banking in india

Peeyush Sahu/ PGPSM 2014-15

Reserve Bank of India

Scheduled Banks

Commercial Banks

Public Sector Banks

SBI & Associate - 5

Other Public Sector Banks - 22

Private Sector Banks

Old - 17

New - 12

Foreign Banks - 43Regional Rural

Banks - 56

Co-Operative Banks - 45

Urban

Rural

Non Scheduled Banks


Scheduled Banks :

Scheduled Banks in India constitute those banks which have been included in the

Second Schedule of Reserve Bank of India(RBI) Act, 1934.

RBI in turn includes only those banks in this schedule which satisfy the criteria laid

down vide section 42 (6) (a) of the Act.

The banks included in this schedule list should fulfill two conditions :

1. The paid capital and collected funds of bank should not be less than Rs. 5 lac.

2. Any activity of the bank will not adversely affect the interests of depositors. Every

Scheduled bank enjoys the following facilities :

a. Such bank becomes eligible for debts/loans on bank rate from the RBI.

b. Such bank automatically acquire the membership of clearing house.


Non-Scheduled Banks :

A banking company defined in clause(c) of section 5 of the Banking Regulation Act

1949 (10 of 1949), which is not a scheduled bank.

Commercial Banks :

According to the Indian Banking Regulation Act 1949, "A banking company means

any company which transacts the business of banking .

Banking means accepting for the purpose of lending of investment of deposits of

money from the public, payable on demand or other wise and withdraw able by

cheque, draft or otherwise."


Co-operative Banks :

A co-operative is an autonomous association of persons united voluntarily to meet

their common economic, social, and cultural needs and aspirations through a

jointly-owned and democratically-controlled enterprise.

A co-operative bank is a financial entity which belongs to its members, who are at

the same time the owners and the customers of their bank.

Co-operative banks are often created by persons belonging to the same local or

professional community or sharing a common interest.

Co-operative banks generally provide their members with a wide range of banking

and financial services (loans, deposits, banking accounts...).


Public Sector Banks :

Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is

held by a government. The shares of these banks are listed on stock exchanges.

There are a total of 27 PSBs in India [19 Nationalized banks + 6 State bank group

(SBI + 5 associates) + 1 IDBI bank (Other Public Sector-Indian Bank) = 26 PSBs + 1

recent Bhartiya Mahila Bank.

Private Sector Banks :

The "private-sector banks" are banks where greater parts of stake or equity are held

by the private shareholders and not by government.

This is split into two groups ,

1. Old Private Sector

2. New Private Sector Banks.Peeyush Sahu/ PGPSM 2014-15

Foreign Banks :

The banks (as per clause(d) of section 5 of BR Act 1949) that do their operations

and services in India followed by the rules and regulations of RBI (just the way the

local banks do).

Regional Rural Banks :

An Act to provide for the incorporation, regulation and winding up of Regional Rural

Banks with a view to developing the rural economy by providing, for the purpose of

development of agriculture, trade, commerce, industry and other productive

activities in the rural areas, credit and other facilities, particularly to the small and

marginal farmers, agricultural laborers, artisans and small entrepreneurs, and for

matters connected therewith and incidental thereto. (as per RRB Act 1976)


banking in india

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