Banking in India : In the modern sense originated in the last decades of the 18th century.

The
first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established
1786 and since defunct.
The largest bank, and the oldest still in existence, is the State Bank of India, which originated in
the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This
was one of the three presidency banks, the other two being the Bank of Bombay and the Bank
of Madras, all three of which were established under charters from the British East India
Company. The three banks merged in 1921 to form theImperial Bank of India, which, upon
India's independence, became the State Bank of India in 1955. For many years the presidency
banks acted as quasi-central banks, as did their successors, until the Reserve Bank of
India was established in 1935.

Reserve Bank of INDIA (RBI)

( Central Bank And Supreme Monetary Authority )

1. Scheduled Banks
1 A] Commercials Banks: These banks permit opening of demand deposites apart from
time deposites. One of the essential ingredients of a commercials bank is issue of cheque
book, thus providing facility for commercials transactions. All nationalised banks and private
banks etc. are commercial banks.
1 A (i)] Public Sector Banks (27): All those banks where government share holding is 51 % or
more are called public sector banks. Thus all nationalised banks, SBI, IDBI bank and RRBs
(Regional Rural Banks) are Public Banks.
1 A (i) a] State Bank Of INDIA and Associate Banks (8)
SBI and associate banks
1. State Bank of India
2. State Bank of Bikaner & Jaipur
3. State Bank of Hyderabad
4. State Bank of Mysore
5. State Bank of Patiala
6. State Bank of Travancore

7. State Bank of Saurashtra (merged into SBI in 2008)

8. State Bank of Indore (merged into SBI in 2010)

1 A (i) b] Other Nationalised Banks (19)

Nationalised banks / Public-sector banks

1. Allahabad Bank
2. Andhra Bank
3. Bank of Baroda
4. Bank of India
5. Bank of Maharashtra
6. Bhartiya Mahila Bank
7. Canara Bank
8. Central Bank of India
9. Corporation Bank
10.Dena Bank
11. IDBI Bank
12.Indian Bank
13.Indian Overseas Bank
14.Oriental Bank of Commerce

15.Punjab National Bank

16.Punjab & Sind Bank
17.Syndicate Bank
18.UCO Bank
19.Union Bank of India
20.United Bank of India
21.Vijaya Bank

1 A (ii)] Private Sector Banks (30): All banks other than publis sector banks are called Private
banks. These banks re registered under Indian Companies Act, 1956. They are of types
-- INDIAN Banks : Those Registered in INDIA
-- Foreign Banks : Those having registered office Out-Side INDIA
1 A (ii)a] Old (22)
1 A (ii)b] New (8)
1 A (iii)] Foreign Banks (40)

1 A (iv)] Regional Rural Banks (196): Regional Rural Banks were established under the
provisions of an Ordinance passed on 26 September 1975 and the RRB Act. 1976 to provide
sufficient banking and credit facility for agriculture and other rural sectors. These were set up on
the recommendations of The Narasimham Working Group. The development process of RRBs
started on 2 October 1975 with the with forming the first RRB, the Prathama Bank. Also on 2
October 1976 five regional rural banks were set up on with a total authorised capital of Rs. 100
crore ($ 10 Million) which later augmented to 500 crore ($ 50 Million). There were five
commercial banks, Punjab National Bank, State Bank of India, Syndicate Bank, United Bank of
India and United Commercial Bank, which sponsored the regional rural banks. Earlier Reserve
Bank of India had laid down ceilings on the rate of interest to be charged by these RRBs.
However from August 1996 the RRBs have been granted freedom to fix rates of interest, which
is usually in the range of 14-18% for advances.

1 B] Co-Operative Banks : These banks are Co-Operative societies registered under

respective state cooperative societies Act. For their organizational Structure, they are governed
by state cooperative societies Act and for their functions they are governed by RBI.
1 B (i)] Urban Co-Operative Banks (52)
1 B (i)] State Co-Operative Banks (16)

Public Sector Scheduled Banks in India

Allahabad Bank

Andhra Bank

Bank of baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

IDBI Bank (Industrial Development Bank of India)

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab and Sindh Bank

Punjab National Bank

State Bank of Bikaner and Jaipur

State Bank of Hyderabad

State Bank of India

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

The Karad Urban Bank

Ramakant Hirakan Bank India

Private Sector Scheduled Banks in India

Axis Bank Ltd

Bank of Punjab Ltd

Bank of Rajasthan

Catholic Syrian Bank

City Union Bank

Development Credit Bank

Dhanlaxmi Bank

Federal Bank Ltd

HDFC Bank Ltd

ICICI Banking Corporation Bank Ltd

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Nainital Bank, estb. 1922

Karur Vysya Bank

Karnataka Bank

Kotak Mahindra Bank

Lakshmi Vilas Bank

South Indian Bank Ltd

Tamilnad Mercantile Bank Limited

Yes Bank

The Ratnakar Bank Ltd

Foreign Scheduled Banks in India

American Express Bank Ltd.

ANZ Bank

Bank of America NT & SA

Bank of Tokyo Ltd.

Banque Nationale de Paris

Barclays Bank Plc

Citibank

Deutsche Bank AG

Hongkong and Shanghai Banking Corporation

The Royal Bank of Scotland

The Chase Manhattan Bank Ltd.

