Banks in India play an important role in the country's financial development, helping people save, invest, and manage their money. From local branches to digital platforms, India offers a diverse range of banking options to cater to various needs.
Save upto ₹46,800 in tax under Sec 80C
Inbuilt Life Cover
Tax Free Returns Unlike FD+
A banking system is crucial for India as it plays a vital role in the country's economic growth and financial stability. It serves as the backbone of the economy, ensuring that money flows smoothly and efficiently. The banking system provides various essential services that individuals, businesses, and the government rely on.
People can deposit their earnings and savings, knowing that their funds are protected and accessible when needed. This builds confidence among the public and encourages them to save, which in turn contributes to capital formation and economic development.
The Reserve Bank of India (RBI) is the main financial institution in India and serves as the Central Bank. It plays an important role in formulating and implementing monetary policy, regulating and supervising other banks, issuing and managing India's currency, and maintaining financial stability.
Commercial Banks provide a wide range of financial services to individuals, businesses, and governments. These banks accept deposits from the public and offer loans and credit facilities.
They are further categorized into:
Public Sector Banks
Private Sector Banks
Public Sector Banks are financial institutions where the majority of the shares are owned by the government. These banks play a significant role and account to 75% of the total banking sector of India. They have a widespread presence, especially in rural and remote areas, making banking services accessible to a larger portion of the population.
Public Sector Banks of India are:
State Bank of India
Bank of Baroda
Punjab & Sind Bank
Central Bank of India
Bank of India
Union Bank of India
Indian Overseas Bank
Punjab National Bank
Bank of Maharashtra
Private Sector Banks are owned and operated by private individuals or corporations. Private sector banks are known for their customer-centric approach and efficient service delivery. The rules and regulations of these banks are laid down by the Reserve Bank of India.
Private Sector Banks of India:
Tamilnad Mercantile Bank
Jammu and Kashmir Bank
South Indian Bank
Karur Vysya Bank
City Union Bank
Kotak Mahindra Bank
Lakshmi Vilas Bank
Foreign Banks are banks that have their headquarters located outside India but have established a presence within the country. These banks contribute to the diversification of the Indian banking landscape and are supposed to follow the rules and regulations of both the home country and the country they operate in.
Foreign Banks in India are:
Barclays Bank Plc.
Bank of Ceylon
Industrial Bank of Korea
Qatar National Bank (Q.P.S.C.)
J.P. Morgan Chase Bank N.A
D.B.S. Bank India Limited
United Overseas Bank Ltd
Credit Suisse A.G.
National Australia Bank
First Abu Dhabi Bank P.J.S.C.
Industrial & Commercial Bank of China Ltd.
M.U.F.G. Bank, Ltd.
Credit Agricole Corporate & Investment Bank
Abu Dhabi Commercial Bank Ltd.
Sonali Bank Ltd.
Standard Chartered Bank
Emirates Bank NBD
Coöperatieve Rabobank U.A.
Regional Rural Banks (RRBs) are specific banks that concentrate on helping people who live in rural and partly urban areas such as small farmers, marginal farmers and labourers. They make sure that people in places have access to banking services and can manage their money. Public Sector Banks support RRBs, and they work together with the government to promote farming and rural growth.
Regional Banks in India:
Andhra Pradesh Grameena Vikas Bank (sponsored by State Bank of India)
Assam Gramin Vikash Bank (sponsored by United Bank of India)
Bihar Gramin Bank (sponsored by Punjab National Bank)
Chhattisgarh Rajya Gramin Bank (sponsored by State Bank of India)
Goa Gramin Bank (sponsored by Indian Bank)
Gujarat Gramin Bank (sponsored by State Bank of India)
Haryana Gramin Bank (sponsored by Punjab National Bank)
Himachal Pradesh Gramin Bank (sponsored by State Bank of India)
Jammu & Kashmir Grameen Bank (sponsored by Jammu & Kashmir Bank)
Jharkhand Rajya Gramin Bank (sponsored by State Bank of India)
Co-operative banks are banks that are registered under the Co-operative Societies Act, 1912. They have a unique structure as they are owned and operated by members of an elected committee, who are individuals with a common interest. These banks focus on providing financial services to people on the basis of no loss, no profit model.
In urban areas their main focus of people are entrepreneurs, small businesses and self-employed people. In rural areas their main focus is to provide financial help to agriculture based activities.
They are categorized into:
Urban Co-operative Banks
Rural/State Co-operative Banks
Urban Co-operative Banks are the lifeline of urban and semi-urban regions in India. As primary co-operative banks, they focus on serving smaller businesses and individuals within local communities. These banks understand the unique financial needs of their areas and provide tailored solutions to meet them.
State Co-operative Banks are crucial components of India's co-operative banking system. They function as umbrella organizations, overseeing the activities of central co-operative banks within a specific state. By providing guidance, support, and coordination, State Co-operative Banks ensure the effective functioning of co-operative banking at the state level.
Payments banks are a relatively new addition to India's banking sector and are a concept by the RBI. These banks focus on providing essential financial services such as savings accounts, remittance services, and mobile payments to individuals and small businesses. Payment Banks are permitted to receive a limited deposit, marked at Rs. 1 lakh per customer.
Small Finance Banks are specialized banks that focus on providing financial services to the unbanked sections of the society, including small and marginal farmers, micro and small industries, and other low-income groups. These banks offer basic banking services, promote financial inclusion, and contribute to economic growth at the grassroots level.
This category of bank is authorized under Section 22 of the Banking Regulation Act, 1949 and is subjected to the regulations of the Provisions Act, 1934.
Small Finance Banks in India:
Fincare Small Finance Bank Ltd.
Utkarsh Small Finance Bank Ltd.
North East Small Finance Bank Ltd.
Jana Small Finance Bank Ltd.
Suryoday Small Finance Bank Ltd.
Capital Small Finance Bank Ltd.
Equitas Small Finance Bank Ltd.
ESAF Small Finance Bank Ltd.
Ujjivan Small Finance Bank Ltd.
AU Small Finance Bank Ltd.
Scheduled banks in India are those banks that are included in the 2nd Schedule of the Reserve Bank of India Act, 1934. These banks fulfill certain criteria and adhere to specific regulations.
Non-scheduled banks in India are those that are not included in the 2nd Schedule of the RBI Act, 1934. These banks are smaller in scale and may not meet the criteria set for scheduled banks.
Taxable brokerage accounts
Certificate of deposit
Money market accounts
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
24 Nov 2023A Tax Saving Fixed Deposit is a financial instrument designed to
14 Aug 2023Karur Vysya Bank or KVB FD interest rates range from 4.00% to
10 Jul 2023एचडीएफसी एफडी ब्याज
18 Apr 2023Savings and emergency funds are two crucial aspects of financial
12 Apr 2023Banks offer the facility to avail of a loan against Fixed