What are the types of banks in India?

Banks are considered as the backbone of any country as it is involved in every financial prospect. whoever does any transaction is performed through any of the listed banks in India. In this article, you will know What are the types of banks in India?

After going through this article you will come to know the types of banks and which banks fall under which category. let’s begin the topic…

Types of Banks in India

There are mainly 4 types of Banks in India. we will discuss all these types of banks one by one.

  • Commercial Banks
  • Small Finance Banks
  • Co-operative Banks
  • Payments Banks

Commercial Banks

Commercial banks are organized under the banking act of 1949. It is further classified into public sector banks, private sector banks, foreign banks, and Regional Rural Banks (RRB).

  • Public Sector Banks: These are the nationalized banks governed by the government. majority of the stake in these banks is owned by the government. Currently, SBI is the largest public sector Bank in India.

There ate total 12 nationalized banks in India. you can find them below.

Bank of Baroda (BOB)Canara Bank
Bank of India (BOI)Central Bank of India (CBI)
Bank of Maharashtra (BOM)Indian Bank
Indian Overseas Bank (IOB)Punjab & Sind Bank (PSB)
Punjab National Bank (PNB)State Bank of India (SBI)
UCO BankUnion Bank of India (UBI)
  • Private Sector Banks: In these banks majority of shares are owned by private shareholders or individuals. The rules of holding shares of any private sector banks are managed by the Central Bank or Reserve of India (RBI).

There are 22 private sector Banks in India mentioned below.

Axis Bank Ltd.RBL Bank Ltd.
CSB Bank Ltd.Yes Bank Ltd.
DCB Bank Ltd.Dhanlaxmi Bank Ltd.
Federal Bank Ltd.HDFC Bank Ltd.
ICICI Bank Ltd.IndusInd Bank Ltd.
IDFC First Bank Ltd.Jammu & Kashmir Bank Ltd.
Karnataka Bank Ltd.Karur Vysya Bank Ltd.
Kotak Mahindra Bank Ltd.Lakshmi Vilas Bank Ltd.
Nanital Bank Ltd.South India Bank Ltd.
Bandhan Bank Ltd.City Union Bank Ltd.
IDBI Bank Ltd.Tamilnad Mercantile Bank Ltd.
Read Also Types of Bank Accounts in India – Features & Benefits
  • Foreign Banks: The banks whose headquarter is in foreign Country but operates in India. It follows the rule and regulation of both countries i.e of its home country and the country in which they are operating.

Below you can find list of foreign banks operating in India.

Australia and New Zealand Banking Group LtdShinhan Bank
National Australia BankWestpac Banking Corporation
AB Bank Ltd.Bank of Bahrain & Kuwait BSC
Bank of AmericaCitibank N.A.
J.P. Morgan Chase Bank N.A.American Express Banking Corp.
The Royal Bank of Scotland plcStandard Chartered Bank
Barclays Bank Plc.Emirates NBD Bank PJSC
Mashreq Bank PSCFirst Abu Dhabi Bank PJSC
Abu Dhabi Commercial Bank Ltd.Industrial & Commercial Bank of China Ltd.
BNP ParibasBank of Nova Scotia
PT Bank Maybank Indonesia TBKMizuho Bank Ltd.
The Bank of Tokyo- Mitsubishi UFJ, Ltd.Sumitomo Mitsui Banking Corporation
Deutsche BankHSBC Ltd.
Societe GeneraleCredit Agricole Corporate & Investment Bank
Krung Thai Bank Public Co. Ltd. Bank of Ceylon
CTBC Bank Co. Ltd.Cooperatieve Rabobank U.A.
Credit Suisse A.GDoha Bank
JSC VTB BankQatar National Bank SAQ
Sonali Bank Ltd.Industrial Bank of Korea
Woori BankKEB Hana Bank
SberbankDBS Bank Ltd.
United Overseas Bank Ltd.FirstRand Bank Ltd.
  • Regional Rural Banks (RRB): These Banks were mainly established to cater to the needs of the rural sector as the name suggests. these banks mainly cover the unreached sections of society like farmers, small enterprises, etc.
  • These banks are based on the region in different states of India like if the state is Madhya Pradesh then the bank name is Madhya Pradesh Gramin Bank. similarly for other states as well.
  • RRBs are the joint venture between Central and State government banks.
  • RRBs provides facilities like Loan, Debit and Credit Cards.

Small Finance Banks

These banks are generally small in size. It caters to the needs of micro industries, small farmers, and the unorganized sector by providing loans and other financial assistance.

These banks are governed by the Central Bank i.e. RBI. find below the list of small finance banks in India.

Jana Small Finance Bank LtdNorth East Small Finance Bank Ltd
Utkarsh Small Finance Bank Ltd.ESAF Small Finance Bank Ltd.
Equitas Small Finance Bank LtdSuryoday Small Finance Bank Ltd.
Fincare Small Finance Bank Ltd.Ujjivan Small Finance Bank Ltd.
Au Small Finance Bank Ltd.Capital Small Finance Bank Ltd

Co-operative Banks

These banks operate under the state government. the main objective of these banks to offer short-term loans to small businesses, the agriculture sector, etc.

Co-operative banks are categorized in to 3 level basically.

1st Level: The state-level cooperative banks are financed by The RBI, government, and NABARD, and then the distribution of money is done between the Public. Concessional CRR, SLR charges also apply to these banks. (CRR- 3%, SLR- 25%).

These banks are owned by the state government and the management is chosen by the members.

2nd Level: District Level– These banks are generally present at the district level. these banks are mainly focusing on the agriculture sector, small industries, and self-employment in the rural areas.

3rd Level: Village Level – These small Co-Operative banks are primarily focused on the agriculture sector. It provides loans to farmers for agricultural tools and activities.

Payments Bank

The new model of banking has been introduced by the RBI in the form of Payments Bank. The amount that can be deposited in these banks is limited to 1 lakh currently.

These banks do not provide loans and credit card facilities, though one can opt for online banking, Debit ATM Card using payments Bank.

Find below a list of Payments Banks in India Currently.

Airtel Payments Bank LtdIndia Post Payments Bank Ltd
Paytm Payments Bank LtdFINO Payments Bank Ltd


In this article, you have learned What are the types of banks in India, their details, the bank name. I hope this will clear your queries regarding banks in India.

If you have any questions/doubts related to this article, you can ask in the below comment section. I will be happy to answer them.


1: Which is the Central Bank of India?

Reserve Bank of India (RBI) is the Central Bank of India.

2: What is Local Area Banks?

These Banks are run by the private organization and their main aim to make profit. these banks are registered under companies act 1956 and these banks originated in the year 1996.

Currently in India there are only 4 local banks located in South India.

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