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The Banking System In India

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The Bank is a financial institution that performs several functions like accepting deposits, lending loans, agriculture and rural development etc. Bank plays an important role in the economic development of the country. The banking system is considered as the backbone of the economy and it has always played a significant and commendable role towards the growth of the economy of a country. The banks system is in charge of the mobilization of the funds from the areas where the funds are in surplus and distributes them to the deficit sectors to enhance the productivity and makes sure that the efficient utilization of the funds takes place. A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities. …show more content…

After the post economic liberalization and globalization, there has been a significant impact on the banking industry. Banking in India originated in the 18th century. The oldest bank in existence in India is the State Bank of India, a government-owned bank in 1806. SBI is the largest commercial bank in the country. After the independence, Reserve Bank of India was nationalized and given wide powers. Currently, India has 96 Scheduled Commercial Banks, 27 public sector banks, 31 private banks and 38 foreign banks .Today, banks have diversified their activities and are getting into new products and services that include opportunities in credit cards, consumer finance, wealth management, life and general insurance, investment banking, mutual funds, pension fund regulation, stock broking services, etc. Further, most of the leading Indian banks are going global, setting up offices in foreign countries, by themselves or through their …show more content…

In India at present there exist 27 public sector banks. In India the most common example is of SBI (State Bank of India). This has further sub-branches like the State Bank of Travancore, Mysore etc.

Private Banks: These are the banks wherein the majority of the equity is held by individuals, groups of individuals. The sole decision making power lies in its board of members and the owner. At present there are more than 20 private sector banks. The Examples include:-Kotak Mahindra Bank , ICICI , HDFC etc.

Foreign Sector: These are those banks which are present in other countries other than India but these have various branches within India or which have their representative offices within India. The examples for the foreign banks with branches in India are Doha Bank, Royal Bank of Scotland etc. The banks that have their representative’s offices in India include Bank Asya, Emirates NBD

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