In India, the Reserve Bank of India (RBI) is the apex banking institution that regulates the monetary policy in the country. Commercial Banks can be further classified into public sector banks, private sector banks, foreign banks and Regional Rural Banks (RRB). On the other hand, cooperative banks are classified into urban and rural.

Banks can be classified into various types. Given below are the bank types in India:-Central Bank; Cooperative Banks; Commercial Banks; Regional Rural Banks (RRB) Local Area Banks (LAB) Specialized Banks; Small Finance Banks; Payments Banks; This is an important topic for the IAS Exam. In this article, aspirants will get information on the banking system in India, its functions, and the type of banks in India.

The table below represents the different types of banks in India and how it is further divided: 1. Central Bank 2. Commercial Banks 3. Co-operative Banks 4. Payments Banks 5. Scheduled Banks 6. Non-Scheduled Banks 7. Small Finance Banks The central bank of India is known as the Reserve Bank of India.

Indian Banks are broadly classified into two types – scheduled and non-scheduled. These banks could be commercial, small finance, payments and cooperative banks. Private, public, foreign and regional rural are common types of commercial banks. Small finance and cooperative banks deal with small-scale clients.

1.2 Private Sector Banks