Banking Updates

Ask a Question

Post a Lesson

All

All

Lessons

Discussion

Lesson Posted on 11 Oct Tuition/BCom Tuition/Financial Accounting Exam Coaching/CA Coaching/CPT Banking

Why Accounting is called as

Venkat Dosapati

I am currently pursuing Chartered Accountancy final and interested in teaching CA subjects related. I...

In this article, I am going to explain the accounting in layman terms. Hope you find it useful. Just Observe the following activities. Mr.X Gets salary up on working as software employee of Google. Once salary has been credited he spends it for the purchase of goods and services, Children's education,... read more

In this article, I am going to explain the accounting in layman terms. Hope you find it useful.

Just Observe the following activities.

  1. Mr.X Gets salary up on working as software employee of Google. Once salary has been credited he spends it for the purchase of goods and services, Children's education, Purchase of house etc. Don't you think Mr.X is performing the economic activity? The Answer is yes. He is playing the commercial operation by paying the consideration in the form of Money for acquiring them. Here the benefit is purely Individual.
  2. Have you heard of Hyderabad Metro Rail which recently began it services and well received by the people of Hyderabad. Whether the services rendered by the Hyderabad Metro Rail Limited to the passengers who travelled through it is an Economic Actvitity or not? The answer is Yes. Here in this economic benefit - Who benefitted? It is Public at large - It is a Social Benefit.
  3. So we can draw a concussion from the above two set of activities - Not all the economic activities are run for the individual economic benefit, such economic activity may create a social advantage too. 

So, How these Economic Activities are performed?

Economic Activities are performed through Transaction and Events. Let us understand what a Transaction and Event is.

The transaction is used to mean a Business / Performance of act / An agreement etc., While Event is used to denote a happening, as a consequence of operations, a result.

Let us understand the above two terms with an example.

Imagine Mr X has a business idea of starting a retail shop at the busy location of Hyderabad. He invests 10,00,000 for running a stationery business, and purchases goods worth 8,00,000 and sells for 9,50,000. He pays shop rent of 1,00,000 and finds that he has left goods worth of 1,00,000.

Mr X, In the above case, carries on Economic Activity. It is through some transactions and events. In the end, he eagers to know running a stationery business is profitable or not.

Sales : 9,50,000

Closing Stock : 1,00,000

Total : 10, 50 ,000

Purchases : 8,00,000

Shop Rent : 1,00,000

Total Expenses : 9,00,000

Surplus : 10,50,000-9,00,000 = 1,50,000

Now will see what the events and transactions in the above economic activity are?

1. Having a surplus of 1,50,000 & Closing stock of worth: 1,00,000 are events since they arise as a result of economic activity

2. Purchase of goods, Sale of assets, Investment of amount in the business, Paying shop rent are like Transactions.

Likewise, Every individual wants to keep a record of all transactions and events and to have adequate information to aid in decision making purpose [ Whether it is worth to run a business or not ].

Accounting has been developed to serve the above purpose as it deals with the measurement of economic activities involving inflow and outflow of financial resources, which helps to create useful information for decision making.

Accounting has a universal application for recording events and transactions of family functions to the functions of a national government. For now, concentrate on business activities conducted by companies/firms/ organisations etc.

The growth of the accounting discipline is closely related to the growth of the business world. Imagine for a while when the business of selling goods and rendering of services has stopped for a day around the globe Whether human being can be able to survive the day? The answer is No. So the business activities had hold importance in today's business world and interlinked with the people's well being and survival.

Accounting as a field of study is best identified with recording and summarising economic activities in the form of transactions and events in the books of accounts/records and communication of financial information about business enterprises to the interested users to facilitate decision making.

Accounting aims to fulfil the needs of the rational and sound decision makers. So It acts as a medium for communication of financial information to users. Thus accounting is called a language of the business.

read less
Comments
Dislike Bookmark

Lesson Posted on 10 May Banking Exam Coaching/Bank Clerical Exam Coaching

Divisibility Rules

Priya

I am a postgraduate in biotechnology and I have 3 years of teaching experience in school (2nd std to...

