Unit 1 Financial Institutions

Course: Accounts & Financial Management (20UCS607N)
Third Year - B. Tech (CSE)
Prof. S B Pawar
spawar1@mgmu.ac.in
Course Details
Course Title: Accounts and Financial Management
Contact hours: 2 Lectures/Week Credits: 2
CA: 20 marks MSE: 20 marks
ESE: 60 marks ESE Duration: 3 Hours
Course Contents
Unit 1: Financial Institutions – Indian Banking system, Types of banks, Working of banks
Unit 2: Principles of Accounting – Accounting terms, Concepts & Conventions, Journalization
Unit 3: Final accounts & Bank Reconciliation – Balance sheet, P&L Statement
Unit 4: Ratio Analysis – Liquidity ratio, Leverage ratio, Profitability ratio etc.
Unit 5: Cost Accounting – Cost, classification of cost, Break even chart
Unit 6: Budget and Budgetary Control – Definitions, Objectives and Types of budgets
Unit 1 Financial Institutions
A. Is there any difference between:
- Industry and Company?
- Management and Administration
- Finance and Accounting
B. How to identify that certain company has a efficient management?
C. Which was the most significant economic event/thing occurred in last 10/25 years?
D. Who can be regarded as most effective finance minister of India?

Unit 1 Financial Institutions
Evolution of Indian Banking System:
Base for the economic development of the country
Major changes in banking system & management over the years due to:
- Advancement in technology,
- Change in the needs of people
- Globalization
- Industrialization
- Change in government policies
Evolution of Indian Banking System
Four phases of Indian Banking System:
- Pre-independence phase (1770 to 1947)
- Post-independence phase (1947 to 1969)
- Nationalization phase (1969 to 1991)
- Banking sector reform phase (1991 to till date)
Pre-independence phase : (1770 to 1947)
Which was the first bank established in India?
The first bank of India was the “Bank of Hindustan”, established in 1770 and located
in the then Indian capital, Calcutta. However, this bank failed to work and ceased
operations in 1832.
During the Pre Independence period over 600 banks had been registered in the
country, but only a few managed to survive.
Following the path of Bank of Hindustan, various other banks were established in
India. They were:
The General Bank of India (1786-1791) Oudh Commercial Bank (1881-1958)
Bank of Bengal (1809) Bank of Bombay (1840)
Bank of Madras (1843)
During the British rule in India, The East India Company had established three banks: -
- Bank of Bengal,
- Bank of Bombay and
- Bank of Madras
These banks were called as Presidential Banks.
These three banks were later merged into one single bank in 1921, which was called
the “Imperial Bank of India.”
The Imperial Bank of India was later nationalized in 1955 and was named The State
Bank of India, which is currently the largest Public sector Bank.
If we talk of the reasons as to why many major banks failed to survive during the pre-
independence period, the following conclusions can be drawn:
 Account holders had become fraud-prone
 Lack of machines and technology
 Human errors & time-consuming
 Fewer facilities
 Lack of proper management skills
Following the Pre-Independence period was the post-independence period, which

