General Studies 3

Financial Market A financial market serves as a platform that connects buyers and sellers for the trading of financial assets, such as stocks, bonds, derivatives, and currencies. Broadly, financial markets are classified into two types: Capital Market The capital market … Continue reading →

Bad Banks A bad bank is a financial entity set up to buy Non-Performing Assets (NPAs), or Bad Loans, from banks. The aim of setting up a bad bank is to help ease the burden on banks by taking bad … Continue reading →

Non-Performing Assets (NPAs) Definition: A NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. Classification of assets: As per the RBI guideline, banks are required to classify NPAs … Continue reading →

Basel Norms Basel norms or Basel accords are the international banking regulations issued by the Basel Committee on Banking Supervision. The Basel norms is an effort to coordinate banking regulations across the globe, with the goal of strengthening the international … Continue reading →

Non-Banking Financial Companies (NBFCs) A NBFC is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by the Government or local authority, or other marketable securities. The workings and … Continue reading →

Development Banks National Bank for Agriculture and Rural Development (NABARD) Establishment: NABARD was established on July 12, 1982, under the National Bank for Agriculture and Rural Development Act, 1981. Objective: NABARD’s primary objective is to promote sustainable agriculture and rural … Continue reading →

Cooperative Banks Cooperative Banks refer to those financial institutions under the Banking System in India that operate on the principles of cooperation and mutual benefit for their members. Features: They belong to their members who are both the owners and … Continue reading →

Specialised Banks Payments Bank It was set up based on the recommendations of the Nachiket Mor Committee. Objective: To advance financial inclusion by offering banking and financial services to the unbanked and underbanked areas, helping the migrant labour force, low-income … Continue reading →

Division of Banks Scheduled Banks Scheduled Banks under the Banking System in India refer to those financial institutions that are listed in the 2nd Schedule of the Reserve Bank of India Act, 1934. Conditions: It should have paid-up capital and … Continue reading →

Reserve Bank of India (RBI) It is the apex body in the Indian financial system. It acts as a regulatory body, responsible for the regulation of the Indian banking system as well as the control, issuing, and maintaining money supply … Continue reading →