Banking plays a vital role in any economy. Banks manage wealth. Their activities facilitate basic economic processes of production, distribution and consumption. They take care of people's savings; issue traveler’s cheques; finance projects; act as executors and trustees; and extend loan and credit services. Besides this, banks promote entrepreneurship and self-employment. In the past, banks in India interacted only with the more affluent segments of society. After their nationalization in 1969, operations became more broad-based. This enabled each newly nationalized bank to increase its deposits from Rs 50 crores to Rs 1,000 crores, in less than twenty years. Their support of the agricultural and small industries sectors have made them agents of socio-economic change. They are also among the largest employers in the public sector, and provide jobs and wages to lakhs of people.
Today, banking concepts are once more in transition. The double impetus of new technology and legislation has wrought quick and dramatic transformation in many spheres. Economic liberalization and the consequent financial reforms are making a qualitative difference to the functioning of banks and related institutions.
A wider variety of facilities are now available -many of them far removed from traditional banking activities. As competition intensifies, the marketing of banks and services grows more aggressive. The size of the industry has also greatly expanded. At present, over 53,000 branches offer banking services in almost every part of the country-their deposits aggregating upwards of Rs 1,30,000 crores.
Since nationalization, Indian banks have consistently provided equal opportunities for employment to both men and women. Currently, a large percentage of their staff—clerical as well as managerial-is female. Despite rapid developments in this field, banking remains conventional in its outlook. Rules and regulations concerning designations and promotions are fairly rigid. Officers must put in the requisite number of years at work and pass the specified examinations before moving on to the next grade. It is however, one of the steadiest and most regular careers to pursue.
are approximately similar in all banks though the focus of
activities might differ according to the segment of
population at whom services are directed.
RESERVE BANK OF INDIA:
at the apex of the banking structure. Its role is of a
regulatory and developmental authority. As head of the
monetary system, it builds up institutions and initiates
measures to improve effectiveness and productivity. The
Reserve Bank of India (RBI) and the Ministry of Finance,
together lay down the broad parameters of monetary policy.
The R.B.I actually issues the guidelines and procedural
instructions to all financial institutions and banks.
The Regional Reserve Banks
State Bank of India and associate banks
Private sector banks