HU BANU VISHV MANAVI PART- 3

PART- 3

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HU BANU VISHV MANAVI PART- 3

The main functions of the RBI are monetary authority: periodic scrutiny of monetary policy. Controlling the ups and downs of the economy. 2. The RBI acts as the regulator and supervisor of the financial system: performs various functions to develop a strong banking system in the country. Protecting the interest of depositors and providing effective banking services to the people. 3. Foreign Exchange Control: Maintaining the stability of the external value of the national currency (Indian Rupee). To regulate the foreign exchange market in the country. Banker of Banks: RBI keeps track of all banks. Financial control instruments (as per RBI Act) 1. A Cash Reserve Ratio (CRR): A cash reserve ratio is a type of cash. All banks are required to maintain a certain percentage of their customer deposit and cash, or their demand and time obligations (DTL) with the RBI.

Currency Allocation: To issue or destroy currency notes and coins and to maintain an adequate public supply of money. Government Banker: RBI acts as a central and state government banker. CRR of banks The underlying cash is deposited in the vault or in the form of a deposit with the Central Banking Authority. If the CRR is reduced through the Reserve Bank of India, the interest rate of the banks will go down, but on the contrary, if the CRR is increased, the banks will raise the interest rate. Statutory Liquidity Ratio (SLR): SLR That is the money that all banks need to maintain in the form of cash, gold or government securities (bonds and shares of companies) before making any lending.

SLR has three purposes. To control the increase in lending of banks, to increase the investment of banks in government securities and to ensure the viability of banks. Bank Rate: The bank rate is the rate of interest charged by the Reserve Bank (RBI) to all commercial banks and other financial institutions for creditworthy assets and credit.

HU BANU VISHV MANAVI PART- 3

Usage / Operations Bank Bank primarily provides financial services to customers. Accepts deposits and keeps those deposits in lending activities. The bank acts as a payment agent, in which it maintains the accounts of the customers, pays the checks written by the customers in the bank and collects the money of the checks deposited in the accounts of the customers. Provides loans for house purchase, farming, study, vehicle purchase, industry etc. Provides locker facility.

Some banks also accept insurance premiums, electricity bills, telephone bills, student fees, etc. Salary, pension, interest, dividends etc. are paid to the individuals through the bank. Some banks also exchange foreign currency. The bank also makes available to its customers payment methods through other methods of payment such as EFTP0S (Electronic Funds Transfer at Point of Sale) and ATM (Automated Taylor Machine). The bank provides credit card facility to some individuals.

HU BANU VISHV MANAVI PART- 3

Bitcoin Bitcoin is a new digital currency (digital currency) that is created and stored electronically. Bitcoin is a combination of Bit and Coin. This currency is not under anyone's control. Bitcoin is not printed like other currencies like rupee, dollar or pound. A man named Satoshi Nakamoto first mentioned Bitcoin in his research paper on October 31, 2008. It was implemented as an open source code in January, 2009. This currency is produced by people and is used and disseminated worldwide through computers as well as the Internet.

All bitcoins transactions are managed and maintained through a public ledger called tut blockchain. Each time new blocks are added to this ledger as a chain. The process of adding new bitcoin transactions to a public ledger is called bitcoin mining. Specifies a blockchain transaction and presents that transaction to another user in its network. To get Bitcoin, you first need to open an account in BitcoinWallet. Then you have to specify a specific Bitcoin address for the transactions that will take place through you. Bitcoin is purchased only after this process is completed. At present, Bitcoin offers both online and offline payment services. Bitcoin is also an easy way to make financial transactions / payments in other countries, as it does not involve unnecessary paperwork.