Several banks provide a wide range of services to meet the needs of locals. The Reserve Bank of India, India's apex bank, regulates and supervises numerous banks (RBI) types.
Banks are vital in India because they help the economy flourish while also assisting retail customers, corporations, and other sectors in raising funds that can aid them financially.
The bank sector of India is divided into different categories:
- Banks that are scheduled (These are the banks that were added in the second schedule of the RBI Act, 1934)
- Banks that aren't on the timetable (these banks were not covered in the second schedule of the RBI Act,1934)
The Reserve Bank of India (RBI) sets the rules and regulations for India's scheduled banks. The list of these banks in India is quite extensive, and knowing about them will help you gain insight into them.
These banks were covered by the RBI Act 1934's second schedule. For these banks to qualify as scheduled, they must have a minimum of 5 lakh in paid-up capital and raised money. They must meet several requirements, including maintaining an average daily CRR balance with the central bank at the rates specified by the bank.
What is a Bank?
It is a licensed financial institution that accepts deposits and makes loans. You can save your money securely in banks. It acts as a container for your money and valuable things to store securely.
Banking is necessary for financial literacy because of the following reasons:
Keep your money safe; Direct deposit allows you to get your payment right away, Obtain loans, Keep track of your finances and, create a budget, put your money to good use. Debit and credit card services are available. Keep track of your liquid assets, Pique your interest.
Financial transactions are made more accessible, you can make FD of your money and get interested in keeping money in banks, and many more benefits are there.
What is a Scheduled Commercial Bank?
These banks were covered by the RBI Act 1934's second schedule. Accepting deposits, granting various loans, issuing credit and debit cards, and other financial services are among the critical services provided by scheduled commercial banks. Private and foreign banks, if they came under RBI Act's second schedule, it is considered scheduled commercial bank.
The main distinction between scheduled commercial and scheduled cooperative banks is that their holding model as cooperatives is classified as cooperative credit institutions under the cooperative society statute.
For these banks to qualify as scheduled, they must have a minimum of 5 lakh in paid-up capital and raised money. They must meet some requirements, including maintaining an average daily CRR balance with the central bank at the rates specified by the bank. The ability to raise debts and loans at bank rates significantly benefits them.
List of Scheduled Banks of India
1. Scheduled Public Sector Banks
These are the banks in which the Indian government owns more than 50 per cent of the stock. As a result, the government is the most essential stakeholder in PSBs. As of 2022, there are 12 public sector banks. However, there were 27 previously, which have now been consolidated.
The scheduled public sector banks are:
- Bank of Baroda
- Carana Bank
- Indian Bank
- Punjab and Sind Bank
- Punjab National Bank
- State of India(SBI)
- Union Bank of India
- UCO Bank
- Bank of Maharashtra
- Bank of India and many more
2. Scheduled Private Sector Banks
These are the banks where private entities own most of the stock. There are 21 private sector banks in total. All private sector banks provide their consumers with various banking and financial services. They offer many benefits to their customer, among which the top benefits are Debit/Credit Card ATM Savings Deposit RD, Education Loan Home Loan, Loans for Individuals, Demand and Locker Services for Car Loans, Foreign Exchange Dealings, Wealth Management and Insurance, Internet Banking.
Private sector banks are divided into two categories:
Banks from the Private Sector's Golden Era (these banks came into existence before 1968) and the private sector, these banks were incorporated after 1968.
The list of some top Scheduled Private sector banks includes:
- Axis Bank
- CSB bank
- City Union Bank
- DCB bank
- Federal Bank
- ICICI bank
- HDFC bank
- J & K bank
- Kotak Mahindra Bank
- South Indian Bank
- Yes Bank
- Dhanlaxami Bank and many
3. Schedule Foreign Banks in India
In India, there are 45 foreign banks. Foreign banks are international financial institutions that must abide by the rules and regulations of both their home and host countries. They have some credit restrictions dependent on the capital of their partner banks. They can make more loans than the subsidiary banks. It is divided into two categories Foreign Banks and International Banks.
The list of foreign banks that have branches in India includes:
- Abu Dhabi Commercial Bank (AB Bank)
- New Zealand Banking Group is a financial services company based in Australia and New Zealand.
