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Types of Banks : 1.Central Bank The Reserve Bank of India -------------------------------------- 2.

Public Sector Banks State Bank of India and its associate banks and 20 nationalized banks -------------------------------------- 3.Private Sector Banks Old generation private banks New generation private banks Foreign banks operating in India Scheduled co-operative banks Non-scheduled banks -------------------------------------- 4.Co-operative Sector The co-operative banking sector is divided into the following categories. State co-operative Banks Central co-operative banks Primary Agriculture Credit Societies -------------------------------------- 5.Development Banks/Financial Institutions IFCI IDBI ICICI IIBI SCICI Ltd. NABARD Export-Import Bank of India National Housing Bank Small Industries Development Bank of India North Eastern Development Finance Corporation

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 contribut ed 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.

Type 1. Saving Banks

Saving banks are established to create saving habit among the people. These banks are helpful for salaried people and low income groups. The deposits collected from customers are invested in bonds, securities, etc. At present most of the commercial banks carry the functions of savings banks. Postal department also performs the functions of saving bank.

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Type 2. Commercial Banks

Commercial banks are established with an objective to help businessmen. These banks collect money from general public and give short-term loans to businessmen by way of cash credits, overdrafts, etc. Commercial banks provide various services like collecting cheques, bill of exchange, remittance money from one place to another place.

In India, commercial banks are established under Companies Act, 1956. In 1969, 14 commercial banks were nationalised by Government of India. The policies regarding deposits, loans, rate of interest, etc. of these banks are controlled by the Central Bank.

Type 3. Industrial Banks / Development Banks

Industrial / Development banks collect cash by issuing shares & debentures and providing long-term loans to industries. The main objective of these banks is to provide long-term loans for expansion and modernisation of industries.

In India such banks are established on a large scale after independence. They are Industrial Finance Corporation of India (IFCI), Industrial Credit and Investment Corporation of India (ICICI) and Industrial Development Bank of India (IDBI).

Type 4. Land Mortgage / Land Development Banks

Land Mortgage or Land Development banks are also known as Agricultural Banks because these are formed to finance agricultural sector. They also help in land development.

In India, Government has come forward to assist these banks. The Government has guaranteed the debentures issued by such banks. There is a great risk involved in the financing of agriculture and generally commercial banks do not take much interest in financing agricultural sector.

Type 5. Indigenous Banks

Indigenous banks means Money Lenders and Sahukars. They collect deposits from general public and grant loans to the needy persons out of their own funds as well as from deposits. These indigenous banks are popular in villages and small towns. They perform combined functions of trading and banking activities. Certain well-known indian communities like Marwaries and Multani even today run specialised indigenous banks.

Type 6. Central / Federal / National Bank

Every country of the world has a central bank. In India, Reserve Bank of India, in U.S.A, Federal Reserve and in U.K, Bank of England. These central banks are the bankers of the other banks. They provide specialised functions i.e. issue of paper currency, working as bankers of government, supervising and controlling foreign exchange. A central bank is a non-profit making institution. It does not deal with the public but it deals with other banks. The principal responsibility of Central Bank is thorough control on currency of a country.

Type 7. Co-operative Banks

In India, Co-operative banks are registered under the Co-operative Societies Act, 1912. They generally give credit facilities to small farmers, salaried employees, small-scale industries, etc. Co-operative Banks are available in rural as well as in urban areas. The functions of these banks are just similar to commercial banks.

Type 8. Exchange Banks

Hong Kong Bank, Bank of Tokyo, Bank of America are the examples of Foreign Banks working in India. These banks are mainly concerned with financing foreign trade.

Following are the various functions of Exchange Banks :-

1. 2. 3. 4.

Remitting money from one country to another country, Discounting of foreign bills, Buying and Selling Gold and Silver, and Helping Import and Export Trade.

