboodifu
Value CA Chd uheh tazued. theSe wHe s&utd-
Josye.q a suut Colh 14ued dusinq e Rsutish
heniodib dhdia Lhade cALlve hnonty value
SCobom@dity Value
 IASSMAte
Date
Page

Cuedit monty 14 hotC81m rone,

rochty yolue 14 9ieCd 1ho Co
value des SO0 uhts hodei-
,in h e eCokobmu
Colh94CVCiLihq
hLeda

MOnty yalue ulejAo velue ofbno

Ahedia ihacdbed Oh C Coih c9 tos.
h hole

Cohoooditsy Value suqed o Nalue o iibg

mohiy14mCd

Subply cMoht
Aupply achiy MelaAto tetal Atock c
mDhtu hdd b he h i c caColshtu a
e oist o i4 egual to Cteu
held by he bblic chd he dmed ceboai
hdd b he Cobmbneucial bekkA

MohtyALbply iA aAtock Cobas h

de mecALseA to calculcke Aupel M
aohty Jhe4e QS4E ML M2, Ms ha
hmeGALMmthA
Accosiding M
mohty A meGA
meGsLAUmeht dply o
CLLLLChly

hld he uhlic Chd het

' a d e m a h d

depoaid heldbu h e Copme4cicl

behkd.
 Date
Page

SupyCoCht CU DD
LuhueGUAtchda
he oblic Cnd DDfoCsis/thCy hedd bj
depoit A4ends fosne denehd.
held by COboaCielbeheA
Heue Cuitty hucles hod
Ne detnmcnd debosit doc c Chd i d
bot ihdude ilesu
behkihq leimA
LAccosAdiha to M hmecALSAmcht
Cupply oohty EMit SavinGA ce beoble
uith boAt fices
AcCosudihq to M3 me GAAemeE
Supplyo moneu = Mit Ned tiboe deoAit a
CohnbeetuCial hehRA

HccosHdlng o ME bocasttath
SLplyo mohty 3 t SavihGs Luith Podt
Oice

Suppslie4 Mon&y
CedM@Bck
DDhomeHciclBcnks

ovestnmeh
 Bade
ledo G4udenm oy
BasdeSutem

GocdA are exch

a`e xchchcedasaoda
i h ubichithehge Cotfoho Ahoes
es e.q-
C-CCohoaylohhocdij
t oCOhabacdUHy C C o h o h y

Pcblero4DucLobackA des Adem

Colhidet LdA-Urdeu
Peicblem cdluhle
Audem, 1d 14 diiCLt fo_(Ome Q.CaMOK
thiA the gods
abekoh uh0 heed o hehce
he Commodity the Oloney k boving.
wikh

2.Lack dividÍLilky dh Commodity chchce

as
lack c diviaibiliky cthe Qeod SuAed to
f.G1 iA diiCutt to divide a bicde
PuMhCe C hotchoaki

Atoac xalth
DLiudty ih Atosúng_Lwealth
heuidhable itumd1A
AiCUu t lh CGke
vey ditLd. Atciho ueallh ih euma
igh Cost Atos1age
Cobomodity ako IhvolveS J
Ghd degsHddalioh_ yalu
Laumehtjud
4Lack ichdasid delesMEd d u C L e l t Í b

Ccstolls yeHy
co heshey dustem
 alAsSMATte
Date
Page

5. hME LOC4 Lack e Cobooon occAuse yelle

Scnuc yalue wGa dillicut.

dily
dudy uhctiohA Mohy
JhctiOhA a mohty CCh he mccsRd hde
he foLDting duohecdai

Pumcydhdtion
Aecchdaly hctioh
1Pumauy hduioh-t incudes the follouin
ttuo dnctioha

