Role Of Commercial Banking

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The banking framework in India has assumed a critical part in Indian economy. It was instrumental in social and monetary charges since nationalization of real banks in 1969. System of branches expanded from 8262 in 1969 to 67118 in June 2004, diminishing the populace secured per branch of commercial bank from 66,000 to 16,000. At present 290 banks are working in the nation, comprising of 27 open part banks, 30 private division banks and 32 outside banks, 196 local banks and 5 non-booked neighborhood. Private area banks have share of 8.5 percent in branch connect with 5,737 branches of which 50 percent are in urban and metro urban communities. More than 90 percent branches working in the nation are possessed by Public part banks, of which 70…show more content…
It is a bank that lends money and provides transactional, savings, and money market accounts and that accepts time deposit. Commercial bank being the financial institution performsdiverse types of functions. It satisfies the financial needs of the sectors such as agriculture, industry, trade, communication, etc. That means they play very significant role in a process of economic social needs. The functions performed by banks are changing according to change in time and recently they are becoming customer centric and widening their functions.
1.4.3 Cooperative Banks
Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world. Cooperative banking, includes retail banking carried out by credit unions, mutual savings banks, building societies and cooperatives, as well as commercial banking services provided by mutual organizations (such as cooperative federations) to cooperative businesses. There are basically two types of cooperative banks:
i. Urban Co-Operative Banks ii. State Co-Operative
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100 crores.
• The promoters holding should be a minimum of 25% of the paid-up capital.
• Within 3 years of the starting of the operations, the bank should offer shares to public.
History of Indian banking: Merchants in Calcutta set up the Union Bank in 1839, yet it bombed in 1848 as a result of the financial emergency of 1848-49. The Allahabad Bank, built up in 1865 and as yet working today, is the most established Joint Stock bank in India.(Joint Stock Bank: An organization that issues stock and obliges shareholders to be held obligated for the organization's obligation) It was not the first however. That respect has a place with the Bank of Upper India, which was built up in 1863, and which made due until 1913, when it fizzled, with some of its advantages and liabilities being exchanged to the Alliance Bank of Simla. Post-Independence: The parcel of India in 1947 antagonistically affected the economies of Punjab and West Bengal, deadening banking exercises for a considerable length of time. India's autonomy denoted the finish of an administration of the Laissez-faire for the Indian banking. The Government of India started measures to assume a dynamic part in the monetary existence of the country, and the Industrial Policy Resolution received by the legislature in 1948 conceived a blended

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