observed some significant changes in the banking industry scenario and has till date
developed a lot.
Post-independence phase : (1947 to 1969)
At the time when India got independence, all the major banks of the country were led
privately which was a cause of concern as the people belonging to rural areas were still
dependent on money lenders for financial assistance.
With an aim to solve this problem, the then Government decided to nationalize the
Banks. These banks were nationalized under the Banking Regulation Act, 1949.
Whereas, the Reserve Bank of India was nationalized in 1949.
Nationalization phase : (1969 to 1991)
14 banks were nationalized between the time duration of 1969 to 1991. These were
the banks whose national deposits were more than 50 crores.
There were various reasons for Government to nationalize the banks. Given below are
few of it:
 Increase in funds and thereby improving the economic condition of the country
 Increase in efficiency
 Boost the rural and agricultural sector of the country
 Open up a major employment opportunity for the people
 Use profit gained by Banks for the betterment of the people
Nationalization Phase : (1969 to 1991)
Given below is the list of these 14 Banks nationalized in 1969:
1. Allahabad Bank 2. Bank of India
3. Bank of Baroda 4. Bank of Maharashtra
5. Central Bank of India 6. Canara Bank
7. Dena Bank 8. Indian Overseas Bank
9. Indian Bank 10. Punjab National Bank
11. Syndicate Bank 12. Union Bank of India
13. United Bank 14. UCO Bank
Nationalization Phase : (1969 to 1991)
In the year 1980, another 6 banks were nationalized, taking the number to 20 banks.
These banks included:
1. Andhra Bank
2. Corporation Bank
3. New Bank of India
4. Oriental Bank of Comm.
5. Punjab & Sind Bank
6. Vijaya Bank
Banking Sector Reform Phase : (1991 to till date)
To provide stability and profitability to Nationalized Public sector Banks, Government
set up a committee to manage the various reforms in the Indian banking industry.
The biggest development was the introduction of Private sector banks in India. RBI
gave license to 10 Private sector banks to establish themselves in the country. These
banks included:
1. Global Trust Bank 2. ICICI Bank
3. HDFC Bank 4. Axis Bank
5. Bank of Punjab 6. IndusInd Bank
7. Centurion Bank 8. IDBI Bank
9. Times Bank 10. Development Credit Bank
Banking Sector Reform Phase : (1991 to till date)
The other measures taken include:
 Setting up of branches of the various Foreign Banks in India
 No more nationalization of Banks could be done
 RBI and Government would treat both public and private sector banks equally
 Any Foreign Bank could start joint ventures with Indian Banks
 Payments banks introduced with development in field of banking & technology
 Small Finance Banks were allowed to set their branches across India
 A major part of Indian banking moved online with internet banking & apps
Thus, the history of banking in India shows that with time and the needs of people,
major developments have been brought about in the banking sector with an aim to
prosper it.
Reserve Bank of India (RBI)
Working of RBI
Reserve Bank of India, the India’s central bank, began
operations on April 01, 1935.
RBI was established with the objective:

 To ensure monetary stability
 To operate currency & credit system of country
The Reserve Bank's affairs are governed by a

central board of directors.
Board is appointed by Government of India in

accordance with the Reserve Bank of India Act.
Fig 1.1: Organization Structure of RBI

Reserve Bank of India (RBI)
Table 1.1: Current Central board of Directors
Appointed / nominated for:
A period of four years
Official Directors (Full-time):

Governor and not more than
four Deputy Governors
Non-Official Directors
(Nominated by Government):
Ten Directors from various
Role of directors: fields and two government
1. To advise Central Board on local matters and to Official
represent territorial & economic interests of local
cooperative & indigenous banks; Others: Four Directors
One each from four local
2. To perform such other functions as delegated by boards
Central Board from time to time.
Functions of Reserve Bank of India (RBI)
Traditional Functions of RBI:
Basically these functions are in line 1.Issue of
Currency
with the objectives with which the Notes
bank is set up.
6.
2. Banker to
Supervisory
It includes fundamental functions of other Banks
Function
the Central Bank.
Traditional
Functions
5. Credit 3. Banker to
Control the
Function Government
4. Exchange
Rate
Management
Fig 1.2: Traditional Functions

1. Issue of Currency Notes
Sole right or authority or monopoly of issuing currency notes
Currency notes are legal tender issued by the RBI. Currently it is in

denominations of Rs. 5, 10, 20, 50, 100, 500, & 2,000.
The RBI has powers not only to issue & withdraw but even to exchange these
currency notes for other denominations.
It issues these notes against the security of gold bullion, foreign securities,
rupee coins, exchange bills and promissory notes and government of India
bonds.
2. Banker to other Banks
As apex monitory institution has obligatory powers to guide, help & direct other
commercial banks in country.
Control volumes of banks reserves & allow banks to create credit in that
proportion. Every commercial bank has to maintain a part of their reserves with
the RBI.
Similarly in need or in urgency these banks approach the RBI for fund. Thus it
is called as the lender of the last resort.
3. Banker to the Government
The RBI being the apex monitory body has to work as an agent of the central
and state governments.
It performs various banking function such as to accept deposits, taxes and

make payments on behalf of the government. It works as a representative of
the government even at the international level.
It maintains government accounts, provides financial advice to the government.

It manages government public debts and maintains foreign exchange reserves
on behalf of the government.
It provides overdraft facility to the government when it faces financial crunch.

