BANKING
“BANKING IS WHAT A BANK DOES”
DEFINITION OF BANKING
Banking Regulation Act 1949 defines
banking as, “ACCEPTING FOR THE
PURPOSE OF LENDING AND INVESTMENT,
OF DEPOSITS OF MONEY FROM THE
PUBLIC, REPAYABLE ON DEMAND, ORDER
OR OTHERWISE AND WITHDRAWABLE BY
CHEQUE,DRAFT,ORDER OR OTHERWISE”.
BANK IS PART OF FINANCIAL SYSTEM
Financial system is one
which supplies the necessary financial
inputs for the production of goods and
services. Economic development of any
country depends upon the existence of
well organized financial system.
Financial system
Financial markets
Financial intermediaries
Financial assets
Financial instruments
BANKS
BANKING SYSTEMThere has been a rapid development
in the banking institutions in various
countries. With development, various
systems of banking have come into
existence. Banks can be classified on
the basis of volume of operator,
business pattern & areas of
operations.
COMMON BANKINGSYSTEM
BRANCH BANKING
UNIT BANKING
CORRESPONDANCE BANKNG
DEPOSIT BANKING
INVESTMENT BANKNG
MIXED BANKING
UNIVERSAL BANKNG
CLASSIFICATION OF BANKING
Banking institutions are
indispensable part in a modern
developing society.
On the basis of functions performed
banks can be classified as follows.
BANKING STRUCTURE UNORGANIS
ED
INDIGENIOUS
BANKS
MONEY LENDERS
TRADERS
ORGANISED
COMMERCIAL BANKS
COPOERATIVE BANKSREGIONAL
RURAL BANKS
ALL INDIA FINANCIAL
INSTITUTIONFOREIGN
BANKS
INDUSTRIAL DEVELOPMENT
BANKS
INDIAN BANKING UNIVERSE
INDIAN BANKING UNIVERSE
PUBLIC SECTOR BANKS
26
FOREIGN BANKS
41
PRIVATE BANKS
20
FUNCTIONS OF COMMERCIAL BANK
PRIMARYFUNCTION
SECONDARY
FUNCTION
ACCEPTANCE OF DEPOSITS
ADVANCING OF LOANS & CREDIT
CREATION
INVESTMENT FUNCTION
DEAING IN FOREIGN
EX-CHANGE
PRIMARY FUNCTIO
N
AGENCYSERVICES GENERAL
UTILITY SERVICES
SECONDARY FUNCTIONS
C
RESERVE BANK OF INDIA
RBI was established
in 1st April 1935.
Present governor is
Duvvuri Subbarao.
There are 22 regional
offices and most of
them in share capital.
CENTRAL BANK OF INDIA
It was started as shareholders bank with a paid up capital of 5crores.It was privately owned. In 1949, RBI was fully owned by government.
FIRST GOVERNOR
Sir OSBORNE A.
SMITH. [April 1st 1935
to June 30,1937]
(AUSTRALIA).
FIRST INDIAN GOVERNOR
Sir CHINTAMAN
D. DESHMUKA
(August11,1943 to
June30,1949).
LIST OF GOVERNOR IN RBI
HE IS MR.YAGA
VENUGOPAL REDDY.
HE WAS ELECTED AS
GOVERNOR FROM
PERIOD (6TH
SEPTEMBER 2003 TO
5TH SEPTEMBER 2008).
PRESENT GOVERNOR OF RBI
MR.DUVVURI
SUBBARAO WAS THE
22ND & CURRENT
GOVERNOR OF RBI.
HE ELECTED FOR
PERIOD OF (5TH
SEPTEMBER 2008 TO 4TH
SEPTEMBER 2013).
FUNTIONS OF RBI
To regulate the issue of bank notes and keep reserves , with a view to secure monetary stability in India.Generally to operate the currency and credit system of the country.
ORGANISATIONCENTRAL BOARD---MUMBAI.
LOCAL BOARD----MUMBAI, DELHI,
CHENNAI, KOLKATA.
FUNCTION OF CENTRAL BOARD & LOCAL BOARD
FUNCTION OF CENTRAL BOARD: General superintendence and direction of the bank’s affairs. FUNCTIONS OF LOCAL BOARD: Advise to the Central Board and economic interest of local co-operative indigenous bank.
FUNCTIONS OF RBI
TRADITIONAL FUNCTIONPROMOTIONAL FUNCTIONSUPERVISORY FUNCTION
TRADITIONAL FUNCTION
Monopoly of currency notes issue.
Banker to government (both central
&state)
Agent & Advisor to Government
Banker to Banker’s
Act as clearing house of country
Lender of last resort
Controller of credit
Custodian of foreign exchange reserves.
PROMOTIONAL FUNCTION
Promotion of banking habit and expansion of banking system Provider refinance for expert promotionExpansion of facilities for provision of the agricultural credit through NABARDExtension of n facilities for SBIHelping Co-Operative sectorPrescribe minimum statutory requirement.Innovating new banking business transactions.
SUPERVISIORY FUNCTION
Granting license to banksInspects and makes enquiry in various section of RBI and banking regulations.Implement deposit insurance schemePeriodical review of work of the commercial bankGiving directives to commercial bankControl non banking finance corporationEnsuring health of financial corporation system through on site & offsite verification.
