Course

Money & Banking

Indian Institute of Technology Kanpur

This course provides a comprehensive introduction to money and banking in India. It covers the following key topics:

  • Functions of Money: Understand the various functions and types of money, as well as interest rates.
  • Money Supply Process: Learn about the money supply in India, including definitions of monetary aggregates, money multipliers, and sources of high-powered money.
  • Indian Money Market Instruments: Explore the different instruments used in the Indian money market extensively.
  • Reserve Bank of India: Discover the various functions of the Reserve Bank, including traditional and non-traditional monetary policy instruments and liquidity adjustment mechanisms.
  • Indian Banking System: Gain an overview of the Indian banking system, focusing on commercial and co-operative banks.
Course Lectures
  • Mod-01 Lec-01 Lecture 1
    Prof. Surajit Sinha

    This module introduces the fundamental concepts of money and its functions within the economy. It covers:

    • The definition and importance of money.
    • Different types of money including commodity money, fiat money, and digital currencies.
    • The role of interest rates in the economy.

    Students will gain a foundational understanding of how money facilitates trade and affects economic stability.

  • Mod-01 Lec-02 Lecture 2
    Prof. Surajit Sinha

    This module delves into the money supply process in India, explaining key concepts such as:

    • Definitions of Indian monetary aggregates.
    • Understanding money multipliers and their implications.
    • Sources of high powered money in India.

    By the end of this module, students will be familiar with how the money supply is measured and its impact on the Indian economy.

  • Mod-01 Lec-03 Lecture 3
    Prof. Surajit Sinha

    This module provides a comprehensive overview of the money market instruments prevalent in India. Key topics include:

    • Types of money market instruments.
    • The role of these instruments in liquidity management.
    • How these instruments are used by financial institutions.

    Students will also learn about the significance of these instruments in maintaining financial stability.

  • Mod-01 Lec-04 Lecture 4
    Prof. Surajit Sinha

    This module focuses on the functions and roles of the Reserve Bank of India (RBI). It covers:

    • The traditional and non-traditional monetary policy instruments used by the RBI.
    • The liquidity adjustment mechanisms employed by the RBI.
    • The overall impact of RBI policies on the Indian economy.

    By the end of this module, students will understand the critical role of the RBI in financial regulation and monetary policy.

  • Mod-01 Lec-05 Lecture 5
    Prof. Surajit Sinha

    This module offers a detailed overview of the Indian banking system, focusing particularly on:

    • The structure and functions of commercial banks.
    • The role of co-operative banks in the Indian economy.
    • The regulatory framework governing these institutions.

    Students will explore how these banks contribute to economic development and financial inclusion.

  • Mod-01 Lec-06 Lecture 6
    Prof. Surajit Sinha

    This module analyzes the evolution of money in India, detailing the historical transition from barter systems to modern-day currencies. Key points include:

    • The impact of colonial rule on currency systems.
    • Introduction of the Indian rupee and its significance.
    • Modern developments in digital banking and cryptocurrency.

    This historical context will provide students with a deeper understanding of current monetary policies.

  • Mod-01 Lec-07 Lecture 7
    Prof. Surajit Sinha

    This module focuses on the role of international banking in the Indian economy. It covers:

    • The influence of foreign banks in India.
    • Regulatory measures for international banking operations.
    • The impact of global financial trends on Indian banks.

    Students will gain insight into how international banking affects local economies and financial stability.

  • Mod-01 Lec-08 Lecture 8
    Prof. Surajit Sinha

    This module investigates the relationship between monetary policy and inflation in India. Key areas of focus include:

    • How the RBI uses monetary policy to control inflation.
    • The effects of inflation on economic growth.
    • Strategies to maintain price stability.

    Students will understand the delicate balance between stimulating growth and controlling inflation in the economy.

  • Mod-01 Lec-09 Lecture 9
    Prof. Surajit Sinha

    This module covers the impact of technology on the banking sector, focusing on:

    • Digital banking and its rise in India.
    • The role of fintech in transforming financial services.
    • Challenges and opportunities presented by technological advancements.

    Students will explore how technology is reshaping the banking landscape and influencing customer behavior.

  • Mod-01 Lec-10 Lecture 10
    Prof. Surajit Sinha

    This module discusses the ethical considerations in banking and finance, including:

    • The importance of corporate governance in banks.
    • Issues of transparency and accountability.
    • Ethical dilemmas faced by financial institutions.

