Reserve Bank of India

Folks, today I am speaking in depth about the RBI and the functions of RBI in the market. I hope this explanation gives an insight about the Reserve Bank of India.
Reserve Bank of India is the main and core bank of India. It can be called the head that performs different roles of monitoring finance, regulating and controlling finance, guidance and promotion to all finance institutions in India. The RBI institution has come into existence in 1935 and is the core part of the whole functioning of Indian Government.
The operations of the RBI is expanding from time to time and is playing a crucial role in the developments of the country’s economic state with necessary policies, expansions, collaborations and agreements with different financial systems all over the world.
The primary function of RBI is to maintain monetary stability in the market so as to have a maximized profit for the trades. RBI also plays an integral part in the financial aspect of the national and social policies delivered by the government. Take care of the monetary policy and credit policy in the market so that the prices are stabilized.
One of the crucial roles played by RBI in the financial industry is to issue the currency in the market. The RBI is the sole institution which has authority to issue notes and coins which are authorized by Government of India. Next function of the RBI is that it acts as government’s banker. Roles and functions such as deposits, withdrawals of funds by cheques, and making payments as well as receipts. Often in banking world RBI is called the bank of the banks. This means that it is the apex body which takes care and monitors the functioning and credit control of the banks, nationalized banks and co-operative banks in India.
Hence, RBI is a very crucial blood line of the financial domain of Indian government.

Accounts and Finance

Now to begin with, many people have a mindset that finance and accounts are the same. According to many people these two fields belong to a same domain of knowledge. However, the fact persists that these two subjects are alotgether different and have got each area to be explored and learn in its own fashion.

To put the description in simple words, the whole functioning of an organization cannot start without finance. For an enterprise, finance is one the blood line which brings in monetary aspects which mobilize the operations and hence make the business move. However, we can have exceptions to this rule too. There are organizations who have made it successful and have started without and finance or capital.

When the organization takes a momentum, there are daily aspects of monetary mobilisation. Which simply means that there is money required for everything, right from purchase, procurement, transport, delivery, manufacturing, storage, power, safety, deployment and sale. Hence for each of this factor to be incorporated in the functioning of an organization, there are money transactions happening. It is very essential for an organization to have a written record of all the money transactions happening in the whole functioning of the business. This is the step where 'accounts' come into picture. This is the point where the role of 'Accounts' start.

Accounts are primarily the process of recording the daily transactions happening in the business. These transaction are both ways; it is income as well as expenditure record.

Now after putting in the records of all monetary transactions the company also needs a overall picture of all the transactions that have occured in the whole year. Hence at the end of the year, the organization reviews all the transactions and prepares some accounts which give a bird's eye view of all the monetary transactions happend in the whole year. And also they come to know the present situation of the assets and liabilities of the organization. These are called the 'final accounts' of the organization.

The 'finance' domain starts with going skin deep of all these transactions happening in the market. The finance asks question, "Why is this transaction done?", "What is the relation of the spend to the financial position of the company?". These are the areas where the finance domain really starts in the organization's transactions. The finance stream covers aspects like risk allocation, investment, sources of funds, shares, equity, debt, ratios, investment portfolios, market portfolios and many more. We will be looking at each topic in detail ahead, so that the concepts of each topic are covered more detailed.

Basics about Finance

Dear Readers,

I am sure you guys are surfing on the net to find out more depth and insights about the practical aspects of finance. The reason i am starting this blog is to bring about the knowledge about each topic of finance delivered to you in a crisp and practical form. Today many management aspirants are very keen to have a knowledge delivered to them. However, most of the times, all they find is loads and loads of information, and no knowledge as such.

This is my attempt to cover the main topics of finance and put them in front of you in a blog form so that you can refer to the postings when required.

Good luck.

Ameya Nisal