The Fundamentals of Banking - Banking Simplified

This wonderful online course is all about Banking - Structures and Functions of a Bank. You will learn in detail about Statutory Ratios, Roles of Reserve Bank of India, Non Banking Financial Companies etc.

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 2h 44m | 20 Videos | 89476 Views |   All Levels

Banking Training Essentials

The course on “Basics of Banking” deals with early history of commerce and trade starting with barter system, which is later culminated into the present day banking. It can be seen that an early version of banking system existed in India, as back as 300 B.C. The early writings of the travelers during the reign of Gupta and Mughal empire, give testimony to this fact.

They had mentioned about “rnapatra” , “adesha” an equivalent instrument to the present day cheque. The rich persons of those times, especially zamindars acted like money lenders and they were using such type of instruments including Bill of Exchange, which were freely traded between the traders.

By the opening of three Presidency banks in the early 19th century, at India’s three locations, true banking activities started. Till the set up of the RBI, these three banks dominated entire banking activities, including issue of notes. There were no regulator to supervise their activities. With the establishment of RBI, a lot of things in the banking Training system got improved and RBI encouraged financial entities to start new banks, although a few existed.

After the opening of State Bank of India, banking Training activities flourished and it became the first big bank, after merger of Imperial bank, which was by then a merged entity of all Presidency banks.

The post-independence era was a golden period for the banking industry. The first nationalization of banks in 1969, gave an impetus to open their branches at far-flung areas, where there were no banks, but only money lenders occupied the banking space, who used to exploit the poor and downtrodden people by charging high interest rates ; and also forcing them to pledge / mortgage their belongings and properties. They could hardly repay the loan. India saw tremendous change in the banking Training field after the second nationalization of banks, which have helped fresh industries to bloom, which were otherwise having short of funds.

The Role of RBI, its functions, rights etc. were discussed in detail. As a regulator and supervisor for all financial institutions in the country, it manages the country’s economic activity and stability in the domestic and international market. Under the Central Board, RBI Governor along with the Dy. Governors, Directors and other teams formulate Monetary Policy.

Other regulatory and supervisory activities are carried out by RBI. Different departments under RBI manage their allocated works effectively so as to maintain the equilibrium of the banking and financial systems in the country. It’s sole authority to issue currency notes and its maintenance can not be considered as insignificant. The authority to issue of licence to start any banking activity and its cancellation, if any, at a later stage lies with RBI. It is vested with powers to inspect and audit banks any time and to take appropriate action to streamline their activities.

Definition and regulation of banks as clarified by RBI and relevant acts issued and amended from time to time, to suit the changing scenario of banking are clarified in detail. By using the different and appropriate monetary tools, RBI maintain the balance of money supply. Timely revision of CRR and SLR by RBI manages liquidity of funds in the market so as to curb inflation and accelerate economic growth.

RBI is also the Govt.’s bank, banker’s bank and manages the country’s foreign exchange reserves to maintain stability of the currency as also to absorb any economic shock either from inside or outside the country. Payment and Settlement System of India is effectively controlled and managed by RBI. They monitor country’s balance of payment situation and takes necessary measures to maintain the right balance. The role played by RBI with regard to loans and advances by Commercial banks is notable. They control banks by timely monitoring and taking proactive steps to bring them into line within the stipulated rules.

A detailed description on Non Banking Financial Companies and their activities, monitoring thereof by the RBI gives a clear picture to the readers. The relationship between a banker and customer depending upon the various functions, as per the Contract 1872, is also clarified.

Duties and rights of banks are also critically examined. The typical functions of a bank and how it creates credit out of its resources, are shown by illustration, by which readers can easily understand and remember.

Finally, how banks assist in the overall economic growth of country by providing timely financial assistance to the needy sector, having the right approach, without any bias and reaching to the customer in times of crisis / need are narrated in a lucid manner.

What are the Requirements for Banking Training?

• Knowledge of financial institutions
• Basic idea about banking sector
• A Computer with internet
• Interest and knowledge on Banking Sector is an added advantage

What am I going to get from this Banking Training?

• Over 20 lectures and 2.5 hours of content!
• Course will be helpful for the readers to appear for competitive examinations of banking
• It will be helpful for the one who are interested in depth study of banking & financial sector
• This course will also guide the learners to understand the role of banking sector in the economic development of a country

Target Audience for Banking Training:

• Students of Banking and Economics
• Professionals in the Banking Sector and other financial organizations, to have first hand information on Banking, who have just entered into the banking sector, from any other streams.
• Anyone who wants to learn about the Banking and its history.