List of Different Types of Banks in India, Check Indian Banking Sectors, Categories, and More details

Safalta Expert Published by: Saloni Bhatia Updated Wed, 09 Nov 2022 10:51 AM IST


Curious to know about the different types of banks in India? Check the various types of banks, their functioning and more here at

Looking for the list of different types of banks in India? The details on the banking system are the most important topics for various examinations. It is a part of money and basking. The information on banks is important for all sorts of examinations like UPSC, Bank PO etc. The candidates must have a clear idea about the types of banks and their functions. Banks are financial institutions that perform deposit and lending functions. They are the credit creators and avenues for saving in the economy. In India, there are various types of banks ranging from payment banks to scheduled commercial banks, foreign banks and Indian banks along with types like Reginal Rural Bank etc. The space below has the list of various banks in India and their functions. If you are preparing for competitive exams and looking for expert guidance, you can join expert-driven banking online classes: Join Here.

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Table of Content

Types of Banks in India

There are different types of banks based on the functions they perform and the authorities they deal with.

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The classification of banks is into the following types:
  • Central Bank
  • Cooperative Banks
  • Commercial Banks
  • Regional Rural Banks (RRB)
  • Local Area Banks (LAB)
  • Specialized Banks
  • Small Finance Banks
  • Payments Banks
This is a crucial subject for the IAS Exam. Aspirants will learn about the Indian banking system, its functions, and the different types of banks in this article.
The several types of banks in India, their functions, and a list of banks under each sector are all part of the banking awareness syllabus that is covered in most government exams.

Central Bank

Our country's central bank is the Reserve Bank of India. Each country has a central bank that oversees all of the country's other financial institutions.
The central bank's principal role is to serve as the government's bank and to oversee and regulate the country's other banking institutions. The functions of a country's central bank are listed below:
  • assisting other financial institutions
  • Issuing money and enforcing monetary policies
  • The financial system's supervisor
In other words, the country's central bank is also known as the banker's bank because it assists other banks in the country and runs the country's financial system under the supervision of the Government.

Cooperative Banks

  • These banks are governed by a law enacted by the state government. They provide short-term loans to agriculture and related industries.
  • Cooperative banks' principal purpose is to enhance social welfare by providing low-interest loans.
  • They are arranged in a three-tiered system.
  • State Cooperative Banks, Tier 1 (State Level) (regulated by RBI, State Govt, NABARD)
  • The RBI, the government, and the National Bank for Agriculture and Rural Development (NABARD) all contribute to the project's funding. After then, the money is allocated to the general population.
  • These banks are subject to CRR and SLR concessions. (SLR: 25%, CRR: 3%)
  • The state owns the company, and the senior management is chosen by the members.
  • Central/District Cooperative Banks, Tier 2 (District Level)
  • Tier 3 (Village Level) – Agriculture (Primary) Cooperative Banks

Commercial Banks

  • The Banking Companies Act of 1956 established the company.
  • They function on a commercial basis, with profit as their primary goal.
  • They are owned by the government, state, or any private company and have a unified structure.
  • They look after all sectors, from rural to urban.
  • Unless the RBI directs otherwise, these banks do not charge concessional interest rates.
  • These banks' primary source of funds is public deposits.
  • Commercial banks are further classified into three types:
  • Public sector banks are those in which the government or the country's central bank owns the majority of the stock.
  • Banks in the private sector are those in which a private entity, an individual, or a group of people owns the majority of the stock.
  • Foreign Banks – This category includes banks with headquarters in other nations and branches in the United States.

The following is a list of our country's commercial banks:

Commercial Banks in India
Public Sector Banks Private Sector Banks Foreign Banks

1. Punjab National Bank (

2. Indian Bank

3. State Bank of India

4. Canara Bank

5. Union Bank of India

6. Indian Overseas bank

7. UCO Bank

8. Bank of Maharashtra

9. Punjab and Sind Bank 

10. Bank of India 

11. Central Bank of India 

12. Bank of Baroda Gujarat

Catholic Syrian Bank
City Union Bank
Dhanlaxmi Bank
Federal Bank
Jammu and Kashmir Bank
Karnataka Bank
Karur Vysya Bank
Lakshmi Vilas Bank
Nainital Bank
Ratnakar Bank
South Indian Bank
Tamilnad Mercantile Bank
Axis Bank
Development Credit Bank (DCB Bank Ltd)
IndusInd Bank
Kotak Mahindra Bank
Yes Bank
Bandhan Bank of Bandhan Financial Services.
Australia and New Zealand Banking Group Ltd.
National Australia Bank
Westpac Banking Corporation
Bank of Bahrain & Kuwait BSC
AB Bank Ltd.
Deutsche Bank
DBS Bank Ltd.
United Overseas Bank Ltd
J.P. Morgan Chase Bank
Standard Chartered Bank
There are over 40 Foreign Banks in India

