Banking commerce

AIDS TO TRADE (BANKS)AIDS TO TRADE (BANKS)

NAME: SURJIT KAUR NOORINAME: SURJIT KAUR NOORI

ROLL NO. 43ROLL NO. 43

SUBJECT : ORGANISATION OF COMMERCESUBJECT : ORGANISATION OF COMMERCE

STD : XISTD : XI

B.Ed 2010-2011B.Ed 2010-2011

K.J SOMAIYA COMPREHENSIVE COLLEGE OF EDUCATION, TRAINGING & RESEARCH

CONTENTCONTENT CONCEPT OF BANKCONCEPT OF BANK DIFFERENT TYPES OF BANKSDIFFERENT TYPES OF BANKS CENTRAL BANK AND ITS FUNCTIONSCENTRAL BANK AND ITS FUNCTIONS COMMERCIAL BANK AND ITS COMMERCIAL BANK AND ITS

FUNCTIONSFUNCTIONS

CONCEPT OF BANKCONCEPT OF BANK Derived from the Italian Derived from the Italian

word “word “BancoBanco”, which ”, which means bench.means bench.

Used to be called as Used to be called as Banco Personal or Banco Banco Personal or Banco AreasAreas

Later on, when the Later on, when the Financial Organisation Financial Organisation started to function then started to function then the name changed to the name changed to BankBank

DEFINITION OF BANKDEFINITION OF BANK Section 5(C) Section 5(C)

defines defines “ “Banking Banking

Company as any Company as any company which company which transacts the transacts the business of business of Banking in India.“Banking in India.“

TYPES OF BANKS IN TYPES OF BANKS IN INDIAINDIA

1.1. CENTRAL BANKCENTRAL BANK2.2. COMMERCIAL BANKSCOMMERCIAL BANKS3.3. INDUSTRIAL BANKSINDUSTRIAL BANKS4.4. LAND MORTGAGE OR LAND MORTGAGE OR

AGRICULTURE BANKSAGRICULTURE BANKS5.5. RURAL BANKSRURAL BANKS6.6. CO-OPERATIVE BANKSCO-OPERATIVE BANKS7.7. INTERNATIONAL BANKSINTERNATIONAL BANKS

CENTRAL BANK OF INDIACENTRAL BANK OF INDIA

COMMERCIAL BANKS IN COMMERCIAL BANKS IN INDIAINDIA

INDUSTRIAL BANKS OF INDUSTRIAL BANKS OF INDIAINDIA

LAND MORTGAGE OR LAND MORTGAGE OR AGRICULTURAL BANK IN INDIAAGRICULTURAL BANK IN INDIA

RURAL BANKS IN INDIARURAL BANKS IN INDIA

CO-OPERATIVE BANKS IN CO-OPERATIVE BANKS IN INDIAINDIA

INTERNATIONAL BANKS IN INTERNATIONAL BANKS IN INDIAINDIA

CENTRAL BANKCENTRAL BANK Reserve Bank of India (RBI) is the Central Reserve Bank of India (RBI) is the Central

Bank of India.Bank of India. Previously name as Imperial Bank of India.Previously name as Imperial Bank of India. It was established on 1It was established on 1stst April 1935. April 1935. Till now Central Bank had 22 Governors since Till now Central Bank had 22 Governors since

it establishment.it establishment. Mr. Duvvuri Subbarao is the Current Governor Mr. Duvvuri Subbarao is the Current Governor

of RBI.of RBI.

FUNCTIONS OF CENTRAL FUNCTIONS OF CENTRAL BANK IN INDIABANK IN INDIA

Controls the monetary policy of Rupee and US$ of Controls the monetary policy of Rupee and US$ of Currency Reserve.Currency Reserve.

Prescribes the Board Parameters of Banking Prescribes the Board Parameters of Banking Operation for the Banks and the Financial Institution Operation for the Banks and the Financial Institution in India.in India.

Maintains Public Confidence in the System Protect Maintains Public Confidence in the System Protect Depositors Interest.Depositors Interest.

Provides Cost Effective Banking Services to Public.Provides Cost Effective Banking Services to Public.

