Types of Banks

Financial institutions that deal with deposits and lending are known as banks. There are various types of banks in India, each with its unique set of responsibilities. The bank accepts public deposits at a significantly lower rate, known as the deposit rate, and lends money at a significantly higher rate, known as the lending rate. Although banks' basic responsibilities are essentially same, the types of people with whom each sector or type deals may differ. The different types of banks in India include- Central Bank, Cooperative Banks, Commercial Banks, Regional Rural Banks, Local Area Banks, Specialized Banks, Small Finance Banks and Payment Banks. Depositors entrust their money to banks or credit unions in various accounts, and the financial organisation in turn makes loans to individuals, families, or corporations making large purchases like houses and cars. Banks can entice clients by offering interest on money held in their accounts, such as savings accounts. Banks make the majority of their money by charging interest and fees on the loans they make.