TYPES OF BANKS

PRESENTED BY: ROLL NO:

SNEHAL 01-A
RUPALI 14-A
ANUSHRI 31-A
KIRAN 32-A
SHWETA 59-A
 TYPES OF BANKS

Commercial banks Cooperative banks Development banks Specialized banks

 COMMERCIAL BANKS

Scheduled Non-Scheduled
I. Scheduled banks
 I. Scheduled banks
 Those banks which have been included in the second schedule of the
RBI Act, 1934.

 Scheduled banks can be broadly classified into :

1. Private Sector Banks

(i) Indian private banks
(ii) Foreign banks

2. Public Sector Banks

(i) SBI and its Associates
(ii) Nationalised Banks
(iii) Regional Rural Banks (RRBs)
 Regional Rural Banks (RRBs)

 Established under the Regional Rural Banks Act of 1976.

 Objective

 Structure

 Functions

 Management
 Regional Rural Banks (RRBs)
 Amalgamation of RRBs

• Structural consolidation of RRBs by amalgamating RRB sponsored by

the same bank within a state.

 Role in financial inclusion

• In rural areas RRBs account for 37 % of total offices of all scheduled

commercial banks.
• 91 % of total workforce in RRB is posted in rural & semi-urban areas.
• At all –India level, RRBs account for 12% of all deposit accounts of
scheduled commercial banks.
• At all –India level, RRBs account for 18% of loan accounts of scheduled
commercial banks.
II. Non-Scheduled banks
 LOCAL AREA BANKS
 In 1996-97 Union budget announced a policy measure regarding the
development of commercial banking.

 Governed by the provision of the RBI Act,1934,the Banking Act,1949.

 Registered as public limited company under Companies Act,1956.

 Two main Objectives

• Providing an institutional mechanism
• Providing Credit

 Minimum paid-up capital of Rs.5 Cr with promoter’s contribution at least

Rs.2 Cr
FUNCTIONS OF COMMERCIAL BANKS

The functions of commercial banks are divided into

two categories:

1. Primary Functions

2. Secondary Functions
 PRIMARY FUNCTIONS

The primary functions of a commercial bank include:

a) Accepting deposits

b) Grant of loans and advances

 SECONDARY FUNCTIONS
 Collection and payment of cheques and bills

 Safe custody

 Remittance of funds

 Issuing demand drafts and pay orders.

 Issuing letters of credit

 Standing guarantee on behalf of its customers, for making payments

for purchase of goods, Machinery, vehicles etc

 COOPERATIVE BANK

 People who come together to jointly serve their common interest

often form a cooperative society under the cooperative societies act.
When a cooperative society engages itself in banking business, it is
called a cooperative bank.

 The cooperative banks are registered under the cooperative Societies

Act
 COOPERATIVE BANK

 Most suitable medium for the democratization of economic

planning

 The cooperative movement entered several sectors

 The cooperative bank has a largest network in the world

 Cooperative supply about 46% of the total rural credit

 CHARACTERISTICS
 More attention to agricultural cooperatives

 The cooperative credit movement in modern India

 Measures for strengthening the cooperative Institution

 Lack of active participation of the members in the management

 The operational deficiencies of the cooperative credit structure

 The agriculture credit cooperative system

CLASSIFICATION OF CO-PERATIVE BANKS:
 
 RURAL CO-OPERATIVES BANKS

Rural Cooperative Banking plays an important role in meeting the growing credit

needs of rural population of India.

I. Short-term Rural Co-operatives:

The short-term rural co-operatives provide crop and other working capital loans to

farmers and rural artisans primarily for short-term purpose.

These institutions have federal three-tier structure.

At the Apex of the system is a State Co-operative bank in each state.

At the middle (or district) level, there are Central Co-operative Banks also known as

District Co-operative banks.

 At the lowest (or village) level, are the Primary Agricultural Credit Societies.
 RURAL CO-OPERATIVES BANKS

II. Long-term Rural Co-operatives:

 The long-term rural co-operative provide typically medium and long-term

loans for making investments in agriculture, rural industries and, in the
recent period, housing.
 Generally, these co-operatives have two tiers,

i.e. State Co-operative Agriculture and Development Banks (SCARBDs) at

the state level and Primary Co-operative Agriculture and Rural Development
Banks (PCARDBs) at the taluka or tehsil level.
 URBAN CO-OPERATIVE BANKS
Urban Co-operative Banks is also referred as Primary Co-operative banks
by the Reserve Bank of India

The objectives and functions of the Urban Co-operative banks:

 Primarily, to raise funds for lending money to its members.

  To attract deposits from members as well as non-members.

  To encourage thrift, self-help ad mutual aid among members.

  To draw, make, accept, discount, buy, sell, collect and deal in bills of
exchange, drafts, certificates and other securities.

  To provide safe-deposit vaults.

 DEVELOPMENT BANKS

 Business often requires medium and long-term capital for

purchase of machinery and equipment for using latest
technology or for expansion and modernization. Such
financial assistance is provided by Development Banks.

 Industrial Finance Corporation of India (IFCI)

 State Financial Corporations (SFCs)

 Industrial Development Bank of India (IDBI)

 SPECIALISED BANKS

 Specialised Banks cater to the requirements and provide

overall support for setting up business in specific areas of
activity.

 Export Import Bank of India (EXIM Bank)

 Small Industries Development Bank of India (SIDBI)

 National Bank for Agricultural and Rural Development

(NABARD)