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Banking and Finance One-Liners
Rapid-fire one-liners on the RBI, banking structure, regulators, financial instruments and key dates, for CAPF Paper I Indian Economy
CAPF wiki•3 min read•8 sections
At a glance
SubjectEconomy
RevisionEconomyBankingRBIFinancePaper 1
One screen per section. Cover the right column and test yourself. These are clean, durable facts on India's banking and financial system. For current rates (repo, CRR, SLR) and the latest regulatory thresholds, verify the latest RBI release; the focus here is on institutions, history and concepts that do not change.
| Item |
Fact |
| Established |
1 April 1935, under the RBI Act, 1934 |
| Nationalised |
1 January 1949 |
| Headquarters |
Mumbai (initially Calcutta) |
| First Governor |
Sir Osborne Smith |
| First Indian Governor |
C D Deshmukh |
| Currency-issuing authority |
RBI issues all notes except the one rupee note and coins (issued by the Government, Ministry of Finance) |
| Note printing presses |
Nashik and Dewas (Government); Mysuru and Salboni (RBI-owned) |
| Bank for the Government |
Acts as banker, debt manager and adviser to the Centre and States |
| Monetary policy body |
Monetary Policy Committee (MPC), six members, set up 2016 |
| Inflation target |
4 percent CPI with a band of plus or minus 2 percent (verify the latest) |
| Function |
Note |
| Sole note issuer |
Minimum Reserve System since 1956 (gold and foreign securities backing) |
| Banker's bank |
Maintains reserves, acts as lender of last resort |
| Controller of credit |
Through CRR, SLR, repo, reverse repo, OMO |
| Custodian of forex reserves |
Manages the country's foreign exchange reserves |
| Regulator of banks |
Licensing, supervision, prudential norms |
| Item |
Fact |
| First bank in India |
Bank of Hindustan (1770), later wound up |
| Oldest existing bank |
State Bank of India lineage (Bank of Calcutta, 1806; later Imperial Bank) |
| SBI formed |
1955 (Imperial Bank reconstituted under the SBI Act) |
| First bank nationalisation |
14 major banks nationalised in 1969 |
| Second nationalisation |
6 more banks in 1980 |
| First fully Indian-owned bank |
Punjab National Bank (1894) |
| Regional Rural Banks |
Established 1975 to serve rural areas |
| NABARD |
Apex rural and agricultural finance body, set up 1982 |
| Body |
Regulates |
| RBI |
Banks, monetary policy, payment systems |
| SEBI |
Securities and capital markets (statutory since 1992) |
| IRDAI |
Insurance sector |
| PFRDA |
Pension funds (NPS) |
| NABARD |
Rural and agricultural credit |
| SIDBI |
Small industries finance |
| EXIM Bank |
Export and import finance |
| DICGC |
Deposit insurance (cover per depositor; verify the latest limit) |
| Term |
Meaning |
| M0 (reserve money) |
Currency in circulation plus bankers' deposits with RBI |
| M1 (narrow money) |
Currency with public plus demand deposits |
| M3 (broad money) |
M1 plus time deposits with banks |
| Demand deposit |
Withdrawable on demand (current and savings accounts) |
| Time deposit |
Fixed for a term (fixed and recurring deposits) |
| CASA |
Current Account and Savings Account, low-cost deposits |
| Scheme / system |
Note |
| PMJDY |
Pradhan Mantri Jan Dhan Yojana, basic no-frills bank accounts |
| UPI |
Unified Payments Interface, run by NPCI |
| NPCI |
National Payments Corporation of India, umbrella for retail payments |
| RTGS |
Real Time Gross Settlement, large-value real-time transfers |
| NEFT |
National Electronic Funds Transfer, batch-settled transfers |
| Priority Sector Lending |
Mandated bank lending to agriculture, MSME, weaker sections |
| Item |
Fact |
| Oldest stock exchange in Asia |
Bombay Stock Exchange (BSE), 1875 |
| Benchmark indices |
Sensex (BSE, 30 stocks); Nifty 50 (NSE) |
| IPO |
Initial Public Offering: first public sale of a company's shares |
| Mutual fund |
Pooled investment managed by professionals, regulated by SEBI |
| Bond vs share |
Debt instrument (fixed return) vs ownership equity |
| Gilt-edged securities |
Government securities, considered the safest |