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and everyone among could Saudi from hit bullseye dot-com and in this video lecture I will be talking to you about the banking sector in India first of all let us see the story of evolution of banking sector in India in 1960 the State Bank of India was given the control of eight state associated banks under the State Bank of India act of 1959 so pious like State Bank of Hyderabad State Bank of Travancore etcetera came under the direct control of State Bank of India in 1960 later on another major event was the nationalization of banks of 1969 so 1969 14 banks which were earlier privately owned were bought by the Government of India this is because that these bands were earlier owned by large businessman and now the government to control of them to further their social welfare agenda later on in 1986 more private banks were nationalized or what by the Government of India in the later phases we have seen greater amount of liberalisation and privatization of banks in India in 1993 then new bike lies bike licences were given and new banks came into being like ICICI HDFC IDBI etc data on to in 2001 Kotick back and yes Bank were given universal banking licenses to perform all the functions that are performed by banks and more recently after a gap of 13 years two more companies got banking licenses that is idfc add abundant finance further we've also seen the coming in of foreign sector banks in the country now recently we have increased the FDI limits or foreign direct investment limits up to seventeen seventy four percent in the barking history industry with some amount of restrictions from the Government of India and the Reserve Bank of India as well another new development that is in the past couple of years only we have seen the oncoming of differentiated banking licenses in the form of small banks and payment banks now it was seen that the conditions that were applied for banks for licenses of universal banks they were very harsh so not enough large number of companies were able to set up shop in the back end banking industry in the country hence the need was felt that a different type of bank should be introduced with lesser qualifications and as such small banks and payment banks came into being now let us understand what these banks are all about first let us talk about smaller banks so small banks can accept current account and saving account casa FD that is fixed deposits and recurring deposit accounts right they can give out depositors money as nodes to other customers but the important thing is that have they have a very small area of operation right so every small Bank will be operating in a limited area but within that area they can perform all the functions of a huge bank like SBI hdf CI CI its ICICI etcetera the small banks will be targeting customers which are MSME micro small medium enterprise businessmen unorganized workers small and marginal farmers and their focus will remain on getting more and more deposits as well as disbursing greater loans the basic idea being that it functions as a universal bank or a normal bank but within a limited area next we talk about payment paths so they can only do accept current accountants saving account deposits and not empties and RDS payment banks cannot give loads but they can invest depositors money in government approved securities only right their target customers are poor migrants unorganized workers wanted to send remittances so as far as payment banks are concerned they'll be utilizing the mobile banking platforms internet banking etc to ensure that people who are living outside of their homes are able to send back money to their places using this using the electronic or mobile platform so their focus will remain on payment remittances only including cross-border remittances right so payment banks can operate throughout the country but have a limited operations and their focus remains only on remittances or sending of money from one place to the other so now if we look at certain important laws which govern the banking industry in the country now you do not have to go into greater details of these laws and you have to only cover the broad or major areas that these laws are talking about first one is banking regulations Act of 1949 so as the name suggests it regulates all banking companies or firms in the country it is applicable to cooperative banks as well but only since 1965 it gives RBA the power to give licenses licenses to banks have regulations over the shareholdings and voting rights of shareholders of these funds this is a very important act as it gives RBI the power to give more licenses to the new banks next is the RBI Act of 1934 so RBI again this is a very important term act as RBI was established under this particular act it contains the definition of scheduled banks in shed rule 2 of this act the section 18 deals with emergency loans to banks and the other important sections are section 21 22 and 24 section 24 is very important for objective type of questions it states the maximum denomination or note in India can have this rupees then house next one is negotiable instruments Act of 1881 so defines the important negotiable instruments like promissory notes Bills of exchange and buy checks and also gives various types of checks so different kind of checks can be local checks outstation checks or add par checks further we have bearer cheques cross checks open checks etc so these are certain checks that you have to know the meanings of and understand the meanings of for your papers point of view so in the subsequent slide we talk about the structure of the banking sector in the country and so these are the different types of banks that we have in India first let us talk about the central bank the central bank of india is of course there is a Bank of India it was established on April the 1st 1935 under RBI Act 1934 so these facts are again important for any competitive examination with objective type questions so these are the various main functions that the Reserve Bank is performing