Recent developments in banking sector :
(a) Small Finance Banks : The main aim of small finance banks is to promote financial assistance to small business units, small and marginal farmers, micro and small industries and other unorganised sectors of the economy.
It also assists with high technology at low cost of operations.
(b) Payments Banks : Payment banks are like other banks only, but they operate on a smaller scale without involving any credit risk. It can carry almost all banking operations but cannot advance loans or issue credit cards. It can accept deposits upto ₹ one lakh. It can offer following services to its customers – remittance services, mobile payments, ATM facility, Debit cards, net banking, etc.
(c) Universal Banks : Universal banks refer to those banks that offer a wide range of financial services like commercial banking and investment banking and also offer other services, especially insurance service. It is a multipurpose and multi-functional financial supermarket providing both banking and financial services through a single window.
(d) Local Area Banks : Local area bank scheme was introduced in August, 1996. It was established to mobilize rural savings by private local banks and make them available for investments in the local areas. This helps to bridge the gap in credit availability and strengthens the institutional credit system in the rural and semi-urban areas.
