The banking industry is vital for a nation's economy, managing finances including cash and credit, overseen by the central bank. In India, the Reserve Bank of India (RBI) acts as the supreme banking authority regulating monetary policy. Indian banking comprises various types like commercial banks, small finance banks, payments banks, and co-operative banks.

Commercial banks, governed by the Banking Regulation Act, 1949, primarily accept deposits and extend loans to individuals, corporates, and the government. These are divided into public sector banks, private sector banks, foreign banks, and Regional Rural Banks (RRB). Public sector banks, known as nationalized banks, contribute to over 75% of the total banking activity. Private sector banks, on the other hand, have major private shareholder ownership. Foreign banks are headquartered abroad but operate in India privately, while RRBs assist weaker sectors like agricultural laborers and small enterprises.

Small finance banks focus on financial inclusion for underbanked communities, aiding micro industries, farmers, and small business units. Payments banks, a recent banking model, accept limited deposits, offering services like ATM cards, debit cards, net-banking, and mobile-banking. Co-operative banks, managed by elected committees, serve entrepreneurs and small businesses in urban and rural sectors, often financing agricultural activities.

Scheduled banks are under the 2nd Schedule of the Reserve Bank of India Act, 1934, having minimal paid-up capital of Rs. 5 lakh and are under RBI regulation. Non-scheduled banks are excluded from this Schedule, often local area banks.

The Indian banking sector provides an array of products and services to meet varied customer needs, including savings accounts, fixed deposits, credit cards, loans, and more. Services to customers encompass balance checks, demand drafts, overdrafts, passbooks, IMPS, UPI, and RTGS.

In summary, the Indian banking sector is expansive, playing a key role in the nation's economic progression. With an extensive range of financial offerings, it provides solutions tailored to customer needs, bolstering their financial well-being.