Professional Documents
Culture Documents
Banking
Banking
banco "desk/bench“
The word traces its origins back to the Ancient
Roman Empire, where moneylenders would set
up their stalls in the middle of enclosed
courtyards called macella on a long bench
called a bancu, from which the words banco
and bank are derived
Acc to banking act 1949 "banking" means the
accepting, for the purpose of lending or
investment, of deposits of money from the
public, repayable on demand or otherwise,
and withdrawable by cheque, draft, order or
otherwise
FUNCTIONS OF BANK
Lending and borrowing of money
Issue of banknotes (promissory notes issued by a banker
and payable to bearer on demand)
Currency exchange
Portfolio management
Safekeeping of documents and other items in
safe deposit boxes
Distribution or brokerage
Issuing bank drafts and bank cheques
Processing of payments by way of telegraphic transfer,
EFTPOS, internet banking or other means
TYPES OF BANKING
Retail banking - Dealing directly with
individuals and small businesses
Business banking - Providing services to mid-
market business
Corporate banking - Directed at large business
entities
Private banking - Providing wealth
management services to high net worth
individuals and families
Investment banking - Relating to activities
on the financial markets
VARIOUS BANKING
CHANNELS
Branch
ATM
Mail
Telephone banking
Online banking
Mobile banking
Video banking
Evolution of present day banking
in India
Phase I: Indigenous banks
Vedas and the Manusmriti:
Kautalya’s Arthashastra: Suggested Maximum and Minimum Interest rate
Kautalya, Yajnyavalkya and Manu recommended 15 per cent interest per
annum on capital.
British rule almost wiped out these tribes by bringing European Banks from
urban
They moved to villages. They survive even today. Borrower is known
Phase II: Direct Intervention
Government Interventions began in 1930s
The Reserve Bank which is the Central Bank was created in 1935 by passing
RBI Act 1934.
The RBI is the sole authority for
New banks to be in India
◦Royal Bank of Scotland
◦Switzerland's UBS
◦US-based GE Capital
◦Credit Suisse Group
India - Strategic Map Citibank
Stan C ABN Amro
hgi H
HSBC
ICICI Bank
Karur Vysya HDFC
IndusInd Bank
Vysya Bank
Bank of Baroda
Bank of India
ytil a u Q eci vr e S
PNB
Andhra Bank
Canara Bank
Co-operative Banks
Rural Banks
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