PROJECT REPORT
ON
BANKING SERVICES IN INDIA
Project work submitted to University of Project work submitted to University of
Mumbai through Oriental Institute of Mumbai through Oriental Institute of
Management (Vashi) in ursuit fulfillment of Management (Vashi) in ursuit fulfillment of
the !egree Master of "inancial Management # the !egree Master of "inancial Management #
$%M#V $%M#V
$ubmitted &y $ubmitted &y
'ame ( Mahesh $ Patil) 'ame ( Mahesh $ Patil)
*oll 'o ( +,,- *oll 'o ( +,,-
.lass ( Master of "inancial Management .lass ( Master of "inancial Management
($em#V) ($em#V)
/ear ( -00+#-0,, /ear ( -00+#-0,,
Under the suervision of Prof)Priya $ara Under the suervision of Prof)Priya $ara
O*I%'123 I'$1I1U1% O" M2'24%M%'1 O*I%'123 I'$1I1U1% O" M2'24%M%'1
Plot 'o),567 $ector#,- Vashi7 'avi Mumbai#500809 Plot 'o),567 $ector#,- Vashi7 'avi Mumbai#500809
1
BANKING SERVICES IN INDIA
DECLARATION
I, Mr. Mahesh S Patil, student of Oriental Institute of
Management, have completed the project work on the
topic Ban!ing Ser"i#es In In$ia% during the a#a$emi#
&ear '()(*)). The information submitted is true and
original to the best of my knowledge.
Date*
Pla#e* Navi Mumbai.
+Signature,
2
BANKING SERVICES IN INDIA
CERTIFICATE
I, Prof. Pri&a Sa-ra Pri&a Sa-ra (MM !o"coordinator Oriental
Institute of Management# #ertif& that Mr. Mahesh S
Patil, student of $riental Institute of Management %MM"& ,
has #om-lete$ the -ro.e#t /or! on the to-i#
Ban!ing Ser"i#es In In$ia% during the academic year
'()(")). The information submitted is true and original to
the best of my knowledge.
(Name of the project guide
Prof. Priya apra.!
3
BANKING SERVICES IN INDIA
ACKNOWLEDGEMENT
I "ou#d #i$e to ta$e thi% opportu&ity to tha&$ a## tho%e peop#e "ho are i& ma&y "ay%
re%po&%i'#e for thi% project.
Fir%t of a##( I e)pre%% my %e&%e of gratitude to"ard% our 'e#o*ed Director for pro*idi&g
"o&derfu# i&fra%tructure i& the co##ege. I am high#y i&depted to my project guide Prof.
Priya Sapra Priya Sapra (+F+,-. Co,coordi&ator Orie&ta# I&%titute of +a&ageme&t! for guidi&g
me regardi&g %e#ectio& of the project a&d u&tied effort% a&d e&courageme&t pro*ided
from time to time for ma$i&g the project 'etter.
I e)pre%% my %i&cere tha&$% to"ard% the co##ege #i'raria& for pro*idi&g me 'oo$%(
&e"%paper%( refere&ce 'oo$%( etc. "hich ha% 'ee& referred 'y my%e#f i& the project.
I am a#%o *ery tha&$fu# to my fami#y( frie&d% a&d "e## "i%her% for their e&courageme&t
a&d %upport.
4
BANKING SERVICES IN INDIA
PREFACE
I am pri*i#eged to %tudy o& the topic of “Ban!ing Ser"i#es In
In$ia” a% a project "or$. Thi% report i% de%ig&ed to 'e a comprehe&%i*e
report of Ban!ing Ser"i#es In In$ia( "hich i% #i$e the '#ood
mo*i&g through the *ei&% of the huma& 'ody.
I ha*e tried to co*er the major a%pect% re#ated to *anking +ervices In India
i& thi% project. Thi% project co&%i%t% of %tudy of ge&era# &ature of circu#ati&g
'a&$i&g %er*ice% i& I&dia. I ha*e attempted to fi## i& the gap 'y i&troduci&g
e)amp#e% a&d compa&y i&fo to gi*e me a %timu#u% i& gai&i&g my practica#
$&o"#edge.
The report i% the outcome of author% "ho ha*e ta$e& up academic% after %er*i&g
"or#d. it i% hope that thi% report "i## 'e a good '#e&d of cha##e&gi&g idea% a&d
practica# tip%( "hich ca& 'e #ear&t through o'%er*atio&%. I tha&$ the
ma&ageme&t of pu'#icatio&% #i$e capita# maga/i&e%( fi&a&ce maga/i&e a&d
0u%i&e%% today "ho%e readi&g materia#% are i&c#uded i& thi% project.
The choice of topic for thi% i&di*idua# project "a% rea##y i&tere%ti&g a&d more
$&o"#edgea'#e "hich "ou#d he#p me i& my practica# #ife. It ha% rea##y 'ee& a
p#ea%ure a&d cha##e&gi&g e)perie&ce to %tudy thi% topic.
1A## that remai&% i% from me to "i%h you a ‘HAPPY READINGS.2
!
BAN
KING SERVICES IN INDIA
Co"#$"#%
1. Hi%#ory &f Ba"'i"( I" I")ia P( *+ ,o 13
2. Pri-a#$ S$.#or Ba"'% P( 14 ,o 1+
3. Ba"'i"( I" I")ia P( 1/ ,o 21
4. Ro0$ of R$%$r-$ Ba"' I" I")ia P( 22 ,o 2!
!. Co1op$ra#i-$ Ba"'% P( 22 ,o 23
2. Pro)4.#% A") S$r-i.$% &ff$r$) By Ba"'% P( 3* ,o 33
+. Ba"'% S$r-i.$% P( 4* ,o 44
/. Ro0$ &f I"for5a#io" ,$.6"o0o(y I" Ba"'i"( S$.#or P( 4! ,o !2
3. R$.$"# ,r$") I" Ba"'i"( P( !3 ,o !3
1*. Ca%$ S#4)y P( 2* ,o +2
11. Corpora#$ Ro0$ I" Ba"'i"( P( +3 ,o +/
12. Co".04%io" P( +3
13. Bi70io(rap6y P( /*
2
BANKING SERVICES IN INDIA
I. HIS,&RY &8 BANKING IN INDIA
There are three differe&t pha%e% i& the hi%tory of 'a&$i&g i& I&dia.
19 Pr$1Na#io"a0i:a#io" Era.
29 Na#io"a0i:a#io" S#a($.
39 Po%# ;i7$ra0i:a#io" Era.
19 Pr$1Na#io"a0i:a#io" Era<
I& I&dia the 'u%i&e%% of 'a&$i&g a&d credit "a% practice% e*e& i& *ery
ear#y time%. The remitta&ce of mo&ey through 3u&die%( a& i&dige&ou% credit
i&%trume&t( "a% *ery popu#ar. The hu&die% "ere i%%ued 'y 'a&$er% $&o"& a% hroff%(
ahu$ar%( hahu% or +ahaja&% i& differe&t part% of the cou&try.
The moder& type of 'a&$i&g( ho"e*er( "a% de*e#oped 'y the Age&cy
3ou%e% of Ca#cutta a&d 0om'ay after the e%ta'#i%hme&t of Ru#e 'y the Ea%t I&dia
Compa&y i& 45
th
a&d 46
th
ce&turie%.
Duri&g the ear#y part of the 46
th
Ce&tury( ht *o#ume of foreig& trade "a%
re#ati*e#y %ma##. Later o& a% the trade e)pa&ded( the &eed for 'a&$% of the Europea&
type "a% fe#t a&d the go*er&me&t of the Ea%t I&dia Compa&y too$ i&tere%t i& ha*i&g it%
o"& 'a&$. The go*er&me&t of 0e&ga# too$ the i&itiati*e a&d the fir%t pre%ide&cy 'a&$(
the 0a&$ of Ca#cutta (0a&$ of 0e&ga#! "a% e%ta'#i%hed i& 4577. I& 4587( the 0a&$ of
0om'ay a&d IN 4589( the 0a&$ of +adra% "a% a#%o %et up.
+
BANKING SERVICES IN INDIA
The%e three 'a&$% a#%o $&o"& a% 1Pre%ide&cy 0a&$2. The Pre%ide&cy
0a&$% had their 'ra&che% i& importa&t tradi&g ce&ter% 'ut mo%t#y #ac$ed i& u&iformity
i& their operatio&a# po#icie%. I& 4566( the
*er&me&t propo%ed to ama#gamate the%e
three 'a&$% i& to o&e %o that it cou#d a#%o fu&ctio& a% a Ce&tra# 0a&$( 'ut the Pre%ide&cy
0a&$% did &ot fa*or the idea. 3o"e*er( the co&ditio&% o'tai&i&g duri&g "or#d "ar
period (4648,4645! empha%i/ed the &eed for a u&ified 'a&$i&g i&%titutio&( a% a re%u#t of
"hich the Imperia# 0a&$ "a% %et up i&46;4. The Imperia# 0a&$ of I&dia acted #i$e a
Ce&tra# 'a&$ a&d a% a 'a&$er for other 'a&$%.