A divisibility rule is a simple way to determine whether a given integer is completely divisible by a certain divisor by examining its digits. By following certain rules, you can quickly determine the divisor of the given integer. 1) Divisibility test for 2: The last digit should be even. Example: 64,... read more

A divisibility rule is a simple way to determine whether a given integer is completely divisible by a certain divisor by examining its digits.

By following certain rules, you can quickly determine the divisor of the given integer.

1) Divisibility test for 2:

The last digit should be even.

Example:

64, 586, 988, 7234

As you can see, unit digit of above examples are even numbered and they all are divisible by 2.

2) Divisibility Test for 3:

Add all digits and see if the given integer is divisible by 3.

Example:

1) 349 = 3+4+9=16

16 is not divisible by 3. Hence 349 is not divisible by 3.

2) 5433 = 5+4+3+3 =15

15 is divisible by 3. Hence 5433 is divisible by 3.

3) Divisibility Test for 4:

See if last two digits are divisible by 4.

Example:

1) 89032

As you can see the last 2 digits are divisible by 4. Hence 89032 is divisible by 4.

2) 1001

In this example, last two digits are not divisible by 4. Hence 1001 is not divisible by 4.

4) Divisibility Test for 5:

To determine whether the given integer is divisible by 5 or not, just check the last digit. The last digit should be either 5 or 0.

Example:

9990, 725, 2300, 6265

5) Divisibility Test for 6:

Here,  you have to check test for both 2 and 3. That is the integer should be divisible by both 2 and 3.

Example:

3918

The above integer is divisible by both 2 and 3. Hence it is divisible by 6 also.

6) Divisibility Test for 8:

Here,  last three digits should be divisible by 8.

Example:

1) 94864

In the above example, last three digits are divisible by 8. Hence the given integer is divisible by 8.

2) 35948

In the above example, last three digits are not divisible by 8. Hence the given integer is not divisible by 8.

7) Divisibility Test for 9:

If the sum of the digits is the multiple of 9, then the integer is divisible by 9.

Example:

1) 6678

6+6+7+8 = 27

27 is the multiple of 9. Hence 6678 is divisible by 9.

2) 983

9+8+3 = 20

20 is not divisible by 9. Hence 983 is not divisible by 9.

 Thanks for reading!

read less
Comments
Dislike Bookmark

Lesson Posted on 08 May Exam Coaching/Bank Clerical Exam Coaching Banking

Multiplication Tricks

Priya

I am a postgraduate in biotechnology and I have 3 years of teaching experience in school (2nd std to...

1) Multiplication with 11 23 X 11= 253 2___3 253 (2+3=5) 623 X 11= 6853 6_____3 6____53 (2+3= 5) 6853 (6+2= 8) You can see multiplication can be done quickly by starting with the first and last digit as they remain the same unless there is a carry. Then insert the sum of adjacent digits in sequence... read more

 1) Multiplication with 11

23 X 11= 253

2___3

253 (2+3=5)

623 X 11= 6853

6_____3

6____53 (2+3= 5)

6853 (6+2= 8)

You can see multiplication can be done quickly by starting with the first and last digit as they remain the same unless there is a carry. Then insert the sum of adjacent digits in sequence between first and last digit.

Remember to carry if necessary. For example

98 X 11= 1078

9____8

9__78 (9+8=17  carry 1)

1078 (9+ carry 1)

469 X 11= 5159

4_____9

4____59 (6+9=15  carry 1)

4___159 (6+4+carry 1=11  carry 1)

5159 (4+ carry 1=5)

 

2) Multiplication with 5

When you multiply any number with 5, First multiply that number by 10 then divide by 2.

For example:

49 X 5=

49 X 10=490

490/2 = 245

 

3) Multiplication with 25

When you multiply any number with 25, First multiply that number by 100, then divide by 4.

