Banking Awareness Study Material for Bank Exams

7/26/2019 Banking Awareness Study Material for Bank Exams

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Banking Awareness Study Material for

Bank Exams (IBPS, RBI, SBI)

INE!1. Banking History

Pre-Independence Banking history of India

Post-Independence Banking history of India

Bank Nationalization in India

Bank Liberalization in India

2. Resere Bank of India

I!portant Points of RBI

"entral Board of RBI#oernors and $ep%ty #oernors of RBI

List of &e!ale $ep%ty #oernors of RBI

Rates of RBI

Bank Rate

"ash Resere Ratio '"RR(

)LR

Repo Rate*Reerse Repo Rate

+. Banking and &inancial )yste! in India

"o!!ercial Banks

&inancial Instit%tions

NB&"s

"apital ,arket

. )tr%ct%re of "o!!ercial Banking in India

P%blic )ector Banks

Priate )ector Banks

. )ched%le Banks in India

P%blic )ector )ched%led Banks in India

Priate )ector )ched%led Banks in India

&oreign )ched%led Banks in India

/. )tate Bank of India and 0ssociates

. "o-peratie Banks in IndiaList of "o-peratie Banks in India

3. N0B0R$ 4 )hort Notes and I!portant Points

5. Non-Perfor!ing 0ssets 'NP0( 4 Brief

"oncept

16. #ross $o!estic Prod%ct '#$P( 4 Basic

"oncept

11. R%Pay 4 0ll Infor!ation abo%t R%Pay

12. Nair "o!!ittee Report on Priority )ector

Lending

1+. "anara banks

1. P%n7ab National banks

1. 0llahabad Bank

1/. Bank of Baroda

1. Bio-,etrics 08,s

13. 8alking 08,s

15. &oreign $irect Inest!ent '&$I( in India

26. &oreign Instit%tional Inest!ent '&II(

21. B%dget in India

History of B%dget in India

8ypes of B%dget

22. $ebt Recoery 8rib%nal

2+. "redit Rating 0gencies in India

I"R0 Li!ited 4 I!portant Points

"RI)IL 4 I!portant Points

2. Ind%strial &inance "orporation of India

'I&"I(

2. )I$BI

2/. I$BI Li!ited

2. 9:I, Bank

23. National Ho%sing Bank

25. )9BI

+6. )tock ,arket in India

B)9

N)9

+1. Bank of International )ettle!ents 'BI)(

+2. International ,onetary &%nd 'I,&(
http://www.bankingawareness.com/banking-gk/pre-independence-banking-history-in-india/http://www.bankingawareness.com/banking-gk/banking-history-in-india-post-independence-banking-history/http://www.bankingawareness.com/banking-gk/nationalised-banks-in-india/http://www.bankingawareness.com/banking-gk/liberalisation-in-banks-bank-liberalisation-in-india/http://www.bankingawareness.com/banking-gk/reserve-bank-of-india/http://www.bankingawareness.com/banking-gk/central-board-of-reserve-bank-of-india/http://www.bankingawareness.com/banking-gk/governor-rbi-deputy-governor-rbi/http://www.bankingawareness.com/banking-gk/female-deputy-governors-of-reserve-bank-of-india/http://www.bankingawareness.com/banking-gk/rbi-monetary-policy-rbi-functions-rbi-rates/http://www.bankingawareness.com/banking-gk/bank-rate/http://www.bankingawareness.com/banking-gk/cash-reserve-ratio/http://www.bankingawareness.com/banking-gk/statutory-liquidity-ratio/http://www.bankingawareness.com/banking-gk/rbi-monetary-policy-rbi-functions-rbi-rates/http://www.bankingawareness.com/banking-gk/banking-and-financial-system-in-india/http://www.bankingawareness.com/banking-gk/structure-of-commercial-banking-in-india/http://www.bankingawareness.com/banking-gk/non-banking-financial-companies-nbfcs/http://www.bankingawareness.com/banking-gk/structure-of-commercial-banking-in-india/http://www.bankingawareness.com/banking-gk/public-sector-banks-in-india/http://www.bankingawareness.com/banking-gk/private-banks-in-india/http://www.bankingawareness.com/banking-gk/scheduled-banks-scheduled-banks-in-india/http://www.bankingawareness.com/?p=380http://www.bankingawareness.com/?p=382http://www.bankingawareness.com/?p=385http://www.bankingawareness.com/banking-gk/state-bank-of-india-sbi-important-points-to-remember/http://www.bankingawareness.com/banking-gk/co-operative-banks-in-india/http://www.bankingawareness.com/banking-gk/list-of-co-operative-banks-in-india/http://www.bankingawareness.com/banking-gk/nabard/http://www.bankingawareness.com/banking-gk/non-performing-assets-npa/http://www.bankingawareness.com/banking-gk/non-performing-assets-npa/http://www.bankingawareness.com/banking-gk/gross-domestic-product-gdp-basic-concept/http://www.bankingawareness.com/banking-gk/gross-domestic-product-gdp-basic-concept/http://www.bankingawareness.com/banking-gk/rupay-card-all-information-about-rupay/http://www.bankingawareness.com/banking-gk/nair-committee-report-on-priority-sector-lending/http://www.bankingawareness.com/banking-gk/nair-committee-report-on-priority-sector-lending/http://www.bankingawareness.com/banking-gk/canara-bank-important-points/http://www.bankingawareness.com/banking-gk/punjab-national-bank-important-points/http://www.bankingawareness.com/banking-gk/allahabad-bank/http://www.bankingawareness.com/banking-gk/bank-of-baroda-important-points/http://www.bankingawareness.com/banking-gk/biometric-atms-in-india-questions/http://www.bankingawareness.com/banking-gk/talking-atm-in-india/http://www.bankingawareness.com/banking-gk/foreign-direct-investment-fdi-limit-in-india/http://www.bankingawareness.com/banking-gk/foreign-institutional-investor/http://www.bankingawareness.com/banking-gk/budget-in-india/http://www.bankingawareness.com/banking-gk/types-of-budget-in-india/http://www.bankingawareness.com/banking-gk/debt-recovery-tribunal/http://www.bankingawareness.com/banking-gk/credit-rating-agencies-in-india/http://www.bankingawareness.com/banking-gk/icra-limited-important-points/http://www.bankingawareness.com/banking-gk/crisil-important-points/http://www.bankingawareness.com/banking-gk/industrial-finance-corporation-of-indiaifci-important-points/http://www.bankingawareness.com/banking-gk/industrial-finance-corporation-of-indiaifci-important-points/http://www.bankingawareness.com/banking-gk/small-industries-development-bank-of-india-sidbi-important-points/http://www.bankingawareness.com/banking-gk/idbi-industrial-development-bank-of-india/http://www.bankingawareness.com/banking-gk/export-import-bank-of-india-exim-bank-important-points/http://www.bankingawareness.com/banking-gk/national-housing-bank-important-points/http://www.bankingawareness.com/banking-gk/sebi-securities-and-exchange-board-of-india/http://www.bankingawareness.com/banking-gk/stock-market-india/http://www.bankingawareness.com/banking-gk/bombay-stock-exchange-bse/http://www.bankingawareness.com/banking-gk/national-stock-exchange-of-india-nse/http://www.bankingawareness.com/banking-gk/bank-for-international-settlements-bis/http://www.bankingawareness.com/banking-gk/international-monetary-fund-imf-functions-important-points/http://www.bankingawareness.com/banking-gk/banking-history-in-india-post-independence-banking-history/http://www.bankingawareness.com/banking-gk/nationalised-banks-in-india/http://www.bankingawareness.com/banking-gk/liberalisation-in-banks-bank-liberalisation-in-india/http://www.bankingawareness.com/banking-gk/reserve-bank-of-india/http://www.bankingawareness.com/banking-gk/central-board-of-reserve-bank-of-india/http://www.bankingawareness.com/banking-gk/governor-rbi-deputy-governor-rbi/http://www.bankingawareness.com/banking-gk/female-deputy-governors-of-reserve-bank-of-india/http://www.bankingawareness.com/banking-gk/rbi-monetary-policy-rbi-functions-rbi-rates/http://www.bankingawareness.com/banking-gk/bank-rate/http://www.bankingawareness.com/banking-gk/cash-reserve-ratio/http://www.bankingawareness.com/banking-gk/statutory-liquidity-ratio/http://www.bankingawareness.com/banking-gk/rbi-monetary-policy-rbi-functions-rbi-rates/http://www.bankingawareness.com/banking-gk/banking-and-financial-system-in-india/http://www.bankingawareness.com/banking-gk/structure-of-commercial-banking-in-india/http://www.bankingawareness.com/banking-gk/non-banking-financial-companies-nbfcs/http://www.bankingawareness.com/banking-gk/structure-of-commercial-banking-in-india/http://www.bankingawareness.com/banking-gk/public-sector-banks-in-india/http://www.bankingawareness.com/banking-gk/private-banks-in-india/http://www.bankingawareness.com/banking-gk/scheduled-banks-scheduled-banks-in-india/http://www.bankingawareness.com/?p=380http://www.bankingawareness.com/?p=382http://www.bankingawareness.com/?p=385http://www.bankingawareness.com/banking-gk/state-bank-of-india-sbi-important-points-to-remember/http://www.bankingawareness.com/banking-gk/co-operative-banks-in-india/http://www.bankingawareness.com/banking-gk/list-of-co-operative-banks-in-india/http://www.bankingawareness.com/banking-gk/nabard/http://www.bankingawareness.com/banking-gk/non-performing-assets-npa/http://www.bankingawareness.com/banking-gk/non-performing-assets-npa/http://www.bankingawareness.com/banking-gk/gross-domestic-product-gdp-basic-concept/http://www.bankingawareness.com/banking-gk/gross-domestic-product-gdp-basic-concept/http://www.bankingawareness.com/banking-gk/rupay-card-all-information-about-rupay/http://www.bankingawareness.com/banking-gk/nair-committee-report-on-priority-sector-lending/http://www.bankingawareness.com/banking-gk/nair-committee-report-on-priority-sector-lending/http://www.bankingawareness.com/banking-gk/canara-bank-important-points/http://www.bankingawareness.com/banking-gk/punjab-national-bank-important-points/http://www.bankingawareness.com/banking-gk/allahabad-bank/http://www.bankingawareness.com/banking-gk/bank-of-baroda-important-points/http://www.bankingawareness.com/banking-gk/biometric-atms-in-india-questions/http://www.bankingawareness.com/banking-gk/talking-atm-in-india/http://www.bankingawareness.com/banking-gk/foreign-direct-investment-fdi-limit-in-india/http://www.bankingawareness.com/banking-gk/foreign-institutional-investor/http://www.bankingawareness.com/banking-gk/budget-in-india/http://www.bankingawareness.com/banking-gk/types-of-budget-in-india/http://www.bankingawareness.com/banking-gk/debt-recovery-tribunal/http://www.bankingawareness.com/banking-gk/credit-rating-agencies-in-india/http://www.bankingawareness.com/banking-gk/icra-limited-important-points/http://www.bankingawareness.com/banking-gk/crisil-important-points/http://www.bankingawareness.com/banking-gk/industrial-finance-corporation-of-indiaifci-important-points/http://www.bankingawareness.com/banking-gk/industrial-finance-corporation-of-indiaifci-important-points/http://www.bankingawareness.com/banking-gk/small-industries-development-bank-of-india-sidbi-important-points/http://www.bankingawareness.com/banking-gk/idbi-industrial-development-bank-of-india/http://www.bankingawareness.com/banking-gk/export-import-bank-of-india-exim-bank-important-points/http://www.bankingawareness.com/banking-gk/national-housing-bank-important-points/http://www.bankingawareness.com/banking-gk/sebi-securities-and-exchange-board-of-india/http://www.bankingawareness.com/banking-gk/stock-market-india/http://www.bankingawareness.com/banking-gk/bombay-stock-exchange-bse/http://www.bankingawareness.com/banking-gk/national-stock-exchange-of-india-nse/http://www.bankingawareness.com/banking-gk/bank-for-international-settlements-bis/http://www.bankingawareness.com/banking-gk/international-monetary-fund-imf-functions-important-points/http://www.bankingawareness.com/banking-gk/pre-independence-banking-history-in-india/


