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T.Y.BCom (Banking & Insurance)

SEMESTER V Academic Year - 2011-12

ROYAL COLLEGE of Arts Science and Commerce Mira Road (East)

After studying this project, you will be able to:

State the meaning of bank Explain the role of banking Identify the different types of banks Describe the functions of a commercial bank; and New trends in banking

I would firstly like to thank my institution and sincerely thank our PRINCIPAL SIR PROF. A.E. LAKDAWALA, JOINT PRINCIPAL MADAM PROF. KAMALA ARUNACHALAM, and VICE PRINCIPAL MADAM PROF. MALEKA BOOTWALA for providing me support and giving me an opportunity for doing B & I course and completing this project. I also take an opportunity it highlight the invaluable contribution of our B & I COORDINATOR PROF. KAMAL ROHRA who encouraged me and has guided me in my research project with his vast fund of knowledge, advice and constant encouragement. I kindly appreciate his implicit and valuable contribution in drawing up this project. I am also thankful to my PROJECT GUIDE PROF. Jalpa parekh for his invaluable support and ready help in completing my project. I also thank GOD, MY PARENTS AND ALL MY COLLEAGUES without whom this project would have not been completed. I would also like to thank all those whom I have forgotten to mention in this space. Thank you


While walking in the streets of any town or city you might have seen some signboards on buildings with names-Canara Bank, Punjab National Bank, State Bank of India, United Commercial Bank, etc. What do these names stand for? Did you ever try to know about them? If you enter any such building you will find some kind of a business office. You will see some employees sitting behind counters dealing with visitors standing in front of them. You will find that some are depositing money at one counter while some are receiving money at another counter. Behind the counters in the office you will see tables and chairs occupied by officers. On one side of the office you will also see a chamber (small partitioned room) where the manager is sitting with papers on his table. This is the office of a Bank. But any time you tried to know what bank is. Why this type of business is conducted in our country from where this business is arise. What is the main purpose of this business? So Let us know in detail about banks and their activities.


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What is Bank? Form where the name Bank come form? The name bank derives from the Italian word banco, desk, used during the Renaissance by Florentines bankers, who used to make their transactions above a desk covered by a green tablecloth.

Banks are among the main participants of the financial system in India. Banking offers several facilities & Opportunities. This section provides comprehensive and updated information, guidance and assistance on all areas of banking in India. Bank is a commercial or state institution that provides financial services, including issuing money in form of coins, banknotes or debit cards, receiving deposits of money, lending money and processing transactions. A commercial bank accepts deposits from customers and in turn makes loans based on those deposits. Some banks (called Banks of issue) issue banknotes as legal tender. Many banks offer ancillary financial services to make additional profit; for example, most banks also rent safe deposit boxes in their branches. Currently in most jurisdictions commercial banks are regulated and require permission to operate. Operational authority is granted by bank regulatory authorities who provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. A commercial bank is usually defined as an institution that both accepts deposits and makes loans; there are also financial institutions that provide selected banking services without meeting the legal definition of a bank. Banks have influenced economies and politics for centuries. The primary purpose of a bank was to provide loans to trading companies. Banks provide funds to allow businesses to purchase inventory, and collected those funds back with interest when the goods were sold. For centuries, the banking industry only dealt with businesses, not consumers. Commercial lending today is a very intense activity, with banks carefully analysing the financial condition of its business clients to determine the level of risk in each loan transaction. Banking services have expanded to include services directed at individuals and risks in these much smaller transactions are pooled. A bank generates a profit from the differential between what level of interest it pays for deposits and other sources of funds, and what level of interest it charges in its lending activities. This difference is referred to as the spread between the cost of funds and the loan interest rate. Historically, profitability from lending activities has been cyclic and dependent on the needs and strengths of loan customers. In recent history, investors have

demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees, primarily loan fees but also including service charges on array of deposit activities and ancillary services (international banking, foreign exchange, insurance, investments, wire transfers, etc.). However, lending activities still provide the bulk of a commercial bank's income.

Definition of Banking Business

Banking as defined in the Section 5 (b) of the Banking Regulations Act, 1949 is the business of "Accepting deposits of money from the public for the purpose of lending or investment". These deposits are repayable on demand or otherwise, and withdraw by a cheque, draft, order or otherwise. The deposits accepted by Banking Company are different from those accepted by Non Banking Finance Company or any other company in the nature in which these are repayable. Banks are the only financial institutes which can accept demand deposits (Saving / Current) which can be withdrawn by a cheque. Section 6 of Banking Regulations Act, 1949 elaborately specifies the other forms of business which a banking company may carry in addition to banking as defined in section 5. These include in a nutshell

Issuing Demand Drafts & Travellers Cheques Collection of Cheques, Bills of exchange Discounting and purchase of Bills Safe Deposit Lockers Issuing Letters of Credit & Letters of Guarantee Sales and Purchase of Foreign Exchange Custodial Services Investment services doing all such other things as are incidental or conducive to the promotion or advancement Any other form of business which the Central Government may, by notification in the

of the business of the company;

Official Gazette, specify as a form of business in which it is lawful for a banking company to engage. No banking company shall engage in any form of business other than those referred to above


The History of Bank

The history of banking is closely related to the history of money. As monetary payments became important, people looked for ways to safely store their money. As trade grew, merchants looked for ways of borrowing money to fund expeditions.

Earliest banks
The first banks were probably the religious temples of the ancient world, and were probably established sometime during the 3rd millennium B.C. Banks probably predated the invention of money. Deposits initially consisted of grain and later other goods including cattle, agricultural implements, and eventually precious metals such as gold, in the form of easy-to-carry compressed plates. Temples and palaces were the safest places to store gold as they were constantly attended and well built. As sacred places, temples presented an extra deterrent to would-be thieves. There are extant records of loans from the 18th century BC in Babylon that were made by temple priests to merchants. By the time of Hammurabi's Code, banking was well enough developed to justify the promulgation of laws governing banking operations.[1] Ancient Greece holds further evidence of banking. Greek temples, as well as private and civic entities, conducted financial transactions such as loans, deposits, currency exchange, and validation of coinage. There is evidence too of credit, whereby in return for a payment from a client, a moneylender in one Greek port would write a credit note for the

client who could "cash" the note in another city, saving the client the danger of carting coinage with him on his journey. Pythius, who operated as a merchant banker throughout Asia Minor at the beginning of the 5th century B.C., is the first individual banker of whom we have records. Many of the early bankers in Greek city-states were metics or foreign residents. Around 371 B.C., Pasion, a slave, became the wealthiest and most famous Greek banker, gaining his freedom and Athenian citizenship in the process.

The fourth century B.C. saw increased use of credit-based banking in the Mediterranean world. In Egypt, from early times, grain had been used as a form of money in addition to precious metals, and state granaries functioned as banks. When Egypt fell under the rule of a Greek dynasty, the Ptolemies (330-323 B.C.), the numerous scattered government granaries were transformed into a network of grain banks, centralized in Alexandria where the main accounts from all the state granary banks were recorded. This banking network functioned as a trade credit system in which payments were effected by transfer from one account to another without money passing.

In the late third century B.C., the barren Aegean island of Delos, known for its magnificent harbor and famous temple of Apollo, became a prominent banking center. As in Egypt, cash transactions were replaced by real credit receipts and payments were made based on simple instructions with accounts kept for each client. With the defeat of its main rivals, Carthage and Corinth, by the Romans, the importance of Delos increased. Consequently it was natural that the bank of Delos should become the model most closely imitated by the banks of Rome.

Ancient Rome perfected the administrative aspect of banking and saw greater regulation of financial institutions and financial practices. Charging interest on loans and paying interest on deposits became more highly developed and competitive. The

development of Roman banks was limited, however, by the Roman preference for cash transactions. During the reign of the Roman emperor Gallienus (260-268 CE), there was a temporary breakdown of the Roman banking system after the banks rejected the flakes of copper produced by his mints. With the ascent of Christianity, banking became subject to additional restrictions, as the charging of interest was seen as immoral. After the fall of Rome, banking was abandoned in Western Europe and did not revive until the time of the crusades.



Evolution of Bank in India

Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865.

By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers.

Early history:
At the end of late-18th century, there were hardly any bank in India in the modern sense of the term. At the time of the American Civil War, a void was created as the supply of cotton to Lancashire stopped from the Americas. Some banks were opened at that time which

functioned as entities to finance industry, including speculative trades in cotton. With large exposure to speculative ventures, most of the banks opened in India during that period could not survive and failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century.

