Answer the following questions in short:
What are the different types of banks?
What are the different types of banks?
The following are the different types of banks:
i. Commercial banks - These banks provide credit to the general public. They can be classified into public sector banks, private sector banks and foreign sector banks.
ii. Co-operative banks - These banks provide cheap credit to their members only and can be classified into primary credit banks, district central co-operative banks and state co-operative banks.
iii. Specialised banks - These banks provide credit to industrial units and export–import units. Some examples are Export-Import Bank of India (EXIM Bank) and Small Industries Development Bank of India (SIDBI).
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. Industrial Finance Corporation of India (IFCI) is an example of development bank.
vi. Regional rural banks - These banks were established in 1975 to extend banking facilities to the rural areas. The main objective of these banks is 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. The rate of interest charged by these banks is very high.
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.
i. Commercial banks - These banks provide credit to the general public. They can be classified into public sector banks, private sector banks and foreign sector banks.
ii. Co-operative banks - These banks provide cheap credit to their members only and can be classified into primary credit banks, district central co-operative banks and state co-operative banks.
iii. Specialised banks - These banks provide credit to industrial units and export–import units. Some examples are Export-Import Bank of India (EXIM Bank) and Small Industries Development Bank of India (SIDBI).
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. Industrial Finance Corporation of India (IFCI) is an example of development bank.
vi. Regional rural banks - These banks were established in 1975 to extend banking facilities to the rural areas. The main objective of these banks is 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. The rate of interest charged by these banks is very high.
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.
