Table of contents | |
Introduction | |
Historical Background | |
Banking Structure in India | |
Role of RBI | |
Types of Banks | |
Non-Banking Financial Institutions |
A financial institution referred to as a bank primarily engages in the collection of deposits and the distribution of loans, each having distinct characteristics. Oversight for banks, exemplified by the Reserve Bank of India (RBI) in India, is carried out by the country's central bank. The banking sector in India is a true reflection of a mixed economy, featuring the presence of public, private, and foreign banks.
Aligned with the liberalisation policy, substantial reforms were initiated in the banking sector in 1991, guided by the recommendations of the Narasimham Committee. Before this period, both the banking and industrial sectors were subject to heavy regulation and protection by the RBI. The transformation of the banking sector was deemed crucial to not only support the liberalisation policy but also facilitate the growth of the private sector.
There are many types of banks in India, such as:
Commercial Banks are further divided into the following:
3. Payment Banks
The growth of an economy is significantly influenced by the pivotal role banks play, as they extend loans to diverse sectors for the expansion, diversification of established businesses, and the backing of emerging enterprises.
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