    Students will learn about the significance of ethical practices in maintaining public trust in the banking system.

  • Mod-01 Lec-11 Lecture 11
    Prof. Surajit Sinha

    This module explores the future of banking and finance, emphasizing trends such as:

    • The rise of blockchain technology.
    • Artificial intelligence in banking.
    • Future challenges and opportunities for the banking sector.

    Students will gain insights into how these trends may shape the future landscape of financial services.

  • Mod-01 Lec-12 Lecture 12
    Prof. Surajit Sinha

    This module covers the regulatory framework governing the banking sector in India. Topics include:

    • The role of the Reserve Bank of India as a regulator.
    • Key regulations and compliance requirements for banks.
    • Impact of regulations on banking operations and customer service.

    Students will understand how regulation ensures the stability and integrity of the banking system.

  • Mod-01 Lec-13 Lecture 13
    Prof. Surajit Sinha

    This module provides a summary of key concepts covered throughout the course, reinforcing the understanding of:

    • The functions of money and banking.
    • The role of the Reserve Bank of India.
    • The structure of the Indian banking system.

    Students will be encouraged to reflect on their learning and its application in real-world scenarios.

  • Mod-01 Lec-14 Lecture 14
    Prof. Surajit Sinha

    This lecture explores the foundational concepts of money, including its definition, functions, and various forms. Students will learn how different types of money, such as commodity money and fiat money, have evolved over time. The lecture also delves into the significance of money in economic transactions and how it facilitates trade by eliminating the limitations of the barter system. This session sets the stage for understanding more complex financial systems by emphasizing money's role in both micro and macroeconomic contexts.

  • Mod-01 Lec-15 Lecture 15
    Prof. Surajit Sinha

    This lecture focuses on the money supply process in India. Students will gain insights into the definitions and importance of Indian monetary aggregates and how they are measured. The session covers the calculation and significance of the money multiplier, explaining how it impacts the economy. Additionally, students will learn about the sources of high-powered money in India, providing a comprehensive understanding of how money supply influences inflation and economic growth.

  • Mod-01 Lec-16 Lecture 16
    Prof. Surajit Sinha

    This lecture provides an in-depth examination of Indian money market instruments. Students will explore various financial instruments such as Treasury Bills, Commercial Papers, and Certificates of Deposit. The lecture explains the functions of these instruments within the money market and their importance for liquidity management. Additionally, it covers the roles of different financial institutions in the money market, enabling students to understand the mechanics of short-term borrowing and lending.

  • Mod-01 Lec-17 Lecture 17
    Prof. Surajit Sinha

    This module delves into the functions of the Reserve Bank of India (RBI). Students will explore both traditional and non-traditional monetary policy instruments employed by the RBI. Key topics include the liquidity adjustment facility, open market operations, and reserve requirements. The lecture provides an understanding of how these mechanisms are used to control inflation, stabilize the currency, and influence the availability of credit, thus maintaining economic stability.

  • Mod-01 Lec-18 Lecture 18
    Prof. Surajit Sinha

    This module offers an overview of the Indian banking system. Students will gain insights into the structure and functions of commercial and co-operative banks. The lecture covers the historical evolution, regulatory environment, and the roles these banks play in economic development. Key topics include credit creation, financial inclusion, and risk management practices. This module helps students understand the complexities and challenges faced by the banking sector in India.

  • Mod-01 Lec-19 Lecture 19
    Prof. Surajit Sinha

    This lecture continues the exploration of the Indian banking system with a focus on recent developments and trends in banking technology. Students will learn about digital banking innovations, such as online banking, mobile payments, and blockchain technology. The lecture discusses how these technologies are transforming customer experiences and enabling banks to offer more efficient and secure services. Additionally, the session examines challenges such as cybersecurity risks and regulatory compliance in the digital age.

  • Mod-01 Lec-20 Lecture 20
    Prof. Surajit Sinha

    This lecture provides a comprehensive study of interest rates in the Indian financial market. Students will learn about the factors influencing interest rates and their impact on economic activities. The session covers different types of interest rates, such as repo rates and reverse repo rates, and their significance in monetary policy. Additionally, students will explore the relationship between interest rates and inflation, investments, and savings, gaining a clear understanding of how interest rates affect the broader economy.

