The document provides information on various banking institutions in India such as the Reserve Bank of India (RBI), nationalized banks, private sector banks, foreign banks, cooperative banks, regional rural banks, local area banks, and non-banking financial companies (NBFCs). It discusses the roles of these institutions, acts/laws that established them, ownership structures, functions, and regulatory authorities. The RBI, established in 1935, is the central banking authority that regulates the banking system and implements monetary policy in India.

2. RESERVE BANK OF INDIA
Commercial Banks Regional Rural Bank Cooperative Banks Local Area Banks
Public Sector Banks Private Sector Banks Foreign Banks
SBI Group Rest

3. BANKS YEAR ACT
Reserve Bank Of India April 1, 1935(Established)
Year 1949 (Nationalised)
RBI act, 1934
National Bank For
Agriculture and Rural
Development
July 12, 1982
Export and Import Bank Year 1982 EXIM act 1981
Small Industries
Development Bank Of
India
April 2, 1990 SIDBI act 1989
National Housing Bank July 9, 1988 NHB act,1987

4.  Why Called National/ Apex Level Institutions ??
1. They Don’t Directly Deal with the Public.
2. They are Regulator of their Specialised activities.
3. They don’t have their Branches.
4. Established with Specific Objective.
 In 2006, SME( Small medium Enterprises) named as MSME(Micro small and
Medium enterprises) under MSMED act, 2006.
 There are Two Types of Banking : Unitary Banking.
Branch Banking.
 There are 644 Districts in India.
 NABARD hire DDM( District Development Manager), 644 DDM.

5. STAGE 1 : Apex Level Institutions.
STAGE 2 : Commercial Banks.
STAGE 3 : Regional Rural Banks.
STAGE 4 : Cooperative Banks.
 Nationalisation Means Indication of Ownership, that is stake of Government.
 HDFC( Housing Development Finance Corporation) formed HDFC Bank.
 UTI get converted into AXIS Bank.
 ICICI gets Converted into ICICI Bank.
 Public Sector Bank have 70% of Business Share and Private Sector have 30%.
 Two new Banks formed : 1. BANDHAN BANK.
2. IDFC BANK.
 In 1955, Imperial Bank of India get nationalised as State Bank Of India (SBI).

6. 1. Public Sector Banks 2. Private Sector Banks 3. Foreign Banks
1. SBI group 2. Rest of others
State Bank Of India (19 nationalised
+ banks)
5 Subsidiary Banks
 In 1969, 14 Banks get Nationalised.
 In 1980, 6 Banks get Nationalised.
 There are 27 nationalised Banks i.e 19 Rest of Others, 6 SBI Group, IDBI Banks, Bhartiya Mahila Bank.

7.  Regional Rural Banks were Established on 2 Oct, 1975.
 OBJECTIVE :
1. Conversion of Class Banking into Mass Banking.
2. Eliminate Financial Untouchability.
3. Local Feel with Local Zeal.
STAKE/ EQUITY HOLDING IN RRB’s :
Central Govt. = 50%
State Govt. = 15%
Sponsoring Bank = 35%
 RRB’s is Regulated by NABARD and RBI.

8.  Principle Of Cooperation : Thrift, Saving, Investment.
 Three Stages Of Cooperative Banks :
State Level
District Level
Village Level( PACS)
 PACS stand for Primary Agriculture Cooperative Societies.
 Cooperative Banks regulated by NABARD and RBI.

9.  It was Introduced on 24 August,1996 by Reserve bank Of India.
 Only 4 LAB’s are Functioning at Present.
 Name Of the Banks : Costal Local Area Bank Ltd.
Capital Local Area Bank Ltd.
Krishna Bhima Samruddhi Local Area Bank Ltd.
Subhadra Local Area Bank ltd.
 The Minimum Start up Capital Of a LAB was Fixed at Rs.5 crore.

10.  NBFC stands for Non Banking Financial Companies.
 It is Registered under Companies act, 1956.
 Banking VS NBFC :
1. They cannot accept demand deposits
2. They do not form part of the Payment and settlement system
3. They cannot issue Cheque drawn on itself.
4. Deposit Insurance Facility of deposit Insurance and Credit
Guarantee Corporation is not available to depositors of NBFC.
 Types Of NBFC’s : 1. Assets Finance Company (AFC).
2. Investment Company (IC).
3. Loan Company ( LC).
4. Infrastructure Finance Company (IFC).
5. Infrastructure Debt Fund (IDF).
6. Micro Finance Institution (MFC).
7. Systematically Important Core Investment Company(CIC-ND-SI).

11. CBA : Central Banking Authority.
In USA, US Federal Reserve.
In UK, Bank Of England.
In INDIA, Reserve Bank Of India.
 RBI started its Functioning on 1 April 1935 under the provision of RBI Act,1934.
 It started as Joint Stock Company, Nationalised on 1st January, 1949.
 RBI maintain Stability Of Domestic Currency( INR).
 RBI Publishes Two Balance Sheet.
Objective of RBI : Primary objective of BFS is to undertake consolidated supervision
of the financial sector comprising commercial banks,
financial institutions and non-banking finance companies.

12. i. Act as a Monetary Authority.
ii. Issuer Of Currency.
iii. Bankers to the Government.
iv. Banker to the Bank.
v. Lender To the Last Resort.
vi. Custodian Of Forex Reserve.
vii. Maintain Exchange Rate Stability.
viii. Regulator For Banking Industry.
ix. Regulator For Money Market.
x. Other Functions : Research and Development.
Manager Of Govt. Debt.
Training and Development Of Banking Industry.

13.  There are Two Major Policy of Government : i) Monetary Policy.
ii) Fiscal Policy.
 Monetary Policies is Implemented and Monitored by RBI, Whereas Fiscal Policy
Implemented and Administrated by Govt. Of India.
 RBI is Issuer Of Currency not Printer Of Currency.
 Currency Chest : It is Currency Depot Of RBI.
 Securities Issued by Central/state Govt. are Sold/Purchased by RBI. This is Called Merchant
Banking Function.
Stock of Notes/coins
CB/COP.B/RRB/LAB
Issue to
Public

14. SUBSIDIARY OF RBI
 1. Bhartiya Reserve Bank Note Mudrana Pvt. Ltd. (It Prints notes for RBI).
 It came into Force on February, 1995.
 Before 1995, Note is Printed at Nasik(Maharashtra) and Devas( Madhya Pradesh).
 After 1995, Two more notes Printing companies are at Mysore(Karnataka) and
salboini( West Bengal).
 Mysore and salboini were managed by RBI and Nasik and Devas were managed by GOI.
 Other Subsidiary : 2.NABARD
3.NHB
4. DICGC ( Deposit Insurance & credit Guarantee Corporation)

15.  Legal Tender : INR is Legal Tender, It is Legally accepted and Nobody is allowed to
Reject it in the country.
 Currency Paper : made up of Cotton & Cotton Fibre, manufactured in India only.
 Including Front Language ( English & Hindi), There is 17 language on Notes.
Excluding both, There is 15 Language.
 Coins and Notes are Legal Tender.
 10000 is Highest Denomination for Which Notes Can be Printed.
 5000, 10000 Notes were Demonetised in 1978.
 Currency is Bearer Promissory Note, It is liability for RBI as RBI is Issuing Notes to pay others.
 Best Secured Currency in the World Is UK POUND( GBP).