1. Central banking and monetary authority of India
2. The regulator and supervisor of commercial
banks
Scheduled Banks in India 2014
Scheduled banks comprise scheduled commercial banks and scheduled co-operative banks.
1. Scheduled commercial banks form the bedrock of the Indian
financial system, currently accounting for more than three-fourths of all
financial institutions’ assets.
2. SCBs are present throughout India, and their branches,
having grown more than four-fold in the last 40 years now number more than
80,500 across the country.
Public Sector Banks 2014
1. Public sector banks are
those in which the majority stake is held by the Government of India.
2. Public sector banks
together make up the largest category in the Indian banking
3. There are currently 27
public sector banks in India.
4. They include the SBI and
its 6 associate banks, 19 nationalized banks and IDBI Bank Ltd.
5. Public sector banks have
taken the lead role in branch expansion, particularly in the rural areas.
6. Public sector banks account
for bulk of the branches in India (88 percent in 2009).
7. In the rural areas, the
presence of the public sector banks is overwhelming; in 2009, 96 percent of the
rural bank branches belonged to the public sector.
Regional Rural Banks
1. Regional Rural Banks (RRBs)
were established during 1976-1987 with a view to develop the rural economy.
2. Each RRB is owned jointly
by the Central Government, concerned State13 Government and a sponsoring public
sector commercial bank.
3. RRBs provide credit to
small farmers, artisans, small entrepreneurs and agricultural laborers.
Over the years, the Government has introduced a number of
measures of improve viability and profitability of RRBs, one of them being the
amalgamation of the RRBs of the same sponsored bank within a State. This
process of consolidation has resulted in a steep decline in the total number of
RRBs to 86 as on March 31, 2009, as compared to 196 at the end of March 2005.
Private Sector Banks 2014
1. In this type of banks, the
majority of share capital is held by private individuals and corporate.
2. Not all private sector
banks were nationalized in 1969, and 1980.
3. The private banks which
were not nationalized are collectively known as the old private sector banks
and include banks such as The Jammu and Kashmir Bank Ltd., Lord Krishna Bank
Ltd etc.
4. As at end March, 2009 there
were 7 new private sector banks and 15 old private sector
Foreign Banks
1. Foreign banks have their
registered and head offices in a foreign country but operate their branches in
India.
2. The RBI permits these banks
to operate either through branches; or through wholly-owned subsidiaries.
3. The primary activity of
most foreign banks in India has been in the corporate segment.
4. However, some of the larger
foreign banks have also made consumer financing a significant part of their
portfolios.
5. These banks offer products
such as automobile finance, home loans, credit cards, household consumer
finance etc.
6. Foreign banks in India are
required to adhere to all banking regulations, including priority-sector
lending norms as applicable to domestic banks.
7. Some of the existing
private sector banks, which showed signs of an eventual default, were merged
with state owned banks.
8. It may be noted that two
important erstwhile developmental financial institutions, viz. Industrial Development
Bank of India (IDBI) and Industrial Credit and Investment Corporation of India
(ICICI) converted themselves into commercial banks after the new bank licensing
policy was announced in July 1993.
9. In addition, a foreign
institution could also invest up to 74% in domestic private bank, in which up
to 49% can be via portfolio investment.
10. At the end of June 2009, there were 32 foreign
banks with 293 branches operating in India.
11. Besides, 43 foreign banks were operating in India
through representative offices.
12. Under the World Trade Organization (WTO 2014)
Agreement, RBI allows a minimum 12 branches of all foreign banks to be opened
in a year.
Co-operative Banks 2014
1. Co-operative banks cater to
the financing needs of agriculture, retail trade, small industry and
self-employed businessmen in urban, semi-urban and rural areas of India.
2. A distinctive feature of
the co-operative credit structure in India is its heterogeneity.
3. The structure differs
across urban and rural areas, across states and loan maturities.
4. Urban areas are served by
urban cooperative banks (UCBs), whose operations are either limited to one
state or stretch across states.
5. The rural co-operative
banks comprise State co-operative banks, district central cooperative banks,
SCARDBs and PCARDBs.
6. The co-operative banking
sector is the oldest segment of the Indian banking system. The network of UCBs
in India consisted of 1721 banks as at end-March 2009, while the number of
rural co-operative banks was 1119 as at end-March 2008.
7. Owing to their widespread
geographical penetration, cooperative banks have the potential to become an
important instrument for large-scale financial inclusion, provided they are
financially strengthened.The RBI and the National Agriculture and Rural
Development Bank (NABARD) have taken a number of measures in recent years to
improve financial soundness of co-operative banks.
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