•Schedule commercial bank

Presented by ,

Shrikanth.T.MulimaniJr.Msc agri in agmaco

contents

• Introduction • Functions• Agency functions• General Utility Functions• Difference between scheduled commercial

bank and commercial bank• Reference

INTRODUCTION

Banks in India can be categorized into two parts: a) Scheduled Commercial banks and b) Unscheduled Commercial Banks.

Those banks which fulfil the conditions laid down by the Second Schedule of Reserve Bank of India Act 1934, vide section 42 (6), are called Scheduled Commercial Banks and other banks are known as Unscheduled Commercial Banks.

(a non scheduled bank is a bank which does not come under RBI act 1949 )

• The banks included in this schedule list should fulfil two conditions. 1. The paid capital and collected funds of bank should not be less than Rs. 5 lack. 2.Any activity of the bank will not adversely affect the interests of depositors.

Every Scheduled bank enjoys the following facilities. 1. Such bank becomes eligible for debts/loans on bank rate from the RBI 2. Such bank automatically acquire the membership of clearing house.

Scheduled Banks of India can be further categorized into

– Public Sector Banks – Private Sector Banks – Foreign Banks– Regional rural bank

• Public Sector Banks are widely known as Nationalized banks of 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

Public Sector Banks :- are those banks in which majority of stake is held by the government. Eg-

• 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 ( United Commercial Bank)• Union Bank of India• United Bank of India• Vijaya Bank• The Karad Urban Bank

• Abhyudaya Bank • Axis Bank Ltd• Bank of Punjab Ltd• Bank of Rajasthan• Catholic Syrian Bank• Centurion Bank Ltd• City Union Bank• Development Credit Bank• Dhanlaxmi Bank• Federal Bank Ltd• HDFC Bank Ltd• ICICI Banking Corporation Bank Ltd

Private Sector Banks :- are those banks in which majority of stake is held by private Individuals. Eg

• IndusInd Bank• ING Vysya Bank• Jammu & Kashmir Bank• Nainital Bank• 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

• American Express Bank Ltd.• ANZ Bank• 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• Standard Chartered Bank

Foreign Banks :- are the banks with Head office outside the country in which they are located. Eg

Regional Rural Banks - are the banking organizations being operated in different states of India. They have been created to serve the rural areas with banking and financial services. Eg

• Karnataka Vikas Grameena Bank• Narmada Malwa Grameena Bank• Pragathi Grameena Bank• Cauvery Kalpatharu Grameena Bank• Saptagiri Grameena Bank• Shri Venkateswara Grameena Bank• Kisan Grameena Bank• Chaitanya Grameena Bank ..etc

Functions

1. Accepting Deposits : accepts various types of deposits from public especially from its clients. It includes saving account deposits, recurring account deposits, fixed deposits, etc.

2. Making Advances : The commercial banks provide loans and advances of various forms. It includes an over draft facility, cash credit, bill discounting, etc. They also give term loans to all types of clients against proper security.

• 3.Credit creation : While sanctioning a loan to a customer, a bank does not provide cash to the borrower Instead it opens a deposit account from where the borrower can withdraw. In other words while sanctioning a loan a bank automatically creates deposits. This is known as a credit creation.

Agency Functions : Various agency functions of Scheduled commercial banks are

1.To collect and clear cheque, dividends and interest warrant.

2. To make payment of rent, insurance premium, etc. 3 .To deal in foreign exchange transactions. 4 .To purchase and sell securities. 5.To accept tax proceeds and tax returns.

General Utility Functions : The general utility functions of the scheduled commercial banks include

1. To provide safety locker facility to customers. 2. To provide money transfer facility. 3. To issue traveler's cheque. 4. To act as referees. 5. To accept various bills for payment e.g. phone

bills, gas bills, water bills, etc. 6. To provide merchant banking facility. 7. To provide various cards such as credit cards, debit

cards, Smart cards, etc.

Difference between scheduled commercial bank and commercial bank

• While commercial banks exist around the world, scheduled banks constitute a unique feature of the Indian banking system.

• Within this banking structure, commercial banks take on a specific definition in relation to the other types of banks in the Indian system, which include schedule banks, non-scheduled banks and cooperative banks.

DEPOSITS AND CREDIT OF SCHEDULED COMMERCIAL BANKSACCORDING TO BANK GROUP MARCH 2012

(Amount in ` Million)

BANK GROUP No. of Offices

DEPOSITS CREDIT

No. of Accounts Amount No. of Accounts

Amount Outstanding

1 2 3 4 5

STATE BANK OF INDIA AND ITS ASSOCIATES

19,573 2279,46,429 13198690.5 251,19,174 10465884.4

  (19.4) (25.2) (21.7) (19.2) (21.8)

NATIONALISED BANKS 50,454 4505,85,350 32081999.3 417,94,113 25151710.2

  (50.1) (49.9) (52.8) (31.9) (52.4)

FOREIGN BANKS 324 39,23,495 2707653.9 94,11,128 2385736.4

  (0.3) (0.4) (4.5) (7.2) (5.0)

REGIONAL RURAL BANKS

16,629

1164,38,902

1815599.1 207,28,062 1163903.1

  (16.5) (12.9) (3.0) (15.8) (2.4)

PRIVATE SECTOR BANKS

13,825

1043,06,081

10978490.7 338,28,820 8865434.9

  (13.7) (11.5) (18.1) (25.8) (18.5)

ALL SCHEDULED COMMERCIAL BANKS

1,00,805 9032,00,257 60782433.4 1308,81,297 48032669.1

  (100.0) (100.0) (100.0) (100.0) (100.0)

Source www.rbi.org.in.

Reference

• http://www.rbi.org.in.• http://en.wikipedia.org• http://wiki.answers.com• http://www.ehow.com• http://www.scribd.com/doc