co opeartive banking

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Introduction to banking system in India:

The banking section will navigate through all the aspects of the Banking System in India. It will

discuss upon the matters with the birth of the banking concept in the country to new players

adding their names in the industry in coming few years. The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and

top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three separate heads with one page

dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been well explainedunder three different heads namely:

y History of Banking in India

y Nationalisation of Banks in Indiay Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India. Government took major step in the 1969 to put the banking sector into systems and it nationalised 14 private banks

in the mentioned year. This has been elaborated in Nationalisationof Banks in India. The last butnot the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of

RBI Act 1934 lays down the condition of scheduled commercial banks.

Introduction to co operative banks:

The Co operative banks in India started functioning almost 100 years ago. The Cooperative bank is an important constituent of the Indian Financial System, judging by the role assigned to co

operative, the expectations the co operative is supposed to fulfil, their number, and the number of offices the cooperative bank operate. Though the co operative movement originated in the West,

but the importance of such banks have assumed in India is rarely paralleled anywhere else in theworld. The cooperative banks in India plays an important role even today in rural financing. The

businessess of cooperative bank in the urban areas also has increased phenomenally in recentyears due to the sharp increase in the number of primary co-operative banks.

Co operative Banks in India are registered under the Co-operative Societies Act. The cooperativebank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 andBanking Laws (Co-operative Societies) Act, 1965.

Cooperative banks in India finance rural areas under:

y Farming

y Cattle



y Milk y Hatchery

y Personal finance

Cooperative banks in India finance urban areas under:

y Self-employment

y Industriesy Small scale units

y Home finance y Consumer finance

y Personal finance

Some facts about Cooperative banks in India

y Some cooperative banks in India are more forward than many of the state and private

sector banks.

y According to NAFCUB the total deposits & lendings of Cooperative Banks in India ismuch more than Old Private Sector Banks & also the New Private Sector Banks.

y This exponential growth of Co operative Banks in India is attributed mainly to their muchbetter local reach, personal interaction with customers, their ability to catch the nerve of

the local clientele.

Types of banks in IndiaThe History of banking in India dates back to the early half of the 18th century. 3 PresidencyBanks that were established in the country namely the Bank of Hindustan, Bank of Madras and

Bank of Bombay can also be referred to as some of the oldest banking institutions in the country.The State Bank of India that was earlier known as the Bank of Bengal is also one of the oldest in

the genre. To know about the types of banks in India, it is necessary that we first comprehend thebanking system so as to be able to distinguish about its various types.

All types of Banks in India are regulated and the activities monitored by a standard bank called

the Reserve Bank of India that stands at the apex of the banking structure. It is also called the

Central Bank, as major banking decisions are taken at this level. The other types of banks inIndia are placed below this bank in the hierarchy.

The major types of banks in India are as follows:

Public sector banks in India - All government owned banks fall in this variety. Besides the

Reserve Bank of India, the State Bank of India and its associate banks and about 20 nationalized



banks, all comprises of the public sector banks. Many of the regional rural banks that are funded

by the government banks can also be clubbed in this genre.

Private sector banks in India - A new wave in the banking industry came about with the

private sector banks in India. With policies on liberalization being generously taken up, these

private banks were established in the country that also contributed heavily towards the growth of

the economy and also offering numerous services to its customers. Some of the most popular

banks in this genre are: Axis Bank, Bank of Rajasthan, Catholic Syrian Bank, Federal Bank,

HDFC Bank, ICICI Bank, ING Vysya Bank, Kotak Mahindra Bank and SBI Commercial and

International Bank. The Foreign Banks in India like HSBC, Citibank, and Standard Chartered

bank etc can also be clubbed here.

Cooperative banks in India - With the aim to specifically cater to the rural population, the

cooperative banks in India were set up through the country. Issues like agricultural credit and the

likes are taken care of by these banks.

co opeartive banking

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