Bank Bank means a Joint fund. It is an institution, which deals with money and credit.

There are different types of banks, some are:

Public sector bank the banks that are totally owned by the governments and are

meant for social welfare.

Private bank These banks are owned and run by private sectors.
Co-operate bank This banks are jointly run by group of individuals.
Scheduled bank According to RBI act 1934, this bank is registered under II

schedule.
Industrial bank It is known as a industrial loan companies. It also sells certificates

as an investment in shares.
Development bank It is a specialized financial sector and provides loan for the

development of the agriculture sector. They provide finance to both the private sector and
public sector.
Foreign bank These banks are incorporated in foreign country. They have set up

their branches in India.

Central bank It was establish in December 1911. It was the first bank to be started

by totally Indians and also by Indians. It is one of the top four banks of India.
Commercial bank-It is mainly used for the exchange of the bills, government bonds,
secured and unsecured trade and industrial units.

Agriculture banks It is banks, which lend money to the farmers. It was

established in the regional rural act 1976. The objective of the bank was to develop rural
economy by providing credit.
Non scheduled bank those banks which are not the part of the II scheduled RBI

act comes under non scheduled bank. They are not entitled to the privileges and facilities.
The development banks in India are classified as the following types:

Industrial development bank It includes Industrial finance corporation of India,

Industrial development bank of India and small industries development bank of India.

Agriculture development bank It includes the National bank for regional and rural
development.

Export import development bank It includes export import development bank of

India.

Housing development bank It includes national housing bank.

Difference between the commercial and scheduled bank

The commercial bank exist all round the world where as the scheduled bank
constitute the unique feature of the Indian banking system.

All the commercial banks in India is qualified as a scheduled bank.

All the scheduled bank must maintain a reserve capital of Rs 5 lakh in the reserve
bank of India.