Joseph taradyna: DEFINITION OF BANKING Banking Regulation Act 1949 defines banking as, “ACCEPTING FOR THE PURPOSE OF LENDING AND INVESTMENT, OF DEPOSITS OF MONEY FROM THE PUBLIC, REPAYABLE ON DEMAND, ORDER OR OTHERWISE AND WITHDRAWABLE BY CHEQUE,DRAFT,ORDER OR OTHERWISE”

1. BANKING
“BANKING IS WHAT A BANK DOES”

2. DEFINITION OF BANKING
Banking Regulation Act 1949 defines banking as,
“ACCEPTING FOR THE PURPOSE OF
LENDING AND INVESTMENT, OF
DEPOSITS OF MONEY FROM THE PUBLIC,
REPAYABLE ON DEMAND, ORDER OR
OTHERWISE AND WITHDRAWABLE BY
CHEQUE,DRAFT,ORDER OR OTHERWISE”.

3. BANK IS PART OF
FINANCIAL SYSTEM
Financial system is one which
supplies the necessary financial inputs for the
production of goods and services. Economic
development of any country depends upon the
existence of well organized financial system.

4. Financial
system
Financial markets
Financial intermediaries
Financial assets
Financial instruments
B
A
N
K
S

5. BANKING SYSTEM
There has been a rapid development in the
banking institutions in various countries.
With development, various systems of
banking have come into existence. Banks can
be classified on the basis of volume of
operator, business pattern & areas of
operations.

6. COMMON BANKINGSYSTEM
BRANCH BANKING
UNIT BANKING
CORRESPONDANCE BANKNG
DEPOSIT BANKING
INVESTMENT BANKNG
MIXED BANKING
UNIVERSAL BANKNG

7. CLASSIFICATION OF
BANKING
Banking institutions are indispensable
part in a modern developing society.
On the basis of functions performed
banks can be classified as follows.

8. BANKING STRUCTURE
UNORGANISED
INDIGENIOUS
BANKS
MONEY
LENDERS
TRADERS
ORGANISED
COMMERCIAL
BANKS
COPOERATIVE
BANKS
REGIONAL
RURAL BANKS
ALL INDIA
FINANCIAL
INSTITUTION
FOREIGN BANKS
INDUSTRIAL
DEVELOPMENT
BANKS

9. INDIAN BANKING
UNIVERSE
INDIAN
BANKING
UNIVERSE
PUBLIC
SECTOR
BANKS
26
FOREIGN
BANKS
41
PRIVATE
BANKS
20

10. FUNCTIONS OF COMMERCIAL
BANK
PRIMARY
FUNCTION
SECONDARY
FUNCTION

11. ACCEPTANCE OF
DEPOSITS
ADVANCING OF
LOANS & CREDIT
CREATION
INVESTMENT
FUNCTION
DEAING IN
FOREIGN
EX-CHANGE
PRIMARY
FUNCTION

12. AGENCY
SERVICES GENERAL
UTILITY
SERVICES
SECONDARY FUNCTIONS

13. C

14. RESERVE BANK OF INDIA
RBI was established in 1st
April 1935.
Present governor is
Duvvuri Subbarao.
There are 22 regional
offices and most of them in
share capital.

15. CENTRAL BANK OF INDIA
It was started as
shareholders bank with a
paid up capital of
5crores.
It was privately owned.
In 1949, RBI was fully
owned by government.

16. FIRST GOVERNOR
Sir OSBORNE A. SMITH.
[April 1st 1935 to June 30,1937]
(AUSTRALIA).

17. FIRST INDIAN GOVERNOR
Sir CHINTAMAN D.
DESHMUKA
(August11,1943 to
June30,1949).

18. LIST OF GOVERNOR IN RBI
HE IS MR.YAGA
VENUGOPAL REDDY.
HE WAS ELECTED AS
GOVERNOR FROM
PERIOD (6TH SEPTEMBER
2003 TO 5TH SEPTEMBER
2008).

19. PRESENT GOVERNOR OF RBI
MR.DUVVURI SUBBARAO
WAS THE 22ND & CURRENT
GOVERNOR OF RBI.
HE ELECTED FOR
PERIOD OF (5TH
SEPTEMBER 2008 TO 4TH
SEPTEMBER 2013).

20. FUNTIONS OF RBI
To regulate the issue
of bank notes and keep
reserves , with a view to
secure monetary stability
in India.
Generally to operate
the currency and credit
system of the country.

21. ORGANISATION
CENTRAL BOARD---MUMBAI.
LOCAL BOARD----MUMBAI, DELHI,
 CHENNAI, KOLKATA.


22. FUNCTION OF CENTRAL BOARD
& LOCAL BOARD
FUNCTION OF
CENTRAL BOARD:
General superintendence
and direction of the bank’s
affairs.
FUNCTIONS OF LOCAL
BOARD:
Advise to the Central
Board and economic interest
of local co-operative
indigenous bank.

23. FUNCTIONS OF RBI
TRADITIONAL
FUNCTION
PROMOTIONAL
FUNCTION
SUPERVISORY
FUNCTION

24. TRADITIONAL FUNCTION
 Monopoly of currency notes issue.
 Banker to government (both central &state)
 Agent & Advisor to Government
 Banker to Banker’s
 Act as clearing house of country
 Lender of last resort
 Controller of credit
 Custodian of foreign exchange reserves.

25. PROMOTIONAL FUNCTION
Promotion of banking habit and expansion
of banking system
 Provider refinance for expert promotion
Expansion of facilities for provision of the
agricultural credit through NABARD
Extension of n facilities for SBI
Helping Co-Operative sector
Prescribe minimum statutory requirement.
Innovating new banking business
transactions.