FUNCTIONS OF CENTRAL FUNCTIONS OF CENTRAL BANK IN INDIABANK IN INDIA

Issues and Exchanges or Destroys the Issues and Exchanges or Destroys the Currency and Coins not fit for Circulation.Currency and Coins not fit for Circulation.

Gives the Public adequate quantity of supplies Gives the Public adequate quantity of supplies of Currency Notes and Coins in good quality.of Currency Notes and Coins in good quality.

Maintains Banking A/C’s of all Schedule Maintains Banking A/C’s of all Schedule BanksBanks

CENTRAL BANKS OF CENTRAL BANKS OF DIFFERENT COUNTRIESDIFFERENT COUNTRIES

Pakistan China

Unites States of America

COMMERCIAL BANKCOMMERCIAL BANK It offers services to individuals.It offers services to individuals. Primarily concerned with receiving Deposits and Primarily concerned with receiving Deposits and

lending money to business.lending money to business. Commercial Banks are divided into 2 Commercial Banks are divided into 2

CategoriesCategories1.1. State Bank of India and AssociatesState Bank of India and Associates- State Bank of IndiaState Bank of India- State Bank of Bikaner and JaipurState Bank of Bikaner and Jaipur- State Bank of HyderabadState Bank of Hyderabad- State Bank of Indore State Bank of Indore

COMMERCIAL BANKCOMMERCIAL BANK Nationalised BanksNationalised Banks

- IDBI BankIDBI Bank

- Canara BankCanara Bank

- Dena BankDena Bank

- Indian BankIndian Bank

PRIMARY FUNCTIONS OF PRIMARY FUNCTIONS OF COMMERCIAL BANKSCOMMERCIAL BANKS

Accepting DepositAccepting Deposit- Current Deposit, Saving Deposit and Fixed DepositCurrent Deposit, Saving Deposit and Fixed Deposit Granting Loans and AdvancesGranting Loans and Advances- Business LoansBusiness Loans- Car LoanCar Loan- Home LoanHome Loan- Personal Loan, Etc.Personal Loan, Etc.- Cash CreditCash Credit- Overdraft FacilityOverdraft Facility- Discounting of BillsDiscounting of Bills

SECONDARY FUNCTIONS OF SECONDARY FUNCTIONS OF COMMERCIAL BANKSCOMMERCIAL BANKS

Transferring Money from 1 place to another and Transferring Money from 1 place to another and from 1 branch to another branch of the bank.from 1 branch to another branch of the bank.

Foreign Exchange Facilities.Foreign Exchange Facilities. Undertaking safe custody of valuable important and Undertaking safe custody of valuable important and

security by providing Safe Deposits lockers.security by providing Safe Deposits lockers. Issuing Demand Draft (DD) and Pay Orders.Issuing Demand Draft (DD) and Pay Orders. Issuing Letters of Credit Issuing Letters of Credit

The term “Bank” has been derived from which The term “Bank” has been derived from which word?word?

Ans :Ans : - Bank is derived from an Italian word “Banco”.- Bank is derived from an Italian word “Banco”.

QUESTIONSQUESTIONS

QUESTIONSQUESTIONS Name any 3 types of Banks in India?Name any 3 types of Banks in India? Ans : Ans : - Central Bank- Central Bank - Commercial Bank- Commercial Bank - Industrial Bank- Industrial Bank - Land Mortgage or Agriculture Banks- Land Mortgage or Agriculture Banks - Rural Banks, etc.- Rural Banks, etc.

QUESTIONSQUESTIONS Who is the current Governor of RBI ?Who is the current Governor of RBI ?Ans:Ans:- Mr. Duvvuri SubbaraoMr. Duvvuri Subbarao State any one of the Secondary Functions of the State any one of the Secondary Functions of the

Commercial Banks ?Commercial Banks ?Ans:Ans:- Issuing Demand Draft (DD) and Pay Orders.Issuing Demand Draft (DD) and Pay Orders.- Issuing Letters of Credit Issuing Letters of Credit - Foreign Exchange FacilitiesForeign Exchange Facilities