Type 9. Consumers Banks

Consumers bank is a new addition to the existing type of banks. Such banks are usually found only in advanced countries like U.S.A. and Germany. The main objective of this bank is to give loans to consumers for purchase of the durables like Motor car, television set, washing machine, furniture, etc. The consumers have to repay the loans in easy installments.

Current Account

Opening a current account with a bank now comes with unlimited options. PaisaWaisa now brings you in-depth comparison of a large number of bank current accounts. Current accounts are the best option for all your business needs. Most current accounts are now available with a debit card and online banking facilities. Like a Savings Account, you can set up direct debits with your Current Account also. Opening a current bank account is usually a straightforward process. Get diverse options for opening a current account at the bank of your choice, as we bring to you in-depth comparison details, such as minimum balance required, other T&C, documents required and other minute details to help you choose the best option suited to your needs. Current accounts are by far the best options for all your business needs.

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Deposit Schemes
It has been decided by the Bank to revise the interest rate structure for Domestic Term Deposits of different maturities below Rs.5.00 Crore with effect from 14.09.2011. The revised interest rates are as under:Tenor Existing Interest Rate p.a. (%) For below Rs.5.00 cr 7 days to 14 days 15 days to 29 days 30 days to 45 days 46 days to 60 days 4.00 5.00 5.00 5.50 Revised Interest Rate p.a. (%) (w.e.f. 14.09.2011) For below Rs.5.00 cr 4.00 5.00 5.00 5.50

61 days to 90 days 91 days to 179 days 180 days to 269 days 270 days to 364 days 1 year to less than 2 years 2 years to less than 3 years 3 years to less than 5 years 5 years and upto 10 years

6.00 7.00 8.00 8.00 9.50 9.00 8.75 8.50

6.00 7.30 8.00 8.00 9.50 9.00 8.75 8.50

1. The existing rates for the fixed periods will remain unchanged. 2. The above rates will be applicable for fresh deposits and renewal of deposits and are subject to revision at any time. 3. The interest rate for AllBank Baalika Mangal Yojana Deposit Scheme will remain unchanged at 9.01365 % p.a with quarterly rests as per HO. Instruction Circular no. 11357/Dev/2011-12/ 05 dated 06.04.2011 4. The rate of interest on Allahabad Bank Tax Benefit Term Deposit Scheme will be @ 8.50% p.a. i.e. card rate for 5 years. 5. Existing additional interest rate for senior citizens will be continued as per existing guidelines. 6. For interest rates for deposits above Rs. 5 crores: Branches/Zonal Offices should continue to obtain prior permission from General Manager (IRM) before accepting term deposits of Rs.5.00 crore and above. PENAL RATE OF INTEREST FOR PREMATURE WITHDRAWAL OF DOMESTIC TERM DEPOSITS Period of Deposit 1. Premature closure of term deposits for reinvestment in our bank 2. 15 days and upto 1 (one) year* 3. All others Amount of Deposit Penal Rate of Interest

Any amount No penal rate to be charged Any amount No penal rate to be charged All others 1 % penal interest to be charged

*The period of Deposit agreed upon at the time of making the deposit. Non Resident (External) Rupee Savings Deposit Account (NRE-SB) Interest Rate % p.a. 4.00

Non Resident (External) Rupee Term Deposit Account (NRE) Period Revised Rate % p.a

(w.e.f. 20.03.2012) 1 year to less than 2 years 2 years to less than 3 years 3 years to less than 5 years 5 years and upto than 10 years 9.50 9.00 8.75 8.50

Non-Resident (Ordinary) Rupee Term Deposits & Saving Bank A/c: The Interest rates of NRO deposits is at par with the Interest Rates for Domestic Deposits. Differential Rate of Interest/ Additional Rate for Senior Citizens: No Differential Rate on interest as also Additional Interest for Senior Citizens is allowed for Non-Resident Deposits as advised vide our Instruction Circular Nos. 6942/Foreign/2001202/03 & 8144/Foreign/2004-05/04 dt. 03.09.01 & 07.05.2004 respectively. Foreign Currency Non-Resident (FCNR (B) Account and Resident Foreign Currency (RFC) accounts with effect from 01.03.2012 Fixed Deposit Existing Rate % p.a. (w.e.f. 01.02.2012) USD GBP 1 year to < 2 years 2 years to < 3 years 3 years to < 4 years 4 years to < 5 years 5 years only EUR Revised Rate % p.a. (w.e.f. 01.03.2012) GBP EUR CAD AUD

