Unit - 1 

MONEY: Concept, Functions, Measurement, Theories of Money Supply Determination 

1. Baye and Jansen Chapter 1 (p. 2 – 27); Chapter 14 (p. 465-486)
2. N Jadhav Chapter 2 , section 2.1, (p. 18 –25); Section 2.3 (p. 37-45); Annexure 2.1
3. RBI Report Money Supply Analytics and Methodology of Compilation 1998 chapter 2 (p. 11-17)

Unit - 2

FINANCIAL INSTITUTIONS, MARKETS, INSTRUMENTS AND FINANCIAL INNOVATIONS

a) Role of Financial Markets and Institutions; problems of asymmetric information – adverse selection and moral hazard, financial crisis
1. Mishkin& Eakins Chapter 15 (p. 369 – 396) 2. M Y Khan Chapter 1 (p.1.13-1.15) 3. Baye and Jansen Chapter 5 (p. 153-161)

b) Money and Capital Markets; Organization, Structure and Reforms in India; Role of Financial Derivatives and Other Innovations
1. M Y Khan Chapter 9(9.29-9.32) 2. Bhole Chapter 5 (p. 137-143) 3.Fabozzi et al Chapter26 (p. 496 -504) Chapter27 (p. 517-529) Chapter30 (p. 577 - 580)


Unit - 3

INTEREST RATES: Determination, Sources of interest rates differentials, Theories of term structure of interest rates ; interest rates in India

1. Baye & Jansen Chapter 10
2. RBI Report, October 4, 2017 ‘Report of the Internal Study Group to Review The Working of the Marginal Cost of Funds Based Lending Rate System’, Reserve Bank of India, September, 2017; Chapter 1(p. 1-2) and Chapter 2 (p. 5-7)

Unit - 4

BANKING SYSTEM:
a) Balance Sheet and Portfolio Management
b) Indian Banking System. Changing Role and Structure, Banking Sector Reforms

1. Sengupta andVardhan Non-performing Assets in Indian Banks, EPW, Vol. 52, Issue No. 12, 25 Mar, 2017, Money, Banking and Finance 2017
2. RBI Glossary, Master Circular - Prudential Norms on Capital Adequacy - Basel I Framework – 2012, July 2, 2012.
3. RBI Bulletin Oct 2012 Basel III in International and Indian Context by D.Subbarao Reprinted in Indian Financial Reforms edited by Uma Kapila

Unit - 5
CENTRAL BANKING AND MONETARY POLICY Functions, Balance Sheet Goals, Targets, Indicators and instruments of monetary control, monetary management in an open economy, current monetary policy of India

1. Baye & Jansen Chapter 19 (p. 666-687, 692-693, 697-705)
2. Jadhav Chapter 9 (section 9.3.4)
3.M.Y.Khan Chapter 9 (9.1 - 9.10, 9.12-9.13)
4. P. Dua Monetary Policy Framework in India, Indian Economic Review, Vol. 55, Issue 1, June 2020, Pages 117–154 https://link.springer.com/article/10.1007/s41775-020-00085-3
5.Annual Report of RBI 2015 -16 Chapter 3: Box III.1 and III.2 (p. 44, p.50)
6. Annual Report of RBI 2020 -21 Chapter 3: Monetary Policy Operations
7. Monetary Policy https://www.rbi.org.in/scripts/FS_Overview.aspx?fn=2752

Readings
1.F.S.Mishkin and S.G. Eakins Financial Markets and Institutions, Pearson Education,6 th Edition,2011
2.F.J .Fabozzi, F.Modigliani, Foundations of Financial Markets and Institutions
3. F. J Jones,M.G Ferri Pearson Education, 3rd Edition , 2009
4.M.R.Baye and D.W.Jansen Money, Banking and Financial Markets AITBS,1996
5.L.M .Bhole and J.Mahakud Financial Institutions and Markets, Tata McGraw Hill, 5th Edition,2011
6.M.Y.Khan Indian Financial System, Tata McGraw Hill,7thEdition 2011
7. N. Jadhav Monetary Policy,Financial Stability and Central Banking in India, Macmillan,2006
8.P. Dua Monetary Policy Framework in India, Indian Economic Review, Vol. 55, Issue 1, June 2020
9. RBI Report, October 4, 2017 ‘Report of the Internal Study Group to Review The Working of the Marginal Cost of Funds Based Lending Rate System’, Reserve Bank of India, September, 2017, https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=878
10.RBI Report of the Working Group:Money Supply Analytics and Methodology of Compilation,1998 Annual Report; Master Circular - Prudential Norms on Capital Adequacy - Basel I Framework – 2011;
11.RBI Annual Report; 2020-21 (latest).
12. R. Sengupta and H.Vardhan http://www.epw.in/journal/2017/12/money-bankingand-finance/non-performing-assets-indian-banks.html