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1.Banking History

Pre-Independence Banking History in IndiaBanking history of Indiais diided into 8;o !a7or categories -

Pre-Independence Banking History

Post-Independence Banking History

Pre-Independence Banking :-

8he origin of !odern Banking in India dates back to the 13th cent%ry.

Bank of Hindusthan;as established in 15 and it ;as the first bank at "alc%tta

%nder European management.

Banking "oncept in India ;as bro%ght by Europeans.

In 13/ General Bank of India;as set %p.

n s ;ars against 8ip% )%ltanand the ,arathas.

n s &irst 8r%ly );adeshi bank.


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8he );adeshi !oe!ent inspired local b%siness!en and political fig%res to fo%nd banks of

and for the Indian co!!%nity. 8he period bet;een 156/ and 1511 tho%sands of Banks ;ere

established in India. ,any of those banks established then hae s%ried to the present s%ch as Bank

of India* "orporation Bank* Indian Bank* Bank of Baroda* "anara Bank and "entral Bank of India.

0t least 5 banks in India failed bet;een 151+ and 1513 d%e to econo!ic crisis d%ring =orld

=ar I. In 2th s report.

In 15+ Resere Bank of India act ;as passed.

n the reco!!endation of Hilton-Ao%ng "o!!ission* n 1st 0pril 15+ Resere Bank of India

;as established.

RBI ;as established ;ith initial share capital ;orth Rs. crore ;ith Lakh Rs. 166 share

diidend.

Post-Independence Banking History:Post-Independence Banking History:

I!!ediately after the Independence* the partition of India in 15 adersely i!pacted the econo!ies

of P%n7ab and =est Bengal by paralyzing banking actiities for !onths.=ith end of British r%le in India

!arked the end of a regi!e of the Laissez-faire for the Indian banking sector.

8he #oern!ent of India initiated !eas%res to play an actie role in the econo!ic life of the nation*

and the Ind%strial Policy Resol%tion adopted by the goern!ent in 153 enisaged a !ied econo!y.

8o strea!line the f%nctioning and actiities of co!!ercial banks* the goern!ent of India has ca!e

%p ;ith the Banking "o!panies act* 155. 8he Resere Bank of India* India>s central banking

a%thority* ;as nationalized on


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banking instit%tion ;ith an effectie !achinery of branches spread all oer the co%ntry. 8he

reco!!endation of this co!!ittee led to establish!ent of first P%blic )ector Bank in the na!e

of )tate bank of India on


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Na!e of "entral Bank of IndiaD Resere Bank of India 'RBI(

No of "entral Bank in IndiaD ne '1(

Resere Bank of India 0ct passed in 15+.

Resere Bank of India 'RBI( established on 1 0pril 15+.

Resere Bank of India 'RBI( established on the reco!!endation of Hilton-Ao%ng "o!!ission.

Hilton-Ao%ng "o!!ission s%b!itted its report in the year 152/. Initially RBI ;as constr%cted as a Priate )hare holders> bank ;ith f%lly paid-%p capital of Rs

"rores.

RBI ;as nationalize in the year of 1st s affairs are goerned by a "entral Board of $irectors. 8he board is appointed by

the #oern!ent of India in keeping ;ith the Resere Bank of India 'RBI( 0ct* 15+.

"tructure of Central Board of )irectors:

0ppointedFno!inated for a period of &@R years

"onstit%tionD

o $fficial )irectors

&%ll-ti!e D ne #oernor and not !ore than fo%r $ep%ty #oernors.

'on-$fficial )irectors


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No!inated by #oern!entD 8en $irectors fro! ario%s fields and one

goern!ent official '#enerally fro! ,inistry of &inance(

thersD &o%r $irectors - one each fro! fo%r local boards. ne each for the fo%r

regions of the co%ntry in ,%!bai* "alc%tta* "hennai and Ne; $elhi.

*he +unction of Central Board of ,BI:

8he !ain f%nction of "entral Board of RBI is #eneral s%perintendence and direction of the Bank>s

affairs. 8he local boards adises the "entral Board on local !atters and to represent territorial and

econo!ic interests of local cooperatie and indigeno%s banksG to perfor! s%ch other f%nctions as

delegated by "entral Board fro! ti!e to ti!e.

Present !oernor of RBI and "ep#ty !oernor of RBI

8he eec%tie head of Resere Bank of India is kno;n as the #oernor* the goernor is assist by fo%r

dep%ty #oernor.

