In earlier years, the prominent bankers could be classified into different groups and they operated in specific areas. Now in the changed circumstances, the importance of certain indigenous bankers has considerably declined due to the emergence of players like LoanMax of
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The semi-banking institutions registered under the Company Act, received deposits in monthly installments either in visual form or in the form of share capital that could be withdrawn. Certain types of fund managements are actually loose organizations involving a small number of persons to promote savings and for lending to members. Such loan offices were mostly found in some states. They collected funds through deposits and used to lend a portion of this money to landowners and their tenants. Of late, these loan offices have also started to get involved in trading activities for their augmenting profits.
In modern times, it is difficult to draw on absolute line of distinction between the moneylenders and the indigenous bankers. The important feature that distinguishes moneylenders from indigenous bankers is that the former does not usually deal with certain types of monetary transactions. Further, the money lenders do not generally accept deposits. Another point of difference is that the moneylenders finance the consumption needs whereas the indigenous bankers finance mainly trade. Moreover, the moneylenders carry on their operations mainly in the rural areas of the country.
However, the organized sector for institutional finance was amongst the institutions in the organized sector of the money market. It included the commercial banks, cooperative banks, regional rural banks etc. These are classified according to their different specific areas of operation. They also lend and accept deposits. They are mainly involved in,
1. Financing infrastructure development
2. Promoting Post Office Small savings
3. Financing energy needs
4. Tourism Infrastructure development
5. Non Banking financial activities
6. Housing finance
7. Merchant banks
8. Public and Private Sector Mutual Funds
