In India, the banking sector plays a crucial role in economic development. Banks are financial institutions that act as intermediaries that facilitate various monetary transactions, including deposits, loans, and investments. There are several types of banks in India, each with its unique characteristics and functions. In this article, we will explore the different types of banks in India, their definitions, functions, and services offered, with examples for better understanding.
10 Types of Banks in India 2024
Banks are intermediaries between individuals and entities with excess funds and those in need of funds. They also play a significant role in managing and regulating the money supply within an economy. Let’s dive into the various types of banks and their respective functions.
| S.No | Types of Banks | Example of Banks |
|---|---|---|
| 1. | Central Banks | Reserve Bank of India |
| 2. | Public Sector Banks | SBI Bank of India Bank of Baroda |
| 3. | Private Sector Banks | HDFC Bank ICICI Bank Axis Bank |
| 4. | Foreign Banks | Deutsche Bank American Express Banking Corporation DBS Bank |
| 5. | Co-operative Banks | Abhyudaya Co-operative Bank Ltd. Saraswat Co-operative Bank Ltd. Janakalyan Sahakari Bank Ltd. |
| 6. | Small Finance Banks | AU Small Finance Bank Utkarsh Small Finance Bank Suryoday Small Finance Bank |
| 7. | Payment Banks | Airtel Payments Bank Paytm Payments Bank India Post Payments Bank |
| 8. | Rural Banks | Baroda Gujarat Gramin Bank Uttar Bihar Gramin Bank Saptagiri Grameena Bank |
| 9. | Specialised Banks | National Housing Bank (NHB) Bharatiya Mahila Bank (BMB) National Cooperative Development Corporation (NCDC) |
| 10. | Local Area Banks | Maharashtra Gramin Bank Kerala Gramin Bank Karnataka Vikas Grameena Bank |
Types of Banks in India – Detailed Overview
1. Central Bank
The Reserve Bank of India (RBI) is the central bank of India and is responsible for regulating and supervising the country’s banking system. It formulates and implements monetary policies, issues currency, manages foreign exchange reserves and acts as a banker to the government.
Services Offered by Central Bank
- Monetary policy formation
- Controlling inflation
- Currency issuance
- Banking regulation and supervision
- Overseeing payment systems
- Foreign exchange management
2. Commercial Banks
Commercial banks are the most common and widely known type of banks in India. They provide a wide range of services to individuals, businesses, and industries. Commercial banks can be further classified into three categories:
- Public Sector Banks
- Private Sector Banks
- Foreign Banks
Services Offered by Commercial Banks
- Savings account
- Current account
- Business account
- Fixed deposits
- Credit cards
- Personal loans
- Home loans
- Wealth management
- Online banking
- Public provident fund
- Overdraft facilities
3. Public Sector Banks
Public sector banks are owned and operated by the government. They play a crucial role in providing banking services to the masses and promoting financial inclusion. Public sector banks often have a vast network of branches, making them accessible to people across the country.
List of Public Sector Banks in India
- Bank of India (BOI)
- Bank of Maharashtra
- Bank of Baroda (BOB)
- Canara Bank
- Central Bank of India
- Indian Bank
- Indian Overseas Bank
- Punjab National Bank (PNB)
- Punjab and Sind Bank
- UCO Bank
- Union Bank of India
- State Bank of India (SBI)
4. Private Sector Banks
Private sector banks are owned and operated by private individuals or organizations. They are known for their innovative products, personalized services, and customer-centric approach. Private banks have gained popularity in recent years and have a significant presence in urban areas.
List of Private Sector Banks in India
- Axis Bank
- Bandhan Bank
- City Union Bank
- CSB Bank
- DCB Bank
- Dhanlaxmi Bank
- Federal Bank
- HDFC Bank
- ICICI Bank
- IndusInd Bank
- IDFC First Bank
- Jammu and Kashmir Bank
- Karnataka Bank
- Karur Vysya Bank
- Kotak Mahindra Bank
- Lakshmi Vilas Bank
- Nainital Bank
- RBL Bank
- South Indian Bank
- Tamilnad Mercantile Bank
- Yes Bank
5. Foreign Banks
Foreign banks are banks with their headquarters located outside India but operating within the country. These banks bring in global expertise and offer specialized services to individuals and businesses. Foreign banks contribute to the overall competitiveness and diversity of the Indian banking sector.
