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 IDFC 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. HSBC 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