Banking & General Financial Awareness

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The first bank of India is Bank of Hindustan established in 1770. This bank was established at Calcutta under European management. It was liquidated in 1830-32.

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The Paper Currency Act was enacted in 1861 by the British Government of India. The act gave the government the sole right to create and issue paper currency. The act was effective on March 1, 1862. The Paper Currency Department was allowed to issue notes for 10 rupees and up. The act divested banks of the right to issue notes. However, the Presidency Banks were given the right to manage the note issues of the Government of India. The Banks of Bengal, Madras, and Bombay were also able to enter into arrangements with the government to manage the issue, payment, and exchange of government currency notes.

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There are two types of Credit Reporting Institutions. These are Credit Bureau and Credit Registry. Credit Registries tend to be public entities. They are usually managed by central banks or bank supervision agencies. In contrast, Credit Bureaus tend to be privately owned and privately operated companies.

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India currently has the fourth largest foreign exchange reserves in the world, Minister of State for Finance Pankaj Chaudhary told Lok Sabha . As on November 19, 2021, he said the forex reserve stood at USD 640.4 billion.

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The underwriter must get a certificate of registration under the Securities and Exchanges Board of India (Underwriters) Regulations, 1993.These regulations have been further amended by the Securities and Exchange Board of India (Underwriters) (Amendment) Regulations, 2006.

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Financial Accounting Standards Board is a private, non-profit organization standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles within the United States in the public’s interest.

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Reserve Bank of India Act, 1934 was enacted on 6 March, 1934 to constitute the Reserve Bank of India and commended from April 1, 1935. It provides for laws for the supervision of banking firms in India and other related matters.

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Payment banks can take deposits up to Rs. 2,00,000. It can accept demand deposits in the form of savings and current accounts. The money received as deposits can be invested in secure government securities only in the form of Statutory Liquidity Ratio (SLR)

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Board for Payment and Settlement Systems is chaired by the Governor of RBI and its members are all the four Deputy Governors and two Non- Official Directors of the Central Board.

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RBI regulates Commercial Banks, Regional Rural Banks, Local Area Banks, Cooperative Banks, Financial Institutions including Development Financial Institutions (DFIs) and Non-Banking Financial Companies.