List of Foreign Banks in India
- AB Bank Ltd.
- Abu Dhabi Commercial Bank Ltd.
- American Express Banking Corporation
- Australia and New Zealand Banking Group Ltd.
- Barclays Bank Plc.
- Bank of America
- Bank of Bahrain & Kuwait BSC
- Bank of Ceylon
- Bank of Nova Scotia
- BNP Paribas
- Citibank N.A
- Cooperatieve Rabobank U.A.
- Credit Agricole Corporate & Investment Bank
- Credit Suisse A.G
- CTBC Bank Co., Ltd.
- DBS Bank India Limited
- Deutsche Bank
- Doha Bank Q.P.S.C
- Emirates Bank NBD
- First Abu Dhabi Bank PJSC
- FirstRand Bank Ltd
- HSBC Ltd
- Industrial & Commercial Bank of China Ltd.
- Industrial Bank of Korea
- J.P. Morgan Chase Bank N.A.
- JSC VTB Bank
- KEB Hana Bank
- Kookmin Bank
- Krung Thai Bank Public Co. Ltd.
- Mashreq Bank PSC
- Mizuho Bank Ltd.
- MUFG Bank, Ltd.
- NatWest Markets Plc
- PT Bank Maybank Indonesia TBK
- Qatar National Bank (Q.P.S.C.)
- Sberbank
- SBM Bank (India) Limited
- Shinhan Bank
- Societe Generale
- Standard Chartered Bank
- Sumitomo Mitsui Banking Corporation
- United Overseas Bank Ltd
- Woori Bank
6. Co-operative Banks
Cooperative banks are financial institutions that are owned and operated by their members, who are typically individuals, small businesses, or agricultural cooperatives. These banks provide banking services to their members and are regulated by the Banking Regulation Act, of 1949.
Services Offered by Cooperative Bank
- current account
- savings account
- agricultural finance
- microfinance
- cash reserve ratio
- forex services
- government scheme distribution
List of Cooperative Banks in India
- The Cosmos Co-operative Bank Ltd.
- Abhyudaya Co-operative Bank Ltd.
- Bharat Cooperative Bank (Mumbai) Ltd.
- Bombay Mercantile Co-operative Bank Ltd.
- Citizen Credit Co-operative Bank Ltd.
- Janakalyan Sahakari Bank Ltd.
- The Kalupur Commercial Co-operative Bank Ltd.
- Saraswat Co-operative Bank Ltd.
- Punjab & Maharashtra Co-operative Bank Ltd.
- The Shamrao Vithal Co-operative Bank Ltd.
- Tumkur Veerashaiva Co-operative Bank Ltd.
- The Surat People’s Co-operative Bank Ltd.
- Nagar Urban Co-operative Bank Ltd.
- Bharati Sahakari Bank Ltd.
- The Ahmedabad Mercantile Co-operative Bank Ltd.
- Rajkot Nagrik Sahakari Bank Ltd.
- Nutan Nagarik Sahakari Bank Ltd.
- Mehsana Urban Co-operative Bank Ltd.
- Sangli Urban Co-operative Bank Ltd.
- The Thane Janata Sahakari Bank Ltd.
7. Small Finance Banks
Small Finance Banks are a category of banks in India that primarily focus on providing financial services to unserved and underserved sections of the population, including small businesses, low-income individuals, and small farmers.
Services Offered by Small Finance Banks
- savings account
- small business loans
- microfinance
- agricultural finance
- remittance services
List of Small Finance Banks in India
- AU Small Finance Bank
- Ujjivan Small Finance Bank
- Equitas Small Finance Bank
- ESAF Small Finance Bank
- Fincare Small Finance Bank
- Suryoday Small Finance Bank
- Jana Small Finance Bank
- Capital Small Finance Bank
- North East Small Finance Bank
- Utkarsh Small Finance Bank
- Utkarsh CoreInvest Limited (formerly Utkarsh Micro Finance Limited)
- Jammu & Kashmir Small Finance Bank
- Utkarsh Small Finance Bank
8. Payment Banks
Payment Banks are a specialized category of banks that focus on providing basic banking services, including payments and remittance services, to individuals and small businesses. However, they cannot engage in lending activities.