CAD AUD USD

2.35 3.14 2.98 3.12 6.13 2.31 3.13 2.85 3.14 6.21 1.78 2.49 2.42 2.44 5.09 1.81 2.49 2.37 2.54 5.48 1.87 2.51 2.50 2.50 5.13 1.93 2.54 2.46 2.65 5.51 2.06 2.63 2.66 2.61 5.37 2.12 2.65 2.61 2.78 5.70 2.30 2.75 2.85 2.75 5.50 2.34 2.80 2.80 2.91 5.79

The above rates are applicable to fresh deposits and for renewal of deposits only. These rates are subject to change without notice and the depositors will be advised of the current rates on the date of deposit.

Allahabad Bank Tax Benefit Term Deposit Scheme "Allahabad Bank Tax Benefit Term Deposit Scheme" offering the benefit under Sec.80C of Income Tax Act for the depositors (Income Tax assesses). Investment : Any amount not exceeding Rupees one lakh in a year commencing on the 1st day of April of respective years. The amount to be deposited shall be a minimum of Rupees one hundred or multiples thereof. Types of the Deposit : Can be opened in the following types, namely : a. Single holder Type Deposits : Individual for himself or in the capacity of the "Karta" of a Hindu Undivided Family. b. Joint holder type deposits : Jointly in the name of two or more persons payable to either of the holders or to the survivor. Deduction from income under section 80C of

Income Tax Act shall be available only to the first holder of the deposit. Tenure of Deposit : Five years. Encashment option : Premature encashment is not permissible. Rate of interest : The rate of interest on Allahabad Bank Tax Benefit Term Deposit Scheme will be @ 8.50% p.a. w.e.f. 09.06.2011 for fresh deposits only. No additional rate of interest for Senior Citizens and Staff of the Bank. TDS on interest : Interest is liable to tax under section 194A or section 195 of Income Tax Act, on the basis of annual accrual or receipt, depending upon the method of accounting followed by the assessee. Pledging of the Deposit : Can not be pledged to secure loan or as security to any other asset. Nomination : Available. Transfer from one branch to another : The deposit may be transferred from the issuing branch to another branch but not transferable from one bank to another bank.

FIXED DEPOSIT ACCOUNT RULES 1. Any person approved by the Bank may open a Fixed Deposit Account. He/She has to sign the relative Account Opening Form in presence of authorized official of the Bank upon agreeing to comply with the rules governing Fixed Deposit Accounts and providing satisfactory introduction. Passport/Personal Identity Cards/PAN Card/GIR No./Voters' Identity Card issued by Chief Election Commission - may be considered as adequate introduction for opening such account. However, introduction is not essential where the depositor is already having and introduced account. 2. The Bank will not open an account, which is to be operated under a cross mark or signature by the hand of another person. 3. An illiterate person may open Fixed Deposit Account to be operated by his/her thumb impression. 4. Two Passport size photographs (three, if the account is to be operated by thumbimpression) are required to be submitted by the depositors at the time of opening of a Fixed Deposit Account, unless such photographs are already available to the branch in respect of another account. 5. Every depositor while opening a Fixed Deposit Account by tendering cash shall be required to furnish PAN/GIR Number or submit Form 60/61 if the deposit amount exceed Rs.50,000/-. 6. Fixed Deposit Account can also be opened by a natural guardian i.e. father or mother or by a guardian appointed by the Court on behalf of a minor, or by a minor having attained the age of 10 years. 7. The Bank reserves the right to verify the details given in the Account Opening form through any third party, if necessary. 8. Fixed Deposit Accounts can also be opened by Joint Stock Companies, Executors & Administrators in their names, Clubs, Societies, Associations, Educational Institutions, Trusts, Sole proprietorship or Partnership Firms. 9. The same depositor in the same name can open more than one Fixed Deposit Account. 10. Fixed Deposit Account may be opened for a minimum period of 15 days and maximum period of 10 years. 11. The minimum amount required to open a Fixed Deposit is Ra.1000/-. 12. Interest is paid either periodically monthly at discounted rate/quarterly for Fixed Deposit under Regular Income Scheme or on maturity of the deposit on cumulative

