List of Different Types of Banks in India

Central Bank

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The Reserve Bank of India is our country's central bank. Each country has a central bank that supervises all other financial institutions in the country. The central bank's primary responsibility is to act as the government's bank and to supervise and regulate all other financial institutions in the country.

Cooperative Banks

The state government has created legislation that governs these institutions. They assist agricultural and associated businesses with short-term financing. The primary goal of cooperative banks is to improve social welfare by offering low-interest loans. They're organised in a three-tiered hierarchy.

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Commerical Banks

The corporation was created under the Banking Companies Act of 1956. They operate on a business basis, with profit as their first priority. They have a cohesive structure and are owned by the government, state, or any private enterprise. They are in charge of all sectors, from the rural to the urban.

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Regional Rural Banks

These are special commercial banks that offer low-interest loans to agriculture and the rural economy. The Regional Rural Bank Act of 1976 governs RRBs, which were established in 1975. RRBs are commercial banks that are part of a 50/50 joint venture between the federal government and state governments (15%). (35 percent ).

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Local Area Banks

It was initially launched in India in 1996. These are organized by the private sector. The fundamental purpose of local community banks is to generate a profit. The Companies Act of 1956 governs local area banks. There are now just four Local Area Banks in existence, all of which are located in South India.

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Specialised Banks

Certain banks operate solely to fulfil a certain function. Several sorts of financial institutions are referred to as specialised banks. Here are a few examples, SIDBI (Small Industries Development Bank of India) - SIDBI can lend money to a small business or firm. Small firms may receive contemporary technology and equipment with the help of this bank.

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Small Finance Banks

As the name indicates, this type of bank provides loans and financial assistance to micro businesses, small farmers, and the unorganised sector of society. These institutions are supervised by the country's central bank.

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Payment Banks

The payments bank, a newly formed kind of banking, was conceptualised by the Reserve Bank of India. Payment bank account holders can only deposit up to Rs.1,00,000/- and cannot apply for loans or credit cards with this account. Internet banking, mobile banking, ATM card issuance, and debit card issuance are all services provided by payment banks.

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Government Banks

Government banks are the most frequent name for public sector banks, or PSBs. Although the government banks are not directly controlled by the government, the Government of India has a majority part in them, with more than 51% of the shares. In India, there are 12 government or public sector banks.

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private bank in india in 2022