What are the different types of banks in India?

Different types of banks in India
different types of banks in India

What are the different types of banks in India?

 

There are four types of banks in India:

  1. Commercial banks
  2. Small Finance banks
  3. Payments banks
  4. Co-operative banks

Again, Commercial banks are classified into four types. They are:

  1. Public Sector banks
  2. Private Sector banks
  3. Regional Rural banks
  4. Foreign banks

Also, Co-operative banks are classified into two types. They are:

  1. Urban Co-operative banks
  2. 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:

  1. State bank of India (SBI)
  2. Bank of Baroda
  3. Bank of India
  4. Central Bank of India
  5. Bank of Maharashtra
  6. Canara bank
  7. Indian bank
  8. Indian Overseas bank
  9. Punjab & Sind bank
  10. Punjab National bank
  11. UCO bank
  12. Union bank of India

Who are the merged Public Sector banks?

Eight banks have been merged with State bank of India (SBI) .They are:

  1. State Bank of Bikaner & Jaipur
  2. State Bank of Hyderabad
  3. State bank of Indore
  4. State bank of Mysore
  5. State bank of Patiala
  6. State bank of Saurashtra
  7. State bank of Travancore
  8. Bhartiya Mahila bank

Two banks have been merged with Bank of Baroda. They are:

  1. Vijaya bank
  2. Dena bank

Two banks have been merged with Punjab National bank. They are:

  1. Oriental bank of Commerce
  2. United Bank of India

Two banks have been merged with Union bank of India. They are:

  1. Andhra bank
  2. 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:

  1. ICICI bank
  2. Axis bank
  3. Federal bank
  4. IndusInd bank
  5. HDFC bank
  6. Kotak Mahindra bank
  7. South Indian bank
  8. City Union bank
  9. CSB bank
  10. Bandhan bank
  11. DCB bank
  12. Dhanlaxmi bank
  13. IDFC FIRST bank
  14. Jammu & Kashmir bank
  15. Karnataka bank
  16. Karur Vysya bank
  17. Lakshmi Vilas bank
  18. Nainital bank
  19. RBL bank
  20. Tamilnad Merchantile bank
  21. YES bank
  22. 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:

  1. AB Bank Ltd.
  2. Abu Dhabi Commercial Bank Ltd.
  3. American Express Banking Corp.
  4. Australia & New Zealand Banking Group Ltd.
  5. Barclays Bank Plc.
  6. Bank of America
  7. Bank of Bahrain & Kuwait BSC
  8. Bank of Ceylon
  9. Bank of China
  10. Bank of Nova Scotia
  11. BNP Paribas
  12. Citibank N.A.
  13. Cooperative Rabobank U.A.
  14. Credit Agricole Corporate & Investment Bank
  15. Credit Suisse A.G.
  16. CTBC Bank Co.Ltd
  17. DBS Bank india Ltd
  18. Deutsche bank
  19. Doha bank Q.P.S.C
  20. Emirates Bank NBD
  21. First Abu Dhabi Bank PJSC
  22. FirstRand Bank Ltd.
  23. HSBC Ltd.
  24. Industrial & Commercial Bank of China Limited
  25. Industrial Bank of Korea
  26. P.Morgan Chase Bank N.A.
  27. JSC VTB bank
  28. KEB Hana Bank
  29. Kookmin Bank
  30. Krung Thai bank Public Co.Ltd
  31. Mashreq Bank PSC
  32. Mizuho Bank Ltd.
  33. MUFG bank Ltd
  34. NatWest Markets Plc
  35. PT Bank Maybank Indonesia TBK
  36. Qatar National Bank (Q.P.S>c)
  37. Sberbank
  38. SBM Bank (India) Limited
  39. Shinhan Bank
  40. Societe Bank
  41. Sonali Bank Ltd
  42. Standard Chartered bank
  43. Sumitomo Mitsui Banking Corporation
  44. United Overseas Bank Ltd
  45. Westpac Banking Corporation
  46. 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:

  1. ESAF Small Finance Bank.
  2. Utkarsh Small Finance Bank.
  3. Suryoday Small Finance Bank.
  4. Fincare Small Finance Bank.
  5. Ujjivan Small Finance Bank.
  6. Janalakshmi Small Finance Bank.
  7. Equitas Small Finance Bank.
  8. A U Small Finance Bank.
  9. 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:

  1. Airtel Payments Bank
  2. Paytm Payments Bank
  3. India Post Payments Bank
  4. Jio Payments Bank
  5. NSDL Payments Bank
  6. 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.