Indian Banking

Sector
History, Types,& Challenging
factors.
Presented By
RAHUL GARG
PGD08043
 Definition of Bank
Banking is "accepting, for the purpose of lending
or investment of deposits of money from the
public, repayable on demand or otherwise and
withdrawable by cheques, draft, order or
otherwise."
Bank is defined as a person who carries on the
business of banking. Banks also perform certain
activities which are ancillary to this business of
accepting deposits and lending. Since Banking
involves dealing directly with money,
governments in most countries regulate this
sector rather stringently.
 Banking Overview
• The major participants of  the Indian financial
system are the commercial banks, the financial
institutions (FIs), term-lending institutions,
investment institutions, specialized financial
institutions and the state-level development
banks, Non-Bank Financial Companies (NBFCs)
and other market intermediaries such as the
stock brokers and money-lenders. The
commercial banks and certain variants of NBFCs
are among the oldest of the market participants.
The FIs, on the other hand, are relatively new
entities in the financial market place.
 Historical perspective 
• Bank of Hindustan, set up in 1870, was the
earliest Indian Bank .
• Establishment of three presidency banks
under Presidency Bank's act 1876 i.e. Bank
of Calcutta, Bank of Bombay and Bank of
Madras
• In 1921, all presidency banks were
amalgamated to form the Imperial Bank of
India. Imperial bank carried out limited
central banking functions also prior to
establishment of RBI
Contd.
• Resrve Bank of India Act was passed in
1934 & Reserve Bank of India (RBI) was
constituted as an apex bank without
major government ownership. Banking
Regulations Act was passed in 1949. This
regulation brought Reserve Bank of India
under government control. Under the
act, RBI got wide ranging powers for
supervision & control of banks.
 Types of Bank
• Banking Segment in India functions under
the umbrella of Reserve Bank of India -
the regulatory, central bank. This
segment broadly consists of: 
• 1. Commercial Banks 

2. Co-operative Banks
Commercial Bank
Co-operative Bank
Types of Banking
Current Position of banking sector
Challenging Factor
 Bibliography
• WWW.BANKNETINDIA.COM

• WWW.IBA.ORG.IN

• WWW.INDIA.GOV.IN

• BUSINESS TODAY
THANK YOU
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