Presented on 30/11/2012 Presented By, Siju
To understand the meaning of banks and banking
To know what are the types of banking
To know functions and roles of banking and also the
types of accounts
1. Banks and Banking
3. Types of Banking
4. Role of Banking
5. Functions of Banks
6. Types of Accounts
• A financial institution
• Set up for lending , issuing, exchanging , taking
deposits, safeguarding, or handling money
• 26 Nationalized banks in India
• Business activity
• Accepting and lending money
• To earn profit
History of banks..
Banking in India originated in the year 1770
The State Bank of India started in the year 1955.
The period between 1906 and 1911, saw the
establishment of banks inspired by the Swadeshi
The Reserve bank of India was established in the year
1935, but was nationalized on 1 January 1949 under the
Reserve bank of India Act 1948.
The Banking Regulation Act was enacted in 1949 and
empowered the RBI “to regulate, control, and inspect
the banks in India".
TYPES OF BANKING
E-Banking (Electronic banking )
- ATM, Credit cards, Debit cards
- Use of computer and internet
- Customers can access their accounts through
bank web sites
- Mobile Phones are used
Transactions are executed directly with customers
Stands for "centralized online real-time
Role of Banking
Encourages the saving habit among the people.
Acts as an intermediary
Facilitates business transactions through receipts and
payments by cheques instead of currency.
Provides loans and advances to businessmen for short
term and long-term purposes.
Also facilitates import export transactions.
It helps in national development by providing credit to
farmers, small-scale industries and self-employed
people as well as to large business houses which lead
to balanced economic development in the country.
Helps in raising the standard of living of people in
general by providing loans for purchase of consumer
durable goods, houses, automobiles, etc.
Types of Accounts
- Encourage saving habit among the public
- Low interest
- 5% at present
- Deposited for a specific period of time
- High interest rate
- Withdrawals not allowed
-It is for businessmen
-Operated by salary person and petty traders
- Withdrawals are permitted only after the expiry of
- High interest rate