commercial banks in india and their roles

8/4/2019 Commercial Banks in India and Their Roles.

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Types of Commercial Banks in

IndiaApex Banking InstitutionsReserve Bank of India (RBI)

Industrial Development Bank of India (IDBI)

National Bank for Agriculture and RuralDevelopment(NABARD)

Export-Import Bank of India(EXIM Bank)


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Banking Institutions

Commercial Banks

Regional Rural Bank

Co-operative Banks

Land Development Banks

Industrial Development Banks


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Types of Commercial Banks

Foreign Commercial Banks

Indian Commercial Banks---

a) Public Sector Banks

b) Private Sector Banks

Public Sector Banks *

a)State Bank Group(1+7)

b) Nationalized Banks(14+6)

State Bank Group----State Bank of IndiaSubsidiary Banks


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Types of Co-operative Banks

State Co-operative Banks

Central District Co-operative Banks

Primary Credit Societies


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Types of Land DevelopmentBanks

State Land Development Bank

Primary Land Development Banks


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Types of Industrial DevelopmentBanks. All India---

IFCI, ICICI*, IDBI*, IRCI(sinceliquidated)

State level---

SFCs----State Financial

Corporation

SIDCsState Industrial Dev.Corporation.


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Banks Role, Services &

Products. Intermediary Role:

Deposit------Current Accounts

Savings Accounts

Term Deposits

Recurring Deposits


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Loan

a) Retail Loans

Housing or Mortgage LoansVehicle Loans

Consumer Durable Loans

Personal LoansLoan against shares

Loans against fixed deposits

Personal Overdrafts

Credit CardsThis is hybrid productsand predominantly a payment product.


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b) Business Credit

Long Term- i) Term Loans

ii)Leasing/Hire PurchaseShort Term- Working Capital facilities

i) Overdraft

ii) Cash credit

iii) Packing credit/Post-shipment credit

iv) Demand Loan/Line of

credit.v) Business card or Credit

Card for business transactions.


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c) Trade Finance

Cheque Purchase

Bill Purchase/Bill Discount/Bill

Negotiation

Letter of credit(LC)

Letter of

Guarantee(LG)


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Payment System Constituent:

(A) Payment and Remittance-ChequePayorder/Bankers ChequeDemand Draft

Multi City Cheque(Any whereBanking)Electronic Fund TransferDebit Card

Credit CardCharge CardTravel Card


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(B)Collection

TransferLocal clearingElectronic Clearing System(ECS

)*

Cheque CollectionNational ClearingCMS-Cash Management

ServicesBill Collection

( C ) Forex

Foreign Exchange


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Financial Services A) Distribution:

Mutual FundsInsurance ProductsGovernment BondsStamp PaperGold CoinsMobil RechargeShare of Companies(Public Issue)

B) Collection:TaxesUtility Bills


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C) De MATDe MAT Share Account

D) Safe Keeping

Safe Deposit LockerSafe Custody

E) Advisory*

Investment Advice


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Banking Channels

1-Branches2-ATMs- 1st offsite ATM in 1996

Service available 24x7(convenience)Cost of providing services is less than the cost of

maintaining a branch(cost effectiveness)3- Other alternative channels(non-branch) are-

POS (Point of Sales)Phone Banking

Internet BankingMobile Banking(SMS)Home Banking- delivery of cash and

Draft/collection of cheques(HNI)


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Banking services are becomingmore innovative. With more newgeneration Bank coming into fray the

competition will be fierce and theBanks will try to offer cost-effectiveand convenient products and services

to their customer.


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Thank you..

Pranab KumarBhuyan

commercial banks in india and their roles

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