Evolution of Banksīanking system has evolved from barbaric banking where commodities were loaned to modern day banking system, which caters to a range of financial services. There are very few banks that fall in this category. Non-scheduled banks are the banks with reserve capital of less than five lakh rupees. Most of the banks in India fall in the scheduled bank category. All their banking businesses are carried out in India. Scheduled banks are those that have paid-up capital and deposits of an aggregate value of not less than rupees five lakhs in the Reserve Bank of India. The following are the basic differences between scheduled and nonscheduled banks in the Indian banking perspective. Scheduled and non-scheduled banks are categorized by the criteria or eligibility setup by the governing authority of a particular region.
This calls for bank management, which further ensures quality service to customers and a win-win situation between the customer, the banks and the government. The government plays a crucial role with its control over the banking system. Modern banks deal with banking activities on a larger scale and abide by the rules made by the government. It was being practiced on a very small scale as compared to modern day banking and frame work was not systematic. The origin of bank or banking activities can be traced to the Roman empire during the Babylonian period. We will discuss these areas in later chapters. The concerns broadly include liquidity management, asset management, liability management and capital management. It also provides other financial services to its customers.īank management governs various concerns associated with bank in order to maximize profits. A bank is a financial institution which accepts deposits, pays interest on pre-defined rates, clears checks, makes loans, and often acts as an intermediary in financial transactions.
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