BACHELOR OF BUSINESS ADMINISTRATION

MANAGEMENT ACCOUNTING ASSIGNMENT

CLASS : FY-E
BATCH : 2022-2025
SEMESTER: 2
S.NO. NAME ROLL NO.
1) Aarushi Thukral 1403
2) Aamani Jha 1410
3) Khushpreet kaur 1441
4) Sanchit Ghuge 1465
5) Urvi Garg 1481

CONTENT OF THE ASSIGNMENT:

 Introduction to Indian Financial System
 Pick any one out of 4 components of Indian Financial System. The 4 components are Financial
Institutions, Financial Markets, Financial Instruments and Financial Services.
 Write introduction, overview, functioning and examples of that component.
 Take any case study/ event/ research article/ news article related to that aspect of financial system
and write a summary in your own words.
 INDIAN FINANCIAL SYSTEM

INTRODUCTION OF INDIAN FINANCIAL SYSTEM

The financial system enables lenders and borrowers to exchange funds. India has a financial system
that is controlled by independent regulators in the sectors of insurance, banking, capital markets and
various services sectors. Thus, a financial system can be said to play a significant role in the
economic growth of a country by mobilizing the surplus funds and utilizing them effectively for
productive purposes.

FEATURES OF INDIAN FINANCIAL SYSTEM:

 It plays a vital role in economic development of a country.
 It encourages both savings and investment.
 It links savers and investors.
 It helps in capital formation.
 It helps in allocation of risk.
 It facilitates expansion of financial markets.

COMPONENTS/ CONSTITUENTS OF INDIAN FINANCIAL SYSTEM

The following are the four major components that comprise the Indian Financial System:
1. Financial Institutions
2. Financial Markets
3. Financial Instruments/ Assets/ Securities
4. Financial Services.

FINANCIAL INSTITUTIONS
Financial institutions are the intermediaries who facilitate smooth functioning of the financial
system by making investors and borrowers meet. They mobilize savings of the surplus units and
allocate them in productive activities promising a better rate of return. Financial institutions also
provide services to entities (individual, business, government) seeking advice on various issue
ranging from restructuring to diversification plans. They provide whole range of services to the
entities who want to raise funds from the markets or elsewhere.
Financial institutions are also termed as financial intermediaries because they act as middle
between savers by accumulating Funds them and borrowers by lending these fund.
It is also act as intermediaries because they accept deposits from a set of customers (savers lend
these funds to another set of customers (borrowers). Like - wise investing institutions such ICCIC,
mutual funds also accumulate savings and lend these to borrowers, thus perform the role of
financial intermediaries.
TYPES OF FINANCIAL INSTITUTIONS
Financial institutions can be classified into two categories:
 A. Banking Institutions
B. Non - Banking Financial Institutions
A. BANKING INSTITUTIONS (Reserve Bank of India)
Indian banking industry is subject to the control of the Central Bank. The RBI as the apex
institution organises, runs, supervises, regulates and develops the monetary system and the
financial system of the country. The main legislation governing commercial banks in India is the
Banking Regulation Act, 1949.
The Indian banking institutions can be broadly classified into two categories:
1. Organised Sector 2. Unorganised Sector
1. Organised Sector
The organised banking sector consists of commercial banks, cooperative banks and the regional
rural banks.
(a) COMMERCIAL BANKS: The commercial banks may be scheduled banks or non – scheduled
banks. At present only one bank is a non - scheduled hank. All other banks are schedule banks.
The commercial banks consist of 27 public sector banks, private sector banks and foreign banks.
Prior to 1969, all major banks with the exception of State Bank of India in the private sector. An
important step towards public sector banking was taken in July 1969, when 14 major private
banks with a deposit base of 50 crores or more were nationalised. Later in 1980 another 6 were
nationalised bringing up the total number banks nationalised to twenty.
(b) CO-OPERATIVE BANKS: An important segment of the organized sector of Indian banking is
the co-operative banking. The segment is represented by a group of societies registered under the
Acts of the states relating to cooperative societies. In fact, co-operative societies may be credit
societies or non-credit societies.
Different types of co-operative credit societies are operating in Indian economy. These institutions
can be classified into two broad categories: (a) Rural credit societies which are primary
agriculture, (b) Urban credit societies which are primarily non-agriculture.
For the purpose of agriculture credit there are different co-operative credit institutions to meet
different kinds of needs.
(c) REGIONAL RURAL BANKS (RRBS): Regional Rural Banks were set by the state
government and sponsoring commercial banks with the objective of developing the rural
economy. Regional rural banks provide banking services and credit to small farmers, small
entrepreneurs in the rural areas. The regional rural banks were set up with a view to provide credit
facilities to weaker sections. They constitute an important part of the rural financial architecture in
India. There were 196 RRBs at the end of June 2002, as compares to 107 in 1981 and 6 in 1975.
(d) FOREIGN BANKS: Foreign banks have been in India from British days. Foreign banks as
banks that have branches in the other countries and main Head Quarter in the Home Country.
With the deregulation (Elimination of Government Authority) in 1993, a number of foreign banks
are entering India. Foreign Banks are: Citi Bank. Bank of Ceylon.
2. Unorganised Sector
In the unorganised banking sector are the Indigenous Bankers, Money Lenders.
1. INDIGENOUS BANKERS
Indigenous Bankers are private firms or individual who operate as banks and as such both receive
deposits and given loans. Like bankers, they also financial intermediaries. They should be
 distinguished professional money lenders whose primary business is not banking and money
lending. The indigenous banks are trading with the Hundies, Commercial Paper.
2. MONEY LENDERS:
Money lenders depend entirely to on their one funds. Money Lenders may be rural or urban,
professional or non-professional. They include large number of farmer, merchants, traders. Their
operations are entirely unregulated. They charge very high rate of interest.
B. NON – BANKING INSTITUTIONS
The non – banking institutions may be categorized broadly into two groups:
(a) Organised Non – Banking Financial Institutions.
(b) Unorganised Non – Banking Financial Institutions.

