Types and functions of LAB, RRB, cooperative Banks, Payment Banks and, Small Finance Banks

Banking is a system of financial institutions, such as scheduled Commercial banks, Local Area Banks, Regional Rural banks, cooperative Banks, Payment Banks, and small finance banks that provide various financial services to individuals, businesses, and governments. Let us study them here one by one. Local Area Banks (LABs): Local area banks are referred to as…

Evolution of Financial system: Phase I, Phase II and Phase III in India

(The India Financial System falls into 3 different phases: Phase I: Pre-1951 organisation, Phase II: 1951 to Mid-eighties organisation, Phase III: Post-Nineties Organisation) The evolution of the financial system in India may be divided into three broad phases: (I) the traditional phase (Pre 1951 organisation,) (II)   the transitional phase (1951 to Mid-eighties organisation,) and (iii)…

What is a financial System?

A financial system is a network of financial institutions – such as insurance companies, stock exchanges, commercial banks, etc. The financial system of a country plays a dynamic role in economic development by encouraging both savings and investment.   The system operates at national and global levels. Though they are not the same across the…