Banks may be classified into the following categories:
- Central bank:
It is the apex bank which regulates the entire banking system and maintain monetary stability in the country. It is the banker to all other banks and to government.
2. Commercial bank:
These bank collect demand deposits.they allows withdraw of money through cheque etc.
3. Development Bank:
The bank are set up to support industry growth and development. They provide long term credit to industry and render support and advisory services.
4. Indigenous bankers:
Banking units which operate on traditional lines are called indigenous bankers. They are known as native bank & primitive bank etc
5. Scheduled bank:
Banks whose paip up capital and reserves are aa per RBI guidelines and which are included in the second schedule of the RBI act 1934 are scheduled bank
6. Non scheduled bank:
they are commercial bank which are not included in the second schedule bank of the act 1934.
7. Agriculture bank:
Banks which provide financial assistance to agriculture activities are called agriculture bank.
8. Regional rural bank:
they are bank operating in rural areas providing banking services to the rural population.
9. Co-operative bank:
they are bank operating on the basis of cooperative principles and registered under societies registration act.
10. Exchange bank:
they are bank who deal in foreign exchange and specialise in financing foreign trade.
11. Saving bank:
savings bank collect the saving of people. Their primary objective is to promote and collect saving from small deposits.