Banking history types services Revolution by bhushank
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This document discusses the history and types of banking in India. It notes that 76% of Indians are not financially literate according to an S&P survey. It then provides information on the key laws governing banking in India - the Reserve Bank of India Act of 1934 and the Banking Regulation Act of 1949. It discusses the origins of banking dating back to 2000 BC in ancient Assyria and Babylonia. It also outlines the various types of banks in India including central banks, commercial banks, cooperative banks, development banks, and investment/merchant banks. For each type of bank, it provides details on their roles and functions. In conclusion, it emphasizes how technology and e-banking have revolutionized the Indian
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Banking history types services Revolution by bhushank
- 3. They do not understand the concepts like INFLATION INTEREST RATE RISK DIVERSIFICATION AND COMPOUNDED INTEREST MICR NEFT RTGS IFSC Fact 76% Indians not financially literate -says S&P survey
- 5. Banking The Reserve Bank of India Act, 1934 and the Banking Regulation Act, 1949, govern the banking operations in India. Banking Regulation Act of India, 1949 defines Banking as “accepting, for the purpose of lending or of investment of deposits of money from the public, repayable on demand or otherwise or withdrawable by cheque, draft order or otherwise.”
- 6. History Of Banking Banking begins with the first prototype banks of merchants of the ancient world. Began around 2000 BC in Assyria and Babylonia. Lenders of ANCIENT GREECE started accepting deposits and changed money. In Italy it began in 11th century. Italy was a biggest Europion trade center. Here banking started because of Circulation of different currency.
- 9. KSFC Different Types Of Banks Types of Banks Central Bank (RBI) Commercial Banks Term Financial Institutions State Finance Corporations (SFCs) Indian Financial Institutions IFCI NABARD SIDBI Public Sector Private Sector Foreign Co- operative Banks Regional Rural Banks SBI PNB BOB HDFC Bank UTI Bank ICICI Bank Citibank HSBC PMCS GCB CCCB
- 10. Commercial Banks • Commercial banks comprising public sector banks, foreign banks, and private sector banks represent the most important financial intermediary in the Indian financial system. The changes in banking structure and control have resulted due to wider geographical spread and deeper penetration of rural areas, higher mobilization of deposits, reallocation of bank credit to priority activities, and lower operational autonomy for a bank management. Public & Private Sector , Foreign Banks Penetration Of Rural Areas Mobilization Of Deposits Loans Credit SBI
- 11. 11 Cooperative Bank – These banks play a vital role in mobilizing savings and stimulating agricultural investment. Co-operative credit institutions account for the second largest proportion of 44.6% of total institutional credit. The co-operative sector is very much useful for rural people. The co-operative banking sector is divided into the following categories. Punjab And Maharashtra Co-op bank Citizen Credit Co-op bank State Co-operative Banks Central Co-operative Banks Primary Agricultural Credit Societies Land Development Banks State Land Development Banks
- 12. 12 Development Banks – A development bank may be defined as a financial institution concerned with providing all types of financial assistance to business units in the form of loans, underwriting, investment and guarantee operations and promotional activities-economic development in general and industrial development in particular – A term lending institution. It is a multipurpose financial institution with a broad development outlook. – The industrial finance corporation of India, the first development bank was established in 1948. Subsequently many other institutions were set-up. Ex. IDBI, IFCI, SIDBI
- 13. 13 Functions of Development Banks – Fostering industrial growth – Providing Long term assistant – Balanced development – Providing Promotional services – Infrastructure building – Entrepreneur Development – Fulfilling Socio economic objectives
- 14. 14 Investment Banks – Meaning: Financial intermediaries that acquire the savings of people and direct these funds into the business enterprises seeking capital for the acquisition of plant and equipment and for holding inventories are called ‘investment banks’. – Features: Long term financing, Security, merchandiser, Security middlemen, Insurer, Underwriter – Functions: Capital formation, Underwriting, Purchase of securities, Selling of securities, Advisory services, Acting as dealer. Investment Bank Cross-Border Transaction Middlemen Long Tem Financing M&A Valuation and Opinion Underwriting
- 15. 15 Merchant Banks • Meaning: Institution that render wide range of services such as the management of customer’s securities, portfolio management, counseling, insurance, etc are called ‘Merchant Banks’. • Functions: Sponsoring issues, Loan syndication, Servicing of issues, Portfolio, management, Arranging fixed deposits, Helps in merger& acquisition • SBI IN 1972
- 16. DON’T GET CONFUSED !!!
