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RR INSTITUTIONS OF ADVANCED STUDIES PRESENTATION ON 3TH SEMESTER PROJECT REPORT A STUDY ON IMPACT OF FOREIGN CURRENCY FLUCTUATIONS ON INDIAN STOCK MARKET WITH REFERENCE TO AXIS BANK . MASTER OF BUSINESS ADMINISTRATION OF BANGALORE UNIVERSITY 2024 DR.JANARDHAN G SHETTY PROF. DIVYA K MURTHY PRINCIPAL HEAD OF THE DEPARTMENT UNDER THE GUIDANCE OF SANTHOSH K Ms. SHRUTHI MURTHY P03HY22M0150 54 ASSISTANT PROFESSOR RRIAS RR INSTITUTIONS OF ADVANCED STUDIES
INTRODUCTION Gold Monetization Scheme is a scheme of the Government of India which was
announced in the budget of 2015–16. This scheme has been started in place of Gold Deposit Scheme . This scheme is applicable from 5 November 2015. The objective of this scheme is to reduce the import of gold in India by using about 20,000 tonesof gold lying idle with households and other institutions for productive purposes. Gold adaptation conspire is an administration drive intended to support people, families, and foundations to store their inactive gold possessions with approved
banks. Under the plan, the stored gold is put to useful use by loaning it to gem
dealers, and thus, the contributors procure interest on their gold possessions. The plan offers an alluring option in contrast to keeping gold inactive in storage
spaces or safes and permits people to acquire profits from their gold speculations
without selling the valuable metal.
Company Name: Axis Bank Limited Founded: Axis Bank was founded in 1993 as UTI Bank and later rebranded as Axis Bank in 2007. Headquarters: Mumbai, Maharashtra, India. Key People: • Amitabh Chaudhry (MD & CEO) • Rajesh Dahiya (Deputy Managing Director) • Puneet Sharma (CFO) Industry: Banking, Financial Services Overview: Axis Bank is one of the leading private segment banks in India, offering a wide variety of banking and financial products and services to retail, corporate, and institutional clients. With a attention on customer-centricity, innovation, and technological excellence, Axis Bank has founded itself as a protuberant player in the Indian banking industry.
STATEMENT OF THE PROBLEM The Gold Monetization Scheme (GMS) implemented in India is a significant policy initiative aimed at mobilizing the substantial gold reserves held by households and institutions and integrating them into the formal financial system. However, despite its implementation, there is a notable gap in understanding the scheme's true impact on both the banking sector and the broader Indian economy. The lack of comprehensive analysis leaves several crucial questions unanswered: How have the GMS influenced the liquidity position of banks? What are its implications for deposit mobilization and lending activities? Furthermore, what macroeconomic effects does the scheme entail, particularly concerning gold imports, the current account deficit, and financial stability? Addressing these questions is crucial for policymakers and stakeholders seeking to evaluate the effectiveness of the GMS and its implications for India's economic landscape. Thus, this study endeavors to delve into the nuanced dynamics of the Gold Monetization Scheme, offering insights that can inform strategic decision making andpolicy formulation in the banking sector and the Indian economy at large.
SCOPE OF THE STUDY Analyzing the involvement of banks in the GMS, including the number of participating banks, their geographic distribution, and the types of products and services offered under the scheme. Assessing the volume of gold mobilized through the GMS, including the types of gold assets deposited (e.g., jewelry, bullion), the geographical distribution of deposits, and trends over time. Estimating the revenue generated for the government through the GMS, including interest income earned on gold deposits, potential tax revenues, and contributions to foreign exchange reserves. Examining the impact of the GMS on the gold market, including changes in gold prices, supply demand dynamics, and the regulation of the informal gold market.
OBJECTIVE OF THE STUDY ➢ Assessing how GMS affects access to financial services, especially for those who traditionally rely on gold as a store of wealth but may not have access to formal banking channels. ➢ Evaluating the revenue generation potential for the government through GMS, including any tax implications and its contribution to foreign exchange reserves. ➢ Analyzing the implications of GMS on monetary policy, including its impact on inflation, interest rates, and the overall effectiveness of monetary tools. ➢ Examining how GMS affects the dynamics of the gold market, including prices, demand supply balance, and international trade.
RESEARCH METHODOLOGY Data source : - The data in this study are secondary. Both internal and externally, data are gathered.Data from within the information comes from annual bank reports, which include information like financial performance and conduct structured interviews with key informants, such as managers to gain qualitative insights and complement survey data. Analytical research : - In Scientific Exploration, the specialist needs to utilize facts or information really open, and look at them to make an evaluation of the gathered data. It incorporates the all around assessment and appraisal of open information attempting to explain complex wonder. At the end of the day, it utilizes the accessible data to assess the basic issues and under goes inside and out study.
FINDINGS • This analysis indicates a robust increase in the price of gold over the past decade, reflecting increasing demand, inflation, or other economic factors affecting gold prices in India. • It showcased a significant potential for mobilizing idle gold assets within the country, thereby reducing reliance on imports and enhancing financial inclusion. Secondly, the scheme’s success heavily depended on effective awareness campaigns to educate the populace about its benefits and procedures. • the research highlighted the importance of offering competitive interest rates and flexible redemption options to attract participants.
SUGGESTIONS 1. Axis Bank can launch educational campaigns to raise awareness about the benefits of the GMS. This can include workshops, seminars, and digital content to inform customers about the scheme’s advantages and the process of participating. 2 .Introduce incentives or rewards for customers who participate in the GMS. This can include bonus interest rates or additional benefits for long-term depositors. 3 . Simplify the procedures for customers to deposit their gold with Axis Bank. This can involve streamlining documentation requirements and providing easy tounderstand instructions for initiating deposits
CONCLUSION In conclusion, the analysis of the gold monetization scheme's impact on the Indian banking sector and economy, with a special focus on Axis Bank, elucidates several key findings. The scheme presents a significant opportunity for banks like Axis Bank to diversify their product offerings, enhance liquidity, and strengthen customer relationships. By mobilizing idle gold assets, banks can tap into a vast pool of wealth that was previously dormant, thereby bolstering their balancesheets and enabling more efficient capital allocation. Moreover, the scheme has the potential to reduce India's reliance on gold imports, positively impacting the current account deficit and foreign exchange reserves.