For example:

68 X 25=

68 X 100= 6800

6800/4= 1700

4) Multiplication with 125

When you multiply any number with 125, First multiply that number by 1000, then divide by 8.

For example:

72 X 125=

72 X 1000= 72000

72000/8= 9000

 

5) Multiplication with 15

When you multiply any number with 15, First divide that number by 2, then add the value in the number itself. Lastly,  multiply the value by 10.

For example:

140 X 15=

140/2 = 70

70+140= 210

210 X 10= 2100

Thanks for reading!

read less
Comments
Dislike Bookmark

Asked on 09/05/2017 Banking

How to utilize PGDBM certificate in banking sector?

Answer

Lesson Posted on 09/05/2017 Banking Financial Planning/Investment Banking Training Corporate Training

An Insight into Corporate Banking

Kapil Khandelwal

Hey guys am a young Chartered Accountant by profession and personally a traveler / trekker and a fun...

When it comes to Banking, yes off course one of the India's growing industry consists of 26 public sector banks, 25 private sector banks, 43 foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural cooperative banks, As per the Reserve Bank of India (RBI), India’s... read more

When it comes to Banking, yes off course one of the India's growing industry consists of 26 public sector banks, 25 private sector banks, 43 foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural cooperative banks, As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalized and well regulated.

The financial and economic conditions in the country are far superior to any other country in the world, apart from the biggest merger of SBI with its concerns the central bank granted inprinciple approval to 11 payments banks and 10 small finance banks in FY 201516 so there is allot to come in to this industry. Standard & Poor’s estimates that credit growth in India’s banking sector would improve to 1113 per cent in FY17 from less than 10 per cent in the second half of CY16.

Whenever we talk about Banks, what strikes us is accepting deposits, lending money etc, but it is much more then what we think, a bank offers a number of services which are broadly categorized in to two segments: Corporate Banking & Retail Banking

Where the Retail Banking is one of which we are aware enough, it refers to the division of a bank that deals directly with retail customers. Also known as consumer banking or personal banking, retail banking is the visible face of banking to the general public, with bank branches located in abundance in most major cities. Services offered include savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards.

The level of personalized retail banking services offered to a client depends on his or her income level and the extent of the individual’s dealings with the bank. While a client of modest means would generally be served by a teller or customer service representative, a high net worth individual who has an extensive relationship with the bank would typically have his or her banking requirements handled by an account manager or private banker.

Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers this segment of banks typically serves a diverse range of clients, ranging from small to midsized local businesses with a few millions in revenues to large corporate with billions in sales and offices across the country. Sometimes people get it similar to the investment banking, since corporate banking and investment banking services have been offered for many years under the same umbrella by most banks in the U.S. and elsewhere and in a general sense, corporate banking and investment banking aren't all that different.

Investment Banks raise capital for other companies through securities operations in the debt and equity markets. Investment bankers also help coordinate and execute mergers and acquisitions (M&A’s), offer advisory services to big clients and perform complex financial analysis.

Corporate finance is a catchall title for any business division that handles financial activities for a firm. This can make it a little tricky to differentiate it from investment banking because, depending on the context, investment banking might count as a type of corporate finance. An investment banking firm might have a corporate finance division.

However, there is a generally accepted distinction between corporate banking and investment banking: A corporate banker deals with day to day financial operations and handles shortand longterm business goals, while an investment banker focuses on raising capital, running private placements and conducting M&A deals. Put more simply, investment banking grows a company, and corporate banking manages a company.

 

Loans and other credit products Thisis typically the biggest area of business within corporate banking, and as noted earlier, one of the biggest sources of profit and risk for a bank, here the banker provides tailor made finances to the corporate, ranging from Term loans for Machineries and equipments to Cash credit limits/ Overdraft Limits for working capital requirements, the export houses can also avail Packing credit limits to finance each of their shipments at a interest rate which is as low as 7-8%p.a.

Treasury and cash management services – used by companies for managing their day to day activities (Working Capital) and currency conversion requirements.

