NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts. It also has the mandate to sup…

Primary Reserves Primary reserves consist of cash on hand in the bank and deposits owed to it by other banks. These are also called the legal reserves. From this cash on hand tellers are able to meet customer demands for withdrawals, exchanges, and loan…

Objectives The main objectives of IDBI is to serve as the apex institution for term finance for industry in India. Its objectives include: Co-ordination, regulation and supervision of the working of other financial institutions such as IFCI , ICICI, UTI,…

As a central bank, the Reserve Bank has significant powers and duties to perform. For smooth and speedy progress of the Indian Financial System, it has to perform some important tasks. Among others it includes maintaining monetary and financial stability, to…

The central bank of the country is the Reserve Bank of India (RBI). It was established in April 1935 with a share capital of Rs. 5 crores on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into shares of Rs. 100 …

Types Of Mutual Funds

There are various types of derivatives traded on exchanges across the world. They range from the very simple to the most complex products. The following are the three basic forms of derivatives, which are the building blocks for many complex derivatives inst…

The term “derivatives” is used to refer to financial instruments which derive their value from some underlying assets. The underlying assets could be equities (shares), debt (bonds, T-bills, and notes), currencies, and even indices of these various assets, such…

A mutual fund is a professionally managed type of collective investment scheme that pools money from any investors and invests it in stocks, bonds, short-term money market instruments and other securities. Mutual funds have a fund manager who invests the mon…

IDBI stands for Industrial Development Bank of India. It was founded with the objective of financing and help develop small and medium scale industries in India. IDBI was set up in July 1964 under an Act of Parliament as a wholly-owned subsidiary o…

Islamic banking   (or   participant banking ) is   banking   or banking activity that is consistent with the principles of   sharia law   and its practical application through the development of   Islamic economics . Sharia prohibits the fixed or floatin…