4. Exchange Rate Management
It is an essential function of the RBI in order to maintain stability in the external
value of rupee, it has to prepare domestic policies in that direction.
Also it needs to prepare & implement foreign exchange rate policy which will
help in attaining exchange rate stability.
To maintain the exchange rate stability it has to bring demand & supply of
foreign currency (U.S Dollar) close to each other.
5. Credit Control Function
Commercial bank in the country creates credit according to the demand in the
economy. But if this credit creation is unchecked or unregulated then it leads
the economy into inflationary cycles.
On the other credit creation is below the required limit then it harms the growth
of the economy. As a central bank of the nation the RBI has to look for growth
with price stability.
Thus it regulates the credit creation capacity of commercial banks by using

various credit control tools.
Developmental Functions of RBI:
1.Development
Along with routine traditional of the Financial
functions, central banks especially System
in developing country like India have 6. Promotion

2.
of Export
to perform numerous functions. through
Development
of Agriculture
Refinance
Some of the major development Developmental
functions of RBI are:
Functions
3. Provision of
5. Collection of
Industrial
Data
Finance
4. Provisions of
Training
Fig 1.3: Developmental Functions

1 Development of the Financial System:
Financial system comprises the financial institutions, financial markets & financial
instruments.
The sound & efficient financial system is a pre-condition of rapid economic

development of the nation.
The RBI has encouraged establishment of main banking & non-banking institutions to
cater to the credit requirements of diverse sectors of the economy.
2 Development of Agriculture:
In an agrarian economy like ours, the RBI has to provide special attention for the credit
need of agriculture and allied activities.
It has successfully rendered service in this direction by increasing the flow of credit to
this sector.
It has earlier the Agriculture Refinance and Development Corporation (ARDC) to look
after the credit, National Bank for Agriculture and Rural Development (NABARD) and
Regional Rural Banks (RRBs).
3 Provision of Industrial Finance:
Rapid industrial growth is key to faster economic development.
In this regard, the adequate & timely availability of credit to small, medium and large
industry is very significant.
RBI has always been instrumental in setting up special financial institutions such as
ICICI Ltd. IDBI, SIDBI and EXIM BANK etc.
4 Provision of training:
The RBI has always tried to provide essential training to the staff of the banking
industry. The RBI has set up the bankers' training colleges at several places.
Few to mention are:

 National Institute of Bank Management (NIBM),
 Bankers Staff College (BSC)
 College of Agriculture Banking (CAB)
5 Collection of Data:
Being the apex monetary authority of the country, the RBI collects process and
disseminates statistical data on several topics.
It includes interest rate, inflation, savings and investments etc. This data proves to be
quite useful for researchers & policy makers.
6 Promotion of Export through Refinance:
RBI always tries to encourage the facilities for providing finance for foreign trade
especially exports from India.
The Export-Import Bank of India (EXIM Bank India) and the Export Credit Guarantee
Corporation of India (ECGC) are supported by refinancing their lending for export
purpose.
Inflation
In India, generally, two kinds of indices are used to measure inflation
1. Wholesale Price Index (WPI) and
2. Consumer Price Index (CPI).
What is Wholesale Price Index (WPI)?

An index used by the Reserve Bank of India till 2014 to make its monetary policy, WPI,
as the name suggests, measures the prices at wholesale level. WPI is the price of a
representative basket of wholesale goods. It takes a basket of 697 items into account
and shows the combined prices.
The basket used in WPI is composed of three groups:
1. Manufactured Products (65 percent of total weight),
2. Primary Articles like food, etc. (20.1 percent), and
3. Fuel and Power (14.9 percent).
The WPI is calculated by the Ministry of Commerce and Industry.

Inflation
What is Consumer Price Index (CPI)?
CPI, based on 260 commodities including certain services, measures the change in
prices at the retail level.
Prices of sample goods and services are collected periodically (usually every month) by
the Ministry of Statistics and Programme Implementation, and the change, if any, is
noted.
Monetary Policy
Monetary Policy of India:
RBI is entrusted with responsibility of conducting monetary policy with primary
objective of maintaining price stability while keeping in mind objective of growth.
In May 2016, the RBI Act 1934 was amended to provide a statutory basis for the
implementation of the flexible inflation targeting framework.
Inflation Target: Central Government with RBI, determines inflation target in terms of
Consumer Price Index (CPI), once in five years & notifies it in Official Gazette.
Accordingly on August 2016, 4% Consumer Price Index (CPI) inflation as target for
period from August 2016 to March 2021 with upper tolerance limit of 6 per cent &
lower tolerance limit of 2 per cent.
On March 31, 2021, the Central Government retained the inflation target and the
tolerance band for the next 5 year period – April 2021 to March 2026.
Objectives of Monetary Policy
Objectives of the Monetary Policy of India:
1. Price stability
2. Controlled expansion of bank credit
3. Promotion of exports and food procurement operations
4. Equitable and desired distribution of credit
5. Reducing the rigidity
Monetary Policy
Fig 1.4: Instruments of Monetary Policy

