Banking-system-in-india / Banking System In India / Commercial Banks.
Commercial banks in India are categorized into two main types:
- Scheduled Commercial Banks:
- These banks are listed in the second Schedule of the Reserve Bank of India Act, 1934.
- They are regulated under the Banking Regulation Act, 1949, and must meet two conditions under the Reserve Bank of India Act:
- Paid-up capital and reserves totaling not less than ₹5 lakh.
- Compliance with RBI regulations to ensure their affairs are not detrimental to depositors.
- Scheduled commercial banks enjoy benefits such as the ability to seek financial assistance from the RBI. However, they also have obligations, including maintaining specific reserves as per RBI guidelines.
- Non-Scheduled Commercial Banks:
- There are only three non-scheduled commercial banks in India, operating with a total of nine branches.
- Local Area Banks fall under the category of non-scheduled commercial banks.
Scheduled banks encompass both scheduled commercial banks and scheduled cooperative banks.
