Indian Economy – Important Terminology Part 4th

SEBI :- SEBI is the regulator for the securities market in India. Originally, set up by the Government of India in1988, it acquired statutory form in 1992 with SEBI Act 1992 being passed by the Indian Parliament.

Mutual Funds :- Mutual funds are investment companies that pool money from investors at large and offer to sell and buy back its shares on a continuous basis and use the capital thus raised to invest in securities of different companies.

Foreign Exchange Reserves :- Foreign Exchange Reserves (also called Forex Reserves) in a strict sense are only the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, SDRs and IMF reserve positions.

Monetary Policy :- A monetary policy is the process by which the government, central bank, of a country controls

(i)                 The supply of money.

(ii)               Availability of money.

(iii)             Cost of money or rate of interest.

In order to attain a set of objectives oriented towards the growth and stability of the economy. It’s the mandate of RBI to frame and maintain MP.

Fiscal Policy :- Fiscal policy is the use of government spending and revenue collection to influence the economy. These policies affect tax rates, interest rates and government spending, in an effort to control the economy. Fiscal policy is an additional method to determine public revenue and public expenditure.

Core Banking Solutions (CBS) :- Core banking is a general term used to describe the services provided by a group of networked bank branches. Bank customers may access their funds and other simple transactions from any of the member branch offices.

Scheduled Bank :- All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are scheduled banks. These banks comprise Scheduled Commercial Banks and Scheduled Cooperative Banks. Almost all banks are scheduled Banks in India.

Commercial Banks :- Commercial banks may be defined as, any banking organization that deals with the deposits and loans of business organizations. Commercial banks issue bank checks and drafts, as well as accept money on term deposits.

Public Sector Banks :- These are banks where majority stake is held by the Government of India. Examples of public sector banks are SBI, Bank of India, Canara Bank, etc.

Private Sector Banks :- These are banks where majority of share capital of the bank is held by private individuals. These banks are registered as companies with limited liability. Examples of private sector banks are ICICI Bank, Axis Bank, HDFC, etc.

More terminology to be continued soon…………………..