Major Types Of Banks In India
With an increase in the range of financial activities in the Indian banking sector
, there are different of banks that cater to specific requirements of the customers. Today, we have banks catering to customers through personalized services and banks that offer specific services. Typically, banks classified by their activities. Examples of these activities include investment, retail or business.
The following are the main types of
Banks in India :
1. Public sector banks
2. Private sector banks
3. Co-operative banks
Public sector banks
These banks operated and controlled by the government. These banks actively support a huge number of operations that join the countrys liquidity in the banking sector.
Advantages:
Government of India supported the Public sector banks, therefore the depositors money is safe.
Public Provident Fund (PPF) accounts opened at SBI branches which offer tax-free returns.
Disadvantages:
It is not as modern as private sector banks.
Many of the branches of these banks are now slowly introducing internet banking, ATM cards and other facilities.
Private sector banks
It work on a purely profit basis. Also called central banks and new generation banks, state government control the all private sector of their respective countries. While they are known to offer quick, easy and convenient options for customers, they are not considered as reliable and committed to growing the wealth of their customers as nationalized banks.
Advantages:
It provides best use of technology like Internet banking, ATM and phone banking.
The bank usually sent their statements by post every month or every 3 months along with notification about their changes in bank charges.
Disadvantages:
It runs like a business. Even though, there are lots of advantages to this, the major disappointment comes on the service charges.
Co-operative Banks
This system is also usually more integrated than credit union systems. Local branches of cooperative banks choose their own boards of directors and manage their own operations, but most strategic decisions must approval from a central office. Credit unions usually keep strategic decision-making at a local level, though they share back-office functions, such as access to the global payments system, by federating.
The Co-operative banks in India started functioning almost 100 years ago. The Co-operative bank is an important constituent of the Indian Financial System, judging by the role assigned to co-operative, the expectations the co operative is supposed to fulfil, their number, and the number of offices the co-operative bank operate. Though the co operative movement originated in the West, but the importance of such banks have assumed in India is rarely paralleled anywhere else in the world. The cooperative banks in India plays an important role even today in rural financing. The businessess of co-operative bank in the urban areas also has increased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks. Co-operative Banks in India are registered under the Co-operative Societies Act. The co-operative bank is also regulated by the RBI.
Advantages:
They offer a higher rate of interest.
Most of the banks are open in the evening. That makes it easy for working people.
Disadvantages:
Mutual funds dividends cant be directly credited.
If no cash deposit or withdrawal in the account of the customer for more than 1 year the account becomes inactive.
Banks India provides all branch information with IFSC code, MICR code and other details about branches. It also provides List of ATM location details with appropriate address.
by: CMTES
Glp Laps In India Celebration Days Are Here Again - Send Rakhi To India Send Rakhi To India Without Any Hassle. Log Furniture India, Jodhpur Furniture Pamper Manually With The 5 Most Excellent Luxury Tours To India Trip To India To Get The Best Of It Jet Konnect Connects India Enjoy Watching 4 Beautiful Monuments With India Tours Demand Trends For Translite Album In India South India Tourism A Different Experience Altogether Top Three Notable Tourist Destinations In North India Private Banks Hiring In India Incredible Tour Features Of Great India