Structure of Indian Banking System - Indian Banking System, Indian Financial system Video Lecture | Indian Financial System - B Com

so today in this lecture I will discuss
about structure of Indian making
industry most of the time questions
being asked from which bank belongs to
which category means for example idbi
bank is given what is it public sector
bank nationalized Bank so this type of
categorization we sometimes we just
forget so in this lecture I try to clear
and clear your doubt clear your
confusion here that what are the two
main categories of banks and how the
banks are divided in this structure so
first of all I like to tell you that our
Indian banking industry is divided into
two two broad categories what are they
first one she remains the second one is
non shrewd
max now the but obvious question will
come that which types of Bank are should
do returns so some of the conditions are
there for to be eligible for this
renewal banks first one first in the
most important one it must be included
must be included in second show you
second should you love RBI act this is
the most important condition for being
children second should you love RBA act
1934 and now the question comes which
type of banks are eligible or satisfied
rich condition to be included in this
second to do love are very act 1934 so
to be eligible for inclusion the bank
must satisfy three conditions or
inclusion a bank must satisfy three
important conditions what are the first
one it must have paid up capital paid up
capital paid up capital and reserves
for aggregate value or aggregate value
of at least rupees 5 lakhs means to
start a banking business and to be
included in second to do love RBI act
yesterday when the bank must have at
least two B's 5 lakh capital second
condition it must satisfy Army I that
its Affairs means its banking Affairs or
business affairs are not detrimental or
hampering the interest Affairs not
detrimental detrimental is the most
fitting word detrimental not detrimental
to interest of its depositors positives
or customers okay so this is the second
condition her condition is about it must
be a corporation corporation must be a
corporation and not partnership not a
partnership form or not a single owner
form these are the three main condition
it must be a corporation and it is not a
partnership from a single owner form so
these are the three condition that any
bank has to satisfy to be included in
the second schedule of RBI act now what
are the facility is enjoyed by
scheduled Bank once it is declared as
you deal when what are the facilities it
enjoys it enjoys certain privileges that
is free concessional
remittance free concessional remittance
facility through RBI and its agents and
borrowing facilities from our be a man
it means it can borrow from foreign
facilities from our there means it can
borrow from RBI whenever it needs so
this is the privilege it enjoys and for
that it has to do something for enjoying
these to these facilities it in it has
to follow some of the conditions what
are they first it has to maintain to
maintain an average daily cash reserve
with rvi yesh reserve it yeah okay and
second thing it has to do it has to
submit periodicals returns balance sheet
returns the article returns to are they
under RBI act 1934 and B are at Banking
Regulation Act 1949 so this it has to
follow for enjoying these facilities now
now the question comes what type of
answer should advance what are their
categories so how comes the
will Baxter are basically two types
first one is scheduled commercial banks
should you commercial banks now now I
will tell you that which banks are
commander shiru commercial banks first
one SBI has bi and all its five all its
five associates next all the
nationalized friends or the national
banks 19 lands of nationalized banks
which I have told you in my previous
lecture and third one is IDBI now why I
have written this separately the reason
behind that it is not a nationalized
Bank it is not a nationalized Bank but
it is but it has full government
ownership or it comes under category
public sector bank so these three
variety of banks are public sector banks
nationalized banks sbin IDBI now some
more varieties are there first one next
one foreign bank foreign banks which
banks are called as foreign lands whose
offices are in whose major headquarters
are in are not in India
outside of India but their branches are
in India and they are doing their
business what are the SDF c-h is VC
Standard Chartered in etc now I think
you will understand my point which types
of banks are foreign lines now next one
is our be regional or events that also I
told you my pH of water are these these
new events are also scheduled commercial
banks next other scheduled commercial
banks
now what are the other should be
commercial max these are basically
private banks private banks Indian
private banks whose headquarters in
India but they are not government on
their privately owned and some of the
examples are access Bank ICICI yes reg
yes Bank but then newly opened private
bank so these are the other comments of
private banks they are also comes with a
suitable commercial tense
so now comes one bank one more Bank in
pink picture what are this schedule
cooperative plan this is also very
important and they are also doing
business in India they are also
functioning in India such of which type
of bags are should you cooperative hands
they are actually small financial
institutions this is its basic
definition they are regulated by banking
regulation at 1949 and banking laws
cooperative societies of native
societies act and it is 1965 these are
the two basic acts which apply on should
we go mushroom corporate events now this
is also divided into two parts and most
of the time in a bar or RBI it's a its
types are basically asked in question
which what of scheduled cooperative
banks types is subjective and most of
the time an objective question also its
types or being asked so first one is to
know the rural cooperative neck and the
second category is urban cooperative leg
now the question comes what are they
what purpose this all in our society so
Google corporate events are basically
all the banking all banking activities
all banking activities of regulated by
shared arrangement shared arrangement
between RBI and a bird means its banking
activities are mana
monitored by both the regulator's of
pants RBI and nabard reason behind it is
also a rural back so rural activities of
banking it comes under na bar and some
basic banking for its basic banking
activities it comes under RBA so this is
the reason and all the management all
management or management creation and
registration activity it is managed by
there is Sharaf Registrar of cooperative
societies cooperative societies and in
short they are called as Aziz Wester of
cooperative societies now the question
comes what are their types they are also
divided into three types first one is
state cognitive state cooperative banks
second district central cooperative and
primary agriculture credit societies
these are the three types of rural
cooperative and should you lower
cooperativeness
now this is this state cooperative banks
operated at state level at Apex state
level means overall in all state their
presence are visible and in district
central cooperative and they're
concentrated to particular district
level this strictly for example in
Lucknow and for example in Havre these
are the two district and these type of
banks belongs to only that particular
district their banking activities are
restricted to only one particular
district and in primary agriculture
credit societies they are limited to
only at village level village levels one
can say some small blocks holes fill as
levels and that grassroot levels village
means grassroot trust moves
but not so they operated village time
lately considerate societies so this is
the part of rural cooperative meant now
the question comes what are our burn
cooperative men's urban cooperative
banks in that case banking activities
its banking entities are related by only
RBA because they are operated in the
urban urban sector so in urban Nona bar
only our way and it's registration
registration and the management
activities are my advice in our seas
next the question comes what are non
suitable banks so longitudinal banks are
also called as local area banks these
are local area banks also non shuttle
things and the basic definition it it is
not the banks which are not included not
included in ii should you second
schedule of RBI act 1934 they are called
as non scheduled banks now some of the
conditions you must know what non
scheduled banks has they can do what
they cannot do so three important things
I like to tell you first would it's
subject to cash reserve requirement but
they are not required to keep them with
RBI instead they can keep them with
themselves only means the cash reserve
requirement which is also known as CRR
or should you do commercial means they
have to maintain cash is a ratio but not
with our way but themselves so they have
not subject statutory
that we cache miss a requirement not
with a theory but with themselves second
part they are not entitled to borrow
from RBI not more of them now the third
edition they may approach they may
approach RBI under abnormal conditions
or circumstances abnormal conditions so
these are the three points that you
should you should remember always shoes
so this is the basic overview of Indian
banking industries and types of banks so
I hope the banking structure is clear to
you