Type 1. Saving Banks
Saving banks are established to exercise saving habit amidst the people. These banks are helpful for salaried people too depression income groups. The deposits collected from customers are invested inwards bonds, securities, etc. At acquaint close of the commercial banks deport the functions of savings banks. Postal division equally good performs the functions of saving bank.
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Type 2. Commercial Banks
Commercial banks are established amongst an objective to aid businessmen. These banks collect coin from full general populace too hand short-term loans to businessmen past times way of cash credits, overdrafts, etc. Commercial banks furnish diverse services similar collecting cheques, nib of exchange, remittance coin from i house to roughly other place.
In India, commercial banks are established nether Companies Act, 1956. In 1969, fourteen commercial banks were nationalised past times Government of India. The policies regarding deposits, loans, charge per unit of measurement of interest, etc. of these banks are controlled past times the Central Bank.
Type 3. Industrial Banks / Development Banks
Industrial / Development banks collect cash past times issuing shares & debentures too providing long-term loans to industries. The primary objective of these banks is to furnish long-term loans for expansion too modernisation of industries.
In Bharat such banks are established on a large scale afterward independence. They are Industrial Finance Corporation of Bharat (IFCI), Industrial Credit too Investment Corporation of Bharat (ICICI) too Industrial Development Bank of Bharat (IDBI).
Type 4. Land Mortgage / Land Development Banks
Land Mortgage or Land Development banks are equally good known equally Agricultural Banks because these are formed to finance agricultural sector. They equally good aid inwards reason development.
In India, Government has come upward forwards to aid these banks. The Government has guaranteed the debentures issued past times such banks. There is a dandy direct a opportunity involved inwards the financing of agriculture too to a greater extent than oft than non commercial banks exercise non receive got much involvement inwards financing agricultural sector.
Type 5. Indigenous Banks
Indigenous banks agency Money Lenders too Sahukars. They collect deposits from full general populace too grant loans to the needy persons out of their ain funds equally good equally from deposits. These indigenous banks are pop inwards villages too small-scale towns. They perform combined functions of trading too banking activities. Certain well-known indian communities similar Marwaries too Multani fifty-fifty today run specialised indigenous banks.
Type 6. Central / Federal / National Bank
Every province of the globe has a primal bank. In India, Reserve Bank of India, inwards U.S.A, Federal Reserve too inwards U.K, Bank of England. These primal banks are the bankers of the other banks. They furnish specialised functions i.e. upshot of newspaper currency, working equally bankers of government, supervising too controlling unusual exchange. H5N1 primal banking concern is a non-profit making institution. It does non bargain amongst the populace but it deals amongst other banks. The principal responsibleness of Central Bank is thorough command on currency of a country.
Type 7. Co-operative Banks
In India, Co-operative banks are registered nether the Co-operative Societies Act, 1912. They to a greater extent than oft than non hand credit facilities to small-scale farmers, salaried employees, small-scale industries, etc. Co-operative Banks are available inwards rural equally good equally inwards urban areas. The functions of these banks are only similar to commercial banks.
Type 8. Exchange Banks
Hong Kong Bank, Bank of Tokyo, Bank of America are the examples of Foreign Banks working inwards India. These banks are mainly concerned amongst financing unusual trade.
Following are the diverse functions of Exchange Banks :-
- Remitting coin from i province to roughly other country,
- Discounting of unusual bills,
- Buying too Selling Gold too Silver, and
- Helping Import too Export Trade.
Type 9. Consumers Banks
Consumers banking concern is a novel add-on to the existing type of banks. Such banks are ordinarily found alone inwards advanced countries similar U.S.A. too Germany. The primary objective of this banking concern is to hand loans to consumers for buy of the durables similar Motor car, television set set, washing machine, furniture, etc. The consumers receive got to repay the loans inwards slow installments.
