Thursday, 17 July 2008

Indian Financial System queues up...


Today, we have begun with yet another new subject, 'Indian Financial System (IFS)'. It was a quite normal day. As the routine goes, Mr Raju presented today's review and he did a nice job covering all the aspects in a decent manner and highlighting the important point. The FMA class followed and we covered more about Accountancy on the areas like journal, ledger, postings, etc. After a tea break, IFS began (which is also taken up by Laxminarayan Sir) with an introduction about the Reserve Bank of India. It is the entity that is the head or boss of the entire financial sector and thus, called as the Central Bank of India. It has been established under the RBI Act of 1934 and came into function from April 1, 1935. The central office (where the governer sits and the policies are formulated) was located in Kolkatta (formerly Calcutta) and in 1937, it has been moved to Mumbai (then Bombay). The present RBI governer is Sri Y V Reddy. RBI was privately owned when incorporated. However, it has been nationalized in 1949 and fully taken under the Government of India
The preamble of the RBI describes about its basic functions as
"...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."
Some important roles that the RBI plays are
  • Banker to the Government
  • Banker to the Banks
  • Control and Regulation of Banks and other Financial Intermediaries
  • Foreign Exchange Management
  • Issuer of Currency
  • Formulation and implementation of monetary policies*
  • Publications
* Fiscal policies are framed by the Government while Monetary policies are framed by the RBI
After the class, the OOB class continued where in we learnt about the various financial intermediaries that are operating in the market like Banks, Mutual Funds, Development Banks, Insurance Companies, NBFCs, etc under the organised sector and other entities/persons like money-lenders, bishis, nidhis, chit funds, pawn brokers, etc those fall under the unorganised sector. Its all a very interesting part that we study and I just love this. It has been a passion for me study finance and banking and I am very delighted about all this

And then, we continued with the interview preparation process. A deeper look into various aspects of interview and the types of questions that would be asked were being analysed alongwith some tips to answer them. Interviews, according to me, are a very funny thing. I personally feel that it depends a lot on the luck of a person. Sometimes, a dullurt who can just impress in 5 minutes of the process is lucky to get through even after doing all wrong things as the interviewer considers him as bold and honest. And sometimes, the best performer fails as the interviewer feels that he is overdoing. A lot depends on the interviewer's mood too. And also the lines of thought in which he is in. Those who can match those lines of thought are definitely better headed to get in. What appears as positive to someone can appear negative to someone else. It all depends
And after all this, we are now in the process of doing some lab work and research about interviews and HDFC Bank and its products, etc. And will continue with the ISAS activity of collecting newspaper articles soon

Signing off for the day

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