Regional Rural Banks (RRB)

  • These are unique types of commercial banks that lend to agriculture and the rural economy at a reduced rate.
  • RRBs were founded in 1975 and are governed by the 1976 Regional Rural Bank Act.
  • RRBs are 50/50 joint ventures between the federal government and state governments (15%), as well as a commercial bank (35 percent ).
  • Between 1987 and 2005, 196 RRBs were established.
  • From 2005 forward, the government began merging RRBs, bringing the total number of RRBs to 82.
  • A single RRB cannot open branches in more than three districts that are geographically connected.
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Local Area Banks (LAB)

  • In India, it was first introduced in 1996.
  • The private sector organizes these.
  • Local Area Banks' primary goal is to make a profit.
  • Local Area Banks are governed by the 1956 Companies Act.
  • There are now just four Local Area Banks in existence, all of which are located in South India.

Specialized Banks

  • Certain banks exist just to serve a certain purpose. Specialized banks are the name for several types of financial institutions. These are some of them:
  • SIDBI (Small Industries Development Bank of India) - SIDBI can provide a loan for a small-scale enterprise or business. With the support of this bank, small businesses can get current technology and equipment.
  • Export and Import Bank (EXIM Bank) - EXIM Bank stands for Export and Import Bank. This type of bank can provide loans or other financial help to foreign countries that are exporting or importing goods.
  • NABARD (National Bank for Agricultural and Rural Development) – People can resort to NABARD for any type of financial support for rural, handicraft, village, and agricultural development.
  • Other specialist banks exist, each with a unique function to play in the financial development of the country.

Small Finance Banks

This sort of bank, as the name implies, provides loans and financial help to micro industries, small farmers, and the unorganized sector of society. The country's central bank oversees these institutions.
The following is a list of our country's small finance banks:
AU Small Finance Bank Equitas Small Finance Bank Jana Small Finance Bank Northeast Small Finance Bank
Capital Small Finance Bank Fincare Small Finance Bank Suryoday Small Finance Bank Ujjivan Small Finance Bank
Esaf Small Finance Bank Utkarsh Small Finance Bank    
Also Read: IBPS RRB PO Cut Off 

Payments Banks

The Reserve Bank of India conceptualized the payments bank, a newly developed form of banking. People who have a payment bank account can only deposit up to Rs.1,00,000/- and cannot apply for loans or credit cards through this account.
Payment banks provide services such as internet banking, mobile banking, ATM card issuance, and debit card issuance. The following is a list of our country's few payment banks:
  • Airtel Payments Bank
  • India Post Payments Bank
  • Fino Payments Bank
  • Jio Payments Bank
  • Paytm Payments Bank
  • NSDL Payments Bank


Government Banks

The public sector banks or PSBs are more commonly known as Government Banks. The government banks are not under the direct control of the government but the Government of India is the majority stakeholder in them i.e the GOI has more than 51% of the shares.  There are 12 government banks in India or Public sector banks. 


What are diffrenet types of banks in India?

The different types of banks in India are:
  • Central Bank
  • Cooperative Banks
  • Commercial Banks
  • Regional Rural Banks (RRB)
  • Local Area Banks (LAB)
  • Specialized Banks
  • Small Finance Banks
  • Payments Banks

What is the Central Bank In India?

The reserve bank of India Plays the role of Central Bank In India.

How many nationlaised banks are there in India?

There are a total of 12 nationalized banks in India.

What are the Goverenmnet banks In India?

The public sector banks or PSBs are more commonly known as Government Banks. The government banks are not under the direct control of the government but the Government of India is the majority stakeholder in them i.e the GOI has more than 51% of the shares.  There are 12 government banks in India or Public sector banks. 

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