Chapter 3 Part 2 - Banking
Basic Concepts of a Commercial Bank
Different Functions of Commercial Bank
Understanding Balance sheet of a Commercial Bank
Procedure followed to Issue Currency
Different Transactions between Central Bank and Commercial Bank You are here
Deposit Transaction between Government and Central Bank
Understanding Assets and Liabilities of Central Bank
Important Ratios Used in Banking System
Currency Deposit Ratio - Meaning, Importance and Calculation
Reserve Deposit Ratio - Meaning, Importance and Calculation
Statutory Liquidity Ratio - Meaning, Importance and Calculation
Cash Reserve Ratio - Meaning, Importance and Calculation
What is Bank Rate or Repo Rate
How does Bank control Money Supply and Reserve Deposit Ratio in an Economy
Functions of Central Bank
Concept of Money Multiplier
What is Repo Rate and Reverse Repo Rate
Demonetisation
Chapter 3 Part 2 - Banking
Last updated at April 16, 2024 by Teachoo
There are mainly 2 types of transactions
Commercial Bank takes loan from Central Banks
Commercial banks deposit their surplus funds with Central Banks
Loan Transaction between Central Bank and Commercial Banks Central Bank Gives loans to Commercial Banks Commercial Bank use this amount for lending to Public Example Suppose RBI provides Loan to SBI @ 6% SBI provides loan to public @ 11%RBI (Central Bank) It is called Bank Rate SBI (Commercial Bank) It is called Lending Rate Public It is called Lending Rate Is Loan given by Central Bank Asset or Liability? For Central Bank Loan given It is an Assets For Commercial banks it is Loan taken Liability Deposit Transaction between Central Bank and Commercial Banks Public deposit their money in Savings Account and FD of Banks Similarly commercial banks deposit their surplus money with Central Bank Public Commercial Banks Central Bank Are Deposits of Commercial Bank with Central Bank Assets or Liability ? For Commercial banks It is Deposits Made (Assets) For Central Bank (RBI) It is Deposits Received (Liability)
