MONEY AND BANKING PART 24
TYPES OF COMMERCIAL BANKS Commercial banks are of two types: 1. SCHEDULED BANKS 2. NON SCHEDULED BANKS
SCHEDULED BANKS Scheduled bank is a bank that is included in the Second Schedule of the RBI ACT 1934. To qualify as a scheduled bank, a bank must fulfill the following conditions: 1. The total minimum value of paid up capital and reserve must be of Rs. 25 lacs. The bank requires to satisfy the central bank that its affairs are not carried out in a way that causes harm to the interest of the depositors. The bank needs to be a corporation rather than a sole-proprietorship or partnership firm 2. 3.
Scheduled banks enjoy certain rights such as: Right to receive refinance facility from the apex bank Entitled for currency chest facility. Right to become members of clearing house They have to fulfill certainn obligations such as, maintain an average daily CRR, submit returns at a regular interval subjected to the RBI ACT 1956.
TYPES OF SCHEDULED BANKS Scheduled banks are divided into 2 types: 1. Scheduled commercial banks. 2. Scheduled cooperative banks.
TYPES OF SCHEDULED BANKS Scheduled commercial banks is again divided into the following. 1. PUBLIC SECTOR BANKS State bank of India and its associates Other nationalised banks 2. PRIVATE SECTOR INDIAN BANKS Old private sector banks New private sector banks
TYPES OF SCHEDULED BANKS 3. PRIVATE SECTOR FOREIGN BANKS 4. REGIONAL RURAL BANKS SCHEDULED COOPERATIVE BANKS 1. 2. Scheduled State Co-operative Banks Scheduled Urban Co-operative Banks
REGIONAL RURAL BANKS RRB is a bank that operates at the regional level in all states of India. It is created to link the rural areas with the banking facilities. But now, certain RRB branches have been set up in urban areas too. Its area of operation is decided by the government. Its organizational structure varies from place to place. Usually, it has 3-7 departments.
REGIONAL RURAL BANKS The hierarchy of a RRB is as under : Board of Directors Chairman & Managing Director General Manager Chief Manager/Regional Managers Senior Manager Manager . Officer/ Assist
COOPERATIVE BANKS A cooperative banking is retail and commercial banking organized on a cooperative basis. . It includes retail banking carried out by credit unions, mutual savings banks, building societies and cooperatives, commercial banking services provided by mutual organizations (such as cooperative federations) to cooperative businesses.