According to Banking Regulation Act

Banking means
the accepting for the purpose of
lending or investment of deposits of
money from the public, repayable on
demand or otherwise and withdraw able
by cheque, draft, order or otherwise

Savings and capital formation
Canalization of savings
Implementation of Monetary Policy
Encouragement of Industries
Regional development
Development of Agriculture and other
neglected sectors

A. On the Basis of Functions

B. On the Basis of Ownership

C. On the Basis of Schedules of RBI.


1. Commercial Banks
2. Industrial Banks
3. Regional Rural Banks
4. Exchange Banks
5. Central Bank

1. Public Sector Banks
2. Private Sector Banks
3. Co - operative Banks

1. Scheduled Bank
2. Non - Scheduled Bank


1. Primary or Banking
Functions.
2. Secondary or
Subsidiary functions
PRIMARY FUNCTIONS
1. Accepting Deposits

a) Fixed or Time Deposit Account
b) Savings Bank Deposits Account
c) Current Deposits Account
d) Recurring deposits Accounts
2. Making loans and advances
a) Loans
b) Cash Credits
c) Overdrafts
d) Purchasing and Discounting of Bills:

1. Agency functions
2. Utility Functions or
services

a) Collection of cheque, bill, and interest
b) Executing standing instructions
c) Purchase and sale of securities
d) Transfer of funds

a) Safe custody of valuables
b) Safety locker facility
c) Accepting bills
d) Underwriting of Capital issues
e) Provides ATM service

The Reserve Bank of India Act
of 1934 established the Reserve
Bank as the banker to the
central government and set in
motion a series of actions
culminating in the start of
operations in 1935. Reserve
Bank of India was established
in 1935.It is the central bank
of India.
:
1. Issue of currency note
2. Banker to the Government
3. Bankers Bank
4. Controller of Credit
5. Custodian of Foreign
Exchange reserves:

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