Bank closely follow the oligopoly form of competition like:

Like in oligopoly , in bank there is a small number firms. There is about 34

commercial bank in india.
Bank has high degree of in interdependence among them, one bank never raised
their product price in fear of other bank. Banknot raise the price of their product
and service unless and until other bank also raised the price of their product,
fearing that their customer might shift towards a competitive Bank, which is
another aspect of oligopolistic competition.
in oligopoly, firm form a cartel, similar to bank form cartel and RBI is their head
who see and bought different rules to safeguard their profit by fixing their repo
and reverse REPO rate . Bank follow Collusive oligopoly structure more precisely.
Thus RBA act as a price leader, who set, all rules.
Like in oligopoly, there is also an entry barrier for new banks. No one can open a
bank, unless or until they get licenced from RBI.