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Trusted by 1L+ Indians
Want to Achieve any of the below Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Trusted by 3 Crore+ Indians
Want to Achieve any of the below
Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Trusted by 3 Crore+ Indians
Want to Achieve any of the below
Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Trusted by 3 Crore+ Indians
Want to Achieve any of the below Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Trusted by 3 Crore+ Indians
Want to Achieve any of the below Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Banking in India | Types of Banks | Banking Classification
Banking in India | Types of Banks | Banking Classification
Jun 18, 2024
15 Mins
The banking industry plays a crucial role in the economy of a country. It handles finances, including cash and credit, and is regulated by the central bank. In India, the Reserve Bank of India (RBI) is the apex banking institution that regulates the monetary policy in the country. The banking industry in India can be classified into different categories, such as commercial banks, small finance banks, payments banks, and co-operative banks.
Commercial banks are regulated under the Banking Regulation Act, 1949 and their primary function is to accept deposits and grant loans to the general public, corporate, and government. They can be further classified into public sector banks, private sector banks, foreign banks, and Regional Rural Banks (RRB). Public sector banks are nationalized banks that account for more than 75% of the total banking business in the country. Private sector banks are banks in which major stake or equity is held by private shareholders. Foreign banks have their headquarters in a foreign country but operate in India as a private entity. RRBs provide credit to weaker sections of the society like agricultural laborers and small enterprises.
Small finance banks are aimed at providing financial inclusion to sections of the society that are not served by other banks. They mainly cater to micro industries, small and marginal farmers, unorganized sector entities, and small business units. Payments banks are a relatively new model of banks allowed to accept a restricted deposit. They offer services like ATM cards, debit cards, net-banking, and mobile-banking. Co-operative banks are run by an elected managing committee and primarily serve entrepreneurs, small businesses, industries, and self-employment in urban areas. In rural areas, they mainly finance agriculture-based activities.
Scheduled banks are covered under the 2nd Schedule of the Reserve Bank of India Act, 1934. They have a paid-up capital of Rs. 5 lakh and above and are regulated by the RBI. Non-scheduled banks refer to the local area banks that are not listed in the Second Schedule of Reserve Bank of India.
The Indian banking industry offers a wide range of products and services to cater to the diverse needs of the customers. This includes savings accounts, fixed deposits, credit cards, personal loans, home loans, business loans, loan against property, and more. Customers can also avail themselves of various banking services such as balance checks, demand drafts, overdrafts, passbooks, IMPS, UPI, and RTGS.
In conclusion, the banking industry in India is diverse and plays a crucial role in the economic development of the country. With a wide range of banking products and services, customers have access to financial solutions that meet their needs and contribute to their financial well-being.
The banking industry plays a crucial role in the economy of a country. It handles finances, including cash and credit, and is regulated by the central bank. In India, the Reserve Bank of India (RBI) is the apex banking institution that regulates the monetary policy in the country. The banking industry in India can be classified into different categories, such as commercial banks, small finance banks, payments banks, and co-operative banks.
Commercial banks are regulated under the Banking Regulation Act, 1949 and their primary function is to accept deposits and grant loans to the general public, corporate, and government. They can be further classified into public sector banks, private sector banks, foreign banks, and Regional Rural Banks (RRB). Public sector banks are nationalized banks that account for more than 75% of the total banking business in the country. Private sector banks are banks in which major stake or equity is held by private shareholders. Foreign banks have their headquarters in a foreign country but operate in India as a private entity. RRBs provide credit to weaker sections of the society like agricultural laborers and small enterprises.
Small finance banks are aimed at providing financial inclusion to sections of the society that are not served by other banks. They mainly cater to micro industries, small and marginal farmers, unorganized sector entities, and small business units. Payments banks are a relatively new model of banks allowed to accept a restricted deposit. They offer services like ATM cards, debit cards, net-banking, and mobile-banking. Co-operative banks are run by an elected managing committee and primarily serve entrepreneurs, small businesses, industries, and self-employment in urban areas. In rural areas, they mainly finance agriculture-based activities.
Scheduled banks are covered under the 2nd Schedule of the Reserve Bank of India Act, 1934. They have a paid-up capital of Rs. 5 lakh and above and are regulated by the RBI. Non-scheduled banks refer to the local area banks that are not listed in the Second Schedule of Reserve Bank of India.
The Indian banking industry offers a wide range of products and services to cater to the diverse needs of the customers. This includes savings accounts, fixed deposits, credit cards, personal loans, home loans, business loans, loan against property, and more. Customers can also avail themselves of various banking services such as balance checks, demand drafts, overdrafts, passbooks, IMPS, UPI, and RTGS.
In conclusion, the banking industry in India is diverse and plays a crucial role in the economic development of the country. With a wide range of banking products and services, customers have access to financial solutions that meet their needs and contribute to their financial well-being.
Author
Pluto Team
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