At the beginning of the 20th century, Indian economy was passing through a relative period of stability. Around five decades have elapsed since the India's First war of Independence, and the social, industrial and other infrastructure have developed. At that time there were very small banks operated by Indians, and most of them were owned and operated by particular communities. The banking in India was controlled and dominated by the presidency banks, namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras - which later on merged to form the Imperial Bank of India, and Imperial Bank of India, upon India's independence, was renamed the State Bank of India. There were also some exchange banks, as also a number of Indian joint stock banks. All these banks operated in different segments of the economy. The presidency banks were like the central banks and discharged most of the functions of central banks. They were established under charters from the British East India Company. The exchange banks, mostly owned by the Europeans, concentrated on financing of foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency banks, and the exchange banks. There was potential for many new banks as the economy was growing. Lord Curzon had observed then in the context of Indian banking: "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." Under these circumstances, many Indians came forward to set up banks, and many banks were set up at that time, and a number of them set up around that time continued to survive and prosper even now like Bank of India and Corporation Bank, Indian Bank, Bank of Baroda, and Canara Bank.


The partition of India in 1947 had adversely impacted the economies of Punjab and West Bengal, and banking activities had remained paralyzed for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of The Banking Regulation Act also provided that no new bank or branch of an existing bank

it became an institution owned by the Government of India.

India (RBI) "to regulate, control, and inspect the banks in India."

may be opened without a license from the RBI, and no two banks could have common directors. However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalization of major banks in India on 19th July, 1969.

By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. At the same time, it has emerged as a large employer, and a debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation."


The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquition and Transfer of Undertaking) Bill, and it received the presidential approval on 9th August, 1969.

A second dose of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the nationalisation was to give the government more control of credit delivery. With the second dose of nationalisation, the GOI controlled around 91% of the banking business of India. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

In the early 1990s the then Narasimha Rao government embarked on a policy of liberalization and gave licences to a small number of private banks, which came to be known as New Generation tech-savvy banks, which included banks such as UTI Bank (the first of such new generation banks to be set up), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, kickstarted the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 49% with some restrictions.


The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more.

Types of Banks
There are various types of banks which operate in our country to meet the financial requirements of different categories of people engaged in agriculture, business, profession, etc. On the basis of functions, the banking institutions in India may be divided into the following types: Types of Banks Central Bank (RBI, in India) Development Banks Specialized Banks (EXIM Bank SIDBI, NABARD) Co-operative Banks (i) Primary Credit Societies (ii) Central Co-operative Banks (iii) State Co-operative Banks\

Commercial Banks (i) Public Sector Banks (ii) Private Sector Banks (iii) Foreign Banks Now let us learn about each of these banks in detail.



Reserve Bank of India

As in many developing countries, the central bank is seen as a key institution in bringing about development and growth in the economy. In the initial years of the RBI before independence, the banking network was thinly spread and segmented. Foreign banks served foreign firms, the British army and the civil service. Domestic/Indian banks were linked to domestic business groups and managing agencies, and primarily did business with their own groups. The coverage of institutional lending in rural areas was poor despite the cooperative movement. Overall financial intermediation was weak. In an agrarian economy, where more than three-fourth of the population lived in the rural areas and contributed more than half of GDP, a constant and natural concern was agricultural credit. Therefore, almost every few

years a committee was constituted to examine the rural credit mechanism. There has perhaps been one committee every two or three years for over a hundred years.

A clear objective of the development role of the RBI was to raise the savings ratio to enable the higher investment necessary for growth, in the absence of efficient financial intermediation and of a well developed capital market. The view was that the poor were not capable of saving and, given the small proportion of the population that was well off, the only way to kick start the savings and investment process in the country was for government to perform both functions. Thus the RBI was seen to have a legitimate role to assist the government in starting up several specialized financial institutions in the agricultural and industrial sectors, and to widen the facilities for term finance and for facilitating the institutionalization of savings. A special need was felt for accelerating industrial investment, particularly with the launching of the Second Five Year Plan in 1956. Over time, various term lending industrial finance institutions were established with varying degrees of RBI involvement: the Industrial Finance Corporation of India (IFCI), State Financial Corporations (SFCs), Industrial Development Bank of India (IDBI) and the Industrial Credit and Investment Corporation of India (ICICI).

The traditional concern with agricultural credit continued and the Agriculture Finance Corporation was established in 1963, followed by its transformation into the National Bank for Agriculture and Rural Development in 1982 for extending refinance for short, medium and long term finance for agriculture. The Unit Trust of India was established in 1964 to mobilize resources from the wider public and to provide an opportunity for retail investors to invest in the capital market, thereby also aiding capital market development.


The National Housing Bank was set up in the late 1980s to develop housing finance and the Infrastructure Development Finance Company (IDFC) in the late 1990s for infrastructure finance. The Reserve Bank also actively promoted financial institutions to help in developing the Government securities market. The Discount and Finance House of India (DFHI) was set up in 1988; primary dealers were promoted in the late 1990s; and the Clearing Corporation of India was incorporated in 2001 to upgrade the financial infrastructure in respect of clearing and settlement of debt instruments and foreign exchange transactions. More recently, the Board for Regulation and Supervision of Payment and Settlement System has been constituted in 2005, and the Banking Codes and Standards Board of India in 2006 to develop a comprehensive code of conduct for fair treatment of bank customers. The RBI has been continuously involved in setting up or supporting these institutions with varying degrees of involvement, including equity contributions and extension of lines of credit. Thus, the developmental role of the RBI has spanned all the decades since independence and is quite different from central banks in developed countries. Although the Reserve Bank was actively involved in setting up many of these institutions, the general practice has been to hive them off as they came of age, or if a perception arose of potential conflict of interest. There can be little doubt that the establishment of these institutions has helped financial development in the country greatly, even though some of them have been less than successful in their functioning. It can be argued, of course, that similar institutional development could have taken place through private sector efforts or by the Government. The availability of financial sector expertise in the Reserve Bank, however, was instrumental in these tasks being performed over time by the Reserve Bank

Objectives for Setting up the Central Bank

As per preamble to the Reserve Bank of India Act, 1934, it is mentioned as under: "to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."

Administrative Set-up i. Central Board RBI is governed by the Central Board, which is appointed/nominated by the Government of India for a period of four years. The Central Board consists of the Governor and four Deputy Governors, as official Directors. Additionally there are 14 non-official directors. 10 of them are nominated by Government from various fields and one government Official. The remaining four Directors are selected one each from four local boards.

ii. Local Boards There are four Local Boards one each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi. Membership of the Local Boards consists of five members each. They are appointed by the Central Government for a term of four years While Central Board looks after general superintendence and direction of the Bank's affairs, the function of the Local Boards is to advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks; to perform such other functions as delegated by Central Board from time to time.

Functions of RBI Main Functions 1. Monetary Authority: Formulates implements and monitors the monetary policy.

Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors.

2. Regulator and supervisor of the financial system: Prescribes broad parameters of banking operations within which the country's banking and financial system functions. Objective: maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public.

3. Manager of Exchange Control: Manages the Foreign Exchange Management Act, 1999. Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.

4. Issuer of currency: Issues and exchanges or destroys currency and coins not fit for circulation. Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.

Developmental role Performs a wide range of promotional functions to support national objectives. Related Functions

1. Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker. 2. Banker to banks: maintains banking accounts of all scheduled banks.


Expansion of Banking
In the initial years of the RBI, considerable progress was made in extending the banking system but there was continuing concern about the overall accessibility of banking to the needy. In terms of coverage, many rural and semi-urban areas were yet to be covered by banking services. The transformation of the Imperial Bank of India into the State Bank of India in July 1955 was mainly motivated by the desire to extend branches across the country to stimulate banking activity. It was in continuation of the same policy to serve the needs of the developing economy that 14 large banks were nationalized in 1969 followed by six more in 1980. The nationalization of banks, mainly attempted to align banking activities with national concerns and norms, as it was perceived that the private banks neither understood social responsibilities nor observed social obligations. The general inclination in the 1950s, 1960s and 1970s was essentially to get Government to become active in economic activities where it was felt that the private sector was not able or willing to perform actively. As a result of nationalization, the total number of branches rose from 8,262 in 1969 - to 60,220 in 1991 and those in rural areas from 1,833 to 35,206. The increased network of branches certainly led to a large expansion of rural credit. This dimension of nationalisation and expansion had its impact on the functioning and working of the RBI. Despite such vast expansion, it is interesting that we still have concern with financial inclusion today.


