04-08-2014, 02:49 PM
BANKING MANAGEMENT
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1.Financial System – Meaning
A Financial System means “ The Structure that is available in an economy to mobilize the capital from various surplus sectors of the economy and distribute the same to the various needy sectors”
. Role of Insurance Regulators
Implementing rules and regulation for Insurance Business
Supervising the Insurance Companies
Regulating Insurance Brokers
Cont…
Mgt of Foreign Exchange and Foreign Reserve ( if bank want to Maintain foreign reserve , they must follow RBI rules )
3. Collection and furnishing of credit Information ( As per RBI Instruction , Bank should give credit Information to CIBIL )
4. Financial supervision of Banks and Financial Institution ( RBI Should visit all Banks )
5. Penalties ( If any bank violate the rules , RBI can Charge Penalty)
6. Regulate the Banks ( Bank should follow the rules of Bank regulation act , this should be monitored by RBI )
3rd Topic : Credit Card
Cards are issued to approved clients for purchase of goods or services from authorized merchant establishments on the credit guarantee of issuer of credit card.
RBI as Central Bank and Regulator of Banks
Sec 3 of the RBI Act 1934 - RBI can act as a central Bank.
Sec 22 of the RBI Act – Reserve bank is the sole authority for issue and Management of currency .
Power of RBI – 1.Licence 2.appointment and removal of board / personal 3. Audit other banks 4.impose penalties
Technical Architecture of Core Banking Solution
A powerful server will be installed at the centralized data center (Hub)
Every branch will have a branch server
Each user at each branch will have a terminal ; these terminals will be connected to branch server, and the branch servers will be connected to the central server (Hub)