Banking is not a new term for anyone be it salaried people, farmers, homemakers, students, businessmen, or other professions. Also, Indian homes are well-versed with banks & banking. The universal truth states that banks are the backbone of the economy, therefore, strict rules and regulations are urged on the modus-operandi of banks.
Talking about RBI; It is the apex body that monitors and governs banks across India, also, responsible for regulating the monetary policy.
Classification of Bank in India
There are two categories – Scheduled Banks and Non-Scheduled Banks
The Scheduled banks include Cooperative banks and Commercial Banks. The commercial banks include small finance banks, private sector banks, public sector banks, regional rural banks and foreign banks. NOTE: Payments Bank is new to be counted under this category.
Cooperative banks include Rural banks and Urban banks.
There are FOUR types of Commercial Banks
PUBLIC SECTOR BANKS
These banks hold more than 75% of the total banking business in the nation. They are also called nationalized banks. The Government of India holds the majority stakes at these banks. Post-merger, SBI is the largest public sector banks and rank among the top 50 banks in the world.
There are 21 nationalized banks in India, here:
- STATE BANK OF INDIA
- BANK OF INDIA
- ALLAHABAD BANK
- BANK OF MAHARASHTRA
- CANARA BANK
- INDIAN OVERSEAS BANK
- IDBI BANK
- ORIENTAL BANK OF COMMERCE
- CENTRAL BANK OF INDIA
- CORPORATION BANK
- ANDHRA BANK
- UCO BANK
- BANK OF BARODA
- UNION BANK OF INDIA
- UNITED BANK OF INDIA
- VIJAYA BANK
- DENA BANK
- INDIAN BANK
- PUNJAB & SIND BANK
- PUNJAB NATIONAL BANK
- SYNDICATE BANK
PRIVATE SECTOR BANKS
Private shareholders hold the maximum stakes in private sector banks. Reserve Bank of India lays some of the rules and regulations. Here:
- HDFC BANK
- ICICI BANK
- AXIS BANK
- YES BANK
- INDUSIND BANK
- KOTAK MAHINDRA BANK
- DCB BANK
- BANDHAN BANK
- IDFC BANK
- CITY UNION BANK
- TAMILNADU MERCANTILE BANK
- NAINITAL BANK
- CATHOLIC SYRIAN BANK
- FEDERAL BANK
- JAMMU AND KASHMIR BANK
- KARNATAKA BANK
- DHANALAXMI BANK
- SOUTH INDIAN BANK
- LAKSHMI VILAS BANK
- RBL BANK
- KARUR VYSYA BANK
FOREIGN BANKS
A bank operating as a private entity in India but headquartered in a Foreign country is known as a foreign bank. They are governed by both the country; they are located in as well the country they have headquarters in. Here:
- CITI BANK
- STANDARD CHARTERED BANK
- HSBC BANK
REGIONAL RURAL BANKS
These banks were established to support the weaker & lesser fortunate section of the society like marginal farmers, laborers, small enterprises etc. they mostly operate at regional levels at different states and somehow have branches in urban areas as well. The features are:
- Supporting rural and semi-urban region financially
- Pension distribution & Wage disbursement of MGNREGA workers
- Added banking facilities like locker, debit cards, and credit cards
SMALL FINANCE BANKS
These banks take care of micro industries, un–organized sectors, small farmers et, RBI & FEMA are the governing bodies of these banks.
Here:
- AU SMALL FINANCE BANK
- CAPITAL SMALL FINANCE BANK
- FINCARE SMALL FINANCE BANK
- EQUITAS SMALL FINANCE BANK
- ESAF SMALL FINANCE BANK
- SURYODAY SMALL FINANCE BANK
- UJJIVAN SMALL FINANCE BANK
- UTKARSH SMALL FINANCE BANK
- NORTHEAST SMALL FINANCE BANK
- JANA SMALL FINANCE BANK
COOPERATIVE BANKS
Managed by the elected members of a managing committee & registered under the Cooperative Societies Act, 1912 are the cooperative banks. These are no-profit, no-loss banks and mainly serve entrepreneurs, industries, small–businesses, & self-employment.
PAYMENTS BANK
This is a new & upcoming model of banking in India. The maximum of INR 1 Lakh is acceptable per customer by these banks. Like other banks, they also offer para-banking services like net-banking, mobile banking. ATM cards, Debit cards, Credit cards, etc.