Development of the Payments System:

The development of a payments system is one development role that is common to most central banks. It is well recognized that an efficient payment and settlement system is essential for a well functioning modern financial system. Therefore, in recent years, banks have been making efforts to upgrade payments and settlement systems utilizing the latest technology. One of the characteristic features of the Indian economy, historically, has been the widespread use of cash in the settlement of most financial transactions. While this has been the trend for several years, it is noteworthy that India had pioneered the use of non-cash based payment systems long ago, which had established themselves as strong instruments for the conduct of trade and business. The most important form of credit instrument that evolved in India was termed as Hundis and their use was reportedly known since the twelfth century. Hundis were used as instruments of remittance, credit and trade transactions. In modern times, with the development of the banking system and higher turnover in the volume of cheques, the need for an organized cheque clearing system emerged. In India, clearing associations were formed in the Presidency towns in the nineteenth century and the final settlement between member banks was effected by means of cheques drawn on the Presidency Banks. With the setting up of the Imperial Bank in 1921, settlement was done through cheques drawn on that bank. After the establishment of the RBI in 1935, the Clearing Houses in the Presidency towns were taken over by the RBI, and continued for more than five decades. In recognition of the importance of payment and settlement systems, the RBI had taken upon itself the task of setting up a safe, efficient and robust payment and settlement system for the country for more than a decade now. In the recent past, the RBI has been placing emphasis on reforms in the area of payment and settlement system. It was with this objective that the Real Time Gross Settlement (RTGS) system was planned, which has been operationalised in March 2004. The system, once fully operational, in its present form, would take care of all inter-bank transactions and other features would be added soon.

In view of the positive response to reforms in the financial sector and the banking segment also coming of age, the RBI has now taken the policy perspective of migrating away from the actual management of retail payment and settlement systems. Thus, for a few years now, the task of setting up new MICR based cheque processing centers has been delegated to the commercial banks. This approach has yielded good results and the RBI now envisions the normal processing functions to be managed and operated by professional organizations, which could be constituted through participation of commercial banks. This would be applicable to the clearing houses as well, which will perform the clearing activities, but the settlement function will continue to rest with the RBI. A beginning has been made in the form of the operations performed by the Clearing Corporation of India Ltd. for affecting the clearing processes related to money, government securities and foreign exchange markets. Under this arrangement, the RBI will continue to have regulatory oversight over such functions without actually acting as the service provider. The RTGS, which provide for funds transfers across participants in electronic mode with reduced risk, will continue to be operated by the RBI.


CHAPTER 6 Setup of the State Bank of India

The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernize India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock banking in India. So was the associated innovation in banking, viz. the decision to allow the Bank of Bengal to issue notes, which would be accepted for payment of public revenues within a restricted geographical area. This right of note issue was very valuable not only for the Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to the capital of the banks, a capital on which the proprietors did not have to pay any interest. The concept of deposit banking was also an innovation because the practice of accepting money for safekeeping (and in some cases, even investment on behalf of the clients) by the indigenous bankers had not spread as a general habit in most parts of India. But, for a long time, and especially upto the time that

the three presidency banks had a right of note issue, bank notes and government balances made up the bulk of the investible resources of the banks. The three banks were governed by royal charters, which were revised time to time. Each charter provided for a share capital, four-fifth of which were subscribed and the rest owned by the provincial government. from privately

The members of the board

of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.



Commercial Banking
The commercial banking structure in India consists of:

Scheduled Commercial Banks Unscheduled Banks

Scheduled commercial Banks constitute those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (60 of the Act. Some cooperative banks are scheduled commercial banks albeit not all co-operative banks are. Being a part of the second schedule confers some benefits to the bank in terms of access to accommodation by RBI during the times of liquidity constraints. At the same time, however, this status also subjects the bank certain conditions and obligation towards the reserve regulations of RBI. This sub sector can broadly be classified into: Types of Commercial banks: Commercial banks are of three types i.e., Public sector banks, Private sector banks and foreign banks.

Public Sector Banks: These are banks where majority stake is held by the Government of India or Reserve Bank of India. Examples of public sector banks are: State Bank of India, Corporation Bank, Bank of Boroda and Dena Bank, etc.


Private Sectors Banks: In case of private sector banks majority of share capital of the bank is held by private individuals. These banks are registered as companies with limited liability. For example: The Jammu and Kashmir Bank Ltd., Bank of Rajasthan Ltd., Development Credit Bank Ltd, Lord Krishna Bank Ltd., Bharat Overseas Bank Ltd., Global Trust Bank, Vysya Bank, etc. (iii) Foreign Banks:

These banks are registered and have their headquarters in a foreign country but operate their branches in our country. Some of the foreign banks operating in our country are Hong Kong and Shanghai Banking Corporation (HSBC), Citibank, American Express Bank, Standard & Chartered Bank, Grindlays Bank, etc. The number of foreign banks operating in our country has increased since the financial sector reforms of 1991.

Development Banks

Business often requires medium and long-term capital for purchase of machinery and equipment, for using latest technology, or for expansion and modernization. Such financial assistance is provided by Development Banks. They also undertake other development measures like Public Sector Banks comprise 19 nationalized banks and State Bank of India and its 7 associate banks. Business Studies 8 subscribing to the shares and debentures issued by companies, in case of under subscription of the issue by the public. Industrial Finance Corporation of India (IFCI) and State Financial Corporations (SFCs) are examples of development banks in India.

Co-operative bank
Types of Co-operative Banks There are three types of co-operative banks operating in our country. They are primary credit societies, central co-operative banks and state co-operative banks. These banks are organized at three levels, village or town level, district level and state level.

Primary Credit Societies: These are formed at the village or town level with borrower and non-borrower members residing in one locality. The operations of each society are restricted to a small area so that the members know each other and are able to watch over the activities of all members to prevent frauds.


Central Co-operative Banks: These banks operate at the district level having some of the primary credit societies belonging to the same district as their members. These banks provide loans to their


members (i.e., primary credit societies) and function as a link between the primary credit societies and state co-operative banks.

State Co-operative Banks: These are the apex (highest level) co-operative banks in all the states of the country. They mobilize funds and help in its proper channelization among various sectors. The money reaches the individual borrowers from the state co-operative banks through the central co-operative banks and the primary credit societies.

Specialized Banks
There are some banks, which cater to the requirements and provide overall support for setting up business in specific areas of activity. EXIM Bank, SIDBI and NABARD are examples of such banks. They engage themselves in some specific area or activity and thus, are called specialized banks. Let us know about them.
1. Export

Import Bank of India (EXIM Bank):

If you want to set up a business for exporting products abroad or importing

products from foreign countries for sale in our country, EXIM bank can provide you the required support and assistance. The bank grants loans to exporters and importers and also provides information about the international market. It gives guidance about the opportunities for export or import, the risks involved in it and the competition to be faced, etc.

2. Small Industries Development Bank of India (SIDBI):

If you want to establish a small-scale business unit or industry, loan on easy terms can be available through SIDBI. It also finances modernization of small-scale industrial units, use of new technology and market activities. The aim and focus of SIDBI is to promote, finance and develop small-scale industries.

3. National Bank for Agricultural and Rural Development (NABARD):

It is a central or apex institution for financing agricultural and rural sectors. If a person is engaged in agriculture or other activities like handloom weaving, fishing, etc. NABARD can provide credit, both short-term and long-term, through regional rural banks. It

provides financial assistance, especially, to co-operative credit, in the field of agriculture, small-scale industries, cottage and village industries handicrafts and allied economic activities in rural areas.

Functions of Commercial Banks

The functions of commercial banks are of two types. A. B. Primary functions; and Secondary functions.

Let us discuss details about these functions.

a) b)

Primary functions
The primary functions of a commercial bank include: Accepting deposits; and Granting loans and advances.

a) Accepting deposits The most important activity of a commercial bank is to mobilize deposits from the public. People who have surplus income and savings find it convenient to deposit the amounts with banks. Depending upon the nature of deposits funds deposited with bank also earn interest. Thus, deposits with the bank grow along with the interest earned. If the rate of interest is higher, public are motivated to deposit more funds with the bank. There is also safety of funds deposited with the bank. b) Grant of loans and advances The second important function of a commercial bank is to grant loans and advances. Such loans and advances are given to members of the public and to the business community at a higher rate of interest than allowed by banks on of loan and also the mode of repayment. i) Loans A loan is granted for a specific time period. Generally commercial banks provide short-term loans. But term loans, i.e., loans for more than a year may also be

various deposit accounts.

The rate of interest charged on loans and advances varies according to the purpose and period

granted. The borrower may be given the entire amount in lump sum or in instalments. Loans are generally granted against the security of certain assets. A loan is normally repaid in instalments. However, it may also be repaid in lump sum. ii) Advances An advance is a credit facility provided by the bank to its customers. It differs from loan in the sense that loans may be granted for longer period, but advances are normally granted for a short period of time. Further the purpose of granting advances is to meet the day-to-day requirements of business. The rate of interest charged on advances varies from bank to bank. Interest is charged only on the amount withdrawn and not on the sanctioned amount. Types of Advances Banks grant short-term financial assistance by way of cash credit, overdraft and bill discounting. Let us learn about these. a) Cash Credit: Cash credit is an arrangement whereby the bank allows the borrower to draw amount upto a specified limit. The amount is credited to the account of the customer. The customer can withdraw this amount as and when he requires. Interest is charged on the amount actually withdrawn. Cash Credit is granted as per terms and conditions agreed with the customers. b) Overdraft: Overdraft is also a credit facility granted by bank. A customer who has a current account with the bank is allowed to withdraw more than the amount of credit balance in his account. It is a temporary arrangement. Overdraft facility with a specified limit may be allowed either on the security of assets, or on personal security, or both. c) Discounting of Bills Banks provide short-term finance by discounting bills, that is, making payment of the amount before the due date of the bills after deducting a certain rate of discount. The


party gets the funds without waiting for the date of maturity of the bills. In case any bill is dishonoured on the due date, the bank can recover the amount from the customer.

