1. Sardar Patel B,Ed Collage
English Medium Amroli Surat
Year 2013-2014
Project : - Banking
Name : - Sutariya Asha B.
Roll No : - 57
Semester : - 1
Method : - Economics
Submission : - Girish Sir
Date : - 04-10-2013

2. Banking
Banking in India in the modern sense originated in the last decades of the 18th century. The first
banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786 and
since defunct.
The largest bank, and the oldest still in existence, is the State Bank of India, which originated in
the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was
one of the three presidency banks, the other two being the Bank of Bombayand the Bank of Madras,
all three of which were established under charters from the British East India Company. The three
banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence,
became the State Bank of India in 1955. For many years the presidency banks acted as quasi-central
banks, as did their successors, until the Reserve Bank of India was established in 1935.
In 1969 the Indian government nationalised all the major banks that it did not already own and these
have remained under government ownership. They are run under a structure know as 'profit-making
public sector undertaking' (PSU) and are allowed to compete and operate as commercial banks. The
Indian banking sector is made up of four types of banks, as well as the PSUs and the state banks,
they have been joined since 1990s by new private commercial banks and a number of foreign banks.
Banking in India was generally fairly mature in terms of supply, product range and reach-even
though reach in rural India and to the poor still remains a challenge. The government has developed
initiatives to address this through the State bank of India expanding its branch network and through
the National Bank for Agriculture and Rural Development with things like microfinance.

3. Commercial bank
A commercial bank is a type of bank that provides services, such as accepting deposits, giving
business loans and basic investment products.
Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits
and loans from corporations or large businesses, as opposed to individual members of the public
(retail banking).
Commercial banks engage in the following activities:
processing of payments by way of telegraphic transfer, EFTPOS, internet banking, or other means
issuing bank drafts and bank cheques
accepting money on term deposit
lending money by overdraft, installment loan, or other means
providing documentary and standby letter of credit, guarantees, performance bonds, securities
underwriting commitments and other forms of off balance sheet exposures
safekeeping of documents & other items in safe deposit boxes
sales, distribution or brokerage, with or without advice, of: insurance, unit trusts and similar
financial products as a “financial supermarket”
cash management and treasury
merchant banking and private equity financing
traditionally, large commercial banks also underwrite bonds, and make markets in currency, interest
rates, and credit-related securities, but today large commercial banks usually have aninvestment
bank arm that is involved in the mentioned activities[clarify].

4. Savings bank
A savings bank is a financial institution whose primary purpose is accepting savings deposits. It may
also perform some other functions.
In Europe, savings banks originated in the 19th or sometimes even the 18th century. Their original
objective was to provide easily accessible savings products to all strata of the population. In some
countries, savings banks were created on public initiative, while in others, socially committed
individuals created foundations to put in place the necessary infrastructure.
Cooperative banking
A statue of cooperative pioneer Robert Owen stands in front of the Manchesterhead office of the
UK's Co-operative Bank
Cooperative banking is retail and commercial banking organized on a cooperative basis.
Cooperative banking institutions take deposits and lend money in most parts of the world.
Cooperative banking, as discussed here, includes retail banking carried out by credit unions, mutual
savings banks, building societies and cooperatives, as well as commercial banking services provided
by mutual organizations (such as cooperative federations) to cooperative businesses.

5. Mortgage bank
A mortgage bank specializes in originating and/or servicing mortgage loans.
A mortgage bank is a state-licensed banking entity that makes mortgage loans directly to consumers.
The difference between a mortgage banker and a mortgage broker is that the mortgage banker funds
loans with its own capital.
Generally, a mortgage bank originates a loan and places it on a pre-established warehouse line of
credit until the loan can be sold to an investor, such as Fannie Mae, or Freddie Mac.[1] The process of
selling a loan from the mortgage bank to another investor is referred to as selling the loan on
the secondary market.
Mortgage banks frequently use the secondary market to sell loans because the funds received pay down
their warehouse lines of credit which enables the mortgage bank to continue to lend. A mortgage bank is
not regulated as a federal or state bank and does not take deposits from consumers or businesses. A
mortgage bank raises some equity which it uses to guarantee the warehouse line and the bulk of the
funds are provided by the warehouse lender.
A mortgage bank can vary in size. Some mortgage banking companies are nationwide. Some may
originate a large loan volume, exceeding that of a nationwide commercial bank. Many mortgage banks
employ specialty servicers for tasks such as repurchase and fraud discovery work.

6. Central bank
A central bank, reserve bank, or monetary authority is an institution that manages
a state's currency, money supply, and interest rates. Central banks also usually oversee the commercial
banking system of their respective countries. In contrast to a commercial bank, a central bank
possesses a monopoly on increasing the amount of money in the nation, and usually also prints the
national currency, which usually serves as the nation's legal tender.[1][2] Examples include
the European Central Bank (ECB) and the Federal Reserve of the United States.[3]
The primary function of a central bank is to manage the nation's money supply (monetary policy),
through active duties such as managing interest rates, setting the reserve requirement, and acting as
a lender of last resort to the banking sector during times of bank insolvency or financial crisis. Central
banks usually also have supervisory powers, intended to prevent bank runs and to reduce the risk that
commercial banks and other financial institutions engage in reckless or fraudulent behavior. Central
banks in most developed nations are institutionally designed to be independent from political
interference. In most cases they are not public, in the sense that they are neither state-owned nor
directly regulated by government, parliament or another elected body.[4][5] Still, limited control by the
executive and legislative bodies usually exists [6] .[7]
The chief executive of a central bank is normally known as the Governor, President or Chairman.

7. World Bank
The World Bank is an international financial institution that provides loans[3] to developing
countries for capital programs.
The World Bank's official goal is the reduction of poverty. According to its Articles of Agreement
(as amended effective 16 February 1989), all its decisions must be guided by a commitment to the
promotion of foreign investment and international trade and to the facilitation
of capitalinvestment.[4]
The World Bank comprises two institutions: the International Bank for Reconstruction and
Development (IBRD) and the International Development Association (IDA).
The World Bank should not be confused with the World Bank Group, which comprises the World
Bank, the International Finance Corporation (IFC), the Multilateral Investment Guarantee
Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID).[5]