Structure of Indian Banking System

The Indian financial system comprises a large number of commercial and cooperative banks, specialized developmental banks for industry, agriculture, external trade and housing , social security institutions, etc. The banking system is at the heart of the financial system.

The Indian banking system has the RBI at the apex. It is the central bank of the country under which there are the commercial banks including public sector banks and private sector banks, foreign banks and local area banks. It also includes regional rural banks as well as cooperative banks.

Origin of banks
The first bank in India, was established in 1786.From then till today, the journey of Indian banking system can be classified in to three distinct phases: Phase1:Early phase from 1786 to 1969 of Indian banks. Phase2:Nationalisation of Indian banks up to 1991 prior to the Indian banking sector reforms. Phase:New phase of Indian banking system with the advent of Indian Financial and Banking sector reforms after 1991.

Phase1:Early phase from 1786 to 1969 of Indian banks. Phase2:Nationalisation of Indian banks up to 1991 prior to the Indian banking sector reforms.
Phase3:New phase of Indian banking system with the advent of Indian Financial and Banking sector reforms after 1991.