Subject Code:   HS4L001 Name:   Banking Theory and Practice L-T-P: 3-0-0 Credit: 3
Pre-requisite(s): Nil
Overview of the Financial System; Financial markets vs. financial intermediaries; The Functions and Form of Money.  M0, M1, M3, and Innovations in Money; The theory and evidence on demand for money, control of money supply and goals and tools of monetary policy; Interest rate determination;  Evolution of Banking sector in India and their scale of operation; Bank regulation and deregulation, and the linkage between money and economic activity.
The interaction between the financial sector and the aggregate economy, especially the interaction between the Banking  sector; The role of Reserve Bank of India and its monetary instruments; The Reseve Bank of India, Bond, and Money Markets ,  Money demand and supply, relationship of bond and money markets .

Text/Reference Books:
  1. Jadhav, N, Monetary Policy, Financial Stability and Central Banking in India, Macmillan India Ltd.
  2. Mishkin, F,  The Economics of Money, Banking and Financial Markets, Prentice Hall