CiMedium G cheng ohty CCn he ucd o

mcke o cll he dichiccHiohA
OGccdá nd Aeuyices

MecAlse Vcue= Moheu Ao Q4 mccALse

yclue. heclue o al GcodA Cnd deyice
CXpAAAed h Jeund mot
mohty

ge 2SeCondauy JLhtiohit incdude, he folloudng

ncuiohs

bAasue c vclue H A0HE_yalueiheplies G

AtaMe Coh be ecAl, AtoHd
Lueacth Noheu
os fiue wsJ 1s the hOAt Cohveish
Chd e COnchiCC eGhdfaAtOye eaihihGA Chd
weeth
 Date
Page

dis1hAleuVGluei0my aKo_AuyeLn
Juchleu alUeHaCilfetes blsin Cnd
Aellihg Geods hdoly Ih dornAtic
(alusdy bt ekuo Ih otheH adA ohe

i Slehdaud o delesued umCA hotChM Hhe

mCnty Ccts Ca c AdCndoHdobma.kihg
Ltuie boumttd S1 hCA bac.de dleusued
paymetA mUch CAl AhCh htlosiR alla
Geod Chd Atviceso be CiCQLuHed holo Chd
pcid Jos Îh thefduue

OuiginaMohe
1MehtyLqA in he fosimagcod ie goodá
Loeue (chahged os Good4
2 Loind gold Chd Ailyeu ee irbueduud
3Cins allos mdel
4 Pabe usehG
5PMaatic mohtuIh the fosu oCCJh Casidd
uke debit csidA Chd CHedid 'casHdA
. ochey 0 ledyoic-mob
 lAsSMAte
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Bck- Bchk A a inChial ihAlitutiob he

CiCCehts depDAlHA Chd cdvchceLoch O
H ublic
Ceduc Bcnk-CedsiolBehk A Ahe ch
lhdHHtuoh Jhe otHOk Cnd He Geukeies4
hetliue bcklaih Ausdem of C CoL H
hdicA CdH0 eN ARRI"(RLeve Bak
ndic)
RBI c a dub in he yea 935

Juntioh4 o Ceduc B e h k

1Cerdse bck o c Coltsuyhu4 hehochook

celled
SuGhEto Aue Cusuehie wkich is
CusHHehCy authosutsuuhcioh RRI he
hades AXued by the CustsicbehkCHe
Lunimided Jeqcl tehd e
Berk c i u

adA qA Q bChk Ge ahd

9CedHal bChk
LEDyesihetid
hCic advÁOS
bchke o the govetbot 1d mchGGES
HA C
CicCoLkA he gevehhot
Chd dellk usutis
it blud
HA Ch_adeht goveuhme.
o he
oh btha Hothe goveuhmed i
helps
HA Ch cdyXa
g O V E M h n l h I h m a R l h q
bolicies fo
the
SHeGulede i h e m c h t s m a h k e t

bank
t h e bcakes
Cerdsial benk acta
Cd
3 (Banko bcbk
 Date
Page

accetA dechodita-HO he ComraHial

beskd Chd oleuA Lecha to hem.31 cdAo
Aubeides Chd SHEGelets th CohonmeMCia
bonkaHA 0 AubeuVdaS1 k eetual bchla
ehauMe hod the Commeudal bckks AhaDA
ComlicChd to he lta divecives so hat th
desiste d dostces CHeackieved Apeuall ih cAe
oCRR Chd SLR
he tHal BeChk clao bHOvides clecihq hoLAe
acility to he Commeuial bck bich (4
Che
Gue clecig adutu

4 a Cuedil Ohe o he imbosztcn

hctioh o Cuslsuc BChk 14 COtHallüng (Hcdid
houecAe s h h
deHEGA
H Iblie
ALbpy onty by SHegulatihG lhe CuediE
CHeHOh 'cobauy c he Commeuia hchR
Dihg ÍNlatiohhe Appy cmohu dellatoh
SHelsdcded On he othe hohd dusuh
GdHalBenk
4GbeuaiAed o ihcuccAtd
ikeCRR SLR Bck
Ae he ihAtuumentA
Rebo 9ode KeyeHAe Rebo uade_c fo
COtHO Cuedit

