Banks in India

1
Banks in India

• On The Basis Of Domicile (1) Domestic Bank (2)
  Foreign Banks
• On The Basis of Second Schedule of RBI Act (1)
  Scheduled Bank (2) Non-Scheduled Bank
• On The Basis of Ownership (1) Public Sector
  Banks (2) Private Sector Banks
• (3) Co-operative Banks (4) Regional Rural Banks

2
Banks In India on the Basis of Functions

• Commercial Banks
• Industrial Banks
• Agricultural Banks
• Exchange Banks
• Saving Banks
• Indigenous Banks
• Central Bank

3
COMMERCIAL BANKS IN INDIA

• Promoting Capital Formation
• Facilitator of Monetary Policy
• Monetisation
• Influence Economic Activity
• Directing Funds into Desired Channels
• Implementation of the Policies of Govt.
• Encouraging Innovations

4
Functions of Commercial Banks

• 1. Basic Function (i) Mobilization of Deposits.
• Saving Deposit Account
• Fixed Deposit Account
• Recurring Deposit Account
• Current Deposit Account
• Flexible Deposit Account

5
Functions of Commercial Banks

• (ii) Credit Deployment
• Money at Call
• Cash Credit
• Overdraft
• Discounting Bills of Exchange
• Term Loan
• (iii) Credit Creation

6
Agency Functions

• Remittance of Funds
• Collection Payment of Credit Instruments
• Execution of standing orders
• Sale and Purchase of securities
• Trustees and Executors of Wills
• Collection of Dividend on Shares and Interest on
  Debentures

7
General Utility Functions

• Locker Facility
• Travellers Cheque Facility
• Merchant Banking Service
• Acting as Underwriters
• Acting an Information Provider
• Acting as a Referee

8
Development Functions

• Capital Formation
• Rural Development
• Priority Sector Advances
• Creating Employment
• Assistance of Money Capital Market

9
Modern Functions

• ATMs
• Tele-Banking
• Internet Banking
• Smart Cards
• Round the Clock Banking