Goernor:

Na!eD $%%ri )%bbarao '$. )%bbarao(

0ppointed onD n )epte!ber 2663

=ill Retire onD )epte!ber * 261+

.ist of )eputy Goernor:

1. Na!eD $r.E."."hakrabarty

2. Na!eD @ri7it Patel 'Ne; 0ppoint!ent* Replaced )%bir #okarn.(

+. Na!eD )hri 0nand )inha

. Na!eD )hri H.R.Ehan

$emale "ep#ty !oernors of Resere Bank of India a Complete List

&e!ale $ep%ty #oernors of the Resere Bank of India 'RBI(. &irst &e!aleF =o!anF Lady $ep%ty

#oernors of the RBI. List of &e!ale $ep%ty #oernors of the Resere Bank of India 'RBI(.

/ % UdeshiD '16.6/.266+ to 12.16.266(

E < @deshi beco!es the first ;o!an RBI dep%ty goernor. E < @deshi has been appointed the dep%ty

goernor of the Resere Bank of India 'RBI(. )he is the first ;o!an dep%ty goernor of the RBI. 8he

appoint!ent is till 12 ctober 266 ;hen she co!pletes /2 years of age.

"hyamala Gopinath:'21.65.266 to 63.65.2665* 65.65.2665 to 26.6/.2611(


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)hya!ala #opinath is the for!er dep%ty goernor of the Resere Bank of India 'RBI(. #opinath

sered as dep%ty goernor of Resere Bank of India fro! )epte!ber 21* 266 to


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Bank Rate is the rate at ;hich central bank of the co%ntry* in India it is the Resere Bank of India

'RBI(* allo;s financeFli?%idity to co!!ercialFsched%led banks ;ithin the territory of India. RBI %ses

Bank Rate as a tool for short-ter! !eas%res. 0ny %p;ard reision in Bank Rate is an indication that

banks sho%ld also increase the deposit rates as ;ell as the Pri!e Lending Rate. 0ny reision in the

Bank rate indicates !ore or less interest on yo%r deposits and also an increase or decrease in yo%r

9,I.

0hat is Bank ,ate 'on Bankers Point of ;ie(< 1

8his is the rate at ;hich RBI lends !oney to other banks or financial instit%tions. If the bank rate goes

%p* long-ter! interest rates also tend to !oe %p* and If the bank rate goes do;n* long-ter! interest

rates also tend to !oe do;n. 8h%s* it can said that in case bank rate is hiked* in all likelihood banks

;ill hikes their o;n lending rates to ens%re and they contin%e to !ake a profit.

Present Bank ,ate of ,BI:5.66C 0s of 0pril* 2612

Cas' Resere Ratio

9ery co!!ercialF)ched%led bank in India has to keep certain !ini!%! a!o%nt of cash reseres ;ith

Resere Bank of India 'RBI(. Resere Bank of India %ses "RR as a tool to increase or decrease the

resere re?%ire!ent depending on ;hether RBI ;ants to increase or decrease in the !oney

s%pply. ,BI can ary Cash ,esere ,atio C,,< rate bet(een =8 and 5>8. 0n increase in "RR

;ill !ake it !andatory for the banks to hold a large proportion of their deposits in the for! of

deposits ;ith the RBI. 8his ;ill red%ce the a!o%nt of Bank deposits and they ;ill lend less as they

hae less a!o%nt as their resere. 8his ;ill in t%rn decrease the !oney s%pply. If RBI ;ants to

increase ,oney s%pply it !ay red%ce the rate of "RR and it ;ill allo; the banks to keep large a!o%nt

of their deposit ;ith the!seles and they ;ill lend !ore !oney. It ;ill increase the !oney s%pply. &or

ea!pleD =hen so!eone deposits Rs.166 in a bank* it increase the deposit of banks by Rs166* and if

the cash resere ratio is 5C* the banks ;ill hae to hold additional Rs 5 ;ith RBI and Bank ;ill be able

to %se only Rs 51 for inest!ents and lending F credit p%rpose. 8herefore* higher the ratio 'i.e. "RR(*

the lo;er is the a!o%nt that banks ;ill be able to %se for lending and inest!ent. RBI %ses "RR to

control li?%idity in the banking syste!.

8he Resere Bank of India '0!end!ent( Bill* 266/ has been enacted and has co!e into force ;ith its

gazette notification. "onse?%ent %pon a!end!ent to s%b-)ection 2'1(* the Resere Bank* haing

regard to the needs of sec%ring the !onetary stability in the co%ntry* can prescribe "ash Resere

Ratio '"RR( for sched%led banks ;itho%t any floor rate or ceiling rate. Before the enact!ent of this

a!end!ent* in ter!s of )ection 2'1( of the RBI 0ct* the Resere Bank co%ld prescribe "RR for

sched%led banks bet;een + per cent and 26 per cent of total of their de!and and ti!e liabilities.

Present Cash ,esere ,atio C,,< is ?73>8 @!s of $ctober =42 3453A

(tat#tory Li)#idity Ratio


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0hat is ".,1

0part fro! the "ash Resere Ratio* sched%led banks in India are re?%ired to !aintain* at the close of

b%siness eery day* a !ini!%! proportion of their Net $e!and and 8i!e Liabilities*li?%id assets in the

for! of gold* cash and approed sec%rities. 8he ratio of li?%id assets to de!and and ti!e liabilities is

kno;n as )tat%tory Li?%idity Ratio ')LR(. Resere Bank of India is e!po;ered to increase )tat%tory

Li?%idity Ratio ')LR( %p to 6C. 0n increase in )LR also red%ces their 'Bank>s( capacity to grant

loans and adances* th%s it is an anti-inflationary i!pact.

0hat is "., 'on Bankers Point of ;ie(


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Non-Banking $inancial Companies *NB$Cs+

Non-Banking &inancial "o!panies 'NB&"s( are fast e!erging as an i!portant seg!ent of Indian

&inancial )yste!. It is an heterogeneo%s gro%p of instit%tions other than co!!ercial and co-operatie

banks perfor!ing financial inter!ediation in a ariety of ;ays*like accepting deposits* !aking loans

and adances*leasing* hire p%rchases etc.

NB&"s raise f%nds fro! the p%blic directly or indirectly and lend the! to the %lti!ate spenders.8hey

adances loans to the ario%s ;holesale and retail traders* s!all-scale ind%stries and self e!ployed

persons.8h%s they hae broadened and diersified the range of prod%cts and serices offered by a

&inancial sector.

)ifference bet(een 'B+Cs and Banks:

0n NB&"s can>t accept de!and deposits.

0n NB&"s is not a part of the pay!ent and settle!ent syste! and as s%ch an NB&"s cannotiss%e che?%es dra;n on itself.

$eposit ins%rance facility of deposit ins%rance and credit* g%arantee corporation is not

aailable for NB&" depositors %nlike in case of Banks.

4.Strctre of !ommercial Banking in India

In this article ;e hae disc%ssed abo%t the )tr%ct%re of "o!!ercial Banking in India. Bank is an

instit%tions that accepts deposits fr! the p%blic*!obilizes their saings and keeps the sa!e %nder itsc%stody* these deposits can be ;ithdra;n by "he?%es or 08,s or any other aailable !ethods. Banks

lends !oney to those ;ho need it and also perfor!s dierse agency f%nctions and also create credit.

"o!!ercial banks are the instit%tions that accept deposits fro! the people and adances loans.

"o!!ercial Banks aGsp create credit. In India* s%ch banks alone called co!!ercial banks ;hich are

established in accordance ;ith the proision of the Banking ,egulation !ct2 5?7

"o!!ercial banks !ay be a )ched%led banks or Non-)ched%led banks. )ched%led banks is classified

into t;o big category based on the o;nership of the bank.

I( P%blic )ector Banks

II( Priate )ector banks

Public "ector Banksis again diided into three category and they are i( Nationalized Banks* ii(

)tate Bank of India and It>s 0ssociate #ro%p and iii( Regional R%ral Banks.


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Priate "ector Banksis also classified into three category i( ld Priate Banks ii( Ne; Priate Banks

iii( &oreign Banks

P#blic (ector Banks in India

P%blic )ector Banks is the !a7or player in the Indian Banking )ector ;ith 52C of co%ntries banking

seg!ent is %nder state control. In India* the p%blic sector banks are diided into three categories 4

)tate Bank #ro%p* Natioanlised Banks* Regional R%ral Banks.

