BANKING INDUSTRIES IN INDIA

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Submitted By
Neelam Meshram

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INTRODUCTION
OVER VIEW OF BANKING:
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of
Bombay (1840) and Bank of Madras (1843) as independent units and called it presidency banks.
Banking Regulation Act of India, 1949 defines Banking as accepting, for the
purpose of lending or of investment of deposits of money from the public, repayable on demand
or otherwise or withdrawable by cheque, draft order or otherwise. The Reserve Bank of India
Act, 1934 and the Banking Regulation Act, 1949, govern the banking operations in India.
WHAT IS BANKING?
A system of trading money which provides a safe place to save excess cash, known as deposits.
Supplies liquidity to the economy by loaning this money out to help businesses grow and to allow consumers to purchase consumer products, homes, cars etc.
WHAT ARE BANKS?
Institutions which deals in money and credit.
An intermediary, which handles other people s money both for their advantage and to its own profits.
A financial institution that links the flow of funds from savers to the users.
Plays an important role in the economy of any country as they hold the saving of the public.
BROAD CLASSIFICATION OF BANK IN INDIA
1. The RBI: The RBI is the supreme monetary and banking authority in the country and has the responsibility to control the banking system in the country. It keeps the reserves of all scheduled banks and hence is known as the Reserve Bank .
2. Public Sector Banks
State Bank of India and its Associates (8)
Nationalized Banks (19)
Regional Rural Banks Sponsored by Public Sector Banks (196)
3. Private Sector Banks:
Old Generation Private Banks (22)
Foreign New Generation Private Banks (8)
Banks in India (40)
4. Co-operative Sector Banks:
State Co-operative Banks
Central Co-operative Banks
Primary Agricultural Credit Societies
Land Development Banks
State Land Development Banks
5. Development Banks: Development Banks mostly provide long term finance for setting up industries. They also provide short-term finance (for export and import activities)
Industrial Finance Co-operation of India (IFCI)
Industrial Development of India (IDBI)
Industrial Investment Bank of India (IIBI)
Small Industries Development Bank of India (SIDBI)
National Bank for Agriculture and Rural Development (NABARD)
Export-Import Bank of India