- Barclays Bank Plc is a British bank based in London
- Bank of Bahrain and Kuwait is a subsidiary of Bank of America
- Bank of China Bank of Ceylon
- Nova Scotia is a financial institution based in Nova Scotia
- BNP Paribas is a French bank
- Citibank India is a bank based in India
- Corporate and Investment Bank of Crédit Agricole
- CTBC Bank Credit Suisse
- First Abu Dhabi Bank
- FirstRand Bank
- Deutsche Bank Emirates NBD
- JPMorgan Chase
- HSBC Bank India
- Industrial & Commercial Bank of China
- Industrial Bank of Korea
- KEB Hana Bank in Hana
- Krung Thai Bank Kookmin Bank
The list of international banks that have representative offices in the United States are:
- Bank of America
- Vizcaya Argentaria Banco Bilbao
- BPM Banco
- Sabadell Banco is a bank in Sabadell
- Bank of Montreal
- Bank of Taiwan
- Bank of Busan
- Bank of Busan
- Caixa Geral de Depositos Credit Industrial Commercial
- DNB Bank
- National Australia Bank
- Gazprombank Intesa Sanpaolo
- The Bank of New York Mellon in Toronto
- UBS AG Dominion Bank
- Wells Fargo Bank
- Zurcher Kantonal bank is based in Zurich, Switzerland
4. Scheduled Cooperative banks of India
Like all other banks, these banks are regulated and managed by the RBI and governed by the Banking Regulations Act of 1949. Small enterprises in both urban and rural locations can get loans from these banks.
According to statistics, they have had a significant impact on the expansion of small enterprises, accounting for a 67 per cent increase in village incursions and 46 per cent of net funding for rural firms through support for processing, housing, storage, and transportation, dairy, and other services.
Cooperative banks are divided into two categories:
1. Cooperative Banks in Cities
The following is a list of state-owned cooperative banks:
- The Andaman and Nicobar State Bank is a state-owned bank in the Andaman and Nicobar Islands
- The Andhra Pradesh State Co-operative Bank Ltd. is a cooperative bank in Andhra Pradesh, India.
- The Apex Bank of Arunachal Pradesh is a state-owned cooperative bank.
- The Assam Co-operative Apex Bank Ltd. is a cooperative bank based in Assam, India.
- The Bihar State Co-operative Bank Ltd. is a cooperative bank based in Bihar.
- The Chandigarh State Co-operative Bank Ltd. is a cooperative bank based in Chandigarh, India.
- The Delhi State Co-operative Bank Ltd. is a cooperative bank based in Delhi, India.
- The Goa State Co-operative Bank Ltd. is a Goa-based cooperative bank.
- Gujarat State Cooperative Bank Ltd. is a cooperative bank based in Gujarat, India.
2. Cooperative Banks in Cities
The following is a list of India's scheduled urban cooperative banks:
- Abhyudaya Co-operative Bank Ltd is a cooperative bank based in India.
- Ahmedabad Mercantile Co-Op Bank Limited is a cooperative bank based in Ahmedabad, India.
- Amanath Co-operative Bank Limited is a cooperative bank based in India.
- Andhra Pradesh Mahesh Co-Op Urban Bank Limited is a cooperative bank based in Andhra Pradesh.
- Apna Sahakari Bank Limited is a bank based in India.
5. Regional Rural Banks
These banks began shortly after the nationalization of banks in 1969, with RRBs following in 1975. Following the law's passage, 25 RBIs were formed in various sections of the country to help bridge credit gaps in rural areas.
Developing trade, commerce, agriculture, manufacturing, and other related sectors in rural areas was the fundamental motivation for their foundation.
The list of the regional rural banks includes:
- Andhra Pragathi Grameena Bank
- Saotagiri Gramin Bank
- Assam Gramin Vikash Bank
- Dakshin Bihar Gramin Bank
- Baroda Gujarat Gramin Bank
- Himachal Pradesh Gramin Bank
- Jammu and Kashmir Grameen Bank
- Jharkhand Rajya Gramin Bank
- Kerala Gramin Bank
- Vidarbha Konkan Gramin Bank
- Manipur Rural Bank
- Nagaland Rural Bank
- Utkal Grameen Bank
- Punjab Gramin bank
- Tripura Gramin bank
The article provides a list of scheduled commercial banks. The RBI Act 1934 included scheduled banks on the second schedule. One of the requirements for being a scheduled bank is that the bank's paid-up capital, and aggregated funds total at least Rs. 5 lakh. The second stipulation is that no action should be taken in the client's best interests.