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Submitted to: Prof.

MARYA WANI

Presented by:

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 can withdraw by cheque, draft, order or otherwise

. Bank of Madras and Bank of Bengal merged in 1921 to form Imperial bank In 1955 Imperial bank was transformed into State Bank of India.Origin 18th century First banks General bank(1786) Oldest bank Bank of Hindusthan(1790) State bank of India(SBI) Originated in the Bank of Calcutta in June 1806 Bank of Bombay.

control. 1949 . the Banking Regulation Act was introduced which empowered the RBI to regulate. and inspect all the Indian banks . • The Banking Regulation Act :no new bank or branch of an existing bank could be opened without a license from the RBI. 1949 1949 • In 1949. and no two banks could have common directors.1949 • The Reserve Bank of India was nationalized on January 1.

1969 Bill got the presidential approval on 9 August 1969.• • • • • Banks in India except the State Bank of India continued to be owned and operated by private persons till 1969 Indira Gandhi in the annual conference of the All India Congress Meeting put forward a paper entitled "Stray thoughts on Bank Nationalisation." The Government of India issued an ordinance on July 19. A second stage of nationalization started in 1980 .

Relaxation in the norms for Foreign Direct Investment. privatization .In 1991 the Narasimha Rao government brought the policy of liberalization Licensed a small number of private banks.

•Foreign direct investment growth US$132million US$33billion 2005 US$197billion 2011 1991 •Cities have risen in prominence NOIDA Gurgaon Pune Bangaluru .

GDP of India has risen rapidly since 1991 .

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with the unscheduled ones forming a very small component. this segment comprises of the scheduled banks. . pawnbrokers and indigenous bankers. Banking needs of the financially excluded population is catered to by other unorganized entities distinct from banks. such as.The entire organized banking system comprises of scheduled and non-scheduled banks Largely. moneylenders.

banks have to fulfill certain conditions such as having a paid up capital and reserves of at least 0.5 million and satisfying the Reserve Bank that its affairs are not being conducted in a manner prejudicial to the interests of its depositors.•A scheduled bank is a bank that is listed under the second schedule of the RBI Act. •In order to be included under this schedule of the RBI Act. • Scheduled banks are further classified into commercial and cooperative banks. . 1934.

• Nationalized banks and SBI and associates . • SCBs in India are categorized into the five groups based on their ownership and/or their nature of operations. .•Scheduled commercial banks (SCBs) account for a major proportion of the business of the scheduled banks. together form the public sector banks group and control around 70% of the total credit and deposits businesses in India.

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which were incorporated according to the revised guidelines issued by the RBI regarding the entry of private sector banks in 1993.•Private sector banks include the old private sector banks and the new generation private sector banks. .

• Abn Amro • Abu Dhabi Commercial Bank • Bank International Indonesia • Bank of America • Bank of Ceylon . 32 foreign banks were operating in India with 293 branches. •Besides. •At end-June 2009. 43 foreign banks were also operating in India through representative offices.•Foreign banks are present in the country either through complete branch/subsidiary route presence or through their representative offices.

• Regional Rural Banks (RRB)are Regulated by the Rural Planning and Credit Department of Government of India and supervised by NABARD. India) (5) South Malabar Gramin Bank (Kerala. India) (4) Himachal Gramin Bank (Himachal Pradesh. India) (3) Durg Rajnandgaon Gramin Bank( Chhattisgarh. (1) Madhya Bharat Gramin Bank (Madhya Pradesh.•Regional Rural Banks (RRBs) were set up in September 1975 in order to develop the rural economy by providing banking services in such areas by combining the cooperative specialty of local orientation and the sound resource base which is the characteristic of commercial banks. India) . India (2) Assam Gramin Vikash Bank (Assam.

Bangalore . 2.• Scheduled cooperative banks in India can be broadly classified into urban credit cooperative institutions and rural cooperative credit institutions. district and state level).Ahmedabad Mercantile Co-Op Bank Ltd. Credit cooperatives in most states have a three tier structure (primary.Amanath Co-operative Bank Ltd. 1. • Rural cooperative banks undertake long term as well as short term lending.

. in the form of Local Area Banks (LAB). for the establishment of new private banks of a local nature. Local area banks are banks that are set up under the scheme announced by the government of India in 1996. with jurisdiction over a maximum of three contiguous districts.Non-scheduled banks also function in the Indian banking space.

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Reserve Bank Of India (RBI) RBI’s subsidiaries Body Scheduled /non scheduled commercial Bank Public Private .

Higher authority of Indian banking industry Regulation and credit control Acting as government financial advisor Bank of the banks .

SBI. The largest players in retail banking in India are ICICI Bank. HDFC and Canara Bank. leasing business. mutual funds. PNB. The retail portfolio of banks accounted for around 21. factoring activities etc. Treasury operations are important for managing the funding of the bank. BOI. derivatives. . equity market.3% of the total loans and advances of SCBs as at endMarch 2009. merchant banking. and trading and forex operations. Treasury Operations: Treasury operations include investments in debt market (sovereign and corporate).• Retail banking: It includes exposures to individuals or small businesses. • • Wholesale banking: Wholesale banking includes high ticket exposures primarily to corporate. This category includes Para banking activities like hire purchase activities. or can be undertaken on customer’s account. Other Banking Businesses: This is considered as • a residual category which includes all those businesses of banks that do not fall under any of the aforesaid categories. These functions can be proprietary activities.

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BANK RATE CRR Repo Rates Reverse Repo Rates SLR .

nic.org.• • • • www.in/English/default.gov.in www.aspx www.in http://dipp.indianbanks.org .fiuindia.rbi.

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