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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 | IF: 4.101

IV. STRUCTURE OF INDIAN BANKING SYSTEMSTRUCTURE OF INDIAN BANKING SYSTEM

Figure7: Structure of Indian Banking SystemFigure7: Structure of Indian Banking System

RESERVE BANK OF INDIA (RBI): b
banks are scheduled banks. Nonanks are scheduled banks. Non- scheduled banks are
The country had no central bank earlier to the The country had no central bank earlier to the not involved in the second schedule of the RBI Act, involved in the second schedule of the RBI Act,
establishment of the RBI. The RBI is the supreme establishment of the RBI. The RBI is the supreme 1934. At present there are merely three such banks in 1934. At present there are merely three such banks in
regulatory and banking authority in the country and regulatory and banking authority in the country and the country.
controls the banking system in India. It is called the controls the banking system in India. It is called the
Reserve Bank’ as it keeps the reserves of all Reserve Bank’ as it keeps the reserves of all REGIONAL RURAL BANKS:BANKS:
The Regional Rural Banks (RRBs) the newest form of he Regional Rural Banks (RRBs) the newest form of
commercial banks. T
banks, came into presence in the middle of 1970s anks, came into presence in the middle of 1970s
b
COMMERCIAL BANKS: (these are sponsored by individual nationalized red by individual nationalized
Commercial banks organize savings of general public Commercial banks organize savings of general public commercial banks) with the objective of developing commercial banks) with the objective of developing
and make them accessible to large and small industrial and make them accessible to large and small industrial rural economy by providing credit and deposit rural economy by providing credit and deposit
and trading units mainly for working capital and trading units mainly for working capital facilities for agriculture and other productive activities facilities for agriculture and other productive activities
requirements. Commercial banks in India are private Commercial banks in India are private of all kinds in rural areas.The importance is on of all kinds in rural areas.The importance is on
sector with a few foreign banks and largely Indianforeign banks and largely Indian- providing such facilities to small and marginal ities to small and marginal
public sector and. The public sector banks account for public sector and. The public sector banks account for farmers, rural artisan’s, agricultural laborers, and farmers, rural artisan’s, agricultural laborers, and
more than 92 percent of the entire banking business in more than 92 percent of the entire banking business in other small entrepreneurs in rural areas.other small entrepreneurs in rural areas.
India—occupying a leading position in the occupying a leading position in the
commercial banking. The State Bank of India and its commercial banking. The State Bank of India and its COOPERATIVE BANKS:
7 associate banks along with another 19 banks are the long with another 19 banks are the Cooperative banks are organized under the provisions organized under the provisions
public sector banks. o
of the Cooperative Credit Societies Act of the states. f the Cooperative Credit Societies Act of the states.
The major recipient of the Cooperative Banking is the ajor recipient of the Cooperative Banking is the
SCHEDULED AND NON-SCHEDULEDSCHEDULED BANKS: a
agricultural sector in particular and the rural sector in gricultural sector in particular and the rural sector in
The scheduled banks are preserved in the second The scheduled banks are preserved in the second general.Long-term agriculture credit is provided by term agriculture credit is provided by
schedule of the RBI Act, 1934. These banks have a schedule of the RBI Act, 1934. These banks have a the Land Development Banks. The funds of the RBI the Land Development Banks. The funds of the RBI
paid-up capital and reserves of a combinedcombined value of meant for the agriculture sector actually pass tmeant for the agriculture sector actually pass through
not less than Rs. 5lakhs, they have to please the RBI please the RBI CCBs and SCBs. The cooperative credit movement CCBs and SCBs. The cooperative credit movement
that their affairs are carried out in the interest of their that their affairs are carried out in the interest of their has now spread to urban areas also and there are many has now spread to urban areas also and there are many
depositors. All regional rural banks, commercial regional rural banks, commercial urban cooperative banks coming under SCBs.urban cooperative banks coming under SCBs. The
banks (Indian and foreign), and state cooperative banks (Indian and foreign), and state cooperative cooperative credit institutions operating in the country cooperative credit institutions operating in the country

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