PPT: Banking Sector | Indian Economy for UPSC CSE PDF Download

 Page 1


Lecture 5  
Banking Sector
Capstone IAS Learning
Page 2


Lecture 5  
Banking Sector
Capstone IAS Learning
What will we cover
The concept of banking 
Brief history of banking in India 
Types of Banks in India 
Various important terms associated with 
banking in India. 
Shadow Banks/NBFCs 
Banking Sector Reforms
Page 3


Lecture 5  
Banking Sector
Capstone IAS Learning
What will we cover
The concept of banking 
Brief history of banking in India 
Types of Banks in India 
Various important terms associated with 
banking in India. 
Shadow Banks/NBFCs 
Banking Sector Reforms
Financial Intermediation
Banks Surplus Deficit
4% 6%
Spread = 2%
Apart from banks NBFCs also take part in financial 
intermediation.
Savings
Investment
Liabilities Assets
Page 4


Lecture 5  
Banking Sector
Capstone IAS Learning
What will we cover
The concept of banking 
Brief history of banking in India 
Types of Banks in India 
Various important terms associated with 
banking in India. 
Shadow Banks/NBFCs 
Banking Sector Reforms
Financial Intermediation
Banks Surplus Deficit
4% 6%
Spread = 2%
Apart from banks NBFCs also take part in financial 
intermediation.
Savings
Investment
Liabilities Assets
A bank is a financial institution which 
performs the deposit and lending function. 
A bank acts as an intermediary between the 
saver and the borrower/investor, and that is 
why banks are called financial 
intermediaries. 
The banking sector has 3 major functions: 
-
Mobilisation of savings 
-
Allocation of savings to investment 
-
Operation of payment system 
Page 5


Lecture 5  
Banking Sector
Capstone IAS Learning
What will we cover
The concept of banking 
Brief history of banking in India 
Types of Banks in India 
Various important terms associated with 
banking in India. 
Shadow Banks/NBFCs 
Banking Sector Reforms
Financial Intermediation
Banks Surplus Deficit
4% 6%
Spread = 2%
Apart from banks NBFCs also take part in financial 
intermediation.
Savings
Investment
Liabilities Assets
A bank is a financial institution which 
performs the deposit and lending function. 
A bank acts as an intermediary between the 
saver and the borrower/investor, and that is 
why banks are called financial 
intermediaries. 
The banking sector has 3 major functions: 
-
Mobilisation of savings 
-
Allocation of savings to investment 
-
Operation of payment system 
Functions of Banks
Primary  
Functions
Secondary 
Functions
Granting 
Advances
Accepting 
Deposits
Agency 
Functions
Utility 
Functions
Fund transfer 
Cheque collection 
Portfolio management 
Etc.
Lockers 
Utility bills 
Social welfare 
   Programmes 
Etc.