What are the different types of banks in India?
There are four types of banks in India:
- Commercial banks
- Small Finance banks
- Payments banks
- Co-operative banks
Again, Commercial banks are classified into four types. They are:
- Public Sector banks
- Private Sector banks
- Regional Rural banks
- Foreign banks
Also, Co-operative banks are classified into two types. They are:
- Urban Co-operative banks
- Rural Co-operative banks
What are Public Sector Banks?
Public Sector Banks are those banks where majority of the stake is owned by the Government. At present there are 12 public sector banks in India. Some banks merged with some other top public sector banks. These 12 Public sector banks are:
- State bank of India (SBI)
- Bank of Baroda
- Bank of India
- Central Bank of India
- Bank of Maharashtra
- Canara bank
- Indian bank
- Indian Overseas bank
- Punjab & Sind bank
- Punjab National bank
- UCO bank
- Union bank of India
Who are the merged Public Sector banks?
Eight banks have been merged with State bank of India (SBI) .They are:
- State Bank of Bikaner & Jaipur
- State Bank of Hyderabad
- State bank of Indore
- State bank of Mysore
- State bank of Patiala
- State bank of Saurashtra
- State bank of Travancore
- Bhartiya Mahila bank
Two banks have been merged with Bank of Baroda. They are:
- Vijaya bank
- Dena bank
Two banks have been merged with Punjab National bank. They are:
- Oriental bank of Commerce
- United Bank of India
Two banks have been merged with Union bank of India. They are:
- Andhra bank
- Corporation bank
One each bank merged with Canara bank & Indian bank. They are Syndicate bank & Allahabad bank respectively.
What are Private Sector banks?
Private Sector banks are those banks where majority of the stake is owned by the private shareholders. At present there are 22 private sector banks are there in India. They are:
- ICICI bank
- Axis bank
- Federal bank
- IndusInd bank
- HDFC bank
- Kotak Mahindra bank
- South Indian bank
- City Union bank
- CSB bank
- Bandhan bank
- DCB bank
- Dhanlaxmi bank
- IDFC FIRST bank
- Jammu & Kashmir bank
- Karnataka bank
- Karur Vysya bank
- Lakshmi Vilas bank
- Nainital bank
- RBL bank
- Tamilnad Merchantile bank
- YES bank
- IDBI bank
ALSO READ: What are the different types of Bank Accounts in India?
What are Regional Rural banks?
The Government regulated banks that operates in a regional level at different states of India are called Regional Rural banks(RRB’s).The primary job of RRB’s is to serve the rural areas of India with the basic Banking & financial services. RRB performs the following functions:
- RRB helps in disbursement of wages to MGNREGA workers, disbursements of pensions & other benefits
- RRB provides Banking & Financial services to Rural & Semi-Urban places
- RRB also provides the banking facilities like Debit Card or ATM Card,Internet banking,Mobile banking, Locker Facilities etc.
At present there are 43 RRB’s in India state wise. They are:
Assam
- Assam Gramin Vikash Bank
Arunachal Pradesh
- Arunachal Pradesh Rural Bank
Andhra Pradesh
- Andhra Pragathi Grameena Bank
- Andhra Pradesh Grameena Vikas Bank
- Chaitanya Godavari Gramin Bank
- Saptagiri Gramin Bank
Bihar
- Dakshin Bihar Gramin Bank
- Uttar Bihar Gramin Bank
Chhattisgarh
- Chhattisgarh Rajya Gramin Bank
Gujarat
- Baroda Gujarat Gramin Bank
- Saurashtra Gramin Bank
Haryana
- Sarva Haryana Gramin Bank
Himachal Pradesh
- Himachal Pradesh Gramin Bank
Jharkhand
- Jharkhand Rajya Gramin Bank
Jammu and Kashmir
- J&K Grameen Bank
- Ellaquai Dehati Bank
Karnataka
- Karnataka Gramin Bank
- Karnataka Vikas Grameena Bank
Kerala
- Kerala Gramin Bank
Madhya Pradesh
- Madhyanchal Gramin Bank
- Madhya Pradesh Gramin Bank
Maharashtra
- Maharashtra Gramin Bank
- Vidharbha Konkan Gramin Bank
Manipur
- Manipur Rural Bank
Meghalaya
- Meghalaya Rural Bank
Mizoram
- Mizoram Rural Bank
Nagaland
- Nagaland Rural Bank
Odisha
- Odisha Gramya Bank
- Utkal Grameen Bank
Puducherry
- Puduvai Bharathiar Grama Bank
Punjab
- Punjab Gramin Bank
Rajasthan
- Baroda Rajasthan Kshetriya Gramin Bank
- Rajasthan Marudhara Gramin Bank
Tamil Nadu
- Tamil Nadu Grama Bank
Telangana
- Telangana Grameena Bank
Tripura
- Tripura Gramin Bank
Uttar Pradesh
- Aryavart Bank
- Prathama UP Gramin Bank
- Baroda UP Bank
Uttarakhand
- Uttarakhand Gramin Bank
West Bengal
- Paschim Banga Gramin Bank
- Bangiya Gramin Vikash Bank
- Uttarbanga Kshetriya Gramin Bank
What are Foreign banks?