Equipment lending – commercial banks structure customized loans and leases for a range of equipment used by companies in diverse sectors such as manufacturing, transportation and information technology.

Commercial real estates – services offered by banks in this area include real asset analysis, portfolio evaluation, debt and equity structuring.

Trade finance – involves letters of credit, bill collection, and factoring.

Employer services – services such as payroll and group retirement plans are typically offered by specialized affiliates of a bank.

read less
Comments
Dislike Bookmark

Lesson Posted on 04/05/2017 Banking Tuition/BCom Tuition Tuition/BCom Tuition/Banking Law and Operation +2 Tuition/LLB Tuition Tuition/BBI Tuition less

Banking Ombudsman Scheme 2006

M. Mallick

I have cleared WB SET, 2017 (West Bengal State Eligibility Test) conducted by West Bengal College Service...

Banking Ombudsmen Scheme Banking Ombudsman is a quasi judicial authority functioning under India’s Banking Ombudsman Scheme 2006, and the authority was created pursuant to a decision made by the Government of India to enable resolution of complaints of customers of banks relating to certain services... read more

Banking Ombudsmen Scheme

Banking Ombudsman is a quasi judicial authority functioning under India’s Banking Ombudsman Scheme 2006, and the authority was created pursuant to a decision made by the Government of India to enable resolution of complaints of customers of banks relating to certain services rendered by the banks. The Banking Ombudsman Scheme was first introduced in India in 1995, and was revised in 2002. The current scheme became operative from 1 January 2006, and replaced and superseded the banking Ombudsman Scheme 2002.

Introduction                                                          

An ombudsman is a person who has been appointed to look into complaints about an organization2. Using an ombudsman is a way of trying to resolve a complaint without going to court. Banking Ombudsman is a quasi judicial authority functioning under India's Banking Ombudsman Scheme, and the authority was created pursuant to the a decision by the Government of India to enable resolution of complaints of customers of banks relating to certain services rendered by the banks.

Few Basic Questions-                                                                                          

  1. What is the Banking Ombudsman Scheme?

The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.

  1. Who is a Banking Ombudsman?

The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services.

  1. How many Banking Ombudsmen have been appointed and where are they located?

As on date, fifteen Banking Ombudsmen have been appointed with their offices located mostly in state capitals.

  1. Which are the banks covered under the Banking Ombudsman Scheme, 2006?

All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme.

  1. What are the grounds of complaints?

The Banking Ombudsman can receive and consider any complaint relating to the following deficiency in banking services (including internet banking):

  • non-payment or  inordinate delay in the payment or collection of cheques, drafts, bills etc.;
  • non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission in respect thereof;
  • non-acceptance, without sufficient cause, of coins tendered and for charging of commission in respect thereof;
  • non-payment or delay in payment of inward remittances ;
  • failure to issue or delay in issue of drafts, pay orders or bankers’ cheques;
  • non-adherence to prescribed working hours ;
  • failure to provide or delay in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents;
  • delays, non-credit of proceeds to parties accounts, non-payment of deposit or non-observance of the Reserve Bank directives, if any, applicable to rate of interest on deposits in any savings,current or other account maintained with a bank ;
  • complaints from Non-Resident Indians having accounts in India in relation to their remittances from abroad, deposits and other bank-related matters;
  • refusal to open deposit accounts without any valid reason for refusal;
  • levying of charges without adequate prior notice to the customer;
  • non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on ATM/Debit card operations or credit card operations; 
  • non-disbursement or delay in disbursement of pension (to the extent the grievance can be attributed to the action on the part of the bank concerned, but not with regard to its employees);
  • refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government;
  • refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of Government securities;
  • forced closure of deposit accounts without due notice or without sufficient reason;
  • refusal to close or delay in closing the accounts;
  • non-adherence to the fair practices code as adopted by the bank or non-adherence to the provisions of the Code of Bank s Commitments to Customers issued by Banking Codes and Standards Board of India and as adopted by the bank ;
  • non-observance of Reserve Bank guidelines on engagement of recovery agents by banks; and
  • any other matter relating to the violation of the directives issued by the Reserve Bank in relation to banking or other services.