B. Secondary functions
In addition to the primary functions of accepting deposits and lending money, banks perform a number of other functions, which are called secondary functions. These are as follows. a) b) c)

Issuing letters of credit, travelers cheque, etc. Undertaking safe custody of valuables, important document and securities by Providing customers with facilities of foreign exchange dealings. Transferring money from one account to another; and from one branch to Standing guarantee on behalf of its customers, for making payment for purchase Collecting and supplying business information. Providing reports on the credit worthiness of customers. Providing consumer finance for individuals by way of loans on easy terms

providing safe deposit vaults or lockers.

another branch of the bank through cheque, pay order, demand draft. e) f) g)

of goods, machinery, vehicles etc.

for purchase of consumer durables like televisions, refrigerators, etc. h) Educational loans to students at reasonable rate of interest for higher studies, especially for professional courses. Waited




In the five decades since independence, banking in India has evolved through four distinct phases. During Fourth phase, also called as Reform Phase, Recommendations of the Narasimham Committee (1991) paved the way for the reform phase in the banking. Important initiatives with regard to the reform of the banking system were taken in this phase. Important among these have been introduction of new accounting and prudential norms relating to income recognition, provisioning and capital adequacy, deregulation of interest rates & easing of norms for entry in the field of banking. Entry of new banks resulted in a paradigm shift in the ways of banking in India. The growing competition, growing expectations led to increased awareness amongst banks on the role and importance of technology in banking. The arrival of foreign and private banks with their superior state-of-the-art technology-based services pushed Indian Banks also to follow suit by going in for the latest technologies so as to meet the threat of competition and retain their customer base. Indian banking industry, today is in the midst of an IT revolution. A combination of regulatory and competitive reasons has led to increasing importance of total banking automation in the Indian Banking Industry.


Information Technology has basically been used under two different avenues in Banking. One is Communication and Connectivity and other is Business Process Reengineering. Information technology enables sophisticated product development, better market infrastructure, implementation of reliable techniques for control of risks and helps the financial intermediaries to reach geographically distant and diversified markets.

In view of this, technology has changed the contours of three major functions performed by banks, i.e., access to liquidity, transformation of assets and monitoring of risks. Further, Information technology and the communication networking systems have a crucial bearing on the efficiency of money, capital and foreign exchange markets.

The Software Packages for Banking Applications in India had their beginnings in the middle of 80s, when the Banks started computerising the branches in a limited manner. The early 90s saw the plummeting hardware prices and advent of cheap and inexpensive but high-powered PCs and servers and banks went in for what was called Total Branch Automation (TBA) Packages. The middle and late 90s witnessed the tornado of financial reforms, deregulation, globalisation etc coupled with rapid revolution in communication technologies and evolution of novel concept of 'convergence' of computer and communication technologies, like Internet, mobile / cell phones etc.


Implementation of Centralised Funds Management System

The centralised funds management system (CFMS) provides for a centralised viewing of balance positions of the account holders across different accounts maintained at various locations of RBI. While the first phase of the system covering the centralised funds enquiry system (CFES) has been made available to the users, the second phase comprising the centralised funds transfer system (CFTS) would be made available by the middle of 2003. So far, 54 banks have implemented the system at their treasuries/funds management branches.

Certification and Digital Signatures

The mid-term Review of October 2002 indicated the need for information security on the network and the use of public key infrastructure (PKI) by banks. The Controller of Certifying Authorities, Government of India, have approved the Institute for Development and Research in Banking Technology (IDRBT) as a Certification Authority (CA) for digital signatures. Consequently, the process of setting up of registration authorities (RA) under the CA has commenced at various banks. In addition to the negotiated dealing system (NDS), the electronic clearing service (ECS) and electronic funds transfer (EFT) are also being enhanced in terms of security by means of implementation of PKI and digital signatures using the facilities offered by the CA.


Committee on Payment Systems

In order to examine the entire gamut of the process of reforms in payment and settlement systems which would be culminating with the real time gross settlement (RTGS) system, a Committee on Payment Systems (Chairman: Dr. R.H. Patil) was set up in 2002. The Committee, after examining the various aspects relating to payment and settlement systems, submitted its report in September 2002 along with a draft Payment Systems Bill. The draft Bill provides, inter alia, a legal basis for netting, apart from empowering RBI to have regulatory and oversight powers over payment and settlement systems of the country. The report of the Committee was put on the RBI website for wider dissemination. The draft Bill has been forwarded to the Government.

Multi-application Smart Cards

Recognising the need for technology based payment products and the growing importance of smart card based payment flows, a pilot project for multi-application smart cards in conjunction with a few banks and vendors, under the aegis of the Ministry of Communications and Information Technology, Government of India, has been initiated. The project is aimed at the formulation of standards for multiapplication smart cards on the basis of inter-operable systems and technological components of the entire system.

National Settlement System (NSS)

The clearing and settlement activities are dispersed through 1,047 clearing houses managed by RBI, the State Bank of India and its associates, public sector banks and other institutions. In order to facilitate banks to have better control over their funds, it is proposed to introduce national settlement system

Special Electronic Funds Transfer

(NSS) in a phased manner.

As indicated in the mid-term Review of October 2002, national EFT (NEFT) is being introduced using the backbone of the structured financial messaging system (SFMS) of the IDRBT. NEFT would provide for movement of electronic transfer of funds in a safe, secure and quick manner across branches of any bank to any other bank through a central gateway of each bank, with the inter-bank settlement being effected in the books of account of banks maintained at RBI. Since this scheme 38 requires connectivity across a large number of branches at many cities, a special EFT (SEFT) was introduced in April 2003 covering about 3000 branches in 500 cities. This has facilitated same day transfer of funds across accounts of constituents at all these branches.

Real Time Gross Settlement System (RTGS)

As indicated in the mid-term Review of October 2002, development of the various software modules for the RTGS system is in progress. The initial set of modules is expected to be delivered by June 2003 for members to conduct tests and familiarization exercises. The live run of RTGS is scheduled towards the end of 2003.


New Trends in Banking

In new millennium many bank are involve in private banking. Setting up the bank in the domestic market involved a sequential approach to the various market segments through the dedicated offer of differentiated value proposals and of innovative financial services. Along these years, bank in new Millennium has been improving its services, aiming to provide different solutions to achieve all its Clients requirements and expectations. Many commercial Banks are involve in the following aspects

1. Universal Banking

2. Internet Banking 3. Electronic Banking


Core Banking

1) Universal Banking

In the late nineties, the focus is on Development Financial Institutions (DFIs), which have been allowed to set up banking subsidiaries and to enter the insurance business along with bank. DFIs were allowed to under take working capital financing and to raise short-term fund within limits. It was the Narasimham Committee II report (1998) which suggested that the DFIs should convert them in to bank or non bank financial companies, this conversion was endorsed by the Khan Working Group (1998). The Reserve Banks discussion paper (January 1999) and the feed back there on indicates the desirability of universal banking from the point of view of efficiency of resources use.

Concept of UB:
The term universal banking in general refers to the combination of commercial banking and investment banking, i.e., issuing, underwriting, investing and trading in securities. The discussion revolve over the global revolves around this of universal banking. The various economies have followed different models around this and the point of discussion has been whether commercial and investment banking relate to helping companies and government and their agencies to raise money by issuing and selling securities in the primary market.

They assist public and private corporation in raising fund in the capital market (both equity and debt), as well as in providing strategies advisory services for the mergers, acquisition and other type of financial transaction. They act as intermediaries in trading for clients. But more important investment banking relates to in vestment in equity of corporate through the route of underwriting or otherwise. The Banking Regulation Act 1949 section 6 however has listed various activities which banking companies can under take and investment banking finds place in that.

In a very broad sense, however, the term universal banking refers to those banks that offer a wide range of financial services, beyond commercial banking and investment banking, such as insurance. The general trend has been towards down stream universal banking where bank have under taken and invest banking where bank have under taken traditionally non banking activities such as investment banking, mortgage financing, securitisation and particularly insurance.

Universal bank are financial institution that may offer the entire range of financial services and thus are considered as financial super markets. They may sell insurance; underwrite securities, and carryout security transactions on behalf of other. They may own equity interest in firm including nonfinancial firm. They are multi-product firm in the financial services sector and have a large product menu with complex products for almost all kinds of customers meeting their financial requirements.

