PREPARATION PLAN

PREPARATION PLAN

         The banking system was inherited in India at the time of independence   for the purposes, of ensuring growth and development in the economy. The Indian Banking Sector accounts for a major portion of financial inter mediation and acknowledged as main vehicle for monetary policy signals, credit channel and facilitator for payment system. The Indian banking industry, which is governed by the Banking Regulation Act of India, 1949 can broadly be classified into two major categories, scheduled banks and non-scheduled banks. Scheduled banks comprise commercial banks and the cooperative banks. Commercial banks accounts for more than 90 per cent of banking system’s assets. They are the major players to develop the economy. Based on the ownership, commercial banks can further be divided into Nationalized Banks, the State Bank of India and its associate banks, regional rural banks and private sector banks (the old/ new domestic and foreign).1