RBI ( Apex Bank) Scheduled Banks Non Scheduled Banks Commercial Bank Cooperative Bank Public Private Sector Bank Sector Bank RRB Foreign Bank SBI and associates Urban Cooperative Bank Nationalize Bank . State Cooperative Bank Other Public BankBanking System in India “RBI established on 1* April 1935 under RBI act 1934 on the recommendation of John Hilton Young Commission. RBI nationalized on 1“ January 1949 paid up capital of 5 crore. *“*RBI has Governor and four Deputy Governor. “*Originally its headquarter was in Kolkata but transfer to Mumbai in 1937.Banking System in India “RBI emblem is “Tiger under a Palm Tree”. “+ First Governor of RBI was Sir Osborne Smith and first Indian Governor was C.D Deshmukh. “Financial year of RBI runs from July | to June 30.Banking System in India “*RBI continued to serve as central Bank to Burma, until Japanese occupation of Myanmar in Aril, 1947. RBI continued to serve as Central Bank of Pakistan, until June 1948. “*Minimum Reserve System: Asset of issue department consist of 200 crore ( 115 crore should be in form of Gold.)Banking System in India Controller of Banks: All Banks have to take license from RBI to run their Business. RBI can cancelled the license of banks. It issue guidelines to Banks and exercise management control. Controller of Monetary Policy: RBI fix the interest rate for banks to borrow money from it and control money supply in market. Foreign Exchange Reserve: This is maintain by RBI to keep equilibrium in reserve system. It include foreign currency and SDR to transact the foreign transactions.Banking System in India Functions of RBI: Banker to Govt.: RBI is central govt. and state govt. bank. RBI transact govt. business and manages public debt. It provide Ways and Mean advance facility to govt. Issuance of Currency: RBI issues the currency on the behalf of central govt. Stock of currency is distributed with the help of currency chests spread all over the country.Banking System in India Total PSB: 27 ( 19 nationalized bank, SBI and 5 its associated, Mahila Bank, IDBI.) Total Private Bank: 26 ( ICICI , HDFC, Axis Bank, Yes Bank etc.) RRB : 56 Foreign Banks : 46 Cooperative Banks : 43Banking System in India Public Sector Banks: All those Banks in which Government shareholding is 51% or more is called Public Sector Banks. All nationalized Bank, Statutory Banks are Public Sector Banks. Statutory Bank: These Banks are those which registered under parliament act. SBI in statutory Bank registered under State Bank of India Act 1955. IDBI is also statutory BankBanking System in India Nationalized Bank: Those Banks which were private bank and converted into Public Bank . In 19% July 1969, 14 Banks were nationalized which have capital 50 crore and on 15'" April 1980 six banks were also nationalized which have captial 200 crore. PNB is largest Nationalized Bank. Regional Rural Bank(RRB): These Banks are formulated for Agriculture Economy and Rural Development. Narshimah Committee recommend to set up these Banks. RRB act in effect in 1976. These Bank are sponsored by Public sector banks in which Centre govt. shareholding is 50%, Banks shareholding is 35% and State govt. shareholding is 15%.Banking System in India Scheduled Bank: These Banks are those whose name is appear in 2™ schedule of RBI act 1934. All PSB, foreign Bank, RRB and Cooperative bank are schedule Bank. Scheduled Bank should satisfy the condition of paid up capital and reserves requirement of not less than Rs. 5 lakh. Non Scheduled Bank: These Banks are those whose name is not appear in 2"! scheduled of RBI act 1934. Commercial Banks: These banks offer banking service to individual and businesses. Accept the deposit from public and disperse loan to them.Banking System in India Cooperative Banks: These Banks set-up-to. ide finance to agriculture, rural industries and to trade and industry of urban areas but up to a limited extent.