Did you know that India has different types of banks? Each type of bank falls into a category based on its purpose. When one thinks about banks, the most common ones come to our mind. However, the majority of the banks that will come to your mind fall under just 1 category i.e. commercial banks. Apart from that, there are 4 more categories under which Indian banks are classified.
If you are in India and want to know more about the different types of banking institutions available, continue reading. In this article, we will be discussing the five most common types of Indian Banks.
Types of Banks in India
Let us know more about the types of banks in India and the specific purpose that they solve for the citizens.
1. Commercial Banks
Commercial banks are the most well-known banks that provide services like loans, deposits, investments, and credit cards. These provide lending services to both businesses and individuals for various purposes, including home loans for residential purchase or construction and business loans.
2. Small Finance Banks
These give out small loans to those who may not have access to other banking facilities. They offer their customers innovative financial products that include credit cards, personal loans, deposits with attractive rates of interest on savings accounts, etc. These types of banks in India are also a recent addition.
3. Cooperative banks
These exist mainly in rural areas where there is no other banking facility available. They also offer their members savings accounts with low-interest rates as well as agricultural loans. Cooperative banks are directly owned by the government of India, by the state government, or jointly.
4. Specializes Banks
There are specialized banks, too, such as housing finance companies or banks that serve a particular purpose. These focus only on mortgages and do not offer general banking services.
Also, if you are looking for any of the bank facilities then you should know that you will find different types of banks in India to serve your needs. All you need to know is about them and their flow of work. Hop on to our website to know in-depth about the different bank types that are usually operational in India.