Page 4 - Digi Notes : General Awareness - 09.05.2016
P. 4
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Public Sector Banks:
These are banks where majority stake is held by the Government of India or Reserve Bank of India.
Examples of public sector banks are: State Bank of India, Corporation Bank, Bank of Baroda and Dena
Bank, etc.
Private Sectors Banks:
In case of private sector banks majority of share capital of the bank is held by private individuals. These
banks are registered as companies with limited liability. For example: The Jammu and Kashmir Bank Ltd.,
Bank of Rajasthan Ltd., Development Credit Bank Ltd, Lord Krishna Bank Ltd., Bharat Overseas Bank Ltd.,
Global Trust Bank, Vysya Bank, etc.
Foreign Banks:
These banks are registered and have their headquarters in a foreign country but operate their branches in
our country. Some of the foreign banks operating in our country are Hong Kong and Shanghai Banking
Corporation (HSBC), Citibank, American Express Bank, Standard & Chartered Bank, Grindlay’s Bank, etc.
The number of foreign banks operating in our country has increased since the financial sector reforms of
1991. According to a report by RBI there are 47 foreign banks branches in India as on March 31, 2013.
Development Banks
Business often requires medium and long-term capital for purchase of machinery and equipment, for using
latest technology, or for expansion and modernization.
Such financial assistance is provided by Development Banks. They also undertake other development
measures like subscribing to the shares and debentures issued by companies, in case of under
subscription of the issue by the public. Industrial Finance Corporation of India (IFCI) and State Financial
Corporations (SFCs) are examples of development banks in India.
Co-operative Banks
People who come together to jointly serve their common interest often form a co-operative society under
the Co-operative Societies Act. When a co-operative society engages itself in banking business it is called a
Co-operative Bank. The society has to obtain a licence from the Reserve Bank of India before starting
banking business. Any co-operative bank as a society has to function under the overall supervision of the
Registrar, Co-operative Societies of the State. As regards banking business, the society must follow the
guidelines set issued by the Reserve Bank of India.
Types of Co-operative Banks
There are three types of co-operative banks operating in our country. They are primary credit societies,
central co-operative banks and state co-operative banks. These banks are organized at three levels, village
or town level, district level and state level.
State Co-operative Banks:
These are the apex (highest level) co-operative banks in all the states of the country. They mobilise funds
and help in its proper channelization among various sectors. The money reaches the individual borrowers
from the state co-operative banks through the central co-operative banks and the primary credit societies.
www.mahendraguru.com
Public Sector Banks:
These are banks where majority stake is held by the Government of India or Reserve Bank of India.
Examples of public sector banks are: State Bank of India, Corporation Bank, Bank of Baroda and Dena
Bank, etc.
Private Sectors Banks:
In case of private sector banks majority of share capital of the bank is held by private individuals. These
banks are registered as companies with limited liability. For example: The Jammu and Kashmir Bank Ltd.,
Bank of Rajasthan Ltd., Development Credit Bank Ltd, Lord Krishna Bank Ltd., Bharat Overseas Bank Ltd.,
Global Trust Bank, Vysya Bank, etc.
Foreign Banks:
These banks are registered and have their headquarters in a foreign country but operate their branches in
our country. Some of the foreign banks operating in our country are Hong Kong and Shanghai Banking
Corporation (HSBC), Citibank, American Express Bank, Standard & Chartered Bank, Grindlay’s Bank, etc.
The number of foreign banks operating in our country has increased since the financial sector reforms of
1991. According to a report by RBI there are 47 foreign banks branches in India as on March 31, 2013.
Development Banks
Business often requires medium and long-term capital for purchase of machinery and equipment, for using
latest technology, or for expansion and modernization.
Such financial assistance is provided by Development Banks. They also undertake other development
measures like subscribing to the shares and debentures issued by companies, in case of under
subscription of the issue by the public. Industrial Finance Corporation of India (IFCI) and State Financial
Corporations (SFCs) are examples of development banks in India.
Co-operative Banks
People who come together to jointly serve their common interest often form a co-operative society under
the Co-operative Societies Act. When a co-operative society engages itself in banking business it is called a
Co-operative Bank. The society has to obtain a licence from the Reserve Bank of India before starting
banking business. Any co-operative bank as a society has to function under the overall supervision of the
Registrar, Co-operative Societies of the State. As regards banking business, the society must follow the
guidelines set issued by the Reserve Bank of India.
Types of Co-operative Banks
There are three types of co-operative banks operating in our country. They are primary credit societies,
central co-operative banks and state co-operative banks. These banks are organized at three levels, village
or town level, district level and state level.
State Co-operative Banks:
These are the apex (highest level) co-operative banks in all the states of the country. They mobilise funds
and help in its proper channelization among various sectors. The money reaches the individual borrowers
from the state co-operative banks through the central co-operative banks and the primary credit societies.
www.mahendraguru.com
