Banking Sector In India.

Hello friends, How are you ? I am hare to welcome you all in our website Today I am going to discuss a very interesting and everyone’s Life related topic and that topic is Banking Sector in India. Every one needs services of banks in smoothly functioning of life. No one can live without money and money reaches to us with the help of Banking Sector in India. Banking Sector in India is not the facility of today only but if is available from a very long time or we can say when freedom of India was in the hand of British. To guys stay connected with our website to learn more information about origin of Banking Sector in India, it’s working, it’s type, It’s regulating authorities and other more.

What Is Bank ?

If we talk in a very simple words then Bank in a licensed institution and it’s license allowed it to accept our savings and provide loans to us whenever require by doing some documentation. A bank always work under its central bank and in India this central bank is RBI ( Reserve Bank of India). A bank can obtain it’s license under the guidance on central bank and this license give right to banks to accept our savings, gold investment and to provide us money, loan, interest etc.
If we talk about tangibility and intangibility then Bank is an intangible asset which means we cannot see it physically and also can’t touch it. We can only see it’s building. Only it’s services can be observed and no one can physically touch it’s services.

Accepting check

What Is Banking Sector ?

As I mentioned earlier that origin of Banking Sector in India is too old. As the time spent it’s services, working style, facilities, it’s branches increases. Now Bank have lots of branches, different kind of unique online and offline facilities. Banking sector in India start on 2 June 1806 with the first bank name Bank of Calcutta. After this in the 19th century under the charter of East India company on 2nd January, 1809 Bank of Bengal, on 15 April 1840 Bank of Bombay and on 1 July, 1943 Bank of mudras comes into existence.

Types Of Banks

Banking Sector consist of different types of bank some of which are as follows-

1) Central Bank

It is a bank under which all bank in banking sector work. Every bank have to follow the guidelines of Central bank. In India central bank is Reserve Bank of India. This bank accepts excess money of other banks and provide loans to other bank in care they don’t have money.

2) Commercial Bank

The banks which do normal Banking Sector work comes in this category. These banks provide loans, collect check, and also do agency work. These banks deals with corporate, non profit institutions and government.

3) Regional Rural Banks

These banks mainly concentrate on rural areas as its name also indicate. They supply money in rural areas and accept their access money. First time this type of bank in Banking Sector come into existence in 20 October, 1975.

4)Specialized Bank

In Banking Sector there are some special Bank which only that special work for which these bank are made. Name of specialized banks are SIDBI, EXIM, NABARD etc.
SIDBI is known as small industries development Bank of India. It is mainly for small- scale businesses. It provides financial helps to small enterprises. EXIM stands for export and import bank. These banks helps to those who involves in export and import business of the country. NABARD (National Bank for agriculture and rural development Bank ) is mainly for rural areas handicrafts, village and agricultural support.

5) International Bank

These are also a type of bank in Banking Sector. These bank gives helps to to other countries banks in case of any pandemic situation like COVID-19. Maine function of these banks are solving international problem or fights and helping monetary to their nearest countries. As its name already indicated it function at international level.

Functions Of Banks

Benefits of Banking Sector in our life are as follows-

1) Accept People Savings

Banks accepts our savings that we save from our day to day expenses and in return to accepting these savings they provide us interest.


2)Give Personal Loan

It also provides loans to us. If we want loan then banks are the first and most safe and also low interest taker source for loan. If we take loan from a shahukar or a normal person then they charge too much interest which normal people can’t pay. Some people demand for property paper and due to have interest when people are not able to pay loan amount with internet then these loan giver people overtake their property. In spite these a bank only demand 6 months salary slip or income source document and your personal documents only.

3) Gold And Home Loan

In spite of personal loan bank also offer Gold and home loan. If you want money and you don’t have any income source then Bank offers gold loan. You have to put gold in bank and in return bank provides you gold loan. For taking home bank also offer home loan to customers.

4) Provide Facility For RD And FD

If you are interested in taking more return as compared to return in normal savings then Bank offer RD and FD facility


RD stands for recurring deposit. In RD you have to deposit on monthly basis a fixed amount for a specified period of time and after that time period you will get total amount you deposit and also better return as compare to normal deposit. In case due to some emergency you are not able to submit amount in recurring deposit then you can stop you RD. By doing this you receive the entire amount till that time you deposit with interest also.


FD stands for fixed deposit. In this we deposit a fixed amount for a fixed period of time. After completing that fixed period we get the initial amount deposited with interest. Like RD fixed deposit can also be stopped in any emergency situation and you will receive the initial amount deposited with interest.


Friends hope these information will help you all in better functioning of life. I you have any kind of query or suggestions then feel free to drop a message in comment box. I will definitely resolve your all queries and will work on your suggestions.

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