OtheLnctichM C t i a l RChk
1 C O d i c h a o u g h chchgcCdMal babR

o 1 4 t h CutadichcfoiGh-
Cotd uy
i h o i G h cOLhf
ccheng HI eaHhin.
 classmAte
Date
Page

dChiccios

2LRhd e the Lct MOStlhe Cudac bahk

pHOkides uwnda o Coonnesiciel behkA CA Chd
uhth heu hetd lihGhicl help. 3khe
Cohomeucic bck Jcilto qet indhdic
CCConodlctiohÍt cpbuCaches Cducl
behk c
he CoLuy he Cdaual bChk kht Colhdhu
ad vChLEnecJAa Cueditto the Cuhonaeia
bekk aqciht elegiBleseCueitics
ReCsoh fos lhdihq
lo hAME h e t lhe behkln AuAeho c the
sehack
CoLHydouA hat AWle1 cRy

HemaihAteble
MahLYaaike

Uectioh o teiiduics- d sial bek callect

3 suelatinoeabalkihq
Actiskical iKfosumctioh
JauuiGh exehehqe Lkich hel
CASAEhCy Chd QHalokh
ockhq olidies Chd plenA o
ib
Chd deyelopnmet.

Bocttwxth Ccdtsial Bonk

Diffeende
Chd obobneucic BChk
 GerdsratBak CommeuGaf Ber
Ctse bonk Í4 the op corocidicd benks
ihAtidudion ib he bochtu CHe baddls C Lri
moukeE i c h CohdtoAbcnkin sfu e
the etisae behli hq
Alem

Couklsuy h4 Chly cne29 CcLkdubeu have

CstsHclbchk mc O Kumbe al
Ccromeicl bchka

Cestsial hcnk clbmaa CChoneuial bcbks

AOctal Loellcue
hrooimzotíoh.

4 does hot deal t h deak uiih

gsheval Lblic gheual hlic
ComeMciol behks do
Cctscl bonk has the
ighi b
muhoboly SughE fo 4ue hot taye the
iAueCLHAdiel
CLLYAhce

1 4 he Cuutodich t 14hd the

oigh_ henge CLtedich Jauigh
echehg

behks
GAdic behk CotyolA ammucicl
CHeote CHedit
Cuedit
 clasSAte
Date
Poge

Mihimum ReAcsAve Asteno

Oh Shdia RBI 4SUCsCLosanCch
O ikimun he bGs1A
ResVe SutemUhde hA.
duslem, RBI i4 Abbosedo meidalh a
lkibnUm_SMEAEye
Om Qod Chd
Voluc_ gold ms be c 5 C4Oe

CoiA aldehomihatiohs Cnd 1-uLpee

hetes asie l4Aued by Mihids nchcc
ote C al dthobeinadionA Ceoupt 1-upec balk
GHASued b RBI

GteditCod Hal hcioh o the

Cedste BchkI

Che o he fnctuiona o Gatstal Ronk ja o

COkMo Cedi
Cudsualbcak LseA dilleytnt IhdstumertA to
LOdua CHedit lhese [hsttumess.aucberoadly
heads
be cdosLied Lhdet Jhe follouihg
Qochiideti ve hstsuumtd
2 oalidative dhstuUtnetA