STATE BANK OF INDIA
ACTS AS AGENT OF
RESERVE BANK OF
INDIA.
EVOLUTION OF SBI
EVOLUTION OF SBI CAN BE TRACED BACK
TO THE FIRST DECADE ON 19TH CENTURY.
IT BEGAN WITH ESTABLISHMENT OF
THE BANK OF CALCUTTA ON 2ND JUNE 1806.
ON 2ND JANUARY 1809 RENAMED AS THE
BANK OF BANGAL.
FIRST JOIINT STOCK BANK IN BRITISH INDIA ESABLISHED UNDER THE SPONSORSHIP OF GOVERNMENT OF BENGAL.FOLLOWED BY BANK OF BENGAL: BANK OF BOMBAY-15TH APRIL1840 BANK OF MADRAS-1ST JULY 1843THESE THREE DOMNIATED MODERN BANKING SCENARIO IN INDIA.
THREE BANKS WERE AMALGAMATED TO FORM THE IMPERIAL BANK OF INDIA ON 27TH JANUARY 1921.TO SERVE THE ECONOMY IN ACCORDANCE WITH FIVE YEAR PLAN (1951), THE ALL INDIA RURAL CREDIT SURVEY COMMITTEE PROPOSED THE TALE OVER OF THE IMPERIAL BANK OF INDIA.
AN ACT WAS PASSED IN PARLIMENT OF INDIA IN MAY 1955 . AS A RESULT THE STATE BANK OF INDIA WAS ESTABLISHED ON 1ST JULY 1955.
ON 1959 SBI
[SUBSIDARY BANKS] ACT
WAS PASSED . IT
ENABLED THE SBI TO
MAKE EIGHT STATE
ASSOCIATED BANKS AS
ITS SUBSIDIARIES.
SUBSIDIARIES OFSBI:
STATE BANK OF BIKANER & JAIPUR
STATE BANK OF HYDRABAD
STATE BANK OF MYSORE
STATE BANK OF PATIALA
STATE BANK OF TRAVANGORE
PRODUCTS & SERVICES OF SBI
E-TICKETING
SBI E-TAX
EZTRADE @ SBI
RTGS/NEFT
E-PAYMENTS
FUND TRANSFER
THIRD PARTY TRANSFER
DEMAND DRAFT
CHEQUE BOOK REQUEST
ACCOUNT OPENING REQUEST
ACCOUNT STATEMENT
TRANSACTION ENQUIRY
DEMAT ACCOUNT
DONATION
STATE BANK VIRTUAL CARD
GREEN CHANNEL COUNTER
KIOSK BANKING SYSTEM
RISE OF E-MONEY
CHEQUES
2009-10
2011-12
ELECTRONIC PAYMENTS
2009-10
2011-1265%
52%
35%
48%
RECENT TRENDS
RECENT TRENDS IN COMMERCIAL BANKING
BANKING SECTOR IS THE HEART OF ECONOMY.IN 1969, 14 BANKS WERE NATIONALISED AND FOLLOWED BY 6 BANKS IN 1980.BANKING SECTOR WERE FULLY COMPUTERISED IN 1985.SOME OF THE RECENT TRENDS ::
NET BNKING
It is also known
as Internet banking
or Online Banking.
It is the process of
conducting Banking
transactions over
the internet.
MOBILE BANKING
It is also known
as M-Banking.
The customer
can operate his
account over the
mobile phone.
PHONE BANKING
The customer can
obtain information
about his account
quickly, but however
deposit and withdrawal
cannot be made over
the phone. Otherwise
the information about
his account can obtain.
REAL TIME GROSS SETTLEMENT
It is the system of funds transfer from one to another. The transactions are settled one to one without bunching with any other transactions .Once processed the payments are final and irrevocable. . Minimum amount of remittance is Rs.2 lakhs and no upper ceiling is there.
NATIONAL ELECTRONICFUNDS TRANSFER
It is a system of funds transfer. Its simple, secure, safe, fastest and cost effective pay to transfer of funds. To use this facility they furnish INDIAN FINANCIAL SYSTEM CODE[IFSC], of the beneficiary and also branch name, full account number of the beneficiary. It is chargeable.
MONEYGRAM MoneyGram is a
new internet based
remittance product.
It is cashless money
transfer. These
facilities available to
NRIs to remit money
to India.
XPRESS MONEY
X-Press money offered
in arrangement with M/s
UAE exchange financial
service limited for
remitting money to India.
Money can be remitted
from 180 countries
across the globe.
MINISTRY OF COMPANY AFFAIRS
This facilities is
provided by some
banks only. MCA
Payments can be done
via credit card,
internet banking and
physical challan
currently.
KIOSK BANKING
It performs basic
banking activities.
GREEN CHANNEL COUNTER
STATE BANK OF INDIA
introduced this
services on 1st July
2010 at 57 pilot
branches across
country.
Through this one can
do all works in bank
without using challen.
CHEQUE TRUNCATION SYSTEM
It is a image based
clearing system. It is
issued u/s 18 of the
payment &
settlement system
act 2007.
THANKS FOR WATCHING…
by
3 RD B.COM STUDENTS
STAFF ADVISOR
DR.S.KOTHAI.
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