INDIAN BANKING SECTOR Keeping money in India, in the cutting edge sense, began in the most recent decade of the eighteenth century. Among the primary banks were the Bank of Hindustan, which was built up in 1770 and sold in 1829– 32; and the General Bank of India, set up in 1786 however bombed in 1791.[1][2][3][4] The biggest bank, and the most established still in presence, is the State Bank of India (S.B.I). It began and began functioning as the Bank of Calcutta in mid-June 1806. In 1809, it was renamed as the Bank of Bengal. This was one of the three banks established by an administration government, the other two were the Bank of Bombay in 1840 and the Bank of Madras in 1843. The three banks were converged in 1921 to shape the Imperial Bank of India, which upon India's autonomy, turned into the State Bank of India in 1955. For a long time the administration banks had gone about as semi national banks, as did their successors, until the point that the Reserve Bank of India[5] was set up in 1935, under the Reserve Bank of India Act, 1934.[6][7] In 1960, the State Banks of India was given control of eight state-related banks under the State Bank of India (Subsidiary Banks) Act, 1959. These are currently called its partner banks.[6] In 1969 the Indian government nationalized 14 noteworthy private banks, one of the huge bank was Bank of India. In 1980, 6 more private banks were nationalised.[8] These nationalized banks are the dominant part of loan specialists in the Indian economy. They overwhelm the managing an account area in light of their substantial size and broad networks.[9] The Indian saving money segment is extensively grouped into planned and non-booked banks. The booked banks are those included under the second Schedule of the Reserve Bank of India Act, 1934. The booked banks are additionally ordered into: nationalized banks; State Bank of India and its partners; Regional Rural Banks (RRBs); outside banks; and other Indian private division banks.[7] The term business banks alludes to both planned and non-planned business banks directed under the Banking Regulation Act, 1949.[10] For the most part the supply, item range and reach of saving money in India is genuinely develop despite the fact that compass in provincial India and to the poor still remains a test. The legislature has created activities to address this through the State Bank of India extending its branch arrange and through the National Bank for Agriculture and Rural Development (NABARD) with offices like microfinance. PAYMENT Bank Payments bank is another model of banks conceptualized by the Reserve Bank of India (RBI). These banks can acknowledge a confined store, which is as of now constrained to ₹1 lakh per client. These banks may not issue advances or Visas, but rather may offer both current and investment accounts. Installments banks may issue ATM and platinum cards, and offer net-keeping money and portable managing an account. The banks will be authorized as installments banks under Section 22 of the Banking Regulation Act, 1949, and will be enlisted as open constrained organization under the Companies Act, 2013. There are six payments banks Aditya Birla Idea Payments Bank Ltd. Airtel Payments Banks Ltd. Fino Payments Bank Ltd. India Post Payments Bank Ltd. Jio Payments Bank Ltd. PayTm Payments Bank Ltd. Small finance banks To advance the goal of financial inclusion the RBI allowed approval in 2016 to entities to set up small finance banks. From that point forward, each of the ten got the fundamental licenses. A small finance bank is a niche type sort of bank to oblige the necessities of individuals who generally have not utilized scheduled banks. Every one of these banks is to open no less than 25% of its branches in zones that don't have some other bank offices (unbanked locales). A finance bank should hold 75% of its net attributes in credits to firms in need segment loaning, and half of the advances in its portfolio must be under ₹25 lakh (US$38,000). There are ten small finance banks AU Small Finance Bank Ltd. Capital Small Finance Bank Ltd. Equitas Small Finance Bank Ltd. ESAF Small Finance Bank Ltd. Fincare Small Finance Bank Ltd. Jana Small Finance Bank Ltd. North East Small Finance Bank Ltd. Suryoday Small Finance Bank Ltd. Ujjivan Small Finance Bank Ltd. Utkarsh Small Finance Bank Ltd. Review of banking sector of india -2017 Year of crisis for the banking sector. Scams:- Indian banking sector in financial year 2017 has seen over number of scams which has outshone the performance of banks in India especially in public sector banks .scams are not new in the history of banking sector whether be it in India or