Various types of banks:

1. Central Bank: It is the apex bank in the banking system of the country. Reserve Bank of India is the central bank in India, performing the following functions: 

1. It regulates and controls the credit effectively. 

2. It exercises control on all banking activities. 

3. It issues currency and is the representative of the government of India. 

2. Commercial Banks: These banks do general banking functions. These banks are working both in the public as well as private sectors. In India there are 27 commercial banks, i.e. State Bank of India and its associates. Functions of the commercial banks: 

1. They deposit money and advance loans. 

2. They transfer money as the agents of the customers. 

3. They collect bank drafts and cheques and arrange their payment. 

3. Co-operative Banks: In India the co-operative banks are functioning, mainly to fulfill the need of agricultural credit. They work on the basis of co-operative principles. There is three-tier system of cooperative banks in India: 

1. State co-operative bank at state level. 

2. Central co-operative bank at district level. 

3. Primary Agricultural Credit Co-operative Societies (Samities) at village level. 

For a long term credit the government has established Central Land Development Bank at State level and Primary Land Development bank at district level. 

4. Industrial Development Bank: Most of the Industrial banks came into existence after independence as at the central level Industrial Finance Corporation of India, 1948, Industrial Credit and Investment Corporation of India 1955, Industrial Development Bank of India, 1964 and Industrial Reconstruction bank of India 1985 and at state level there is State Finance Corporation. 

5. Regional Rural Banks: Rural banks have been established to fulfill the village level credit needs. The first gramin bank was established on 2nd Oct, 1975. Presently there are 14000 branches of 196 Regional banks in 516 districts.

6. Export – Import Bank: This was established to encourage and to promote foreign trade. The bank provides loan facilities to businessmen engaged in Export and Import trade. In India this bank was established in Jan, 1982. 

7. Investment Bank: The main function of this bank is to collect the scattered savings in the country and utilize them for productive purposes. L.I.C, Unit Trust of India, Mutual Funds etc. are the agencies which are working as Investment banks in India. 

8. Saving Bank: In India it is the commercial banks which are doing the work of the saving banks. There is no such separate bank for savings exclusively. 

9. International Bank: In 1944 after the second world war International Bank for Reconstruction and Development was established in order to stabilize and improve economic condition of various countries of the world. This bank is also called World Bank. It has two associate institutions i.e. International Development Association and International Financial Corporation. 

10.Indigenous Bank: In India the Indigenous banks are very common. They are known as Mahajans, Sahukars, Sarraf, etc. They help the people by providing loans for business and agricultural purposes.