The other dimension of UB is that of merging the function of DFIs with commercial banking with the simplest logic that the DFIs can have access to cheaper sources of fund and over a period of time can emerge as the financial conglomerate. In the context of Indian Banking as discussed earlier in detail besides other dimension is very specific.


Universal banking as an option; a pronounced business emphasise in term of product, customer group and regional activity which can, in fact, be observe in most cases. In the spectrum of banking, special banking is on the of banking is on the one end and the universal banking on the other. Thus the point to be noted in the initial discussion is that the evolvement of universal banking as the concept finds its roots in the stages of the development of the economic system as a whole and the banking system in particular of the country in question.


Internet banking

Online banking (or Internet banking) is a term used for performing transactions, payments etc. over the Internet through a bank, credit union or building society's secure website. This allows customers to do their banking outside of bank hours and from anywhere where Internet access is available. In most cases a web browser is utilized and any normal Internet connection is suitable. No special software or hardware is usually needed. Features of internet banking Online banking usually offers such features as:

Bank statements, with the possibility to import data in a personal finance program such as Electronic bill presentment and payment - EBPP Funds transfer between a customer's own checking and savings accounts, or to another Investment purchase or sale Loan applications and transactions, such as repayments Account aggregation to allow the customers to monitor all of their accounts in one place

Quicken or Microsoft Money

2) 3)

customer's account
4) 5) 6)

whether they are with their main bank or with other institutions.


There are a growing number of so-called virtual banks that operate exclusively online. These online banks have low costs compared to traditional banks and so they often offer higher interest rates.

3) Electronic banking
Electronic banking, also known as electronic funds transfer (EFT), is simply the use of electronic means to transfer funds directly from one account to another, rather than by check or cash. You can use electronic funds transfer to:

Have your paycheck deposited directly into your bank or credit union checking account. Withdraw money from your checking account from an ATM machine with a personal Instruct your bank or credit union to automatically pay certain monthly bills from your

identification number (PIN), at your convenience, day or night.

account, such as your auto loan or your mortgage payment.

Have the bank or credit union transfer funds each month from your checking account to Have your government social security benefits check or your tax refund deposited directly Buy groceries, gasoline and other purchases at the point-of-sale, using a check card rather Use a smart card with a prepaid amount of money embedded in it for use instead of cash at

your mutual fund account.

into your checking account.

than cash, credit or a personal check.

a pay phone, expressway road toll, or on college campuses at the library's photocopy machine or bookstores.

Use your computer and personal finance software to coordinate your total personal

financial management process, integrating data and activities related to your income, spending, saving, investing, recordkeeping, bill-paying and taxes, along with basic financial analysis and decision making. Automated Teller Machines (ATMs) also called 24-hour tellers are electronic terminals which give consumers the opportunity to bank at almost any time. To withdraw cash, make deposits or transfer funds between accounts, a consumer needs an ATM card and

a personal identification number. Some ATMs charge a usage fee for this service, with a higher fee for consumers who do not have an account at their institution. If a fee is charged, it must be revealed on the terminal screen or on a sign next to the screen. Direct Deposit and Withdrawal Services allow consumers to authorize specific deposits, such as paychecks or social security checks, to their accounts on a regular basis. It is also possible to authorize the bank, for a fee, to withdraw funds from your account to pay your recurring bills, such as mortgage payment, installment loan payments, insurance premiums and utility bills. Pay by Phone Systems let consumers phone their financial institutions with instructions to pay certain bills or to transfer funds between accounts. Point-of-Sale Transfer Terminals allow consumers to pay for retail purchase with a check card, a new name for debit card. This card looks like a credit card but with a significant difference -- the money for the purchase is transferred immediately from your account to the store's account. You no longer have the benefit of the credit card "float", that is the time between the purchase transactions and when you pay the credit card bill. With immediate transfer of funds at the point-of-sale, it is easy to overdraw your checking account and incur additional charges unless you keep careful watch on spending. Personal Computer Banking Services offer consumers the convenience of conducting many banking transactions electronically using a personal computer. Consumers can view their account balances, request transfers between accounts and pay bills electronically from home.

Core Banking
Centralized Core Banking Software refers to software which uses a single physical database across all the branches of the bank. All the parameters for any product can

be setup in this single database from a single location (typically HO) and applied to all the accounts across all branches. It is the technology more than the functionality which is referred to by the phrase "Centralized Core Banking Software". The end user software must be browser based as it allows the bank to install the main software and its patches on a single centralized application server which gets downloaded to the bank officers terminal on his browser automatically. Ideally this should be written in Java Applets as they allow for encrypted data + compressed data movement between the client machine and the server machine.

What Is A True Centralized Core Banking System?

In a true centralized core banking system, its architecture should consist of: 1. Single database server for the entire bank 2. Single application server for the entire bank 3. No application or patch installation manually or through a program at any node except the central application server 4. All branches connected to the centralized application server through leased lines 5. No branch database servers 6. No application servers of any type at any branch

In general, centralized core banking allows a bank to be a global bank (a product offering change in a single place makes the change applicable for all branches), and have

global customers and branches. Specifically, the bank can perform the following functions with centralized core banking software: Retail Functions: Savings Account, Current Account (CC/OD/CL), Term Deposits, Loan Accounts and Remittances Corporate Functions: Letters of Credit, Letters of Guarantee (Bank Guarantees), Bill Purchase, Inward and Outward Bill Collection (Both financial and non financial documents)

Companies Offering Centralized Core Banking Software

There are a handful of companies which offer a true centralized core banking software. Some of these are mentioned below: Infosys, India Under the trade name of Finacle Mind mill Software Limited, India Under the trade name of Bank Mill SN Mastermind Software Pvt.Ltd Under the trade name of Bank Win.

CHAPTER 10 Banks and Financial Stability in India

A strong and efficient financial system is critical to the attainment of the objectives of creating a market-driven, productive and competitive economy. Promoting healthy financial institutions, especially banks, is, therefore, a crucial prerequisite for

financial stability. It has been observed that largest number of crises still arise, in emerging market economies or industrial countries, due to over-extension in aggregate balance sheets in good times and receding widely afterwards. Financial stability requires appropriate action at both the micro and macro level. The micro dimension consists of three pillars -institutions, markets and infrastructure. Preventive attention by the Regulators must then focus on each of the three pillars supporting both the domestic and international financial systems, namely,

the good health of financial institutions through appropriate regulation and supervision, the proper functioning of the markets, and Establishment of a sound infrastructure including legal and judicial system, payment and

settlement systems, and establishing transparent accounting and adequate disclosure standards. The Central Bank is expected to safeguard the three pillars by developing and implementing norms of behavior as well as sanctions against non-compliance (regulations), by monitoring the norms (supervision) and by providing supportive role through emergency liquidity support, deposit protection schemes, etc. At the macro level, however, the safeguarding lever continues to be the monetary and credit policy. The banking system in India, being the dominant segment of financial sector accounting for a major portion of the fund flows, is the main vehicle for monetary policy signals, credit channel and facilitator of payments systems. Hence, the health of banks remains the most crucial concern for the markets and the regulators. In this background, I will dwell upon some of the measures which have been taken to safeguard the health of the Indian banking system and the challenges which still lie ahead for both banks and their supervisors.

Banking Sector Reforms


In the post liberlisation era, the Reserve Bank has initiated several measures to ensure safety and soundness of the banking system and at the same time encouraging banks to play an effective role in accelerating the growth process. It has been recognised that the Indian banking system should be in tune with well laid down international standards of capital adequacy and prudential norms. Banks have also been encouraged to adopt appropriate internal control systems and corporate governance procedures to foresee and manage all types of risks. Banks in India have contributed significantly to the expansion of branch network; increase in savings rate and in extending credit in rural and small sectors. However, certain weaknesses such as decline in productivity and efficiency and erosion in profitability had developed in the systems which were to be addressed to enable the financial system to play an effective role in a competitive environment. Keeping in view this objective, the Committee on Financial System (Narasimham Committee I) was set up. The Committee made a number of recommendations aimed at improving productivity, efficiency and profitability of the banking system on the one hand and providing it greater operational flexibility and functional autonomy in decision making on the other. The Report was conceived as a holistic exercise and its recommendations were accordingly interrelated. Progressive reduction of reserve requirements to correct the impact of directed investments on the profitability of banks, deregulation of complex and administered interest rate structure to move to market determined rates and introduction of prudential norms for asset classification, income recognition and provisioning in order to remove subjectivity were some of the major steps taken in the direction of banking sector reforms. Accounting practices had been prescribed in consonance with internationally accepted standards with the objective of enhancing transparency and credibility and ensuring accuracy of financial statements. In the mean time, major changes had taken place in macroeconomic environment and institutional structures. These called for a critical evaluation of policy initiatives already undertaken. The Government of India had, therefore, set up the Committee on Banking Sector Reforms in 1997, to review the record of implementation of financial sector reforms

recommended by the earlier Committee and chart the reforms necessary in future to make India's banking system stronger and better equipped to meet the global competition. A major part of the reform measures recommended by the Committee were primarily aimed at strengthening the banking sector which can be broadly grouped as under:

Strengthening of capital adequacy including explicit capital for market risk Tightening of the prudential and disclosure standards in line with international best Consolidation of banking system Restructuring of weak public sector banks Dilution of government equity in public sector banks to 33 per cent and providing Technology improvements to modernize Indian banking Adoption of scientific tools for management of risks Legal reforms to expedite recovery of banks' dues


functional autonomy to government banks

Capital Adequacy Measures

Strong capital base is very essential for absorbing unexpected losses. As a part of the follow-up of the recommendations of the Committee on Banking Sector Reforms, CRAR was raised to 9 per cent from the year ended March 31, 2000. Government of India had recapitalised a number of nationalised banks to the tune of Rs 20,446 crore to bolster their CRAR. Also, eleven public sector banks have raised capital from the market. As a result, all public sector banks except one had maintained the required level of CRAR as on March 31, 2000. The risk weight age pattern has also been realigned to fall in line with the Basel accord. The first Capital Accord of 1988 evolved by the Basel Committee provided a framework for a fair and reasonable degree of consistency in the application of capital standards. However, the methods used to determine the capital charge for credit risk in the Accord were not sufficiently sophisticated and not perceived to be risk sensitive. Keeping in view the financial innovation and growing complexity of financial transactions, a need was

felt for a more broad based and flexible framework for capital adequacy. Towards this end, the Basel Committee released a consultative paper on "New Capital Adequacy Framework" in June 1999 for comments by market players. The new framework envisages a three pillar approach viz, minimum capital requirement, which seeks to develop and expand on the standardised rules set forth in the 1988 Accord, supervisory review of a bank's capital adequacy and internal assessment process and effective use of market discipline as a lever to strengthen disclosure and encourage safe and sound banking practices. Although it is too early to gauge the full impact of the new proposals, it is very likely that there would be an increase in capital requirements for our banks over the next few years on this account.

Prudential Norms
With a view to move towards the international standards, the prudential norms have been further tightened. Timeframe for doubtful assets would be reduced to 18 months from 24 months by March 31, 2001. General provision of minimum of 0.25 per cent has been introduced on standard assets from the year ended March 31, 2000. Exposure ceiling in respect of individual borrower has been lowered from 25 per cent to 20 per cent of the capital funds. However, this is not the end of the tunnel. As Governor Bimal Jalan observed recently, "It is no longer possible for developing countries to delay the introduction of strong prudential and supervisory norms, and introduce structural reforms in order to make the financial system more competitive, more transparent and more reliable." We need to further tighten the prudential norms by increasing provisioning requirements on standard and sub-standard advances, revise the time-frame for migration to doubtful losses to 12 months and further reduce the exposure limits as we go along.

Recovery of Bad Loans


The Reserve Bank had issued a number of instructions to the banks to tackle the problem of recovery of bad debts. While pursuing the compromise settlements arrived at Lok Adalats more effectively, the banks were also advised to constitute Settlement Advisory Committees (SACs) for compromise settlements of chronic cases of NPAs under small sector. With a view to have a more realistic approach to reduce the stock of NPAs in all categories, revised guidelines were issued in July 2000 which provide a simplified, nondiscretionary and non-discriminatory mechanism for recovery of the NPAs. We need hardly to emphasise that banks should take utmost advantage of these guidelines so that maximum realisation of dues is achieved within the stipulated time; i.e., March 2001. Government of India has recently made necessary amendments to DRT Act with a view to empower the DRTs for expeditious recovery of dues. Steps have been initiated to constitute 7 additional DRTs; four in Mumbai and one each in Calcutta, Chennai and New Delhi, taking the total number of DRTs to 21. Further, the proposed introduction of Bankruptcy and Foreclosure laws, setting up of Credit Information Bureau, etc. would strengthen the institutional framework for dealing with impaired assets.

Supervisory Machinery
The pace of innovation of new products, intense competition, rapid technological developments in the banking system and integration of financial markets has underscored the need for a strong and efficient supervisory system. The focus and methodology of the Annual Financial Inspections of the banks conducted by the RBI have undergone change in order to give emphasis to the analysis of the systems prevailing in the bank for taking care of various risks in the banking business. The inspection is conducted in a more objective manner under the CAMELS model and a comprehensive rating system has been put in place. The banks have been advised about the procedure followed in the rating exercise in the interest of transparency and to help them in their effort to improve the rating in the subsequent period.

The system, which is in place for last three years, is being reviewed in order to make it more objective and transparent. As announced by the Governor in the Monetary and Credit policy for the year 2000-2001, the RBI is now in the process of moving towards Risk Based Supervision which would incorporate international best practices for supervision suitably customized for the Indian environment. In the changed scenario of diversified banking business and emerging product innovations with complex risk profiles, the Risk Based Supervision approach will more efficiently allocate supervisory resources by monitoring the risk profile of the supervised institution to supplement the traditional transaction based approach. However, for the Risk Based approach to work, the banks must also put in place the desired level of risk management systems as have been envisaged in our guidelines on the subject. As a further step towards more effective banking supervision, a system of Prompt Corrective Action is being contemplated which will help to identify problem banks at an early stage for taking mandated and discretionary preventive/curative action and limiting the losses and contagion effect. Some important financial indicators such as CRAR, net NPA and Return on Assets are to serve as signalling parameters for the purpose.


Indian Banking Today & Tomorrow

The future of Indian Banking represents a unique mixture of unlimited opportunities amidst insurmountable challenges. On the one hand we see the scenario represented by the rapid process of globalization presently taking shape bringing the community of nations in the world together, transcending geographical boundaries, in the sphere of trade and commerce, and even employment opportunities of individuals. All these indicate newly emerging opportunities for Indian Banking. But on the darker side we see the accumulated morass, brought out by three decades of controlled and regimented management of the banks in the

past. It has siphoned profitability of the Government owned banks, accumulated bloated NPA and threatens Capital Adequacy of the Banks and their continued stability. Nationalised banks are heavily over-staffed. The recruitment, training, placement and promotion policies of the banks leave much to be desired. In the nutshell the problem is how to shed the legacies of the past and adapt to the demands of the new age. On the brighter side are the opportunities on account of 1. The advent of economic reforms, the deregulation and opening of the Indian economy to the global market, brings opportunities over a vast and unlimited market to business and industry in our country, which directly brings added opportunities to the banks. 2. The advent of Reforms in the Financial & Banking Sectors (the first phase in the year 1992 to 1995) and the second phase in 1998 heralds a new welcome development to reshape and reorganise banking institutions to look forward to the future with competence and confidence. The complete freeing of Nationalised Banks (the major segment) from administered policies and Government regulation in matters of day to day functioning heralds a new era of selfgovernance and a scope for exercise of self initiative for these banks. There will be no more directed lending, pre-ordered interest rates, or investment guidelines as per dictates of the Government or RBI. Banks are to be managed by themselves, as independent corporate organizations, and not as extensions of government departments. 3. Acceptance of prudential norms with regards to Capital Adequacy, Income Recognition and Provisioning are welcome measures of self regulation intended to fine-tune growth and development of the banks. It introduces a new transparency, and the balance sheets of banks now convey both their strength and weakness. Capital Adequacy and provisioning norms are intended to provide stability to the Banks and protect them in times of crisis. These equally induce a measure of corporate accountability and responsibility for good management on the part of the banks 4. Large scale switching to hi-tech banking by Indian Scheduled Commercial Banks (SCBs) through the application of Information Technology and computerisation of banking operations, will revolutionalise customer service. The age-old method of 'pen and ink' systems are over. Banks now will have more employees available for business development and


customer service freed from the needs of book-keeping and for casting or tallying balances, as it was earlier.


The Domain "Banking System keeps the day by day tally record as a complete banking. It can keep the information of Account type, account opening form, Deposit, Withdrawal, and Searching the transaction, Transaction report, Individual account opening form, Group Account. The exciting part of this project is; it displays Transaction reports, Statistical Summary of Account type and Interest Information.

AIM In the existing system the transactions are done only manually but in proposed system we have to computerize all the banking transaction using the software Banking System. They


ADMINISTRATIVE MODULE This module is the main module which performs all the main operations in the system. The Major operations in the system are: Account Opening Form Deposit Withdrawal Account type Searching Transaction Transaction report SYSTEM STUDY AND ANALISYS SYSTEM ANALYSIS System analysis is a process of gathering and interpreting facts, diagnosing problems and the information to recommend improvements on the system. It is a problem solving activity that requires intensive communication between the system users and system developers. System analysis or study is an important phase of any system development process. The system is studied to the minutest detail and analyzed. The system analyst plays the role of the interrogator and dwells deep into the working of the present system. The system is viewed as a whole and the input to the system are identified. The outputs from the organizations are traced to the various processes. System analysis is concerned with becoming aware of the problem, identifying the relevant and decisional variables, analyzing and synthesizing the various factors and determining an optimal or at least a satisfactory solution or program of action.

