Basics of Banking Part II

The following are the functions of  banks in India: Accepting deposits from the public Providing facilities for retrieving disbursements Lending Facility Transferring fundsissuance of payment instructions. Currency Handling The following are the different types of banks in India: Central Bank Cooperative Banks Commercial Banks Regional Rural Banks (RRB) Local Banks (LAB) Specialty Banks Small Financial BanksPayment Banks

Central Bank The central bank of our country is the Reserve Bank of India. Every country has a central bank that oversees all  other financial institutions in the country. institutions

Co-operative banks These banks are governed by a law issued by the state government. They provide short-term credit to agriculture and related industries. The main goal of the cooperative banks is to improve social welfare by providing low-interest loans. commercial banksThey work on a commercial basis, with profit as their main objective. They are owned by the government, the state or a private company and have a unified structure. They serve all sectors, from rural to urban. Unless otherwise stated by the RBI, these banks do not charge favorable interest rates. 

Commercial banks in India 1) Public banks 2) Private banks 3) Foreign banks

Local Area Banks (LAB)The private sector organizes them.The main goal of local banks is to generate profits. Local banks are governed by the  Companies Act 1956. There are now only four local banks, all  located in South India. 

Specialized Banks Certain banks only exist  to serve a specific purpose.Specialist banks are the designations for different types of financial institutions. Here are some of them: SIDBI (Small Industries Development Bank of India) SIDBI can provide a loan to a small business or company. With the support of this bank, small businesses can obtain up-to-date technology and equipment. Export and Import Bank (EXIM Bank) EXIM Bank means Export and Import Bank.This type of bank can provide loans or other financial assistance to foreign countries that export or import goods. NABARD (National Bank for Agricultural and Rural Development): People can turn to NABARD for any kind of financial support for rural, artisan, village and farm development activities Small Financial Banks This type of bank, as the name suggests, offers Loans and grants to micro-industries, small farmers and the unorganized sector of society The country's central bankThe Reserve Bank of India conceived the payments bank, a newly developed form of banking. People who have a payment bank account can only deposit up to Rs. 1,00,000 and cannot apply for any loans or credit cards through this account. 

Payment banks offer services such as internet banking, mobile banking, ATM card issuance and debit card issuance. The following is a list of the few payment banks in our country:Airtel Payments BankIndia Post Payments BankFino Payments BankJio Payments BankPaytm Payments BankNSDL payment bank