Standard Chartered Bank

The scheduled banks are of two types:

1) Scheduled Commercial banks
2) Scheduled Co-operative Banks

There are 26 Nationalized Banks in the country at present.

1. Allahabad Bank
2. Andhra Bank
3. Bank of Baroda
4. Bank of India
5. Bank of Maharashtra
6. Canara Bank
7. Central Bank of India
8. Corporation Bank
9. Dena Bank
10. IDBI Bank Ltd.
11. Indian Bank
12. Indian Overseas Bank
13. Oriental Bank of Commerce
14. Punjab & Sind Bank
15. Punjab National Bank
16. Syndicate Bank
17. UCO Bank
18. Union Bank of India
19. United Bank of India
20. Vijaya Bank
State Bank Group:
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of India
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
Note: State Bank of Indore has merged with SBI from August 26, 2010.

Current Number of Old Private Banks There are 14 Old Private sector Banks in the country as
follows:
1. Catholic Syrian Bank Ltd.
2. City Union Bank Ltd.
3. Dhanalakshmi Bank Ltd.
4. Federal Bank Ltd.
5. ING Vysya Bank Ltd.
6. Jammu & Kashmir Bank Ltd.
7. Karnataka Bank Ltd.
8. Karur Vysya Bank Ltd.
9. Lakshmi Vilas Bank Ltd.
10. Nainital Bank Ltd.
11. Ratnakar Bank Ltd.
12. SBI Commercial & International Bank Ltd
13. South Indian Bank Ltd.
14. Tamilnad Mercantile Bank Ltd.
The number of the old Private Banks in India was 15 until recently and the latest reports from
RBI (2009-10) show this 15. The Bank of Rajasthan Ltd has recently merged with ICICI Bank
Ltd.
Current Number of New Private Banks There are 7 New Private sector Banks in India as follows:
1. Axis Bank Ltd.
2. Development Credit Bank Ltd
3. HDFC Bank Ltd.
4. ICICI Bank Ltd.
5. IndusInd Bank Ltd.
6. Kotak Mahindra Bank Ltd.
7. Yes Bank Ltd

Current Number of Foreign Banks As of end of 2009, there were 32 Foreign Banks in India with
293 branches. 43 foreign banks were operating in India through representatives of offices.
Under the WTO agreements, the Reserve bank of India has to allow a minimum of 12 Branches
of all the foreign banks to be opened in a year.

9.00% (w.e.f.
Bank Rate 28/01/2014)

Increased from
8.75% which was
continuing
since 29/10/2013

[Remember Bank Rate is not the same thing as Deposit Rates offered by banks for fixed
deposits and recurring deposits.
If you are a non banker and have landed on this page while looking at Deposit Rates, please
click here to go to correct page i.e.
Best Deposit Rates offered by banks for fixed deposits]

4.00% (wef
Cash
09/02/2013)
Reserve
-announced on
Ratio (CRR)
29/01/2013

Decreased from
4.25%which was
continuing since
30/10/2012

23%(w.e.f.

Statutory 11/08/2012) Decreased from 24%

Liquidity (announced
which was
on
Ratio
continuing since
31/07/2012)
(SLR)
18/12/2010

8.00%
(w.e.f.

Increased from
Repo Rate
7.75% which was
28/01/2014
under LAF
continuing since
)
29/10/2013

7.00%
(w.e.f.

Reverse
Increased from
Repo Rate
6.75% which was
28/01/2014)
under LAF *
continuing since

29/10/2013

*Reverse Report rate was an independent rate till 03/05/2011. However, in the monetary
policy announced on 03/05/2011, RBI has decided that now onwards the Reverse Repo
Rate will not be announced separately, but will be linked to Repo rate and it will always be
100 bps below the Repo rate (till RBI decides to delink the same)

Marginal
Increased from
9.00%
Standing
8.75% which was
(w.e.f.
Facility (MSF) 28/01/2014) continuing since
**
29/10/2013

** The concept of Marginal Standing Facility was announced by RBI wef 03/05/2011
(However implemented wef 09/05/2011). At that time it was decided that Marginal
Standing Facility i.e. MSF rate will be linked to Repo rate and will be 100 bps above the
Repo Rate (till RBI decides to change the same). WEF 15/07/2013, RBI has announced
that from now onwards the MSF Rate will be 300 basis points above the Repo Rate. Once
again MSF rates were revised wef 20/09/2013 to 9.50%, which is 200 bps above the Repo
Rate, Wants to Know More About MSF - Click Here : What is Marginal

Standing Facility or What is MSF?

Saving Deposits For residents

It remained
regulated by RBI
till 24th October,
2011.

RBI has amended

Deregul
the rate of interest ated by
(a) It was 4%
on SF accounts in RBI wef
between 3/5/2011
exercise of the 25/10/20
to
powers conferred 11
24/10/2011;
by Section 35A of
the Banking
(b) It was 3.50%
Regulation Act,
between 1/3/2003
1949
to 2/5/2011)

Increas
ed from
3.50%
which
Saving Deposits under
4% wef
was
NRO and NRE
(03/05/2011 continu
categories
)
ing
since
1st
March,
2012