The commercial banking structure in India consists of:
Scheduled Commercial Banks
Scheduled commercial Banks constitute those banks which have
been included in the Second Schedule of Reserve Bank of India(RBI) Act, 1934.
RBI in turn
includes only those banks in this schedule which satisfy the criteria laid down vide
section 42 (60 of the Act. Some co-operative banks are scheduled commercial banks albeit
not all co-operative banks are. Being a part of the second schedule confers some benefits
to the bank in terms of access to accomodation by RBI during the times of liquidity
constraints. At the same time, however, this status also subjects the bank certain
conditions and obligation towards the reserve regulations of RBI.
For the purpose of assessment of performance of banks, the Reserve Bank of India categorise them as public sector banks, old private sector banks, new private sector banks and foreign banks.
This sub sector can
broadly be classified into:
1. Public sector
2. Private sector
3. Foreign banks
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Public sector banks have either the Government of India or
Reserve Bank of India as the majority shareholder. This segment comprises of:
State Bank of India (SBI)and its
Other Nationalized Banks