Monetary Economics-II RTMNU B.COM 4th Sem

Evolution, Meaning, Functions of Commercial Banks. Role commercial banks in a developing economy. Process of Credit Creation by Commercial Banks & its Limitations, Investment Policy of Commercial Banks. Non-Performing Assets- Meaning, Criteria and Causes.

Unit II: E-Banking & Core Banking

Meaning, Features, Advantages & Disadvantages of ATM (Automated Teller Machines.) Meaning, Features, Merits and Demerits of Credit Cards, Plastic Cards, Smart Cards, e-purse, Laser Cards. EFT (Electron Fund Transfer), ECS (Electronics Clearing System).

Unit III: Banks and Customers Relationship and Services

Introduction, Meaning of Customer. Bank & Customer Relationship – Debtor & creditor, Trustee and Beneficiary, Agent and Principal, Bailer and Bailee. Opening, operating and closing of various bank accounts. Demat Account –Advantages, Opening and Operation of Demat Account. Methods of Calculating Interest Rates on Deposits and on Loans.

Unit : IV Central Bank

Meaning, Objectives, Functions, Role of Central Bank. Credit Control- Meaning, Objectives, Methods: Quantitative- Bank Rate, Open Market Operations, Cash Reserve Ratio(CRR), Statutory Liquidity Ratio(SLR), Repo Rate. Qualitative – Varying Margin Requirement, Regulation of Consumer‘s Credit, Issuing Directives, Publicity Measure, Moral Suasion, Credit Rationing and Limitations.