In this article we have discussed about the Structure of Commercial Banking in India. Bank is an institutions that accepts deposits frm the public,mobilizes their savings and keeps the same under its custody, these deposits can be withdrawn by Cheques or ATMs or any other available methods. Banks lends money to those who need it and also performs diverse agency functions and also create credit.
Commercial banks are the institutions that accept deposits from the people and advances loans. Commercial Banks a;sp create credit. In India, such banks alone called commercial banks which are established in accordance with the provision of the Banking Regulation Act, 1949.
Commercial banks may be a Scheduled banks or Non-Scheduled banks. Scheduled banks is classified into two big category based on the ownership of the bank.
- I) Public Sector Banks
- II) Private Sector banks
Public Sector Banks is again divided into three category and they are i) Nationalized Banks, ii) State Bank of India and It’s Associate Group and iii) Regional Rural Banks.
Private Sector Banks is also classified into three category i) Old Private Banks ii) New Private Banks iii) Foreign Banks