A. Types of Banks
Banking is directly or indirectly linked to a country’s trade and each individual’s existence. It is a business that handles credit, currency, and other types of financial transactions. There are 4 types of banks:
1. Central Bank: Banking is directly or indirectly linked to a country’s trade and each individual’s existence. It is a business that handles credit, currency, and other types of financial transactions.
2. Commercial Bank: Commercial banks are financial institutions that accept deposits and provide customers with short-term loans and advances. They provide medium-term and long-term loans to businesses in addition to short-term loans. Functions of Commercial Bank are
- Primary Functions: Accepting Deposits and Advancing of Loans are the two primary functions performed by commercial banks.
- Secondary Functions: Overdraft Facility, Discounting Bills of Exchange, Agency Functions, and General Utility Functions are the four secondary functions performed by commercial banks.
3. Cooperative Bank: Cooperative banks in India are established under the State Cooperative Societies Act and provide members with simple loans. Cooperative banks’ primary duty is to provide financial resources to rural people overall. Types of Cooperative Bank
4. Specialised Bank: Banks which are formed to cater to specific needs of society, country or people are called Specialised Banks. SIDBI, EXIM, NABARD, etc., are some of the prominent examples of Specialised banks in India.
Banking
Banking forms the backbone of a modern economy, facilitating transactions, safeguarding deposits, and providing access to credit. A robust banking sector supports economic growth; a World Bank study found that countries with well-developed banking systems experience faster GDP growth.
Banking in India is a vast network of financial institutions that plays a vital role in the nation’s economic development. This sector needs strong regulation to maintain stability across the economy. From personal finance to powering businesses, banking is essential for spending, investment, and overall growth. Innovations in Indian banking, such as online banking and UPI, have improved financial access and literacy for urban, suburban, and rural populations alike. This has helped connect rural markets and spread awareness of financial services.
The banking sector is governed under the Reserve Bank of India Act, 1934, and functions under the guidelines of the Reserve Bank of India (RBI). The entire banking sector in India is divided into various segments according to their undertakings and functions including
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Public Sector Banks |
Private Sector Banks |
Regional Rural Banks (RRBs) |
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Payments Banks (PBs) |
Small Finance Banks (SFBs) |
Local Area Banks (LABs) |
Table of Content
- Types of Banks
- Types of Banking
- Bank Account
- Debit Card
- Credit Card
- Fixed Deposit
- Recurring Deposit
- Payments
- Payment Apps
- Insurance
- Official Valid Document
- Credit
- Loan
- Bank Frauds
- List of Top 10 Banks in India in 2024
- List of the Top 10 Largest Private Banks Worldwide