Major players of Indian money market is a. Central bank b. Co-operative banks c. Commercial banks d. Indigenous banks (2024)

FAQs

Major players of Indian money market is a. Central bank b. Co-operative banks c. Commercial banks d. Indigenous banks? ›

Major players of Indian money market is Commercial banks.

RBI (Reserve Bank of India) controls the money market. Money Market is a big segment of the financial market in India where the borrowing and lending function occurs in short-term funds which take place in these markets.

Answer: The primary functions of a commercial bank are accepting deposits and also lending funds. Deposits are savings, current, or time deposits. Also, a commercial bank lends funds to its customers in the form of loans and advances, cash credit, overdraft and discounting of bills, etc.

The important functions of the money market include short-term borrowing and lending, price discovery, liquidity management, financing trade and commerce, reserve management for banks, etc.

Commercial Banks can be further classified into public sector banks, private sector banks, foreign banks and Regional Rural Banks (RRB). On the other hand, cooperative banks are classified into urban and rural. Apart from these, a fairly new addition to the structure is a payments bank.

Fourth, whereas the Reserve Bank of India regulates the money market, the Securities Exchange Board of India (SEBI) regulates the capital market.

The RBI is the money market and the banking regulator in India.

The central bank and Commercial bank are the important financial institutions of a country. The central bank is an institution that is responsible for the monetary policies of the country while the commercial bank provides banking and other financial services to the general public.

Banks are classified into 4 broad categories – Commercial Banks, Small Finance Banks, Payment Banks and Co-operative Banks. Commercial Banks are further classified into Public sector banks and Private sector banks. There are total of 91 commercial banks operating in India.

The first bank to be established the Bank of Hindustan was founded in 1770 in Calcutta. It closed down in 1832. The Oudh Commercial Bank was India's first commercial bank in the history of the evolution of banking in India. A few other banks that were established in the 19th century, such as Allahabad Bank (Est.

Is India's central bank responsible for the supply of money in the market? ›

The Reserve Bank of India, abbreviated as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. Owned by the Ministry of Finance, Government of India, it is responsible for the control, issue and maintaining supply of the Indian rupee.

In essence, the Indian financial market acts as the lifeblood of the economy, facilitating the flow of funds, managing risks, and providing a robust platform for investment and economic growth. Its effective functioning is essential for the overall development and stability of the Indian economy.

It enhances the amount of liquidity available to the entire country. A Money Market, by providing Profitable Investment Opportunities for Short-Term Surplus funds, helps to enhance the profit of financial institutions and individual. adequately and quickly to trade and industry.

Commercial banks are the most common type of bank in India. They provide a wide range of financial services to individuals and businesses, including savings accounts, loans, and investment products.

The Reserve Bank of India is the central bank of the country. Central banks are a relatively recent innovation and most central banks, as we know them today, were established around the early twentieth century. The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission.

A commercial bank is a kind of financial institution that carries all the operations related to deposit and withdrawal of money for the general public, providing loans for investment, and other such activities. These banks are profit-making institutions and do business only to make a profit.

The Securities and Exchange Board of India (SEBI) is the regulatory authority established under the SEBI Act 1992 and is the principal regulator for Stock Exchanges in India.

U.S. money market funds are mutual funds that invest in short-term liquid assets and pay their investors dividends that reflect short-term interest rates. Like other mutual funds, they are registered with the Securities and Exchange Commission and regulated under the Investment Company Act of 1940.

Money market instruments are short-term financial securities with a maturity duration of up to one year, according to the Reserve Bank of India (RBI), and comprise, among other things, Treasury Bills, Commercial Papers, Certificates of Deposits, and Repurchase Agreements (Repos).