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    Unit-Vii Types of Banks

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    sheetal rajput
    There are several types of banks in India including scheduled commercial banks, public sector banks, private banks, foreign banks, cooperative banks, regional rural banks, and non-scheduled banks. Scheduled commercial banks must meet capital and business requirements to be included in the second schedule of the RBI Act. Public sector banks have majority government ownership while private banks are majority owned by private individuals. Foreign banks are registered in other countries but have offices/branches in India. Cooperative banks and regional rural banks focus on rural/agricultural financing.

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    Unit-Vii Types of Banks

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    sheetal rajput
    27 views18 pages
    There are several types of banks in India including scheduled commercial banks, public sector banks, private banks, foreign banks, cooperative banks, regional rural banks, and non-scheduled banks. Scheduled commercial banks must meet capital and business requirements to be included in the second schedule of the RBI Act. Public sector banks have majority government ownership while private banks are majority owned by private individuals. Foreign banks are registered in other countries but have offices/branches in India. Cooperative banks and regional rural banks focus on rural/agricultural financing.

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    There are several types of banks in India including scheduled commercial banks, public sector banks, private banks, foreign banks, cooperative banks, regional rural banks, and non-scheduled banks. Scheduled commercial banks must meet capital and business requirements to be included in the second schedule of the RBI Act. Public sector banks have majority government ownership while private banks are majority owned by private individuals. Foreign banks are registered in other countries but have offices/branches in India. Cooperative banks and regional rural banks focus on rural/agricultural financing.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    27 views18 pages

    Unit-Vii Types of Banks

    Uploaded by

    sheetal rajput
    There are several types of banks in India including scheduled commercial banks, public sector banks, private banks, foreign banks, cooperative banks, regional rural banks, and non-scheduled banks. Scheduled commercial banks must meet capital and business requirements to be included in the second schedule of the RBI Act. Public sector banks have majority government ownership while private banks are majority owned by private individuals. Foreign banks are registered in other countries but have offices/branches in India. Cooperative banks and regional rural banks focus on rural/agricultural financing.

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    You are on page 1of 18

    UNIT- VII

    TYPES OF BANKS
    TYPES OF BANKS

    BANKS

    COMMERCIAL REGIONAL COOPERATIVE


    BANKS RURAL BANKS BANKS

    NON-
    SCHEDULED
    SCHEDULED
    CONT…

    PUBLIC
    BANKS
    INDIAN
    PRIVATE
    SCHEDULED BANKS
    BANKS
    FOREIGN
    Scheduled Commercial Banks
    • Scheduled commercial banks are those included in the second
    schedule of the Reserve Bank of India Act, 1934.
    •For this, they have to satisfy three conditions:
    It must have paid-up capital and reserves of an
    aggregate value of at least Rs. 5 lakhs.
    It is carrying on the business of banking in India.
     It must be a corporation or cooperative society and not
    a partnership or sole proprietorship firm.
    INDIAN BANKS

    •Registered or incorporated in India.


    • They have their headquarter in India and can have branches all
    over India.
    • They can also operate in foreign countries.
    FOREIGN BANKS

    • Registered or incorporated in their home country, not in India.


    • They have their office and/or branches in India.
    • They play an important role in shaping the attitude and policies of
    foreign govt., companies and their clients towards India.
    Public Sector Banks
    • Public sector banks are banks in which the government has a major
    holding.
    • At least 51% ownership is vested with the government.
    • The shares of these banks are listed on stock exchanges.
    STATE BANK OF INDIA
    • Government of India entered in commercial banking when it
    took over Imperial Bank of India and converted into State
    Bank of India on 1 July 1955.
    •State Bank Group
    • State Bank of Hyderabad
    • State Bank of Patiala
    • State Bank of Travancore
    •  State Bank of Bikaner & Jaipur
    • State Bank of Maysore
    • State Bank of Saurashtra
    • State Bank of Indore
    NATIONALIZED BANKS
    • In 1969, 14 banks with deposit base of Rs. 50 Crores or more were
    nationalized. In 1980,, 6 more banks were nationalized.
    • This step brought more than 90% of commercial banking in the
    public sector.
    • The main function of nationalised bank is provide finance for the
    housing projects, health facilities and increase the chance to
    providing the products and services to the people of rural areas.
    1. Andhra Bank
    2. Punjab National Bank
    3. Indian Overseas Bank
    4.IDBI
    5.Allahabad Bank
    6. Syndicate Bank
    7. UCO Bank
    8. Dena Bank
    PRIVATE BANKS
     All those banks in which majority of stake are held by private
    individuals
     The banks, which came in operation after 1991, with the
    introduction of economic reforms and financial sector reforms are
    called "new private-sector banks“
    New banks are strategic in their thinking and operations.
    CONT..
    NON SCHEDULED BANKS
    • The banks which are not included in the 2 n schedule of RBI Act,
    1934.
    • These also have to maintain statutory cash reserve but not with
    RBI.
    • Their banking activities are limited, e.g., the cannot deal in
    foreign exchange.
    • The share of these banks are almost nil.
    REGIONAL RURAL BANKS
    • They were set up on the recommendation of Narasimham
    Committee in 1975.
    • The objective was to provide credit and other facilities to
    small and marginal farmers, agricultural labours and
    artisans.
    • RRBs are working in all states except GOA and Sikkim.
    • They are governed by Regional Rural Bank act, 1976
    50% capital is provided by central govt., 15% by state
    govt., 35% by sponsoring public sector bank.
    Features of RRB

    • The area of RRB is limited to only a region, comprising of


    some district of a state
    • These banks grant loan only to the rural agriculture sector
    and small artisans.
    • The lending rates would be some what lower than the
    commercial banks.
    • These are intended to eliminate money lenders.
    •These banks are to supplement the effort of cooperative
    banks.
    Cooperative Bank
    • Cooperative banking is a small scale banking carried on a no
    profit no loss basis for mutual cooperation and help.
    • Engaged in financing rural and agricultural development.
    • They are established under the Cooperative Credit Societies Act
    of 1904.
    Feature of cooperative banks
    • Government sponsored, supported and subsidized financial
    agencies in India.
    • Work on the principle of cooperation, self help and mutual
    help.
    • They function on “no profit no loss” basis.
    • Perform limited banking functions.
    • Some of them are scheduled banks but most are non-
    scheduled banks.
    • Cooperative banks are financial intermediaries only
    because a significant amount of their borrowings is from
    the RBI, NABARD, central and state government and
    cooperative apex institutions.

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