HomePostal-ServicesTelecomCouriersBankingPowerVisaPassportEmbassiesATMsBanking has been

originated in the affluent cities of Italy in the 14th century and was introduced in India in the late 18th
century. Banks like the Bank of Hindustan, The General Bank of India, The State Bank of India, were the
first banks which were set up in the country in the year 1770, 1786 and 1806 respectively.

The banking sector has witnessed a rapid growth in India in the past few decades and has come a long
way. The Reserve Bank of India functions as the Central bank and has a control over all the nationalized
banks of India.

The various types of Banks in India can be categorized in the following categories:
Savings banks

The savings banks are especially for those who belong to the low income groups or those who are
salaried. The savings banks function with the intention to help people culminate the saving habits, which
is especially for those who belong to the lower income groups or those who are salaried. The post office
is also in a way a saving bank, where people can open recurring accounts to save money.

Commercial Banks

The main function of these types of banks is to give financial services to the entrepreneurs and
businesses. It gives financial to the businessmen like providing them with debit cards, banks accounts,
short term deposits, etc. with the money deposited by people in such banks. The commercial banks also
lend money to these businessmen in the form of secured loans, unsecured loans, credit cards, overdrafts
and mortgage loans. It got the tag of a nationalized bank in the year 1969 and hence the various policies
regarding the loans, rates of interest, etc are controlled by the Reserve Banks of India.

The further classifications of the commercial banks are private sector banks, public sector banks, regional
banks and foreign banks.
Private Sector Banks
These banks are owned and operated by the private institutes and are controlled by the market forces.
The greater share of the private sector banks is held by private players and not the government. Some
good example of Private sector banks are Kotak Mahindra bank, ICICI Bank, HDFC Bank, Axis Bank, etc.
Public Sector Banks
These type of banks are operated by the Government. Their main focus is to serve the people rather earn
profits. State bank of India, Punjab National bank, State bank of Patiala, Allahabad Bank, etc. are the
some of the important examples of Public sector bank.
Regional Banks
The regional banks are those banks which can only operate in the areas specified by government of
India. These banks are owned by sponsor bank and Sate Government. They came into operation with the
objective of providing credit to the agricultural and rural regions and were brought into effect in 1975 by
the Reserve Bank of India (RRB) Act . Prathama Bank located in Moradabad, UP is one such example of
regional rural bank.

Co-operative Banks

The co-operative sector is very much useful for rural people and provide finance to farmers, salaried
people, small scale industries, etc. These banks are controlled, owned, managed and operated by the
cooperative societies and came into existence under Cooperative Societies Act in 1912.

The co-operative banking sector is divided into the following categories.
1. State co-operative Banks
2. Central co-operative banks
3. Primary Agriculture Credit Societies

Investment Banks

Investment banks are financial institutions which provide financial assistance to its customers. Their
clients include government organizations, individuals or businesses. When there is an acquisition or
merger, these customers are provided with necessary support like foreign exchange, foreign trading,
marketing, sale of equities, fixed income instruments, etc. These banks, apart from capital raising, also
render valuable financial advise to their various kinds of businesses and customers. Banks like the Bank
of America, Deutsche Bank, Citi Bank, etc. are some examples of Investment Bank.
Specialized Banks
The main function of specialized banks is to provide unique services to their customers. Some example of
specialized banks are foreign exchange banks, industrial banks, development banks, export import
banks, etc. Specialized banks also provide financial support to various kinds of projects and businesses
who have to export or import their services or goods.

Central Bank
It is called the banker's bank in our country. The Reserve Bank of India is the central Bank that is fully
owned by the Government. It is governed by a central board (headed by a Governor) appointed by the
Central Government. It issues guidelines for the functioning of all banks operating within the country. The
monetary control is the primary function of a central bank and is also considered as the lender to various
commercial banks.




















There are various types of banks. The necessity for the variety among these banks is
because each bank is specialized in their own field. Each bank has its own principles
and policies. Different rates of interests are also noted among these banks. All these
banks are listed as below:
Savings Banks these banks are suited for employees with a monthly salary. Low
waged people may open an account in the savings bank.
Commercial Banks These bank collects money from people in various sectors and
gives the same as a loan to business men and make profits in interests these business
men pay. Since the loan is large the interest rates are also high.
Industrial Development Bank these banks are committed towards enhancing the
growth of industries by providing loans for a very long period of time. This is vital for
the long term growth of the industries.
Land Developments Bank these banks promote growth in the food sector, by
giving loans to farmer at a relatively lower interest rate. The loan is usually given on
the basis of land. If a farmer has lots of agricultural fields then the more will be the
loan provided.
Indigenous Banks native banks. They are normal moneylenders; only this time,
handling huge amounts of money. They collect money from the community and
provide loans to business men and industrialists for a short amount of time.
Mortgage Banks these banks are specialized in providing mortgage loans alone. In
order to sell loans they depend solely on the secondary market.
Spare Bank these banks are present in Norway. They promote both savings and
commercial facilities to the both people and organizations in Norway.
Federal or National Banks these banks control the principles and policies of other
banks across the country. These banks are managed and run by the government. This
bank provides benchmarks which other banks should follow.
Co operative banks: co operative banks as the name suggests gets money from the
general community without any bias and provide loans to all sections of people in the
neighborhood. Their motto is not profit alone, but service.
Exchange Banks these banks will be available in more than a single country. They
provide services for the buying and selling of gold and silver; transactions will be in
foreign currencies.
Consumers Bank these are consumer friendly banks; they encourage the consumer
in buying commercial products and provide options for easy repay of the loan amount.
Community Development Banks these banks provide services to the community;
where there has been nothing or very little development over the years.
Credit Unions they act just like a co operative bank except that they provide
services to only one employee union in the community. Low interest rates and easy
installment paybacks are features of this bank
Postal savings bank: these banks are oriented with postal services. People save money
for a defined period of time and are paid with standard interest rates.
Private Banks these banks are not for the general public or community. They serve
entirely for private personnels assets and transactions alone.
Offshore Banks they are also private banks except that they have little tax to pay
for their transactions; there is very little regulation for this bank.
Ethical Banks as the name implies ethical banks promote candid transactions;
between various customers of the bank. Policies and rules are transparent in nature.
Internet Bank provides banking facilities only via internet. There will be no
physical contact with the bank. All transactions are permitted only through online.
Investment Banks these banks are pertinent to large organizations investment
ventures across the industry. They provide advice in the investments and promote
corporate transactions.
Merchant Banks these banks exist for a long time. They promote investing in
organizations that reap huge benefits for a long time rather than brand new
organizations.
Universal Banks these banks have a wide spectrum of financial assistances to
provide. Insurances to stocks, they promote everything across all countries around the
globe.
Islamic Banks these banks are based on the principles of the religion Islam. There
are no interests for loans acquired from this bank. Service charges may apply.
The above are some of the types of banks around the globe. They may be further
classified according to their role and designation,