They do not understand the concepts like INFLATIONINTEREST RATE RISK DIVERSIFICATION AND COMPOUNDED INTERESTMICR NEFT RTGS IFSC

Fact76% Indians not financially literate

-says S&P survey

CHECK THIS CHEQUE

Banking

The Reserve Bank of India Act, 1934 and the Banking

Regulation Act, 1949, govern the banking operations in India.

Banking Regulation Act of India, 1949 defines Banking as “accepting, for the purpose of lending or of investment of deposits of money from the public, repayable on demand or otherwise or withdrawable

by cheque, draft order or otherwise.”

History Of Banking Banking begins with the first prototype banks

of merchants of the ancient world.

Began around 2000 BC in Assyria and Babylonia.

Lenders of ANCIENT GREECE started accepting deposits and changed money.

In Italy it began in 11th century.

Italy was a biggest Europion trade center.

Here banking started because of Circulation of different currency.

TYPES OF

BANKS

MEANINGOF

BANK

Types of banks

KSFC

Different Types Of Banks

Types of Banks

Central Bank (RBI)

Commercial Banks Term Financial Institutions

State Finance Corporations

(SFCs)

Indian Financial Institutions

IFCINABARD

SIDBI

Public Sector

Private Sector

Foreign Co-operative

Banks

Regional Rural Banks

SBIPNBBOB

HDFC Bank

UTI BankICICI Bank

CitibankHSBC

PMCSGCBCCCB

Commercial Banks

• Commercial banks comprising public sector banks, foreign banks, and private

sector banks represent the most important financial intermediary in the Indian

financial system.

The changes in banking structure and control have resulted due to wider

geographical spread and deeper penetration of rural areas, higher

mobilization of deposits, reallocation of bank credit to priority activities, and

lower operational autonomy for a bank management.

Public & Private Sector , Foreign Banks

Penetration Of Rural Areas

Mobilization Of

DepositsLoansCredit

SBI

11

Cooperative Bank– These banks play a vital role in mobilizing savings and

stimulating agricultural investment. Co-operative credit institutions account for the second largest proportion of 44.6% of total institutional credit. The co-operative sector is very much useful for rural people. The co-operative banking sector is divided into the following categories.

Punjab And Maharashtra Co-op bank Citizen Credit Co-op bank State Co-operative Banks

Central Co-operative Banks Primary Agricultural Credit Societies

Land Development Banks State Land Development Banks

12

Development Banks

– A development bank may be defined as a financial institution concerned with providing all types of financial assistance to business units in the form of loans, underwriting, investment and guarantee operations and promotional activities-economic development in general and industrial development in particular

– A term lending institution. It is a multipurpose financial institution with a broad development outlook.

– The industrial finance corporation of India, the first development bank was established in 1948. Subsequently many other institutions were set-up.

Ex. IDBI, IFCI, SIDBI

13

Functions of Development Banks

– Fostering industrial growth

– Providing Long term assistant

– Balanced development– Providing Promotional

services– Infrastructure building– Entrepreneur

Development– Fulfilling Socio economic

objectives

Infrastructure Development

Industrial Growth

Entrepreneur Development

Financial Assistance

IDBI , SIDBI, IFCI, EXIM

14

Investment Banks– Meaning: Financial

intermediaries that acquire the savings of people and direct these funds into the

business enterprises seeking capital for the acquisition of plant and equipment and for

holding inventories are called ‘investment banks’.

– Features: Long term financing, Security,

merchandiser, Security middlemen, Insurer,

Underwriter– Functions: Capital

formation, Underwriting, Purchase of securities, Selling of securities,

Advisory services, Acting as dealer.

Investment Bank

Cross-Border

Transaction

Middlemen

Long Tem FinancingM&A

Valuation and

Opinion

Underwriting

15

Merchant Banks• Meaning: Institution that render wide range of services such as the management of

customer’s securities, portfolio management,

counseling, insurance, etc are called ‘Merchant Banks’.• Functions: Sponsoring

issues, Loan syndication, Servicing of issues, Portfolio, management, Arranging fixed deposits, Helps in merger&

acquisition• SBI IN 1972

DON’T GET CONFUSED !!!

