🏦 Chapter 05 · Indian Economy · Financial System

Banking System & RBI

Functions of RBI, commercial banks, CRR, SLR, repo rate, monetary policy tools — explained with real examples for UPSC & PSC exams.

📅 UPSC Prelims📋 APPSC Group 1 & 2📋 TGPSC Group 1 & 2⏱️ ~55 min read🎯 Very High Weightage

Sub-Topics

Practice MCQs

PYQs

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Very High

✅ RBI — establishment, functions, structure

✅ Monetary policy tools — CRR, SLR, Repo, Reverse Repo

✅ Types of banks in India

✅ Nationalisation of banks (1969, 1980)

✅ Priority sector lending

✅ NPA — Non-Performing Assets

✅ Financial inclusion — Jan Dhan Yojana

✅ Digital payments — UPI, RTGS, NEFT

UPSC Prelims (2–3 Qs/year)APPSC Group 1 & 2TGPSC Group 1 & 2SSC CGL / CHSLState PSC Exams

📚 Chapter Sub-Topics — Click to Read

Topic 01

RBI — Establishment, Structure & Functions

RBI established 1935, nationalised 1949, Governor, functions — banker’s bank, lender of last resort, currency issuer.

Topic 02

Monetary Policy Tools — CRR, SLR, Repo Rate Explained

CRR, SLR, Repo Rate, Reverse Repo Rate, MSF, Bank Rate — all explained with simple examples of how they control inflation.

Topic 03

Types of Banks & Bank Nationalisation

Commercial banks, cooperative banks, RRBs, payment banks, small finance banks, and bank nationalisation (1969, 1980).

Topic 04

Priority Sector Lending & NPA

Priority sector categories, targets, Non-Performing Assets (NPA) problem, IBC 2016, and bank recapitalisation.

Topic 05

Financial Inclusion — Jan Dhan, MUDRA & Digital Payments

PMJDY, MUDRA loans, UPI, RTGS, NEFT, IMPS — India’s digital payment revolution and financial inclusion story.

Topic 06

Inflation, Deflation & Quick Revision

Types of inflation, WPI vs CPI, causes of inflation, RBI’s inflation targeting, and complete chapter revision.

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