Banking system In India

Presented BySakshi Verma

Introduction
The General Bank of India was set up in the year 1786. Next came Bank of industan and Ben!al Bank. The "ast India #ompany esta$lished Bank of Ben!al %18&'() Bank of Bom$ay %18*&( and Bank of +adras %18*,( as independent units and called its -residency Banks. 1'*' . "nactment of Bankin! /e!ulation 0ct. /eser1e Bank of India was 1ested with extensi1e powers for the super1ision of $ankin! in India as the #entral Bankin! 0uthority. In 1'22) nationalisation of Imperial Bank of India with extensi1e $ankin! facilities on a lar!e scale specially in rural and semi3ur$an areas formed as 4tate Bank of India. 4e1en $anks formin! su$sidiary of 4tate Bank of India was nationalised in 1'6'. In 1''1) under the chairmanship of + Narasimhama) a committee was set up $y his name which worked for the li$eralisation of $ankin! practices.

Bankin! 4ystem
/BI

4cheduled #ommercial $anks

#o3operati1e $anks

-u$lic sector $anks

-ri1ate sector $anks

5orei!n $anks

/e!ional6rur al $anks

7r$an64tate co3operati1e $anks

/eser1e Bank 8f India

It was esta$lished in 0pril 1',2 with a share capital of /s. 2 crores. /eser1e Bank of India was nationali9ed in the year 1'*'. /ole3

To re!ulate the issue of $ank notes. To maintain reser1es with a 1iew to securin! monetary sta$ility. /eser1e Bank is a!ent of #entral Go1ernment and of all 4tate Go1ernments in India. Banker:s Bank. #ontroller of credit. 4uper1ision and control o1er commercial and co3operati1e $anks) relatin! to licensin! and esta$lishments) $ranch expansion) li;uidity of their assets) mana!ement and methods of workin!) amal!amation) reconstruction) and li;uidation.

<hat is Bankin!..==
> Bank is an institution which trades in money) an esta$lishment for the deposits) custody and issue of money) as also for makin! loans and discounts and facilitatin! the transmission of remittances from one place to another?. 4a1in!s 0ccounts . /unnin! account for sa1in! with restriction in num$er of withdrawal #urrent 0ccount. /unnin! account without restriction on num$er of withdrawals Term @eposit . @eposit of an amount for a fixed period where interest is paid monthly6Auarterly.

4pecial Term @eposit . @eposit of an amount for a fixed period where interest is compounded %#apitali9ed( and paid on maturity.

/ecurrin! @eposit . /e!ular %+onthly( deposit of a fixed amount for a fixed period .

4er1ices -ro1ided $y Banks

0cceptance and mana!ement of deposits. Grantin! of credits. -lastic money. 4er1ices of money transfers. 0cceptance of payments in fa1or of $eneficiaries % taxes(. "asy $ankin! throu!h 0T+) +o$ile Bankin!) 4+4 Bankin!) Net Bankin!. @emat ser1ices. "3 payments. /GT4%/"0B TI+" G/844 4"TTB"+"NT( N"5T%N0TI8N0B "B"#T/8NI# 57N@ T/0N45"/( "#4 and N"#4 +o$ile and @T 3 rechar!e

Bankin! 4er1ices for N/I:s

Non3/esident %8rdinary( 0ccount 3 N/8 06c The funds) credited to this account) cannot $e repatriated outside India in forei!n exchan!e) without prior permission of the /eser1e Bank of India. Non3/esident %"xternal( /upee 0ccount 3 N/" 06c The funds) standin! to the credit of this account) as well as interest earned thereon) are remitta$le outside India in free forei!n exchan!e) without permission of the /BI. Non3/esident %5orei!n #urrency( 0ccount 3 5#N/ 06c These accounts can $e opened in four forei!n currencies. -ounds 4terlin!) 74 @ollars) Capanese Den) "uro. The accounts can $e opened only as fixed deposits) with a minimum maturity of one year and) a maximum maturity of three years. The principal) as well as interest) earned on these accounts) is remitta$le outside India) in the same currency or) in other con1erti$le currency) as desired $y the account holder.

-roxy Bankin!
0n Internet Eiosk has $een set up $y I#I#I Bank in partnership with network n3 Bo!ue #ommunications in remote 1illa!es of 4outhern part of the country. This is known as -roxy Bankin!. The -roxy Bankin! is an inno1ati1e approach to rural lendin! and will add to the !o1ernmentFs expandin! $ase of kisan credit cards and the !ood old !uidelines for a!ricultural lendin!. <ith the help of fi$re optic ca$les) this kiosk works on wireless in local loop technolo!y. Benefits to rurals.3

4mall loans !i1en for $uyin! $uffaloes. Boans for settin! up a tea shop. Bife and non3life insurance pro1ided. <eather insurance !i1en to farmers. Insurance policies sold to farmers like !roundnut) castor) soya) paddy crop) etc.