Bank Clearing Code

1.0 Indian Banking System

A bank in India has been defined in the companiesact bank 1949.as a "who transacts banking business, which means accepting, for the loan or investment of deposits of money from the public, repayable on demand or otherwise, and withdraw able by check, wire transfer, order or otherwise. "Most of the activities of a bank makes from the definition above. In addition, banks are allowed to perform certain activities that are related to the activity of deposits and loans. A banking relationship with the public, therefore, revolves around accepting deposits and lending money. Another activity that is increasingly important is the transfer of money - both domestic and foreign - from one place to another. This activity is generally known as business "surrender" in banking jargon. The so-called Forex (foreign exchange) for businesses is largely a part of the rebate even if it involves buying and selling foreign currencies.

Running a bank is among the most complex operations of the company. Since the banks is to deal directly with money, governments in most countries regulate the sector, rather strict. In India, the regulation has always been very strict and the opinion of some neighborhoods, head of state banks, where NPAs are a very high order. The process of financial reforms, which began in 1991, authorized the cobwebs a little, but much remains to be done. The multiplicity of policies and regulations which the Bank has been working with our business even more complicated, sometimes bordering on logic. This section, which is also for banking professionals, trying to give an overview of the functions as easy as possible. Banking Regulation Act of India, 1949 defines Banking as "accepting, for the loan or investment of deposits of money from the public, repayable on demand or otherwise, and able to retire by controls the project, and order or otherwise. "

TYPES OF BANKS

The financing needs in a modern economy is diverse, the variety and extent of large distinctive. Thus, different types of banks have been established to meet the diverse needs of the community. The banks in the organized sector can be classified in the following

. Commercial banks 1: -

The commercial banks are joint stock companies trade the currency and credit. In India, however, there is a mixed banking system before July 1969, all commercial banks under-73 and 26 non-scheduled banks, with the exception of the State Bank of India and its subsidiaries were under the control of the private sector. On July 19, 1969, however, 14mejor commercial banks with deposits of more than 50 corers were nationalized. In April 1980, six commercial banks of high standing have been supported by the government.

2.-OPERATIVE BANKS CO: -

Cooperative banks are a group of financial institutions organized under the provisions of the Co-operative Societies Act of the States. The main objective of cooperative banks is to provide cheap loans to their members. They are based on the principle of autonomy and mutual cooperation. cooperative banking system in India is shaped like a pyramid with three levels of a structure, consisting of:

3. Specialized banks: -