Different Types Of Banks - What Are Diverse Kinds Of Banks ?
Type 1. Saving Banks
Saving banks are established to exercise saving habit with the people. These banks are helpful for salaried people together with depression income groups. The deposits collected from customers are invested inwards bonds, securities, etc. At introduce around of the commercial banks behave the functions of savings banks. Postal region likewise performs the functions of saving bank.
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Type 2. Commercial Banks
Commercial banks are established with an objective to assist businessmen. These banks collect coin from full general populace together with hand short-term loans to businessmen yesteryear way of cash credits, overdrafts, etc. Commercial banks furnish diverse services similar collecting cheques, neb of exchange, remittance coin from i house to simply about other place.
In India, commercial banks are established nether Companies Act, 1956. In 1969, fourteen commercial banks were nationalised yesteryear Government of India. The policies regarding deposits, loans, charge per unit of measurement of interest, etc. of these banks are controlled yesteryear the Central Bank.
Type 3. Industrial Banks / Development Banks
Industrial / Development banks collect cash yesteryear issuing shares & debentures together with providing long-term loans to industries. The primary objective of these banks is to furnish long-term loans for expansion together with modernisation of industries.
In Republic of Republic of India such banks are established on a large scale later independence. They are Industrial Finance Corporation of Republic of Republic of India (IFCI), Industrial Credit together with Investment Corporation of Republic of Republic of India (ICICI) together with Industrial Development Bank of Republic of Republic of India (IDBI).
Type 4. Land Mortgage / Land Development Banks
Land Mortgage or Land Development banks are likewise known every bit Agricultural Banks because these are formed to finance agricultural sector. They likewise assist inwards dry soil development.
In India, Government has come upwards forrad to assistance these banks. The Government has guaranteed the debentures issued yesteryear such banks. There is a nifty run a hazard involved inwards the financing of agriculture together with by together with large commercial banks exercise non receive got much involvement inwards financing agricultural sector.
Type 5. Indigenous Banks
Indigenous banks agency Money Lenders together with Sahukars. They collect deposits from full general populace together with grant loans to the needy persons out of their ain funds every bit good every bit from deposits. These indigenous banks are pop inwards villages together with small-scale towns. They perform combined functions of trading together with banking activities. Certain well-known indian communities similar Marwaries together with Multani fifty-fifty today run specialised indigenous banks.
Type 6. Central / Federal / National Bank
Every province of the footing has a fundamental bank. In India, Reserve Bank of India, inwards U.S.A, Federal Reserve together with inwards U.K, Bank of England. These fundamental banks are the bankers of the other banks. They furnish specialised functions i.e. lawsuit of newspaper currency, working every bit bankers of government, supervising together with controlling unusual exchange. Influenza A virus subtype H5N1 fundamental banking concern is a non-profit making institution. It does non bargain with the populace but it deals with other banks. The principal responsibleness of Central Bank is thorough command on currency of a country.
Type 7. Co-operative Banks
In India, Co-operative banks are registered nether the Co-operative Societies Act, 1912. They by together with large hand credit facilities to small-scale farmers, salaried employees, small-scale industries, etc. Co-operative Banks are available inwards rural every bit good every bit inwards urban areas. The functions of these banks are simply similar to commercial banks.
Type 8. Exchange Banks
Hong Kong Bank, Bank of Tokyo, Bank of America are the examples of Foreign Banks working inwards India. These banks are mainly concerned with financing unusual trade.
Following are the diverse functions of Exchange Banks :-
- Remitting coin from i province to simply about other country,
- Discounting of unusual bills,
- Buying together with Selling Gold together with Silver, and
- Helping Import together with Export Trade.
Type 9. Consumers Banks
Consumers banking concern is a novel add-on to the existing type of banks. Such banks are unremarkably found solely inwards advanced countries similar U.S.A. together with Germany. The primary objective of this banking concern is to hand loans to consumers for buy of the durables similar Motor car, tv set set, washing machine, furniture, etc. The consumers receive got to repay the loans inwards slowly installments.
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