Banking is defined in Sec.5(b) of Banking Regulations Act (BRA)
1949 as Accepting for the purpose of lending or investment deposits
of money from public repayable on demand or otherwise &
withdrawable by cheque, draft, order or otherwise.Banking Company
(defined in Sec.5(c ) of BRA 1949) means any company which
transacts the business of banking in India.Banker (defined in Sec.3
of N.I. Act 1881) includes any person acting as a banker and any
post office saving bank.Deposits:- Repayable on demand:- Savings
Bank Deposits , Current Deposits. (CASA) , Flexi Deposit. Cheque
book provided. Repayable otherwise than on demand:- Recurring
Deposits, Fixed Deposit, Reinvestment Plan, Regular Income cum
Recurring Deposit (RIRD) etc.*
Lending:- (A) Fund Based Lending:- Loans Demand (Repayable
within 35 months) & Term LoansOverdraft FacilityCash Credit
Facility against pledge or hypothecation of goods, against
hypothecation of book-debts or against assignment of supply Bills
(Bills drawn for goods and services supplied to Govt. or Semi-Govt.
departmentsBills Purchased / Discounted.*
(B) Non Fund Based Facilities:-Letters of Credit
(L/Cs)GuaranteesCo-acceptance Limits
Investments:- SLR Investments (Presently 24% of Demand &
Time Liabilities) Investments in approved Govt. & Semi-Govt.
Securities classified asHeld to Maturity (HTM)Held For Trading
(HFT)Available For Sale (AFS)
*
Banking Business:- (Sec.6 of BRA 1949):- Activities in addition
to Banking BusinessPrimary Functions:- Agency Functions:-
Collection of Cheques & BillsSale and purchase of securities. (
Bank-Agent, Customer Principal)b) Remittance of Funds:- Through
Demand Draft (DD), Mail Transfer (MT), Telegraphic Transfer (TT),
Real Time Gross Settlement (RTGS), National Electronic Fund
Transfer (NEFT)c) Trustees & Executorsd) Execution of Standing
orders / Instructions,e) Representative & Correspondent.*
2. General Utility Functions:- Locker Facility (Bank Lesser
Customer Lessee) Safe custody of Articles ( Bank Bailee , Customer
Bailor ) Issue of Travellers Cheques Foreign Exchange Business
Merchant Banking Business L/C Related Business3. Developmental
Functions:- Financial Inclusion Loans to weaker sections Assistance
to capital market.*
Present status of India26 Public Sector Banks 19 Nationalised
Banks (1969 / 1980), IDBI Bank Ltd; State bank of India & 5
Subsidiaries of SBI namely S.B. of Hyderabad, S.B. of Travancore,
S.B. of Bikaner & Jaipur, S.B. of Mysore & S.B. of
Patiala.( Two subsidiaries of S.B. I. namely S.B. of Saurashtra
& S.B. of Indore have been merged with State Bank of
India.)-15-Old Private Sector banks-7-New Private Sector Banks*
-31-Foreign banks-86-Regional Rural Banks-31-State Co-op
Banks-371- District Central Co-op Banks-1721- Urban Co-op Banks
-4-Local Area Banks