  • Mod-01 Lec-21 Lecture 21
    Prof. Surajit Sinha

    This lecture examines the role of financial intermediaries in the Indian economy. Students will explore how these institutions facilitate the flow of funds between savers and borrowers, promoting economic growth. The session covers various types of financial intermediaries, including banks, insurance companies, and mutual funds, and their functions. Additionally, the lecture discusses the regulatory framework governing these intermediaries and the challenges they face in a rapidly changing financial landscape.

  • Mod-01 Lec-22 Lecture 22
    Prof. Surajit Sinha

    This module explores the concepts of risk and return in the context of the Indian financial market. Students will learn about different types of financial risks, such as credit risk, market risk, and operational risk, and how they impact investment decisions. The lecture discusses methods for assessing and managing these risks, including diversification and hedging strategies. Emphasis is placed on understanding the trade-off between risk and return, enabling students to make informed investment choices.

  • Mod-01 Lec-23 Lecture 23
    Prof. Surajit Sinha

    This lecture introduces students to the concept of financial markets and their role in the economy. Students will explore the structure and functions of financial markets, including the stock market, bond market, and derivatives market. The session covers the importance of financial markets in capital formation, risk management, and price discovery. Additionally, students will learn about the regulatory environment governing these markets and the impact of global financial trends on domestic markets.

  • Mod-01 Lec-24 Lecture 24
    Prof. Surajit Sinha

    This module covers the basics of international finance, focusing on India's role in the global financial system. Students will learn about exchange rates, balance of payments, and foreign exchange markets. The lecture discusses the impact of global economic events on India's economy and the importance of international financial institutions, such as the International Monetary Fund (IMF) and the World Bank. Students will gain an understanding of how international finance influences domestic economic policies and growth.

  • Mod-01 Lec-25 Lecture 25
    Prof. Surajit Sinha

    This lecture delves into the principles of corporate finance and investment strategies. Students will explore key concepts such as capital budgeting, financial analysis, and valuation techniques. The session covers strategic investment decisions, risk assessment, and the use of financial instruments to achieve corporate objectives. Additionally, students will learn about the role of financial managers in optimizing capital structure and enhancing shareholder value, preparing them for real-world financial decision-making.

  • Mod-01 Lec-26 Lecture 26
    Prof. Surajit Sinha

    This module provides an overview of financial regulations and compliance in India. Students will learn about the legal framework governing financial institutions and markets, including key regulations and regulatory bodies like the Securities and Exchange Board of India (SEBI) and the RBI. The lecture discusses the importance of compliance in maintaining market integrity and protecting investor interests. Students will also explore recent regulatory developments and their implications for the financial sector.

  • Mod-01 Lec-27 Lecture 27
    Prof. Surajit Sinha

    This module delves into the fundamental aspects of money, defining its essential functions and exploring the different types of money that exist. Students will learn about:

    • The primary functions of money in an economy.
    • Types of money including fiat and commodity money.
    • The importance of interest rates and how they affect economic activities.

    By the end of this module, participants will have a solid understanding of how money operates within the Indian context and its significance in everyday transactions.

  • Mod-01 Lec-28 Lecture 28
    Prof. Surajit Sinha

    Module 2 focuses on the money supply process in India, providing insights into the various monetary aggregates that define the economy's liquidity. Key topics include:

    • Definitions and components of different monetary aggregates.
    • The role of money multipliers in the banking system.
    • Sources of high-powered money and how they influence the economy.

    This module equips students with the tools to analyze the money supply dynamics and understand their implications on inflation and economic growth.

  • Mod-01 Lec-29 Lecture 29
    Prof. Surajit Sinha

    This module provides a comprehensive overview of the various instruments available in the Indian money market. Participants will learn about:

    • The structure and functions of the money market.
    • Different types of money market instruments such as treasury bills, commercial papers, and certificates of deposit.
    • The role of these instruments in managing liquidity and short-term financing.

    By the end of this module, learners will be equipped to navigate the money market and understand its impact on the broader economy.

  • Mod-01 Lec-30 Lecture 30
    Prof. Surajit Sinha

    In this module, the focus is on the Reserve Bank of India (RBI) and its multifaceted role in the Indian economy. Key aspects covered include:

    • The traditional functions of the RBI as the central bank.
    • Non-traditional monetary policy instruments employed by the RBI.
    • Liquidity Adjustment Mechanisms and their significance in monetary policy.

    This in-depth look at the RBI will help students understand how the central bank influences economic stability and growth through its policies.