A detailed study of the process must be made by various techniques like interviews, questionnaires etc. The data collected by these sources must be scrutinized to arrive to a conclusion. The conclusion is an understanding of how the system functions. This system is called the existing system. Now the existing system is subjected to close study and problem areas are identified. The designer now functions as a problem solver and tries to sort out the difficulties that the enterprise faces. The solutions are given as proposals. The proposal is then weighed with the existing system analytically and the best one is selected. The proposal is presented to the user for an endorsement by the user. The proposal is reviewed on user request and suitable changes are made. This is loop that ends as soon as the user is satisfied with proposal.

Preliminary study is the process of gathering and interpreting facts, using the information for further studies on the system. Preliminary study is problem solving activity that requires intensive communication between the system users and system developers. It does various feasibility studies. In these studies a rough figure of the system activities can be obtained, from which the decision about the strategies to be followed for effective system study and analysis can be taken.


In the existing system the transactions are done only manually but in proposed system we have to computerize all the banking transaction using the software banking system.

PROBLEMS WITH EXISTING SYSTEM Lack of security of data. More man power. Time consuming. Consumes large volume of pare work. Needs manual calculations. No direct role for the higher officials. Damage of machines due to lack of attention. To avoid all these limitations and make the working more accurately the system needs to be computerized. PROPOSED SYSTEM The aim of proposed system is to develop a system of improved facilities. The proposed system can overcome all the limitations of the existing system. The system provides proper security and reduces the manual work.

ADVANTAGES OF THE PROPOSED SYSTEM The system is very simple in design and to implement. The system requires very low system resources and the system will work in almost all configurations. It has got following features Security of data. Ensure data accuracy's. Proper control of the higher officials. Reduce the damages of the machines. Minimize manual data entry. Minimum time needed for the various processing. Greater efficiency. Better service.

User friendliness and interactive. Minimum time required.

FEASIBILITY STUDY Feasibility study is made to see if the project on completion will serve the purpose of the organization for the amount of work, effort and the time that spend on it. Feasibility study lets the developer foresee the future of the project and the usefulness. A feasibility study of a system proposal is according to its workability, which is the impact on the organization, ability to meet their user needs and effective use of resources. Thus when a new application is proposed it normally goes through a feasibility study before it is approved for development. The document provide the feasibility of the project that is being designed and lists various areas that were considered very carefully during the feasibility study of this project such as Technical, Economic and Operational feasibilities.

. TECHNICAL FEASIBILITY The system must be evaluated from the technical point of view first. The assessment of this feasibility must be based on an outline design of the system requirement in the terms of input, output, programs and procedures. Having identified an outline system, the investigation must go on to suggest the type of equipment, required method developing the system, of running the system once it has been designed.

Technical issues raised during the investigation are: Does the existing technology sufficient for the suggested one Can the system expand if developed The project should be developed such that the necessary functions and performance are achieved within the constraints. The project is developed within latest technology. Through the technology may become obsolete after some period of time, due to the fact that never version of same software supports older versions, the system may still be used. So there are minimal constraints involved with this project. The system has been developed using Java the project is technically feasible for development.

ECONOMIC FEASIBILITY The developing system must be justified by cost and benefit. Criteria to ensure that effort is concentrated on project, which will give best, return at the earliest. One of the factors, which affect the development of a new system, is the cost it would require. The following are some of the important financial questions asked during preliminary investigation: The costs conduct a full system investigation. The cost of the hardware and software. The benefits in the form of reduced costs or fewer costly errors. Since the system is developed as part of project work, there is no manual cost to spend for the proposed system. Also all the resources are already available, it give an indication of the system is economically possible for development.


. BEHAVIORAL FEASIBILITY this includes the following questions: > Is there sufficient support for the users > Will the proposed system cause harm The project would be beneficial because it satisfies the objectives when developed and installed. All behavioral aspects are considered carefully and conclude that the project is behaviorally feasible.

INPUT DESIGN The design of input focuses on controlling the amount of input required, controlling the errors, avoiding delay, avoiding extra steps and keeping the process simple. The input is designed in such a way so that it provides security and ease of use with retaining the privacy. Input Design considered the following things: o What data should be given as input o How the data should be arranged or coded o The dialog to guide the operating personnel in providing input. o Methods for preparing input validations and steps to follow when error occur.


Input Design is the process of converting a user-oriented description of the input into a computerbased system. This design is important to avoid errors in the data input process and show the correct direction to the management for getting correct information from the computerized system. It is achieved by creating user-friendly screens for the data entry to handle large volume of data. The goal of designing input is to make data entry easier and to be free from errors. The data entry screen is designed in such a way that all the data manipulates can be performed. It also provides record viewing facilities. When the data is entered it will check for its validity. Data can be entered with the help of screens. Appropriate messages are provided as when needed so that the user will not be in a maize of instant. Thus the objective of input design is to create an input layout that is easy to follow

OUTPUT DESIGN A quality output is one, which meets the requirements of the end user and presents the information clearly. In output design it is determined how the information is to be displaced for immediate need and also the hard copy output. It is the most important and direct source information to the user. Efficient and intelligent output design improves the system's relationship to help user decision-making. Designing computer output should proceed in an organized, well thought out manner; the right output must be developed while ensuring that each output element is designed so that people will find the system can use easily and effectively. When analysis design computer output, they should: Identify the specific output that is needed to meet the requirements. Select methods for presenting information. Create document, report, or other formats that contain information produced by the system.


DATABASE DESIGN A database is an organized mechanism that has the capability of storing information through which a user can retrieve stored information in an effective and efficient manner. The data is the purpose of any database and must be protected. The database design is a two level process. In the first step, user requirements are gathered together and a database is designed which will meet these requirements as clearly as possible. This step is called Information Level Design and it is taken independent of any individual DBMS. In the second step, this Information level design is transferred into a design for the specific DBMS that will be used to implement the system in question. This step is called Physical Level Design, concerned with the characteristics of the specific DBMS that will be used. A database design runs parallel with the system design. The organization of the data in the database is aimed to achieve the following two major objectives. Data Integrity Data independence Normalization is the process of decomposing the attributes in an application, which results in a set of tables with very simple structure. The purpose of normalization is to make tables as simple as possible. Normalization is carried out in this system for the following reasons. To structure the data so that there is no repetition of data , this helps in saving. To permit simple retrieval of data in response to query and report request. To simplify the maintenance of the data through updates, insertions, deletions. To reduce the need to restructure or reorganize data which new application requirements arise.


RELATIONAL DATABASE MANAGEMENT SYSTEM (RDBMS): A relational model represents the database as a collection of relations. Each relation resembles a table of values or file of records. In formal relational model terminology, a row is called a tuple, a column header is called an attribute and the table is called a relation. A relational database consists of a collection of tables, each of which is assigned a unique name. A row in a tale represents a set of related values. RELATIONS, DOMAINS & ATTRIBUTES: A table is a relation. The rows in a table are called tuples. A tuple is an ordered set of n elements. Columns are referred to as attributes. Relationships have been set between every table in the database. This ensures both Referential and Entity Relationship Integrity. A domain D is a set of atomic values. A common method of specifying a domain is to specify a data type from which the data values forming the domain are drawn. It is also useful to specify a name for the domain to help in interpreting its values. Every value in a relation is atomic, that is not decomposable.


Opportunities for Foreign Banks

A number of foreign banks have a presence in India in the form of branches. In February 2005, the RBI announced a road map for foreign-owned banks in India which consists of two phases:

During the first phase (2005-2009), foreign banks are required to have a capital of INR 3bn to set up a wholly owned subsidiary in India. Foreign banks operating in India in the form of a branch are also permitted to convert the branch into a wholly owned subsidiary. As per the WTO commitment, India is required to grant a minimum of 12 branch licenses to foreign banks per year, and indeed the RBI has actually been granting more than 12 licenses per year. It is, therefore, possible to establish and expand a branch network in India. However, there is a lead time to obtaining a banking license which in practice restricts the ability of foreign banks to expand rapidly within India.

The other option for foreign banks is to acquire or invest in existing Indian banks, however investment in Indian banks is capped at 74% and approval is required for purchase of shares in excess of 5%. Foreign banks are also required to follow single form presence (i.e. either as a Branch or as a subsidiary) in India. During this phase, permission for the acquisition of shareholdings in Indian private sector banks by eligible foreign banks will be limited to private banks identified by RBI as in need of restructuring.

