Structure of the Indian Banking System

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Structure of the Indian Banking System

The Reserve Bank of India is the central bank of the country and regulates the banking system of India. The structure of the banking system of India can be broadly divided into scheduled banks, non-scheduled banks, and development banks. Banks that are included in the second schedule of the Reserve Bank of India Act, of  1934 are considered to be scheduled banks. The Indian Banking System includes commercial banks, regional rural banks, urban cooperative banks, and primary agricultural credit societies. India’s modern banking began in the 18th century. The State Bank of India is the biggest and oldest surviving bank. It began as the Bank of Calcutta in mid-June 1806. Today it is one of the largest lenders in the country. The Indian subcontinent reaped the benefits of a favourable trade balance, with exports outnumbering imports by wide percentages. 

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