Definition of banking, Permitted business & Prohibited business.Legal framework of Banks- constitution of Banks, RBI Act 1934, Banking Regulation Act, 1949.

- RBI as Central Bank, Government as a regulator of Banks, Regulated by other authorities.

- Introduction, Licensing of Banking companies, Subsidiaries of Banking companies, control over management

- Introduction, Regulation of payment system, Regulation of interest rate, Internet Banking, Maintenance of cash reserve & liquid assets.

- Introduction, SBI & its Subsidiaries, Regional Rural Banks, nationalized banks, Application of Banking Regulation Act to Public Sector Banks, Disinvestment in Public Sector banks