QuCntdative hdsuuhaerdA 0se Ahoae inutumetA

eljech oveia
oOhttay policyukich
C CHedifhhe ecchohmy.
Cnd
Atbply o hChy
LheeAQualifative dhAtsuLmedA suestaits
 JheCldo o Cedik o 4peai scka
aLouihq Mehe imbosdah pucudcdive
dhAtuota

ci Bank Roded 4 he ukich.wdsal

bCak lcndd o CohroeAdalbchk4 Hh inoCAE
in bck 9401e hoiccA heCo44 o[ boss1ouir
o he CoobatsMcicl bChk Chd bent hey
IhcHcGse he massket sAcde o idocut Kich
SHCduces demchd fos CHedit 0h Ahe 0dhou
hohd, ilh hedecHccue ih benkMaie(oomoid
bonka decHccscs mcsket SHcde keRAE
hthc dem.chdJo CHedii lh CHeAU

dibRepo S1a C i 4 he Hcte cd kich usdstal

bcnk jeA Ahosd eiad loch4 o ht
ConmmeJC bchkA by uchGAlhg lhe gevenoa
ACCusidu'cs ihhe cbth massket. 9Hepusch@e
Cqsuttm.ct Aighed by hoth he paie
uchchcacd
C4otihg Jhodhe scuiics uillbe
gith dade ot o
by Cooot1lal bcnkaCh a K1lt
pHCdd.shinedL bhi b
Repo 94cdc AdchdA Jo RepLAchcse Hcetuhntt
Jea.dao
Ihth S1epo 9Hcds AincHCGAed14 theueloMe dumand
9ÚAe h Ahe Cost d caplal
4 c d i d u i L l J a l l A c c o i d / i n g l y the dLpby
faM alAo decHccAed
heclohchmy
o oUntylh
LdhcHecseh Msho Mcde
odtieu loano
 CES
Date
Page

Ccboaes4CÍc benk Uheuelosie demCnd dccHCCAC4

ReducHon ih CHedit CHCatichRcbaci-
bek heueloHe ls CMedi HCCHoh

Oh the othe hohd ueduction in 1cpo sMode

lead4 to ueduced Cokt Cchital uheuelote
demehd o HeditihuedAes Chd hthdtsup
C oOhe hAhe cCohooyihCHCCA
i i ReveAAe Rebo Rcde-4 4 he SHate at Lukich
ia Cendsie bcRk aCoLdty OCceta dehodiA
bekkdi4clso
SHchn he Coma ie
KCte
koLOh Q4 Reveuse RepLuchGAE
[hcHccAEs
Sh cce 9MeVeeAe Hebo Hade hdukd to beslk
Comoes4Cal benkA m y b e
c u a l bebk kich sIcducts
moke mchly uith tk
his Cedit CyeLIOh C0euiy
Sievet4 Ho Hafe i14
On h t otheu hend, i disceHGGEd o
mCuy bc
decuecsed hebeaks dhe Cudaual bcak his
uilh
p e k he h d s CuGtich (aaadiy
inCHeCss Aheist
CuediE
Cbd hunt hoChiylpply

to
Ratio)-CRR s1tesAf a
CRR (Cosh Reseve e C L t c g e c
tal
q b C h k A

uwth
ahd he
hmiiaum
as1SLppEAcd
to keo
debosit Ahat
hty
Cusdsial bcak
cteatich
Heduccs
Cutdit
Jhuuecue ih CRR
 Coccidy Ahe bonk ubestcddeouct ir
CRR ÍhOHess h e ocdiE toich.. Cobodhy
of dheberk

(SLR AHodutomy Liquidily, Redio)=Ahe

SLR ou
o thebeicutdc doi ouucE.of
Cobome4IO bKR Jhc hsG1e ZLpkoskd
maidcih ih thc auroo Ccsh.qcld chbd
LuhehtunmbeHtdCbhuctdAcsik
dncHecAein SLR decHCCAAmuntALLplA
Lhd
olecHecke ih SLR LhcMCCACAmcntyALLplA

yiCÞth Mauke peatich- suclea o scle crd

9avesunnt A u s i i i sIh ih
puMchcKc
bonk)
opth hrakk iE(by Ahk Cthlual

heh Cdsucl bchk AalA Ahe seuitiui

AoCks the Licuuidiiyacho the cLohorey cLh
S1eAeAVes o the CoobncMClal bchks due
decueGscd Chd AheuedoHE hu 4 Hcdudioh
ib htis cuedit cuecich CGpauty
hth RBI SLchcs ihe scusuiiutE
SHlcakes he calh u l t
liGuidiiyheuease
Jeads
h e bck_ihcuecsd Chd hth ii
F6 hcHeGAed CHedik Cutch Ccact
h
Commedal bChk