Services Offered by Payment Banks
- savings account
- electronic fund transfer
- mobile banking
- financial services
List of Payment Banks in India
- Airtel Payments Bank
- Paytm Payments Bank
- India Post Payments Bank
- Fino Payments Bank
- Jio Payments Bank
- NSDL Payments Bank
- Aditya Birla payments Bank
9. Rural Banks
Rural Banks, also known as Regional Rural Banks (RRBs), are financial institutions that primarily operate in rural areas to cater to the banking needs of the rural population. They are established with the objective of promoting rural development and providing credit facilities to the agricultural sector.
Services Offered by Rural Banks
- Agricultural loans
- Microfinance
- Insurance
- Financial services
- Mobile banking
List of Rural Banks in India
- Baroda Gujarat Gramin Bank
- Uttar Bihar Gramin Bank
- Prathama Bank
- Assam Gramin Vikash Bank
- Kashi Gomti Samyut Gramin Bank
- Madhya Bihar Gramin Bank
- Saptagiri Grameena Bank
- Sarva Haryana Gramin Bank
- Malwa Gramin Bank
- Karnataka Vikas Grameena Bank
10. Specialized Banks
Specialized Banks are financial institutions that focus on providing specialized banking services to specific sectors or industries. They cater to the unique financial requirements of these sectors and play a significant role in their development.
Services Offered by Rural Banks
- industrial finance
- export-import finance
- development finance
- housing finance
- infrastructure finance
List of Specialized Banks in India
- Industrial Development Bank of India (IDBI Bank)
- Export-Import Bank of India (EXIM Bank)
- Small Industries Development Bank of India (SIDBI)
- National Bank for Agriculture and Rural Development (NABARD)
- National Housing Bank (NHB)
- Bharatiya Mahila Bank (BMB)
- National Cooperative Development Corporation (NCDC)
- Export Credit Guarantee Corporation of India (ECGC)
- Small Industries Development Bank of India (SIDBI
- National Securities Depository Limited (NSDL)
11. Local Area Banks
Local Area Banks (LABs) are small, geographically focused banks that cater to the banking needs of specific local areas, such as a district or a few contiguous districts. They aim to provide financial services to underserved areas and communities.
Services Offered by Local Area Banks
- current account
- loans
- microfinance
- customized banking service on the specific requirement of local communities
List of Local Area Banks in India
- Kerala Gramin Bank
- Karnataka Vikas Grameena Bank
- Andhra Pragathi Grameena Bank
- Madhya Bihar Gramin Bank
- Maharashtra Gramin Bank
- Punjab Gramin Bank
- Rajasthan Marudhara Gramin Bank
- Himachal Pradesh Gramin Bank
- Baroda Gujarat Gramin Bank
- Baroda Rajasthan Kshetriya Gramin Bank
- Uttar Bihar Gramin Bank
- Uttarakhand Gramin Bank
- Chaitanya Godavari Grameena Bank
- Paschim Banga Gramin Bank
- Assam Gramin Vikash Bank
Final Word
The banking sector in India is diverse and comprises various types of banks, each with its own unique characteristics, functions, and services. From central banks to commercial banks and specialized banks, they collectively contribute to the growth and development of India’s economy. Understanding the different types of banks in India helps individuals and businesses make informed decisions about their financial needs and aspirations.
FAQs
The Reserve Bank of India (RBI) serves as the central bank of India. It is responsible for regulating and supervising the banking system, formulating monetary policies, managing foreign exchange reserves, and ensuring financial stability.
Some of the largest commercial banks in India include the State Bank of India (SBI), Punjab National Bank (PNB), ICICI Bank, and HDFC Bank.
Some of the largest commercial banks in India include the State Bank of India (SBI), Punjab National Bank (PNB), ICICI Bank, and HDFC Bank.
Small Finance Banks are banks that primarily focus on providing financial services to unserved and underserved sections of the population, including small businesses and low-income individuals.
Payment Banks focus on providing basic banking services and payment solutions to individuals and small businesses, but cannot engage in lending activities.
Disclaimer
This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.
