BANKING TERMINOLOGY

BANK- Bank is a financial institution which receives the deposite from public and lends the money
for investment purpose. But nowadays banks are indulging themselves in many other activities like
-INSURANCE ,MUTUAL FUNDS, CREDIT CARDS, STOCK MARKET etc.These activities of banks
are known as PARABANKING. cash reserve with RBI. Presently there are 297 scheduled banks
are working in India.
There are two types of banks in India-
1- SCHEDULED BANKS
2- NON SCHEDULE BANK
1~ SCHEDULED BANK.S- are those banks which are registerd in SCHEDULE 2[E] of reserve bank of
India act 1934 with minimum paid up capital of Rs 200 crand required to keep their minimum CRR
with RBI.Presentely
There are 297 schedule banks are working in india.
2- NON SCHEDULED BANKS- Those banks which are not registerd in RBI schedule .there are only
one non scheduled bank is working in India is Jammu&Kashmir bank, which is not working under
the RBI but working under the provision of article 370 of Indian constitution.
TYPES OF BANKING
1- OVERSEAS BANKING-
Banking with foreign opration. that means if a domestic bank is working in abroad with his many
branches.
2- OFFSHORE BANKING-
An offshore bank account will allow you to safely and privately explore, with few restrictions, the far
reaches of the vast and diverse financial universe.
An offshore bank is a bank located outside the country of residence of the depositor, typically in a
low tax jurisdiction (or tax haven) that provides financial and legal advantages. These advantages
typically include some or all of .
=> strong privacy (see also bank secrecy, a principle born with the 1934 Swiss Banking Act)
=> less restrictive legal regulation
=> low or no taxation (i.e. tax havens)
=> easy access to deposits (at least in terms of regulation)
=> protection against local political or financial instability.
3- PARALLEL BANKING-
Parallel banks are defined as banks licensed in different jurisdictions that, while not being part of
the same financial group for regulatory consolidation purposes, have the same beneficial owner(s),
and consequently, often share common management and interlinked businesses. The owner(s)
may be an individual or a family, a group of private shareholders, or a holding company or other
entity that is not subject to banking supervision. Parallel banking relationships may exist, unknown
to the supervisors of the parallel banks.
Such structures may be established for a variety of reasons, among others: to take advantage of
different tax arrangements; to avoid legal restrictions in some countries on the ownership of foreign
subsidiaries by domestic banks; or to diversify risk outside countries that are considered
economically or politically unstable. In some cases, the motivation may be an attempt to evade
regulatory constraints or consolidated supervision from the home country.
4- MERCHANT BANKING-
In banking, a merchant bank is a traditional term for an Investment Bank. It can also be used to
describe the private equity activities of banking. developed by merchants, from the Middle Ages
onwards.
5- DOOR TO DOOR BANKING-
Doorstep Banking to deliver Banking and Financial Services at the doorsteps of the common man.
 ISLAMIC BANKING-
Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law
(Sharia) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the
collection and payment of interest, also commonly called riba in Islamic discourse. In addition,
Islamic law prohibits investing in businesses that are considered unlawful, or haraam (such as
businesses that sell alcohol or pork, or businesses that produce media such as gossip columns or
pornography, which are contrary to Islamic values). In the late 20th century, a number of Islamic.
banks were created, to cater to this particular banking market.
RELATIONSHIP BANKING-
Relationship banking is an attempt to advance the sales culture in bank marketing beyond order
taking to a more pro-active form of direct selling. Insteadof selling financial services one at a time,
an account officer attempts to gain an understanding of the consumer's needs and offer services
that fulfill those needs. Commercial banks and other financial institutions have attempted to apply
the concept of relationship banking through Personal Banker and Private Banking.
UNIVERSAL BANKING-
Banking that includes investment services in addition to services related to savings and loans.
VIRTUAL BANKING-
A virtual bank is a bank with a very small or nonexistent branch network. It offers its financial
services by:
Telephone banking
Online banking
Automated teller machines (often through interbank network alliances)
Mail banking
Mobile banking .
By eliminating the costs associated with retail banking, particularly bank' branches, virtual banks
may offer higher interest rates and lower service charges on their savings accounts than their
competitors.
GLOBAL BANKING-
International banking activities frequently result in financial instability and serious economic downtums
as financial markets become more open and deregulated.
Competition from multinational banks has reduced the availability of credit to small- and medium-
sized enterprises, to low- and middle-income consumers, and to farmers.
While economies experience financial instabilities and declining credit, governments are losing the
means to protect their domestic markets.
SCBs [SCHEDULED COMMERCIAL BANKS]
The commercial banking structure in India consists of:
Scheduled Commercial Banks in India
Unscheduled Banks in India
Scheduled Banks in India 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 (6) (a) of the Act.
The following are the Scheduled Banks in India (Public Sector):
State Bank of India .
State Bank of Bikaner and Jaipur
State Bank of Hyderabad
State Bank of Indore
State Bank of Mysore
. State Bank of Patiala
$tate Bank of Saurashtra
State Bank ofTravancore
Andhr:a Bank
 Allahabad Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Oena Bank
Indian Overseas Bank
Indian Bank
Oriental Bank of Commerce
Punjab National Bank
Punjab and Sind Bank
Syndicate Bank
Union Bank of India
United Bank of India
UCO Bank
Vijaya Bank
The following are the Scheduled Banks in India (Private Sector):
Vysya Bank Ltd
Axis Bank Ltd
Indusind Bank Ltd
ICICI Banking Corporation Bank Ltd
Global Trust Bank Ltd
HOFC Bank Ltd
Centurion Bank Ltd
Bank of Punjab Ltd
lOBI Bank Ltd
The following are the Scheduled Foreign Banks in India:
American Express Bank Ltd.
ANZ Gridlays Bank Pic.
Bank of America NT & SA
Bank of Tokyo Ltd.
Banquc Nationale de Paris
Barclays ,Bank Pic
Citi Bank N.C.
Deutsche Bank A.G.
Hongkong and Shanghai Banking Corporation
Standard Chartered Bank.
The Chase Manhattan Bank Ltd.
Oresdner Bank AG.
BANKS NATIONALISATION IN INDIA-
Banking System in India is dominated by nationalised banks. The nationalisation of banks in India
took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind
nationalisation was to spread banking infrastructure in rural areas and make available cheap finance
to Indian farmers. Fourteen banks were nationalised on JULY 19,1969. These Banks were-
PUNJAB NATIONAL BANK
BANK OF INDIA
"UNION BANK OF INDIA
CENTRAL BANK OF INDIA
CANARABANK
6- UCOBANK
7- UNITED BANK OF INDIA
8- INDIAN OVERSEAS BANK
9- DENABANK
10- ALLAHABAD BANK
11- BANK OF MAHARASHTRA
12- SYNDICATE BANK
13- INDIAN BANK
14- BANK OF BARODA
The second phase of nationalisation of Indian banks took place in the year 1980 on APRIL 15th. SIX
more banks were nationalised with deposits over 200 crores. Banks were-
1- ANDHRA BANK
2- NEW BANK OF INDIA
3- VIJAYABANK
4- CORPORATION BANK
5- ORIENTAL BANK OF COMMERCE
6- PUNJAB AND SINDH BANK
On Sept 1993 NEW BANK OF INDIA was merged with PNB.
In June 29th 2007 STATE BANK OF INDIA was also nationalized with eqity purchase from RBI of
Rs-35531.33cr .[ 59.73 %-Rs 1130.35/share] At present there are 20 nationalised banks are working
in INDIA.