BANKS AND BANKING Banks are institutions that take

BANKS AND BANKING Banks are institutions that take care of the money of individuals and corporates, provide loans to people for business or personal use. They also offer a wide range of services like exchange of foreign currency, Investment Banking, Mutual Funds, Insurance Business, Dmat services, Online trading of shares, providing public utility services like e-tickets, payment of bills, educative services etc.

Stages in History of Banking in india History of Banking has been divided into Stages like: n Pre-independence stage n Post Independence stage n Nationalisation of Banks n Introduction of Financial Sector Reforms n IT revolution in Banks

History of Banking in India There were three oldest Banks n Bank of Bengal n Bank of Bombay n Bank of Madras These banks were called Presidency Banks. They merged in 1925 to form the Imperial Bank of India, which after independence became State Bank of India. Reserve Bank of India came into existence in 1935 which took the responsibility of regulating Banking sector as Central Bank in India.

Banking Scenario after Independence In 1948, the Reserve Bank of India was nationalized, and it became an institution owned by the Government of India. n In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India. " n

Nationalisation of Banks On July 19, 1969, 14 major banks were nationalised. n On April 15, 1980 another 6 banks were nationalised. n With the nationalisation, the banking in India shifted from ‘Class’ banking to ‘Mass’ Banking n

Liberalisation n In the early 1990 s the Govt embarked on a policy of liberalisation and gave licences to a small number of private banks, which came to be known as New Generation tech-savvy banks like Global Trust Bank, UTI Bank(now renamed as Axis Bank), ICICI Bank and HDFC Bank.

Current Banking Scenario n n n Currently, India has 81 scheduled commercial banks (SCBs) – 28 (19 Nationalised banks + 8 SBI Group + 1 IDBI), 29 Foreign banks and 24 Private banks. They have a combined network of over 53, 000 branches and 17, 000 ATMs. The public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18% and 7% respectively.

Scope of Career in Banks n A career in the banks has always been a sought-after one. Fascination with banking services has never been higher than at present. With the advent of private and foreign banks, the interest of youth in joining banks has only increased further. Another notable factor has also been the pay package which has fattened considerably with the coming of these banks.

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