Different types of banks

Different types of banks

Banking is a comprehensive wide term in which different types of financial activity take places. In other words – a system or place where we put our money or valuable things for safety purpose and take back or withdrawal according to our need or requirement. Bank system deal in money, it takes money from depositor on a low rate and gives it to industries on other/higher rates according to their needs. In past time lot of people involve in these types of activity like – shroffs, seths, mahajans, baniya or sahukar etc.

Different types of banks

Here, we mention some different types of banks

Commercial bank – a bank which accept deposit and allow people for withdrawal in any way like cash or cheque,  come under a commercial bank. It also provide help for trade, industry, commerce, discount bill, payment, tax and money transfer etc.

Saving bank – these banks always motivate for saving for their future needs, by introducing a variety of attractive schemes. These banks are hardly working in current days.

Land development bank – these bank set up for especially for farmer. They provide fund for a long run with a low charge and recover in installments over a long run.

Co-operative bank – these banks formed on mutual benefits for a society. These banks provide short term support to farmer & small scale industry. These are formed on village level, district or state level.

Industrial bank – these banks provide medium and long term financial help to industry. Some of like – Industrial Finance Corporation of India (IFCI), Industrial Credit and Investments Corporation of India (ICICI), National Small Industries Corporations ltd.

Exchange bank – these banks have a concern with buying & selling of foreign exchange and provide support for export-import. In it, we include foreign exchange, bill payment or exchange, credit facility and allow hedging.