Escolar Documentos
Profissional Documentos
Cultura Documentos
Name
Roll no.
Anand bhatt
103
Alka makwana
119
Chandni parikh
124
Ishita shah
134
Parth vora
147
Introduction to Banking
Contents
Evolution Of Banking
The development of banking is
evolutionary in nature.
The word bank is derived from the
French bancus or banque which means
a bench.
Thus, the origin of the word bank can be
traced as follows:
Functions of banks
Dealing in money: The banks deals in money.
They accept deposits from the public. There are
different types of deposits such as saving, current,
fixed, recurring, etc. banks advance money as
loans to the needy people.
Agency: banks act as an agents of the customer.
They provide variety of agency services, besides
the basic function of accepting deposits and lending
money. Fund transfer, credit cards, telebanking,
cheque clearing, bills collection are some of the
services provided by the banks as an agent.
Different banks
RBI
Commercial bank
Co-operative Banks
Development bank
Nationalized
Bank
Short term
credit
Exim
Private
Bank
Long term
credit
Industrial
Agriculture
credit
Urban
credit
Agriculture
Commercial bank
Commercial banks are the oldest and fastest
growing banks in India.
Commercial banks include scheduled, nonscheduled, Indian, foreign , public sector,
private sector and regional rural banks
The commercial banks have undergone a
major transformation with the introduction of
new economic policy of Liberalization ,
Privatization and Globalization
Accepting deposits
Giving loans
Creation of credit
Bill discounting
Remitting funds
Miscellaneous funds
Agency function
Classification of commercial
banks
Scheduled banks
A bank in order to be designated as a
scheduled bank, should have a paid up capital
and reserves as prescribed by the Act. As per
section 42 (6) of the Reserve Bank has
prescribed a minimum capital of Rs.100 crores.
The scheduled banks are required to maintain
with the Reserve bank a deposit in the form of
Cash Reserve Ratio, based on its demand and
time liabilities, at a prescribed rate.
Non-Scheduled Banks
The commercial banks which are not included
in the second schedule of the Reserve Bank
of India Act, 1934 are called as Nonscheduled Banks.
They are not entitled to facilities like
refinance, and rediscounting of bills from the
Reserve bank. They do not get the privileges
that are available to the scheduled banks.
Co-operative banks
The co-operative banking started in India in 1904,
when official efforts were initiated to create new type
of institution based on the principles of co-operation.
Co-operative banks are managed by the board of
directors on the principles of co-operation, self-help
and mutual help. They function as per rule of one
member- one vote.
They also get financial help from Reserve Bank Of
India.
Objectives of RRBs
To provide credit facilitates to the farmers,
agricultural labourers and others those
engaged in rural activities.
To develop agriculture, commerce, trade,
industry and other productive activities in the
rural areas.
To encourage rural entrepreneurship.
To increase employment opportunities in the
rural areas.
Development banks
Development banking was conceived as
an instrument for achievement of national
economic objectives.
Government intervention to promote
economic growth.
High protection to domestic industry.
Promotion of fixed capital assets through
different subsidies.
Thank you