Types Of Banks In India 2024

So today we are going to look at the types of banks in India and also, we are going to take a look into the types of Banking in India, the slight difference but let’s directly jump in and not waste any time,

So the types of banks in India what are the different types of banks so primarily just remember the definition of the scheduled commercial banks, but remember that the SCBs are included in the second schedule of the RBI act 1934, so that is why they are called the scheduled commercial bank very important definition, and also another clause the minimum paid-up capital and reserves need to be at least 25 lakh rupees,

RBI has started something called the on-tap banking license so the on-tap banking license for that to get a license and create your own private bank you need to have a capital of 500 Crore, so 500 crores are the current capital that you require and that is why this thing is right now not that much valid you can just remember it for historical reasons,

scheduled commercial bank

and now the detailed activities for a scheduled commercial bank it must be submitted to the Reserve Bank of India weekly, so a lot of different things must be done for example the cash reserve ratio the statutory liquidity ratio and all the various compliance is that the Reserve Bank wants from these banks they have to meet,

And now they also need to work interest of the depositors this is very important that all the SCBs are the must ensure that the deposit interest is protected and then coming to the non-scheduled banks,

So in the non-scheduled banks that just remember very important that they are of course not in the second schedule of The Reserve Bank of India that is a no-brainer and also they cannot avail the Repo operations the repurchase agreement operations, the short term loans that the Reserve Bank of India gives to the scheduled commercial banks for their liquidity miss matches that kind of thing cannot be taken by the non-scheduled banks, so that is very important to remember and of course they are not included in the second schedule,

Now let us take a look at the overall structure of banks in India, so here we are with the overall structure so at the top of the food chain you have the regulator’s now who is the regulator’s so RBI Reserve Bank of India they are regulating all the banks in India then you also have the SEBI regulations so they are the regulator of the capital markets and some part of the money market as well,

then you have the NABARD the bank which regulates all the agricultural and rural development stuff and then you have the IRDAI so they are regulating all the insurances and since we have, right now banks can also sell insurances so as you know we have a term for it is called banc assurance so that is why the IRDAI, also comes into the picture, then you have the PFRDA and these are the most important ones there is also the NHB and different other regulator but just remember that they are the top-level that’s the most important thing,

After the regulators the next level it has scheduled bank and also non scheduled banks, so right now we just took a look at the differences between the scheduled banks and the non-scheduled banks that’s what you need to remember, cspsbi apply and now coming to the non-scheduled banks,

What are the types of non-scheduled banks In India ?

we have the non-scheduled cooperative banks then you have the payment banks the small finance banks and the local area Banks

So here we are, I have explained a few types of banks in India, I hope this article was informative for you, thank you.