Quclitcdve Shsdsurntds

bMougin Requustemehd
mcMgln [4 dhe
 IAsSMAte
Date
Page

Cbth bduocuh the Ghoduol khe loc Ghdd

mcskeENaluueoAeCusdty
CicGlh& h Loch eedby bas6icl
eG 1Ahemciagln
SqLis1tho ia Zol Chd Ahe boh i4 allotarci
h 4eCLudly

Jhoucod ih mes1Gln MEGListem E Iada Fo

1educed C1cdit Awbbl Ch the uthe hehd
hth CSLGlh eQuuuemeh i loleRd
uhtnmonyLPply 4 ohe lhHeGAed

Oth eM Lh&tuumepA

bRatickihg CMedit- t StdeA o ciion

oCHedi Guote tos dilleiu buúlheis
Cici Vitics,he CommeuCia bcnk CChho XCeed
he quuote Uhmid uile queihq lcehRatioklnq
Medit is IkHOducdusath ÁLssply_a
hecked baditudcsuya
Cedit 14 to be
Apeuletive acivitieA Ih he
CCono
Ccoo

uheh
Rauohhq CHedit i4 ihtHoduCed
i4 to be educed ih the
mohty pply uidhduCLal
Conoky Oh h o t h e t hehd
ihCueCAA theAAply omah
CSMoti8king
Chd COdsYak ddlatioh.

adxice
Suaaich-SE desA to sthdeung
Ltsua bCAk
heAR
i MbsHa Ccmmuialbeik
by (chtsial
o h
 AsSAte
Date
Pege

Jhe bohk au Czpeced ko lelloo Jhe

disHeCAVes C udLalbchkJh CCJe
ihledion Ctsucl bck adviseS Ihe Cohomesto
boik to SHCAtaic the loch hccq4 dhe
advice lo be Libeucl ilethdesung 2
givtn to Cuducldelctioh

Mohty CsAeoiinh by (oomeMial

OBehkib Auem
COmpmdc bakA CMeimasdcht AousCe
hachtyAuphly Jh dhe CConony lhty Okdsubtd
o thEy Atoy byCuecduh Cyedithty
CHecde edi h astm
dupoAits ukich O moL HmeAhmoue then
heiu CoAh EkeAVe
LOmmeucic beka S4ecLive tkeisr dekositA
Hom he bublic ukich 14 Aed Fo Give
Locn. ou muth moby uill he ieditcd
Le Locbs uillbe given 14 ddeumined by
he ChmaLsk c hiic depoait Chd CGh
Heseuve 9HLGALuHem E CCRR OM LRR

Bious Monty Csicadich

OhtyCHtation by (ommeucial bchkA
Coh
CCh be LuhdeAlcod uith the hp c
he folLotuingpoisA
 classMate
Dafe
ge

BckA MeCive depoAitA

Dublic Rholah CCCAh)1cho the
Ntic Delooait C4P ma Deposi DeposlO 04
22 bihimunm buutage c c he deosIE
beRe dS4Cve CLRR L4 Eo
OS1 CCsh s4esEsAVE-
S1CCGLUS4hmtt) he leE deboAit ccnbe
usedby he bekkA Jolthd
3 hebcnk LudA the dise cncuuk cavir
CAh HAev) ie ih the oSio
ektu Hcdit
h the accoLdA the beCLe SE
The b0SIOL Cch iA4ue Checues CgclhA
he och OS4 OmoLwhd ih hti GCCoKE Chd
huhl mOhey CiMClefe h the eCohcms