"tate Bank Group -8his gro%p consist of )tate Bank of India and &ie )ate Bank of India

0ssociate banks. 8he RBI o;ns the !a7ority of the shares of the )BI and so!e of it>s associates. )tate

Bank of India is the first p%blic sector bank in india. I!perial bank of india ac?%ired by the

goern!ent to for! the )tate Bank of India in 15. In 155 the )tate Bank of India )%bsidiary act

;as passed and by the irt%e of this act seen princly states bank ;ere !ade the s%bsidiary of )tate

Bank of India. No; )tate Bank of India has only fie s%bsidiary as t;o of it s%bsidiary bank !erged

;ith the parent concern. 'ationalised Bank -In 15/5 the goern!ent of India effected the nationalization of of 1

sched%led co!!ercial banks in order to epand the branch net;ork follo;ed by si !ore bank in

1536. 8otal 26 co!!ercial banks ;ere nationalized in t;o bank nationalization process b%t in 155+

Ne; Bank of India ;as !erged ;ith P%n7ab National Bank.

,egional ,ural Banks -In 15* the state bank gro%p and nationalized banks ;ere re?%ired

to sponsor and set %p Regional R%ral Banks in partnership ;ith indiid%al states to proide lo; cost

financing and credit facilities to the r%ral !asses. n the reco!!endation of the Banking "o!!ission

'152(* on ctober 2 15 fie Regional R%ral Bank ;ere established. 8heir !ain f%nction is to

proide financial help to s!all and !arginal far!ers and r%ral ;orkers to help the r%ral econo!y to

gro;.

List of Priate Banks in India

Indian Priate Banks

1. Bank of Ra7asthan Ltd.

2. Bharat erseas Bank Ltd.

+. "atholic )yrian Bank Ltd.

. &ederal Bank Ltd

. $hanalaksh!i Bank Ltd.

/.


12/38

2. &oreign Priate Banks in India1. 8he Royal Bank of )cotland

2. 0b% $habi "o!!ercial Bank

+. 0!erican 9press Bank Ltd.

. Bank of 0!erica* N0

. Bank of Bahrain K E%;ait B)"

/. ,ashre? Bank P)"

. Bank of Noa )cotia

3. Bank of 8okyo ,its%bishi @&< Ltd.

5. "iti Bank N.0.

16. $e%tsche Bank

11. H)B" Ltd.

12. )ociete #enerale

1+. )onali Bank

1. BNP Paribas Bank

1. Barclays Bank p.l.c.

1/. $B) Bank Ltd.

1. Bank International Indonesia

13. 0rab Bangladesh Bank Ltd.

15. )tandard "hartered Bank

26. )tate Bank of ,a%riti%s Ltd.

21. Bank of "eylon

22. "ho H%ng Bank

2+. "hina 8r%st "o!!ercial Bank

2. Er%ng 8hai Bank plc.

2. 0nt;erp $ia!ond Bank N.J.

2/. < P ,organ "hase Bank

2. ,iz%ho "orporate Bank Ltd.

23. !an International Bank )0#

25. "redit 0gricole "orporate and

Inest!ent Bank

".Sc#edled Banks $ Sc#edled Banks in India

+6. "cheduled Banksin India are those banks ;hich hae been incl%ded in the )econd )ched%le

of Resere Bank of India 'RBI( 0ct* 15+. Resere Bank of India in t%rn incl%des only those

banks in this sched%le ;hich satisfy the criteria !entioned on section 2 '/( 'a( of the Resere

Bank of India 0ct 15+.

+1. Criteria for a "cheduled Banks:

)ched%led Banks are those banks ;hose !ini!%! paid %p capital and resere and a!o%nt to

2 lakh.

8hese bank hae to s%b!it details of their actiities to the Resere Bank of India eery ;eek.

8hese banks are listed on the second sched%le of the Resere Bank of India 0ct 15+.

+2. *here are three types of "cheduled Bank in India and they are: -

P%blic )ector )ched%led Banks in India

Priate )ector )ched%led Banks in India

&oreign )ched%led Banks in India

,,. P#blic (ector (c'ed#led Banks in India

+. 8he P%blic )ector)ched%led Banks in Indiaconsist of 15 Nationalised Banks* )tate Bank of

India and It>s fie '( associates and I$BI. 8here are total 2/ P%blic )ector )ched%led Banks in

India.
http://www.bankingawareness.com/?p=380http://www.bankingawareness.com/?p=382http://www.bankingawareness.com/?p=385http://www.bankingawareness.com/banking-gk/scheduled-banks-scheduled-banks-in-india/http://www.bankingawareness.com/banking-gk/scheduled-banks-scheduled-banks-in-india/http://www.bankingawareness.com/?p=380http://www.bankingawareness.com/?p=382http://www.bankingawareness.com/?p=385http://www.bankingawareness.com/banking-gk/scheduled-banks-scheduled-banks-in-india/


13/38

1. 0llahabad Bank

2. 0ndhra Bank

+. Bank of Baroda

. Bank of India

. Bank of ,aharashtra

/. "anara Bank

. "entral Bank of India

3. "orporation Bank

5. $ena Bank

16. Indian Bank

11. Indian erseas Bank

12. riental Bank of "o!!erce

1+. P%n7ab and )indh Bank

1. P%n7ab National Bank

1. )yndicate Bank

1/. @" Bank

1. @nion Bank of India

13. @nited Bank of India

15. Ji7aya Bank

26. I$BI Bank

21. )tate Bank of India

22. )tate Bank of Bikaner K


14/38

"iti Bank N.".

$e%tsche Bank 0.#.

Hongkong and )hanghai Banking

"orporation

Royal Bank of )cotland

8he "hase ,anhattan Bank Ltd.

$resdner Bank 0#.

)tandard "hartered Bank

0. State Bank of India (SBI)

Important Points:-

0ll abo%t )tate Bank of IndiaD )tate Bank of India is the largest Indian banking and financial serices co!pany by yearly

t%rnoer and total assets.

8he head?%arters of )BI is in ,%!bai* India.

)BI is a )tate o;ned Bank.

Presidency Banks during British ,a&:

Bank of Bengal ;as established in 136/ in Eolkata. It ;as the first presidency bank of India.

8;o other presidency bank ;as established* Bank of Bo!bay in 136 and Bank of ,adras in

13+.

8hese three banks ;ere priate shareholders> bank.

9ast India "o!pany also contrib%ted to the share capital of each of the!.

8he b%lk of the share capital had co!e fro! priate shareholders !ostly 9%ropeans.

8hese banks ;ere gien !onopoly of #ot. Banking- 0fter 132+

8hese three banks receied the ecl%sie right to iss%e paper c%rrency in 13/1 ;ith the Paper

"%rrency 0ct

Presidency Banks ;ere a!alga!ated into the I!perial Bank of India 'IBI( ;hich ;as

established in 2


15/38

In 2616* )tate Bank of Indore ;as !erged ;ith 4 )BI

8he total n%!ber of 0ssociate Banks of )BI c%rrently ;orking in India- &ie '(

)tate Bank of India has 1+ foreign offices in +2 co%ntries across the globe.

)BI has abo%t 2*666 08,s

)BI gro%p'incl%ding associate banks( has abo%t *666 08,s.

)BI has 2/*66 branches* incl%ding branches that belong to its associate banks. 2*666th 08, of )BI ;as ina%g%rated by the then "hair!an of )tate Bank )hri .P.Bhatt on

+1 ,arch 2611* the day of his retire!ent.

)logans of )BID

1. =ith yo% all the ;ay

2. P%re banking nothing else

+. 8he Banker to eery Indian

. 8he Nation banks on %s

".%. !o&'erative Banks in India

/. "o-peratie Banks in India is created to financing needs of agric%lt%re* retail

trade*s!all ind%stry and self-e!ployed b%siness in %rban* se!i-%rban and r%ral areas.

0 distinctie feat%re of the co-operatie credit str%ct%re in India is its heterogeneity.

8he co-operatie banking str%ct%re is differ fro! @rban* R%ral and states. @rban areas

are sered by R%ral "o-peratie Banks* R%ral 0reas are sered by R%ral "o-peratie

Banks and )tate "o-peratie bank seres the ;hole state. 8he "o-peratie banking

sector is theoldest seg!ent of the Indian Banking )yste!. In recent years Resere

Bank of India and National 0gric%lt%re and R%ral $eelop!ent Bank 'N0B0R$( hae

taken seeral i!portant steps to i!proe the "o-peratie Banking syste! in India.

