Types of banks
Central
Bank
Apex
controlling institution in the banking and financial system.
Functions
controller
of credit,
banker‘s
bank
issuing
currency
2. Commercial Banks
Accepts
deposits from the general public
loans to
the households, the firms and the government. Characteristics
Acceptance
of deposits from public
For the
purpose of lending or investment
Repayable
on demand or lending or investment.
Withdrawal
by means of an instrument, whether a cheque or otherwise.
3. Development Banks
Ø It is considered as a hybrid
institution (functions of a finance corporation and a development corporation).
Ø To provide technical, financial
and managerial assistance for the implementation of project.
Ø „Industrial
Development Bank on India‘ (IDBI)
4. Co-operative Banks
Ø To provide finance to
agriculture.
Ø They aim at developing a system of credit.
In India
there are three wings of co-operative credit system namely
Ø Short term,
Ø Medium-term,
Ø Long term credit.
5. Specialised Banks
Special
act of parliament.
‗National
Bank for Agricultural and Rural development‘ (NABARD) established in 1982
In 1990 a
special bank named small industries development Bank of India (SIDBI)
was
established.
6. Indigenous Bankers
To
provides long term, medium term and short term loan at the higher interest rate
These
banks can be found everywhere in cities, towns, villages.
7. Rural Banking
A set of
financial institution engaged in financing of rural sector is termed as ‗Rural
Banking‘.
The
polices of financing of these banks have been designed in such a way so that
these institution can play catalyst role in the process of rural development.
8. Saving Banks
Ø These banks perform the useful
services of collecting small savings commercial banks also run ―saving bank‖ to
mobilise the savings of men of small means.
Ø Different countries have
different types of savings bank
viz.
Mutual savings bank, Post office saving, commercial saving banks etc.
9. Export - Import Bank
Established
for the purpose of financing foreign trade.
Medium
and long-term financing.
Ø The
Export-Import Bank of India (EXIM Bank) January
1, 1982.
10. Foreign Exchange Banks
These
banks finance mostly to the foreign trade of a country.
They also
buy and self foreign currencies and help businessmen to convert their money
into any foreign currency they need.
Over a
dozen foreign exchange banks branches are working in India have their head
offices in foreign countries.
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