(a) Commercial Bank: Accept deposits from the public and grant short-term loans and advances to their customers. Also started giving medium-term and long-term loans to trade and industry.
(b) Co-operative Bank: Co-operative society engages itself in banking business is called a Co-operative Bank. Rate of interest charged is usually low. There are three types of co-operative banks operating in India.
Primary Credit Societies
Central Co-operative Banks
State Co-operative Banks
(c) Development Bank: Provide medium and long-term loans to industry. Assist the promotion, expansion and modernisation. They also provide technical advice and assistance, if needed.
Example: Industrial Finance Corporation of India (IFCI), State Financial Corporation’s (SFCs)
(d) Specialised Bank: There are some banks which engage themselves in some specific area or activity and are thus, called specialised banks.
Example: EXIM Bank, SIDBI, NABARD
(e) Central Bank: Entrusted with the responsibility of guiding and regulating the banking system. Apex bank and highest financial authority.
Accept deposits from the public.
Public assured safety of funds deposited with bank
Provide different types of deposit accounts with different rates of interest like:
Fixed Deposit Account
Recurring Deposit account
Savings Bank Account etc
Lending money to the public as well as to the business houses.
Takes form of loans
Advances to the customers at the prescribed rates of interest.
Loans granted for a specific period.
Loans and advances are generally granted against the security of certain assets
Provide medium term and long term loan.
Agency services: Provided by commercial banks as agents of their customers. These include:
General utility services: Rendered by commercial banks not only to the customers but also to the general public. These include: