In India, organized banking first appeared in the late 1800s. The earliest profit-oriented bank in the nation is the “Bank of Calcutta,” which was established in 1806 and is referred to as the “State Bank of India.” There are 34 types of bank in India, including 12 banks in the public sector and 22 banks in the private sector. Different types of banks have promoted saving and helped the nation’s economy.
How Many Types of Bank in India?
Depending on the tasks they complete and the authorities they interact with, there are many sorts of banks. The following are types of bank in India:
The Reserve Bank of India is the governing body of our nation. Every nation does have a central bank that regulates all other financial organizations.
A state law that has been passed regulates these institutions. They offer short-term loans to businesses in the agricultural and associated sectors.
The firm was founded in 1956 under the Banking Companies Act. They operate on a business model, with profit being their primary objective.
Regional Rural Banks (RRB)
These special kinds of commercial banks offer lower interest rates on loans to the agricultural sector and the rural economy. RRBs were established in 1975, and the 1976 Regional Rural Bank Act sets down their regulations.
Local Area Banks (LAB)
It was initially introduced in India in 1996. The commercial sector organizes these, and Local Area Banks’ primary objective is financial gain.
Some banks only exist to fulfil a specific function. The “specialized banks” basically refers to various financial institutions.
Small Finance Banks
As its name suggests, it offers loans and financial assistance to small farmers, unorganized businesses, and other societal segments.
The payments bank is a recently created financial structure conceptualized by the Reserve Bank of India. People that have a payment bank account can only deposit up to Rs. 1,000,000 and cannot use this account to apply for credit cards and loans.
Types of Commercial Bank in India
- Public Sector Banks: The nation’s central bank or the government serves as the denominating shareholders.
2. Private Sector Banks: The denominating shareholder may be an individual, a private company, or a particular group of people.
3.Foreign Banks: These banks have branches in India, but their main headquarters and operational systems are located abroad.
Types of Accounts in Bank in India
- Savings Bank Account
- Current Bank Account
- Salary Account
- Fixed Deposit Account
- Recurring Deposit Account
- Non-Resident Ordinary (NRO) Savings Accounts
- Non-Resident Ordinary (NRO) Fixed Deposit Accounts
- Non-Resident External (NRE) Savings Accounts
- Non-Resident External (NRE) Fixed Deposit Accounts
- Foreign Currency Non-Resident (FCNR) Account
All these banks have their own policy along with terms and conditions that make them unique. You should know about them before availing their service.