The banking sector in India functions under the oversight of the Reserve Bank of India. The banking industry consists of scheduled and unscheduled banks. Scheduled banks include commercial and co-operative banks, which are included in the Second Schedule of the RBI Act of 1934. The government has made the Pradhan Mantri Jan Dhan Yojana scheme open-ended and added incentives to promote financial inclusion. Macroeconomic factors like GDP, inflation, interest rates, exchange rates, FDI, and government/RBI policies all impact the banking industry in India.
2. BANKING INDUSTRY IN INDIA
Banking Industry in India functions under
the sunshade of Reserve Bank of India -
the regulatory, Central Bank. Banking
Industry mainly consists of:
1. Scheduled Banks
2. Unscheduled Bank.
The scheduled banking structure in India
consists of:
• Commercial Banks
• Co-operative Banks
Scheduled commercial banks constitute
those banks which have been
included in the Second Schedule of
Reserve Bank of India (RBI) Act, 1934.
3. Government Initiatives
• As of September 2018, the Government of India has made the Pradhan Mantri Jan
Dhan Yojana (PMJDY) scheme an open ended scheme and has also added more
incentives.
BANKING SCENARIO IN INDIA
