Types of Banks in India different types banks established country

A Bank is a financial organization which accepts deposits that can be withdrawn on

demand and also lends money to individuals and business houses that need it.

Central Bank

The Central Bank maintains record of Government revenue and expenditure under various heads. It maintains deposit accounts of all other banks and advances money to other banks, when needed.

The Reserve Bank of India is the central bank of the country entrusted with monetary stability, the management of currency and the supervision of the financial as well as the payments system.

The RBI was established on April 1, 1935

Commercial Bank

Commercial banks may be defined as, any banking organization that deals with the deposits and loans of business organizations

Commercial banks issue bank checks and drafts, as well as accept money on term deposits.  Commercial banks also act as moneylenders, by way of installment loans and overdrafts.

These banks accept deposits and grant short-term loans and advances to their customers. Moreover, commercial banks also provide medium-term and long-term loans to business enterprises.

Public Sector Banks

where majority stake is held by the Government of India.

Examples of public sector banks are: SBI, Bank of India, Canara Bank, etc.

These banks have majority of stake held by the Government of India or RBI. Examples of public sector banks are: State Bank of India, Corporation Bank, Bank of Baroda

Co-operative banks

People who come together to jointly serve their common interest often form a co-operative society under the Co-operative Societies Act. When a co-operative society engages itself in banking business it is called a Co-operative Bank. Cooperative banks are the primary financiers of agricultural activities, some small-scale industries and self-employed workers.

Co-operative banks function on the basis of "no-profit no-loss".

Anyonya Co-operative Bank Limited (ACBL) is the first co-operative bank in India located in the city of Vadodara in Gujarat.

Primary Credit Societies

These are formed at the village or town level with borrower and non-borrower members residing in one locality. The operations of each society are restricted to a small area so that the members know each other and are able to watch over the activities of all members to prevent frauds.

Regional Rural Banks (RRB)

The Rural Banking is the new buzz in the banking sector which has made a lot of significance. Basically the main aim of these banks is to build the financial infrastructure right from the bottom i.e. the agricultural sector. Many banks have aggressively initiated the process of penetration in the rural market in order to stimulate the growth process.

some of the banks which are working for the rural areas.

1. United bank of India
2. Syndicate bank
3. Co-operative Bank
4. NABARD

Private Sectors Banks

These banks have majority of share capital of the bank held by private individuals. These banks are registered as companies with limited liability. These are banks majority of share capital of the bank is held by private individuals. These banks are registered as companies with limited liability. : ICICI Bank, Axis bank, HDFC, etc.

Foreign Banks

These banks are registered and have their headquarters in a foreign country but operate their branches in our country. Some of the foreign banks operating in our country are Hong Kong and Shanghai Banking Corporation (HSBC), Citibank, American  bank

Specialized Banks

There are some banks, which cater to the requirements and provide overall support for setting up business in specific areas of activity. EXIM Bank, SIDBI and NABAR

Export Import Bank of India (EXIM Bank)

If you want to set up a business for exporting products abroad or importing products from foreign countries for sale in our country, EXIM bank can provide you the required support and assistance.

Small Industries Development Bank of India (SIDBI)

If you want to establish a small-scale business unit or industry, loan on easy terms can be available through SIDBI. It also finances modernization of small-scale industrial units, use of new technology and market activities. The aim and focus of SIDBI is to promote, finance and develop small-scale industries.

National Bank for Agricultural and Rural Development (NABARD)

It is a central or apex institution for financing agricultural and rural sectors. If a person is engaged in agriculture or the activities like handloom weaving, fishing, etc. NABARD can provide credit, both short-term and long-term, through regional rural banks. It provides financial assistance, especially, to co-operative credit, in the field of agriculture, small-scale industries, cottage and village industries handicrafts and allied economic activities in rural areas.

Merchant Bank

The merchant bankers are those financial intermediary involved with the activity of transferring capital funds to those borrowers who are interested in borrowing.