The following are the different types of banks:
i. Commercial banks - These banks are governed by the Indian Banking Regulation Act (1949). They provide credit to the general public.
ii. Co-operative banks - These banks are governed by the provisions of the State Cooperative Societies Act. They provide cheap credit to their members only.
iii. Specialised banks - These banks provide credit to industrial units and export–import units.
iv. Central bank - This is the apex financial institution that regulates and controls the activities of all banks and financial institutions in the country.
v. Development banks - These banks provide financial assistance to business houses so that they can meet their capital requirements.
vi. Regional rural banks - These banks were established in 1975 to extend banking facilities to the rural areas and to provide credit to small traders, farmers, etc.
vii. Exchange banks - These banks remit money from one country to another, discount foreign bills, finance export and import of goods, etc.
viii. Indigenous banks - These are domestic banks carrying out banking activities in the country through generations. These banks mainly deal in “Hundis” (i.e., native bill of exchange) and promissory notes.
ix. Savings banks - These banks accept small deposits from the public having a fixed income. The main objective of these banks is to inculcate the habit of saving in people.