Instruments of Monetary Policy
Quantitative Measures:
Quantitative measures refer to those measures that affect the variables, which in turn
affect the overall money supply in the economy.
Instruments of quantitative measures:
1. Bank rate − The rate at which central bank provides loan to commercial banks is
called bank rate. This instrument is a key at hands of RBI to control the money supply.
Increase in bank rate will make loans more expensive for commercial banks; thereby,
pressurizing the banks to increase the rate of lending. The public capacity to take
credit will gradually fall leading to the fall in the volume of credit demanded.
The reverse happens in case of a decrease in the bank rate. The increased lending
capacity of banks as well as increased public demand for credit will automatically lead
to a rise in the volume of credit.
2. Cash Reserve Ratio (CRR)
It refers to the minimum amount of funds that a commercial bank has to maintain
with the Reserve Bank of India, in the form of deposits.
For example, suppose the total assets of a bank are worth Rs.200 crores and the
minimum cash reserve ratio is 10%.
Then the amount that the commercial bank has to maintain with RBI is Rs.20 crores. If
this ratio rises to 20%, then the reserve with RBI increases to Rs.40 crores. Thus, less
money will be left with the commercial bank for lending.
This will eventually lead to considerable decrease in the money supply. On the
contrary, a fall in CRR will lead to an increase in the money supply.
3. Statuary Liquidity Ratio (SLR)
SLR is concerned with maintaining the minimum reserve of assets with RBI, whereas
the cash reserve ratio is concerned with maintaining cash balance (reserve) with RBI.
So, SLR is defined as the minimum percentage of assets to be maintained in the form
of either fixed or liquid assets with RBI.
The flow of credit is reduced by increasing this liquidity ratio and vice-versa.
In the previous example, this can be understood as rise in SLR will restrict the banks to
pump money in the economy, thereby contributing towards decrease in money supply.
The reverse case happens if there is a fall in SLR, as it increases the money supply in
the economy.
4. Open Market Operations (OMO)
Open Market operations refer to the buying and selling of securities in an open
market, in order to affect the money supply in the economy.
The selling of securities by RBI will wipe out the extra cash balance from the economy,
thereby limiting the money supply.
In the case of buying securities by RBI, additional money is pumped into the economy
stimulating the money supply.
Quantitative Measures:
The measures that affect the credit qualitatively are
1. Marginal Requirements
The commercial banks’ function to grant loan rests upon the value of security being
mortgaged. So, the banks keep a margin, which is the difference between the market
value of security and the loan value.
For example, a commercial bank grants loan of Rs.80,000 against security of

