Banking

BANKING IN INDIA

Presented on 30/11/2012 Presented By, Siju

Titto

Visakh

Uwais

OBJECTIVESTo understand the meaning of banks and

banking

To know what are the types of banking

To know functions and roles of banking and

also the types of accounts

CONTENT1. Banks and Banking

2. History

3. Types of Banking

4. Role of Banking

5. Functions of Banks

6. Types of Accounts

BANKS

• A financial institution

• Set up for lending , issuing, exchanging , taking deposits,

safeguarding, or handling money

• 26 Nationalized banks in India

BANKING

• Business activity

• Accepting and lending money

• To earn profit

History of banks..

Banking in India originated in the year 1770

The State Bank of India started in the year 1955.

The period between 1906 and 1911, saw the

establishment of banks inspired by the Swadeshi

movement.

Cont…The Reserve bank of India was established in

the year 1935, but was nationalized on 1

January 1949 under the Reserve bank of India

Act 1948.

The Banking Regulation Act was enacted in

1949 and empowered the RBI “to regulate,

control, and inspect the banks in India".

TYPES OF BANKINGE-Banking (Electronic banking ) - ATM, Credit cards, Debit cards Net Banking - Use of computer and internet - Customers can access their accounts

through bank web sites Mobile banking - Mobile Phones are used

Cont…Retail banking Transactions are executed directly with

customersCore banking Stands for "centralized online real-time

environment“

Role of BankingEncourages the saving habit among the people.

Acts as an intermediary

Facilitates business transactions through receipts

and payments by cheques instead of currency.

Provides loans and advances to businessmen for

short term and long-term purposes.

Also facilitates import export transactions.

Cont…It helps in national development by providing

credit to farmers, small-scale industries and

self-employed people as well as to large

business houses which lead to balanced

economic development in the country.

Helps in raising the standard of living of

people in general by providing loans for

purchase of consumer durable goods, houses,

automobiles, etc.

FUNCTIONS OF BANK

Types of Accounts Saving Accounts

- Encourage saving habit among the public

- Low interest

- 5% at present

Fixed Accounts

- Deposited for a specific period of time

- High interest rate

- Withdrawals not allowed

Cont…Current Accounts

-It is for businessmen

-Easy withdrawals

-No interest

Recurring Deposit

-Operated by salary person and petty traders

- Withdrawals are permitted only after the expiry of

certain period.

- High interest rate

THANK YOU