Structure of Indian Banking

Introduction to Cooperative and Regional Rural Banks

1. The Indian banking system comprises various tiers, including cooperative banks and regional rural banks (RRBs), to address specific economic needs.
2. Both types of banks play a crucial role in promoting financial inclusion and supporting the rural economy.

Cooperative Banks

1. Cooperative banks are financial institutions owned and managed by their members, primarily to serve rural and semi-urban ar

Introduction to Indian Banking System

1. India has a multi-tier banking structure that includes public sector banks, private sector banks, cooperative banks, and regional rural banks (RRBs).
2. Public sector banks (PSBs) and private sector banks are the two dominant categories, each playing a vital role in the Indian economy.

Public Sector Banks (PSBs)

1. PSBs are banks where the majority stake (more than 50%) is owned by the Government of India.
2. Examples include

Introduction to the Reserve Bank of India (RBI)

1. The Reserve Bank of India (RBI) was established in 1935 under the Reserve Bank of India Act, 1934.
2. It is the central bank of India and plays a pivotal role in regulating the Indian banking and financial system.
3. The RBI’s headquarters are in Mumbai, Maharashtra.
4. The main objectives of the RBI are to ensure monetary stability, financial stability, and economic growth.

Structure of Indian Banking System