basis under Kuber Yojna or Deposit Certificate scheme. Income Tax is deductible at source from such interest subject to Income Tax rules. The depositor should submit Form 15H wherever applicable. 13. Senior Citizens who have attained the age of 60 years and above are presently offered 0.50% over and above the normal interest range on Fixed Deposits regardless of the size of deposit and periodicity.

14. Every depositor is entitled to have a Fixed Deposit Receipt (FDR) for each deposit account containing the date of issue, name(s) of the depositor(s), period of deposit, date of maturity, rate of interest & maturity value of the deposit (except for deposit under Flexible Fixed Deposit Scheme). Every depositor is expected to preserve the FDR carefully. In case of loss of FDR, the depositor has to inform the Branch Manager and request for a duplicate. If the Branch Manager is satisfied that the FDR is irretrievably lost and the Bank is generally safe in issuing a duplicate one, he may authorize issuance of duplicate FDR on payment of prescribed charges and completion of formalities. 15. Premature withdrawal is allowed in case of all types of Fixed Deposit subject to prevalent penalty clause from time to time. 16. The depositor is also permitted extension of term of the deposit before expiry of the original term of deposit without application of penalty clause provided the deposit in question is agreed to be held for a further period reckoned from the date of extension which is longer than the remaining period of the original contract. 17. Transfer of a Fixed Deposit account from one branch to another is allowed on request of a customer due to change in his place of residence or place of work. 18. On due date depositor(s) is/are required to discharge on the FDR with a view to getting payment of maturity proceeds either in cash or by crediting his/her/their Savings Bank/Current Deposit Account with the same branch. However, in terms of provisions of Income Tax Act 1981, maturity yield of any Fixed Deposit amounting to Rs.20,000/- and above would be paid either by A/c. Payee Cheque or A/c. Payee Bank draft or by crediting Savings/Current Deposit account of the person to whom such deposit has to be repaid. FDR is not transferable i.e. it cannot be endorsed in favour of another person. 19. On maturity of the specified term, the depositor may also opt to renew the deposit for a further period in Fixed Deposit and change the period of deposit and amount of deposit. Also addition & deletion of names in a Joint Account is permitted. 20. If the customer neither obtains payment nor renews the Fixed Deposit although the term is over, it is called an overdue Fixed Deposit. Payment/renewal of overdue Fixed Deposit is governed by following rules. Renewal is carried out at the rate of interest prevailing on the date of maturity provided overdue period does not exceed 14 days from the date of maturity. Where overdue period exceeds 14 days, interest would be paid provided the depositor renews the deposit for a further minimum period for which the deposit is lying overdue. If not renewed for a time equal to or more than overdue period, interest rate applicable to Savings Bank deposit is payable on the deposit. The interest for the overdue period will be paid at the rate prevailing on the date of maturity or on the date of carrying out renewal, whichever is less. This interest may be paid to the depositor or clubbed with the deposit for renewal. 21. The depositor may avail loan/advance against the security of the Fixed Deposit subject to extant rules of the Bank in respect of such loan/advance from time to time, and

such rules will be applicable notwithstanding anything contained hereinabove. 22. Nomination facility is available in case of Fixed Deposit. The nominee must be an individual. 23. Bank reserves the right to alter or add to these rules and such alteration and additions shall be binding on the account holders.