Branch Banking System and Unit Banking System

Meaning, Features, Advantages and Disadvantages of Branch Banking System

 

Meaning:

Branch banking refers to that system of banking in which a bank establishes its head office in some big city and operates the various branches all over the country. Some of its branches may be in foreign countries. Thus, in branch banking, a bank has a large network of branches scattered all over the country. Branch banking is popular in India, Britain, Canada, France, Germany etc.

According to Edward. W. Reed, “Branch banking exists when a single bank conduct banking operations at two or more places.”

Features of Branch Banking:

a.      A bank renders its banking activities at two or more places.

b.     The head office of the bank and all its branches are under single ownership and management.

c.      Head office has the overall control over the working of various branches.

d.     Branches can be opened in the same city, state or the country, even in the foreign country also.

Meaning of Scheduled Bank and Non- Scheduled Bank, Public Sector Bank and Private Sector Bank

Meaning of Scheduled Bank and Non- Scheduled Bank:

 

   Scheduled Bank:

Scheduled Commercial Banks are those banks which are included in the second schedule of the RBI Act of 1934. They have to keep minimum stipulated statutory cash reserves with the RBI. Following are the condition to be fulfilled for inclusion in the second schedule:-

a. The bank must have a minimum paid up capital and total reserves of Rs.5 lakh.

b. It must satisfy the RBI that its operations are not detrimental to the interest of the depositors.

c. It must be either a company, or a corporation, or an institution notified by the central Government or a state co-operative bank.

A Brief Explaination of Presidency Bank & Imperial Bank of India

Presidency Bank:

The East India company laid the foundation for modern banking in the first half of the 19^th century with the establishment of the following three banks:-

1.     Bank of Bengal in 1806.

2.     Bank of Bombay in 1840.

3.     Bank of Madras in 1843.

Banking Books

Banking is one of the important subject for the students of commerce. In some areas it is a part of course curriculum from class XI. In the graduation level one can choose Banking as a subject of specialization. Irrespective of the stream one can go for banking exam to get for banking jobs in India and international Level.  So from class XI to Graduation, Masters to Job market every respect Banking has its own identity of importance. Thus it is an endeavor to list out the names of some Banking books which may help all segment of stakeholders. Time to time I will update the list. So some of the books are as listed below: