The correct answer is Co-operative banks.

• Co-Operative Banks are small financial institutions that offer lending facilities to small businesses in both urban and non-urban regions.
  • These are monitored and regulated by the Reserve Bank of India (RBI) and come under the Banking Regulations Act, 1949 as well as the banking laws act, 1965.
  • These Banks have been opened with the motto of ‘no-profit-no-loss’ and thus, do not seek profitable ventures and customers only.
  • Farmers can avail of agricultural loans on minimum interest rates from the Co-operative Banks.
  • Providing easy and accessible loans and credit benefits in the rural areas with scarce banking facilities.
  • The annual profit earned is spent on financial reserves and required resources and a part of it is distributed among the Co-operative members, as per the prescribed limitations.
  • It has also been advised that a special committee must be assigned only to monitor the proper functioning of these financial entities.

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• Private commercial banks
  • Private Sector Commercial Banking is a category of banking that aims to provide privileged services to its customers.
  • Private Sector Commercial Banks are financial institutions that primarily owned and operated by high-net-worth private individuals and business organizations. 
• Public commercial banks
  • ​These banks are those financial institutions that have at least 51% of their ownership being held by the central government.
  • The management control is also in the hands of the union government.
  • State Bank of India, PNB, Bank of India are some examples.
• Development banks
  • Development banks are specialized financial institutions.
  • They provide medium and long-term finance to the industrial and agricultural sectors.
  • They provide finance to both the private and public sectors.