Rs.1,00,000. So, the margin is calculated as 1,00,000 − 80,000 = 20,000.
When central bank decides to restrict the flow of money, then margin requirement of
loan is raised and vice-versa in the case of expansionary credit policy.
2. Selective Credit Control (SCC’s):
An instrument of monetary policy that affects the flow of credit to particular sectors
positively and negatively is known as selective credit control.
The positive aspect is concerned with the increased flow of credit to the priority
sectors. However, the negative aspect is concerned with the measures to restrict credit
to a particular sector.
3. Moral Suasions:
A persuasion technique followed by the central bank to pressurize the commercial
banks to abide by the monetary policy is termed as moral suasion.
This involves meetings, seminars, speeches and discussions, which explains the
present economic scenario and thereby persuading the commercial banks to adapt the
changes needed. In other words, this is an unofficial monetary policy that exercises the
power of talk.
A. Repo Rate:
Repo rate is the rate of interest which is paid by the commercial banks to the Reserve
Bank of India when the RBI lends money to the commercial banks.
Technical meaning of ‘Repo’ is ‘Re-Purchasing Option’ or ‘Repurchase Agreement’.
Under this, both Central Bank & commercial banks sign an agreement whereby
commercial banks consent to repurchase the securities on a specified date at a
predetermined price in the future which is usually higher than the initial price.
Any fluctuation in repo rate has a direct impact on economy of a nation.
When inflation is high, then RBI increases repo rate which automatically reduces
money available with commercial banks as they have to pay a higher interest to
Reserve Bank of India.
This reduces their capacity to lend to their borrowers which automatically reduces the
level of spending, thereby reducing the liquidity of money in the economy.
B. Reverse Repo Rate:
It is opposite of repo rate. It is interest RBI pays to commercial banks when they store
excess cash reserves. This is used by RBI to control the flow of cash in the economy.
This allows the RBI to 'mop up' excess cash by making it more profitable for
commercial banks to store cash reserves with the central bank.
When the level of inflation is high, which means that the liquidity of money is also high
in that economy, then the Reserve Bank of India increases the reverse repo rate.
This means that the commercial banks get a higher interest rate to deposit their
money in the RBI which automatically reduces the amount available with them to lend
to their customers.
This reduces the level of spending in economy & thus reduces the liquidity of money.
Indian Banking System
The banking industry handles finances in a country including cash and credit. Banks are
the institutional bodies that accept deposits and grant credit to entities and play a
major role in maintaining the economic stature of a country.
The bank takes deposit at a much lower rate from the public called the deposit rate
and lends money at a much higher rate called the lending rate.
In India, the Reserve Bank of India (RBI) is the apex banking institution that regulates
the monetary policy in the country.
Importance of Indian Banking System
Functioning
as an
Imparting Intermediary
Influence on
Liquidity to
Rates of
Non- liquid
Interest
Assets
Helping Promotion
Economic of the habit
Development of thrift
Importance
of Banking
System
Channelization Equitable
of Savings & Distribution
Investment of Funds
Encouragement
Mobilization
to trade &
of Capital Industry
Creating &
Dealing in
Bank
Money
Scheduled banks Non-scheduled banks
Bank classification in India
Small
Commercial Cooperative Development Payments
Finance
Banks Banks Banks Banks
Banks
Public Sector Rural Coop. IDBI
Private Sector Urban Coop. SIDBI
Foreign Banks EXIM
RRB NABARD
Public Sector banks (PSB):
A Public Sector bank is one in which, the Government of India holds a majority stake. It
is as good as the government running the bank.
Since the public decide on who runs the government, these banks that are
fully/partially owned by the government are called public sector banks.
Public Sector bank that goes public means that issues its share to general public. The
shares of these banks are listed on stock exchanges. It also has a greater share of
government (more than 50%) so that main motto of social welfare other than
maximizing Profit remains.
There are total of 12 PSBs alongside 1 government owned Payments Bank in India.
Features of public sector banks:
1. State Ownership: Public undertakings owned by Government or public authority
2. Government Control
3. Service Motive
4. State Financing
5. Bureaucratic Management
6. Public Accountability
Private Sector Banks:
Banks where greater parts of stake or equity are held by private shareholders & not by
government are private banks. Banking in India has been dominated by public sector
banks since 1969 when all major banks were nationalized by Indian government.
However since liberalisation in government banking policy in 1990s, old & new private
sector banks have re-emerged.
They have grown faster & bigger over the two decades since liberalisation using latest
technology, providing contemporary innovations & monetary tools & techniques.
Private banks are split into two groups by financial regulators in India, old and new.
Old private sector banks existed prior to nationalisation & kept their independence
because they were either too small or specialist to be included in nationalization.
New private sector banks are those that have gained their banking license since the
liberalisation in the 1990s.
Features of private sector banks:
1. Private ownership and control 2. Profit motive
3. No state participation 4. Independent Management
5. Wide specialized banking services 6. Use modern technology
7. Emphasis on service 8. Maintain net worth of Rs. 300 Crores
9. Exempted from priority sector lending norms for first 3 years
10. Shareholding in excess of 10% by single entity would require prior approval of RBI.
11. Other banks would not be allowed to fresh stake of ≥ 5% of equity capital of Bank.
12. RBI allow higher shareholding for restructuring/consolidation in banking sector.
13. Foreign investment in private bank from all sources (FII, FDI, and NRI) cannot
exceed 74% of paid up capital.
Foreign banks:
A foreign bank is a type of International Bank that is obligated to follow the regulations
of both home & host countries. Foreign banks are defined as banks from a foreign
country working in India through branches.
RBI has provided rules & guidelines for a foreign bank to establish & operate in India.
Functions of Foreign Banks:

1. Foreign banks performs all major functions of commercial banks, viz. acceptance of
deposits from public, lending, clearing of cheques, remittance of money etc.
2. Foreign banks use state of the art technology & they offer variety of services/
products to customers, viz. Credit Cards (Credit Banking), Debit Cards, Net Banking,
Telephone Banking, Core Banking Services etc.
3. The foreign banks perform major functions of financing the foreign trade of country.
Regional Rural Banks:
Regional Rural Banks are the Scheduled Commercial banks in India conducting banking
activities for the rural regions at the state level.
There were established with an objective of providing easily accessible banking and
credit services to the rural population and mobilising financial resources from the
urban areas to rural districts of India. Hence, RRBs form a vital component of the
financial service sector in India.
RRBs operate at the district level in the states, and they may cover multiple districts
within that state.
Just like any other commercial banks, the organisation of Regional Rural Bank
comprises of a Board of Directors, Chairperson, Managing Director, Manager, Regional
Managers, and the assistant’s staff.
Sponsorship of Regional Rural Banks:
Each Regional Rural Bank is sponsored by a Public Sector Bank. It is duty of a sponsor
bank to aid and assist the RRB by:
a) Subscribing to the share capital.
b) Training personnel of Regional Rural Bank.
c) Providing managerial & financial assistance to RRB.
A sponsor bank provides managerial staff & financial assistance during the first 5 years
of its functioning. The central government may, either on its own motion or on the
recommendations of NABARD extend such period further.
The authorized capital of Regional Rural Banks is Rs. 5 crores which is contributed by
Central Government, State Government and the Sponsor Bank in ration of 50:15:35.
Evolution of Regional Rural Banks:
Narasimhan Committee on Rural Credit under rule of PM Indira Gandhi made
recommendations for formation of RRBs, which would be beneficial for rural
population as compared to commercial banks.
Ordinance for establishing of RRBs was passed on September 26, 1975, this being the
date of establishment of RRBs. Regional Rural Banks Act (RRB Act) was passed in 1976.
Five RRBs were first established on occasion of Gandhi Jayanti, 1975. Later, many RRBs
were established by the Government of India and respective state governments.
Functions of RRBs to provide financial assistance to farmers, MSMEs, local craftsmen &
artisans, agriculture, industries, trade, commerce, & their economic development.
25 RRBs were established within a year from the passing of this Act. There are
currently 43 Regional Rural Banks in India.
Problems for RRB:
1. Running into losses
2. Slow progress
3. Limited scope of investment
4. Delay in decision making
5. Lack of co-ordination
6. Difficulties in deposit mobilization
7. Lack of training facilities
8. Poor recovery rate
9. Capital inadequacy
THANKS

Unit 1 Financial Institutions

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Unit 1 Financial Institutions

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Course: Accounts & Financial Management (20UCS607N)

Third Year - B. Tech (CSE)

B. How to identify that certain company has a efficient management?

D. Who can be regarded as most effective finance minister of India?

Following the Pre-Independence period was the post-independence period, which

RBI was established with the objective:

The Reserve Bank's affairs are governed by a

Board is appointed by Government of India in

Fig 1.1: Organization Structure of RBI

Official Directors (Full-time):

Fig 1.2: Traditional Functions

Currency notes are legal tender issued by the RBI. Currently it is in

It performs various banking function such as to accept deposits, taxes and

It maintains government accounts, provides financial advice to the government.

It provides overdraft facility to the government when it faces financial crunch.

Thus it regulates the credit creation capacity of commercial banks by using

in developing country like India have 6. Promotion

Fig 1.3: Developmental Functions

The sound & efficient financial system is a pre-condition of rapid economic

Few to mention are:

What is Wholesale Price Index (WPI)?

The WPI is calculated by the Ministry of Commerce and Industry.

Fig 1.4: Instruments of Monetary Policy

For example, a commercial bank grants loan of Rs.80,000 against security of

Public Sector Rural Coop. IDBI

Private Sector Urban Coop. SIDBI

Foreign Banks EXIM

Functions of Foreign Banks:

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