In the second phase (April 2009 onwards), the RBI may, depending on the experience during the first phase, consider certain policy changes. This would include full national treatment to the wholly owned subsidiary of foreign banks, dilution of the equity holding in the subsidiary by foreign banks by way of an Initial Public Offer or an offer for sale and merger and acquisition of any private bank in India. Non Banking Finance Companies (NBFCs) are also governed by the RBI, but the regulations applicable to NBFCs are not as stringent as those applicable to banks. Unlike banks, non-deposit taking NBFCs do not require an RBI license to establish a branch. Foreign banks operating banking branches in India have also established NBFCs and then leveraged on the latters branch network. However, RBI has recently indicated that the banks should not use an NBFC as a delivery vehicle for seeking regulatory arbitrage opportunities or to circumvent banking regulations.


The following are the list of foreign banks going to set up business in India:

Royal Bank of Scotland Switzerland's UBS US-based GE Capital Credit Suisse Group Industrial and Commercial Bank of China


Opportunities and Challenges for Indian Banks

It is said that the banking sector mirrors the larger economy its linkages to all sectors make it a proxy for what is happening in the economy as a whole. Indeed, the Indian banking sector today has the same

sense of excitement and opportunity that is evident in the Indian economy. The fundamental structural changes in recent years have taught us many lessons. A combination of developments arising from technological advancements and a liberalized marketplace disinter mediation, blurring of traditional roles and boundaries, emphasis on shareholder value creation has led to a transformation of the banking sector. The ongoing developments in Indian industry and government and the integration of India with the global markets also offer myriad opportunities to the banking sector. Companies and governments are increasingly seeking high-quality banking services to improve their own operating efficiency. Companies seek to offer better customer service and maximize shareholder returns and governments seek to improve the quality of public services. The internationalization of India offers banks the opportunity to service cross-border needs of Indian companies and India-linked needs of multinationals. The growing Indian Diasporas, with its strong home country linkages, seeks a unique combination of Indian ethnicity and global standards that offers a valuable niche opportunity for Indian banks. The biggest opportunity for the Indian banking system today is the Indian consumer. Demographic shifts in terms of income levels and cultural shifts in terms of lifestyle aspirations are changing the profile of the Indian consumer. This is and will be a key driver of economic growth going forward. The Indian consumer now seeks to fulfil his lifestyle aspirations at a younger age with an optimal combination of equity and debt to finance consumption and asset creation. This is leading to a growing demand for competitive, sophisticated retail banking services. The consumer represents a market for a wide range of products and services he needs a mortgage to finance his house; an auto loan for his car; a credit card for ongoing purchases; a bank account; a long-term investment plan to finance his childs higher education; a pension plan for his retirement; a life insurance policy the possibilities are endless. And, this consumer does not live just in Indias top ten cities. He is present across cities, towns, and villages as improving communications increases awareness even in small towns and rural areas. Consumer goods companies are already tapping this potential it is for the banks to make the most of the opportunity to deliver solutions to this market. The prerequisite for capitalizing on these opportunities is technology. Technology is key to servicing all customer segments offering convenience to the retail customer and operating efficiencies to corporate and government clients. The increasing sophistication, flexibility, and complexity of product and servicing offerings makes the effective use of technology critical for managing the risks associated with the business. Developing or acquiring the right technology, deploying it optimally, and then leveraging it to the maximum extent is essential to achieve and maintain high service and efficiency standards while remaining cost-effective and delivering sustainable returns to shareholders. Early adopters of technology acquire significant competitive advantage. Managing technology is, therefore, a key challenge for the Indian banking sector. Wide disparities exist between various banks as far as technology capabilities are concerned; the sector as a whole needs to make significant progress on this front.

Building knowledge-driven, learning organizations is important in the current scenario of rapidly evolving operating environments. Knowledge and assimilation of new ideas and trends are essential to keep the organization ahead on the curve. This is true for banking as it is for all other sectors. Banks must continuously seek to be aware of cutting edge practices in banking internationally and institutionalize this learning across the organization. This will prepare them for the future as Indian markets become more sophisticated and integrated into the global financial markets. Another critical area for the Indian banking sector is people. The ability to attract and retain talent is a key success factor for a people-oriented business like banking. Banks have to build organizations that are process driven yet innovative, stable yet flexible, and responsive to change. The Indian banking sector continues to face some structural challenges. We have a relatively large number of banks, some of which are sub-optimal in size and scale of operations. On the regulatory front, alignment with global developments in banking supervision is a focus area for both regulators and banks. The new international capital norms require a high level of sophistication in risk management, information systems, and technology which would pose a challenge for many participants in the Indian banking sector. The deep and often painful process of restructuring in the Indian economy and Indian industry has resulted in asset quality issues for the banking sector; while significant progress is being made in this area, a great deal of work towards resolution of these legacy issues still needs to be done. The Indian banking sector is thus at an exciting point in its evolution. The opportunities are immense to enter new businesses and new markets, to develop new ways of working, to improve efficiency, and to deliver higher levels of customer service. The process of change and restructuring that must be undergone to capitalize on these opportunities poses a challenge for many banks. Going forward, this sector will witness increased competition between domestic players and possibly also from foreign banks that may seek to expand their presence in the Indian market, given the opportunities that the Indian market offers. The winners in this sector will be the players who can understand the customer, fulfil customer needs, and achieve high levels of customer retention, leveraging technology, knowledge, and human resources to provide quality products and services and manage risks and returns, thereby delivering value to all stakeholders.


Banks are the main participant of the country without which a country cannot run its economy. It is a back bone of a countrys status and position in the world. India is developing country under which bank are playing an important role through accepting new challenges in bank marketing.

The health of the economy is closely related to the soundness of its banking system. Although banks create no new wealth but their borrowing, lending and related activities facilitate the process of production, distribution, exchange and consumption of wealth. In this way they become very effective partners in the process of economic development. A bank as a matter of fact is just like a heart in the economic structure and the Capital provided by it is like blood in it. As long as blood is in circulation the organs will remain sound and healthy. If the blood is not supplied to any organ then that part would become useless, so if the finance is not provided to Agricultural sector or industrial sector, it will be destroyed.

Primary data:
For understanding the banks in better manner and mainly difference between private and public sector bank, I have visited ICICI BANK MIRA ROAD BRANCH (a private bank) AND CENTRAL BANK OF INDIA MIRA ROAD BRANCH (a public sector bank) on 21-09-11 and following questions to the branch manger .



1) In which year Central Bank of India had established?

In 1911 2) Who was the founder of the bank? Shri. Sorapji Pochkhanewale 3) In your commercial banking according to you what is important? Customer satisfaction 4) How many employees are there in your bank?
There are 6500 employees and 3500 branches in India


What facility your banks provide? Many types of advances All types of accounts Central mortgaging schemes Cent vidhyarthi schemes Cent super term deposit schemes They are not providing any kind of Door to Door services


What are the business strategies of CBI? It is now involve in core banking CBI had earned 750 crore as its annual income. 1,10,000 crore Rs is the business turnover of CBI in one year

7) 8)

Which thing make CBI differ from other bank? Central Bank of India is trying to provide cheaper system comparative to other. What is main objective of central bank?


The main objective is to serve nation and to earn profit. What are the new things that Central Bank of India is trying to bring in the banking system? CBI is trying to bring cheaper banking system so that they can compete more with private

bank and other institution. 10) Is Central Bank of India is going to be privatized? Yes, CBI had got listed under the stock exchange of India 11) How they attract their customers? Customer is attracted to CBI because their service charges are cheaper.



In which year ICICI BANK had established?

ICICI Bank was established in 1994.


Who was the founder of the bank?

Industrial Credit and Investment Corporation of India, an Indian financial institution.


In your commercial banking according to you what is important? Customer satisfaction


Career in your bank for freshers?


Probationary Officer Recruitment Bank Officer Recruitment Junior Officer - Sales


What facility your banks provide? Many types of advances All types of accounts Personal banking NRI banking Wealth management Corporate banking Advisory services etc


What are the business strategies of ICICI BANK? Strong corporate relationships Brand Technology Operational excellence

7) 8)

Which thing makes your bank differ from other bank? Operational excellence Prudent credit policies Rigorous collection mechanism What is main objective of ICICI BANK? The main objective is development of economy (various sector) and to earn profit.


Facilitating more business to corporate client. What are the new things that ICICI BANK is trying to bring in the banking system? Large capital base Vast talent pool Low operating costs Technology focus Strong corporate relationships 10) Is your bank is globalised?

Yes, ICICI bank reaches to end no of clients everywhere. 11) How they attract their customers?

Customer is attracted because of quick service.


Modern Banking, Monetary Policy and Finance by Prfo S.L.N. Simha Page no 10-19, Deep and Deep Publication. 1993 edition

Development and growth of Indian banking

Web Side:

personalwebsideofrpkannal www.rbi.org.in www.banknet.com www.worldbank.com http://www.seminarprojects.com