There are two broad categories under which banks are classified in India- SCHEDULED AND NON-SCHEDULED BANKS. The scheduled banks include COMMERCIAL BANKS AND COOPERATIVE BANKS. The commercial banks include REGIONAL RURAL BANKS, SMALL FINANCE BANK, FOREIGN BANKS, PRIVATE SECTOR BANKS, and PUBLIC SECTOR BANKS.
What are the four functions of a bank?
Functions of Commercial Banks: – Primary functions include accepting deposits, granting loans, advances, cash, credit, overdraft and discounting of bills. – Secondary functions include issuing letter of credit, undertaking safe custody of valuables, providing consumer finance, educational loans, etc.
Which is the primary function of a bank in India?
The functions of any bank in India are of two types that we shall discuss further below viz – The primary Functions and the Secondary Functions. The primary functions of a bank are two: 1. Accepting Deposits: Deposits are the amount of money that a customer hands over to the bank.
How does a commercial bank work in India?
Commercial banks accept deposits from the general public. These banks provide interest on deposits accepted to the public. Commercial banks accept deposits through different types of accounts i.e. current account, savings account, fixed deposits, recurring deposit. The Interest rate provided on deposits in these accounts differs from each other.
Which is the function of the SBI Bank?
The SBI functions as the banker to the central and state governments. It receives and pays money on behalf of the governments. Especially it renders the following functions as directed by the RBI in this regard.
What are the different types of banks in India?
1 Central Bank. 2 Cooperative Banks. 3 Commercial Banks. 4 Regional Rural Banks (RRB) 5 Local Area Banks (LAB) 6 Specialized Banks. 7 Small Finance Banks. 8 Payments Banks.
