Prof.

Nijumon K John, Christ University, Bangalore

3/6/2012

Meant for providing short-term credit to trade and industry. They are now providing credit to agriculture, SSIs and other neglected sections of the economy.

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Scheduled banks are those whose names are included in the 2nd schedule to the RBI Act. As per under sec 42(6) of the RBI Act, a banking institution can claim for its name to be included in the schedule, if - It satisfies RBI that its affairs are not being conducted in a manner detrimental to the interests of its depositors - Its paid up capital and reserves have an aggregate value of not less than Rs.200 Crores.

Prof. Nijumon K John, Christ University, Bangalore 3/6/2012

Refinancing of loans Rediscounting of bills Maintenance of accounts by RBI Remittance facilities between different branches through RBI (they are required to maintain statutory reserve with RBI)

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

As per the banking regulation Act 1949, every banking company wanting to commence business after enactment of this act, has to obtain a license from RBI.

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Primary functions Secondary functions

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Accepting deposits Savings deposits Fixed/term deposits Current deposits

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Lending of money Loan(secured or unsecured) Cash credit(with security) Overdraft(without security) Discounting and purchasing of bills

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Agency service Collection of drafts, bills, cheques, divident etc. on behalf of customers Execution of the standing orders of the cusomers. Eg. Rent, bills etc Conducting stock exchange transactions Acting as a correspondent or representative of customers, and other banks Functioning as an executor of a customer

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

General utility service LoC Travellers cheque Accepting valuables for safe custody Acting as a referee for the customers Advisory services Issue of credit cards Providing information through bullettins

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Profitability Liquidity Safety Social good

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Capital; represents Nationalised banks: capital owned by central govt Foreign banks: amount brought by bank by way of start up capital Other banks: amount contributed by shareholders of the bank

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Reserves and surplus Statutory reserve Capital reserve Share premium Revenue and other reserves

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Deposits: constitutes 80% of a commercial banks funds Borrowings Other liabilities Bills payable(eg.bank draft) Interest accrued Inter office adjustments Others(proposed dividend, surplus provision for bad debts, staff security etc)

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Current deposit Savings deposit Fixed deposit Borrowings Refinancing from financial institutions

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Cash in hand and with RBI Cash balance maintained by a bank with itself(non earning asset) Cash with reserve bank

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Balance with other banks Money at call and short notice Investments(Investment in securities) Advances (more than 50% of the funds are used and it contributes to more than 80% of the income) Fixed assets Contingent liabilities

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Apex banking institutions - IDBI - NABARD - EXIM BANK - IRBI - NHB

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

* Commercial banks - Public sector banks # State bank group # Nationalised banks - Private sector banks # Indian banks # Foreign banks * RRBs Co-operative banks - Primary credit societies # primary agricultural credit societies # primary urban co-operative banks - Secondary credit institutions # district co-operative banks # state co-operative banks

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Development banks - All India level development banks(IFCI,ICICI,SIDBI) - State level development banks (SFCs,SIDCs, etc.)

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

LIC GIC UTI

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Export Credit & Guarantee Corporation of India Deposit Insurance and Credit Guarantee Corporation of India

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Discount and Finance House of India Ltd Stock Holding Corporation of India Ltd Securities Trading Corporation of India Ltd

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Credit Rating Information & Services of India Ltd Investment Information and Credit Rating Agency of India Credit Analysis and Research Ltd

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

An organisation of banks constituted for the purpose of settling inter-bank liabilities due to transfer of deposits by a customer of a particular bank to that of another bank.

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012

Every bank of the locality prepares a bank-wise list of cheques received from customers and drawn on different banks An official of each bank visits clearing house with the cheques in the morning. He delivers it to the officials of respective banks. He also receives cheques drawn on his bank from the officials of other banks. Officials return to their banks to meet again in the afternoon to return any dishonoured instruments. The official of each bank computes the final balance payable or receivable The final settlement is effected by the supervisor of the clearing house by debiting or crediting.

Prof. Nijumon K John, Christ University, Bangalore

3/6/2012