MAJOR VII

INDIAN FINANCIAL SYTEM

OBJECTIVES:
To Learn About the Indian Financial System and to Understand the Role and
Development of Banks in India (Theory Only)
Unit – I
Financial System Meaning, Significant and Components-Composition of Indian Financial
System- Financial Instruments and Services- Financial Institution- Indian Money Market- Indian
Capital Market
Unit –II
Reserve Bank of India: History and origin of Reserve Bank of Indian-Organization,
Management, Functions- Credit Creation and Credit Control: Monetary Policy – Techniques of
Monetary Control.
Unit – III
Commercial Banks: Meanings, Functions – classification of Commercial Banks- public
sector, Private and foreign banks – management and Investment Policies of Commercial Banks
Recent Trends Indian Commercial Banks – Banking Innovations
Unit – IV
All India Development Banks: Concept, Objectives, and Functions of Various All India
Development Banks. Operational and Promotional Activities of all India Development Banks
Development Banks in Industrial Financing in India
Unit – V
State Level Development Banks: Objective, Functions and Role of Role of State Level
Banks, State Financial Corporation- Operational performance of State Financial Corporation –
TIIC- THADC.

Text and Reference Book (Latest Revised Edition Only)

1. Bhole.L.M.”Financial Markets And Institutions” Tata Mcgraw Hill Publishing Company,
New Delhi.
2. Khan, M.Y. Indian Financial Syste; Theory And Practice” Vikas Publishing House, New
Delhi.
3. Chandra, Prasanna, Financial Management: Theory And Practice Tata Megraw Hill, New
Delhi.
4. Sharma, G.L And Singh, Y.P. (Eds.) Contemporary Issues In Finance And Taxation Academic
Foundation Delhi.
5. Kapila, Raj And Kapila Uma, Banking And Financial Sector Reforms In India” Academic
Foundation Delhi.
6. Saundaers, Antony, “Financial Institution Management A Moddern Perspective: Irwin
Publication, Mcgraw Hill Co., New York
7. Madura, Jeff, “Financial Markets And Institutions” West Publishing Co., New York.
8. Srivastava, R.M., Management Of India Financial Institutions” Himalaya Publishing House,
Mumbai.
 INDIAN FINANCIAL SYTEM

CHAPTER CONTENTS PAGE NO.

1 FINANCIAL SYTEM: Introduction – Objectives – Meaning and 1-
Definitions of Financial System – structure of Indian Financial System
– Functions – Role of Financial System in Economic Development –
Growth and Development of Indian Financial System – weakness of
Indian Financial System.

2 INDIAN MONEY MARKET: Introduction – objectives – Meaning

and Definition of Money Market – Characteristics of Money Market –
Function – Importance – Characteristics of a Developed Money
Market – Components of Money Market – Money Market
Instruments– Players in the Indian Money Market – Players in the
Indian Money Market – Recent Developments in the Indian Money
Market – Discount and Finance House of India – Defects of the Indian
Money Market
3 INDIAN CAPITAL MARKET : Introduction-Objectives-
Meaning and Definitions of capital Market – Characteristics and
Function of Capital Market – Significance – Components of Capital
Market – players in the capital Market – New Financial Instruments in
Capital Market – Functions of stock Exchange – Listing of Securities –
Classification of Listed Securities – Trading Mechanisms of Stock
Exchange - Difference between primary market and Secondary market
Defects of Capital Market in India.
4 RESERVE BANK OF INDIA : Introduction – Objectives – History
and Origin of Central Banking System – Organization, Management
and Structure of RBI – Autonomy of central Banking System -
Evolving Relationship with Government and RBI – FUNCTIONS OF
RBI – Concepts and Process of Credit creation – Methods and
Limitations of Credit Creation – Methods and Limitations of Credit
creation – Objectives of credit control – Methods of credit control
employed by RBI – Objectives and Framework of Monetary Policy.
5 COMMERCIAL BANKS – Introduction – Objectives – Functions of
commercial Banks – Classification – Management and Investment
Policies of Commercial Banks – Recent Trends in commercial
Banking – Banking Innovations.
6 ALL INDIA DEVELOPMENT BANKS: Concept – Objectives and
Functions of Various All India Development Banks- Operational and
Promotional Activities of all India Development Banks: IDBI – IFCI –
ICICI - –IIBI -Development Banks in Industrial Financing in India.
7 STATE LEVEL DEVELOPMENT BANKS: Objectives - Functions
and Role of Role of State Level Banks - State Financial Corporation-
Operational performance of State Financial Corporation : TIIC- SFC –
SIDBI- TCO- SIDCO.
 B.Com (BANK MANAGEMENT)
MAJOR VII
INDIAN FINANCIAL SYSTEM

BHARATHIDASAN UNIVERSITY
CENTRE FOR DISTANCE EDUCATION
TIRUCHIRAPPALI – 620 024.

LESSON WRITER:

Dr. B.ARTHI,

Assistant Professor,

PG & Research Department of Commerce,

Urumu Dhanalakshmi College,

Trichy – 620 019.