The document discusses the banking system in India. It begins by outlining the main functions of banks, including accepting deposits, lending loans, and circulating money in the economy. It then describes the central bank of India, known as the Reserve Bank of India, which regulates the money supply and acts as a bank for the government and other commercial banks. The document also defines the different types of banks in India and introduces commercial banks. It concludes by describing the various relationships that exist between banks and their customers.

1. BANKING, TISS
SUBJECT- FINANCIAL LITERACY
MOHAMMED ZAMEER SHAH, 38
USAMA SHAIKH,41

2. Accepting
deposits
Lending
loans
Circulation
of money in
the
economy
MAIN FUNCTION OF BANKING SYSTEM

3. CENTRAL BANK OF INDIA –
RESERVE BANK OF INDIA
APEX AUTHORITY IN BANKING SYSTEM OF
INDIA , STARTED FUNCTIONING ON 1st
APRIL 1935,AS PER THE PROVISION OF RBI
ACT,1934.
REGULATE SUPPLY OF MONEY IN THE
ECONOMY BY ISSUING MONETARY AND
CREDIT POLICY,
ISSUING OF CURRENCY NOTES,
BANKER FOR GOVERNMENT,
BANKER FOR COMMERCIAL BANKS.

4. TYPES OF BANKS
SCHEDULED BANKS
BANKS THAT ARE REGISTERED
UNDER SECOND SCHEDULE OF
RBI
• SCHEDULED COMMERCIAL
BANKS/NATIONALISED
BANKS,
• STATE CO-OPERATIVES
BANKS
UNSCHEDULED BANKS
BANKS THAT ARE NOT
REGISTERED UNDER SECOND
SCHEDULE OF RBI
• UNSCHEDULED
COMMERCIAL BANKS
• OTHER UNSCHEDULED CO-
OPERATIVE BANKS
• RRB (RURAL REGIONAL
BANKS)

5. INTRODCTION OF COMMERCIAL BANKS
COMMERCIAL BANKS ARE THOSE WHICH
ACCEPT DEPOSITS FROM GENERAL PUBLICS
AND LEND LOANS TO THEM.
INTEREST RATES OF COMMERCIAL BANKS
DEPENDS ON THE CRR, SLR, & BANK RATES
DETERMINED BY RBI
THE RATES AT WHICH COMMERCIAL ACCEPT
DEPOSITS IS KNOWN AS INTEREST RATES & THE
RATES A WHICH RBI LENDS LOANS IS KNOWN AS
LENDING RATES.

6. BASIC NEGOTIABLE INSTRUMENTS
A negotiable
instrument is a
document
guaranteeing the
payment of a specific
amount of money,
either on demand, or
at a set time, with the
payer named on the
document. *TYPES
OF NEGOTIABLE
INSTRUMENTS*
CHEQUE
PROMISSORY
NOTE
BILL OF
EXCHANGE

7. THE BANK-CUSTOMER RELATIONSHIP
 Debtor – Creditor
 Creditor – Debtor
 Principal – Agent
 Bailor – Bailee
 Trustor – Trustee
 Pledger – Pledgee
 Mortgagor – Mortgagee

8. CONCLUSION
• A banker is one who in the ordinary course of his
business, honors cheques drawn upon him by persons
from and for whom he receives money on their account.
No person or body corporate can be a banker who does
not (1) take deposit accounts and current accounts, (2)
issue and pay cheques and (3) collect cheques crossed
and uncrossed for its customers. One claiming to be a
banker must acknowledge himself to be one, and the
public must accept him as such; his main business must
be that of banking from which normally he should be
able to earn his livelihood