Banks In India
Banking in India Taken care by Finance Ministry of India, Reserve bank of India is an autonomous body to manage and formed rules and regulation for Indian banking sector. The Starting of banking services in India Took place in early 18th century. The first bank was Bank of Hindustan, Headquarter in Kolkata started in India. The Bank of Hindustan was estb in 1770, The Another bank in India Which Was Started In 1786 Named General Bank of India
In Present Scenario the largest and oldest bank which still in existence is State bank of India (Merged with all associate banks) Was Started in 1806, State bank of India Earlier known as bank of Calcutta Is Biggest bank in India. The State bank of India were formed and govern under State Bank of India Act, 1959. Which allowed it to work with all 8 associated banks.
1969 Was the Year When nationalization took place for first time and Government of India Approved nationalization of 14 private banks, in which the biggest banks in India was Bank of India.
Reserve bank of India which was formed in 1935 under Reserve bank of India act 1935, is the center bank of India. The role of Reserve bank of India is also known as bank of banks, Due to its responsibility to Manage functioning of all banks in India. Reserve bank of India is also responsible for deciding Rates ( Repo rate, reverse repo rates, CRR, SLR ) as well as financial advisor of government of India.
The banking sector in India is Functioning under two types or Banks In India
or lets say the banking sector is classified into two categories
1. Scheduled banks
2. Non scheduled banks
scheduled banks are those banks which Were added in second schedule of Reserve bank of India act 1934. Non Schedule banks are those banks which Were not Listed in Reserve bank of India act 1934, But still allow to provide banking in India
In Normal terms we can say Scheduled banks are divided in two types of banks in India
1. commercial Banks
2. Co-operative banks
The banks which are operated and functioning under RBI act 1949 are known as commercial banks which may include both scheduled and non scheduled Banks
Scheduled banks are further Divided in to Other banks in India
1. Nationalised banks or Public Sector banks
State bank of India is also a nationalised bank but its a separate entity. so when people ask for “how many nationalised or public sector banks India”, The answer is 21 Including SBI.
Private sector banks are further classified into two types of Private banks in India
1. Old Scheduled private banks in India
2. New scheduled private banks in India
The banks which were formed before 1990 known as old private banks in India
Banking In India is Really a big challenge for bankers, Due to huge population and most of the population in India still lives in rural India, which is still away from banking services. To make banking for everyone government of India further decided to expand banking sector and Regional rural banks took place, these banks were Established In 1975 With The Recommendations of “The Narshimham Committee” Under RRB ACT 1976. Total 57 Regional Rural Banks In India.
Other banks in india
The government policy every moment take care of banking sector along with reserve bank of India, the banking in india is now reaching to rural population too, government is running various schemes like “ jan dhan Yojna” “Sukanya samridhi yojna” to come people and join hands of Indian banking.