Banks are a subset of the financial services industry. Indian banking industry has been divided into two parts, organized and unorganized sectors. The organized sector consists of Reserve Bank of India, Commercial Banks and Cooperative Banks, and Specialized Financial Institutions (IDBI, ICICI, IFC etc). The banking system in India is significantly different from other countries. 1. Reserve Bank of India: Reserve Bank of India is the Central Bank of our efficient is India's banking system? Download the Banking Structure in India PDF and go through this very important GK for Bank exams like SBI, IBPS PO and Clerk and RBI Grade B. The Reserve Bank of India (RBI) is India's central banking institution, which controls the monetary policy of the Indian rupee. Sir CD Deshmukh is the first Governor of RBI.
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At present these are only three such banks in the country. Commercial Banks Commercial banks may be defined as, any banking organization that deals with the deposits and loans of business organizations.
Commercial banks issue bank checks and drafts, as well as accept money on term deposits. RBI performs various developmental and promotional functions.
It has given wide powers to supervise and control the banking structure in india structure. It occupies the banking structure in india position in the monetary and banking structure of the country. In many countries central bank is banking structure in india by different names.
For example, Federal Reserve Bank of U. The Board consists of a Governor, and not more than four Deputy Governors, four Directors to represent the four regional boards, two from the Ministry of Finance and 10 other directors from various fields which accounts to 21 members in total.
The Government of India appoints the Governor and Deputy Governors for a period of 5 years and the directors for a 4-year term. One is nominated from among the Chairpersons of public sector banks and the other is an economist. They provide credit for agricultural and rural development. The main objective of RRB is to develop rural economy.
Their borrowers include small and marginal farmers, agricultural labourers, artisans etc. Co-operative bank was set up by passing a co-operative act in They are organised and managed on the principal of co-operation and mutual help.
The main objective of co-operative bank is to provide rural credit. Some people trace the presence of indigenous banks to the Vedic times of BC. It has admirably fulfilled the needs of the country in the past.
Banking Structure in India PDF – Revised 15-May-2018
However, with the coming of the British, its decline started. Despite the fast growth of modern commercial banks, however, the indigenous banks continue to hold banking structure in india prominent position in the Indian money market even in the present times.
It includes shroffs, seths, mahajans, chettis, etc. The indigenous bankers lend money; act as money changers and finance internal trade of India by means of hundis or internal bills of exchange.
BANKING STRUCTURE IN INDIA – IMS
Through correspondent banking structure in india, a bank can carry-out business transactions in another place where it does not have a branch. Group Banking Group Banking is the system in which two or more independently incorporated banks are brought under the control of a holding company.
The holding company may or may not be a banking company.
Under group banking, the individual banks may be unit banks, or banks banking structure in india branches or a combination of the two. Pure Banking and Mixed Banking On the basis of lending operations of the bank, banking is classified into: Under pure Banking, the commercial banks give only short-term loans to industry, trade, and commerce.
They specialize in short-term finance only.