. 8here are total si types of co-operatie banks are ;orking in India and they are -

Pri!ary 0gric%lt%re "redit )ocieties

"entral "o-peratie Bank

)tate "o-peratie Bank

Pri!ary "o-peratie 0gric%lt%re and R%ral $eelop!ent Banks

)tate "o-peratie 0gric%lt%re and R%ral $eelop!ent Banks

@rban "o-peratie Banks

3. 0s per !arch 2665 report* In India* there are aro%nd 121 @rban "o-peratie banks

and 1115 R%ral "o-peratie Banks.

1. List of Co-operatie Banks in India

16. )ched%led @rban "o-peratie Banks

11. In India* at present* there are total + sched%led @rban "o-peratie banks in India.


16/38

1. 0h!edabad ,ercantile "o-p Bank

Ltd.

2. Eal%p%r "o!!ercial "oop.Bank Ltd.

+. ,adhap%ra ,ercantile "o-p Bank

Ltd.

. ,ehsana @rban "o-p Bank Ltd.

. N%tan Nagarik )ahakari Bank Ltd.*

/. Ra7kot Nagrik )ahakari Bank Ltd.

. )ardar Bhilad;ala Pardi Peoples "oop

Bank Ltd.

3. )%rat Peoples "oop Bank Ltd.

5. 0!anath "o-operatie Bank Ltd.

16. 0ndhra Pradesh ,ahesh "o-p @rban

Bank Ltd.

11. "har!inar "o-operatie @rban Bank

Ltd.

12. Jasai "oop @rban Bank LI!ited.

1+. Indian ,ercantile "o-operatie Bank

Ltd.*

1. 0bhy%daya "o-operatie Bank Ltd.*

1. Bassein "atholic "o-operatie Bank

Ltd.

1/. Bharat "o-operatie Bank ',%!bai(

Ltd.

1. Bharati )ahakari Bank Li!ited.

13. Bo!bay ,ercantile "o-operatie Bank

Li!ited15. "itizen "redit "o-operatie Bank Ltd.*

26. "os!os "o-operatie @rban Bank Ltd.

21. $o!bili Nagari )ahakari Bank Ltd.

22. #oa @rban "o-operatie Bank Li!ited.

2+. #opinath Patil Parsik s "o-operatie Bank

Ltd.

+/. Ne; India "o-operatie Bank Ltd.*

+. NE#)B "o-operatie Bank Ltd.*

+3. Praara )ahakari Bank Ltd.

+5. P%n7ab K ,aharashtra "o-operatie

Bank Ltd.

6. R%pee "o-operatie Bank Ltd.

1. )angli @rban "o-operatie Bank Ltd.*

2. )aras;at "o-operatie Bank Ltd.*

+. )ha!rao Jithal "o-operatie Bank Ltd.

. )olap%r


17/38

. 8he Bihar )tate "o-operatie Bank Ltd.

/. 8he "handigarh )tate "o-operatie

Bank Ltd.

. 8he $elhi )tate "o-operatie Bank Ltd.

3. 8he #oa )tate "o-operatie Bank Ltd.

5. 8he #%7arat )tate "o-operatie Bank

Ltd.

16. 8he Haryana )tate "o-opertie 0pe

Bank Ltd.

11. 8he Hi!achal Pradesh )tate "o-

operatie Bank Ltd.

12. 8he


18/38

+/. 8he "o!!ittee to Reie; 0rrange!ents for Instit%tional "redit for 0gric%lt%re and R%ral

$eelop!ent '"R0&I"0R$( ;as set %p by the Resere Bank of India 'RBI(. N0B0R$ ;as

established on 12 for a specified period of ti!e. Non-

perfor!ing assets are one of the talking points of banks in their perfor!ance reports. 0l!ost

all banks in India is s%ffering fro! the proble! of NP0. Here ;e hae disc%ssed the concept of

Non-perfor!ing 0ssets.


19/38

. 0n 0ssets* incl%ding a leased asset* beco!e an NP0 ;hen it ceases to generate inco!e for the

bank. 0n NP0 is a loan or an adance ;hereG

8he Interest andFor Install!ent of principal re!ain oerd%e for a period of !ore than ninety

days in respect of a ter! loan*

0n acco%nt re!ains Mo%t of order> as indicated in the article belo;* in respect of an

oerdraftFcash credit '$F""(.

0 bill re!ains oerd%e for a period of !ore than ninety days* in the case of bills p%rchased

and disco%nted.

0n install!ent of the principal or the interest thereon re!ains oerd%e for one crop season for

long d%ration crops.

/. Banks sho%ld classify an acco%nt as an NP0 only if the interest charged d%ring any ?%arter is

not sericed f%lly ;ithin ninety days fro! the end of the ?%arter.

. D$ut of $rder# status:

3. 0n acco%nt is treated as Mo%t of order>* if the o%tstanding balance re!ains contin%o%sly in

ecess of the sanctioned li!itFdra;ing po;er. In cases* ;here the o%tstanding balance in the

operating acco%nt is less than the sanctioned li!itF dra;ing po;er* b%t there are not credit

contin%o%sly for ninety days as on the date of balance sheet or credits are not eno%gh to coer

the interest debited d%ring the sa!e period* these acco%nts sho%ld be treated as Mo%t of

order>.

5. Categories of 'P!s:

6. Banks are re?%ired to classify non-perfor!ing assets into the follo;ing three categories based

on the period for ;hich the asset has re!ained non-perfor!ing and reliability of the d%esD

)%bstandard 0ssets 4 0n assets ;hich re!ained a NP0 for a period less than or e?%al to

t;ele !onths '=ith 9ffect fro! ,arch +1* 266(.

$o%btf%l 0ssets -0n assets ;o%ld be classified as do%btf%l assets if it has re!ained as

)%bstandard 0ssets fore !ore than t;ele !onths '=ith 9ffect fro! ,arch +1* 266(.

Loss 0ssets 4 0 loss assets is one* ;here the bank of internal or eternal a%ditors or the RBI

inspection has identified the loss b%t the a!o%nt has not been ;ritten off ;holly. In other ;ords* s%ch

little al%e that it>s contin%ance as a bankable asset is not ;arranted altho%gh there !ay be so!e

salage or recoery al%e.

"1. 1/. 0ross ,omestic rodct (0,)

2. 0hat is G)P1


20/38

+. #ross $o!estic Prod%ct '#$P( is the !arket al%e of all final goods and serices prod%ced

;ithin a co%ntry in a gien period of ti!e. #$P is the basic !eas%re of the co%ntry>s econo!ic

perfor!ance oer a gien period.

. G)P is measured by three basic approaches

1. 9pendit%re approach

2. Inco!e approach

+. Jal%e based approach

. *ypes of G)P:

Real #$P

No!inal #$P

/. Real #$P is the prod%ction of goods and serices al%ed at constant prices ;hereas no!inal

#$P is the prod%ction of goods and serices al%ed at c%rrent prices.

. But (hy (e need to measure both real and nominal G)P1

3. No; ;hen the total spending increases in a gien period it points to;ards t;o happenings*

either the goods or serices are sold at higher prices 'i.e inflation has increased( or the total

o%tp%t of goods and serices hae increased. =hile st%dying econo!y* econo!ist tries to

separate these t;o effects. Hence they !eas%re the real #$P ;hich allo;s the! to find

;hether prod%ction of goods and serices has increased or decreased oer the periods.

5. Components of G)PD

/6. #$P is a ariable ;hich depends %pon fo%r other ariables. 8hese ariables for! co!ponents

of #$P

/1. #$P "OIO#ON:

/2. "total cons%!ption

Igross inest!ent

# #oern!ent spending

N: eports less i!ports

/+. "ons%!ption is spending by ho%seholds on goods and serices. Here ;e do not incl%de

p%rchase of ne; ho%sing. Inest!ent is spending on inentories. 9?%ip!ents and p%rchase of

ne; ho%sing #oern!ent spending incl%des spending on goods and serices by state and

central goern!ent Net eports spending on the do!estic prod%cts by foreigners less

spending on foreign prod%cts by locals.


