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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