4Ct theLAtlohdasy deboait tht hckks

CCh Coalh lund. keusng Q miNmunm
peulu`uGQ4 CGdh Meuve HeGuuMtoth

The bSHOCLAA Coktihues h the Achoe mchhts

tu CRR beComes Giek o ihitiek
depoait
Lill be Csuecdeddeochds
Houo much mChty
Qhoclud ikicIhikicl
deoodLEOnd the
Ohthe
peicchdogo egtuS1CAEMVeSHCisttntht.

etekmonty_uectioh
lotak debosit C thefollouihg
Caluuleted. usihq
Coh be
 clssMate
0ate
Pege

aMmLla
he
M CHecdibh ritrek Deposit Sue
CRR

LRR
Cesh Restve
ht
Rs
Houo mChy Aimes lhilicl deboAi altip C4
o totcl o'ejoDAIE deoehdA ch (uediE
bmultipluey O4 ÍA detuminoed buhe ucte
e HesesAve He GLiHtmthdt Ceh he
eltiimcded uAlnc dheollollhq JoMmula
Mohty Multipliey
CRR
Hosq1 CRR i4 10 hen (ue dit/mcnty
mlultipliei uuill be eGuel o

m
TO

lheueleHe ihikie depoAiE will be mulhplicd

by 10 ime

cChbe undeatacd ikh the hip

heolloluing oale

Let u4 CAALhmEJhet hee i4 C dinçle

biaRihG yattm h he Colbty dhd o
 classmate
Date
Page

CCLLtA Chd bcuumentA CMe

he bek
Let LRR be lo7 Hoded hSHOugh
PhoAE G_bsch M X
0HeLRR buinG207 Bcak decoitA Rs100
ORe iA
Rs 20 oSHe Ca MeAeye AUphOÁEd
Chd ues
ht be Jthds he diHe Cnmud E
Rs o CHOS1e lisCmcLs illbe Giyh
U4 Ce diE epd ihboHHOLO A CColh.
Iheueaue ih th Atoce. totel duboslE
u i l h e egLLel O Re Ioo CHOMeRe 8O CHDH
. Rs 1So CHOHE
TLACmaud Rs Go CHOSHEs hqA btth
deoosited ibh he hCnda obenk huefosic,
the bCh 14Cgclh fu fo lend go7 c
hedeoAI he benk CCh lend Rs 64cHDe
Ct thA AtaGe Noto otel debossE14 eGLLal
to Rs 180 cHbue t Rs 64 HOSH 244 iaSHe
IhedebeAiE CMecctiobh otibhues ih he chove
hmCnne nd the dleco4l go b h JhCHecAlhG
HeeHon
9LOLha cte HOLhd lhemoney
CeAh1eseye
Comt o Ch ehd h t h totel
ihitic
olesosE beom.eeGual fo the
debosiE

BankMoheu BChk mthtySeleMA ta demn@hd

thepublic i t h h e Commeucla
depoaltA o
bcARA
 elassMAte
Date
Poge

Round DeboAlt CRR Lcon

CR Ih C-ICHe 20%)|CR ih O0
OMCA
Round 20
itial deoxi
Mo
Rolhd9 16 64-
RoLuhd3 64 12..0 51.20

Rolhd 4 51.20
B
Tot ol 500 O0

O0 5timo
MOnEMtttisttTCRR 107 20

otcl dl ea0kit l00 y5 500

omhe choVe eble i 4 cleesyJhat

ihitic dec04lt keabA Oh muttipluihg U
CLL XtdAHeuVA CHe ehaldtedlhe
GhtL CRR htemes equato Ihiluc
des0dt

High Puhlic,Vot cch c he CohonocsiL

High-potohmchty uyed o heCuth

CCahomeMcicbckk
bCAkChd CCLh HekuVE
LAkh RBI 31 1A also khoLh A Moheta
BcSE
0M BcA Mhu Jh he CCOhomy