TYPES-SHAREHOLDERS-PLAYERS

4 Types of banking services

LOAN-Personal Loan-Home Loan

Banking Services

TOP 3 Banks In India

-Serving customers since 1955.-Net Profit for 2014 Rs.13101.57 Cr.

-Serving customers since 1994. -Net Profit for 2014 Rs.7,488 Cr.

-Serving customers since 1894.-Net Profit for 2013 Rs.4,748 Cr.

The Role of RBI• The Reserve Bank of India (RBI) is

the central bank of India, and was established on April 1, 1935 in

accordance with the provisions of the Reserve Bank of India Act, 1934.

Since its inception, it has been headquartered in Mumbai. Though originally privately owned, RBI has

been fully owned by the Government of India.

• RBI is governed by a central board (headed by a Governor) appointed by the Central Government.RBI has 22

regional offices across India.

TYPES OF

BANKS

SERVICES OFFERED BY

BANKS

A. Bank B. Mutual funds

C. Tin Can in your basement or Under your bed

If you had Rs.1,00,000 where would you save it until you

needed it?

Common Banking Products Available

Debit & Credit Card

Automatic Teller Machine

Electronic Funds Transfer (EFT)

Tele-banking

Mobile Banking

Internet Banking

Deposits, Loans, OD,

Insurance, promissory notes, drafts

Trading of shares, Underwriting, Portfolio mgmt

BASEL Framework Bank for International Settlements (BIS)

Established on 17 May 1930, the BIS is the world's oldest international financial organization. It has its head office in Basel,

Switzerland. BIS fosters co-operation among central banks and other agencies in

pursuit of monetary and financial stability.

It fulfills this mandate by acting as: A forum to promote discussion and policy analysis among central

banks and within the international financial community. A centre for economic and monetary research

A prime counterparty for central banks in their financial transactions Agent or trustee in connection with international financial operations

REVOLUTIONS

SERVICES OFFERED BY

BANKS

E-Banking

Many banks have modernized their services with the facilities of computer and electronic equipments.

The electronics revolution has made it possible to provide ease and flexibility in banking operations to the benefit of the customer.

The e-banking has made the customer say good-bye to huge account registers and large paper bank accounts.

“Banks Moving From Branch Based To Internet Based Banking”

Internet Banking 1997Initiated by ICICI bank in 1997 with the name INFINITY

Revolutions In Indian Banking Industry Transforming Life Of Millions

Core Banking Solution (CBS)

MICR and automated cheque clearing

Mobile banking

As stated by Ms Shikha Sharma, MD and CEO of Axis Bank, “As far as retail banking is concerned, technology would help in building confidence at a low cost. Overall, technology would help to solve complex trade-offs in the future”, we can see the amount of dependency banking industry is showing on IT.

Demat Account

Revolutions In Indian Banking Industry Transforming Life Of Millions Automated teller Machines

Smart Cards (Debit & Credit Cards)

Internet Banking

EFT (Electronic Fund Transfer)

Bank2.0

Financial LiteracyAs of 29th Sept,2015Source - wikipedia.org

Conclusion

India is a nation of great savers and not investors.

Banks has grown up in past centuries which has a E-future.

Branch based banking is becoming Internet based banking.

Banking is not just a concept to know but also a way to earn money.

“Put money in the market, not in your bank account or under your bed.Don’t let money be idle. Let your money work for you, don’t work for your money.”

-Mr.Sabyasachi Mukherjee-Head Personal Investment Counsulting, IIFL

Webliographyhttp://www.businesseconomics.in/

http://www.mbaskool.com/

https://localfirstbank.com/content/different-types-of-banking-services

http://www.worldblaze.in/top-10-best-banks-in-india/

http://www.nabard.org

http://www.icicibank.com

http://www.sbi.com

http://www.managementparadise.com/article/183/basics-of-ifsc-micr

First Questions And Then Thank You

Presentation by,Bhushan R.S Kasture9168833898/8867180474