explain banking system of india. in detail
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Answer:
Banking system means the principal mechanism or network of institutions.
Through this group or network, financial or monetary services are controlled and created in the economy.
On the other hand, banking refers to accepting deposits and lending money.
The process of accepting and lending is carried out by banking companies and other financial institutions which are recognized under the banking system.
the structure of the Indian Banking System
The banking institutions in India are segregated or classified. Every group or type of bank has its functions to perform. They have their target market and sectors to work in.
The structure of the banking system in India is as follows:-
Reserve Bank of India
The apex banking institution or the Central Bank of the country, RBI as established under the RBI Act 1934 on 1st April 1935.
The Reserve bank of India controls regulates and is responsible for all the financial aspects of the economy.
It has various developmental and promotional functions to perform along with supervising and controlling the Indian banking system.
Explanation:
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