Presented by:

Anoop .K. Iype

Anoop K. A

Eldho .J .Valiyaveeden

Banking in India in the modern sense originated in

the last decades of the 18th century. The first banks were Bank of

Hindustan (1770-1829) and The General Bank of India, established

1786 and since defunct.

The largest bank, and the oldest still in existence,

is the State Bank of India, which originated in the Bank of Calcutta in

June 1806, which almost immediately became the Bank of Bengal.

This was one of the three presidency banks, the other two being

the Bank of Bombay and the Bank of Madras, all three of which were

established under charters from the British East India Company. The

three banks merged in 1921 to form the Imperial Bank of India,

which, upon India's independence, became the State Bank of India in

1955. For many years the presidency banks acted as quasi-central

banks, as did their successors, until the Reserve Bank of India was

established in 1935.

In 1969 the Indian government nationalized all

the major banks that it did not already own and these have

remained under government ownership. They are run under a

structure know as 'profit-making public sector undertaking'

(PSU) and are allowed to compete and operate as commercial

banks. The Indian banking sector is made up of four types of

banks, as well as the PSUs and the state banks, they have been

joined since the 1990s by new private commercial banks and a

number of foreign banks.

Banking in India was generally fairly mature in

terms of supply, product range and reach-even though reach in

rural India and to the poor still remains a challenge. The

government has developed initiatives to address this through

the State Bank of India expanding its branch network and

through the National Bank for Agriculture and Rural

Development with things like microfinance.

Established in 1935

Apex body of Indian banking system

Headquarters is in Mumbai

India’s monetary authority

Supervisor of financial system

Issuer of currency

Banker to bank

Banker to government

Maintains financial stability

SCHEDULED BANKS

Scheduled banks are those banks

whose name appears in the 2nd schedule of

Reserve Bank Of India Act, 1934.

NON-SCHEDULED BANKS

Non-scheduled banks are those

banks whose name doesn’t appear in the 2nd

schedule of Reserve Bank Of India Act, 1934.

BANKS UNDER SCHEDULED BANKS

COMMERCIAL BANKS

They are the banks mainly deal withcommercial banking operations likeacceptance of deposits and granting loans tothe public. They are mainly classified intofour:-

Scheduled banks

Commercial banks

Co-operative banks

1. PUBLIC SECTOR BANKS

Public sector banks are those banks which are

owned and controlled by the government . All the nationalized

banks and regional rural banks are public sector banks.

Examples:

State Bank of India and it’s 7 Subsidiaries.

Bank Of Baroda

Syndicate Bank

Vijaya Bank

Canara Bank etc.

2. PRIVATE SECTOR BANKS

These banks are owned and controlled by private

institutions or individuals and not by the government.

Examples:

South Indian Bank

ICICI

HDFC

Axis bank etc.

3. FOREIGN BANKS

These banks are formed and registered in foreign

countries and have their head office in foreign country.as far as

India is concerned, any bank registered outside India and have a

branch in India is a foreign bank.

Examples

Yes Bank

Citi Bank

HSBC

Deutsche Bank etc.

4. REGIONAL RURAL BANKS

Regional Rural Banks (RRBs) were established

by Regional Rural Banks Act, 1976 with a view to satisfy

the banking facilities and credit needs of the rural

people.

Examples;

Andhra Pradesh Grameena Vikas Bank,

Chaitanya Godavari Grameena Bank,

Kerala Grameen Bank etc.

B) CO-OPERATIVE BANKS

These are banks where co-operative societies thatare formed at a state or district level have a share of more than51%. these are primarily set-up for the purpose of services thefarming community or to aid in land or infrastructuredevelopment at the state or district level. They are of two:-

1. URBAN CO-OPERATIVE BANKS

The term Urban Co-operative Banks (UCBs), though notformally defined, refers to primary cooperative banks located inurban and semi-urban areas. These banks, till 1996, were allowedto lend money only for non-agricultural purposes. This distinctiondoes not hold today. These banks were traditionally centred aroundcommunities, localities work place groups. They essentially lent tosmall borrowers and businesses

examples:-

Maharashtra state apex co-operative bank

Karnataka state apex co-operative bank

2. STATE CO-OPERATIVE BANKS

State co-operative banks are the apex co-operative

institution in a state . They are federations of district co-

operative banks, and they monitor the activities of all co-

operative banks in the state.

Examples:-

Kerala state co-operative bank

Orissa state co-operative bank x

West Bengal state co-operative bank

3. National bank for agriculture and rural

development (NABARD)

National bank for agriculture and rural

development (NABARD) was established as an

apex bank that provides finance for agriculture

and rural development.