Types of Banks in India
As per the Federal Reserve Bank of India Act, 1934, banks in India are classified into two major categories.
i.e. scheduled and non-scheduled banks.
A scheduled bank is a bank which name appears within the second schedule of the RBI Act, 1934.
It includes those banks, which have a paid-up capital and reserves of an aggregate value of not but Rs.5 lakhs and which satisfy RBI that their affairs are being administered within the interests of the depositors.
While, non-scheduled banks are those, which haven't been included within the second schedule of the Act.
The scheduled banks includes scheduled commercial banks and scheduled cooperative banks.
(i) Nationalised Banks
(ii) depository financial institution of India and its associates;
(iii) Regional Rural Banks (RRBs);
(iv) Foreign banks; and
(v) Other Indian private sector banks
(vi) Local Area Bank.
Scheduled Co-operative Banks contains
(i) Scheduled State Co-operative Banks and
(ii) Scheduled Urban Co-operative Banks.
Banks in India are controlled, supervised and controlled by Federal Reserve Bank of India.
Central Banking
Commercial Banking
Development Banking (Development Finance Institutions)
Non-Banking financial Institutions
Merchant Banking
Banking structure in India
Reserve Bank of India Development Banks
EXIM Bank
SIDBI
NABARD Commercial Banks
Scheduled Banks Non-Scheduled Banks
Indian Banks Foreign Banks-Branches-Representative Office
Dist. Co-operative Banks
State Co-Operative Banks
Public Sector
Private Sector
State Bank of India
Nationalised Banks
Regional Rural Banks
New Generation Banks
Local Area Banks
Old Banks
Non Banking Finance Companies
Merchant Banking
Other Financial Institutions
Land Mortgage Banks
Industrial Finance Corporation
Agriculture Refinance Corporation
State financial Corporation
The economic Reconstruction Bank of India
Credit Guarantee Corporation of India
The Deposit Insurance Corporation
The credit and Guarantee Corporation
Industrial Development Finance Corp
Industrial Investment Bank of India
There are 12 Nationalised Banks.
and State bank of India.
There were around 45 Regional Rural Banks which were established in each district of the country in partnership with Central Government ( 50% Capital Share) State Government ( 15% Share capital) Sponsor Bank ( 35% capital share).
The Regional Rural Banks are the banks which are established by a bank in a state have now been merged and made as one unit.
Private sector Old Banks Examples
Bank of Rajasthan
Nainital Bank
New Generation Banks Examples
Axis Bank
IDBI Bank
YES Bank
ICICI Bank
Foreign Banks –Example- ABN Amro, Chartered Bank, ANZ Bank, HSBC etc.
Reserve Bank of India is a financial institution of the country was established on 1 April 1935, in accordance with the provisions of the Federal Reserve Bank of India Act, 1934. .
Non-Banking Finance Companies:
According to Federal Reserve Bank (Amendment Act) 1997. “A Non Banking nondepository financial institution Means (NBFC)
A financial organization , which may be a company;
A non-banking institution principal business is receiving of deposits under any scheme or arrangement or in the other manner or lending in any manner;
Such other non-banking institution or class of such institutions because the Bank may with the previous approval of the Central Government specify
Non Banking nondepository financial institution include those finance companies, which are within the business of
Hire Purchase Finance
Housing Finance
Investment
Loan
Equipment Leasing
Mutual benefit financial companies.
Merchant Banking:
Merchant banking is a skill-based activity and includes servicing every need of the client.
Merchant banking activities involves the issue and underwriting of shares and debentures.
Merchant Bankers activities are regulated by Guidelines of SEBI (Securities and Exchange Board of India) and Companies Act, 1956
Listing Guidelines of stock market
Securities Contracts (Regulations) Act, 1956