first of all it is the monetary authority of the country that means it controls the money supply in the country through its monetary policy as far as monetary policy is concerned I have covered this in a previous lecture secondly it is the regulator and supervisor of the financial system of the country so it makes rules Prudential norms etc for the entire financial sector as well as the banking sector of India RBI as a manager manager of foreign currency is the custodian of Forex reserve or foreign exchange reserve of the country so India maintains a Forex reserve which contains foreign currency life dollars yen euro pounds etcetera further gold SDR etc are also included in this particular four accessor so RBI is the custodian of India's Forex reserve further as a manager of foreign exchange Alvia is also empowered to manage foreign exchange under this law that is foreign exchange Management Act 1999 so this act gives certain limits of the amount of foreign exchange or dollars that you can take out of India so RBI is also the sole authority as far as this act is concerned next is RBI is the issuer of currency so RBI prints all the currency notes of the country the coins of course are minted by not different a Reserve Bank of India but the Ministry of Finance also another important thing is that the newly or recently introduced rupee one note is printed by Ministry of Finance and not RBI so coins and the rupee one note is printed by the Ministry of Finance the rest or currency notes are printed by the Reserve Bank of India furthermore RBI also performs certain developmental rules and it introduces various schemes like local area schemes of my local area scheme of 1999 etc next RBI is the lender of last resort for other banks so when other banks need money and they have exhausted all of the sources of getting credit the RBI is the place that they go to for asking more money lastly RBI also acts as the banker to the government so RBI maintains the Consolidated Fund of India right so this is the biggest fund where in all income tax or central taxes are deposited or other earnings of the of the Government of India is deposited this particular account is taken care of by the gum by the Reserve Bank of India similarly to the consolidated front of India we have the consolidate Consolidated Fund of various states so this consolidated fund is also taken care of by the Reserve Bank of India next we take a look at commercial banks so these are profit-seeking institutions which accept deposits from general public and advance money to individuals in the form of loan credit etc their main source of income is the differential between the grades that they charge to borrowers and the pay to Depaz or in other words the interest spread so as we all know their operations are regulated by the Reserve Bank of India so there are different types of commercial banks in India first is the scheduled backs and the non scheduled backs scheduled banks are those nuns Woods who are registered with the Reserve Bank of India and their names appear in the second schedule of the RBI Act of 1934 right conversely non scheduled banks are not registered with RBI as such however there are as of now there are no non scheduled banks in the country next within scheduled banks we have different categories of banks like foreign owned backs private sector banks and public sector banks next what we have is our breeze that is Regional Rural Banks these are owned by the government and mainly operate in anti local levels or for the development of rural areas in the country so next category of banks is cooperative banks these are different from commercial banks that we discussed earlier so these are banks which are registered under cooperative societies law of the state government in which it is found so every state has a different law with respect to cooperative societies so this type of man that is co-operative bank is registered with the state government as a cooperative society it serves the need of the rural sector in general and agricultural sector in particular so main focus of cooperative banks is the rural sector including the agricultural sector and it provides short term and mediator credit to agriculture another important aspect of cooperative banks a charges lower interest rates as compared to commercial banks so cooperative banks have a developmental rule greater development control as compared to commercial banks so it has three basic categories state cooperative banks cooperative banks as well as at the very local level primary agricultural credit societies next category of banks within the country is that of Development Bank's now these are banks which are not there for a commercial purpose or they are not in the market for earning a profit but to develop certain specific sectors of the economy so first broad category is industrial development permits so as far as lots of large scale industries is concerned they are banks like IIT BIA IFC I for small-scale industries we have the SIDBI so as far as development of export and import business is concerned in the country we have the export-import bank or the Exim Bank later further moving on to agriculture Development Bank's we have at the All India level Nevada at the state level we have various state level Development Bank's and local level and branches etc of PLD bees and sld bees and the country where as far as these banks are concerned for the purpose of your paper it is very important that you learn a few facts about these important paths so first you will learn the year of their establishment their headquarters and their main functions performed by banks like Navarre say to be etc so during the course of this video presentation firstly we saw the major events of the back evolution of banking sector in the country secondly we saw the important laws or legislations related to or regulating the banking industry in India and lastly we saw the broad structure in which the banking industry in the country is divided taking a look at the different types of banks in the country thank you very much