BANKING

• MEANING
• ROLE OF A BANK
• MAJOR SERVICES OF A BANK
 BANKING - MEANING

As per Section 5(b) of Banking Regulation Act,

1949 , banking means the accepting, for the
purpose of lending or investment, of deposits
of money from the public, repayable on
demand or otherwise, and withdrawable by
cheque, draft, order or otherwise. 
 BANKING - MEANING

Banking Regulation Act, 1949 As per Section

5(c) of Banking Regulation Act, 1949 a "Banking
Company" means any company which transacts
the business of banking in India. 
 BANKING - MEANING

Explanation: Any company which is engaged in the

manufacture of goods or carries on any trade and which
accepts the deposits of money from public merely for
the purpose of financing its business as such
manufacturer or trader shall not be deemed to transact
the business of banking within the meaning of this
clause." 
 Evolution of Banks
• Phase – I (1786 to 1969)

• Phase – II Nationalisation of Banks up to 1991

prior to Indian Banking Sector reforms

• Phase – III New phase of Indian banking

system with the advent of Indian Financial and
Banking sector reforms after 1991
 Evolution of Banks
Phase – I (1786 to 1969)
• The General Bank - 1786
• Bank of Hindustan
• Bank of Bengal - 1809
• Bank of Bombay - 1840
• Bank of Madras - 1843
• Imperial Bank of India - Amalgamation – 1920
• Allahabad Bank – 1865
 Evolution of Banks
Phase – I (1786 to 1969)
• PNB – 1894
• 1906 – 1913
Bank of India
Central Bank of India
Indian Bank
Bank of Mysore
Bank of Baroda
Canara Bank
• RBI - 1935
 Evolution of Banks
Phase – II Nationalisation of Banks up to 1991 prior
to Indian Banking Sector reforms
• Major steps – after independence
• Nationalisation of Imperial Bank of India – 1955
• Formation of SBI – Principal agent of RBI
• Nationalisation of 7 subsidiaries of SBI – 1969
• Nationalisation of 14 major private commercial
banks – 1969
• Nationalisation of seven more banks – 1980
 Evolution of Banks
Phase – II
1949 – Enactment of the Banking Regulation Act
1955 – Nationalisation of SBI
1959 – Nationalisation of SBI subsidiaries
1961 – Insurance cover extended to deposits
1969 – Nationalisation of 14 major banks
1971 – Creation of Credit Guarantee Corporation
1975 – Creation of Regional Rural Banks
1980 – Nationalisation of seven more banks with deposits
over Rs. 200 crores
 Evolution of Banks
Phase – III New phase of Indian banking system
with the advent of Indian Financial and Banking
sector reforms after 1991
• Indian banking introduced many products and
facilities
• Foreign banks and their ATM stations
• Phone banking and Net banking
• More and more satisfactory services to customers
ROLE OF BANKS
ROLE OF BANKS
 ROLE OF BANKS
• Social Banking describes the provision
of banking and financial services that
consequently pursue, as their main objective, a
positive contribution to the potential of all human
beings to develop, today and in the future.
• A universal bank participates in many kinds of
banking activities and is both a commercial bank
and an investment bank  as well as providing
other financial services  such as insurance
TYPES OF BANKS
TYPES OF BANKS