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Aug 15nth-Inflation, Money & Banking System - Coggle Diagram
Aug 15nth-Inflation, Money & Banking System
Positive Pay System
Introduced by RBI
make cheque payment safer
reduce instances of frauds
ensuring
faster clearance of cheques above 50000
Objective
Fraud detection tool
adopted by banks
cross verifies
all details of the cheques
before issued funds
incase of mismatch
cheques send back
to the issuer for examination
protect customers against forged
altered or counterfeit cheques
NPCI
National Payments Corporation of India
develop facility of positive pay in CTS
Cheque Truncation System (CTS)
for clearing cheques
presently covers
total retail payments
in term of
volume 2%
value 15%
Umbrella entity for retail payments
Umbrella entity
tasked with setting up
managing and
operating new payment system
as
for-profit
org
comprising ATMs, white label PoS
Adhaar-based payments
remittance services
for
related issues in
country and International
monitor retail payments and system development
identify and manage relevant risks
participating banks and non-banks
incorporated under
Companies Act, 2013
frame
necessary rules and related process
ensure system safe
payments
exchanged efficiently
permitted to participate
RBI payments and settlements system
current account with RBI if required
Authorised Under
Payment and Settlement System Act, 2007
FDI/FPI
applicant entity should comply
with Foreign Exchange Management Act Rules
Corporate governance norms
set by the RBI
right to appoinment of directors
and nominated members
on the entities board
D-SIB
Domestic-Systemically Important Bank
According to RBI
Means that Bank is too big to fail
incase of distress
govt support these banks
Categories
IDBI Bank - Private
SBI,ICICI,and HDFC
remains systemically Imp Banks
systemically imp
due to size
cross-jurisdictional activites
complexity and
lack of
substitute
and Interconnection
Banks whose assets
exceed 2% of GDP
considered part of this group
RBI Contingency Fund
meeting
unexpected and unforeseen
contingencies
include
depreciation in value of securities
risks arising
out of monetary/exchange
rate policy operations
systemic risks
Sec 47, RBI Act
profit or surplus of RBI
transferred to govt
after making
various contingency provisions
public policy
mandate of RBI
including
financial stability
CGRA
Currency and Gold Revaluation Account
RBI
take care of currency risk
interest rate risk
movement in gold prices
unrealised gains or losses
on valuation of
foreign currency assets and gold
not taken
to income account
but instead
accounted for in CGRA
provides
buffer against
exchange rate
gold price fluctuations
come under pressure
appreciation of rupee
vis-a-vis major currencies
when is not sufficient
fully meet exchange losses
it is replenished from the CF
IRA-FS
unrealised gains or losses
on revaluations
in foreign dated securities
recorded in
Investment Revaluation Account Foreign Securities
IRA-RS
unrealised gains or losses
on revaluation
accounted for
Investment Revaluation Account-Rupee Securities