RIB has licensing powers & the authority to conduct inspections on other banks on the other banks. Reserve Bank of India RIB is the apex governing body in the Indian Banking Industry. It formulated guidelines from time to time to ensure a clean banking environment. It is responsible for overseeing the activities of other banks. It issues licenses to other banks to start new branches, install Tam’s etc. It also conducted regular checks to ensure that all guidelines are being adhered to. It is responsible for controlling the money supply in the economy.
Non-scheduled Banks These are banks, which are not included in the Second Schedule of the Reserve Bank of India Act 1934, as they do not satisfy the conditions laid down by that schedule. Scheduled Banks Scheduled Banks are those, which are included in the Second Scheduled of the Reserve Bank of India Act, 1934. To be included in the 2nd Schedule a bank: Must have a paid-up capital and reserves of an aggregate value of not less than RSI 50000 /- Satisfy the RIB that its affairs are not conducted in a manner detrimental to the interests of its depositors, shareholders and society.
All big banks are scheduled banks. They can be classified further as Commercial and Cooperatives Banks. Cooperatives Banks: A non commercial bank registered under the State Cooperatives Societies Act or the Multi State cooperative Societies Act. Commercial Banks: Nationalized Banks: This group consists of erstwhile private sector banks that were brought under government control. The Government of India Nationalized 14 private banks in 1969 and another 6 in the year 1980, of which, New Bank k India was merged with Punjab National Bank.
Other Nationalized Banks: DIB Bank, after it got merged into DIB. Public Sector Banks: Banks in which the government has got majority shareholdings are known as Public Sector BANKS. This group consists of SIB and its Associates, Regional Rural Banks, and other Nationalized Banks. State Bank of India and its Associates: This group comprises of the State Bank of India (SIB) and its 5 Associates. Regional Rural Banks: These banks were established as per the provisions of the Regional Rural Banks Act, 1976.
A bank in the ratio 50:15:35. Orbs were established to operate exclusively in rural areas to provide credit and other facilities to small and marginal farmer, agricultural laborers, artisans and small entrepreneurs. There are 82 Orbs. Old Private Sector Banks: This group consists of banks that were established by the privy states, community organizations or by a roof of professionals for the cause of economic betterment in their areas of operation. Initially their operations were concentrated in a few regional areas.
However, their branches slowly spread throughout the nation as they grew. These banks are registered as companies under the Companies Act 1956 and were incorporated prior to 1994. New Private Sector Banks: RIB permitted formation of new private sector banks after accepting the recommendations of Narcissism Committee with an objective to bring more competition and efficiency in the banking sector. These banks were started as profit oriented public limited companies. These banks are technology-driven and thus usually better managed than other banks.
