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The **money** and **banking** system in India has evolved significantly since independence. The establishment of the **Reserve Bank of India** (RBI) in 1935 marked a pivotal moment in the regulation of the Indian banking system. Over the decades, various reforms were introduced to enhance the stability and efficiency of the financial sector.
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The Constitution of India provides the framework for the regulation of banking and finance under:
### Amendments
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Money serves three primary functions:
1. **Medium of Exchange**: Facilitates transactions.
2. **Unit of Account**: Measures value.
3. **Store of Value**: Retains purchasing power over time.
| Function | Description |
|-----------------|----------------------------------------------|
| Medium of Exchange | Used in trade and commerce |
| Unit of Account | Standard measure for pricing goods/services |
| Store of Value | Retains value over time for future use |
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### 1. Commercial Banks
### 2. Cooperative Banks
### 3. Development Banks
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### Functions
### Structure
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### Pradhan Mantri Jan Dhan Yojana
### Importance
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### Key Provisions
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### Regulation and Impact
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### NPA Management
### Significance
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Monetary Policy Framework (Article 47, RBI Act 1934)
Functions of Money (Medium of Exchange, Unit of Account, Store of Value)
Types of Banks (Commercial Banks, Co-operative Banks, Development Banks)
Reserve Bank of India (RBI) - Functions and Structure
Financial Inclusion (Pradhan Mantri Jan Dhan Yojana)
Banking Regulation Act, 1949 - Key Provisions
Non-Banking Financial Companies (NBFCs) - Regulation and Impact
Recent Banking Reforms (NPA Management, Insolvency and Bankruptcy Code)
M - Medium of Exchange, O - Object of Value, N - Number of Units, E - Economic Unit, Y - Yielding Returns
B - Borrowing, A - Assets, N - Net worth, K - Keeping funds safe
R - Regulator, B - Banker's Bank, I - Issuer of Currency