The R0I (Re%er*e 0a&$ of I&dia! "a% e%ta'#i%hed i& 469< a% the Ce&tra#
0a&$ of the Cou&try. I& 4686( the 0a&$i&g Regu#atio& act "a% pa%%ed a&d the R0I "a%
&atio&a#i/ed a&d ac=uired e)te&%i*e regu#atory po"er% o*er the commercia# 'a&$%.
I& 46oi&t toc$ 'a&$%.
29 Na#io"a0i:a#io" S#a($%<
After I&depe&de&ce( i& 46a&uary 46?9( the tate 0a&$ of 0i$a&er a&d tate
0a&$ of >aipur "ith head office #ocated at >aipur. Thu%( %e*e& %u'%idiary 'a&$% tate
0a&$ of I&dia formed the 0I :roup.
The 0I :roup u&der %tatutory o'#igatio&% "a% re=uired to ope& &e"
office% i& rura# a&d %emi,ur'a& area% a&d moder& 'a&$i&g "a% ta$e& to the%e u&'a&$ed
remote area%.
3
BANKING SERVICES IN INDIA
O& 46
th
>u#y 46?6( the& the Prime +i&i%ter( +r%. I&dira :a&dhi
a&&ou&ced the &atio&a#i/atio& of 48 major %chedu#ed Commercia# 0a&$% each
ha*i&g depo%it% "orth R%. a&uary 4669 for the
e&try of Pri*ate ector 'a&$% 'a%ed o& the Natio&a#i/atio& Committee report of 4664(
"hich e&*i%aged a #arger ro#e for Pri*ate ector 0a&$%.
14
BANKING SERVICES IN INDIA
The R0I pre%cri'ed a mi&imum paid up capita# of R%. 477 crore% for the &e" 'a&$ a&d
the %hare% are to 'e #i%ted at %toc$ e)cha&ge. A#%o the &e" 'a&$ after 'ei&g gra&ted
#ice&%e u&der the 0a&$i&g Regu#atio& Act %ha## 'e regi%tered a% a pu'#ic #imited
compa&y u&der the compa&ie% Act( 46
ON
BANKING SERVICES IN INDIA
Project work submitted to University of Project work submitted to University of
Mumbai through Oriental Institute of Mumbai through Oriental Institute of
Management (Vashi) in ursuit fulfillment of Management (Vashi) in ursuit fulfillment of
the !egree Master of "inancial Management # the !egree Master of "inancial Management #
$%M#V $%M#V
$ubmitted &y $ubmitted &y
'ame ( Mahesh $ Patil) 'ame ( Mahesh $ Patil)
*oll 'o ( +,,- *oll 'o ( +,,-
.lass ( Master of "inancial Management .lass ( Master of "inancial Management
($em#V) ($em#V)
/ear ( -00+#-0,, /ear ( -00+#-0,,
Under the suervision of Prof)Priya $ara Under the suervision of Prof)Priya $ara
O*I%'123 I'$1I1U1% O" M2'24%M%'1 O*I%'123 I'$1I1U1% O" M2'24%M%'1
Plot 'o),567 $ector#,- Vashi7 'avi Mumbai#500809 Plot 'o),567 $ector#,- Vashi7 'avi Mumbai#500809
1
BANKING SERVICES IN INDIA
DECLARATION
I, Mr. Mahesh S Patil, student of Oriental Institute of
Management, have completed the project work on the
topic Ban!ing Ser"i#es In In$ia% during the a#a$emi#
&ear '()(*)). The information submitted is true and
original to the best of my knowledge.
Date*
Pla#e* Navi Mumbai.
+Signature,
2
BANKING SERVICES IN INDIA
CERTIFICATE
I, Prof. Pri&a Sa-ra Pri&a Sa-ra (MM !o"coordinator Oriental
Institute of Management# #ertif& that Mr. Mahesh S
Patil, student of $riental Institute of Management %MM"& ,
has #om-lete$ the -ro.e#t /or! on the to-i#
Ban!ing Ser"i#es In In$ia% during the academic year
'()(")). The information submitted is true and original to
the best of my knowledge.
(Name of the project guide
Prof. Priya apra.!
3
BANKING SERVICES IN INDIA
ACKNOWLEDGEMENT
I "ou#d #i$e to ta$e thi% opportu&ity to tha&$ a## tho%e peop#e "ho are i& ma&y "ay%
re%po&%i'#e for thi% project.