21/38

4. 11.Ray !ard

/. !ll Information about ,uPay and ,uPay Cards ,uPay !*2 ,uPay icro!*2 )ebit2

Prepaid and Credit Cardss first do!estic pay!ent card net;ork* R%Pay* to

co!pete ;ith Jisa Inc and ,astercard Inc.

2. $b&ecties of ,uPay:

+. 8he ,ain b7ectie of the R%Pay pay!ent net;ork pro7ect is to red%ce the oerall transaction

cost and deelop prod%cts appropriate for financial incl%sion.

Red%ce oerall transaction cost for the banks in India by introd%cing co!petition to

international card sche!es.

$eelop prod%cts appropriate for the co%ntry partic%larly for financial incl%sion.

Proide card pay!ent serice option to !any banks ;ho are c%rrently not eligible for card

iss%ance %nder the eligibility criteria of international card sche!es.

B%ild eniron!ent ;hereby pay!ent infor!ation of the co%ntry re!ains ;ithin the co%ntry

)hift Personal "ons%!ption 9pendit%re 'P"9( fro! cash to electronic pay!ents in a gro;ing

econo!y ;ith a pop%lation of 1.2 billion

. Important Points to ,emember:


22/38

,uPayis the Indian do!estic card pay!ent net;ork.

8he R%Pay pay!ent net;ork set %p by National Pay!ents "orporation of India 'NP"I( at the

behest of banks in India.

8he R%Pay pro7ect had been conceied by Indian Banks 0ssociation and had the approal of

Resere Bank of India.

8he !ain ob7ectie of R%Pay pro7ect is to red%ce oerall transaction cost for the banks in India

by introd%cing co!petition to international card sche!es.

NP"I has plan to proide f%ll range of credit serice like R%Pay 08,* R%Pay ,icro08,* $ebit*

Prepaid and "redit "ards ;hich ;ill be accepted across ario%s channel P)* Internet* IJR* ,obile etc.

0ll state-o;ned banks are epected to 7oin the R%Pay syste! by the end of this year.

R%Pay-based debit cards can be %sed by the cons%!ers on the Internet fro! )epte!ber*

2612.

%". 12. *air !ommittee Reort on riority Sectorending

/. 8he Resere Bank of India* the central bank of India* on &ebr%ary 21* 2612 has released the

report of the "o!!ittee '"hair!anD , J Nair* "hair!an* @nion Bank of India( constit%ted to

re-ea!ine the eisting classification and s%ggest reised g%idelines ;ith regard to priority

sector lending and related iss%es.

. 8he Resere Bank India had constit%ted the "o!!ittee %nder the chair!anship of ,. J. Nair

on 0%g%st 2* 2611 p%rs%ant to the anno%nce!ent !ade in the ,onetary Policy )tate!ent

2611-12.

3. *he a&or ,ecommendations of the 'air Committee are:

8he sector Magric%lt%re and allied actiities> !aybe a co!posite sector ;ithin priority sector* by

doing a;ay ;ith distinction bet;een direct and indirect agric%lt%re. 8he targets for agric%lt%re and

allied actiities !ay be 13 per cent of 0d7%sted Net Bank "redit '0NB"( or credit e?%ialent of off-

balance sheet epos%re '"9B9(* ;hicheer is higher.

0 s%b target for s!all and !arginal far!ers ;ithin agric%lt%re and allied actiities is

reco!!ended* e?%ialent to 5 percent of 0NB" or "9B9* ;hicheer is higher to be achieed in

stages by 261-1/.

8he ,)9 sector !ay contin%e to be %nder priority sector. =ithin ,)9 sector* a s%b target for

!icro enterprises is reco!!ended e?%ialent to percent of 0NB" or "99* ;hicheer is higher to be

achieed in stages by 261+-1. 8he priority sector targets for foreign banks !ay be increased to 6 percent of 0NB" or

"9B9* ;hicheer is higher ;ith s%b-target of 1 percent for eports and 1 percent for ,)9 sector*

;ithin ;hich percent !ay be ear!arked for !icro enterprises.

Bank loans to non-bank financial inter!ediaries for on lending to specified seg!ents !ay be

allo;ed to be reckoned for classification %nder priority sector* %p to a !ini!%! of percent of 0NB"

or "9B9* ;hicheer is higher* s%b7ect to certain d%e diligence and doc%!entation standards.


23/38

%-. 13. !anara Bank $ Imortant oints

/.

0!!e!bal )%bba Rao Pai established "anara Hind% Per!anent &%nd in ,angalore* India* on

1 s na!e to "anara Bank Li!ited.

"anara Bank Li!ited ;as incorporated in 1556

In 153* the Resere Bank of India ordered "anara Bank to ac?%ire #. Ragh%!ath!%l Bank*

in Hyderabad.

#. Ragh%!ath!%l Bank ;as established in 136 and conerted into li!ited co!pany on 152.

#. Ragh%!ath!%l Bank had fie branch at the ti!e of ac?%isition.

n 15


24/38

1. In 266+ P%n7ab National Bank took oer Ned%ngadi Bank* the oldest priate sector bank in

Eerala.

1/. P%n7ab National Bank ;as ranked 12+ in the &orbes #lobal 2666.

1. P%n7ab National Bank has !ore than 166 offices incl%ding oerseas branches.

13. PNB receies Best Bank 0;ard-2611

15. PNB receies the &IB0" 2611 M,ost Prod%ctie P%blic )ector Bank a;ard.

26. Present )logan of PNB 4 8he Na!e yo% can Bank @pon.

3. 2lla'abad Bank

0llahabad Bank started operation in 13/.

8he head-?%arters of 0llahabad Bank is in in Eolkata.

0llahabad Bank has a net;ork of 266 branches across the co%ntry.

"hair!an and ,anaging $irector of the bank is )hri


25/38

In 2616 Bank of Baroda* Indian erseas Bank and 0ndhra Bank 7ointly opened a Bank I- ndia

BI0 Bank ',alaysia( in ,alaysia.

In 2616 BoB opened a branch in Ne; ealand.

Bank of India has the highest n%!ber of branches and offices %tside.

3/. Biometric 26%s in India: 7#estions

1. &irst Bank in India ;ith Bio!etric 08, - !ns(er this

2. &irst Jillage to get Bio!etric 08, in India 4 !ns(er this

+. &irst $istrict to get Bio!etric 08, in India 4 !ns(er this

. &irst )tate to get Bio!etric 08, in India 4 !ns(er this

. &irst Bank to la%nch )olar Po;er*Joice enabled Bio!etric 08, in India 4 @nion bank of India

/. &irst $istrict to get )olar Po;er*Joice enabled Bio!etric 08, in India 4 #ha;addi illage.

. &irst $istrict to get )olar Po;er*Joice enabled Bio!etric 08, in India 4 L%dhiana district.

3. &irst )tate to get )olar Po;er*Joice enabled Bio!etric 08, in India 4 P%n7ab

5. Bio!etric 08, first la%nched in #o%ta! B%ddha nagar in @.P by 4 a( )BI b( Bank of Baroda c(PNB d( 0llahabad Bank

16. In case of Nor!al 08, ;e need to enter o%r secrete PIN to ;ithdra; cash b% for Bio!ertic

08,s ;hat is necessary to ;ithdra; cash 4 &inger Print )can

11. India>s 16th Bio!etric 08,s ;as la%nched by ;hich bank 4 "anara Bank '"anara Bank>s 1st

bio!etric 08,(.

38. 6alking 26% in India Important Points and7#estions

3/. 8he specially designed 0%to!ated 8eller ,achine '08,( ;hich can be operated independently

by a is%ally i!paired person* kno; as M8alking 08,>.

3. "ome Important *alking !* uestions

1. =hich Bank established &irst 8alking 08, in India 4 @nion Bank of India '@nion Bank(

2. =hich city gets the co%ntries first 8alking 08, 4 0h!edabad

+. =hich )tate gets the co%ntries first 8alking 08, 4 #%7rat

. 8alking 08, )pecially designed for SSSSSSS People 4 Blind

. =ho ina%g%rate co%ntries first 8alking 08, 4 "hair!an and ,anaging $irector of @BI* $

)arkar.

/. 8alking 08, has ;hat kind of )pecial Interface 4 Joice Interface

. =hich ;as the second bank to la%nch 8alking 08, in India 4)tate Bank of India.

