Scheduled Banking Structure in India

Scheduled bank, is usually private, nationalized and foreign banks, refers to a bank which is listed in the 2nd schedule of the Reserve Bank of India Act, 1934. Scheduled banks are authorized to carry out the normal business of banking such as accepting deposits, giving out loans and other banking services. A scheduled bank is eligible for seeking loans at bank rate from RBI. They are also entitled to membership to clearing houses.

Scheduled Banks are further classified into two Major categories: -

a. Scheduled commercial Banks

• Public Sector Banks

A. Nationalized Banks
B. State Bank of India and its associate
C. Other Indian Public sector Banks

• Regional Rural Banks
• Foreign Banks
• Private Banks

b. Scheduled Co-operative Banks

• Scheduled State Co-operative Banks
• Scheduled Urban Co-operative Banks

A. Public Sector Banks: -  Currently, there are 27 Public Sector Banks in India that includes SBI(& its 5 other associate banks) and 19 Nationalized Banks. Apart from that, another two banks are IDBI and Bhartiya Mahila Bank, which come under this category.

i. SBI and its associates: - State Bank of India is the Biggest & oldest banking & a Financial company in India by assets. The Current Five associate banks are: -

• State Bank of Patiala
• State Bank of Bikaner & Jaipur
• State Bank of Hyderabad
• State bank of Travancore
• State Bank of Mysore

ii. Nationalized Banks: - There are 19 Nationalized Banks given below: -

1) Allahabad Bank

2) Andhra Bank

3) Bank of Baroda

4) Indian Overseas Bank

5) Oriental Bank of Commerce

6) Punjab & Sind Bank

7) Punjab National Bank

8) Syndicate Bank

9) UCO Bank

10) Union Bank of India

11) United Bank of India

12) Vijaya Bank

13) Bank of India

14) Bank of Maharashtra

15) Canara Bank

16) Central Bank of India

17) Corporation Bank

18) Dena Bank

19) Indian Bank

B.  Foreign  Banks: - There are 43 foreign banks operating in India at present as per the RBI statistics. Most of them are niche players.In this context, RBI policy based upon two principles.

i. Reciprocity
ii. Single Mode of presence

HSBC Ltd., Deutsche Bank, Bank of America, Citibank, Barclays Bank, Standard Chartered Bank, etc. are some of them.

C. Private Sector Banks: - There are 23 private sector banks as per the revised guidelines issued by RBI. Some of the private sector banks are as follows: -

- Axis Bank

- HDFC Bank

- ICICI Bank

- IndusInd Bank

- Kotak Mahindra Bank

- Yes Bank, etc.

D. Rural Regional Bank: - RRB are Government owned Banks, but are not commercial Banks. At Present, There are 56 RRBs in total listed under RBI.  Each RRB is owned by three entities with their respective shares as follows: -

• Central Government-  50%
• State Government- 15%
• Sponsor Bank- 35%

They are regulated by NABARD.