A bank is a licensed financial institution that accepts deposits and makes loans. Banks may also provide financial services such as wealth management, currency exchange, and safe deposit boxes. There are many different types of banks, including retail banks, commercial or corporate banks, and investment banks. The world's first modern bank, Banco di San Giorgio (St. George's Bank), was established in Genoa, Italy in 1406.
Public Sector Banks Are Those Banks In Which More Than 50 Percent Stake Is Held By The Government Of India, And The Remaining Stake Is Held By The Shareholders. In Simple Words, Such Banks Which Are Owned By The Government Of India Are Called Public Sector Banks.
There Are 12 Public Sector Banks In India. Which Are As Follows –
Those Banks Are Called Private Sector Banks In Which More Than 50 Percent Stake Is Held By The Shareholders And Not By The Government Of India. That Is, Public Sector Banks Are Not Completely Owned By The Government Of India.
There Are Mainly 21 Private Sector Banks In India, Some Of Which Are As Follows –
Such Banks Which Operate At The Regional Level Of Different States Are Called Regional Rural Banks. The Main Objective Of These Types Of Banks Is To Provide Banking Facilities To The Weaker Sections Of The People. Rural Banks Are Very Important For The Development Of Small Areas.
There Are A Total Of 43 Regional Rural Banks In India, Some Of Which We Have Mentioned Below –
Similarly, There Are Rural Banks In All The States.
Foreign Banks Are Such Banks Whose Headquarters Are Located Outside The Country. These Types Of Banks Have To Follow The Rules Of Both The Countries. Foreign Banks Are Very Important To Increase The Efficiency Of The Banking System Of Weak Banks.
There Are A Total Of 46 Foreign Banks In India, Out Of Which Some Of The Major Foreign Banks Are As Follows –
By Now You Must Have Understood What Is Commercial Bank And What Are Its Types, Now Let Us Also Know About The Functions Of Commercial Bank.
All The Functions Of Commercial Bank Can Be Mainly Classified Into Three Parts.
Commercial Banks Accept Different Types Of Deposits Under Primary Operations, And The Customer's Deposit Is Returned As Per His Demand. Commercial Banks Deposit Customers' Money In The Form Of Savings Account , Current Account, Recurring Deposit Account (RD) , Fixed Deposit Account (FD) Etc.
Apart From This, In The Primary Work, Commercial Banks Provide Loan Facilities To Their Needy Customers. Commercial Banks Provide Types Of Loans Like Home Loan, Education Loan, Car Loan Etc.
Apart From Loans, Commercial Banks Also Provide Other Facilities To Their Customers Like Cash Loans, Overdrafts, Loans For Investment In Government Securities, Etc.
Overall, Commercial Banks Deal With Money Under Primary Functions.
The Secondary Functions Of The Bank Can Also Be Divided Into Two Parts –
Commercial Banks Create Capital Under Social Work And Lend It To The Government For The Development Of The Country. Apart From This, Commercial Banks Provide Loans To Their Customers At Reasonable Interest Rates.
The Contribution Of Commercial Banks In The Indian Economy Is Very Important. The Progress Of A Country Can Be Known Only Through The Banks. The Bank Provides Banking Facilities To Almost All The Citizens Of The Country.
Banks Create Capital For The Country. Banks Provide Loans To The Government For Development Works. Different Types Of Banks Give Loans To The General Public For Development In Different Areas Of The Country. Banks Act As Advisors, Banks Manage Public Money.
Capital Is Created In The Country Only Through The Bank, And Capital Is Very Important To Take Any Country On The Path Of Development. Now You Might Have Understood What Is The Role Of Banks In The Indian Economy.
There Are Many Advantages Of Commercial Banks, About Which We Have Told You Below –
There Are Also Some Disadvantages Of Commercial Banks Such As –
|Year of Establishment
|State Bank of India
|1 July 1955
|Bank of Baroda
|20 July 1908
|1 July 1906
|Bank of India
|07 September 1906
|26 May 1938
|15 August 1907
|Punjab National Bank
|19 May 1894
|24 April 1865
|6 January 1943
|Union Bank of India
|11 November 1919
|20 November 1923
|Oriental Bank of Commerce
|19 February 1943
|Bank of Maharashtra
|Central Bank of India
|21 December 1911
|Indian Overseas Bank
|10 February 1937
|Punjab And Sind Bank
|24 June 1908
|United Bank of India