Banking and Finance by University of Calicut Pdf
Download Banking and Finance by University of Calicut Pdf book free online – from Banking and Finance by University of Calicut Pdf book; This book covers the following topics: Commercial Banking, Origin and growth of banks, Functions of Commercial banks, Role of Commercial Banks in Economic Development, Reserve Bank of India (RBI), Management, Structure and Functions of RBI, Money Market, Constituents of Money market, Features of Indian Money market, Capital Market,
Commercial banks are the oldest banking institutions in the organised sector. They constitute the predominant segment of the banking system in India. They cater to the needs of trade, commerce, industries, agriculture, small business etc. through its wide network of branches. The commercial banks form the most important part of the money market. They make advances, grant overdraft and discount bills of exchange to the business community. They also borrow from central
bank directly or indirectly.
Banks promote capital formation in all these stages. They promote habit of savings by offering attractive rate of return for savers. Banks are maintaining different types of accounts to mobilise savings aiming different types of customers. They make widespread arrangements to collect savings by opening branches even in remote villages. Moreover, banks offer their resources for productive activities only.
Financial system is a system that allows the transfer of money between savers and borrowers. It is a set of institutions, instruments and markets which encourage savings and channelise them for productive purposes. It consist of specialised and non specialised financial institutions, organised and unorganised financial markets, financial services and instruments which facilitate transfer of financial surplus of the economy.
Capital market plays an important role in mobilising resources, and diverting them in productive channels. In this way, it facilitates and promotes the process of economic growth in the country. It ensures better coordination between the flow of savings and the flow of investment that leads to capital formation and directs the flow of savings into most profitable channels.