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with names-Canara Bank, Punjab National Bank, State Bank of India, United . There are various types of banks which operate in our country to meet the. the Imperial Bank of India Act, , these three banks were directed to merge .. Various types of banks have developed to suit the economic development and. In India, the Reserve Bank of India (RBI) is the apex banking institution that regulates the monetary policy in the country. Scheduled banks can further be classified into commercial banks and cooperative banks. Commercial Banks can be further classified into public sector banks.

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Types Of Banks In India Pdf

There are different types of banks in every country. According to the Indian Banking Regulation Act defined banking as the 'Accepting the. Types of Banks and Their Functions – Banking Study Material & Notes There are several types of commercial banks functioning in India based upon different. Banking is defined as the accepting purpose of lending or investment of deposits, money from the public, repayable on demand or otherwise and withdrawable.

Industrial banks provide long-term loans to the industries. Industries require long-term capital for downloading machinery, construction of buildings, expansion of operations, etc. These capital required by industries is provided by industrial banks for industrialists to grow their businesses. Industrial banks accept long-term deposits from the public. They secure capital by issuing shares and debentures. Agricultural Banks Agricultural Banks are the banks which provide agricultural credit to the farmers. The Agricultural Development Banks provide medium term and long term credit. Agricultural Banks are established by the government to promote agricultural credit in the country. Savings Bank Savings Banks mainly concentrates on the mobilization of savings of the people. In India Post offices run by Postal department act as savings banks. Since Commercial banks are providing these facilities of savings banks to the public, the need for separate savings bank is fading. These banks accept deposits from the public. Foreign Exchange Banks are specialized banks in providing credit for the foreign trade. These banks usually have their branches in foreign countries for uninterrupted functioning of their services. But in recent times commercial banks are also financing foreign trade.

For example. The scheduled banks are those which are entered in the second schedule of RBI Act, Scheduled banks are those banks an which have a paid up capital and reserves of aggregate value of not less than Rs 5 lakhs and which satisfy RBI. On the other hand, non-schedule banks are those banks whose total paid up capital is less than Rs 5 lakh and RBI has no specific control over these banks. These banks are not included in the second schedule of RBI Act, They have been called by various names in different parts of the country as Shroffs, Sethus, Sahukars, Mahajans, Chettis and so on.

Banking Structure in India PDF – Revised 15-May-2018

They vary in their size from petty money lenders substantial shroffs. It acts as a bank to other banks, and a lender of last resort.

Through the process of accepting deposits and lending, commercial banks create credit in the economy. All the banking rules and regulations laid down by the RBI will be applicable on private sector banks as well. Given below is the list of private-sector banks in India-.

A foreign bank is one that has its headquarters in a foreign country but operates in India as a private entity. These banks are under the obligation to follow the regulations of its home country as well as the country in which they are operating. These are also scheduled commercial banks but they are established with the main objective of providing credit to weaker sections of the society like agricultural labourers, marginal farmers and small enterprises.

They usually operate at regional levels in different states of India and may have branches in selected urban areas as well. Other important functions carried out by RRBs include-. This is a niche banking segment in the country and is aimed to provide financial inclusion to sections of the society that are not served by other banks. The main customers of small finance banks include micro industries, small and marginal farmers, unorganized sector entities and small business units.

Co-operative banks are registered under the Cooperative Societies Act, and they are run by an elected managing committee. These work on no-profit no-loss basis and mainly serve entrepreneurs, small businesses, industries and self-employment in urban areas.

In rural areas, they mainly finance agriculture-based activities like farming, livestock and hatcheries. This is a relatively new model of bank in the Indian Banking industry. It was conceptualised by RBI and is allowed to accept a restricted deposit.

Banking in India | Types of Banks | Banking Classification - Paisabazaar

The amount is currently limited to Rs. They also offer services like ATM cards, debit cards, net-banking and mobile-banking. Home Banking. Classification of Banks in India. Scheduled Banks. Commercial Banks. Public Sector Banks. Private Sector Banks. Foreign Banks. Regional Rural Banks. Small Finance Banks. Co-operative Banks. Payments Bank. There are a total of 21 nationalised banks in the country namely below: These include banks in which major stake or equity is held by private shareholders.

Other important functions carried out by RRBs include- Providing banking and financial services to rural and semi-urban areas Government operations like disbursement of wages of MGNREGA workers, distribution of pensions, etc.

Para-Banking facilities like debit cards, credit cards and locker facilities. The objective behind the formation of RRBs was to serve large unserved population of rural areas and promoting financial inclusion. They have been created with a view to serve primarily the rural areas of India with basic banking and financial services.

However, RRBs may have branches set up for urban operations and their area of operation may include urban areas too. At present there are about 33 State Co-Operative Banks of which 19 are scheduled. These banks, till , were allowed to lend money only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centered around communities, localities work place groups. They essentially lent to small borrowers and businesses.

There are about 2, UCBs of which 56 were scheduled banks. Primary Credit Societies: It works on the grassroots level gram panchayat and village level. It virtually function like banks, but whose networth is less than Rs.

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Different types of banks (detailed explanation)

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