INDIAN BANKING INDUSTRY

What Is Bank?A bank is an institution which accepts deposits, withdrawals by cheque and makes loans and advances.

A banker is one who in the ordinary course of his business, receives money which he pays by honouring cheques of persons whom or on whose account he receives it.

Types of BanksBanks

CommercialBanksForeign Commercial Banks

Indian Commercial Banks

IndustrialBanksState Level

National Level

AgriculturalBanksCooperative Banks

Land Development Banks

RegionalBanksOther

Apex Banking InstitutionCentral bank

EXIM Banks

National Banks

National Housing Banks

Lists of Banks in India Nationalized Banks Reserve Bank of India State Bank of India State Bank of Patiala Allahabad Bank IDBI Punjab and Sind Bank Punjab National Bank Union Bank Of India Canara Bank

Private Banks Axis Bank HDFC Bank ICICI Bank Kotak Mahindra Bank Induslnd Bank ING Vyasya Bank

Functions Of Banking Industry

Primary Function

Fixed Deposit A/C

Current Deposit A/C

Overdraft

Recurring Deposit A/C

Demand Loan

Discounting Of Bill Of Exchange

DEBIT CARD

CREDIT CARD

Automatic Teller Machine(ATM’s)

PRODUCTSRetail banking• Savings account• Money market account• Certificate of deposit (CD)• Individual retirement account (IRA)• Credit card• Debit card• Home loan• Mutual fund• Personal loan• Time depositsBusiness (or commercial/investment) banking• Business loan• Capital raising (Equity / Debt / Hybrids)• Project finance• Revolving credit• Term loan

Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of risk protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV). The policy value at any time varies according to the value of the underlying assets at the time.

ULIP- UNIT LINKED INSURANCE PLANS

Mutual FundAn investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.

Online banking (or Internet banking or E-banking) allows customers of a financial institution to conduct financial transactions on a secure website operated by the institutionTo access a financial institution's online banking facility, a customer having personal Internet access must register with the institution for the service, and set up some password (under various names) for customer verification. Financial institutions now routinely allocate customer numbers (also under various names), whether or not customers intend to access their online banking facility. Customer numbers are normally not the same as account numbers. The customer will link to the facility those accounts which the customer controls, which may be cheque, savings, credit card and other accounts. To access online banking, the customer would go to their financial institution's website, and enter the online banking facility using the customer number and password. Some financial institutions have set up additional security steps for access, but there is no consistency to the approach adopted.

Mobile Banking

Mobile banking (also known as M-Banking, Mbanking, SMS Banking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA).

According to researches carried out by the Reserve Bank of India (RBI), on an all India basis, 59 per cent of the adult population in the country has bank accounts and 41 per cent don’t. In rural areas, the coverage of banks is 39 per cent, against 60 per cent in urban areas. There is only one bank for a population of13000.

Growth of banking sectors in IndiaThe banking system in India is the most extensive. The total asset value of the entire banking sector in India is nearly US$ 270 billion. The total deposits is nearly US$ 220 billion. Banking sector in India has been transformed completely. Presently the latest inclusions such as Internet banking and Core banking have made banking operations more user friendly and easy.

Problems Related to Banking industry

Competitions amongst Nationalized and Non-Nationalized bank. Problem relating to surplus fund and deficit fund. Recovery of Bad Debts In Long term loans. Implementing the policies Layed down by RBI. Costumer Awareness Communication Gap Between The Costumer And Banking Industry. Insecurity in the minds of people related to the Net Banking Facility. Private banks have more advanced computer technology as compared to Nationalized Bank

ConclusionBanks provide security and convenience for managing your money and sometimes allow you to make money by earning interest. Writing and depositing checks are perhaps the most fundamental ways to move money in and out of a checking account, but advancements in technology have added ATM and debit card transactions. Debit cards provide easy access to the cash in your account. To protect your money from electronic theft, identity theft, and other forms of fraud, it's important to implement basic precautions such as shredding account statements, having complex passwords and only doing online banking through secure internet connections.