A presentation on the Role of the banking sector in rural India

1. INDIAN BANKING SECTOR
PRESENTED BY:- ADITYA SANYAL, SOUMEN PRAMANIK, RAHUL
DEY
1ST YEAR, 2ND SEMESTAR
EMINENT COLLEGE OF MANAGEMENT &

2. INDIAN BANKING SECTOR

3. THE PRE-INDEPENDENCE PHASE BEFOUR 1947:-
THIS PHASE IS CHARACTERIZED BY THE PRESENCE OF A LARGE NUMBER OF BANKS
(MORE THANE 500)
SECOND PHASE FROM 1947-1991:-
FOURTEEN COMMERCIAL BANKS WERE NATIONALIZED ON 19TH JULY 1969.
THIRD PHASE 1991 AND BEYOND:-
IN 1998, RBI GAVE LICENSE TO
KOTAK MAHINDRA BANK(1985)
YES BANK(2004)
HISTORY OF INDIAN BANKING

4. SHOWING NUMBERS OF BANKS
DEVELOPMENT OF BANKING IN INDIA
2006 2007 2008 2009 2010 2011
SBI GROUP 8 8 8 7 7 6
STATE-OWNED BANKS 20 20 20 20 20 20
PRIVATE SECTOR BANKS 28 25 23 22 22 21
FOREGIN BANKS 29 29 28 31 32 34
REGIONAL RURAL BANKS 133 96 91 86 82 82
NON-SCHEDULED COMMERCIAL
BANKS 4 4 4 4 4 4
SCHEDULED COMMERCIAL
BANKS 218 178 170 166 163 136

5. SHOWING NUMBER OF BRANCHES
DEVELOPMENT OF BANKING IN INDIA
2006 2007 2008 2009 2010 2011
SCHEDULED COMMERCIAL
BANKS 72,069 74,696 78,740 82,850 88,155 93,027
SBI GROUPS 14310 14673 15848 16894 18186 18823
STATE-OWNED BANKS 35858 37415 39235 40937 43467 45850
PRIVATE SECTOR BANKS 6835 7424 8324 9240 10452 12001
FOREIGN BANKS 259 272 279 295 310 319
REGIONAL RURAL BANKS 14807 14822 15054 15484 15740 16034
NON- SCHEDULED COMMERCIAL
BANKS 41 47 47 47 48 53

6. NUMBER OF BRANCHES
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011
2010
2009
2008
2007
2006

7. CLASSIFICATION OF RESERVE BANK

8. CLASSIFICATION OF COMMERCIAL BANKING

9. ROLE OF RESERVE BANK IN INDIA
ESTABLISMENT:
-
THE RESERVE BANK INDIA
WAS ESTABLISED IN 1935
UNDER THE PROVISIONS
OF RESERVE BANK OF
INDIA ACT.1934 IN
CALCUTTA EVENTUALY
MOVED PERMANENTLY TO
MUMBAI.
MAIN ROLE OF
RBI:-
MONETARY AUTHORITY.
REGULATOR AND
SUPERVISOR. OF THE
FINANCIAL SYSTEM.
REGULATOR AND
SUPERVISOR OF THE
PAYMENT SYSTEM.

10. THE THREE MAIN AND TRADITIONAL FUNCTIONS OF COMMERCIAL
BANKS ARE TO ACCEPT DEPOSITS, TO LEND AND TO ENABLE
CUSTOMERS TO MAKE PAYMENTS. THE FIRST FUNCTION ENABLES
CUSTOMERS TO KEEP THEIR MONEY IN A SAFE PLACE. DEPOSITS
CAN BE MADE INTO TWO TYPES OF BANK ACCOUNTS. ONE IS A
CURRENT ACCOUNT, SOMETIMES CALLED A DEMAND ACCOUNT.
THERE IS EASY AND IMMEDIATE ACCESS TO MONEY IN THIS TYPE
OF ACCOUNT BUT USUALLY INTEREST IS NOT PAID ON MONEY HELD
IN SUCH AN ACCOUNT. CUSTOMERS USE CURRENT ACCOUNTS
MAINLY TO RECEIVE AND MAKE PAYMENTS. THE OTHER TYPE OF
ACCOUNT IS A DEPOSIT OR TIME ACCOUNT.
ROLE OF COMMERCIAL BANK

11. ROLE OF BANKING IN RURAL INDIA
Wealth to Framers:- Bank announce the various
schemes to farmers to develop their financial
status
and economic growth of India in rural area.
Wealth to education:- this loan rural area people
can give the good education level to their
children.

12. BENEFITS:-
 No need to apply for a loan for every crop.
 Removes rigidity regarding cash and kind.
 Repayment only after harvest.
 Maximum credit limit based on agriculture income.

13. INSURANCE UNDER KCC
Kisan credit card
holders are covered
by a personal
accident insurance.
This cover is
available when the
person enters the
scheme.
Death:- 50,000
Disability:- 25000
Maximum age to
enter:- 70 years.

14. THANK YOU