A customer can also lodge a complaint on the following grounds of deficiency in service with respect to loans and advances 

  • non-observance of Reserve Bank Directives on interest rates;
  • delays in sanction, disbursement or non-observance of prescribed time schedule for disposal of loan applications;
  • non-acceptance of application for loans without furnishing valid reasons to the applicant; and
  • non-adherence to the provisions of the fair practices code for lenders as adopted by the bank or Code of Bank’s Commitment to Customers, as the case may be;
  • non-observance of any other direction or instruction of the Reserve Bank  as may be specified by the Reserve Bank for this purpose  from time to time.
  • The Banking Ombudsman may also deal with such other matter as may be specified by the Reserve Bank from time to time.
  1. When can one file a complaint?

One can file a complaint before the Banking Ombudsman if the reply is not received from the bank within a period of one month after the bank concerned has received one s representation, or the bank rejects the complaint, or if the complainant is not satisfied with the reply given by the bank.

7. When will one s complaint not be considered by the Ombudsman ?

One’s complaint will not be considered if:

a. One has not approached his bank for redressal of his grievance first.

  1. One has not made the complaint within one year from the date one has received the reply of the bank or if no reply is received if it is more than one year and one month from the date of representation to the bank.
  2. The subject matter of the complaint is pending for disposal / has already been dealt with at any other forum like court of law, consumer court etc.
  3. Frivolous or vexatious.
  4. The institution complained against is not covered under the scheme.
  5. The subject matter of the complaint is not within the ambit of the Banking Ombudsman.
  6. If the complaint is for the same subject matter that was settled through the office of the Banking Ombudsman in any previous proceedings.
  7. What is the procedure for filing the complaint before the Banking Ombudsman?

    One can file a complaint with the Banking Ombudsman simply by writing on a plain paper. One can also file it online or by sending an email to the Banking Ombudsman attaching the form available in the RBI website
  8. Where can one lodge his/her complaint?

One may lodge his/ her complaint at the office of the Banking Ombudsman under whose jurisdiction, the bank branch complained against is situated. 
For complaints relating to credit cards and other types of services with centralized operations, complaints may be filed before the Banking Ombudsman within whose territorial jurisdiction the billing address of the customer is located.

10.Can a complaint be filed by one s authorized representative?

Yes. The complainant can be filed by one s authorized representative (other than an advocate). 

  1. Is there any cost involved in filing complaints with Banking Ombudsman?

No. The Banking Ombudsman does not charge any fee for filing and resolving customers’ complaints.

  1. Is there any limit on the amount of compensation as specified in an award?

The amount, if any, to be paid by the bank to the complainant by way of compensation for any loss suffered by the complainant is limited to the amount arising directly out of the act or omission of the bank or Rs 10 lakhs, whichever is lower.

  1. Can compensation be claimed for mental agony and harassment?

The Banking Ombudsman may award compensation not exceeding Rs 1 lakh to the complainant only in the case of complaints relating to credit card operations for mental agony and harassment. The Banking Ombudsman will take into account the loss of the complainant s time, expenses incurred by the complainant, harassment and mental anguish suffered by the complainant while passing such award.

  1. What details are required in the application?

The complaint should have the name and address of the complainant, the name and address of the branch or office of the bank against which the complaint is made, facts giving rise to the complaint supported by documents, if any, the nature and extent of the loss caused to the complainant, the relief sought from the Banking Ombudsman and a declaration about the compliance of conditions which are required to be complied with by the complainant.

  1. What happens after a complaint is received by the Banking Ombudsman?

The Banking Ombudsman endeavours to promote, through conciliation or mediation, a settlement of the complaint by agreement between the complaint and the bank named in the complaint. 
If the terms of settlement (offered by the bank) are acceptable to one in full and final settlement of one s complaint, the Banking Ombudsman will pass an order as per the terms of settlement which becomes binding on the bank and the complainant.

