Structure of Indian Banking system

On one walk from CBD Belapur station you can pass a State Bank branch, a private-sector bank, a co-operative bank that your housing society deals with, and an ATM of a bank you have never heard of. They look alike at the counter, but the law treats them as different kinds of institution, each with its own route into the Banking Regulation Act. Who sits above all of them, and how does the statute sort them into tiers?

In two minutes

The Indian banking system is a pyramid: the Reserve Bank of India regulates at the top; below it sit commercial banks (banking companies, State Bank of India, subsidiary and corresponding new banks, regional rural banks), co-operative banks, and specialised development institutions, each defined in s.5 or Part V of the Banking Regulation Act.

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