(Apex Monetary Institution) Scheduled Banks Non- Scheduled Banks Cooperative Banks Commercial Banks Central Cooperative Banks State Cooperative Banks Indian Banks Foreign Banks Public Sector Banks Private Sector Banks SBI & its associate Banks Other Nationalized Banks Regional Rural Banks Banking Structure Reforms by Narasimhan Committee The finance ministry of Govt of India set up various committees with the task of analyzing Indias banking sector and recommending legislation and regulations to make it more effective, competitive and efficient. Two such expert committees were set up under the chairmanship of M.Narasimhan. They submitted their recommendations in the 1990s in reports widely known as the Narasimhan Committee-I (1991) report and the Narasimhan Committee-II (1998) report. These recommendations not only helped unleash the potential of banking in India, they are also recognized as a factor towards minimizing the impact of global financial crisis. Narasimhan Committee- I Recommendation: Report 1991 Reduction in the SLR and CRR (Statutory Liquid Ration and Cash Reserve Ratio) Phasing out directed credit programme Interest rate determination Structural reorganizations of the banking sector Establishment of the ARF Tribunal: (Asset Reconstruction Fund) Removal of Dual Control Banking Autonomy Narasimhan Committee- II Recommendation: Report 1998 Strengthening Banks in India Narrow Banking Capital Adequacy Ratio Bank Ownership Review of Banking Laws Reserve Bank of India (RBI) The Reserve bank of India (RBI) is the central bank of the country. It has been established as a body corporate under the Reserve Bank of India Act, which came into effect from 1 st April, 1935. The Reserve Bank was started as share-holders bank with a paid up capital of Rupees 5 Crores. On establishment it took over the function of management of currency from the government of India and power of credit control. The RBI was nationalized in 1949 soon after the countrys independence. Role of RBI Promotion of Commercial banking Promotion of Rural Credit Promotion of Co-operative credit Promotion of Industrial Finance Promotion of Export Credit Regulation of Credit Credit to weaker sections Exchange control Functions of RBI Central Banking Functions Issues of Bank notes Banker to Government Bankers bank Controller of Credit Supervisory Functions: Provide License Coverage of bank operations Restrict loans and advances Collect and supply information Functions of RBI Promotional Functions: Development of specialized financial institutions Promote regional rural banks Promote national housing bank Promote Research