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Types of Banks in India – The Banking Concept

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types of Banks in India

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 BanksThe 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: 

  1. STATE BANK OF INDIA
  2. BANK OF INDIA
  3. ALLAHABAD BANK
  4. BANK OF MAHARASHTRA
  5. CANARA BANK
  6. INDIAN OVERSEAS BANK
  7. IDBI BANK
  8. ORIENTAL BANK OF COMMERCE
  9. CENTRAL BANK OF INDIA
  10. CORPORATION BANK
  11. ANDHRA BANK
  12. UCO BANK
  13. BANK OF BARODA
  14. UNION BANK OF INDIA
  15. UNITED BANK OF INDIA
  16. VIJAYA BANK
  17. DENA BANK
  18. INDIAN BANK
  19. PUNJAB & SIND BANK
  20. PUNJAB NATIONAL BANK
  21. 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: 

  1. HDFC BANK
  2. ICICI BANK
  3. AXIS BANK
  4. YES BANK
  5. INDUSIND BANK
  6. KOTAK MAHINDRA BANK
  7. DCB BANK
  8. BANDHAN BANK
  9. IDFC BANK
  10. CITY UNION BANK
  11. TAMILNADU MERCANTILE BANK
  12. NAINITAL BANK
  13. CATHOLIC SYRIAN BANK
  14. FEDERAL BANK
  15. JAMMU AND KASHMIR BANK
  16. KARNATAKA BANK
  17. DHANALAXMI BANK
  18. SOUTH INDIAN BANK
  19. LAKSHMI VILAS BANK
  20. RBL BANK
  21. 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: 

  1. CITI BANK
  2. STANDARD CHARTERED BANK
  3. 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: 

  1. Supporting rural and semi-urban region financially
  2. Pension distribution & Wage disbursement of MGNREGA workers
  3. Added banking facilities like locker, debit cards, and credit cards 

SMALL FINANCE BANKS 

These banks take care of micro industries, unorganized sectors, small farmers et, RBI & FEMA are the governing bodies of these banks.
Here: 

  1. AU SMALL FINANCE BANK
  2. CAPITAL SMALL FINANCE BANK
  3. FINCARE SMALL FINANCE BANK
  4. EQUITAS SMALL FINANCE BANK
  5. ESAF SMALL FINANCE BANK
  6. SURYODAY SMALL FINANCE BANK
  7. UJJIVAN SMALL FINANCE BANK
  8. UTKARSH SMALL FINANCE BANK
  9. NORTHEAST SMALL FINANCE BANK
  10. 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, smallbusinesses, & 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. 

 

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