- 18. 4Types of banking services INDIVIDUAL BANKING -Saving -Debit / Credit Card -Insurance BUSINESS BANKING -Business Loan -Merchant Services -Checking Accounts -Cash Mgmt DIGITAL BANKING -E-Statement -Online Bill Pay -Text Alert LOAN -Personal Loan -Home Loan Banking Services
- 19. TOP 3 Banks In India -Serving customers since 1955. -Net Profit for 2014 Rs.13101.57 Cr. -Serving customers since 1994. -Net Profit for 2014 Rs.7,488 Cr. -Serving customers since 1894. -Net Profit for 2013 Rs.4,748 Cr.
- 20. The Role of RBI • The Reserve Bank of India (RBI) is the central bank of India, and was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. Since its inception, it has been headquartered in Mumbai. Though originally privately owned, RBI has been fully owned by the Government of India. • RBI is governed by a central board (headed by a Governor) appointed by the Central Government.RBI has 22 regional offices across India.
- 22. A. Bank B. Mutual funds C. Tin Can in your basement or Under your bed If you had Rs.1,00,000 where would you save it until you needed it?
- 23. Common Banking Products Available Debit & Credit Card Automatic Teller Machine Electronic Funds Transfer (EFT) Tele-banking Mobile Banking Internet Banking Deposits, Loans, OD, Insurance, promissory notes, drafts Trading of shares, Underwriting, Portfolio mgmt
- 24. BASEL Framework Bank for International Settlements (BIS) Established on 17 May 1930, the BIS is the world's oldest international financial organization. It has its head office in Basel, Switzerland. BIS fosters co-operation among central banks and other agencies in pursuit of monetary and financial stability. It fulfills this mandate by acting as: A forum to promote discussion and policy analysis among central banks and within the international financial community. A centre for economic and monetary research A prime counterparty for central banks in their financial transactions Agent or trustee in connection with international financial operations
- 26. E-Banking Many banks have modernized their services with the facilities of computer and electronic equipments. The electronics revolution has made it possible to provide ease and flexibility in banking operations to the benefit of the customer. The e-banking has made the customer say good- bye to huge account registers and large paper bank accounts. “Banks Moving From Branch Based To Internet Based Banking”
- 27. Internet Banking 1997 Initiated by ICICI bank in 1997 with the name INFINITY
- 28. Revolutions In Indian Banking Industry Transforming Life Of Millions Core Banking Solution (CBS) MICR and automated cheque clearing Mobile banking As stated by Ms Shikha Sharma, MD and CEO of Axis Bank, “As far as retail banking is concerned, technology would help in building confidence at a low cost. Overall, technology would help to solve complex trade-offs in the future”, we can see the amount of dependency banking industry is showing on IT. Demat Account
- 29. Revolutions In Indian Banking Industry Transforming Life Of Millions Automated teller Machines Smart Cards (Debit & Credit Cards) Internet Banking EFT (Electronic Fund Transfer) Bank2.0
- 30. Financial Literacy As of 29th Sept,2015 Source - wikipedia.org
- 31. Conclusion India is a nation of great savers and not investors. Banks has grown up in past centuries which has a E-future. Branch based banking is becoming Internet based banking. Banking is not just a concept to know but also a way to earn money. “Put money in the market, not in your bank account or under your bed. Don’t let money be idle. Let your money work for you, don’t work for your money.” -Mr.Sabyasachi Mukherjee -Head Personal Investment Counsulting, IIFL
- 33. First Questions And Then Thank You Presentation by, Bhushan R.S Kasture 9168833898/8867180474