Types of banks and role re4.1 BANKS.pptx

Banks

1. BANKS Nationalised Banks, Scheduled commercial bank , SFB, RRB’s cooperative bank

2. What is a Bank? It is a financial institution licensed to receive deposits and grants loans. How it is Different from other institutes? The non-banking financial institution which comes under the category of financial institutions cannot accept deposits into savings and demand deposit accounts. A bank is a financial institution which can accept deposits into various savings and demand deposit accounts, and give out loans . Reserve Bank of India ( RBI ) regulates their activities as per the Banking Regulation Act 1949. 

3. Evolution of Banks It started with merchants making grain loans to farmers and traders while carrying goods between cities. The banking industry has evolved from a simplistic barter system and gift economies of earlier times to modern complex, globalized, technology-driven, and internet-based e-banking model .

4. Nationalisation of Bank The Imperial Bank of India was nationalized in 1955 and was named SBI(currently the largest public sector bank ). 7 Subsidiaries of SBI were nationalized in 1959 and later merged With SBI in 2017. 14 Banks were nationalized in 1969. (Allahabad Bank, Bank of India, Bank of Baroda, Bank of Maharashtra,Central Bank of India , Canara Bank,Dena Bank,Indian Overseas Bank,Indian Bank,Punjab National Bank,Syndicate Bank,Union Bank of India ,United Bank of India,UCO Bank )

5. Nationalisation of Bank 8 more banks were nationalised in 1980. (Andhra Bank, Corporation Bank,New Bank of India ,Oriental Bank of Comm,Punjab & Sind Bank , Vijaya Bank.

6. Liberalisation Period The Government of India decided to set up a committee under the leadership of Shri. M Narasimham to mange the various reforms in the Indian Banking industry. The Biggest development was the introduction of Private sectors Banks in India. RBI gave 10 license to private sectors bank. Global Trust Bank ICICI BANK HDFC BANK AXIS BANK BANK OF PUNJAB INDUSIND BANK CENTURION BANK IDBI BANK TIMES BANK DEVELOPMENT CREDIT BANK

7. Types of Banks Central Bank Commercial Bank Development Bank Cooperative Bank Investment Banks Agriculture Banks International banks

8. Central Bank Central Bank is the supreme monetary institution of the country . This Bank is the pivot of the entire banking system of country It is generally set up by the government of the country to undertake central banking functions in the country. Reserve Bank of India is the central bank of our country

9. Commercial Banks Commercial banks are those banks which perform all kinds of ordinary banking business such as accepting deposits , advancing loans etc. Some of the commercial banks in India are: State Bank of India Punjab National Bank Bank of India

10. Commercial Banks Public Sector Banks where the major/full stake in the banks are held by the Government. By default the minimum 51% shares would be kept by the Government of India, and the management control of these nationalized banks is only with Central Government. Following banks are included in the category of Public Sector Banks. (a) State Bank of India and its Associate Banks (b) Nationalised Banks (c) Regional Rural Banks (d) IDBI Bank

11. Commercial banks Private Sector Banks The major stakeholders in the private sector banks are individuals and corporate. Private sector banks have been rapidly increasing their presence in the recent times and offering a variety of newer services to the customers and posing a stiff competition to the Few Public sector banks are HDFC,AXIS Bank, ICICI Bank etc.

12. Commercial Banks Foreign Banks Foreign banks have their registered offices outside India, and through their branches they operate in India. Foreign banks have their registered offices outside India, and through their branches they operate in India. Foreign banks have to adhere to all local laws as well as guidelines and directives of Indian Regulators. Exchange banks are those Banks which are primarily engaged in transactions involving foreign exchange These are also known as Exchange Banks and specialised in finacing foreign trade

13. Cooperative Banks Co-operative banks refers to those groups of institutions which are organized on the principles of cooperation. Cooperative Banks are set up under the Co-operative societies act The banks are engaged in ordinary banking business accepting deposits of money from the public and granting loans to the needy borrowers These cooperative banks cater to the needs of agriculture, retail trade, small and medium industry and self-employed, businessmen usually in urban and rural areas.

14. Development Banks Development Banks are specialised multipurpose financial institutions. These banks provide medium and long term finance , promote entrepreneurship etc. Some of the development banks of india are : Industrial Development Bank of India(IDBI) National Bank of Agricultural and Rural Development (NABARD) Industrial Finance Corporation of India(IFCI)

15. Investment Banks Banks are those banks which specialise in providing medium and long term financial assistance to business and industry, These banks are also known as industrial banks as they are mainly concerned with industrial finance

16. Agriculture Banks Agriculture banks are those banks which provide credit to farmers for both short term as well as long term need. They inject life into lifeless agriculture, resulting in enhance productivity , which benefits both the farmers and the country

17. International Banks International Banks are special banks created to deal with international financial matters. These banks operate at the international level and occupy a very important place in the banking structure of the world. Some the international banks are :- International Monetary Fund(IMF) Asian Development Bank(ADB ) International Bank for Reconstruction & Development Bank(IBRD) or World Bank.