There are several types of banks in India. The main types are scheduled banks, which must meet certain criteria to be included in the second schedule of the RBI Act, and non-scheduled banks. Scheduled banks can be further divided into public sector banks that are majority owned by the government, private sector banks owned by private individuals, foreign banks registered abroad but operating in India, and cooperative banks established under the Cooperative Credit Societies Act. Other bank types include regional rural banks focused on rural agriculture financing, and the State Bank of India which was formed when the government took over the Imperial Bank of India.

1. TYPES OF BANK
Presented by :-
Surabhi Prajapati
Somya Agrawal

2. Banks
Commercial Regional Cooperative
Banks Rural Banks Banks
Non
Scheduled
Scheduled
Banks
Banks
Indian Foreign
Banks Banks
Public Private
Sector Sector
State Bank Nationalized
of India bank

3. SCHEDULED BANKS
 Scheduled commercial banks are those included in the
second schedule of the Reserve Bank of India Act,
1934.
 For this, they have to satisfy three conditions:
 It must have paid-up capital and reserves of an
aggregate value of atleast Rs. 5 lakhs.
 It is carrying on the business of banking in India.
 It must be a corporation or cooperative society and
not a partnership or sole proprietorship firm.

4. SCHEDULED BANKS
INDIAN BANKS FOREIGN BANKS
 Registered or incorporated in  Registered or incorporated in
India. their home country, not in
 They have their headquarter India.
in India and can have  They have their office and/or
branches all over India. branches in India.
 They can also operate in  They play an important role in
foreign countries. shaping the attitude and
policies of foreign govt.,
companies and their clients
towards India.

5. PUBLIC SECTOR BANKS
 Public sector banks are
banks in which the
government has a major
holding.
 At least 51% ownership
is vested with the
government.
 The shares of these banks
are listed on stock
exchanges.

6. STATE BANK OF INDIA
 Government of India State Bank Group
entered in commercial  State Bank of Hyderabad
banking when it took  State Bank of Patiala
over Imperial Bank of
 State Bank of Travancore
India and converted into
State Bank of India on 1  State Bank of Bikaner &
July 1955. Jaipur
 It was first one to make  State Bank of Maysore
public issue in 1993-94  State Bank of Saurashtra
after which the share  State Bank of Indore
holding of RBI has come
down to 68.93%.

7. NATIONALIZED BANKS
 In 1969, 14 banks with deposit base  Andhra Bank
of Rs. 50 Crores or more were
nationalized. In 1980,, 6 more  Punjab National Bank
banks were nationalized.
 This step brought more than 90% of
 Indian Overseas Bank
commercial banking in the public  IDBI
sector.
 The main function of nationalised  Allahabad Bank
bank is provide finance for the  Syndicate Bank
housing projects, health facilities
and increase the chance to  UCO Bank
providinig the products and
services to the people of rural areas.  Dena Bank

8. PRIVATE BANKS
 All those banks in which
majority of stake are held by
private individuals
 The banks, which came in
operation after 1991, with the
introduction of economic
reforms and financial sector
reforms are called "new
private-sector banks“
 New banks are strategic in
their thinking and operations.

9. NON SCHEDULED BANKS
 The banks which are not included in the 2nd schedule of RBI Act,
1934.
 These also have to maintain statutory cash reserve but not with
RBI.
 Their banking activities are limited, e.g., they cannot deal in
foreign exchange.
 The share of these banks are almost nil.

10. REGIONAL RURAL BANKS
 They were set up on the Features of RRB:
recommendation of Narasimham  The area of RRB is limited to only a
Committee in 1975. region, comprising of some district
 The objective was to provide credit of a state
and other facilities to small and  These banks grant loan only to the
marginal farmers, agricultural rural agriculture sector and small
labours and artisans. artisans.
 RRBs are working in all states  The lending rates would be some
what lower than the commercial
except GOA and Sikkim.
banks.
 They are governed by Regional  These are intended to eliminate
Rural Bank act, 1976 money lenders.
 50% capital is provided by central  These banks are to supplement the
govt., 15% by state govt., 35% by effort of cooperative banks.
sponsoring public sector bank.

11. COOPERATIVE BANKS
 Cooperative banking is a Feature of cooperative banks:
 Government sponsored, supported
small scale banking carried and subsidized financial agencies in
on a no profit no loss basis India.
 Work on the principle of cooperation,
for mutual cooperation and self help and mutual help.
help.  They function on “no profit no loss”
 Engaged in financing rural basis.
 Perform limited banking functions.
and agricultural development.  Some of them are scheduled banks
 They are established under but most are non- scheduled banks.
 Cooperative banks are financial
the Cooperative Credit intermediaries only because a
Societies Act of 1904. significant amount of their
borrowings is from the RBI,
NABARD, central and state
government and cooperative apex
institutions.

12. CONT…
Characteristics
 Customer owned
Entity
 Democratic Control
 Profit Allocation

13. QUESTIONS???

14. Thank You