Constitution of Bank in India

Background:

• The banking in India was originated only at 18 Th century. During the last decades, Bank of Hindustan should be first banks which were established in 1770 and liquated in 1829-32. And also The General Bank of India was established in 1786. The largest bank, and the oldest still in existence is the State Bank of India (S.B.I). It was originated as the Bank of Calcutta in 1806. In 1809, it was renamed as the Bank of Bengal. This was one of the three banks funded by a presidency government, the other two were the Bank of Bombay in 1840 and the Bank of Madras in 1843. These three banks were merged in 1921 to form the Imperial Bank of India and later it would become the State Bank of India in 1955. For many years the presidency banks had acted as quasi-central banks, as did their successors, until the Reserve Bank of India was established in 1935, under the Reserve Bank of India Act, 1934. 
• In 1960, the state bank of India had given control to their eight state associated banks under the state bank of India act 1959. These banks were now called as its associate banks. In 1969, The Indian government had nationalized 14 major private banks in India. In 1969, 6 more private banks were nationalized. These nationalized were majority lenders in Indian economy even now. They had dominated the banking sectors because of their large size and their networks. The Indian banking sector was broadly classified into scheduled and non-scheduled banks. 
• In the early 1990s, at the time of liberalization, the government had licensed a small number of private banks known as new generation tech-savvy banks and included global trust bank which later amalgamated with the oriental bank of commerce, UTI Bank, ICICI Bank and HDFC Bank. This would become along with the rapid growth in the economy of India revitalized the banking sector in India, which has seen rapid growth with strong contribution from the government banks, private banks and foreign banks. All foreign investors in banks might be given voting rights that could exceed the present capital of 10% at present. It has gone up to 74% with some restrictions. Bankers were used the 4–6–4 method (borrow at 4%; lend at 6%; go home at 4%) of functioning. This new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People demanded more from their banks and received more. 

Recent Initiatives:

Scheduled Banks were comprised scheduled commercial banks and scheduled co-operative banks. Scheduled co-operative banks were consisted of scheduled state co-operative banks and scheduled urban cooperative banks. They were categorized into five different groups according to their ownership and nature of operation -

• State bank of India and its associates. 
• Nationalized banks. 
• Private sector banks. 
• Foreign banks. 
• Regional rural banks. 

By 2010, banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region.

PMJDY:

Pradhan Mantri Jan Dhan Yojana is a scheme for comprehensive financial inclusion launched by the Prime Minister of India, Narendra Modi, in 2014. It was run by the ministry of finance in India. On the inauguration day, 1.5 Crore bank accounts were opened under this scheme. By 15 July 2015, 16.92 crore accounts were opened, with around ₹20,288.37 crore were deposited under the scheme, which also has an option for opening new bank accounts with zero balance.

Payment Banks:

Payments bank is a new model of banks conceptualized by the Reserve Bank of India (RBI). These banks can accept a restricted deposit, which is currently limited to ₹1 lakh per customer and may be increased further. These banks cannot issue loans and credit cards. But they can operate current account and savings accounts. They can issue services like ATM cards, debit cards, net-banking and mobile-banking. The banks will be licensed as payments banks under Section 22 of the Banking Regulation Act, 1949, and will be registered as the public limited company under the Companies Act, 2013.

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