NMIMS APRIL 2020 ASSIGNMENT - COMMERCIAL BANKING SYSTEM & ROLE OF RBI

COMMERCIAL BANKING SYSTEM & ROLE OF RBI

1. Sundarajan Pvt.Ltd., Bangalore based company are engaged in exporting seafood to various countries. They entered a contract with Japanese Company, Ziomei Pvt Limited for the exporting cuttlefish. Ziomei Pvt Limited asked XYZ Limited to issue the letter of credit. Sundarajan &lsquos owner doesn't have many ideas on the letter of credit. He visits the bank to get an idea of how the letter of credit works. As a bank manager, you are required to explain to him the procedure of how the letter of credit works as its advantages from the buyer as well as the seller point of view.

2. You are an operational trainer in a bank. You are asked to prepare a presentation on the various types of fund based credit facility of a bank. Describe the same.

3. The Basel Accords primarily focuses on prudential norms for bank capital under the aegis of which banks are required to ensure adequate capital to cover losses on account of significant risks in their business. In regard to the above statement answer the below questions.

a. Elaborate on Basel I, Basel II, Basel III.

b. Highlight the significance of Basel III in context to Indian banks

Retail Banking

1. Banking today has become a competitive industry. Discuss how the internet and mobile banking is ice breaker to the tradition banking industry. Highlight how internet and mobile banking have brought digitalization in the banking industry and is helping the industry to pave its way to success.

2. Shriram has recently graduated from a reputed MBA college and got placed in a private sector bank. His manager asks him to prepare a short note the different types of lending which are carried by banks in day to day operations. Help him to prepare his notes.

3. &ldquoThe test of our progress is not whether we add more to the abundance of those who have much it is whether we provide enough for those who have too little.&rdquo - Franklin D. Roosevelt Despite witnessing progressive growth in economy post liberalization, yet nearly 75 % of the households even today are deprived to access to any funds-institutional or otherwise. Banks play a vital role in bridging the social divide and achieving robust and sustainable economic growth. Financial inclusion is viewed as a promising step towards achieving financial equality and stability.

a. Discuss the various initiatives taken by RBI for promoting financial inclusion.

b. Highlight the barriers that impends financial inclusion.