1-Introduction to Banking

8/8/2019 1-Introduction to Banking

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Submitted to Miss.Amina

Group members:

Aakanksha. B- 9106Dhanashree.B-9168

Nilesh. J- 9100


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` Development of Banking is evolutionary in

nature.

` Bank performs a multitude of functions and

services.

` In brief, Banking is what bank does.

` The Oxford Dictionary defines a bank as an

establishment for the custody of moneywhich it pays out on a customers order.


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Origin of word bank

Banck German

Banco Italian

Bacus/ Banque

Bank- English


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The origin of modern banks is traced to three

important sources. They are,

i. The goldsmiths

ii. The moneylenders and

iii. The merchant bankers.


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`A bank is an institution which deals in money

and credit

` Bank is an intermediary which handles other

people s money both for their advantage andto its own profit.


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` Section 5(b) defines banking as acceptingfor the purpose of lending or investment ofdeposits of money from the public, repayableon demand or otherwise and withdraw able

by cheque, draft, order or otherwise.` Crowther defines bank as, one that collects

money from those who have it to spare orwho are saving it out of their income and

lends the money so collected to those whorequire it.


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` Dealing in money

` Deposits must be withdrawable

` Dealing with credit

` Commercial in nature

` Nature of agent


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YEAR NAME OF BANK

1157 BANK OF VENICE

1401 BANK OF BARCELONA

1407 BANK OF GENOA

1609 BANK OF AMSTERDAM


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The East India Company had laid the

foundations for modern banking in the first-

half of the 19th century with the

establishment of the following three banks:

NAME OF BANKS YEAR

BANK OF BENGAL 1809

BANK OF BOMBAY 1840

BANK OF MADRAS 1843


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` The above banks are known as PresidencyBanks and functions as a independent units.

` During the last part of 19th century and early

phase of 20th

century, the SwadeshiMovement induced the establishment of anumber of banks with Indian Management.

` Example are shown in table form as follows:


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NAME OF BANKS YEAR

PUNJAB NATIONAL BANK LTD. 1895

THE BANK OF INDIA LTD. 1906

THE CANARA BANK LTD. 1906

THE INDIAN BANK LTD. 1907

THE BANK OF BARODA LTD. 1908

THE CENTRAL BANK OF INDIA

LTD.

1911 AND MANY MORE


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In 1959, the State Bank of India (subsidiary

banks) Act was passed by which the public

sector was further extended.` THE STATE BANK OF BIKANER` THE STATE BANK OF JAIPUR` THE STATE BANK OF INDORE` THE STATE BANK OF MYSORE` THE STATE BANK OF PATIALA

` THE STATE BANK OF HYDERABAD` THE STATE BANK OF SAURASHTRA


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Year End Branches

1998 66408

1999 67157

2000 67868

2001 67937

2002 68195


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` Central Banks

` Commercial Banks

` Industrial or Development Banks

`

Exchange Banks ( Authorised dealers in foreignexchange)

` Co-operative Banks

` Land Mortgage Banks

` Indigenous Banks

` Savings Banks

` Supranational Bank

` International Banks


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` Unit Banking

` Branch Banking

` Correspondent Banking

` Chain Banking

` Group Banking

` Pure Banking

` Mixed Banking` Relationship Banking


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` Narrow Banking

` Universal Banking

` Regional Banking

` Retail Banking

` Wholesale Banking

` Private Banking


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Employment

Income

Savings

InvestmentsProduction

Consumption

Industrial

Development

Banking

System


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IMPORTANCE Capital formation` Creation of money`

Strengthen the link between organised andunorganised sector` Provision of long-term loans` Helping agriculture and small scale industries` Entrepreneurial development` Cheque system - Medium of exchange


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` Regulation of the flow of national savings

` Comprehensive infrastructural facilities

` Maintaining Balance of Trade

` Mitigating the effects of trade cycle

` Sectoral Priorities

` Catalyst in social change

` Effective implementation of monetary policy


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1-Introduction to Banking

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