Banks are the basic need of any nation. Rotation of money is healthy for any economy, all the world’s bigger economies keep on eyes that the money is rotating well from consumer to banks. This the only cycle to keep and maintain purchasing power of end user. In recent time Indian prime minister made a hard decision of currency demonetization to break the parallel economy which was vanishing the real economy of India. After demonetization of currency, the currency which were stopped or were not in rotation came into banks. Banks play a vital role in currency circulation that’s why they give loans, credits, goodwill, and assurance to third party, letter of credit etc. In India we have seen banking vast changes from nationalization to modernization.
Banks In India has changed them self, either if it is infrastructure or services. Even indian people are more crazy about jobs in banks in india, the jobs in banks are symbol of pride and prestige. These kind of jobs were known as luxury jobs compare to other jobs, as mordenization consist of competition too. Now banks in india deal almost in kind of financial services whether it is insurance, mortgage loan, credit apart from financial services banks are also participating in other Pradhan mantri schemes like aadhar card, jandhanyojna ,sukanyasamridhiyojna.rnEarlier the Concept of banking in india was restricted with Barter System. Where the cost of a good was to be decided by the price of some goods, barter system was a kind of exchange system. Finance Ministry of India Take Care all kind of Banks In India, Finance ministry in india is responsible alter or to make rules. Reserve bank of India is an autonomous body for banking law, That Prior Responsibility running economy and Indian banking industry and well is to Formation.rnAccording to History of Indian Early 18th century was Launched in by banking the Proper. Some How It Has Proof that Gupta Dynasty also ran own banking system. But The Appropriate management of banking in India started With the first bank that was Bank of Hindustan, Headquarterd in Kolkata began in India. Bank of Hindustan formation year was 1770, yet another bank that was started in India was General Bank of India The Formation year was1786.rnIn Current Banking System The which is called greatest and oldest bank with plenty of merger history and still in existence is State bank of India (Merged with all associate banks) Was Started in 1806, State bank of India Previously called bank of Calcutta Which was the Largest bank in India. The Formation of State bank of India happened under State Bank of India Act, 1959, SBI governance and regulation come under State Bank of India Act, 1959. In accordance with this Act SBI was may have 8 associated banks.rnNationalization of indian Banks began in 1969 for first time and 14 banks were nominated by government of india for Nationalisation, where the biggest banks in India was Bank of India.rnReserve bank of India the foundation year is 1935 and work under The central bank of India or reserve bank of india also known as Banks of Banks, because of its Prior Duty to handle operation of all banks in India. Further if discuss Reserve bank of India Responsibilities, It is also responsible for determining Rates and financial advisor to government
The banking industry in India is divided into two types of Banksrn1. Scheduled banksrn2. Non scheduled banksrnSecond schedule of Reserve bank of India act 1934 are called to scheduled banks in India and banks those aren't Recorded in Reserve bank of India act 1934, and can offer banking services such as saving accounts, fixed deposits, loans and credit are known as Nonscheduled banks
If we say in words Banking industry has only 2 kind of banksrn1. Commercial Banksrn2. Co-operative banksrnBanks that are commercial are those Banks which are being operated and served under RBI behave 1949,both scheduled and non scheduled Banks can be commercial banks
Banks are To be further Diversified intorn1. Nationalised banks Also Known as Public sector banks or PSB’srn2. Private Banks rn3. RRB also Known as Regional Rural Banksrn4. Foreign banks or International Banks.
"Number of public Business or nationalised banks India", folks get confused with this answer. Many has said that SBI is a component of banking industry , Yes it is but SBI is not in the in the list of Nationalised banks in india. The response For this Question is 21 Including SBI.
When its come to private Sector banks, Less people know about this Fact that private sector also Has Two type of Private banks in indiarn1. Old Scheduled Private Banks in Indiarn2. New Scheduled Private Banks in India
There's not muchThe Different is that Banks formation took place before 1990 and After 1990 called as New Scheduled Private banks.rnBanking has changed As per their customer requirements, banking are supplying with no support. Mobile Banking and Banking has changed banking transfer of funds by Utilizing RTGS or NEFT has made banking more easy to everybody. As in india is the State demand of branches, of miracles cant be remove frombanking still there Are lot of people who do not use advance mobiles like iOS or android. People Visit with banks and use withdrawal forms or money depositing forms to create transactions. ATM’s Has changed money transactions easy ever. Banking will take time to adopt technology very soon, but CBS Services of banking has removed lot of trouble to customers which was faced after nationalization of banks in 1960.