  1. Can the Banking Ombudsman reject a complaint at any stage?

Yes. The Banking Ombudsman may reject a complaint at any stage if it appears to him that a complaint made to him is:

  • not on the grounds of complaint referred to above 
  • compensation sought from the Banking Ombudsman is beyond  Rs 10 lakh .
  • requires consideration of elaborate documentary and verbal evidence and the proceedings before the Banking Ombudsman are not appropriate for adjudication of such complaint
  • without any sufficient cause
  • that it is not pursued by the complainant with reasonable diligence
  • in the opinion of the Banking Ombudsman there is no loss or damage or inconvenience caused to the complainant.
  1. What happens if the complaint is not settled by agreement?

If a complaint is not settled by an agreement within a period of one month, the Banking Ombudsman proceeds further to pass an award. Before passing an award, the Banking Ombudsman provides reasonable opportunity to the complainant and the bank, to present their case. 
It is up to the complainant to accept the award in full and final settlement of your complaint or to reject it.

 

  1. Is there any further recourse available if one rejects the Banking Ombudsman’s decision?

If one is not satisfied with the decision passed by the Banking Ombudsman, one can approach the appellate authority against the Banking Ombudsmen’s decision. Appellate Authority is vested with a Deputy Governor of the RBI.
One can also explore any other recourse and/or remedies available to him/her as per the law. 
The bank also has the option to file an appeal before the appellate authority under the scheme.

  1. Is there any time limit for filing an appeal?

If one is aggrieved by the decision, one may, within 30 days of the date of receipt of the award, appeal against the award before the appellate authority. The appellate authority may, if he/ she is satisfied that the applicant had sufficient cause for not making an application for appeal within time, also allow a further period not exceeding 30 days.

  1. How does the appellate authority deal with the appeal?

The appellate authority may 

i. dismiss the appeal; or 

ii. allow the appeal and set aside the award; or 

iii. send the matter to the Banking Ombudsman for fresh   disposal in accordance with such directions as the appellate authority may consider necessary or proper; or 

iv. modify the award and pass such directions as may be necessary to give effect to the modified award; or 

v. pass any other order as it may deem fit.

Cases Concerning the Banking Services:

Following are the cases, through which it can be ascertained that what the grievances have been handled by the Banking Ombudsman Scheme:

  1. 1. Failure to issue bank guarantee.The bank was alleged to have failed to issue bank guarantee despite sufficient security and the complainant suffered financial loss. It was held that the non-issuance of bank guarantee despite security deposit with the bank would amount to deficiency in service and the complainant was held entitled to interest on that security amount.
  2. Failure to confirm remittance.In one of the cases, the complainant's son remitted an amount from abroad to be credited to his NRI account with appellant bank. The remittance was not confirmed till a long time. Appellant bank pleaded that non-confirmation was due to failure of computers. The issue is whether this delay on the part of the bank amounted to deficiency in service. The Commission in appeal observed that bank officials could have verified vouchers and cheques received by post or confirmation and could have given correct reply within a reasonable time. It was held that failure of the bank to confirm remittance received from outside country within a reasonable period amounts to deficiency in service
  3. Deficiency in services.In most of the cases against the banks, the costumers have alleged the deficiency in services provided by the banks.
  4. read less
Comments 1
Dislike Bookmark

Asked on 24/04/2017 Banking

Am completed B.com I want to join in banking sector I need some couching do you help me?

Answer

Lesson Posted on 18/04/2017 Tuition/LLB Tuition Banking Exam Coaching/Law Entrance Exam Coaching

History Of Banking Institution In India

M. Mallick

I have cleared WB SET, 2017 (West Bengal State Eligibility Test) conducted by West Bengal College Service...

