COMMERCIAL BANKS

GENERAL CLASSIFICATION OF BANKS

Commercial banks in india are organised as joint stock companies and known as banking companies.

a). Scheduled banks
b). Non-scheduled banks.

a). Scheduled banks;   
       
     A bank in order to be designated as a scheduled bank have paid up a capital and reserve as precribed  by the act.

     The scheduled bank enjoy several privileges.The scheduled banks are also required to maintain with 
the RBI deposit in the form Cash Reserve Ratio based on its demand and liabilities at prescribed rate.
     Scheduled bank include nationalised banks, SBI and its subsidiaries, Private Sector bank and
foreign bank.

b). Non scheduled banks;
                                                                                                  
     Non scheduled banks are those which are not include in the 2nd schedule to RBI Act.
     They are not entitled to get facilities like refinance and rediscounting of bills, etc. from RBI.