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in
In d ia
By
Vasudha Lalit (Roll # 09)
Mandar Lalit (Roll # 10)
Agenda
• His t o ry
• Bu s in e s s En viro n m e n t
• Re s e rve Ba n k o f In d ia
• Na t io n a liza t io n , Pro s & Co n s
• NCR a n d Re fo rm s
• SWOT An a lys is
• Ch a lle n g e s
• Fu t u re Pro s p e c t s
What are the top most banks of
India?
Top Most Banks in India
HISTORY
History of Indian Banking Sector
Ru le s a n d Re g u la t io n s o f RBI Le g a l Fra m e wo rk
Ba n ks
Co n s u m e r Be h a vio r
Indian Banking Structure
Reserve Bank Of India (RBI)
The Reserve Bank of India performs the function of financial supervision under the guidance of the Board for
Financial Supervision (BFS). The Board was constituted in November 1994 as a committee of the Central Board of
Directors of the Reserve Bank of India.
Ob je c t ive
Primary objective of BFS is to undertake consolidated supervision of the financial sector comprising
commercial banks, financial institutions and non-banking finance companies.
Cu rre n t Fo c u s
Supervision of financial institutions
Consolidated accounting
Legal issues in bank frauds
Divergence in assessments of non-performing assets and
Supervisory rating model for banks.
RBI - Functions
Mo n e t a ry Au t h o rit y:
―Formulates, implements and monitors the monetary policy.
―Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors.
ü
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.
ü
Manager of Foreign Exchange :
―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.
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.
Related Functions :
―Banker to the Government: performs merchant banking function for the central and the state
Legal Framework
Umbrella Acts :
―Reserve Bank of India Act, 1934: governs the Reserve Bank functions
―Banking Regulation Act, 1949: governs the financial sector
• Deposit Mobilization
– Banks contributed to the development of banking habit among
common people through sustained publicity, extensive branch
banking and relatively prompt service
Nationalization – Cons
• Profitability eroded
•
• PSBs and FIs became weak, some were making losses YoY
Narasimham Committee Report 1991
• SLR which was initially at 25% was raised to 30% and then
to 38.5%
• Poor infrastructure
rates
• Overseas expansion
• Consolidation
Thank You