Banking Structure, NPAs, Basel Norms and Financial Inclusion
Banking Structure, NPAs, Basel Norms and Financial Inclusion
India's banking system includes public, private, foreign, regional rural, cooperative, small finance and payments banks. NTPC asks the history of bank nationalisation, the number of public sector banks, what an NPA is, the Basel norms, and financial inclusion schemes such as Jan Dhan.
1. Banking Structure
| Type | Key facts |
|---|---|
| Scheduled banks | Listed in the Second Schedule of the RBI Act |
| Public sector banks | 12 after the 2019-2020 mergers; State Bank of India the largest |
| Regional Rural Banks | Set up from 1975 on the Narasimham Working Group's advice |
| Small finance banks and payments banks | Licensed from 2015 on the Nachiket Mor Committee's advice; payments banks cannot lend |
| NABARD | 1982, apex bank for agriculture and rural development |
| SIDBI | 1990, for small industries |
Nationalisation: 14 banks on 19 July 1969 and 6 more on 15 April 1980
SBI formed in 1955 from the Imperial Bank of India
2. NPAs and Basel Norms
| Item | Facts |
|---|---|
| NPA (non-performing asset) | A loan whose interest or principal is overdue for more than 90 days |
| SARFAESI Act 2002 | Lets banks seize and sell secured assets |
| Insolvency and Bankruptcy Code 2016 | Time-bound resolution of bad loans |
| Basel norms | International bank capital standards set by the Basel Committee (Bank for International Settlements, Basel, Switzerland); Basel III adds capital and liquidity buffers |
3. Financial Inclusion
| Scheme | Year | Purpose |
|---|---|---|
| Pradhan Mantri Jan Dhan Yojana | 28 August 2014 | Zero-balance bank accounts with RuPay card |
| PM Jeevan Jyoti Bima Yojana | 2015 | Life insurance |
| PM Suraksha Bima Yojana | 2015 | Accident insurance |
| Atal Pension Yojana | 2015 | Pension for the unorganised sector |
| PM MUDRA Yojana | 2015 | Loans for small businesses (Shishu, Kishore, Tarun) |
| Stand-Up India | 2016 | Loans for SC, ST and women entrepreneurs |
✗ A loan becomes an NPA after 30 days of default | ✓ The threshold is more than 90 days overdue
✗ Payments banks can give loans | ✓ Payments banks can take deposits but cannot lend
हिंदी नोट: 19 जुलाई 1969 को 14 और 15 अप्रैल 1980 को 6 बैंकों का राष्ट्रीयकरण हुआ। विलय के बाद 12 सार्वजनिक क्षेत्र के बैंक हैं। जो ऋण 90 दिन से अधिक बकाया हो, वह NPA है। प्रधानमंत्री जन धन योजना 28 अगस्त 2014 को शुरू हुई।
Exam Pointer: Verified NTPC pattern: the number of public sector banks operating in India (August 2025 UG CBT-1). Nationalisation, NPA and scheme questions are tagged syllabus-based.
Pariksha Pattern: Every Way NTPC Asks This Topic
Pattern 1: Public sector banks and nationalisation
[PYQ: NTPC UG CBT-1 13-Aug-2025 Shift-2]
EXAM LEVEL
Q. How many public sector banks operate in India?
12, after the mergers of 2019-2020.
Answer: 12
EXAMATLAS LEVEL
Q. How many banks were nationalised in 1969 and in 1980, and from which bank was SBI formed?
14 in 1969 and 6 in 1980. SBI was formed in 1955 from the Imperial Bank of India.
Answer: 14 and 6; Imperial Bank of India
Pattern 2: Types of banks and institutions
[Pattern: syllabus-based, PYQ-style]
EXAM LEVEL
Q. Which institution is the apex bank for agriculture and rural development?
NABARD (1982).
Answer: NABARD
EXAMATLAS LEVEL
Q. What can a payments bank not do, and on whose recommendation were small finance banks and payments banks licensed?
It cannot give loans. The Nachiket Mor Committee.
Answer: Lend; Nachiket Mor Committee
Pattern 3: NPAs and Basel norms
[Pattern: syllabus-based, PYQ-style]
EXAM LEVEL
Q. After how many days overdue does a loan become an NPA?
More than 90 days.
Answer: 90 days
EXAMATLAS LEVEL
Q. Where is the Basel Committee based, and which 2016 law provides for time-bound resolution of bad loans?
At the Bank for International Settlements in Basel, Switzerland. The Insolvency and Bankruptcy Code 2016.
Answer: Basel, Switzerland; IBC 2016
Pattern 4: Financial inclusion schemes
[Pattern: syllabus-based, PYQ-style]
EXAM LEVEL
Q. When was the Pradhan Mantri Jan Dhan Yojana launched?
28 August 2014.
Answer: 28 August 2014
EXAMATLAS LEVEL
Q. Name the three loan categories of PM MUDRA Yojana, and which scheme provides pensions for the unorganised sector.
Shishu, Kishore and Tarun. The Atal Pension Yojana.
Answer: Shishu, Kishore, Tarun; Atal Pension Yojana
60-Second Revision
- 12 PSBs; nationalisation 1969 (14) and 1980 (6); SBI 1955.
- NABARD 1982; RRBs 1975; payments banks cannot lend.
- NPA after 90 days; SARFAESI 2002; IBC 2016; Basel Committee at BIS, Basel.
- Jan Dhan 28 Aug 2014; MUDRA (Shishu, Kishore, Tarun); APY, PMJJBY, PMSBY 2015.