List of Different Types of Banks in India, Check Indian Banking Sectors, Categories, and More details

There are different types of banks based on the functions they perform and the authorities they deal with. The classification of banks is into the following types:

• Central Bank
• Cooperative Banks
• Commercial Banks
• Regional Rural Banks (RRB)
• Local Area Banks (LAB)
• Specialized Banks
• Small Finance Banks
• Payments Banks

Central Bank

• assisting other financial institutions
• Issuing money and enforcing monetary policies
• The financial system's supervisor

Cooperative Banks

• These banks are governed by a law enacted by the state government. They provide short-term loans to agriculture and related industries.
• Cooperative banks' principal purpose is to enhance social welfare by providing low-interest loans.
• They are arranged in a three-tiered system.
• State Cooperative Banks, Tier 1 (State Level) (regulated by RBI, State Govt, NABARD)
• The RBI, the government, and the National Bank for Agriculture and Rural Development (NABARD) all contribute to the project's funding. After then, the money is allocated to the general population.
• These banks are subject to CRR and SLR concessions. (SLR: 25%, CRR: 3%)
• The state owns the company, and the senior management is chosen by the members.
• Central/District Cooperative Banks, Tier 2 (District Level)
• Tier 3 (Village Level) – Agriculture (Primary) Cooperative Banks

Commercial Banks

• The Banking Companies Act of 1956 established the company.
• They function on a commercial basis, with profit as their primary goal.
• They are owned by the government, state, or any private company and have a unified structure.
• They look after all sectors, from rural to urban.
• Unless the RBI directs otherwise, these banks do not charge concessional interest rates.
• These banks' primary source of funds is public deposits.
• Commercial banks are further classified into three types:
• Public sector banks are those in which the government or the country's central bank owns the majority of the stock.
• Banks in the private sector are those in which a private entity, an individual, or a group of people owns the majority of the stock.
• Foreign Banks – This category includes banks with headquarters in other nations and branches in the United States.

The following is a list of our country's commercial banks:

Commercial Banks in India
Public Sector Banks	Private Sector Banks	Foreign Banks
1. Punjab National Bank ( 2. Indian Bank 3. State Bank of India 4. Canara Bank 5. Union Bank of India 6. Indian Overseas bank 7. UCO Bank 8. Bank of Maharashtra 9. Punjab and Sind Bank  10. Bank of India  11. Central Bank of India  12. Bank of Baroda Gujarat	Catholic Syrian Bank City Union Bank Dhanlaxmi Bank Federal Bank Jammu and Kashmir Bank Karnataka Bank Karur Vysya Bank Lakshmi Vilas Bank Nainital Bank Ratnakar Bank South Indian Bank Tamilnad Mercantile Bank Axis Bank Development Credit Bank (DCB Bank Ltd) HDFC Bank ICICI Bank IndusInd Bank Kotak Mahindra Bank Yes Bank IDFC Bandhan Bank of Bandhan Financial Services.	Australia and New Zealand Banking Group Ltd. National Australia Bank Westpac Banking Corporation Bank of Bahrain & Kuwait BSC AB Bank Ltd. HSBC CITI Bank Deutsche Bank DBS Bank Ltd. United Overseas Bank Ltd J.P. Morgan Chase Bank Standard Chartered Bank There are over 40 Foreign Banks in India

Regional Rural Banks (RRB)

• These are unique types of commercial banks that lend to agriculture and the rural economy at a reduced rate.
• RRBs were founded in 1975 and are governed by the 1976 Regional Rural Bank Act.
• RRBs are 50/50 joint ventures between the federal government and state governments (15%), as well as a commercial bank (35 percent ).
• Between 1987 and 2005, 196 RRBs were established.
• From 2005 forward, the government began merging RRBs, bringing the total number of RRBs to 82.
• A single RRB cannot open branches in more than three districts that are geographically connected.

Local Area Banks (LAB)

• In India, it was first introduced in 1996.
• The private sector organizes these.
• Local Area Banks' primary goal is to make a profit.
• Local Area Banks are governed by the 1956 Companies Act.
• There are now just four Local Area Banks in existence, all of which are located in South India.

Specialized Banks

• Certain banks exist just to serve a certain purpose. Specialized banks are the name for several types of financial institutions. These are some of them:
• SIDBI (Small Industries Development Bank of India) - SIDBI can provide a loan for a small-scale enterprise or business. With the support of this bank, small businesses can get current technology and equipment.
• Export and Import Bank (EXIM Bank) - EXIM Bank stands for Export and Import Bank. This type of bank can provide loans or other financial help to foreign countries that are exporting or importing goods.
• NABARD (National Bank for Agricultural and Rural Development) – People can resort to NABARD for any type of financial support for rural, handicraft, village, and agricultural development.
• Other specialist banks exist, each with a unique function to play in the financial development of the country.

Small Finance Banks

AU Small Finance Bank	Equitas Small Finance Bank	Jana Small Finance Bank	Northeast Small Finance Bank
Capital Small Finance Bank	Fincare Small Finance Bank	Suryoday Small Finance Bank	Ujjivan Small Finance Bank
Esaf Small Finance Bank	Utkarsh Small Finance Bank

Payments Banks

• Airtel Payments Bank
• India Post Payments Bank
• Fino Payments Bank
• Jio Payments Bank
• Paytm Payments Bank
• NSDL Payments Bank

To know about the functions of bank in detail read the below linked aritcle:

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