DEVELOPMENT OF BANKING BUSINESS IN INDIA Banking was in existence during Vedic period. Money lending is regarded as an old art and was practiced in the early Aryan day The term rina(debt) is often found in rig veda Manusmriti has laid down various terms like rnapatra, rnalekhya, kusidin(soodhkhor)... read more

DEVELOPMENT OF BANKING BUSINESS IN INDIA

  • Banking was in existence during Vedic period. Money lending is regarded as an old art and was practiced in the early Aryan day
  • The term rina(debt) is often found in rig veda
  • Manusmriti has laid down various terms like rnapatra, rnalekhya, kusidin(soodhkhor) etc which clearly indicates the prevalence of banking even during the ancient vedic civilization
  • Evidence of banking is also found in epics like Ramayana and mahabharata.
  • Kautilya’s Arthashatra also embodies how banking flourished during mauryan age.
  • There were instruments in the mauryan era called “adesha” which were equivalent to Bill of Exchange of current times.
  • Since ancients times businessmen (vaishyas) like shroffs, seths, mahajans, chettis, sahukars etc carried on banking business. They were small money lenders who charges interest on the amount loaned to people.
  • The Vaishya community performed the main functions of banking viz granting loans, accepting deposits etc. They even granted loans to kings and managed the currency of the kingdom.
  • The use of Bills of exchange were also in practice.
  • Later during muslim and mughal period we find decline in banking system as islam does not allow taking of interest. It is considere to be a sin. However economy boomed to some extent as there was the more use of metallic money which led to appointment of more revenue collectors, bankers, money changers, mint officers etc.
  • With the coming of the East India Company the situation started changing again. The occidental(western) idea of banking stepped into the nation.
  • In 1770 Hindusthan Bank was established followed by Bengal Bank in 1785 and General Bank of India in 1786.
  • The 1st presidency bank was founded in Calcutta ( Bank of Calcutta) in 1806
  • The bank of bombay and bank of madrass followed the chain
  • These 3 banks amalgamated to form imperial bank of india in 1921.
  • Due to Swadeshi Movement various national entities like peoples bank of india, the bank of india, bank of baroda, central bank of india etc started functioning
  • 1913-1924 saw downfall of banking due to trade depression caused by various movements
  • Finally with the establishment of RBI the need of a central bank was met (April 1 ,1935). It took over the functions of Imperial Bank regarding GOVERNMENT’S transactions .
  • The banking Regulation Act 1949 was passed to control all the activities of the commercial banks. RBI,s powers were widened.
  • 1955 SBI was established which totally replaced the imperial bank. It is the largest commercial bank in the country
  • In order to meet the slow economic growth of the country 14 major banks in1969 got nationalized
  • Later 6 more banks got nationalized in 1980.
  • The Nariman Committee in 1969 recommended a scheme to unite the commercials banks co operative banks and govt and semi govt agencies to work together for socio economic growth of the country. The lead bank scheme was also introduces
  • NABARD was set up in 1982 (National Bank for Agricultural and Rural Cevelopment)
  • With the use of technology banking at present has become much more user or customer friendly. Banking ombudsmen was established to take care of the grievances of the customers against the services provided to them by the bank.
read less
Comments 2
Dislike Bookmark

Asked on 29/03/2017 Banking

Who is the first governor of Reserve Bank Of India?

Answer

Answered on 22/02/2017 Financial Planning/Investment Banking Training Banking

Currently am working in retail banking sector but I want to change my profile in to investment banking... read more
Currently am working in retail banking sector but I want to change my profile in to investment banking sector. Should I do any course for this and what are the best courses for investment banking. read less

Talent Hub Training Institute

You need a training on BFSI sector, which cover the full investment banking and non banking segment.
Answers 2 Comments
Dislike Bookmark

About UrbanPro

UrbanPro.com helps you to connect with the best in India. Post Your Requirement today and get connected.

Overview

Questions 17

Total Shares  

+ Follow 32 Followers

Top Contributors

Connect with Expert Tutors & Institutes for Banking

x

Ask a Question

Please enter your Question

Please select a Tag

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 25 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 6.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more