Types Of Banking In India
Banking in India has a long and eventful history. Starting with the first bank in India, the Bank of Bengal in 1809, and the oldest bank still in existence, the State Bank of India, which was established in 1845, Indian banking has come a long way. Today, India has a large and diverse banking sector, with banks catering to a variety of different segments of the population.
The different types of banks in India can broadly be classified into four categories – scheduled commercial banks, non-scheduled commercial banks, cooperative banks, and foreign banks.
Scheduled commercial banks are those banks which have been included in the Second Schedule of the Reserve Bank of India (RBI) Act, 1934. As of March 2017, there were 27 public sector banks, 31 private sector banks, 45 foreign banks, and 56 regional rural banks in India which fall under this category.
Non-scheduled commercial banks are commercial banks which have not been included in the Second Schedule of the RBI Act, 1934. These are usually small banks with a limited area of operation.
Cooperative banks are cooperative credit institutions which are owned and managed by their customers – typically, small businesses and farmers. In India, there are three types of cooperative banks – primary agricultural credit societies (PACS), central cooperative banks (CCBs), and state cooperative banks (SCBs). As of March 2016, there were 6,800 PACS, 2,206 CCBs, and 31 SCBs in India.
Foreign banks are those banks which are incorporated in a foreign country but which operate in India. As of March 2017, there were 45 foreign banks operating in India.
The banking sector in India has come a long way since the early days of banking in the country. The different types of banks cater to the diverse needs of the different segments of the population, and the sector as a whole is an important part of the Indian economy.
10 important topics to study in “Types of Banking in India”
1. What are the types of banking in India?
2. What are the main functions of banks in India?
3. How do banks in India help in the development of the economy?
4. What are the guidelines for foreign banks operating in India?
5. What are the restrictions on the activities of banks in India?
6. What are the methods used by banks in India to combat money laundering?
7. What are the steps taken by the government to develop the banking sector in India?
8. What are the problems faced by banks in India?
9. What are the future prospects of banking in India?
10. Which are the leading banks in India?
