Types of Financial Institutions Financial institutions offer a wide range of products and services for individual and commercial clients. The specific services offered vary widely between different types of financial institutions.
List of Financial Institutions in India Article shared by: This article throws light upon the eight important financial institutions that operate in India.
The financial institutions are: Reserve Bank of India 2. Unit Trust of India 7. Important Financial Institution 1.
Reserve Bank of India: The Reserve Bank of India is the nerve centre of the monetary system of the country. The position of the bank is that it is a State-owned institution. The Reserve Bank of India is empowered to control, regulate, guide and supervise the financial system of the country through its monetary and credit policies.
This authority was derived from the various acts. The Reserve Bank of India has several functions to perform. It is also a banker to the commercial banks, State co-operative banks and financial institutions of the country.
It is the only bank engaged in the issue of legal tender currency. RBI also performs development functions and controls the monetary policy of the country. Amongst the development or promotional roles it has improved the banking business by integrating the organized and unorganized sector of the money market.
It also tried to bring appropriate geographical diversification of bank branches. To give adequate security to banks and their customers, it created the Deposit Insurance Corporation in It provides agricultural credit through State Co-operative Banks to Co-operative Banks for short-term purposes for marketing of crops.
It provides long-term credit: In the institutional financial structure, the RBI played an important development role. All the other financial institutions and development banks have been provided technical consultancy, financial help and guarantees at the times of formation and growth. The RBI has under its command the entire economic situation in the country.
To fulfil this role, it regulates the monetary policy of the country, it uses three kinds of techniques: By using these systems, the RBI charges differential interest rates from different banks to raise the cost of refinance on the basis of the level of liquid assets maintained by different banks without changing the level of bank rate to maintain stability in the government securities market.
RBI also operates a Credit Authorization Scheme since to regulate the volume and distribution of bank credit. The RBI also uses selective credit controls on sensitive commodities like food grains, cotton and oilseeds and since it has resorted to a reserve ratio technique for controlling the monetary policy which is the cash ratio maintained by banks.
Let us now give a brief description of the commercial banks in India. Sincethe RBI has carried out many reforms and promotional measures to strengthen the banking and financing system in India. It has focused on efficiency and profitability of banks and has streamlined measures to bring about the discipline in protection of depositors.
The RBI has issued guidelines on asset classification, income recognition and capital adequacy of commercial banks. The RBI has announced the entry of new private sector banks since Jan. It has also allowed the entry of foreign banks and joint sector banks.
The RBI has also in pursuance of Narsimhan Committee report gradually reduced the cash reserve ration and statutory liquidity ratio of banks. It has tried to reduce control and allowed financial institutions and banks to mobilize their resources according to capital market related arrangements.UTI is a financial organization in India, which was created by the UTI Act passed by the parliament of India on December 30, under the direction of Col.
Akash Behl. UTI was established with an initial capital of Rs. 5 crore, contributed by the RBI, LIC, SBI & its . In India, the bank portfolio consists of short-term assets and liabilities whereas the financial institutions have longer-term assets and liabilities. This is a challenge in the reform process in the management of interest rate risk, foreign exchange risk, liquidity risk and credit risk.
Our financial services in India. UBS in India provides corporates, institutions and individual clients with expert advice, innovative solutions, execution and comprehensive access to international capital markets.
Financial Institution Risk Management. In today’s economy, running a financial institution is harder than ever. Leaders are faced with critical challenges in finding new and better ways to increase top-line revenues, maintain necessary capital ratios, improve margins, .
The bank is also authorised to raise its resources through borrowings from Government of India, Reserve Bank of India and other financial institutions.
On 31st March, , the bank had borrowings of Rs. 23, crore by way of bonds and debentures, deposits of Rs. crore and borrowings of Rs. 10, crore from RBI, Government of India and. The top 50 financial institutions in the USA are the leading names in the financial scenario of the United States of America.
These organizations have been doing stellar business over the years in the country and have continued to serve millions of people and address their financial issues through their services.