  • Mod-01 Lec-31 Lecture 31
    Prof. Surajit Sinha

    The final module provides a detailed overview of the Indian banking system, focusing on its structure and various types of banks. Topics include:

    • The distinction between commercial and co-operative banks.
    • The role these banks play in the economy.
    • The regulatory framework governing the banking system in India.

    By the end of this module, students will comprehend the operational dynamics of the Indian banking sector and its contribution to economic development.

  • Mod-01 Lec-32 Lecture 32
    Prof. Surajit Sinha

    Lecture 27 will cover advanced topics in monetary policy, focusing on the implications of interest rate changes on the economy. Students will analyze:

    • The transmission mechanism of monetary policy.
    • Case studies of interest rate adjustments in India.
    • The relationship between interest rates and inflation.

    This lecture aims to deepen students' understanding of monetary policy's real-world applications and outcomes.

  • Mod-01 Lec-33 Lecture 33
    Prof. Surajit Sinha

    In Lecture 28, participants will explore the concept of liquidity and its critical role in financial markets. Key points covered include:

    • The definition and importance of liquidity in banking.
    • Liquidity management strategies used by banks.
    • Factors affecting liquidity in the financial system.

    This lecture will enable students to appreciate the nuances of liquidity and its influence on economic stability.

  • Mod-01 Lec-34 Lecture 34
    Prof. Surajit Sinha

    Lecture 29 will cover the role of commercial banks in the Indian economy, focusing on their functions and contributions. Participants will learn about:

    • The primary functions of commercial banks.
    • The impact of commercial banking on economic development.
    • Challenges faced by commercial banks in India.

    This lecture is designed to provide a comprehensive understanding of the banking sector's operational role in the economy.

  • Mod-01 Lec-35 Lecture 35
    Prof. Surajit Sinha

    In Lecture 30, the focus will shift to co-operative banks, exploring their unique role and significance in the Indian banking landscape. Topics will include:

    • The structure and purpose of co-operative banks.
    • The differences between co-operative banks and commercial banks.
    • The contribution of co-operative banks to rural development.

    This lecture aims to highlight the importance of co-operative banks in promoting financial inclusion and supporting local economies.

  • Mod-01 Lec-36 Lecture 36
    Prof. Surajit Sinha

    Lecture 31 will introduce students to the regulatory framework governing the Indian banking sector. Key topics will include:

    • The role of the Reserve Bank of India as a regulator.
    • Key regulations affecting banks in India.
    • The impact of regulations on banking operations.

    By the end of this lecture, students will gain insights into the regulatory environment and its significance in ensuring financial stability.

  • Mod-01 Lec-37 Lecture 37
    Prof. Surajit Sinha

    Lecture 32 will delve into the importance of banking technology in modern banking operations. Topics will include:

    • The evolution of banking technology in India.
    • Impact of digital banking on customer experience.
    • Challenges and opportunities presented by banking technology.

    This lecture will provide a comprehensive overview of how technology is shaping the future of banking in India.

  • Mod-01 Lec-38 Lecture 38
    Prof. Surajit Sinha

    In Lecture 33, participants will analyze case studies of recent developments in the Indian banking sector. Key points include:

    • Notable events and their implications for the banking system.
    • The response of banks to economic challenges.
    • Lessons learned from recent banking crises.

    This lecture aims to provide practical insights into the dynamic nature of the banking sector and the importance of adaptability.

  • Mod-01 Lec-39 Lecture 39
    Prof. Surajit Sinha

    Lecture 34 will focus on emerging trends in the Indian banking industry, discussing topics such as:

    • Innovations in financial products and services.
    • The rise of fintech companies and their impact on traditional banking.
    • Future challenges and opportunities for banks in India.

    This lecture aims to prepare students for the future landscape of banking and the evolving role of financial institutions.

  • Mod-01 Lec-40 Lecture 40
    Prof. Surajit Sinha

    In this module, we delve into the foundational concepts of money and its multifaceted roles within the Indian economy. We explore the various types of money, from fiat to digital, and examine how these different forms affect economic transactions and savings. The discussion extends to interest rates, their determinants, and their impact on both consumers and businesses. We use a combination of theoretical frameworks and real-world examples to illustrate the dynamic nature of money. Key questions include: How do interest rates influence economic activity? What are the implications of different types of money on everyday transactions? By the end of this module, students will have a solid understanding of the basic principles governing money and interest rates in India.

    • Functions of money
    • Types of money: Fiat, digital, etc.
    • Impact of interest rates