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:
These banks operated and controlled by the government. These banks actively support a huge number of operations that join the country’s liquidity in the banking sector.
- 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.
- 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.
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.
- 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.
- It runs like a business. Even though, there are lots of advantages to this, the major disappointment comes on the service charges.
This systems are 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.
- They offer a higher rate of interest.
- Mutual funds dividends can’t be directly credited.
- If no cash deposit or withdrawal in the account of the customer for more than 1 year the account becomes inactive.