Banking Network

 

An Banking Network, also known as an ATM consortium or ATM network, is a computer network that enables ATM cards issued by a financial institution that is a member of the network to be used to perform ATM transactions through ATMs that belong to another member of the network.

 

Banking is no new term to anyone be it homemakers, salaried people, businessmen, farmers, students or any other profession. Especially the Indian homes are well connected with banks and banking. The banking industry takes care of the finances of a country which includes credit and cash.
Banks are the backbone of the economy in a country and hence strict rules and regulations are imposed on the modus-operandi of banks. The major transactions that happen at banks are granting credits and accepting deposits from various entities.


RBI is the apex body that governs and monitors bank across India. It is responsible for regulating the monetary policy in the country.


BANK CLASSIFICATION IN INDIA
There are two broad categories under which banks are classified in India- SCHEDULED AND NON-SCHEDULED BANKS.
The scheduled banks include COMMERCIAL BANKS AND COOPERATIVE BANKS. The commercial banks include REGIONAL RURAL BANKS, SMALL FINANCE BANK, FOREIGN BANKS, PRIVATE SECTOR BANKS, and PUBLIC SECTOR BANKS. 

 

PAYMENTS BANK is a new introduction to the category.

 

Cooperative banks include URBAN AND RURAL BANKS.

 

Let us understand the nomenclature better;


SCHEDULED BANKS are the banks which are covered under the second schedule of the Reserve Bank of India Act, 1934. To qualify for being a scheduled bank, a minimum of 5 lakh paid-up capital is required on the bank’s behalf. The RBI lends loan to these banks at bank rate as and when required.

 

COMMERCIAL BANKS are regulated and managed under the Banking Regulation Act, 1949. These are profit making banks based on their business model. Granting loans to the government, general public, and corporate and accepting deposits counts as the primary function.

 

 

 

 


 

SLBC Member Banks - Click on the bank logo for navigating to the web site of concerned bank.