Page 3 - Digi Notes : General Awareness - 09.05.2016
P. 3
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3. Development Banks (IFCI, SFCs, SIDBI, NABARD)
4. Co-operative Banks
State Co-operative Banks
Central Co-operative Banks
Primary Credit Societies
5. Specialized Banks (EXIM Bank)
Central Bank
A bank which is entrusted with the functions of guiding and regulating the banking system of a country is
known as its Central bank. Such a bank does not deal with the general public.
It acts essentially as Government’s banker, maintain deposit accounts of all other banks and advances
money to other banks, when needed.
The Central Bank provides guidance to other banks whenever they face any problem.
It is therefore known as the banker’s bank. The Reserve Bank of India is the central bank of our country.
The Central Bank maintains record of Government revenue and expenditure under various heads.
It also advises the Government on monetary and credit policies and decides on the interest rates for
bank deposits and bank loans.
In addition, foreign exchange rates are also determined by the central bank. Another important function of
the Central Bank is the issuance of currency notes, regulating their circulation in the country by different
methods.
No other bank than the Central Bank can issue currency.
Commercial Banks
Commercial Banks are banking institutions that accept deposits and grant short-term loans, and advances to
their customers. In addition to giving short-term loans, commercial banks also give medium-term and long-
term loan to business enterprises. Now-a-days some of the commercial banks are also providing housing
loan on a long-term basis to individuals. There are also many other functions of commercial banks, which are
discussed later in this lesson.
Types of Commercial banks:
Commercial banks are of three types i.e., Public sector banks, Private sector banks and Foreign banks.
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3. Development Banks (IFCI, SFCs, SIDBI, NABARD)
4. Co-operative Banks
State Co-operative Banks
Central Co-operative Banks
Primary Credit Societies
5. Specialized Banks (EXIM Bank)
Central Bank
A bank which is entrusted with the functions of guiding and regulating the banking system of a country is
known as its Central bank. Such a bank does not deal with the general public.
It acts essentially as Government’s banker, maintain deposit accounts of all other banks and advances
money to other banks, when needed.
The Central Bank provides guidance to other banks whenever they face any problem.
It is therefore known as the banker’s bank. The Reserve Bank of India is the central bank of our country.
The Central Bank maintains record of Government revenue and expenditure under various heads.
It also advises the Government on monetary and credit policies and decides on the interest rates for
bank deposits and bank loans.
In addition, foreign exchange rates are also determined by the central bank. Another important function of
the Central Bank is the issuance of currency notes, regulating their circulation in the country by different
methods.
No other bank than the Central Bank can issue currency.
Commercial Banks
Commercial Banks are banking institutions that accept deposits and grant short-term loans, and advances to
their customers. In addition to giving short-term loans, commercial banks also give medium-term and long-
term loan to business enterprises. Now-a-days some of the commercial banks are also providing housing
loan on a long-term basis to individuals. There are also many other functions of commercial banks, which are
discussed later in this lesson.
Types of Commercial banks:
Commercial banks are of three types i.e., Public sector banks, Private sector banks and Foreign banks.
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