Ch 2Central Banking — Class 11 Banking and Insurance, concept-first.

Every country has one special bank that stands at the very top of its banking system — a bank that does not deal with the general public at all, but instead controls, guides, and supervises all the ot…

A central bank is the apex (topmost) financial institution of a country that is responsible for controlling, regulating, and supervising the entire banking and monetary system, and for managing the cu…

The Reserve Bank of India performs a wide range of functions. These are usually grouped into traditional (central banking) functions, promotional/developmental functions, and supervisory functions.

Credit control means the regulation of the volume (how much) and the direction (where it goes) of bank credit by the central bank, so as to achieve the broad economic goals of the country.

Quantitative methods affect the total volume of credit in the whole economy. The three classic quantitative tools are the bank rate, open market operations, and the cash reserve ratio (CRR).

While quantitative methods change the total amount of credit, selective or qualitative methods control the use and direction of credit — encouraging it to flow toward desirable, productive purposes an…

Innovative banking refers to the modern, technology-driven products and services that banks now offer, which have transformed banking from something done only inside a branch during working hours into…

Banks handle the public's savings and control a large part of the country's credit. Because of this powerful position, banks are expected to work not only for their own profit but also for the good of…