Qualitative Credit Control Measures – 02
- Banking Sectors
- Co-operative Banks
- Regional Rural Banks
- Commercial Banks
- Public Sector Banks
- Private Sector Banks
- Domestic Banks
- Foreign Banks
The term COMMERCIAL BANK refers to both scheduled and non-scheduled commercial banks which are regulated under the Banking Regulation Act, 1949. The scheduled banks are those which are included under the 2nd Schedule of the Reserve Bank of India Act, 1934. COMMERCIAL BANK
- Public Sector Bank Private Sector
- State Bank
- Other Nationalized Banks
- Foreign Bank
- Private Sector
- Domestic banks
- Foreign Banks
THE RESERVE BANK OF INDIA ACT
- Paid-Up Capital and reserves of an Aggregate Value of not less than Rs. 5 lakh.
- It must satisfy RBI that its affairs are not conducted in a manner detrimental to the depositors.
- The scheduled banks enjoy certain privileges like approaching RBI for financial assistance; refinance etc and correspondingly, they have certain obligations like maintaining certain cash reserves as prescribed by the RBI.
- To break the ownership and control of banks by a few business families and thus to prevent the concentration of wealth and economic power.
- To make banks into a part of socio-economic planning
- To extend banks to rural and unbanked areas.
- To mobilize savings from masses from all parts of the country.
- To cater to the needs of the priority sector like weaker sections and poverty alleviation, agriculture, MSMEs etc.
- 14 banks with deposits of more than 50 Crore were nationalized in 1969
- 6 banks with deposits were more than 200 Crore were nationalized in 1980.
The government of India, enacted the SBI act 1955 partially nationalised the three Imperial banks (of the three presidencies). Hence the SBI was the first public sector bank of India. Eight more private banks were nationalised as SBI associates banks. Later the State bank of Bikaner and Jaipur was created by merging. In 2017 SBI was merged with 5 of its associate banks and Bhratiya Mahila bank. In 2018 it was merged with Bank Of Baroda With Vijaya Bank And Dena Bank.