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Different Types of Banks and Their Functions
Different Types of Banks and Their Functions
https://www.rbi.org.in/scripts/banklinks.aspx
MCQ
• Canara bank is a part of ________in Indian
banking system.
a. Public sector banks
b. Private sectors banks
c. Foreign banks
d. Regional Rural Banks
MCQ
• Canara bank is a part of ________in Indian
banking system.
a. Public sector banks
b. Private sectors banks
c. Foreign banks
d. Regional Rural Banks
Public sector banks-functions
• Acceptance of deposits and advancing of loans
• Agency functions
• General utility functions
• Instructions for customers
• Undertake govt. payments
• Collections and payments on behalf of customers
• Merchant banking services
• Safety custody
MCQs
• Bank of Baroda belongs to the category of___
a. Scheduled banks
b. Unscheduled banks
c. None
MCQs
• Bank of Baroda belongs to the category of___
a. Scheduled banks
b. Unscheduled banks
c. None
Private sector banks
• Private Sector Banks refer to those banks
where most of the capital is in private hands.
https://www.rbi.org.in/scripts/banklinks.aspx
My money
• https://www.youtube.com/watch?v=GI5-brPc
h7M
Private sector banks
• Primary services-deposit and lending
• Secondary services- lockers, draft creation,
cheque collection and transfer, bank
guarantee credit
• Specific services- merchant banking
• Customised services- as per corporate or
individual
MCQs
• Private sector banks are not required to
maintain________ with RBI, need to maintain
with their self
a. Repo rate
b. Reverse rapo rate
c. Cash Reserve Ratio
d. Bank rate
MCQs
• Private sector banks are not required to
maintain________ with RBI, need to maintain
with their self
a. Repo rate
b. Reverse rapo rate
c. Cash Reserve Ratio
d. Bank rate
Local area banks
• These banks are eligible to undertake all type of
functions which are done by any other commercial bank
in ordinary course of banking activities as per banking
laws and practices within their own areas.
• These banks provide loans services to
1. local customers for Agriculture and its allied activities
2. Agro based Industries
3. Small scale Industries
4. trading including non-farm activities
Cont...
https://www.rbi.org.in/scripts/banklinks.aspx
Doubts
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Test yourself
• What is the difference between Local area
banks and Regional Rural Banks?
• Why foreign banks services required to Indian
customers?