elsewhere in India. One of the biggest scams seen was the scam of the Lehman brothers in 2008 banks Americas 4th largest banks which filed for the bankruptcy setting off financial wrecking ball that demolished the global stock market pushing the world economy into what is regarded as one of the generation crisis. In what is regarded as the biggest scam in Indian banking history , Punjab national banks India’s second biggest banks said in February 2017 that it has been defrauded with Rs 12,954 crore approximately by the celebrity jeweler nirav modi and his uncle mehul choksi under gitanjali gems. The two jewelers allegedly raised credit from overseas banks based on fraudulent guarantees issued in collusion with rogue PNB staff. Mr. Choksi and Mr. Modi fled the country in January around a month before PNB filed its first complaint against them. The whereabouts of both the alleged fraudsters are unknown even as their passport have been revoked. The biggest loan specialist of the nation, State Bank of India (SBI) is at the front line of a Rs. 824.15-crore bank extortion including Kanishk Gold Pvt Ltd. The Enforcement Directorate (ED) propelled an examination concerning the misrepresentation, and quests were being led at the premises of organization staff members, an ED official said. The CBI enrolled a body of evidence against Kanishk Gold, blaming it for duping a consortium of 14 banks driven by SBI. The adornments organization had taken an advance of Rs. 824.15 crore from the consortium and the advance record has turned terrible. Non-performing assets Non-performing assets are those loans extended by the banks to the borrower with promise to return it in specified period of 90 days but if the borrower fails to pays it back to banks in 90 days it become an non-performing assets. It is an assets because it is a prepaid amount to be received but not yet received. It becomes nonfunctional for the banks it is also called by the name bad loans. Rise of non-performing assets in India since 2015:- India's bad loans are fifth highest in the world since 2015. While at confront esteem it would appear as though the nature of benefits disintegrated after Narendra Modi came to control, the fact of the matter is totally extraordinary. The NPA outline shared by Reserve Bank of India's Deputy Governor N S Viswanathan amid his discourse demonstrates that India's bad loans were just 2.36% of every 2011, which continued flooding, rather gradually, until March 2015 when it climbed drastically. Reason: The RBI fixed standard for NPA acknowledgment in 2015, after which banks needed to perceive a few resources as NPA, which generally were viewed as 'standard resources'. This development in focused on resources was, thus, the result of fast credit development amid 2006-2011, N S Viswanathan said in his ongoing discourse The growth of npa in the banking sector has increased unprecedently since 2015 and RBI suspect that banks are still under reporting the numbers. In April last year, RBI asked all banks to reflect in their notes if their NPAs differed from that of regulator’s. As a result, we witnessed massive NPA numbers difference in banks like the State Bank of India, HDFC Bank, Axis Bank, Yes Bank, IndusInd Bank. Some of these banks were fined heavily for underreporting bad loans. Yes Bank was fined Rs 6 crore, Axis Bank and IndusInd were fined Rs 3 crore, and IDBI Bank was fined Rs 2 crore. While the RBI tightening over banks, the newly-adopted Insolvency and Bankruptcy (Code) laid down the process of dealing with these NPAs. First, ‘Dirty Dozen’, a list of twelve biggest corporate defaulters was released, which went for bankruptcy resolution immediately. Second, another list of 28 companies was released that will also undergo insolvency process. Third, the RBI, this February announced a complete overhaul of the asset resolution process, setting a strict timeline and criteria for reporting NPAs and resolving them. Impact of npa on banks in india Arrest of vijay malya the business tycoon brought out the problems of bad loans in banks bt who knew it was juast a tip of an iceberg. Thousands crores of moey of the banks are useless in the name of bad loans which is badly effecting the total banking sector and due to which all economy is on the verge of disintegration. As per the report indian economy is saddled with higest amount of bad loans in the world which is the high point for the government to think over the matter. India is the fastest growing economy of the world which is totally dependent on the banking sector but these npa are those pushing lids which each time bring the economy back into its sufferings . npa is that