Banks play an important role in the modern world. Modern banking system is the result of industrial revolution, which took place in Europe. The word bank' is derived from the Italian word Banco'. Banks are the commercial institutions, which receive money in the form of deposits from those who have money & lend money to those who are in need of it. Today banks are not only suppliers of money but also manufacturers of money. According to the Indian Banking Regulation Act 1949, banking means,' Accepting for the purpose of lending or investment of deposits of money from the public, repayable in demand or otherwise & withdrawal by cheque, draft, order or otherwise.
The commercial banking system in India now consists of public sector scheduled banks and private sector scheduled as well as non-scheduled banks. In terms of business the public sector banks now have a dominant position. They now account for more than 80 percent of the entire banking system.
[...] In India until the government securities market develops sufficiently to enable open market operations to become prime instrument of monetary policy, the CRR cannot be reduced drastically. Hence, some price in terms of efficiency has to be paid for ensuring effective monetary control. Deregulation of interest rates The policy of providing too many bank loans to different favored groups at multiple concessional interest rates not only contributed to the deterioration in the profitability of banks, but also led to inefficient use of credit reflected in uneconomic creation of additional capacity & its under utilization, heavy accumulation of inventories, & poor quality of project preparation & its inefficient implementation. [...]
[...] BANKING SYSTEM IN INDIA Different types of banks are in existence in India. They may be conveniently classified into: Modern organized banking sector. Unorganized banking sector. Organized modern sector includes commercial Banks, State Bank of India, Reserve Bank Of India, Foreign Bank & specialized financial institution. Unorganized indigenous sector includes large number of indigenous bankers, moneylenders. In addition to this, post-office, savings bank, co-operative banks & land development banks are also existence. All these banking system are precisely categorized into indigenous banking system & modern banking system. [...]
[...] The off-site back up was very much lacking on the past of account of out of date information system is now planned to streamline the information system so that off-site analysis can be made to support on-site monitoring. Rehabilitation of public sector Banks The government decided to follow the recapitalization route for the restoration of net-worth. The recapitalization requires direct infusion of capital to the bank from the budget and the non-performing assets are left on their books. The government did not accept the recommendation of Narasimham committee on the financial system for setting up the Asset Reconstruction fund. [...]
[...] The establishments of the State Bank of India in 1955 and the creation of the SBI group by nationalizing eight regional banks in 1960 allowed scope for a new experiment in the Indian banking. Under a statutory obligation these banks opened new offices in semi-urban and rural areas and approached those sections of people that were hitherto never served by the modern banks. This attempt bore fruits and their relative share in total deposits received by the commercial banks increased. [...]
[...] PERSONAL BANKING State Bank of India offers a wide range of services in the Personal Banking Segment which are indexed here. SBI Term Deposits SBI Loan For Pensioners SBI Recurring Loan Against Mortgage Of Deposits Property SBI Housing Loan Loan Against Shares & Debentures SBI Car Loan Rent Plus Scheme SBI Educational Medi-Plus Scheme Loan SBI Personal Loan Rates Of Interest CORPORATE BANKING SBI is a one shop providing financial products / services of a wide range for large, medium and small customers both domestic and international. [...]
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