Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Draft guidance note on Audit of Banks 2019 edition

Posted on 28 November 2018,    
 2520 Views   Share Report

Knowledge of the Banking Industry

1.01 The banking industry is the backbone of any economy as it is essential for sustainable socio-economic growth and financial stability in the economy. There are different types of banking institutions prevailing in India which are as follows:

(a) Commercial Banks
(b) Regional Rural Banks
(c) Co-operative Banks
(d) Development Banks (more commonly known as ‘Term-Lending Institutions’)
(e) Foreign Banks
(f) Payment Banks
(g) Small Finance Banks
(h) EXIM Bank

1.02 All these banks have their unique features and perform various functions / activities subject to complying with the RBI guidelines issued from time to time. Section 6 of the Banking Regulation Act, 1949, lists down the forms of business in which banking companies may engage. The text of the Section 6 has been reproduced in Appendix I of the Guidance Note (given in CD accompanying the Guidance Note).

1.03 Of these banks, commercial banks are the most wide spread banking institutions in India. Commercial banks provide a number of products and services to general public and other segments of economy. Two of the main functions of commercial banks are (1) accepting deposits and (2) granting advances. In addition to their main banking activities, commercial banks also undertake certain eligible Para Banking activities which are governed by the RBI guidelines on Para Banking activities.

To know more in details, find the enclosed attachment

Tags :  


Popular News

GT ACCA caclubindia books caclubindia books Book

Browse by Category