The focus of banking is varied, the
needs diverse and methods different.
Thus, we need distinctive kinds of
banks to cater to the above-mentioned complexities.
Banks can be classified into the
1. Commercial banks
2. Cooperative banks
3. Specialised banks
4. Central bank
(i) Commercial Banks: Commercial
banks are institutions dealing in
money. These are governed by Indian
Banking Regulation Act 1949 and
according to it banking means
accepting deposits of money from the
public for the purpose of lending or
Cooperative Banks: Cooperative
Banks are governed by the provisions
of State Cooperative Societies Act and
meant essentially for providing cheap
credit to their members. It is an
important source of rural credit i.e.,
agricultural financing in India.
(iii) Specialised Banks: Specialised
banks are foreign exchange banks,
industrial banks, development banks,
export-import banks catering to
specific needs of these unique activities.
These banks provide financial aid to
industries, heavy turnkey projects and
(iv) Central Bank: The Central bank
of any country supervises, controls and
regulates the activities of all the
commercial banks of that country. It
also acts as a government banker. It
controls and coordinates currency and
credit policies of any country. The
Reserve Bank of India is the central
bank of our country.