Type 1. Saving Banks
Saving banks are established to practise saving habit alongside the people. These banks are helpful for salaried people in addition to depression income groups. The deposits collected from customers are invested inwards bonds, securities, etc. At acquaint nigh of the blogspot.com//search?q=commercial-banks-definitions-primary ">commercial banks behave the functions of savings banks. Postal division every bit good performs the functions of saving bank.
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Type 2. Commercial Banks
Commercial banks are established with an objective to assist businessmen. These banks collect coin from full general populace in addition to plough over short-term loans to businessmen yesteryear way of cash credits, overdrafts, etc. Commercial banks furnish diverse services similar collecting cheques, pecker of exchange, remittance coin from i house to around other place.
In India, commercial banks are established nether Companies Act, 1956. In 1969, xiv commercial banks were blogspot.com//search?q=commercial-banks-definitions-primary">nationalised yesteryear Government of India. The policies regarding deposits, loans, charge per unit of measurement of interest, etc. of these banks are controlled yesteryear the Central Bank.
Type 3. Industrial Banks / Development Banks
Industrial / Development banks collect cash yesteryear issuing shares & debentures in addition to providing long-term loans to industries. The principal objective of these banks is to furnish long-term loans for expansion in addition to modernisation of industries.
In Bharat such banks are established on a large scale subsequently independence. They are Industrial Finance Corporation of Bharat (IFCI), Industrial Credit in addition to Investment Corporation of Bharat (ICICI) in addition to Industrial Development Bank of Bharat (IDBI).
Type 4. Land Mortgage / Land Development Banks
Land Mortgage or Land Development banks are every bit good known every bit Agricultural Banks because these are formed to finance agricultural sector. They every bit good assist inwards dry reason development.
In India, Government has come upwardly forrad to assist these banks. The Government has guaranteed the debentures issued yesteryear such banks. There is a keen run a endangerment involved inwards the financing of agriculture in addition to mostly commercial banks practise non accept much involvement inwards financing agricultural sector.
Type 5. Indigenous Banks
Indigenous banks agency Money Lenders in addition to Sahukars. They collect deposits from full general populace in addition to grant loans to the needy persons out of their ain funds every bit good every bit from deposits. These indigenous banks are pop inwards villages in addition to small-scale towns. They perform combined functions of trading in addition to banking activities. Certain well-known indian communities similar Marwaries in addition to Multani fifty-fifty today run specialised indigenous banks.
Type 6. Central / Federal / National Bank
Every province of the the world has a key bank. In India, Reserve Bank of India, inwards U.S.A, Federal Reserve in addition to inwards U.K, Bank of England. These key banks are the bankers of the other banks. They furnish specialised functions i.e. final result of newspaper currency, working every bit bankers of government, supervising in addition to controlling unusual exchange. H5N1 key banking enterprise is a non-profit making institution. It does non bargain with the populace but it deals with other banks. The principal responsibleness of Central Bank is thorough command on currency of a country.
Type 7. Co-operative Banks
In India, Co-operative banks are registered nether the Co-operative Societies Act, 1912. They mostly plough over credit facilities to small-scale farmers, salaried employees, small-scale industries, etc. Co-operative Banks are available inwards rural every bit good every bit inwards urban areas. The functions of these banks are only similar to commercial banks.
Type 8. Exchange Banks
Hong Kong Bank, Bank of Tokyo, Bank of America are the examples of Foreign Banks working inwards India. These banks are mainly concerned with financing unusual trade.
Following are the diverse functions of Exchange Banks :-
- Remitting coin from i province to around other country,
- Discounting of unusual bills,
- Buying in addition to Selling Gold in addition to Silver, and
- Helping Import in addition to Export Trade.
Type 9. Consumers Banks
Consumers banking enterprise is a novel improver to the existing type of banks. Such banks are normally found exclusively inwards advanced countries similar U.S.A. in addition to Germany. The principal objective of this banking enterprise is to plough over loans to consumers for buy of the durables similar Motor car, boob tube set, washing machine, furniture, etc. The consumers lead maintain to repay the loans inwards slowly installments.
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