The Modern Indian Banking System

INDIAN SCENARIO

Historical perspective

In modern Indian banking system was initiated with the establishment of the presidency bank in 1809 in Karnataka and the Presidency bank at 1844 in Madras. It was nationalized on January 1, 1943 in a post independent period witnessed the tremendous growth in India, under the term of Reserve bank of India, 1948. In 1939, the Banking Regulation Act was enacted and got approved by the Reserve bank of India to plan, implement, control and regulate the bank in India. The Banking Regulation Act is also provided the number of few new banks or branches of an existing bank would be opened with a license approved by both central bank and the Reserve bank of India. Here, the RBI acted as banker, both to the central

RBI provides short-term credit to the both central government and state government and regulates monetary policies. Such credits help the government to meet any shortfalls in its receipts over its distribution of money. RBI that is backed up by assets of equal value held by this department. Asset consists of gold, silver, coin, foreign securities, rupee coin and the government’s rupees coin. During the process of nationalization of banks, despite control and regulation by the Reserve bank of India, bank in India expects the state bank of India continued to be owned and 322 operated by private personnel. But by that time the Indian banking industry had grown in size and employed a large number of people thus became important tool for development of Indian economy. In order to ensure more equitable and purposeful distribution of credit on July 19, 1969 the Government of India controlled an overwhelming majority of the banking business in

In February 2003, Kotak Mahindra Finance Limited was given the license to carry on doing with banking business which was approved by the Reserve bank of India. Kotak Mahindra is first company in the Indian banking history to convert from Corporate to Bank. This approval created a big history in banking industry and it is the non-banking finance company in India to convert itself in to a bank as Kotak Mahindra bank, the this bank is one of the fast growing bank and it seems to be growing in high pace and best financial intuitions in the country.

The bank has over 326 branches all over the India and customer account base of over 2.7 million. Spread all over the india, not just in metros but also in rural and semi urban India as well, it is redefining the reach and power of banking.

Presently it is engaged in all financial services, securities , mutal fund ,investment banking service and online banking service. It delivers values to financial needs of individuals and corporate solutions. The bank has international presence all over the country with offices in London, New York, Dubai, Russia ,Canada, USA, Mauritius San Francisco and Singapore that specialized in providing services to overseas investors to invest in