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Banking Theory and Practice Rupesh Roshan Singh, Lovely Professional University

Notes Unit 3: Indian Banking System

CONTENTS
Objectives
Introduction
3.1 History
3.2 Classification of Banks in India
3.2.1 State Bank Group (Eight Banks)

3.2.2 Nationalized Banks (19 Banks)
3.2.3 Regional Rural Banks (RRBs)
3.2.4 Private Banks
3.2.5 Cooperative Banks
3.3 Present Scenario of Banking System in India
3.4 Reserve Bank of India: Role and Functions
3.4.1 Role of RBI
3.4.2 Functions of RBI
3.5 Techniques of Credit Control
3.5.1 Quantitative or General Methods
3.5.2 Qualitative or Selective Methods
3.6 Summary
3.7 Keywords
3.8 Review Questions

3.9 Further Readings
Objectives

After studying this unit, you will be able to:
Discuss the history of Indian banking system
Classify Banks of India

Elaborate on the present scenario of banking system in India
Discuss the role and functions of RBI
Explain the techniques of credit control

Introduction

In the previous unit, you have studied the role of banks in the development of an economy. To
continue on, you will study Indian Banking System in this Unit. Without a healthy and efficient
system of banking, India can not have a healthy economy. The Indian Banking System should
not only be tussle free but it should be capable to cope with new threats posed by the technology
and any other intrinsic and extrinsic factors. For the last three decades banking system of India
has several striking accomplishments to its credit. The most outstanding is its broad reach. The

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