Banking Structure Flashcards
(23 cards)
Which bank is almost every Indian bank categorized under?
Scheduled Bank
Scheduled Banks are defined under the RBI Act, 1934.
Which act lists Scheduled Banks?
RBI Act, 1934
This act provides the framework for the regulation of banks in India.
What are banks listed under the Indian Companies Act, 1934 called?
Commercial Banks
These banks are primarily involved in providing services to the general public and businesses.
Which act regulates banks in India aside from the Companies Act?
Banking Regulation Act, 1949
This act governs the functioning of banks in India.
What are banks listed in all three acts (RBI Act, Companies Act, Banking Regulation Act) called?
Scheduled Commercial Banks
These banks are eligible for certain benefits and privileges under the RBI Act.
Name an example of Special Financial Institutions (SFI) mentioned.
NABARD / EXIM
NABARD stands for National Bank for Agriculture and Rural Development, while EXIM refers to Export-Import Bank.
Public sector banks generally have what minimum percentage equity held by the government?
51%
This percentage is necessary for a bank to be classified as a public sector bank.
Which was the first public sector bank formed from the Imperial Bank?
State Bank of India (SBI)
SBI was established in 1955 and is the largest bank in India.
How many Public Sector Banks currently exist in India?
12
The number of public sector banks can vary due to mergers and acquisitions.
Name three Public Sector Banks in India.
State Bank of India, Punjab National Bank, Bank of Baroda
These banks are among the largest in the country.
How many SBI branches are there approximately?
22,219
SBI has an extensive network of branches across India.
Who was the first chairman of SBI?
John Mathai
He served as the first chairman when SBI was established in 1955.
Who was the first woman chairman of SBI?
Arundhati Bhattacharya
She served as the chairman from 2013 to 2017.
Who is the current chairman of SBI?
Dinesh Kumar Khara
He took over the role in October 2020.
What percentage of shareholding do Private Sector Banks usually have?
More than 50%
This level of shareholding indicates private ownership.
What term is used for private banks established after LPG reforms?
New Generation Private Banks
LPG refers to Liberalization, Privatization, and Globalization reforms initiated in the 1990s.
What is the main purpose of Regional Rural Banks (RRBs)?
To provide credit and loans to small and marginal farmers/workers in rural areas
RRBs aim to promote financial inclusion in rural areas.
When was the RRB Act enacted?
1976
The act aimed to establish RRBs to serve rural areas.
What is the shareholding pattern of RRBs?
Central Government 50%, State Government 15%, Sponsor Bank 35%
This structure ensures government support while allowing some private investment.
Which body inspects and supervises RRBs?
NABARD
NABARD plays a crucial role in rural development and the banking sector.
How many RRBs are currently in India?
43
The number of RRBs can change due to mergers or new establishments.
Name the largest RRB.
Baroda Uttar Pradesh Gramin Bank (sponsored by Bank of Baroda)
This RRB has a significant presence in Uttar Pradesh.
Which two states are not covered by RRBs?
Goa and Sikkim
These states do not have RRBs due to their unique banking needs and structures.
