Workshop on Modern Banking   B.V.Raghunandan, Faculty of Commerce, SVS College, Bantwal.     Kavery College,        Virajp...
Meaning of BankingInvestorWords.com defines bank as, “an organisation, which does most or allof the following: receives de...
Chapter I:Introduction  Functions &         Characteristics1)Accepting Deposits2)Lending or Investment3)Nature of Repaymen...
Significance of BanksSavings Mobilisation            Public FinanceRemittance of Funds             Financing the NationDev...
Evolution of Banking in IndiaPresidency Banks: Bank of Bengal   Nationalisation of 14 Banks-in 1809,Bank of Bombay in 1840...
Composition of Indian Banking SystemReserve Bank ofIndiaCommercial BanksDevelopmentBanksRegional RuralBanksCo-operativeBan...
Reserve Bank of IndiaEstablished in 1935Central Board ofDirectors with 20members1local Board foreach of the fourregionsTra...
Commercial BanksPublic SectorBanks:1+7+14+6=28Private SectorBanks:Indian,foreign& NewGenerationBanksScheduled &Non-Schedul...
Development Banks              IFCI Ltd in 1948              ICICI Ltd in              1955              18 SFCs          ...
Regional Rural BanksProduct of 20 point programme of the govt.(1975)Scheduled Banks & Non-Scheduled BanksTreated as cooper...
Functions of RRBsAccepting DepositsLending & Investment: CRR 3%-small &marginal farmers, SHG, AgriCo-ops, smallentrepreneu...
Co-operative BanksThree Tier StructureDifferent Economic GroupsMost of the Functions of Commercial Banks
Linking SHGs andNABARD                 NGOs                       Kisan Credit Card                       Scheme in collab...
Land Development BanksLong-term finance to agricultureCo-operative institutionsMortgage is created on the land50% of the m...
EXIM Bank        Providing Loans &        Advances        Export Facilitation        Non-Funded Activities        Financin...
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Meaning definition and functions of banking

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Meaning definition and functions of banking

  1. 1. Workshop on Modern Banking B.V.Raghunandan, Faculty of Commerce, SVS College, Bantwal. Kavery College, Virajpet 08-03-2013
  2. 2. Meaning of BankingInvestorWords.com defines bank as, “an organisation, which does most or allof the following: receives demanddeposits and time deposits, pays intereston them, and honours instruments drawnon them, discounts notes, makes loans,and invests in securities; collects cheques,drafts and notes; certifies depositors’cheques; and issues drafts”
  3. 3. Chapter I:Introduction Functions & Characteristics1)Accepting Deposits2)Lending or Investment3)Nature of Repayment4)Mode of Withdrawal5)Joint Stock Company6)License from RBI
  4. 4. Significance of BanksSavings Mobilisation Public FinanceRemittance of Funds Financing the NationDevelopment of Bill Market Risk Free InvestmentWell Developed Money marketDevelopment of Capital Market Corporate Services Social Banking
  5. 5. Evolution of Banking in IndiaPresidency Banks: Bank of Bengal Nationalisation of 14 Banks-in 1809,Bank of Bombay in 1840 1969& Bank of Madras in 1843 Second Dose ofImperial Bank of India -1921 Nationalisation –1980Reserve Bank of India-1935 Narasimham Committee Reforms-1990sState bank of India-1955
  6. 6. Composition of Indian Banking SystemReserve Bank ofIndiaCommercial BanksDevelopmentBanksRegional RuralBanksCo-operativeBanksNABARDLand DevelopmentBanksExim Bank
  7. 7. Reserve Bank of IndiaEstablished in 1935Central Board ofDirectors with 20members1local Board foreach of the fourregionsTraditional centralbanking functionsRegulatoryfunctionsPromotionalfunctions
  8. 8. Commercial BanksPublic SectorBanks:1+7+14+6=28Private SectorBanks:Indian,foreign& NewGenerationBanksScheduled &Non-Scheduledbanks
  9. 9. Development Banks IFCI Ltd in 1948 ICICI Ltd in 1955 18 SFCs Industrial Investment Bank of India (IRCI in 1971 and reincorporated in 1997 IDBI in 1964
  10. 10. Regional Rural BanksProduct of 20 point programme of the govt.(1975)Scheduled Banks & Non-Scheduled BanksTreated as cooperative societiesSponsored by a public sector bank196 RRBs covering 451 districts spread over 23 states having 14,552branchesArea Restriction
  11. 11. Functions of RRBsAccepting DepositsLending & Investment: CRR 3%-small &marginal farmers, SHG, AgriCo-ops, smallentrepreneurs, small traders and smallindustriesMicroFinanceAuthorised Dealers in Foreign Exchange
  12. 12. Co-operative BanksThree Tier StructureDifferent Economic GroupsMost of the Functions of Commercial Banks
  13. 13. Linking SHGs andNABARD NGOs Kisan Credit Card Scheme in collab with RBI,Comm. Banks, Coop BanksSet-up in 1982 Micro-FinanceTook over ARC InitiativeRefinanceInspection of RRBsRouting BranchExpansionapplications of RRBsAsscn with WorldBank & others
  14. 14. Land Development BanksLong-term finance to agricultureCo-operative institutionsMortgage is created on the land50% of the market value of the land given as loanSevere criticisms
  15. 15. EXIM Bank Providing Loans & Advances Export Facilitation Non-Funded Activities Financing Capital Equipments Promoting Joint Ventures Merchant Banking Marketing Facilitation Factoring and Farfaiting Services Part Financing Consultants Providing Venture Capital
  16. 16. THANK YOU

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