Banking in India_01

Miscellaneous Facts  First India bank Got ISO : Canara Bank  First Governor of RBI : Mr. Osborne Smith  First Indian governor of RBI : Mr. C D Deshmukh  First Bank to Introduce ATM in India : HSBC  First Bank to introduce saving Bank in India : Presidency bank in 1833  First Bank to Introduce Cheque system in India : Bengal Bank 1784  First Bank to introduce Internet Banking : ICICI BANK  First Bank to introduce Mutual Fund : State Bank of India  First Bank to introduce Credit Card in India : Central Bank of India  First Foreign Bank in India : Comptoire d’Escompte de Paris of France in 1860  First Bank Set Up in India : Bank of Hindustan in 1770  First Joint Stock Bank of British India : State Bank of India  First Joint Stock Bank of India : Allahabad Bank  First Bank that is oldest Public Bank in India : Allahabad Bank  First national bank that is merged with Punjab National Bank : New Bank of India in 1993  First Indian bank to open branch outside India in London in 1946 : Bank of India  First Indian Bank started with Indian capital /indigenous Bank of India : Punjab National Bank  First Regional Rural Bank name Prathama Grameen Bank Was started by : Syndicate Bank BANKS IN INDIA 1. Central Bank – Reserve Bank of India Commercial Bank 2. Public Sector Bank – (Nationalised Bank) Total 26 = 14 were nationalized in 1969 + 6 were Nationalized in 1980 (out of these one bank new Bank of India was merged with PNB in 1983), + 1 IDBI + SBI + 5 Subsidiary/Associates banks of State Bank of India. 3. Private Banks = RBI in 1993 gave licences to 12 Private bank in 2 phases 10 private bank in 1993 and 2 private bank in 2003-2004 4. Foreign Banks = 34 Foreign Banks are there in India. Cooperative Bank: Cooperative Banks = Bank those are registered under Co-operative Societies Act 1965, Co-operative Banks are also works as Commercial Bank, these are made by self Help Group, or by the Communities or by Groups. Specialised Bank Developmental/Specialised Banks: Like IFCI, IDBI, EXIM, NABARAD, SCICI Ltd. Personal Bank Accounts Saving Bank A/C= These accounts are maintained by individuals/salaried people. Such accounts offer interest on customer deposit. The internet on these accounts is de-regulated by RBI. No overdraft is allowed in such accounts. Habit of saving is developed, minimum Balance condition depends on Bank To Bank, Limit on transaction can be fixed. Fixed deposits Accounts= It is also known as term deposit, Fixed rate of interest or floating rate of Intt is offered on it. Rates are depends on money and maturities periods. Recurring Deposits Account = In this account money is fixed every months and rate of interest in the same as on fixed deposits accounts. Business Bank Accounts : Current Accounts = These accounts are used mainly by businessmen and are not generally used for the purpose of investment. These deposits are the most liquid deposits and there are no limits for number of transactions or the amount of the transactions in a day. No interest is paid by banks on these accounts. One of the prominent advantage of such account is that overdraft is allowed. Cash Credit Accounts = In this account money is lent against the commodities or stock, a set limit or a credit facility is provided as per the value of commodities. Interest is taken as per the limit availed by the customers. Banking Terminology: IFSC Code : = Indian Financial System Code. The code consist of 11 characters for identifying the bank and branch where the account in actually held. The IFSC code is used both by the RTGS and NEFT transfer systems. RTGS: = Real Time Gross settlement system is funds transfer system where transfer of money or securities takes place from bank to another on a “real time”. (‘Real time’ means within a fraction of seconds.) The minimum amount to be transfer through RTGS is Rs 2 Lakh. Processing charges/service charges for RTGS transactions vary from bank to bank. NEFT: N