1 ion to Banks
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Transcript of 1 ion to Banks
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BankBank AA bankbank isis anan institutioninstitution whichwhich dealsdeals withwith thethemoneymoney andand creditcredit inin suchsuch aa mannermanner thatthat isisacceptsaccepts depositsdeposits fromfrom thethe publicpublic andand makesmakes thethe
surplussurplus fundsfunds availableavailable toto thosethose whowho needneed them,them,andand helpshelps inin remittingremitting moneymoney fromfrom oneone placeplace totoanotheranother safelysafely..
A A bankbank isis aa financialfinancial institutioninstitution whosewhoseprimaryprimary objectiveobjective isis toto actact asas aa paymentpayment agentagentforfor customerscustomers andand toto borrowborrow andand lendlend moneymoney
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A bank may be defined as:A bank may be defined as:
AA bankbank isis aa commercialcommercial establishmentestablishment whichwhichdealsdeals inin debtsdebts andand aimsaims atat earningearning profitsprofits bybyacceptingaccepting depositsdeposits fromfrom generalgeneral publicpublic atatlarge,large, whichwhich isis repayablerepayable onon demanddemand ororotherwiseotherwise throughthrough chequecheque oror bankbank draftsdraftsandand otherwiseotherwise whichwhich areare usedused forfor lendinglending totothethe borrowersborrowers oror investedinvested inin GovernmentGovernmentsecuritiessecurities
TheThe BankingBanking CompaniesCompanies RegulationRegulation ActAct 19491949
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Types of BanksTypes of Banks
Banks may be classified as Follows:Banks may be classified as Follows:
On the basis of RBI scheduleOn the basis of RBI schedule
On the basis of OwnershipOn the basis of Ownership
On the basis of DomicileOn the basis of Domicile On the basis of FunctionOn the basis of Function
RBI ScheduleRBI Schedule Scheduled banksScheduled banks
Non Scheduled banksNon Scheduled banks
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OwnershipOwnership
Public Sector bankPublic Sector bank
Private Sector bankPrivate Sector bank
Co operative bankCo operative bank
DomicileDomicile
Domestic banksDomestic banks
Foreign banksForeign banks
FunctionsFunctions
Retail banksRetail banks
Commercial banksCommercial banks
Investment banksInvestment banks
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RBI Scheduled banksRBI Scheduled banks
Scheduled BanksScheduled Banks ThoseThose banksbanks whichwhich areare includedincluded inin thethe listlist
ofof secondsecond scheduleschedule ofof RBIRBI areare knownknown asasscheduledscheduled banksbanks..
AA bankbank mustmust followfollow thesethese conditionsconditions toto bebeincludedincluded inin thethe secondsecond scheduleschedule ofof RBIRBI
PaidPaid upup capitalcapital andand ReserveReserve MustMust bebe ofof RsRs 55
lakhslakhs
TheThe bankingbanking operationoperation areare notnot detrimentaldetrimental totothethe interestinterest ofof thethe depositorsdepositors..
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ItIt mustmust bebe aa corporationcorporation oror cooperativecooperative society,society,notnot aa singlesingle ownerowner firmfirm oror partnershippartnership firmfirm..
NonNon ScheduledScheduled BanksBanks
AllAll thosethose banksbanks whichwhich areare notnot includedincluded ininthethe secondsecond scheduleschedule ofof RBIRBI areare knownknown asasNonNon ScheduledScheduled banksbanks..
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On the basis of OwnershipOn the basis of Ownership
Public Sector banksPublic Sector banks TheThe banksbanks whichwhich areare ownedowned oror controlledcontrolled byby
thethe GovernmentGovernment areare calledcalled publicpublic sectorsectorbanksbanks..
PrivatePrivate SectorSector banksbanks
ThoseThose banksbanks whichwhich areare notnot ownedowned oror
controlledcontrolled byby thethe GovernmentGovernment whereaswhereascontrolledcontrolled andand ownedowned byby thethe privateprivate sectorsectorii..ee..,, privateprivate individualsindividuals oror corporationscorporations..
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CoCo--operative banksoperative banks
TheThe institutionsinstitutions establishedestablished onon thethe principleprinciple ofofcoco operationoperation forfor dealingdealing inin ordinaryordinary bankingbankingbusinessbusiness isis knownknown asas coco operativeoperative bankbank..
TheseThese areare thethe specialspecial typetype ofof banksbanks doingdoingordinaryordinary bankingbanking businessbusiness inin whichwhich thethemembersmembers coco operateoperate withwith eacheach otherother forfor thethepromotingpromoting ofof theirtheir commoncommon economiceconomic interestinterest..
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On the basis of DomicileOn the basis of Domicile
DomesticDomestic banksbanks ThoseThose banksbanks whichwhich areare incorporatedincorporated andand
registeredregistered inin IndiaIndia areare calledcalled domesticdomesticbanksbanks..
ForeignForeign banksbanks
ThoseThose banksbanks whichwhich areare setset upup inin aa foreignforeigncountrycountry withwith theirtheir controlcontrol andand managementmanagement
inin thethe handshands ofof headhead officeoffice inin theirtheir countrycountryofof originorigin areare calledcalled asas foreignforeign banksbanks..
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On the basis of FunctionsOn the basis of Functions
RetailRetail BankBank
A A retailretail bankbank isis aa bankbank thatthat worksworks withwithconsumers,consumers, otherwiseotherwise knownknown asas 'retail'retail
customerscustomers..
RetailRetail banksbanks provideprovide basicbasic bankingbanking servicesservices totothethe generalgeneral public,public, includingincluding::
Savings account, bill paying servicesSavings account, bill paying servicesMortgage and Personal loanMortgage and Personal loan
Debit and Credit cardsDebit and Credit cards
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Commercial BankCommercial Bank
CommercialCommercial banksbanks handlehandle bankingbanking needsneeds forfor
largelarge andand smallsmall businessesbusinesses includingincluding::
CurrentCurrent AccountAccount
LendingLending moneymoney forfor realreal andand capitalcapitalpurchasespurchases
LettersLetters ofof creditcredit
PaymentPayment andand transactiontransaction processingprocessing
ForeignForeign exchangeexchange
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Investment Banks
An investment bank is a financial institutionthat assists corporate in raising capital byunderwriting and/or acting as the client's
agent in the issuance of securities.
These banks may also assist companiesinvolved in mergers and acquisitions, and
provides ancillary services such as marketmaking, trading of derivatives, fixed incomeinstruments, foreign exchange, commodities,and equity securities.
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Types of Bank deposit Accounts
Individual account
Joint accounts
Partnership accounts
Sole proprietary accounts
Company accounts
Government, Societies, Clubs accounts
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Features of bank deposit
Bank deposit are fairly safe because banks aresubject to control of the Reserve Bank of Indiawith regard to several policy and operational
parameters. Bank deposit enjoy exceptionally high liquidity.
They can be enchased prematurely by incurring asmall penalty.
Loans can be raised against bank deposits.
The rate of interest may change from time to timeaccording to the rules of Reserve bank of India.