Commercial Banks In India

Banks in India  On

The Basis Of Domicile: (1) Domestic Bank (2) Foreign Banks  On The Basis of Second Schedule of RBI Act: (1) Scheduled Bank (2) Non-Scheduled Bank  On The Basis of Ownership: (1) Public Sector Banks (2) Private Sector Banks (3) Co-operative Banks (4) Regional Rural Banks

Banks In India on the Basis of Functions       

Commercial Banks Industrial Banks Agricultural Banks Exchange Banks Saving Banks Indigenous Banks Central Bank

COMMERCIAL BANKS IN INDIA  Promoting

Capital Formation  Facilitator of Monetary Policy  Monetisation  Influence Economic Activity  Directing Funds into Desired Channels  Implementation of the Policies of Govt.  Encouraging Innovations

Functions of Commercial Banks 1. Basic Function: (i) Mobilization of Deposits.  Saving Deposit Account  Fixed Deposit Account  Recurring Deposit Account  Current Deposit Account  Flexible Deposit Account

Functions of Commercial Banks  (ii)

Credit Deployment:  Money at Call  Cash Credit  Overdraft  Discounting Bills of Exchange  Term Loan (iii) Credit Creation

Agency Functions      

Remittance of Funds Collection & Payment of Credit Instruments Execution of standing orders Sale and Purchase of securities Trustees and Executors of Wills Collection of Dividend on Shares and Interest on Debentures

General Utility Functions      

Locker Facility Traveller’s Cheque Facility Merchant Banking Service Acting as Underwriters Acting an Information Provider Acting as a Referee

Development Functions     

Capital Formation Rural Development Priority Sector Advances Creating Employment Assistance of Money & Capital Market

Modern Functions     

ATMs Tele-Banking Internet Banking Smart Cards Round the Clock Banking