A Foreign bank is a type of bank is that originated in a foreign country & its branches are also located in India. It can also act as representative bank in India. A Foreign bank is bound to follow the rules of both the home & host country. Since the Foreign banks loan limit is based on its parent banks capital they can provide loans more than the scheduled banks in India.
Foreign banks has also correspondent banking relationships with domestic banks & also provides a platform of foreign currency lending to Indian corporations & financial Institutions.
Reserve bank of India(RBI) has created rules & regulations for Foreign banks for establishments & operations in India.At present there are 46 Foreign banks in India.They are:
- AB Bank Ltd.
- Abu Dhabi Commercial Bank Ltd.
- American Express Banking Corp.
- Australia & New Zealand Banking Group Ltd.
- Barclays Bank Plc.
- Bank of America
- Bank of Bahrain & Kuwait BSC
- Bank of Ceylon
- Bank of China
- Bank of Nova Scotia
- BNP Paribas
- Citibank N.A.
- Cooperative Rabobank U.A.
- Credit Agricole Corporate & Investment Bank
- Credit Suisse A.G.
- CTBC Bank Co.Ltd
- DBS Bank india Ltd
- 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 Limited
- Industrial Bank of Korea
- 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 Bank
- Sonali Bank Ltd
- Standard Chartered bank
- Sumitomo Mitsui Banking Corporation
- United Overseas Bank Ltd
- Westpac Banking Corporation
- Woori Bank
What are Small Finance banks?
Small financial banks are a type of specialized banks in India. Banks with a small bank license that can provide a basic bank deposit and loan acceptance service. The objective behind these is to provide financial inclusion to sectors of the economy that are not being served by other banks such as small business units, small farmers, micro and small industries and entities from the unorganized sector.
There are some of the operational Small Finance Banks in India. They are:
- ESAF Small Finance Bank.
- Utkarsh Small Finance Bank.
- Suryoday Small Finance Bank.
- Fincare Small Finance Bank.
- Ujjivan Small Finance Bank.
- Janalakshmi Small Finance Bank.
- Equitas Small Finance Bank.
- A U Small Finance Bank.
- Capital Small Finance Bank.
What are Payment banks?
Payments banks in India are a new Indian banking model designed by the Reserve Bank of India (RBI). These banks can accept maximum deposit of ₹ 1,00,000 per customer. Payment banks cannot issue loans and credit cards. Both Current accounts and Savings accounts can be opened in these banks. Payment banks can issue ATM Cards or Debit Cards and provide online banking & mobile banking services.
Objectives of Payments Banks:
The main objective of the payment bank is to expand the spread of financial and payment services to small businesses, low-income households and the migrant labor force in a secure,technology-driven environment.
Bharti Airtel established the first Payment Banks in India.
The active payment banks in India are:
- Airtel Payments Bank
- Paytm Payments Bank
- India Post Payments Bank
- Jio Payments Bank
- NSDL Payments Bank
- Fino Payments Bank
What are Co-operative banks?
The Co-Operative Banks have been registered under Co operative Societies Act. Co-operative banks are those banks that belong to its members who at the same time are the owners & customers of the Bank. Co-operative banks are owned & controlled by the members who altogether elect theboard of directors. The profit is usually distributed to the co-operative members with legal & statutory limitations. The main objective of Co-operative banks is not profit maximization rather their main objective is the financial inclusion of unbanked rural masses.
Co-operative banks are further classified into two types. They are:
1) Urban Co-operative banks: A Co-operative bank located in Urban area is known as Urban Co-operative Banks. These banks are generally formed to help small business. They also finance self employment, industries & home finance.
2) Rural Co-operative banks: : A Co-operative bank located in Rural area is known as Rural Co-operative banks. These banks primarily finance agricultural based activities including farming, dairy etc. They also finance some small scale industries and self employment activities.
