Banking in India

History in short:=

In 1770 - Bank of Hindustan

1786 – General Bank of India

1806 – Bank of Kolkata (BOK)

1890 – Bank of Bombay (BOB)

1843 – Bank of Madras (BOM)

1921 – Presidency Bank (by merging BOK, BOB & BOM)

 Then Presidency Bank renamed to Imperial Bank of India. In 1955 it further became State Bank of India and it nationalized in 1955.

The largest and the oldest Bank which still existence is the State Bank Of India (SBI).

Types of Banks:=

There are 2 types of Banks :

i)                    Schedule Bank

ii)                   Non-Schedule Bank

Q1:= What is a Schedule Bank ?

Ans:= 

* Banks which are listed in the 2^nd schedule of the Reserve Bank of India Act, 1934 is called as scheduled bank.

* Every scheduled bank enjoys two types of basic facilities: it becomes eligible for loan/loan from RBI at bank rate; And, it automatically acquires membership of the clearing house.

Q2:= What is a Non-schedule Bank ?

Ans:= 

* Banks which are not listed in the 2^nd schedule of the Reserve Bank of India Act, 1934 is called as non-scheduled bank. 

* They don't conform to all the criteria under clause 42, but dully follow specific guidelines as determined by RBI. Those banks whose reserve capital is less than Rs 5 lakhs qualify as non-scheduled banks.

Banking Structure Diagram:=

Structure 1

Structure 2 (Structure of Co-Operative Banks)