The focus of
banking is varied, the needs diverse and methods different. Thus, we need
distinctive kinds of banks to cater to the above mentioned complexities. Banks
can be classified into the following:
1.
Commercial banks
2.
Cooperative banks
3.
Specialised banks
4. Central
bank
1. Commercial Banks: Commercial banks are institutions
dealing in money. These are governed by Indian Banking Regulation Act 1949 and
according to it banking means accepting deposits of money from the public for
the purpose of lending or investment. There are two types of commercial banks,
public sector and private sector banks. are owned, managed and controlled by
private promoters and they are free to operate as per market forces. There are
a number of public sector banks like SBI, PNB, IOB etc., and other private
sector banks represented by HDFC Bank, ICICI Bank, Kotak Mahindra Bank and
Jammu and Kashmir Bank.
2. Cooperative Banks: Cooperative Banks are governed by
the provisions of State Cooperative Societies Act and meant essentially for
providing cheap credit to their members. It is an important source of rural
credit, i.e., agricultural financing in India.
3. Specialised Banks:Specialised banks are foreign
exchange banks, industrial banks, development banks, export-import banks
catering to specific needs ofthese unique activities. These banks provide
financial aid to industries, heavy turnkey projects and foreign trade
4. Central Bank: The Central bank of any country
supervises, controls and regulates the activities of all the commercial banks
of that country. It also acts as a government banker. It controls and
coordinates currency and credit policies of any country. The Reserve Bank of
India is the central bank of our country.