33. $oreign "irect Inestment *$"I+ Limit in India 2ll(ector
http://www.bankingawareness.com/banking-news/state-bank-of-india-launched-its-first-ever-talking-atm-in-new-delhi/http://www.bankingawareness.com/banking-news/state-bank-of-india-launched-its-first-ever-talking-atm-in-new-delhi/http://www.bankingawareness.com/banking-news/state-bank-of-india-launched-its-first-ever-talking-atm-in-new-delhi/


26/38

35. Present &oreign $irect Inest!ent '&$I( Li!its in India. )ector-;ise &$I ceilingF li!its in

India. &$I or &oreign $irect Inest!ent !eans net inflo;s of inest!ent to ac?%ire a lasting

!anage!ent interest in an enterprise operating in an econo!y other than that of the inestor.

56. Here is the list of +)I limit of !ll "ectors:

51. Hotels and 8o%ris!* Roads and High;ay* 9d%cation* 0dertise!ent* &ar! sector* Petro

"he!ical* Phar!ace%ticals* "oal and Lignite 4 166C

52. +)I in ulti Brand retail:

5+. 0llo;ed &$I in ,%lti brand retail - 1C

5. +)I in Ciil !iation sector:

5.*llowed -DI in Civil *viation . "!/

5/. 8he "iil 0iation sector incl%des 0irports* )ched%led and Non-)ched%led do!estic passenger

airlines* Helicopter serices F )eaplane serices* #ro%nd Handling )erices* ,aintenance and

Repair organizationsG &lying training instit%tesG and 8echnical training instit%tions.

5. +)I In Insurance "ector:

53.*llowed -DI in Insuran+e 0e+tor . "!/

55. &$I in the Ins%rance sector* as prescribed in the Ins%rance 0ct* 1555* is allo;ed %nder the

a%to!atic ro%te.

166. +)I in )efense "ector:

161. *llowed -DI in Defense 0e+tor . 12/

162. &$I in defense ind%stry s%b7ect to Ind%strial license %nder the Ind%stries

'$eelop!ent and Reg%lation( 0ct 151 ;o%ld be allo;ed %p to 2/C thro%gh goern!ent

approal ro%te.

16+. +)I in Print edia:

16. *llowed -DI in 3rint 4edia . 12/

16. P%blishing of Ne;spaper and periodicals dealing ;ith ne;s and c%rrent affairs

- 2/C. P%blication of Indian editions of foreign !agazines dealing ;ith ne;s and c%rrent

affairs- 2/C .


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16/. +)I in Broadcasting "ector:

&, Radio )tations 26C

"able Net;ork 5C

$irect 4to-Ho!e 'd2h( )erices 4 5C

&$I li!it in Headend-In-8he-)ky 'HI8)( Broadcasting )erice 4 C 'total direct and indirect

foreign inest!ent incl%ding portfolio and &$I( 0%to!atic %pto 5C #oern!ent ro%te beyond 5C

and %p to C.

)etting %p hard;are facilities s%ch as %p-linking* H@B etc. 4 5C

16. +)I In Credit Information Companies:

163. *llowed -DI in Credit Information Com&anies . "!/

165. +)I In Banking "ector in India:

116. ew Bank (*fter *ugust$ 15) . "!/

111. *llowed -DI in 3rivate 0e+tor Banks6 7"/#

112. &$I in priate banking sector of India is allo;ed %p to C ;here &$I %p to 5C is

allo;ed thro%gh a%to!atic ro%te and &$I beyond 5C b%t %p to C is allo;ed thro%gh

goern!ent approal ro%te.

11+. *llowed -DI in 3ubli+ 0e+tor Banks6 "!/#

11. Li!it for &$I in p%blic sector banks In the case of nationalizedbanks as ;ell as )BI and its associate banks* the oerall stat%tory li!it

of 26 per cent as &$I and portfolio inest!ent ;ill contin%e

11.

440. $oreign Instit#tional Inestor *$II+ ImportantPoints& ('ort Notes abo#t $II

11. +oreign Institutional Inestor +II< Important Points7 "hort 'otes on +oreign

Institutional Inestor +II


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other inest!ent assetsQ. In India &oreign Instit%tional Inestor '&II( refers to o%tside

co!panies inesting in the Indian &inancial ,arkets.

126. India opened its stock !arket to &oreign Instit%tional Inestors '&II( in )epte!ber

1552. )ince 155+* India receied portfolio inest!ent fro! foreigners in the for! of &oreign

Instit%tional Inest!ent '&II( in e?%ities.

121. In order to trade in Indian e?%ity !arket* all &oreign Instit%tional Inestors '&II( !%st

register ;ith the )ec%rities and 9change Board of India ')9BI( ;hich is the reg%lator for the

sec%rities !arket in India.

122. ne ;ho propose to inest their proprietary f%nds or on behalf of broad basedQ f%nds

or of foreign corporates and indiid%als and belong to any of the %nder gien categories can be

registered for &II.

Pension &%nds ,%t%al &%nds

Inest!ent 8r%st

Ins%rance or reins%rance co!panies

9ndo;!ent &%nds

@niersity &%nds

&o%ndations or "haritable 8r%sts or "haritable )ocieties ;ho propose to inest on

their o;n behalf* and

0sset ,anage!ent "o!panies

No!inee "o!panies

Instit%tional Portfolio ,anagers

8r%stees

Po;er of 0ttorney Holders

Bank

4,. B#dget in India: History of B#dget in India

12. n Noe!ber 2/* 15 R.E. )han!%kha! "hetty had presented the first b%dget of

Independent India. B%t act%ally it ;as a reie; of the econo!y and no ne; taes ;ere

proposed as the b%dget day for 153-5 ;as 7%st 5 days a;ay.

12. &ro! then on;ards an interi! b%dget began to !ean a b%dget for a short period."hetty resigned a fe; days later d%e to differences ;ith Pri!e ,inister Nehr%. E.". Neogy

then took charge of the &inance portfolio and held that office for 7%st + days.

12/.


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12. In 155 ,orar7i $esai beca!e the &inance ,inister. He has presented the !ai!%!

n%!ber of b%dgets so far- ten. 8hey incl%ded fie ann%al and one interi! b%dgets d%ring his

first stint and three final and one interi! in the second ten%re ;hen he ;as both &inance

,inister and $ep%ty Pri!e ,inister.

123. ,orar7i $esai ;as the only &inance ,inister to hae had the opport%nity to present t;o

b%dgets on his birthday Tin 15/ and 15/3. He ;as born on &ebr%ary 25.

125. 0fter the fo%rth #eneral 9lections in 15/* ,orar7i $esai once again beca!e the

&inance ,inister. 8his ;as his second stint. 0fter he resigned* Indira #andhi* the then Pri!e

,inister* took oer the &inance portfolio. )o far* she has been the only ;o!an &inance

,inister.

1+6. Ra7i #andhi presented the b%dget for 153-33 after J P )ingh ?%it his goern!ent*

and in the process beca!e only the third Pri!e ,inister to present a b%dget after his !other

and grandfather. Aash;ant )inha beca!e the &inance ,inister and presented the interi!b%dget for 1551-52.

1+1. In the election held in ,ay 1551* the "ongress ret%rned to po;er and ,an!ohan

)ingh beca!e the &inance ,inister. 8his ;as the first occasion ;hen the interi! and final

b%dgets ;ere presented by t;o !inisters of t;o different political parties. ,an!ohan )ingh

opened the econo!y* en-co%raged foreign inest!ents* red%ced peak i!portd%ty fro! +66

pl%s percent to 6 percent and introd%ced the concept of serice ta.

1+2. 0fter the elections another non-"ongress !inistry ass%!ed office. )o* a final b%dget

for 155/-5 ;as presented by P. "hida!bara! of the then 8a!il ,aanila "ongress. It ;as the

second ti!e that an interi! and final b%dgets ;ere presented by t;o !inisters of different

political parties.

1++. &ollo;ing a constit%tional crisis the I.E. #%7ral ,inistry ;as on its ;ay o%t and a

special session of Parlia!ent ;as conened only to pass "hida!bara!>s 155-53 b%dget. It

;as passed ;itho%t a debate.

1+. @ntil 2666* the @nion B%dget ;as anno%nced at p! on the last ;orking day of the

!onth of &ebr%ary. 8his practice ;as inherited fro! the British* ;hen their Parlia!ent ;o%ld

pass the b%dget in the noon follo;ed by India in the eening of the day. Aash;ant )inha

changed the ti!ing to 11 a.!.

