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Thursday, 20 September 2012

INDIAN BANKING SYSTEM






HELLO FRIENDS,

Again i have come with some new ,dosto,,ap log..masti ..pe lage rahto ho..achi bat he...dimag ke liye bahut hi acha..he..maf karna..me jab vi dosto ki bich ,pe masti ka bat ata he..toh..mujhe guilty feel hota he,,ki mera vakt barbad ho raha he,,,so..juST today made huge findings on net,,not so huge..but little huge..and came up with following points.actually i am not writing here for ur betterment,i am really practicing what i have already studied..so ENJOY MOMENTS WITH MY FINDINGS......AND SAY ME HOW IS IT?????


ok lets saart our topic...
INDIAN  BANKING SYSTEM   has history.but now its necessary ,but for us its better to know,what is prsent situation.so lets me explain.it a simple way.......

indian banking system see how it has been categorized .....

MINISTRY OF FINANCE

first is minstry of finance on the top,means its the ultimate finance department controlling body in indis.NOW minister of finance is P.CHIDAMBARAM…he is a lawyer in profession and mba graduate also.IT HAS 5 departments.it controls RBI and appoint directors nd board of governers.



RESERVE BANK OF INDIA (RBI)

then under ministry of finance,the controlling body ,which comes is RBI .RBI is reserve bank of india, was established in april 1,in 1935.on the basis of Hilton-young commission recommendation.this commission gave its report from 1926,but till 9 yrs this has not yet been setup.till it had private shre holders,but later it was NATIONALIZED JANUARY 1 1949.

Function of RBI
·         issues note –rbi has sole right to issue note and distribute coins and note as agent of government.
·         Bankers bank- gives loan to banks and keep deposits of bank’s account in RBI.
·         Make policy- it makes monetary policy,to which all scheduled banks has to obey.
        
THEN it has divided to two types,called scheduled and non-scheduled type..then whts it means????


Scheduled and non-scheduled bank

All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are scheduled banks. A scheduled bank is a bank that is listed under the second schedule of the RBI Act, 1934. In order to be included under this schedule of the RBI Act, banks have to fulfill certain conditions such as having a paid up capital and reserves of at least 0.5 million and satisfying the Reserve Bank that its affairs are not being conducted in a manner prejudicial to the interests of its depositors.


the banks which not included under this act,called  non-schudeuled bank.

COMMERCIAL BANKS

Commercial banks are the financial entity,that provides financial service to public and company.services means deposits,lendings etc…COMMercial banks include.

·         Public sector banks.
Public sector bank are banks whose  majority of stakes hold by central government. i.e. (atlst 50% share).during 1969  major NATIONALISATION process started and 14 banks were nationalised during INDIRA GANDHI time..and later in 1980 again indira rule ,other banks were nationalised.so total bank nationalised is 19. nationalisation makes private limited to public limited..and contrlolled by central government.
Ex-sbi,iob,bob,pnb,ub,etc…..

·   Private sector banks.
·           These are banks majority of share capital of the bank is held by private individuals. These banks are registered as companies with limited liability.
·           Examples of private sector banks are: ICICI Bank, Axis bank, HDFC, etc.

·   Foreign banks.

These banks are registered and have their headquarters in a foreign country but operate their branches in our country.
Examples of foreign banks in India are: HSBC, Citibank, Standard Chartered Bank, etc.

·   Regional rural banks.

Regional Rural Banks.,the Regional Rural Banks in India (RRBs) were established in October 2, 1975, these banks played a important  role in the economic development of the rural India. The main goal of regional rural banks in India was to provide credit to the rural people who are not economically strong enough, especially the small and marginal farmers, agricultural labours, and even small entrepreneurs.



COPERATIVE BANKS

Cooperative banks are financial entity,where its customers are its owners.this formed under a  a mutual basis, or in a cooperative way.
These are no-profit-no-loss financial organisations.in above we v classified to 2 forms
1,urban
t he term Urban Co-operative Banks (UCBs), refers to primary cooperative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for non-agricultural purposes. but today, These banks were traditionally centred around communities, localities work place groups. They essentially lent to small borrowers and businesses. Today, their scope of operations has widened considerably.


more data on list of banks in india open link below.....


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