(a) Organised Non – Banking Financial Institutions

The organised non - banking financial institutions include:
1. DEVELOPMENT FINANCE INSTITUTIONS
These include: The institutions like IDBT, ICICI, IFCI, IIBI, IRDC at all India level. The
State Finance Corporations (SFCs), State Industrial Development Corporations (SIDCs) at the
state level. Agriculture Development Finance Institutions as NABARD,LDBS etc.
Development banks provide medium and long term finance to the corporate and industrial
sector and also take up promotional activities for economic development

2. INVESTMENT INSTITUTIONS
These include those financial institutions which mobilise savings at the public at large
through various schemes and invest these funds in corporate and government securities.
These include LIC, GIC, LTT, and mutual funds. The non - banking financial institutions in
the organised sector) have been discussed at length in detail in separate chapters of this book.
(b) Unorganised Non - Banking Financial Institutions
The unorganised non - banking financial institutions include number of non - banking financial
companies (NBFCs) providing whole range of financial services. These include hire - purchase
300 consumer finance companies, leasing companies, housing finance companies, factoring
companies, Credit rating agencies, merchant banking companies etc. NBFCs mobilise public
funds and provide loanable funds.
How a leading bank monitors their critical back office applications with Applications
Manager
ManageEngine Applications Manager in Financial Domain
ABSTRACT
A leading bank with thousands of branch offices deployed Applications Manager to monitor their
back office applications used in different countries. Some of the applications they have like Loan
processing, account creations and approvals, B2B transactions are custom built web applications.
These applications form an important part of the banks functioning and are used by 1000s of
employees of the bank. These N Tiered applications deployed on popular J2EE Servers need to be
fast (good response times) enough to ensure faster customer handling and better employee
productivity. This Business Case will enable you to visualize how ManageEngine Applications
Manager is used in by a financial institution to ensure better end user satisfaction. The emphasis
was on monitoring the web applications used for their back office work processing.

CUSTOMER ENVIRONMENT
Customer Environment: The operations of the financial institution are spread across the world.
They have two primary data centers – one in UK and another in Australia. Their servers primarily
consist of UNIX, Windows, Linux and Solaris flavors. They have lot of critical web applications
hosted on a WebSphere Application Server that uses Oracle as the backend. They also have other
custom Java applications that perform specific tasks that use MS SQL Server and other databases.
The two data centers have strict firewall rules that do not allow too many ports to be opened. Hence
they decided to deploy ManageEngine Applications Manager Enterprise Edition – which supports a
distributed architecture. They deployed Applications Manager - Managed Server in each of the
locations. They then ran the central server, which is an Applications Manager Admin Server in UK.

Evaluation and Team Setup:

The Manager of IT, Mr. Daniel Carter guided the setup of the monitoring tool. He decided on the
policies and set up guidelines that helped the rest of the Application Support team. The
Applications Support Team is located in Europe. They have lots of mission critical business
applications which help the financial institution run their operations in Europe and rest of the world.
The primary job of the Applications Support Team is to ensure that the applications and application
infrastructure components are running smoothly. Applications Support Team manages the
application servers, servers and databases for their internal business services teams. For them, these
internal application teams are customers. They support hosting of business applications in various
data centers and ensure that they meet the predefined SLAs for uptime and application
performance. The team comprises of Operators and Administrators who are experts in their domain.
following are some of the key stakeholders:
• WebSphere Administrators
• Oracle DBAs
• Server specialists
• Line of Business Managers

How ManageEngine Applications Manager is used?

Their policy is to be proactive and not reactive. They set Thresholds and Alerts and track Reports to
ensure that all applications, especially their WebSphere Servers are functioning as per the
requirement. Mr. Daniel Carter ensures that line of business managers (the managers of various
business units like Loan Processing, Credit Cards etc.) are happy by ensuring that the IT resources
maintained by his team are running with good performance. He sends reports generated by
ManageEngine Applications Manager, to Business Managers on a weekly basis.

Business Service Centric View to Management: Loan Processing Application

Let us explore the Loan processing Application of this bank in detail. The ultimate concern would
be to have maximum uptime for the loan processing application. The top level SLA would be to
maintain 99.95% uptime for this application. 3 This Business Application comprises of z
Application Servers – Clustered WebSphere z Databases – Clustered Oracle z Servers – Solaris,
Linux clusters z Web Servers Each of these resources can be grouped as Sub-Groups for effective
management. Dependencies are then set out for the various sub groups to ensure load balancing is
factored in while deciding application uptime. Network Devices are grouped as a separate group.
Similarly slave and master databases are put into a group of its own, with rules that if any one is up,
the database is still up. However alert emails get sent out to operations to take care of the database
that is now offline. Additionally with alerting and fault management in place operators can be
notified when there is a problem. Operators will also be able to better appreciate the impact to the
business as they get alerts that inform them on what business services are impacted.
Each of these resources can be grouped as Sub-Groups for effective management. Dependencies are
then set out for the various sub groups to ensure load balancing is factored in while deciding
application uptime. Network Devices are grouped as a separate group. Similarly slave and master
databases are put into a group of its own, with rules that if any one is up, the database is still up.
However alert emails get sent out to operations to take care of the database that is now offline.
Additionally with alerting and fault management in place operators can be notified when there is a
problem. Operators will also be able to better appreciate the impact to the business as they get alerts
that inform them on what business services are impacted.
Many other financial institutions all over the world have also deployed ManageEngine Applications
Manager to take care of their monitoring requirements.