Fir%t of a##( I e)pre%% my %e&%e of gratitude to"ard% our 'e#o*ed Director for pro*idi&g
"o&derfu# i&fra%tructure i& the co##ege. I am high#y i&depted to my project guide Prof.
Priya Sapra Priya Sapra (+F+,-. Co,coordi&ator Orie&ta# I&%titute of +a&ageme&t! for guidi&g
me regardi&g %e#ectio& of the project a&d u&tied effort% a&d e&courageme&t pro*ided
from time to time for ma$i&g the project 'etter.
I e)pre%% my %i&cere tha&$% to"ard% the co##ege #i'raria& for pro*idi&g me 'oo$%(
&e"%paper%( refere&ce 'oo$%( etc. "hich ha% 'ee& referred 'y my%e#f i& the project.
I am a#%o *ery tha&$fu# to my fami#y( frie&d% a&d "e## "i%her% for their e&courageme&t
a&d %upport.
4
BANKING SERVICES IN INDIA
PREFACE
I am pri*i#eged to %tudy o& the topic of “Ban!ing Ser"i#es In
In$ia” a% a project "or$. Thi% report i% de%ig&ed to 'e a comprehe&%i*e
report of Ban!ing Ser"i#es In In$ia( "hich i% #i$e the '#ood
mo*i&g through the *ei&% of the huma& 'ody.
I ha*e tried to co*er the major a%pect% re#ated to *anking +ervices In India
i& thi% project. Thi% project co&%i%t% of %tudy of ge&era# &ature of circu#ati&g
'a&$i&g %er*ice% i& I&dia. I ha*e attempted to fi## i& the gap 'y i&troduci&g
e)amp#e% a&d compa&y i&fo to gi*e me a %timu#u% i& gai&i&g my practica#
$&o"#edge.
The report i% the outcome of author% "ho ha*e ta$e& up academic% after %er*i&g
"or#d. it i% hope that thi% report "i## 'e a good '#e&d of cha##e&gi&g idea% a&d
practica# tip%( "hich ca& 'e #ear&t through o'%er*atio&%. I tha&$ the
ma&ageme&t of pu'#icatio&% #i$e capita# maga/i&e%( fi&a&ce maga/i&e a&d
0u%i&e%% today "ho%e readi&g materia#% are i&c#uded i& thi% project.
The choice of topic for thi% i&di*idua# project "a% rea##y i&tere%ti&g a&d more
$&o"#edgea'#e "hich "ou#d he#p me i& my practica# #ife. It ha% rea##y 'ee& a
p#ea%ure a&d cha##e&gi&g e)perie&ce to %tudy thi% topic.
1A## that remai&% i% from me to "i%h you a ‘HAPPY READINGS.2
!
BAN
KING SERVICES IN INDIA
Co"#$"#%
1. Hi%#ory &f Ba"'i"( I" I")ia P( *+ ,o 13
2. Pri-a#$ S$.#or Ba"'% P( 14 ,o 1+
3. Ba"'i"( I" I")ia P( 1/ ,o 21
4. Ro0$ of R$%$r-$ Ba"' I" I")ia P( 22 ,o 2!
!. Co1op$ra#i-$ Ba"'% P( 22 ,o 23
2. Pro)4.#% A") S$r-i.$% &ff$r$) By Ba"'% P( 3* ,o 33
+. Ba"'% S$r-i.$% P( 4* ,o 44
/. Ro0$ &f I"for5a#io" ,$.6"o0o(y I" Ba"'i"( S$.#or P( 4! ,o !2
3. R$.$"# ,r$") I" Ba"'i"( P( !3 ,o !3
1*. Ca%$ S#4)y P( 2* ,o +2
11. Corpora#$ Ro0$ I" Ba"'i"( P( +3 ,o +/
12. Co".04%io" P( +3
13. Bi70io(rap6y P( /*
2
BANKING SERVICES IN INDIA
I. HIS,&RY &8 BANKING IN INDIA
There are three differe&t pha%e% i& the hi%tory of 'a&$i&g i& I&dia.
19 Pr$1Na#io"a0i:a#io" Era.
29 Na#io"a0i:a#io" S#a($.
39 Po%# ;i7$ra0i:a#io" Era.
19 Pr$1Na#io"a0i:a#io" Era<
I& I&dia the 'u%i&e%% of 'a&$i&g a&d credit "a% practice% e*e& i& *ery
ear#y time%. The remitta&ce of mo&ey through 3u&die%( a& i&dige&ou% credit
i&%trume&t( "a% *ery popu#ar. The hu&die% "ere i%%ued 'y 'a&$er% $&o"& a% hroff%(
ahu$ar%( hahu% or +ahaja&% i& differe&t part% of the cou&try.
