1. Commercial banks: Banks which accept deposits from the public and grant loans to traders, individuals, agriculture, industries, transport, etc. in order to earn profit. Their lending is in comparatively small amounts and mostly for short and medium period. e.g.. State Bank of India
2. Development Banks: Huge finance required for investment, expansion and modernisation of big industries and others are granted by a separate type of banks called development Banks. They are also called industrial banks, e.g., IFCI, SIDBl.
3. Cooperative Banks: All cooperative banks in India are owned by its customers or members who are farmers, small traders and others. Cooperative banks in India are either urban based or rural based. example NAFED,Tamil Nadu State Apex Cooperative Bank – Head Office, Chennai.
4. Foreign Banks: Banks which have registered office in a foreign country and branches in India.are called foreign banks, e.g., Bank of America – USA.
5. Regional Rural Banks (RRBs): The RRBs were formed under the Regional Rural Bank Act 1976, jointly by the Central Government, State Government, and a sponsor bank, exsmple Pandian Grama Bank.
