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Banks in India

Banks in India can be classified into four categories. They are Given below is the bank types in India:-

  • Commercial Banks
  • Small Finance Banks
  • Payments Banks
  • Co-operative Banks


Central Bank

The Reserve Bank of India is the central bank of our country. In other words, the central bank of the country may also be known as the banker’s bank as it provides assistance to the other banks of the country and manages the financial system of the country, under the supervision of the Government. The functions of the central bank of a country:

  • Guiding other banks
  • Issuing currency
  • Implementing the monetary policies
  • Supervisor of the financial system

Cooperative Banks

These banks are organized under the state government’s actions. The main goal of Cooperative Banks is to promote social welfare by providing concessional loans. They are organized in the 3 tier structure

  • Tier 1 (State Level) – State Cooperative Banks (regulated by RBI, State Govt, NABARD)
    • Funded by RBI, government, NABARD. Money is then distributed to the public
    • Concessional CRR, SLR applies to these banks. (CRR- 3%, SLR- 25%)
    • Owned by the state government and top management is elected by members
  • Tier 2 (District Level) – Central/District Cooperative Banks
  • Tier 3 (Village Level) – Primary Agriculture Cooperative Banks

Regional Rural Banks (RRB)

These are special types of commercial Banks that provide concessional credit to the agriculture and rural sector. RRBs were established in 1975 and are registered under a Regional Rural Bank Act, 1976. RRBs are joint ventures between the Central government (50%), State government (15%), and Commercial Bank (35%). 196 RRBs have been established from 1987 to 2005. One RRB cannot open its branches in more than 3 geographically connected districts.

Payments Banks

  • Airtel Payments Bank
  • India Post Payments Bank
  • Fino Payments Bank
  • Jio Payments Bank
  • Paytm Payments Bank
  • NSDL Payments Bank

Commercial Banks

Organized under the Banking Companies Act, 1956. They operate on a commercial basis and their main objective is profit. They have a unified structure and are owned by the government, state, or any private entity. It tends to all sectors ranging from rural to urban. These banks do not charge concessional interest rates unless instructed by the RBI. Public deposits are the main source of funds for these banks. The commercial banks can be further divided into three categories:

  1. Public sector Banks – A bank where the majority stakes are owned by the Government or the central bank of the country.
  2. Private sector Banks – A bank where the majority stakes are owned by a private organization or an individual or a group of people
  3. Foreign Banks – The banks with their headquarters in foreign countries and branches in our country, fall under this type of banks
    Public Sector Banks Private Sector Banks Foreign Banks
    State Bank of India

    Allahabad Bank

    Andhra Bank

    Bank of Baroda

    Bank of India

    Bank of Maharashtra

    Canara Bank

    Central Bank of India

    Corporation Bank

    Dena Bank

    Indian Bank

    Indian Overseas Bank

    Oriental Bank of Commerce

    Punjab National Bank

    Punjab & Sind Bank

    Syndicate Bank

    Union Bank of India

    United Bank of India

    UCO Bank

    Vijaya Bank

    IDBI Bank Ltd.

    Catholic Syrian Bank

    City Union Bank

    Dhanlaxmi Bank

    Federal Bank

    Jammu and Kashmir Bank

    Karnataka Bank

    Karur Vysya Bank

    Lakshmi Vilas Bank

    Nainital Bank

    Ratnakar Bank

    South Indian Bank

    Tamilnad Mercantile Bank

    Axis Bank

    Development Credit Bank (DCB Bank Ltd)

    HDFC Bank

    ICICI Bank

    IndusInd Bank

    Kotak Mahindra Bank

    Yes Bank


    Bandhan Bank of Bandhan Financial Services.

    Australia and New Zealand Banking Group Ltd.

    National Australia Bank

    Westpac Banking Corporation

    Bank of Bahrain & Kuwait BSC

    AB Bank Ltd.


    CITI Bank

    Deutsche Bank

    DBS Bank Ltd.

    United Overseas Bank Ltd

    J.P. Morgan Chase Bank

    Standard Chartered Bank

    There are over 40 Foreign Banks in India