What is banking in india?

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Banking in India refers to the banking system and financial services provided by banks operating in India. The Reserve Bank of India (RBI) is the central bank of India and regulates the banking sector. Banks in India can be broadly categorized into two types: public sector banks and private sector banks. Public sector banks are owned and operated by the government, while private sector banks are owned and operated by private individuals or institutions.

The banking system in India can be further divided into two parts: organized and unorganized. The organized sector includes commercial banks and co-operative banks, while the unorganized sector includes moneylenders, chit funds, and other informal sources of credit.

What is banking in india

Commercial banks in India are classified into various categories like:

  • Public sector banks: These are banks that are owned and operated by the government. Examples include State Bank of India, Allahabad Bank, and Bank of India.
  • Private sector banks: These are banks that are owned and operated by private individuals or institutions. Examples include HDFC Bank, ICICI Bank, and Axis Bank.
  • Foreign banks: These are banks that are headquartered in a foreign country but operate in India. Examples include Citibank and Standard Chartered Bank.
  • Regional Rural Banks: These banks are created for the purpose of providing credit and other facilities, especially to the small and marginal farmers, agricultural labourers, and rural artisans in the less developed areas of the country.

Banking in India has undergone a significant transformation in recent years, with the introduction of new technologies, financial products, and services. The government has also been implementing various policies and initiatives to increase financial inclusion, such as the Jan Dhan Yojana scheme.

In conclusion, banking in India refers to the banking system and financial services provided by banks operating in the country. It is regulated by the Reserve Bank of India, and banks can be classified into public sector, private sector, foreign, and regional rural banks. The banking system in India is constantly evolving with the introduction of new technologies and policies