Name: Ketaki Dilip Nikam

Class: MBA –I Year

Specialisation: Finance
Roll No: 2019-20-098
Subject: Financial Management &
Banking Operations
Assignment No: 02
 1. Define Universal Banking

A universal bank is a bank that common the three main services of banking under one roof. The
three services are wholesale banking, retail banking and investment banking. A typical universal
bank also offers other services like insurance.

A universal bank is a financial Service Conglomerate combining retail, wholesale and

investment banking under one roof and reaping synergies between them.

2. State any four players in Indian Money Market.

The money market is a collective name given to various firms and institutions that deal in the
various grades of near money. There are participants in Indian Money Market. Some of them are

 Reserve Bank of India (RBI)

 Co-operative Banks
 Financial and Investment Institutes
 Corporates
 Mutual Funds

3. Define Derivatives and state different derivative instruments

Derivatives are financial instruments whose value is derived from another underlying asset.
similarly, derivative markets are markets that are based upon another markets which is known as
an underlying market.

Different derivative instruments are

 Forward
 Future
 Options
 Swaps
4. What do you mean by non-voting shares?

Non-voting equity shareholders have no voting right. However, they are treated as par with
ordinary shares as far as the entitlements to rights and bonus issues and preferential offer of
shares is concerned with a view to compensate them for depriving their voting rights.

However, non-voting shares provide bonus shares, due to which they get the advantage of capital
appreciation, whereas preference shareholders have no such advantage.

5. Differentiate between RTGS and IMPS.

The system of Real Time Gross Settlement (RTGS) provides fund transfer from one bank branch
to another on real time basis. but for transferring funds, we cannot depend upon RTGS as RTGS
available user or fund transfer during banking hours for transferring funds real time and 24*7*
365, IMPs facility is there, IMPS stand’s for Immediate Payment Services

Funds which are less than two lakhs are not allowed to transfer using RTGS Services. Where, in
case of IMPS, there is no maximum limit for the amount.
Q(2) Write a short note on-

a) Crypto Currency Market

 Crypto currency is a virtual/digitalwhich may be used, just like physical currency as a

medium of exchange Crypto-currency exchanges allow customers to trade crypto-
currencies to be assets or to trade between different digital currencies.
 Crypto currency markets are virtual markets where transactions related to crypto currency
takes places

Various types of crypto currency used are Bitcoin, Ripple, NEM, NEO, Monero, Lite coin, IOTA
etc.

. Advantages of crypto currency markets-

 Easy Access.
 Access by everyone in every market.
 Quick & easy payment.
 Eliminate the role of third party.
 Eliminate frauds.
 Universal recognition.

B) Role of SEBI in Capital Market

Securities and Exchange board of India(SEBI) had taken a number of measures with a view to
Safeguarding the interest at retail investor, and also bring some of them back to the market, who
had earlier left because of some exploitation by certain unscrupulous promoters they had in the
past.
Role of SEBI in primary market-

 Entry norms
 Promoters Contribution
 Disclosure
 Book building
 Allocation of shares
 Market intermediaries

Role of SEBI in Secondary market -

 Governing board
 Infrastructure
 settlement & clearing
 Debt market segment
 Price stabilization
 Oil listing
 Brokers & SEBI.
Q.3) " Commercial banks and special among the interrandiaries for the development of the
economy? Justify

Ans. Bank which engage themselves in all types banking activities such a deposits acceptance,
granting's of loans and advances, credit Creation, investment operations are known as
commercial banks. Commercial banks are special among the intermediaries for the development
of the economy. Because Commercial banks performs some functions which are very beneficial
for the development of the economy, such as-

(1) Financial assistance-

It may be short term assistance like cash credit overdraft, loans & advances or for long term like
term loan, venture capital etc.

(2) Agency services-

Commercial bank otter various agency services at reasonable rates in a swift and dependable
manner

(3) Attractive rate of interest-

Interest rates are quite attractive, which encourages the household savings to be brought to bank
Such funds are used for onward lending and investment

(4) General utility services-

It includes acting as referee, accepting bills of exchange and Providing locker facilities etc.

(5)Provides documentary proof-

Cheques can be used for withdrawal money and making payment to third parties. As the
withdrawal of money is on demand, there is no need for Business organization to maintain huge
cash balances with them cheque also act as a documentary evidence of the transactions.
(6)Smooth functioning of foreign trade

Transactions involved in foreign trade cannot be accomplished smoothly without availing

services of a bank.

Most of the commercial banks have separate divisions dealing exclusively in foreign exchange
matters.

Q(19) Elucidate the relationship between the primary and secondary market. Also, explain
functions of Ak Secondary markets in the orderly growth of capital formation.

Ans. Capital markets are divided into two types sketch which are primary and secondary
markats. 8oth primary and Secondary markets are different from each other various basis. But
they share some link between then. That relationship is given below-

(1) Liquidity-

Primary market cannot exist without the secondary market. It is the secondary market which
provides liquidity.

(2) Listing-

The stock exchanges control the primary markets through listing requirements. This help
maintaining law and order as Companies are required to comply with it.

(3) Marketability-

Primary market offers connection between the potential buyer and the company, Stock
exchanges promote investment in new issues by offering safety and liquidity.

(4) Complementary-

While primary and secondary markets differ in their Organisational structure and operators, but
both are for their overall robustness.
Function of Secondary Markets-

 To ensure liquidity of capital.

 To offer a ready and continue market for exchange of securities.
 To carry out evaluation of securities as Investors can determine truth value of their
holding by using the exercise quotation offered by stock exchanges.
 To make it easier for people with surplus funds to invest in securities.
 To be helpful in raising new capitals.
 To bring safety in dealings and avoid frauds by governing by securities Contract Act
1956.
 To permit trades of only listed securities.
 To clear the house of business information.

Q (5) According to RBI report, digital transaction volume has recorded a growth rate of
58.5% during 2018-13. In light of this, explain various banking electronic fund transfer
modes and it’s advantage.

(A) NEFT

National Electronic fund Transfer is the simplest and most liked form of money transfer from
one bank to another.

To make any NEET transaction, you just need two important pieces of information, firstly,
account number and the IFSC code of the destination account.

Advantages-

 effective and safe.

 cost effective system.
  strains involved in paper-based fund transfer are eliminated.

(B) RTGS

Real Time Gross settlement is almost similar to NEFT but minimum payment and how it credits
to the destination accord differs.

If you want to transfer more than 200000 you can use this. There is no maximum limit.

Advantages -

 Certainty of payment.
 Faster collection of funds.
 No settlement risks.

(c) IMPS-

Immediate Payment Services is an instant payment transfer device and it can be used anytime
IMPS can be simply defined as NEFT+ RTGS.

Advantages-

 Can be done using MAZD, Aadhaar number and mobile.

 Serves you debit and credit confirmation by SMS immediately.
 Safe, secure method
 Cost effective method.
 Available for 24x7 and even on holidays.
Additionally, one can use UPI (United payments Interface) as well as cheques. But, we have to
say that because of these electronic fund transfer modes, digital translations have recorded a
growth.