The moder& type of 'a&$i&g( ho"e*er( "a% de*e#oped 'y the Age&cy
3ou%e% of Ca#cutta a&d 0om'ay after the e%ta'#i%hme&t of Ru#e 'y the Ea%t I&dia
Compa&y i& 45
th
a&d 46
th
ce&turie%.
Duri&g the ear#y part of the 46
th
Ce&tury( ht *o#ume of foreig& trade "a%
re#ati*e#y %ma##. Later o& a% the trade e)pa&ded( the &eed for 'a&$% of the Europea&
type "a% fe#t a&d the go*er&me&t of the Ea%t I&dia Compa&y too$ i&tere%t i& ha*i&g it%
o"& 'a&$. The go*er&me&t of 0e&ga# too$ the i&itiati*e a&d the fir%t pre%ide&cy 'a&$(
the 0a&$ of Ca#cutta (0a&$ of 0e&ga#! "a% e%ta'#i%hed i& 4577. I& 4587( the 0a&$ of
0om'ay a&d IN 4589( the 0a&$ of +adra% "a% a#%o %et up.
+
BANKING SERVICES IN INDIA
The%e three 'a&$% a#%o $&o"& a% 1Pre%ide&cy 0a&$2. The Pre%ide&cy
0a&$% had their 'ra&che% i& importa&t tradi&g ce&ter% 'ut mo%t#y #ac$ed i& u&iformity
i& their operatio&a# po#icie%. I& 4566( the
*er&me&t propo%ed to ama#gamate the%ethree 'a&$% i& to o&e %o that it cou#d a#%o fu&ctio& a% a Ce&tra# 0a&$( 'ut the Pre%ide&cy
0a&$% did &ot fa*or the idea. 3o"e*er( the co&ditio&% o'tai&i&g duri&g "or#d "ar
period (4648,4645! empha%i/ed the &eed for a u&ified 'a&$i&g i&%titutio&( a% a re%u#t of
"hich the Imperia# 0a&$ "a% %et up i&46;4. The Imperia# 0a&$ of I&dia acted #i$e a
Ce&tra# 'a&$ a&d a% a 'a&$er for other 'a&$%.
The R0I (Re%er*e 0a&$ of I&dia! "a% e%ta'#i%hed i& 469< a% the Ce&tra#
0a&$ of the Cou&try. I& 4686( the 0a&$i&g Regu#atio& act "a% pa%%ed a&d the R0I "a%
&atio&a#i/ed a&d ac=uired e)te&%i*e regu#atory po"er% o*er the commercia# 'a&$%.
I& 46oi&t toc$ 'a&$%.
29 Na#io"a0i:a#io" S#a($%<
After I&depe&de&ce( i& 46a&uary 46?9( the tate 0a&$ of 0i$a&er a&d tate
0a&$ of >aipur "ith head office #ocated at >aipur. Thu%( %e*e& %u'%idiary 'a&$% tate
0a&$ of I&dia formed the 0I :roup.
The 0I :roup u&der %tatutory o'#igatio&% "a% re=uired to ope& &e"
office% i& rura# a&d %emi,ur'a& area% a&d moder& 'a&$i&g "a% ta$e& to the%e u&'a&$ed
remote area%.
3
BANKING SERVICES IN INDIA
O& 46
th
>u#y 46?6( the& the Prime +i&i%ter( +r%. I&dira :a&dhi
a&&ou&ced the &atio&a#i/atio& of 48 major %chedu#ed Commercia# 0a&$% each
ha*i&g depo%it% "orth R%. a&uary 4669 for the
e&try of Pri*ate ector 'a&$% 'a%ed o& the Natio&a#i/atio& Committee report of 4664(
"hich e&*i%aged a #arger ro#e for Pri*ate ector 0a&$%.
14
BANKING SERVICES IN INDIA
The R0I pre%cri'ed a mi&imum paid up capita# of R%. 477 crore% for the &e" 'a&$ a&d
the %hare% are to 'e #i%ted at %toc$ e)cha&ge. A#%o the &e" 'a&$ after 'ei&g gra&ted
#ice&%e u&der the 0a&$i&g Regu#atio& Act %ha## 'e regi%tered a% a pu'#ic #imited
compa&y u&der the compa&ie% Act( 46