Financial

Institutions in
India
By
Pavan Mandowara

Meaning & Definition

Provides financial services to its clients,

Mostly act as a financial Intermediatories,
Convert the savings into investments,
Transfer funds from investors to
companies who need funds,
Main and biggest supplier of finance,
Controlled & supervised by rules &
regulations made by Govt. Authorities.

Financial Institutions in
India

Central Bank
Commercial Banks
Financial Authorities
Specialized Financial Institutions
Insurance Companies
Credit Rating Agencies

Central Bank (RBI)

To regulate the issue of Bank Notes and

keeping of reserves,
with a view to securing monetary stability in
India and,
generally to operate the currency and credit
system of the country to its advantage."

Current Functions &

Focus of RBI

Supervision of financial institutions

Consolidated accounting
Legal issues in bank frauds
Divergence in assessments of nonperforming assets and
Supervisory rating model for banks.
Manager of Foreign Exchange,
Issuer of Currency
Annual Publications

Main Points
Repo Rates: - is the rate at
which banks borrows money
from RBI. 8%
Reverse Repo Rates: - is
the rate at which RBI borrows
money from banks. 7%

 CRR: - Cash Reserve Ratio, is the

amount of funds the bank have to
keep with RBI. 6%
SLR: - Statutory Liquidity Ratio, is
the amount need to be maintain in
cash or gold or govt. securities.
24%
Bank Rate: - 6%

Commercial Banks

 Processing of payments by way of telegraphic

transfer, internet banking, or other means
Issuing bank drafts & bank cheques,
Accepting money on term deposits,
Lending money by overdraft, instalment loan, or
other means
Providing documentary and standby letter of credit,
guarantees, performance bonds, securities
underwriting commitments and other forms of off
balance sheet exposures
Safekeeping of documents and other items in safe
deposit boxes,
sale, distribution or brokerage.

Public Sector Banks

Private Sector Banks

Foreign Banks in India

Financial Regulatory
SEBI: - Securities Exchange
Board of India
IRDA: - Insurance Regulatory
Development Authority

Specializes Financial
Institutions
Export Credit Guarantee Corporation of India
Ltd.
EXIM Bank
ICICI: - Industrial Credit & Investment
Corporation of India
IDBI: - Industrial Development Bank of India
IFCI: - Industrial Finance Corporation of India
UTI: - Unit Trust of India
NABARD: - National Agriculture Bank For Rural
Development
SIDBI: - Small Industrial Development Bank of
India

Insurance Companies
GIC: - General Insurance Corporation
of India
LIC: - Life Insurance Corporation
New India Assurance Company
United India Insurance Company

Credit Rating Agencies

CRISIL: - Credit Rating Information
Services of India Ltd.
CARE: - Credit Analysis & Research
Ltd.
ICRA: - Investment Information &
Credit Rating Agency of India
DCR India: - Duff & Phelps Credit
Rating India Pvt. Ltd.

CONCLUSION

Central Bank
Commercial Banks
Financial Authorities
Specialized Financial Institutions
Insurance Companies
Credit Rating Agencies

THANK YOU