4,8. 6ypes of B#dget:

1+/. =hat is B%dget ho; !any types of B%dget present in India Here ;e hae eplained

the types of B%dget present.


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1+. Balanced Budget: Balanced B%dget is a b%dget ;here receipts are e?%al to c%rrent

ependit%re. 8hat !eans that taes on inco!e and ependit%re etc are s%fficient to !eet

pay!ents for goods and serices* interest on the national debt etc. 0 balanced b%dget is*

ho;eer* not necessarily an ideal one 4 econo!ist


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1. 8he $ebt Recoery 8rib%nals are located across the co%ntry. )o!e cities hae !ore

than one $ebt Recoery 8rib%nal located therein. Ne; $elhi and ,%!bai hae three $ebt

Recoery 8rib%nals. "hennai and Eolkata hae t;o $ebt Recoery 8rib%nals each. ne $ebt

Recoery 8rib%nal each has been constit%ted at 0h!dabad* 0llahabad* 0r%ngabad* Bangalore*

"handigrah* "oi!batore* "%ttack* 9rnak%la!* #%;ahati* Hydrabad*


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I"R0 Li!ited 'I"R0( is one of India>s pre!ier financial infor!ation serices co!pany.

I"R0 Li!ited is one of the"redit Rating 0gency in India.

I"R0 also proide professional financial serices in the 0sia-Pacific region thro%gh its

s%bsidiaries.

I"R0 Li!ited* ;as established in 1551* and ;as originally na!edInestment Information

and Credit ,ating !gency of India .imited'II"R0 India(. Head?%arters of I"R0 is at Ne; $elhi* India.

II"R0 India changed its na!e to I"R0 Li!ited* and ;ent p%blic on 1+ 0pril 155.

I"R0 Ltd listed on the Bo!bay )tock 9change 'B)9(and the National )tock 9change 'N)9(.

I"R0 Li!ited is a P%blic "o!pany.

I"R0 offers Ind%stry &inancial serices and "redit ratings serices.

"9 of I"R0 Li!ited is Naresh 8akkar.

48,. CRI(IL

"RI)IL or "redit Rating and Infor!ation )erices of India Ltd. is a global analytical co!pany

;hich proides serices like ratings* research* and risk K policy adisory.

"RI)IL is the largest credit rating agency in India.

"RI)IL ;as established on 153.

"RI)IL pioneered ratings in India !ore than 26 years ago

8oday* "RI)IL is the %ndisp%ted b%siness leader in Ratings.

"RI)IL>s #lobal 0nalytical "entre '#0"( s%pports the #lobal Reso%rce ,anage!ent initiatie of

)tandard K Poor>s ')KP(.

8he !ain serice prod%ct of "RI)IL are Ind%stry &inancial )erices.

48/. Ind#strial $inance Corporation of India*I$CI+

1. In 15* at the of Independence* there ;as a significant de!and for ne; capital b%t

the Indian "apital ,arket ;as relatiely %nder-deeloped. ,erchant bankers and %nder;riting

fir!s ;ere al!ost non eistence and co!!ercial banks ;ere not ?%ipped to proide long ter!

ind%strial finance in any significant !anner.

8he Ind%strial &inance "orporation of India 'I&"I( ;as established on


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)I$BI ;as incorporated initially as a ;holly o;ned s%bsidiary of Ind%strial $eelop!ent Bank

of India.

No; )I$BI is o;ned by seeral state-o;ned banks* ins%rance co!panies and financial

instit%tions.

)I$BI is an independent financial instit%tion ai!ed to aid the gro;th and deelop!ent of

!icro* s!all and !edi%!-scale enterprises in India. It is an ape body and nodal agency for for!%lating* coordination and !onitoring the policies

and progra!!e for pro!otion and deelop!ent of s!all scale ind%stries.

)I$BI is in the list of top +6 $eelop!ent Banks of the =orld in the latest ranking of 8he

Banker* London.

48. I"BI Ind#strial "eelopment Bank of India

8he Ind%strial $eelop!ent Bank of India 'I$BI( ;as established on 1


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1/6. Important Points about EI Bank:

9port-I!port Bank of India ;as established on 1532.

9port-I!port Bank of India ;as set %p %nder the 9port-I!port Bank of India 0ct 1531.

Head?%arters of 9:I, Bank is at ,%!bai* India

"hair!an and ,anaging $irector '",$( of 9:I, bank is 8.".0 Ranganathan.

404. National Ho#sing Bank

8he National Ho%sing Bank 'NHB( is a state o;ned bank.

National Ho%sing Bank is a reg%lation a%thority in India.

National Ho%sing Bank ;as established on


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1/. )tock ,arket refers to a !arket place ;here inestors cab b%y and sell stocks. 8he

price at ;hich each b%ying and selling transaction takes i deter!ined by the !arket forces.

Here !arket forces are de!and and s%pply for a partic%lar stock.

1//. In earlier ti!es* stock brokers asse!bles at a stock echange to p%rchase and sale

stock or in one ;ord to !ake transactions. B%t no; stock !arket beca!e paperless. 0l!ost

all transaction are done electronically.

1/. Presently there are total 3= stock echange in India7

1. Bo!bay )tock 9change'B)9(

2. National )tock 9change'N)9(

+. 0h!edabad )tock 9change

. Bangalore )tock 9change

. Bh%banesh;ar )tock 9change

/. "alc%tta )tock 9change

. "ochin )tock 9change

3. "oi!batore )tock 9change

5. $elhi )tock 9change

16. #%;ahati )tock 9change

11. Hyderabad )tock 9change

12.


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2. Important Points

ldest )tock 9change in India 4 Bo!bay )tock 9change

Largest )tock 9change in India 4 National )tock 9change

Reg%latory 0%thority of )tock ,arket 4 )9BI Ao%ngest stock echange in India 4 "oi!batore )tock 9change

8. Bombay (tock 9c'ange *B(9+

2/. Bo!bay )tock 9change 'B)9( is a stock echange located on $alal )treet* ,%!bai. Bo!bay

)tock 9change is the oldest )tock 9change in 0sia. 8his stock echange ;as initially started

by fie stock broker o%tside ,%!bai 8o;n hall @nder a banyan tree in 136. In 13 it

beco!e an official organization kno;n as M8he Natie )hare K )tock Brokers 0ssociation>.

2. 0fter Independence* In 15/ Bo!bay )tock 9change beca!e the first stock echange to be

recognized by the Indian #oern!ent %nder the )ec%rities "ontracts Reg%lation 0ct.

B)9 &o%nded in 13

"9 and ,$ of B)9 4 ,adh% Eannan

No. of "o!pany listed 4 *63

B)9 Indees- B)9 )9N)9:*B)9 )!all "ap*B)9 ,id-"ap*B)9 66

ldest )tock 9change in 0sia

3. National (tock 9c'ange of India *N(9+

25. National )tock 9change of India 'N)9( 4 In order to lift the Indian stock !arket trading

syste! on par ;ith the International standards and on the basis of the reco!!endations ofhigh po;ered Pher;ani "o!!ittee* the National )tock 9change ;as incorporated in 1552 by

Ind%strial $eelop!ent Bank of India* Ind%strial "redit and Inest!ent "orporation of India*

Ind%strial &inance "orporation of India* 0ll Ins%rance "orporations* )elected co!!ercial banks

and others.

+6. 8he National )tock 9change 'N)9( is the 5th largest stock echange in the ;orld by !arket

capitalization and largest in India by daily t%rnoer and n%!ber of trades* for both e?%ities

and deriatie trading. N)9 is located in ,%!bai* ,aharastra.

In Noe!ber*1552 )9BI ;as incorporated as a ta-paying co!pany.

In 0pril 155+* it ;as recognized as a stock echange %nder the )ec%rities "ontracts'Reg%lation( 0ct* 15/.

N)9 Incorporated on the reco!!endation of Pher;ani "o!!ittee.

N)9 co!!enced operations in the =holesale $ebt ,arket '=$,( seg!ent in


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No. of listings- 1*2

N)9 Indees 4 )KP "N: Nifty*"N: Nifty years. B%t can be re!oed earlier.

Present head of I+ -"hristine Lagarde &or!er finance !inister of &rance

.atest .ast ember of I+-8%al%

uotas and ;oting ,anking-India occ%py 5th Place in I,& #eneral ?%otas ;here @)0 in

1st*


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3.

Banking Awareness Study Material for Bank Exams

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