26. SUPERVISIORY FUNCTION
Granting license to banks
Inspects and makes enquiry in various
section of RBI and banking regulations.
Implement deposit insurance scheme
Periodical review of work of the
commercial bank
Giving directives to commercial bank
Control non banking finance corporation
Ensuring health of financial corporation
system through on site & offsite verification.

27. STATE BANK OF INDIA ACTS
AS AGENT OF RESERVE
BANK OF INDIA.

28. EVOLUTION OF SBI
EVOLUTION OF SBI CAN BE TRACED BACK TO
THE FIRST DECADE ON 19TH CENTURY.
IT BEGAN WITH ESTABLISHMENT OF THE
BANK OF CALCUTTA ON 2ND JUNE 1806.
ON 2ND JANUARY 1809 RENAMED AS THE
BANK OF BANGAL.

29. FIRST JOIINT STOCK BANK IN
BRITISH INDIA ESABLISHED
UNDER THE SPONSORSHIP OF
GOVERNMENT OF BENGAL.
FOLLOWED BY BANK OF
BENGAL:
BANK OF BOMBAY-15TH
APRIL1840
BANK OF MADRAS-1ST JULY
1843
THESE THREE DOMNIATED
MODERN BANKING SCENARIO IN
INDIA.

30. THREE BANKS WERE
AMALGAMATED TO FORM THE
IMPERIAL BANK OF INDIA ON
27TH JANUARY 1921.
TO SERVE THE ECONOMY IN
ACCORDANCE WITH FIVE YEAR
PLAN (1951), THE ALL INDIA
RURAL CREDIT SURVEY
COMMITTEE PROPOSED THE
TALE OVER OF THE IMPERIAL
BANK OF INDIA.

33.  AN ACT WAS PASSED
IN PARLIMENT OF INDIA
IN MAY 1955 . AS A
RESULT THE STATE BANK
OF INDIA WAS
ESTABLISHED ON 1ST
JULY 1955.

35. ON 1959 SBI [SUBSIDARY
BANKS] ACT WAS PASSED
. IT ENABLED THE SBI TO
MAKE EIGHT STATE
ASSOCIATED BANKS AS
ITS SUBSIDIARIES.

36. SUBSIDIARIES OF
SBI:
STATE BANK OF BIKANER & JAIPUR
STATE BANK OF HYDRABAD
STATE BANK OF MYSORE
STATE BANK OF PATIALA
STATE BANK OF TRAVANGORE

37. PRODUCTS & SERVICES OF SBI
 E-TICKETING
 SBI E-TAX
 EZTRADE @ SBI
 RTGS/NEFT
 E-PAYMENTS
 FUND TRANSFER
 THIRD PARTY TRANSFER
 DEMAND DRAFT

38.  CHEQUE BOOK REQUEST
 ACCOUNT OPENING REQUEST
 ACCOUNT STATEMENT
 TRANSACTION ENQUIRY
 DEMAT ACCOUNT
 DONATION
 STATE BANK VIRTUAL CARD
 GREEN CHANNEL COUNTER
 KIOSK BANKING SYSTEM

39. RISE OF E-
MONEY
CHEQUES
2009-10
2011-12
ELECTRONIC
PAYMENTS
2009-10
2011-12
65%
52%
35%
48%
RECENT TRENDS

40. RECENT TRENDS IN
COMMERCIAL BANKING
BANKING SECTOR IS THE HEART OF
ECONOMY.
IN 1969, 14 BANKS WERE NATIONALISED
AND FOLLOWED BY 6 BANKS IN 1980.
BANKING SECTOR WERE FULLY
COMPUTERISED IN 1985.
SOME OF THE RECENT TRENDS ::

41. NET BNKING
It is also known as
Internet banking or
Online Banking. It is
the process of
conducting Banking
transactions over the
internet.

42. MOBILE BANKING
It is also known as M-
Banking. The
customer can operate
his account over the
mobile phone.

43. PHONE BANKING
The customer can obtain
information about his account
quickly, but however deposit
and withdrawal cannot be made
over the phone. Otherwise the
information about his account
can obtain.

44. REAL TIME GROSS
SETTLEMENT
It is the system of funds
transfer from one to
another. The transactions
are settled one to one
without bunching with any
other transactions .Once
processed the payments are
final and irrevocable. .
Minimum amount of
remittance is Rs.2 lakhs
and no upper ceiling is
there.

45. NATIONAL ELECTRONIC
FUNDS TRANSFER
It is a system of funds
transfer. Its simple, secure,
safe, fastest and cost
effective pay to transfer of
funds. To use this facility
they furnish INDIAN
FINANCIAL SYSTEM
CODE[IFSC], of the
beneficiary and also branch
name, full account number
of the beneficiary. It is
chargeable.

46. MONEYGRAM
MoneyGram is a new
internet based
remittance product. It is
cashless money transfer.
These facilities available
to NRIs to remit money
to India.

47. XPRESS MONEY
X-Press money offered in
arrangement with M/s UAE
exchange financial service
limited for remitting money
to India. Money can be
remitted from 180 countries
across the globe.

48. MINISTRY OF COMPANY
AFFAIRS
This facilities is
provided by some banks
only. MCA Payments can
be done via credit card,
internet banking and
physical challan currently.

49. KIOSK BANKING
It performs basic
banking activities.

50. GREEN CHANNEL COUNTER
STATE BANK OF INDIA
introduced this services
on 1st July 2010 at 57
pilot branches across
country.
Through this one can
do all works in bank
without using challen.

51. CHEQUE TRUNCATION
SYSTEM
It is a image based
clearing system. It is
issued u/s 18 of the
payment & settlement
system act 2007.

52. THANKS FOR WATCHING…
by
3 RD B.COM STUDENTS
STAFF ADVISOR
DR.S.KOTHAI.