Structure of banking in India

 MUDRA Bank

• launched in April 8, 2015 

• Pradhan Mantri Mudra yojana
• primarily it responsible for regulating micro and small enterprise financing business,
and supporting them
• MUDRA Bank that aims to provide refinancing to small and medium enterprises,
particularly those belonging to members of scheduled castes and scheduled tribes.
• Shishu
• This is will be the first step when the business is just starting up. The loan cover in this
stage will be upto Rs 50,000. 
• Kishor
• In this stage, the entrepreneur will be eligible for a loan ranging from Rs 50,000 to Rs 5
lakh. 
• Tarun
• This last and final category will provide loans for upto Rs 10 lakh
 NHB

• The National Housing Bank (NHB) is an apex level financial institution catering
to the housing sector in the country.
• It was established on July 9, 1988.
• It is a wholly owned subsidiary of Reserve Bank of India (RBI), was set up by
an Act of Parliament in 1987.
• NHB has been established with an objective to operate as a principal agency to
promote housing finance institutions both at local and regional levels.
• It is headquartered in New Delhi and has offices in all major cities.
1. To promote housing finance institutions at both regional and
local levels.
2. To regulate all the housing finance institutions for smooth
and proper functioning.
3. As an apex institution, It can provide financial support to
housing finance institutions whenever they needed
 SIDBI (Small Industries Development Bank of India)

• This specialized bank to establish a small-scale business unit or industry.

• Small Industries Development Bank of India (SIDBI) was established in October 1989 and commenced
its operation from April 1990 with its Head Office at Lucknow as a development bank, exclusively for
the small scale industries.
• It is a central government undertaking.
• The prime aim of SIDBI is to promote and develop small industries by providing them the valuable
factor of production finance. Many institutions and commercial banks supply finance, both long-term
and short-term, to small entrepreneurs.
• Initiates steps for technology adoption, technology exchange, transfer and
upgradation and modernization of existing units.
• SIDBI participates in the equity type of loans on soft terms, term loan,
working capital both in rupee and foreign currencies, venture capital support,
and different forms of resource support to banks and other institutions.
• SIDBI facilitates timely flow of credit for both term loans and working
capital to SSI in collaboration with commercial banks.
• SIDBI enlarges marketing capabilities of the products of SSIs in both
domestic and international makets.
• SIDB1 directly discounts and rediscounts bills with a view to encourage bills
culture and helping the SSI units to realize their sale proceeds of capital
goods / equipments and components etc
• SIDBI promotes employment oriented industries especially in semi-urban
areas to create more employment opportunities so that rural-urban migration
of people can be checked
 FUNCTIONS OF COMMERCIAL BANK

• . Principal/ Primary/ Fundamental function

• Subsidiary/ Secondary/ Supplementary functions
• Innovative functions.
 Principal functions

• Receiving deposits
• Lending of funds
• Cash Credit
• Term loans
• Over-Drafts
• Discounting of Bills of Exchange
• Credit creation
• Use of cheque system and plastic card.
• Transfer of fund
Subsidiary/ Secondary/ Supplementary
functions
• Agency function
• Collection of credit instrument
• Collection of dividend
• Act as trustee or executor
• Execution on standing order
• Purchase and sale of securities
• Acting as a representative or correspondence
• Remittance of fund
• Deals with foreign exchange
• General utility services
• Safe custody of valuables
• Locker fecility
• Letter of credit
• Fund transfer
• Provide information
• Underwrites shares
• Issue gifts and cheque
• Credit card
• Travelers cheque
 Innovative functions
• Provisions of ATM services
• Credit card fecility
• Tele banking
• Personal banking
• Internet banking
• Electronic fund transfer
• Electronic clearing house
• RTGS
• Bancassurance
• Mobile banking
 Emerging trends in banking in india

• Banking regulation act 1949

• Creation of SBI
• Nationalization of bank
• Lead bank scheme
• Deposit insurance and credit guarantee scheme
• Number of bank
• Branch expansion
• Increase deposit and credit
• Change in the composition of deposit
• Credit expansion
• Advance to priority sector lending
• Micro finance
• Reserve bank control
• Industrial finance
• Develpoment oriented banking
• Shift from banking from big customer to small customer
• New innovation and diversification
• Technology adoption
• Online payment service
• Financial inclusion
• No frill account
• PMJDY
 Banks for economic development

• Stimulate saving
• Capital formation
• Facilitate agriculture development
• Innovating entreprenuers
• Promotion of small scale industry
• Monetization of economy
• Facilitate international trade
• Create employment opportunity
• Influence the economic activity.
• Encourage right type of industry
• Balanced development
Thanks