Types of banks in India

The History of banking in India dates back to the early half of the 18th century. 3
Presidency Banks that were established in the country namely the Bank of
Hindustan, Bank of Madras and Bank of Bombay can also be referred to as some
of the oldest banking institutions in the country. The State Bank of India that
was earlier known as the Bank of Bengal is also one of the oldest in the genre. To
know about the types of banks in India, it is necessary that we first comprehend
the banking system so as to be able to distinguish about its various types.
All types of Banks in India are regulated and the activities monitored by a
standard bank called the Reserve Bank of India that stands at the apex of the
banking structure. It is also called the Central Bank, as major banking decisions
are taken at this level. The other types of banks in India are placed below this
bank in the hierarchy.

The major types of banks in India are as follows:

Public sector banks in India - All government owned banks fall in this variety.
Besides the Reserve Bank of India, the State Bank of India and its associate
banks and about 20 nationalized banks, all comprises of the public sector banks.
Many of the regional rural banks that are funded by the government banks can
also be clubbed in this genre.

Private sector banks in India - A new wave in the banking industry came about
with the private sector banks in India. With policies on liberalization being
generously taken up, these private banks were established in the country that
also contributed heavily towards the growth of the economy and also offering
numerous services to its customers. Some of the most popular banks in this
genre are: Axis Bank, Bank of Rajasthan, Catholic Syrian Bank, Federal Bank,
HDFC Bank, ICICI Bank, ING Vysya Bank, Kotak Mahindra Bank and SBI
Commercial and International Bank. The Foreign Banks in India like HSBC,
Citibank, and Standard Chartered bank etc can also be clubbed here.

Cooperative banks in India - With the aim to specifically cater to the rural
population, the cooperative banks in India were set up through the country.
Issues like agricultural credit and the likes are taken care of by these banks.